RBC Global Asset Management Announces Fee Reductions Across Mutual Fund Lineup

New Simplified Series Offering Brings RBC Global Asset Management's Lowest Fees to All Investors

TORONTO, Feb. 29, 2016 /CNW/ - RBC Global Asset Management Inc. (RBC GAM Inc.), Canada's largest mutual fund provider, today announced fee reductions across its diverse lineup of funds, along with additional changes to its 'High Net Worth' fund series. These changes will be effective June 30th, 2016, and apply to certain RBC Funds, PH&N Funds, BlueBay Funds, RBC Corporate Class Funds and RBC Private Pools.

"RBC Global Asset Management's leadership on low fees has helped us earn our clients' confidence, and become Canada's largest mutual fund provider," said Doug Coulter, President of RBC GAM Inc. "We are pleased to continue to reward their trust by further reducing the cost of investing."

Fee reductions on 85 mutual funds

Effective June 30th, 2016, RBC GAM Inc. will reduce management fees by up to 15 basis points on 85 mutual funds, including Series F, Series A, Series C, Series D, Series T and Advisor Series.

"RBC Global Asset Management is already an established fee leader in Canada," said Coulter. "Our Series F management expense ratios are on average approximately 20 basis points or 20% lower than their category median, and we are pleased to be driving those fees even lower." (Source: Morningstar)

Lowest fee for all investors

RBC GAM Inc. will now offer its lowest-fee option to all clients, regardless of their portfolio size and without the complexity and paperwork associated with 'High Net Worth' programs.

"By lowering fees to levels that compare to high net worth programs in the marketplace, more money will stay in our clients' pockets, from the very first dollar they invest," said Coulter. "For advisors, these changes will result in greater simplicity and our lowest fees for their clients."

RBC GAM Inc.'s 'High Net Worth' fund series (Series H and I) will be phased out beginning on or about June 30th, 2016. Certain series H and I units or shares will be re-designated to the corresponding Series A, C, and F units or shares, the majority of which will have management fees and administration fees equal to or lower than current H and I levels, once the fee reductions announced today are implemented. The remaining H and I series funds will be capped (and no longer available for purchases by new investors) or closed.

Continued leadership on low fees

"We believe that RBC GAM Inc. offers exceptional value for actively managed mutual funds," continued Coulter. "Across the board, our management fees for Series F units will be among the lowest in the industry, at 40 basis points for Canadian & Short Term Fixed Income funds, 60 basis points for Global Fixed Income, core Canadian and U.S. Equity funds, and 75 basis points for core International & Global Equity funds."

The chart below summarizes the above-noted fee reductions for Series F units or shares, by asset class. The management fees of other series will include the standard trailing commission paid to the dealer. A full list of the relevant funds and series is included at the end of this release.

Asset Class Series F Fee
(%)
Planned
Change (%)
New Series F
Fee (%)
Canadian & Short-Term Fixed Income 0.50 -0.10 0.40
Global Fixed Income 0.75 -0.15 0.60
Core Canadian Equity 0.75 -0.15 0.60
Core U.S. Equity 0.75 -0.15 0.60
Core International & Global Equity 0.85 -0.10 0.75

Please find below the aforementioned management fee reductions to 85 funds managed by RBC GAM Inc. These changes will be effective June 30th, 2016.

Fee reductions on 85 mutual funds

Fund Management Fee
Series F1
(%)
Series D
(%)
Series A2 / C /
Advisor Series3
(%)
OLD NEW OLD NEW OLD NEW
Fixed-Income Funds
RBC Canadian Short-Term Income Fund 0.50 0.40 0.65 0.55 1.00 0.90
Phillips, Hager & North Short Term Bond & Mortgage Fund 0.50 0.40 - - 1.00 0.90
RBC Monthly Income Bond Fund 0.50 0.40 0.65 0.55 1.00 0.90
RBC Bond Fund 0.50 0.40 0.65 0.55 1.00 0.90
Phillips, Hager & North Bond Fund 0.50 0.40 - - 1.00 0.90
Phillips, Hager & North Community Values Bond Fund 0.50 0.40 - - 1.00 0.90
Phillips, Hager & North Total Return Bond Fund 0.50 0.40 - - 1.00 0.90
RBC Global Bond Fund 0.75 0.60 0.90 0.75 1.50 1.35
RBC $U.S. Investment Grade Corporate Bond Fund 0.75 0.60 0.90 0.75 1.25 1.10
BlueBay Emerging Markets Corporate Bond Fund 0.95 0.90 1.10 1.05 1.70 1.65
BlueBay Global Convertible Bond Fund (Canada) 0.95 0.90 1.10 1.05 1.70 1.65
BlueBay $U.S. Global Convertible Bond Fund (Canada) 0.95 0.90 1.10 1.05 1.70 1.65
Balanced Funds & Portfolio Solutions
RBC U.S. Monthly Income Fund 0.75 0.65 0.90 0.80 1.50 1.40
Canadian Equity Funds
RBC Canadian Dividend Fund 0.75 0.60 1.00 0.85 - -
Phillips, Hager & North Dividend Income Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC Canadian Equity Income Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Canadian Income Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC Jantzi Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Community Values Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Canadian Equity Value Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Canadian Growth Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE Low Volatility Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE Canadian Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC Canadian Small & Mid-Cap Resources Fund 0.85 0.75 1.10 1.00 1.85 1.75
Phillips, Hager & North Vintage Fund 1.00 0.85 1.25 1.10 2.00 1.85
North American Equity Funds
RBC North American Value Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC North American Growth Fund 0.75 0.60 1.00 0.85 1.75 1.60
U.S. Equity Funds
RBC U.S. Dividend Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North U.S. Dividend Income Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North U.S. Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North U.S. Multi-Style All-Cap Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North U.S. Growth Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Equity Currency Neutral Fund 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Currency-Hedged U.S. Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE Low Volatility U.S. Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Equity Value Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE U.S. Equity Fund 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Mid-Cap Value Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC U.S. Small-Cap Core Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC U.S. Small-Cap Value Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC Life Science and Technology Fund - - - - 1.85 1.75
International Equity Funds
Phillips, Hager & North Overseas Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
Phillips, Hager & North Currency-Hedged Overseas Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC European Dividend Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC International Dividend Growth Fund - - - - 1.85 1.75
RBC International Equity Fund - - - - 1.85 1.75
RBC International Equity Currency Neutral Fund - - - - 1.85 1.75
RBC European Equity Fund - - - - 1.85 1.75
RBC Asian Equity Fund - - - 1.85 1.75
Global Equity Funds
RBC Global Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC Global Equity Focus Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC QUBE Low Volatility Global Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC QUBE Global Equity Fund 0.85 0.75 1.10 1.00 1.85 1.75
RBC Global Dividend Growth Fund - - - - 1.85 1.75
RBC Jantzi Global Equity Fund - - - - 1.85 1.75
RBC Global Resources Fund - - - - 1.85 1.75
RBC Global Technology Fund - - - - 1.85 1.75
BonaVista Funds
BonaVista Canadian Equity Value Fund 0.75 0.60 1.00 0.85 1.75 1.60
BonaVista Global Balanced Fund - - - - 2.00 1.75
RBC Private Pools
RBC Private Canadian Corporate Bond Pool 0.50 0.40 - - - -
RBC Private U.S. Large-Cap Core Equity Pool 0.75 0.60 - - - -
RBC Corporate Class Funds
RBC Canadian Dividend Class 0.75 0.60 1.00 0.85 - -
RBC Canadian Equity Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE Low Volatility Canadian Equity Class 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North Canadian Equity Value Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC Canadian Equity Income Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC North American Value Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Dividend Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Equity Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC QUBE Low Volatility U.S. Equity Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Equity Value Class 0.75 0.60 1.00 0.85 1.75 1.60
Phillips, Hager & North U.S. Multi-Style All-Cap Equity Class 0.75 0.60 1.00 0.85 1.75 1.60
RBC U.S. Mid-Cap Value Equity Class 0.85 0.75 1.10 1.00 1.85 1.75
RBC U.S. Small-Cap Core Equity Class 0.85 0.75 1.10 1.00 1.85 1.75
Phillips, Hager & North Overseas Equity Class 0.85 0.75 1.10 1.00 1.85 1.75
RBC Global Equity Class 0.85 0.75 1.10 1.00 1.85 1.75
RBC QUBE Low Volatility Global Equity Class 0.85 0.75 1.10 1.00 1.85 1.75
BlueBay Global Convertible Bond Class (Canada) 0.95 0.90 1.10 1.05 1.70 1.65
BlueBay $U.S. Global Convertible Bond Class (Canada) 0.95 0.90 1.10 1.05 1.70 1.65
RBC International Equity Class - - - - 1.85 1.75
RBC European Equity Class - - - - 1.85 1.75
RBC Global Resources Class - - - - 1.85 1.75
  1. Certain funds may also be available with a Series FT5 payout option, which will be subject to the same management fee decreases as Series F.
  2. Certain funds may also be available with a Series T5 and / or Series T8 payout option, which will be subject to the same management fee decreases as Series A.
  3. Certain funds may also be available with an Advisor T5 Series payout option, which will be subject to the same management fee decreases as Advisor Series.

Please find below the aforementioned changes to series H and series I of certain funds. These changes will be effective on or about June 30th, 2016.

For certain funds set out in the table, Series H and I units or shares will be re-designated to the corresponding Series A and F units or shares, which will have administration fees that are higher than current Series H and I levels.  The Independent Review Committee of these funds considered and provided a positive recommendation for these re-designations after determining that they would achieve a fair and reasonable result for unitholders or shareholders of the applicable series.

Unitholders or shareholders of Series H or I units or shares that will be closed or that will be re-designated based on positive recommendation from the Independent Review Committee will be sent a written notice detailing the changes at least 60 days prior to the effective date. Unitholders or shareholders will have a right to redeem or re-classify their units or shares up to the close of business on the business day immediately preceding the effective date of the closures or re-designations. Re-designations and re-classifications are not considered taxable.

Fund Series H Series I
Money Market Funds
RBC Premium Money Market Fund - Close
RBC Premium $U.S. Money Market Fund - Close
Fixed-Income Funds
Phillips, Hager & North Short Term Bond & Mortgage Fund Re-designate to Series C Re-designate to Series F
RBC Monthly Income Bond Fund Re-designate to Series A Re-designate to Series F
Phillips, Hager & North Total Return Bond Fund Re-designate to Series C Re-designate to Series F
RBC $U.S. Investment Grade Corporate Bond Fund Re-designate to Series A Re-designate to Series F
RBC Bond Fund Close Re-designate to Series F3
RBC Global Corporate Bond Fund Close Close
RBC High Yield Bond Fund Close Close
RBC $U.S. High Yield Bond Fund Close Close
RBC Global High Yield Bond Fund Close Close
RBC Strategic Income Bond Fund Close Close
RBC Emerging Markets Bond Fund Close Close
BlueBay Emerging Markets Corporate Bond Fund Close Close
BlueBay $U.S. Global Convertible Bond Fund (Canada) Close Close
RBC Global Bond Fund Close Cap
BlueBay Global Monthly Income Bond Fund Close Cap
BlueBay Global Convertible Bond Fund (Canada) Cap Cap
Balanced Funds & Portfolio Solutions
RBC U.S. Monthly Income Fund Re-designate to Series A4 Cap
RBC Jantzi Balanced Fund - Close
RBC Conservative Growth & Income Fund Close Cap
Phillips, Hager & North Monthly Income Fund Cap Cap
RBC Balanced Growth & Income Fund Cap Cap
Canadian Equity Funds
RBC Canadian Equity Income Fund Re-designate to Series A1 Re-designate to Series F
Phillips, Hager & North Canadian Equity Value Fund Re-designate to Series C Re-designate to Series F
RBC QUBE Low Volatility Canadian Equity Fund Close Close
RBC Jantzi Canadian Equity Fund - Close
North American Equity Funds
RBC North American Value Fund Re-designate to Series A1 Re-designate to Series F
U.S. Equity Funds
RBC U.S. Dividend Fund Re-designate to Series A1 Re-designate to Series F
RBC QUBE Low Volatility U.S. Equity Fund Re-designate to Series A Re-designate to Series F
RBC U.S. Equity Value Fund Re-designate to Series A Re-designate to Series F
RBC U.S. Equity Fund Close Close
RBC U.S. Mid-Cap Equity Fund Close Close
RBC O'Shaughnessy U.S. Value Fund - Cap
International Equity Funds
RBC International Equity Fund Close Close
RBC International Equity Currency Neutral Fund Close Close
RBC European Dividend Fund Close Close
RBC Asia Pacific ex-Japan Equity Fund Close Close
RBC Japanese Equity Fund Close Close
RBC Emerging Markets Equity Fund - Close
RBC O'Shaughnessy International Equity Fund - Cap
Global Equity Funds
RBC Global Dividend Growth Fund Close Close
RBC Global Equity Fund Close Close
RBC Global Equity Focus Fund Close Close
RBC QUBE Low Volatility Global Equity Fund Close Close
RBC Global Precious Metals Fund Close Close
RBC Global Resources Fund Close Close
RBC Jantzi Global Equity Fund - Close
Corporate Class Funds
RBC Canadian Equity Income Class Re-designate to Series A2 Re-designate to Series F3
RBC North American Value Class Re-designate to Series A2 Re-designate to Series F3
RBC U.S. Dividend Class Re-designate to Series A2 Re-designate to Series F3
Phillips, Hager & North U.S. Multi-Style All-Cap Equity Class Re-designate to Series A Re-designate to Series F
Phillips, Hager & North Overseas Equity Class Re-designate to Series A Re-designate to Series F
RBC Canadian Dividend Class Close Re-designate to Series F
RBC Canadian Equity Class Close Re-designate to Series F
RBC U.S. Equity Class Close Re-designate to Series F
RBC QUBE Low Volatility U.S. Equity Class Re-designate to Series A Close
RBC Short Term Income Class                                    Close Close
RBC Balanced Growth & Income Class Close Close
RBC QUBE Low Volatility Canadian Equity Class Close Close
Phillips, Hager & North Canadian Equity Value Class Close Close
RBC Canadian Mid Cap Equity Class Close Close
RBC U.S. Equity Value Class Close Close
RBC U.S. Mid-Cap Value Equity Class Close Close
RBC U.S. Small-Cap Core Equity Class Close Close
RBC International Equity Class Close Close
RBC European Equity Class Close Cap
RBC Emerging Markets Equity Class Close Close
RBC Global Equity Class Close Close
RBC QUBE Low Volatility Global Equity Class Close Close
RBC Global Resources Class Close Close
Phillips, Hager & North Monthly Income Class Cap Close
BlueBay Global Convertible Bond Class (Canada) Cap Cap
  1. The management fees will be 0.05% lower than current Series H levels; however, the administration fee will be 0.05% higher post re-designation to Series A units.  There is no fee increase on a net basis as a result of these changes.
  2. The management fees will be 0.05% lower than current Series H levels; however, the administration fee will be 0.08% higher post re-designation to Series A units or shares.  There is a 0.03% increase in fees on a net basis as a result of these changes.
  3. The management fees will be equal to current Series I levels; however the administration fee will be 0.03% higher post re-designation to Series F units or shares.  There is a 0.03% increase in fees on a net basis as a result of these changes.
  4. The management fee will be equal to the current Series H level; however the administration fee will be 0.05% higher post re-designation to Series A units.  There is a 0.05% increase in fees on a net basis as a result of these changes.

Please read the prospectus before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes BlueBay Asset Management and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage more than $380 billion in assets and have approximately 1,300 employees located across Canada, the United States, Europe and Asia

SOURCE RBC

For further information:

Leah Commisso, RBC GAM Corporate Communications, 416-955-6498


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