TORONTO, March 13, 2013 /CNW/ - RBC Global Asset Management Inc. today
announced that the RBC Target 2013 Corporate Bond Index ETF (TSX: RQA)
will mature on Friday, November 22, 2013. This will be the first RBC
Target Maturity Corporate Bond ETF to mature.
"Target maturity ETFs are still relatively new to Canadian investors,"
said Mark Neill, head of RBC ETFs. "By providing the maturity date of
the RBC Target 2013 Corporate Bond Index ETF well in advance, our goal
is to help investors make informed decisions with respect to their bond
portfolio. This includes deciding whether to move their holdings into a
subsequent maturity of an RBC ETF or hold them through to maturity."
The suite of RBC Target Maturity Corporate Bond ETFs includes nine fixed
income corporate bond ETFs with maturities spanning from 2013 to 2021.
These ETFs provide target maturity exposure, enabling investors to
build customized portfolios tailored to their specific investment
Unlike traditional ETFs, which have a perpetual life, target maturity
ETFs have a specified maturity date that is established when the ETF is
launched. When the ETF reaches the maturity date, the ETF's final net
asset value (NAV) is returned to the current unitholders.
A target maturity ETF's portfolio contains securities that mature
throughout its stated maturity year. This structure results in a
duration profile similar to that of an individual bond, where the ETF's
duration should decline as it approaches maturity, reducing sensitivity
to interest rate changes. These ETFs do not seek to return any
predetermined amount at maturity.
For further information regarding RBC ETFs, please visit www.rbcgam.com/etfs.
About RBC Global Asset Management and RBC Wealth Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada
(RBC), and includes institutional money managers BlueBay Asset
Management, Phillips, Hager & North Investment Management and RBC
Global Asset Management (U.S.). RBC GAM is a provider of global
investment management services and solutions to individual,
high-net-worth and institutional investors through exchange-traded
funds, hedge funds, mutual funds, pooled funds, separate accounts and
specialty investment strategies. RBC GAM group of companies manages
more than $280 billion in assets and has approximately 1,000 employees
located across Canada, the United States, Europe and Asia.
RBC Global Asset Management is part of RBC Wealth Management, which is one of the world's top 10 largest wealth managers. RBC Wealth
Management directly serves affluent, high-net-worth and
ultra-high-net-worth clients in Canada, the United States, Latin
America, Europe, the Middle East, Africa and Asia with a full suite of
banking, investment, trust and other wealth management solutions. The
business also provides asset management products and services directly
and through RBC and third-party distributors to institutional and
individual clients, through its RBC Global Asset Management business
(which includes BlueBay Asset Management). RBC Wealth Management has
more than C$593 billion of assets under administration, more than C$353
billion of assets under management and approximately 4,300 financial
consultants, advisors, private bankers and trust officers.
For further information:
Jeff Keay, RBC GAM Communications, 416 955-0577
Leah Commisso, RBC GAM Media Relations, 416 955-6498