MINNEAPOLIS, Dec. 2, 2013 /CNW/ - RBC Global Asset Management (U.S.)
Inc. (RBC GAM-US) announced fee reductions for the Access Capital
Community Investment Fund (ACCSX; ACASX) and the RBC SMID Cap Growth
Fund (TMCIX; TMCAX), along with the launch of Class A shares for four
funds sub-advised by the firm's London-based affiliate, BlueBay Asset
Management LLP and Connecticut-based affiliate BlueBay USA LLC, as
applicable: RBC BlueBay Emerging Market Select Bond Fund (RESAX), RBC
BlueBay Emerging Market Corporate Bond Fund (RECAX), RBC BlueBay Global
High Yield Bond Fund (RHYAX) and RBC BlueBay Absolute Return Fund
"These initiatives are part of an ongoing effort to increase our
presence and grow our business in the retail advisory marketplace, reflecting our commitment to the professional buyer market and U.S.
investors," said Mike Lee, Chief Executive Officer and Chief Investment
Officer of RBC GAM-US.
Access Capital Community Investment Fund Fee and Policy Changes
RBC GAM-US effectively reduced the annual management fee of the Access
Capital Community Investment Fund by eliminating the management fee
charged on assets purchased with borrowed monies.
In addition to the fee change, the Fund's investment policies were
modified to permit a portion of total assets to be invested in
securities rated below the highest category by a nationally recognized
statistical rating organization such as S&P or Moody's (and unrated
securities deemed to be of comparable quality). At least 75% of total
Fund assets will be invested in securities having a rating in the
highest rating category (e.g., AAA by S&P) assigned by a nationally
recognized statistical rating organization such as S&P or Moody's (or
if unrated, deemed to be of comparable quality); or issued or
guaranteed by the U.S. government, government agencies, or government
sponsored enterprises ("First Tier Holdings").
The remainder of the Fund's total assets will be invested in First Tier
Holdings or in securities rated at least in the second highest category
assigned by a nationally recognized statistical rating organization (or
if unrated, deemed to be of comparable quality). This decision reflects
investor demand for greater social impact potential while seeking to
maintain a high credit quality nature for the Fund. These changes took
effect on September 9, 2013.
RBC SMID Cap Growth Fund Fee Reduction
Effective November 27, 2013, RBC GAM-US reduced the fees of the RBC SMID
Cap Growth Fund. The 1.35% gross expense ratio and the 1.10% net
expense ratio of the Class I shares (TMCIX; minimum initial investment
requirement of $250,000) were reduced to 1.08% and 0.85%, respectively.
The 1.60% gross expense ratio and the 1.35% net expense ratio of the
Class A shares (TMCAX; minimum initial investment requirement of
$1,000) have been reduced to 1.47% and 1.10%, respectively.*
RBC BlueBay Fund Class A Shares
Also effective November 27, 2013, the firm launched Class A shares for
four of the RBC BlueBay Funds. The introduction of the A shares offers
U.S. investors broader accessibility to BlueBay's global and emerging
market fixed income investment expertise. Previously, RBC BlueBay Funds
were only available via Class I shares, which require a minimum initial
investment of $1 million. The new Class A shares of the RBC BlueBay
Funds will require a substantially lower minimum initial investment of
RBC BlueBay Emerging Market Select Bond Fund (Class A)
RBC BlueBay Emerging Market Corporate Bond Fund (Class A)
RBC BlueBay Global High Yield Bond Fund (Class A)
RBC BlueBay Absolute Return Fund (Class A)
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 manage more
than $295 billion in assets and have 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 US$599 billion of assets under administration, more than
US$363 billion of assets under management and over 4,400 financial
consultants, advisors, private bankers, and trust officers. For more
information, please visit www.rbcwealthmanagement.com.
*The Advisor has contractually agreed to waive fees through January 31,
**Scorpio Partnership Global Private Banking KPI Benchmark 2013. In the
United States, securities are offered through RBC Wealth Management, a
division of RBC Capital Markets, LLC, a wholly owned subsidiary of
Royal Bank of Canada. Member NYSE/FINRA/SIPC.
The RBC Global Asset Management and RBC Wealth Management links above
will direct you to adviser material.
Mutual fund investing involves risk. Principal loss is possible. Bond
investments are subject to interest-rate risk such that when interest
rates rise, the prices of the bonds, and thus the value of the bond
fund, can decline and the investor can lose principal value. In
general, the risk of price fluctuation increases with the length of the
bond's maturity. Investment in the Access Capital Community Investment
Fund involves risks including, but not limited to: the effects of
leveraging the Fund's portfolio; concentration in the affordable
housing market and related mortgage backed securities; competition for
investments; interest rate risk and investments in illiquid securities.
Non-diversified funds may invest assets in fewer individual holdings
than diversified funds. Therefore, the non-diversified funds are more
exposed to individual stock volatility than diversified funds. Absolute
return funds may not achieve their goals and are not intended to
outperform stocks and bonds during strong market rallies and may
underperform during periods of strong positive market performance.
Investments in foreign securities involve greater volatility and
political, economic and currency risks and differences in accounting
methods. These risks are greater for emerging markets.
RBC Global Asset Management (U.S.) Inc. serves as investment adviser for
RBC Funds. The Blue Bay Funds are sub-advised by BlueBay Asset
Management LLP, a wholly-owned subsidiary of RBC. The RBC Funds are
distributed by Quasar Distributors, LLC.
The RBC Funds' investment objectives, risks, charges and expenses must
be considered carefully before investing. The prospectus contains this
and other important information about the investment company, and it
may be obtained by calling 800.422.2766 or visiting https://us.rbcgam.com/mutual-funds/. Read it carefully before investing.
NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
SOURCE: RBC Global Asset Management (U.S.)
For further information:
Matt Gierasimczuk, RBC GAM Communications, 416 974-2124, email@example.com
Leah Commisso, RBC GAM Media Relations, 416 955-6498, firstname.lastname@example.org