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 (RABAX).
"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 $2,500.
|Fund Name||Ticker||Fund Managers|
|RBC BlueBay Emerging Market Select Bond Fund (Class A)||RESAX|| David Dowsett
|RBC BlueBay Emerging Market Corporate Bond Fund (Class A)||RECAX|| Polina Kurdyavko
|RBC BlueBay Global High Yield Bond Fund (Class A)||RHYAX|| Anthony Robertson
|RBC BlueBay Absolute Return Fund (Class A)||RABAX|| Mark Dowding
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, 2015.
**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 protected]
Leah Commisso, RBC GAM Media Relations, 416 955-6498, [email protected]