Update regarding 2016 Federal Budget and RBC Corporate Class Funds

TORONTO, March 29, 2016 /CNW/ - The recently released 2016 Federal Budget includes a proposal to prevent the deferral of capital gains tax by investors in mutual fund corporations. The Federal Budget proposes to amend the Income Tax Act so that a switch between classes of shares of a mutual fund corporation will be considered to be a disposition at fair market value for tax purposes. The change will not apply to switches between different series of the same share class.

This proposal affects a number of mutual fund corporations across the industry, including the following RBC Corporate Class Funds (the Funds):

RBC Corporate Class Funds

RBC Balanced Growth & Income Class

RBC U.S. Equity Value Class

RBC Canadian Dividend Class

RBC U.S. Mid-Cap Value Equity Class

RBC Canadian Equity Class

RBC U.S. Small-Cap Core Equity Class

RBC Canadian Equity Income Class

RBC $U.S. ShortTerm Income Class

RBC Canadian Mid-Cap Equity Class

RBC QUBE Low Volatility Canadian Equity Class

RBC European Equity Class

RBC QUBE Low Volatility Global Equity Class

RBC Emerging Markets Equity Class

RBC QUBE Low Volatility U.S. Equity Class

RBC Global Equity Class

PH&N Canadian Equity Value Class

RBC Global Resources Class

PH&N Monthly Income Class

RBC International Equity Class

PH&N Overseas Equity Class

RBC North American Value Class

PH&N U.S. Multi-Style All-Cap Equity Class

RBC Short Term Income Class

BlueBay Global Convertible Bond Class (Canada)

RBC U.S. Dividend Class

BlueBay $U.S. Global Convertible Bond Class (Canada)

RBC U.S. Equity Class

The change is expected to take effect beginning on October 1, 2016. Until then, the Funds will continue to operate in the same manner as prior to the budget announcement. RBC Global Asset Management Inc. is awaiting further guidance from the Federal Government with respect to the implementation of the budget proposal.

Shareholders of the Funds may wish to speak with their financial advisor about their investment options.

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, leah.commisso@rbc.com

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