TORONTO, Dec. 8, 2021 /CNW/ – RBC Global Asset Management Inc. (“RBC GAM Inc.”) today announced plans to windup all RBC Corporate Class Funds (the “Funds”). Effective on or about March 25, 2022, RBC $U.S. Short Term Income Class will close, and effective on or about April 8, 2022, all remaining Funds will merge into their mutual fund trust equivalents, on a tax-deferred basis.
Mergers of certain Funds
The following Funds will be merged into their equivalent mutual fund trusts, which have the same investment objectives and strategies, on or about April 8, 2022:
| Terminating Fund | Continuing Fund |
| RBC Short Term Income Class | RBC Canadian Money Market Fund |
| BlueBay Global Convertible Bond Class (Canada) | BlueBay Global Convertible Bond Fund (Canada) |
| Phillips, Hager & North Monthly Income Class | Phillips, Hager & North Monthly Income Fund |
| RBC Balanced Growth & Income Class | RBC Balanced Growth & Income Fund |
| RBC Canadian Dividend Class | RBC Private Canadian Dividend Pool |
| RBC Canadian Equity Class | RBC Private Canadian Equity Pool |
| RBC QUBE Low Volatility Canadian Equity Class | RBC QUBE Low Volatility Canadian Equity Fund |
| Phillips, Hager & North Canadian Equity Value Class | Phillips, Hager & North Canadian Equity Value Fund |
| RBC Canadian Equity Income Class | RBC Canadian Equity Income Fund |
| RBC Canadian Mid-Cap Equity Class | RBC Canadian Mid-Cap Equity Fund |
| RBC North American Value Class | RBC North American Value Fund |
| RBC U.S. Dividend Class | RBC U.S. Dividend Fund |
| RBC U.S. Equity Class | RBC U.S. Equity Fund |
| RBC QUBE Low Volatility U.S. Equity Class | RBC QUBE Low Volatility U.S. Equity Fund |
| RBC U.S. Equity Value Class | RBC U.S. Equity Value Fund |
| Phillips, Hager & North U.S. Multi-Style All-Cap Equity Class | Phillips, Hager & North U.S. Multi-Style All-Cap Equity Fund |
| RBC U.S. Mid-Cap Value Equity Class | RBC U.S. Mid-Cap Value Equity Fund |
| RBC U.S. Small-Cap Core Equity Class | RBC U.S. Small-Cap Core Equity Fund |
| RBC International Equity Class | RBC International Equity Fund |
| Phillips, Hager & North Overseas Equity Class | Phillips, Hager & North Overseas Equity Fund |
| RBC European Equity Class | RBC European Equity Fund |
| RBC Emerging Markets Equity Class | RBC Emerging Markets Equity Fund |
| RBC Global Equity Class | RBC Global Equity Fund |
| RBC QUBE Low Volatility Global Equity Class | RBC QUBE Low Volatility Global Equity Fund |
| RBC Global Resources Class | RBC Global Resources Fund |
Shareholders of the terminating Funds will receive an equivalent series of units of the continuing fund, on a dollar-for-dollar and tax-deferred basis. The terminating Funds will be wound up following the merger.
Shareholders may redeem or switch their holdings in the terminating Funds until market close on April 6, 2022.
Changes to tax legislation have removed the primary benefits of corporate class funds and as a result, RBC GAM Inc. no longer believes it is possible to consistently deliver tax benefits to corporate class shareholders, over the long term, relative to mutual fund trusts.
The Independent Review Committee of the Funds considered and approved the proposed mergers, after determining that they achieve a fair and reasonable result for the terminating Funds.
Closure of RBC $U.S. Short Term Income Class
RBC $U.S. Short Term Income Class will be closed effective on or about March 25, 2022. Shareholders may redeem or switch their holdings in the Fund until market close on March 23, 2022. Any remaining shares will be redeemed, and the proceeds distributed to shareholders.
In the case of the Fund being held in registered plans, the redemption proceeds will remain within the plan. There will be no tax implications as a result of the transactions if shares are held in a registered plan. If shares of the Fund are held in a non-registered account, the closure of the Fund will be treated as a deemed disposition, and may result in a taxable capital gain or loss, depending on each shareholder’s individual situation.
Shareholders of the Funds will be sent a written notice detailing changes related to the mergers and closure at least 60 days prior to the effective dates.
Please consult your advisor and read the prospectus or Fund Facts document 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. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc. and distributed through authorized dealers in Canada. RBC GAM Inc. is a member of the RBC GAM group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 87,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers 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 approximately $580 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.
SOURCE RBC Global Asset Management Inc.
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