TORONTO, Aug. 15,
2024 /CNW/ - RBC Global Asset Management Inc. ("RBC
GAM Inc.") today announced final details regarding the scheduled
maturity of RBC Target 2024 Canadian Government Bond ETF (TSX:
RGQL) and RBC Target 2024 Canadian Corporate Bond Index ETF (TSX:
RQL) (together, the "Maturing ETFs").
As announced earlier this year, RBC Target 2024 Canadian
Government Bond ETF and RBC Target 2024 Canadian Corporate Bond
Index ETF will mature effective the close of business on
Friday, September 13, 2024 (the
"Maturity Date"). In anticipation of their maturity, subscriptions
for units of the Maturing ETFs will no longer be accepted after the
close of business today, Thursday, August
15, 2024.
Redemption requests for the Maturing ETFs will be accepted until
the close of business on Wednesday,
September 11, 2024. RGQL and RQL are anticipated to be
voluntarily delisted from the TSX, at the request of RBC GAM Inc.,
following the close of business on or about Wednesday, September 11, 2024. Investors may
continue to buy or sell units of the Maturing ETFs on a stock
exchange until the delisting date. All units held by investors
following the delisting will be subject to mandatory redemption on
the Maturity Date.
Prior to the Maturity Date, RBC GAM Inc. will, to the extent
reasonably possible, sell and convert the assets of the Maturing
ETFs to cash. After paying or making adequate provision for the
liabilities and obligations of the Maturing ETFs, RBC GAM Inc.
will, as soon as practicable following the Maturity Date,
distribute the net assets of each Maturing ETF pro rata among the
unitholders of record on the Maturity Date based on the net asset
value (NAV) per unit.
RBC GAM Inc. will issue an additional press release on or about
the Maturity Date confirming the final details.
Investors have the option to either invest the proceeds from the
Maturing ETFs into a subsequent maturity of an RBC Target
Maturity Bond ETF or to utilize the proceeds in a ladder
strategy to help manage interest rate and reinvestment risk.
Unlike traditional exchange traded funds (ETFs), which have a
perpetual life, RBC Target Maturity Bond ETFs have a specified
maturity date established when the ETF is launched. When the ETF
reaches its maturity date, the ETF's final NAV is returned to the
current unitholders.
An RBC Target Maturity Bond ETF's portfolio contains fixed
income 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.
The suite of RBC Target Maturity Bond ETFs focuses on providing
investors with simple and transparent access to a wide range of
diversified bond portfolios and the ability to manage duration more
precisely, through six RBC Target Maturity Canadian Government Bond
ETFs, six RBC Target Maturity Canadian Corporate Bond ETFs and six
RBC Target Maturity U.S. Corporate Bond ETFs, with maturities
ranging from 2025 to 2030.
For further information regarding RBC ETFs, please visit
www.rbcgam.com/etfs.
Commissions, management fees and expenses all may be associated
with investments in ETFs. Please read the applicable prospectus or
ETF Facts document before investing. ETFs are not guaranteed, their
values change frequently and past performance may not be repeated.
ETF units are bought and sold at market price on a stock exchange
and brokerage commissions will reduce returns. RBC ETFs do not seek
to return any predetermined amount at maturity. Index returns do
not represent RBC ETF returns. RBC ETFs are managed by RBC GAM
Inc., a member of the RBC GAM group of companies and an indirect
wholly-owned subsidiary of Royal Bank of Canada.
RBC Target 2024 Canadian Government Bond ETF and RBC Target 2024
Canadian Corporate Bond Index ETF do not seek to deliver a
predetermined amount at maturity, and the amount an investor
receives may be more or less than their original investment.
The RBC Target Maturity Canadian Corporate Bond ETFs ("Canadian
TMCB ETFs") have been developed solely by RBC GAM Inc. and are not
in any way connected to or sponsored, endorsed, sold or promoted by
the London Stock Exchange Group plc and its group undertakings
(collectively, the "LSE Group"). All rights in the FTSE Canada 2024
Maturity Corporate Bond Index and the other FTSE Maturity Corporate
Bond Indices of the Canadian TMCB ETFs (collectively, the "FTSE
Maturity Corporate Bond Indices") vest in the relevant LSE Group
company which owns the FTSE Maturity Corporate Bond Indices.
"FTSE®" is a trade mark of the relevant LSE Group company and is
used by any other LSE Group company under license.
The FTSE Maturity Corporate Bond Indices are calculated by or on
behalf of FTSE Global Debt Capital Markets Inc. or its affiliate,
agent or partner. The LSE Group does not accept any liability
whatsoever to any person arising out of (a) the use of, reliance on
or any error in the FTSE Maturity Corporate Bond Indices or (b)
investment in or operation of the Canadian TMCB ETFs. The LSE Group
makes no claim, prediction, warranty or representation either as to
the results to be obtained from the Canadian TMCB ETFs or the
suitability of the FTSE Maturity Corporate Bond Indices for the
purpose to which they are being put by RBC GAM Inc.
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 98,000+ 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 more
than 18 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). 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. RBC
Funds, BlueBay Funds, PH&N Funds and RBC ETFs are offered by
RBC GAM Inc. and distributed through authorized dealers in
Canada. The RBC GAM group of
companies, which includes RBC GAM Inc. (including PH&N
Institutional) and RBC Indigo Asset Management Inc., manage
approximately $625 billion in assets
and have approximately 1,600 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management Inc.