TORONTO, June 26,
2024 /CNW/ - RBC Global Asset Management Inc.
("RBC GAM Inc.") today announced changes to several of its funds,
including management and/or administration fee reductions, changes
to the asset allocation strategy or "glidepath" for the existing
Phillips, Hager & North LifeTime (2015 to 2060) Funds
(collectively, the "PH&N LifeTime Funds"), and risk rating
changes for certain RBC Funds. In addition, RBC GAM Inc. will
re-open Series F units of RBC Canadian Government Bond Index Fund
to new investors.
Management and administration fee reductions for certain RBC
Funds
Effective July 1, 2024,
the management and/or administration fees will be reduced for the
funds below and their applicable series:
Fund
|
Series
|
Management
Fee
|
Current
|
Effective July
1,
2024
|
RBC Select Conservative
Portfolio
|
A
|
1.53 %
|
1.50 %
|
RBC Select Conservative
Portfolio
|
T5
|
1.58 %
|
1.50 %
|
RBC Select Balanced
Portfolio
|
F & FT5
|
0.80 %
|
0.78 %
|
RBC Select Aggressive
Growth Portfolio
|
F & FT5
|
0.90 %
|
0.85 %
|
RBC Managed Payout
Solution
|
A
|
1.39 %
|
1.35 %
|
RBC Managed Payout
Solution – Enhanced
|
A
|
1.45 %
|
1.40 %
|
RBC Select Choices
Conservative Portfolio
|
A
|
1.68 %
|
1.60 %
|
RBC Select Choices
Conservative Portfolio
|
F
|
0.95 %
|
0.85 %
|
RBC Select Choices
Balanced Portfolio
|
A
|
1.87 %
|
1.85 %
|
RBC Select Choices
Balanced Portfolio
|
F
|
1.00 %
|
0.85 %
|
RBC Select Choices
Growth Portfolio
|
A
|
2.06 %
|
1.85 %
|
RBC Select Choices
Growth Portfolio
|
F
|
1.05 %
|
0.85 %
|
RBC Select Choices
Aggressive Growth Portfolio
|
A
|
2.25 %
|
1.85 %
|
RBC Select Choices
Aggressive Growth Portfolio
|
F
|
1.10 %
|
0.85 %
|
RBC Global Corporate
Bond Fund
|
A
|
1.50 %
|
1.35 %
|
RBC Global Corporate
Bond Fund
|
D
|
0.90 %
|
0.75 %
|
RBC Global Corporate
Bond Fund
|
F
|
0.75 %
|
0.60 %
|
Fund
|
Series
|
Administration
Fee
|
Current
|
Effective July
1,
2024
|
RBC Vision Balanced
Fund
|
A, D, DZ &
F
|
0.10 %
|
0.05 %
|
RBC Canadian Mid-Cap
Equity Fund
|
O
|
0.10 %
|
0.02 %
|
RBC U.S. Mid-Cap Value
Equity Fund
|
O
|
0.10 %
|
0.02 %
|
RBC U.S. Small-Cap Core
Equity Fund
|
O
|
0.10 %
|
0.02 %
|
RBC GAM Inc. reviews management and administration fees on an
ongoing basis.
Administration fees are used to pay for the following operating
expenses of a fund: regulatory filing fees, fees and expenses
associated with the Independent Review Committee, recordkeeping,
accounting and fund valuation costs, custody fees, audit and legal
fees, the costs of preparing and distributing annual and interim
reports, prospectuses, fund facts, ETF facts, statements and other
investor communications.
Changes to the asset allocation strategy or "glidepath" for
the existing PH&N LifeTime (2015 to 2060) Funds
The
PH&N LifeTime Funds are designed primarily for investors who
are saving money for the purpose of retirement, and use a
"glidepath" that adjusts the asset mix of the particular PH&N
LifeTime Fund relative to a target retirement year. When the
investment horizon is long (i.e., the target retirement year is
well into the future), the PH&N LifeTime Funds invest mostly in
equity funds with a focus on delivering growth potential. When the
investment horizon is short (i.e., the target retirement year is
nearing or has passed), the asset mix becomes more conservative to
help preserve capital through income-oriented investments, such as
fixed income funds. The assumptions about the investor used to
design the glidepath for each PH&N LifeTime Fund are now being
revised to the following:
Glidepath changes
Current
|
New
|
|
Asset
Mix
(Fixed
income funds (%) / Equity funds (%))
|
|
Asset
Mix
(Fixed
income funds (%) / Equity funds (%))
|
At age
21
|
23/77
|
At age
25
|
7/93
|
From ages 21 to
65
|
Equity allocation
decreases
as asset mix becomes more
conservative
|
From ages 25 to
65
|
Equity allocation
decreases as
asset mix becomes more conservative
|
At age
65
|
65/35
|
At age
65
|
69/31
|
Age
65+
|
Equity allocation will
continue to
decrease for the next 25 years.
Asset mix will eventually be 72/28.
|
Age
65+
|
Asset mix will remain
the same at
69/31, until the PH&N LifeTime
Fund terminates at the end of 25
years after it has reached its target
year.
|
With these glidepath changes, the current asset mix for the
PH&N LifeTime Funds will have a decrease in allocation to fixed
income funds, and a corresponding increase in allocation to equity
funds.
Asset mix: PH&N LifeTime (2015 to 2060)
Funds
Target
Retirement
Year
|
Fixed income funds (%) /
Equity funds (%)
(Current)
|
Fixed income funds
(%) / Equity funds
(%)
(New)
|
2015
|
70/30
|
69/31
|
2020
|
69/31
|
69/31
|
2025
|
64/36
|
66/34
|
2030
|
56/44
|
52/48
|
2035
|
54/46
|
40/60
|
2040
|
52/48
|
28/72
|
2045
|
46/54
|
19/81
|
2050
|
40/60
|
15/85
|
2055
|
28/72
|
11/89
|
2060
|
24/76
|
8/92
|
The percentages may vary up to 15% above or below the weightings
indicated in the table, as
described in the simplified prospectus for the PH&N LifeTime
Funds. There are minimal changes to the asset mix for the PH&N
LifeTime (2015 to 2030) Funds.
Risk rating changes
The risk rating for certain RBC
Funds has changed. These changes will be reflected in the
applicable Fund Facts as part of the renewal of the simplified
prospectus for RBC Funds, which is expected to be filed on or
around June 27, 2024.
These changes are based on the methodology mandated by the
Canadian Securities Administrators to determine the risk level of
mutual funds. RBC GAM Inc. reviews the risk rating for each fund on
an annual basis, as well as when a fund undergoes a material
change. These changes are the result of an annual review and not
the result of any changes to the investment objectives, strategies
or management of the funds.
Risk rating increase
Fund
|
Current
|
New
|
RBC Global Corporate
Bond Fund
|
Low
|
Low to
Medium
|
RBC Conservative Growth
& Income Fund
|
Low
|
Low to
Medium
|
RBC Retirement 2020
Portfolio
|
Low
|
Low to
Medium
|
Risk rating decrease
Fund
|
Current
|
New
|
RBC Target 2025
Education Fund
|
Low to
Medium
|
Low
|
Re-Opening of Series F units of RBC Canadian Government
Bond Index Fund to new investors
Effective June 27, 2024, Series F units of RBC Canadian
Government Bond Index Fund, which were capped on January 21, 2022, will be re-opened to new
investors.
Please consult your advisor and read the prospectus, Fund Facts
or ETF 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 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 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 Global Asset Management Inc. (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.