TORONTO, Aug. 17,
2023 /CNW/ - RBC Global Asset Management Inc.
("RBC GAM Inc.") today announced final details regarding the
scheduled maturity of RBC Target 2023 Corporate Bond Index ETF
(TSX: RQK).
As announced earlier this year, RBC Target 2023 Corporate Bond
Index ETF will mature effective the close of business on
Friday, September 15, 2023 (the
"Maturity Date"). In anticipation of its maturity, subscriptions
for units of RBC Target 2023 Corporate Bond Index ETF will no
longer be accepted after the close of business today, Thursday, August 17, 2023.
Redemption requests for RBC Target 2023 Corporate Bond Index ETF
will be accepted until the close of business on Tuesday, September 12, 2023. RQK is anticipated
to be voluntarily delisted from the TSX, at the request of RBC GAM
Inc., following the close of business on or about Tuesday, September 12, 2023. Investors may
continue to buy or sell units of the ETF 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 RBC Target 2023
Corporate Bond Index ETF to cash. After paying or making adequate
provision for the liabilities and obligations of RBC Target 2023
Corporate Bond Index ETF, RBC GAM Inc. will, as soon as practicable
following the Maturity Date, distribute the net assets of RBC
Target 2023 Corporate Bond Index 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 RBC
Target 2023 Corporate Bond Index ETF 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 Corporate Bond Index ETFs have
a specified maturity date established when the ETF is launched.
When the ETF reaches the Maturity Date, the ETF's final NAV is
returned to the current unitholders.
An RBC Target Maturity Corporate Bond Index 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 Government Bond ETFs and
six RBC Target Maturity Corporate Bond Index ETFs, with maturities
ranging from 2024 to 2029.
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 Maturity Corporate Bond ETFs ("TMCBs") have been
developed solely by RBC GAM. The TMCBs 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"). FTSE Russell is a trading name of certain of the LSE
Group companies. All rights in 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.
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 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 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 $540 billion in assets
and have approximately 1,500 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management Inc.
