TORONTO, June 23, 2020 /CNW/ - RBC Global Asset
Management Inc. ("RBC GAM Inc.") today announced details regarding
the reduction of management fees and changes to the asset
allocation strategy or "glidepath" for the existing RBC Retirement
(2020 to 2050) Portfolios and the launch of new RBC Retirement
(2055 and 2060) Portfolios.
Fee reductions for RBC Retirement (2020 to 2050)
Portfolios
RBC GAM Inc. reviews management fees on an
ongoing basis. These reductions are part of our commitment to
remain a leader in delivering excellent value to our clients.
The management fees for the following funds and the applicable
series will be reduced on or about July 1,
2020:
RBC Retirement
2020 Portfolio
|
Series
|
Management
Fee
|
Current
|
Effective on or
about July 1, 2020
|
A
|
1.50%
|
1.45%
|
Advisor*
|
1.50%
|
1.45%
|
T5
|
1.50%
|
1.45%
|
F
|
0.75%
|
0.70%
|
FT5
|
0.75%
|
0.70%
|
RBC Retirement
2025 Portfolio
|
Series
|
Management
Fee
|
Current
|
Effective on or
about July 1, 2020
|
A
|
1.50%
|
1.45%
|
Advisor*
|
1.50%
|
1.45%
|
F
|
0.75%
|
0.70%
|
RBC Retirement
(2030 to 2050) Portfolios
|
Series
|
Management
Fee
|
Current
|
Effective on or
about July 1, 2020
|
A
|
1.80%
|
1.70%
|
Advisor*
|
1.80%
|
1.70%
|
F
|
0.80%
|
0.70%
|
*Effective June 26,
2020, Advisor Series units will be capped. Effective July 31, 2020,
initial sales charge and low-load sales charge options for Advisor
series will be re-designated to Series A units. Advisor Series
units with a deferred sales charge option will remain
capped.
|
Five years prior to each target retirement year and on or about
January 1 of the applicable year, the
management fee will be further reduced to 1.45% on Series A units
of the RBC Retirement (2030 to 2050) Portfolios.
Changes to the asset allocation strategy
RBC
Retirement Portfolios ("the Portfolios") are designed primarily for
investors who are saving money for the purpose of retirement. They
use an asset allocation strategy or "glidepath" that adjusts the
asset mix of the portfolio relative to a target retirement year.
When the investment horizon is long, the Portfolios invest in
equity funds with the aim of earning a higher return. When the
investment horizon is short, capital preservation and/or asset
protection takes precedence and the asset mix becomes more
conservative. When the Portfolios were launched in 2016, a number
of assumptions were used to design the glidepath. These assumptions
are now being revised to the following:
Glidepath changes
|
Previous
|
Revised
|
Initial age of the
investor
|
30
|
25
|
Years of
working
|
35
|
40
|
With these changes, the current asset mix for RBC Retirement
2050 Portfolio will have a modest decrease in allocation to fixed
income funds, and a corresponding increase in allocation to equity
funds.
Asset mix: RBC Retirement 2050 Portfolio
|
Previous
|
Revised
|
Fixed income
funds
|
38%
|
35%
|
Equity
funds
|
62%
|
65%
|
There are no changes to the asset mix for the remaining RBC
Retirement (2020 to 2045) Portfolios.
Launch of new RBC Retirement (2055 and 2060)
Portfolios
RBC GAM Inc. will be launching the new RBC
Retirement 2055 Portfolio and RBC Retirement 2060 Portfolio. These
new funds are designed to meet the needs of investors who are
saving towards their retirement, which they expect will commence
around 2055 and 2060 respectively.
A preliminary prospectus relating to the RBC Retirement 2055
Portfolio and RBC Retirement 2060 Portfolio has been filed with
certain Canadian securities commissions or similar authorities. You
cannot buy units of these funds until the relevant securities
commissions or similar authorities issue receipts for the
prospectus of the funds.
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. 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 84,000+ employees who 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 34 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 $480 billion in assets and have approximately
1,400 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management