TORONTO, March 22, 2019 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced that unitholders have approved the mergers of five RBC Index ETFs, the change in investment fund manager from RBC GAM Inc. to BlackRock Asset Management Canada Limited ("BlackRock Canada") for the RBC Global Government Bond (CAD Hedged) Index ETF and changes to the investment objectives of the RBC Index Funds.
RBC GAM Inc. also announced further details regarding the termination of the RBC Emerging Markets Equity Index ETF.
Details of the changes are as follows.
RBC Index ETF mergers
Unitholders have approved a proposal to merge the following RBC ETFs with the corresponding iShares ETF (as set forth in the table below) effective on or about April 8, 2019 (and on or about April 9, 2019 in the case of the merger involving the RBC International Equity Index ETF). The mergers have also received regulatory approval.
Terminating RBC ETF
Continuing iShares ETF
RBC Canadian Short Term Bond Index
iShares Core Canadian Short Term Bond
Index ETF (XSB)
RBC Canadian Bond Index ETF (RCUB)
iShares Core Canadian Universe Bond Index
RBC Canadian Equity Index ETF (RCAN)
iShares Core S&P/TSX Capped Composite
Index ETF (XIC)
RBC U.S. Equity Index ETF (RUSA)
iShares Core S&P 500 Index ETF (XUS)
RBC International Equity Index ETF (RINT)
iShares Core MSCI EAFE IMI Index ETF
Unitholders of each terminating RBC ETF will receive units of the respective continuing iShares ETF based on the NAV per unit of the respective terminating RBC ETF and continuing iShares ETF. Each of the terminating RBC ETFs will be wound up following the mergers. Unitholders will have the right to redeem units of the terminating RBC ETFs up to the close of business on the business day immediately preceding the effective date of the mergers.
Investment fund manager change: RBC Global Government Bond (CAD Hedged) Index ETF (RGGB)
Unitholders have approved a proposal to change the trustee, investment fund manager and portfolio advisor of the RBC Global Government Bond (CAD Hedged) Index ETF from RBC GAM Inc. to BlackRock Canada effective on or about April 8, 2019. The change in investment fund manager has also received regulatory approval.
In addition, as a result of the investment fund manager change, effective on or about April 8, 2019 State Street Global Advisors, Ltd. will no longer be the sub-advisor of the RBC Global Government Bond (CAD Hedged) Index ETF. Following the change of manager, BlackRock Canada's non-Canadian affiliate, BlackRock Institutional Trust Company, N.A. will act as sub-advisor to the ETF.
The RBC Global Government Bond (CAD Hedged) Index ETF will be renamed the iShares Global Government Bond Index ETF (CAD-Hedged) and the ETF's ticker will change to XGGB effective on or about April 8, 2019. The ETF will continue to be listed on the NEO Exchange. BlackRock Canada expects that units of XGGB will be qualified for sale under a prospectus dated on or about April 8, 2019 that will be filed by BlackRock Canada.
Changes to the investment objectives of RBC Index Funds
Unitholders have approved a proposal to change the investment objectives of the RBC Index Funds effective on or about April 8, 2019 (and on or about April 9, 2019 in respect of the RBC International Index Currency Neutral Fund) that will provide the Funds with the flexibility to be able to invest in units of iShares ETFs.
The RBC Index Funds include:
- RBC Canadian Government Bond Index Fund
- RBC Canadian Bond Index Fund
- RBC Canadian Index Fund
- RBC U.S. Index Fund
- RBC U.S. Index Currency Neutral Fund
- RBC International Index Currency Neutral Fund
ETF termination: RBC Emerging Markets Equity Index ETF (REEM)
As announced earlier this year, the RBC Emerging Markets Equity Index ETF will be terminated effective April 5, 2019. The fund's ticker, REEM, is anticipated to be voluntarily delisted from the NEO Exchange, at the request of RBC GAM Inc., following the close of business on or about April 3, 2019.
Commissions, trailing commissions, management fees and expenses all may be associated with investing in mutual funds and exchange-traded funds (ETFs). Please read the relevant prospectus before investing. Mutual Funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. (a member of the RBC GAM group of companies) and iShares ETFs managed by BlackRock Asset Management Canada Limited.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes institutional 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 $425 billion in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.
BlackRock Canada is a wholly-owned subsidiary of BlackRock, Inc., BlackRock, Inc. helps investors build better financial futures. As a fiduciary to its clients, BlackRock, Inc. provides the investment and technology solutions investors need when planning for their most important goals. As of December 31, 2018, the firm managed approximately US$5.98 trillion in assets on behalf of investors worldwide. BlackRock, Inc., together with its worldwide affiliates, is the world's largest ETF provider by assets under management as of September 30, 2018 (source: BlackRock, Inc.). For additional information on BlackRock, Inc., please visit www.blackrock.com.
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 800+ exchange traded funds (ETFs) and US$1.8 trillion in assets under management as of December 31, 2018. iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock, Inc., trusted to manage more money than any other investment firm.
iSHARES is a registered trademark of BlackRock Inc., or its subsidiaries in the United States and elsewhere. Used under licence.
"FTSE®" is a trademark of the London Stock Exchange Group companies and is used under license. MSCI and EAFE are trademarks of MSCI, Inc. S&P® is a registered trademark of Standard & Poor's Financial Services LLC. TSX is a trademark of TSX Inc. The funds referenced herein are not sponsored, endorsed, sold or promoted by FTSE International Limited, FTSE Global Debt Capital Markets Inc., MSCI, Inc., Standard & Poor's Financial Services LLC, TSX Inc. or their licensors, and they make no representation, warranty, or condition regarding the results to be obtained from the use of any index referenced herein or the advisability of investing in any of the funds.
SOURCE RBC Global Asset Management