TORONTO, Sept. 13, 2019 /CNW/ - RBC Global Asset
Management Inc. ("RBC GAM Inc.") today announced final details
regarding the scheduled maturity of RBC Target 2019 Corporate Bond
Index ETF (TSX: RQG).
As announced earlier this year, RBC Target 2019 Corporate Bond
Index ETF will mature effective at the close of business on
Friday, November 15, 2019. In
anticipation of its maturity, subscriptions for units of RBC Target
2019 Corporate Bond Index ETF will no longer be accepted after the
close of business today, Friday, September
13, 2019.
Redemption requests for RBC Target 2019 Corporate Bond Index ETF
will be accepted until the close of business on Thursday, November 7, 2019. RQG is anticipated to
be voluntarily delisted from the TSX, at the request of RBC GAM
Inc., following the close of business on or about Wednesday, November 13, 2019. All units still
held by investors following the delisting will be subject to
mandatory redemption on the maturity date of Friday, November 15, 2019.
Investors have the option to either invest the proceeds from RBC
Target 2019 Corporate Bond Index ETF into a subsequent maturity of
an RBC Target Maturity Corporate Bond ETF or to utilize the
proceeds in a ladder strategy to help manage interest rate and
reinvestment risk.
The RBC Target Maturity Corporate Bond ETF family includes six
ETFs with maturities ranging from 2020 to 2025.
Unlike traditional ETFs, which have a perpetual life, target
maturity ETFs have a specified maturity date established when the
ETF is launched. When the ETF reaches the maturity date, the ETF's
final net asset value (NAV) is returned to the current
unitholders.
A target maturity 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.
For further information regarding RBC ETFs, please visit
https://www.rbcgam.com/etfs.
Commissions, management fees and expenses all may be associated
with investments in exchange-traded funds (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.
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 $450 billion in assets and have approximately
1,400 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management