RBC Global Asset Management Inc. announces changes to certain RBC Funds and PH&N Funds

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:

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

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

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

Risk rating decrease

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.