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RBC Asset Management has announced numerous changes to its product line-up, including fund mergers, closures and the capping of one of its best known names.
The RBC O’Shaughnessy U.S. Growth Fund will be capped effective June 30, 2006, to allow the fund’s management to deploy the large amount of capital gathered recently. The move affects only new investment, and pre-authorized investment plans set up before the end of June will not be affected.
RBC also announced it would terminate the RBC Global Communications and Media Sector Fund, the RBC Global Consumer Trends Sector Fund, and the RBC Global Industrials Sector Fund at the end of June.
RBC says the funds failed to gather sufficient assets and that management did not consider their mandates to be viable with such a small asset base. According to Morningstar Canada, the media fund had attracted just $2.8 million; Consumer Trends had $5.2 million; and the industrial fund had $6.7 million.
Unitholders may redeem or switch their holdings in each of the Funds up to the closing date, after which any remaining units will be redeemed with the proceeds distributed to unitholders.
But the most wide-ranging changes announced by the company on Friday are proposals to increase foreign content allocations and simplify the bank’s fund line-up.
“Over the past 18 months, our portfolio management team completed a significant amount of research related to asset allocation and global investing,” said Brenda Vince, president, RBC Asset Management. “The removal of foreign content restrictions by the federal government in July 2005 provided an additional opportunity to incorporate this work into the RBC Funds.”
These proposed changes, which require unitholder and regulatory approval, include:
- Allowing foreign investments in the RBC Balanced Growth Fund, giving it a global mandate. This change would bring the fund in line with the objectives of the RBC Global Balanced Fund, so RBC is seeking approval to merge the funds;
- Inclusion of U.S. equities in the RBC Blue Chip Canadian Equity Fund, which will be renamed the RBC North American Dividend Fund;
- Permitting RBC Canadian Value Fund to invest in the U.S., and renaming it RBC North American Value Fund;
- A similar change to transform RBC Canadian Growth Fund into RBC North American Growth Fund;
- Allowing RBC Energy Fund to invest in energy and energy-related companies worldwide, changing the name to RBC Global Energy Fund;
- The same global mandate will be applied to RBC Precious Metals Fund, and it will be renamed RBC Global Precious Metals Fund.
While RBC is transforming these funds into global mandates, it also plans to alter its current line-up of global sector funds. If approved the mandate of RBC Global Financial Services Sector Fund will be amended to include securities in “companies that develop, manufacture and/or distribute consumer goods and services.” As a result of this shift, the fund will be renamed RBC Global Consumer and Financials Fund.
The mandate of RBC Global Resources Sector Fund would be changed to allow investment in companies that “develop, design or provide materials, products and services significant to the infrastructure of a country or region,” and the fund would be renamed RBC Global Resources Fund.
RBC is also seeking approval to change the mandate of RBC Global Technology Sector Fund, to include investments in companies involved in the communications industries. The fund would be renamed RBC Global Technology Fund.
On top of all these mandate changes, RBC is seeking approval to merge RBC Global Education Fund into the RBC Target2015 Education Fund.
RBC will seek approval for the mergers and mandate changes at special meetings to be held on or about June 23, 2006 in Toronto. If the necessary approvals are received the proposed mergers and changes to investment objectives will take effect on or about June 30, 2006.
Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com
(03/31/06)
|
RBC Asset Management has announced numerous changes to its product line-up, including fund mergers, closures and the capping of one of its best known names.
The RBC O’Shaughnessy U.S. Growth Fund will be capped effective June 30, 2006, to allow the fund’s management to deploy the large amount of capital gathered recently. The move affects only new investment, and pre-authorized investment plans set up before the end of June will not be affected.
RBC also announced it would terminate the RBC Global Communications and Media Sector Fund, the RBC Global Consumer Trends Sector Fund, and the RBC Global Industrials Sector Fund at the end of June.
RBC says the funds failed to gather sufficient assets and that management did not consider their mandates to be viable with such a small asset base. According to Morningstar Canada, the media fund had attracted just $2.8 million; Consumer Trends had $5.2 million; and the industrial fund had $6.7 million.
Unitholders may redeem or switch their holdings in each of the Funds up to the closing date, after which any remaining units will be redeemed with the proceeds distributed to unitholders.
But the most wide-ranging changes announced by the company on Friday are proposals to increase foreign content allocations and simplify the bank’s fund line-up.
“Over the past 18 months, our portfolio management team completed a significant amount of research related to asset allocation and global investing,” said Brenda Vince, president, RBC Asset Management. “The removal of foreign content restrictions by the federal government in July 2005 provided an additional opportunity to incorporate this work into the RBC Funds.”
These proposed changes, which require unitholder and regulatory approval, include:
- Allowing foreign investments in the RBC Balanced Growth Fund, giving it a global mandate. This change would bring the fund in line with the objectives of the RBC Global Balanced Fund, so RBC is seeking approval to merge the funds;
- Inclusion of U.S. equities in the RBC Blue Chip Canadian Equity Fund, which will be renamed the RBC North American Dividend Fund;
- Permitting RBC Canadian Value Fund to invest in the U.S., and renaming it RBC North American Value Fund;
- A similar change to transform RBC Canadian Growth Fund into RBC North American Growth Fund;
- Allowing RBC Energy Fund to invest in energy and energy-related companies worldwide, changing the name to RBC Global Energy Fund;
- The same global mandate will be applied to RBC Precious Metals Fund, and it will be renamed RBC Global Precious Metals Fund.
While RBC is transforming these funds into global mandates, it also plans to alter its current line-up of global sector funds. If approved the mandate of RBC Global Financial Services Sector Fund will be amended to include securities in “companies that develop, manufacture and/or distribute consumer goods and services.” As a result of this shift, the fund will be renamed RBC Global Consumer and Financials Fund.
The mandate of RBC Global Resources Sector Fund would be changed to allow investment in companies that “develop, design or provide materials, products and services significant to the infrastructure of a country or region,” and the fund would be renamed RBC Global Resources Fund.
RBC is also seeking approval to change the mandate of RBC Global Technology Sector Fund, to include investments in companies involved in the communications industries. The fund would be renamed RBC Global Technology Fund.
On top of all these mandate changes, RBC is seeking approval to merge RBC Global Education Fund into the RBC Target2015 Education Fund.
RBC will seek approval for the mergers and mandate changes at special meetings to be held on or about June 23, 2006 in Toronto. If the necessary approvals are received the proposed mergers and changes to investment objectives will take effect on or about June 30, 2006.
Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com
(03/31/06)
