TORONTO, Oct. 15, 2021 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced final details regarding the scheduled maturity of RBC Target 2021 Corporate Bond Index ETF (TSX: RQI).
As announced earlier this year, RBC Target 2021 Corporate Bond Index ETF will mature effective the close of business on Friday, November 12, 2021. In anticipation of its maturity, subscriptions for units of RBC Target 2021 Corporate Bond Index ETF will no longer be accepted after the close of business today, Friday, October 15, 2021.
Redemption requests for RBC Target 2021 Corporate Bond Index ETF will be accepted until the close of business on Thursday, November 4, 2021. RQI is anticipated to be voluntarily delisted from the TSX, at the request of RBC GAM Inc., following the close of business on or about Monday, November 8, 2021. Investors may continue to buy or sell units of the ETF on a stock exchange until the delisting date. All units held by investors following the delisting will be subject to mandatory redemption on the maturity date of Friday, November 12, 2021.
Investors have the option to either invest the proceeds from RBC Target 2021 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 2022 to 2027.
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 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.
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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 $580 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.
SOURCE RBC Global Asset Management Inc.
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