TORONTO, Oct. 21,
2022 /CNW/ - RBC Global Asset Management Inc.
("RBC GAM Inc.") today announced final details regarding the
scheduled maturity of RBC Target 2022 Corporate Bond Index ETF
(TSX: RQJ).
As announced earlier this year, RBC Target 2022 Corporate Bond
Index ETF will mature effective the close of business on
Friday, November 25, 2022. In
anticipation of its maturity, subscriptions for units of RBC Target
2022 Corporate Bond Index ETF will no longer be accepted after the
close of business today, Friday, October 21,
2022.
Redemption requests for RBC Target 2022 Corporate Bond Index ETF
will be accepted until the close of business on Tuesday, November 22, 2022. RQJ is anticipated to
be voluntarily delisted from the TSX, at the request of RBC GAM
Inc., following the close of business on or about Tuesday, November 22, 2022. 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 25,
2022.
Investors have the option to either invest the proceeds from RBC
Target 2022 Corporate Bond Index ETF into a subsequent maturity of
another 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 seven
ETFs with maturities ranging from 2023 to 2029.
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.
RBC Target Maturity Corporate Bond ETFs ("TMCBs") have been
developed solely by RBC GAM. The TMCBs are not in any way connected
to or sponsored, endorsed, sold or promoted by the London Stock
Exchange Group plc and its group undertakings (collectively, the
"LSE Group"). FTSE Russell is a trading name of certain of the LSE
Group companies. All rights in the FTSE Maturity Corporate Bond
Indices vest in the relevant LSE Group company which owns the FTSE
Maturity Corporate Bond Indices. "FTSE®" is a trade mark of the
relevant LSE Group company and is used by any other LSE Group
company under license.
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 92,000+ 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 17 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) 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 $540 billion in assets
and have approximately 1,500 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management Inc.