RBC GAM launches ETF Series offerings for their Fixed Income Pool suite
Canadian investors can now access these one-ticket bond strategies through an ETF.
RBC Global Asset Management (GAM) recently announced the expansion of their ETF line-up on CBOE Canada with the launch of ETF series offerings for the RBC Fixed Income Pool suite, namely, RBC Conservative Bond Pool, RBC Core Bond Pool, and RBC Core Plus Bond Pool. The RBC Fixed Income Pool suite provides investors with access to advanced bond strategies by investing primarily in units of other mutual funds managed by RBC GAM or an affiliate of RBC GAM, emphasizing mutual funds that invest in fixed-income securities. By now offering these solutions in an ETF structure, RBC GAM has provided Canadian investors with greater optionality in how they choose to access these fixed income strategies.
RBC Fixed Income Pool suite overview
Managed by RBC Global Asset Management and leveraging the firm’s deep fixed income capabilities, these actively managed pools aim to deliver client outcomes ranging from regular income to modest capital appreciation over time. Composed of a diverse mix of underlying RBC, Phillips, Hager & North, and BlueBay fixed income strategies, the RBC Fixed Income Pool reflects the firm’s strong fixed income expertise and is designed to deliver better risk-adjusted returns and attractive yields. All three funds carry a management fee of 0.40%.
RBC Fixed Income Pool suite benefits
- A single core solution consolidating investors' fixed income investments.
- A broad set of fixed income assets helps to lower volatility and enhance income and return potential.
- Tactically adjusted based on market environment.
- Multi-asset fixed income exposure providing access to RBC GAM’s strong and diverse fixed income expertise.
- Multiple pool options to reflect different client needs.
RBC Fixed Income Pool ETF offerings
While all RBC Fixed Income Pool strategies are designed to provide regular income and capital appreciation, the underlying fixed income exposures within each solution do differ. Based on the fixed income exposure of each strategy, and their imputed yield potential and total return performance, investors can choose the strategy that best aligns with their investment objectives.
RBC Conservative Bond Pool (Ticker: RCNS)
The fund’s exposure leans towards shorter-term, investment grade Canadian bonds and will have exposure to some global investment-grade, high-yield, and emerging market debt securities to improve the pool’s risk/reward profile.
As taken from RBC GAM’s prospectus, the blended benchmark used to determine the fund’s risk classification gives insight into its underlying exposure. The blended benchmark is:
FTSE Canada Short Term Bond Index (60.0%), FTSE Canada Universe Bond Index (10.0%), Bloomberg Global Aggregate Corporate Bond Index hedged to the Canadian dollar (10.0%), J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified hedged to the Canadian dollar (3.0%), ICE BofA U.S. High Yield BB-B Index hedged to the Canadian dollar (3.0%), J.P. Morgan Emerging Local Markets Index Plus
(ELMI+) (6.5%) and J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Diversified (7.5%).
RBC Core Bond Pool (Ticker: RCOR)
The fund has a greater focus on medium-term, investment grade Canadian and global fixed income, while also providing material exposure to high-yield, and emerging market debt securities to generate attractive income and potential for modest capital appreciation.
As taken from RBC GAM’s prospectus, the blended benchmark used to determine the fund’s risk classification gives insight into its underlying exposure. The blended benchmark is:
FTSE Canada Short Term Bond Index (30.0%), FTSE Canada Universe Bond Index, (33.0%), Bloomberg Global Aggregate Corporate Bond Index hedged to the Canadian dollar (11.0%), J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified hedged to the Canadian dollar (3.0%), ICE BofA U.S. High Yield BB-B Index hedged to the Canadian dollar (3.0%), J.P. Morgan Emerging Local Markets Index Plus
(ELMI+) (13.0%) and J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Diversified (7.0%).
RBC Core Plus Bond Pool (Ticker: RPLS)
Designed to have the highest yield generation and total return performance of the pools, this fund will have a greater focus on Canadian fixed income, global fixed income and emerging market bonds.
As taken from RBC GAM’s prospectus, the blended benchmark used to determine the fund’s risk classification gives insight into its underlying exposure. The blended benchmark is:
FTSE Canada Short Term Bond Index (16.0%), FTSE Canada Universe Bond Index (39.0%), Bloomberg Global Aggregate Corporate Bond Index hedged to the Canadian dollar (20.0%), ICE BofA U.S. High Yield BB-B Index hedged to the Canadian dollar (2.0%), J.P. Morgan Emerging Local Markets Index Plus (ELMI+) (5.0%), J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Diversified (4.0%), Thomson Reuters Global Convertible Focus Index hedged to the Canadian dollar (2.0%), J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified hedged to the Canadian dollar (7.0%) and J.P. Morgan GBI-Emerging Markets Index Global Diversified (5.0%).
Conclusion
The RBC Fixed Income Pool suite provides investors with comprehensive and diversified exposures to fixed income markets. For investors that desire to gain broad-based fixed income exposure, these solutions are a convenient pathway through which exposure can be attained in their portfolio. With RBC now making these solutions accessible via ETFs, investors are now able to truly utilize them in a frictionless manner.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
