RBC Asset Management to lower costs and increase cost certainty
for Mutual Fund Investors
Management fees for Series F units of RBC Monthly Income Fund also decreased
TORONTO, June 25, 2007 — Mutual fund investors
will benefit from lower costs and increased cost certainty,
as RBC Asset Management (RBC AM) continues to improve value
for unitholders. Effective July 1, 2007, RBC Asset Management
will implement a fixed administration fee for all RBC Funds.
In return, RBC Asset Management will pay the majority of operating
expenses for the Funds. RBC Asset Management announced this
change in April and notified unitholders in writing.
"The fixed administration fee ranges from two to ten
basis points on money market funds and fixed income funds,
and from ten to 20 basis points on balanced and equity funds.
This will reduce the management expense ratios (MERs) on more
than 80 percent of the RBC Funds," said Frank Lippa,
chief operating officer and chief financial officer, RBC Asset
Management Inc. "By replacing operating expenses with
a fixed administration fee, the MER for each RBC Fund will
be more stable and provide unitholders with greater certainty
about the cost of investing in an RBC Fund."
Advisor Series unitholders approve fixed administration fee
proposal
For Advisor Series units of the funds listed below, this change
required unitholder approval. The meetings of these unitholders
were held on Friday, June 22 and the change was approved by
the vast majority of unitholders.
RBC Canadian
Money Market Fund
RBC Bond Fund
RBC Advisor Canadian Bond Fund
RBC Global High Yield Fund
RBC Enhanced Cash Flow Portfolio
RBC Balanced Fund
RBC Tax Managed Return Fund
RBC Canadian Dividend Fund
RBC Canadian Diversified Income Trust Fund
RBC North American Dividend Fund
RBC DS All Equity Global Portfolio |
RBC O'Shaughnessy
U.S. Value Fund
RBC O'Shaughnessy International Equity Fund
RBC Global Titans Fund
RBC Global Precious Metals Fund
RBC O'Shaughnessy Global Equity Fund
RBC DS North American Focus Fund
RBC DS Canadian Focus Fund
RBC DS International Focus Fund
RBC DS Balanced Global Portfolio
RBC DS Growth Global Portfolio |
Management fee reduction for Series F units of the RBC
Monthly Income Fund
In addition, effective July 1, 2007, RBC AM is reducing
the management fee for Series F units of the RBC Monthly Income
Fund from 0.75 percent to 0.60 percent.
About RBC Asset Management
RBC Asset Management Inc. is an indirect, wholly owned subsidiary
of Royal Bank of Canada. RBC Asset Management Inc. provides
a broad range of investment services to investors through
mutual funds, pooled funds and separately managed portfolios.
With offices in major financial centres around the world,
RBC Asset Management Inc. is one of Canada's largest money
managers.
RBC Asset Management's mutual fund family was awarded the
"Best Overall Fund Group" in Canada for 2007 by
Lipper Inc. The prestigious award is part of a global program
of events held by Lipper in 21 countries to highlight funds
and fund families that excel in delivering consistently strong
risk-adjusted performance relative to their peers. Visit our
website at www.rbcam.com.
RBC Asset Management is part of RBC Wealth
management which directly serves affluent and high net worth
clients in Canada, the United States, Latin America, Europe
and Asia, provides asset management and trust services through
RBC partners and third-party distributors and has over $500
billion of assets under administration, 3,500 financial advisors
and $150 billion of asset under management.
- 30 -
For further information, please contact:
Rina Cortese, RBC Wealth Management, (416) 974-6970, rina.cortese@rbc.com
Jackie Braden, Media Relations, (416) 974-2124, jackie.braden@rbc.com
|
