Business as usual for RBC Money Market Funds
TORONTO, August 16, 2007 — RBC Asset Management
Inc. (RBC AM) is providing additional information regarding
the holdings in RBC Money Market Funds of asset-backed commercial
paper.
All asset-backed commercial paper owned by RBC Money Market
Funds is through conduits sponsored by the other four major
Canadian chartered banks. The underlying assets in these major
bank conduits are virtually all Canadian with transparent
valuations and high credit quality. These assets include mortgages,
auto loans, personal lines of credit, and credit card receivables
and there is no exposure to the U.S. sub-prime, collateralized
debt obligation (CDO) and derivatives markets. RBC Money Market
Funds do not have any exposure to the non-bank sponsored conduits
that were covered by the agreement struck earlier today by
a number of financial institutions to address liquidity issues
in these products.
"RBC AM does not expect issues in valuing RBC Money
Market Funds or changes to their net asset value, and will
continue to sell and redeem funds as our clients deem appropriate,"
said Brenda Vince, president of RBC Asset Management Inc.
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 and has over $83 billion in assets under management.
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 assets under management.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements.
These forward-looking statements include, but are not limited
to, statements about our beliefs, outlooks and expectations.
Forward-looking statements involve numerous factors and assumptions
and are subject to inherent risks and uncertainties, both
general and specific. We caution readers not to place undue
reliance on our forward-looking statements as a number of
factors could cause actual results to differ materially from
the beliefs, outlooks and expectations expressed in our forward-looking
statements. RBC does not undertake to update any forward-looking
statement that is contained in this news release.
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Media contacts:
Rina Cortese, RBC Wealth Management, (416) 974-6970
Katherine Gay, RBC Wealth Management, (416) 974-6286
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