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News Releases

 

PH&N files prospectus amendment: changes will enhance transparency, accessibility of PH&N funds

VANCOUVER, November 12, 2008 — Phillips, Hager & North Investment Management Ltd. (PH&N) today announced the filing of an Amended and Restated 2008 Simplified Prospectus for the 25 PH&N funds currently available to retail investors. The amendment reflects changes to PH&N's product offering that are designed to enhance transparency, align PH&N's fund series with industry naming conventions, and provide greater accessibility and expanded options for investors and advisors.

Subject to regulatory approval, the following changes will come into effect on November 17, 2008:

  • The re-naming of Series A fund units to Series D, in order to clarify that this series is not intended for use by third-party advisors. This is a naming change only and has no impact on the funds' management fees or the service or advice provided by PH&N to its clients. Series D fund units will continue to be available for purchase by investors directly through PH&N, as well as through RBC Direct Investing and other discount brokers.

  • The introduction of Series C fund units, designed for use by full-service advisors. This new series is designed to expand the availability of PH&N funds to investors, in particular those who deal with third-party advisors. Series C fund units will be available for 25 PH&N funds, all of which will have management fees lower than those of the category average (based on Morningstar data as at September 30, 2008). PH&N will pay a trailing commission on assets invested in Series C units of up to 100 basis points for equity, dividend and balanced funds, 50 basis points for fixed income funds, and 25 basis points for money market funds.

  • The launch of Series C coincides with new, lower minimum investment requirements for PH&N funds purchased through full-service advisors. Effective November 17, 2008, the minimum initial investment for Series C or Series F units will be $1,000 per fund in nominee-name accounts (previously, the minimum investment through the advice channel was $5,000 per fund).

  • Series D units of PH&N funds will no longer be available for sale through third-party advisors and Series B fund units will no longer be available for sale. As of that date, advisors will generally be restricted to purchasing Series C and Series F units only.

Also, subject to regulatory approval, effective December 1, 2008, PH&N may pay a trailing commission on assets invested in Series D units that are held through discount brokerage dealers. This change is expected to result in lower fees paid by many investors who choose to purchase these funds through discount brokerage dealers, as discount brokerage dealers that collect the trailing commission are expected to discontinue the practice of charging front-end sales fees. There is no change to the management fees of Series D fund units as a result of this trailing commission. Investors can continue to purchase Series D fund units directly from Phillips, Hager & North Investment Funds Ltd., with no trailing commission paid.

About RBC Global Asset Management and RBC Wealth Management
RBC Global Asset Management comprises RBC Asset Management Inc. (RBC AM), Phillips, Hager & North Investment Management Ltd. (PH&N) in Canada and Voyageur Asset Management Inc. in the U.S. Combined, RBC AM and PH&N have $102 billion in IFIC-reported mutual fund assets under management and an additional $49 billion in other institutional and private client assets under management. RBC AM and PH&N received the Lipper Awards for "Best Overall Fund Group" and "Best Bond Family" in Canada respectively for the second consecutive year in 2008.

Global 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. RBC Wealth Management also provides asset management and trust products and services directly and through RBC and third-party distributors to all client segments, and has over C$500 billion of assets under administration, more than
C$240 billion of assets under management and more than 4,000 financial consultants, advisors, private bankers and trust officers.

- 30 -

For more information, please contact:
Chris Dotson,
RBC Global Asset Management Communications,
(604) 408-6009

Jackie Braden,
RBC Media Relations,
(416) 974-2124

Required disclosures and warnings:
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Phillips, Hager & North Investment Funds Ltd. is the principal distributor of the units of the PH&N and BonaVista funds. The management fees and operating expenses associated with the PH&N and BonaVista investment funds are paid by the respective fund. The fees for Sky's sub-advisory services with respect to non-North American equity asset management in the PH&N investment funds and the BonaVista Global Balanced Fund are paid by PH&N and not by the funds.


 



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11/12/2008 09:30:57