RBC Global Asset Management Wednesday announced the upcoming launch of the RBC High Yield Bond Fund and the closure of the PH&N High Yield Bond Fund to new investors.

“We are exceptionally fortunate to have an accomplished team of high yield bond managers whose capabilities benefit our clients,” says John Montalbano, CEO of RBC Global Asset Management. “As we prudently cap the PH&N High Yield Bond Fund for our existing clients, we are excited to launch the RBC High Yield Bond Fund for new investors seeking a conservative high yield bond investment with a focus on opportunities beyond Canada’s borders.”

RBC High Yield Bond Fund will be available for purchase October 12, 2010. The new fund will be managed by Frank Gambino, senior portfolio manager and investment grade and high yield bond expert with RBC Asset Management Inc. The fund is appropriate for long-term investors seeking a combination of income and capital growth potential, offering diversified exposure to high yield investment opportunities within the Canadian and U.S. markets.

The new fund will be available to individual investors through four low-cost management fee options: 0.90% for Series D (for clients who invest directly through PH&N Investment Services and RBC Direct Investing), 1.25% for Series A, 1.25% for Advisor Series and 0.75% for Series F (available through financial advisors). The fund is also available to institutional investors through Series O.

PH&N High Yield Bond Fund to close to new investors

PH&N High Yield Bond Fund will be closed to new investors effective November 26. Since its initial launch in July 2000, the fund has grown steadily in size, recently surpassing $2 billion in assets under management.

“We have been extremely pleased with the tremendous success of the fund over the past 10 years,” says Hanif Mamdani, lead manager of the fund and head of alternative investments for RBC Global Asset Management. “We made the decision to close the fund to new investors as a proactive measure. This will preserve future capacity for current investors and help maintain the integrity of our disciplined investment management approach. Existing investors will still be able to make additional purchases in the accounts they currently hold.”

The manager may also maintain capacity for certain investors, including funds that are managed by the firm or its affiliates.

IE