RBC GAM launches BlueBay Global Convertible Bond Fund

“We have recently seen a lot of risk aversion in the market due to ongoing volatility. As a result, we are pleased to offer additional choice to investors seeking to combine the security of bonds with the upside potential of equities,” says Doug Coulter, president of RBC GAM.

“Managed by Michael Reed, senior portfolio manager, and Alessandro Esposito, portfolio manager, the new fund draws on the depth of BlueBay’s fixed income expertise. The fund provides another way for Canadians to access the global convertible bond markets and diversify their portfolios,” he adds.

The new fund invests primarily in global convertible bonds, which tend to have low correlations to other bonds in a rising rate environment and offers less volatility than equities. RBC GAM says the fund is appropriate for investors seeking a combination of current income and capital growth potential and who want exposure to a portfolio of global convertible bonds to diversify the fixed-income portion of their overall portfolio. Investors should have a long-term investment horizon and should be able to tolerate a medium level of investment risk.

The new fund is available to individual investors through six low-fee options: Series A; Advisor Series; Series H; Series F and Series I (available via financial advisors); and Series D (available via direct-to-client platforms, PH&N Investment Services and RBC Direct Investing).

The management fees for each fund series are as follows: Series A, 1.70%; Advisor, 1.70%, Series H, 1.45%; Series F, 0.95%; Series I, 0.70%; and Series D, 1.10%.

Series H and Series I units are available for investors with a minimum investment of $200,000. The funds are also available to institutional investors through Series O.