RBC Global Asset Management is launching the PH&N inflation-linked bond fund, which is designed for investors who seek a cost-efficient vehicle that generates interest income linked to inflation.

Managed by the fixed-income team at Phillips, Hager & North Investment Management Ltd., the fund invests primarily in real-return bonds and inflation-linked bonds issued or guaranteed by Canadian and foreign governments and corporations. It combines active management by PH&N’s fixed income team with an advantageous fee structure; it also has among the lowest management fees among funds in the inflation-linked fixed-income category in Canada (0.80% for Series C units, 0.45% for Series D units, and 0.30% for Series F units).

“We are pleased to offer investors additional choice in the form of a bond fund that provides inflation protection, diversification, and the expertise of PH&N’s fixed income team,” said John Montalbano, head of RBC Global Asset Management and CEO of Phillips, Hager & North. “Many investors today are concerned about the possibility of rising inflation in the future, and this fund is structured to help investors not only save for retirement, but do so in a vehicle that preserves their spending power over the long term. Moreover, consistent with our focus on value, this fund is a low-cost leader in its category.”

The fund’s lead managers are Scott Lamont, vice president and head of PH&N’s fixed income team, and William John, vice president.

Series D units are available directly through PH&N Investment Funds Ltd. and RBC Direct Investing Inc. Series C and F units are available through advisors. All series are available for sale effective Tuesday.