Effective July 17, RBC Asset Management will implement a fixed administration fee for all RBC Funds.
In return, RBC Asset Management will pay the majority of operating expenses for the funds. RBC Asset Management announced this change in April and notified unitholders in writing.
“The fixed administration fee ranges from two to ten basis points on money market funds and fixed income funds, and from ten to 20 basis points on balanced and equity funds. This will reduce the management expense ratios (MERs) on more than 80 percent of the RBC Funds,” says Frank Lippa, COO and CFO, RBC Asset Management Inc. “By replacing operating expenses with a fixed administration fee, the MER for each RBC Fund will be more stable and provide unitholders with greater certainty about the cost of investing in an RBC Fund.”
This change required unitholder approval for Advisor series units of several funds. The meetings of these unitholders were held on Friday, June 22 and the change was approved by the vast majority of unitholders. These funds are listed below:
- RBC Canadian Money Market Fund;
- RBC O’Shaughnessy U.S. Value Fund;
- RBC Bond Fund ;
- RBC O’Shaughnessy International Equity Fund;
- RBC Advisor Canadian Bond Fund;
- RBC Global Titans Fund;
- RBC Global High Yield Fund;
- RBC Global Precious Metals Fund;
- RBC Enhanced Cash Flow Portfolio;
- RBC O’Shaughnessy Global Equity Fund;
- RBC Balanced Fund;
- RBC DS North American Focus Fund;
- RBC Tax Managed Return Fund;
- RBC DS Canadian Focus Fund;
- RBC Canadian Dividend Fund;
- RBC DS International Focus Fund;
- RBC Canadian Diversified Income Trust Fund;
- RBC DS Balanced Global Portfolio;
- RBC North American Dividend Fund;
- RBC DS Growth Global Portfolio;
- RBC DS All Equity Global Portfolio
In addition, effective July 1, RBC Asset Management is reducing the management fee for Series F units of the RBC Monthly Income Fund from 0.75% to 0.60%.