RBC Asset Management Inc. today announced changes to certain funds within its RBC Funds family. The firm is amending the investment strategy of the RBC O’Shaughnessy Funds. As well, In conjunction with changes in the requirements of Canadian securities authorities relating to the investment by mutual funds in other mutual funds, the firm is making changes the RBC Select Portfolios and RBC Select Choices Portfolios.

The changes to the RBC O’Shaughnessy Funds will allow the portfolio of each of the funds to be managed in two segments. One segment will follow the existing approach selecting stocks based on the information available on or about December 31. The second segment will follow the same approach selecting stocks based on the information available on or about June 30. Each segment will be re-balanced on an annual basis based on the information available on or about its anniversary date.

The management of the funds in two segments will help facilitate the re-balancing process and improve liquidity and trade execution.

The affected funds are the RBC O’Shaughnessy Canadian Equity Fund, the RBC O’Shaughnessy U.S. Value Fund and RBC O’Shaughnessy U.S. Growth Fund. The changes are effective June 1.

Change to the RBC Select Portfolios and RBC Select Choices Portfolios

RBC Asset Management will be making changes to the RBC Select Conservative Portfolio, the RBC Select Balanced Portfolio, the RBC Select Growth Portfolio, (the RBC Select Portfolios); the RBC Select Choices Conservative Portfolio, the RBC Select Choices Balanced Portfolio, the RBC Select Choices Growth Portfolio and the RBC Select Choices Aggressive Growth Portfolio (the RBC Select Choices Portfolios) effective July 5.


For the RBC Select Portfolios:

  • The investment ranges of the different asset classes of the Select Portfolios will be adjusted from plus or minus 2.5% to plus or minus 10%.
  • The target asset mix remains unchanged for each Select Portfolio, meaning that even after these changes, the target asset mix will remain the same as it is today, though the specific fund weightings may change.
  • Four new funds will be added to the list of the underlying funds to enable the Select Portfolios to better meet their stated objectives.

For the RBC Select Choices Portfolios:

  • The target asset mix remains unchanged for each of the Select Choices Portfolios, but each underlying fund will no longer have a target weight. This change will enable the portfolio manager to manage the asset mix of the Portfolio at the asset class level rather than the underlying funds.
  • The investment ranges of the asset classes of the Select Choices Portfolios will provide the flexibility to move plus or minus 10%.
  • New funds will be added to the list of underlying funds to enable the Select Choices Portfolios to better meet their stated investment objectives.

The company says these changes will allow it to be more responsive to changes based on the portfolio manager’s assessment of the market outlook and the underlying fund’s ability to help a Portfolio meet its objectives.

“We have carefully examined our fund line-up and believe that these changes enhance our product solutions and better address the needs of our clients,” said Brenda Vince, president, RBC Asset Management, in a news release.