RBC Financial Group today issued RBC IA Leon Frazer Yield Deposit Notes Series 3 and 4 for those risk-averse retail investors seeking an alternative to GICs.

The principal protected notes are linked to a portfolio comprised of Canadian equities, Canadian income trusts, and potentially bonds, in which allocations will be based on a dynamic rebalancing strategy.

The equity and income trust sub portfolios are managed by Leon Frazer & Associates Inc. The equity portion will have similar investment objectives to the IA Canadian Conservative Equity Fund.

The Series 3 notes provide monthly coupons equivalent to 100% of the distributions received on the equity and income trust sub portfolios.

The Series 4 notes (Return of Capital Series) provide monthly partial principal repayments equivalent to 100% of the distributions received on the equity and income trust sub portfolios.

Notes in both series are 100% RSP eligible, and available through investment advisors and financial planners until February 24, 2005 with a maturity date of March 2, 2014.

The notes will be distributed by RBC Financial Group with sales and marketing support from Industrial Alliance Fund Management Inc., sponsor/manager of the IA Canadian Conservative Equity Fund, Clarington Funds Inc., and Gibraltar Consulting Group.