RBC Asset Management today launched RBC $U.S. Income Fund. The fund is designed to appeal to investors who want to maintain their assets in U.S. dollars, or who would benefit from regular U.S. income.

“Up until now, Canadian investors who want to maintain U.S. assets in U.S. dollars and benefit from regular U.S. dollar income have had limited options,” said Brenda Vince, president of RBC Asset Management Inc. “We’re pleased to now offer investors a balanced solution offering regular income combined with the potential for higher returns over traditional short-term U.S. dollar securities.”

The new fund invests in a diversified mix of approximately 70% U.S. fixed income securities and 30% U.S. high-quality equities, with an emphasis on companies offering an above-average dividend yield.

Managed by veteran RBC Asset Management fund managers, Frank Gambino, Ray Mawhinney, Doug Raymond and Stuart Kedwell, the monthly distribution for the fund is currently set at US2.25¢ U.S. per unit. RBC says the distribution may be adjusted as market conditions change.

Investors in the fund require a U.S. dollar bank account as all purchases, redemptions and distributions are paid in U.S. dollars.