RBC Global Asset Management has launched RBC Emerging Markets Bond Fund, the fund group said Monday. The new fund is the only pure emerging markets bond fund available to individual investors in Canada, RBC GAM says.

“This low-cost fund is the only one of its kind for individual Canadian investors and draws upon the time-tested expertise of Jane Lesslie and our emerging markets debt team,” says Doug Coulter, president of RBC Asset Management Inc.

The fund is a diversified portfolio of emerging market government and corporate bonds of countries such as Brazil, China, Colombia, Indonesia, Lebanon, Malaysia, Mexico, Panama, Peru, Philippines, Poland, Russia, South Africa, Turkey and Venezuela.

“Currently representing about 35% of global output, emerging markets have been the engine of growth, helping the world recover from the 2008 financial crisis,” says Jane Lesslie, senior portfolio manager, RBC Asset Management UK Limited. “Economic growth rates well above global averages, stable to falling debt loads and supportive demographics, including rapidly growing middle classes, continue to position many of these countries as great investments going forward.”

RBC GAM says the fund is appropriate for investors seeking a combination of income and capital growth potential while looking to diversify the fixed-income portions of their portfolios through exposure to emerging market debt securities. Investors should have a long-term investment horizon and should be able to tolerate fluctuations in the value of their investments.

The fund is available to individual investors through four low-cost fee options: Series D (for clients who invest directly through PH&N Investment Services and RBC Direct Investing) and Series A, Advisor Series and Series F (available through financial advisors). The fund is also available to institutional investors through Series O.

The management fee for the four series is outlined below:
– Series A, 1.50%
– Advisor Series, 1.50%
– Series F, 0.75%
– Series D, 0.90%

IE