RBC GAM launches new low volatility equity funds

“These new funds use quantitative investing to offer investors the upside potential of equities with less risk and volatility than broad market indices,” says Bill Tilford, head of quantitative investments at RBC GAM.

The new funds are monitored daily and adjusted to deal with changes to their risk and return profiles. The new funds use a custom risk model that is designed to more accurately measure and forecast risk.

The funds are appropriate for investors who have a long-term investment horizon and who are able to tolerate a medium level of investment risk. The low-volatility strategies are suitable for investors who are seeking a defensive core equity investment with the potential to earn equity-like returns, but with less volatility than a traditional equity portfolio.

The two new funds are available to individual investors through four low-fee options: Series A; Advisor Series and Series F (available via financial advisors); and Series D (available via direct-to-client platforms, PH&N Investment Services and RBC Direct Investing).

The management fee for each fund series is outlined in the table below.

The funds are also available to institutional investors through Series O.

RBC GAM is the asset management division of Royal Bank of Canada (RBC), and includes institutional money managers BlueBay Asset Management, Phillips, Hager & North Investment Management and RBC Global Asset Management (U.S.).