Toronto-based RBC Global Asset Management Inc. (RBC GAM) has announced that one of its target maturity exchange-traded funds (ETF) will no longer accept subscriptions for units of that product after the close of business day on Thursday.
This is in anticipation of RBC Target 2016 Corporate Bond Index ETF’s scheduled maturity, which is to occur at the close of business on Nov. 18. The ETF is anticipated to be delisted from the Toronto Stock Exchange (TSX) at the end of the business day on or about Nov. 15.
Redemption requests for RBC Target 2016 Corporate Bond Index ETF are expected to be accepted until the close of business on Nov. 10. All units still held by investors following the product’s delisting from the TSX will be subject to mandatory redemption on the maturity date of Nov. 18.
“Investors have the option to either invest the proceeds from [RBC Target 2016 Corporate Bond Index ETF] into a subsequent maturity of an RBC Target Maturity Corporate Bond ETF or to utilize the proceeds in a ladder strategy to help manage interest rate and reinvestment risk,” states the announcement released Thursday. “The RBC GAM family of Target Maturity Corporate Bond ETFs includes six ETFs with maturities ranging from 2016 to 2021.”