Toronto-based RBC Global Asset Management Inc. (RBC GAM) is lowering the management fees by up to 15 basis points across the various series of 85 mutual funds and phasing out its “high net-worth” mutual fund series.
“By lowering fees to levels that compare to high net-worth programs in the marketplace, more money will stay in our clients’ pockets, from the very first dollar they invest,” says Doug Coulter, president of RBC GAM, in a statement. “For advisors, these changes will result in greater simplicity and our lowest fees for their clients.”
The reduction in fees is coupled with changes to RBC GAM’s high net-worth series of funds, which are currently classified as Series H and Series I. Those two series will either be redesignated into other series’ units or shares within those funds; capped and therefore no longer available for purchase by new investors; or closed. These changes will begin on or about June 30.
Certain funds in which Series H and Series I units or shares are being re-designated into other series will see their administration fees increase. However, the majority of affected funds will have management fees and administration fees equal to or lower than current fees for Series H and Series I units or shares once the aforementioned fee reductions are implemented, the firm’s announcement notes.
Unitholders or shareholders of Series H and Series I units or shares that are to be closed or redesignated will be sent a written notice explaining the changes 60 days prior to the effective date. Unitholders will have a right to redeem or reclassify their units up to the close of business on the business day immediately preceding the effective date of the closures or re-designations. Redesignations and reclassifications are not considered taxable.
A full list of funds that are affected and more details regarding the changes can be found in RBC GAM’s announcement.