RBC Financial Group today announced two new principal protected notes, the RBC KBSH TOP 20 YIELD Deposit Notes Series 1 and 2.

The new notes offer retail investors exposure to income-producing equity and income trust securities while protecting their original investment.

Both series of notes are linked to a portfolio of KBSH’s top investment selections in the Canadian dividend equity and income trust markets. The current portfolio includes Royal Bank of Canada, Toronto Dominion Bank, CIBC, Sun Life Financial, Manulife Financial, Shoppers Drug Mart Corporation, Petro-Canada, TransCanada Corporation, Enbridge Inc., Rogers Communications Inc., Davis & Henderson Income Fund, Yellow Pages Income Fund, Livingston International Income Fund, Arc Energy Trust, Bonavista Energy Trust, Penn West Energy Trust, H&R Real Estate Investment Trust, Calloway Real Estate Investment Trust, Bell Nordiq Income Fund and UE Waterheater Income Fund.

The portfolio will be actively managed by KBSH, and allows up to 10 security substitutions per year. Both series of notes are principal protected, with the guarantee provided by Royal Bank of Canada.

Notes in Series 1 provide monthly coupons, while the Series 2 notes provide monthly partial principal repayments each based on the yield of the holdings in the portfolio.

As of February 28, the current yield of the portfolio stands at 4.8%. Notes in both series are RSP eligible and available to self- directed investors, as well as through investment advisors and financial planners, up until April 21, 2006.

The maturity date of both Notes is Oct. 28, 2013, resulting in a term of about seven and a half years. Advisors can purchase the Notes through FundSERV, as codes RBC821 (Series 1) and RBC822 (Series 2).