New bond fund from RBC

Toronto-based RBC Global Asset Management Inc. (RBC GAM) has unveiled BlueBay Global Convertible Bond Fund, which invests primarily in global convertible bonds. The fund is appropriate for investors seeking a combination of current income and capital growth potential, and who want exposure to a portfolio of global convertible bonds to diversify the fixed-income portion of their overall portfolio, says RBC GAM. Investors should have a long-term investment horizon and be able to tolerate a medium level of investment risk. The fund will be subadvised by BlueBay Asset Management LLP, a specialist in managing fixed-income and alternative assets, and will be co-managed by Michael Reed, senior portfolio manager, and Alessandro Esposito, portfolio manager. Advisor commissions are 0%-5% for front-end sales, 5% for deferred sales charges (DSC) and 1% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule, or begin at 2% in Year 1 and end at zero after Year 2 for the low-load option. Trailing commission are up to 0.75% for front-end and low-load sales, and 0.25% for deferred sales. Management fees are 1.7% for A-class units and 0.95% for F-class units. Minimum investment is $500.

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