RBC Asset Management Inc. has introduced RBC U.S. Equity Currency Neutral Fund and RBC U.S. Mid-Cap Equity Currency Neutral Fund, both intended for investors who want exposure to the U.S. markets while minimizing the risk of currency fluctuation. The funds will invest in a wide range of sectors in an effort to resemble RBC’s existing U.S. equity funds. The funds use passive currency overlay to offset currency risk, says Paul Butler, vice president of product support at RBC Asset Management. “That means the fund buys forwards to minimize the currency position in the fund so the client only gets exposure to the market,” he says. The no-load funds have a 1.15% trailing commission. Management fees are 1.75%, or 0.75% for F-class shares. Minimum investment is $500 for registered plans and $1,000 for non-registered plans. RBC also has cut the management fee of U.S. Mid-Cap Equity Fund to 1.75% from 2%. “It’s part of our ongoing review to bring fees in line with our U.S. equity lineup,” Butler says.
Compiled by Lara Hertel (lhertel@investmentexecutive.com).