RBC Global Asset Management Inc. announces updates to RBC Retirement (2020 to 2050) Portfolios and the launch of new RBC Reti...

TORONTO, June 23, 2020 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced details regarding the reduction of management fees and changes to the asset allocation strategy or "glidepath" for the existing RBC Retirement (2020 to 2050) Portfolios and the launch of new RBC Retirement (2055 and 2060) Portfolios.

Fee reductions for RBC Retirement (2020 to 2050) Portfolios
RBC GAM Inc. reviews management fees on an ongoing basis. These reductions are part of our commitment to remain a leader in delivering excellent value to our clients.

The management fees for the following funds and the applicable series will be reduced on or about July 1, 2020:

RBC Retirement 2020 Portfolio
Series	Management Fee
	Current	Effective on or about July 1, 2020
A	1.50%	1.45%
Advisor*	1.50%	1.45%
T5	1.50%	1.45%
F	0.75%	0.70%
FT5	0.75%	0.70%
RBC Retirement 2025 Portfolio
Series	Management Fee
	Current	Effective on or about July 1, 2020
A	1.50%	1.45%
Advisor*	1.50%	1.45%
F	0.75%	0.70%
RBC Retirement (2030 to 2050) Portfolios
Series	Management Fee
	Current	Effective on or about July 1, 2020
A	1.80%	1.70%
Advisor*	1.80%	1.70%
F	0.80%	0.70%

*Effective June 26, 2020, Advisor Series units will be capped. Effective July 31, 2020, initial sales charge and low-load sales charge options for Advisor series will be re-designated to Series A units. Advisor Series units with a deferred sales charge option will remain capped.

Five years prior to each target retirement year and on or about January 1 of the applicable year, the management fee will be further reduced to 1.45% on Series A units of the RBC Retirement (2030 to 2050) Portfolios.

Changes to the asset allocation strategy
RBC Retirement Portfolios ("the Portfolios") are designed primarily for investors who are saving money for the purpose of retirement. They use an asset allocation strategy or "glidepath" that adjusts the asset mix of the portfolio relative to a target retirement year. When the investment horizon is long, the Portfolios invest in equity funds with the aim of earning a higher return. When the investment horizon is short, capital preservation and/or asset protection takes precedence and the asset mix becomes more conservative. When the Portfolios were launched in 2016, a number of assumptions were used to design the glidepath. These assumptions are now being revised to the following:

Glidepath changes

	Previous	Revised
Initial age of the investor	30	25
Years of working	35	40

With these changes, the current asset mix for RBC Retirement 2050 Portfolio will have a modest decrease in allocation to fixed income funds, and a corresponding increase in allocation to equity funds.

Asset mix: RBC Retirement 2050 Portfolio

	Previous	Revised
Fixed income funds	38%	35%
Equity funds	62%	65%

There are no changes to the asset mix for the remaining RBC Retirement (2020 to 2045) Portfolios.

Launch of new RBC Retirement (2055 and 2060) Portfolios
RBC GAM Inc. will be launching the new RBC Retirement 2055 Portfolio and RBC Retirement 2060 Portfolio. These new funds are designed to meet the needs of investors who are saving towards their retirement, which they expect will commence around 2055 and 2060 respectively.

A preliminary prospectus relating to the RBC Retirement 2055 Portfolio and RBC Retirement 2060 Portfolio has been filed with certain Canadian securities commissions or similar authorities. You cannot buy units of these funds until the relevant securities commissions or similar authorities issue receipts for the prospectus of the funds.

Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc. and distributed through authorized dealers. RBC GAM Inc. is a member of the RBC GAM group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 84,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

About RBC Global Asset Management 
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers BlueBay Asset Management and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage approximately $480 billion in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.

SOURCE RBC Global Asset Management

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