(March 2 – 10:00 ET) – Royal Bank of Canada may sell its disgraced pension arm, RT Capital Management Inc.

Royal says it is “reviewing a number of strategic options” for RT Capital Management Inc., including the possible sale of the business. Putnam Lovell Securities Inc. has been retained to advise the bank on its options.

Royal says it is undertaking this review in response to the evolving need of its pension clients for high quality, U.S. and global investment products, and recent increases in foreign content limits for pension funds which demand better global coverage.

“We have a very strong business in RT Capital Management, but we want to anticipate how changes will impact the marketplace and how we can best serve our institutional pension clients in the future,” said Reay Mackay, vice-chairman, RBC Investments.”We will pursue whatever option best serves RT Capital Management’s clients, and the bank’s shareholders.”

Michael Wilson, appointed chairman and CEO of RT in the wake of this summer’s trading scandal at the firm, said, “Today’s announcement represents a logical step for RT Capital Management to build on its leading position in the rapidly changing Canadian institutional market. We are looking forward to enhancing our current product offerings with a range of top-quality foreign investment products for our clients.”

Wilson was brought in to clean up RT, but the stain of the scandal still dogs Royal Bank which saw several executives suspended and 13 traders disciplined by the TSE. RT was established in 1986 and provides investment management services mainly to institutional pension fund managers.
-IE Staff