As the RBC Target 2013 Corporate Bond Index ETF maturity date approaches this year, investors need to start thinking about what to do with their investment, says Toronto-based RBC Global Asset Management Inc. (RBC GAM).
The ETF, which will mature on November 22, is one of the first such RBC ETFs to reach its maturity date. As a result, RBC GAM is giving advanced notice of the maturity date to make sure investors take the time to consider their investment options.
“By providing the maturity date of the RBC Target 2013 Corporate Bond Index ETF well in advance, our goal is to help investors make informed decisions with respect to their bond portfolio,” said Mark Neill, head of RBC ETFs in a statement. “This includes deciding whether to move their holdings into a subsequent maturity of an RBC ETF or hold them through to maturity.”
A target ETF consists of securities that mature throughout its stated maturity year — in this case 2013 – making its duration profile similar to an individual bond in that it is sensitive to interest rate changes.
RBC GAM manages more than $280 billion in assets and provides individual, high-net worth and institutional investors with global investment management services and solutions.