Equities drive Q1 gains for Canadian DB pensions: Northern Trust

Toronto-based RBC Global Asset Management Inc. (RBCGAM) has added a new mutual fund to its lineup on Monday that seeks to deliver attractive absolute returns while managing risk and reducing volatility.

RBC Trend Canadian Equity Fund uses a rules-based, trend-following investment strategy based on the investment thesis that recent trends in securities prices tend to continue for a period of time, according to RBCGAM’s announcement.

“There’s a rich body of academic research that supports the effectiveness of a trend-following approach,” says Doug Coulter, president of RBCGAM, in a statement. “With the launch of the RBC Trend Canadian Equity Fund, we’re excited to leverage our expertise and proprietary research to offer an alternative solution that complements a traditional equities portfolio.”

The fund has the flexibility to hold cash and short-term bonds in markets that are trending downward, the announcement notes.

RBC Trend Canadian Equity Fund is appropriate for long-term investors looking to diversify their portfolio and who can tolerate medium investment risk. The fund is available in three series: Series A and Advisor Series come with an annual management fee of 1.6% while Series F has an annual management fee of 0.6%.

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