RBC Asset Management Inc. announced on Thursday plans to wind down the RBC Target 2010 Education Fund, and plans to make the asset mix of each Target Education Fund more conservative.

As of January 1, 2010, the fund will be fully invested in the RBC Canadian Money Market Fund. The fund is set to reach its target date on March 19, 2010, and at that point RBC Asset Management will terminate the fund.

All units of the RBC Target 2010 Education Fund outstanding on the termination date will be cancelled and unitholders will receive in exchange units of the RBC Canadian Money Market Fund.

“These funds are simple solutions that offer investors enhanced growth potential in the early years of saving for their children’s education while looking to protect that investment in later years,” said Doug Coulter, president of RBC Asset Management. “The RBC Target 2010 Education Fund has delivered positive returns in 2008 and 2009. That’s been a welcome result for investors with children about to enroll in post-secondary studies.”

As the asset mix of each RBC Target Education Fund becomes more conservative, the fixed MER for that fund will be reduced to reflect the more conservative asset mix. As of January 1, 2010, investors in the remaining RBC Target Education Funds will see a reduction in their fixed MERs:

– the MER on the RBC Target 2010 Education Fund will fall to 0.75% from 1%
– the MER on the RBC Target 2015 Education Fund will fall to 1.55% from 1.75%
– the MER on the RBC Target 2020 Education Fund will fall to 1.75% from 1.85%
– the MER on the RBC Target 2025 Education Fund will fall to 1.85% from 1.95%

In addition, effective January 1, 2010, the fixed MER for the RBC Target 2010 Education Fund will be reduced and replaced with a maximum MER of 0.75%.