RBC Asset Management Inc. has introduced two funds of funds designed to provide investors with regular, tax-efficient cash flows from their non-registered investments.

The company says RBC Cash Flow Portfolio and RBC Enhanced Cash Flow Portfolio provide alternatives to fixed income investments and generate regular income for investors in a more tax effective way.

“Interest rates are still historically low and government bonds, money market funds or short-term GICs alone may not provide sufficient cash flow to meet some investors’ requirements,” said Brenda Vince, president, RBC Asset Management, in a release. “In a recent RBC/Ipsos Reid survey of Canadians, we found that 63% of retirees feel that managing their cash flow is a top priority.”

John Varao, vp Canadian equities of RBC Asset Management, is the portfolio manager of the RBC Cash Flow Portfolios. He has 13 years managing portfolio investments, including RBC Select Portfolios and the RBC Select Choices Portfolios. He is also the portfolio manager of the RBC Monthly Income Fund.

RBC Cash Flow Portfolio targets investors seeking a predictable but higher level of cash flow than money market or GICs provide. This fund will invest in RBC Funds including the RBC Canadian Short-Term Income Fund, RBC Monthly Income Fund, RBC Global Corporate Bond Fund, and RBC Tax Managed Return Fund.

RBC Enhanced Cash Flow Portfolio is aimed at investors looking for a higher cash flow than the RBC Cash Flow Portfolio provides. RBC Enhanced Cash Flow Portfolio fund invests in a somewhat more aggressive mix, including the RBC Canadian Short-Term Income Fund, RBC Global Corporate Bond Fund, RBC Tax Managed Return Fund, RBC Global High Yield Fund, and RBC Dividend Fund.

The holdings of both funds are constantly monitored and automatically rebalanced to ensure the investment strategy remains on track.