RBC announces launch of RBC BlueBay Absolute Return Fund

By Toni Weeks

San Diego, Dec. 4 - RBC Funds Trust has launched a new fund that will be an option for investors seeking diversification to a traditional long-only core fixed-income portfolio.

The RBC BlueBay Absolute Return Fund seeks to achieve a high level of total return consisting of income and capital appreciation by investing primarily in a portfolio of fixed-income securities and/or investments that provide exposure to fixed-income securities that are investment grade. The fund has an absolute return strategy, which means that it is not managed relative to an index.

According to a press release, the fund is unique in the U.S. market because it invests across global interest rates, sovereign and non-sovereign credit as well as currencies, utilizing cash and derivative securities.

The fund invests in foreign securities and sovereign debt securities of entities and governments, and securities will be denominated in both dollars and the currencies of other developed countries, including Canada, Great Britain, euro zone countries and Japan. It has a flexible duration and is designed to take advantage of rising or falling government yield and credit spread environments.

The portfolio managers are Mark Dowding, Raphael Robelin and Geraud Charpin.

Class I shares are available to individuals and institutions with a minimum $1 million initial investment. The fund is also expected to be available through various financial intermediates and as an institutional separate account with a minimum investment of $250 million.

The fund's investment adviser is Minneapolis-based RBC Global Asset Management (U.S.) Inc., which is a wholly owned subsidiary of RBC USA Holdco Corp.

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