RBC plans to offer RBC Short Duration Fixed Income Fund

By Toni Weeks

San Luis Obispo, Calif., Oct. 16 - RBC Fixed Income Funds announced in an N-1A filing with the Securities and Exchange Commission that it is planning to offer a new investment-grade fund.

The RBC Short Duration Fixed Income Fund will seek a high level of current income consistent with preservation of capital. Under normal circumstances, it will invest at least 80% of its assets in fixed-income securities, including bonds, collateralized bond obligations, collateralized debt obligations, convertible securities, loan participations and assignments, money market securities, mortgage-related and asset-backed securities, municipal securities, notes, obligations of governments and their agencies, private placements and restricted securities. The fund may invest in securities with fixed-, floating- or variable-rate coupons. Up to 25% of the fund's net assets may be invested in high-yield securities.

The fund seeks to maintain a duration and average weighted dollar maturity of three years or less.

Brandon Swensen and Brian Svendahl will be the portfolio managers.

The fund will launch with class I shares. The ticker symbol is not yet available.

There will be no sales load. A 2% redemption fee will apply to shares redeemed or exchanged within 30 days of purchase. Management fees and total annual fund operating expenses were not disclosed in the filing.

RBC will also offer the RBC Ultra-Short Fixed Income Fund, which will have the same investment objective and strategy. The average weighted dollar maturity of the ultra-short fund will be six to 18 months.

Minneapolis-based RBC Global Asset Management (U.S.) Inc. will be the investment adviser.

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