Published on 4/17/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.05 million best profile notes linked to best-performing ETF basket
By Angela McDaniels
Tacoma, Wash., April 17 – Royal Bank of Canada priced $1.05 million of 0% best profile notes due Oct. 18, 2022 linked to the best-performing basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
Basket A consists of the SPDR S&P 500 ETF trust with a 30% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight, the SPDR Gold trust with a 20% weight, the iShares iBoxx $ High Yield Corporate Bond ETF with a 10% weight and the iShares iBoxx $ Investment Grade Corporate Bond ETF with a 10% weight.
Basket B consists of the gold trust with a 25% weight; the S&P 500 trust, the iShares MSCI EAFE ETF and the high-yield bond ETF with a 20% weight each and the investment-grade bond ETF with a 15% weight.
The payout at maturity will be par plus the return of the best-performing basket. The notes are not principal protected, so if the best-performing basket has a negative return, the payout will be less than par.
RBC Capital Markets LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Best profile notes
|
| Underlying ETFs: SPDR S&P 500 ETF trust, iShares MSCI EAFE ETF, SPDR Gold trust, iShares iBoxx $ High Yield Corporate Bond ETF and iShares iBoxx $ Investment Grade Corporate Bond ETF
|
| Basket A: | S&P 500 trust with 30% weight, EAFE ETF with 30% weight, gold trust with 20% weight, high-yield bond ETF with 10% weight and investment-grade bond ETF with 10% weight
|
| Basket B: | Gold trust with 25% weight, S&P 500 trust with 20% weight, EAFE ETF with 20% weight, high-yield bond ETF with 20% weight and investment-grade bond ETF with 15% weight
|
| Amount: | $1.05 million
|
| Maturity: | Oct. 18, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus return of best-performing basket; if that return is negative, payout will be less than par
|
| Initial share prices: | $232.51 for SPDR S&P 500, $61.59 for iShares MSCI EAFE, $122.60 for gold trust, $87.22 for high-yield bond ETF and $119.14 for investment-grade bond ETF
|
| Pricing date: | April 13
|
| Settlement date: | April 19
|
| Underwriter: | RBC Capital Markets LLC
|
| Fees: | 3.25%
|
| Cusip: | 78012KH26
|
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