RBC Global Asset Management Inc. announces final details on maturity of RBC Target 2017 Corporate Bond Index ETF

TORONTO, Sept. 15, 2017

As announced earlier this year, RBC Target 2017 Corporate Bond Index ETF will mature effective at the close of business on Friday, November 17, 2017. In anticipation of its maturity, subscriptions for units of RQE will no longer be accepted after the close of business today, Friday, September 15, 2017.

Redemption requests for RBC Target 2017 Corporate Bond Index ETF will be accepted until the close of business on Friday, November 10, 2017. RQE is anticipated to be voluntarily delisted from the TSX, at the request of RBC GAM Inc., following the close of business on or about Tuesday, November 14, 2017. All units still held by investors following the delisting will be subject to mandatory redemption on the maturity date of Friday, November 17, 2017.

Investors have the option to either invest the proceeds from RQE into a subsequent maturity of an RBC Target Maturity Corporate Bond ETF or to utilize the proceeds in a ladder strategy to help manage interest rate and reinvestment risk.

The RBC GAM Inc. family of Target Maturity Corporate Bond ETFs includes six ETFs with maturities ranging from 2018 to 2023.

Unlike traditional ETFs, which have a perpetual life, target maturity ETFs have a specified maturity date established when the ETF is launched. When the ETF reaches the maturity date, the ETF's final net asset value (NAV) is returned to the current unitholders.

A target maturity ETF's portfolio contains fixed income securities that mature throughout its stated maturity year. This structure results in a duration profile similar to that of an individual bond, where the ETF's duration should decline as it approaches maturity, reducing sensitivity to interest rate changes.