RMBO is a rules-based, actively managed ETF that offers exposure to the performance of a diversified portfolio of Canadian investment grade corporate bonds, divided ("laddered") into five groupings with staggered maturities from six to ten years.
The portfolio is divided into five segments, one for each of the five maturity years. Corporate bond exposure is well diversified, with no more than 10% allocated to a single issuer. The overall weighted-average credit rating of the portfolio's corporate debt is 'A'.
RMBO is designed to maintain a laddered 6-10 year maturity profile. At the end of each year, the portfolio managers sell those bonds that mature within six years and replace them with new bonds that mature in 10 years.
RMBO pays out all its net income on a monthly basis. The amount of the payout depends on the underlying bonds, and may vary from month to month. Distributions are expected to be mostly interest income.
RBC Global Asset Management Inc. is Canada's largest fund company by assets under management (IFIC, as of August 31, 2017).
FTSE TMX Maturity Canada Corporate Bond Indices™ are trademarks of TSX Inc., a subsidiary of TMX Group Inc., and have been licensed for use for certain purposes to RBC Global Asset Management Inc. by FTSE TMX Global Debt Capital Markets Inc. The RBC ETFs are not sponsored, endorsed, sold or promoted by FTSE TMX Global Debt Capital Markets Inc., FTSE International Limited, TMX Group Inc. or their affiliates, or third party data suppliers and they make no representation, warranty or condition regarding the advisability of investing in the RBC ETFs.
