RBC Funds Offered in U.S. Dollars
At RBC Global Asset Management, we are committed to offering investors a full suite of investment solutions, including Canadian, U.S. and global funds. Through the U.S. dollar (US$) purchase option, Canadian investors are able to use their U.S. dollars to invest in a wide variety of RBC funds.
These funds may be suitable for investors who:
- want to hold assets in U.S. dollars;
- earn income U.S. dollars;
- travel to the U.S. frequently or stay for extended periods (e.g. snowbirds)
How do US$ funds work?
Funds with a US$ purchase option accept investments in U.S. dollars. And, when investors receive distributions or redeem units of the fund, they are paid in U.S. dollars. The illustration below shows how the fund unit price is calculated.
Why is the C$ unit price different from the US$ unit price?
The difference in unit prices reflects the fact that the US$ fund unit price = C$ unit price multiplied by the US$/C$ exchange rate.
Why do C$ funds and US$ funds have different returns?
If the US$/C$ exchange rate changes during the time period measured, then returns will differ.
|Type of fund||Exchange rate change||Effect on returns|
|US$||No change||Returns of C$ and US$ funds would be the same.|
|US$||C$ appreciates vs. US$||Return of US$ fund would be higher than C$ fund: investor receives more in US$ when they sell.|
|US$||C$ declines vs. US$||Return of US$ fund would be lower than C$ fund: investor receives less in US$ when they sell.|
If you have questions about funds with a U.S. dollar purchase option, please speak with your financial advisor.
Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, PH&N Funds and BlueBay Funds are offered by RBC Global Asset Management Inc. and distributed through authorized dealers.