RBC Indigo Asset Management confirms fund mergers approved by unitholders

On April 4, 2025, RBC Indigo Asset Management Inc. based in Canada announced a significant decision regarding its fund structure. Unitholders gathered at special meetings that day and approved the proposed merger of various RBC Indigo Terminating Funds into equivalent RBC GAM Continuing Funds. This was a major step for both institutions, as the mergers will enable a more streamlined portfolio management strategy moving forward. Unitholders of each terminating fund will receive units of the corresponding continuing fund according to the net asset value per unit, facilitating a smoother transition and investment continuity. RBC Indigo has detailed multiple terminating funds that will merge into corresponding continuing funds, including the RBC Indigo Canadian Bond Fund merging into the RBC Bond Fund and several others across different asset classes. The mergers are designed to enhance value for investors by consolidating resources and ensuring efficient management. The Independent Review Committee of the RBC Indigo Terminating Funds reviewed the proposals and provided positive recommendations, affirming that the mergers are fair and beneficial to stakeholders involved. Effective from the close of business on April 10, 2025, units from the RBC Indigo Terminating Funds will no longer be available for purchase, while unitholders can redeem their units until a specified end date. RBC Indigo will absorb all related costs and expenses associated with the merger process, which reflects the company's commitment to protecting investors' interests. Communication around these changes has been clear and extensive, with unitholders encouraged to consult their dealers for further information regarding the transition. As a wholly owned subsidiary of the Royal Bank of Canada, RBC Indigo is part of the larger RBC Global Asset Management group of companies. This group manages approximately $710 billion in assets globally, enhancing their capability to manage merging funds effectively and ensuring that investors have adequate support throughout the process. Such structural changes are part of a broader strategy to streamline operations and adapt to market conditions in the investment landscape, ultimately aiming to provide better outcomes for investors.