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Please read the following terms and conditions carefully. By accessing and any pages thereof (the "site"), you agree to be bound by these terms and conditions as well as any future revisions RBC Global Asset Management Inc. ("RBC GAM Inc.") may make in its discretion. If you do not agree to the terms and conditions below, do not access this website, or any pages thereof. Phillips, Hager & North Investment Management is a division of RBC GAM Inc. PH&N Institutional is the institutional business division of RBC GAM Inc.

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The material on this site has been provided by RBC GAM Inc. for information purposes only and may not be reproduced, distributed or published without the written consent of RBC GAM Inc. It is for general information only and is not, nor does it purport to be, a complete description of the investment solutions and strategies offered by RBC GAM Inc., including RBC Funds, RBC Private Pools, PH&N Funds, RBC Corporate Class Funds and RBC ETFs (the "Funds"). If there is an inconsistency between this document and the respective offering documents, the provisions of the respective offering documents shall prevail.

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About Our Funds

The Funds are offered by RBC GAM Inc. and distributed through authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with the Funds. Please read the offering materials for a particular fund before investing. The performance data provided are historical returns, they are not intended to reflect future values of any of the funds or returns on investment in these funds. Further, the performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. The unit values of non-money market funds change frequently. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund securities are not guaranteed by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns.

About RBC Global Asset Management

RBC Global Asset Management is the asset management division of Royal Bank of Canada ("RBC") which includes the following affiliates around the world, all indirect subsidiaries of RBC: RBC GAM Inc. (including Phillips, Hager & North Investment Management and PH&N Institutional), RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited, RBC Global Asset Management (Asia) Limited, BlueBay Asset Management LLP, and BlueBay Asset Management USA LLC.

Forward-Looking Statements

This website may contain forward-looking statements about general economic factors which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement. All opinions in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

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The RBC North American High Yield Fixed Income strategy seeks to provide a high level of income and the opportunity for capital appreciation by investing primarily in a well-diversified portfolio of fixed income securities issued by Canadian and U.S. corporations. The strategy is centered on a strong quality bias with a focus on companies with stable to improving financial profiles. The strategy aims to achieve an average credit rating of BB while limiting exposure to the lower quality segment of the high yield market.  

Strategy Overview

  • A specialized, actively managed portfolio that aims to provide a high current income stream while attempting to limit downside risk.
  • Invests primarily in medium quality (CCC minimum) Canadian and U.S. corporate bonds, convertible bonds, and preferred shares and government securities, traded in primarily Canadian and U.S. dollars.
  • Average term to maturity of the strategy will range between 3 to 10 years. All foreign currency exposure will be hedged back to Canadian dollars, unless there is a compelling foreign-exchange return opportunity.
  • We incorporate the analysis of material environmental, social, and governance (ESG) factors into our investment process, for applicable types of investments1.

1Certain strategies do not integrate ESG factors, including but not limited to money market strategies, index strategies and certain third-party sub-advised strategies.

Our Approach

Investment Philosophy & Style

  • The strategy aims to provide a high level of income and opportunity for capital appreciation by investing in a well-diversified portfolio of high yield fixed income securities issued by Canadian and U.S. corporations.
  • Emphasis on strong quality bias with a focus on companies with stable to improving financial profiles.
  • The RBC Global Fixed Income and Currencies team’s fundamental credit and industry analysis process emphasizes higher quality securities, diversification, internal credit analysis, cash flows, and employing an active approach.

Investment Process

  • The RBC Global Fixed Income and Currencies team’s multi-stage investment process starts with a bottom-up approach to search for issuers with attractive valuation characteristics and strong fundamentals. This is followed by a top-down risk management measure to ensure the overall portfolio is reasonably balanced in terms of industry, cyclicality, ratings, and market capitalization. The portfolio is then fine-tuned to optimize yield characteristics and curve/duration preferences.

Portfolio Construction

  • Asset mix targets an allocation of 85% to 100% of the portfolio in fixed income securities and preferred shares and 0% to 15% in cash and short-term investments.

Additional information

October 2010
Primary benchmark
FTSE Canada Universe Bond Index
Canadian Investment Fund

Investment team

​RBC Global Fixed Income and Currencies team

A proven investment process, a robust risk-management culture

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