RBC Global AM launches trend fund

RBC Global Asset Management Inc. (RBC GAM) has a new mutual fund, RBC Trend Canadian Equity Fund. The fund uses a rules-based, trend-following approach that aims to deliver positive absolute returns with reduced downside risk.

The fund’s investment strategy is based on the thesis that recent trends in security prices tend to continue for a period. The fund also takes a tactical approach to asset allocation with the flexibility to hold cash and short-term bonds in down-trending markets, and applies screens to manage risk and reduce volatility.

Read: Alternatives to 60/40 portfolios

The fund is aimed at long-term investors looking to diversify their portfolios and who can tolerate medium investment risk.

The fund is available in three options, with management fees in brackets:

• Series A (1.6%)
• Series F (0.6%)
• Advisor Series (1.6%)

Read: TD AM lowering max annual fees of 45 mutual funds

Also read: Here’s what you pay: Explain services and fees to clients

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.