RBC Asset Management Inc., a Toronto unit of Royal Bank of Canada, said Monday that it had introduced the RBC Canadian Diversified Income Trust Fund.
The portfolio expands the asset manager's lineup of income solutions for investors who want to maximize the cash flow they receive from their investments.
The Royal Bank unit manages $2 billion of income trust investments across its lineup of RBC Funds and RBC Private Pools.
The RBC Canadian Diversified Income Trust Fund is designed to provide a steady stream of tax-efficient monthly cash flow; the monthly cash distribution is currently set at 8 cents per unit. The fund's initial cash payout rate is 5.5% per year, based on the $17.50 per unit launching price. The fund is to invest primarily in a diversified portfolio of Canadian income trusts, including business trusts, royalty trusts, real estate trusts, and power and pipeline trusts.
RBC Asset Management had $66 billion of assets under management at July 31.
