RBC Proposes BlueBay Strategic Income Fund Conversion to ETF

RBC plans to convert the RBC BlueBay Strategic Income Fund into an ETF, subject to Board approval in December 2026, with completion proposed for the first quarter of 2027. The ETF would retain substantially the same active strategy, primarily investing in U.S. investment-grade bonds while allowing up to 30% of net assets in high yield. It can also invest in emerging-market debt, mortgage-related and asset-backed securities, and government obligations, without maturity restrictions. The process combines bottom-up credit research with top-down risk management, using derivatives for positioning and risk management and incorporating material ESG factors and exclusions. RBC expects lower costs for certain shareholder classes. No shareholder vote would be required, but investors would need brokerage accounts. The conversion is expected to qualify as a tax-free reorganization, except for cash received.