Business as usual for RBC Money Market Funds
RBC Asset Management Inc. (RBC AM) is providing additional information regarding the holdings in RBC Money Market Funds of asset-backed commercial paper.
All asset-backed commercial paper owned by RBC Money Market Funds is through conduits sponsored by the other four major Canadian chartered banks. The underlying assets in these major bank conduits are virtually all Canadian with transparent valuations and high credit quality. These assets include mortgages, auto loans, personal lines of credit, and credit card receivables and there is no exposure to the U.S. sub-prime, collateralized debt obligation (CDO) and derivatives markets. RBC Money Market Funds do not have any exposure to the non-bank sponsored conduits that were covered by the agreement struck earlier today by a number of financial institutions to address liquidity issues in these products.
“RBC AM does not expect issues in valuing RBC Money Market Funds or changes to their net asset value, and will continue to sell and redeem funds as our clients deem appropriate,” said Brenda Vince, president of RBC Asset Management Inc.
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