RBC Closet Indexing Class Action

Investigation Counsel P.C. and Paul Bates, Barrister (collectively, “Class Counsel”) have filed a class action in Vancouver, British Columbia against RBC Global Asset Management Inc. (“RBC GAM”) and The Royal Trust Company (“Royal Trust”) regarding RBC Canadian Equity Fund (Fund Code: RBF269) (the “Canadian Equity Fund”). 

This action was filed on behalf of all persons, wherever they reside or are domiciled, who hold or held directly, or indirectly (via RBC “portfolio” or “fund of funds” products”), units of the Canadian Equity Fund at any time from June 1, 2005 to present.

The plaintiffs allege that assets of the Canadian Equity Fund, and the assets of other mutual funds known as RBC Portfolio Funds holding the Canadian Equity Fund, have been depleted by excessive fees paid to the fund manager, RBC GAM, by the trustee of the Canadian Equity Fund and Portfolio Funds.

RBC GAM received fees for conducting an investment strategy based on active management when, it is alleged, the investment strategy used was “closet indexing”, which closely tracks or replicates the fund’s benchmark index, the S&P/TSX Composite Index.  The plaintiffs allege that the true investment objective and strategies of the Canadian Equity Fund were not adequately disclosed to investors. 

The class action alleges that the excessive fees paid to RBC GAM over many years have significantly reduced the returns of investors and that investors are entitled to damages including restitution of excessive management fees.

UPDATES:

The hearing for certification of the class action took place on August 17-20, 2020.  The Court’s decision on certification is currently under reserve.

Inquiries regarding these proposed class proceedings can be directed to Investigation Counsel at 1-800-887-5611 or rbcclosetindexing@investigationcounsel.com

In order for Investigation Counsel P.C. to notify you of important developments in this action when permitted or required to do so by the Court, please fill out the Contact Form below. 

* This Is Not A Claim Form You are not obligated to fill in this form and, if you choose to do so, you are not retaining Investigation Counsel P.C. to act on your behalf. Your personal information will not be disclosed to a third party without your consent or unless it is required by law.
  • *RBC portfolio funds that may currently contain, or might have contained RBC Canadian Equity Fund during the class period, include RBC Select Very Conservative Portfolio, RBC Select Conservative Portfolio, RBC Select Balanced Portfolio, RBC Select Growth Portfolio, RBC Select Aggressive Growth Portfolio, RBC Select Choices Conservative Portfolio, RBC Select Choices Balanced Portfolio, RBC Select Choices Growth Portfolio, RBC Select Choices Aggressive Growth Portfolio, RBC Managed Payout Solution, RBC Managed Payout Solution – Enhanced, RBC Managed Payout Solution – Enhanced Plus

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