RBC re-invents investment solutions for Canadians by launching RBC ESG Market-Linked GIC and RBC North American MarketSmart GIC

• ESG-focused GIC linked to global index is purpose-built for Canadians who want their investments to help make a difference in the world
• North American GIC linked to a basket of 20 hand-picked stocks helps Canadians diversify their portfolios
• Both GICs guarantee principal is protected while providing potential to gain from market returns

TORONTO, July 27, 2021 /CNW/ - Canadians seeking the security of GICs but looking for opportunities to increase their returns now have the best of both worlds with two new GICs: the RBC ESG Market-Linked GIC and the RBC North American MarketSmart GIC. Both were developed through a partnership between RBC Capital Markets and the GIC business within the retail bank, leveraging their respective areas of market expertise and product knowledge.

RBC's first GIC based on ESG (Environmental, Social and Governance) factors, the RBC ESG Market-Linked GIC is purpose-built for investors who want to help make a difference in the world by including ESG considerations in their investment decisions. This ESG GIC is linked to a global index of environmentally and socially responsible organizations, all of which must first pass a set of rigorous ESG standards. To be included, each company must demonstrate positive ESG metrics, low carbon impact and strong financial health.

The RBC North American MarketSmart GIC is the first GIC of its kind at RBC to track the performance of a customized basket of stocks in 20 North American companies. This select basket brings investors the opportunity to invest in some of North America's largest and most recognized organizations – including companies such as Bell, Coca-Cola, Pfizer, Johnson & Johnson, Canada's Big Five banks and McDonald's.

"We know investors are looking for higher yields – particularly in a low interest rate environment – while minimizing risk. Both of these new GICs help make that possible," says Flora Do, Vice-President, Term Investments & Savings, RBC. "In recent years, we've also seen a growing focus on looking beyond a company's balance sheet when making investment decisions. ESG investing is a strategy for anyone who values the added layers of analysis when it comes to assessing a company's outlook and wants to take ESG factors into account when making their investment decisions."

As with traditional GICs, an investor's initial investment in these two new products is 100% guaranteed. Unlike traditional GICs, both are linked to market performance, offering investors potential gains from stock market returns. There are no minimum or maximum returns for those who invest in the RBC ESG Market-Linked GIC; there is a maximum cap, with a guaranteed minimum return, for those who invest in the RBC North American MarketSmart GIC.

"For those who want the opportunity to diversify by investing in a market that has historically outperformed other developed regions around the world, our North American basket provides just that," adds Do. "Both our new GICs are for investors who want the potential to earn higher returns than those offered by traditional GICs, with the security of having their principal completely protected."

For more information about GICs offered at RBC, please visit https://www.rbcroyalbank.com/investments/gics.html.

FAST FACTS

RBC ESG Market-Linked GIC

• Term length: Terms of 4 and 6 years (non-redeemable and non-transferable)
• Minimum deposit: $1,000
• Underlying investment: MSCI World ESG Quality Select Low Volatility Index
• Eligible plans/accounts: RRSPs, TFSAs, RESPs, RDSPs, non-registered Investment Accounts
• Returns: Variable; calculated using a pre-determined formula; paid at maturity. Investors can fully benefit from the index's growth, as there are no minimum or maximum rates of return.

RBC North American MarketSmart GIC

• Term length: Terms of 2, 3 and 5 years (non-redeemable and non-transferable)
• Minimum deposit: $1,000
• Underlying investment: Equally-weighted investment in 20 hand-picked North America stocks
• Eligible plans/accounts: RRSPs, TFSAs, RESPs, RDSPs, RRIFs, non-registered Investment Accounts
• Returns: Variable; adjusted to a guaranteed minimum or maximum return; paid at maturity. Similar to other RBC MarketSmart GICs, if the basket of stocks perform well, the potential returns for investors increases as well. If the basket of stocks underperforms, in addition to their initial investment remaining fully protected, investors receive the guaranteed minimum rate of return.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

SOURCE RBC Royal Bank