Investigation Counsel P.C. and Paul Bates, Barrister have filed proposed class actions in the Supreme Court of British Columbia against RBC Global Asset Management Inc. (RBC GAM) and The Royal Trust Company regarding RBC Canadian Equity Fund (Fund Code: RBF269) (the RBC Fund) and against TD Asset Management Inc. (TDAM) regarding TD Canadian Equity Fund (Fund Code: TDB161) (the TD Fund).
The proposed RBC Fund class action was filed on behalf of all persons, wherever they reside or are domiciled, who have held directly, or indirectly in a RBC portfolio or fund of funds product, units of the RBC Fund at anytime from June 1, 2005 to present.
The proposed TD Fund class action was filed on behalf of all persons, wherever they reside or are domiciled, who have held directly, or indirectly in a TD portfolio or fund of funds product, units of the TD Fund at anytime from January 1, 2010 to present.
The plaintiffs allege that assets of the RBC Fund and the TD Fund, and the assets of mutual funds holding those funds, have been depleted by excessive fees paid to the fund managers, RBC GAM and TDAM, by the fund trustees.
The fund managers received fees for conducting an investment strategy based on active management when, it is alleged, the investment strategy actually being carried out was closet indexing, which was designed to closely track or replicate, not exceed, the Funds benchmark index, the S&P/TSX Composite Index. A closet indexing strategy will not outperform the benchmark index.
The proposed class actions allege that excessive fees paid to RBC GAM and TDAM over many years have significantly reduced the returns of investors.
“It appears investors might not have received adequate disclosure about the true investment objectives and strategies of these Canadian equity funds. Canadian mutual fund investors pay amongst the highest fees in the world and they deserve full disclosure about the managers investment strategies and the associated costs. We believe excessive management fees should be paid back to affected investors, said John Archibald of Investigation Counsel P.C. in Toronto.
Mutual fund trustees and managers are accountable for legal compliance with a set of serious obligations that protect investors from harmful conduct, including excessive fees that deplete fund assets and diminish investor returns said Paul Bates, co-counsel for the plaintiffs.
Class Member Contacts:
If you hold or previously held units of RBC Canadian Equity Fund, TD Canadian Equity Fund, or units of another RBC or TD mutual fund which held those Canadian equity funds, we encourage you to complete the information form on the website of Investigation Counsel at https://investigationcounsel.com/rbc-and-td-canadian-equity-fund-class-actions/
If you would like to contact Class Counsel, please direct your inquiries to Investigation Counsel at 1-800-316-8230 or [email protected]
About Class Counsel
Investigation Counsel P.C. (www.investigationcounsel.com) is a litigation boutique firm in Toronto specializing in fraud recovery and class actions on behalf of investors and consumers.
Paul Bates, Barrister (www.batesbarristers.com) is a leading Canadian litigator specializing in class actions, complex commercial litigation, public law, and appeals.