RBC Guaranteed Investment Funds...Series 1 0.04 0.02 For the year ended December 31, 2017 2016 As at...

Audited Financial Statements

December 31, 2017

RBC Guaranteed Investment Funds

RBC GUARANTEED INVESTMENT FUNDS Table of Contents December 31, 2017

Page

Financial Statements and Supplementary Information

Independent Auditor’s Report 1 – 2

Individual Funds and Portfolios 3 – 64

Notes to the Financial Statements 65 – 73

RBC GUARANTEED INVESTMENT FUNDS Page 3 of 73

As at Dec 31, 2017 Dec 31, 2016 For the year ended December 31, 2017 2016Assets Operating activities

Cash 154,341$ -$ Net income attributable to contractholders 87,637$ 44,202$ Investments in underlying fund at fa i r va lue 24,543,599 24,900,024 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net ga ins on investments - - Accounts receivable - contractholders - - Change in other assets (62) 1,090 Accounts receivable - sa le of investments - - Change in other l i abi l i ties 7,294 (481) Due from RBC Li fe Insurance Company 6,650 6,512 Purchases of investments (32,413,604) (31,728,566) Other 496 572 Proceeds from sa les of investments 32,770,029 26,856,663

24,705,086 24,907,108 Cash provided by (used in) oeprating activi ties 451,294 (4,827,092) Liabilities Financing activities

Bank indebtedness - 153,533 Di s tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 41,643,926 40,825,870

Accrued expenses 32,629 25,335 Redemption of units (41,787,346) (36,151,657) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties (143,420) 4,674,213 Accounts payable - purchase of investments - - Increase (decrease) in cash 307,874 (152,879) Other - - Bank indebtedness a t beginning of period (153,533) (654)

32,629 178,868 Cash (Bank indebtedness) at end of period 154,341$ (153,533)$ Net assets attributable to contractholders 24,672,457$ 24,728,240$

Net assets attributable to unitholders per uni t For the year ended December 31, 2017 2016Invest Series 10.09$ 10.06$ ExpensesSeries 1 11.22 11.18 Annual Management fee and Other adminis tration expenses

Invest Series 0.53% 0.53%Series 1 1.00% 1.00%

Annual Insurance Fee (Limit)Invest Series 0.10 (0.60) % 0.10 (0.60) %

For the year ended December 31, 2017 2016 Series 1 0.10 (0.60) % 0.10 (0.60) %Income

Distribution from underlying fund 261,908$ 199,539$ Real ized ga in on sa le of investments - - Change in unreal ized ga in/loss of investments - - Sales and redemption of units

261,908 199,539 Invest SeriesExpenses Opening ba lance as at January 1st 503,825 342,017

Management fees 99,567 89,821 Purchases during the period 678,280 662,788 Insurance fees 26,998 24,061 Redemptions during the period (822,101) (500,980) Other administrative expenses 136,725 111,875 Clos ing balance as at December 31st 360,004 503,825

263,290 225,757 Series 1Less: Expenses waived 89,019 70,420 Opening ba lance as at January 1st 1,758,427 1,485,538 Expenses after waiver 174,271 155,337 Purchases during the period 3,108,641 3,058,691

Net income attributable to contractholders 87,637$ 44,202$ Redemptions during the period (2,992,130) (2,785,802) Net income attributable to contractholders per uni t Clos ing balance as at December 31st 1,874,938 1,758,427

Invest Series 0.04$ 0.02$ Series 1 0.04 0.02

For the year ended December 31, 2017 2016 As at Dec 31, 2017 Dec 31, 2016Net assets , beginning of the period 24,728,240$ 20,009,825$ Investment in underlying fund at fair value

Premium depos i ts 41,643,926 40,825,870 Level 1 24,543,599$ 24,900,024$ Net income attributable to contractholders 87,637 44,202

66,459,803 60,879,897 Schedule of investment in underlying fundWithdrawals 41,787,346 36,151,657 RBC Canadian Money Market Fund, Series O

Net assets, end of the period 24,672,457$ 24,728,240$ Number of units 2,454,360 2,490,002 Number of units outs tanding Cost 24,543,599$ 24,900,024$

Invest Series 360,004 503,825 Percentage held in underlying fund 1.5614% 1.5715%Series 1 1,874,938 1,758,427 Fa i r va lue 24,543,599$ 24,900,024$

The accompanying notes are an integral part of these financial statements.

Statement of Financial Position Statement of Cash Flow

Statement of Comprehensive Income

Statement of Changes in Net Assets Attributable to Contractholders

RBC Canadian Money Market GIF


Zeus Receivables Trust - Senior Notes 1.401% Jan 17 2018 2.3% Bay Street Funding Trust - Class A 1.401% Feb 1 2018 1.6%Toronto-Dominion Bank 1.253% Jan 2 2018 2.3% Canadian Imperia l Bank of Commerce 1.550% Jun 8 2018 1.6%Province of New Brunswick 1.058% Feb 1 2018 2.1% Fus ion Trust 1.399% Jan 29 2018 1.5%HSBC Bank Canada 1.332% Feb 26 2018 2.0% King Street Funding Trust 1.451% Feb 15 2018 1.4%Prime Trust - Senior Notes 1.297% Jan 19 2018 1.9% Toronto-Dominion Bank 1.100% Mar 5 2018 1.4%Bank of Nova Scotia 1.040% Jan 29 2018 1.9% Fus ion Trust 1.401% Feb 5 2018 1.4%Canadian Imperia l Bank of Commerce 0.995% Feb 9 2018 1.9% SAFE Trust - Series 1996-1 1.401% Jan 10 2018 1.4%Clari ty Trust 1.311% Jan 26 2018 1.9% SAFE Trust - Series 1996-1 1.409% Mar 9 2018 1.3%Bank of Nova Scotia 1.121% Mar 22 2018 1.8% Province of Manitoba 1.044% Jan 2 2018 1.3%Banner Trust 1.619% Apr 26 2018 1.8% HSBC Bank Canada 1.580% Apr 3 2018 1.3%Nationa l Bank of Canada 1.308% Jan 22 2018 1.8% Canadian Master Trust - Series A 1.286% Mar 7 2018 1.3%Toronto-Dominion Bank 1.100% Apr 25 2018 1.6% King Street Funding Trust 1.392% Jan 25 2018 1.3%BNP Paribas Capi ta l Trust 1.339% Jan 24 2018 1.6% 41.7%

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past 5 years.

For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 10.09$ 10.06$ 10.04$ 10.01$ 11.22$ 11.18$ 11.16$ 11.13$ 11.07$ Net assets attributable to contractholders ($ '000) 3,634$ 5,067$ 3,433$ 89$ 21,038$ 19,661$ 16,577$ 13,809$ 7,598$ Net Income ($ '000) 14$ 8$ 2$ -$ 74$ 36$ 33$ 48$ 70$ Premium depos i ts ($ '000) 6,834$ 6,660$ 4,245$ 89$ 34,810$ 34,166$ 24,046$ 17,801$ 11,363$ Withdrawals ($ '000) 8,281$ 5,034$ 903$ -$ 33,507$ 31,118$ 21,312$ 11,639$ 11,599$ Number of units outs tanding 360,004 503,825 342,017 8,880 1,874,938 1,758,427 1,485,538 1,240,658 686,254

Management expense ratio 1 4 0.70% 0.69% 0.69% 0.70% 0.71% 0.70% 0.70% 0.71% 0.43%Management expense before waiver 1.27% 1.21% 1.32% 0.71% 1.03% 0.97% 1.14% 1.31% 1.15%

Portfol io turnover rate of the underlying fund 2 - - - - - - - - -

3 Invest series commenced operations on November 7, 2014.4 RBC Li fe Insurance Company may waive a portion of the fees for the Canadian Money Market GIF, which waiver may end at any time without notice.

RBC Canadian Money Market GIF (continued)

Series 1Invest Series 3

2 The underlying fund's portfolio turnover rate indicates how actively the fund's portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the fund buying and selling all of the securities in its portfolio of the year. The higher a fund's portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund.

Top 25 holdings of the underlying fund (unaudited)

Financial Highlights (unaudited)

The comparative data for the

year 2013 not

ava i lable as Invest

Series was introduced

in 2014.

1 The management expense ratio ("MER") is based on total expenses, including pro-rata share of operating expenses of the underlying fund, for the stated period and is expressed as an annualized percentage of daily average net assets during the period.



Cas h 163,053$ 1,135$ Net los s attributable to contractholders (79,058)$ (48,432)$ Investments in underlying fund at fa i r va lue 6,898,357 6,928,506 Add (deduct) to convert net income toOther ass ets a cas h bas is

Accrued income dis tribution from underlying funds - - Net los ses on investments 95,472 90,419 Accounts receivable - contractholders - 11,000 Change in other as sets (1,118) 2,485 Accounts receivable - s a le of investments - - Change in other l iabi l i ties 4,670 (3,192) Due from RBC Li fe Insurance Company 3,753 2,582 Purchases of investments (4,707,211) (2,655,330) Other 693 746 Proceeds from s a les of inves tments 4,641,888 3,981,758

7,065,856 6,943,969 Cas h provided by (used in) oeprating activi ties (45,357) 1,367,708 Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l i abi l i ties Proceeds from i ssue of units 5,439,636 2,736,875

Accrued expenses 29,165 24,495 Redemption of uni ts (5,232,361) (4,103,674) Accounts payable - contractholders - - Cas h provided by (used in) financing activi ties 207,275 (1,366,799) Accounts payable - purchase of investments - - Increase in cas h 161,918 909 Other - - Cas h at beginning of period 1,135 226

29,165 24,495 Cash at end of period 163,053$ 1,135$ Net assets attributable to contractholders 7,036,691$ 6,919,474$

Net ass ets attributable to contractholders per unit For the year ended December 31, 2017 2016Invest Series 9.92$ 10.06$ ExpensesSeries 1 11.66 11.85 Annual Management fee and Other adminis tration expens esSeries 2 9.81 9.98 Invest Series 1.35% 1.35%

Series 1 1.60% 1.60%Series 2 1.41% 1.41%

Annual Insurance Fee (Limi t)For the year ended December 31, 2017 2016 Invest Series 0.25 (0.75) % 0.25 (0.75) %Income Series 1 0.35 (0.65) % 0.35 (0.65) %

Dis tribution from underlying fund 132,447$ 192,422$ Series 2 0.55 (1.05) % 0.55 (1.05) %Real i zed loss on sa le of investments (69,085) (36,486) Change in unrea l i zed ga in/loss of inves tments (26,387) (53,933) Sales and redemption of units


Management fees 54,760 68,067 Purchases during the period 24,757 35,827 Insurance fees 24,919 31,062 Redemptions during the period (20,341) (57,696) Other adminis trative expenses 82,865 82,173 Clos ing ba lance as at December 31s t 38,256 33,840

162,544 181,302 Series 1Less : Expenses waived 46,511 30,867 Opening ba lance as at January 1st 445,905 502,869 Expenses after waiver 116,033 150,435 Purchases during the period 16,957 65,170

Net loss attributable to contractholders (79,058)$ (48,432)$ Redemptions during the period (224,911) (122,134) Net los s attributable to contractholders per unit Clos ing ba lance as at December 31s t 237,951 445,905

Invest Series (0.16)$ (0.01)$ Series 2Series 1 (0.13) (0.08) Opening ba lance as at January 1st 129,822 175,468 Series 2 (0.19) (0.08) Purchases during the period 504,479 159,936

Redemptions during the period (238,353) (205,582) Clos ing ba lance as at December 31s t 395,948 129,822


Premium depos i ts 5,428,636 2,747,875 Level 1 6,898,357$ 6,928,506$ Net loss attributable to contractholders (79,058) (48,432)

12,269,052 11,023,148 Schedule of investment in underlying fundWithdrawals 5,232,361 4,103,674 RBC Canadian Short-Term Income Fund, Series O

Net assets, end of the period 7,036,691$ 6,919,474$ Number of units 654,338 644,698 Number of units outstanding Cos t 7,036,408$ 7,040,170$

Invest Series 38,256 33,840 Percentage held in underlying fund 0.1258% 0.1347%Series 1 237,951 445,905 Fa i r va lue 6,898,357$ 6,928,506$ Series 2 395,948 129,822





RBC Canadian Short-Term Income GIF


Government of Canada 0.500% Mar 1 2022 3.3% Canada Hous ing Trust No. 1 2.650% Mar 15 2022 1.6%Government of Canada 0.500% Nov 1 2018 3.2% Province of New Brunswick 4.500% Jun 2 2020 1.6%Province of Ontario 2.100% Sep 8 2018 3.0% Province of Manitoba 1.550% Sep 5 2021 1.5%Canada Hous ing Trust No. 1 3.350% Dec 15 2020 3.0% Province of Quebec 4.500% Dec 1 2020 1.4%Province of Ontario 2.100% Sep 8 2019 2.9% HSBC Bank Canada 2.491% May 13 2019 1.3%Province of Ontario 4.000% Jun 2 2021 2.8% Province of Quebec 4.500% Dec 1 2019 1.2%Government of Canada 1.500% Jun 1 2023 2.7% Province of Alberta 1.350% Sep 1 2021 1.2%Province of Ontario 2.850% Jun 2 2023 2.6% Province of Ontario 4.400% Jun 2 2019 1.2%Province of Quebec 3.500% Dec 1 2022 2.4% Government of Canada 0.750% Mar 1 2021 1.1%Canada Hous ing Trust No. 1 1.250% Jun 15 2021 2.1% Province of Alberta 1.600% Jun 15 2018 1.1%Cash & Cash Equiva lents 2.0% Canadian Imperia l Bank of Commerce 1.850% Jul 14 2020 1.1%Government of Canada 0.750% Sep 1 2020 2.0% Bank of Montrea l 2.270% Jul 11 2022 1.0%Province of Ontario 1.350% Mar 8 2022 1.7% 49.0%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 9.92$ 10.06$ 10.10$ 10.03$ 11.66$ 11.85$ 11.93$ 11.87$ 11.71$ Net assets attributable to contractholders ($ '000) 379$ 340$ 563$ 5$ 2,775$ 5,284$ 5,997$ 6,240$ 6,749$ Net Income (loss ) ($ '000) (6)$ (1)$ (12)$ -$ (41)$ (35)$ 32$ 89$ 16$ Premium depos i ts ($ '000) 249$ 363$ 1,966$ 5$ 200$ 777$ 1,969$ 2,750$ 2,349$ Withdrawals ($ '000) 203$ 585$ 1,396$ -$ 2,668$ 1,454$ 2,243$ 3,349$ 3,028$ Number of units outs tanding 38,256 33,840 55,709 500 237,951 445,905 502,869 525,513 576,445

Management expense ratio 1 1.79% 1.73% 1.82% 1.81% 2.02% 2.03% 2.04% 1.82% 1.82%Management expense before waiver 2.94% 2.45% 2.36% 1.81% 2.62% 2.29% 2.24% 2.14% 1.95%

Portfol io turnover rate of the underlying fund 2 28.17% 30.90% 30.67% 36.84% 28.17% 30.90% 30.67% 36.84% 45.34%

Net Asset Va lue attributable to contractholders 9.81$ 9.98$ 10.06$ 10.03$ Net assets attributable to contractholders ($ '000) 3,883$ 1,295$ 1,764$ 5$ Net Income (loss ) ($ '000) (32)$ (12)$ (6)$ -$ Premium depos i ts ($ '000) 4,980$ 1,608$ 2,331$ 5$ Withdrawals ($ '000) 2,361$ 2,065$ 566$ -$ Number of units outs tanding 395,948 129,822 175,468 500

Management expense ratio 1 2.18% 2.16% 2.22% 2.22%Management expense before waiver 3.41% 3.06% 2.97% 2.22%

Portfol io turnover rate of the underlying fund 2 28.17% 30.90% 30.67% 36.84%

3 Invest series and Series 2 commenced operations on November 7, 2014.





year 2013 not



in 2014.

RBC Canadian Short-Term Income GIF (continued)


Series 2 3The

comparative data for the

year 2013 not



in 2014.




Cash -$ 349,400$ Net income attributable to contractholders 300,705$ 206,295$ Investments in underlying fund at fa i r va lue 21,423,890 24,646,703 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net (ga ins ) losses on investments (34,777) 79,775 Accounts receivable - contractholders - - Change in other assets 3,084 3,139 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 399 (5,005) Due from RBC Li fe Insurance Company 772 3,304 Purchases of investments (5,634,827) (8,134,689) Other 625 1,177 Proceeds from sa les of investments 8,892,417 6,792,985

21,425,287 25,000,584 Cash provided by (used in) oeprating activi ties 3,527,001 (1,057,500) Liabilities Financing activities

Bank indebtedness 364 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 6,000,866 8,944,297

Accrued expenses 44,314 43,915 Redemption of units (9,877,631) (7,537,047) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties (3,876,765) 1,407,250 Accounts payable - purchase of investments - - Increase (decrease) in cash (349,764) 349,750 Other - - Cash (Bank indebtedness) at beginning of period 349,400 (350)

44,678 43,915 Cash (Bank indebtedness) at end of period (364)$ 349,400$ Net assets attributable to contractholders 21,380,609$ 24,956,669$

Net assets a ttributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 10.74$ 10.57$ ExpensesSeries 1 14.52 14.33 Annual Management fee and Other adminis tration expensesSeries 2 10.59 10.47 Invest Series 1.34% 1.34%

Series 1 1.60% 1.60%Series 2 1.42% 1.42%

Annual Insurance Fee (Limit)For the year ended December 31, 2017 2016 Invest Series 0.25 (0.75) % 0.25 (0.75) %Income Series 1 0.35 (0.65) % 0.35 (0.65) %

Dis tribution from underlying fund 749,172$ 776,160$ Series 2 0.55 (1.05) % 0.55 (1.05) %Real i zed ga in (loss ) on sa le of investments (9,582) 380,471 Change in unreal ized ga in/loss of investments 44,359 (460,246) Sales and redemption of units


Management fees 282,723 304,105 Purchases during the period 168,250 174,846 Insurance fees 91,484 92,172 Redemptions during the period (162,836) (30,914) Other adminis trative expenses 142,636 131,397 Clos ing ba lance as at December 31st 232,682 227,268

516,843 527,674 Series 1Less : Expenses waived 33,599 37,584 Opening ba lance as at January 1st 1,491,121 1,514,186 Expenses after waiver 483,244 490,090 Purchases during the period 189,118 439,971

Net income attributable to contractholders 300,705$ 206,295$ Redemptions during the period (521,251) (463,036) Net income (loss ) attributable to contractholders per unit Clos ing ba lance as at December 31st 1,158,988 1,491,121

Invest Series 0.22$ (0.05)$ Series 2Series 1 0.17 0.14 Opening ba lance as at January 1st 113,908 102,713 Series 2 0.09 0.11 Purchases during the period 139,324 59,762

Redemptions during the period (59,078) (48,567) Clos ing ba lance as at December 31st 194,154 113,908



31,258,240 32,493,716 Schedule of investment in underlying fundWithdrawals 9,877,631 7,537,047 RBC Bond Fund, Series O

Net assets, end of the period 21,380,609$ 24,956,669$ Number of units 3,123,471 3,598,164 Number of uni ts outs tanding Cost 21,532,556$ 24,799,728$

Invest Series 232,682 227,268 Percentage held in underlying fund 0.1155% 0.1429%Series 1 1,158,988 1,491,121 Fa i r va lue 21,423,890$ 24,646,703$ Series 2 194,154 113,908





RBC Bond GIF


Province of Ontario 3.450% Jun 2 2045 3.1% Province of Ontario 2.400% Jun 2 2026 1.5%Province of Ontario 3.500% Jun 2 2043 2.4% Province of Ontario 3.500% Jun 2 2024 1.4%Province of Ontario 2.900% Dec 2 2046 2.3% Province of Quebec 3.000% Sep 1 2023 1.3%Province of Ontario 2.600% Jun 2 2025 2.1% BlueBay Emerging Markets Corporate Bond Fund 1.1%Government of Canada 1.000% Jun 1 2027 2.1% Government of Canada 2.000% Jun 1 2028 1.1%Province of Ontario 4.600% Jun 2 2039 2.0% Province of Quebec 3.750% Sep 1 2024 1.0%Government of Canada 1.500% Jun 1 2026 1.9% Province of Quebec 5.000% Dec 1 2041 1.0%Government of Canada 2.750% Dec 1 2048 1.9% Province of Quebec 4.500% Dec 1 2020 1.0%Province of Ontario 4.650% Jun 2 2041 1.8% Province of Quebec 2.750% Sep 1 2025 1.0%RBC Emerging Markets Foreign Exchange Fund 1.7% Province of Ontario 5.600% Jun 2 2035 0.9%Province of Ontario 4.000% Jun 2 2021 1.7% Cash & Cash Equivalents 0.9%Province of Ontario 2.850% Jun 2 2023 1.6% Province of Ontario 4.700% Jun 2 2037 0.9%Province of Ontario 2.600% Jun 2 2027 1.5% 39.2%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 10.74$ 10.57$ 10.41$ 10.17$ 14.52$ 14.33$ 14.14$ 13.89$ 12.97$ Net assets attributable to contractholders ($ '000) 2,500$ 2,403$ 867$ 68$ 16,824$ 21,362$ 21,415$ 19,225$ 16,636$ Net Income (loss ) ($ '000) 62$ (7)$ 7$ 1$ 223$ 201$ 323$ 1,200$ (524)$ Premium depos i ts ($ '000) 1,783$ 1,873$ 861$ 68$ 2,741$ 6,439$ 6,102$ 6,762$ 10,050$ Withdrawals ($ '000) 1,749$ 331$ 68$ -$ 7,501$ 6,693$ 4,236$ 5,373$ 12,577$ Number of uni ts outs tanding 232,682 227,268 83,336 6,719 1,158,988 1,491,121 1,514,186 1,384,064 1,282,719



Net Asset Value attributable to contractholders 10.59$ 10.47$ 10.34$ 10.17$ Net assets attributable to contractholders ($ '000) 2,057$ 1,192$ 1,062$ 8$ Net income (loss ) ($ '000) 16$ 12$ (8)$ 1$ Premium depos i ts ($ '000) 1,477$ 631$ 1,159$ 8$ Withdrawals ($ '000) 628$ 513$ 97$ -$ Number of uni ts outs tanding 194,154 113,908 102,713 768





year 2013 not

avai lable as Invest


in 2014.




RBC Bond GIF (continued)

Series 2 3

Invest Series 3 Series 1


year 2013 not

avai lable as Series 2 was introduced

in 2014.




Cash -$ -$ Net income attributable to contractholders 42,665$ 41,918$ Investments in underlying fund at fa i r va lue 7,057,572 10,236,835 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net losses on investments 22,044 67,017 Accounts receivable - contractholders - - Change in other assets 635 3,311 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 3,124 (570) Due from RBC Li fe Insurance Company 2,403 2,985 Purchases of investments (982,574) (3,263,843) Other 693 746 Proceeds from sa les of investments 4,139,793 1,855,444

7,060,668 10,240,566 Cash provided by (used in) oeprating activi ties 3,225,687 (1,296,723) Liabilities Financing activities

Bank indebtedness 26 65 Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 978,902 3,929,296

Accrued expenses 24,762 21,638 Redemption of uni ts (4,204,550) (2,598,024) Accounts payable - contractholders - 5,850 Cash provided by (used in) financing activi ties (3,225,648) 1,331,272 Accounts payable - purchase of investments - - Increase in cash 39 34,549 Other - - Bank indebtedness at beginning of period (65) (34,614)

24,788 27,553 Bank indebtedness at end of period (26)$ (65)$ Net assets attributable to contractholders 7,035,880$ 10,213,013$


Series 1 1.60% 1.60%Series 2 1.44% 1.44%


Dis tribution from underlying fund 225,963$ 302,659$ Series 2 0.55 (1.05) % 0.55 (1.05) %Real i zed ga in (loss ) on sa le of investments (89,171) 145,227 Change in unreal ized ga in/loss of investments 67,127 (212,244) Sales and redemption of units

203,919 235,642 Invest SeriesExpenses Opening balance as at January 1st 51,195 14,072

Management fees 72,044 99,663 Purchases during the period 18,643 54,391 Insurance fees 30,541 36,267 Redemptions during the period (36,936) (17,268) Other adminis trative expenses 94,305 89,085 Clos ing balance as at December 31st 32,902 51,195

196,890 225,015 Series 1Less : Expenses waived 35,636 31,291 Opening balance as at January 1st 760,710 726,436 Expenses after waiver 161,254 193,724 Purchases during the period 36,513 215,365

Net income attributable to contractholders 42,665$ 41,918$ Redemptions during the period (284,019) (181,091) Net income (loss ) attributable to contractholders per uni t Clos ing balance as at December 31st 513,204 760,710

Invest Series 0.06$ (0.41)$ Series 2Series 1 0.08 0.10 Opening balance as at January 1st 64,671 16,070 Series 2 (0.07) (0.57) Purchases during the period 32,632 70,941

Redemptions during the period (42,167) (22,340) Clos ing balance as at December 31st 55,136 64,671


Premium depos i ts 978,902 3,929,296 Level 1 7,057,572$ 10,236,835$ Net income attributable to contractholders 42,665 41,918

11,234,580 12,816,887 Schedule of investment in underlying fundWithdrawals 4,198,700 2,603,874 PH&N Total Return Bond Fund, Series O

Net assets, end of the period 7,035,880$ 10,213,013$ Number of uni ts 627,529 907,111 Number of uni ts outs tanding Cost 7,243,598$ 10,489,988$






RBC PH&N Total Return Bond GIF


Government of Canada 0.750% Sep 1 2020 5.1% Government of Canada 2.750% Dec 1 2048 1.7%Canada Hous ing Trust No. 1 1.750% Jun 15 2022 3.9% Government of Canada 1.500% Mar 1 2020 1.7%Canada Hous ing Trust No. 1 2.400% Dec 15 2022 3.8% Province of Quebec 8.500% Apr 1 2026 1.6%Province of Ontario 6.200% Jun 2 2031 2.7% Government of Canada 1.250% Feb 1 2020 1.6%Province of Ontario 3.500% Jun 2 2043 2.6% Province of Ontario 5.600% Jun 2 2035 1.6%Province of Ontario 3.500% Jun 2 2024 2.6% Government of Canada 3.500% Jun 1 2020 1.5%Cash & Cas h Equiva lents 2.4% Canada Hous ing Trust No. 1 2.350% Jun 15 2027 1.4%Government of Canada 1.750% Mar 1 2023 2.4% Province of Ontario 2.900% Dec 2 2046 1.2%Province of Ontario 4.600% Jun 2 2039 2.3% Province of Alberta 2.350% Jun 1 2025 1.1%Canada Hous ing Trust No. 1 1.250% Jun 15 2021 2.2% Government of Canada 1.500% Jun 1 2026 1.0%Government of Canada 3.250% Jun 1 2021 2.0% Canada Hous ing Trust No. 1 1.500% Dec 15 2021 1.0%Government of Canada 1.500% Jun 1 2023 1.8% Royal Bank of Canada 1.400% Apr 26 2019 1.0%Government of Canada 0.750% Mar 1 2021 1.7% 51.9%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net As set Va lue attributable to contractholders 10.58$ 10.48$ 10.37$ 10.18$ 11.91$ 11.84$ 11.75$ 11.56$ 10.78$ Net as sets attributable to contractholders ($ '000) 348$ 537$ 146$ 29$ 6,112$ 9,004$ 8,534$ 8,177$ 12,599$ Net Income (los s ) ($ '000) 2$ (9)$ (1)$ -$ 44$ 70$ 131$ 778$ (230)$ Premium depos its ($ '000) 198$ 582$ 146$ 29$ 433$ 2,590$ 1,560$ 1,493$ 6,060$ Withdrawals ($ '000) 389$ 182$ 28$ -$ 3,370$ 2,190$ 1,334$ 6,693$ 5,456$ Number of uni ts outstanding 32,902 51,195 14,072 2,828 513,204 760,710 726,436 707,470 1,169,067



Net As set Va lue attributable to contractholders 10.45$ 10.39$ 10.32 10.17$ Net as sets attributable to contractholders ($ '000) 576$ 672$ 166$ 5$ Net Income (los s ) ($ '000) (3)$ (19)$ -$ -$ Premium depos its ($ '000) 348$ 757$ 161$ 5$ Withdrawals ($ '000) 440$ 232$ -$ -$ Number of uni ts outstanding 55,136 64,671 16,070 500




RBC PH&N Total Return Bond GIF (continued)





year 2013 not



in 2014.


year 2013 not



in 2014.

Series 2 3





Cash -$ 39,126$ Net income attributable to contractholders 11,075$ 5,173$ Investments in underlying fund at fa i r va lue 3,053,474 3,646,484 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net ga ins on investments (25,794) (12,601) Accounts receivable - contractholders - 7,994 Change in other assets (137) 3,213 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 5,726 2,126 Due from RBC Li fe Insurance Company 4,198 4,008 Purchases of investments (1,010,758) (3,312,298) Other 693 746 Proceeds from sa les of investments 1,629,562 1,825,618

3,058,365 3,698,358 Cash provided by (used in) oeprating activi ties 609,674 (1,488,769) Liabilities Financing activities

Bank indebtedness 1 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 1,000,916 3,351,722

Accrued expenses 26,872 21,146 Redemption of uni ts (1,649,717) (1,824,355) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties (648,801) 1,527,367 Accounts payable - purchase of investments - - Increase (decrease) in cash (39,127) 38,598 Other - - Cash at beginning of period 39,126 528


Net assets attributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 10.60$ 10.52$ ExpensesSeries 1 13.48 13.42 Annua l Management fee and Other adminis tration expensesSeries 2 10.44 10.41 Invest Series 1.55% 1.55%

Series 1 1.80% 1.80%Series 2 1.62% 1.62%


Distribution from underlying fund 63,890$ 76,121$ Series 2 0.70 (1.20) % 0.70 (1.20) %Real i zed gain (loss ) on sa le of investments 36,542 148,822 Change in unrea l i zed gain/loss of investments (10,748) (136,221) Sales and redemption of units

89,684 88,722 Invest SeriesExpenses Opening balance as at January 1st 36,896 18,733



Net income attributable to contractholders 11,075$ 5,173$ Redemptions during the period (90,718) (93,609) Net income (loss ) attributable to contractholders per uni t Clos ing balance as at December 31st 139,936 195,894

Invest Series 0.06$ (0.02)$ Series 2Series 1 0.04 0.05 Opening balance as at January 1st 63,456 32,830 Series 2 0.03 (0.06) Purchases during the period 27,501 63,129

Redemptions during the period (22,269) (32,503) Clos ing balance as at December 31st 68,688 63,456


Premium depos i ts 992,922 3,359,716 Level 1 3,053,474$ 3,646,484$ Net income attributable to contractholders 11,075 5,173

4,681,209 5,501,567 Schedule of investment in underlying fundWithdrawals 1,649,717 1,824,355 RBC Global Bond Fund, Series O

Net assets, end of the period 3,031,492$ 3,677,212$ Number of uni ts 280,516 329,471 Number of uni ts outstanding Cost 3,182,253$ 3,764,515$






RBC Global Bond GIF


United States Treasury 1.500% Nov 30 2019 6.4% United Kingdom Gi l t GBP 3.250% Jan 22 2044 2.2%Cash & Cash Equiva lents 4.1% Japan Government Twenty Year JPY 0.200% Jun 20 2036 2.1%United States Treasury 2.375% May 15 2027 3.7% Government of Canada 1.500% Jun 1 2026 2.1%United States Treasury 1.500% Jan 31 2022 3.4% France O.A.T. EUR 0.500% May 25 2026 2.1%Spain Government EUR 2.750% Apr 30 2019 3.3% Japan Government Thi rty Year JPY 0.300% Jun 20 2046 1.9%Buoni Pol iennal i Del Tesoro EUR 1.600% Jun 1 2026 2.9% Belgium Government EUR 2.600% Jun 22 2024 1.9%Spain Government EUR 1.150% Jul 30 2020 2.8% Buoni Pol iennal i Del Tesoro EUR 1.500% Aug 1 2019 1.8%BlueBay Emerging Markets Corporate Bond Fund 2.7% United States Treasury 1.750% May 15 2023 1.7%United States 10-Year Note Future, March 2018 2.5% Japan Government Twenty Year JPY 0.500% Sep 20 2036 1.7%RBC Emerging Markets Foreign Exchange Fund 2.5% France O.A.T. EUR 1.250% May 25 2036 1.6%United Kingdom Gi l t GBP 1.250% Jul 22 2027 2.3% Japan Government Twenty Year JPY 0.600% Dec 20 2036 1.4%United States Treasury 2.500% Feb 15 2045 2.3% Buoni Pol iennal i Del Tesoro EUR 1.450% Sep 15 2022 1.4%Buoni Pol iennal i Del Tesoro EUR 0.650% Nov 1 2020 2.2% 63.0%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 10.60$ 10.52$ 10.22$ 10.16$ 13.48$ 13.42$ 13.09$ 13.03$ 12.19$ Net assets attributable to contractholders ($ '000) 428$ 388$ 191$ 5$ 1,886$ 2,629$ 1,612$ 1,094$ 642$ Net Income ($ '000) 2$ -$ 2$ -$ 7$ 8$ 8$ 54$ -$ Premium depos its ($ '000) 239$ 428$ 481$ 5$ 468$ 2,263$ 858$ 668$ 333$ Withdrawals ($ '000) 202$ 231$ 296$ -$ 1,216$ 1,254$ 349$ 269$ 465$ Number of uni ts outs tanding 40,367 36,896 18,733 500 139,936 195,894 123,131 83,937 52,619



Net Asset Va lue attributable to contractholders 10.44$ 10.41$ 10.17 10.15$ Net assets attributable to contractholders ($ '000) 717$ 660$ 334$ 5$ Net Income (loss) ($ '000) 2$ (3)$ (1)$ -$ Premium depos its ($ '000) 286$ 669$ 385$ 5$ Withdrawals ($ '000) 232$ 339$ 56$ -$ Number of uni ts outs tanding 68,688 63,456 32,830 500




RBC Global Bond GIF (continued)


year 2013 not

ava i lable as Series 2 was introduced

in 2014.





year 2013 not



in 2014.


Series 2 3




Cash 1,250$ 198$ Net income attributable to contractholders 73,458$ 159,005$ Investments in underlying fund at fa ir va lue 2,432,247 1,692,169 Add (deduct) to convert net income toOther assets a cas h bas i s

Accrued income dis tribution from underlying funds - - Net ga ins on inves tments (19,174) (117,346) Accounts receivable - contractholders - - Change in other as sets 607 1,575 Accounts receivable - s a le of inves tments - - Change in other l iabi l i ties 6,528 (1,040) Due from RBC Li fe Ins urance Company 3,940 4,515 Purchases of inves tments (1,235,806) (578,911) Other 505 537 Proceeds from sa les of inves tments 514,902 616,386

2,437,942 1,697,419 Cash provided by (used in) oeprating activi ties (659,485) 79,669 Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 1,204,284 578,005

Accrued expenses 20,259 13,731 Redemption of uni ts (543,747) (657,696) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 660,537 (79,691) Accounts payable - purchase of investments - - Increase (decrease) in cash 1,052 (22) Other - - Cash at beginning of period 198 220

20,259 13,731 Cash at end of period 1,250$ 198$ Net assets attributable to contractholders 2,417,683$ 1,683,688$

Net ass ets a ttributable to uni tholders per unit For the year ended December 31, 2017 2016Invest Series 11.20$ 10.74$ ExpensesSeries 1 11.51 11.09 Annual Management fee and Other adminis tration expenses




Dis tribution from underlying fund 103,228$ 80,296$ Real i zed ga in (loss ) on sa le of investments 6,874 (23,158) Change in unreal ized ga in/loss of investments 12,300 140,504 Sales and redemption of units

122,402 197,642 Invest Series Expenses Opening balance as at January 1st 29,605 4,218



Net income attributable to contractholders 73,458$ 159,005$ Redemptions during the period (33,496) (61,807) Net income attributable to contractholders per unit Clos ing balance as at December 31st 134,129 123,171



Premium depos its 1,204,284 578,005 Level 1 2,432,247$ 1,692,169$ Net income attributable to contractholders 73,458 159,005

2,961,430 2,341,384 Schedule of investment in underlying fundWithdrawals 543,747 657,696 RBC High Yield Bond Fund, Series O

Net assets, end of the period 2,417,683$ 1,683,688$ Number of units 221,421 156,093 Number of units outstanding Cos t 2,417,354$ 1,689,576$

Invest Series 78,101 29,605 Percentage held in underlying fund 0.1260% 0.0841%Series 1 134,129 123,171 Fa i r va lue 2,432,247$ 1,692,169$





RBC High Yield Bond GIF


Cash & Cash Equiva lents 11.6% CSC Holdings LLC 5.500% Apr 15 2027 1.1%Bloomberg Barclays Capi ta l High Yield Bond SPDR Fund 2.7% Ineos Finance Plc. EUR 4.000% May 1 2023 1.1%iShares iBoxx $ High Yield Corporate Bond Fund 2.6% Boyd Gaming Corp. 6.375% Apr 1 2026 1.1%Videotron Ltd. 5.750% Jan 15 2026 2.0% Seven Generations Energy Ltd. USD 5.375% Sep 30 2025 1.0%HCA Inc. 5.875% Feb 15 2026 1.7% Six Flags Entertainment Corp. 5.500% Apr 15 2027 1.0%Hanesbrands Inc. 4.875% May 15 2026 1.6% The Goodyear Ti re & Rubber Co. 5.000% May 31 2026 1.0%CCO Holdings LLC 5.750% Feb 15 2026 1.4% T-Mobi le USA Inc. 6.625% Apr 1 2023 1.0%Diamond 1 Finance Corp. 6.020% Jun 15 2026 1.3% NCR Corp. 5.000% Jul 15 2022 1.0%Equinix Inc. 5.875% Jan 15 2026 1.3% Alcoa Nederland Holding BV USD 6.750% Sep 30 2024 1.0%ArcelorMitta l USD 8.000% Oct 15 2039 1.3% Universa l Heal th Services Inc. 4.750% Aug 1 2022 1.0%CalAtlantic Group Inc. 5.250% Jun 1 2026 1.3% FMG Resources (August 2006) Pty Ltd. USD 5.125% May 15 2024 1.0%Vermi l ion Energy Inc. USD 5.625% Mar 15 2025 1.2% Wynn Las Vegas LLC Corp. 5.250% May 15 2027 1.0%Adient Global Holdings Ltd. EUR 3.500% Aug 15 2024 1.2% 43.5%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.20$ 10.74$ 9.66$ 9.87$ 11.51$ 11.09$ 10.02$ 10.27$ 10.03$ Net assets attributable to contractholders ($ '000) 874$ 318$ 41$ 19$ 1,544$ 1,366$ 1,563$ 2,455$ 237$ Net Income (loss ) ($ '000) 22$ 15$ (2)$ -$ 51$ 144$ (31)$ 7$ -$ Premium depos i ts ($ '000) 697$ 276$ 42$ 19$ 507$ 302$ 381$ 2,611$ -$ Withdrawals ($ '000) 164$ 13$ 19$ -$ 380$ 645$ 1,241$ 400$ -$ Number of uni ts outstanding 78,101 29,605 4,218 1,934 134,129 123,171 156,127 239,039 23,583



RBC High Yield Bond GIF (continued)

Series 1Invest Series





year 2013 not


series was introduced

in 2014.




Cash -$ 6,616$ Net income attributable to contractholders 2,587,054$ 2,134,992$ Investments in underlying fund at fa i r va lue 43,944,933 38,136,250 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (2,919,488) (2,079,280) Accounts receivable - contractholders - 11,730 Change in other assets 117 2,862 Accounts receivable - sa le of investments - - Change in other l i abi l i ties 5,144 4,148 Due from RBC Li fe Insurance Company 595 659 Purchases of investments (11,274,760) (9,513,634) Other 693 746 Proceeds from sa les of investments 8,385,565 6,955,719

43,946,221 38,156,001 Cash provided by (used in) oeprating activi ties (3,216,368) (2,495,193) Liabilities Financing activities

Bank indebtedness 1,616 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 11,609,482 9,503,566

Accrued expenses 100,236 95,092 Redemption of units (8,401,346) (7,000,933) Accounts payable - contractholders 180,296 - Cash provided by (used in) financing activi ties 3,208,136 2,502,633 Accounts payable - purchase of investments - - Increase (decrease) in cash (8,232) 7,440 Other - - Cash (Bank indebtedness) at beginning of period 6,616 (824)

282,148 95,092 Cash (Bank indebtedness) at end of period (1,616)$ 6,616$ Net assets attributable to contractholders 43,664,073$ 38,060,909$

Net assets attributable to contractholders per unit For the year ended December 31, 2017 2016Invest Series 11.46$ 10.73$ ExpensesSeries 1 14.55 13.67 Annual Management fee and Other adminis tra tion expensesSeries 2 11.53 10.85 Invest Series 1.16% 1.89%

Series 1 1.14% 2.25%Series 2 1.51% 1.93%


Dis tribution from underlying fund 782,210$ 1,036,655$ Series 2 0.70 (1.20) % 0.70 (1.20) %Real ized ga in on sa le of investments 2,322,189 803,321 Change in unreal ized ga in/loss of investments 597,299 1,275,959 Sales and redemption of units

3,701,698 3,115,935 Invest SeriesExpenses Opening ba lance as at January 1st 99,758 56,263


1,123,125 987,861 Series 1Less : Expenses waived 8,481 6,918 Opening ba lance as at January 1st 2,334,375 2,364,867 Expenses after waiver 1,114,644 980,943 Purchases during the period 572,316 465,295

Net income attributable to contractholders 2,587,054$ 2,134,992$ Redemptions during the period (483,497) (495,787) Net income attributable to contractholders per unit Clos ing ba lance as at December 31st 2,423,194 2,334,375

Invest Series 0.86$ 0.75$ Series 2Series 1 0.87 0.80 Opening ba lance as at January 1st 468,269 236,445 Series 2 0.68 0.65 Purchases during the period 212,046 269,399



Premium depos i ts 11,597,752 9,515,296 Level 1 43,944,933$ 38,136,250$ Net income attributable to contractholders 2,587,054 2,134,992

52,245,715 45,061,842 Schedule of investment in underlying fundWithdrawals 8,581,642 7,000,933 RBC Balanced Fund, Series O







RBC Balanced GIF


RBC Emerging Markets Equi ty Fund 3.7% Province of Ontario 4.650% Jun 2 2041 1.0%Royal Bank of Canada 2.4% Brookfield Asset Management Inc., Class A 1.0%Toronto-Dominion Bank 2.1% Canadian Natura l Resources Ltd. 1.0%Bank of Nova Scotia 1.6% Province of Ontario 3.150% Jun 2 2022 1.0%Cash & Cash Equiva lents 1.4% Government of Canada 0.750% Mar 1 2021 0.9%RBC Canadian Smal l & Mid-Cap Resources Fund 1.4% Province of Ontario 2.600% Jun 2 2025 0.9%Government of Canada 0.750% Sep 1 2021 1.3% Hydro-Quebec 6.500% Feb 15 2035 0.9%Enbridge Inc. 1.3% Manul i fe Financia l Corporation 0.9%Suncor Energy Inc. 1.2% TransCanada Corp. 0.9%Province of Ontario 4.600% Jun 2 2039 1.1% Province of Ontario 4.700% Jun 2 2037 0.9%Bank of Montrea l 1.1% Government of Canada 0.500% Mar 1 2022 0.9%Canadian National Rai lway Co. 1.1% Canadian Imperia l Bank of Commerce 0.8%Province of Ontario 2.850% Jun 2 2023 1.0% 31.8%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 11.46$ 10.73$ 10.05$ 10.11$ 14.55$ 13.67$ 12.87$ 12.85$ 11.86$ Net assets attributable to contractholders ($ '000) 1,667$ 1,071$ 566$ 11$ 35,255$ 31,908$ 30,427$ 28,234$ 26,200$ Net Income (loss ) ($ '000) 96$ 60$ (7)$ 1$ 2,131$ 1,866$ (41)$ 2,179$ 2,041$ Premium depos i ts ($ '000) 1,158$ 594$ 564$ 10$ 8,064$ 6,074$ 7,612$ 3,963$ 5,991$ Withdrawals ($ '000) 657$ 149$ 3$ -$ 6,849$ 6,459$ 5,377$ 4,108$ 5,115$ Number of uni ts outs tanding 145,468 99,758 56,263 1,042 2,423,194 2,334,375 2,364,867 2,196,982 2,209,905



Net Asset Value attributable to contractholders 11.53$ 10.85$ 10.23$ 10.24$ Net assets attributable to contractholders ($ '000) 6,742$ 5,082$ 2,419$ 155$ Net Income (loss ) ($ '000) 360$ 209$ (44)$ 2$ Premium depos i ts ($ '000) 2,376$ 2,847$ 2,420$ 153$ Withdrawals ($ '000) 1,076$ 393$ 112$ -$ Number of uni ts outs tanding 584,471 468,269 236,445 15,160





year 2013 and prior

not avai lable as

Invest Series was introduced

in 2014




RBC Balanced GIF (continued)

Series 2 3



year 2013 and prior

not avai lable as Series 2 was introduced

in 2014.




Cash 2,996$ -$ Net income attributable to contractholders 1,359,215$ 4,360,915$ Investments in underlying fund at fa i r va lue 44,369,529 40,514,407 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (340,004) (3,540,043) Accounts receivable - contractholders 7,815 - Change in other assets 6,816 4,040 Accounts receivable - sa le of investments - - Change in other l i abi l i ties 10,127 (15,594) Due from RBC Li fe Insurance Company 376 7,139 Purchases of investments (8,935,056) (5,140,300) Other 693 746 Proceeds from sa les of investments 5,419,938 11,662,207

44,381,409 40,522,292 Cash provided by (used in) oeprating activi ties (2,478,964) 7,331,225 Liabilities Financing activities

Bank indebtedness - 118,346 Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 9,285,986 5,353,980

Accrued expenses 97,345 87,218 Redemption of units (6,685,680) (12,805,544) Accounts payable - contractholders 8,924 - Cash provided by (used in) financing activi ties 2,600,306 (7,451,564) Accounts payable - purchase of investments - - Increase (decrease) in cash 121,342 (120,339) Other - - Cash (Bank indebtedness) at beginning of period (118,346) 1,993


Net assets attributable to contractholders per unit For the year ended December 31, 2017 2016Invest Series 10.88$ 10.49$ ExpensesSeries 1 13.14 12.72 Annual Management fee and Other adminis tra tion expensesSeries 2 10.73 10.40 Invest Series 1.11% 1.90%

Series 1 1.11% 2.20%Series 2 1.46% 1.91%


Dis tribution from underlying fund 2,143,950$ 1,934,591$ Series 2 0.70 (1.20) % 0.70 (1.20) %Real ized ga in (loss ) on sa le of investments 21,727 (562,832) Change in unreal ized ga in/loss of investments 318,277 4,102,875 Sales and redemption of units



1,172,090 1,197,752 Series 1Less : Expenses waived 47,351 84,033 Opening ba lance as at January 1st 2,878,373 3,684,645 Expenses after waiver 1,124,739 1,113,719 Purchases during the period 305,823 238,808

Net income attributable to contractholders 1,359,215$ 4,360,915$ Redemptions during the period (450,499) (1,045,080) Net income attributable to contractholders per unit Clos ing ba lance as at December 31st 2,733,697 2,878,373

Invest Series 0.39$ 1.11$ Series 2Series 1 0.41 1.29 Opening ba lance as at January 1st 251,571 89,366 Series 2 0.32 1.08 Purchases during the period 365,587 193,541




50,969,744 53,122,272 Schedule of investment in underlying fundWithdrawals 6,694,604 12,805,544 PH&N Monthly Income Fund, Series O







RBC PH&N Monthly Income GIF


RBC High Yield Bond Fund 5.6% Waste Connections Inc. 1.3%Toronto-Dominion Bank 4.4% Stantec Inc. 1.3%Phi l l ips , Hager & North High Yield Bond Fund 4.2% Canada Hous ing Trust No. 1 1.250% Jun 15 2021 1.2%Royal Bank of Canada 4.2% Government of Canada 3.250% Jun 1 2021 1.1%Enbridge Inc. 3.1% ARC Resources Ltd. 1.1%Bank of Nova Scotia 2.1% Province of Ontario 3.500% Jun 2 2043 1.1%Brookfield Asset Management Inc., Class A 2.0% Suncor Energy Inc. 1.1%Canadian Imperia l Bank of Commerce 2.0% Cash & Cash Equivalents 1.1%Manul i fe Financia l Corporation 1.6% Keyera Corp. 1.0%TransCanada Corp. 1.5% Canadian National Rai lway Co. 1.0%Al imentation Couche-Tard Inc. 1.5% Canadian Paci fic Ra i lway Ltd. 1.0%Government of Canada 0.750% Sep 1 2020 1.5% Shaw Communications Inc., Class B 1.0%Bank of Montreal 1.5% 48.5%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 10.88$ 10.49$ 9.37$ 9.87$ 13.14$ 12.72$ 11.41$ 12.07$ 11.40$ Net assets attributable to contractholders ($ '000) 2,284$ 1,085$ 543$ 140$ 35,915$ 36,615$ 42,041$ 54,138$ 43,622$ Net Income (loss ) ($ '000) 67$ 79$ (22)$ -$ 1,148$ 4,133$ (2,695)$ 2,584$ 2,270$ Premium depos i ts ($ '000) 1,503$ 506$ 430$ 140$ 3,934$ 2,895$ 6,191$ 22,227$ 23,280$ Withdrawals ($ '000) 370$ 43$ 6$ -$ 5,783$ 12,455$ 15,592$ 14,294$ 9,760$ Number of uni ts outs tanding 209,872 103,421 57,944 14,245 2,733,697 2,878,373 3,684,645 4,486,081 3,825,747



Net Asset Value attributable to contractholders 10.73$ 10.40$ 9.34 9.90$ Net assets attributable to contractholders ($ '000) 6,076$ 2,617$ 835$ 109$ Net Income (loss ) ($ '000) 144$ 149$ (46)$ 2$ Premium depos i ts ($ '000) 3,857$ 1,941$ 822$ 107$ Withdrawals ($ '000) 542$ 308$ 50$ -$ Number of uni ts outs tanding 566,161 251,571 89,366 10,982




RBC PH&N Monthly Income GIF (continued)





year 2013 not



in 2014.


year 2013 not



in 2014.


Series 2 3




Cash -$ 10,593$ Net income attributable to contractholders 1,441,005$ 642,739$ Investments in underlying fund at fa i r va lue 24,703,096 17,058,104 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (1,953,973) (1,041,957) Accounts receivable - contractholders - - Change in other assets 1,648 3,237 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 16,111 6,190 Due from RBC Li fe Insurance Company 1,428 3,023 Purchases of investments (9,390,978) (5,307,536) Other 693 746 Proceeds from sa les of investments 3,699,959 1,118,401


Bank indebtedness 330,315 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 9,351,617 6,197,401

Accrued expenses 62,383 46,272 Redemption of uni ts (3,506,297) (1,607,882) Accounts payable - contractholders 2,400 - Cash provided by (used in) financing activi ties 5,845,320 4,589,519 Accounts payable - purchase of investments - - Increase (decrease) in cash (340,908) 10,593 Other - - Cash at beginning of period 10,593 -



Series 1 1.11% 2.30%Series 2 1.51% 1.94%


Dis tribution from underlying fund 693$ 497$ Series 2 0.70 (1.20) % 0.70 (1.20) %Real i zed ga in on sa le of investments 1,282,425 163,362 Change in unreal ized ga in/loss of investments 671,548 878,595 Sales and redemption of units

1,954,666 1,042,454 Invest SeriesExpenses Opening balance as at January 1st 163,504 107,483



Net income attributable to contractholders 1,441,005$ 642,739$ Redemptions during the period (150,072) (98,094) Net income attributable to contractholders per unit Clos ing balance as at December 31st 560,704 554,760

Invest Series 0.92$ 0.54$ Series 2Series 1 1.06 0.60 Opening balance as at January 1st 672,720 425,382 Series 2 0.81 0.45 Purchases during the period 437,114 261,025

Redemptions during the period (59,559) (13,687) Clos ing balance as at December 31st 1,050,275 672,720


Premium depos i ts 9,351,617 6,197,401 Level 1 24,703,096$ 17,058,104$ Net income attributable to contractholders 1,441,005 642,739

27,818,816 18,634,076 Schedule of investment in underlying fundWithdrawals 3,508,697 1,607,882 RBC Global Balanced Fund, Series O

Net assets, end of the period 24,310,119$ 17,026,194$ Number of uni ts 1,176,114 859,320 Number of uni ts outs tanding Cost 22,433,731$ 15,460,287$

Invest Series 292,377 163,504 Percentage held in underlying fund 3.3977% 2.3869%Series 1 560,704 554,760 Fa i r va lue 24,703,096$ 17,058,104$ Series 2 1,050,275 672,720





RBC Global Balanced GIF


RBC Emerging Markets Equi ty Fund 3.9% Apple Inc. 0.9%Cash & Cash Equiva lents 1.9% United States Treasury 2.500% Feb 15 2045 0.9%Japan Government Twenty Year JPY 0.500% Sep 20 2036 1.7% Spain Government EUR 2.750% Apr 30 2019 0.9%United States Treasury 1.750% May 15 2023 1.6% Suncor Energy Inc. 0.9%Buoni Pol iennal i Del Tesoro EUR 1.500% Aug 1 2019 1.5% RBC U.S. Mid-Cap Growth Equity Fund USD 0.8%Royal Bank of Canada 1.4% RBC U.S. Mid-Cap Va lue Equity Fund USD 0.8%Toronto-Dominion Bank 1.3% Enbridge Inc. 0.8%Province of Ontario USD 2.500% Sep 10 2021 1.2% Province of Ontario 4.700% Jun 2 2037 0.8%Province of Ontario USD 1.625% Jan 18 2019 1.1% Buoni Pol iennal i Del Tesoro EUR 1.450% Sep 15 2022 0.8%United States Treasury 1.500% Jan 31 2022 1.1% Canadian National Ra i lway Co. 0.8%RBC Canadian Smal l & Mid-Cap Resources Fund 1.0% Japan Government Ten Year JPY 0.100% Sep 20 2027 0.7%United States Treasury 1.500% Nov 30 2019 1.0% United States Treasury 2.375% May 15 2027 0.7%Bank of Nova Scotia 0.9% 29.4%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.88$ 11.02$ 10.58$ 10.15$ 15.32$ 14.26$ 13.72$ 13.27$ 12.26$ Net assets attributable to contractholders ($ '000) 3,472$ 1,802$ 1,137$ 5$ 8,587$ 7,911$ 6,202$ 4,390$ 2,586$ Net Income ($ '000) 213$ 79$ 2$ -$ 561$ 321$ 96$ 283$ 217$ Premium depos i ts ($ '000) 2,103$ 688$ 1,140$ 5$ 2,310$ 2,752$ 6,742$ 1,863$ 1,366$ Withdrawals ($ '000) 645$ 102$ 10$ -$ 2,195$ 1,365$ 5,027$ 343$ 308$ Number of units outs tanding 292,377 163,504 107,483 500 560,704 554,760 451,973 330,728 210,933



Net Asset Va lue attributable to contractholders 11.66$ 10.87$ 10.47$ 10.15$ Net assets attributable to contractholders ($ '000) 12,251$ 7,313$ 4,455$ 254$ Net income (loss ) ($ '000) 667$ 243$ (21)$ 1$ Premium depos i ts ($ '000) 4,939$ 2,757$ 4,385$ 253$ Withdrawals ($ '000) 669$ 141$ 162$ -$ Number of units outs tanding 1,050,275 672,720 425,382 24,994








year 2013 not



in 2014.

RBC Global Balanced GIF (continued)

Series 2 3



year 2013 not



in 2014.




Cash 305,243$ -$ Net income attributable to contractholders 11,359,683$ 26,219,210$ Investments in underlying fund at fa i r va lue 184,462,610 172,351,648 Add (deduct) to convert net income toOther ass ets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (11,406,663) (25,430,949) Accounts receivable - contractholders 7,815 6,000 Change in other assets 6,033 1,443 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 13,343 21,543 Due from RBC Li fe Insurance Company - 6,000 Purchases of investments (29,773,246) (22,944,876) Other 539 572 Proceeds from s a les of investments 29,068,947 23,210,250

184,776,207 172,364,220 Cas h provided by (used in) operating activi ties (731,903) 1,076,621 Liabilities Financing activities

Bank indebtedness - 14,569 Di s tributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 43,894,416 32,912,582

Accrued expens es 382,319 368,976 Redemption of uni ts (42,842,701) (33,983,926) Accounts payable - contractholders 6,112 - Cas h provided by (used in) financing activi ties 1,051,715 (1,071,344) Accounts payable - purchase of investments - - Increase in cash 319,812 5,277 Other - - Bank indebtednes s at beginning of period (14,569) (19,846)


Net assets attributable to unitholders per uni t For the year ended December 31, 2017 2016Invest Series 11.74$ 10.97$ ExpensesSeries 1 17.78 16.69 Annual Management fee and Other adminis tration expens es




Distribution from underlying fund 4,808,806$ 5,038,536$ Real i zed ga in on sa le of inves tments 6,382,859 3,705,662 Change in unrea l i zed ga in/los s of investments 5,023,804 21,725,287 Sales and redemption of units

16,215,469 30,469,485 Invest SeriesExpenses Opening balance as a t January 1st 499,543 205,287

Management fees 3,757,435 3,293,861 Purchas es during the period 615,835 337,260 Insurance fees 749,035 656,816 Redemptions during the period (141,962) (43,004) Other adminis trative expenses 400,233 352,734 Clos ing ba lance as at December 31s t 973,416 499,543

4,906,703 4,303,411 Series 1Less : Expenses waived 50,917 53,136 Opening balance as a t January 1st 9,974,707 10,263,627 Expenses after waiver 4,855,786 4,250,275 Purchas es during the period 2,175,463 1,936,709

Net income attributable to contractholders 11,359,683$ 26,219,210$ Redemptions during the period (2,421,806) (2,225,629) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31s t 9,728,364 9,974,707




227,236,589 205,964,601 Schedule of investment in underlying fundWithdrawals 42,848,813 33,983,926 RBC Canadian Dividend Fund, Series O

Net assets, end of the period 184,387,776$ 171,980,675$ Number of uni ts 2,478,993 2,467,736 Number of uni ts outstanding Cost 141,562,348$ 134,475,190$






RBC Canadian Dividend GIF


Royal Bank of Canada 8.2% Canadian Paci fic Ra i lway Ltd. 2.0%Toronto-Dominion Bank 7.2% TELUS Corp. 1.8%Bank of Nova Scotia 6.1% Loblaw Companies Ltd. 1.7%Canadian National Ra i lway Co. 4.8% Sun Li fe Financia l Inc. 1.7%Brookfield Asset Management Inc., Class A 4.2% PrairieSky Roya l ty Ltd. 1.5%Cash & Cash Equiva lents 4.0% Power Corporation of Canada 1.5%Bank of Montrea l 3.8% Enbridge Inc., Restricted Apri l 7, 2018 1.4%Canadian Imperia l Bank of Commerce 3.2% BCE Inc. 1.3%Enbridge Inc. 3.1% Imperia l Oi l Ltd. 1.3%TransCanada Corp. 2.9% Thomson Corp. 1.3%Manul i fe Financia l Corporation 2.8% Pembina Pipel ine Corp. 1.2%Canadian Natura l Resources Ltd. 2.7% Rogers Communications Inc., Class B 1.2%Suncor Energy Inc. 2.5% 73.4%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.74$ 10.97$ 9.24$ 10.03$ 17.78$ 16.69$ 14.12$ 15.38$ 13.84$ Net assets attributable to contractholders ($ '000) 11,428$ 5,481$ 1,897$ 63$ 172,960$ 166,500$ 144,956$ 159,977$ 135,013$ Net Income (loss ) ($ '000) 649$ 594$ (116)$ -$ 10,711$ 25,625$ (13,412)$ 14,992$ 16,848$ Premium depos i ts ($ '000) 6,901$ 3,411$ 2,032$ 63$ 36,995$ 29,482$ 29,161$ 35,666$ 49,096$ Withdrawals ($ '000) 1,603$ 421$ 82$ -$ 41,246$ 33,563$ 30,770$ 25,694$ 15,356$ Number of uni ts outs tanding 973,416 499,543 205,287 6,255 9,728,364 9,974,707 10,263,627 10,403,149 9,756,886



3 Invest series commenced operations on November 7, 2014.

RBC Canadian Dividend GIF (continued)






year 2013 not



in 2014.




Cash -$ 1$ Net income attributable to contractholders 546,868$ 1,380,272$ Investments in underlying fund at fa i r value 10,774,614 8,903,740 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (589,198) (1,403,611) Accounts receivable - contractholders - - Change in other assets (897) 2,473 Accounts receivable - sa le of investments - - Change in other l i abi l i ties 6,789 (431) Due from RBC Li fe Insurance Company 742 1,927 Purchases of investments (3,887,818) (1,429,167) Other 2,654 572 Proceeds from sales of investments 2,606,142 1,679,973

10,778,010 8,906,240 Cash provided by (used in) oeprating activi ties (1,318,114) 229,509 Liabilities Financing activities

Bank indebtedness 9,361 - Distributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 3,611,794 1,677,501

Accrued expenses 42,016 35,227 Redemption of uni ts (2,303,042) (1,909,013) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 1,308,752 (231,512) Accounts payable - purchase of investments - - Decrease in cash (9,362) (2,003) Other - - Cash at beginning of period 1 2,004

51,377 35,227 Cash (Bank indebtedness) at end of period (9,361)$ 1$ Net assets attributable to contractholders 10,726,633$ 8,871,013$

Net assets attributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 11.32$ 10.69$ ExpensesSeries 1 14.83 14.05 Annual Management fee and Other administration expenses




Dis tribution from underlying fund 247,923$ 217,601$ Rea l i zed ga in (loss) on sa le of investments 752,090 (206,724) Change in unreal i zed ga in/loss of investments (162,892) 1,610,335 Sales and redemption of units

837,121 1,621,212 Invest SeriesExpenses Opening ba lance as at January 1s t 56,105 22,869

Management fees 138,236 113,937 Purchases during the period 120,067 37,188 Insurance fees 65,648 55,838 Redemptions during the period (34,741) (3,952) Other administrative expenses 104,056 102,024 Clos ing ba lance as at December 31st 141,431 56,105

307,940 271,799 Series 1Less : Expenses waived 17,687 30,859 Opening ba lance as at January 1s t 588,606 634,259 Expenses after waiver 290,253 240,940 Purchases during the period 160,277 99,620

Net income attributable to contractholders 546,868$ 1,380,272$ Redemptions during the period (133,436) (145,273) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 615,447 588,606



Premium depos i ts 3,611,794 1,677,501 Level 1 10,774,614$ 8,903,740$ Net income attributable to contractholders 546,868 1,380,272

13,029,675 10,780,026 Schedule of investment in underlying fundWithdrawals 2,303,042 1,909,013 RBC Canadian Equity Fund, Series O







RBC Canadian Equity GIF


Royal Bank of Canada 6.0% Sun Li fe Financia l Inc. 2.0%Toronto-Dominion Bank 5.3% TransCanada Corp. 2.0%Enbridge Inc. 4.4% BCE Inc. 1.9%RBC Canadian Smal l & Mid-Cap Resources Fund 4.2% Canadian Paci fic Ra i lway Ltd. 1.8%Bank of Nova Scotia 3.8% Cash & Cash Equiva lents 1.5%Canadian Nationa l Ra i lway Co. 3.3% Potash Corporation of Saskatchewan Inc. 1.4%Suncor Energy Inc. 3.2% SNC-Laval in Group Inc. 1.4%Manul i fe Financia l Corporation 2.9% CGI Group Inc., Class A 1.3%Canadian Natura l Resources Ltd. 2.7% Keyera Corp. 1.2%Brookfield Asset Management Inc., Class A 2.4% Agrium Inc. 1.1%Bank of Montrea l 2.4% Loblaw Companies Ltd. 1.0%Al imentation Couche-Tard Inc. 2.2% Pembina Pipel ine Corp. 1.0%Canadian Imperia l Bank of Commerce 2.1% 62.5%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.32$ 10.69$ 8.98$ 9.95$ 14.83$ 14.05$ 11.85$ 13.20$ 12.18$ Net assets attributable to contractholders ($ '000) 1,602$ 600$ 205$ 5$ 9,125$ 8,271$ 7,517$ 8,881$ 8,902$ Net Income (loss ) ($ '000) 71$ 66$ (18)$ -$ 476$ 1,314$ (831)$ 748$ 850$ Premium depos i ts ($ '000) 1,314$ 367$ 225$ 5$ 2,298$ 1,311$ 1,443$ 1,776$ 2,349$ Withdrawals ($ '000) 383$ 39$ 7$ -$ 1,920$ 1,870$ 1,976$ 2,545$ 2,279$ Number of units outs tanding 141,431 56,105 22,869 500 615,447 588,606 634,259 672,684 730,973




RBC Canadian Equity GIF (continued)






year 2013 not



in 2014.




Cash -$ 490$ Net income attributable to contractholders 376,579$ 859,495$ Investments in underlying fund at fa i r va lue 7,927,979 8,208,597 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (414,893) (894,203) Accounts receivable - contractholders 751 11,730 Change in other assets 752 2,668 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 7,038 (2,945) Due from RBC Li fe Insurance Company 2,245 2,965 Purchases of investments (1,287,376) (2,638,904) Other 730 762 Proceeds from sa les of investments 1,982,887 3,442,438

7,931,705 8,224,544 Cash provided by (used in) oeprating activi ties 664,987 768,549 Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 1,368,740 2,784,514

Accrued expenses 31,325 24,287 Redemption of uni ts (2,034,217) (3,551,803) Accounts payable - contractholders 9,307 - Cash provided by (used in) financing activi ties (665,477) (767,289) Accounts payable - purchase of investments - - Increase (decrease) in cash (490) 1,260 Other - - Cash (Bank indebtedness) at beginning of period 490 (770)

40,632 24,287 Cash at end of period -$ 490$ Net assets attributable to contractholders 7,891,073$ 8,200,257$

Net assets attributable to uni tholders per uni t For the year ended December 31, 2017 2016Invest Series 11.77$ 11.16$ ExpensesSeries 1 18.92 18.02 Annual Management fee and Other adminis tration expenses




Dis tribution from underlying fund 207,197$ 224,530$ Rea l i zed ga in on sa le of investments 160,167 630,392 Change in unrea l i zed ga in/loss of investments 254,726 263,811 Sales and redemption of units

622,090 1,118,733 Invest SeriesExpenses Opening ba lance as at January 1st 42,856 22,772


282,616 294,126 Series 1Less : Expenses waived 37,105 34,888 Opening ba lance as at January 1st 428,426 485,560 Expenses after waiver 245,511 259,238 Purchases during the period 58,634 143,060

Net income attributable to contractholders 376,579$ 859,495$ Redemptions during the period (101,958) (200,194) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 385,102 428,426




9,934,597 11,752,060 Schedule of investment in underlying fundWithdrawals 2,043,524 3,551,803 RBC O'Shaughnessy All Canadian Equity Fund, Series O







RBC O'Shaughnessy All Canadian Equity GIF


Genworth MI Canada Inc. 3.3% WestJet Ai rl ines Ltd. 2.0%Royal Bank of Canada 3.2% Canfor Corp. 2.0%Sun Li fe Financia l Inc. 2.9% TFI International Inc. 1.9%BRP Inc. 2.8% Toronto-Dominion Bank 1.9%Teck Resources Ltd., Class B 2.7% Industria l Al l iance Insurance & Financia l Services Inc. 1.8%Martinrea International Inc. 2.6% Cogeco Communications Inc. 1.8%Transcontinenta l Inc., Class A 2.6% Granite Rea l Es tate Investment Trust 1.8%Manul i fe Financia l Corporation 2.5% Bank of Nova Scotia 1.6%West Fraser Timber Co. Ltd. 2.5% Capita l Power Corp. 1.6%Air Canada 2.5% Pure Industria l Rea l Es tate Investment Trust 1.6%Great-West Li feco Inc. 2.3% George Weston Ltd. 1.5%Great Canadian Gaming Corp. 2.1% Norbord Inc. 1.5%Cascades Inc. 2.1% 55.1%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.77$ 11.16$ 9.99$ 10.13$ 18.92$ 18.02$ 16.21$ 16.51$ 16.13$ Net assets attributable to contractholders ($ '000) 607$ 478$ 227$ 5$ 7,284$ 7,722$ 7,869$ 11,570$ 11,250$ Net Income (loss ) ($ '000) 29$ 32$ (6)$ -$ 348$ 827$ (218)$ 193$ 2,492$ Premium depos i ts ($ '000) 289$ 259$ 249$ 5$ 1,069$ 2,537$ 1,223$ 3,517$ 2,563$ Withdrawals ($ '000) 189$ 40$ 20$ -$ 1,855$ 3,512$ 4,705$ 3,390$ 1,720$ Number of units outs tanding 51,541 42,856 22,772 500 385,102 428,426 485,560 700,651 697,436




RBC O'Shaughnessy All Canadian Equity GIF (continued)






year 2013 and prior not

available as Invest Series

was introduced in

2014.




Cash -$ 4,071$ Net income attributable to contractholders 284,262$ 816,165$ Investments in underlying fund at fa i r va lue 6,857,333 5,701,777 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (281,703) (787,285) Accounts receivable - contractholders - - Change in other assets 903 2,155 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 8,195 (897) Due from RBC Li fe Insurance Company 1,432 2,303 Purchases of investments (2,510,319) (2,021,355) Other 505 537 Proceeds from sa les of investments 1,636,466 1,364,718

6,859,270 5,708,688 Cash provided by (used in) oeprating activi ties (862,196) (626,499) Liabilities Financing activities

Bank indebtedness 818 - Di s tributions to the contractholders - - Other l i abi l i ties Proceeds from i ssue of units 2,466,602 2,036,481

Accrued expenses 25,197 17,002 Redemption of uni ts (1,609,295) (1,406,544) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 857,307 629,937 Accounts payable - purchase of investments - - Increase (decrease) in cas h (4,889) 3,438 Other - - Cash at beginning of period 4,071 633


Net assets a ttributable to unitholders per uni t For the year ended December 31, 2017 2016Invest Series 11.22$ 10.68$ ExpensesSeries 1 12.51 11.95 Annual Management fee and Other adminis tration expenses


Annual Insurance Fee (Limi t)Invest Series 0.30 (0.80) % 0.30 (0.80) %


Distribution from underlying fund 186,612$ 155,841$ Real i zed ga in (loss ) on sa le of investments 358,507 (57,969) Change in unreal i zed ga in/loss of investments (76,804) 845,254 Sales and redemption of units



209,675 159,594 Series 1Less : Expenses wa ived 25,622 32,633 Opening ba lance as at January 1st 418,910 406,814 Expenses after waiver 184,053 126,961 Purchases during the period 163,339 135,806

Net income attributable to contractholders 284,262$ 816,165$ Redemptions during the period (105,061) (123,710) Net income attributable to contractholders per unit Clos ing ba lance as at December 31st 477,188 418,910



Premium depos its 2,466,602 2,036,481 Level 1 6,857,333$ 5,701,777$ Net income attributable to contractholders 284,262 816,165

8,442,550 7,098,230 Schedule of investment in underlying fundWithdrawals 1,609,295 1,406,544 PH&N Canadian Income Fund, Series O

Net assets, end of the period 6,833,255$ 5,691,686$ Number of uni ts 442,769 369,059 Number of units outstanding Cost 6,573,547$ 5,341,187$






RBC PH&N Canadian Income GIF


Toronto-Dominion Bank 8.3% Canadian Nationa l Ra i lway Co. 2.0%Royal Bank of Canada 8.0% Shaw Communications Inc., Class B 2.0%Enbridge Inc. 5.8% Keyera Corp. 2.0%Bank of Nova Scotia 4.0% Canadian Paci fi c Ra i lway Ltd. 2.0%Brookfield Asset Management Inc., Class A 3.9% Suncor Energy Inc. 1.9%Canadian Imperia l Bank of Commerce 3.8% Fairfax Financia l Holdings Ltd. 1.9%Manul i fe Financia l Corporation 3.2% Thomson Corp. 1.7%TransCanada Corp. 2.9% Quebecor Inc., Class B 1.7%Al imentation Couche-Tard Inc. 2.9% Open Text Corp. 1.6%Bank of Montrea l 2.8% CGI Group Inc., Class A 1.5%Waste Connections Inc. 2.4% First Capi ta l Rea l ty Inc. 1.5%Stantec Inc. 2.4% Dol larama Inc. 1.5%ARC Resources Ltd. 2.1% 73.8%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 11.22$ 10.68$ 8.85$ 9.73$ 12.51$ 11.95$ 9.95$ 10.97$ 10.31$ Net assets attributable to contractholders ($ '000) 865$ 684$ 198$ 50$ 5,970$ 5,008$ 4,048$ 4,795$ 359$ Net Income (loss ) ($ '000) 40$ 51$ (21)$ -$ 244$ 765$ (449)$ (33)$ 8$ Premium depos i ts ($ '000) 489$ 515$ 208$ 50$ 1,978$ 1,521$ 1,396$ 5,070$ 437$ Withdrawals ($ '000) 349$ 80$ 37$ -$ 1,260$ 1,327$ 1,696$ 602$ 86$ Number of uni ts outs tanding 77,004 64,054 22,411 5,083 477,188 418,910 406,814 436,991 34,865



RBC PH&N Canadian Income GIF (continued)






year 2013 not



in 2014.




Cash 11,625$ -$ Net income attributable to contractholders 1,873,289$ 1,079,903$ Investments in underlying fund at fa i r va lue 22,276,158 12,735,621 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (2,194,831) (1,098,620) Accounts receivable - contractholders - - Change in other assets 2,907 1,338 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 27,767 5,450 Due from RBC Li fe Insurance Company 340 3,215 Purchases of investments (10,420,977) (5,224,294) Other 505 537 Proceeds from sa les of investments 3,075,271 2,092,482


Bank indebtedness -$ 20,961$ Di s tributions to the contractholders - - Other l i abi l i ties Proceeds from i ssue of units 11,320,864 5,379,530

Accrued expenses 65,119 37,352 Redemption of uni ts (3,651,704) (2,240,106) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 7,669,160 3,139,424 Accounts payable - purchase of investments - - Increase (decrease) in cas h 32,586 (4,317) Other - - Bank indebtedness at beginning of period (20,961) (16,644)


Net assets a ttributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 12.49$ 11.31$ ExpensesSeries 1 14.30 13.01 Annual Management fee and Other adminis tration expenses


Annual Insurance Fee (Limi t)Invest Series 0.30 (0.80) % 0.30 (0.80) %


Distribution from underlying fund 221,304$ 256,709$ Real i zed ga in (loss ) on sa le of investments 985,647 219,245 Change in unreal i zed ga in/loss of investments 1,209,184 879,375 Sales and redemption of units



574,848 307,401 Series 1Less : Expenses wa ived 32,002 31,975 Opening ba lance as at January 1st 814,309 673,233 Expenses after waiver 542,846 275,426 Purchases during the period 506,026 318,078

Net income attributable to contractholders 1,873,289$ 1,079,903$ Redemptions during the period (197,858) (177,002) Net income attributable to contractholders per unit Clos ing ba lance as at December 31st 1,122,477 814,309



Premium depos its 11,320,864 5,379,530 Level 1 22,276,158$ 12,735,621$ Net income attributable to contractholders 1,873,289 1,079,903

25,875,213 14,921,166 Schedule of investment in underlying fundWithdrawals 3,651,704 2,240,106 RBC North American Value Fund, Series O

Net assets, end of the period 22,223,509$ 12,681,060$ Number of uni ts 845,247 524,162 Number of units outstanding Cost 20,221,862$ 11,890,509$

Invest Series 494,111 184,779 Percentage held in underlying fund 0.7248% 0.5074%Series 1 1,122,477 814,309 Fa i r va lue 22,276,158$ 12,735,621$





RBC North American Value GIF


Cash & Cash Equiva lents 7.1% TransCanada Corp. 1.5%Royal Bank of Canada 3.9% JPMorgan Chase & Co. 1.5%Bank of Nova Scotia 3.8% Canadian Natura l Resources Ltd. 1.5%Toronto-Dominion Bank 3.5% UnitedHeal th Group Incorporated 1.4%Brookfield Asset Management Inc., Class A 2.7% Canadian Nationa l Ra i lway Co. 1.4%Bank of Montrea l 2.0% Canadian Paci fi c Ra i lway Ltd. 1.4%Alphabet Inc., Class C 1.7% BCE Inc. 1.4%Apple Inc. 1.7% D.R. Horton Inc. 1.3%Microsoft Corp. 1.6% Ross Stores Inc. 1.2%Enbridge Inc., Restricted Apri l 7, 2018 1.5% Charter Communications Inc. 1.1%Berkshire Hathaway Inc., Class B 1.5% Encana Corp. 1.1%Manul i fe Financia l Corporation 1.5% Potash Corporation of Saskatchewan Inc. 1.1%Prai rieSky Roya l ty Ltd. 1.5% 49.9%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 12.49$ 11.31$ 10.09$ 10.15$ 14.30$ 13.01$ 11.65$ 11.76$ 10.47$ Net assets attributable to contractholders ($ '000) 6,171$ 2,090$ 615$ 73$ 16,053$ 10,591$ 7,847$ 8,801$ 662$ Net Income (loss ) ($ '000) 489$ 137$ (18)$ -$ 1,384$ 943$ (37)$ 485$ 22$ Premium depos i ts ($ '000) 4,517$ 1,505$ 599$ 73$ 6,804$ 3,875$ 2,543$ 8,522$ 729$ Withdrawals ($ '000) 925$ 168$ 39$ -$ 2,727$ 2,072$ 3,460$ 868$ 89$ Number of uni ts outs tanding 494,111 184,779 60,959 7,155 1,122,477 814,309 673,233 748,176 63,269



RBC North American Value GIF (continued)

Invest Series Series 1



year 2013 not



in 2014.






Ca sh 200$ -$ Net income attributable to contractholders 247,667$ 228,247$ Investments in underlying fund at fa i r va lue 3,666,393 2,459,283 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (269,566) (204,798) Accounts receivable - contractholders - 2,459 Change in other assets 991 1,924 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 6,841 181 Due from RBC Li fe Insurance Compa ny 3,246 4,204 Purchases of investments (1,759,115) (818,011) Other 539 572 Proceeds from sa les of investments 821,571 392,837

3,670,378 2,466,518 Cash provided by (used in) oeprating a ctivi ties (951,611) (399,620) Liabilities Financing activities

Bank indebtedness - - Di stributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 1,675,065 756,234

Accrued expenses 27,712 20,871 Redemption of uni ts (723,254) (401,787) Accounts payable - contra ctholders - - Cash provided by (used in) financing activi ties 951,811 354,447 Accounts payable - purchase of investments - - Increase (decrease) in cash 200 (45,173) Other - - Cash at beginning of period - 45,173

27,712 20,871 Cash at end of period 200$ -$ Net assets attributable to contractholders 3,642,666$ 2,445,647$





Dis tribution from underlying fund 75,563$ 82,824$ Rea l i zed ga in on sa le of investments 205,877 27,581 Cha nge in unreal i zed ga in/loss of investments 63,689 177,217 Sales and redemption of units

345,129 287,622 Invest SeriesExpenses Opening ba la nce as at January 1s t 37,512 12,943


143,455 114,078 Series 1Less : Expenses waived 45,993 54,703 Opening ba la nce as at January 1s t 132,132 125,800 Expenses after waiver 97,462 59,375 Purchases during the period 64,452 33,810

Net income attributable to contractholders 247,667$ 228,247$ Redemptions during the period (27,933) (27,478) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 168,651 132,132


For the year ended December 31, 2017 2016 As at Dec 31, 2017 Dec 31, 2016Net a ssets , beginning of the period 2,445,647$ 1,860,494$ Investment in underlying fund at fair value

Premium depos i ts 1,672,606 758,693 Level 1 3,666,393$ 2,459,283$ Net income attributable to contra ctholders 247,667 228,247

4,365,920 2,847,434 Schedule of investment in underlying fundWithdrawals 723,254 401,787 RBC North American Growth Fund, Series O


Invest Series 70,499 23,588 Percenta ge held in underlying fund 0.6717% 0.4635%Series 1 168,651 124,270 Fa i r va lue 3,666,393$ 2,459,283$





RBC North American Growth GIF


Royal Bank of Canada 4.3% Alphabet Inc., Class A 1.4%Toronto-Dominion Bank 3.6% Brookfield Asset Management Inc., Class A 1.4%Bank of Nova Scotia 3.0% Cash & Cash Equivalents 1.3%Canadian Nationa l Rai lway Co. 2.7% BCE Inc. 1.1%Suncor Energy Inc. 2.2% Amazon.com, Inc. 1.0%Bank of Montreal 2.0% Sun Li fe Financia l Inc. 1.0%Enbridge Inc. 1.9% Facebook Inc., Class A 0.9%Apple Inc. 1.7% JPMorgan Chase & Co. 0.9%Canadian Natura l Resources Ltd. 1.6% Canadian Paci fic Ra i lway Ltd. 0.9%TransCanada Corp. 1.5% Magna Internationa l Inc., Class A 0.8%Manul i fe Financia l Corporation 1.5% Al imentation Couche-Tard Inc. 0.8%Canadian Imperia l Bank of Commerce 1.5% Potash Corporation of Saskatchewan Inc. 0.7%Microsoft Corp. 1.4% 41.1%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 12.25$ 11.32$ 10.13$ 10.06$ 16.48$ 15.30$ 13.75$ 13.62$ 12.49$ Net assets attributable to contractholders ($ '000) 864$ 425$ 131$ 5$ 2,779$ 2,021$ 1,729$ 1,773$ 1,394$ Net Income (loss ) ($ '000) 59$ 39$ (5)$ -$ 188$ 189$ 7$ 144$ 207$ Premium depos i ts ($ '000) 664$ 275$ 152$ 5$ 1,009$ 484$ 761$ 671$ 501$ Withdrawals ($ '000) 284$ 21$ 21$ -$ 439$ 381$ 811$ 435$ 310$ Number of uni ts outs tanding 70,499 37,512 12,943 500 168,651 132,132 125,800 130,137 111,583




RBC North American Growth GIF (continued)






year 2013 not



in 2014.




Cash 116,039$ 19,929$ Net income attributable to contractholders 5,004,875$ 2,351,026$ Investments in underlying fund at fa i r va lue 56,032,877 44,385,009 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (5,362,012) (2,611,662) Accounts receivable - contractholders 10,420 6,000 Change in other assets 10,747 66 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 40,776 2,432 Due from RBC Li fe Insurance Company - 10,714 Purchases of investments (13,617,867) (13,062,245) Other 539 572 Proceeds from sa les of investments 7,332,011 11,019,745


Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 17,269,131 15,945,012

Accrued expenses 146,944 106,168 Redemption of units (10,581,551) (13,594,538) Accounts payable - contractholders 10,299 - Cash provided by (used in) financing activi ties 6,687,580 2,350,474 Accounts payable - purchase of investments - - Increase in cash 96,110 49,836 Other - - Cash (Bank indebtedness ) at beginning of period 19,929 (29,907)






Distribution from underlying fund 1,193,291$ 960,059$ Rea l ized ga in on sa le of investments 2,159,160 1,369,084 Change in unreal i zed ga in/loss of investments 3,202,852 1,242,578 Sales and redemption of units

6,555,303 3,571,721 Invest SeriesExpenses Opening ba lance as a t January 1st 552,254 189,803

Management fees 1,056,745 872,335 Purchases during the period 295,936 426,334 Insurance fees 329,321 268,914 Redemptions during the period (110,478) (63,883) Other adminis trative expenses 246,349 194,194 Clos ing ba lance as at December 31st 737,712 552,254

1,632,415 1,335,443 Series 1Less : Expenses waived 81,987 114,748 Opening ba lance as a t January 1st 2,117,261 2,239,829 Expenses after waiver 1,550,428 1,220,695 Purchases during the period 726,716 665,130

Net income attributable to contractholders 5,004,875$ 2,351,026$ Redemptions during the period (492,141) (787,698) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 2,351,836 2,117,261




66,594,482 57,910,594 Schedule of investment in underlying fundWithdrawals 10,591,850 13,594,538 RBC U.S. Dividend Fund, Series O

Net assets, end of the period 56,002,632$ 44,316,056$ Number of units 1,897,458 1,632,240 Number of uni ts outstanding Cost 47,470,679$ 39,025,663$






RBC U.S. Dividend GIF


Apple Inc. 4.4% Pfizer Inc. 2.0%Microsoft Corp. 3.8% McDonald's Corp. 2.0%JPMorgan Chase & Co. 3.4% UnitedHeal th Group Incorporated 1.9%Bank of America Corp. 3.1% Boeing Co. 1.6%Johnson & Johnson 2.8% Oracle Corporation 1.4%Cash & Cash Equivalents 2.7% AT&T Inc. 1.4%Citigroup Inc. 2.6% Merck & Co. Inc. 1.4%Peps iCo Inc. 2.3% Broadcom Ltd. 1.4%Chevron Corp. 2.3% Aetna Inc. 1.3%Cisco Sys tems Inc. 2.3% Amgen Inc. 1.3%Phi l ip Morri s Internationa l Inc. 2.3% Intel Corp. 1.3%Texas Ins truments Inc. 2.1% CVS Heal th Corp. 1.3%Comcast Corp., Class A 2.1% 54.5%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 14.13$ 12.75$ 12.02$ 10.37$ 19.38$ 17.60$ 16.67$ 14.46$ 12.14$ Net assets attributable to contractholders ($ '000) 10,423$ 7,043$ 2,281$ 70$ 45,580$ 37,273$ 37,342$ 18,006$ 13,095$ Net Income ($ '000) 907$ 394$ 135$ -$ 4,098$ 1,957$ 3,489$ 2,493$ 2,336$ Premium depos i ts ($ '000) 3,959$ 5,122$ 2,256$ 70$ 13,315$ 10,815$ 20,878$ 8,621$ 8,095$ Withdrawals ($ '000) 1,486$ 754$ 180$ -$ 9,106$ 12,841$ 5,032$ 6,202$ 988$ Number of uni ts outstanding 737,712 552,254 189,803 6,756 2,351,836 2,117,261 2,239,829 1,245,041 1,078,665




RBC U.S. Dividend GIF (continued)




year 2013 not



in 2014.






Cash -$ 35,234$ Net income attributable to contractholders 521,776$ 229,034$ Investments in underlying fund at fa i r va lue 6,297,362 6,128,023 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (602,408) (310,171) Accounts receivable - contractholders - - Change in other assets 140 1,950 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 8,526 1,104 Due from RBC Li fe Insurance Company 2,645 2,752 Purchases of investments (2,100,108) (2,851,418) Other 539 572 Proceeds from sa les of investments 2,533,177 2,047,830

6,300,546 6,166,581 Cash provided by (used in) oeprating activi ties 361,103 (881,671) Liabilities Financing activities

Bank indebtedness 10,151 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 2,155,230 3,131,621

Accrued expenses 37,272 28,746 Redemption of uni ts (2,561,718) (2,215,580) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties (406,488) 916,041 Accounts payable - purchase of investments - - Increase (decrease) in cash (45,385) 34,370 Other - - Cash at beginning of period 35,234 864






Distribution from underlying fund 98,464$ 89,423$ Real i zed ga in (loss) on sa le of investments 405,912 (149,471) Change in unrea l i zed ga in/loss of investments 196,496 459,642 Sales and redemption of units

700,872 399,594 Invest SeriesExpenses Opening ba lance as at January 1s t 58,002 38,327



Net income attributable to contractholders 521,776$ 229,034$ Redemptions during the period (141,974) (140,120) Net income attributable to contractholders per uni t Clos ing balance as at December 31st 292,946 332,240




8,814,841 8,353,415 Schedule of investment in underlying fundWithdrawals 2,561,718 2,215,580 RBC U.S. Equity Fund, Series O







RBC U.S. Equity GIF


Apple Inc. 4.4% UnitedHeal th Group Incorporated 1.8%RBC U.S. Mid-Cap Growth Equity Fund USD 3.9% Berkshi re Hathaway Inc., Class B 1.7%Cash & Cash Equivalents 3.9% Comcast Corp., Class A 1.5%RBC U.S. Mid-Cap Value Equi ty Fund USD 3.6% Altria Group Inc. 1.5%Microsoft Corp. 3.2% Exxon Mobi l Corp. 1.4%Alphabet Inc., Class A 3.1% Cisco Sys tems Inc. 1.4%Amazon.com, Inc. 2.6% Intel Corp. 1.4%Bank of America Corp. 2.5% Texas Ins truments Inc. 1.3%Facebook Inc., Class A 2.4% Morgan Stanley 1.3%Johns on & Johnson 2.2% Peps iCo Inc. 1.2%Chevron Corp. 2.2% Pfizer Inc. 1.2%JPMorgan Chase & Co. 2.2% Oracle Corporation 1.2%Citigroup Inc. 2.0% 55.1%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Ass et Va lue attributable to contractholders 13.32$ 12.14$ 11.65$ 10.29$ 17.85$ 16.35$ 15.76$ 13.98$ 12.09$ Net assets attributable to contractholders ($ '000) 1,024$ 704$ 447$ 12$ 5,229$ 5,434$ 4,546$ 2,450$ 1,705$ Net Income ($ '000) 88$ 41$ 15$ -$ 434$ 188$ 376$ 316$ 316$ Premium depos its ($ '000) 383$ 326$ 496$ 12$ 1,772$ 2,806$ 2,771$ 949$ 847$ Withdrawals ($ '000) 151$ 109$ 75$ -$ 2,411$ 2,107$ 1,053$ 520$ 217$ Number of uni ts outs tanding 76,906 58,002 38,327 1,135 292,946 332,240 288,536 175,334 141,084




RBC U.S. Equity GIF (continued)






year 2013 not



in 2014.




Cash -$ 35,000$ Net income attributable to contractholders 2,714,649$ 1,271,132$ Investments in underlying fund at fa i r va lue 16,968,330 13,178,519 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net ga ins on investments (2,862,201) (1,391,008) Accounts receivable - contractholders - - Change in other assets 3,278 3,163 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 14,845 (23,315) Due from RBC Li fe Insurance Company 183 3,429 Purchases of investments (4,669,411) (1,145,148) Other 730 762 Proceeds from sa les of investments 3,741,801 4,264,095


Bank indebtedness 1,100 - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 3,783,860 1,355,865

Accrued expenses 57,555 42,710 Redemption of uni ts (2,762,921) (4,300,058) Accounts payable - contractholders 9,596 - Cash provided by (used in) financing activi ties 1,020,939 (2,944,193) Accounts payable - purchase of investments - - Increase (decreas e) in cas h (36,100) 34,726 Other - - Cash at beginning of period 35,000 274




Annual Ins urance Fee (Limit)Invest Series 0.40 (0.90) % 0.40 (0.90) %


Distribution from underlying fund 319,340$ 299,162$ Rea l i zed ga in on sa le of investments 1,822,410 226,103 Change in unrea l i zed ga in/loss of investments 1,039,791 1,164,905 Sales and redemption of units



491,480 464,356 Series 1Less : Expenses waived 24,588 45,318 Opening balance as at January 1st 895,960 1,145,728 Expenses after waiver 466,892 419,038 Purchases during the period 213,107 80,733

Net income attributable to contractholders 2,714,649$ 1,271,132$ Redemptions during the period (181,999) (330,501) Net income attributable to contractholders per unit Clos ing balance as at December 31st 927,068 895,960




19,673,509 17,475,058 Schedule of investment in underlying fundWithdrawals 2,772,517 4,300,058 RBC O'Shaughnessy U.S. Value Fund, Series O

Net assets, end of the period 16,900,992$ 13,175,000$ Number of units 982,600 844,322 Number of uni ts outstanding Cost 14,073,301$ 11,323,281$






RBC O'Shaughnessy U.S. Value GIF


Lyondel lBasel l Industries N.V. 5.0% Discover Financia l Services 2.5%Valero Energy Corp. 5.0% American Express Company 2.4%Boeing Co. 4.9% The Western Union Co. 2.4%Ameriprise Financia l Inc. 4.9% Sysco Corp. 2.2%The Procter & Gamble Co. 3.6% McKesson Corp. 1.9%Target Corporation 3.4% Conagra Brands Inc. 1.8%Wyndham Worldwide Corp. 3.0% Genera l Mi l l s Inc. 1.8%Hartford Financia l Services Inc. 3.0% Cadence Des ign Systems Inc. 1.8%McDonald's Corp. 3.0% Yum! Brands , Inc. 1.7%Corning Inc. 2.8% Gi lead Sciences Inc. 1.7%Best Buy Co. Inc. 2.8% United Continental Holdings Inc. 1.7%Citigroup Inc. 2.7% Regions Financia l Corp. 1.7%XL Group Ltd. 2.5% 70.2%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 12.28$ 10.22$ 9.18$ 10.20$ 16.76$ 14.02$ 12.66$ 14.13$ 12.96$ Net assets attributable to contractholders ($ '000) 1,366$ 611$ 347$ 36$ 15,535$ 12,564$ 14,501$ 18,624$ 13,095$ Net Income (loss ) ($ '000) 179$ 58$ (44)$ -$ 2,536$ 1,213$ (1,765)$ 1,487$ 3,110$ Premium depos i ts ($ '000) 634$ 316$ 367$ 36$ 3,150$ 1,040$ 2,709$ 8,262$ 6,808$ Withdrawals ($ '000) 58$ 110$ 12$ -$ 2,715$ 4,190$ 5,067$ 4,220$ 2,431$ Number of uni ts outs tanding 111,248 59,753 37,785 3,507 927,068 895,960 1,145,728 1,317,621 1,010,237




RBC O'Shaughnessy U.S. Value GIF (continued)






year 2013 not



in 2014.




Cash 207,183$ 5,967$ Net income (loss ) attributable to contractholders 2,907,731$ (1,324,491)$ Investments in underlying fund at fa i r value 24,819,975 15,387,116 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net (ga ins ) losses on investments (2,946,832) 1,065,944 Accounts receivable - contractholders - - Change in other assets 6,590 368 Accounts receivable - sa le of investments - - Change in other l i abi l i ties 28,970 (21,919) Due from RBC Li fe Insurance Company 254 6,811 Purchases of investments (8,764,876) (4,575,470) Other 539 572 Proceeds from sales of investments 2,278,849 9,780,562


Bank indebtedness - - Distributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 10,003,151 6,434,057

Accrued expenses 73,610 44,640 Redemption of uni ts (3,312,367) (11,333,247) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 6,690,784 (4,899,190) Accounts payable - purchase of investments - - Increase in cash 201,216 25,804 Other - - Cash (Bank indebtedness) at beginning of period 5,967 (19,837)


Net assets attributable to unitholders per uni t For the year ended December 31, 2017 2016Invest Series 13.65$ 11.63$ ExpensesSeries 1 17.03 14.59 Annual Management fee and Other administration expenses




Dis tribution from underlying fund 564,217$ 359,298$ Real i zed ga in (loss) on sa le of investments 228,351 (315,875) Change in unreal i zed ga in/loss of investments 2,718,481 (750,069) Sales and redemption of units

3,511,049 (706,646) Invest SeriesExpenses Opening ba lance as at January 1s t 221,425 126,693

Management fees 341,448 388,546 Purchases during the period 287,632 153,025 Insurance fees 149,080 158,002 Redemptions during the period (19,651) (58,293) Other administrative expenses 165,861 141,095 Clos ing ba lance as at December 31st 489,406 221,425

656,389 687,643 Series 1Less : Expenses waived 53,071 69,798 Opening ba lance as at January 1s t 876,200 1,298,151 Expenses after waiver 603,318 617,845 Purchases during the period 389,098 326,602

Net income (loss) attributable to contractholders 2,907,731$ (1,324,491)$ Redemptions during the period (192,503) (748,553) Net income (loss) attributable to contractholders per uni t Clos ing ba lance as at December 31st 1,072,795 876,200

Invest Series 1.93$ (0.30)$ Series 1 2.44 (1.06)


Premium depos i ts 10,003,151 6,431,057 Level 1 24,819,975$ 15,387,116$ Net income (loss ) attributable to contractholders 2,907,731 (1,324,491)

28,266,708 26,689,073 Schedule of investment in underlying fundWithdrawals 3,312,367 11,333,247 RBC Global Dividend Growth Fund, Series O

Net assets, end of the period 24,954,341$ 15,355,826$ Number of uni ts 1,659,344 1,205,726 Number of uni ts outs tanding Cost 22,726,931$ 16,012,553$

Invest Series 489,406 221,425 Percentage held in underlying fund 0.8916% 0.6428%Series 1 1,072,795 876,200 Fa i r va lue 24,819,975$ 15,387,116$





RBC Global Dividend Growth GIF


Taiwan Semiconductor Manufacturing Co. Ltd. ADR 4.6% Firs t Republ ic Bank 2.6%Deutsche Post AG 4.3% Sempra Energy 2.5%UnitedHeal th Group Incorporated 4.1% Activi s ion Bl i zzard Inc. 2.4%Blackstone Group LP 4.0% Novo Nordisk A/S 2.3%Intui t Inc. 4.0% Royal Dutch Shel l Plc., B Shares 2.3%Roche Holdings AG Genusscheine 3.8% HDFC Bank Ltd. ADR 2.3%Estée Lauder Companies Inc., Class A 3.8% Danaher Corp. 2.2%InterContinenta l Hotels Group Plc. 3.7% Uni lever N.V. 2.2%JPMorgan Chase & Co. 3.5% Fortive Corp. 2.2%Anheuser-Busch InBev S.A./N.V. 3.2% Naspers Ltd. 2.2%Microsoft Corp. 3.1% Enbridge Inc. 2.2%EOG Resources Inc. 2.9% Occidental Petroleum Corp. 1.9%TJX Companies Inc. 2.9% 75.2%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 13.65$ 11.63$ 12.23$ 10.27$ 17.03$ 14.59$ 15.43$ 13.04$ 11.64$ Net assets attributable to contractholders ($ '000) 6,682$ 2,575$ 1,549$ 33$ 18,272$ 12,781$ 20,034$ 6,996$ 4,152$ Net Income (loss ) ($ '000) 642$ (54)$ 62$ -$ 2,266$ (1,270)$ 1,576$ 596$ 698$ Premium depos i ts ($ '000) 3,714$ 1,745$ 1,547$ 33$ 6,289$ 4,686$ 13,796$ 3,442$ 2,835$ Withdrawals ($ '000) 249$ 664$ 94$ -$ 3,064$ 10,669$ 2,334$ 1,194$ 416$ Number of units outs tanding 489,406 221,425 126,693 3,241 1,072,795 876,200 1,298,151 536,274 356,803




RBC Global Dividend Growth GIF (continued)






year 2013 not



in 2014.




Cash -$ -$ Net income (loss ) attributable to contractholders 767,735$ (363,911)$ Investments in underlying fund at fa i r va lue 6,653,103 5,555,582 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net (ga ins ) losses on investments (707,006) 418,019 Accounts receivable - contractholders - - Change in other assets 1,253 1,090 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 3,054 (1,424) Due from RBC Li fe Insurance Company 2,751 3,971 Purchases of investments (1,715,978) (1,664,713) Other 539 572 Proceeds from sa les of investments 1,325,463 1,316,526

6,656,393 5,560,125 Cash provided by (used in) oeprating activi ties (325,479) (294,413) Liabilities Financing activities

Bank indebtedness 201 430 Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 1,790,741 1,761,565

Accrued expenses 34,122 31,068 Redemption of uni ts (1,465,033) (1,466,173) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 325,708 295,392 Accounts payable - purchase of investments - - Increase in cash 229 979 Other - - Bank indebtedness at beginning of period (430) (1,409)

34,323 31,498 Bank indebtedness at end of period (201)$ (430)$ Net assets attributable to contractholders 6,622,070$ 5,528,627$





Distribution from underlying fund 255,211$ 237,446$ Real i zed ga in (loss) on sa le of investments 93,545 (2,022) Change in unrea l i zed ga in/loss of investments 613,461 (415,997) Sales and redemption of units

962,217 (180,573) Invest SeriesExpenses Opening ba lance as at January 1s t 44,255 22,368



Net income (loss) attributable to contractholders 767,735$ (363,911)$ Redemptions during the period (120,162) (132,652) Net income (loss ) attributable to contractholders per uni t Clos ing balance as at December 31st 484,322 491,734

Invest Series 1.48$ (0.26)$ Series 1 1.43 (0.71)


Premium depos i ts 1,790,741 1,761,565 Level 1 6,653,103$ 5,555,582$ Net income (loss ) attributable to contractholders 767,735 (363,911)

8,087,103 6,994,800 Schedule of investment in underlying fundWithdrawals 1,465,033 1,466,173 RBC O'Shaughnessy International Equity Fund, Series O







RBC O'Shaughnessy International Equity GIF


Novo Nordisk A/S 2.1% Neste OYJ 1.1%Legal & Genera l Group Plc. 1.9% GN Store Nord A/S 1.1%Engie 1.8% Cash & Cash Equiva lents 1.1%Fiat Chrys ler Automobi les N.V. 1.7% Energias de Portuga l S.A. 1.1%Zurich Insurance Group AG 1.6% Danske Bank A/S 1.1%Telenor ASA 1.5% Schouw & Co. 1.0%Harel Insurance Investments & Financia l Services Ltd. 1.4% Saras S.p.A. 1.0%SSE Plc. 1.4% Crown Ltd. 1.0%Aurizon Holdings Ltd. 1.4% Nordbanken Holding AB 1.0%Tatsuta Electric Wire and Cable Co. Ltd. 1.2% TOKAI Holdings Corp. 1.0%Sanofi 1.2% Derichebourg 1.0%Bezeq Israel i Telecommunication Corporation Ltd. 1.2% Arakawa Chemica l Industries Ltd. 1.0%Skandinaviska Enski lda Banken 1.1% 32.0%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 12.67$ 11.08$ 11.78$ 10.15$ 11.67$ 10.25$ 10.95$ 9.49$ 9.24$ Net assets attributable to contractholders ($ '000) 968$ 490$ 263$ 31$ 5,654$ 5,039$ 5,334$ 4,282$ 3,030$ Net Income (loss ) ($ '000) 88$ (12)$ 14$ -$ 680$ (352)$ 629$ (15)$ 779$ Premium depos i ts ($ '000) 514$ 356$ 220$ 31$ 1,276$ 1,406$ 1,700$ 2,759$ 822$ Withdrawals ($ '000) 124$ 118$ 1$ -$ 1,341$ 1,348$ 1,278$ 1,492$ 687$ Number of uni ts outstanding 76,307 44,255 22,368 3,017 484,322 491,734 487,165 451,234 327,899




RBC O'Shaughnessy International Equity GIF (continued)






year 2013 not



in 2014.




Cash 448$ 400$ Net gain (loss ) a ttributable to contractholders 9,243$ (7,209)$ Investments in underlying fund at fa i r va lue 472,604 392,888 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net ga ins on investments (18,652) (4,394) Accounts receivable - contractholders - - Change in other assets 454 (522) Accounts receivable - sa le of investments - - Change in other l iabi l i ties 3,643 1,852 Due from RBC Li fe Insurance Company 4,048 4,930 Purchases of investments (131,983) (52,483) Other 2,388 1,960 Proceeds from sa les of investments 70,919 180,271

479,488 400,178 Cas h provided by (us ed in) oeprating activi ties (66,376) 117,515 Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from i ssue of uni ts 97,675 25,045

Accrued expenses 25,520 21,877 Redemption of units (31,251) (142,460) Accounts payable - contractholders - - Cas h provided by (us ed in) financing activi ties 66,424 (117,415) Accounts payable - purchas e of investments - - Increase in cas h 48 100 Other - - Cas h at beginning of period 400 300

25,520 21,877 Cash at end of period 448$ 400$ Net assets attributable to contractholders 453,968$ 378,301$

Net assets attributable to contractholders per unit 10.40$ 10.13$ For the year ended December 31, 2017 2016Expenses

Annual Management fee and Other admin exps 1.97% 1.97%Annual Insurance Fee (Limit) 0.45 (0.95) % 0.45 (0.95) %

For the year ended December 31, 2017 2016Income Sales and redemption of units

Distribution from underlying fund 1,644$ 47$ Real ized ga in on sa le of inves tments 13,750 4,452 Opening balance as at January 1s t 37,339 48,953 Change in unrea l i zed gain/los s of investments 4,902 (58) Purchas es during the period 9,286 2,543

20,296 4,441 Redemptions during the period (2,973) (14,157) Expenses Clos ing ba lance as at December 31s t 43,652 37,339

Management fees 11,686 13,117 Ins urance fees 2,063 2,182 Other adminis trative expenses 52,911 54,405 As at Dec 31, 2017 Dec 31, 2016

66,660 69,704 Investment in underlying fund at fair valueLess : Expenses waived 55,607 58,054 Level 1 472,604$ 392,888$ Expenses a fter waiver 11,053 11,650

Net gain (loss) attributable to contractholders 9,243$ (7,209)$ Schedule of investment in underlying fundNet ga in (loss ) attributable to unitholders per unit 0.23$ (0.16)$ RBC BlueBay Global Convertible Bond Fund, Series O

Number of uni ts 37,728 32,033 Cost 469,391$ 394,577$ Percentage held in underlying fund 0.0435% 0.0361%Fair va lue 472,604$ 392,888$

For the year ended December 31, 2017 2016Net assets , beginning of the period 378,301$ 502,925$

Premium depos i ts 97,675 25,045 Net gain (loss ) attributable to contractholders 9,243 (7,209)

485,219 520,761 Withdrawals 31,251 142,460

Net assets, end of the period 453,968$ 378,301$ Number of uni ts outstanding 43,652 37,339





RBC BlueBay Global Convertible Bond GIF


Cash & Cash Equiva lents 7.2% Toray Industries Inc., Convertible JPY 0.000% Aug 31 2021 1.2%DISH Network Corp., Convertible 3.375% Aug 15 2026 3.4% Cahaya Ca pita l Ltd., Convertible USD 0.000% Sep 18 2021 1.2%Microchip Technology Inc., Convertible 1.625% Feb 15 2027 1.9% Sony Corp., Convertible JPY 0.000% Sep 30 2022 1.1%Citrix Sys tems Inc., Convertible 0.500% Apr 15 2019 1.8% Bagan Capi ta l Ltd., Convertible USD 0.000% Sep 23 2021 1.1%Tes la Inc., Convertible 1.250% Jan 3 2021 1.5% Yama da Denki Co. Ltd., Convertible JPY 0.000% Jun 28 2019 1.1%Deutsche Wohnen SE, Convertible EUR 0.325% Jul 26 2024 1.5% NXP Semiconductors N.V., Convertible USD 1.000% Dec 1 2019 1.1%Ctrip.com International Ltd., Convertible USD 1.990% Jul 1 2025 1.4% Harvest International Co., Convertible HKD 0.000% Nov 21 2022 1.1%ON Semiconductor Corp., Convertible 1.625% Oct 15 2023 1.4% China Rai lway Construction Corp. Ltd., Convertible CNY 1.500% Dec 21 2021 1.1%Yahoo! Inc., Convertible 0.000% Dec 1 2018 1.4% BP Capi ta l Markets Plc., Convertible GBP 1.000% Apr 28 2023 1.0%Fresenius SE & Co. KGaA, Convertible EUR 0.000% Jan 31 2024 1.4% AYC Finance Ltd., Convertible USD 0.500% May 2 2019 1.0%Kansai Pa int Co. Ltd., Convertible JPY 0.000% Jun 17 2022 1.3% Kawasaki Ki sen Ka isha Ltd., Convertible JPY 0.000% Sep 26 2018 1.0%Mitsubishi Chemica l Holdings Corp., Convertible JPY 0.000% Ma r 29 2024 1.3% CRRC Corp Ltd., Convertible USD 0.000% Feb 5 2021 1.0%Terumo Corp., Convertible JPY 0.000% Dec 6 2021 1.3% 39.8%


For the years 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 10.40$ 10.13$ 10.27$ 10.08$ Net assets attributable to contractholders ($ '000) 454$ 378$ 503$ 40$ Net ga in (loss ) ($ '000) 9$ (7)$ (9)$ -$ Premium depos i ts ($ '000) 98$ 25$ 474$ 40$ Withdrawals ($ '000) 31$ 142$ 2$ -$ Number of uni ts outs tanding 43,652 37,339 48,953 3,966



RBC BlueBay Global Convertible Bond GIF




The comparative data for the year 2013

not available as Invest

Series was introduced in

November 2014.

Invest Series




Cash 85,273$ 283,395$ Net income attributable to contractholders 2,947,880$ 1,456,661$ Investments in underlying fund at fa i r va lue 64,108,366 19,739,306 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (2,532,957) (1,323,729) Accounts receivable - contractholders - 2,459 Change in other assets 982 2,671 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 82,895 (4,593) Due from RBC Li fe Insurance Company 1,231 2,159 Purchases of investments (48,518,245) (10,878,275) Other 886 940 Proceeds from sa les of investments 6,682,142 2,970,183



Accrued expenses 128,344 45,449 Redemption of uni ts (8,957,420) (3,501,910) Accounts payable - contractholders 2,000 - Cash provided by (used in) financing activi ties 41,139,181 7,906,862 Accounts payable - purchase of investments - - Increase (decrease) in cash (198,122) 129,780 Other - - Cash at beginning of period 283,395 153,615


Net assets attributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 11.79$ 10.92$ ExpensesSeries 1 11.72 10.88 Annua l Management fee and Other administration expensesSeries 2 11.68 10.86 Invest Series 1.16% 1.97%

Series 1 1.10% 2.07%Series 2 0.97% 1.94%

Annua l Insurance Fee (Limit)For the year ended December 31, 2017 2016 Invest Series 0.30 (0.80) % 0.30 (0.80) %Income Series 1 0.40 (0.80) % 0.40 (0.80) %

Dis tribution from underlying fund 1,436,977$ 523,982$ Series 2 0.70 (0.80) % 0.70 (1.20) %Real i zed ga in (loss ) on sa le of investments 855,798 60,006 Change in unreal ized ga in/loss of investments 1,677,159 1,263,723 Sales and redemption of units

3,969,934 1,847,711 Invest SeriesExpenses Opening ba lance as a t January 1s t 543,674 592,930

Management fees 703,932 250,939 Purchases during the period 663,150 188,458 Insurance fees 204,178 65,594 Redemptions during the period (102,822) (237,714) Other adminis trative expenses 142,066 86,782 Clos ing ba lance as at December 31st 1,104,002 543,674

1,050,176 403,315 Series 1Less : Expenses waived 28,122 12,265 Opening ba lance as a t January 1s t 982,861 351,266 Expenses after waiver 1,022,054 391,050 Purchases during the period 2,070,936 649,690

Net income attributable to contractholders 2,947,880$ 1,456,661$ Redemptions during the period (472,077) (18,095) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 2,581,720 982,861

Invest Series 0.86$ 0.91$ Series 2Series 1 0.83 1.01 Opening ba lance as a t January 1s t 308,827 117,266 Series 2 0.74 1.12 Purchases during the period 1,686,723 268,100

Redemptions during the period (215,320) (76,539) Clos ing ba lance as at December 31st 1,780,230 308,827



73,024,832 23,484,720 Schedule of investment in underlying fundWithdrawals 8,959,420 3,501,910 RBC Balanced Growth and Income Fund, Series O


Invest Series 1,104,002 543,674 Percentage held in underlying fund 4.1435% 1.8258%Series 1 2,581,720 982,861 Fa ir va lue 64,108,366$ 19,739,306$ Series 2 1,780,230 308,827





RBC Balanced Growth and Income GIF


Phi l l ips , Hager & North Tota l Return Bond Fund 12.8% Apple Inc. 0.9%RBC Emerging Markets Dividend Fund 9.8% Brookfield Ass et Management Inc., Clas s A 0.8%RBC Global Corporate Bond Fund 8.7% Microsoft Corp. 0.7%BlueBay Global Monthly Income Bond Fund 6.7% Canadian Imperia l Bank of Commerce 0.7%RBC Global High Yield Bond Fund 6.7% Suncor Energy Inc. 0.6%RBC European Dividend Fund 6.4% Trans Canada Corp. 0.6%Cash & Cas h Equivalents 1.8% Canadian Natura l Res ources Ltd. 0.6%Roya l Bank of Canada 1.7% Canadian Paci fic Ra i lway Ltd. 0.6%Enbridge Inc. 1.5% Bank of America Corp. 0.6%Toronto-Dominion Bank 1.2% Enbridge Income Fund Holdings Inc. 0.6%Manul i fe Financia l Corporation 1.1% Bank of Montreal 0.6%Bank of Nova Scotia 1.0% BCE Inc. 0.5%Sun Li fe Financia l Inc. 0.9% 68.1%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net As set Value attributable to contractholders 11.79$ 10.92$ 10.01$ 9.96$ 11.72$ 10.88$ 9.99$ Net as sets attributable to contractholders ($ '000) 13,020$ 5,939$ 5,935$ 401$ 30,259$ 10,691$ 3,511$ Net Income (los s) ($ '000) 682$ 545$ (206)$ 2$ 1,480$ 655$ (6)$ Premium depos i ts ($ '000) 7,572$ 1,970$ 7,081$ 399$ 23,411$ 6,715$ 3,517$ Withdrawals ($ '000) 1,172$ 2,511$ 1,413$ -$ 5,322$ 190$ -$ Number of units outstanding 1,104,002 543,674 585,773 40,253 2,581,720 982,861 351,266

Management expens e ratio 1 2.21% 2.41% 2.42% 2.57% 2.41% 2.60% 2.76%Management expens e before waiver 2.36% 2.50% 3.17% 77.68% 2.55% 2.70% 2.90%

Portfol io turnover rate of the underlying fund 2 31.11% 50.12% 68.27% 78.13% 31.11% 50.12% 68.27%

Net As set Value attributable to contractholders 11.68$ 10.86$ 9.99$ Net as sets attributable to contractholders ($ '000) 20,786$ 3,353$ 1,171$ Net Income ($ '000) 786$ 257$ 7$ Premium depos i ts ($ '000) 19,111$ 2,726$ 1,164$ Withdrawals ($ '000) 2,465$ 801$ -$ Number of units outstanding 1,780,230 308,827 117,266

Management expens e ratio 1 2.61% 2.80% 2.93%Management expens e before waiver 2.73% 2.90% 3.10%

Portfol io turnover rate of the underlying fund 2 31.11% 50.12% 68.27%


RBC Balanced Growth and Income GIF (continued)


Series 2




year 2013 not

ava i lable as Inves t


in 2014.

The comparative data for the year 2014 and prior

not avai lable as Series 1 was introduced in 2015.


not ava i lable as Series 2 was introduced in 2015.




Cash 30$ -$ Net income (loss ) attributable to contractholders 92,557$ (25,717)$ Investments in underlying fund at fa i r va lue 1,733,247 349,252 Add (deduct) to convert net income toOther assets a cash bas i s

Accrued income dis tribution from underlying funds - - Net (gains ) losses on investments (91,147) 4,535 Accounts receivable - contractholders - - Change in other assets 819 252 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 1,385 (4,531) Due from RBC Li fe Insurance Company 4,212 5,021 Purchases of investments (1,391,648) (291,942) Other 583 593 Proceeds from sa les of investments 98,800 968,363

1,738,072 354,866 Cas h provided by (us ed) in oeprating activi ties (1,289,234) 650,960 Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from i ssue of uni ts 1,358,972 319,706

Accrued expenses 17,419 16,034 Redemption of units (69,708) (978,688) Accounts payable - contractholders - - Cas h provided by (us ed in) financing activi ties 1,289,264 (658,982) Accounts payable - purchas e of investments - - Increase (decrease) in cash 30 (8,022) Other - - Cas h at beginning of period - 8,022

17,419 16,034 Cash at end of period 30$ -$ Net assets attributable to contractholders 1,720,653$ 338,832$

Net assets attributable to contractholders per unit 14.52$ 11.74$ For the year ended December 31, 2017 2016Expenses

Annual Management fee and Other admin exps 2.07% 2.07%Annual Insurance Fee (Limit) 0.45 (0.95) % 0.45 (0.95) %

For the year ended December 31, 2017 2016Income Sales and redemption of units

Distribution from underlying fund 14,641$ 6,167$ Real ized ga in on sa le of inves tments 35,631 10,964 Opening balance as at January 1s t 28,872 84,121 Change in unrea l i zed gain/los s of investments 55,516 (15,499) Purchas es during the period 94,683 28,086

105,788 1,632 Redemptions during the period (5,048) (83,335) Expenses Clos ing ba lance as at December 31s t 118,507 28,872

Management fees 12,767 24,670 Ins urance fees 2,363 4,885 Other adminis trative expenses 56,795 54,513 As at Dec 31, 2017 Dec 31, 2016

71,925 84,068 Investment in underlying fund at fair valueLess : Expenses waived 58,694 56,719 Level 1 1,733,247$ 349,252$ Expenses a fter waiver 13,231 27,349

Net income (loss) attributable to contractholders 92,557$ (25,717)$ Schedule of investment in underlying fundNet income (los s ) a ttributable to unitholders per uni 2.47$ (0.29)$ RBC Global Equity Fund, Series O

Number of uni ts 109,948 26,917 Cost 1,673,556$ 345,077$ Percentage held in underlying fund 0.1880% 0.0436%Fair va lue 1,733,247$ 349,252$

For the year ended December 31, 2017 2016Net assets , beginning of the period 338,832$ 1,023,531$

Premium depos i ts 1,358,972 319,706 Net income (loss ) a ttributable to contractholders 92,557 (25,717)

1,790,361 1,317,520 Withdrawals 69,708 978,688

Net assets, end of the period 1,720,653$ 338,832$ Number of uni ts outstanding 118,507 28,872





RBC Global Equity GIF


UnitedHealth Group Incorporated 3.9% Naspers Ltd. 2.7%Estée Lauder Companies Inc., Class A 3.9% Anheuser-Busch InBev S.A./N.V. 2.6%EOG Resources Inc. 3.8% Alphabet Inc., Class A 2.6%Nidec Corp. 3.5% InterContinenta l Hotels Group Plc. 2.6%SVB Financia l Group 3.2% Microsoft Corp. 2.6%Ta iwan Semiconductor Manufacturing Co. Ltd. ADR 3.1% AIA Group Ltd. 2.5%TJX Companies Inc. 3.1% Gartner Inc. 2.4%Roche Holdings AG Genusscheine 3.1% Cash & Cash Equivalents 2.3%Fortive Corp. 3.0% Firs t Republ ic Bank 2.3%Danaher Corp. 3.0% Activis ion Bl izzard Inc. 2.2%Intui t Inc. 3.0% Uni lever N.V. 2.2%Amazon.com, Inc. 2.8% Paddy Power Betfa i r Plc. 2.1%Deutsche Post AG 2.7% 71.2%


For the years 2017 2016 2015 2014 2013

Net Asset Value attributable to contractholders 14.52$ 11.74$ 12.17$ 10.24$ Net assets a ttributable to contractholders ($ '000) 1,721$ 339$ 1,024$ 16$ Net Income (loss ) ($ '000) 93$ (26)$ 34$ -$ Premium depos i ts ($ '000) 1,359$ 320$ 990$ 16$ Withdrawals ($ '000) 70$ 979$ 17$ -$ Number of uni ts outstanding 118,507 28,872 84,121 1,603






RBC Global Equity GIF

Invest Series




November 2014.




Cash 3,230$ 120$ Net income attributable to contractholders 228,625$ 49,755$ Investments in underlying fund at fa i r va lue 2,619,388 509,563 Add (deduct) to convert net income toOther as sets a cash bas is

Accrued income dis tribution from underlying funds - - Net ga ins on investments (230,198) (48,779) Accounts receivable - contractholders 10,000 - Change in other as sets 397 (317) Accounts receivable - sa le of investments - - Change in other l iabi l i ties 7,894 1,369 Due from RBC Li fe Insurance Company 4,006 4,831 Purchas es of investments (2,123,457) (327,014) Other 2,388 1,960 Proceeds from s ales of investments 243,830 213,252

2,639,012 516,474 Cas h provided by (us ed in) oeprating activi ties (1,872,909) (111,734) Liabilities Financing activities

Bank indebtedness - - Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from is sue of uni ts 2,099,190 304,212

Accrued expenses 28,815 20,921 Redemption of uni ts (223,171) (194,364) Accounts payable - contractholders - - Cas h provided by (us ed in) financing activi ties 1,876,019 109,848 Accounts payable - purchase of inves tments - - Increas e (decrease) in cas h 3,110 (1,886) Other - - Cas h at beginning of period 120 2,006

28,815 20,921 Cash at end of period 3,230$ 120$ Net assets attributable to contractholders 2,610,197$ 495,553$

Net as sets attributable to contractholders per uni t 12.93$ 10.24$ For the year ended December 31, 2017 2016Expenses

Annual Management fee and Other admin exps 2.20% 2.20%Annual Ins urance Fee (Limit) 0.45 (0.95) % 0.45 (0.95) %

For the year ended December 31, 2017 2016 Sales and redemption of unitsIncome

Dis tribution from underlying fund 33,760$ 14,742$ Opening ba lance as at January 1s t 48,390 36,184 Real i zed ga in (los s) on s ale of inves tments 63,225 (6,992) Purchas es during the period 171,874 33,086 Change in unrea l i zed ga in/loss of investments 166,973 55,771 Redemptions during the period (18,319) (20,880)

263,958 63,521 Clos ing ba lance as at December 31st 201,945 48,390 Expenses

Management fees 26,178 14,961 Insurance fees 6,001 2,341 As at Dec 31, 2017 Dec 31, 2016Other administrative expens es 56,564 53,786 Investment in underlying fund at fair value

88,743 71,088 Level 1 2,619,388$ 509,563$ Les s : Expens es waived 53,410 57,322 Expens es after waiver 35,333 13,766 Schedule of investment in underlying fund

Net income attributable to contractholders 228,625$ 49,755$ RBC Emerging Markets Dividend Fund, Series ONet income attributable to uni tholders per uni t 2.30$ 1.01$ Number of uni ts 181,891 44,084

Cost 2,429,943$ 487,091$ Percentage held in underlying fund 0.3214% 0.0993%Fair value 2,619,388$ 509,563$

For the year ended December 31, 2017 2016Net ass ets , beginning of the period 495,553$ 335,950$

Premium depos i ts 2,109,190 304,212 Net income attributable to contractholders 228,625 49,755

2,833,368 689,917 Withdrawals 223,171 194,364

Net assets, end of the period 2,610,197$ 495,553$ Number of uni ts outs tanding 201,945 48,390





RBC Emerging Markets Dividend GIF


Samsung Electronics Co. Ltd. 5.3% POSCO 1.5%Al ibaba Group Holding Ltd. ADR 3.8% Banco do Bras i l S.A. 1.5%China Construction Bank Corp. 3.7% The Fos chini Group Ltd. 1.4%Taiwan Semiconductor Manufacturing Co. Ltd. 3.4% Super Group Ltd. 1.4%Industria l & Commercia l Bank of China 2.5% PT Bank Tabungan Negara Persero Tbk 1.4%Sberbank of Russ ia ADR 2.4% Lukoi l PJSC ADR 1.3%Baidu.com Inc. ADR 2.1% PT Bank Negara Indones ia Persero Tbk 1.3%Ping An Insurance Group Company of China Ltd. 2.0% Itau Unibanco Holding S.A. Preference 1.2%Standard Bank Group Ltd. 1.9% SK Holdings Co. Ltd. 1.2%Hon Hai Precis ion Industry Co. Ltd. 1.8% Hynix Semiconductor Inc. 1.2%LG Chem Ltd. 1.7% CNOOC Ltd. 1.2%Neteas e.com ADR 1.6% GHCL Ltd. 1.2%Vale S.A. ADR 1.5% 49.5%


For the years 2017 2016 2015 2014 2013

Invest SeriesNet As set Va lue attributable to contractholders 12.93$ 10.24$ 9.28$ 9.83$ Net as sets attributable to contractholders ($ '000) 2,610$ 496$ 336$ 24$ Net Income (loss ) ($ '000) 229$ 50$ (31)$ -$ Premium depos i ts ($ '000) 2,109$ 304$ 347$ 24$ Withdrawals ($ '000) 223$ 194$ 4$ -$ Number of uni ts outstanding 201,945 48,390 36,184 2,445

Management expens e ratio 1 2.98% 2.95% 3.01% 2.99%Management expens e before waiver 7.48% 8.18% 36.32% 592.92%





RBC Emerging Markets Dividend GIF




November 2014.




Cash 127,965$ 18,070$ Net income attributable to contractholders 347,504$ 34,142$ Investments in underlying fund at fa i r va lue 18,061,261 4,412,295 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income dis tribution from underlying funds - - Net (ga ins ) losses on investments (177,141) 2,121 Accounts receivable - contractholders 10,000 7,994 Change in other assets 1,942 6,029 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 25,014 13,402 Due from RBC Li fe Insurance Company 306 2,176 Purchases of investments (16,794,061) (4,773,095) Other 895 967 Proceeds from sa les of investments 3,322,236 485,290



Accrued expenses 44,962 19,948 Redemption of uni ts (3,673,458) (259,171) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 13,384,401 4,250,885 Accounts payable - purchase of investments - - Increase in cash 109,895 18,774 Other - - Cash (Bank indebtedness ) at beginning of period 18,070 (704)


Net assets attributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 10.94$ 10.49$ ExpensesSeries 1 10.89 10.46 Annua l Management fee and Other administration expensesSeries 2 10.87 10.45 Invest Series 0.75% 1.87%

Series 1 0.83% 1.84%Series 2 0.79% 1.81%

Annua l Insurance Fee (Limit)For the year ended December 31, 2017 2016 Invest Series 0.20 (0.70) % 0.20 (0.70) %Income Series 1 0.40 (0.70) % 0.40 (0.70) %

Dis tribution from underlying fund 379,918$ 80,066$ Series 2 0.50 (0.80) % 0.50 (0.80) %Real i zed ga in on sa le of investments 36,262 11,777 Change in unreal ized ga in/loss of investments 140,879 (13,898) Sales and redemption of units

557,059 77,945 Invest SeriesExpenses Opening ba lance as a t January 1s t 198,044 500


222,326 91,638 Series 1Less : Expenses waived 12,771 47,835 Opening ba lance as a t January 1s t 40,872 798 Expenses after waiver 209,555 43,803 Purchases during the period 742,269 40,534

Net income attributable to contractholders 347,504$ 34,142$ Redemptions during the period (18,780) (460) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 764,361 40,872

Invest Series 0.49$ 0.04$ Series 2Series 1 0.42 0.22 Opening ba lance as a t January 1s t 183,365 11,458 Series 2 0.35 0.34 Purchases during the period 523,227 179,445


For the year ended December 31, 2017 2016 As at Dec 31, 2017 Dec 31, 2016Net assets , beginning of the period 4,421,554$ 128,533$ Investment in underlying fund at fair value


21,828,923 4,680,725 Schedule of investment in underlying fundWithdrawals 3,673,458 259,171 RBC Conservative Growth & Income Fund, Series O

Net assets, end of the period 18,155,465$ 4,421,554$ Number of uni ts 1,776,774 447,921 Number of uni ts outs tanding Cost 17,936,253$ 4,428,166$

Invest Series 346,684 198,044 Percentage held in underlying fund 11.6685% 5.3798%Series 1 764,361 40,872 Fa ir va lue 18,061,261$ 4,412,295$ Series 2 555,772 183,365





RBC Conservative Growth and Income GIF


RBC Bond Fund 26.7%Phi l l ips , Hager & North Tota l Return Bond Fund 26.1%RBC Canadian Equity Income Fund 9.9%RBC Global Corporate Bond Fund 9.2%RBC Global High Yield Bond Fund 7.1%BlueBay Global Monthly Income Bond Fund 7.1%RBC U.S. Dividend Fund 7.0%RBC Emerging Markets Dividend Fund 3.5%RBC European Dividend Fund 3.4%

100.0%


For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 10.94$ 10.49$ 10.08$ 10.89$ 10.46$ 10.08$ Net assets attributable to contractholders ($ '000) 3,792$ 2,077$ 5$ 8,323$ 428$ 8$ Net Income ($ '000) 95$ 26$ -$ 110$ 3$ -$ Premium depos i ts ($ '000) 3,466$ 2,246$ 5$ 7,989$ 419$ 8$ Withdrawals ($ '000) 1,846$ 176$ -$ 203$ 5$ -$ Number of uni ts outstanding 346,684 198,044 500 764,361 40,872 798

Management expense ratio 1 2.02% 2.20% 2.33% 2.22% 2.46% 2.53%Management expense before waiver 2.23% 4.19% 144.31% 2.36% 4.98% 118.77%

Portfol io turnover rate of the underlying fund 2 5.14% 27.72% 51.34% 5.14% 27.72% 51.34%

Net Asset Va lue attributable to contractholders 10.87$ 10.45$ 10.08$ Net assets attributable to contractholders ($ '000) 6,040$ 1,917$ 116$ Net Income ($ '000) 142$ 5$ -$ Premium depos i ts ($ '000) 5,605$ 1,853$ 115Withdrawals ($ '000) 1,624$ 78$ -$ Number of uni ts outstanding 555,772 183,365 11,458

Management expense ratio 1 2.31% 2.61% 2.69%Management expense before waiver 2.54% 6.11% 52.98%

Portfol io turnover rate of the underlying fund 2 5.14% 27.72% 51.34%




RBC Conservative Growth and Income GIF (continued)



The comparative data for the year 2014 and prior not ava i lable as Invest

Series was introduced in 2015.

Series 2







Ca sh 124,856$ -$ Net income attributable to contractholders 10,006,193$ 5,631,386$ Investments in underlying fund at fa i r va lue 225,974,313 200,526,148 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (9,998,492) (3,661,276) Accounts receivable - contractholders - 36,651 Change in other a ssets 14,889 (1,285) Accounts receivable - sa le of investments - - Change in other l iabi l i ties 18,577 76,747 Due from RBC Li fe Insurance Compa ny 213 15,049 Purchases of investments (53,923,708) (62,314,818) Other 498 551 Proceeds from sa les of investments 38,474,035 19,445,145


Bank indebtedness - 241,288 Di stributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 73,632,585 72,266,739

Accrued expenses 452,581 434,004 Redemption of uni ts (57,857,935) (31,737,866) Accounts payable - contra ctholders 156,185 5,960 Cash provided by (used in) fina ncing activi ties 15,774,650 40,528,873 Accounts payable - purchase of investments - - Increase (decrease) in cash 366,144 (295,228) Other - - Cash (Bank indebtedness ) at beginning of period (241,288) 53,940


Net assets attributable to contractholders per uni t For the year ended December 31, 2017 2016Invest Series 11.47$ 10.88$ ExpensesSeries 1 14.57 13.88 Annual Management fee and Other adminis tration expensesSeries 2 14.40 13.74 Invest Series 1.13% 1.86%

Series 1 1.02% 2.10%Series 2 1.05% 2.20%


Dis tribution from underlying fund 5,431,560$ 6,766,754$ Series 2 0.50 (0.80) % 0.50 (0.80) %Real ized ga in on sa le of investments 2,855,841 3,808,475 Cha nge in unreal i zed ga in/loss of investments 7,142,651 (147,199) Sales and redemption of units

15,430,052 10,428,030 Invest SeriesExpenses Opening ba lance as at Janua ry 1s t 975,888 361,018

Management fees 4,106,147 3,740,435 Purchases during the period 1,626,318 956,486 Insurance fees 1,011,535 860,964 Redemptions during the period (467,805) (341,616) Other adminis trative expenses 419,786 321,285 Clos ing ba lance as at December 31st 2,134,401 975,888

5,537,468 4,922,684 Series 1Less : Expenses waived 113,609 126,040 Opening ba lance as at Janua ry 1s t 5,324,449 4,394,837 Expenses after waiver 5,423,859 4,796,644 Purchases during the period 1,616,476 1,821,472

Net income attributable to contractholders 10,006,193$ 5,631,386$ Redemptions during the period (1,923,345) (891,860) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 5,017,580 5,324,449

Invest Series 0.63$ 0.50$ Series 2 Series 1 0.68 0.44 Opening ba lance as at Janua ry 1s t 8,401,673 6,808,929 Series 2 0.65 0.41 Purchases during the period 2,294,206 2,776,676

Redemptions during the period (1,809,803) (1,183,932) Clos ing ba lance as at December 31st 8,886,076 8,401,673


Premium depos i ts 73,595,934 72,303,390 Level 1 225,974,313$ 200,526,148$ Net income attributable to contra ctholders 10,006,193 5,631,386

283,499,274 231,631,673 Schedule of investment in underlying fundWithdrawals 58,008,160 31,734,526 RBC Select Conservative Portfolio, Series O


Invest Series 2,134,401 975,888 Percentage held in underlying fund 0.8341% 0.8725%Series 1 5,017,580 5,324,449 Fa i r va lue 225,974,313$ 200,526,148$ Series 2 8,886,076 8,401,673





RBC Select Conservative GIP


RBC Bond Fund 15.3% BlueBay Global Investment Grade Corporate Bond Fund (Canada) 2.4%Province of Ontario 3.450% Jun 2 2045 3.1% Cash & Cash Equiva lents 3.5%Province of Ontario 3.500% Jun 2 2043 2.4% Deutsche Bank AG USD 2.500% Feb 13 2019 2.8%Province of Ontario 2.900% Dec 2 2046 2.3% Genera l Motors Financia l Co. Inc. 3.100% Jan 15 2019 2.3%Province of Ontario 2.600% Jun 2 2025 2.1% Rogers Communications Inc. 2.800% Mar 13 2019 1.9%Government of Canada 1.000% Jun 1 2027 2.1% Ford Credit Canada Ltd. 3.140% Jun 14 2019 1.7%

Phi l l ips , Hager & North Tota l Return Bond Fund 8.8% RBC QUBE U.S. Equi ty Fund 2.3%Government of Canada 0.750% Sep 1 2020 5.1% Apple Inc. 4.1%Canada Hous ing Trust No. 1 1.750% Jun 15 2022 3.9% Citigroup Inc. 3.6%Canada Hous ing Trust No. 1 2.400% Dec 15 2022 3.8% Phi l ip Morris International Inc. 3.0%Province of Ontario 6.200% Jun 2 2031 2.7% Lockheed Martin Corporation 2.8%Province of Ontario 3.500% Jun 2 2043 2.6% Facebook Inc., Class A 2.8%

RBC Canadian Short-Term Income Fund 8.0% RBC U.S. Dividend Fund 2.3%Government of Canada 0.500% Mar 1 2022 3.3% Apple Inc. 4.40%Government of Canada 0.500% Nov 1 2018 3.2% Microsoft Corp. 3.80%Province of Ontario 2.100% Sep 8 2018 3.0% JPMorgan Chase & Co. 3.40%Canada Hous ing Trust No. 1 3.350% Dec 15 2020 3.0% Bank of America Corp. 3.10%Province of Ontario 2.100% Sep 8 2019 2.9% Johnson & Johnson 2.80%

RBC European Equi ty Fund 7.7% RBC As ia Paci fic ex-Japan Equi ty Fund 2.2%Novo Nordisk A/S 5.3% Tencent Holdings Ltd. 5.9%Roya l Dutch Shel l Plc., A Shares 5.0% Ping An Ins urance Group Company of China Ltd. 4.3%Uni lever Plc. 4.7% CSL Ltd. 4.3%Relx N.V. 4.3% Sams ung Electronics Co. Ltd. 4.2%Sampo OYJ 3.5% Al ibaba Group Holding Ltd. ADR 3.6%

RBC Globa l Corporate Bond Fund 7.3% BlueBay Global Sovereign Bond Fund (Canada) 1.7%Cash & Cash Equiva lents 3.3% Cash & Cash Equiva lents 13.5%iShares iBoxx $ Inves tment Grade Corporate Bond Fund 3.2% Bundesrepubl ik Deutschland EUR 0.250% Feb 15 2027 7.7%RBC Emerging Markets Bond Fund USD 2.1% France O.A.T. EUR 1.000% May 25 2027 5.0%BlueBay Emerging Markets Corporate Bond Fund 2.0% Austra l ia Government AUD 3.250% Oct 21 2018 4.8%United States 10-Year Note Future, March 2018 1.1% United States Treas ury 2.875% Nov 15 2046 4.8%

RBC Globa l Bond Fund 6.6% Phi l l ips , Hager & North Canadian Equity Underlying Fund I I 1.6%United States Treasury 1.500% Nov 30 2019 6.4% Toronto-Dominion Bank 7.4%Cash & Cash Equiva lents 4.1% Royal Bank of Canada 6.9%United States Treasury 2.375% May 15 2027 3.7% Enbridge Inc. 5.2%United States Treasury 1.500% Jan 31 2022 3.4% Bank of Nova Scotia 5.1%Spain Government EUR 2.750% Apr 30 2019 3.3% Brookfield Asset Management Inc., Class A 3.9%

Phi l l ips , Hager & North U.S. Mul ti -Style Al l -Cap Equity Fund 5.2% Phi l l ips , Hager & North Canadian Equity Underlying Fund 1.6%Apple Inc. 3.4% Toronto-Dominion Bank 7.4%Microsoft Corp. 2.9% Royal Bank of Canada 6.9%Johnson & Johnson 1.7% Enbridge Inc. 5.2%Facebook Inc., Class A 1.7% Bank of Nova Scotia 5.1%Home Depot Inc. 1.7% Brookfield Asset Management Inc., Class A 3.9%

RBC Canadian Dividend Fund 4.8% RBC Japanese Equi ty Fund 1.5%Roya l Bank of Canada 8.0% SoftBank Group Corp. 6.2%Toronto-Dominion Bank 7.2% Mitsubishi UFJ Financia l Group Inc. 4.0%Bank of Nova Scotia 6.0% Sumitomo Mitsui Financia l Group Inc. 3.7%Cash & Cash Equiva lents 4.2% Mizuho Financia l Group Inc. 3.5%Brookfield As set Management Inc., Class A 4.1% Suzuki Motor Co. Ltd. 3.4%

Phi l l ips , Hager & North Conservative Equity Income Fund 4.3% BlueBay European High Yield Bond Fund 1.4%Toronto-Dominion Bank 6.3% Cash & Cash Equiva lents 6.1%Roya l Bank of Canada 5.7% Nas sa Topco AS EUR 2.875% Apr 6 2024 3.0%Enbridge Inc. 5.6% Virgin Media Receivables Financing Notes I DAC GBP 2.4%Bank of Nova Scotia 5.4% Alti ce Finco S.A. EUR 4.750% Jan 15 2028 2.0%Brookfield As set Management Inc., Class A 3.7% InterXion Holding N.V. EUR 6.000% Jul 15 2020 2.0%

RBC Private Canadian Equi ty Pool 3.8% RBC Global Equity Fund 1.3%Roya l Bank of Canada 5.9% UnitedHealth Group Incorporated 3.9%Toronto-Dominion Bank 5.1% Estée Lauder Companies Inc., Class A 3.9%Enbridge Inc. 4.3% EOG Res ources Inc. 3.8%Cash & Cash Equiva lents 4.2% Nidec Corp. 3.5%Bank of Nova Scotia 3.6% SVB Financia l Group 3.2%

RBC Globa l High Yield Bond Fund 3.0% RBC U.S. Equi ty Fund 1.1%BlueBay Emerging Markets Corporate Bond Fund 3.5% Apple Inc. 4.4%iShares iBoxx $ High Yield Corporate Bond Fund 3.0% RBC U.S. Mid-Cap Growth Equi ty Fund USD 3.9%Bloomberg Barclays Capi ta l High Yield Bond SPDR Fund 3.0% Cash & Cash Equiva lents 3.9%Cash & Cash Equiva lents 2.7% RBC U.S. Mid-Cap Va lue Equi ty Fund USD 3.6%iShares J.P. Morgan USD Emerging Markets Bond Fund 1.7% Microsoft Corp. 3.2%

Cash & Cash Equiva lents 2.5% RBC QUBE Low Volati l i ty Canadian Equi ty Fund 0.5%Phi l l ips , Hager & North Short Term Bond & Mortgage Fund 2.4% Royal Bank of Canada 5.0%

Province of Ontario 4.200% Jun 2 2020 4.6% Bank of Nova Scotia 4.9%Canada Hous ing Trust No. 1 2.400% Dec 15 2022 3.9% Saputo Group Inc. 4.1%Government of Canada 1.250% Feb 1 2020 3.9% Canadian National Ra i lway Co. 4.1%Canada Hous ing Trust No. 1 1.250% Dec 15 2020 3.6% TELUS Corp. 4.0%Government of Canada 1.750% Mar 1 2023 3.3%

99.6%

Top 5 holdings of the 25 underlying fund (Unaudited)

RBC Select Conservative GIP (continued)



For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 11.47$ 10.88$ 10.50$ 10.14$ 14.57$ 13.88$ 13.45$ 13.03$ 12.15$ Net assets attributable to contractholders ($ '000) 24,473$ 10,616$ 3,792$ 411$ 73,089$ 73,881$ 59,097$ 47,676$ 27,623$ Net Income ($ '000) 967$ 368$ 14$ 1$ 3,358$ 2,152$ 1,574$ 2,532$ 1,865$ Premium depos i ts ($ '000) 18,162$ 10,139$ 3,619$ 410$ 23,078$ 24,736$ 23,573$ 23,615$ 8,865$ Withdrawals ($ '000) 5,272$ 3,683$ 252$ -$ 27,228$ 12,105$ 13,725$ 6,094$ 3,752$ Number of uni ts outs tanding 2,134,401 975,888 361,018 40,545 5,017,580 5,324,449 4,394,837 3,659,712 2,273,883



Net Asset Va lue attributable to contractholders 14.40$ 13.74$ 13.34$ 12.95$ 12.10$ Net assets attributable to contractholders ($ '000) 127,929$ 115,400$ 90,808$ 67,671$ 47,509$ Net Income ($ '000) 5,681$ 3,111$ 1,795$ 3,704$ 3,252$ Premium depos i ts ($ '000) 32,356$ 37,428$ 35,571$ 27,537$ 16,978$ Withdrawals ($ '000) 25,508$ 15,947$ 14,230$ 11,079$ 8,228$ Number of uni ts outs tanding 8,886,076 8,401,673 6,808,929 5,227,565 3,927,928

Management expense ratio 1 2.60% 2.83% 2.82% 2.61% 2.63%Management expense before waiver 2.75% 2.90% 2.89% 2.61% 2.64%

Portfol io turnover rate of the underlying fund 2 6.57% 12.26% 16.35% 33.00% 15.96%


Series 2





year 2013 not



in 2014.

RBC Select Conservative GIP (continued)




Ca sh 518,272$ 418,247$ Net income attributable to contractholders 16,817,220$ 6,919,148$ Investments in underlying fund at fa i r va lue 258,425,757 195,814,545 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (19,915,175) (8,928,953) Accounts receivable - contractholders 50,000 - Change in other a ssets 16,123 (2,536) Accounts receivable - sa le of investments - - Change in other l iabi l i ties 93,395 83,249 Due from RBC Li fe Insurance Compa ny 1,171 17,241 Purchases of investments (61,146,736) (50,097,938) Other 498 551 Proceeds from sa les of investments 18,450,699 11,054,622


Bank indebtedness - - Di stributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 84,467,344 64,084,615

Accrued expenses 537,117 443,722 Redemption of uni ts (38,682,845) (22,799,637) Accounts payable - contra ctholders 2,000 - Cash provided by (used in) fina ncing activi ties 45,784,499 41,284,978 Accounts payable - purchase of investments - - Increase in cash 100,025 312,570 Other - - Cash at beginning of period 418,247 105,677



Series 1 1.05% 2.20%Series 2 1.09% 2.30%


Dis tribution from underlying fund 2,860,225$ 2,684,956$ Series 2 0.50 (0.90) % 0.50 (0.90) %Real ized ga in on sa le of investments 3,967,322 1,871,532 Cha nge in unreal i zed ga in/loss of investments 15,947,853 7,057,421 Sales and redemption of units

22,775,400 11,613,909 Invest SeriesExpenses Opening ba lance as at Janua ry 1s t 1,174,440 550,413

Management fees 4,481,691 3,618,847 Purchases during the period 1,332,726 767,543 Insurance fees 1,095,400 834,465 Redemptions during the period (219,082) (143,516) Other adminis trative expenses 510,550 383,493 Clos ing ba lance as at December 31st 2,288,084 1,174,440

6,087,641 4,836,805 Series 1Less : Expenses waived 129,461 142,044 Opening ba lance as at Janua ry 1s t 3,867,821 2,937,565 Expenses after waiver 5,958,180 4,694,761 Purchases during the period 1,722,716 1,440,419

Net income attributable to contractholders 16,817,220$ 6,919,148$ Redemptions during the period (818,227) (510,163) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 4,772,310 3,867,821

Invest Series 0.94$ 0.56$ Series 2 Series 1 1.13 0.60 Opening ba lance as at Janua ry 1s t 9,049,476 7,460,809 Series 2 1.08 0.54 Purchases during the period 2,953,336 2,641,825

Redemptions during the period (1,636,849) (1,053,158) Clos ing ba lance as at December 31st 10,365,963 9,049,476



297,141,426 218,605,699 Schedule of investment in underlying fundWithdrawals 38,684,845 22,798,837 RBC Select Balanced Portfolio, Series O


Invest Series 2,288,084 1,174,440 Percentage held in underlying fund 0.9178% 0.8734%Series 1 4,772,310 3,867,821 Fa i r va lue 258,425,757$ 195,814,545$ Series 2 10,365,963 9,049,476





RBC Select Balanced GIP


RBC Bond Fund 18.0% RBC Global Dividend Growth Fund 2.8%Province of Ontario 3.450% Jun 2 2045 3.1% Taiwan Semiconductor Manufacturing Co. Ltd. ADR 4.6%Province of Ontario 3.500% Jun 2 2043 2.4% Deuts che Pos t AG 4.3%Province of Ontario 2.900% Dec 2 2046 2.3% UnitedHeal th Group Incorporated 4.1%Province of Ontario 2.600% Jun 2 2025 2.1% Blackstone Group LP 4.0%Government of Canada 1.000% Jun 1 2027 2.1% Intuit Inc. 4.0%

RBC Global Corporate Bond Fund 9.1% BlueBay Global Monthly Income Bond Fund 2.7%Cas h & Cash Equiva lents 3.3% Cash & Cash Equiva lents 7.1%iShares iBoxx $ Investment Grade Corporate Bond Fund 3.2% Republ ic of South Africa ZAR 10.500% Dec 21 2026 1.2%RBC Emerging Markets Bond Fund USD 2.1% CaixaBank S.A. EUR 6.750% Dec 31 2099 1.2%BlueBay Emerging Markets Corporate Bond Fund 2.0% Mexican Bonos MXN 6.500% Jun 10 2021 1.0%United States 10-Year Note Future, March 2018 1.1% Brazi l Notas do Tes ouro Nacional Serie F BRL 10.000% 1.0%

RBC European Equity Fund 7.2% Phi l l ips , Hager & North Canadian Equi ty Underlying Fund I I 2.6%Novo Nordisk A/S 5.3% Toronto-Dominion Bank 7.4%Royal Dutch Shel l Plc., A Shares 5.0% Royal Bank of Canada 6.9%Uni lever Plc. 4.7% Enbridge Inc. 5.2%Relx N.V. 4.3% Bank of Nova Scotia 5.1%Sampo OYJ 3.5% Brookfield As set Management Inc., Class A 3.9%

Phi l l ips , Hager & North U.S. Multi -Style Al l -Cap Equity Fund 6.0% RBC As ia Paci fi c ex-Japan Equi ty Fund 2.3%Apple Inc. 3.4% Tencent Holdings Ltd. 5.9%Micros oft Corp. 2.9% Ping An Insurance Group Company of China Ltd. 4.3%Johnson & Johnson 1.7% CSL Ltd. 4.3%Facebook Inc., Clas s A 1.7% Samsung Electronics Co. Ltd. 4.2%Home Depot Inc. 1.7% Al ibaba Group Holding Ltd. ADR 3.6%

RBC Private Canadian Equi ty Pool 5.3% RBC Private U.S. Large-Cap Core Equity Pool 2.2%Royal Bank of Canada 5.9% Bank of America Corp. 4.0%Toronto-Dominion Bank 5.1% JPMorgan Chas e & Co. 4.0%Enbridge Inc. 4.3% Johns on & Johns on 3.5%Cas h & Cash Equiva lents 4.2% AT&T Inc. 3.4%Bank of Nova Scotia 3.6% Becton Dickins on & Co. 3.0%

RBC QUBE U.S. Equity Fund 5.3% RBC U.S. Dividend Fund 2.1%Apple Inc. 4.1% Apple Inc. 4.40%Citigroup Inc. 3.6% Microsoft Corp. 3.80%Phi l ip Morris International Inc. 3.0% JPMorgan Chas e & Co. 3.40%Lockheed Martin Corporation 2.8% Bank of America Corp. 3.10%Facebook Inc., Clas s A 2.8% Johns on & Johns on 2.80%

RBC Canadian Dividend Fund 5.3% BlueBay Global Investment Grade Corporate Bond Fund (Canada) 1.8%Royal Bank of Canada 8.0% Cash & Cash Equiva lents 3.5%Toronto-Dominion Bank 7.2% Deuts che Bank AG USD 2.500% Feb 13 2019 2.8%Bank of Nova Scotia 6.0% Genera l Motors Financia l Co. Inc. 3.100% Jan 15 2019 2.3%Cas h & Cash Equiva lents 4.2% Rogers Communications Inc. 2.800% Mar 13 2019 1.9%Brookfield Asset Management Inc., Class A 4.1% Ford Credi t Canada Ltd. 3.140% Jun 14 2019 1.7%

RBC Global Bond Fund 3.9% Cash & Cash Equiva lents 1.8%United States Treasury 1.500% Nov 30 2019 6.4% BlueBay Global Sovereign Bond Fund (Canada) 1.2%Cas h & Cash Equiva lents 4.1% Cash & Cash Equiva lents 13.5%United States Treasury 2.375% May 15 2027 3.7% Bundesrepubl ik Deuts chland EUR 0.250% Feb 15 2027 7.7%United States Treasury 1.500% Jan 31 2022 3.4% France O.A.T. EUR 1.000% May 25 2027 5.0%Spa in Government EUR 2.750% Apr 30 2019 3.3% Austra l ia Government AUD 3.250% Oct 21 2018 4.8%

RBC Emerging Markets Equi ty Fund 3.4% United States Treas ury 2.875% Nov 15 2046 4.8%Naspers Ltd. 6.1% RBC Japanese Equity Fund 1.2%Hous ing Development Finance Corp. 4.6% SoftBank Group Corp. 6.2%Samsung Electronics Co. Ltd. 4.5% Mits ubis hi UFJ Financia l Group Inc. 4.0%Taiwan Semiconductor Manufacturing Co. Ltd. 4.2% Sumitomo Mits ui Financia l Group Inc. 3.7%Tata Cons ultancy Services Ltd. 4.1% Mizuho Financia l Group Inc. 3.5%

RBC QUBE Canadian Equi ty Fund 3.2% Suzuki Motor Co. Ltd. 3.4%Royal Bank of Canada 8.0% RBC U.S. Mid-Cap Growth Equity Fund 1.1%Toronto-Dominion Bank 7.2% MercadoLibre Inc. 2.3%Canadian National Ra i lway Co. 5.4% Abiomed Inc. 2.1%Suncor Energy Inc. 5.4% Dol lar Tree Inc. 1.9%Bank of Nova Scotia 4.8% Autodesk Inc. 1.9%

Phi l l ips , Hager & North Canadian Equi ty Underlying Fund 3.1% SynOps ys Inc. 1.8%Toronto-Dominion Bank 7.4% RBC U.S. Equity Fund 1.1%Royal Bank of Canada 6.9% Apple Inc. 4.4%Enbridge Inc. 5.2% RBC U.S. Mid-Cap Growth Equity Fund USD 3.9%Bank of Nova Scotia 5.1% Cash & Cash Equiva lents 3.9%Brookfield Asset Management Inc., Class A 3.9% RBC U.S. Mid-Cap Value Equi ty Fund USD 3.6%

RBC Global Equity Focus Fund 2.9% Microsoft Corp. 3.2%EOG Res ources Inc. 4.8% RBC U.S. Mid-Cap Value Equity Fund 1.0%UnitedHealth Group Incorporated 4.6% National Genera l Holdings Corp. 3.5%Roche Holdings AG Genusscheine 4.6% Synchrony Financia l 3.0%Es tée Lauder Companies Inc., Clas s A 4.5% Jazz Pharmaceutica ls Plc. 2.9%Nidec Corp. 4.4% Andeavor 2.8%

Mohawk Indus tries Inc. 2.5%96.6%


RBC Select Balanced GIP (continued)



For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 12.03$ 11.11$ 10.66$ 10.15$ 15.50$ 14.36$ 13.82$ 13.22$ 12.11$ Net assets attributable to contractholders ($ '000) 27,525$ 13,046$ 5,867$ 53$ 73,980$ 55,557$ 40,610$ 24,446$ 15,523$ Net Income ($ '000) 1,563$ 475$ 2$ -$ 4,792$ 2,031$ 1,124$ 1,721$ 1,589$ Premium depos i ts ($ '000) 15,461$ 8,245$ 6,002$ 53$ 25,846$ 19,967$ 20,196$ 10,315$ 5,591$ Withdrawals ($ '000) 2,545$ 1,540$ 191$ -$ 12,215$ 7,050$ 5,157$ 3,113$ 2,188$ Number of uni ts outs tanding 2,288,084 1,174,440 550,413 5,231 4,772,310 3,867,821 2,937,565 1,849,544 1,282,158



Net Asset Va lue attributable to contractholders 15.14$ 14.06$ 13.55$ 12.98$ 11.92$ Net assets attributable to contractholders ($ '000) 156,952$ 127,204$ 101,130$ 74,100$ 51,160$ Net Income ($ '000) 10,462$ 4,413$ 3,232$ 5,387$ 5,229$ Premium depos i ts ($ '000) 43,210$ 35,868$ 38,192$ 27,267$ 15,468$ Withdrawals ($ '000) 23,925$ 14,209$ 14,393$ 9,714$ 5,849$ Number of uni ts outs tanding 10,365,963 9,049,476 7,460,809 5,706,939 4,293,723






RBC Select Balanced GIP (continued)

Series 2

Series 1Invest Series 3The

comparative data for the year 2013 not



in 2014.




Ca sh 33,041$ 128,210$ Net income attributable to contractholders 6,674,926$ 2,559,245$ Investments in underlying fund at fa i r va lue 87,058,134 66,941,392 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (7,040,241) (2,802,005) Accounts receivable - contractholders - - Change in other a ssets 4,705 3,191 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 51,922 11,032 Due from RBC Li fe Insurance Compa ny 476 5,128 Purchases of investments (20,546,823) (12,353,665) Other 498 551 Proceeds from sa les of investments 7,470,322 5,990,104


Bank indebtedness - - Di stributions to the contractholders - - Other l iabi l i ties Proceeds from issue of uni ts 25,225,393 15,563,880

Accrued expenses 219,308 167,386 Redemption of uni ts (11,935,373) (8,887,248) Accounts payable - contra ctholders - - Cash provided by (used in) fina ncing activi ties 13,290,020 6,676,632 Accounts payable - purchase of investments - - Increase (decrease) in cash (95,169) 84,534 Other - - Cash at beginning of period 128,210 43,676



Series 1 2.25% 2.25%Series 2 2.35% 2.35%


Dis tribution from underlying fund 1,975,006$ 1,671,621$ Series 2 0.70 (1.10) % 0.70 (1.10) %Real ized ga in on sa le of investments 1,492,774 733,702 Cha nge in unreal i zed ga in/loss of investments 5,547,467 2,068,303 Sales and redemption of units

9,015,247 4,473,626 Invest SeriesExpenses Opening ba lance as at Janua ry 1s t 332,886 107,861

Management fees 1,585,796 1,293,722 Purchases during the period 440,185 249,506 Insurance fees 549,743 453,325 Redemptions during the period (60,797) (24,481) Other adminis trative expenses 244,897 208,788 Clos ing ba lance as at December 31st 712,274 332,886

2,380,436 1,955,835 Series 1Less : Expenses waived 40,115 41,454 Opening ba lance as at Janua ry 1s t 929,736 940,486 Expenses after waiver 2,340,321 1,914,381 Purchases during the period 288,724 221,402

Net income attributable to contractholders 6,674,926$ 2,559,245$ Redemptions during the period (200,142) (232,152) Net income attributable to contractholders per uni t Clos ing ba lance as at December 31st 1,018,318 929,736

Invest Series 1.04$ $ 0.83 Series 2 Series 1 1.33 0.54 Opening ba lance as at Janua ry 1s t 3,618,716 3,279,289 Series 2 1.26 0.53 Purchases during the period 1,085,980 752,510

Redemptions during the period (573,919) (413,083) Clos ing ba lance as at December 31st 4,130,777 3,618,716



98,808,214 75,795,143 Schedule of investment in underlying fundWithdrawals 11,935,373 8,887,248 RBC Select Growth Portfolio, Series O


Invest Series 712,274 332,886 Percentage held in underlying fund 0.9984% 0.9166%Series 1 1,018,318 929,736 Fa i r va lue 87,058,134$ 66,941,392$ Series 2 4,130,777 3,618,716





RBC Select Growth GIP


RBC Bond Fund 9.3% RBC Global Bond Fund 3.4%Province of Ontario 3.450% Jun 2 2045 3.1% United States Treas ury 1.500% Nov 30 2019 6.4%Province of Ontario 3.500% Jun 2 2043 2.4% Cas h & Cash Equiva lents 4.1%Province of Ontario 2.900% Dec 2 2046 2.3% United States Treas ury 2.375% May 15 2027 3.7%Province of Ontario 2.600% Jun 2 2025 2.1% United States Treas ury 1.500% Jan 31 2022 3.4%Government of Canada 1.000% Jun 1 2027 2.1% Spain Government EUR 2.750% Apr 30 2019 3.3%

RBC European Equi ty Fund 8.9% RBC Private U.S. Large-Cap Core Equity Pool 3.2%Novo Nordisk A/S 5.3% Bank of America Corp. 4.0%Royal Dutch Shel l Plc., A Shares 5.0% JPMorgan Chase & Co. 4.0%Uni lever Plc. 4.7% Johnson & Johnson 3.5%Relx N.V. 4.3% AT&T Inc. 3.4%Sampo OYJ 3.5% Becton Dickinson & Co. 3.0%

Phi l l ips , Hager & North U.S. Multi -Style Al l -Cap Equi ty Fund 7.0% RBC U.S. Dividend Fund 3.2%Apple Inc. 3.4% Apple Inc. 4.40%Microsoft Corp. 2.9% Microsoft Corp. 3.80%Johns on & Johns on 1.7% JPMorgan Chase & Co. 3.40%Facebook Inc., Class A 1.7% Bank of America Corp. 3.10%Home Depot Inc. 1.7% Johnson & Johnson 2.80%

RBC Global Corporate Bond Fund 6.7% RBC QUBE Canadian Equity Fund 3.1%Cash & Cash Equiva lents 3.3% Royal Bank of Canada 8.0%iSha res iBoxx $ Investment Grade Corporate Bond Fund 3.2% Toronto-Dominion Bank 7.2%RBC Emerging Markets Bond Fund USD 2.1% Cana dian National Ra i lway Co. 5.4%BlueBay Emerging Markets Corporate Bond Fund 2.0% Suncor Energy Inc. 5.4%United States 10-Year Note Future, March 2018 1.1% Bank of Nova Scotia 4.8%

RBC Private Canadian Equity Pool 6.3% RBC As ia Paci fic ex-Japan Equity Fund 2.6%Royal Bank of Ca nada 5.9% Tencent Holdings Ltd. 5.9%Toronto-Dominion Bank 5.1% Ping An Insurance Group Company of China Ltd. 4.3%Enbridge Inc. 4.3% CSL Ltd. 4.3%Cash & Cash Equiva lents 4.2% Samsung Electronics Co. Ltd. 4.2%Bank of Nova Scotia 3.6% Al ibaba Group Holding Ltd. ADR 3.6%

RBC QUBE U.S. Equi ty Fund 5.3% Cash & Cash Equiva lents 1.7%Apple Inc. 4.1% RBC Japanese Equity Fund 1.7%Citigroup Inc. 3.6% SoftBank Group Corp. 6.2%Phi l ip Morris International Inc. 3.0% Mitsubis hi UFJ Financia l Group Inc. 4.0%Lockheed Martin Corporation 2.8% Sumitomo Mitsui Financia l Group Inc. 3.7%Facebook Inc., Class A 2.8% Mizuho Financia l Group Inc. 3.5%

Phi l l ips , Hager & North Canadian Equity Underlying Fund 5.0% Suzuki Motor Co. Ltd. 3.4%Toronto-Dominion Bank 7.4% BlueBay Global Monthly Income Bond Fund 1.7%Royal Bank of Ca nada 6.9% Cas h & Cash Equiva lents 7.1%Enbridge Inc. 5.2% Republ ic of South Africa ZAR 10.500% Dec 21 2026 1.2%Bank of Nova Scotia 5.1% CaixaBank S.A. EUR 6.750% Dec 31 2099 1.2%Brookfield Asset Management Inc., Class A 3.9% Mexican Bonos MXN 6.500% Jun 10 2021 1.0%

RBC Emerging Markets Equi ty Fund 4.4% Brazi l Notas do Tesouro Nacional Serie F BRL 10.000% 1.0%Naspers Ltd. 6.1% RBC U.S. Equi ty Fund 1.6%Hous ing Development Finance Corp. 4.6% Apple Inc. 4.4%Samsung Electronics Co. Ltd. 4.5% RBC U.S. Mid-Cap Growth Equity Fund USD 3.9%Taiwan Semiconductor Manufacturing Co. Ltd. 4.2% Cas h & Cash Equiva lents 3.9%Tata Cons ultancy Services Ltd. 4.1% RBC U.S. Mid-Cap Value Equity Fund USD 3.6%

RBC Global Equi ty Focus Fund 4.4% Microsoft Corp. 3.2%EOG Res ources Inc. 4.8% BlueBay Global Sovereign Bond Fund (Canada) 1.2%UnitedHealth Group Incorporated 4.6% Cas h & Cash Equiva lents 13.5%Roche Holdings AG Genus scheine 4.6% Bundes republ ik Deuts chland EUR 0.250% Feb 15 2027 7.7%Estée Lauder Companies Inc., Clas s A 4.5% France O.A.T. EUR 1.000% May 25 2027 5.0%Nidec Corp. 4.4% Austra l ia Government AUD 3.250% Oct 21 2018 4.8%

RBC Global Dividend Growth Fund 4.4% United States Treas ury 2.875% Nov 15 2046 4.8%Taiwan Semiconductor Manufacturing Co. Ltd. ADR 4.6% RBC Emerging Markets Dividend Fund 1.2%Deutsche Post AG 4.3% Samsung Electronics Co. Ltd. 5.3%UnitedHealth Group Incorporated 4.1% Al ibaba Group Holding Ltd. ADR 3.8%Blackstone Group LP 4.0% China Construction Bank Corp. 3.7%Intuit Inc. 4.0% Taiwan Semiconductor Manufacturing Co. Ltd. 3.4%

RBC Canadian Dividend Fund 4.2% Industria l & Commercia l Bank of China 2.5%Royal Bank of Ca nada 8.0% RBC U.S. Mid-Cap Growth Equi ty Fund 1.1%Toronto-Dominion Bank 7.2% MercadoLibre Inc. 2.3%Bank of Nova Scotia 6.0% Abiomed Inc. 2.1%Cash & Cash Equiva lents 4.2% Dol lar Tree Inc. 1.9%Brookfield Asset Management Inc., Class A 4.1% Autodesk Inc. 1.9%

Phi l l ips , Hager & North Canadian Growth Fund 4.2% SynOpsys Inc. 1.8%Royal Bank of Ca nada 7.3% RBC Emerging Markets Smal l -Cap Equity Fund 1.0%Toronto-Dominion Bank 6.2% Infotech Enterpri ses Ltd. 4.5%Bank of Nova Scotia 5.0% Cas h & Cash Equiva lents 4.0%Canadian National Ra i lway Co. 4.7% Godrej Indus tries Ltd. 3.1%Suncor Energy Inc. 3.6% Baja j Holdings & Inves tment Ltd. 2.9%

TI Financia l Holdings Ltd. 2.7%96.8%


RBC Select Growth GIP (continued)



For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 12.33$ 11.22$ 10.76$ 10.15$ 15.48$ 14.15$ 13.61$ 12.88$ 11.75$ Net assets attributable to contractholders ($ '000) 8,781$ 3,736$ 1,160$ 11$ 15,761$ 13,154$ 12,802$ 8,058$ 5,347$ Net Income ($ '000) 539$ 203$ 23$ -$ 1,266$ 504$ 454$ 577$ 763$ Premium depos i ts ($ '000) 5,225$ 2,638$ 1,237$ 11$ 4,301$ 3,007$ 5,830$ 3,223$ 1,320$ Withdrawals ($ '000) 720$ 265$ 111$ -$ 2,960$ 3,160$ 1,540$ 1,089$ 1,078$ Number of units outs tanding 712,274 332,886 107,861 1,042 1,018,318 929,736 940,486 625,605 455,296



Net Asset Va lue attributable to contractholders 15.09$ 13.82$ 13.33$ 12.65$ 11.56$ Net assets attributable to contractholders ($ '000) 62,331$ 50,018$ 43,710$ 30,504$ 22,464$ Net Income ($ '000) 4,870$ 1,852$ 1,681$ 2,402$ 3,100$ Premium depos i ts ($ '000) 15,699$ 9,919$ 17,670$ 9,358$ 4,923$ Withdrawals ($ '000) 8,255$ 5,462$ 6,146$ 3,720$ 3,546$ Number of units outs tanding 4,130,777 3,618,716 3,279,289 2,412,255 1,943,542




Series 2





year 2013 not



in 2014.

RBC Select Growth GIP (continued)




Cash -$ -$ Net income attributable to contractholders 2,608,392$ 982,746$ Investments in underlying fund at fa i r va lue 30,096,981 20,635,799 Add (deduct) to convert net income toOther assets a cash bas is

Accrued income distribution from underlying funds - - Net ga ins on investments (2,767,695) (1,119,703) Accounts receivable - contractholders - 2,100 Change in other assets 2,424 2,585 Accounts receivable - sa le of investments - - Change in other l iabi l i ties 25,479 7,903 Due from RBC Li fe Insurance Company 185 2,556 Purchases of investments (10,052,095) (6,185,393) Other 498 551 Proceeds from sa les of investments 3,358,608 3,371,034


Bank indebtedness 8,392 54,966 Dis tributions to the contractholders - - Other l iabi l i ties Proceeds from issue of units 11,674,718 6,708,757

Accrued expenses 90,978 65,499 Redemption of uni ts (4,803,257) (3,690,050) Accounts payable - contractholders - - Cash provided by (used in) financing activi ties 6,871,461 3,018,707 Accounts payable - purchase of investments - - Increase in cash 46,574 77,879 Other - - Bank indebtedness at beginning of period (54,966) (132,845)

99,370 120,465 Bank indebtedness at end of period (8,392)$ (54,966)$ Net assets attributable to contractholders 29,998,294$ 20,520,541$


Series 1 2.35% 2.35%Series 2 2.40% 2.40%


Dis tribution from underlying fund 644,392$ 501,447$ Series 2 0.95 (1.35) % 0.95 (1.35) %Real i zed ga in on sa le of investments 627,105 222,839 Change in unrea l i zed ga in/loss of investments 2,140,590 896,864 Sales and redemption of units



821,181 659,484 Series 1Less : Expenses waived 17,486 21,080 Opening balance as at January 1st 177,547 175,658 Expenses a fter waiver 803,695 638,404 Purchases during the period 76,754 70,325

Net income attributable to contractholders 2,608,392$ 982,746$ Redemptions during the period (35,751) (68,436) Net income attributable to contractholders per uni t Clos ing balance as at December 31st 218,550 177,547

Invest Series 1.29$ 0.83$ Series 2 Series 1 1.63 0.57 Opening balance as at January 1st 1,270,388 1,069,553 Series 2 1.53 0.66 Purchases during the period 574,765 411,048

Redemptions during the period (293,112) (210,213) Clos ing balance as at December 31st 1,552,041 1,270,388


Premium depos i ts 11,672,618 6,705,857 Level 1 30,096,981$ 20,635,799$ Net income attributable to contractholders 2,608,392 982,746

34,801,551 24,210,591 Schedule of investment in underlying fundWithdrawals 4,803,257 3,690,050 RBC Select Aggressive Growth Portfolio, Series O


Invest Series 279,818 101,008 Percentage held in underlying fund 1.5938% 1.3783%Series 1 218,550 177,547 Fa i r va lue 30,096,981$ 20,635,799$ Series 2 1,552,041 1,270,388





RBC Select Aggressive Growth GIP


RBC European Equity Fund 12.4% RBC Private U.S. Large-Cap Core Equity Pool 4.1%Novo Nordisk A/S 5.3% Bank of America Corp. 4.0%Royal Dutch Shel l Plc., A Shares 5.0% JPMorgan Chase & Co. 4.0%Uni lever Plc. 4.7% Johnson & Johnson 3.5%Relx N.V. 4.3% AT&T Inc. 3.4%Sampo OYJ 3.5% Becton Dickinson & Co. 3.0%

Phi l l ips , Hager & North U.S. Multi -Style Al l -Cap Equity Fund 9.6% RBC U.S. Dividend Fund 4.0%Apple Inc. 3.4% Apple Inc. 4.40%Microsoft Corp. 2.9% Microsoft Corp. 3.80%Johnson & Johnson 1.7% JPMorgan Chase & Co. 3.40%Facebook Inc., Class A 1.7% Bank of America Corp. 3.10%Home Depot Inc. 1.7% Johnson & Johnson 2.80%

RBC Private Canadian Equity Pool 8.0% RBC As ia Paci fi c ex-Japan Equity Fund 3.1%Royal Bank of Canada 5.9% Tencent Holdings Ltd. 5.9%Toronto-Dominion Bank 5.1% Ping An Insurance Group Company of China Ltd. 4.3%Enbridge Inc. 4.3% CSL Ltd. 4.3%Cash & Cash Equiva lents 4.2% Samsung Electronics Co. Ltd. 4.2%Bank of Nova Scotia 3.6% Al ibaba Group Holding Ltd. ADR 3.6%

RBC QUBE U.S. Equi ty Fund 8.0% Phi l l ips , Hager & North Canadian Equity Underlying Fund II 2.3%Apple Inc. 4.1% Toronto-Dominion Bank 7.4%Citigroup Inc. 3.6% Royal Bank of Canada 6.9%Phi l ip Morris International Inc. 3.0% Enbridge Inc. 5.2%Lockheed Martin Corporation 2.8% Bank of Nova Scotia 5.1%Facebook Inc., Class A 2.8% Brookfield Asset Management Inc., Class A 3.9%

RBC Emerging Markets Equi ty Fund 6.2% RBC Japanese Equity Fund 2.1%Naspers Ltd. 6.1% SoftBank Group Corp. 6.2%Hous ing Development Finance Corp. 4.6% Mitsubishi UFJ Financia l Group Inc. 4.0%Samsung Electronics Co. Ltd. 4.5% Sumitomo Mitsui Financia l Group Inc. 3.7%Taiwan Semiconductor Manufacturing Co. Ltd. 4.2% Mizuho Financia l Group Inc. 3.5%Tata Consul tancy Services Ltd. 4.1% Suzuki Motor Co. Ltd. 3.4%

RBC QUBE Canadian Equity Fund 6.0% RBC U.S. Equi ty Fund 2.0%Royal Bank of Canada 8.0% Apple Inc. 4.4%Toronto-Dominion Bank 7.2% RBC U.S. Mid-Cap Growth Equity Fund USD 3.9%Canadian Nationa l Ra i lway Co. 5.4% Cash & Cash Equiva lents 3.9%Suncor Energy Inc. 5.4% RBC U.S. Mid-Cap Va lue Equity Fund USD 3.6%Bank of Nova Scotia 4.8% Microsoft Corp. 3.2%

Phi l l ips , Hager & North Canadian Growth Fund 6.0% RBC Emerging Markets Smal l -Cap Equity Fund 1.6%Royal Bank of Canada 7.3% Infotech Enterprises Ltd. 4.5%Toronto-Dominion Bank 6.2% Cash & Cash Equiva lents 4.0%Bank of Nova Scotia 5.0% Godrej Industries Ltd. 3.1%Canadian Nationa l Ra i lway Co. 4.7% Baja j Holdings & Investment Ltd. 2.9%Suncor Energy Inc. 3.6% TI Financia l Holdings Ltd. 2.7%

Phi l l ips , Hager & North Canadian Equity Underlying Fund 5.0% RBC Emerging Markets Dividend Fund 1.6%Toronto-Dominion Bank 7.6% Samsung Electronics Co. Ltd. 5.3%Royal Bank of Canada 7.0% Al ibaba Group Holding Ltd. ADR 3.8%Enbridge Inc. 5.3% China Construction Bank Corp. 3.7%Bank of Nova Scotia 5.1% Taiwan Semiconductor Manufacturing Co. Ltd. 3.4%Brookfield Asset Management Inc., Class A 3.9% Industria l & Commercia l Bank of China 2.5%

RBC Canadian Dividend Fund 5.0% RBC U.S. Mid-Cap Va lue Equity Fund 1.4%Royal Bank of Canada 8.0% National Genera l Holdings Corp. 3.5%Toronto-Dominion Bank 7.2% Synchrony Financia l 3.0%Bank of Nova Scotia 6.0% Jazz Pharmaceutica ls Plc. 2.9%Cash & Cash Equiva lents 4.2% Andeavor 2.8%Brookfield Asset Management Inc., Class A 4.1% Mohawk Industries Inc. 2.5%

RBC Global Dividend Growth Fund 4.7% RBC U.S. Mid-Cap Growth Equity Fund 1.4%Taiwan Semiconductor Manufacturing Co. Ltd. ADR 4.6% MercadoLibre Inc. 2.3%Deutsche Post AG 4.3% Abiomed Inc. 2.1%UnitedHealth Group Incorporated 4.1% Dol lar Tree Inc. 1.9%Blackstone Group LP 4.0% Autodesk Inc. 1.9%Intui t Inc. 4.0% SynOpsys Inc. 1.8%

RBC Global Equi ty Focus Fund 4.7% Cash & Cash Equiva lents 0.4%EOG Resources Inc. 4.8% The S&P 500 Mini Index Future, March 2018 0.2%UnitedHealth Group Incorporated 4.6% The S&P/TSX 60 Index Future, March 2018 0.2%Roche Holdings AG Genusscheine 4.6%Estée Lauder Companies Inc., Class A 4.5%Nidec Corp. 4.4%

100.0%

RBC Select Aggressive Growth GIP (continued)




For the years 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Net Asset Va lue attributable to contractholders 12.86$ 11.45$ 10.88$ 10.15$ 15.36$ 13.74$ 13.11$ 12.29$ 11.14$ Net assets attributable to contractholders ($ '000) 3,598$ 1,157$ 565$ 5$ 3,356$ 2,439$ 2,303$ 1,833$ 1,388$ Net Income ($ '000) 228$ 69$ -$ -$ 321$ 98$ 120$ 141$ 254$ Premium depos i ts ($ '000) 2,374$ 670$ 655$ 5$ 1,126$ 922$ 801$ 762$ 520$ Withdrawals ($ '000) 161$ 148$ 94$ -$ 530$ 884$ 451$ 458$ 384$ Number of units outs tanding 279,818 101,008 51,951 500 218,550 177,547 175,658 149,173 124,560



Net Asset Va lue attributable to contractholders 14.85$ 13.32$ 12.77$ 12.00$ 10.92$ Net assets attributable to contractholders ($ '000) 23,044$ 16,925$ 13,654$ 8,108$ 6,848$ Net Income ($ '000) 2,059$ 816$ 560$ 730$ 1,187$ Premium depos i ts ($ '000) 8,173$ 5,114$ 7,044$ 3,268$ 1,174$ Withdrawals ($ '000) 4,112$ 2,658$ 2,058$ 2,738$ 471$ Number of units outs tanding 1,552,041 1,270,388 1,069,553 675,682 627,137





and prior not available as Invest Series

was introduced in

2014.



RBC Select Aggressive Growth GIP (continued)


Series 2


RBC GUARANTEED INVESTMENT FUNDS Notes to the Financial Statements December 31, 2017

Page 65 of 73

1. THE FUNDS

RBC Guaranteed Investment Funds (“GIF”) and RBC Guaranteed Investment Portfolios (“GIP”), together referred to as RBC Guaranteed Investment Funds, are segregated funds comprised of the following funds and portfolios: RBC Guaranteed Investment Funds: RBC Canadian Money Market GIF RBC Canadian Short-Term Income GIF RBC Bond GIF RBC PH&N Total Return Bond GIF RBC Global Bond GIF RBC High Yield Bond GIF RBC Balanced GIF RBC PH&N Monthly Income GIF RBC Global Balanced GIF RBC Canadian Dividend GIF RBC Canadian Equity GIF RBC O'Shaughnessy All Canadian Equity GIF RBC PH&N Canadian Income GIF RBC North American Value GIF RBC North American Growth GIF RBC U.S. Dividend GIF RBC U.S. Equity GIF RBC O'Shaughnessy U.S. Value GIF RBC Global Dividend Growth GIF RBC O'Shaughnessy International Equity GIF RBC BlueBay Global Convertible Bond GIF RBC Balanced Growth and Income GIF RBC Global Equity GIF RBC Emerging Markets Dividend GIF RBC Conservative Growth and Income Fund GIF RBC Guaranteed Investment Portfolios: RBC Select Conservative GIP RBC Select Balanced GIP RBC Select Growth GIP RBC Select Aggressive Growth GIP

Both the RBC Guaranteed Investment Funds and RBC Guaranteed Investment Portfolios are referred to in these financial statements as collectively the “Funds” and individually the “Fund”. RBC Life Insurance Company, a related party, is the fund manager (the “Manager”) and sole issuer of the individual insurance contracts for each Fund, and is guarantor of the guarantee provisions contained in these contracts. The Funds invest in underlying mutual funds managed by RBC Global Asset Management Inc. (“RBC GAM”). Both, RBC Life Insurance Company and RBC GAM are wholly owned subsidiaries of Royal Bank of Canada (“RBC”). The Manager’s registered office is located at 6880 Financial Dr., Mississauga, Ontario L5N 7Y5, Canada. Some of the Funds may invest in units of only one underlying mutual fund managed by RBC GAM, while others, referred to in these financial statements as RBC Guaranteed Investment Portfolios, may invest in units of underlying portfolios, which invest in multiple underlying mutual funds, also managed by RBC GAM. The assets of each of the Funds are owned by RBC Life Insurance Company and are segregated from RBC Life Insurance Company’s other assets. The Funds are not separate legal entities, but are separate reporting entities. These financial statements were authorized for issue by the Manager on April 19, 2018.

RBC GUARANTEED INVESTMENT FUNDS

Notes to the audited financial statements – 2017 Page 66 of 73

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The Canadian dollar is the functional and presentation currency of the Funds.

The following is a summary of the significant accounting policies:

a) Classification and recognition of financial instruments

The investments in underlying mutual funds are recorded at fair value on each business date at their published closing net asset value. Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and Change in unrealized gain/loss of investments are calculated on an average cost basis.

Fair Value Through Profit or Loss (“FVTPL”) assets

Financial assets purchased for sale in the near term, and derivatives, are classified as FVTPL by nature.

A financial instrument can be designated as FVTPL under the fair value option on its initial recognition even if the financial instrument was not acquired or incurred principally for the purpose of selling or repurchasing it in the near term. An instrument that is designated as FVTPL must have a reliably measurable fair value and satisfy one of the following criteria: (i) it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities, or recognizing gains and losses on them on a different basis; (ii) it belongs to a group of financial assets or financial liabilities or both that are managed, evaluated, and reported to senior management on a fair value basis in accordance with the risk management strategy, and the Funds can demonstrate that significant financial risks are eliminated or significantly reduced or (iii) there is an embedded derivative in the financial or non-financial host contract and the derivative is not closely related to the host contract.

Financial instruments designated as FVTPL are recorded at fair value and any unrealized gain or loss arising due to changes in fair value is included in Change in unrealized gain/loss of investments. These instruments cannot be reclassified out of the FVTPL category while they are held or issued.

The Funds designate all their investments as FVTPL.

b) Income recognition

Distributions from investments are recorded when declared by the underlying mutual fund. Capital gains (losses) distributions are included in the realized gain (loss) on sale of investments.

c) Net assets attributable to contractholders per unit

Net assets attributable to contractholders per unit is computed by dividing the net assets attributable to a series of units on a business day by the total number of units of the series outstanding on that day.

d) Net income (loss) attributable to contractholders per unit

Net income attributable to contractholders per unit in the Statement of Comprehensive Income represents the increase (decrease) in net assets from operations attributable to the series for the year, divided by the weighted average number of units outstanding at the end of the year.

e) Use of estimates

These financial statements are prepared in accordance with IFRS, and include estimates and assumptions by management that affects the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

f) Expenses of funds

Each Fund is responsible for the payment of the fees and expenses related to the operation of that Fund. Such fees and expenses, which are recorded on an accrual basis, include custodian fees, management fees, insurance fees, legal fees, audit fees, operations and administration fees, bank charges, interest, brokerage on securities transactions and all indirect taxes. As the Funds invest solely in units of the underlying mutual funds, the Funds are not subject to transaction costs pertaining to the purchase, sale or redemption of units.



2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

g) Income taxes

Each Fund is deemed to be an inter-vivos trust under the provisions of the Income Tax Act (Canada) and is deemed to have allocated its income to the contract holders. Each Fund’s net capital gains (losses) are deemed to be those of the contract holders. Accordingly, each Fund is not subject to income tax on its net income, including net realized capital gains for the year.

A fund may elect each year to realize capital gain (loss) for the taxation year, to optimize the allocation of capital gain/(loss) between redeeming and continuing contractholders.

h) Consolidated financial statements

Under IFRS 10, Consolidated Financial Statements, a Fund is required to provide consolidated financial statements if it has control over the entities it invests in. In October 2013, the IASB issued an “Investment Entity” amendment to IFRS 10, which provides an exception to consolidation for an entity that meets the definition of Investment Entity. The Manager has determined that all Funds satisfy the criteria of an Investment Entity.

i) Current assets and Current liabilities

The Funds’ Statement of Financial Position is presented broadly in order of liquidity.

3. FUTURE ACCOUNTING CHANGES

The following IFRS standard has been issued, and will be in effect on January 1, 2018:

IFRS 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and liabilities. It replaces the multiple classifications and measurement models in IAS 39 and is effective for reporting periods beginning on or after January 1, 2018. Classification and measurement of debt assets will be driven by an entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Derivative and equity instruments are measured at FVTPL unless, for equity instruments not held for trading, an irrevocable option is taken to measure at fair value through other comprehensive income.

On adoption of IFRS 9, the Funds’ investment portfolio(s) will continue to be classified at FVTPL. Other financial assets which are held for collection will continue to be measured at amortized cost with no material impact expected from application of the new impairment model introduced in IFRS 9. As a result, the adoption of IFRS 9 is not expected to have a material impact on the Funds’ financial statements.



4. FINANCIAL INSTRUMENTS RISK

The Funds may be exposed to a variety of financial risks. Each of the Fund’s exposures to financial risks is concentrated in its investment holdings. The Schedule of Invested Assets on each Fund’s supplementary information, disclosed alongside the financial statements, presents the details of units held by each Fund as at December 31, 2017 and 2016 and groups the underlying mutual funds by their nature. The Funds do not manage their underlying mutual funds and therefore the detailed quantitative and qualitative risk disclosures, as required by IFRS 7, Financial Instruments: Disclosures, of the underlying mutual funds have not been disclosed. For further information on the financial instruments risk of the underlying mutual fund and the sensitivity to price changes please refer to the financial statements of the underlying mutual funds which are filed on SEDAR. Each of the Fund’s risk management practice includes the monitoring of compliance to investment guidelines. The Fund Manager manages the potential effects of these financial risks on the Funds’ performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Funds’ positions, market events and diversify investment portfolios within the constraints of the investment guidelines. a) Credit risk

Credit risk is the possibility that a borrower, or the counterparty to a derivatives contract, repurchase agreement or reverse repurchase agreement, is unable or unwilling to repay the loan or obligation, either on time or at all. Companies and governments that borrow money, and the debt securities they issue, are rated by specialized rating agencies. Debt securities issued by companies or governments in emerging markets often have higher credit risk (lower rated debt), while debt securities issued by well-established companies or by governments of developed countries tend to have lower credit risk (higher rated debt). A downgrade in an issuer’s credit rating or other adverse news regarding an issuer can reduce a security’s fair value. Lower rated and unrated debt instruments generally offer a better return than higher grade debt instruments, but have the potential for substantial loss. Funds that invest in companies or markets with higher credit risk tend to be more volatile in the short term. However, they may offer the potential of higher returns over the long term. Credit risk arises when an underlying mutual fund invests in fixed income securities. Credit risk is considered as part of the investment decision making process.

For the years ended December 31, 2017 and 2016, the underlying mutual funds only bought and sold investments through brokers which are RBC approved counterparties, thus minimizing the risk of default during settlement.

b) Currency risk

Most underlying mutual funds are valued in Canadian dollars. However, underlying mutual funds that purchase foreign securities may be required to pay for such securities using a foreign currency and receive a foreign currency when they sell them. As a result, changes in the value of the Canadian dollar compared to foreign currencies will affect the value of any foreign securities. For example, if the Canadian dollar rises relative to a foreign currency (like the U.S. dollar or the Euro), the Canadian dollar value of an investment denominated in that foreign currency may decline. This decline may reduce, or even eliminate, any return the Fund has earned on the security. On the other hand, a Fund may also benefit from changes in exchange rates. Currency exposure may increase the volatility of foreign investments relative to Canadian investments. Some underlying mutual funds may hedge (protect against) the risk of changes in foreign currency exchange rates of the underlying assets of the Fund.

For the years ended December 31, 2017 and 2016, as the Funds only invested in Canadian denominated underlying mutual funds, the Funds do not have a direct currency risk exposure.

c) Interest rate risk

If a Fund invests primarily in bonds and other fixed-income securities, the biggest influence on the Fund’s value will be changes in the general level of interest rates. If interest rates fall, the value of the Fund’s units will tend to rise. If interest rates rise, the value of the Fund’s units will tend to fall. Short-term interest rates can have a different influence on a Fund’s value than long-term interest rates. If a Fund invests primarily in bonds and other fixed-income securities with longer-term maturities, the biggest influence on the Fund’s value will be changes in the general level of long-term interest rates. If a Fund invests primarily in bonds and other fixed-income securities with shorter-term maturities, the biggest influence on the Fund’s value will be changes in the general level of shorter-term interest rates. Investors seeking current income should be aware that the level of interest income from a money market fund will fluctuate as short-term interest rates vary.

Interest rate risk arises when the underlying mutual fund invests in interest bearing financial instruments such as a bond. The underlying mutual fund is exposed to the risk that the value of such financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa.

As at December 31, 2017 and 2016, the Schedule of Invested Assets on each Fund's supplementary information, disclosed alongside the financial statements, presents the details of underlying mutual fund units held by each Fund.



4. FINANCIAL INSTRUMENTS RISK (continued)

d) Liquidity risk

Liquidity refers to the speed and ease with which an asset can be sold and converted into cash. Most securities owned by an underlying mutual fund can be sold easily and at a fair price. In highly volatile markets, such as in periods of sudden interest rate changes, certain securities may become less liquid, which means they cannot be sold as quickly or easily. Some securities may be illiquid because of legal restrictions, the nature of the investment, or because of features like guarantees. Another reason for illiquidity is a lack of buyers interested in a particular security or market. Difficulty in selling securities may result in a loss or reduced return for a Fund.

As at December 31, 2017 and 2016, the Funds’ assets were comprised of units of underlying mutual funds which can be redeemed upon request from the issuer on a valuation date. A valuation date occurs every day that the principal exchange is open for trading and a value is available for the assets of the relevant fund. The Toronto Stock Exchange currently is the principal exchange used for purposes of determining the valuation dates.

e) Market risk

Market risk is the risk that the value of investments will fluctuate as a result of changes in market condition. Several factors can influence market trends, such as economic developments, changes in interest rates, political changes, and catastrophic events. As at December 31, 2017 and 2016, the Funds are exposed to the market risk of the underlying mutual funds.




f) The following table shows risk profile of all the Underlying Funds as at December 31, 2017.

T he F und name Underlying M utual F und name F air value

Underlying mutual fund risk expo sure

s ( * )

N umber o f

F unds

Impact o n net assets based o n

5% increase o r decrease

RBC Canadian M oney M arket GIF RBC Canadian M oney M arket Fund 24,543,599$ I, CR 1 1,227,180$

RBC Canadian Short-Term Income GIF RBC Canadian Short-Term Income Fund 6,898,357 I, CR 1 344,918

RBC Bond GIF RBC Bond Fund 21,423,890 I, CR 1 1,071,195

RBC PH&N Total Return Bond GIF RBC PH&N Total Return Bond Fund 7,057,572 I, CR 1 352,879

RBC Global Bond GIF RBC Global Bond Fund 3,053,474 I, CR, C 1 152,674

RBC High Yield Bond GIF RBC High Yield Bond Fund 2,432,247 I, CR 1 121,612

RBC Balanced GIF RBC Balanced Fund 43,944,933 O, C, I, CR, L 1 2,197,247

RBC PH&N M onthly Income GIF RBC PH&N M onthly Income Fund 44,369,529 I, CR, O, C 1 2,218,476

RBC Global Balanced GIF RBC Global Balanced Fund 24,703,096 O, C, I, CR 1 1,235,155

RBC Canadian Dividend GIF RBC Canadian Dividend Fund 184,462,610 O 1 9,223,131

RBC Canadian Equity GIF RBC Canadian Equity Fund 10,774,614 O, L 1 538,731

RBC O'Shaughnessy All Canadian Equity GIF RBC O'Shaughnessy All Canadian Equity Fund 7,927,979 O 1 396,399

RBC PH&N Canadian Income GIF RBC PH&N Canadian Income Fund 6,857,333 O 1 342,867

RBC North American Value GIF RBC North American Value Fund 22,276,158 O, C 1 1,113,808

RBC North American Growth GIF RBC North American Growth Fund 3,666,393 O, C 1 183,320

RBC U.S. Dividend GIF RBC U.S. Dividend Fund 56,032,877 O, C 1 2,801,644

RBC U.S. Equity GIF RBC U.S. Equity Fund 6,297,362 O, C 1 314,868

RBC O'Shaughnessy U.S. Value GIF RBC O'Shaughnessy U.S. Value Fund 16,968,330 O 1 848,417

RBC Global Dividend Growth GIF RBC Global Dividend Growth Fund 24,819,975 O, C 1 1,240,999

RBC O'Shaughnessy International Equity GIF RBC O'Shaughnessy International Equity Fund 6,653,103 O, C 1 332,655

RBC BlueBay Global Convertible Bond GIF BlueBay Global Convertible Bond Fund 472,604 I, CR 1 23,630

RBC Balanced Growth and Income GIF RBC Balanced Growth and Income Fund 64,108,366 I, CR, O, C 1 3,205,418

RBC Global Equity GIF RBC Global Equity Fund 1,733,247 O, C 1 86,662

RBC Emerging M arkets Dividend GIF RBC Emerging M arkets Dividend Fund 2,619,388 O, C 1 130,969

RBC Conservative Growth and Income Fund GIFRBC Conservative Growth and Income Fund 18,061,261 I, O, C, CR 1 903,063

RBC Select Conservative GIP RBC Select Conservative Portfo lio 225,974,313 O, I, CR, C 1 11,298,716

RBC Select Balanced GIP RBC Select Balanced Portfo lio 258,425,757 O, I, CR, C 1 12,921,288

RBC Select Growth GIP RBC Select Growth Portfo lio 87,058,134 O, I, CR, C 1 4,352,907

RBC Select Aggressive Growth GIP RBC Select Aggressive Growth Portfo lio 30,096,981 O, C 1 1,504,849

(*) O = Other Price Risk, I = Interest Price Risk, C = Currency Risk, L = Liquidity Risk and CR = Credit Risk




g) The following table shows risk profile of all the Underlying Funds as at December 31, 2016.

T he F und name Underlying M utual F und name F air value

Underlying mutual fund risk expo sure

s ( * )

N umber o f

F unds

Impact o n net assets based o n

5% increase o r decrease

RBC Canadian M oney M arket GIF RBC Canadian M oney M arket Fund 24,900,024$ I, CR 1 1,245,001$

RBC Canadian Short-Term Income GIF RBC Canadian Short-Term Income Fund 6,928,506 I, CR 1 346,425

RBC Bond GIF RBC Bond Fund 24,646,703 I, CR 1 1,232,335

RBC PH&N Total Return Bond GIF RBC PH&N Total Return Bond Fund 10,236,835 I, CR 1 511,842

RBC Global Bond GIF RBC Global Bond Fund 3,646,484 I, CR, C 1 182,324

RBC High Yield Bond GIF RBC High Yield Bond Fund 1,692,169 I, CR 1 84,608

RBC Balanced GIF RBC Balanced Fund 38,136,250 O, C, I, CR, L 1 1,906,813

RBC PH&N M onthly Income GIF RBC PH&N M onthly Income Fund 40,514,407 I, CR, O, L 1 2,025,720

RBC Global Balanced GIF RBC Global Balanced Fund 17,058,104 O, C, I, CR 1 852,905

RBC Canadian Dividend GIF RBC Canadian Dividend Fund 172,351,648 O 1 8,617,582

RBC Canadian Equity GIF RBC Canadian Equity Fund 8,903,740 O, L 1 445,187

RBC O'Shaughnessy All Canadian Equity GIF RBC O'Shaughnessy All Canadian Equity Fund 8,208,597 O 1 410,430

RBC PH&N Canadian Income GIF RBC PH&N Canadian Income Fund 5,701,777 O, L 1 285,089

RBC North American Value GIF RBC North American Value Fund 12,735,621 O, C, L 1 636,781

RBC North American Growth GIF RBC North American Growth Fund 2,459,283 O, C 1 122,964

RBC U.S. Dividend GIF RBC U.S. Dividend Fund 44,385,009 O, C 1 2,219,250

RBC U.S. Equity GIF RBC U.S. Equity Fund 6,128,023 O, C 1 306,401

RBC O'Shaughnessy U.S. Value GIF RBC O'Shaughnessy U.S. Value Fund 13,178,519 O 1 658,926

RBC Global Dividend Growth GIF RBC Global Dividend Growth Fund 15,387,116 O, C 1 769,356

RBC O'Shaughnessy International Equity GIF RBC O'Shaughnessy International Equity Fund 5,555,582 O, C 1 277,779

RBC BlueBay Global Convertible Bond GIF BlueBay Global Convertible Bond Fund 392,888 I, CR 1 19,644

RBC Balanced Growth and Income GIF RBC Balanced Growth and Income Fund 19,739,306 I, CR, O, C 1 986,965

RBC Global Equity GIF RBC Global Equity Fund 349,252 O, C 1 17,463

RBC Emerging M arkets Dividend GIF RBC Emerging M arkets Dividend Fund 509,563 O, C 1 25,478

RBC Conservative Growth and Income Fund GIFRBC Conservative Growth and Income Fund 4,412,295 I, O, CR 1 220,615

RBC Select Conservative GIP RBC Select Conservative Portfo lio 200,526,148 O, I, CR, C 1 10,026,307

RBC Select Balanced GIP RBC Select Balanced Portfo lio 195,814,545 O, I, CR, C 1 9,790,727

RBC Select Growth GIP RBC Select Growth Portfo lio 66,941,392 O, I, CR, C 1 3,347,070

RBC Select Aggressive Growth GIP RBC Select Aggressive Growth Portfo lio 20,635,799 O, I, C 1 1,031,790 (*) O = Other Price Risk, I = Interest Price Risk, C = Currency Risk, L = Liquidity Risk and CR = Credit Risk



5. FINANCIAL RISK MANAGEMENT

The Funds use a fund-of-fund structure to invest in underlying mutual funds exclusively managed by RBC GAM. As part of the underlying mutual fund selection process for the Funds, the existing mutual funds line-up are reviewed at least annually by RBC Life Insurance Company to identify any product gaps that result from the changing needs of the market and distribution partners.

The screening criteria may include qualitative as well as quantitative measures of performance and must satisfy internal risk management standards.

Ongoing monitoring throughout the year by the Funds’ management includes monitoring any organizational or fund changes announced by underlying mutual fund managers or news items that may affect organizational stability or Funds performance as well as analysis on the Funds’ rate of return to verify that it is appropriate compared to the underlying mutual fund or fund’s benchmark.

Included in the ongoing due diligence process, managers of the underlying mutual funds are required to verify that the Funds have adhered to the Funds’ Investment Policies and that the underlying mutual funds are managed in accordance with their investment objectives and strategies. The underlying mutual funds could be exposed to specific risks which may primarily arise because the value of the investments are affected by changes in the local and global economies including interest rates, foreign exchange rates, financial markets and company-specific news. The underlying mutual funds’ manager has developed policies and procedures to manage the fund-specific risks. Fund portfolios are reviewed on a regular basis by RBC Life Insurance Company to ensure that the existing asset mix and weightings continue to meet the current and future needs of the Funds.

6. CAPITAL MANAGEMENT

The Funds have no externally imposed capital requirements. The relevant capital movements are disclosed in the Statement of Changes in Net Assets Attributable to Contractholders. To manage risks, the Funds’ Manager uses internal guidelines, maintains a governance structure that oversees each Fund’s investment activities, and monitors compliance with the Fund’s investment strategies, internal guidelines and securities regulations.

7. MANAGEMENT FEES AND INSURANCE FEES

Each Fund pays a management fee and an insurance fee for the management of the Fund and for providing the benefits under the contracts. Management and insurance fees differ by Fund and between Series and are stated as an annualized percentage of the daily fair value of the net assets of the Fund attributed to that Series.

Management fees and insurance fees are calculated and accrued at the end of each valuation date using a daily factor of the annualized management fees and insurance fee percentages. Management fees and insurance fees are reimbursed monthly to the Funds’ Manager.

8. OTHER EXPENSES ABSORBED BY THE MANAGER

In addition to the management and insurance fees, the Funds also bear all operating and administrative expenses including legal and audit fees.

Management fees and other administrative expenses charged to the Funds are subject to the Harmonized Sales Tax (HST) in Ontario, British Columbia, Nova Scotia, New Brunswick and Newfoundland and Labrador. Based on the rules and guidance issued by the Department of Finance, the effective HST rate will reflect the tax rates that are applicable in the Provinces/Territories where the Fund’s contractholders reside. Since each Fund will have contractholders in more than one Province/Territory, the blended rate will be a weighted average based on the tax rate in each Province/Territory and the value of contractholder assets. Therefore the blended rate is likely to be different for each Fund.

The Manager may absorb/waive certain expenses of the Funds. The waiver may be terminated by the Manager at any time in accordance with the Information Folder. Included in Due from RBC Life Insurance Company, in the Statement of Financial Position, are balances of expenses absorbed by the Manager.

9. SALES AND REDEMPTIONS OF UNITS

Units of the Fund series, which are redeemable at the option of the contractholder, do not have any nominal value or par value and the number of units, which may be issued, is unlimited. Units are issued or redeemed on a daily basis at the net asset value per unit next determined after the purchase order or redemption request.

The units of the Funds are classified as financial liabilities under IAS 32 as the Funds are contractually obligated to repurchase or redeem them for cash or another financial asset.



10. FAIR VALUE MEASUREMENT

Investments recorded at fair value on the Funds’ Statement of Financial Position are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined in accordance with IFRS 13 and directly related to the amount of subjectivity associated with inputs to fair valuation of these assets, are as follows:

Level 1 – Quoted prices are available in active markets for identical investments as of the reporting date. Quoted price for these investments are not adjusted even in situations where a large position and a sale could reasonably impact the quoted price.

Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Level 3 – Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation.

As at December 31, 2017 and 2016, the investments in underlying mutual fund by each of the Fund’s are classified as Level 1.

11. RELATED PARTY TRANSACTIONS

For the years ended December 31, 2017 and 2016, management fees and insurance fees were paid to RBC Life Insurance Company as disclosed in Note 7 and presented separately in the Statement of Comprehensive Income of each Fund. As at December 31, 2017 and 2016, the management fees and insurance fees payable to RBC Life Insurance Company are included in accrued expenses in the Statement of Financial Position of each Fund.

For the years ended December 31, 2017 and 2016, the Funds paid administrative expenses to RBC Investor Services.

For the years ended December 31, 2017 and 2016, the Funds did not pay any expenses to RBC GAM.

RBC Insurance®, through its operating entities, including RBC Life Insurance Company, provides a wide range of creditor, life, health, travel, home, auto and reinsurance products to more than five million North American clients. As a leading provider of individual living benefits and life insurance products in Canada, RBC Life Insurance Company offers a comprehensive portfolio of individual and group life and health insurance solutions, including term and universal life insurance, group benefits, disability, critical illness, and long term care insurance as well as segregated funds and payout annuities.

For more information, please visit www.rbcinsurance.com

® / ™ Trademark(s) of Royal Bank of Canada. Used under licence. VPS101287 102863 (04/2018)

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