AUDITED FINANCIAL STATEMENTS - Personal Insurance · 2017-06-04 · We have audited the accompanying financial statements of the RBC Guaranteed Investment Funds, which comprise the

AUDITED FINANCIAL STATEMENTSDecember 31, 2011

RBC Life Insurance Company

RBC GuaRanteed Investment Funds

RBC GUARANTEED INVESTMENT FUNDS Table of Contents December 31, 2011

Page Independent Auditor’s Report 1 - 2

Financial Statements and Supplementary Information

Individual Funds and Portfolios 3 - 58

Notes to the Financial Statements 59 - 64

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Deloitte & Touche LLP Brookfield Place 181 Bay Street Suite 1400 Toronto ON M5J 2V1 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca

Independent Auditor’s Report To the Unitholders of 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 Balanced GIF RBC PH&N Monthly Income GIF RBC Global Balanced GIF (formerly, RBC Balanced Growth GIF) RBC Canadian Dividend GIF RBC Canadian Equity GIF RBC O'Shaughnessy All Canadian Equity GIF RBC DS Canadian Focus Fund GIF RBC North American Growth GIF RBC U.S. Dividend GIF (formerly, RBC North American Dividend GIF) RBC U.S. Equity GIF RBC O'Shaughnessy U.S. Value GIF RBC U.S. Mid-Cap Equity GIF RBC Global Dividend Growth GIF RBC O'Shaughnessy International Equity GIF Portfolios: RBC Select Conservative GIP RBC Select Balanced GIP RBC Select Growth GIP RBC Select Aggressive Growth GIP RBC DS Balanced Global GIP RBC DS Growth Global GIP (collectively referred to as the “RBC Guaranteed Investment Funds” ) We have audited the accompanying financial statements of the RBC Guaranteed Investment Funds, which comprise the statement of net assets as at December 31, 2011, the statements of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory information.

Page 2

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the RBC Guaranteed Investment Funds as at December 31, 2011, and the results of their operations and the changes in their net assets for the year then ended in accordance with Canadian generally accepted accounting principles. Unaudited Information We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of the Financial Highlights and the Top 25 Holdings of the Underlying Fund contained in the Supplementary Information of the RBC Guaranteed Investment Funds.

Chartered Accountants Licensed Public Accountants March 1, 2012

Page 3 of 64

RBC GUARANTEED INVESTMENT FUNDS Financial Statements December 31, 2011

Statement of Operations Year ended Year ended

December 31, 2011 December 31, 2010Income

Distribution from underlying fund 92,691$ 46,725$ 92,691 46,725

ExpensesManagement fees 6,163 4,940 Insurance fees 8,805 7,058 Other administrative expenses 18,139 21,760

33,107 33,758

Net income 59,584$ 12,967$

Net income per unit 0.08$ 0.02$

Statement of Net Assets As at As atDecember 31, 2011 December 31, 2010

AssetsInvestments in underlying fund at fair value 9,451,151$ 5,660,970$ Cash 280,486 11,471 Accrued income distribution from investments 7,500 181 Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 12,892 12,488

9,753,439 5,686,478

LiabilitiesManagement fee payable 595 750 Insurance fee payable 851 1,071 Accounts payable and accrued liabilities 21,739 26,058

23,185 27,879

Net assets 9,730,254$ 5,658,599$

Net asset value per unit 10.90$ 10.82$

Statement of Changes in Net Assets Year ended Year ended

December 31, 2011 December 31, 2010

Net assets, beginning of the year 5,658,599$ 7,256,811$ Premium deposits 11,555,069 8,011,226 Net income 59,584 12,967

17,273,252 15,281,004 Less

Withdrawals 7,542,998 9,622,405 7,542,998 9,622,405

Net assets, end of the year 9,730,254$ 5,658,599$

Number of units outstanding 892,812 523,210

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

RBC Canadian Money Market GIF

Page 4 of 64

RBC GUARANTEED INVESTMENT FUNDS Supplementary Information December 31, 2011

Management fees and insurance fees 2011

(also see note 7) 2010

Annualized MER cap % (1)

Expense before waiver

MER before waiver %

Expense after waiver

MER after waiver %

Other expenses absorbed by the manager 2011 0.42 104,163$ 1.32 33,107$ 0.42 (also see note 8) 2010 0.42 111,840 1.67 33,758 0.50

Balance as at January 1st

Purchases during the year

Redemptions during the year

Balance as at December 31st

Sales and redemption of units 2011 523,210 1,064,022 (694,420) 892,812 (also see note 9) 2010 672,602 742,343 (891,735) 523,210

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2011 9,451,151$ -$ -$ 9,451,151$ value (also see note 10) 2010 5,660,970 - - 5,660,970

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Money Market Fund, 2011 945,115 9,451,151$ 1.1716 9,451,151$ 10.00$ Series O 2010 566,097 5,660,970 2.7105 5,660,970 10.00

Financial highlights (Unaudited) 2011 2010 2009 2008 2007 Value per unitDistributions: (*)

From net income 0.12$ 0.02$ 0.02$ 0.16$ 0.07$ From realized gains - - - - - Return of capital - - - - - Total annual distributions 0.12$ 0.02$ 0.02$ 0.16$ 0.07$ Net Asset Value at December 31 10.90$ 10.82$ 10.79$ 10.77$ 10.47$

Ratios and supplemental dataNet assets ($ '000) 9,730$ 5,659$ 7,257$ 8,145$ 8,743$ Number of units outstanding 892,812 523,210 672,602 756,577 834,783 Management expense ratio (1) 0.42% 0.50% 1.00% 1.10% 1.10%Portfolio turnover rate of the underlying fund (2) - - - - -

(*) Distributions were reinvested in the Fund.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsBank of Montreal 1.201% Jun 5 12 3.2% Diversified Trust 1.169% Mar 23 12 1.6%Canadian Imperial Bank of Commerce 1.150% Feb 13 12 3.0% Diversified Trust 1.151% Feb 6 12 1.6%Darwin Receivables Trust - Senior Notes 1.139% Jan 4 12 2.9% Prime Trust - Senior Notes 1.140% Jan 5 12 1.6%Toronto-Dominion Bank 1.200% Feb 13 12 2.8% Canadian Imperial Bank of Commerce 1.249% Mar 7 12 1.6%Bay Street Funding Trust - Class A 1.128% Jan 23 12 2.5% Fusion Trust 1.200% Feb 16 12 1.6%Toronto-Dominion Bank 1.201% Jul 12 12 2.3% Bank of America Corp. 1.700% Apr 12 12 1.6%Canadian Imperial Bank of Commerce 1.141% Mar 26 12 2.2% Bank of Nova Scotia 1.150% Mar 15 12 1.5%Reliant Trust 1.150% Feb 22 12 2.2% National Bank of Canada 1.460% Jul 6 12 1.4%HSBC Bank Canada 1.150% Mar 19 12 2.2% Enbridge Inc. 1.134% Jan 18 12 1.4%Zeus Receivables Trust - Senior Notes 1.142% Jan 11 12 1.9% SOUND Trust 1.170% Mar 22 12 1.3%Toronto-Dominion Bank 1.200% Aug 15 12 1.9% Province of Alberta 1.279% Mar 15 12 1.3%Bank of Nova Scotia 1.180% Feb 7 12 1.9% HSBC Bank Canada 1.096% Jan 3 12 1.3%Canadian Imperial Bank of Commerce 1.306% Sep 10 12 1.6% Total % of top 25 holdings 48.4%

RBC Canadian Money Market GIF

(1) The management expense ratio ("MER") is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (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 once in the course 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.

1.00 0.10 (0.60)Annual Management Fee % Annual Insurance Fee (Limit) %

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.

1.00 0.10 (0.60)

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Distribution from underlying fund 199,085$ 175,285$ Realized gains on sale of investments 406 9,771 Increase (decrease) in unrealized appreciation of investments 51,595 (33,788)

251,086 151,268 Expenses

Management fees 40,543 32,418 Insurance fees 8,688 6,947 Other administrative expenses 46,825 39,514

96,056 78,879

Net income 155,030$ 72,389$



AssetsInvestments in underlying fund at fair value 6,708,165$ 4,630,710$ Cash - 5,637 Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 5,242 6,653

6,714,817 4,644,368

LiabilitiesBank indebtedness 23,382 - Management fee payable 3,841 5,915 Insurance fee payable 823 1,268 Accounts payable and accrued liabilities 17,796 22,615

45,842 29,798

Net assets 6,668,975$ 4,614,570$





8,327,577 6,261,216 Less

Withdrawals 1,658,602 1,646,646 1,658,602 1,646,646




RBC Canadian Short-Term Income GIF

Page 6 of 64






MER before waiver %


MER after waiver %






Sales and redemption of units 2011 410,076 311,456 (145,963) 575,569 (also see note 9) 2010 306,097 250,782 (146,803) 410,076


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Short-Term Income Fund, 2011 606,454 6,668,089$ 0.3578 6,708,165$ 11.06$ Series O 2010 422,803 4,642,229 0.3158 4,630,710 10.95


From net income 0.18$ 0.24$ 0.33$ 0.39$ 0.12$ From realized gains - 0.02 - - (0.03) Return of capital - - - - - Total annual distributions 0.18$ 0.26$ 0.33$ 0.39$ 0.09$ Net Asset Value at December 31 11.59$ 11.25$ 11.05$ 10.80$ 10.21$

Ratios and supplemental dataNet assets ($ '000) 6,669$ 4,615$ 3,384$ 2,622$ 44$ Number of units outstanding 575,569 410,076 306,097 242,882 4,350 Management expense ratio (1) 1.82% 1.79% 1.75% 1.75% 1.75%Portfolio turnover rate of the underlying fund (2) 50.58% 81.96% 41.06% 51.18% 68.70%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCanada Housing Trust No. 1 4.550% Dec 15 12 5.0% Canada Housing Trust No. 1 2.750% Dec 15 15 1.5%Cash & Cash Equivalents 4.4% Canada Housing Trust No. 1 2.700% Dec 15 13 1.5%Province of Ontario 3.250% Sep 8 14 4.1% Royal Bank of Canada 4.350% Jun 15 20 1.5%Government of Canada 2.750% Sep 1 16 3.1% Province of Ontario 3.200% Sep 8 16 1.4%Government of Canada 2.000% Jun 1 16 2.6% Wells Fargo Financial Canada Corp. 3.970% Nov 3 14 1.4%Financement-Quebec 3.250% Jun 1 14 2.3% Province of Quebec 4.500% Dec 1 17 1.3%Toronto-Dominion Bank 4.854% Feb 13 13 2.2% Province of New Brunswick 4.300% Dec 3 15 1.1%Province of Ontario 4.300% Mar 8 17 2.1% Bell Canada 3.600% Dec 2 15 1.1%Canadian Imperial Bank of Commerce 3.050% Jun 3 13 2.1% Bank of Nova Scotia 3.350% Nov 18 14 1.1%Bank of Montreal 3.930% Apr 27 15 2.1% Canadian Imperial Bank of Commerce 3.300% Nov 19 14 1.0%Province of Quebec 5.250% Oct 1 13 2.0% Bank of Nova Scotia 4.990% Mar 27 18 1.0%Bank of Nova Scotia 5.040% Apr 8 13 1.9% Shaw Communications Inc. 6.500% Jun 2 14 1.0%Province of Ontario 5.375% Dec 2 12 1.6% Total % of top 25 holdings 50.4%

RBC Canadian Short-Term Income GIF




1.60 0.15 (0.65)

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Distribution from underlying fund 275,372$ 237,404$ Realized gains on sale of investments 62,439 51,613 Increase in unrealized appreciation of investments 306,094 103,363

643,905 392,380 Expenses


125,384 98,386

Net income 518,521$ 293,994$



AssetsInvestments in underlying fund at fair value 9,520,594$ 6,425,639$ Cash 36,205 - Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 2,820 6,559

9,561,029 6,433,566

LiabilitiesBank indebtedness - 105,790 Management fee payable 5,847 8,121 Insurance fee payable 1,271 1,766 Accounts payable and accrued liabilities 20,206 24,658

27,324 140,335

Net assets 9,533,705$ 6,293,231$





11,866,402 8,319,155 Less

Withdrawals 2,332,697 2,025,924 2,332,697 2,025,924




RBC Bond GIF

Page 8 of 64






MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Bond Fund, Series O 2011 1,405,565 9,034,249$ 0.1663 9,520,594$ 6.77$

2010 1,001,518 6,254,387 0.1221 6,425,639 6.42


From net income 0.20$ 0.26$ 0.31$ 0.31$ 0.16$ From realized gains - 0.12 - (0.01) 0.03 Return of capital - - - - - Total annual distributions 0.20$ 0.38$ 0.31$ 0.30$ 0.19$ Net Asset Value at December 31 12.84$ 11.92$ 11.28$ 10.22$ 10.27$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsProvince of Ontario 4.200% Jun 2 20 3.6% Government of Canada 1.000% Feb 1 15 1.0%Province of Ontario 4.650% Jun 2 41 3.1% Province of Quebec 4.500% Dec 1 19 1.0%Province of Ontario 6.500% Mar 8 29 2.9% Toronto-Dominion Bank 4.779% Dec 14 16 1.0%Province of Ontario 4.700% Jun 2 37 2.8% Bank of Nova Scotia 3.350% Nov 18 14 1.0%Province of Ontario 4.000% Jun 2 21 2.7% Toronto-Dominion Bank 5.480% Apr 2 20 1.0%Canada Housing Trust No. 1 3.350% Dec 15 20 2.7% Royal Bank of Canada 3.360% Jan 11 16 1.0%Province of Ontario 4.600% Jun 2 39 2.3% Province of Ontario 4.300% Mar 8 17 0.8%Government of Canada 3.250% Jun 1 21 1.5% Canadian Imperial Bank of Commerce 3.400% Jan 14 16 0.8%Cash & Cash Equivalents 1.3% Province of Ontario 4.400% Jun 2 19 0.7%Province of Quebec 5.000% Dec 1 38 1.3% Canadian Imperial Bank of Commerce 3.300% Nov 19 14 0.7%Canadian Imperial Bank of Commerce 4.110% Apr 30 20 1.1% United States 10-Year Note Future, March 2012 -2.3%Royal Bank of Canada 4.350% Jun 15 20 1.1% United States 5-Year Note Future, March 2012 -3.3%Government of Canada 5.750% Jun 1 29 1.0% Total % of top 25 holdings 30.8%

RBC Bond GIF




1.60 0.15 (0.65)

Page 9 of 64


Statement of Operations Period fromYear ended November 29 to


Distribution from underlying fund 133,912$ 234$ Realized gains on sale of investments 24,761 479 Increase (decrease) in unrealized appreciation of investments 75,925 (476)

234,598 237 Expenses

Management fees 18,123 18 Insurance fees 3,829 3 Other administrative expenses 20,519 21

42,471 42

Net income 192,127$ 195$



AssetsInvestments in underlying fund at fair value 6,925,939$ 32,120$ Cash 404,777 - Prepaid expenses 1,410 1,481 Due from RBC Life Insurance Company 3,655 3,574

7,335,781 37,175

LiabilitiesManagement fee payable 4,125 18 Insurance fee payable 871 4 Accounts payable and accrued liabilities 412,010 3,527

417,006 3,549

Net assets 6,918,775$ 33,626$


Statement of Changes in Net Assets Period fromYear ended November 29 to


Net assets, beginning of the year 33,626$ -$ Premium deposits 6,839,152 33,431 Net income 192,127 195

7,064,905 33,626 Less

Withdrawals 146,130 - 146,130 -

Net assets, end of the year 6,918,775$ 33,626$



RBC PH&N Total Return Bond GIF

Page 10 of 64






MER before waiver %


MER after waiver %

Other expenses absorbed by the manager 2011 1.86 79,682$ 3.48 42,471$ 1.85 (also see note 8) 2010 1.89 3,617 161.10 42 1.92





Sales and redemption of units 2011 3,346 655,812 (13,987) 645,171 (also see note 9) 2010 - 3,346 - 3,346

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2011 6,925,939$ -$ -$ 6,925,939$ value (also see note 10) 2010 32,120 - - 32,120

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitPH&N Total Return Bond Fund, Series O 2011 599,316 6,850,488$ 0.5543 6,925,939$ 11.56$

2010 2,884 32,595 0.0032 32,120 11.14


From net income 0.14$ 0.06$ N/A N/A N/A From realized gains 0.04 0.14 N/A N/A N/A Return of capital - - N/A N/A N/ATotal annual distributions 0.18$ 0.20$ N/A N/A N/A

Net Asset Value at December 31 10.72$ 10.05$ N/A N/A N/A

Ratios and supplemental dataNet assets ($ '000) 6,919$ 34$ N/A N/A N/ANumber of units outstanding 645,171 3,346 N/A N/A N/AManagement expense ratio (1) 1.85% 1.92% N/A N/A N/APortfolio turnover rate of the underlying fund (2) 123.09% 136.37% N/A N/A N/A


The comparative data for the year 2009 and prior not available as the Fund was introduced on November 2010.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 12.5% Province of Ontario 5.850% Mar 8 33 1.7%Province of Ontario 7.600% Jun 2 27 10.1% Bank of Montreal 2.960% Aug 2 16 1.7%Province of Ontario 4.650% Jun 2 41 3.2% Master Credit Card Trust 5.297% Aug 21 12 1.5%Phillips, Hager & North High Yield Bond Fund 2.9% Wells Fargo Financial Canada Corp. 5.200% Sep 13 12 1.5%Morgan Stanley CAD 4.500% Feb 23 12 2.7% Province of Ontario 6.200% Jun 2 31 1.5%Province of Ontario 8.100% Sep 8 23 2.2% Province of Ontario 4.200% Jun 2 20 1.4%Government of Canada 3.250% Jun 1 21 2.1% Golden Credit Card Trust 3.510% May 15 16 1.4%Province of Quebec 6.250% Jun 1 32 2.0% Province of Ontario 8.500% Dec 2 25 1.0%Province of Ontario 6.500% Mar 8 29 1.9% Ontario Electricity Financial Corp. 8.250% Jun 22 26 1.0%RBC Subordinated Notes Trust 4.580% Apr 30 17 1.8% American Express Canada Credit Corp. 5.900% Apr 2 13 0.9%Toronto-Dominion Bank 5.382% Nov 1 17 1.8% Royal Bank of Canada 2.680% Dec 8 16 0.9%Bank of Nova Scotia 6.000% Oct 3 18 1.8% Bankers Acceptance Future, September 2012 -4.4%Province of Ontario 4.600% Jun 2 39 1.8% Total % of top 25 holdings 56.9%


RBC PH&N Total Return Bond GIF

(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 once in the course 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.

(1) The management expense ratio ("MER") is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period.

Annual Management Fee %1.601.60

Annual Insurance Fee (Limit) %0.15 (0.65)0.15 (0.65)

Page 11 of 64


Statement of Operations Year ended Year endedDecember 31, 2011 December 31, 2010

IncomeDistribution from underlying fund 23,600$ 25,970$ Realized gains on sale of investments 7,474 19,188 Increase (decrease) in unrealized appreciation of investments 11,114 (1,846)

42,188 43,312 Expenses Management fees 6,504 7,183 Insurance fees 2,268 2,506 Other administrative expenses 6,265 7,408

15,037 17,097

Net income 27,151$ 26,215$



AssetsInvestments in underlying fund at fair value 654,284$ 703,008$ Cash 728 3,628 Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 9,881 9,795

666,303 717,799

Liabilities Management fee payable 503 1,064 Insurance fee payable 177 373 Accounts payable and accrued liabilities 18,387 19,534

19,067 20,971

Net assets 647,236$ 696,828$


Statement of Changes in Net Assets Year ended Year endedDecember 31, 2011 December 31, 2010

Net assets, beginning of the year 696,828$ 712,255$ Premium deposits 123,307 393,842 Net income 27,151 26,215

847,286 1,132,312 Less

Withdrawals 200,050 435,484 200,050 435,484

Net assets, end of the year 647,236$ 696,828$



RBC Global Bond GIF

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MER before waiver %


MER after waiver %







Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2011 654,284$ -$ -$ 654,284$ value (also see note 10) 2010 703,008 - - 703,008

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Global Bond Fund, Series O 2011 61,348 629,383$ 0.0387 654,284$ 10.67$

2010 67,755 689,221 0.0463 703,008 10.38


From net income 0.15$ 0.14$ 0.29$ 0.33$ - From realized gains - 0.51 0.03 (0.08) 0.23 Return of capital - - - - - Total annual distributions 0.15$ 0.65$ 0.32$ 0.25$ 0.23 Net Asset Value at December 31 11.59$ 11.13$ 10.85$ 10.56$ 10.22$

Ratios and supplemental dataNet assets ($ '000) 647$ 697$ 712$ 1,591$ 5$ Number of units outstanding 55,859 62,618 65,658 150,628 500 Management expense ratio (1) 2.21% 2.17% 2.10% 2.10% 2.10%Portfolio turnover rate of the underlying fund (2) 94.29% 61.64% 42.69% 51.50% 53.47%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsJapan 10-Year Bond Future, March 2012 6.6% Japan Government Five Year JPY 0.800% Jun 20 23 1.7%United Kingdom Gilt GBP 4.000% Mar 7 22 4.0% Eksportfinans ASA JPY 1.600% Mar 20 14 1.6%United States Treasury 0.250% Nov 30 13 2.8% Bundesobligation EUR 2.500% Oct 10 14 1.4%Cash & Cash Equivalents 2.4% Deutsche Bundesrepublik EUR 5.500% Jan 4 31 1.4%Japan Government Twenty Year JPY 1.600% Jun 20 30 2.3% European Union EUR 2.500% Dec 4 15 1.4%Japan Government Twenty Year JPY 2.100% Jun 20 29 2.1% Deutsche Bundesrepublik EUR 4.000% Jan 4 18 1.4%Province of Ontario USD 4.100% Jun 16 14 2.1% Netherlands Government EUR 4.500% Jul 15 17 1.3%United States Treasury 1.750% Mar 31 14 2.1% United States Treasury 4.500% Aug 15 39 1.3%Buoni Poliennali Del Tesoro EUR 5.000% Aug 1 39 2.1% Development Bank of Japan JPY 2.300% Mar 19 26 1.2%Deutsche Bundesrepublik EUR 3.000% Jul 4 20 2.0% France O.A.T. EUR 3.500% Apr 25 26 1.2%European Investment Bank EUR 2.500% Jul 15 15 1.9% Japan Government Ten Year JPY 1.700% Sep 20 17 1.1%United Kingdom Gilt GBP 4.250% Sep 7 39 1.9% DEPFA ACS Bank JPY 1.650% Dec 20 16 1.1%European Investment Bank JPY 1.400% Jun 20 17 1.9% Total % of top 25 holdings 50.3%

RBC Global Bond GIF




1.80 0.30 (0.80)

Page 13 of 64



IncomeDistribution from underlying fund 2,914$ 2,455$ Realized gains on sale of investments 603,969 148,920 Increase (decrease) in unrealized appreciation of investments (929,489) 2,788,332

(322,606) 2,939,707 Expenses


719,444 687,290

Net income (loss) (1,042,050)$ 2,252,417$

Net income (loss) per unit (0.41)$ 0.86$


AssetsInvestments in underlying fund at fair value 25,431,071$ 28,709,615$ Prepaid expenses 1,410 1,368

25,432,481 28,710,983

LiabilitiesBank indebtedness 285,169 21,986 Management fee payable 29,411 66,612 Insurance fee payable 6,894 15,613 Accounts payable and accrued liabilities 43,590 62,333

365,064 166,544

Net assets 25,067,417$ 28,544,439$


Statement of Changes in Net assets Year ended Year endedDecember 31, 2011 December 31, 2010

Net assets, beginning of the year 28,544,439$ 23,720,405$ Premium deposits 4,095,316 7,890,759 Net (loss) income (1,042,050) 2,252,417

31,597,705 33,863,581 Less

Withdrawals 6,530,288 5,319,142 6,530,288 5,319,142


Number of units outstanding 2,425,702 2,655,511


RBC Balanced GIF

Page 14 of 64






MER before waiver %


MER after waiver %






Sales and redemption of units 2011 2,655,511 385,486 (615,295) 2,425,702 (also see note 9) 2010 2,394,308 786,591 (525,388) 2,655,511


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Balanced Fund, Series O 2011 1,943,796 23,595,882$ 62.5402 25,431,071$ 13.08$

2010 2,154,309 25,944,937 63.8561 28,709,615 13.33


From net income -$ -$ -$ -$ 0.66$ From realized gains - - (0.05) (0.57) - Return of capital - - - - - Total annual distributions -$ -$ (0.05)$ (0.57)$ 0.66$ Net Asset Value at December 31 10.33$ 10.75$ 9.91$ 8.75$ 10.96$

Ratios and supplemental dataNet assets ($ '000) 25,067$ 28,544$ 23,720$ 14,527$ 7,171$ Number of units outstanding 2,425,702 2,655,511 2,394,308 1,660,159 654,021 Management expense ratio (1) 2.66% 2.61% 2.55% 2.55% 2.55%Portfolio turnover rate of the underlying fund (2) 102.06% 82.19% 83.17% 68.60% 55.04%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 5.5% Financement-Quebec 4.250% Mar 1 14 1.1%RBC Emerging Markets Fund 3.3% Canadian Natural Resources Ltd. 1.0%Government of Canada 2.250% Aug 1 14 2.5% Canadian National Railway Co. 1.0%Royal Bank of Canada 2.0% Government of Canada 1.500% Jun 1 12 0.9%Toronto-Dominion Bank 1.8% Government of Canada 2.000% Dec 1 14 0.9%Province of Ontario 4.650% Jun 2 41 1.6% Province of Manitoba 6.500% Sep 22 17 0.9%Province of Quebec 4.500% Dec 1 17 1.5% Goldcorp Inc. 0.9%Province of Ontario 4.300% Mar 8 17 1.5% Potash Corporation of Saskatchewan Inc. 0.9%Province of Ontario 9.500% Jul 13 22 1.4% Province of Quebec 4.500% Dec 1 20 0.8%Bank of Nova Scotia 1.3% Bank of Montreal 0.8%Suncor Energy Inc. 1.2% Province of Ontario 5.850% Mar 8 33 0.8%Canada Housing Trust No. 1 3.350% Dec 15 20 1.2% Canadian Imperial Bank of Commerce 0.7%Barrick Gold Corp. 1.2% Total % of top 25 holdings 36.7%

RBC Balanced GIF




2.25 0.30 (0.80)

Page 15 of 64


Statement of Operations Period fromYear ended November 29 to


Distribution from underlying fund 433,216$ 2,048$ Realized loss on sale of investments (14,888) - Increase (decrease) in unrealized appreciation of investments (374,355) 4,788

43,973 6,836 Expenses

Management fees 115,159 462 Insurance fees 27,638 111 Other administrative expenses 76,495 306

219,292 879

Net income (loss) (175,319)$ 5,957$



AssetsInvestments in underlying fund at fair value 15,583,296$ 636,395$ Cash 8,558 - Prepaid expenses 1,410 1,481 Due from RBC Life Insurance Company - 3,289

15,593,264 641,165

LiabilitiesManagement fee payable 17,019 461 Insurance fee payable 4,085 111 Accounts payable and accrued liabilities 16,403 3,528

37,507 4,100

Net assets 15,555,757$ 637,065$

Net asset value per unit 10.07 10.12

Statement of Changes in Net Assets Period fromYear ended November 29 to


Net assets, beginning of the year 637,065$ -$ Premium deposits 16,081,932 633,108 Net income (loss) (175,319) 5,957

16,543,678 639,065 Less

Withdrawals 987,921 2,000 987,921 2,000


Number of units outstanding 1,544,216 62,958


RBC PH&N Monthly Income GIF

Page 16 of 64






MER before waiver %


MER after waiver %

Other expenses absorbed by the manager 2011 2.62 219,292$ 2.62 219,292$ 2.62 (also see note 8) 2010 2.69 4,167 12.76 879 2.69





Sales and redemption of units 2011 62,958 1,579,504 (98,246) 1,544,216 (also see note 9) 2010 - 63,158 (200) 62,958


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitPH&N Monthly Income Fund, Series O 2011 1,473,277 15,952,863$ 1.2303 15,583,296$ 10.58$

2010 58,820 631,607 0.1385 636,395 10.82$


From net income 0.08$ 0.01$ N/A N/A N/A From realized gains 0.04 0.01 N/A N/A N/A Return of capital 0.01 - N/A N/A N/ATotal annual distributions 0.13$ 0.02$ N/A N/A N/ANet Asset Value at December 31 10.07$ 10.12$ N/A N/A N/A

Ratios and supplemental dataNet assets ($ '000) 15,556$ 637$ N/A N/A N/ANumber of units outstanding 1,544,216 62,958 N/A N/A N/AManagement expense ratio (1) 2.62% 2.69% N/A N/A N/APortfolio turnover rate of the underlying fund (2) 206.93% 152.84% N/A N/A N/A



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCanada Housing Trust No. 1 4.800% Jun 15 12 8.1% ARC Resources Ltd. 1.2%RBC High Yield Bond Fund 5.1% Province of Ontario 4.200% Jun 2 20 1.2%Phillips, Hager & North High Yield Bond Fund 4.7% TransCanada Corp. 1.2%Province of Ontario 7.600% Jun 2 27 3.4% Magna International Inc., Class A 1.2%Toronto-Dominion Bank 3.0% Genworth MI Canada Inc. 1.2%Royal Bank of Canada 2.8% Goldcorp Inc. 1.1%Bank of Nova Scotia 2.4% Province of Ontario 4.650% Jun 2 41 1.0%Province of Ontario 6.500% Mar 8 29 2.1% Shaw Communications Inc., Class B 1.0%Enbridge Inc. 2.0% Barrick Gold Corp. 1.0%Canadian Imperial Bank of Commerce 1.4% Brookfield Asset Management Inc., Class A 0.9%Brookfield Office Properties Canada 1.4% Canada Housing Trust No. 1 3.750% Mar 15 20 0.9%Rogers Communications Inc., Class B 1.4% Canadian National Railway Co. 0.9%Manulife Financial Corporation 1.2% Total % of top 25 holdings 51.8%


RBC PH&N Monthly Income GIF


2.20 0.30 (0.80)2.20 0.30 (0.80)

Annual Management Fee % Annual Insurance Fee (Limit) %

Page 17 of 64




Distribution from underlying fund 4$ 9$ Realized gains on sale of investments 9,132 16,248 Increase (decrease) in unrealized appreciation of investments (26,734) 27,348

(17,598) 43,605 Expenses Management fees 13,185 7,734 Insurance fees 2,996 1,757 Other administrative expenses 8,324 5,251

24,505 14,742

Net income (loss) (42,103)$ 28,863$ Net income (loss) per unit (0.47)$ 0.52$


AssetsInvestments in underlying fund at fair value 1,142,812$ 619,446$ Cash 600 - Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 9,457 7,678

1,154,279 628,492

LiabilitiesBank indebtedness - 8,402

Management fee payable 1,309 1,421 Insurance fee payable 298 323 Accounts payable and accrued liabilities 14,080 14,822

15,687 24,968

Net assets 1,138,592$ 603,524$ Net asset value per unit 10.14$ 10.56$



Net assets, beginning of the year 603,524$ 444,354$ Premium deposits 723,593 334,547 Net income (loss) (42,103) 28,863

1,285,014 807,764 Less

Withdrawals 146,422 204,240 146,422 204,240




RBC Global Balanced GIF (formerly, RBC Balanced Growth GIF)

Page 18 of 64






MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Global Balanced Fund, Series O 2011 91,904 1,101,438$ 59.3814 1,142,812$ 12.43$

2010 49,162 551,337 51.7394 619,446 12.60


From net income -$ -$ -$ -$ N/A From realized gains - 0.09 - - N/A Return of capital - - - - N/ATotal annual distributions -$ 0.09$ -$ -$ N/ANet Asset Value at December 31 10.14$ 10.56$ 10.07$ 9.25 N/A

Ratios and supplemental dataNet assets ($ '000) 1,139$ 604$ 444$ 109$ N/ANumber of units outstanding 112,275 57,146 44,125 11,884 N/AManagement expense ratio (1) 2.67% 2.64% 2.60% 2.60% N/APortfolio turnover rate of the underlying fund (2) 115.23% 94.79% 83.45% 53.05% N/A


The comparative data for the year 2007 and prior not available as the Fund was introduced in 2008.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 3.4% United States Treasury 1.750% Mar 31 14 0.8%RBC Emerging Markets Fund 3.3% Government of Canada 2.250% Aug 1 14 0.8%Royal Bank of Canada 1.2% Apple Inc. 0.8%Toronto-Dominion Bank 1.1% Goldcorp Inc. 0.8%Province of Ontario 4.700% Jun 2 37 1.0% Bank of Nova Scotia 0.8%Development Bank of Japan JPY 2.300% Mar 19 26 0.9% Canada Housing Trust No. 1 3.350% Dec 15 20 0.7%UnitedHealth Group Incorporated 0.9% United Kingdom Gilt GBP 4.000% Mar 7 22 0.7%European Investment Bank JPY 1.400% Jun 20 17 0.9% United States Treasury 4.500% Aug 15 39 0.7%Province of Ontario USD 4.100% Jun 16 14 0.9% Potash Corporation of Saskatchewan Inc. 0.7%Exxon Mobil Corp. 0.9% United States Treasury 3.250% Dec 31 16 0.7%Suncor Energy Inc. 0.9% Japan Government Twenty Year JPY 2.100% Jun 20 29 0.7%Canadian Natural Resources Ltd. 0.9% Province of Ontario 4.000% Jun 2 21 0.7%Barrick Gold Corp. 0.8% Total % of top 25 holdings 26.0%

RBC Global Balanced GIF (formerly, RBC Balanced Growth GIF)




2.30 0.30 (0.80)

Page 19 of 64




Distribution from underlying fund 1,863,633$ 1,291,389$ Realized gain (loss) on sale of investments 73,530 (12,620) Increase (decrease) in unrealized appreciation of investments (3,071,100) 4,461,283

(1,133,937) 5,740,052 Expenses


1,649,896 1,086,179

Net income (loss) (2,783,833)$ 4,653,873$



AssetsInvestments in underlying fund at fair value 66,826,099$ 51,302,417$ Cash 67,038 20,278 Prepaid expenses 1,410 1,368 Subscriptions Receivable 25,000 -

66,919,547 51,324,063

LiabilitiesManagement fee payable 76,536 117,244 Insurance fee payable 17,939 27,479 Accounts payable and accrued liabilities 100,117 98,942

194,592 243,665

Net assets 66,724,955$ 51,080,398$



Net assets, beginning of the year 51,080,398$ 32,601,702$ Premium deposits 31,177,926 22,306,901 Net income (loss) (2,783,833) 4,653,873

79,474,491 59,562,476 Less

Withdrawals 12,749,536 8,482,078 12,749,536 8,482,078

Net assets, end of the year 66,724,955$ 51,080,398$ Number of units outstanding 6,162,007 4,562,617


RBC Canadian Dividend GIF

Page 20 of 64


Management fees and insurance fees 2011(also see note 7) 2010



MER before waiver %


MER after waiver %

Other expenses absorbed by the manager 2011 2.65 1,694,896$ 2.65 1,694,896$ 2.64 (also see note 8) 2010 2.66 1,086,179$ 2.61 1,086,179$ 2.61





Sales and redemption of units 2011 4,562,617 2,753,878 (1,154,488) 6,162,007 (also see note 9) 2010 3,229,234 2,149,981 (816,598) 4,562,617


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Dividend Fund, Series O 2011 1,438,705 66,523,985$ 2.3241 66,826,099$ 46.45$

2010 1,064,993 47,929,202 1.9011 51,302,417 48.17


From net income 0.03$ 0.04$ 0.04$ 0.10$ -$ From realized gains - 0.01 (0.10) (0.11) 0.42 Return of capital - - - - - Total annual distributions 0.03$ 0.05$ (0.06)$ (0.01)$ 0.42$ Net Asset Value at December 31 10.83$ 11.20$ 10.10$ 7.98$ 11.06$

Ratios and supplemental dataNet assets ($ '000) 66,725$ 51,080$ 32,602$ 20,193$ 16,003$ Number of units outstanding 6,162,007 4,562,617 3,229,234 2,529,491 1,447,378 Management expense ratio (1) 2.64% 2.61% 2.55% 2.55% 2.55%Portfolio turnover rate of the underlying fund (2) 29.94% 24.89% 83.37% 92.31% 28.44%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRoyal Bank of Canada 7.4% Suncor Energy Inc. 2.3%Toronto-Dominion Bank 7.2% Cenovus Energy Inc. 2.2%Bank of Nova Scotia 5.1% Manulife Financial Corporation 1.9%Cash & Cash Equivalents 4.2% Barrick Gold Corp. 1.9%Canadian Imperial Bank of Commerce 3.8% TELUS Corp., Class A 1.8%Bank of Montreal 3.6% BCE Inc. 1.8%Enbridge Inc. 3.4% Potash Corporation of Saskatchewan Inc. 1.7%TransCanada Corp. 3.0% Thomson Corp. 1.7%Canadian Natural Resources Ltd. 3.0% Shaw Communications Inc., Class B 1.5%Brookfield Asset Management Inc., Class A 2.9% Husky Energy Inc. 1.5%Canadian National Railway Co. 2.8% CI Financial Corp. 1.5%Power Corporation of Canada 2.7% Magna International Inc., Class A 1.4%Imperial Oil Ltd. 2.4% Total % of top 25 holdings 72.7%

RBC Canadian Dividend GIF




2.25 0.30 (0.80)

Page 21 of 64




Distribution from underlying fund 118,599$ 118,475$ Realized gains on sale of investments 444,522 377,272 Increase (decrease) in unrealized appreciation of investments (1,624,070) 655,306

(1,060,949) 1,151,053 Expenses


265,834 181,403

Net income (loss) (1,326,783)$ 969,650$




10,571,043 7,537,096

LiabilitiesBank indebtedness 517 - Management fee payable 11,930 16,561 Insurance fee payable 5,167 7,172 Accounts payable and accrued liabilities 18,732 26,503

36,346 50,236

Net assets 10,534,697$ 7,486,860$




Net assets, beginning of the year 7,486,860$ 5,529,526$ Premium deposits 7,092,616 2,098,828 Net income (loss) (1,326,783) 969,650

13,252,693 8,598,004 Less

Withdrawals 2,717,996 1,111,144 2,717,996 1,111,144


Number of units outstanding 1,012,679 633,020


RBC Canadian Equity GIF

Page 22 of 64





MER before waiver %


MER after waiver %






Sales and redemption of units 2011 633,020 625,397 (245,738) 1,012,679 (also see note 9) 2010 538,554 198,934 (104,468) 633,020


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Equity Fund, Series O 2011 475,255 12,171,275$ 0.4648 10,564,250$ 22.23$

2010 285,951 7,489,747 0.3477 7,506,791 26.25


From net income -$ -$ -$ -$ -$ From realized gains 0.01 - - (0.23) 0.98 Return of capital - - - - - Total annual distributions 0.01$ -$ -$ (0.23)$ 0.98$ Net Asset Value at December 31 10.40$ 11.83$ 10.27$ 7.95$ 12.09$

Ratios and supplemental dataNet assets ($ '000) 10,535$ 7,487$ 5,530$ 4,303$ 3,469$ Number of units outstanding 1,012,679 633,020 538,554 541,567 287,004 Management expense ratio (1) 2.89% 2.85% 2.80% 2.80% 2.80%Portfolio turnover rate of the underlying fund (2) 58.58% 65.52% 82.78% 68.28% 41.43%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRoyal Bank of Canada 5.5% Canadian Imperial Bank of Commerce 2.1%Toronto-Dominion Bank 5.0% Power Corporation of Canada 1.7%Bank of Nova Scotia 3.6% Brookfield Asset Management Inc., Class A 1.6%Suncor Energy Inc. 3.6% Teck Resources Ltd., Class B 1.4%Barrick Gold Corp. 3.3% Rogers Communications Inc., Class B 1.4%Canadian Natural Resources Ltd. 2.9% Manulife Financial Corporation 1.4%Canadian National Railway Co. 2.8% Cash & Cash Equivalents 1.4%Goldcorp Inc. 2.6% TELUS Corp., Class A 1.3%Potash Corporation of Saskatchewan Inc. 2.5% Imperial Oil Ltd. 1.1%Bank of Montreal 2.3% Magna International Inc., Class A 1.1%Enbridge Inc. 2.1% Crescent Point Energy Corp. 1.0%Cenovus Energy Inc. 2.1% Thomson Corp. 1.0%TransCanada Corp. 2.1% Total % of top 25 holdings 56.9%

RBC Canadian Equity GIF




2.25 0.55 (1.05)

Page 23 of 64



IncomeDistribution from underlying fund 4,467$ 30,309$ Realized gains on sale of investments 8,110 6,982 Increase (decrease) in unrealized appreciation of investments (192,624) 165,230

(180,047) 202,521 Expenses Management fees 51,178 11,170 Insurance fees 21,487 4,690 Other administrative expenses 32,357 7,584

105,022 23,444

Net income (loss) (285,069)$ 179,077$




6,821,847 1,248,542

Liabilities Management fee payable 7,998 2,686 Insurance fee payable 3,358 1,128 Accounts payable and accrued liabilities 15,133 17,065

26,489 20,879

Net assets 6,795,358$ 1,227,663$



Net assets, beginning of the year 1,227,663$ 258,815$ Premium deposits 6,221,338 879,336 Net income (loss) (285,069) 179,077

7,163,932 1,317,228 Less

Withdrawals 368,574 89,565 368,574 89,565




RBC O'Shaughnessy All Canadian Equity GIF

Page 24 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O'Shaughnessy All Canadian Equity 2011 606,483 6,798,706$ 42.6104 6,816,081$ 11.24$ Fund, Series O 2010 105,280 1,023,085 11.8595 1,233,084 11.71


From net income -$ 0.07$ 0.12$ 0.04$ N/A

From realized gains - 0.07 0.11 - N/A

Return of capital - - - - N/A

Total annual distributions -$ 0.14$ 0.23$ 0.04$ N/A

Net Asset Value at December 31 11.42$ 12.25$ 9.94$ 8.05$ N/A

Ratios and supplemental dataNet assets ($ '000) 6,795$ 1,228$ 259$ 84$ N/A

Number of units outstanding 594,977 100,219 26,029 10,499$ N/A

Management expense ratio (1) 2.96% 2.93% 2.85% 2.85% N/A

Portfolio turnover rate of the underlying fund (2) 90.46% 99.81% 125.09% 99.24% N/A


The comparative data for the year 2007 and prior not available as the Fund was introduced in 2008.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsAlimentation Couche-Tard Inc. 2.8% Cineplex Inc. 1.4%Jean Coutu Group, Class A 2.4% Manitoba Telecom Services Inc. 1.3%Toromont Industries Ltd. 2.3% Cash & Cash Equivalents 1.3%Atco Ltd., Class I, Non-Voting 2.1% Yamana Gold Inc. 1.1%WestJet Airlines Ltd. 2.0% Emera Inc. 1.1%Empire Co. Ltd., Class A 2.0% Saputo Group Inc. 1.1%Metro Inc., Class A 2.0% Keyera Corp. 1.1%Tim Hortons Inc. 1.9% Canadian Utilities Ltd., Class A 1.1%Cogeco Cable Inc. 1.9% Canadian National Railway Co. 1.1%Mullen Group Ltd. 1.9% Stantec Inc. 1.0%Astral Media Inc., Class A 1.6% Dollarama Inc. 1.0%The North West Co. Inc. 1.6% Enbridge Inc. 1.0%Corus Entertainment Inc., Class B 1.5% Total % of top 25 holdings 39.6%

RBC O'Shaughnessy All Canadian Equity GIF




2.30 0.55 (1.05)

Page 25 of 64



IncomeRealized gains on sale of investments 2,343$ 495$ Increase (decrease) in unrealized appreciation of investments (124,080) 92,028

(121,737) 92,523 Expenses


42,118 12,154

Net income (loss) (163,855)$ 80,369$




1,325,711 1,511,577

Liabilities Bank indebtedness 2,175 -

Management fee payable 1,516 2,439 Insurance fee payable 657 1,056 Accounts payable and accrued liabilities 16,310 15,260

20,658 18,755

Net assets 1,305,053$ 1,492,822$



Net assets, beginning of the year 1,492,822$ 5,043$ Premium deposits 25,000 1,407,410 Net income (loss) (163,855) 80,369

1,353,967 1,492,822 Less

Withdrawals 48,914 - 48,914 -




RBC DS Canadian Focus Fund GIF

Page 26 of 64






MER before waiver %


MER after waiver %






Sales and redemption of units 2011 136,821 2,465 (4,660) 134,626 (also see note 9) 2010 500 136,321 - 136,821


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Canadian Focus Fund, Series O 2011 79,292 1,348,170$ 2.0537 1,316,170$ 16.60$

2010 82,769 1,407,469 1.7246 1,499,550 18.12


From net income -$ -$ N/A N/A N/A From realized gains - - N/A N/A N/A Return of capital - - N/A N/A N/ATotal annual distributions -$ -$ N/A N/A N/ANet Asset Value at December 31 9.69$ 10.91$ 10.09 N/A N/A

Ratios and supplemental dataNet assets ($ '000) 1,305$ 1,493$ 5$ N/A N/A

Number of units outstanding 134,626 136,821 500 N/A N/A

Management expense ratio (1) 2.96% 2.92% 2.80% N/A N/A

Portfolio turnover rate of the underlying fund (2) 23.82% 25.55% 38.32% N/A N/A



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsBarrick Gold Corp. 6.1% TransCanada Corp. 2.7%Royal Bank of Canada 6.0% TELUS Corp., Class A 2.6%Toronto-Dominion Bank 5.0% Canadian Imperial Bank of Commerce 2.3%Canadian National Railway Co. 4.5% Thomson Corp. 2.3%Suncor Energy Inc. 4.3% Husky Energy Inc. 2.3%Canadian Natural Resources Ltd. 4.3% Manulife Financial Corporation 2.3%Goldcorp Inc. 4.3% SNC-Lavalin Group Inc. 2.3%Brookfield Asset Management Inc., Class A 4.0% Imperial Oil Ltd. 2.2%Bank of Nova Scotia 3.8% CI Financial Corp. 2.0%Teck Resources Ltd., Class B 3.6% Shoppers Drug Mart Corp. 1.9%Potash Corporation of Saskatchewan Inc. 3.4% Shaw Communications Inc., Class B 1.8%Cenovus Energy Inc. 2.8% Bank of Montreal 1.7%Power Corporation of Canada 2.7% Total % of top 25 holdings 81.2%

RBC DS Canadian Focus Fund GIF




2.25 0.55 (1.05)

Page 27 of 64




Distribution from underlying fund 1,167$ 27,023$ Realized losses on sale of investments (2,137) (27,586) Increase (decrease) in unrealized appreciation of investments (84,584) 192,494

(85,554) 191,931 Expenses


38,428 47,248

Net income (loss) (123,982)$ 144,683$




1,126,415 1,517,986

Liabilities Bank indebtedness 1,597 -

Management fee payable 1,269 3,656 Insurance fee payable 549 1,583 Accounts payable and accrued liabilities 17,480 20,651

20,895 25,890

Net assets 1,105,520$ 1,492,096$




Net assets, beginning of the year 1,492,096$ 1,425,583$ Premium deposits 263,739 586,172 Net income (loss) (123,982) 144,683

1,631,853 2,156,438 Less

Withdrawals 526,333 664,342 526,333 664,342




RBC North American Growth GIF

Page 28 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC North American Growth Fund, 2011 45,229 1,162,151$ 2.7259 1,114,402$ 24.64$ Series O 2010 57,235 1,466,302 4.3022 1,503,136 26.26


From net income -$ -$ 0.05$ 0.03$ -$ From realized gains - (0.09) (0.52) (0.16) 0.09 Return of capital - - - - - Total annual distributions -$ (0.09)$ (0.47)$ (0.13)$ 0.09$ Net Asset Value at December 31 9.64$ 10.58$ 9.61$ 7.80$ 11.89$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsToronto-Dominion Bank 2.8% TransCanada Corp. 1.2%Royal Bank of Canada 2.8% Power Corporation of Canada 1.2%Bank of Nova Scotia 2.2% Bank of Montreal 1.2%Suncor Energy Inc. 2.0% Canadian Imperial Bank of Commerce 1.2%Canadian Natural Resources Ltd. 1.9% TJX Companies Inc. 1.2%Exxon Mobil Corp. 1.9% Cenovus Energy Inc. 1.1%Barrick Gold Corp. 1.9% Enbridge Inc. 1.1%Goldcorp Inc. 1.5% Chevron Corp. 1.0%Canadian National Railway Co. 1.5% Mastercard Inc. 1.0%Apple Inc. 1.5% Google Inc., Class A 0.9%Cash & Cash Equivalents 1.5% International Business Machines 0.9%Potash Corporation of Saskatchewan Inc. 1.4% Kraft Foods Inc., Class A 0.9%QUALCOMM Inc. 1.3% Total % of top 25 holdings 37.1%

RBC North American Growth GIF




2.25 0.55 (1.05)

Page 29 of 64



IncomeDistribution from underlying fund 134$ 2,265$ Realized gain (loss) on sale of investments 1,510 (3,476) Increase in unrealized appreciation of investments 19,042 39,922

20,686 38,711 Expenses


18,247 11,500

Net income 2,439$ 27,211$



AssetsInvestments in underlying fund at fair value 895,837$ 455,466$ Cash - 4,099 Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 9,508 9,732

906,755 470,665

LiabilitiesBank indebtedness 1,694 - Management fee payable 1,050 1,011 Insurance fee payable 438 421 Accounts payable and accrued liabilities 15,412 17,481

18,594 18,913

Net assets 888,161$ 451,752$



Net assets, beginning of the year 451,752$ 388,596$ Premium deposits 520,040 94,638 Net income 2,439 27,211

974,231 510,445 Less

Withdrawals 86,070 58,693 86,070 58,693




RBC U.S. Dividend GIF (formerly, RBC North American Dividend GIF)

Page 30 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC U.S. Dividend Fund, 2011 57,775 858,257$ 89.3658 895,837$ 15.51$ Series O 2010 29,903 436,928 91.8188 455,466 15.23


From net income -$ -$ -$ 0.08$ -$ From realized gains - (0.07) (0.27) (0.04) 0.43 Return of capital - - - - - Total annual distributions -$ (0.07)$ (0.27)$ 0.04$ 0.43 Net Asset Value at December 31 8.57$ 8.68$ 8.11$ 7.40$ 9.81$

Ratios and supplemental dataNet assets ($ '000) 888$ 452$ 389$ 308$ 44$ Number of units outstanding 103,630 52,047 47,927 41,687 4,501 Management expense ratio (1) 2.96% 2.91% 2.85% 2.85% 2.85%Portfolio turnover rate of the underlying fund (2) 390.52% 302.67% 262.26% 141.00% 66.21%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 3.7% General Electric Company 1.4%Apple Inc. 3.0% Visa Inc., Class A 1.3%Exxon Mobil Corp. 2.8% Kraft Foods Inc., Class A 1.3%International Business Machines 2.0% Ralph Lauren Corp. 1.3%Pfizer Inc. 2.0% Intel Corp. 1.2%JPMorgan Chase & Co. 1.9% TELUS Corp. 1.1%Procter & Gamble Co. 1.7% Consolidated Edison Inc. 1.1%Coca-Cola Co. 1.6% Cisco Systems Inc. 1.1%Wells Fargo & Company 1.6% Spectra Energy Corp. 1.0%Microsoft Corp. 1.6% U.S. Bancorp 1.0%Google Inc., Class A 1.6% Union Pacific Corp. 1.0%ConocoPhillips 1.5% CVS Corp. 1.0%Chevron Corp. 1.5% Total % of top 25 holdings 40.3%

RBC U.S. Dividend GIF (formerly, RBC North American Dividend GIF)




2.30 0.55 (1.15)

Page 31 of 64



IncomeDistribution from underlying fund 4,604$ 4,112$ Realized gain (loss) on sale of investments 1,455 (40) Increase (decrease) in unrealized appreciation of investments (15,689) 18,192

(9,630) 22,264 Expenses


10,104 8,866

Net income (loss) (19,734)$ 13,398$



AssetsInvestments in underlying fund at fair value 355,881$ 318,390$ Cash 837 - Prepaid expenses 1,410 1,368 Due from RBC Life Insurance Company 10,243 8,739

368,371 328,497

Liabilities Bank indebtedness - 5,396 Management fee payable 311 666 Insurance fee payable 303 480 Accounts payable and accrued liabilities 15,991 16,290

16,605 22,832

Net assets 351,766$ 305,665$




478,150 362,471 Less

Withdrawals 126,384 56,806 126,384 56,806




RBC U.S. Equity GIF

Page 32 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC U.S. Equity Fund, Series O 2011 16,912 360,207$ 0.0151 355,881$ 21.04$

2010 14,575 307,027 0.1520 318,390 21.84


From net income -$ -$ -$ -$ -$ From realized gains - - (0.10) (0.13) 0.04 Return of capital - - - - - Total annual distributions -$ -$ (0.10)$ (0.13)$ 0.04$ Net Asset Value at December 31 8.41$ 8.92$ 8.58$ 8.12$ 10.75$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsExxon Mobil Corp. 3.5% Cisco Systems Inc. 1.5%Apple Inc. 3.4% Google Inc., Class A 1.4%Cash & Cash Equivalents 2.4% QUALCOMM Inc. 1.4%UnitedHealth Group Incorporated 2.3% Coca-Cola Co. 1.3%JPMorgan Chase & Co. 2.3% CVS Corp. 1.3%Wells Fargo & Company 2.1% The Walt Disney Company 1.3%Chevron Corp. 2.1% Occidental Petroleum Corp. 1.2%Citigroup Inc. 1.8% Microsoft Corp. 1.2%International Business Machines 1.7% Intel Corp. 1.2%General Electric Company 1.7% Capital One Financial Corp. 1.2%Pfizer Inc. 1.6% State Street Corp. 1.2%Procter & Gamble Co. 1.5% AmerisourceBergen Corp. 1.2%Alexion Pharmaceuticals Inc. 1.5% Total % of top 25 holdings 43.3%

RBC U.S. Equity GIF




2.30 0.65 (1.15)

Page 33 of 64



IncomeDistribution from underlying fund 94,054$ 62,479$ Realized losses on sale of investments (11,129) (63,453) Increase in unrealized appreciation of investments 166,504 365,019

249,429 364,045 Expenses


98,992 72,137

Net income 150,437$ 291,908$



AssetsInvestments in underlying fund at fair value 3,736,883$ 2,584,717$ Cash 1,729 4,812 Prepaid expenses 1,410 1,368 Subscriptions receivable 12,500 - Due from RBC Life Insurance Company 9,436 9,785

3,761,958 2,600,682


23,532 32,089

Net assets 3,738,426$ 2,568,593$



Net assets, beginning of the year 2,568,593$ 2,076,383$ Premium deposits 1,586,348 702,333 Net income 150,437 291,908

4,305,378 3,070,624 Less

Withdrawals 566,952 502,031 566,952 502,031




RBC O'Shaughnessy U.S. Value GIF

Page 34 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O' Shaughnessy U.S. Value Fund, 2011 395,965 3,746,618$ 4.1623 3,736,883$ 9.44$ Series O 2010 288,702 2,760,955 2.9767 2,584,717 8.95


From net income -$ -$ -$ 0.02$ -$ From realized gains (0.01) (0.15) (0.80) (0.79) 1.01 Return of capital - - - - - Total annual distributions (0.01)$ (0.15)$ (0.80)$ (0.77)$ 1.01$ Net Asset Value at December 31 8.06$ 7.66$ 6.79$ 5.52$ 9.95$

Ratios and supplemental dataNet assets ($ '000) 3,738$ 2,569$ 2,076$ 1,557$ 1,963$ Number of units outstanding 463,706 335,323 305,818 282,271 197,421 Management expense ratio (1) 3.03% 3.00% 2.95% 2.95% 2.95%Portfolio turnover rate of the underlying fund (2) 51.10% 59.51% 109.63% 120.40% 71.60%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsLowe's Companies 3.1% Home Depot Inc. 2.1%Travelers Cos. Inc. 2.9% Conagra Inc. 2.0%Gap Inc. 2.8% Best Buy Co. Inc. 1.9%Chubb Corp. 2.8% Target Corporation 1.9%Aetna Inc. 2.7% Raytheon Company 1.7%DIRECTV, Class A 2.6% International Business Machines 1.6%Safeway Inc. 2.5% Cash & Cash Equivalents 1.6%Kohls Corp. 2.3% UnumProvident Corp. 1.5%ConocoPhillips 2.3% Wal-Mart Stores Inc. 1.5%Sara Lee Corp. 2.3% AstraZeneca Plc. ADR 1.5%Omnicom Group 2.3% Northrop Grumman Corp. 1.5%WellPoint Inc. 2.2% Hewlett-Packard Co. 1.5%Lockheed Martin Corporation 2.2% Total % of top 25 holdings 53.3%

RBC O'Shaughnessy U.S. Value GIF




2.30 0.65 (1.15)

Page 35 of 64



IncomeDistribution from underlying fund 3,101$ 1,194$ Realized gains on sale of investments 1,252 3,032 Increase (decrease) in unrealized appreciation of investments (17,302) 17,905

(12,949) 22,131 Expenses

Management fees 6,473 1,825 Insurance fees 3,261 920 Other administrative expenses 4,230 1,305

13,964 4,050

Net income (loss) (26,913)$ 18,081$



AssetsInvestments in underlying fund at fair value 567,461$ 163,012$ Cash 15,549 3,963 Prepaid expenses 1,410 - Subscriptions Receivable 12,500 - Accrued income distribution from investments - 1,368 Due from RBC Life Insurance Company 9,704 8,289

606,624 176,632

LiabilitiesManagement fee payable 642 357 Insurance fee payable 323 180 Accounts payable and accrued liabilities 13,039 14,692

14,004 15,229

Net assets 592,620$ 161,403$



Net assets, beginning of the year 161,403$ 116,812$ Premium deposits 521,690 51,207 Net (loss) income (26,913) 18,081

656,180 186,100 Less

Withdrawals 63,560 24,697 63,560 24,697




RBC U.S. Mid-Cap Equity GIF

Page 36 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC U.S. Mid-Cap Equity Fund, Series O 2011 31,201 559,071$ 0.1350 567,461$ 18.19$

2010 8,910 137,319 0.0418 163,012 18.30





Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 3.1% United Rentals Inc. 1.5%PetsMart Inc. 2.3% Dollar Tree Inc. 1.5%Tractor Supply Co. 2.2% TransDigm Group Inc. 1.5%Alexion Pharmaceuticals Inc. 2.1% Commerce Bancshares Inc. 1.5%Ameriprise Financial Inc. 2.0% Maxim Integrated Products 1.5%Sandisk Corp. 1.8% Alliance Data Systems Corp. 1.4%Valeant Pharmaceuticals International Inc. 1.8% WESCO International Inc. 1.4%J.B. Hunt Transport Services Inc. 1.8% FMC Technologies Inc. 1.4%Ross Stores Inc. 1.7% Bank of Hawaii Corp. 1.4%WellCare Health Plans Inc. 1.6% Oceaneering International Inc. 1.3%Reinsurance Group of America Inc. 1.6% Cadence Design Systems Inc. 1.3%Perrigo Company 1.6% Genesco Inc. 1.3%Raymond James Financial Corp. 1.6% Total % of top 25 holdings 42.2%

RBC U.S. Mid-Cap Equity GIF




2.30 0.65 (1.15)

Page 37 of 64




Distribution from underlying fund 27,377$ 18,112$ Realized gain (loss) on sale of investments 1,265 (9,947) Increase (decrease) in unrealized appreciation of investments (51,964) 22,573

(23,322) 30,738 Expenses


24,979 21,648

Net income (loss) (48,301)$ 9,090$



AssetsInvestments in underlying fund at fair value 823,780$ 792,891$ Cash 157 4,419 Prepaid expenses 1,410 - Accrued income distribution from investments - 1,368 Due from RBC Life Insurance Company 10,262 9,803

835,609 808,481

LiabilitiesManagement fee payable 1,002 1,893 Insurance fee payable 422 874 Accounts payable and accrued liabilities 15,958 18,072

17,382 20,839

Net assets 818,227$ 787,642$





1,030,036 936,184 Less

Withdrawals 211,809 148,542 211,809 148,542




RBC Global Dividend Growth GIF

Page 38 of 64





MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Global Dividend Growth Fund, 2011 101,860 877,427$ 0.2344 823,780$ 8.09$ Series O 2010 91,732 794,574 0.2047 792,891 8.64


From net income 0.02$ -$ -$ 0.09$ -$ From realized gains - (0.07) (0.51) (0.11) 0.43 Return of capital - - - - - Total annual distributions 0.02$ (0.07)$ (0.51)$ (0.02)$ 0.43$ Net Asset Value at December 31 7.76$ 8.27$ 8.18$ 7.39$ 10.69$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsBlackRock Inc. 4.2% Comcast Corp., Class A 3.0%Pfizer Inc. 4.1% Fresenius Medical Care AG & Co. KGaA 3.0%Shire Plc. 3.2% International Business Machines 3.0%Swedbank AB 3.1% Legal & General Group Plc. 2.9%Union Pacific Corp. 3.1% Rio Tinto Plc. 2.9%Chevron Corp. 3.1% Seadrill Ltd. 2.9%Williams Companies Inc. 3.1% Caterpillar Inc. 2.9%QUALCOMM Inc. 3.0% Freeport-McMoRan Copper & Gold Inc. 2.8%United Parcel Service Inc. 3.0% Accenture Plc., Class A 2.8%Compass Group Plc. 3.0% Bayerische Motoren Werke (BMW) AG 2.7%McDonald's Corp. 3.0% Oracle Corporation 2.5%Vodafone Group Plc. 3.0% Iluka Resources Ltd. 1.8%Coca-Cola Co. 3.0% Total % of top 25 holdings 75.1%

RBC Global Dividend Growth GIF




2.40 0.70 (1.20)

Page 39 of 64



IncomeDistribution from underlying fund 174,081$ 111,926$ Realized losses on sale of investments (335,973) (513,557) Increase (decrease) in unrealized appreciation of investments (177,351) 643,051

(339,243) 241,420 Expenses


95,223 111,171

Net income (loss) (434,466)$ 130,249$




2,451,392 3,428,993

LiabilitiesBank indebtedness 4,175 - Management fee payable 3,062 8,892 Insurance fee payable 1,554 4,511 Accounts payable and accrued liabilities 20,727 26,980

29,518 40,383

Net assets 2,421,874$ 3,388,610$



Net assets, beginning of the year 3,388,610$ 3,957,687$ Premium deposits 425,905 423,583 Net income (loss) (434,466) 130,249

3,380,049 4,511,519 Less

Withdrawals 958,175 1,122,909 958,175 1,122,909




RBC O'Shaughnessy International Equity GIF

Page 40 of 64






MER before waiver %


MER after waiver %








Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O'Shaughnessy International Equity 2011 374,446 3,896,742$ 5.2051 2,438,315$ 6.51$ Fund, Series O 2010 426,757 4,696,793 5.7153 3,415,717 8.00


From net income 0.20$ -$ 0.03$ 0.15$ 0.01$ From realized gains (0.69) (1.00) (0.41) (0.49) 0.69 Return of capital - - - - - Total annual distributions (0.49)$ (1.00)$ (0.38)$ (0.34)$ 0.70$ Net Asset Value at December 31 6.19$ 7.29$ 6.95$ 6.70$ 10.65$

Ratios and supplemental dataNet assets ($ '000) 2,422$ 3,389$ 3,958$ 3,821$ 4,343$ Number of units outstanding 391,339 464,799 569,320 570,421 407,783 Management expense ratio (1) 3.22% 3.16% 3.10% 3.10% 3.10%Portfolio turnover rate of the underlying fund (2) 73.28% 93.69% 135.94% 100.94% 33.05%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsTelecom Corp. of New Zealand Ltd. 3.2% Telecom Italia S.p.A. 1.6%Telstra Corp. Ltd. 3.1% Deutsche Telekom AG 1.5%ENI S.p.A. 2.8% E.ON AG 1.5%Energias de Portugal S.A. 2.3% Greek Organization of Football Prognostics S.A. 1.5%Vivendi S.A. 2.2% Drax Group Plc. 1.5%SSE Plc. 2.1% NAMCO BANDAI Holdings Inc. 1.4%France Telecom S.A. 1.9% Commonwealth Bank of Australia 1.4%Koninklijke KPN N.V. 1.9% National Australia Bank Ltd. 1.3%Enel S.p.A. 1.8% Westpac Banking Corporation 1.3%Cash & Cash Equivalents 1.7% Lawson Inc. 1.3%Telefonica S.A. 1.7% Transcosmos Inc. 1.2%National Grid Plc. 1.7% Autobacs Seven Co. Ltd. 1.1%RWE AG 1.6% Total % of top 25 holdings 44.6%

RBC O'Shaughnessy International Equity GIF




2.40 0.70 (1.20)

Page 41 of 64



IncomeDistribution from underlying funds 1,087,085$ 773,501$ Realized gains on sale of investments 660,778 344,414 Increase (decrease) in unrealized appreciation of investments (777,446) 865,658

970,417 1,983,573 Expenses


935,480 599,293

Net income 34,937$ 1,384,280$ Net income per unitSeries 1 0.01$ 0.59$ Series 2 0.01 0.57


AssetsInvestments in underlying funds at fair value 44,664,220$ 32,862,802$ Cash 88,983 - Prepaid expenses 2,773 2,686

44,755,976 32,865,488

LiabilitiesBank indebtedness - 4,985 Management fee payable 48,280 69,470 Insurance fee payable 10,340 14,236 Accounts payable and accrued liabilities 60,978 54,702

119,598 143,393

Net assets 44,636,378$ 32,722,095$ Net asset value per unitSeries 1 10.64$ 10.64$ Series 2 10.64 10.66


Net assets, beginning of the year 32,722,095$ 12,742,322$ Premium deposits 21,429,620 23,332,850 Net income 34,937 1,384,280

54,186,652 37,459,452 Less

Withdrawals 9,550,274 4,737,357 9,550,274 4,737,357


Number of units outstandingSeries 1 1,753,924 1,705,710 Series 2 2,439,759 1,367,317


RBC Select Conservative GIP

Page 42 of 64

RBC Guaranteed Investment Funds Supplementary Information December 31, 2011

Series 1 Series 2 Series 1 Series 2Management fees and insurance fees 2011 2.10 2.20 0.20 (0.70) 0.30 (0.80)(also see note 7) 2010 2.10 2.20 0.20 (0.70) 0.30 (0.80)

Other expenses absorbed by the managerAnnualized MER

cap % (1)Expense before

waiverMER before

waiver %Expense after

waiverMER after waiver

%(also see note 8) Series 1 2011 2.42 434,927$ 2.41 434,927$ 2.41

2010 2.42 315,626 2.37 315,626 2.37 Series 2 2011 2.61 500,553 2.60 500,553 2.60

2010 2.61 283,667 2.56 283,667 2.56

Sales and redemption of units Balance as at January 1st




(also see note 9) Series 1 2011 1,705,710 462,439 (414,225) 1,753,924 2010 532,919 1,471,378 (298,587) 1,705,710

Series 2 2011 1,367,317 1,556,047 (483,605) 2,439,759 2010 721,303 808,369 (162,355) 1,367,317


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Conservative Portfolio Fund, Series O 2011 2,423,005 43,971,500$ 93.0487 44,664,220$ 18.43$

2010 1,763,168 31,392,635 93.9951 32,862,802 18.64

Financial highlights (Unaudited) 2011 2010 2009 2008 2007Series 1 Value per unitDistributions: (*)

From net income 0.02$ 0.07$ 0.08$ -$ -$ From realized gains 0.12 0.12 - (0.62) 0.25 Return of capital - - - - - Total annual distributions 0.14$ 0.19$ 0.08$ (0.62)$ 0.25$ Net Asset Value at December 31 10.64$ 10.64$ 10.14$ 9.16$ 10.59$

Ratios and supplmental dataNet assets ($ '000) 18,669$ 18,153$ 5,405$ 3,293$ 2,346$ Number of units outstanding 1,753,924 1,705,710 532,919 359,709 221,511 Management expense ratio (1) 2.41% 2.37% 2.30% 2.30% 2.30%Portfolio turnover rate of the underlying fund (2) 15.92% 34.24% 7.67% 6.97% 23.06%

Series 2 Value per unitDistributions: (*)

From net income 0.05$ 0.05$ 0.06$ -$ -$ From realized gains 0.12 0.12 - (0.63) 5.30 Return of capital - - - - - Total annual distributions 0.17$ 0.17$ 0.06$ (0.63)$ 5.30$ Net Asset Value at December 31 10.64$ 10.66$ 10.17$ 9.20$ 10.30$

Ratios and supplmental dataNet assets ($ '000) 25,967$ 14,569$ 7,337$ 3,647$ 1,201$ Number of units outstanding 2,439,759 1,367,317 721,303 396,337 116,623 Management expense ratio (1) 2.60% 2.56% 2.50% 2.50% 2.50%Portfolio turnover rate of the underlying fund (2) 15.92% 34.24% 7.67% 6.97% 23.06%(*) Distributions were reinvested in the Fund.





Page 43 of 64


Top holding of the underlying fund (Unaudited)% of % of % of % of

Assets Assets Assets AssetsRBC Bond Fund 23.1 RBC Canadian Money Market Fund 3.2

Province of Ontario 4.200% Jun 2 20 3.6 Bank of Montreal 1.201% Jun 5 12 3.2Province of Ontario 4.650% Jun 2 41 3.1 CIBC 1.150% Feb 13 12 3.0Province of Ontario 6.500% Mar 8 29 2.9 Darwin Rec Trust - Senior Notes 1.139% Jan 4 12 2.9Province of Ontario 4.700% Jun 2 37 2.8 Toronto-Dominion Bank 1.200% Feb 13 12 2.8Province of Ontario 4.000% Jun 2 21 2.7 Bay St Funding Trust - Class A 1.128% Jan 23 12 2.5

Phillips, Hager & North Bond Fund 13.9 Phillips, Hager & North U.S. MSAC Equity Fund 3.1Cash & Cash Equivalents 12.5 Apple Inc. 2.5Province of Ontario 7.600% Jun 2 27 10.1 Exxon Mobil Corp. 2.4Province of Ontario 4.650% Jun 2 41 3.2 Chevron Corp. 2.0Phillips, Hager & North High Yield Bond Fund 2.9 Cash & Cash Equivalents 1.9Morgan Stanley CAD 4.500% Feb 23 12 2.7 Pfizer Inc. 1.7

RBC Global Bond Fund 9.3 RBC Asian Equity Fund 2.8 Japan 10-Year Bond Future, March 2012 6.6 Cash & Cash Equivalents 6.3United Kingdom Gilt GBP 4.000% Mar 7 22 4.0 Samsung Electronics Co. Ltd. 1.8United States Treasury 0.250% Nov 30 13 2.8 Mizuho Financial Group Inc. 1.5Cash & Cash Equivalents 2.4 China Petroleum & Chemical Corp. 1.4Japan Gov Twenty Year JPY 1.600% Jun 20 30 2.3 BHP Billiton Ltd. 1.4

RBC Canadian Short-Term Income Fund 9.1 Total % of top holdings of underlying 100.0 Canada Housing Trust No. 1 4.550% Dec 15 12 5.0 mutual fundsCash & Cash Equivalents 4.4Province of Ontario 3.250% Sep 8 14 4.1Government of Canada 2.750% Sep 1 16 3.1Government of Canada 2.000% Jun 1 16 2.6

RBC U.S. Equity Fund 9.1Exxon Mobil Corp. 3.5Apple Inc. 3.4Cash & Cash Equivalents 2.4UnitedHealth Group Incorporated 2.3JPMorgan Chase & Co. 2.3

RBC Canadian Dividend Fund 8.9Royal Bank of Canada 7.4Toronto-Dominion Bank 7.2Bank of Nova Scotia 5.1Cash & Cash Equivalents 4.2Canadian Imperial Bank of Commerce 3.8

RBC Canadian Equity Fund 7.7Royal Bank of Canada 5.5Toronto-Dominion Bank 5.0Bank of Nova Scotia 3.6Suncor Energy Inc. 3.6Barrick Gold Corp. 3.3

RBC European Equity Fund 6.6Royal Dutch Shell Plc. 4.6GlaxoSmithKline Plc. 4.3BT Group Plc. 3.6Cash & Cash Equivalents 3.4BP Plc. 3.1

Cash & Cash Equivalents 3.2


Page 44 of 64



IncomeDistribution from underlying funds 790,934$ 702,283$ Realized gains on sale of investments 852,509 301,683 (Decrease) increase in unrealized appreciation of investments (1,701,064) 1,496,980

(57,621) 2,500,946 Expenses


993,155 747,717

Net (loss) income (1,050,776)$ 1,753,229$ Net (loss) income per unitSeries 1 (0.27)$ 0.60$ Series 2 (0.30) 0.61


AssetsInvestments in underlying funds at fair value 39,497,103$ 32,422,368$ Cash 25,481 - Prepaid expenses 2,824 2,736 Subscriptions Receivable 50,000 - Due from RBC Life Insurance Company - 107,050

39,575,408 32,532,154

Liabilities Bank indebtedness - 162,547 Management fee payable 45,627 73,942 Insurance fee payable 13,305 21,384 Accounts payable and accrued liabilities 57,569 45,038

116,501 302,911 Net assets 39,458,907$ 32,229,243$

Net asset value per unitSeries 1 10.00$ 10.26$ Series 2 9.89 10.16


Net assets, beginning of the year 32,229,243$ 22,515,931$ Premium deposits 15,937,531 12,560,954 Net (loss) income (1,050,776) 1,753,229

47,115,998 36,830,114 Less

Withdrawals 7,657,091 4,600,871 7,657,091 4,600,871

Net assets, end of the year 39,458,907$ 32,229,243$ Number of units outstandingSeries 1 927,425 852,798 Series 2 3,052,181 2,309,932


RBC Select Balanced GIP

Page 45 of 64



Other expenses absorbed by the manager Annualized MER


waiverMER before




2010 2.59 195,543 2.55 195,453 2.55 Series 2 2011 2.80 755,673 2.79 755,673 2.79

2010 2.78 522,264 2.59 552,264 2.74





(also see note 9) Series 1 2011 852,798 326,218 (251,591) 927,425 2010 639,461 401,427 (188,090) 852,798

Series 2 2011 2,309,932 1,254,160 (511,911) 3,052,181 2010 1,697,271 895,759 (283,098) 2,309,932


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Balanced Portfolio Fund, 2011 1,893,265 38,819,963$ 75.1308 39,497,103$ 20.86$ Series O 2010 1,503,514 30,044,165 87.3713 32,422,368 21.56


From net income -$ -$ -$ 0.06$ -$ From realized gains 0.11 0.09 (0.02) (1.26) 0.22 Return of capital - - - - - Total annual distributions 0.11$ 0.09$ (0.02)$ (1.20)$ 0.22$ Net Asset Value at December 31 10.00$ 10.26$ 9.69$ 8.67$ 10.68$

Ratios and supplmental dataNet assets ($ '000) 9,277$ 8,752$ 6,197$ 5,880$ 3,785$ Number of units outstanding 927,425 852,798 639,461 678,484 354,316 Management expense ratio (1) 2.59% 2.55% 2.50% 2.50% 2.50%Portfolio turnover rate of the underlying fund (2) 20.38% 40.83% 6.57% 7.21% 24.66%


From net income -$ -$ -$ 0.06$ -$ From realized gains 0.11 0.09 (0.02) (1.25) 0.22 Return of capital - - - - - Total annual distributions 0.11$ 0.09$ (0.02)$ (1.19)$ 0.22$ Net Asset Value at December 31 9.89$ 10.16$ 9.61$ 8.62$ 10.64$

Ratios and supplmental dataNet assets ($ '000) 30,182$ 23,477$ 16,319$ 9,491$ 8,907$ Number of units outstanding 3,052,181 2,309,932 1,697,271 1,101,752 837,101 Management expense ratio (1) 2.79% 2.59% 2.70% 2.70% 2.70%Portfolio turnover rate of the underlying fund (2) 20.38% 40.83% 6.57% 7.21% 24.66%(*) Distributions were reinvested in the Fund.





Page 46 of 64



Assets Assets Assets AssetsRBC Bond Fund 30.5 RBC U.S. Mid-Cap Equity Fund 3.5

Province of Ontario 4.200% Jun 2 20 3.6 Cash & Cash Equivalents 3.1Province of Ontario 4.650% Jun 2 41 3.1 PetsMart Inc. 2.3Province of Ontario 6.500% Mar 8 29 2.9 Tractor Supply Co. 2.2Province of Ontario 4.700% Jun 2 37 2.8 Alexion Pharmaceuticals Inc. 2.1Province of Ontario 4.000% Jun 2 21 2.7 Ameriprise Financial Inc. 2.0

RBC U.S. Equity 12.5 RBC Emerging Markets Fund 3.5Exxon Mobil Corp. 3.5 China Mobile (Hong Kong) Ltd. 4.9Apple Inc. 3.4 Naspers Ltd. 4.3Cash & Cash Equivalents 2.4 Taiwan Semiconductor Manufacturing Co. Ltd. 4.2UnitedHealth Group Incorporated 2.3 Vale S.A. ADR 4.1JPMorgan Chase & Co. 2.3 America Movil S.A. de CV ADR 4.0

RBC Canadian Dividend Fund 10.9 RBC Asian Equity Fund 3.2Royal Bank of Canada 7.4 Cash & Cash Equivalents 6.3Toronto-Dominion Bank 7.2 Samsung Electronics Co. Ltd. 1.8Bank of Nova Scotia 5.1 Mizuho Financial Group Inc. 1.5Cash & Cash Equivalents 4.2 China Petroleum & Chemical Corp. 1.4Canadian Imperial Bank of Commerce 3.8 BHP Billiton Ltd. 1.4

RBC Canadian Equity Fund 10.8 RBC Global Dividend Growth Fund 2.8Royal Bank of Canada 5.5 BlackRock Inc. 4.2Toronto-Dominion Bank 5.0 Pfizer Inc. 4.1Bank of Nova Scotia 3.6 Shire Plc. 3.2Suncor Energy Inc. 3.6 Swedbank AB 3.1Barrick Gold Corp. 3.3 Union Pacific Corp. 3.1

RBC European Equity Fund 6.6 RBC Canadian Money Market Fund 2.5Royal Dutch Shell Plc. 4.6 Bank of Montreal 1.201% Jun 5 12 3.2GlaxoSmithKline Plc. 4.3 CIBC 1.150% Feb 13 12 3.0BT Group Plc. 3.6 Darwin Rec Trust - Senior Notes 1.139% Jan 4 12 2.9Cash & Cash Equivalents 3.4 Toronto-Dominion Bank 1.200% Feb 13 12 2.8BP Plc. 3.1 Bay St Funding Trust - Class A 1.128% Jan 23 12 2.5

Phillips, Hager & North U.S. MSAC Equity Fund 5.2 Total % of top holdings of underlying 100.0Apple Inc. 2.5 mutual fundsExxon Mobil Corp. 2.4Chevron Corp. 2.0Cash & Cash Equivalents 1.9Pfizer Inc. 1.7

RBC Global Bond Fund 4.3Japan 10-Year Bond Future, March 2012 6.6United Kingdom Gilt GBP 4.000% Mar 7 22 4.0United States Treasury 0.250% Nov 30 13 2.8Cash & Cash Equivalents 2.4Japan Gov Twenty Year JPY 1.600% Jun 20 30 2.3



Page 47 of 64



IncomeDistribution from underlying funds 808$ 309,699$ Realized gains on sale of investments 329,333 139,302 Increase (decrease) in unrealized appreciation of investments (1,066,311) 1,024,417

(736,170) 1,473,418 Expenses


590,545 468,291

Net income (loss) (1,326,715)$ 1,005,127$ Net income (loss) per unitSeries 1 (0.63)$ 0.59$ Series 2 (0.65) 0.59


AssetsInvestments in underlying funds at fair value 20,801,622$ 17,448,924$ Cash 975 11,854 Prepaid expenses 2,824 2,736

20,805,421 17,463,514


63,989 105,961



Net assets, beginning of the year 17,357,553$ 13,576,780$ Premium deposits 7,604,427 5,865,609 Net income (loss) (1,326,715) 1,005,127

23,635,265 20,447,516 Less

Withdrawals 2,893,833 3,089,963 2,893,833 3,089,963

Net assets, end of the year 20,741,432$ 17,357,553$ Number of units outstandingSeries 1 416,533 364,520 Series 2 1,827,858 1,397,561


RBC Select Growth GIP

Page 48 of 64





waiverMER before




2010 2.83 93,345 2.81 92,912 2.79 Series 2 2011 3.06 482,743 3.05 482,743 3.05

2010 3.06 377,841 3.03 375,379 3.01






Series 2 2011 1,397,561 650,502 (220,205) 1,827,858 2010 1,133,713 488,332 (224,484) 1,397,561


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Growth Portfolio Fund, 2011 975,745 20,356,134$ 92.5854 20,801,622$ 21.32$ Series O 2010 782,509 15,937,125 92.9270 17,448,924 22.30


From net income -$ -$ -$ -$ -$ From realized gains - - - (1.61) 0.28 Return of capital - - - - - Total annual distributions -$ -$ -$ (1.61)$ 0.28$ Net Asset Value at December 31 9.33$ 9.92$ 9.35$ 8.27$ 10.94$



From net income -$ -$ -$ -$ -$ From realized gains - - - (1.61) 0.28 Return of capital - - - - - Total annual distributions -$ -$ -$ (1.61)$ 0.28$ Net Asset Value at December 31 9.22$ 9.83$ 9.29$ 8.23$ 10.94$

Ratios and supplmental dataNet assets ($ '000) 16,855$ 13,743$ 10,353$ 6,905$ 6,549$ Number of units outstanding 1,827,858 1,397,561 1,133,713 839 598,477 Management expense ratio (1) 3.05% 3.01% 2.95% 2.95% 2.95%Portfolio turnover rate of the underlying fund (2) 21.24% 46.81% 6.33% 6.11% 26.85%(*) Distributions were reinvested in the Fund.





Page 49 of 64



Assets Assets Assets AssetsRBC Canadian Equity Fund 17.0 RBC Global Dividend Growth Fund 4.6

Royal Bank of Canada 5.5 BlackRock Inc. 4.2Toronto-Dominion Bank 5.0 Pfizer Inc. 4.1Bank of Nova Scotia 3.6 Shire Plc. 3.2Suncor Energy Inc. 3.6 Swedbank AB 3.1Barrick Gold Corp. 3.3 Union Pacific Corp. 3.1

RBC U.S. Equity Fund 15.1 RBC Asian Equity Fund 4.6Exxon Mobil Corp. 3.5 Cash & Cash Equivalents 6.3Apple Inc. 3.4 Samsung Electronics Co. Ltd. 1.8Cash & Cash Equivalents 2.4 Mizuho Financial Group Inc. 1.5UnitedHealth Group Incorporated 2.3 China Petroleum & Chemical Corp. 1.4JPMorgan Chase & Co. 2.3 BHP Billiton Ltd. 1.4

RBC Bond Fund 11.8 RBC Canadian Dividend Fund 4.3Province of Ontario 4.200% Jun 2 20 3.6 Royal Bank of Canada 7.4Province of Ontario 4.650% Jun 2 41 3.1 Toronto-Dominion Bank 7.2Province of Ontario 6.500% Mar 8 29 2.9 Bank of Nova Scotia 5.1Province of Ontario 4.700% Jun 2 37 2.8 Cash & Cash Equivalents 4.2Province of Ontario 4.000% Jun 2 21 2.7 Canadian Imperial Bank of Commerce 3.8

RBC European Equity Fund 7.9 RBC U.S. Mid-Cap Equity Fund 4.0Royal Dutch Shell Plc. 4.6 Cash & Cash Equivalents 3.1GlaxoSmithKline Plc. 4.3 PetsMart Inc. 2.3BT Group Plc. 3.6 Tractor Supply Co. 2.2Cash & Cash Equivalents 3.4 Alexion Pharmaceuticals Inc. 2.1BP Plc. 3.1 Ameriprise Financial Inc. 2.0

RBC Global Bond Fund 7.9 RBC Canadian Money Market Fund 1.5Japan 10-Year Bond Future, March 2012 6.6 Bank of Montreal 1.201% Jun 5 12 3.2United Kingdom Gilt GBP 4.000% Mar 7 22 4.0 CIBC 1.150% Feb 13 12 3.0United States Treasury 0.250% Nov 30 13 2.8 Darwin Rec Trust - Senior Notes 1.139% Jan 4 12 2.9Cash & Cash Equivalents 2.4 Toronto-Dominion Bank 1.200% Feb 13 12 2.8Japan Gov Twenty Year JPY 1.600% Jun 20 30 2.3 Bay St Funding Trust - Class A 1.128% Jan 23 12 2.5

Phillips, Hager & North U.S. MSAC Equity Fund 6.3 Total % of top holdings of underlying 100.0Apple Inc. 2.5 mutual fundsExxon Mobil Corp. 2.4Chevron Corp. 2.0Cash & Cash Equivalents 1.9Pfizer Inc. 1.7

Phillips, Hager & North Canadian Growth Fund 5.3Toronto-Dominion Bank 5.1Royal Bank of Canada 5.1Bank of Nova Scotia 4.1Suncor Energy Inc. 3.5Barrick Gold Corp. 3.5

RBC Emerging Market Fund 5.0 China Mobile (Hong Kong) Ltd. 4.9Naspers Ltd. 4.3Taiwan Semiconductor Manufacturing Co. Ltd. 4.2Vale S.A. ADR 4.1America Movil S.A. de CV ADR 4.0



Page 50 of 64



IncomeDistribution from underlying funds 284$ 68 Realized gains on sale of investments 33,796 24,347 Increase (decrease) in unrealized appreciation of investments (463,748) 481,925

(429,668) 506,340 Expenses


206,245 162,901

Net income (loss) (635,913)$ 343,439$

Net income (loss) per unitSeries 1 (0.89)$ 0.59$ Series 2 (0.89) 0.58


AssetsInvestments in underlying funds at fair value 6,163,436$ 5,578,475$ Prepaid expenses 2,824 2,736 Due from RBC Life Insurance Company 6,590 5,855

6,172,850 5,587,066

LiabilitiesBank Indebtedness 1,625 1,591 Management fee payable 7,600 13,732 Insurance fee payable 4,574 8,254 Accounts payable and accrued liabilities 19,638 24,216

33,437 47,793



Net assets, beginning of the year 5,539,273$ 4,660,000$ Premium deposits 2,008,094 1,244,538 Net income (loss) (635,913) 343,439

6,911,454 6,247,977 Less

Withdrawals 772,041 708,704 772,041 708,704


Number of units outstandingSeries 1 102,900 89,565 Series 2 647,361 524,460


RBC Select Aggressive Growth GIP

Page 51 of 64





waiverMER before




2010 3.09 27,494 3.78 22,143 3.05 Series 2 2011 3.40 198,038 3.74 179,557 3.39

2010 3.41 171,533 4.06 140,758 3.33






Series 2 2011 524,460 203,122 (80,221) 647,361 2010 477,251 108,784 (61,575) 524,460


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Aggressive Growth Portfolio 2011 754,399 6,065,313$ 96.7938 6,163,436$ 8.17$ Fund, Series O 2010 639,821 5,016,603 98.4245 5,578,475 8.72


From net income -$ -$ -$ -$ -$ From realized gains - - (0.08) (2.13) (0.36) Return of capital - - - - - Total annual distributions -$ -$ (0.08)$ (2.13)$ (0.36)$ Net Asset Value at December 31 8.27$ 9.09$ 8.54$ 7.39$ 11.01$

Ratios and supplmental dataNet assets ($ '000) 851$ 814$ 608$ 326$ 343$ Number of units outstanding 102,900 89,565 71,280 44,103 31,134 Management expense ratio (1) 3.07% 3.05% 3.00% 3.00% 3.00%Portfolio turnover rate of the underlying fund (2) 5.76% 42.92% 4.23% 1.55% -

Series 2 f Value per unitDistributions: (*)








Page 52 of 64



Assets Assets Assets AssetsRBC Canadian Equity Fund 20.5 Phillips, Hager & North Canadian Growth Fund 5.1

Royal Bank of Canada 5.5 Toronto-Dominion Bank 5.1Toronto-Dominion Bank 5.0 Royal Bank of Canada 5.1Bank of Nova Scotia 3.6 Bank of Nova Scotia 4.1Suncor Energy Inc. 3.6 Suncor Energy Inc. 3.5Barrick Gold Corp. 3.3 Barrick Gold Corp. 3.5

RBC U.S. Equity Fund 17.7 Cash & Cash Equivalents 0.4Exxon Mobil Corp. 3.5 RBC Canadian Money Market Fund 0.2Apple Inc. 3.4 Bank of Montreal 1.201% Jun 5 12 3.2Cash & Cash Equivalents 2.4 CIBC 1.150% Feb 13 12 3.0UnitedHealth Group Incorporated 2.3 Darwin Rec Trust - Senior Notes 1.139% Jan 4 12 2.9JPMorgan Chase & Co. 2.3 Toronto-Dominion Bank 1.200% Feb 13 12 2.8

RBC European Equity Fund 11.8 Bay St Funding Trust - Class A 1.128% Jan 23 12 2.5Royal Dutch Shell Plc. 4.6 Total % of top holdings of underlying 100.0GlaxoSmithKline Plc. 4.3 mutual fundsBT Group Plc. 3.6Cash & Cash Equivalents 3.4BP Plc. 3.1

RBC Canadian Dividend Fund 10.3Royal Bank of Canada 7.4Toronto-Dominion Bank 7.2Bank of Nova Scotia 5.1Cash & Cash Equivalents 4.2Canadian Imperial Bank of Commerce 3.8

Phillips, Hager & North U.S. MSAC Equity Fund 8.5Apple Inc. 2.5Exxon Mobil Corp. 2.4Chevron Corp. 2.0Cash & Cash Equivalents 1.9Pfizer Inc. 1.7

RBC U.S. Mid-Cap Equity Fund 7.4Cash & Cash Equivalents 3.1PetsMart Inc. 2.3Tractor Supply Co. 2.2Alexion Pharmaceuticals Inc. 2.1Ameriprise Financial Inc. 2.0

RBC Emerging Markets Fund 6.9China Mobile (Hong Kong) Ltd. 4.9Naspers Ltd. 4.3Taiwan Semiconductor Manufacturing Co. Ltd. 4.2Vale S.A. ADR 4.1America Movil S.A. de CV ADR 4.0

RBC Asian Equity Fund 5.8Cash & Cash Equivalents 6.3Samsung Electronics Co. Ltd. 1.8Mizuho Financial Group Inc. 1.5China Petroleum & Chemical Corp. 1.4BHP Billiton Ltd. 1.4

RBC Global Dividend Growth Fund 5.4BlackRock Inc. 4.2Pfizer Inc. 4.1Shire Plc. 3.2Swedbank AB 3.1Union Pacific Corp. 3.1


Page 53 of 64



IncomeDistribution from underlying fund 24,338$ 8,092$ Realized gains on sale of investments 12,946 404 Increase (decrease) in unrealized appreciation of investments (21,581) 30,011

15,703 38,507 Expenses


26,956 9,816

Net income (loss) (11,253)$ 28,691$ Net income (loss) per unitSeries 1 (0.01)$ 1.26$ Series 2 (0.14) 0.67


AssetsInvestments in underlying funds at fair value 934,566$ 1,299,929$ Cash - 4,248 Prepaid expenses 2,822 2,734 Due from RBC Life Insurance Company 9,670 7,786

947,058 1,314,697

LiabilitiesBank indebtedness 2 - Management fee payable 1,091 2,510 Insurance fee payable 333 691 Accounts payable and accrued liabilities 17,466 16,296

18,892 19,497

Net assets 928,166$ 1,295,200$ Net asset value per unitSeries 1 10.46$ 10.64$ Series 2 10.49 10.62


Net assets, beginning of the year 1,295,200$ 10,022$ Premium deposits 164,968 1,256,487 Net income (loss) (11,253) 28,691

1,448,915 1,295,200 Less

Withdrawals 520,749 - 520,749 -

Net assets, end of the year 928,166$ 1,295,200$

Number of units outstandingSeries 1 500 49,542 Series 2 88,023 72,355


RBC DS Balanced Global GIP

Page 54 of 64





waiverMER before




2010 2.67 9,851 10.28 2,490 2.60 Series 2 2011 2.88 64,080 7.68 23,969 2.87

2010 2.88 46,136 17.90 7,326 2.84





(also see note 9) Series 1 2011 49,542 - (49,042) 500 2010 500 49,042 - 49,542

Series 2 2011 72,355 15,668 - 88,023 2010 500 71,855 - 72,355

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2011 934,566$ -$ -$ 934,566$ value (also see note 10) 2010 1,299,929 - - 1,299,929

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Balanced Global Fund, Series O 2011 89,586 926,117$ 99.8785 934,566$ 10.43$

2010 123,272 1,269,898 99.6558 1,299,929 10.55


From net income -$ -$ -$ N/A N/A From realized gains 0.15 - - N/A N/A Return of capital - - - N/A N/ATotal annual distributions 0.15$ -$ -$ N/A N/ANet Asset Value at December 31 10.46$ 10.64$ 10.02$ N/A N/A

Ratios and supplmental dataNet assets ($ '000) 5$ 527$ 5$ N/A N/ANumber of units outstanding 500 49,542 500 N/A N/AManagement expense ratio (1) 2.66% 2.60% 2.50% N/A N/APortfolio turnover rate of the underlying fund (2) 15.55% 16.11% 11.77% N/A N/A


From net income -$ -$ -$ N/A N/A From realized gains 0.09 - - N/A N/A Return of capital - - - N/A N/ATotal annual distributions 0.09$ -$ -$ N/A N/ANet Asset Value at December 31 10.49$ 10.62$ 10.02$ N/A N/A

Ratios and supplmental dataNet assets ($ '000) 923$ 768$ 5$ N/A N/ANumber of units outstanding 88,023 72,355 500 N/A N/AManagement expense ratio (1) 2.87% 2.84% 2.70% N/A N/APortfolio turnover rate of the underlying fund (2) 15.55% 16.11% 11.77% N/A N/A(*) Distributions were reinvested in the Fund.

The comparative data for the year 2008 and prior years not available as the Fund was introduced in 2009.





Page 55 of 64


% of % ofAssets Assets

RBC Advisor Canadian Bond Fund 23.2Canada Housing Trust No. 1 3.350% Dec 15 20 4.7Canada Housing Trust No. 1 2.200% Mar 15 14 3.5Province of Ontario 4.000% Jun 2 21 3.1Government of Canada 5.750% Jun 1 29 2.8Canada Housing Trust No. 1 2.700% Dec 15 13 2.7

RBC DS U.S. Focus Fund 22.4Apple Inc. 5.6Exxon Mobil Corp. 3.5Intel Corp. 3.2Time Warner Cable Inc. 3.1UnitedHealth Group Incorporated 3.1

RBC DS Canadian Focus Fund 21.7Barrick Gold Corp. 6.1Royal Bank of Canada 6.0Toronto-Dominion Bank 5.0Canadian National Railway Co. 4.5Suncor Energy Inc. 4.3

RBC International Dividend Growth Fund 14.8Swedbank AB 5.0British SKY Broadcasting Plc. 4.1Compass Group Plc. 4.1Seadrill Ltd. 4.0Diageo Plc. 4.0

RBC Global Corporate Bond 11.7RBC Emerging Market Bond Fund 9.7Cash & Cash Equivalents 3.7HSBC Holdings Plc. EUR 4.500% Apr 30 14 0.7Georgia-Pacific LLC 5.400% Nov 1 20 0.7Xerox Corp. 6.750% Feb 1 17 0.7

Cash & Cash Equivalents 6.2Total % of top holdings of underlying 100.0

mutual funds


Top holding of the underlying fund (Unaudited)

Page 56 of 64



IncomeDistribution from underlying funds 1,635$ 4,231$ Realized gains on sale of investments 1,407 971 Increase (decrease) in unrealized appreciation of investments (10,170) 19,285

(7,128) 24,487 Expenses


10,564 6,219

Net income (loss) (17,692)$ 18,268$ Net income (loss) per unitSeries 1 (0.61)$ 0.78$ Series 2 (0.49) 0.86


AssetsInvestments in underlying funds at fair value 429,898$ 248,986$ Cash - 4,267 Prepaid expenses 2,821 2,734 Due from RBC Life Insurance Company 9,831 8,470

442,550 264,457

LiabilitiesBank indebtedness 2 - Management fee payable 502 589 Insurance fee payable 220 264 Accounts payable and accrued liabilities 12,340 14,311

13,064 15,164

Net assets 429,486$ 249,293$ Net asset value per unitSeries 1 10.31$ 10.69$ Series 2 10.29 10.68



429,486 249,293 Less

Withdrawals - - - -


Number of units outstandingSeries 1 8,528 500 Series 2 33,178 22,845


RBC DS Growth Global GIP

Page 57 of 64





waiverMER before




2010 2.94 2,517 49.91 142 2.82 Series 2 2011 2.95 46,768 15.69 8,763 2.94

2010 2.95 48,598 23.16 6,077 2.90





(also see note 9) Series 1 2011 500 8,028 - 8,528 2010 500 - - 500

Series 2 2011 22,845 10,333 - 33,178 2010 500 22,345 - 22,845


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Growth Global Fund, Series O 2011 41,061 420,754$ 99.7401 429,898$ 10.47$

2010 23,605 229,672 98.0892 248,986 10.55


From net income -$ -$ -$ N/A N/A From realized gains - 0.04 - N/A N/A Return of capital - - - N/A N/ATotal annual distributions -$ 0.04$ -$ N/A N/ANet Asset Value at December 31 10.31$ 10.69$ 10.03$ N/A N/A

Ratios and supplmental dataNet assets ($ '000) 88$ 5$ 5$ N/A N/ANumber of units outstanding 8,528 500 500 N/A N/AManagement expense ratio (1) 2.93% 2.82% 2.75% N/A N/APortfolio turnover rate of the underlying fund (2) 15.19% 15.36% 13.32% 22.89% N/A


From net income -$ -$ -$ N/A N/A From realized gains - 0.04 - N/A N/A Return of capital - - - N/A N/ATotal annual distributions -$ 0.04$ -$ N/A N/ANet Asset Value at December 31 10.29$ 10.68$ 10.02$ N/A N/A

Ratios and supplmental dataNet assets ($ '000) 342$ 244$ 5$ N/A N/ANumber of units outstanding 33,178 22,845 500 N/A N/AManagement expense ratio (1) 2.94% 2.90% 2.95% N/A N/APortfolio turnover rate of the underlying fund (2) 15.19% 15.36% 13.32% 22.89% N/A(*) Distributions were reinvested in the Fund.

The comparative data for the year 2008 and prior years not available as the Fund was introduced in 2009.





Page 58 of 64


% of % ofAssets Assets

RBC DS U.S. Focus Fund 27.8Apple Inc. 5.6Exxon Mobil Corp. 3.5Intel Corp. 3.2Time Warner Cable Inc. 3.1UnitedHealth Group Incorporated 3.1

RBC DS Canadian Focus Fund 27Barrick Gold Corp. 6.1Royal Bank of Canada 6.0Toronto-Dominion Bank 5.0Canadian National Railway Co. 4.5Suncor Energy Inc. 4.3

RBC International Dividend Growth Fund 19.9Swedbank AB 5.0British SKY Broadcasting Plc. 4.1Compass Group Plc. 4.1Seadrill Ltd. 4.0Diageo Plc. 4.0

RBC Advisor Canadian Bond 13.1Canada Housing Trust No. 1 3.350% Dec 15 20 4.7Canada Housing Trust No. 1 2.200% Mar 15 14 3.5Province of Ontario 4.000% Jun 2 21 3.1Government of Canada 5.750% Jun 1 29 2.8Canada Housing Trust No. 1 2.700% Dec 15 13 2.7

RBC Global Corporate Bond 6.6RBC Emerging Market Bond Fund 9.7Cash & Cash Equivalents 3.7HSBC Holdings Plc. EUR 4.500% Apr 30 14 0.7Georgia-Pacific LLC 5.400% Nov 1 20 0.7Xerox Corp. 6.750% Feb 1 17 0.7

Cash & Cash Equivalents 5.6Total % of top holdings of underlying 100.0

mutual funds


Top holding of the underlying fund (Unaudited)

RBC GUARANTEED INVESTMENT FUNDS Notes to the financial statements December 31, 2011

Page 59 of 64

1. THE FUNDS RBC Guaranteed Investment Funds (“GIF”) and RBC Guaranteed Investment Portfolios (“GIP”) are segregated funds comprised of the following funds and portfolios: Funds:

RBC Canadian Money Market GIF RBC Canadian Short-Term Income GIF RBC Bond GIF RBC PH&N Total Return Bond GIFRBC Global Bond GIF RBC Balanced GIF RBC PH&N Monthly Income GIFRBC Global Balanced GIF (formerly, RBC Balanced Growth GIF )RBC Canadian Dividend GIF RBC Canadian Equity GIF RBC O'Shaughnessy All Canadian Equity GIF RBC DS Canadian Focus Fund GIFRBC North American Growth GIF RBC U.S. Dividend GIF (formerly, RBC North American Dividend GIF)RBC U.S. Equity GIF RBC O'Shaughnessy U.S. Value GIF RBC U.S. Mid-Cap Equity GIF RBC Global Dividend Growth GIF RBC O'Shaughnessy International Equity GIF

Portfolios:

RBC Select Conservative GIPRBC Select Balanced GIPRBC Select Growth GIPRBC Select Aggressive Growth GIPRBC DS Balanced Global GIPRBC DS Growth Global GIP Both the funds and 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 and sole issuer of the individual variable annuity contracts providing for investment in 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, a wholly owned subsidiary of Royal Bank of Canada. All investment transactions with the corresponding underlying RBC Global Asset Management Inc. managed mutual funds are at quoted market values. The Funds pay management fees and insurance fees to RBC Life Insurance Company as disclosed in the Statement of Operations of each Fund as indicated in the Supplementary Information. Some of the Funds will invest in units of only one underlying mutual fund managed by RBC Global Asset Management Inc., while others, referred to in these financial statements as “Portfolios”, will invest in units of underlying portfolios.


Page 60 of 64

2. FUTURE CHANGES IN ACCOUNTING STANDARDS

International financial reporting standards (“IFRS”) On April 7, 2008, the Canadian Accounting Standards Board (“AcSB”) released an Omnibus exposure draft entitled “Adopting IFRS in Canada”, which covers among other things, the incorporation of IFRS into the CICA Handbook. The exposure draft calls for Canadian publicly accountable entities to adopt IFRS for fiscal years beginning on or after January 1, 2011. In December 2011, AcSB announced that the adoption by investment funds would be delayed to January 1, 2014. As a result, IFRS will be adopted by the Funds on January 1, 2014 and their first set of IFRS compliant financial statements will be for the year ending December 31, 2014.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The following is a summary of the significant accounting policies:

a) Investments

The investments in underlying mutual funds are valued 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 unrealized appreciation or depreciation in value of investments are calculated on an average cost basis.

b) Income recognition

Distributions from investments are recorded when declared by the underlying mutual fund. Interest income is accrued on a daily basis.

c) Net asset value per unit

Net asset value 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 per unit

Net income per unit in the Statements of Operations represents the increase (decrease) in net assets from operations attributable to the series for the period, divided by the average number of units outstanding at the end of the period.

e) Use of estimates

These financial statements are prepared in accordance with Canadian generally accepted accounting principles, and include estimates and assumptions by management that affect 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 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.


Page 61 of 64

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

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 presents the details of units held by each Fund of the underlying funds as at December 31, 2011. Also disclosed on the Supplementary Information are the top 25 holdings of the underlying funds. The Funds do not manage their underlying mutual funds and therefore the quantitative and qualitative risk disclosures have not been disclosed. For further information on the financial instruments risk of the underlying fund and the sensitivity to price changes please refer to the financial statements of the underlying fund 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.

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 market 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. The underlying mutual funds only buy and sell investments through brokers which are considered to be approved counterparties, thus minimizing the risk of default during settlement.


Page 62 of 64

4. FINANCIAL INSTRUMENTS RISK (continued)

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. As the Funds only invest in Canadian denominated underlying mutual funds, the Funds do not have a direct currency risk exposure. 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. 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. The Funds’ assets are 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. 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. The Funds are exposed to the market risk of the underlying mutual funds.


Page 63 of 64

5. FINANCIAL RISK MANAGEMENT

RBC GIFs use a fund-of-fund structure to invest in underlying mutual funds exclusively managed by RBC Global Asset Management and its partners. As part of the fund selection process for RBC GIF, the existing funds line-up are reviewed at least annually 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 and require approval from the Investment Executive Committee.

Ongoing monitoring throughout the year by the Funds’ management includes monitoring any organizational or fund changes announced by 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 the investment objectives and strategies as detailed in the Information Folder. The Information Folder also details the specific risks that the underlying mutual funds could be exposed to. Such risks 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 to ensure that the existing asset mix and weightings continue to meet the current and future needs of the Funds.

6. CAPITAL MANAGEMENT

CICA Handbook section 1535 “Capital Disclosure”, requires that the Fund disclose information about its objectives, policies and process for managing capital including disclosure of any externally imposed capital requirements and the consequences of any non-compliance. The Funds consider their net assets to be their respective capital, the relevant capital movements are disclosed in the Statement of Changes in Net Assets. The Funds have no externally imposed capital requirements.

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 from Fund to Fund and between Series and are stated as an annualized percentage of the daily market value of the net assets of the Fund attributed to that Series. Management and insurance fees are calculated and accrued at the end of each valuation date using a daily factor of the annualized management and insurance fee percentages. Management and insurance fees are reimbursed monthly to the manager.

8. OTHER EXPENSES ABSORBED BY MANAGER

In addition to the management and insurance fees, the Funds also bear all operating and administrative expenses including legal and audit fees. The management expense ratio (“MER”) is all of the expenses of the Fund expressed as a percentage of the Fund’s average net asset value. Management fees and other administrative expenses charged to the Funds are subject to the Harmonized Sales Tax (HST) in Ontario, Nova Scotia, New Brunswick and Newfoundland and Labrador.


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8. OTHER EXPENSES ABSORBED BY MANAGER (continued)

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 unitholders’ reside. Since each fund will have unitholders’ 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 unitholders’ assets. Therefore the blended rate is likely to be different for each fund. The RBC Life Insurance Company absorbed/waived certain expenses of the Funds when the aggregate expenses exceeded a certain percentage (“MER cap”) of the average daily net asset value of each Series of the Funds. Included in Due from RBC Life Insurance Company, in the Statements of Net Assets, are balances of expenses absorbed by RBC Life Insurance Company. The MER of a Fund is subject to change without prior notification.

9. SUMMARY OF SALES AND REDEMPTIONS OF UNITS

Units of the Fund series, which are redeemable at the option of the holder in accordance with the provision of Information Folder, 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.

10. FAIR VALUE

Investments recorded at fair value on the Funds’ Statement of Net Assets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by Section 3862 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.

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. VPS68158 (12/2011)

AUDITED FINANCIAL STATEMENTS - Personal Insurance · 2017-06-04 · We have audited the accompanying financial statements of the RBC Guaranteed Investment Funds, which comprise the

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