RBC Balanced Fund - Mutual Funds

1 Printed on July 24, 2018 2018. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete ortimely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the Balanced FundInvestment ObjectiveTo provide a combination of capital growth and modestincome by investing primarily in a balance of Canadianequities, bonds and short-term debt DetailsSeriesLoad StructureCurrencyFund CodeANo LoadCADRBF272 AdvDeferred SalesCADRBF838 AdvFront EndCADRBF738 AdvLow LoadCADRBF123T5No LoadCADRBF536T8No LoadCADRBF596 Inception DateDecember 1987 Total fund Assets $Mil5.

2 A NAV $ A MER % FTSE TMX CanadaUniverse Bond Index35% S&P/TSX CappedComposite Total ReturnIndex10% S&P 500 Total ReturnIndex (CAD)7% MSCI EAFE TotalReturn Net Index (CAD)3% MSCI EmergingMarkets Total Return NetIndex (CAD)Income DistributionQuarterlyCapital Gains DistributionAnnuallySales StatusOpenMin. Investment $500 Subsequent Investment $25 fund CategoryCanadian NeutralBalancedManagement CompanyRBC Global AssetManagement Analysisas of June 30, 2018 Asset Mix% StyleValueBlendGrowthLargeMidSmallStatis ticsP/B Mkt Cap.

3 $ 5 Sectors% IncomeBreakdown%Govt. & Term tomaturity (Yrs) Duration(Yrs) to 25 Holdings% AssetsRBC Emerging Markets Equity Bank of Toronto-Dominion of Nova Energy (Government of) S&P/Tsx 60 Index (Government of) Canadian Small & Mid-Cap Res (Government of) National Railway (Province Of) (Province Of) of (Province Of) Natural Resources Quebec Asset Management Inc Class (Province Of) (Government of) (Province Of) (Province Of) (Province Of)

4 3% % of Top 25 Number of Portfolio Holdings599 Total Number of Stock Holdings783 Total Number of Bond Holdings329 Total Number of Other Holdings15 Total Number of Underlying Holdings1,127 Performance Analysis as of June 30, 2018681012141618 Growth of $10,000 Series A$13, Returns %Series AFundQuartile1 Mth3 Mth6 Mth1 Yr3 Yr5 Yr10 YrSince Return % Quartile680678677662527413152 No. of Funds in CategoryPrinted on July 24, 2018 2018. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete ortimely.

5 Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the Balanced FundManagement OverviewManager BiosStuart KedwellRBC Global Asset Management Kedwell is Senior Vice President and Co-Head,North American Equities. He has been in the investmentindustry since FijalkowskiRBC Global Asset Management Head of Global Fixed Income and Currencies,Dagmara leads investment teams in Toronto, London andMinneapolis in charge of almost $100 billion in fixedincome assets.

6 She heads management of several bondfunds and manages foreign-exchange hedging and activecurrency overlay programs across a number of , who began her investment career in 1994,holds an MBA from the Richard Ivey School of Business,a Master s degree in economics from the University ofLodz in Poland and is a CFA Analysis Cont'd as of June 30, 2018 Distributions ($)/UnitYTD*2017201620152014201320122011 201020092008 Total Dividends Capital Gains Return Of Capital EndedEndedEndedEnded7-19973-20068-20009- 20052-20092-20095-20128-2010 Best/Worst Periods %1 Yr3 Yr5 Yr10 of Periods289265241181 Pct.

7 * Distributions are characterized into income type at Commentary as at June 30, 2018 The second quarter of 2018 was marked byescalating trade tensions between the andmuch of the world, as President Trump made goodon his promise to institute billions of dollars intariffs. Against this backdrop, economicgrowth accelerated, while the expansion appearedto slow in Europe and emerging fund s overweight position in equities andunderweight position in fixed income had a neutralimpact on performance. Global government bondswere mixed, with Treasuries finishing theperiod essentially flat while German and Japanesebonds rose.

8 Canadian bonds posted modest gainsduring the period, as the trade conflict and slowingglobal growth capped yields on Government ofCanada debt. Returns were boosted by anoverweight position in longer-term investment-grade fixed equity markets continued to fluctuate in thequarter as the trade conflict moved beyond the and China to engulf Europe and equity prices slumped while Canadianstocks rebounded, supported by rising oil fund s performance was held back by anoverweight position in emerging-market equities,offset by the positive impact of security selectionin Canadian growth slowed in the first half of 2018.

9 But remains at its most solid since the financialcrisis amid fiscal stimulus and business andconsumer optimism. The portfolio managerexpects continued expansion, encouraging centralbanks to nudge rates higher and acting as aheadwind for bond returns. As a result, the Fundremains underweight fixed income, but less sothan at previous points in the cycle. Stocks offermore attractive prospects. The portfolio managerhas been moderating risk-taking but the potentialupside in earnings still justifies a mild overweightin on July 24, 2018 2018.

10 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete ortimely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the Balanced FundDisclosureRBC Funds , BlueBay Funds , PH&N Funds andRBC Corporate Class Funds are offered byRBC Global Asset Management Inc.