RBC strategic asset allocation models traditional

Page 1 of 6

RBC Strategic Asset Allocation
Models

United States Traditional Models | Very conservative

Risk Profile 1

The focus is capital preservation. The portfolio will typically be invested mainly in fixed income and other low volatility
instruments with a small allocation to equities to provide some protection against inflation. The investor in this category has a
low tolerance for loss over their investment horizon.

Asset allocation summary Cumulative portfolioHypothetical model performance (January 1978 – December 2015)
value (1978=1)
2% 60
50
20% 40
30
78% n Cash 20
n Fixed Income 10
0
n Equities 0 -10
-20
Asset allocation model % -30Drawdown (%)
Cash -40
Fixed income 2 Calendar year returns (%) -50
Government -60
Corporqate-IG 78 1978
Corporate-HY 35 40 1979 %
International 1980 3.9
Emerging markets 33 30 1981 4.5
Equities 1982
US - Large Cap - 20 1983
US - Mid Cap 1984
US - Small Cap 10 10 1985
International - 1986
Emerging markets 1987
Total 0 1988
1989
20 1990
11 -10 1991
1992
- -20 1993
1994
- -30 1995
1996
9 -40 1997
- 1998
1999
100 2000
2001
Historical performance 2002
(January 1978 to 2003
December 2015) 2004
2005
Return (annualized) 2006
2007
Risk (standard deviation) 2008
2009
2010
2011
2012
2013
2014
2015

% Long-term returns forecast
(5 to 10 year horizon,
before fees)

8.5 Return (annualized)

6.0 Risk (standard deviation)

The hypothetical performance for each model is based on the returns of indexes. Indexes are unmanaged and used as a broad measure of market performance. It
is not possible to invest directly into an index. Please see page six for the indexes used for these calculations. Past performance does not guarantee future results.
Please see the disclosures section for important information regarding the data presented here.

Page 2 of 6

RBC Strategic Asset Allocation
Models

United States Traditional Models | Conservative

Risk Profile 2

The focus is wealth preservation which includes an element of growth to retain the real (inflation-adjusted) value of the portfolio.
The portfolio will typically include fixed income instruments as well as some exposure to growth assets. The investor in this
category has some tolerance for loss over their investment horizon.

Asset allocation summary Cumulative portfolioHypothetical model performance (January 1978 – December 2015)
value (1978=1)
2% 60
50
35% 40
63% 30
20
n Cash 10 0
n Fixed Income -10
n Equities 0 -20
-30
Asset allocation model % -40Drawdown (%)
Cash -50
Fixed income 2 Calendar year returns (%) -60
Government
Corporqate-IG 63 1978 %
Corporate-HY 21 40 1979 4.6
International 1980 6.3
Emerging markets 22 30 1981
Equities 1982
US - Large Cap 5 20 1983
US - Mid Cap 10 10 1984
US - Small Cap 1985
International 5 1986
Emerging markets 35 0 1987
Total 15 -10 1988
1989
5 -20 1990
1991
- -30 1992
1993
15 -40 1994
- 1995
1996
100 1997
Historical performance 1998
(January 1978 to 1999
December 2015) 2000
2001
Return (annualized) 2002
2003
Risk (standard deviation) 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

% Long-term returns forecast
(5 to 10 year horizon,
before fees)

9.4 Return (annualized)

7.4 Risk (standard deviation)

The hypothetical performance for each model is based on the returns of indexes. Indexes are unmanaged and used as a broad measure of market performance. It
is not possible to invest directly into an index. Please see page six for the indexes used for these calculations. Past performance does not guarantee future results.
Please see the disclosures section for important information regarding the data presented here.

Page 3 of 6

RBC Strategic Asset Allocation
Models

United States Traditional Models | Balanced

Risk Profile 3

The focus is a balance between capital appreciation and wealth preservation. The portfolio may include exposure to all asset
classes and carries moderate risk of loss over the investment horizon.

Asset allocation summary Cumulative portfolioHypothetical model performance (January 1978 – December 2015)
value (1978=1)
2% 60
50
55% 43% 40
30
n Cash 20 0
n Fixed Income 10 -10
n Equities -20
0 -30
-40
Asset allocation model % -50Drawdown (%)
Cash -60
Fixed income 2 Calendar year returns (%)
Government %
Corporqate-IG 43 1978 5.7
Corporate-HY 11 40 1979 9.0
International 1980
Emerging markets 12 30 1981
Equities 1982
US - Large Cap 5 20 1983
US - Mid Cap 10 10 1984
US - Small Cap 1985
International 5 1986
Emerging markets 55 0 1987
Total 23 -10 1988
1989
7 -20 1990
1991
- -30 1992
1993
20 -40 1994
5 1995
1996
100 1997
1998
Historical performance 1999
(January 1978 to 2000
December 2015) 2001
2002
Return (annualized) 2003
2004
Risk (standard deviation) 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

% Long-term returns forecast
(5 to 10 year horizon,
before fees)

10.3 Return (annualized)

9.7 Risk (standard deviation)

The hypothetical performance for each model is based on the returns of indexes. Indexes are unmanaged and used as a broad measure of market performance. It
is not possible to invest directly into an index. Please see page six for the indexes used for these calculations. Past performance does not guarantee future results.
Please see the disclosures section for important information regarding the data presented here.

Page 4 of 6

RBC Strategic Asset Allocation
Models

United States Traditional Models | Growth

Risk Profile 4

The focus is long term capital appreciation with a secondary focus on wealth preservation. The majority of the portfolio will typically
be invested in a blend of growth assets. The investor in this category has a higher tolerance for risk over their investment horizon.

Asset allocation summary Cumulative portfolioHypothetical model performance (January 1978 – December 2015)
value (1978=1)
2% 60
50
28% 40
30
70% n Cash 20
n Fixed Income 10
n Equities 0
0 -10
-20
Asset allocation model % -30Drawdown (%)
Cash -40
Fixed income 2 Calendar year returns (%) -50
Government -60
Corporqate-IG 28 1978
Corporate-HY 6 40 1979 %
International 1980 6.3
Emerging markets 7 30 1981 11.1
Equities 1982
US - Large Cap 5 20 1983
US - Mid Cap 5 10 1984
US - Small Cap 5 1985
International 70 0 1986
Emerging markets 26 -10 1987
Total 1988
7 -20 1989
1990
4 -30 1991
1992
26 -40 1993
7 1994
1995
100 1996
1997
Historical performance 1998
(January 1978 to 1999
December 2015) 2000
2001
Return (annualized) 2002
2003
Risk (standard deviation) 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

% Long-term returns forecast
(5 to 10 year horizon,
before fees)

10.7 Return (annualized)

11.4 Risk (standard deviation)

The hypothetical performance for each model is based on the returns of indexes. Indexes are unmanaged and used as a broad measure of market performance. It
is not possible to invest directly into an index. Please see page six for the indexes used for these calculations. Past performance does not guarantee future results.
Please see the disclosures section for important information regarding the data presented here.

Page 5 of 6

RBC Strategic Asset Allocation
Models

United States Traditional Models | Aggressive Growth

Risk Profile 5

The focus is the maximization of long term capital appreciation. The portfolio will be invested mainly in growth assets and may have
a higher proportion of higher risk investments and possible concentrations. The investor in this category has a high tolerance for
risk over their investment horizon.

Asset allocation summary Cumulative portfolioHypothetical model performance (January 1978 – December 2015)
value (1978=1)
2% 60
50 0
98% n Cash 40 -10
n Fixed Income 30 -20
n Equities 20 -30
10 -40
-50
0 -60

Asset allocation model % % Drawdown (%)
Cash 7.3
Fixed income 2 Calendar year returns (%) 14.9
Government
Corporqate-IG - 1978
Corporate-HY - 40 1979
International 1980
Emerging markets - 30 1981
Equities 1982
US - Large Cap - 20 1983
US - Mid Cap - 10 1984
US - Small Cap - 1985
International 1986
Emerging markets 0 1987
Total 1988
98 1989
36 -10 1990
1991
11 -20 1992
1993
5 -30 1994
1995
36 -40 1996
10 1997
1998
100 1999
2000
Historical performance 2001
(January 1978 to 2002
December 2015) 2003
2004
Return (annualized) 2005
2006
Risk (standard deviation) 2007
2008
2009
2010
2011
2012
2013
2014
2015

% Long-term returns forecast
(5 to 10 year horizon,
before fees)

11.3 Return (annualized)

14.7 Risk (standard deviation)

The hypothetical performance for each model is based on the returns of indexes. Indexes are unmanaged and used as a broad measure of market performance. It
is not possible to invest directly into an index. Please see page six for the indexes used for these calculations. Past performance does not guarantee future results.
Please see the disclosures section for important information regarding the data presented here.

Page 6 of 6 RBC Strategic Asset Allocation Models, continued

The following indices have been used for each asset class: USD Cash - Citi Certificate of Deposit 1 Month (USD); Government Fixed
Income - Barclays US Aggregate - Government; US Corporate Investment Grade Fixed Income - Barclay’s US Aggregate - Corporate
(Investment Grade); US Corporate High Yield Fixed Income - Bank of America Merrill Lynch US High Yield; International Fixed
Income - Citi Non-USD WGBI, USD hedged; Emerging Markets Fixed Income - JPM EMBI Global Diversified; US Large Cap Equities
- S&P 500 Total Return; US Mid Cap Equities - S&P MidCap 400 Total Return; US Small Cap Equities - S&P Small Cap 600 Total
Return; International (EAFE) Equities - MSCI EAFE (Net); Emerging Markets Equities - MSCI Emerging Markets (Net).

Prior to January 2001, which is the first month when all indices became available, the following re-weighting methodology is
used: Prior to Jan 2001: Emerging Markets Equity is represented by the MSCI Emerging Markets (Gross) index. Prior to Feb 1994:
US Mid Cap Equities and US Small Cap Equities are represented by the Russell Midcap and Russell 2000 indices, respectively.
Prior to Jan 1994: the Emerging Markets Fixed Income allocation is reallocated to International Fixed Income. Prior to Jan 1988:
Emerging Market Equities are reallocated to US Large Cap Equities and International (EAFE) Equities on a pro-rata basis following
the target ratios of the respective model. Prior to Sep 1986: US Corporate - High Yield Fixed Income is reallocated to US Corporate
- Investment Grade Fixed Income. Prior to Jan 1985: International Fixed Income is reallocated to US Government Fixed Income and
US Corporate Fixed Income on a pro-rata basis following the target ratios of the respective model. Prior to Jan 1979: US Mid Cap
Equities and US Small Cap Equities are reallocated to US Large Cap Equities.

The performance of these models do not reflect advisory fees, commissions or taxes.

These asset allocation models represent possible allocations based on responses to questions regarding personal circumstances,
financial goals and individual risk tolerance. Asset allocation is only one of the pieces having varying degrees of importance in the
overall performance of an investment vehicle. Past performance is never a guarantee of future results. Thus, there is no guarantee
or assurances that the portfolio you choose will produce the same results as any of the portfolio asset allocation models
illustrated.

The estimated expected return rates are forward looking projections based on current market conditions. The following
components are considered when determining estimated return rates: forward looking assumptions, historical returns, dividend
yield, rate of corporate earnings growth, and changes in the price/ earnings ratio, projected inflation, asset class risk premiums
and on more subjective considerations that involve economic forecasting.

This information is not intended to be used as the primary basis of investment decisions. Because of individual client
requirements, it should not be construed as advice designed to meet particular investment needs of any investor. The illustrated
models are based on different indexes which cannot be invested in. Therefore, estimated expected return rates should not be
construed as projecting actual returns of your specific investments.

International investing involves risks not typically associated with U.S. investing, including currency fluctuation, foreign taxation,
political instability and different accounting standards.

RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. © 2016 All rights reserved. 3876 (03/16)