PH&N Monthly Income Fund - D - Mutual Funds

Printed on March 17, 2016

PH&N Monthly Income Fund

Fund Category Morningstar Rating™ No. of Funds in Category
Canadian Neutral Balanced QQ 478

Investment Objective Portfolio Analysis as of February 29, 2016

The fundamental investment objective of the Fund is to Asset Mix % Assets Top 10 Holdings % Assets
provide a relatively high monthly income that may RBC High Yield Bond Fund 5.9
consist of dividend income, interest income, realized Cash 6.6 Royal Bank Of Canada 3.8
capital gains and a return of capital, with the potential PH&N High Yield Bond Fund 3.8
for modest capital growth, by investing in a well- Fixed Income 37.7 Bank of Nova Scotia 3.4
diversified balanced portfolio of income-producing equity The Toronto-Dominion Bank 3.2
securities including, but not limited to, common shares of Canadian Equity 50.3
Canadian companies that pay dividends and income Enbridge Inc 2.6
trusts, and fixed income securities such as preferred US Equity 0.3 Manulife Financial Corp 2.4
shares, government and corporate bonds, debentures CI Financial Corp 1.8
and notes. International Equity 0.0 Ontario Prov Cda 7.6% 02-06-2027 1.7
Rogers Communications Inc Class B 1.7
Other 5.2
Total % of Top 10 Holdings 30.2
Equity Style Statistics % Total Number of Portfolio Holdings 362
P/B Ratio 1.4 Total Number of Stock Holdings 52
Fund Details Currency Fund Code Large Mid Small P/E Ratio 13.3 Total Number of Bond Holdings 1,129
CAD RBF1660 Total Number of Other Holdings 93
Series Load Structure Avg. Mkt Cap. $B 18.7 Total Number of Underlying Holdings 1,274
D No Load

Inception Date December 2009 Value Blend Growth
Total Fund Assets $Mil
Series D NAV $ 2,384.2 Top 5 Sectors % Equity
Series D MER % Financials 46.6
Benchmark 9.41 Energy 21.0
Industrials 9.1
1.09 Consumer Discretionary 6.3
Consumer Staples 5.6
50% S&P/TSX Capped
Composite Total Return Income-Generating Asset-Class % Assets
35% FTSE TMX Canada Common Shares 50.6
Universe Bond Government Bonds 17.6
10% Merrill Lynch Cdn Investment-Grade Corporate Bonds 10.6
High Yield High Yield Bonds 9.4
5% S&P/TSX Preferred Other 6.6
Share Total Return Preferred Shares 5.2

Income Distribution Monthly

Capital Gains Distribution Annually

Sales Status Open Performance Analysis as of February 29, 2016
Min. Investment $ 500
Subsequent Investment $ 25

Management Company RBC Global Asset 15 Growth of $10,000
Web Site Management Inc. 14 Series D
13 $13,672
www.rbcgam.com
12

11

10

9

15 Calendar Returns %
10 Series D

5

0

-5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Fund
Quartile
— — — — 12.5 1.6 8.3 7.8 7.5 -3.8 -1.0
— — — — 1st 2nd 1st 4th 3rd 4th 1st

1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr Since Incep. Trailing Return %

0.0 -2.5 -1.6 -7.9 2.4 3.3 — 5.2 Fund
1st 2nd 2nd 4th 4th 3rd — — Quartile
No. of Funds in Category
642 636 626 606 478 325 126 —

©2016. 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 or
timely. 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 disclosure
page.

Printed on March 17, 2016

PH&N Monthly Income Fund
Management Overview

Manager Bios Performance Analysis Cont'd as of February 29, 2016

Scott Lysakowski Distributions ($)/Unit YTD* 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Phillips, Hager & North Investment Management Total Distributions 0.08 0.53 1.14 0.71 0.50 0.53 0.50 — — — —
Scott is the co-Head of Canadian equity research and a Interest 0.08 0.01 0.08 0.15 0.14 0.23 0.16 — — — —
portfolio manager at Phillips, Hager & North Investment Dividends
Management. He is the lead manager of the PH&N Capital Gains — 0.21 0.18 0.19 0.20 0.19 0.13 — — — —
Canadian Income Fund and the Canadian equity portion Return Of Capital — 0.04 0.88 0.37 0.12 0.08 0.19 — — — —
of the PH&N Monthly Income Fund. Scott joined the firm — 0.27 — — 0.04 0.03 0.02 — — — —
in 2002 and remains focused on researching and
managing Canadian equities with a specialization in Best/Worst Periods % Ended 1 Yr Ended 3 Yr Ended 5 Yr Ended 10 Yr
dividend and income-producing portfolios. 9.9 2-2015 7.8 — —
Best 8-2014 18.5 9-2014 2.4 2-2016 3.3 — —
PH&N Fixed Income Team 6.7 6.1 —
With one of the largest bond desks in Canada consisting Worst 2-2016 -7.9 2-2016 39 15 —
of over 30 investment professionals, Phillips, Hager & 100.0 100.0 —
North Investment Management (PH&N IM) has been Average 6.1
managing bonds since 1970 and currently manages fixed
income portfolios according to strict quality and No. of Periods 63
diversification guidelines. PH&N IM’s strengths as a
bond manager are directly related to its depth of Pct. Positive 84.1
resources – both people and technology – dedicated to
the management of fixed income portfolios. * Distributions are characterized into income type at year-end.

Quarterly Commentary as at December 31, 2015

With heightened volatility in the fixed income stocks have been volatile recently and offered
market, we have been nimble in our strategies good trading opportunities in the quarter. Oil field
within the Fund to take advantage of opportunities services company Precision Drilling also added
as they appear. We have kept the Fund’s overall value thanks to well-timed trades.
duration close to its benchmark, but have made
tactical adjustments at the margins as rates spiked Materials was the largest detracting sector, due to
mid-quarter before receding. These adjustments overweight positions in mining companies First
worked well, adding a small amount of relative Quantum and Teck Resources, which suffered from
performance without leaving the Fund exposed to weakening base metal and coal prices during the
excessive interest-rate risk. We again reduced quarter. Oil and gas royalty company PrairieSky
corporate bond exposure this quarter after liquidity was another significant detractor, although we
continued to dry up. We also continued to focus on continue to like the company and used the recent
less cyclical industries and higher-quality issuers weakness to add to our position.
for additional protection in case fear prevails and
corporate bonds sell off further. We continue to focus on securities that help the
portfolio achieve its goal of generating above-
Within equities, stock selection added value in the average yield with below-average volatility. We
Energy sector, in particular the Fund’s holdings of are focused on building a portfolio around
exploration and production companies Baytex companies that are growing both their free cash
Energy and Canadian Natural Resources; these flow and their dividends.

©2016. 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 or
timely. 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 disclosure
page.

Printed on March 17, 2016

PH&N Monthly Income Fund
Disclosure

RBC Funds, PH&N Funds and RBC Corporate This document has been compiled by RBC contained in the fund profile without seeking
Class Funds are offered by RBC Global Asset Global Asset Management Inc. (RBC GAM) the advice of an appropriate professional
Management Inc. and distributed through from sources believed to be reliable, but no advisor.
authorized dealers. representations or warranty, express or
implied, are made by RBC GAM, its affiliates Quartile rankings are determined by
Commissions, trailing commissions, or any other person as to its accuracy, Morningstar Research Inc., an independent
management fees and expenses all may be completeness or correctness. All opinions research firm, based on categories
associated with mutual fund investments. and estimates constitute RBC GAM's maintained by the Canadian Investment
Please read the prospectus or Fund Facts judgment as of the date of this document, are Funds Standards Committee (CIFSC). Quartile
document before investing. Except as subject to change without notice and are rankings are comparisons of the performance
otherwise noted, the indicated rates of return provided in good faith but without legal of a fund to other funds in a particular
are the historical annual compounded total responsibility. The Top Ten/25 Holdings may category and are subject to change monthly.
returns including changes in unit value and change due to ongoing portfolio transactions The quartiles divide the data into four equal
reinvestment of all distributions and do not within the fund. The Prospectus and other segments expressed in terms of rank (1, 2, 3
take into account sales, redemption, information about the underlying investment or 4). This is the Morningstar quartile ranking
distribution or optional charges or income funds are available at www.sedar.com. of Series C units of the Fund as of February
taxes payable by any unitholder that would 29, 2016. Morningstar ratings are overall
have reduced returns. Mutual fund securities MER (%) for RBC Funds and PH&N Funds is ratings reflecting risk adjusted performance
are not guaranteed or covered by the Canada based on actual expenses for the full-year as of February 29, 2016. The ratings are
Deposit Insurance Corporation or by any other period, January 1 to December 31, 2015, subject to change every month. The ratings
government deposit insurer. For money expressed on an annualized basis. are calculated for funds with a minimum of 3
market funds, there can be no assurances years of performance, from a weighted
that the fund will be able to maintain its net MER (%) for RBC Corporate Class Funds is average of the funds' 3, 5 and 10 year
asset value per unit at a constant amount or based on actual expenses for the half-year average annual returns (as available)
that the full amount of your investment in the period, April 1 to September 30, 2015, measured against a 91-day Treasury Bill
fund will be returned to you. The value of expressed on an annualized basis. return with appropriate fee adjustments and
mutual funds change frequently and past peer group returns. The top 10% of the funds
performance may not be repeated. Graphs are only used to illustrate the effects in a category receive 5 stars (high); if the
of the compound growth rate and do not funds fall in the next 22.5%,they receive 4
Phillips, Hager & North Investment reflect future values of any fund or returns on stars (above average); a place in the middle
Management (PH&N IM) is a division of RBC investment of any fund. 35% earns a fund 3 stars (neutral or average);
Global Asset Management Inc. (RBC GAM). those in the next 22.5% receive 2 stars
RBC GAM is the fund manager and the The fund profile is provided for informational (below average); and the lowest 10% get 1
principal portfolio adviser of PH&N Funds and purposes only. Particular investments and/or star (low). Ratings are just one factor to
BonaVista Funds. The principal distributor of trading strategies should be evaluated consider when investing. For more
PH&N Funds and BonaVista Funds is Phillips, relative to each individual’s investment information, please see www.morningstar.ca.
Hager & North Investment Funds Ltd. objectives. The information contained in the
(PH&NIF), which uses the trade name PH&N fund profile is not, and should not be ® / ™ Trademark(s) of Royal Bank of Canada.
Investment Services. RBC GAM is an indirect, construed as, investment or tax advice. You Used under licence. © RBC Global Asset
wholly-owned subsidiary of Royal Bank of should not act or rely on the information Management Inc. 2016
Canada.

©2016. 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 or
timely. 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 disclosure
page.