RBC strategic asset allocation models traditional

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RBC Strategic Asset Allocation
Models

United States Traditional Models

Expected return Profile 5 n Cash
n Fixed Income
Profile 4 n Equities

Profile 3 Asset Allocation Models are based on RBC’s
Strategic Asset Allocation framework and
Profile 2 traditional asset classes.

Profile 1 Expected volatility and forecast return are
illustrative based on long-term (5-10 Year)
Expected volatility time horizon.

Asset class Very Conservative Balanced Growth Aggressive
conservative (Profile 2) (Profile 3) (Profile 4) growth
Cash
Fixed Income (Profile 1) 2% 2% 2% (Profile 5)
Government 2% 63% 43% 28% 2%
US Corporate - investment grade 78% 21% 11% 6% -
US Corporate - high yield 35% 22% 12% 7% -
International 33% 5% 5% 5% -
Emerging markets - 10% 10% 5% -
Equities 10% 5% 5% 5% -
US Large Cap - 35% 55% 70% -
US Mid Cap 20% 15% 23% 26% 98%
US Small Cap 11% 5% 7% 7% 36%
International (EAFE) - 4% 11%
Emerging markets - - - 26% 5%
Total 9% 15% 20% 7% 36%
- 5% 100% 10%
- 100%
100% 100% 100%

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Very Conservative Balanced Growth Aggressive
conservative (Profile 2) (Profile 3) (Profile 4) growth

(Profile 1) 5.7% 6.3% (Profile 5)
9.0% 11.1%
Long-term returns forecast (5 to 10 year horizon, before fees): 7.3%
- 1.2% - 1.4% 14.9%
Return (annualized) 3.9% 4.6% 5.1% 6.3%
5.5% 6.2% - 1.6%
Risk (standard deviation) 4.5% 6.3% 5.6% 5.7% 8.6%
6.8% 7.1% 7.1%
Annualized return: ending December 2015 10.3% 10.7% 5.6%
7.1%
1 Year - 0.2% - 0.5% 51.1% 53.2% 11.3%
11.2% 12.4%
3 Year 2.6% 4.0% -30.6% -36.9% 61.3%
243.8% 265.3% 14.1%
5 Year 4.2% 5.1% 70.2% 74.2% -46.3%
-3.0% -8.2% 324.3%
10 Year 4.9% 5.4% 84.2% 81.6% 81.2%
15.8% 18.4% -18.1%
20 Year 5.7% 6.4% 79.0%
12 12 21.1%
Since January 1978 8.5% 9.4% 3 3
9
Distribution of returns: January 1978 to December 2015 9.7% 11.4% 3
- 5.1% - 6.9%
Best 12 month return 36.7% 43.4% 3.8 months 4.2 months 14.7%
- 10.8%
Median 12 month return 7.7% 9.2% - 34.6% - 42.3% 5.2 months
Nov '07 to Feb '09 Nov '07 to Feb '09
Worst 12 month return -12.0% -21.0% - 53.1%
42 months 44 months Nov '07 to Feb '09
Best 60 month cumulative return 167.8% 196.3%
Apr '00 to Oct '03 Apr '00 to Dec '03 62 months
Median 60 month cumulative return 52.6% 60.9%
Nov '07 to Jan '13
Worst 60 month cumulative return 9.7% 3.0%

% Positive calendar years 92.1% 89.5%

% Negative calendar years 7.9% 10.5%

Max consecutive calendar yrs (+) 16 16

Max consecutive calendar yrs (-) 1 1

Risk measures: January 1978 to December 2015

Volatility of returns (std. dev.) 6.0% 7.4%

Average drawdown - 1.9% - 2.8%

Average drawdown length 3 months 3.5 months
(# months)

Maximum drawdown - 13.0% - 22.8%

Maximum drawdown period* May '08 to Oct '08 Nov '07 to Feb '09

Longest drawdown length 16 months 26 months
(# months)

Longest drawdown period** Sep '79 to Nov '81 Feb '01 to Apr '03

"* Maximum drawdown period represents the time period exhibiting the severest peak-to-trough loss (maximum drawdown).
** Longest drawdown period represents the time period exhibiting the longest peak-to-trough-to-recovery duration (longest drawdown length)."
Please see the disclosures section for important information regarding the data presented here.

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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.

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.

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.

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.

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.

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. 3877 (03/16)