AUDITED FINANCIAL STATEMENTS - RBC Insurance · We have audited the accompanying financial statements of the RBC Guaranteed Investment Funds, which comprise the statement of net assets

AUDITED FINANCIAL STATEMENTSDecember 31, 2010

RBC Life Insurance Company

RBC GUARANTEED INVESTMENT FUNDS

RBC Guaranteed Investment Funds December 31, 2010

RBC Guaranteed Investment Funds

RBC GUARANTEED INVESTMENT FUNDS Table of ContentsDecember 31, 2010

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

Table of Contents


RBC Guaranteed Investment Funds 3



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 the

Funds:

RBC Canadian Money Market GIFRBC Canadian Short-Term Income GIF RBC Bond GIFRBC PH&N Total Return Bond GIF (launched in November 2010) RBC Global Bond GIFRBC Balanced GIFRBC PH&N Monthly Income GIF (launched in November 2010) RBC Balanced Growth GIF RBC Canadian Dividend GIF RBC Canadian Equity GIFRBC O'Shaughnessy All Canadian Equity GIF RBC DS Canadian Focus Fund GIFRBC North American Growth GIF RBC North American Dividend GIF RBC U.S. Equity GIFRBC O'Shaughnessy U.S. Value GIF RBC U.S. Mid-Cap Equity GIFRBC Global Dividend Growth GIFRBC O'Shaughnessy International Equity GIF

Portfolios:

RBC Select Conservative GIP RBC Select Balanced GIPRBC Select Growth GIPRBC Select Aggressive Growth GIP RBC DS Balanced Global GIP RBC DS Growth Global GIP (collectively referred to as “RBC Guaranteed Investment Funds” or “the 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, 2010, the statements of operations and of changes in net assets for the year or period then ended, and a summary of significant accounting policies and other explanatory information.






- 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 each of the Funds as at December 31, 2010 and the results of their operations and the changes in their net assets for the year or period then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants Licensed Public Accountants March 15, 2011

RBC Guaranteed Investment Funds Financial Statements December 31, 2010

RBC Guaranteed Investment Funds 3Page 3 of 64

RBC GUARANTEED INVESTMENT FUNDS Financial StatementsDecember 31, 2010

Statement of Operations Year ended Year ended

December 31, 2010 December 31, 2009Income

Distribution from underlying fund 46,725$ 89,441$ 46,725 89,441

ExpensesManagement fees 4,940 31,201 Insurance fees 7,058 7,877 Other administrative expenses 21,760 39,686

33,758 78,764

Net Income 12,967$ 10,677$

Net income per unit 0.02$ 0.01$

Statement of Net Assets As at As atDecember 31, 2010 December 31, 2009

AssetsInvestments in underlying fund at fair value 5,660,970$ 7,279,159$ Cash 11,471 - Accrued income distribution from investments 181 91 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 12,488 8,848

5,686,478 7,289,312

LiabilitiesBank indebtedness - 10,669 Management fee payable 750 4,504 Insurance fee payable 1,071 1,325 Accounts payable and accrued liabilities 26,058 16,003

27,879 32,501

Net assets 5,658,599$ 7,256,811$

Net assets value per unit 10.82$ 10.79$

Statement of Changes in Net Assets Year ended Year ended

December 31, 2010 December 31, 2009

Net assets, beginning of year 7,256,811$ 8,145,811$ Premium deposits 8,011,226 7,265,436 Net income 12,967 10,677

15,281,004 15,421,924 Less

Withdrawals 9,622,405 8,165,113 9,622,405 8,165,113

Net Assets, end of the year 5,658,599$ 7,256,811$

Number of units outstanding 523,210 672,602

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

RBC Canadian Money Market GIF



Supplementary Information

Page 4 of 64

RBC GUARANTEED INVESTMENT FUNDS Supplementary InformationDecember 31, 2010

Management fees and insurance fees 2010(also see note 7) 2009

Annualized MER cap % (1)

Expense before waiver

MER before waiver %

Expense after waiver MER after waiver %

Other expenses absorbed by the manager 2010 0.42 111,840$ 1.67 33,758$ 0.50 (also see note 8) 2009 1.00 78,764 1.00 79,764 1.00

Balance as at January 1st

Purchases during the year

Redemptions during the year

Balance as at December 31st

Sales and redemption of units 2010 672,602 742,343 (891,735) 523,210 (also see note 9) 2009 756,577 672,609 (756,584) 672,602

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2010 5,660,970$ -$ -$ 5,660,970$ value (also see note 10) 2009 7,279,159 - - 7,279,159

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Money Market Fund, 2010 566,097 5,660,970$ 2.7105 5,660,970$ 10.00$ Series O 2009 727,916 7,279,159 0.7218 7,279,159 10.00

Financial highlights (Unaudited) 2010 2009 2008 2007 2006Value per unitDistributions: (*)

From net income 0.02$ 0.02$ 0.16$ 0.07$ 0.01$ From realized gains - - - - - Return of capital - - - - - Total annual distributions 0.02$ 0.02$ 0.16$ 0.07$ 0.01$ Net Asset Value at December 31 10.82$ 10.79$ 10.77$ 10.47$ 10.09$

Ratios and supplemental dataNet assets ($ '000) 5,659$ 7,257$ 8,145$ 8,743$ 237$ Number of units outstanding 523,210 672,602 756,577 834,783 23,494 Management expense ratio (1) 0.50% 1.00% 1.10% 1.10% 1.10%Portfolio turnover rate of the Fund (2) 110.14% 82.90% 265.10% 75.80% 0.00%

(*) Distributions were reinvested in the Fund.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsHSBC Bank Canada 1.120% Jan 14 11 3.9 Province of Quebec 0.450% Feb 7 11 1.9Bank of Nova Scotia 1.170% Mar 18 11 3.4 Province of Alberta 0.455% Mar 8 11 1.9Diversified Trust 1.291% May 24 11 3.3 Bank of Nova Scotia 0.803% Feb 15 11 1.9Toronto-Dominion Bank 1.072% Jan 28 11 3.3 Province of Manitoba Floating Rate Note Jan 31 11 1.9Fusion Trust 1.301% Apr 19 11 2.9 Bay Street Funding Trust - Class A 1.179% Mar 8 11 1.8Darwin Receivables Trust - Senior Notes 1.085% Jan 24 11 2.9 Bank of Nova Scotia 1.201% Jan 19 11 1.8Prime Trust - Senior Notes 1.182% Jan 18 11 2.7 National Bank of Canada 1.470% Sep 15 11 1.8Merit Trust - Senior Notes 0.981% Jan 7 11 2.6 CRISP Trust 1.178% Mar 18 11 1.7SUMMIT Trust 1.073% Jan 24 11 2.5 CRISP Trust 1.147% Jan 24 11 1.6Reliant Trust 1.280% Apr 20 11 2.2 Darwin Receivables Trust - Senior Notes 1.159% Feb 2 11 1.6JP Morgan Chase & Co. 1.074% Jan 25 11 2.2 Canadian Imperial Bank of Commerce 1.349% Jun 1 11 1.5Zeus Receivables Trust - Senior Notes 1.160% Mar 2 11 2.2 Diversified Trust 1.073% Jan 24 11 1.5Zeus Receivables Trust - Senior Notes 1.370% Jun 8 11 2.1 Total % of top 25 holdings 57.1

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 Fund's portfolio turnover rate indicates how actively the Fund's portfolio advisor manages its portfolio investments. A portfolio turnover ra te 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)






Distribution from underlying fund 175,285$ 125,051$Realized gains on sale of investments 9,771 29,530Decrease in unrealized appreciation of investments (33,788) (24,476)

151,268 130,105Expenses

Management fees 32,418 21,511Insurance fees 6,947 4,609 Other administrative expenses 39,514 27,657

78,879 53,777

Net Income 72,389$ 76,328$



AssetsInvestments in underlying fund at fair value 4,630,710$ 3,394,423$Cash 5,637 2,374 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 6,653 8,108

4,644,368 3,406,119

LiabilitiesManagement fee payable 5,915 3,875 Insurance fee payable 1,268 830 Accounts payable and accrued liabilities 22,615 17,889

29,798 22,594

Net assets 4,614,570$ 3,383,525$




Net assets, beginning of year 3,383,525$ 2,622,254$Premium deposits 2,805,302 2,671,246Net income 72,389 76,328

6,261,216 5,369,828Less

Withdrawals 1,646,646 1,986,3031,646,646 1,986,303




RBC Canadian Short-Term Income GIF







MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Short-Term Income Fund, 2010 422,803 4,642,229$ 0.3158 4,630,710$ 10.95$ Series O 2009 308,620 3,372,153 0.2168 3,394,423 11.00


From net income 0.24$ 0.33$ 0.39$ 0.12$ 0.09$ From realized gains 0.02 - - (0.03) - Return of capital - - - - - Total annual distributions 0.26$ 0.33$ 0.39$ 0.08$ 0.09$ Net Asset Value at December 31 11.25$ 11.05$ 10.80$ 10.21$ 10.07$

Ratios and supplemental dataNet assets ($ '000) 4,615$ 3,384$ 2,622$ 44$ 5$ Number of units outstanding 410,076 306,097 242,882 4,350 500 Management expense ratio (1) 1.79% 1.75% 1.75% 1.75% 1.75%Portfolio turnover rate of the Fund (2) 32.96% 56.54% 42.05% 140.83% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCanada Housing Trust No. 1 4.550% Dec 15 12 7.4 Municipal Finance Authority of British Columbia 3.100% Ju 1.5Province of Ontario 3.250% Sep 8 14 5.7 Province of New Brunswick 4.300% Dec 3 15 1.4Canada Housing Trust No. 1 4.000% Jun 15 12 4.3 Government of Canada 1.500% Dec 1 12 1.3Government of Canada 1.250% Dec 1 11 4.2 Royal Bank of Canada 4.970% Jun 5 14 1.3Bank of Nova Scotia 5.040% Apr 8 13 3.7 Bank of Nova Scotia 3.350% Nov 18 14 1.3Government of Canada 2.000% Dec 1 14 3.4 Wells Fargo Financial Canada Corp. 3.970% Nov 3 14 1.3Government of Canada 2.500% Jun 1 15 3.3 Bank of Nova Scotia 4.990% Mar 27 18 1.2Financement-Quebec 3.250% Jun 1 14 2.8 Hydro One Inc. 5.000% Nov 12 13 1.1Toronto-Dominion Bank 4.854% Feb 13 13 2.7 Government of Canada 2.500% Sep 1 13 1.1Canadian Imperial Bank of Commerce 3.050% Jun 3 13 2.6 Sun Life Financial Inc. 4.800% Nov 23 35 1Province of Ontario 5.375% Dec 2 12 2.1 Royal Bank of Canada 5.950% Jun 18 14 0.9Province of Quebec 5.250% Oct 1 13 1.9 Canada Housing Trust No. 1 3.550% Sep 15 13 0.9Royal Bank of Canada 4.350% Jun 15 20 1.8 Total % of top 25 holdings 60.2

RBC Canadian Short-Term Income 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 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.



1.60 0.15 (0.65)







Distribution from underlying fund 237,404$ 230,114$ Realized gains (losses) on sale of investments 51,613 (33,869) Increase in unrealized appreciation of investments 103,363 264,049

392,380 460,294 Expenses

Management fees 40,115 28,610 Insurance fees 8,721 6,220 Other administrative expenses 49,550 37,733

98,386 72,563

Net Income 293,994$ 387,731$



AssetsInvestments in underlying fund at fair value 6,425,639$ 4,548,049$ Cash - 11,466 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 6,559 6,153

6,433,566 4,566,882

LiabilitiesBank indebtedness 105,790 - Management fee payable 8,121 4,793 Insurance fee payable 1,766 1,042 Accounts payable and accrued liabilities 24,658 20,474

140,335 26,309

Net assets 6,293,231$ 4,540,573$




Net assets, beginning of year 4,540,573$ 4,942,548$ Premium deposits 3,484,588 1,784,444 Net income 293,994 387,731

8,319,155 7,114,723 Less

Withdrawals 2,025,924 2,574,150 2,025,924 2,574,150




RBC Bond GIF







MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Bond Fund, Series O 2010 1,001,518 6,254,387$ 0.1221 6,425,639$ 6.42$

2009 731,609 4,471,160 0.1460 4,548,049 6.22


From net income 0.26$ 0.31$ 0.31$ 0.16$ -$ From realized gains 0.12 - (0.01) 0.03 0.08 Return of capital - - - - - Total annual distributions 0.38$ 0.31$ 0.30$ 0.19$ 0.08$ Net Asset Value at December 31 11.92$ 11.28$ 10.22$ 10.27$ 10.16$

Ratios and supplemental dataNet assets ($ '000) 6,293$ 4,541$ 4,942$ 779$ 24$ Number of units outstanding 527,975 402,424 483,824 75,898 2,387 Management expense ratio (1) 1.79% 1.75% 1.75% 1.75% 1.75%Portfolio turnover rate of the Fund (2) 28.35% 42.12% 4.83% 6.41% 362.72%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 4.2 Royal Bank of Canada 4.350% Jun 15 20 1.2Government of Canada 5.000% Jun 1 37 2.5 Toronto-Dominion Bank 4.854% Feb 13 13 1.1Government of Canada 4.000% Jun 1 41 2 Canada Housing Trust No. 1 3.350% Dec 15 20 1.1Province of Ontario 4.650% Jun 2 41 1.8 Government of Canada 3.750% Jun 1 19 1.1Province of Ontario 4.700% Jun 2 37 1.5 Canada Housing Trust No. 1 3.600% Jun 15 13 1.1Bank of Nova Scotia 5.040% Apr 8 13 1.5 Toronto-Dominion Bank 5.480% Apr 2 20 1.1Province of Quebec 5.000% Dec 1 41 1.4 Canada Housing Trust No. 1 3.550% Sep 15 13 0.9Province of Ontario 4.600% Jun 2 39 1.4 Canada Housing Trust No. 1 2.450% Dec 15 15 0.9Province of Quebec 4.500% Dec 1 19 1.4 Government of Canada 3.000% Jun 1 14 0.9Province of Ontario 4.200% Jun 2 20 1.3 Toronto-Dominion Bank 4.779% Dec 14 16 0.8Canada Housing Trust No. 1 4.100% Dec 15 18 1.3 United States 2-Year Note Future, March 2011 -1.3Canadian Imperial Bank of Commerce 4.110% Apr 30 20 1.2 United States 5-Year Note Future, March 2011 -4.2Province of Quebec 5.000% Dec 1 38 1.2 Total % of top 25 holdings 27.4

RBC Bond GIF




1.60 0.15 (0.65)





Statement of Operations Period fromNovember 29, 2010 to

December 31, 2010Income

Distribution from underlying funds 234$ Realized gains on sale of investments 479 Decrease in unrealized appreciation of investments (476)

237 Expenses

Management fees 18 Insurance fees 3 Other administrative expenses 21

42

Net Income 195$

Net income per unit 0.09$

Statement of Net Assets As atDecember 31, 2010

AssetsInvestments in underlying fund at fair value 32,120$ Prepaid expenses 1,481 Due from RBC Life Insurance Company 3,574

37,175

LiabilitiesManagement fee payable 18 Insurance fee payable 4 Accounts payable and accrued liabilities 3,527

3,549

Net assets 33,626$

Net assets value per unit 10.05$

Statement of Changes in Net Assets Period fromNovember 29, 2010 to

December 31, 2010

Net assets, beginning of the period -$ Premium deposits 33,431 Net income 195

33,626 Less

Withdrawals - -

Net Assets, end of the period 33,626$

Number of units outstanding 3,346


RBC PH&N Total Return Bond GIF




Management fees and insurance fees (also see note 7)



MER before waiver %


Other expenses absorbed by the manager (also see note 8) 1.89 3,617$ 161.10 42$ 1.92

Balance as at January 1, 2010



Balance as at December 31, 2010

Sales and redemption of units (also see note 9) - 3,346 - 3,346

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair value (also see note 10) 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 2,884 32,595$ 0.0032 32,120$ 11.14$

Financial highlights (Unaudited) 2010 2009 2008 2007 2006The Fund's distribution and Net Asset Value per unitDistributions: (*)

From net income 0.06$ N/A N/A N/A N/A From realized gains 0.14 N/A N/A N/A N/A Return of capital - N/A N/A N/A N/ATotal annual distributions 0.20$ N/A N/A N/A N/ANet Asset Value at December 31 10.05$ N/A N/A N/A N/A

Ratios and supplemental dataNet assets ($ '000) 34$ N/A N/A N/A N/ANumber of units outstanding 3,346 N/A N/A N/A N/AManagement expense ratio (1) 1.92% N/A N/A N/A N/APortfolio turnover rate of the Fund (2) 974.59% N/A 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 AssetsProvince of Ontario 7.600% Jun 2 27 9.6 Master Credit Card Trust 5.297% Aug 21 12 1.6Cash & Short-Term 5.0 Wells Fargo Financial Canada Corp. 5.200% Sep 13 12 1.6Province of Ontario 4.200% Jun 2 20 4.3 Government of Canada 5.000% Jun 1 37 1.5Morgan Stanley CAD 4.500% Feb 23 12 3.4 Bank of Nova Scotia 5.250% Nov 1 17 1.4Canada Housing Trust No. 1 4.100% Dec 15 18 3.3 Province of Ontario 6.200% Jun 2 31 1.2Toronto-Dominion Bank 5.382% Nov 1 17 2.9 Canadian Imperial Bank of Commerce 4.110% Apr 30 20 1.1Province of Quebec 6.250% Jun 1 32 2.7 Province of Ontario 4.600% Jun 2 39 1.1Province of Ontario 4.400% Jun 2 19 2.4 Phillips, Hager & North High Yield Bond Fund 1.0Merrill Lynch & Co Inc. CAD 4.500% Jan 30 12 2.4 Canadian Imperial Bank of Commerce 3.950% Jul 14 17 1.0Province of Ontario 8.100% Sep 8 23 2.1 HSBC Bank Canada 3.558% Oct 4 17 1.0RBC Subordinated Notes Trust 4.580% Apr 30 17 2.0 American Express Canada Credit Corp. 5.900% Apr 2 13 1.0Bank of Nova Scotia 6.000% Oct 3 18 1.9 Bank of Montreal 3.930% Apr 27 15 1.0Province of Ontario 5.850% Mar 8 33 1.8 Total % of top 25 holdings 58.6

RBC PH&N Total Return Bond 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 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.





Statement of Operations Year ended Year endedDecember 31, 2010 December 31, 2009

IncomeDistribution from underlying funds 25,970$ 40,283$ Realized gains on sale of investments 19,188 1,849 Decrease in unrealized appreciation of investments (1,846) (3,857)

43,312 38,275 Expenses Management fees 7,183 8,750

Insurance fees 2,506 3,052 Other administrative expenses 7,408 9,565

17,097 21,367

Net Income 26,215$ 16,908$



AssetsInvestments in underlying fund at fair value 703,008$ 719,987$ Cash 3,628 723 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 9,795 8,940

717,799 730,864

LiabilitiesManagement fee payable 1,064 1,028 Insurance fee payable 373 361 Accounts payable and accrued liabilities 19,534 17,220

20,971 18,609

Net assets 696,828$ 712,255$


Statement of Changes in Net Assets Year ended Year endedDecember 31, 2010 December 31, 2009

Net assets, beginning of year 712,255$ 1,591,106$Premium deposits 393,842 203,456 Net income 26,215 16,908

1,132,312 1,811,470Less

Withdrawals 435,484 1,099,215435,484 1,099,215

Net Assets, end of the year 696,828$ 712,255$



RBC Global Bond GIF




Page 12 of 64





MER before waiver %








Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2010 703,008$ -$ -$ 703,008$ value (also see note 10) 2009 719,987 - - 719,987

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Global Bond Fund, Series O 2010 67,755 689,221$ 0.0463 703,008$ 10.38$

2009 70,371 704,354 0.0750 719,987 10.23


From net income 0.14$ 0.29$ 0.33$ -$ N/A From realized gains 0.51 0.03 (0.08) 0.23 N/A Return of capital - - - - N/ATotal annual distributions 0.65$ 0.32$ 0.24$ 0.23$ N/ANet Asset Value at December 31 11.13$ 10.85$ 10.56$ 10.22$ N/A

Ratios and supplemental dataNet assets ($ '000) 697$ 712$ 1,591$ 5$ N/ANumber of units outstanding 62,618 65,658 150,628 500 N/AManagement expense ratio (1) 2.17% 2.10% 2.10% 2.10% N/APortfolio turnover rate of the Fund (2) 49.15% 24.02% 30.09% 301.76% N/A


The comparative data for the year 2006 not available as the Fund was introduced in 2007.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 4.4 Japan Government Twenty Year JPY 2.100% Jun 20 29 1.5Buoni Poliennali Del Tesoro EUR 3.500% Jun 1 14 3.0 Province of Ontario USD 4.100% Jun 16 14 1.5Deutsche Bundesrepublik EUR 3.000% Jul 4 20 2.8 Development Bank of Japan JPY 2.300% Mar 19 26 1.5United States Treasury 1.750% Mar 31 14 2.7 Deutsche Bundesrepublik EUR 4.000% Jan 4 37 1.4Japan Government Ten Year JPY 1.000% Sep 20 20 2.2 Bundesobligation EUR 3.500% Apr 12 13 1.4United Kingdom Gilt GBP 3.750% Sep 7 19 2.1 Deutsche Bundesrepublik EUR 5.500% Jan 4 31 1.3Japan Government Five Year JPY 0.700% Sep 20 14 2.1 United States Treasury 4.000% Feb 15 15 1.3Eksportfinans A/S JPY 1.600% Mar 20 14 2.0 Government of Spain EUR 4.400% Jan 31 15 1.3Deutsche Bundesrepublik EUR 4.000% Jan 4 18 1.9 European Investment Bank EUR 2.500% Jul 15 15 1.3European Investment Bank JPY 1.400% Jun 20 17 1.8 United States Treasury 4.500% Aug 15 39 1.3Deutsche Bundesrepublik EUR 3.250% Jul 4 15 1.7 United Kingdom Gilt GBP 4.500% Sep 7 34 1.2Belgium Government EUR 4.000% Mar 28 14 1.5 United States 2-Year Note Future, March 2011 -1.8United States Treasury 3.125% May 15 19 1.5 Total % of top 25 holdings 42.9

RBC Global Bond GIF




1.80 0.30 (0.80)



Page 13 of 64



IncomeDistribution from underlying funds 2,455$ 1,959$ Realized gains (losses) on sale of investments 148,920 (185,823)Increase in unrealized appreciation of investments 2,788,332 3,052,176

2,939,707 2,868,312Expenses


687,290 472,936

Net Income 2,252,417$ 2,395,376$



AssetsInvestments in underlying fund at fair value 28,709,615$ 23,789,045$Cash - 35,645 Prepaid expenses 1,368 1,214

28,710,983 23,825,904

LiabilitiesBank indebtedness 21,986 - Management fee payable 66,612 49,272 Insurance fee payable 15,613 11,548 Accounts payable and accrued liabilities 62,333 44,679

166,544 105,499

Net assets 28,544,439$ 23,720,405$



Net assets, beginning of year 23,720,405$ 14,527,743$Premium deposits 7,890,759 9,411,334Net income 2,252,417 2,395,376

33,863,581 26,334,453Less

Withdrawals 5,319,142 2,614,0485,319,142 2,614,048


Number of units outstanding 2,655,511 2,394,308


RBC Balanced GIF







MER before waiver %







Sales and redemption of units 2010 2,394,308 786,591 (525,388) 2,655,511 (also see note 9) 2009 1,660,159 1,017,000 (282,851) 2,394,308


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Balanced Fund, Series O 2010 2,154,309 25,944,937$ 63.8561 28,709,615$ 13.33$

2009 1,986,858 23,812,698 60.5678 23,789,045 11.97


From net income -$ -$ -$ 0.66$ 0.00$ From realized gains - (0.05) (0.57) - 0.47 Return of capital - - - - - Total annual distributions -$ (0.05)$ (0.57)$ 0.66$ 0.47$ Net Asset Value at December 31 10.75$ 9.91$ 8.75$ 10.96$ 10.58$

Ratios and supplemental dataNet assets ($ '000) 28,544$ 23,720$ 14,527$ 7,171$ 1,481$ Number of units outstanding 2,655,511 2,394,308 1,660,159 654,021 140,019 Management expense ratio (1) 2.61% 2.55% 2.55% 2.55% 2.55%Portfolio turnover rate of the Fund (2) 15.21% 10.52% 31.95% 11.07% 139.20%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRBC Emerging Market Fund 2.9 Province of Ontario 9.500% Jul 13 22 1.2Cash & Cash Equivalents 2.4 Province of Quebec 4.500% Dec 1 17 1.1Royal Bank of Canada 1.9 Government of Canada 1.250% Dec 1 11 1.1Toronto-Dominion Bank 1.6 Government of Canada 3.750% Jun 1 19 1.0Government of Canada 5.000% Jun 1 37 1.5 Goldcorp Inc. 1.0Suncor Energy Inc. 1.5 Canadian National Railway Co. 0.9Barrick Gold Corp. 1.5 Canadian Imperial Bank of Commerce 0.9Bank of Nova Scotia 1.4 Research In Motion Ltd. 0.9Government of Canada 1.250% Jun 1 11 1.3 Province of Quebec 6.000% Oct 1 12 0.8Canadian Natural Resources Ltd. 1.3 Government of Canada 4.000% Jun 1 41 0.8Province of Ontario 4.750% Jun 2 13 1.3 Province of Manitoba 6.500% Sep 22 17 0.8Potash Corporation of Saskatchewan Inc. 1.2 Province of Ontario 4.400% Jun 2 19 0.8Province of Quebec 5.250% Oct 1 13 1.2 Total % of top 25 holdings 32.3

RBC Balanced GIF




2.25 0.30 (0.80)





Statement of Operations Period fromNovember 29, 2010 to

December 31, 2010Income

Distribution from underlying funds 2,048$ Increase in unrealized appreciation of investments 4,788

6,836 Expenses

Management fees 462 Insurance fees 111 Other administrative expenses 306

879

Net Income 5,957$

Net income per unit 0.18$

Statement of Net Assets As atDecember 31, 2010

AssetsInvestments in underlying fund at fair value 636,395$ Prepaid expenses 1,481 Due from RBC Life Insurance Company 3,289

641,165

LiabilitiesManagement fee payable 461 Insurance fee payable 111 Accounts payable and accrued liabilities 3,528

4,100

Net assets 637,065$

Net assets value per unit 10.12

Statement of Changes in Net Assets Period fromNovember 29, 2010 to

December 31, 2010

Net assets, beginning of the period -$ Premium deposits 633,108 Net income 5,957

639,065 Less

Withdrawals 2,000 2,000

Net Assets, end of the period 637,065$

Number of units outstanding 62,958


RBC PH&N Monthly Income GIF




Page 16 of 64


Management fees and insurance fees (also see note 7)



MER before waiver %


Other expenses absorbed by the manager (also see note 8) 2.69 4,167$ 12.76 879$ 2.69

Balance as at January 1, 2010



Balance as at December 31, 2010

Sales and redemption of units (also see note 9) - 63,158 (200) 62,958

Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair value (also see note 10) 636,395$ -$ -$ 636,395$

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitPH&N Monthly Income Fund, Series O 58,820 631,607$ 0.1385 636,395$ 10.82$

Financial highlights (Unaudited) 2010 2009 2008 2007 2006The Fund's distribution and Net Asset Value per unitDistributions: (*)

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

Ratios and supplemental dataNet assets ($ '000) 637$ N/A N/A N/A N/ANumber of units outstanding 62,958 N/A N/A N/A N/AManagement expense ratio (1) 2.69% N/A N/A N/A N/APortfolio turnover rate of the Fund (2) 0.00% N/A N/A N/A N/A



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsPhillips, Hager & North High Yield Bond Fund 9.4 ARC Energy Trust 1.2Canada Housing Trust No. 1 4.050% Mar 15 11 4.2 Canadian Imperial Bank of Commerce 1.2Province of Ontario 7.600% Jun 2 27 3.7 Loblaw Companies Ltd. 1.2Cash & Short-Term 2.5 Manulife Financial Corporation 1.1Royal Bank of Canada 2.5 Keyera Facilities Income Fund 1.1Province of Ontario 4.400% Jun 2 19 2.0 Province of Ontario 4.200% Jun 2 20 1.1Toronto-Dominion Bank 1.8 Bombardier Inc., Class B 1.1Kinross Gold Corp. 1.6 TransForce Inc. 1.0Rogers Communications Inc., Class B 1.4 Bank of Nova Scotia 1.0Enbridge Inc. 1.3 Suncor Energy Inc. 1.0Shaw Communications Inc., Class B 1.3 Jean Coutu Group, Class A 1.0Bell Aliant Regional Communications Income Fund 1.2 Genworth MI Canada Inc. 1.0Canada Housing Trust No. 1 3.750% Mar 15 20 1.2 Total % of top 25 holdings 47.0

RBC PH&N Monthly Income 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 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.






Distribution from underlying funds 9$ 19$Realized gains on sale of investments 16,248 6,440Increase in unrealized appreciation of investments 27,348 38,204

43,605 44,663Expenses Management fees 7,734 4,307

Insurance fees 1,757 979Other administrative expenses 5,251 3,197

14,742 8,483

Net Income 28,863$ 36,180$



AssetsInvestments in underlying fund at fair value 619,446$ 447,641$Cash - 632Prepaid expenses 1,368 1,214Due from RBC Life Insurance Company 7,678 10,562

628,492 460,049

LiabilitiesBank indebtedness 8,402 -Management fee payable 1,421 1,001Insurance fee payable 323 228Accounts payable and accrued liabilities 14,822 14,466

24,968 15,695

Net assets 603,524$ 444,354$




Net assets, beginning of year 444,354$ 109,940$Premium deposits 334,547 485,731Net income 28,863 36,180

807,764 631,851Less

Withdrawals 204,240 187,497204,240 187,497




RBC Balanced Growth GIF




Page 18 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Balanced Growth Fund, Series O 2010 49,162 551,337$ 51.7394 619,446$ 12.60$

2009 38,322 406,880 52.9383 447,641 11.68


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 10.56$ 10.07$ 9.25$ N/A N/A

Ratios and supplemental dataNet assets ($ '000) 604$ 444$ 109$ N/A N/ANumber of units outstanding 57,146 44,125 11,884 N/A N/AManagement expense ratio (1) 2.64% 2.60% 2.60% N/A N/APortfolio turnover rate of the Fund (2) 33.02% 62.51% 0.00% N/A 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 AssetsRBC Emerging Market Fund 3.0 Goldcorp Inc. 0.7Barrick Gold Corp. 1.2 Teck Resources Ltd., Class B 0.7Royal Bank of Canada 1.1 Cash & Cash Equivalents 0.7Suncor Energy Inc. 1.1 Province of Ontario USD 4.100% Jun 16 14 0.6Buoni Poliennali Del Tesoro EUR 3.500% Jun 1 14 0.9 Cenovus Energy Inc. 0.6Toronto-Dominion Bank 0.9 Deutsche Bundesrepublik EUR 3.250% Jul 4 15 0.6Canadian Natural Resources Ltd. 0.9 Canada Housing Trust No. 1 2.450% Dec 15 15 0.6United States Treasury 1.750% Mar 31 14 0.9 France O.A.T. EUR 4.000% Oct 25 13 0.6Development Bank of Japan JPY 2.300% Mar 19 26 0.9 Belgium Government EUR 4.000% Mar 28 14 0.6Province of Ontario 4.700% Jun 2 37 0.8 Apple Inc. 0.6Potash Corporation of Saskatchewan Inc. 0.8 United States Treasury 3.250% Dec 31 16 0.6United States Treasury 3.125% May 15 19 0.8 Canadian Imperial Bank of Commerce 0.5Bank of Nova Scotia 0.8 Total % of top 25 holdings 21.5

RBC Balanced Growth GIF




2.30 0.30 (0.80)






Distribution from underlying funds 1,291,389$ 852,494$ Realized losses on sale of investments (12,620) (335,430) Increase in unrealized appreciation of investments 4,461,283 6,211,753

5,740,052 6,728,817 Expenses


1,086,179 650,198

Net Income 4,653,873$ 6,078,619$



AssetsInvestments in underlying fund at fair value 51,302,417$ 32,639,665$ Cash 20,278 90,261 Prepaid expenses 1,368 1,214

51,324,063 32,731,140 Liabilities

Bank indebtednessManagement fee payable 117,244 65,859 Insurance fee payable 27,479 15,436 Accounts payable and accrued liabilities 98,942 48,143

243,665 129,438

Net assets 51,080,398$ 32,601,702$



Net assets, beginning of year 32,601,702$ 20,193,514$ Premium deposits 22,306,901 9,561,032 Net income 4,653,873 6,078,619

59,562,476 35,833,165 Less

Withdrawals 8,482,078 3,231,463 8,482,078 3,231,463


Number of units outstanding 4,562,617 3,229,234


RBC Canadian Dividend GIF




Page 20 of 64





MER before waiver %


Other expenses absorbed by the manager 2010 2.66 1,086,179$ 2.61 1,086,179$ 2.61 (also see note 8) 2009 2.55 650,198$ 2.55 650,198$ 2.55





Sales and redemption of units 2010 3,229,234 2,149,981 (816,598) 4,562,617 (also see note 9) 2009 2,529,491 1,069,624 (369,881) 3,229,234


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Dividend Fund, Series O 2010 1,064,993 47,929,202$ 1.9011 51,302,417$ 48.17$

2009 748,441 33,727,733 2.0644 32,639,665 43.61


From net income 0.04$ 0.04$ 0.10$ -$ -$ From realized gains 0.01 (0.10) (0.11) 0.42 0.12 Return of capital - - - - - Total annual distributions 0.05$ (0.06)$ (0.01)$ 0.42$ 0.12$ Net Asset Value at December 31 11.20$ 10.10$ 7.98$ 11.06$ 10.81$

Ratios and supplemental dataNet assets ($ '000) 51,080$ 32,602$ 20,193$ 16,003$ 1,802$ Number of units outstanding 4,562,617 3,229,234 2,529,491 1,447,378 166,638 Management expense ratio (1) 2.61% 2.55% 2.55% 2.55% 2.55%Portfolio turnover rate of the Fund (2) 9.64% 6.58% 10.50% 5.29% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRoyal Bank of Canada 7.2 Canadian Natural Resources Ltd. 2.4Toronto-Dominion Bank 6.6 TransCanada Corp. 2.2Bank of Nova Scotia 4.9 Potash Corporation of Saskatchewan Inc. 2.1Canadian Imperial Bank of Commerce 4.1 Canadian Oil Sands Trust 2.1Bank of Montreal 3.8 Imperial Oil Ltd. 1.9Cash & Cash Equivalents 3.4 Shoppers Drug Mart Corp. 1.8Power Corporation of Canada 3.0 Cenovus Energy Inc. 1.8Suncor Energy Inc. 2.9 Barrick Gold Corp. 1.7Enbridge Inc. 2.9 CI Financial Corp. 1.5Brookfield Asset Management Inc., Class A 2.8 BCE Inc. 1.5Manulife Financial Corporation 2.7 iShares S&P/TSX Global Gold Index Fund ETF 1.5Thomson Corp. 2.4 TELUS Corp., Class A 1.4Canadian National Railway Co. 2.4 Total % of top 25 holdings 71.0

RBC Canadian Dividend GIF




2.25 0.30 (0.80)






Distribution from underlying funds 118,475$ 35,238$Realized gains on sale of investments 377,272 4,158 Increase in unrealized appreciation of investments 655,306 1,393,119

1,151,053 1,432,515Expenses

Management fees 84,852 62,660Insurance fees 36,747 27,136Other administrative expenses 59,804 48,353

181,403 138,149

Net Income 969,650$ 1,294,366$



AssetsInvestments in underlying fund at fair value 7,506,791$ 5,550,965$Cash 22,832 672 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 6,105 9,804

7,537,096 5,562,655

LiabilitiesManagement fee payable 16,561 11,451Insurance fee payable 7,172 4,959 Accounts payable and accrued liabilities 26,503 16,719

50,236 33,129

Net assets 7,486,860$ 5,529,526$




Net assets, beginning of year 5,529,526$ 4,303,522$Premium deposits 2,098,828 980,010Net income 969,650 1,294,366

8,598,004 6,577,898Less

Withdrawals 1,111,144 1,048,3721,111,144 1,048,372




RBC Canadian Equity GIF




Page 22 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Canadian Equity Fund, Series O 2010 285,951 7,489,747$ 0.3477 7,506,791$ 26.25$

2009 232,843 6,189,227 0.3248 5,550,965 23.84


From net income -$ -$ -$ -$ -$ From realized gains - - (0.23) 0.98 0.16 Return of capital - - - - - Total annual distributions -$ -$ (0.23)$ 0.98$ 0.16$ Net Asset Value at December 31 11.83$ 10.27$ 7.95$ 12.09$ 11.10$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRoyal Bank of Canada 4.8 Power Corporation of Canada 2.0Toronto-Dominion Bank 4.3 Talisman Energy Inc. 1.9Suncor Energy Inc. 3.9 Teck Resources Ltd., Class B 1.9Bank of Nova Scotia 3.6 Cenovus Energy Inc. 1.9Barrick Gold Corp. 3.5 TransCanada Corp. 1.8Canadian Natural Resources Ltd. 3.5 EnCana Corp. 1.8Potash Corporation of Saskatchewan Inc. 3.1 Rogers Communications Inc., Class B 1.5Goldcorp Inc. 2.7 Brookfield Asset Management Inc., Class A 1.4Canadian National Railway Co. 2.3 Enbridge Inc. 1.4Canadian Imperial Bank of Commerce 2.2 Thomson Corp. 1.3Research In Motion Ltd. 2.2 Canadian Oil Sands Trust 1.2Bank of Montreal 2.0 Magna International Inc., Class A 1.1Manulife Financial Corporation 2.0 Total % of top 25 holdings 59.3

RBC Canadian Equity GIF




2.25 0.55 (1.05)





IncomeDistribution from underlying funds 30,309$ 7,852$Realized gains on sale of investments 6,982 2,755Increase in unrealized appreciation of investments 165,230 42,798

202,521 53,405Expenses Management fees 11,170 2,114

Insurance fees 4,690 888Other administrative expenses 7,584 1,598

23,444 4,600

Net Income 179,077$ 48,805$



AssetsInvestments in underlying fund at fair value 1,233,084$ 261,361$Cash 4,333 575Prepaid expenses 1,368 1,214Due from RBC Life Insurance Company 9,757 10,860

1,248,542 274,010

LiabilitiesManagement fee payable 2,686 530Insurance fee payable 1,128 222Accounts payable and accrued liabilities 17,065 14,443

20,879 15,195

Net assets 1,227,663$ 258,815$




1,317,228 290,350Less

Withdrawals 89,565 31,53589,565 31,535

Net Assets, end of the year 1,227,663$ 258,815$



RBC O'Shaughnessy All Canadian Equity GIF




Page 24 of 64





MER before waiver %








Level 1 Level 2 Level 3 TotalInvestment in underlying fund at fair 2010 1,233,084$ -$ -$ 1,233,084$ value (also see note 10) 2009 261,361 - - 261,361

Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O'Shaughnessy All Canadian Equity 2010 105,280 1,023,085$ 11.8595 1,233,084$ 11.71$ Fund, Series O 2009 27,454 216,592 3.2202 261,361 9.52


From net income 0.07$ 0.12$ 0.04$ N/A N/A From realized gains 0.07 0.11 (0.00) N/A N/A Return of capital - - - N/A N/ATotal annual distributions 0.14$ 0.23$ 0.04$ N/A N/ANet Asset Value at December 31 12.25$ 9.94$ 8.05$ N/A N/A

Ratios and supplemental dataNet assets ($ '000) 1,228$ 259$ 84$ N/A N/ANumber of units outstanding 100,219 26,029 10,499 N/A N/AManagement expense ratio (1) 2.93% 2.85% 2.85% N/A N/APortfolio turnover rate of the Fund (2) 9.82% 50.79% 8.57% N/A 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 3.1 Emera Inc. 1.1Baytex Energy Trust 1.6 Western Coal Corp. 1.1Centerra Gold Inc. 1.6 Cineplex Galaxy Income Fund 1.1Transglobe Energy Corporation 1.5 IESI-BFC Ltd. 1.1Westshore Terminals Inc. 1.5 Agrium Inc. 1.1Peyto Energy Trust 1.5 Freehold Royalty Trust 1.1Keyera Facilities Income Fund 1.3 Semafo Inc. 1.1Pembina Pipeline Corp. 1.3 Pacific Rubiales Energy Corp. 1.1Atco Ltd., Class I, Non-Voting 1.2 Astral Media Inc., Class A 1.0Finning International Inc. 1.2 BCE Inc. 1.0Canadian Utilities Ltd., Class A 1.2 Dundee Wealth Management Inc. 1.0MacDonald Dettwiler & Associates Ltd. 1.2 Davis & Henderson Income Fund 1.0CAE Inc. 1.2 Total % of top 25 holdings 32.2

RBC O'Shaughnessy All Canadian Equity GIF




2.30 0.55 (1.05)




Statement of Operations Period fromYear ended November 9, 2009 to


Realized gains on sale of investments 495 11 Increase in unrealized appreciation of investments 92,028 52

92,523 63 Expenses

Management fees 5,732 9 Insurance fees 2,482 4 Other administrative expenses 3,940 7

12,154 20

Net Income 80,369$ 43$



AssetsInvestments in underlying fund at fair value 1,499,550$ 3,118$ Cash 3,708 - Prepaid expenses 1,367 1,213 Due from RBC Life Insurance Company 6,952 12,019

1,511,577 16,350

LiabilitiesManagement fee payable 2,439 9 Insurance fee payable 1,056 4 Accounts payable and accrued liabilities 15,260 11,294

18,755 11,307

Net assets 1,492,822$ 5,043$


Statement of Changes in Net Assets Period fromYear ended November 9, 2009 to


Net assets, beginning of the period 5,043$ -$ Premium deposits 1,407,410 5,000 Net income 80,369 43

1,492,822 5,043 Less

Withdrawals - - - -

Net Assets, end of the period 1,492,822$ 5,043$

Number of units outstanding 136,821 500


RBC DS Canadian Focus Fund GIF




Page 26 of 64





MER before waiver %


Other expenses absorbed by the manager 2010 2.97 55,374$ 13.30 12,154$ 2.92 (also see note 8) 2009 2.80 20 2.80 20 2.80





Sales and redemption of units 2010 500 136,321 - 136,821 (also see note 9) 2009 - 500 - 500


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Canadian Focus Fund, Series O 2010 82,769 1,407,469$ 1.7246 1,499,550$ 18.12$

2009 193 3,066 0.0029 3,118 16.13


From net income -$ -$ N/A N/A N/A From realized gains 0.00 - N/A N/A N/A Return of capital - - N/A N/A N/ATotal annual distributions 0.00$ -$ N/A N/A N/ANet Asset Value at December 31 10.91$ 10.09$ N/A N/A N/A

Ratios and supplemental dataNet assets ($ '000) 1,493$ 5$ N/A N/A N/ANumber of units outstanding 136,821 500 N/A N/A N/AManagement expense ratio (1) 2.92% 2.80% N/A N/A N/APortfolio turnover rate of the Fund (2) 5.27% 313.40% N/A N/A N/A



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsToronto-Dominion Bank 5.7 Cenovus Energy Inc. 2.8Barrick Gold Corp. 5.6 Power Corporation of Canada 2.5Suncor Energy Inc. 5.4 EnCana Corp. 2.4Bank of Nova Scotia 5.1 Brookfield Asset Management Inc., Class A 2.3Canadian Natural Resources Ltd. 5.0 Talisman Energy Inc. 2.3Royal Bank of Canada 4.7 Shoppers Drug Mart Corp. 2.2Goldcorp Inc. 4.2 Thomson Corp. 2.2Potash Corporation of Saskatchewan Inc. 4.2 TELUS Corp., Class A 2.0Canadian National Railway Co. 3.9 Bonavista Energy Trust 1.8Teck Resources Ltd., Class B 3.3 Rogers Communications Inc., Class B 1.7SNC-Lavalin Group Inc. 3.1 Imperial Oil Ltd. 1.7TransCanada Corp. 2.9 National Bank of Canada 1.6Research In Motion Ltd. 2.8 Total % of top 25 holdings 81.4

RBC DS Canadian Focus Fund GIF




2.25 0.55 (1.05)






Distribution from underlying funds 27,023$ 56,417$ Realized losses on sale of investments (27,586) (78,775) Increase in unrealized appreciation of investments 192,494 329,311

191,931 306,953 Expenses


47,248 35,993

Net Income 144,683$ 270,960$



AssetsInvestments in underlying fund at fair value 1,503,136$ 1,433,609$ Cash 4,078 2,288 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 9,404 9,796

1,517,986 1,446,907

LiabilitiesManagement fee payable 3,656 2,991 Insurance fee payable 1,583 1,295 Accounts payable and accrued liabilities 20,651 17,038

25,890 21,324

Net assets 1,492,096$ 1,425,583$




Net assets, beginning of year 1,425,583$ 1,162,833$ Premium deposits 586,172 282,951 Net income 144,683 270,960

2,156,438 1,716,744 Less

Withdrawals 664,342 291,161 664,342 291,161




RBC North American Growth GIF




Page 28 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC North American Growth Fund, 2010 57,235 1,466,302$ 4.3022 1,503,136$ 26.26$ Series O 2009 60,890 1,589,270 0.2418 1,433,609 23.54


From net income -$ 0.05$ 0.03$ -$ -$ From realized gains (0.09) (0.52) (0.16) 0.09 1.00 Return of capital - - - - - Total annual distributions (0.09)$ (0.47)$ (0.13)$ 0.09$ 1.00$ Net Asset Value at December 31 10.58$ 9.61$ 7.80$ 11.89$ 10.98$

Ratios and supplemental dataNet assets ($ '000) 1,492$ 1,426$ 1,162$ 782$ 93$ Number of units outstanding 140,972 148,367 149,166 65,822 8,538 Management expense ratio (1) 2.86% 2.80% 2.80% 2.80% 2.80%Portfolio turnover rate of the Fund (2) 35.26% 23.38% 10.59% 5.08% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsRoyal Bank of Canada 2.3 Canadian Imperial Bank of Commerce 1.0Barrick Gold Corp. 2.2 Wells Fargo & Company 1.0Suncor Energy Inc. 2.1 Cenovus Energy Inc. 1.0Toronto-Dominion Bank 2.1 Manulife Financial Corporation 0.9Bank of Nova Scotia 1.9 Azure Dynamics Corp. 0.9Canadian Natural Resources Ltd. 1.8 Goldcorp Inc. 0.9Potash Corporation of Saskatchewan Inc. 1.5 Agrium Inc. 0.9Apple Inc. 1.2 EnCana Corp. 0.8Power Corporation of Canada 1.2 Deere & Co. 0.8Research In Motion Ltd. 1.2 Oracle Corporation 0.8Teck Resources Ltd., Class B 1.2 Rogers Communications Inc., Class B 0.8Canadian National Railway Co. 1.1 Newfield Exploration Company 0.8Agnico-Eagle Mines Ltd. 1.1 Total % of top 25 holdings 31.5

RBC North American Growth GIF




2.25 0.55 (1.05)





IncomeDistribution from underlying funds 2,265$ 6,518$ Realized losses on sale of investments (3,476) (12,887) Increase in unrealized appreciation of investments 39,922 50,024

38,711 43,655 Expenses


11,500 9,496

Net Income 27,211$ 34,159$



AssetsInvestments in underlying fund at fair value 455,466$ 394,681$ Cash 4,099 737 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 9,732 9,476

470,665 406,108

LiabilitiesManagement fee payable 1,011 842 Insurance fee payable 421 351 Accounts payable and accrued liabilities 17,481 16,319

18,913 17,512

Net assets 451,752$ 388,596$



Net assets, beginning of year 388,596$ 308,597$ Premium deposits 94,638 83,789 Net income 27,211 34,159

510,445 426,545 Less

Withdrawals 58,693 37,949 58,693 37,949




RBC North American Dividend GIF




Page 30 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC North American Dividend Fund, 2010 29,903 436,928$ 91.8188 455,466$ 15.23$ Series O 2009 28,354 416,067 95.3364 394,681 13.92


From net income -$ -$ 0.08$ -$ N/A From realized gains (0.07) (0.27) (0.04) 0.43 N/A Return of capital - - - - N/ATotal annual distributions (0.07)$ (0.27)$ 0.04$ 0.43$ N/ANet Asset Value at December 31 8.68$ 8.11$ 7.40$ 9.81$ N/A

Ratios and supplemental dataNet assets ($ '000) 452$ 389$ 308$ 44$ N/ANumber of units outstanding 52,047 47,927 41,687 4,501 N/AManagement expense ratio (1) 2.91% 2.85% 2.85% 2.85% N/APortfolio turnover rate of the Fund (2) 18.71% 24.45% 15.27% 0.00% N/A


The comparative data for the year 2006 not available as the Fund was introduced in 2007.

Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsApple Inc. 2.8 Starbucks Corp. 1.5Huntington Bancshares 2.3 Frontier Communications Corp. 1.5Citigroup Inc. 2.0 Baytex Energy Trust 1.5Wells Fargo & Company 1.9 Windstream Corp. 1.5International Business Machines 1.9 AmerisourceBergen Corp. 1.5Express Scripts Inc., Class A 1.9 AT&T Inc. 1.4Microsoft Corp. 1.8 JPMorgan Chase & Co. 1.4General Electric Company 1.7 Molson Coors Brewing Co., Class B 1.4Cash & Cash Equivalents 1.7 QUALCOMM Inc. 1.4Invesco Ltd. 1.6 Talisman Energy Inc. 1.4Starwood Hotels & Resorts Worldwide Inc. 1.6 Oracle Corporation 1.4Verizon Communications Inc. 1.5 Exxon Mobil Corp. 1.3Canadian Natural Resources Ltd. 1.5 Total % of top 25 holdings 41.4

RBC North American Dividend GIF




2.30 0.55 (1.15)





IncomeDistribution from underlying funds 4,112$ 1,689$ Realized losses on sale of investments (40) (2,956)Increase in unrealized appreciation of investments 18,192 21,951

22,264 20,684Expenses


8,866 5,943

Net Income 13,398$ 14,741$



AssetsInvestments in underlying fund at fair value 318,390$ 259,708$Cash - 402 Prepaid expenses 1,368 1,214 Due from RBC Life Insurance Company 8,739 8,310

328,497 269,634

LiabilitiesBank indebtedness 5,396 - Management fee payable 666 434 Insurance fee payable 480 365 Accounts payable and accrued liabilities 16,290 15,340

22,832 16,139

Net assets 305,665$ 253,495$




362,471 255,397Less

Withdrawals 56,806 1,902 56,806 1,902




RBC U.S. Equity GIF




Page 32 of 64





MER before waiver %







Sales and redemption of units 2010 29,550 11,264 (6,535) 34,279 (also see note 9) 2009 18,024 11,755 (229) 29,550


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC U.S. Equity Fund, Series O 2010 14,575 307,027$ 0.1520 318,390$ 21.84$

2009 12,551 266,538 0.0117 259,708 20.69


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 8.92$ 8.58$ 8.12$ 10.75$ 10.98$

Ratios and supplemental dataNet assets ($ '000) 306$ 253$ 146$ 111$ 9$ Number of units outstanding 34,279 29,550 18,024 10,395 863 Management expense ratio (1) 3.02% 2.95% 2.95% 2.95% 2.95%Portfolio turnover rate of the Fund (2) 19.26% 9.90% 23.47% 54.76% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsApple Inc. 2.6 AmerisourceBergen Corp. 1.4Wells Fargo & Company 2.3 Oracle Corporation 1.3Citigroup Inc. 2.2 Coca-Cola Co. 1.3Cash & Cash Equivalents 2.1 Microsoft Corp. 1.3General Electric Company 1.8 Suntrust Banks Inc. 1.3Exxon Mobil Corp. 1.7 Newfield Exploration Company 1.3JPMorgan Chase & Co. 1.7 ConocoPhillips 1.3Prudential Financial Inc. 1.6 Broadcom Corp. 1.3Invesco Ltd. 1.5 Murphy Oil Corp. 1.3Goldman Sachs Group Inc. 1.5 Molson Coors Brewing Co., Class B 1.3UnitedHealth Group Incorporated 1.5 EMC Corp. 1.3Pfizer Inc. 1.4 Bank of America Corp. 1.3QUALCOMM Inc. 1.4 Total % of top 25 holdings 39.0

RBC U.S. Equity GIF




2.30 0.65 (1.15)






364,045 445,373 Expenses


72,137 49,584

Net Income 291,908$ 395,789$




2,600,682 2,111,100


32,089 34,717

Net assets 2,568,593$ 2,076,383$




3,070,624 2,478,322 Less

Withdrawals 502,031 401,939 502,031 401,939




RBC O' Shaughnessy U.S. Value GIF




Page 34 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O' Shaughnessy U.S. Value Fund, 2010 288,702 2,760,955$ 2.9767 2,584,717$ 8.95$ Series O 2009 264,820 2,633,732 2.6922 2,092,475 7.90


From net income -$ -$ 0.02$ -$ -$ From realized gains (0.15) (0.80) (0.79) 1.01 0.28 Return of capital - - - - - Total annual distributions (0.15)$ (0.80)$ (0.77)$ 1.01$ 0.28$ Net Asset Value at December 31 7.66$ 6.79$ 5.52$ 9.95$ 10.71$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsCash & Cash Equivalents 2.5 WellPoint Inc. 1.8Verizon Communications Inc. 2.3 Safeway Inc. 1.8Texas Instruments Inc. 2.3 Altria Group Inc. 1.8Chubb Corp. 2.2 Telefonica S.A. ADR 1.8Northrop Grumman Corp. 2.1 Eli Lilly & Co. 1.7Philip Morris International Inc. 2.1 CVS Corp. 1.7Time Warner Inc. 2.0 Sara Lee Corp. 1.7Bristol-Myers Squibb Co. 2.0 Medco Health Solutions Inc. 1.7Travelers Cos. Inc. 2.0 International Business Machines 1.7AT&T Inc. 2.0 Colgate-Palmolive Company 1.7DIRECTV, Class A 1.9 Baxter International Inc. 1.7Waste Management Inc. 1.8 McDonald's Corp. 1.7Rogers Communications Inc., Class B 1.8 Total % of top 25 holdings 47.8

RBC O' Shaughnessy U.S. Value GIF




2.30 0.65 (1.15)





IncomeDistribution from underlying funds 1,194$ 2$ Realized gains (losses) on sale of investments 3,032 (5,669) Increase in unrealized appreciation of investments 17,905 17,800

22,131 12,133 Expenses

Management fees 1,825 1,070 Insurance fees 920 539 Other administrative expenses 1,305 838

4,050 2,447

Net Income 18,081$ 9,686$



AssetsInvestments in underlying fund at fair value 163,012$ 122,609$ Cash 3,963 272

Accrued income distribution from investments 1,368 1,214 Due from RBC Life Insurance Company 8,289 8,176

176,632 132,271

LiabilitiesManagement fee payable 357 232 Insurance fee payable 180 117 Accounts payable and accrued liabilities 14,692 15,110

15,229 15,459

Net assets 161,403$ 116,812$



Net assets, beginning of year 116,812$ 65,195$ Premium deposits 51,207 44,680 Net income 18,081 9,686

186,100 119,561 Less

Withdrawals 24,697 2,749 24,697 2,749




RBC U.S. Mid-Cap Equity GIF




Page 36 of 64





MER before waiver %







Sales and redemption of units 2010 12,847 5,489 (2,696) 15,640 (also see note 9) 2009 7,869 5,317 (339) 12,847


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC U.S. Mid-Cap Equity Fund, Series O 2010 8,910 137,319$ 0.0418 163,012$ 18.30$

2009 7,730 114,821 0.0388 122,609 15.86


From net income -$ -$ -$ -$ -$ From realized gains - (0.44) (1.00) 0.07 - Return of capital - - - - - Total annual distributions -$ (0.44)$ (1.00)$ 0.07$ -$ Net Asset Value at December 31 10.32$ 9.09$ 8.29$ 10.99$ 11.23$

Ratios and supplemental dataNet assets ($ '000) 161$ 117$ 65$ 70$ 5$ Number of units outstanding 15,640 12,847 7,869 6,383 500 Management expense ratio (1) 2.96% 2.95% 2.95% 2.95% 2.95%Portfolio turnover rate of the Fund (2) 27.93% 56.00% 97.15% 79.99% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsHuntington Bancshares 2.3 Ciena Corp. 1.3Affiliated Managers Group Inc. 2.2 Quanta Services Inc. 1.3Arrow Electronics Inc. 1.7 Borg-Warner Automotive Inc. 1.3Juniper Networks Inc. 1.6 Celanese Corp. 1.3Timken Co. 1.5 Schnitzer Steel Industries Inc., Class A 1.3City National Corp. 1.5 Agnico-Eagle Mines Ltd. 1.3F5 Networks Inc. 1.5 Red Hat Inc. 1.3Hubbell Inc., Class B 1.4 Concho Resources Inc. 1.3AMB Property Corp. 1.4 Cash & Cash Equivalents 1.2Rovi Corp. 1.3 Alexandria Real Estate Equities Inc. 1.2Netgear Inc. 1.3 Complete Production Services Inc. 1.2Protective Life Corp. 1.3 Terex Corp. 1.2Alexion Pharmaceuticals Inc. 1.3 Total % of top 25 holdings 35.5

RBC U.S. Mid-Cap Equity GIF




2.30 0.65 (1.15)






Distribution from underlying funds 18,112$ 18,553$Realized losses on sale of investments (9,947) (47,823)Increase in unrealized appreciation of investments 22,573 136,790

30,738 107,520Expenses

Management fees 9,922 10,282Insurance fees 5,033 5,215 Other administrative expenses 6,693 7,599

21,648 23,096

Net Income 9,090$ 84,424$



AssetsInvestments in underlying fund at fair value 792,891$ 717,531$Cash 4,419 1,389

Accrued income distribution from investments 1,368 1,214 Due from RBC Life Insurance Company 9,803 9,147

808,481 729,281

LiabilitiesManagement fee payable 1,893 1,639 Insurance fee payable 874 745 Accounts payable and accrued liabilities 18,072 15,194

20,839 17,578

Net assets 787,642$ 711,703$





936,184 1,059,631Less

Withdrawals 148,542 347,928148,542 347,928




RBC Global Dividend Growth GIF




Page 38 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Global Dividend Growth Fund, 2010 91,732 794,574$ 0.2047 792,891$ 8.64$ Series O 2009 84,526 741,788 0.1838 717,531 8.49


From net income -$ -$ 0.09$ -$ -$ From realized gains (0.07) (0.51) (0.11) 0.43 - Return of capital - - - - - Total annual distributions (0.07)$ (0.51)$ (0.02)$ 0.43$ -$ Net Asset Value at December 31 8.27$ 8.18$ 7.39$ 10.69$ 11.26$

Ratios and supplemental dataNet assets ($ '000) 788$ 712$ 699$ 335$ 36$ Number of units outstanding 95,240 86,967 94,701 31,338 3,227 Management expense ratio (1) 3.17% 3.10% 3.10% 3.10% 3.10%Portfolio turnover rate of the Fund (2) 22.23% 44.59% 19.06% 25.83% 0.00%


Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsChevron Corp. 5.2 Bank of China Ltd. 3.0Rio Tinto Plc. 4.2 Allianz SE 3.0BlackRock Inc. 4.2 Itau Unibanco Holding S.A. ADR 2.9AmerisourceBergen Corp. 3.3 Union Pacific Corp. 2.9Deere & Co. 3.2 The Walt Disney Company 2.9Comcast Corp., Class A 3.1 International Business Machines 2.9CVS Corp. 3.1 Telefonica S.A. 2.9Antofagasta Plc. 3.1 Reckitt Benckiser Plc. 2.9United Parcel Service Inc. 3.1 GDF Suez 2.9JPMorgan Chase & Co. 3.1 Bayerische Motoren Werke (BMW) AG 2.8Oracle Corporation 3.1 HSBC Holdings Plc. (U.K. Reg.) 2.8Accenture Plc., Class A 3.1 McDonald's Corp. 2.8Pfizer Inc. 3.0 Total % of top 25 holdings 79.5

RBC Global Dividend Growth GIF




2.40 0.70 (1.20)






241,420 289,615 Expenses


111,171 117,516

Net Income 130,249$ 172,099$




3,428,993 3,999,837


40,383 42,150

Net assets 3,388,610$ 3,957,687$




4,511,519 4,434,142 Less

Withdrawals 1,122,909 476,455 1,122,909 476,455




RBC O'Shaughnessy International Equity GIF




Page 40 of 64





MER before waiver %









Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC O'Shaughnessy International Equity 2010 426,757 4,696,793$ 5.7153 3,415,717$ 8.00$ Fund, Series O 2009 520,987 5,904,158 7.4853 3,980,032 7.64


From net income 0.00$ 0.03$ 0.15$ 0.01$ -$ From realized gains (1.00) (0.41) (0.49) 0.69 - Return of capital - - - - - Total annual distributions (1.00)$ (0.38)$ (0.34)$ 0.70$ -$ Net Asset Value at December 31 7.29$ 6.95$ 6.70$ 10.65$ 11.59$



Top 25 holdings of the underlying fund (Unaudited) % of Assets % of AssetsPlastic Omnium S.A. 2.3 Deutsche Telekom AG 1.7ENI S.p.A. 2.1 France Telecom S.A. 1.7Telecom Corp. of New Zealand Ltd. 1.9 Koninklijke KPN N.V. 1.7Scottish and Southern Energy Plc. 1.9 Royal Dutch Shell Plc. 1.6ProSiebenSat.1 Media AG Preference 1.9 The Weir Group Plc. 1.6Vivendi S.A. 1.9 SEB S.A. 1.6Telstra Corp. Ltd. 1.8 Telefonica S.A. 1.6Total S.A. 1.8 Cash & Cash Equivalents 1.5Portugal Telecom SGPS S.A. 1.8 Senior Plc. 1.5Enel S.p.A. 1.8 D'ieteren Trading NPV 1.4Greek Organization of Football Prognostics S.A. 1.8 Telekom Austria AG 1.4E.ON AG 1.7 Jeronimo Martins SGPS S.A. 1.4National Grid Plc. 1.7 Total % of top 25 holdings 43.1

RBC O'Shaughnessy International Equity GIF




2.40 0.70 (1.20)





IncomeDistribution from underlying funds 773,501$ 308,596$ Realized gains (losses) on sale of investments 344,414 (269) Increase in unrealized appreciation of investments 865,658 837,818

1,983,573 1,146,145 Expenses


599,293 217,633

Net Income 1,384,280$ 928,512$ Net income per unitSeries 1 0.59$ 0.93$ Series 2 0.57 1.03


AssetsInvestments in underlying funds at fair value 32,862,802$ 12,793,548$ Prepaid expenses 2,686 2,427

32,865,488 12,795,975

LiabilitiesBank indebtedness 4,985 2,163 Management fee payable 69,470 24,233 Insurance fee payable 14,236 5,196 Accounts payable and accrued liabilities 54,702 22,061

143,393 53,653

Net assets 32,722,095$ 12,742,322$ Net assets value per unitSeries 1 10.64$ 10.14$ Series 2 10.66 10.17


Net assets, beginning of year 12,742,322$ 6,941,691$ Premium deposits 23,332,850 7,970,191 Net income 1,384,280 928,512

37,459,452 15,840,394 Less

Withdrawals 4,737,357 3,098,072 4,737,357 3,098,072


Number of units outstandingSeries 1 1,705,710 532,919 Series 2 1,367,317 721,303


RBC Select Conservative GIP




Page 42 of 64

RBC Guaranteed Investment Funds Supplementary InformationDecember 31, 2010

Series 1 Series 2 Series 1 Series 2Management fees and insurance fees 2010 2.10 2.20 0.20 (0.70) 0.30 (0.80)(also see note 7) 2009 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

waiver MER after waiver %(also see note 8) Series 1 2010 2.42 315,626$ 2.37 315,626$ 2.37

2009 2.30 84,781 2.30 84,781 2.30 Series 2 2010 2.61 283,667 2.56 283,667 2.56

2009 2.50 132,341 2.50 132,341 2.50

Sales and redemption of units Balance as at January 1st




(also see note 9) Series 1 2010 532,919 1,471,378 (298,587) 1,705,710 2009 359,709 421,483 (248,273) 532,919

Series 2 2010 721,303 808,369 (162,355) 1,367,317 2009 396,337 405,458 (80,492) 721,303


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Conservative Portfolio Fund, Series O 2010 1,763,168 31,392,635$ 93.9951 32,862,802$ 18.64$

2009 712,229 12,189,039 94.7102 12,793,548 17.96

Financial highlights (Unaudited) 2010 2009 2008 2007 2006Series 1Value per unitDistributions: (*)

From net income 0.07$ 0.08$ -$ -$ -$ From realized gains 0.12 - (0.62) 0.25 0.00 Return of capital - - - - - Total annual distributions 0.19$ 0.08$ (0.62)$ 0.25$ 0.00$ Net Asset Value at December 31 10.64$ 10.14$ 9.16$ 10.59$ 10.38$

Ratios and supplmental dataNet assets ($ '000) 18,153$ 5,405$ 3,293$ 2,346$ 55$ Number of units outstanding 1,705,710 532,919 359,709 221,511 5,352 Management expense ratio (1) 2.37% 2.30% 2.30% 2.30% 2.30%Portfolio turnover rate (2) 11.23% 28.35% 132.83% 52.74% 0.00%

Series 2Value per unitDistributions: (*)

From net income 0.05$ 0.06$ -$ -$ 0.01$ From realized gains 0.12 - (0.63) 5.30 0.03 Return of capital - - - - - Total annual distributions 0.17$ 0.06$ (0.63)$ 5.30$ 0.04$ Net Asset Value at December 31 10.66$ 10.17$ 9.20$ 10.30$ 10.56$

Ratios and supplmental dataNet assets ($ '000) 14,569$ 7,337$ 3,647$ 1,201$ 272$ Number of units outstanding 1,367,317 721,303 396,337 116,623 25,739 Management expense ratio (1) 2.56% 2.50% 2.50% 2.50% 2.50%Portfolio turnover rate (2) 11.23% 28.35% 132.83% 52.74% 0.00%




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 5years.




Page 43 of 64


% of % of % of % ofAssets Assets Assets Assets

RBC Bond 24.5 Phillips, Hager & North U.S. MSAC Equity Fund 3.0Cash & Cash Equivalents 4.2 Cash and Cash Equivalents 2.4Government of Canada 5.000% Jun 1 37 2.5 Wells Fargo & Company 1.7Government of Canada 4.000% Jun 1 41 2.0 JPMorgan Chase & Co. 1.6Province of Ontario 4.650% Jun 2 41 1.8 General Electric Company 1.3Province of Ontario 4.700% Jun 2 37 1.5 Citigroup Inc. 1.3

Phillips, Hager & North Bond Fund 14.7 RBC Canadian Money Market Fund 0.1Province of Ontario 7.600% Jun 2 27 11.3 HSBC Bank Canada 1.120% Jan 14 11 3.9Cash and Cash Equivalents 9.7 Bank of Nova Scotia 1.170% Mar 18 11 3.4Province of Ontario 4.400% Jun 2 19 6.0 Diversified Trust 1.291% May 24 11 3.3Canada Housing Trust No. 1 4.100% Dec 15 18 4.4 Toronto-Dominion Bank 1.072% Jan 28 11 3.3Toronto-Dominion Bank 5.382% Nov 1 17 2.0 Fusion Trust 1.301% Apr 19 11 2.9

RBC Canadian Short-Term Income Fund 9.8 Total % of top holdings of underlying 100.0Canada Housing Trust No. 1 4.550% Dec 15 12 7.4 mutual fundsProvince of Ontario 3.250% Sep 8 14 5.7Canada Housing Trust No. 1 4.000% Jun 15 12 4.3Government of Canada 1.250% Dec 1 11 4.2Bank of Nova Scotia 5.040% Apr 8 13 3.7

RBC Global Bond Fund 9.8Cash & Cash Equivalents 4.4Buoni Poliennali Del Tesoro EUR 3.500% Jun 1 14 3.0Deutsche Bundesrepublik EUR 3.000% Jul 4 20 2.8United States Treasury 1.750% Mar 31 14 2.7Japan Government Ten Year JPY 1.000% Sep 20 20 2.2

RBC Canadian Dividend Fund 9.5Royal Bank of Canada 7.2Toronto-Dominion Bank 6.6Bank of Nova Scotia 4.9Canadian Imperial Bank of Commerce 4.1Bank of Montreal 3.8

RBC U.S. Equity Fund 8.9Apple Inc. 2.6Wells Fargo & Company 2.3Citigroup Inc. 2.2Cash & Cash Equivalents 2.1General Electric Company 1.8

RBC Canadian Equity Fund 8.4Royal Bank of Canada 4.8Toronto-Dominion Bank 4.3Suncor Energy Inc. 3.9Bank of Nova Scotia 3.6Barrick Gold Corp. 3.5

RBC European Equity Fund 7.9Swatch Group AG 3.0BASF AG 2.8BHP Billiton Plc. 2.6AstraZeneca Plc. 2.6Schindler Holding AG 2.3

RBC Asian Equity Fund 3.4Cash & Cash Equivalents 1.6Mitsubishi Estate Co. Ltd. 1.4Hyundai Department Store Co., Ltd. 1.4BHP Billiton Ltd. 1.4LG Chem Ltd. 1.4




Page 44 of 64



IncomeDistribution from underlying funds 702,283$ 504,720$ Realized gains (losses) on sale of investments 301,683 (64,095) Increase in unrealized appreciation of investments 1,496,980 2,053,411

2,500,946 2,494,036 Expenses


747,717 468,713

Net Income 1,753,229$ 2,025,323$

Net income per unitSeries 1 0.60$ 0.99$ Series 2 0.61 1.04


AssetsInvestments in underlying funds at fair value 32,422,368$ 22,517,664$ Cash - 100,062 Prepaid expenses 2,736 2,427 Due from RBC Life Insurance Company 107,050 -

32,532,154 22,620,153

Liabilities Bank indebtedness 162,547 -

Management fee payable 73,942 46,250 Insurance fee payable 21,384 13,382 Accounts payable and accrued liabilities 45,038 44,590

302,911 104,222 Net assets 32,229,243$ 22,515,931$

Net assets value per unitSeries 1 10.26$ 9.69$ Series 2 10.16 9.61



36,830,114 26,063,907 Less

Withdrawals 4,600,871 3,547,976 4,600,871 3,547,976


Number of units outstandingSeries 1 852,798 639,461 Series 2 2,309,932 1,697,271


RBC Select Balanced GIP




Page 45 of 64



Other expenses absorbed by the manager Annualized MER


waiverMER before



2009 2.50 142,786 2.71 131,900 2.50 Series 2 2010 2.78 522,264 2.59 552,264 2.74

2009 2.70 355,919 2.85 336,813 2.70

Sales and redemption of units Balance as at

January 1, 2010Purchases during

the yearRedemptions

during the yearBalance as at

December 31, 2010(also see note 9) Series 1 2010 639,461 401,427 (188,090) 852,798

2009 678,484 166,900 (205,923) 639,461 Series 2 2010 1,697,271 895,759 (283,098) 2,309,932

2009 1,101,752 786,191 (190,672) 1,697,271


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Balanced Portfolio Fund, 2010 1,503,514 30,044,165$ 87.3713 32,422,368$ 21.56$ Series O 2009 1,104,657 21,636,441 87.6427 22,517,664 20.38


From net income -$ -$ 0.06$ -$ -$ From realized gains 0.09 (0.02) (1.26) 0.22 0.06 Return of capital - - - - - Total annual distributions 0.09$ (0.02)$ (1.20)$ 0.22$ 0.06$ Net Asset Value at December 31 10.26$ 9.69$ 8.67$ 10.68$ 10.67$

Ratios and supplmental dataNet assets ($ '000) 8,752$ 6,197$ 5,880$ 3,785$ 859$ Number of units outstanding 852,798 639,461 678,484 354,316 80,529 Management expense ratio (1) 2.55% 2.50% 2.50% 2.50% 2.50%Portfolio turnover rate (2) 10.11% 13.85% 118.20% 8.94% 0.00%


From net income -$ -$ 0.06$ 0.00$ -$ From realized gains 0.09 (0.02) (1.25) 0.22 0.06 Return of capital - - - - - Total annual distributions 0.09$ (0.02)$ (1.19)$ 0.22$ 0.06$ Net Asset Value at December 31 10.16$ 9.61$ 8.62$ 10.64$ 10.68$

Ratios and supplmental dataNet assets ($ '000) 23,477$ 16,319$ 9,491$ 8,907$ 1,419$ Number of units outstanding 2,309,932 1,697,271 1,101,752 837,101 132,831 Management expense ratio (1) 2.59% 2.70% 2.70% 2.70% 2.70%Portfolio turnover rate (2) 10.11% 13.85% 118.20% 8.94% 0.00%









Page 46 of 64



RBC Bond 33.6 RBC Emerging Market Fund 3.3Cash & Cash Equivalents 4.2 America Movil S.A. de CV ADR 3.8Government of Canada 5.000% Jun 1 37 2.5 Cash & Cash Equivalents 3.6Government of Canada 4.000% Jun 1 41 2.0 Samsung Electronics Co. Ltd. 3.6Province of Ontario 4.650% Jun 2 41 1.8 Itau Unibanco Holding S.A. ADR 3.5Province of Ontario 4.700% Jun 2 37 1.5 Vale S.A. ADR 3.4

RBC U.S. Equity 12.4 RBC Global Dividend Growth 3.2Apple Inc. 2.6 Chevron Corp. 5.2Wells Fargo & Company 2.3 Rio Tinto Plc. 4.2Citigroup Inc. 2.2 BlackRock Inc. 4.2Cash & Cash Equivalents 2.1 AmerisourceBergen Corp. 3.3General Electric Company 1.8 Deere & Co. 3.2

RBC Canadian Equity 11.4 RBC Canadian Money Market Fund 0.1Royal Bank of Canada 4.8 HSBC Bank Canada 1.120% Jan 14 11 3.9Toronto-Dominion Bank 4.3 Bank of Nova Scotia 1.170% Mar 18 11 3.4Suncor Energy Inc. 3.9 Diversified Trust 1.291% May 24 11 3.3Bank of Nova Scotia 3.6 Toronto-Dominion Bank 1.072% Jan 28 11 3.3Barrick Gold Corp. 3.5 Fusion Trust 1.301% Apr 19 11 2.9

RBC Canadian Dividend Fund 11.3 Total % of top holdings of underlying 100.0Royal Bank of Canada 7.2 mutual fundsToronto-Dominion Bank 6.6Bank of Nova Scotia 4.9Canadian Imperial Bank of Commerce 4.1Bank of Montreal 3.8

RBC European Equity Fund 7.6Swatch Group AG 3.0BASF AG 2.8BHP Billiton Plc. 2.6AstraZeneca Plc. 2.6Schindler Holding AG 2.3

Phillips, Hager & North U.S. MSAC Equity Fund 5.1Cash and Cash Equivalents 2.4Wells Fargo & Company 1.7JPMorgan Chase & Co. 1.6General Electric Company 1.3Citigroup Inc. 1.3

RBC Global Bond Fund 4.8Cash & Cash Equivalents 4.4Buoni Poliennali Del Tesoro EUR 3.500% Jun 1 14 3.0Deutsche Bundesrepublik EUR 3.000% Jul 4 20 2.8United States Treasury 1.750% Mar 31 14 2.7Japan Government Ten Year JPY 1.000% Sep 20 20 2.2


RBC U.S. Mid-Cap Equity Fund 3.4Huntington Bancshares 2.3Affiliated Managers Group Inc. 2.2Arrow Electronics Inc. 1.7Juniper Networks Inc. 1.6Timken Co. 1.5






IncomeDistribution from underlying funds 309,699$ 269,282$ Realized gains on sale of investments 139,302 10,858 Increase in unrealized appreciation of investments 1,024,417 1,514,450

1,473,418 1,794,590 Expenses


468,291 320,087

Net Income 1,005,127$ 1,474,503$ Net income per unitSeries 1 0.59$ 1.14$ Series 2 0.59 1.15


AssetsInvestments in underlying funds at fair value 17,448,924$ 13,631,214$ Cash 11,854 12,848 Prepaid expenses 2,736 2,427 Due from RBC Life Insurance Company - 6,681

17,463,514 13,653,170


105,961 76,390

Net assets 17,357,553$ 13,576,780$ Net assets value per unitSeries 1 9.92$ 9.35$ Series 2 9.83 9.29



20,447,516 14,404,055 Less

Withdrawals 3,089,963 827,275 3,089,963 827,275


Number of units outstandingSeries 1 364,520 325,512 Series 2 1,397,561 1,133,713


RBC Select Growth GIP




Page 48 of 64





waiverMER before



2009 2.75 82,619 3.30 68,899 2.75 Series 2 2010 3.06 377,841 3.03 375,379 3.01

2009 2.95 297,031 3.49 251,188 2.95



the yearRedemptions



2009 260,480 85,546 (20,514) 325,512 Series 2 2010 1,133,713 488,332 (224,484) 1,397,561

2009 839,420 368,396 (74,103) 1,133,713


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Growth Portfolio Fund, 2010 782,509 15,937,125$ 92.9270 17,448,924$ 22.30$ Series O 2009 652,939 13,143,830 99.2388 13,631,214 20.88






Ratios and supplmental dataNet assets ($ '000) 13,743$ 10,533$ 6,905$ 6,549$ 725$ Number of units outstanding 1,397,561 1,133,713 839 598,477 65,847 Management expense ratio (1) 3.01% 2.95% 2.95% 2.95% 2.95%Portfolio turnover rate (2) 14.11% 4.09% 110.98% 8.29% 0.00%









Page 49 of 64



RBC Canadian Equity Fund 17.8 RBC Canadian Dividend Fund 4.4Royal Bank of Canada 4.8 Royal Bank of Canada 7.2Toronto-Dominion Bank 4.3 Toronto-Dominion Bank 6.6Suncor Energy Inc. 3.9 Bank of Nova Scotia 4.9Bank of Nova Scotia 3.6 Canadian Imperial Bank of Commerce 4.1Barrick Gold Corp. 3.5 Bank of Montreal 3.8

RBC U.S. Equity 14.9 RBC Emerging Market Fund 4.3Apple Inc. 2.6 America Movil S.A. de CV ADR 3.8Wells Fargo & Company 2.3 Cash & Cash Equivalents 3.6Citigroup Inc. 2.2 Samsung Electronics Co. Ltd. 3.6Cash & Cash Equivalents 2.1 Itau Unibanco Holding S.A. ADR 3.5General Electric Company 1.8 Vale S.A. ADR 3.4

RBC Bond Fund 13.9 RBC U.S. Mid-Cap Equity Fund 3.8Cash & Cash Equivalents 4.2 Huntington Bancshares 2.3Government of Canada 5.000% Jun 1 37 2.5 Affiliated Managers Group Inc. 2.2Government of Canada 4.000% Jun 1 41 2.0 Arrow Electronics Inc. 1.7Province of Ontario 4.650% Jun 2 41 1.8 Juniper Networks Inc. 1.6Province of Ontario 4.700% Jun 2 37 1.5 Timken Co. 1.5

RBC Global Bond Fund 9.3 Cash & Cash Equivalents 0.2Cash & Cash Equivalents 4.4 RBC Canadian Money Market FundBuoni Poliennali Del Tesoro EUR 3.500% Jun 1 14 3.0 HSBC Bank Canada 1.120% Jan 14 11 3.9Deutsche Bundesrepublik EUR 3.000% Jul 4 20 2.8 Bank of Nova Scotia 1.170% Mar 18 11 3.4United States Treasury 1.750% Mar 31 14 2.7 Diversified Trust 1.291% May 24 11 3.3Japan Government Ten Year JPY 1.000% Sep 20 20 2.2 Toronto-Dominion Bank 1.072% Jan 28 11 3.3

RBC European Equity Fund 9.0 Fusion Trust 1.301% Apr 19 11 2.9 0.1Swatch Group AG 3.0 Total % of top holdings of underlying 100.0BASF AG 2.8 mutual fundsBHP Billiton Plc. 2.6AstraZeneca Plc. 2.6Schindler Holding AG 2.3


Phillips, Hager & North Canadian Growth Fund 5.6Royal Bank of Canada 4.4Toronto-Dominion Bank 4.3Bank of Nova Scotia 4.1Suncor Energy Inc. 3.8Barrick Gold Corp. 3.8


RBC Global Dividend Growth Fund 5.3Chevron Corp. 5.2Rio Tinto Plc. 4.2BlackRock Inc. 4.2AmerisourceBergen Corp. 3.3Deere & Co. 3.2






IncomeDistribution from underlying funds 68$ 821$Realized gains (losses) on sale of investments 24,347 (56,143)Increase in unrealized appreciation of investments 481,925 751,205

506,340 695,883Expenses

Management fees 71,458 54,327Insurance fees 42,910 32,906Other administrative expenses 48,533 40,780

162,901 128,013

Net Income 343,439$ 567,870$

Net income per unitSeries 1 0.59$ 1.25$Series 2 0.58 1.08


AssetsInvestments in underlying funds at fair value 5,578,475$ 4,673,884$Cash - 14,242Prepaid expenses 2,736 2,427Due from RBC Life Insurance Company 5,855 7,884

5,587,066 4,698,437

LiabilitiesBank Indebtedness 1,591 -Management fee payable 13,732 10,367Insurance fee payable 8,254 6,255Accounts payable and accrued liabilities 24,216 21,815

47,793 38,437

Net assets 5,539,273$ 4,660,000$Net assets value per unitSeries 1 9.09$ 8.54$Series 2 9.01 8.49


Net assets, beginning of year 4,660,000$ 3,800,407$Premium deposits 1,244,538 811,183Net income 343,439 567,870

6,247,977 5,179,460Less

Withdrawals 708,704 519,460708,704 519,460


Number of units outstandingSeries 1 89,565 71,280Series 2 524,460 477,521


RBC Select Aggressive Growth GIP




Page 51 of 64





waiverMER before



2009 3.00 19,998 4.06 14,763 3.00 Series 2 2010 3.41 171,533 4.06 140,758 3.33

2009 3.25 155,853 4.47 113,250 3.25



the yearRedemptions



2009 44,103 30,214 (3,037) 71,280 Series 2 2010 477,251 108,784 (61,575) 524,460

2009 471,417 73,408 (67,574) 477,251


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC Select Aggressive Growth Portfolio 2010 639,821 5,016,603$ 98.4245 5,578,475$ 8.72$ Fund, Series O 2009 588,095 4,593,937 98.8327 4,673,884 7.95


From net income -$ -$ -$ -$ -$ From realized gains - (0.08) (2.13) 0.36 0.13 Return of capital - - - - - Total annual distributions -$ (0.08)$ (2.13)$ 0.36$ 0.13$ Net Asset Value at December 31 9.09$ 8.54$ 7.39$ 11.01$ 10.91$

Ratios and supplmental dataNet assets ($ '000) 814$ 608$ 326$ 343$ 21$ Number of units outstanding 89,565 71,280 44,103 31,134 2,002 Management expense ratio (1) 3.05% 3.00% 3.00% 3.00% 3.00%Portfolio turnover rate (2) 12.29% 12.35% 104.17% 4.89% 0.00%


From net income -$ -$ -$ -$ -$ From realized gains - (0.08) (2.12) 0.36 0.13 Return of capital - - - - - Total annual distributions -$ (0.08)$ (2.12)$ 0.36$ 0.13$ Net Asset Value at December 31 9.01$ 8.49$ 7.37$ 11.02$ 11.17$










Page 52 of 64



RBC Canadian Equity 20.3 Phillips, Hager & North Canadian Growth Fund 5.1Royal Bank of Canada 4.8 Royal Bank of Canada 4.4Toronto-Dominion Bank 4.3 Toronto-Dominion Bank 4.3Suncor Energy Inc. 3.9 Bank of Nova Scotia 4.1Bank of Nova Scotia 3.6 Suncor Energy Inc. 3.8Barrick Gold Corp. 3.5 Barrick Gold Corp. 3.8

RBC U.S. Equity 17.1 Cash & Cash Equivalents 0.2Apple Inc. 2.6 RBC Canadian Money Market Fund 0.1Wells Fargo & Company 2.3 HSBC Bank Canada 1.120% Jan 14 11 3.9Citigroup Inc. 2.2 Bank of Nova Scotia 1.170% Mar 18 11 3.4Cash & Cash Equivalents 2.1 Diversified Trust 1.291% May 24 11 3.3General Electric Company 1.8 Toronto-Dominion Bank 1.072% Jan 28 11 3.3

RBC European Equity 12.6 Fusion Trust 1.301% Apr 19 11 2.9Swatch Group AG 3.0 Total % of top holdings of underlying 100.0BASF AG 2.8 mutual fundsBHP Billiton Plc. 2.6AstraZeneca Plc. 2.6Schindler Holding AG 2.3

RBC Canadian Dividend Fund 10.1Royal Bank of Canada 7.2Toronto-Dominion Bank 6.6Bank of Nova Scotia 4.9Canadian Imperial Bank of Commerce 4.1Bank of Montreal 3.8


RBC Emerging Market Fund 7.3America Movil S.A. de CV ADR 3.8Cash & Cash Equivalents 3.6Samsung Electronics Co. Ltd. 3.6Itau Unibanco Holding S.A. ADR 3.5Vale S.A. ADR 3.4

RBC U.S. Mid-Cap Equity Fund 7.0Huntington Bancshares 2.3Affiliated Managers Group Inc. 2.2Arrow Electronics Inc. 1.7Juniper Networks Inc. 1.6Timken Co. 1.5


RBC Global Dividend Growth Fund 5.8Chevron Corp. 5.2Rio Tinto Plc. 4.2BlackRock Inc. 4.2AmerisourceBergen Corp. 3.3Deere & Co. 3.2







Distribution from underlying funds 8,092$ 22$ Realized gains on sale of investments 404 17 Increase in unrealized appreciation of investments 30,011 20

38,507 59 Expenses


9,816 37

Net Income 28,691$ 22$ Net income per unitSeries 1 1.26$ 0.02$ Series 2 0.67 0.02


AssetsInvestments in underlying funds at fair value 1,299,929$ 6,171$ Cash 4,248 - Prepaid expenses 2,734 2,426 Due from RBC Life Insurance Company 7,786 13,221

1,314,697 21,818

LiabilitiesManagement fee payable 2,510 19 Insurance fee payable 691 5 Accounts payable and accrued liabilities 16,296 11,772

19,497 11,796

Net assets 1,295,200$ 10,022$ Net assets value per unitSeries 1 10.64$ 10.02$ Series 2 10.62 10.02



Net assets, beginning of the period 10,022$ -$ Premium deposits 1,256,487 10,000 Net income 28,691 22

1,295,200 10,022 Less

Withdrawals - - - -

Net Assets, end of the period 1,295,200$ 10,022$

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


RBC DS Balanced Global GIP




Page 54 of 64





waiverMER before



2009 2.50 25 3.47 18 2.50 Series 2 2010 2.88 46,136 17.90 7,326 2.84

2009 2.70 25 3.55 19 2.70



the yearRedemptions


December 31, 2010(also see note 9) Series 1 2010 500 49,042 - 49,542

2009 - 500 - 500 Series 2 2010 500 71,855 - 72,355

2009 - 500 - 500


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Balanced Global Fund, Series O 2010 123,272 1,269,898$ 99.6558 1,299,929$ 10.55$

2009 621 6,150 85.6552 6,171 9.94


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 10.64$ 10.02$ N/A N/A N/A

Ratios and supplmental dataNet assets ($ '000) 527$ 5$ N/A N/A N/ANumber of units outstanding 49,542 500 N/A N/A N/AManagement expense ratio (1) 2.60% 2.50% N/A N/A N/APortfolio turnover rate (2) 8.61% 312.97% N/A N/A N/A


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 10.62$ 10.02$ N/A N/A N/A



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 26.9Canada Housing Trust No. 1 3.600% Jun 15 13 4.1Canada Housing Trust No. 1 4.100% Dec 15 18 3.6Canada Housing Trust No. 1 4.000% Jun 15 12 3.1Canada Housing Trust No. 1 2.200% Mar 15 14 2.9Canada Housing Trust No. 1 2.700% Dec 15 13 2.3

RBC DS Canadian Focus Fund 22.0Toronto-Dominion Bank 5.7Barrick Gold Corp. 5.6Suncor Energy Inc. 5.4Bank of Nova Scotia 5.1Canadian Natural Resources Ltd. 5.0

RBC DS U.S. Focus Fund 21.6Cash & Cash Equivalents 7.6Apple Inc. 5.3AmerisourceBergen Corp. 3.7ConocoPhillips 3.3EMC Corp. 3.2

RBC DS International Focus Fund 15.7Rio Tinto Plc. 4.6Allianz SE 4.1Bank of China Ltd. 4.0Telefonica S.A. 3.6Bayerische Motoren Werke (BMW) AG 3.5

RBC Global Corporate Bond 13.0RBC Emerging Market Bond Fund 9.3Cash & Cash Equivalents 1.5United States Treasury 3.875% Aug 15 40 1.1United States Treasury Note 2.250% Nov 30 17 1.0Caterpillar Financial Services Ltd. 7.150% Feb 15 19 0.8

Cash & Cash Equivalents 0.8Total % of top holdings of underlying 100.0

mutual funds







Distribution from underlying funds 4,231$ 19$ Realized gains on sale of investments 971 18 Increase in unrealized appreciation of investments 19,285 29

24,487 66 Expenses


6,219 41

Net Income 18,268$ 25$ Net income per unitSeries 1 0.78$ 0.03$ Series 2 0.86 0.02


AssetsInvestments in underlying funds at fair value 248,986$ 6,177$ Cash 4,267 - Prepaid expenses 2,734 2,426 Due from RBC Life Insurance Company 8,470 13,221

264,457 21,824

LiabilitiesManagement fee payable 589 19 Insurance fee payable 264 8 Accounts payable and accrued liabilities 14,311 11,772

15,164 11,799

Net assets 249,293$ 10,025$ Net assets value per unitSeries 1 10.69$ 10.03$ Series 2 10.68 10.02



Net assets, beginning of the period 10,025$ -$ Premium deposits 221,000 10,000 Net income 18,268 25

249,293 10,025 Less

Withdrawals - - - -

Net Assets, end of the period 249,293$ 10,025$

Number of units outstandingSeries 1 500 500 Series 2 22,845 500


RBC DS Growth Global GIP




Page 57 of 64





waiverMER before


waiver MER after waiver %(also see note 8) Series 1 2010 2.94 2,517$ 49.91 142$ 2.82

2009 2.75 27 3.71 20 2.75 Series 2 2010 2.95 48,598 23.16 6,077 2.90

2009 2.95 28 3.93 21 2.95



the yearRedemptions


December 31, 2010(also see note 9) Series 1 2010 500 - - 500

2009 - 500 - 500 Series 2 2010 500 22,345 - 22,845

2009 - 500 - 500


Schedule of invested assets Number of units Cost % fund owned Fair value Fair value per unitRBC DS Growth Global Fund, Series O 2010 23,605 229,672$ 98.0892 248,986$ 10.55$

2009 622 6,148 85.5571 6,177 9.93



Ratios and supplmental dataNet assets ($ '000) 5$ 5$ N/A N/A N/ANumber of units outstanding 500 500 N/A N/A N/AManagement expense ratio (1) 2.82% 2.75% N/A N/A N/APortfolio turnover rate (2) 13.63% 313.61% N/A N/A N/A





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 Canadian Focus Fund 26.4Toronto-Dominion Bank 5.7Barrick Gold Corp. 5.6Suncor Energy Inc. 5.4Bank of Nova Scotia 5.1Canadian Natural Resources Ltd. 5.0

RBC DS U.S. Focus Fund 26.1America Movil S.A. de CV ADR 3.8Cash & Cash Equivalents 3.6Samsung Electronics Co. Ltd. 3.6Itau Unibanco Holding S.A. ADR 3.5Vale S.A. ADR 3.4

RBC DS International Focus Fund 21.7Rio Tinto Plc. 4.6Allianz SE 4.1Bank of China Ltd. 4.0Telefonica S.A. 3.6Bayerische Motoren Werke (BMW) AG 3.5

RBC Advisor Canadian Bond 17.0Canada Housing Trust No. 1 3.600% Jun 15 13 4.1Canada Housing Trust No. 1 4.100% Dec 15 18 3.6Canada Housing Trust No. 1 4.000% Jun 15 12 3.1Canada Housing Trust No. 1 2.200% Mar 15 14 2.9Canada Housing Trust No. 1 2.700% Dec 15 13 2.3

RBC Global Corporate Bond 8.0RBC Emerging Market Bond Fund 9.3Cash & Cash Equivalents 1.5United States Treasury 3.875% Aug 15 40 1.1United States Treasury Note 2.250% Nov 30 17 1.0Caterpillar Financial Services Ltd. 7.150% Feb 15 19 0.8

Cash & Cash Equivalents 0.8Total % of top holdings of underlying 100.0

mutual funds


RBC Guaranteed Investment Funds Notes to the Financial Statements December 31, 2010


RBC GUARANTEED INVESTMENT FUNDS Notes to the financial statementsDecember 31, 2010

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 GIF (new fund commenced operations on November 29, 2010)RBC Global Bond GIF RBC Balanced GIF RBC PH&N Monthly Income GIF (new fund commenced operations on November 29, 2010)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 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 Statements 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 January 2011, AcSB announced that the adoption by investment funds would be delayed to January 1, 2013. As a result, IFRS will be adopted by the Funds on January 1, 2013 and their first set of IFRS compliant financial statements will be for the year ending December 31, 2013.

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 as at December 31, 2010 and groups the underlying mutual funds by their nature. 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.

As of July 1, 2010, management fees and other administrative expenses charged to the Funds are subject to the Harmonized Sales Tax (HST) in Ontario, British Columbia, Nova Scotia, New Brunswick and Newfoundland and Labrador. This replaces the previous 5% federal GST charge.




Page 64 of 64

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 HST will result in an increase in the funds’ Management Expense Ratio (MER) that will impact the returns of the Funds in 2010 and thereafter.

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.

11. COMPARATIVE FIGURES

The Company restated for 2009, net income per unit for all Funds. The net income, previously divided by end of year outstanding units, was divided by weighted average number of units for the year. The reclassification had no effect on net income.

® Registered trademark of Royal Bank of Canada. RBC Insurance is a registered trademark of Royal Bank of Canada. Used under licence. VPS62706 (04/2011)

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

Documents

AUDITED FINANCIAL STATEMENTS - RBC Insurance · We have audited the accompanying financial statements of the RBC Guaranteed Investment Funds, which comprise the statement of net assets