RBC SPARQS™ Roc
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June 2017 RBC SPARQS™ RoC Global Investment Solutions FOR THE INFORMATION OF INVESTORS IN OUTSTANDING RBC SPARQS™ RoC SECURITIES ONLY Investment Objective: PORTFOLIO HOLDINGS – JUNE 2017 The RBC Stock PARticipating Quantitative model Dividend Securities (SPARQs)™ RoC are designed for investors Sector Symbol Company Weight Rank Yield (%) seeking long term growth of capital by holding a Materials WFT West Fraser Timber Co Ltd 4.30% 1 0.48 portfolio of large-cap Canadian equities that are THO Tahoe Resources Inc 3.76% 4 2.73 selected and transacted based on a proprietary 8- factor quantitative model. AEM Agnico Eagle Mines Ltd 3.76% 7 0.83 CCL.B CCL Industries Inc 4.49% 13 0.72 Tax Deferred: LUN Lundin Mining Corp 3.90% 20 1.60 No taxable event until maturity or disposition. No tax Industrials WSP WSP Global Inc 4.28% 5 2.98 as a result of portfolio changes or rebalancing. CAE CAE Inc 4.37% 17 1.47 Strategy Inception: WCN Waste Connections Inc 4.44% 31 0.77 August 5, 2011 Consumer Discretionary MG Magna International Inc 4.44% 2 2.45 LNR Linamar Corp 4.22% 3 0.79 Holdings: GIL Gildan Activewear Inc 3.76% 9 1.30 25 stocks DOL Dollarama Inc 4.02% 10 0.35 Strategy: QBR.B Quebecor Inc 3.76% 12 0.53 Quantitative: A rules based, systematic approach to CTC.A Canadian Tire Corp Ltd 3.85% 15 1.69 investing in large cap, dividend paying stocks. QSR Restaurant Brands International Inc 4.37% 30 1.26 Financials MFC Manulife Financial Corp 3.98% 21 3.51 Asset Class: NA National Bank of Canada 3.84% 22 4.35 Canadian equity TD Toronto-Dominion Bank/The 3.86% 23 3.73 Minimum Purchase: BMO Bank of Montreal 3.65% 25 3.97 $5,000.00 BNS Bank of Nova Scotia/The 3.94% 27 3.99 RRSPs, RRIFs, RESPs, RDSPs, DPSPs & TFSAS eligible CM Canadian Imperial Bank of Commerce 3.64% 41 4.81 Telecommunication Services RCI.B Rogers Communications Inc 3.83% 6 3.05 Utilities CU Canadian Utilities Ltd 3.76% 8 3.50 NPI Northland Power Inc 3.76% 11 4.63 ACO.X Atco Ltd/Canada 4.03% 14 2.57 * The indicated annual dividend yield of the Portfolio as of May 31, 2017 was 2.27%. Portfolio Additions Price Portfolio Deletions Price AEM Agnico Eagle Mines Ltd $66.42 ENF Enbridge Income Fund Holdings Inc $32.48 CU Canadian Utilities Ltd $41.07 FTS Fortis Inc/Canada $45.22 GIL Gildan Activewear Inc $40.10 IAG Industrial Alliance Insurance & $49.80 NPI Northland Power Inc $23.53 Financial Services Inc QBR.B Quebecor Inc $41.46 MX Methanex Corp $55.55 THO Tahoe Resources Inc $12.18 POW Power Corp of Canada $28.97 PWF Power Financial Corp $32.58 INDUSTRY ALLOCATION Materials 20.21% Industrials 13.09% Consumer Discretionary 28.42% Financials 22.92% Telecommunication Services 3.83% Utilities 11.54% Fixed Income 0.00% This fact sheet is qualified in its entirety by a pricing supplement, the base shelf prospectus dated December 20, 2013, the program prospectus supplement dated December 23, 2013, and the product prospectus supplement dated December 23, 2013 in respect of Equity, Unit and Debt Linked securities. March 2015 Global Investment Solutions RBC SPARQS SECURITY INVESTMENT METHODOLOGY The Portfolio: Review Portfolio on a monthly basis and adjust THE UNIVERSE Dividend yielding large-cap Canadian equities holdings and weights. TAX DEFERRED > Only the largest 100 qualifiers by market cap are eligible to S&P/TSX Composite Member > No taxable event until maturity or be bought, excluding income trusts and the Bank disposition. > The Portfolio is reviewed each month after ranks have been Must Pay a Dividend > No tax on portfolio trading and Excluding Trusts updated rebalancing. > Stocks are sold if they drop below the 50th position in terms Excluding RY of their rank > Stocks are sold if they are removed from the Index or suspend their dividend > Replacement buys are the best-ranked stocks not already held by the Portfolio Rank stocks based on an equally weighted combination of 8 THE MODEL > At the end of each calendar quarter the portfolio is factors that fall into 4 distinct investment themes rebalanced to equal weights ATTRACTIVE Low Price to Earnings x 1/8 VALUATIONS Low Price to Book Value x 1/8 SUSTAINABLE High Quarterly Earnings Growth x 1/8 GROWTH High Return On Equity x 1/8 POSITIVE High Earnings Surprise x 1/8 SENTIMENT High Estimate Revisions x 1/8 MARKET High 3-Month Price Change x 1/8 RECOGNITION High 6-Month Price Change x 1/8 = Total Score The S&P/TSX Composite Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and TSX Inc., and has been licensed for use by Royal Bank of Canada. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Royal Bank of Canada. TSX is a trademark of TSX Inc., and has been licensed for use by SPDJI and Royal Bank of Canada. The Debt Securities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P/TSX Composite Index. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the applicable pricing supplement under which you purchased RBC SPARQS™ RoC Securities. An investment in the Debt Securities involves risks. An investment in the Debt Securities is not the same as a direct investment in the securities that comprise the Portfolio and investors have no rights with respect to the securities in the Portfolio. The Debt Securities are considered to be “specified derivatives” under applicable Canadian securities laws. If you purchase Debt Securities, you will be exposed to fluctuations in interest rates and changes in the value of the Portfolio, among other factors. Price changes may be volatile and an investment in the Debt Securities may be considered to be speculative. Since the Debt Securities are not principal protected and the Principal amount will be at risk, you could lose substantially all of your investment. ®Registered trademark of Royal Bank of Canada .