Interim Financial Statements the Accompanying Interim Financial Statements Have Not Been Reviewed by the External Auditors of the Funds

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying financial statements have been prepared by RBC Global Asset Management Inc. (“RBC GAM”) as manager of the RBC GAM Investment Funds (the “Funds”) and approved by the Board of Directors of RBC GAM. We are responsible for the information contained within the financial statements.

We have maintained appropriate procedures and controls to ensure that timely and reliable financial information is produced. The financial statements have been prepared in compliance with International Financial Reporting Standards (“IFRS”) (and they include certain amounts that are based on estimates and judgments). The significant accounting policies, which we believe are appropriate for the Funds, are described in Note 3 to the financial statements.

Damon G. Williams, FSA, FCIA, CFA Heidi Johnston, CPA, CA Chief Executive Officer Chief Financial Officer RBC Global Asset Management Inc. RBC GAM Funds August 9, 2021

Unaudited Interim Financial Statements The accompanying interim financial statements have not been reviewed by the external auditors of the Funds. The external auditors will be auditing the annual financial statements of the Funds in accordance with Canadian generally accepted auditing standards. 2021 INTERIM FINANCIAL STATEMENTS

SCHEDULE OF INVESTMENT PORTFOLIO (unaudited) (in $000s) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

June 30, 2021

Fair % of Net Fair % of Net Holdings Security Cost Value Assets Holdings Security Cost Value Assets EQUITIES Financials (cont.) CANADIAN EQUITIES 17 787 Canadian Western Bank $ 479 $ 619 Communication Services 30 888 CI Financial Corp. 639 703 2 537 Cogeco Communications Inc. $ 265 $ 308 35 345 ECN Capital Corp. 262 329 954 662 Corus Entertainment Inc., Class B 3 898 6 072 2 274 Equitable Group Inc. 314 303 146 511 TELUS Corp. 3 612 4 073 3 232 Fairfax Financial Holdings Ltd. 1 849 1 757 7 775 10 453 2.1 34 333 Great-West Lifeco Inc. 1 030 1 264 Consumer Discretionary 1 837 goeasy Ltd. 234 291 78 590 Aritzia Inc. 1 923 2 914 60 114 Home Capital Group Inc. 1 767 2 236 5 951 BRP Inc. 267 577 43 998 iA Financial Corp Inc. 2 334 2 969 8 651 Canadian Tire Corp. Ltd., Class A 1 430 1 697 15 686 IGM Financial Inc. 706 686 8 055 Gildan Activewear Inc., Class A 348 368 30 153 Intact Financial Corp. 4 491 5 078 10 385 Linamar Corp. 497 807 489 100 Manulife Financial Corporation 9 006 11 934 50 915 Magna International Inc., Class A 2 778 5 844 47 462 National Bank of Canada 3 418 4 403 130 013 Sleep Country Canada 77 555 Power Corporation of Canada 3 082 3 039 Holdings Inc. 3 220 3 857 184 686 Royal Bank of Canada* 18 986 23 195 141 683 Spin Master Corp. 5 826 6 832 90 975 Sun Life Financial Inc. 3 809 5 815 108 663 Toronto-Dominion Bank 7 584 9 440 16 289 22 896 4.6 Consumer Staples 99 276 122 449 24.9 261 527 Alimentation Couche-Tard Inc. 10 584 11 913 Industrials 23 829 Empire Co. Ltd., Class A 731 932 8 640 Aecon Group Inc. 135 156 9 650 George Weston Ltd. 935 1 140 12 310 ATS Automation Tooling Systems 305 438 21 380 Loblaw Companies Ltd. 1 182 1 631 82 596 Canadian National Railway Co. 11 765 10 803 16 561 The North West Co. Inc. 558 583 8 059 Exchange Income Corp. 351 321 23 048 Finning International Inc. 524 748 13 990 16 199 3.3 286 130 Mullen Group Ltd. 2 685 3 823 Energy 8 291 NFI Group Inc. 249 234 364 155 ARC Resources Ltd. 2 780 3 842 8 372 Richelieu Hardware Ltd. 293 336 55 035 Cameco Corp. 1 435 1 308 40 571 Ritchie Bros. Auctioneers Inc. 2 144 2 982 231 233 Canadian Natural Resources Ltd. 8 187 10 405 231 471 Russel Metals Inc. 4 813 7 840 169 458 Cenovus Energy Inc. 1 638 2 010 70 762 Stantec Inc. 2 782 3 914 104 515 Crescent Point Energy Corp. 370 586 63 530 TFI International Inc. 3 915 7 190 329 213 Enbridge Inc. 12 533 16 339 25 235 Thomson Reuters Corp. 2 740 3 107 42 852 Enerplus Corp. 298 381 9 269 Toromont Industries Ltd. 689 1 001 106 469 Imperial Oil Ltd. 3 962 4 022 246 237 Transcontinental Inc., Class A 4 425 5 732 33 602 Keyera Corp. 1 138 1 119 6 242 Waste Connections Inc. 815 924 560 199 MEG Energy Corp. 2 542 5 025 13 800 WSP Global Inc. 1 553 1 997 63 451 NexGen Energy Ltd. 374 324 215 911 Suncor Energy Inc. 8 170 6 410 40 183 51 546 10.5 125 684 TC Energy Corp. 6 829 7 709 Information Technology 34 993 Tourmaline Oil Corp. 640 1 240 70 657 BlackBerry Ltd. 1 391 1 070 145 322 Whitecap Resources Inc. 749 895 22 393 Celestica Inc. 207 218 67 012 CGI Inc. 6 731 7 531 51 645 61 615 12.5 4 752 Constellation Software Inc. 5 086 8 921 Financials 25 276 Descartes Systems Group Inc. 1 817 2 167 87 771 Bank of Montreal 8 494 11 152 6 560 Enghouse Systems Ltd. 377 362 124 364 Bank of Nova Scotia 7 879 10 026 2 382 Open Text Corp. 141 150 188 376 Brookfield Asset Management Inc., 8 677 Shopify Inc., Class A 10 106 15 730 Class A 9 345 11 913 1 299 Brookfield Asset Management 25 856 36 149 7.3 Reinsurance Partners Ltd. 90 68 Materials 107 923 Canadian Imperial 6 638 Agnico Eagle Mines Ltd. 732 498 Bank of Commerce 13 478 15 229 5 460 Alcoa Corp. 249 249 147 723 B2Gold Corp. 793 768

The accompanying notes are an integral part of the financial statements. S C H E D U L O F I N V T M P R ( i n $ 0 s ) SCHEDULE OF INVESTMENT PORTFOLIO (unaudited) (in $000s) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

June 30, 2021

Fair % of Net Fair % of Net Holdings Security Cost Value Assets Holdings Security Cost Value Assets Materials (cont.) UNITED STATES EQUITIES 315 367 Barrick Gold Corp. $ 10 136 $ 8 086 Communication Services 256 038 Canfor Corp. 5 513 7 261 1 066 Alphabet Inc., Class A $ 2 404 $ 3 227 10 928 Cascades Inc. 151 167 9 584 AT&T Inc. 358 342 22 177 CCL Industries, Class B 1 557 1 514 12 936 Cars.com Inc. 226 230 28 359 Centerra Gold Inc. 348 267 254 Charter Communications Inc. 214 227 24 950 Dundee Precious Metals Inc. 218 187 8 076 Comcast Corp., Class A 522 571 27 027 Equinox Gold Corp. 405 233 2 165 Facebook Inc., Class A 768 933 169 563 First Quantum Minerals Ltd. 3 756 4 844 984 Pinterest Inc. 73 96 15 083 Franco-Nevada Corp. 2 735 2 713 5 634 Verizon Communications Inc. 405 391 37 354 Hudbay Minerals Inc. 256 308 4 970 6 017 1.2 11 454 Interfor Corp. 265 356 Consumer Discretionary 175 992 Intertape Polymer Group Inc. 3 986 5 058 261 Amazon.com, Inc. 1 053 1 113 177 783 Kinross Gold Corp. 1 536 1 397 1 050 Best Buy Co. Inc. 115 150 25 665 Labrador Iron Ore Royalty Corp. 941 1 205 5 479 Ford Motor Company 60 101 207 328 Lundin Mining Corp. 2 078 2 318 1 614 Genuine Parts Co. 259 253 12 315 Methanex Corp. 671 506 1 622 Group 1 Automotive Inc. 333 311 80 709 Nutrien Ltd. 5 161 6 062 17 364 L Brands Inc. 1 047 1 551 66 610 Teck Resources Ltd., Class B 2 001 1 902 484 Lennar Corp. 44 60 12 158 Torex Gold Resources Inc. 248 174 1 082 Lowe’s Companies 216 260 10 652 Turquoise Hill Resources Ltd. 257 223 3 157 Marriott Vacations Worldwide Corp. 649 623 18 435 Wesdome Gold Mines Ltd. 129 217 63 787 Modine Manufacturing Co. 1 047 1 312 34 497 West Fraser Timber Co. Ltd. 2 745 3 070 3 080 Sleep Number Corp. 473 420 64 123 Wheaton Precious Metals Corp. 3 669 3 504 7 133 Target Corporation 1 258 2 137 57 365 Yamana Gold Inc. 286 299 991 Tesla Inc. 536 835 50 822 53 386 10.8 11 122 The Aaron’s Co. Inc. 347 441 Real Estate 5 441 TJX Companies Inc. 432 455 16 507 Allied Properties Real Estate 27 096 Wolverine World Wide 1 176 1 130 Investment Trust 655 744 9 045 11 152 2.3 99 203 Altus Group Ltd. 4 381 5 699 Consumer Staples 7 476 Boardwalk Real Estate 19 125 Altria Group Inc. 1 012 1 130 Investment Trust 287 306 305 Estée Lauder Companies Inc., 43 098 Choice Properties Real Estate Class A 98 120 Investment Trust 582 616 2 451 Philip Morris International Inc. 257 301 26 012 Dream Industrial Real Estate 6 727 The Hershey Co. 1 398 1 452 Investment Trust 348 397 7 482 The Kraft Heinz Co. 322 378 5 782 Dream Office Real Estate 34 265 The Kroger Co. 1 550 1 627 Investment Trust 120 133 8 426 The Procter & Gamble Co. 1 369 1 409 5 336 FirstService Corp. 952 1 134 6 006 6 417 1.3 42 171 H&R Real Estate Investment Trust 603 675 Energy 42 147 RioCan Real Estate Investment Trust 760 931 2 965 ConocoPhillips 135 224 19 409 SmartCentres Real Estate 8 336 Exxon Mobil Corp. 399 652 Investment Trust 542 570 1 171 Phillips 66 Company 87 125 37 162 Summit Industrial Income 10 524 World Fuel Services Corp. 437 414 Real Estate Investment Trust 471 660 1 058 1 415 0.3 9 701 11 865 2.4 Financials Utilities 433 Ameriprise Financial Inc. 103 134 91 077 Algonquin Power & Utilities Corp. 1 939 1 682 12 111 Bank of America Corp. 551 619 24 795 AltaGas Ltd. 629 645 3 068 Berkshire Hathaway Inc., Class B 1 001 1 057 10 952 Atco Ltd., Class I, Non-Voting 538 481 331 BlackRock Inc. 285 359 10 575 Hydro One Ltd. 315 317 5 452 Capital One Financial Corp. 689 1 045 132 559 Northland Power Inc. 4 340 5 606 4 571 Chubb Ltd. 883 901 41 485 TransAlta Corp. 514 512 3 400 Cincinnati Financial Corp. 350 492 18 543 TransAlta Renewables Inc. 429 386 4 818 Citigroup Inc. 397 423 8 704 9 629 2.0 4 817 JPMorgan Chase & Co. 737 929 TOTAL CANADIAN EQUITIES 324 241 396 187 80.4 1 384 MetLife Inc. 82 103

June 30, 2021

Fair % of Net Fair % of Net Holdings Security Cost Value Assets Holdings Security Cost Value Assets Financials (cont.) Information Technology (cont.) 2 454 Morgan Stanley $ 252 $ 279 1 974 Applied Materials Inc. $ 247 $ 348 689 PNC Bank Corp. 114 163 936 Cadence Design Systems Inc. 139 159 1 463 Prudential Financial Inc. 141 186 4 476 Cognizant Technology 11 202 T. Rowe Price Group Inc. 2 107 2 749 Solutions Corp., Class A 435 384 596 The Goldman Sachs Group Inc. 262 280 3 231 Dell Technologies Inc., Class C 403 399 490 The Progressive Corp. 58 60 1 703 ExlService Holdings Inc. 199 224 4 658 Travelers Cos. Inc. 822 864 1 618 Fidelity National Information 1 844 U.S. Bancorp 105 130 Services Inc. 304 284 6 141 Wells Fargo & Company 342 345 1 810 Gartner Inc. 501 543 9 281 11 118 2.2 25 360 HP Inc. 902 949 Health Care 5 230 Insight Enterprises Inc. 617 648 3 239 Abbott Laboratories 473 465 6 839 Intel Corp. 406 476 1 216 Agilent Technologies Inc. 179 223 1 247 International Business Machines 208 227 227 Align Technology Inc. 141 172 4 315 j2 Global Inc. 530 736 828 Amgen Inc. 250 250 4 471 KLA Corp. 1 399 1 797 447 Anthem Inc. 188 212 298 Lam Research Corp. 244 240 288 Biogen Inc. 118 124 8 001 Microsoft Corp. 2 235 2 687 3 160 Bristol-Myers Squibb Co. 245 262 252 Nvidia Corp. 174 250 1 449 Cigna Corp. 421 426 1 630 Oracle Corporation 121 157 1 991 CVS Health Corp. 178 206 15 343 Paychex Inc. 1 829 2 041 1 036 Danaher Corp. 311 345 2 111 QUALCOMM Inc. 387 374 4 218 HCA Healthcare Inc. 748 1 081 9 260 Sykes Enterprises Inc. 524 616 282 Humana Inc. 159 155 4 365 SynOpsys Inc. 1 282 1 492 144 IDEXX Laboratories Inc. 81 113 15 703 Teradata Corp. 970 973 1 022 IQVIA Holdings Inc. 288 307 1 595 Texas Instruments Inc. 323 380 2 715 Johnson & Johnson 560 554 20 320 23 072 4.7 6 567 McKesson Corp. 1 179 1 557 Materials 1 051 Mettler-Toledo International Inc. 1 599 1 805 17 987 Dow Inc. 1 237 1 411 42 009 Pfizer Inc. 1 958 2 039 3 246 Freeport-McMoRan Inc. 83 149 842 Thermo Fisher Scientific Inc. 525 527 14 875 Kraton Corp. 498 595 3 853 Zoetis Inc. 829 890 24 583 SunCoke Energy Inc. 195 218 10 430 11 713 2.4 2 013 2 373 0.5 Industrials Real Estate 8 659 ABM Industries Inc. 539 476 23 020 CBRE Group Inc. 2 383 2 446 3 904 ArcBest Corp. 339 282 93 494 Franklin Street Properties Corp. 6 289 Caterpillar Inc. 1 564 1 697 Real Estate Investment Trust 704 610 1 690 Cintas Corp. 790 800 28 736 Kimco Realty Corp. 728 743 172 Deere & Co. 56 75 35 675 Retail Properties of America Inc., 11 218 Dycom Industries Inc. 968 1 036 Class A Real Estate Investment Trust 547 506 7 668 EMCOR Group Inc. 1 142 1 171 36 910 Urstadt Biddle Properties Inc., 3 638 Kforce Inc. 248 284 Class A Real Estate Investment Trust 813 887 393 L3Harris Technologies Inc. 96 105 21 644 Weyerhaeuser Company Ltd. 1 010 923 4 871 Matthews International Corp., Class A 251 217 6 185 6 115 1.2 721 Parker Hannifin Corp. 261 274 TOTAL UNITED STATES EQUITIES 78 194 89 161 18.1 28 219 Quanex Building Products Corp. 734 869 TOTAL EQUITIES 402 435 485 348 98.5 2 225 Trane Technologies Plc. 430 508 SHORT-TERM INVESTMENTS† 7 388 7 392 1.5 7 538 TrueBlue Inc. 216 263 TOTAL INVESTMENTS 409 823 492 740 100.0 1 170 Union Pacific Corp. 315 319 UNREALIZED GAIN ON FOREIGN 9 228 Veritiv Corp. 506 703 EXCHANGE CONTRACTS (SCHEDULE A) – 757 0.2 1 744 United Rentals Inc. 431 690 UNREALIZED LOSS ON FOREIGN 8 886 9 769 2.0 EXCHANGE CONTRACTS (SCHEDULE A) – (986) (0.2) Information Technology TOTAL PORTFOLIO $ 409 823 492 511 100.0 1 645 Accenture Plc., Class A 537 601 OTHER NET ASSETS ATTRIBUTABLE TO 848 Adobe Inc. 516 616 HOLDERS OF REDEEMABLE UNITS 26 – 32 223 Apple Inc. 4 888 5 471 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 492 537 100.0

June 30, 2021

SCHEDULE A Foreign Exchange Contracts Unrealized Contracts Maturity Date Gain Bought CAD 23 201 Sold USD 18 360 @ 1.2637 06-Jul-2021 $ 442 Bought CAD 22 582 Sold USD 17 964 @ 1.2571 14-Jul-2021 315 Bought CAD 860 Sold USD 694 @ 1.2400 03-Aug-2021 – $ 757

Unrealized Contracts Maturity Date Loss Bought CAD 130 Sold USD 108 @ 1.2088 06-Jul-2021 $ (3) Bought CAD 1 000 Sold USD 826 @ 1.2112 14-Jul-2021 (23) Bought USD 806 Sold CAD 1 000 @ 0.8055 14-Jul-2021 (1) Bought CAD 8 279 Sold USD 6 815 @ 1.2148 19-Aug-2021 (171) Bought CAD 1 000 Sold USD 831 @ 1.2033 19-Aug-2021 (30) Bought CAD 2 600 Sold USD 2 155 @ 1.2065 26-Aug-2021 (71) Bought CAD 8 745 Sold USD 7 250 @ 1.2063 26-Aug-2021 (243) Bought CAD 1 000 Sold USD 811 @ 1.2335 26-Aug-2021 (5) Bought CAD 13 380 Sold USD 11 106 @ 1.2048 07-Sep-2021 (387) Bought CAD 4 570 Sold USD 3 701 @ 1.2347 23-Sep-2021 (18) Bought CAD 5 402 Sold USD 4 385 @ 1.2318 28-Sep-2021 (34) $ (986) TOTAL FOREIGN EXCHANGE $ (229) All counterparties have a credit rating of at least A.

* Investment in related party (see note 8 in the generic notes). † Short-term investments, which may be made up of treasury bills, commercial paper, term deposits and discount notes, earn interest at rates ranging from 0.08% to 0.17% and mature on July 2, 2021.

The accompanying notes are an integral part of the financial statements. S C H E D U L O F I N V T M P R ( i n $ 0 s ) FINANCIAL STATEMENTS (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

Statements of Financial Position (unaudited) Statements of Comprehensive Income (unaudited) (in $000s except per unit amounts) (in $000s except per unit amounts)

June 30 December 31 For the periods ended June 30 (see note 2 in the generic notes) 2021 2020 (see note 2 in the generic notes) 2021 2020 ASSETS INCOME (see note 3 in the generic notes) Investments at fair value $ 492 740 $ 450 978 Dividends $ 5 978 $ 5 300 Cash 113 89 Interest for distribution purposes 2 16 Due from investment dealers – 43 Income from investment trusts 145 151 Subscriptions receivable 127 67 Derivative income 4 600 (5 214) Unrealized gain on foreign exchange contracts 757 2 293 Net realized gain (loss) on investments 25 035 (46 524) Dividends receivable, interest accrued Change in unrealized gain (loss) on investments 48 264 (45 399) and other assets 883 740 TOTAL NET GAIN (LOSS) ON TOTAL ASSETS 494 620 454 210 INVESTMENTS AND DERIVATIVES 84 024 (91 670) LIABILITIES Other income (loss) – 3 Redemptions payable 529 294 Securities lending revenue Unrealized loss on foreign exchange contracts 986 31 (see note 7 in the generic notes) 13 32 Accounts payable and accrued expenses 568 543 Net gain (loss) on foreign cash balances 66 84 TOTAL LIABILITIES EXCLUDING NET ASSETS TOTAL OTHER INCOME (LOSS) 79 119 ATTRIBUTABLE TO HOLDERS OF TOTAL INCOME (LOSS) 84 103 (91 551) REDEEMABLE UNITS 2 083 868 EXPENSES (see notes – Fund Specific Information) NET ASSETS ATTRIBUTABLE TO HOLDERS Management fees 2 783 2 621 OF REDEEMABLE UNITS (“NAV”) $ 492 537 $ 453 342 Administration fees 237 259 Independent Review Committee costs 1 1 Investments at cost $ 409 823 $ 418 816 GST/HST 301 288 Transaction costs 162 237 NAV Withholding tax 85 107 SERIES A $ 403 499 $ 373 216 TOTAL EXPENSES 3 569 3 513 ADVISOR SERIES $ – $ – INCREASE (DECREASE) IN NAV $ 80 534 $ (95 064) SERIES D $ 36 434 $ 33 029 INCREASE (DECREASE) IN NAV SERIES F $ 52 327 $ 47 043 SERIES A $ 66 040 $ (78 645) SERIES O $ 277 $ 54 ADVISOR SERIES $ – $ (184) NAV PER UNIT SERIES D $ 5 931 $ (6 939) SERIES A $ 24.37 $ 20.56 SERIES F $ 8 540 $ (9 298) ADVISOR SERIES $ – $ – SERIES O $ 23 $ 2 SERIES D $ 24.64 $ 20.76 INCREASE (DECREASE) IN NAV PER UNIT SERIES F $ 24.45 $ 20.57 SERIES A $ 3.84 $ (3.93) SERIES O $ 11.36 $ 9.52 ADVISOR SERIES $ – $ (4.19) SERIES D $ 3.90 $ (3.96) SERIES F $ 3.89 $ (3.82) SERIES O $ 1.72 $ 0.18

The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENTS (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

Statements of Cash Flow (unaudited) (in $000s)

For the periods ended June 30 (see note 2 in the generic notes) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Increase (decrease) in NAV $ 80 534 $ (95 064) ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – – Non-cash dividends (90) – Non-cash distributions from underlying funds – – Net realized loss (gain) on investments (25 035) 46 524 Change in unrealized loss (gain) on investments (48 264) 45 399 (Increase) decrease in accrued receivables (143) 211 Increase (decrease) in accrued payables 25 (192) (Increase) decrease in margin accounts – – Cost of investments purchased* (609 846) (621 366) Proceeds from sale and maturity of investments* 644 007 660 100 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 41 188 35 612 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of redeemable units* 4 958 5 354 Cash paid on redemption of redeemable units* (46 122) (41 066) Distributions paid to holders of redeemable units – – NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ (41 164) $ (35 712) Net increase (decrease) in cash for the period 24 (100) Cash (bank overdraft), beginning of period 89 114 CASH (BANK OVERDRAFT), END OF PERIOD $ 113 $ 14

Interest received (paid)† $ 2 $ 16 Income from investment trusts received (paid)†‡ $ 136 $ 174 Dividends received (paid)†‡ $ 5 669 $ 5 381

* Excludes in-kind transactions. † Classified as part of operating activities. ‡ Net of withholding taxes, if applicable.

The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENTS (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

Statements of Changes in NAV (unaudited) (in $000s)

For the periods ended June 30 Series A Advisor Series Series D Series F (see note 2 in the generic notes) 2021 2020 2021 2020 2021 2020 2021 2020 NAV AT BEGINNING OF PERIOD $ 373 216 $ 460 427 $ – $ 1 088 $ 33 029 $ 41 043 $ 47 043 $ 53 901 INCREASE (DECREASE) IN NAV 66 040 (78 645) – (184) 5 931 (6 939) 8 540 (9 298) Early redemption fees – – – – – – – – Proceeds from redeemable units issued 3 856 4 308 – 27 1 219 943 2 962 4 044 Reinvestments of distributions to holders of redeemable units – – – – – – – – Redemption of redeemable units (39 613) (35 425) – (154) (3 745) (4 332) (6 218) (4 936) NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS (35 757) (31 117) – (127) (2 526) (3 389) (3 256) (892) Distributions from net income – – – – – – – – Distributions from net gains – – – – – – – – Distributions from capital – – – – – – – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS – – – – – – – – NET INCREASE (DECREASE) IN NAV 30 283 (109 762) – (311) 3 405 (10 328) 5 284 (10 190) NAV AT END OF PERIOD $ 403 499 $ 350 665 $ – $ 777 $ 36 434 $ 30 715 $ 52 327 $ 43 711

For the periods ended June 30 Series O Total (see note 2 in the generic notes) 2021 2020 2021 2020 NAV AT BEGINNING OF PERIOD $ 54 $ 330 $ 453 342 $ 556 789 INCREASE (DECREASE) IN NAV 23 2 80 534 (95 064) Early redemption fees – – – – Proceeds from redeemable units issued 299 68 8 336 9 390 Reinvestments of distributions to holders of redeemable units – – – – Redemption of redeemable units (99) (316) (49 675) (45 163) NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 200 (248) (41 339) (35 773) Distributions from net income – – – – Distributions from net gains – – – – Distributions from capital – – – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS – – – – NET INCREASE (DECREASE) IN NAV 223 (246) 39 195 (130 837) NAV AT END OF PERIOD $ 277 $ 84 $ 492 537 $ 425 952

The accompanying notes are an integral part of these financial statements. NOTES TO FINANCIAL STATEMENTS – FUND SPECIFIC INFORMATION (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

June 30, 2021

Effective June 26, 2020, Advisor Series units were capped and Since historical correlation may not be representative of were re-designated as Series A units effective August 4, 2020. future correlation, actual results could differ from this sensitivity analysis and the difference could be material. General information (see note 1 in the generic notes) Fair value hierarchy ($000s except % amounts) The investment objective of the Fund is to provide long-term (see note 3 in the generic notes) returns consisting of capital growth and current income by investing primarily in equity securities of Canadian and The following is a summary of the inputs used as of U.S. companies. June 30, 2021 and December 31, 2020.

June 30, 2021 Level 1 Level 2 Level 3 Total Financial instrument risk and capital management Equities 485 348 – – 485 348 (see note 5 in the generic notes) Underlying funds – – – – Concentration risk (%) Fixed-income and debt securities – – – – The table below summarizes the Fund’s investment exposure Short-term investments – 7 392 – 7 392 (after consideration of derivative products, if any) as at: Derivatives – assets – 757 – 757 June 30 December 31 Derivatives – liabilities – (986) – (986) Investment mix 2021 2020 Total financial instruments 485 348 7 163 – 492 511 Financials 24.9 24.1 % of total portfolio 98.5 1.5 – 100.0 Foreign Equities 18.1 18.1 Energy 12.5 8.1 Materials 10.8 11.8 December 31, 2020 Level 1 Level 2 Level 3 Total Industrials 10.5 12.0 Equities 445 611 46 – 445 657 Information Technology 7.3 8.3 Underlying funds – – – – Consumer Discretionary 4.6 5.3 Fixed-income Consumer Staples 3.3 3.5 and debt securities – – – – Real Estate 2.4 1.8 Short-term investments – 5 321 – 5 321 Communication Services 2.1 2.6 Derivatives – assets – 2 293 – 2 293 Utilities 2.0 2.6 Derivatives – liabilities – (31) – (31) Health Care – 0.1 Total financial instruments 445 611 7 629 – 453 240 Cash/Other 1.5 1.7 % of total portfolio 98.3 1.7 – 100.0 Total 100.0 100.0 For the period ended June 30, 2021, there were transfers of $46 of financial instruments into Level 1 from Level 2. The Currency risk (% of NAV) securities transferred into Level 1 relate to the exchange Since the currency risk of the Fund has been hedged using of restricted-trading, discount-priced securities for listed, foreign exchange contracts, the Fund has minimal sensitivity actively traded equity positions. For the period ended to changes in foreign exchange rates. December 31, 2020, there were no transfers of financial Other price risk (% impact on NAV) instruments between Level 1, Level 2 and Level 3. In light of current market volatility related to COVID‑19, management has applied 10% for other price risk sensitivity.

The table below shows the impact of a 10% change in the broad-based index (noted below) on the Fund’s NAV, using a 36-month historical correlation of data of the Fund’s return and the index, with all other factors kept constant, as at:

June 30 December 31 2021 2020 S&P/TSX Capped Composite Total Return Index + or - 12.2 + or - 11.9

Please see the generic notes at the back of the financial statements. NOTES TO FINANCIAL STATEMENTS – FUND SPECIFIC INFORMATION (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

June 30, 2021

Management fees and administration fees For the periods ended June 30 (see note 2 in the generic notes) 2021 2020 (see note 8 in the generic notes) Advisor Series Management fees and administration fees of each series Opening units – 48 of the Fund are payable to RBC GAM and calculated at the Issued number of units – 2 following annual percentages, before GST/HST, of the daily Reinvested number of units – – NAV of each series of the Fund. Redeemed number of units – (8) Ending number of units – 42 Management fees Administration fees* Series D Series A 1.25% 0.10% Opening units 1 591 1 857 Advisor Series 1.25% 0.10% Issued number of units 54 51 Series D 1.00% 0.10% Reinvested number of units – – Series F 0.75% 0.10% Redeemed number of units (166) (227) Series O n/a† 0.02% Ending number of units 1 479 1 681 * Effective March 1, 2020, the administration fees for Series A units were reduced to 0.10% Series F from 0.15%. Opening units 2 287 2 462 † Series O unitholders pay a negotiated management fee directly to RBC GAM for investment-counselling services. Issued number of units 130 204 Reinvested number of units – – Investments by related parties Redeemed number of units (276) (254) ($000s except unit amounts) Ending number of units 2 141 2 412 Royal Bank of Canada, or one of its subsidiaries, held the Series O Opening units 6 33 following investments in the Fund as at: Issued number of units 27 9 June 30 December 31 Reinvested number of units – – 2021 2020 Redeemed number of units (9) (32) Units held Ending number of units 24 10 Series O 105 105 Value of all units 1 1 Transaction costs ($000s except %) Transaction costs, including brokerage commissions, in Taxes ($000s) (see note 6 in the generic notes) consideration of portfolio transactions for the periods ended: The non-capital and capital losses as at December 31, 2020 for the Fund were approximately: June 30 June 30 2021 2020 $ % $ % Capital losses 115 459 Total transaction costs 162 100 237 100 Non-capital losses – Related-party brokerage commissions* – – 2 1 Commission arrangements† – – – – Redeemable units (000s) * See note 8 in the generic notes. There is no limitation on the number of units available for † Commission arrangements are part of commission amounts paid to dealers. The Fund uses commission arrangements (formerly known as “soft dollars”) for research and/or order execution issue. Units are purchased and redeemed at the NAV per unit. goods and services. For the periods ended June 30 (see note 2 in the generic notes) 2021 2020 Series A Opening units 18 149 21 033 Issued number of units 170 243 Reinvested number of units – – Redeemed number of units (1 763) (1 871) Ending number of units 16 556 19 405

Please see the generic notes at the back of the financial statements. NOTES TO FINANCIAL STATEMENTS – FUND SPECIFIC INFORMATION (unaudited) RBC O’SHAUGHNESSY CANADIAN EQUITY FUND

June 30, 2021

Securities lending revenue ($000s except %) (see note 7 in the generic notes) Fair value of securities on loan and collateral received as at:

June 30 June 30 2021 2020 Fair value of securities loaned 17 808 70 485 Fair value of collateral received 18 164 71 895

The table below provides a reconciliation of the gross revenue generated from the securities lending transactions of the Fund to the securities lending revenue disclosed in the Statements of Comprehensive Income.

June 30 June 30 2021 2020 $ % $ % Gross revenue 17 100 46 100 RBC IS (paid) (4) (25) (12) (25) Tax withheld – (1) (2) (5) Fund revenue 13 74 32 70

Offsetting financial assets and liabilities ($000s) (see note 3 in the generic notes) The following is a summary of the amounts for which the Fund has a legal right to offset in the event of default, insolvency or bankruptcy. “Net amount” represents the impact to the Fund if all set-off rights were to be exercised.

June 30, 2021 Assets Liabilities Gross amounts – assets (liabilities) 756 (983) Amounts set-off in the Statements of Financial Position – – Net amounts presented in the Statements of Financial Position 756 (983) Related amounts not set-off (27) 27 Collateral (received) pledged – – Net amount 729 (956)

December 31, 2020 Assets Liabilities Gross amounts – assets (liabilities) 2 293 (31) Amounts set-off in the Statements of Financial Position – – Net amounts presented in the Statements of Financial Position 2 293 (31) Related amounts not set-off (31) 31 Collateral (received) pledged – – Net amount 2 262 –

Please see the generic notes at the back of the financial statements. GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

1. The Funds Series I units have no sales charges, have lower fees than The Funds (“Fund” or “Funds”) are open-ended mutual Series F units, Series FT5 units and Series FT8 units and fund trusts governed by the laws of the Province of Ontario are only available to investors who invest and maintain or British Columbia. RBC GAM is the manager and portfolio the required minimum balance and who have accounts manager of the Funds and its head office is located at with dealers who have signed a fee-based agreement with 155 Wellington Street West, 22nd Floor, Toronto, Ontario. RBC GAM. RBC GAM is also the trustee of those Funds governed by the Series N units are only available to related funds. laws of the Province of Ontario. These financial statements were approved for issuance by the Board of Directors of Series O units are only available to large private or RBC GAM on August 9, 2021. institutional investors or dealers. No management fees are payable by the Funds in respect to Series O units. The Funds may issue an unlimited number of units in some Unitholders pay a negotiated fee directly to RBC GAM for or all of Series A, Advisor Series, Advisor T5 Series, Series T5, investment-counselling services. Series T8, Series H, Series D, Series DZ, Series F, Series FT5, Series FT8, Series I, Series N and Series O. 2. Financial period

Advisor Series units and Advisor T5 Series units were The information provided in these financial statements and available to all investors through authorized dealers with an notes thereto is as at June 30, 2021 and December 31, 2020, as initial sales charge or low-load sales charge option. Effective applicable, and for the six-month periods ended June 30, 2021 August 4, 2020, such Advisor Series and Advisor T5 Series and June 30, 2020, as applicable, except for Funds or series were re-designated as Series A and Series T5, respectively. established during either period, in which case the information For certain of the Funds, Advisor Series units and Advisor T5 for the Fund, or series, is provided for the period from the start Series units are available with a deferred sales charge option. date as described in the Notes to Financial Statements – Fund Under the initial sales charge option, investors pay a sales Specific Information of the Fund. charge ranging from 0% to 5% of the amount invested. 3. Summary of significant accounting policies Under the deferred sales charge or low-load sales charge These financial statements have been prepared in accordance option, sales charges may be applicable, as described in the with International Financial Reporting Standards (“IFRS”) Simplified Prospectus. and in accordance with International Accounting Standard Series T5 units and Series T8 units have no sales charges and (“IAS”) 34 – Interim Financial Reporting, as issued by the are available to all investors through authorized dealers. International Accounting Standards Board (“IASB”). The significant accounting policies of the Funds are as follows: Series H units have no sales charges, have lower fees than Series A units and are only available to investors who invest Classification and Measurement of Financial Assets, and maintain the required minimum balance through Liabilities and Derivatives Each of the Funds classifies authorized dealers. its investment portfolio based on the business model for managing the portfolio and the contractual cash flow Series D units and Series DZ units have no sales charges characteristics. The investment portfolio of financial assets and have lower fees than Series A units. Series D units and and liabilities is managed and performance is evaluated on Series DZ units may be available to investors who have a fair value basis. The contractual cash flows of the Funds’ accounts with RBC Direct Investing Inc., Phillips, Hager & debt securities that are solely principal and interest are North Investment Funds Ltd. (“PH&N IF”) or certain other neither held for the purpose of collecting contractual cash authorized dealers (primarily discount brokers). flows nor held both for collecting contractual cash flows Series F units, Series FT5 units and Series FT8 units have no and for sale. The collection of contractual cash flows is only sales charges and have lower fees than Series A units. Series F incidental to achieving the Funds’ business model objectives. units, Series FT5 units and Series FT8 units are only available Consequently, all investments are measured at fair value to investors who have fee-based accounts with their dealer. through profit and loss (“FVTPL”). Derivative assets and liabilities are also measured at FVTPL. GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

The Funds’ obligation for net assets attributable to holders The Funds do not consolidate their investment in underlying of redeemable units represents a financial liability and is funds but account for these investments at fair value. The measured at the redemption amount, which approximates manager has determined that the Funds are investment fair value as of the reporting date. All other financial assets entities in accordance with IFRS 10 Consolidated Financial and liabilities are measured at amortized cost. Statements, since the Funds meet the following criteria:

Offsetting Financial Assets and Liabilities In the normal (i) The Funds obtain capital from one or more investors for course of business, the Funds may enter into various the purpose of providing those investors with investment International Swaps and Derivatives Association master management services, netting agreements or other similar arrangements with (ii) The Funds commit to their investors that their business certain counterparties that allow for related amounts to purpose is to invest funds solely for the returns from be offset in certain circumstances, such as bankruptcy or capital appreciation, investment income or both, and termination of contracts. Offsetting information, where applicable, is presented in the Notes to Financial (iii) The Funds measure and evaluate the performance of Statements – Fund Specific Information. substantially all of their investments on a fair value basis.

Classification of Redeemable Units The Funds have multiple Therefore, the fair value of investments in the underlying features across the different series of the Funds. Consequently, funds is included in the Schedule of Investment Portfolio the Funds’ outstanding redeemable units are classified as and included in “Investments at fair value” in the Funds’ financial liabilities in accordance with the requirements of Statements of Financial Position. The change in fair value IAS 32 Financial Instruments: Presentation. of the investment held in the underlying funds is included in “Change in unrealized gain (loss) on investments” in the Unconsolidated Structured Entities The Funds may invest in Statements of Comprehensive Income. other Funds and exchange-traded funds (“ETFs”) managed by the manager or an affiliate of the manager (“sponsored Certain Funds may invest in mortgage-related or other funds”) and may invest in other funds and ETFs managed asset-backed securities. These securities include commercial by unaffiliated entities (“unsponsored funds”); collectively, mortgage-backed securities, asset-backed securities, “underlying funds.” The underlying funds are determined to collateralized debt obligations and other securities that be unconsolidated structured entities, as decision making directly or indirectly represent a participation in, or are in the underlying fund is not governed by the voting rights securitized by and payable from, mortgage loans on real or other similar rights held by the Fund. The investments property. Mortgage-related securities are created from in underlying funds are subject to the terms and conditions pools of residential or commercial mortgage loans while of the offering documents of the respective underlying asset-backed securities are created from many types of funds and are susceptible to market price risk arising from assets, including auto loans, credit card receivables, home uncertainties about future values of those underlying funds. equity loans and student loans. The Funds account for these The underlying funds’ objectives are generally to achieve investments at fair value. The fair value of such securities, as long-term capital appreciation and/or current income by disclosed in the Schedule of Investment Portfolio, represents investing in a portfolio of securities and other funds in line the maximum exposure to losses at that date. with each of their documented investment strategies. The Determination of Fair Value The fair value of a financial underlying funds apply various investment strategies to instrument is the amount at which the financial instrument accomplish their respective investment objectives. could be exchanged in an arm’s-length transaction between The underlying funds finance their operations by issuing knowledgeable and willing parties under no compulsion to redeemable units which are puttable at the unitholder’s act. In determining fair value, a three-tier hierarchy based on option, and entitle the unitholder to a proportional stake in inputs is used to value the Funds’ financial instruments. the respective underlying funds’ NAV. The hierarchy of inputs is summarized below: GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

Level 1 – quoted prices (unadjusted) in active markets for Options purchased and options written (sold) are recorded identical assets or liabilities; as investments in the Statements of Financial Position. These investments are reported at fair value in the Statements of Level 2 – inputs other than quoted prices included in Financial Position, and unrealized gain or loss at the close Level 1 that are observable for the asset or liability, either of business on each valuation date is recorded in “Change in directly (i.e., as prices) or indirectly (i.e., derived from prices), unrealized gain (loss) on investments” in the Statements of including broker quotes, vendor prices and vendor fair value Comprehensive Income. factors; and When an option is exercised and the underlying securities Level 3 – inputs for the asset or liability that are not based on are acquired or delivered, the acquisition cost or sale observable market data (unobservable inputs). proceeds are adjusted by the amount of the premium. Changes in valuation methods may result in transfers into or When an option is closed the Fund will realize a gain or out of an investment’s assigned level. loss equal to the difference between the premium and the cost to close the position. When an option expires, gains or The three-tier hierarchy of investments and derivatives is losses are realized equivalent to the amount of premiums included in Notes to Financial Statements – Fund Specific received or paid, respectively. The net realized gains (losses) Information. on written and purchased options are included in the Investments and derivatives are recorded at fair value, which Statements of Comprehensive Income in “Net realized gain is determined as follows: (loss) on investments.”

Equities – Common shares and preferred shares are valued at Warrants – Warrants are valued using a recognized option the closing price recorded by the security exchange on which pricing model, which includes factors such as the terms of the security is principally traded. In circumstances where the the warrant, time value of money and volatility inputs that are closing price is not within the bid-ask spread, management will significant to such valuation. determine the points within the bid-ask spread that are most Forward Contracts – Forward contracts are valued at the gain or representative of the fair value. loss that would arise as a result of closing the position at the Fixed-Income and Debt Securities – Bonds, mortgage-backed valuation date. The receivable/payable on forward contracts securities, loans, debentures and other debt securities are is recorded separately in the Statements of Financial Position. valued at the mid price quoted by major dealers or independent Any unrealized gain or loss at the close of business on each valuation date is recorded as “Change in unrealized gain (loss) pricing vendors in such securities. on investments” and realized gain or loss on foreign exchange NHA-approved mortgages are valued at an amount, which contracts is included in “Derivative income” in the Statements produces a yield equivalent to the prevailing rate of return on of Comprehensive Income. mortgages of similar type and term. Total Return Swaps – A total return swap is an agreement by Short-Term Investments – Short-term investments are valued at which one party makes payments based on a set rate, either cost plus accrued interest, which approximates fair value. fixed or variable, while the other party makes payments based Options – Options give the purchaser the right, but not the on the return of an underlying asset, which includes both the obligation, to buy (call) or sell (put) an underlying security income it generates and any capital gains. Total return swap or financial instrument at an agreed exercise or strike price contracts are marked to market daily based upon quotations during the specified period or on a specified date. from the market makers and the change in value, if any, is recorded in “Change in unrealized gain (loss) on investments” Listed options are valued at the closing price on the recognized in the Statements of Comprehensive Income. When the swap exchange on which the option is traded. In circumstances contract is terminated early, the Fund records a realized where the closing price is not within the bid-ask spread, gain or loss equal to the difference between the current net management will determine the points within the present value and the executed net present value in “Derivative bid-ask spread that are most representative of the fair value. income” in the Statements of Comprehensive Income. GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

Unrealized gains and losses are recorded as “Receivable on to determine the fair value of foreign securities traded in open swap contracts” or “Payable on open swap contracts” countries outside of North America daily to avoid stale prices in the Statements of Financial Position, as applicable. The and to take into account, among other things, any significant risks of total return swap contracts include changes in market events occurring after the close of a foreign market. conditions and the possible inability of the counterparty to Management also has procedures where the Funds primarily fulfill its obligations under the agreement. employ a market-based approach, which may use related Futures Contracts – Futures contracts entered into by the or comparable assets or liabilities, NAV per unit (for Funds are financial agreements to purchase or sell a financial exchange-traded funds), recent transactions, market instrument at a contracted price on a specified future date. multiples, book values and other relevant information for However, the Funds do not intend to purchase or sell the the investment to determine its fair value. The Funds may financial instrument on the settlement date; rather, they also use an income-based valuation approach in which intend to close out each futures contract before settlement the anticipated future cash flows of the investment are by entering into equal, but offsetting, futures contracts. discounted to calculate fair value. Discounts may also be Futures contracts are valued at the gain or loss that would applied due to the nature or duration of any restrictions arise as a result of closing the position at the valuation date. on the disposition of the investments, but only if they arise Any gain or loss at the close of business on each valuation as a feature of the instrument itself. Due to the inherent date is recorded as “Derivative income” in the Statements uncertainty of valuations of such investments, the fair values of Comprehensive Income. The receivable/payable on may differ significantly from the values that would have been futures contracts is recorded separately in the Statements of used had an active market existed. Financial Position. All security valuation techniques are periodically reviewed Credit Default Swap Contracts – Credit default swaps are by the Valuation Committee (“VC”) of the manager and are agreements between a protection buyer and protection approved by the manager. The VC provides oversight of the seller. The protection buyer pays a periodic fee in exchange Funds’ valuation policies and procedures. for a payment by the protection seller contingent on the Cash Cash is comprised of cash and deposits with banks and occurrence of a credit event, such as a default, bankruptcy is recorded at amortized cost. The carrying amount of cash or restructuring, with respect to a referenced entity. approximates its fair value because it is short term in nature. Periodic fees paid or received are recorded as “Interest for distribution purposes” in the Statements of Comprehensive Margin Margin accounts represent margin deposits held with Income. When the contract is terminated or expires, the brokers in respect of derivatives contracts. payments received or paid are recorded as “Derivative Functional Currency The Funds, with the exceptions below, income” in the Statements of Comprehensive Income. have their subscriptions, redemptions and performance Credit default swap contracts are valued based on quotations denominated in Canadian dollars and, consequently, the from independent sources. Canadian dollar is the functional currency for the Funds. Underlying Funds – Underlying funds that are not exchange- Phillips, Hager & North $U.S. Money Market Fund, traded funds are valued at their respective NAV per unit RBC $U.S. Money Market Fund, RBC Premium $U.S. Money from fund companies on the relevant valuation dates and Market Fund, RBC $U.S. Short-Term Government Bond Fund, underlying funds that are exchange-traded funds are valued RBC $U.S. Short-Term Corporate Bond Fund, RBC $U.S. at market close on the relevant valuation dates. Global Bond Fund, RBC $U.S. Investment Grade Corporate Bond Fund, RBC $U.S. High Yield Bond Fund, RBC $U.S. Fair Valuation of Investments – The Funds have procedures Strategic Income Bond Fund, BlueBay $U.S. Global Investment to determine the fair value of securities and other financial Grade Corporate Bond Fund (Canada), BlueBay $U.S. Global instruments for which market prices are not readily available High Yield Bond Fund (Canada), BlueBay Emerging Markets or which may not be reliably priced. Procedures are in place Bond Fund (Canada), BlueBay Emerging Markets Local Currency Bond Fund (Canada), BlueBay Emerging Markets Corporate Bond Fund, RBC $U.S. Core Bond Pool, RBC $U.S. Core Plus Bond Pool, RBC U.S. Monthly Income Fund GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021 and RBC $U.S. Global Balanced Portfolio (collectively, the Increase (Decrease) in NAV per Unit Increase (decrease) in “USD Funds”) have their subscriptions, redemptions and NAV per unit in the Statements of Comprehensive Income performance denominated in U.S. dollars and, consequently, represents the increase (decrease) in net assets attributable to the U.S. dollar is the functional currency for these Funds. holders of redeemable units by series, divided by the average units outstanding per series during the period. Foreign Exchange The value of investments and other assets and liabilities in foreign currencies is translated Early Redemption Fees Early redemption fees (short-term into Canadian dollars (U.S. dollars in the case of the USD trading fees) are paid directly to a Fund and are designed Funds) at the rate of exchange on each valuation date. to deter excessive trading and its associated costs. With the Gains/losses on foreign cash balances are included in “Net exception of money market funds, a Fund may apply a fee gain (loss) on foreign cash balances” in the Statements of of 2% of the current value of units if the unitholder redeems Comprehensive Income. Purchases and sales of investments, or switches out units within seven days of purchasing income and expenses are translated at the rate of exchange or previously switching into a Fund. These amounts are prevailing on the respective dates of such transactions. included in the Statements of Changes in NAV. Realized foreign exchange gains/losses on spot and forward Foreign Currencies The following is a list of abbreviations currency contracts are included in “Derivative income” in the used in the Schedule of Investment Portfolio: Statements of Comprehensive Income. AUD – Australian dollar KZT – Kazakhstan tenge Valuation of Series A different NAV is calculated for each BRL – Brazilian real MXN – Mexican peso series of units of a Fund. The NAV of a particular series of CAD – Canadian dollar MYR – Malaysian ringgit units is computed by calculating the value of the series’ CHF – Swiss franc NOK – Norwegian krone CLP – Chilean peso NZD – New Zealand dollar proportionate share of the assets and liabilities of the Fund CNH/CNY – Chinese renminbi PEN – Peruvian nuevo sol common to all series less the liabilities of the Fund attributable COP – Colombian peso PHP – Philippine peso only to that series. Expenses directly attributable to a series CZK – Czech koruna PLN – Polish zloty DKK – Danish krone RON – Romanian leu are charged to that series. Other expenses are allocated DOP – Dominican peso RUB – Russian ruble proportionately to each series based upon the relative NAV of EUR – Euro SEK – Swedish krona each series. Expenses are accrued daily. GBP – Pound sterling SGD – Singapore dollar HKD – Hong Kong dollar THB – Thailand baht Investment Transactions Investment transactions are HUF – Hungarian forint TRY – Turkish new lira accounted for as of the trade date. Transaction costs, such as IDR – Indonesian rupiah TWD – New Taiwan dollar ILS – Israeli new shekel USD – United States dollar brokerage commissions, incurred by the Funds are recorded INR – Indian rupee UYU – Uruguay peso in the Statements of Comprehensive Income for the period. JPY – Japanese yen ZAR – South African rand The unrealized gain and loss on investments is the difference KRW – South Korean won between fair value and average cost for the period. The basis 4. Critical accounting judgments and estimates of determining the cost of portfolio assets, and realized and unrealized gains and losses on investments, is average The preparation of financial statements requires the use cost which does not include amortization of premiums or of judgment in applying the Funds’ accounting policies discounts on fixed-income and debt securities with the and making estimates and assumptions about the future. exception of zero coupon bonds. The following discusses the most significant accounting judgments and estimates that management has made in Income Recognition Dividend income is recognized on the preparing the financial statements. ex-dividend date and interest for distribution purposes is coupon interest recognized on an accrual basis and/or Fair value measurement of securities not quoted in an active market imputed interest on zero coupon bonds. “Income from The Funds have established policies and control procedures investment trusts” includes income from underlying funds that are intended to ensure these estimates are well and other trusts. Any premiums paid or discounts received controlled, independently reviewed and consistently applied on the purchase of zero coupon bonds are amortized. Interest from period to period. The estimates of the value of the payments made by the Funds to counterparties on the Funds’ assets and liabilities are believed to be appropriate as payable leg of derivative contracts are recorded as “Interest at the reporting date. expense” in the Statements of Comprehensive Income. GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

The Funds may hold financial instruments that are not quoted Credit risk in active markets. Note 3 discusses the policies used by Credit risk is the risk that a loss could arise from a security management for the estimates used in determining fair value. issuer or counterparty not being able to meet its financial obligations. The carrying amount of investments and other 5. Financial instrument risk and capital management assets represents the maximum credit risk exposure as RBC GAM is responsible for managing each Fund’s disclosed in a Fund’s Statements of Financial Position. The capital, which is its NAV and consists primarily of Funds measure credit risk and expected credit losses using its financial instruments. probability of default, exposure at default and loss given A Fund’s investment activities expose it to a variety of default. Management considers both historical analysis and financial risks. RBC GAM seeks to minimize potential adverse forward-looking information in determining any expected effects of these risks on a Fund’s performance by employing credit loss. All other receivables, amounts due from brokers, professional, experienced portfolio managers, daily monitoring cash and short-term deposits are held with counterparties of the Fund’s holdings and market events, diversifying its with a credit rating of AA/Aa or higher. Management investment portfolio within the constraints of its investment considers the probability of default to be close to zero as objectives and, in some cases, periodically hedging certain risk the counterparties have a strong capacity to meet their exposures through the use of derivatives. To assist in managing contractual obligations in the near term. As a result, no risks, RBC GAM also uses internal guidelines, maintains a loss allowance has been recognized based on 12-month governance structure that oversees each Fund’s investment expected credit losses as any such impairment would be activities and monitors compliance with the Fund’s investment wholly insignificant to the Funds. The fair value of fixed- strategies, internal guidelines and securities regulations. income and debt securities includes a consideration of the creditworthiness of the debt issuer. Credit risk exposure The financial markets experienced significant volatility to over-the-counter derivative instruments is based on a as a result of the developing COVID‑19 global pandemic. Fund’s unrealized gain on the contractual obligations with The effects of the pandemic and its impact on individual the counterparty. Credit risk exposure is mitigated for those companies, nations and the market in general can not Funds participating in a securities lending program (see necessarily be foreseen at the present time and may have an note 7). RBC GAM monitors each Fund’s credit exposure and adverse impact on the financial performance of the Funds. The counterparty ratings daily. impact of the pandemic may be short-term or may last for an extended period of time. Concentration risk Concentration risk arises as a result of net financial Financial instrument risk, as applicable to a Fund, is disclosed instrument exposures to the same category, such as in its Notes to Financial Statements – Fund Specific Information. geographical region, asset type, industry sector or market These risks include a Fund’s direct risks and pro rata exposure to segment. Financial instruments in the same category have the risks of underlying funds, as applicable. similar characteristics and may be affected similarly by Liquidity risk changes in economic or other conditions. Liquidity risk is the possibility that investments in a Fund Interest rate risk cannot be readily converted into cash when required. A Fund Interest rate risk is the risk that the fair value of a Fund’s is exposed to daily cash redemptions of redeemable units. interest-bearing investments will fluctuate due to changes Liquidity risk is managed by investing the majority of a Fund’s in market interest rates. The value of fixed-income and debt assets in investments that are traded in an active market and securities, such as bonds, debentures, mortgages or other that can be readily disposed. In accordance with securities income-producing securities, is affected by interest rates. regulations, a Fund must maintain at least 90% of its assets in Generally, the value of these securities increases if interest liquid investments. In addition, a Fund aims to retain sufficient rates fall and decreases if interest rates rise. cash and cash equivalent positions to maintain liquidity, and has the ability to borrow up to 5% of its NAV for the purpose of funding redemptions. All non-derivative financial liabilities, other than redeemable units, are due within 90 days. GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

Currency risk 7. Securities lending revenue Currency risk is the risk that the value of investments Certain of the Funds lend portfolio securities from time denominated in currencies, other than the functional to time in order to earn additional income. Income currency of a Fund, will fluctuate due to changes in foreign from securities lending is included in the Statements of exchange rates. The value of investments denominated in a Comprehensive Income of a Fund. Each such Fund will have currency other than the functional currency is affected by entered into a securities lending program with its custodian, changes in the value of the functional currency in relation RBC Investor Services Trust (“RBC IS”). The aggregate market to the value of the currency in which the investment is value of all securities loaned by a Fund cannot exceed 50% denominated. When the value of the functional currency falls of the assets of a Fund. The Fund receives collateral, with an in relation to foreign currencies, then the value of the foreign approved credit rating of at least A, of at least 102% of the investments rises. When the value of the functional currency value of securities on loan. The Fund is indemnified by RBC IS rises, the value of the foreign investments falls. The currency for any collateral credit or market loss. As such, the credit risk risk as disclosed in the Fund Specific Information in the associated with securities lending is considered minimal. Notes to Financial Statements represents the monetary and 8. Administrative and other non-monetary foreign exchange exposure of a Fund. related-party transactions Other price risk Manager and Portfolio Manager Other price risk is the risk that the value of financial RBC GAM is an indirect wholly owned subsidiary of instruments will fluctuate as a result of changes in market Royal Bank of Canada (“Royal Bank”). RBC GAM is the prices (other than those arising from interest rate or currency manager and portfolio manager of the Funds. RBC GAM is risk), whether caused by factors specific to an individual responsible for the Funds’ day-to-day operations, provides investment, its issuer, or all factors affecting all instruments investment advice and portfolio management services to the traded in a market or market segment. Funds and appoints distributors for the Funds. RBC GAM is paid a management fee by the Funds as compensation 6. Taxes for its services. The management fee is calculated and The Funds qualify as open-ended mutual fund trusts or unit accrued daily as a percentage of the NAV of each series trusts under the Income Tax Act (Canada). In general, the of units of the Funds. No management fees are paid by Funds are subject to income tax; however, no income tax the Funds with respect to Series O units. Unitholders of is payable on net income and/or net realized capital gains Series O units pay a negotiated fee directly to RBC GAM for which are distributed to unitholders. Since the Funds do investment-counselling services. not record income taxes, the tax benefit of capital and non-capital losses has not been reflected in the Statements The Funds pay a fixed administration fee to RBC GAM. The of Financial Position as a deferred income tax asset. In fixed administration fee is calculated and accrued daily as a addition, for mutual fund trusts, income taxes payable on percentage of the NAV of each series of units of the Funds. net realized capital gains are refundable on a formula basis RBC GAM in turn pays certain operating expenses of the when units of the Funds are redeemed. It is the intention of Funds. These expenses include regulatory filing fees and the Funds to pay out all net income and realized capital gains other day-to-day operating expenses including, but not each year so that the Funds will not be subject to income limited to, recordkeeping, accounting and fund valuation taxes. Accordingly, no provision for income taxes is recorded. costs, custody fees, audit and legal fees and the costs of preparing and distributing annual and interim reports, Capital losses are available to be carried forward indefinitely prospectuses, statements and investor communications. and applied against future capital gains. Non-capital losses may be carried forward to reduce future taxable income for Notwithstanding the fixed administration fee, the Funds up to 20 years. also pay certain operating expenses directly, including the costs related to the Independent Review Committee of the Funds, and the cost of any new government or regulatory requirements introduced and any borrowing costs (collectively, “other fund costs”), and taxes (including, but GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021 not limited to, GST/HST). Effective January 1, 2020, RBC Sub-Advisors GAM, not the Funds, is responsible for the costs related to RBC Global Asset Management (U.S.) Inc. is the sub-advisor for: annual fees, meeting fees and reimbursement for expenses to RBC $U.S. Short-Term Government Bond Fund members of the Independent Review Committee. The Funds RBC $U.S. Short-Term Corporate Bond Fund will continue to be responsible for paying any Independent (for the underlying fund) Review Committee costs that are not related to annual fees, RBC Bond Fund (for a portion of the Fund) meeting fees and reimbursement for expenses to members RBC $U.S. Investment Grade Corporate Bond Fund of the Independent Review Committee. Other fund costs RBC Global Corporate Bond Fund (for a portion of the Fund) are allocated proportionately to each series based upon the RBC U.S. Monthly Income Fund (for a portion of the Fund) relative NAV of each series. RBC GAM may, in some years RBC U.S. Mid-Cap Growth Equity Fund and in certain cases, absorb a portion of operating expenses. RBC U.S. Mid-Cap Growth Equity Currency Neutral Fund The decision to absorb the operating expenses is reviewed RBC U.S. Mid-Cap Value Equity Fund annually and determined at the discretion of RBC GAM, RBC U.S. Small-Cap Core Equity Fund without notice to unitholders. RBC U.S. Small-Cap Value Equity Fund Certain Funds may invest in units of other Funds managed Phillips, Hager & North U.S. Multi-Style All-Cap Equity Fund by RBC GAM or its affiliates (“underlying funds”). A Fund will RBC Global Asset Management (UK) Limited is the not invest in units of an underlying fund if the Fund would be sub-advisor for: required to pay any management or incentive fees in respect RBC Short-Term Global Bond Fund (for a portion of the Fund) of that investment that a reasonable person would believe RBC Bond Fund (for a portion of the Fund) duplicates a fee payable by the underlying fund for the same RBC Global Bond Fund (for a portion of the Fund) service. To the extent a Fund invests in underlying funds RBC $U.S. Global Bond Fund (for a portion of the Fund) managed by RBC GAM or its affiliates, the fees and expenses RBC Global Corporate Bond Fund (for a portion of the Fund) payable by the underlying funds are in addition to the fees RBC Global High Yield Bond Fund (for a portion of the Fund) and expenses payable by the Fund. However, a Fund may RBC Emerging Markets Bond Fund (for a portion of the Fund) only invest in one or more underlying funds provided that no RBC U.S. Monthly Income Fund (for a portion of the Fund) management fees or incentive fees are payable that would RBC Balanced Fund (for a portion of the Fund) duplicate a fee payable by the underlying fund for the same RBC Global Balanced Fund (for a portion of the Fund) service. The Fund’s ownership interest in underlying funds RBC International Dividend Growth Fund is disclosed in the Notes to Financial Statements – Fund RBC International Equity Fund (for the European equity Specific Information. portion of the Fund) RBC GAM or its affiliates may earn fees and spreads in RBC International Equity Currency Neutral Fund (for the connection with various services provided to, or transactions European equity portion of the underlying fund) with, the Funds, such as banking, brokerage, securities RBC European Dividend Fund lending, foreign exchange and derivatives transactions. RBC European Equity Fund RBC GAM or its affiliates may earn a foreign exchange RBC European Mid-Cap Equity Fund spread when unitholders switch between series of funds RBC Emerging Markets Multi-Strategy Equity Fund denominated in different currencies. The Funds also (for the underlying funds) maintain bank accounts and overdraft provisions with Royal RBC Emerging Markets Dividend Fund Bank for which Royal Bank may earn a fee. Affiliates of RBC Emerging Markets Equity Fund RBC GAM that provide services to the Funds in the course RBC Emerging Markets Equity Focus Fund of their normal business, all of which are wholly owned RBC Emerging Markets Small-Cap Equity Fund subsidiaries of Royal Bank of Canada, are discussed below. RBC Global Dividend Growth Fund RBC Global Dividend Growth Currency Neutral Fund RBC Global Equity Fund RBC Global Equity Focus Fund RBC Global Equity Focus Currency Neutral Fund (for the underlying fund) GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

RBC Global Equity Leaders Fund Trustee RBC Vision Balanced Fund (for a portion of the Fund) RBC GAM is the trustee for the Funds governed by the laws RBC Vision Fossil Fuel Free Emerging Markets Equity Fund of the Province of Ontario. RBC IS is the trustee for the Funds RBC Vision Global Equity Fund governed by the laws of the Province of British Columbia. RBC Vision Fossil Fuel Free Global Equity Fund The trustee holds title to the Funds’ property on behalf of Phillips, Hager & North Overseas Equity Fund the unitholders. The trustee earns a fee, which is paid by the Phillips, Hager & North Global Equity Fund manager from the fixed administration fee paid by the Funds.

RBC Global Asset Management (Asia) Limited is the Distributors sub-advisor for: RBC GAM, Royal Mutual Funds Inc., RBC Direct Investing Inc., RBC Balanced Fund (for the Asian equity portion of the Fund) RBC Dominion Securities Inc. and PH&N IF are principal RBC Global Balanced Fund (for the Asian equity portion distributors of, or may distribute certain series of units of, the of the Fund) Funds. Dealers receive an ongoing commission based on RBC International Dividend Growth Fund (for the Asian the total value of their clients’ Series A, Advisor Series, equity portion of the Fund) Advisor T5 Series, Series T5, Series T8, Series H and RBC International Equity Fund (for the Asian equity Series D units. portion of the Fund) Custodian RBC International Equity Currency Neutral Fund (for the RBC IS is the custodian and holds the assets of the Funds. Asian equity portion of the underlying fund) RBC IS earns a fee as the custodian, which is paid by the RBC Asian Equity Fund (for the underlying funds) manager from the fixed administration fee paid by the Funds. RBC Asia Pacific ex-Japan Equity Fund RBC China Equity Fund Registrars RBC Japanese Equity Fund RBC GAM, RBC IS or Royal Bank (or a combination thereof) RBC Vision Balanced Fund (for the Asian equity portion of are the registrars of the Funds and keep records of who owns the Fund) the units of the Funds. The registrars also process orders and BlueBay Asset Management LLP is the sub-advisor for: issue account statements. The registrars earn a fee, which is BlueBay Global Monthly Income Bond Fund paid by the manager from the fixed administration fee paid BlueBay Global Sovereign Bond Fund (Canada) by the Funds. BlueBay Global Investment Grade Corporate Bond Brokers and Dealers Fund (Canada) The Funds have established or may establish standard BlueBay $U.S. Global Investment Grade Corporate Bond brokerage agreements and dealing agreements at Fund (Canada) market rates with related parties such as RBC Dominion BlueBay European High Yield Bond Fund (Canada) Securities Inc., RBC Capital Markets, LLC, RBC Europe BlueBay Global High Yield Bond Fund (Canada) Limited, NBC Securities Inc. and Royal Bank of Canada. BlueBay $U.S. Global High Yield Bond Fund (Canada) BlueBay Emerging Markets Bond Fund (Canada) Securities Lending Agent BlueBay Emerging Markets Local Currency Bond To the extent a Fund may engage in securities lending Fund (Canada) transactions, RBC IS may act as the Fund’s securities lending BlueBay Emerging Markets Corporate Bond Fund agent. Any revenue earned on such securities lending is split BlueBay Global Convertible Bond Fund (Canada) between the Fund and the securities lending agent. BlueBay Global Alternative Bond Fund (Canada) Other Related-Party Transactions The sub-advisors earn a fee which is calculated and accrued Pursuant to applicable securities legislation, the Funds daily as a percentage of the NAV of each series of units of the relied on the standing instructions from the Independent Funds. The sub-advisors are paid by the manager from the Review Committee with respect to one or more of the management fee paid by the Funds. following transactions: GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited) (also see Fund Specific Information)

June 30, 2021

Related-Party Trading Activities (a) trades in securities of Royal Bank;

(b) investments in the securities of issuers for which a related-party dealer acted as an underwriter during the distribution of such securities and the 60-day period following the conclusion of such distribution of the underwritten securities to the public;

(c) purchases of equity and debt securities from or sales of equity or debt securities to a related-party dealer, where it acted as principal; and

Inter-Fund Trading (d) purchases or sales of securities of an issuer from or to another investment fund or managed account managed by RBC GAM.

The applicable standing instructions require that Related-Party Trading Activities and Inter-Fund Trading be conducted in accordance with RBC GAM policy and that RBC GAM advise the Independent Review Committee of a material breach of any standing instruction. RBC GAM policy requires that an investment decision in respect of Related-Party Trading Activities (i) is made free from any influence of Royal Bank or its associates or affiliates and without taking into account any consideration relevant to Royal Bank or its affiliates or associates, (ii) represents the business judgment of the portfolio manager, uninfluenced by considerations other than the best interests of the Funds, (iii) is in compliance with RBC GAM policies and procedures, and (iv) achieves a fair and reasonable result for the Funds. RBC GAM policy requires that an investment decision in respect of Inter-Fund Trading is in the best interests of each Fund.