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RBC Guaranteed Investment Funds

PRESENTED BY:

Santo P. Filice, CHS

Date: January 22th, 2014

Investing with Confidence

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What’s Under Your Client’s Mattress?

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Alternative to the Mattress

1Yr. Redeemable GIC 1.05% 1 Yr. Non – Redeemable GIC 1.3%

5 Yr. Redeemable GIC 1.95% 5 Yr. Non-Redeemable GIC 2.2%

*CPI September 2013 – 1.1%

RBC rates on November 17th, 2013

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That Mattress can be Expensive

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Agenda

Why Segregated Funds - Value Proposition The Market Opportunity for You Whose Mattress do we need to look under? Why RBC GIF – Strength, Value, Advice New Product Offerings Next Steps

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The Uncertain Road – TSX MARKET DOWNTURN

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Emotional Irrational investing

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A Little Refresher – Why Segregated Funds?

• Investment with Principal Guarantees/Resets

• Estate Planning/ Potential for Creditor

protection

• Underlying Investments

• Maturity and Death Benefit Guarantees• Gains when market goes up, protected

when market goes down

• Ability to bypass probate• Passes directly to named beneficiaries• It is an insurance contract therefore

beneficiaries take precedence over creditors

• Diversify by asset class

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A Seatbelt for the Uncertain Road

RBC Guaranteed Investment Funds

New Maturity Guarantee = $81,750 (75% of $109,000)

Initial Maturity Guarantee = $75,000 (75% of $100,000)

Note: Assumes no withdrawals. Assumes that the deposit was made on or before age 80.

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Death Benefit Guarantee

RBC Guaranteed Investment Funds

Note: Assumes no withdrawals. Assumes that the deposit was made on or before age 80.

Death

Death Guarantee$118,000

Mutual Fund Value$80,000

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• More opportunities

• Ongoing renewal commission

• Build a fence

Enhancing Your Value Proposition

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Thoughts Clients May Have

I’m Self Employed

I’ve lost money in the markets

I want to participate in market

growth but I’m worried I will

lose on my investment

I want my loved ones tohave enough when I’m gone

I don’t know if I’ll haveenough money for retirement

I’m not eligible for Life Insurance

All my investments are in GICs

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Age 45+, Pre-retirees and retirees

Saving for retirement Looking for efficient

transfer of wealth

Target Clients

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The $738 Billion Inheritance Windfall

Source; Investor Economics – Canadian Retirement Market / 2011 Household Balance Sheet

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Case Study #1 – Preserving an Estate

Profile Assessment Preserving wealth to maximize transfer to

beneficiaries

Recommendation Transfer her Non Reg. savings to RBC GIF Series 2.

Martha, 68, retired widow

$400K Non Reg. in a conservative Mutual Fund portfolio

Does not like the volatility of the markets

Would like to leave the money for her family

* All case studies are for illustrative purposes only and are not true accounts. This document is being provided for general information purposes only and the contents should not be relied upon as containing specific financial, investment, tax or related advice. Client must seek their own independent advice."

Benefits 100% death benefit, which can be reset annually

Avoidance of the length of probate – from a few months to weeks.

Avoidance of the costs of probate (probate fees, executor fees, legal fees) – Up to 20% of her assets.

Financial affairs remain private.

Assuming a $100,000 segregated fund portfolio for the province of Ontario. Probate fees vary by province. Source for Ontario probate is the Estate Administration Tax Act, 1998 S.O. 1998, Chapter 34. The costs displayed represent a typical range for fees that may be incurred by clients utilizing third-party assistance in managing their estate. This example assumes the only assets the client has are in segregated funds.

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Protection for the Uninsurable

100% Death

Benefit Maturity -

ensures no surprises

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Previously Married Self Employed Income Splitting

Protection for your Family

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Case Study #2 – Potential for Creditor Protection

Profile Assessment Joe, 46, self-employed

contractor, married with 2 children

His business is non-incorporated

Nest egg of $200,000 in non-registered assets

Ensure his family is protected should anything happen to his business or himself

Protecting family and assets

Recommendation RBC GIF Series 1 GIF

* All case studies are for illustrative purposes only and are not true accounts. This document is being provided for general information purposes only and the contents should not be relied upon as containing specific financial, investment, tax or related advice. Client must seek their own independent advice."

Benefits Potential for creditor protection should his business fail

100% death benefit protects investment against market volatility

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Segregated Fund Assets (in Billions)

$72

$74

$76

$78

$80

$82

$84

$86

$88

$90

$92

Dec.2009 Dec.2010 Dec.2011 Dec.2012

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$295 Billion AUM

TrustSimplicityStrength

WHY RBC?

Simple product structure RBC, a trusted brand,

a Canadian institution

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RBC Global Asset Management

Manager of the underlying mutual funds Over 1.2 million clients Proven track record Approximately $295 billion in assets under management 60 investment professionals

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Comparing MERs

 Pre-HST RBC GIF 75/100 Industry

Average

RBC Canadian Money Market GIF 0.42 1.31

RBC Canadian Short-Term Income GIF 1.82 -

RBC Bond GIF 1.82 2.33

RBC PH&N Total Return Bond GIF 1.85 2.33

RBC Global Bond GIF 2.21 2.68

RBC Balanced GIF 2.66 2.92

RBC PH&N Monthly Income GIF 2.62 2.96

RBC Balanced Growth GIF 2.67 2.98

RBC Canadian Dividend GIF 2.64 2.88

RBC Canadian Equity GIF 2.89 2.98

RBC O'Shaugh. All-Cdn Equity GIF 2.96 3.05

RBC US Dividend GIF 2.96 2.80

RBC North American Growth GIF 2.90 2.86

RBC U.S. Equity GIF 3.07 3.12

RBC O’Shaughnessy U.S. Value GIF 3.03 3.12

RBC U.S. Mid-Cap Equity GIF 2.96 2.71

RBC Global Dividend Growth GIF 3.22 2.98

RBC O’Shaugh. Inter.l Equity GIF 3.22 3.21

RBC Select Conservative GIP 2.41 2.80

RBC Select Balanced GIP 2.59 3.07

RBC Select Growth GIP 2.82 3.15

RBC Select Aggressive Growth GIP 3.07 3.13

Source of competitor MERs: Paltrak December 31, 2012 and product material.MERs for the RBC GIF are as published in the December 31, 2011 audited financial statements. These MERs are subject to change at anytime and may increase. Actual MERs including HST will be published in the annual audited financial statements.

 Series 2 RBC GIF Industry Average

RBC Select Conservative GIP 2.60 2.80

RBC Select Balanced GIP 2.79 3.07

RBC Select Growth GIP 3.05 3.15

RBC Select Aggr. Growth GIP 3.39 3.13

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RBC Insurance

RBC High Yield Bond

Fund

RBC North American

Value Fund

RBC PH&N Canadian Income Fund

Introducing 3 new funds for your clients!

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RBC GIF – Competitive Advantage

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RBC Payout Annuities – Product Design at a Glance

Life

Single Life Joint Life

TermCertain

3-25 years

• Guaranteed period (0-25 years)• Immediate• Prescribed

• Guaranteed term (3-25 years)• Immediate• Prescribed

Payments for aFixed period

Paymentsfor life

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So, Now It’s YOUR Turn . . .

And remember . . .

Choice, Not ChanceChoice, Not ChanceShould Determine Ones DestinyShould Determine Ones Destiny

Advice Driven Sales Ideas

Let’s meet 1 on 1

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QUESTIONS!