RBC U.S. Microcap Core Equity

The Microcap Core Equity strategy seeks to provide superior long-term investment returns compared to the Russell Microcap Index, while taking a low risk approach to microcap investing. We believe that portfolios of neglected microcap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce superior absolute and risk-adjusted returns over time.

Portfolio Construction:

• Benchmark: Russell Microcap Index
• Well-diversified portfolios holding 60-90 issues
• Majority of returns sought from stock selection
• Maximum in a single security: 5%
• Maximum in a single sector: 2x Russell Microcap Index weight or 15%, whichever is greater
• Fully invested in equities; no market timing
• Low portfolio turnover: 30 -50%

RBC U.S. Small Cap Core Equity

The Small Cap Core strategy seeks to provide superior long-term investment returns compared to the Russell 2000 Index, while taking a low risk approach to small company investing. We believe that portfolios of neglected small cap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce strong absolute and risk-adjusted returns over time.

Portfolio Construction:

• Benchmark: Russell 2000 Index
• Well-diversified portfolios holding 50 -80 issues
• Maximum in a single security: 5%
• Maximum in a single sector: 2x Russell 2000 Index weight
• Fully invested in equities; no market timing
• Low portfolio turnover: 30 -50%

RBC U.S. Small Cap Value Equity

We believe that by investing in small cap companies that demonstrate long-term attractive business fundamentals, near-term profitability improvement potential, strong finances, and capable management, and attractive/low valuation the Small Cap Value strategy should produce superior investment returns and risk control over time.

Portfolio Construction:

• Well-diversified portfolios holding 70-100 issues
• Majority of returns sought from stock selection
• Maximum in a single security: 5%
• Maximum in a single sector: 2x Russell 2000 Value Index weight
• Fully invested in equities - no market timing
• Low portfolio turnover: 30-50%

RBC U.S. SMID Cap Growth Equity

The SMID Cap Growth strategy seeks superior capital appreciation through careful selection from a universe of high-quality, small- and mid-capitalization growth companies. We generally invest in profitable companies selling at reasonable vaulations utilizing a bottom-up fundamental approach. We are a conservative growth investor and invest in companies for long-term capital appreciation which results in below average turnover.

Portfolio Construction:

• Designed to outperform the Russell 2500 Growth Index by 150-200 basis points on an annualized basis over the long-term
• Risk controls
• Maximum exposure to any one company will be 2.5% at cost and 4.0% at market
• Well diversified portfolio of 70-90 names
• Broad industry and sector exposure - no large sector bets
• Low portfolio turnover: 15-20% annual average
• Low composite dispersion across portfolios*

*Subject to client specific restrictions