Jennifer is interested in the mutual fund RBC U.S. Index Fund Series A. She has a few questions for you before she buys this investment.

a) Does the reported funds return include the Management Expense Ratio (MER) ? Yes or No

b) What type of fee is charged: No-load, Front-end load or a Back-end load?

c) Is the status of this mutual fund classified as a closed-end or open-end mutual fund?

d) Based on your response in c), explain what that mean and confirm if it trades on the stock exchange?

e) If you had $1,000 to invest in this fund, how many mutual fund shares could you purchase ? (NAV = 25,6915)

For question e) the result I found is 38.92 shares ?

The RBC U.S. index fund series A :

Global Asset Management FUND FACTS RBC Global Asset Management Inc. RBCU.S. Index Fund - Series A June 27, 2019 This document contains key information you should know about RBC U.S. Index Fund (Series A). You can find more details in the fund's simplified prospectus. Ask your representative for a copy. contact RBC Global Asset Management Inc. (RBC GAM) at 1-800-463-FUND (3863), funds.investments@rbc.com, or visit www.rbcgam.com/investorinfo. Before you invest in any fund, you should consider how it would work with your other investments and your tolerance for risk. Quick facts Fund code: Date series started: Total value of the fund on May 31, 2019: Management expense ratio (MER): RBF557 October 13, 1998 $989.6 Million 0.66% Fund manager: RBC Global Asset Management Inc. Portfolio manager: RBC Global Asset Management Inc. Sub-advisor: BlackRock Asset Management Canada Limited Distributions: Annually in December; automatically reinvested unless you tell your representative to inform us that you want them in cash. Minimum investment: $500 initial, $25 additional investment What does the fund invest in? The fund invests primarily in equity securities of US. companies in order to track the performance of the S&P 500 Total Return Index*, either directly or indirectly through investment in other mutual funds. The charts below give you a snapshot of the fund's investments on May 31, 2019. The fund's investments will change. Top 10 investments (May 31, 2019) Investment mix (May 31, 2019) 1. Microsoft Corp. 4.1% 2. Apple Inc. 3.4% 3. Amazon.com, Inc. 3.2% 4. Facebook Inc., Class A 1.8% 5. iShares Core S&P 500 ETF 1.8% 6. Berkshire Hathaway Inc., Class B 1.7% 7. Johnson & Johnson 1.5% & JPMorgan Chase & Co. 1.5% 9. Alphabet Inc., Class C 1.5% 10. Alphabet Inc., Class A 1.4% Total percentage of top 10 investments 21.9% Total number of investments 508 20.7% Information Technology 13.9% Health Care 12.9% Financials 10.2% Communication Services 10.0% Consumer Discretionary 9.1% Industrials 7.3% Consumer Staples 4.8% Energy 3.4% Utilities 3.1% Real Estate 2.6% Materials 1.8% Underlying Funds 0.2% Cash/Other How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund's retums change over time. This is called "volatility". In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher retums. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating RBC GAM has rated the volatility of this fund as medium. This rating is based on how much the fund's retums have changed from year to year. It doesn't tell you how volatile the fund will be in the future. The rating can change over time. A fund with a low risk rating can still lose money. Low Low to Medium Medium Medium to High High For more information about the risk rating and specific risks that can affect the fund's retums, see the sections entitled "What are the risks of investing in the fund?" and "Who should invest in this fund?" in the fund's simplified prospectus. No guarantees Like most mutual funds, this fund doesn't have any guarantees. You may not get back the amount of money you invest. Page 1 of 3 RBC U.S. Index Fund - Series A Global Asset Management How has the fund performed? This section tells you how Series A units of the fund have performed over the past ten years. Returns are after expenses have been deducted. These expenses reduce the fund's returns. Year-by-year returns 60% This chart shows how Series A units of the fund performed in each of the past ten years. The fund dropped in value in none of the ten years. The range of returns 39.9% 45% and change from year to year can help you to assess how risky the fund has been 30% in the past. It does not tell you how the fund will perform in the future. 15% 8.1% 0% -15% -30% -45% -60% 23.1% 19.5% 0% 33% 11.8% 76% 12.9% 279 Best and worst 3-month returns This table shows the best and worst returns for Series A units of the fund in a 3-month period over the past ten years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time Return If you invest $1,000 at the beginning of the period 3 months ending December 31, 2013 Best retum 13.6% Your investment would rise to $1,136 Worst return -8.8% December 31, 2018 Your investment would fall to $912 Average return A person who invested $1,000 in Series A units of the fund ten years ago would have $4,116 as at May 31, 2019. This works out to an annual compound return of 15.2%. A word about tax Who is this fund for? Investors who: are seeking long-term capital growth potential want to diversify their portfolio by investment management approach want to minimize taxes inside a non-registered portfolio are prepared to fully participate in both market upturns and downturns, as the fund is generally fully invested are planning to hold their investment for the long term In general, you'll have to include in your taxable income any money you make on a fund held outside a registered plan such as a Registered Retirement Savings Plan or a Tax-Free Savings Account. How much income tax you pay depends on the tax laws that apply to you and the fund. Keep in mind that if you hold your fund in a non-registered account fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell Series A units of the fund. The fees and expenses including any commissions - can vary among series of a fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales charges Series A units are no load. That means you pay no sales charges if you buy, redeem or switch your units. 2. Fund expenses You don't pay these expenses directly. They affect you because they reduce the fund's retums. As of December 31, 2018, the expenses for Series A units of the fund were 0.66% of its value. This equals 56.60 for every $1,000 invested. Annual rate (as a % of the Series A units' value) 0.66% Management expense ratio (MER) This is the total of the fund's management fee (induding the trailing commission) and operating expenses (the administration fee, other fund costs and taxes). Trading expense ratio (TER) These are the fund's trading costs. Fund expenses 0.00% 0.66% Page 2 of 3 RBC U.S. Index Fund - Series A Global Asset Management RBC More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and advice your representative and your representative's firm provide to you. Your representative's firm may pay part of the trailing commission to its representatives RBC GAM pays your representative's firm a trailing commission. The trailing commission is paid out of the management fee. The rate for this series of the fund is 0.10% of the value of your investment each year. This equals $1.00 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or reclassify units of the fund. Fee What you pay Short-term trading fee 2% of the value of units you sell or switch within 7 days of buying them. This fee goes to the fund. Registered tax plan fee Fees may be payable to your representative or to his or her firm if you transfer an investment within a registered plan to another financial institution. None of these fees are paid to us. What if I change my mind? Under securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual funds within two business days after you receive a simplified prospectus or Fund Facts document, or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact RBC GAM or your representative for a copy of the fund's simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund's legal documents. RBC Global Asset Management Inc. 155 Wellington Street West Suite 2200 Toronto, ON MSV 3K7 Toll-free: 1-800-463-FUND (3863) Email: funds.investments@rbc.com Website: www.rbogam.com/investorinfo To leam more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at www.securities-administrators.ca. */ Trademarks) of Royal Bank of Canada. Used under licence. O RBC Global Asset Management Inc. 2019 *All rights in the "S&P 500 Total Return Index"vest in Standard & Poor's Financial Services LLC (S&P). Standard & Poor's and S&P are registered trademarks of S&P. The fund is not sponsored, endorsed, sold or promoted by S&P or its licensors, and they make no representation, warranty, or condition regarding the results to be obtained from the use of the index or the advisability of investing in the fund. Page 3 of 3