TM ®
MAXIVU AND MAXINVEST
SEGREGATED FUNDS
FINANCIAL STATEMENTS
and
SUMMARY FACT STATEMENTS
As of December 31, 2003
RBC Life Insurance Company
6880 Financial Drive, West Tower
Mississauga, Ontario
L5N 7Y5
TM Trademarks of Royal Bank of Canada. RBC Insurance is a registered trademark of Royal Bank of
Canada.
® Registered trademark of Royal Bank of Canada. Used under license.
Form 81118 (03/2004)
1
STATEMENTS AND SCHEDULES
The following statements and schedules reflect past performance of the Funds
and should not be construed as indicators of future performance. The Fund values are
shown net of any charges. The only charges made to the Funds were management fees,
custodian fees, audit charges, interest and bank charges.
NOTE:
• All returns assume all income/gains are retained and reflected in higher
unit values.
• Returns do not take into account sales, redemptions, distribution or other
optional charges or income taxes payable that would have reduced returns.
Subject to any applicable death and maturity guarantee, any part of the
premium or other amount that is allocated to a segregated fund is invested at
the risk of the contract holder and may increase or decrease in value accord-
ing to fluctuations in the market value of the assets in the segregated fund.
Semi-annual unaudited statements effective as of June 30th, will be available to
Policyholders upon request.
Financial statements and annual reports for the UBS Global Asset Management
(Canada) Co. funds are available upon request. The objectives of a UBS (Canada) fund
can only be changed by a vote of unit holders of that UBS (Canada) fund and upon such
an event, RBC Life Insurance Company (the Company) will notify Policyholders
of such change.
A fund’s portfolio turnover rate indicates how actively the fund’s portfolio adviser
manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the
fund buying and selling all of the securities in its portfolio once in the course of the year.
The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable
by the fund in the year, and the greater the chance of an investor receiving taxable capital
gains in the year. There is not necessarily a relationship between a high turnover rate and
the performance of a fund. If the segregated fund is a fund-of-funds, the portfolio
turnover rate shall be provided for the underlying fund(s).
The benchmark for measuring the performance of the Equity Growth Fund and the
Balanced Fund has been changed from the TSE 300 Index to the S&P/TSX Composite
Index. The TSE 300 Index was discontinued in early 2002 and no rates of return are
available after that time. Standard and Poor’s, the reporting company, has produced
illustrative long term returns for the new S&P/TSX Composite Index representing the
returns that would have been generated had the TSE 300 Index been in place for the
period reported.
2 15
EQUITY GROWTH FUND 4. Summary of Financial Information (continued)
SUMMARY FACT STATEMENT iii. The management expense ratios for the Funds are based on all expenses of the Funds (other than
DECEMBER 31, 2003 brokerage commissions and taxes on securities transactions) expressed as a percentage of the annual
average net asset value calculated for the purpose of the issue of units of the Funds.
INVESTMENT OBJECTIVE iv. In consideration for management services and investment advice, RBC Life Insurance Company is
The principal investment objective of the Equity Growth Fund will be long-term accu- entitled to a management fee. The maximum management fee, exclusive of GST, is based on the
mulation of capital through appreciation and reinvestment of net income. following annual percentages, applied on a weekly basis to the respective net asset values of the Funds:
Equity Growth Up to 2.375%
INVESTMENT POLICY
The Equity Growth Fund is invested in units of the UBS (Canada) Canadian Equity Bond Up to 2.000%
(Capped) Fund managed by UBS Global Asset Management (Canada) Co.
Balanced Up to 2.375%
INVESTMENT RETURN HISTORY v. Custodian fees, audit, interest and bank charges are payable by the Funds.
1 Year 3 Year 5 Year 10 Year
Equity Growth Fund 21.35% -3.02% 1.59% 4.93% 5. Schedule of Invested Assets
Management Expense Ratio: 2.33% Market
Number of % Fund Market Value
Portfolio Turnover Rate: 33%
Fund Security Name Units Cost Owned Price per Unit
The 25 largest holdings in the UBS (Canada) Canadian Equity (Capped) Fund were: Equity Growth UBS (Canada) 4,975,138 $42,640,410 13.81% $44,090,664 $ 8.86
Security % of Portfolio Canadian Equity Fund
UBS (Canada) Small Cap Fund 8.4% Bond UBS (Canada) 734,571 $ 6,319,225 0.44% $ 6,575,512 $ 8.95
Royal Bank of Canada 5.3% Canadian Bond Fund
Toronto-Dominion Bank 4.5%
Alcan Inc. 4.4% Balanced UBS (Canada) 1,049,622 $8,998,100 0.63% $9,395,695 $ 8.95
Bank of Nova Scotia 4.3% Canadian Bond Fund
Bank of Montreal 3.3% Balanced UBS (Canada) 1,208,005 $10,279,523 3.35% $10,705,583 $ 8.86
Encana Corporation 3.1% Canadian Equity Fund
BCE Inc. 3.1%
CIBC 3.0% Balanced UBS (Canada) 2,215 $ 22,148 0.01% $ 22,148 $10.00
Suncor Energy Inc. 2.9% Money Market Fund
Manulife Financial Corp. 2.7% Financial Statements for UBS Global Asset Management funds are available upon request.
Sun Life Financial Inc. 2.6%
Nortel Networks Corp. 2.5% 6. Comparative Figures
Petro-Canada 2.3%
Talisman Energy Inc. 2.2% Certain of the prior year’s figures have been reclassified to conform to the current
Power Financial Corp. 2.2% year’s presentation.
Transcanada Corp. 2.2%
Canadian National Railway 2.0%
Barrick Gold Corp. 1.9%
Brascan Corp. 1.7%
Placer Dome Inc. 1.6%
Magna International Inc. 1.5%
Abitibi Cons Inc. 1.4%
Great-West Lifeco 1.4%
UBS (Canada) Money Market Fund 1.2%
14 3
4. Summary of Financial Information as at December 31: 10 Year Equity Fund Returns
i) Net Asset Value per unit 25
2003 2002 2001 2000 1999
Equity Growth $ 20.77 $ 17.11 $ 20.31 $ 22.77 $ 21.77 20
Bond 22.38 21.31 20.03 18.97 17.81
Balanced 22.16 19.60 20.68 22.21 21.11
$ Unit Value
15
ii) Net Income (Loss) per unit
2003 2002 2001 2000 1999
10
Equity Growth $ 3.66 $ (3.21) $ (2.66) $ 1.23 $ 2.47
Bond 1.01 1.27 1.13 1.23 (0.44)
Balanced 2.61 (1.15) (1.64) 1.52 1.89 5
iii)Management Expense Ratio (other than brokerage fees and commissions)
2003 2002 2001 2000 1999 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Equity Growth 2.32% 2.81% 2.69% 2.79% 2.54% Year
Bond 2.18% 2.17% 2.24% 2.27% 2.14%
Balanced 2.57% 2.75% 2.52% 2.88% 2.54%
iv) Management Fee Equity Fund Comparison to S&P/TSX Composite Index
$24,000
2003 2002 2001 2000 1999
$22,000
Equity Growth $1,024,163 $1,092,054 $1,315,812 $1,725,920 $1,584,706
Bond 143,101 147,445 158,504 180,247 223,082 $20,000
Balanced 522,533 591,934 669,447 870,067 863,577
$18,000
Total Return
v) Other Expenses
$16,000
2003 2002 2001 2000 1999
$14,000
Equity Growth $ 12,711 $ 17,553 $ 23,853 $ 7,536 $ 33,458
Bond 2,903 3,715 3,874 2,194 7,594 $12,000
Balanced 7,342 10,075 12,458 4,633 26,125
$10,000
i. Net asset value per unit is computed by dividing the net asset value of a Fund by the total number of
units of the Fund outstanding, as at the end of the period. $8,000
ii. Based on the average number of units outstanding during the period. D-93 D-94 D-95 D-96 D-97 D-98 D-99 D-00 D-01 D-02 D-03
Year
Equity Fund S&P/TSX Composite Index
Comparison of $10,000 invested in the Equity Growth Fund versus the S&P/TSX
Composite Index
4 13
THE BOND FUND iii) Expenses of Funds
SUMMARY FACT STATEMENT The Funds are responsible for the payment of the fees and expenses related
DECEMBER 31, 2003 to the operation of that Fund. Such fees and expenses include custodian fee,
management fee, audit, bank charges, interest, brokerage on securities
INVESTMENT OBJECTIVE transactions and all taxes.
The investment objective of the Bond Fund is to achieve high current income and to iv) Income Taxes
preserve capital. The income from the funds is taxed in the hands of the unit holders.
Accordingly no income taxes are provided for in these financial statements.
INVESTMENT POLICY
The Bond Fund is invested in units of the UBS (Canada) Bond Fund managed by UBS 3. Unitholders’ Equity
Global Asset Management (Canada) Co. Units of the Funds, which are redeemable at the option of the holder in accordance with
the provisions of the related policy contracts, do not have any nominal or par value and
INVESTMENT RETURN HISTORY the number of units, which may be issued is unlimited. Units of the fund are issued or
1 Year 3 Year 5 Year 10 Year redeemed on a weekly basis at the net asset value per unit next determined after the
Bond Fund 5.01% 5.66% 4.22% 5.26% purchase order or redemption request, respectively, is received by RBC Life Insurance
Company.
Management Expense Ratio: 2.19%
Portfolio Turnover Rate: 100% Summary of Sales and Redemption of Units
The 25 largest holdings in the UBS (Canada) Bond Fund were: Units sold Proceeds from Sale of Units
Category Maturity Interest Rate % of Portfolio 2003 2002 2003 2002
Government of Canada Dec 01/05 8.750% 4.6% Equity Growth 337,728 433,830 $ 6,224,265 $ 8,015,913
Government of Canada Jun 01/11 6.000% 3.9% Bond 48,543 53,070 1,066,623 1,078,916
Government of Canada Jun 01/08 6.000% 3.3% Balanced 128,546 175,507 2,672,505 3,499,366
Government of Canada Jun 01/23 8.000% 2.9%
Province of Quebec Oct 01/29 6.000% 2.8% Units Redeemed Amounts Paid on Redemption
Government of Canada Jun 01/27 8.00% 2.7% 2003 2002 2003 2002
Government of Canada Sep 01/06 5.750% 2.7%
Canada Housing Trust Dec 15/08 4.100% 2.2% Equity Growth 491,308 566,213 $8,842,220 $10,677,338
Government of Canada Dec 01/06 7.000% 2.0% Bond 73,193 88,604 1,573,689 1,787,014
Government of Canada Jun 01/13 5.250% 1.9% Balanced 307,144 310,576 6,244,641 6,217,814
Government of Canada Dec 01/31 4.000% 1.7%
Canada Housing Trust Mar 15/07 4.750% 1.6%
Canada Housing Trust Sep 15/08 3.70% 1.6%
Province of Quebec Dec 01/10 6.250% 1.6%
Financement Quebec Jun 01/06 6.300% 1.5%
Province of Ontario Dec 01/08 5.700% 1.5%
T-D Bank F/FL ’08/’13 Sep 05/08 4.540% 1.3%
Government of Canada Dec 01/21 4.250% 1.3%
Province of Ontario Mar 08/29 6.500% 1.3%
Province of New Brunswick Nov 23/09 10.000% 1.1%
Ontario Hydro Jun 22/26 8.250% 1.1%
Ontario School Boards Sep 22/10 6.300% 1.0%
Province of Nova Scotia Sep 01/10 6.400% 1.0%
Ontario Prov Pckg Ex Dec 02/18 5.500% 1.0%
Province of Quebec Jun 01/09 5.50% 1.0%
12 5
NOTES TO THE FINANCIAL STATEMENTS 10 Year Bond Fund Returns
December 31, 2003
25
1. The Funds
The funds are segregated funds, originally established by a predecessor company, 20
Westbury Canadian Life Insurance Company (Westbury Life).
RBC Life Equity Growth Fund (“Equity Growth”) December 15, 1989
$ Unit Value
15
RBC Life Bond Fund (“Bond”) May 1, 1991
RBC Life Balanced Fund (“Balanced”) May 1, 1991
10
2. Summary of Significant Accounting Policies
i) Investment Valuation, Transactions and Income
5
Investment transactions are accounted for as of the trade date for all
“Pooled Funds.” The disclosure for the Statement of Net Assets and Statement
of Operations is as follows: 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Statement of Net Assets Year
a) Investments are valued at market, inclusive of accrued interest and
dividends due.
Statement of Operations Bond Fund Comparison to Scotia McLeod Index
b) Mark to market adjustments are reflected as unrealized gains and losses. $22,000
c) Realized gains and losses on units sold are measured on the first in – first
out methodology. $20,000
ii) Valuation of Funds $18,000
The net asset value per unit is determined by dividing the net asset value of the
Total Return
$16,000
Fund by the total number of units outstanding at such time. The net asset value
of the Funds is determined as at 4:30 p.m. (Eastern Standard Time) each $14,000
Friday at RBC Life Insurance Company head office in Meadowvale, Ontario.
$12,000
$10,000
$8,000
D-93 D-94 D-95 D-96 D-97 D-98 D-99 D-00 D-01 D-02 D-03
Year
Bond Fund Scotia McLeod Index
Comparison of $10,000 invested in the Bond Fund versus the Scotia McLeod Index
6 11
THE BALANCED FUND
2002
21,634,223
$10,727,731 $10,805,814
9,395,695 10,499,713
96,436
$20,368,419 $21,537,787
1,098,756
328,696
–
19.60
SUMMARY FACT STATEMENT
DECEMBER 31, 2003
Balanced
22.16 $
INVESTMENT OBJECTIVE
2003
295,884
20,419,310
50,891
919,349
The investment objective of the Balanced Fund is to achieve the highest long term rate
of return possible that is consistent with a prudent investment philosophy and the
preservation of capital in real terms.
$
INVESTMENT POLICY
The assets of the Balanced Fund will be invested in a combination of the UBS (Canada)
–
6,817,034
–
–
6,817,034
31,207
$6,785,827
318,362
21.31
2002
Canadian Equity (Capped) Fund, the UBS (Canada) Bond Fund and the UBS (Canada)
RBC LIFE INSURANCE COMPANY FUNDS
Money Market Fund.
Bond
The composition by asset class of the Balanced Fund will fall within the following ranges:
$
$
Money Market Fund 0% - 25%
$6,576,751
2003
–
6,575,512
3,356
–
6,578,868
2,117
293,828
22.38
Canadian Equity 25% - 75%
Bond Fund 25% - 75%
$
$
INVESTMENT RETURN HISTORY
2002
$44,090,664 $38,887,003
–
1
17,032
38,904,036
–
$44,055,811 $38,904,036
2,273,237
17.11
1 Year 3 Year 5 Year 10 Year
Balanced Fund 13.03% -0.10% 2.93% 5.98%
Equity Growth
Management Expense Ratio: 2.57%
Portfolio Turnover Rate for the Canadian Equity Fund: 33%
20.77 $
Portfolio Turnover Rate for the Bond Fund: 100%
2003
44,090,664
34,853
2,121,441
5 Largest Holdings in the UBS (Canada) Canadian Equity (Capped) Fund were:
Security % of Portfolio
UBS (Canada) Small Cap Fund 8.4%
$
Royal Bank of Canada 5.3%
Due from RBC Life Insurance
Toronto-Dominion Bank 4.5%
Unitholders’ equity (Note 3)
Investments at market value:
Due to RBC Life Insurance
Alcan Inc. 4.4%
As at December 31, 2003
Statement of Net Assets
Cash and term deposits
Bank of Nova Scotia 4.3%
Company Premiums
NUMBER OF UNITS
PER UNIT (Note 4)
NET ASSET VALUE
5 Largest Holdings in the UBS (Canada) Bond Fund were:
OUTSTANDING
Category Maturity Interest Rate % of Portfolio
Government of Canada Dec 01/05 8.75% 4.6%
Company
Liabilities
Government of Canada Jun 01/11 6.00% 3.9%
Bonds
Equity
Assets
Government of Canada Jun 01/08 6.00% 3.3%
Government of Canada Jun 01/23 8.00% 2.9%
Province of Quebec Oct 01/29 6.00% 2.8%
10
RBC LIFE INSURANCE COMPANY FUNDS
Statement of Changes in Net Assets
For the year ended December 31, 2003
Equity Growth Bond Balanced
2003 2002 2003 2002 2003 2002
Net assets, beginning of
the year $38,904,036 $48,864,221 $6,785,827 $7,089,032 $21,537,787 $25,520,514
Premium deposits 6,224,265 8,015,913 1,066,623 1,078,916 2,672,505 3,499,366
Net operating income (loss) 7,769,730 (7,298,760) 297,990 404,893 2,402,768 (1,264,279)
52,898,031 49,581,374 8,150,440 8,572,841 26,613,060 27,755,601
Less:
Withdrawals 8,842,220 10,677,338 1,573,689 1,787,014 6,244,641 6,217,814
NET ASSETS,
END OF THE YEAR $44,055,811 $38,904,036 $6,576,751 $6,785,827 $20,368,419 $21,537,787
NUMBER OF UNITS
OUTSTANDING 2,121,441 2,273,237 293,828 318,362 919,349 1,098,756
$ Unit Value
Total Return
0
5
10
15
20
25
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
$22,000
$24,000
1994
D-93
1995
D-94
Balanced Fund
1996
D-95
Index and the Scotia McLeod Index.
D-96
1997
D-97
1998
Year
D-98
Year
1999
p
D-99
S&P/TSX Composite Index
2000
D-00
10 Year Balanced Fund Returns
2001
D-01
2002
S&P/TSX Composite and Scotia McLeod Index
D-02
Scotia McLeod Index
2003
D-03
7
Comparison of $10,000 invested in the Balanced Fund versus the S&P/TSX Composite
8 9
AUDITOR
(1,598,992)
(662,270)
$(1,264,279)
(1.15)
2002
712,912
176,416
47,394
591,934
7,778
2,297
602,009
The statements of net assets of RBC Life Insurance Company Funds were audited by
Deloitte & Touche LLP, BCE Place 181 Bay Street, Suite 1400, Toronto, Ontario.
Balanced
$
$
AUDITORS’ REPORT
(117,361)
2003
$ 586,853
184,465
2,278,686
2,932,643
522,533
5,045
2,297
529,875
$2,402,768
2.61
To the Unit Holders of
RBC Life Equity Growth Fund (“Equity Growth”)
RBC Life Bond Fund (“Bond”)
$
RBC Life Balanced Fund (“Balanced”)
(Collectively referred to as the Funds)
$424,243
$404,893
2002
–
10,854
120,956
556,053
147,445
2,967
748
151,160
1.27
RBC LIFE INSURANCE COMPANY FUNDS
We have audited the statements of net assets of RBC Life Insurance Company Funds
as at December 31, 2003 and the statements of operations and statements of changes in
Bond
$
net assets of the Funds for the year then ended. These financial statements are the
responsibility of the Funds’ manager. Our responsibility is to express an opinion on
2003
$396,117
–
24,075
23,802
443,994
143,101
2,155
748
146,004
$297,990
1.01
these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing
$
standards. Those standards require that we plan and perform an audit to obtain reason-
(106,798)
(6,703,277)
(6,189,154)
$(7,298,760)
(3.21)
able assurance whether the financial statements are free of material misstatement.
2002
457
620,464
1,092,053
13,362
4,191
1,109,606
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
Equity Growth
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.
$
$
In our opinion, these financial statements present fairly, in all material respects, the
(311,989)
2003
3.66
52
736,284
8,382,257
8,806,604
1,024,163
8,520
4,191
1,036,874
$7,769,730
financial position of the RBC Life Insurance Company Funds as at December 31, 2003
and the results of their operations and the changes in their net assets for the year then
For the year ended December 31, 2003
ended in accordance with the Canadian generally accepted accounting principles.
$
$
Increase (decrease) in unrealized
(LOSS) PER UNIT (Note 4)
appreciation of investments
NET OPERATING INCOME
NET OPERATING INCOME
Bank charges and interest
Statement of Operations
on sale of investments
Realized gains (losses)
Chartered Accountants
Expenses (Note 4)
Toronto, Ontario
Management fees
February 12, 2004
Dividends
(LOSS)
Income
Interest
Audit