RBC Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number     811-8384
                                   ---------------------------------------------

                                RBC Funds, Inc.
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)

              90 South Seventh St.        Minneapolis, MN 55402
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

           BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
                     (Name and address of agent for service)

Registrant's telephone number, including area code:      614-470-8000
                                                   -----------------------------

Date of fiscal year end:     April 30, 2004
                         -------------------------------------------------------

Date of reporting period:    October 31, 2003
                         -------------------------------------------------------

     Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.

     A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.


ITEM 1. REPORTS TO STOCKHOLDERS.

         Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).

RBC Funds

Semi-Annual Report
October 31, 2003

RBC Large Cap Equity Fund

RBC Mid Cap Equity Fund

RBC Small Cap Equity Fund

RBC Government Income Fund

RBC Quality Income Fund

RBC North Carolina Tax-Free Bond Fund

Table of Contents

Schedule of Portfolio Investments	Statement of Changes in Net Assets
Page 1	Page 15
Statement of Assets and Liabilities	Notes to Financial Statements
Page 13	Page 17
Statement of Operations	Financial Highlights
Page 14	Page 24

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Large Cap Equity Fund	October 31, 2003

Common Stocks (97.2%)
	Shares		Value
Advertising (2.1%)
Omnicom Group, Inc.		11,100	$	885,780
Banking & Financial Services (9.2%)
Fifth Third Bancorp		16,900		979,524
First Data Corp.		20,000		714,000
MBNA Corp.		51,000		1,262,250
SLM Corp.		24,400		955,504
				3,911,278
Commercial Services (5.1%)
Fiserv, Inc. (b)		20,800		734,656
Paychex, Inc.		36,700		1,428,364
				2,163,020
Computer Industry (6.1%)
Cisco Systems, Inc. (b)		62,400		1,309,152
Dell, Inc. (b)		35,700		1,289,484
				2,598,636
Distribution/Wholesale (3.3%)
SYSCO Corp.		41,200		1,386,792
Diversified Operations (6.8%)
Danaher Corp.		14,300		1,184,755
United Technologies Corp.		19,900		1,685,331
				2,870,086
Education (3.0%)
Apollo Group, Inc. — Class A (b)		20,000		1,270,600
Electronic Components/Instruments (3.3%)
Jabil Circuit, Inc. (b)		49,800		1,386,930
Food & Beverages (2.9%)
PepsiCo, Inc.		26,000		1,243,320
Health Care (16.7%)
Amgen, Inc. (b)		20,100		1,241,376
Cardinal Health, Inc.		21,500		1,275,810
Johnson & Johnson		14,000		704,620
Medtronic, Inc.		28,700		1,307,859
Pfizer, Inc.		28,900		913,240
Stryker Corp.		19,400		1,573,534
				7,016,439
Insurance (9.9%)
AFLAC, Inc.		33,100		1,207,488
Ambac Financial Group, Inc.		18,200		1,287,468
American International Group, Inc.		12,800		778,624
Marsh & McLennan Cos., Inc.		21,100		902,025
				4,175,605
Leisure (4.9%)
Carnival Corp.		29,700		1,036,827
International Game Technology		32,200		1,054,550
				2,091,377
Restaurants (2.4%)
Starbucks Corp. (b)		32,000	$	1,011,200
Retail (10.5%)
Bed Bath & Beyond, Inc. (b)		15,900		671,616
eBay, Inc. (b)		15,000		839,100
Home Depot, Inc.		19,300		715,451
Kohl’s Corp. (b)		12,400		695,268
Staples, Inc. (b)		26,700		716,094
Walgreen Co.		23,600		821,752
				4,459,281
Semiconductors (2.1%)
Intel Corp.		27,400		905,570
Software (6.3%)
Intuit, Inc. (b)		25,400		1,269,492
Microsoft Corp.		33,900		886,485
Oracle Corp. (b)		42,500		508,300
				2,664,277
Specialty Chemical (2.6%)
Ecolab, Inc.		40,900		1,099,801
TOTAL COMMON STOCKS    (Cost $36,401,451)				41,139,992
Investment Companies (2.8%)
Wells Fargo Prime Investment    Money Market Fund		1,203,499		1,203,499
TOTAL INVESTMENT COMPANIES    (Cost $1,203,499)				1,203,499
TOTAL INVESTMENTS    (Cost $37,604,950) (a) — 100.0%				42,343,491
Liabilities in excess of other assets — 0.0%				(1,072	)
NET ASSETS — 100.0%			$	42,342,419

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$	5,710,551
Unrealized depreciation		(972,010	)
Net unrealized depreciation	$	4,738,541

Aggregate cost for federal income tax purposes is substantially the same.

(b) Non-income producing security.

See notes to financial statements

1

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Mid Cap Equity Fund	October 31, 2003

Common Stocks (94.0%)
	Shares		Value
Banking & Financial Services (14.9%)
A.G. Edwards, Inc.		30,000	$	1,215,000
Allmerica Financial Corp. (b)		12,000		319,560
Associated Banc-Corp		32,000		1,317,120
Astoria Financial Corp.		34,000		1,177,760
Banknorth Group, Inc.		50,000		1,566,000
Certegy, Inc.		16,000		538,560
City National Corp.		20,000		1,204,200
Compass Bancshares, Inc.		45,000		1,700,100
E*Trade Group, Inc. (b)		125,000		1,287,500
GreenPoint Financial Corp.		45,000		1,401,750
Legg Mason, Inc.		20,000		1,665,000
M & T Bank Corp.		22,000		2,065,800
Mercantile Bankshares Corp.		30,000		1,271,100
New York Community Bancorp, Inc.		66,666		2,413,309
Roslyn Bancorp, Inc.		4,300		115,842
Sovereign Bancorp, Inc.		75,000		1,560,750
TCF Financial Corp.		29,000		1,513,220
Waddell & Reed Financial, Inc.		40,000		887,200
Webster Financial Corp.		20,000		894,000
Wilmington Trust Corp.		28,000		943,040
				25,056,811
Building & Construction (0.2%)
Granite Construction, Inc.		20,000		399,800
Business Equipment & Services (2.0%)
ChoicePoint, Inc. (b)		37,000		1,296,480
Jack Henry & Associates, Inc.		40,000		799,200
Manpower, Inc.		29,000		1,345,600
				3,441,280
Chemicals (0.9%)
Cabot Microelectronics Corp. (b)		5,609		319,713
Ferro Corp.		26,000		533,780
FMC Corp. (b)		25,000		700,250
				1,553,743
Computer Industry (7.6%)
Activision, Inc. (b)		60,000		905,400
Affiliated Computer Services, Inc. (b)		46,000		2,250,780
Cadence Design Systems, Inc. (b)		85,000		1,308,150
CheckFree Corp. (b)		42,000		1,156,260
CSG Systems International, Inc. (b)		35,000		402,150
Diebold, Inc.		7,500		427,950
DST Systems, Inc. (b)		52,000		1,966,640
Mentor Graphics Corp. (b)		45,000		753,750
Storage Technology Corp. (b)		15,000		361,500
SunGard Data Systems, Inc. (b)		40,000		1,122,000
Synopsys, Inc. (b)		70,000		2,220,400
				12,874,980
Consumer Discretionary (0.8%)
Catalina Marketing Corp. (b)		25,000		441,250
Gentex Corp.		25,000		976,250
				1,417,500
Consumer Goods & Services (3.4%)
Blyth, Inc.		28,000	$	783,440
Callaway Golf Co.		40,000		650,000
Church & Dwight Co., Inc.		23,800		887,026
Dial Corp.		46,000		1,104,000
Fastenal Co.		37,000		1,645,390
Sonoco Products Co.		30,000		638,100
				5,707,956
Consumer Staples (0.8%)
Whole Foods Market, Inc. (b)		23,000		1,362,520
Distribution/Wholesale (1.4%)
CDW Corp.		38,000		2,281,900
Diversified Operations (1.9%)
SPX Corp. (b)		52,000		2,502,240
Viad Corp.		31,000		774,380
				3,276,620
Drugs (3.1%)
IDEC Pharmaceuticals Corp. (b)		45,000		1,580,850
IVAX Corp. (b)		55,000		1,059,300
Mylan Laboratories, Inc.		105,750		2,553,863
				5,194,013
Education (1.8%)
Career Education Corp. (b)		40,000		2,142,000
DeVry, Inc. (b)		25,000		606,750
Scholastic Corp. (b)		7,000		216,510
				2,965,260
Electronic Components/Instruments (6.8%)
Arrow Electronics, Inc. (b)		24,000		512,400
Cypress Semiconductor Corp. (b)		50,000		1,073,000
Integrated Device Technology, Inc. (b)		40,000		628,000
International Rectifier Corp. (b)		28,000		1,336,440
L-3 Communications Holdings, Inc. (b)		50,000		2,337,000
Lam Research Corp. (b)		30,000		862,200
Micrel, Inc. (b)		30,000		495,000
Microchip Technology, Inc.		65,000		2,126,150
Semtech Corp. (b)		30,000		666,000
Vishay Intertechnology, Inc. (b)		75,000		1,406,250
				11,442,440
Energy (5.3%)
Cooper Cameron Corp. (b)		20,000		856,400
ENSCO International, Inc.		45,000		1,185,750
Grant Prideco, Inc. (b)		50,000		567,000
Murphy Oil Corp.		20,000		1,179,600
Pioneer Natural Resources Co. (b)		40,000		1,058,000
Smith International, Inc. (b)		35,000		1,303,050
Weatherford International Ltd. (b)		60,000		2,085,000
XTO Energy, Inc.		26,666		631,184
				8,865,984
Environmental Services (0.6%)
Republic Services, Inc. — Class A		45,000		1,046,250

Continued

2

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Mid Cap Equity Fund	October 31, 2003

Common Stocks, continued:
	Shares		Value
Financials (0.7%)
SEI Investments Co.		41,000	$	1,193,920
Food & Beverages (2.5%)
Constellation Brands, Inc. (b)		20,000		627,400
Dean Foods Co. (b)		58,000		1,754,500
Hormel Foods Corp.		73,000		1,802,370
				4,184,270
Health Care (17.0%)
AdvancePCS, Inc. (b)		35,000		1,801,450
AmerisourceBergen Corp.		25,000		1,419,250
Apogent Technologies, Inc. (b)		50,000		1,097,500
Barr Laboratories, Inc. (b)		25,500		1,957,635
Beckman Coulter, Inc.		35,000		1,737,750
Covance, Inc. (b)		30,000		780,900
DENTSPLY International, Inc.		38,500		1,701,315
Edwards Lifesciences Corp. (b)		25,000		725,000
Express Scripts, Inc. — Class A (b)		40,000		2,196,800
Genzyme Corp. (b)		20,000		918,000
Gilead Sciences, Inc. (b)		75,000		4,093,500
Hillenbrand Industries, Inc.		30,000		1,785,900
King Pharmaceuticals, Inc. (b)		30,000		402,000
Lincare Holdings, Inc. (b)		50,000		1,947,000
Oxford Health Plans, Inc. (b)		20,000		810,000
Quest Diagnostics, Inc. (b)		44,000		2,976,600
STERIS Corp. (b)		40,000		832,800
Universal Health Services, Inc. —    Class B (b)		30,000		1,411,500
				28,594,900
Industrials (0.4%)
Teleflex, Inc.		15,000		690,150
Information Technology (0.2%)
Acxiom Corp. (b)		25,000		397,500
Insurance (1.5%)
Everest Re Group Ltd.		22,000		1,824,900
Protective Life Corp.		24,000		779,280
				2,604,180
Leisure (0.3%)
Park Place Entertainment Corp. (b)		50,000		480,000
Materials (0.6%)
Valspar Corp.		22,000		1,049,400
Media (2.5%)
Entercom Communications Corp. (b)		21,000		962,010
Media General, Inc. — Class A		10,000		660,500
Readers Digest Assoc., Inc. — Class A		25,000		368,250
Washington Post Co. — Class B		1,900		1,401,079
Westwood One, Inc. (b)		30,000		897,900
				4,289,739
Pollution Control (0.7%)
Donaldson Co., Inc.		22,000	$	1,258,840
Restaurants (1.8%)
Brinker International, Inc. (b)		40,000		1,273,200
Cheesecake Factory, Inc. (b)		17,000		678,980
Outback Steakhouse, Inc.		25,000		1,050,000
				3,002,180
Retail (8.6%)
99 Cents Only Stores (b)		35,000		1,041,950
Abercrombie & Fitch Co. — Class A (b)		48,000		1,368,000
American Eagle Outfitters, Inc. (b)		10,000		159,900
Barnes & Noble, Inc. (b)		12,000		357,600
BJ’s Wholesale Club, Inc. (b)		25,000		642,250
Coach, Inc. (b)		100,000		3,547,000
Dollar Tree Stores, Inc. (b)		50,000		1,909,000
Pier 1 Imports, Inc.		45,000		1,039,500
Ross Stores, Inc.		30,000		1,500,300
Timberland Co. — Class A (b)		20,000		1,039,000
Williams-Sonoma, Inc. (b)		50,000		1,766,500
				14,371,000
Telecommunications (0.9%)
Price Communications Corp. (b)		20,000		251,400
Telephone & Data Systems, Inc.		20,000		1,252,000
				1,503,400
Telecommunications Equipment (1.2%)
Advanced Fibre Communications, Inc. (b)		20,000		481,400
Intersil Corp. — Class A		35,000		902,650
RF Micro Devices, Inc. (b)		50,000		585,500
				1,969,550
Transportation & Shipping (1.6%)
C.H. Robinson Worldwide, Inc.		30,000		1,175,400
Expeditors International of    Washington, Inc.		40,000		1,501,600
				2,677,000
Utilities (2.0%)
DPL, Inc.		40,000		728,800
Energy East Corp.		45,000		1,010,250
National Fuel Gas Co.		40,000		894,000
Vectren Corp.		30,000		708,000
				3,341,050
TOTAL COMMON STOCKS    (Cost $136,582,648)				158,494,136

Continued

3

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Mid Cap Equity Fund	October 31, 2003

Index Linked Trusts (4.1%)
	Shares	Value
Cyclical/Transportation Select    Sector SPDR	30,000	$	902,700
MidCap 400 SPDR	60,000		6,030,000
TOTAL INDEX LINKED TRUSTS    (Cost $6,648,638)			6,932,700
Investment Companies (1.9%)
Wells Fargo Prime Investment    Money Market Fund	3,246,437	$	3,246,437
TOTAL INVESTMENT COMPANIES    (Cost $3,246,437)			3,246,437
TOTAL INVESTMENTS    (Cost $146,477,723) (a) — 100.0%			168,673,273
Other assets in excess of liabilities — 0.0%			83,716
NET ASSETS — 100.0%		$	168,756,989

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$	36,257,781
Unrealized depreciation		(14,062,230	)
Net unrealized depreciation	$	22,195,551

Aggregate cost for federal income tax purposes is substantially the same.

(b) Non-income producing security.

SPDR — Standard & Poor’s Depositary Receipt

See notes to financial statements

4

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Small Cap Equity Fund	October 31, 2003

Common Stocks (98.4%)
	Shares		Value
Consumer Discretionary (16.2%)
Catalina Marketing Corp. (b)		10,100	$	178,265
Chico’s FAS, Inc. (b)		8,900		334,106
Fred’s, Inc.		17,650		665,052
Gentex Corp.		14,100		550,605
Hot Topic, Inc. (b)		14,000		401,940
RARE Hospitality International, Inc. (b)		19,200		476,160
Shuffle Master, Inc. (b)		9,700		295,268
Sonic Corp. (b)		10,900		303,129
				3,204,525
Consumer Staples (4.8%)
United Natural Foods, Inc. (b)		12,700		491,236
Whole Foods Market, Inc. (b)		7,800		462,072
				953,308
Energy (2.8%)
Newfield Exploration Co. (b)		8,000		317,840
Patina Oil & Gas Corp.		5,550		234,099
				551,939
Financials (10.7%)
Cousins Properties, Inc.		8,300		238,625
HCC Insurance Holdings, Inc.		9,900		288,486
Hilb, Rogal & Hamilton Co.		8,500		255,170
Hudson United Bancorp		4,700		170,563
Investment Technology Group, Inc. (b)		12,700		252,222
Investors Financial Services Corp.		9,300		328,569
Raymond James Financial, Inc.		9,400		383,426
SEI Investments Co.		7,100		206,752
				2,123,813
Health Care (22.6%)
Advanced Neuromodulation    Systems, Inc. (b)		6,650		272,650
ArthroCare Corp. (b)		9,200		205,620
Biosite, Inc. (b)		3,700		95,460
Cooper Cos., Inc. (The)		11,000		477,950
Exactech, Inc. (b)		16,600		269,086
IDEXX Laboratories, Inc. (b)		6,700		316,910
KV Pharmaceutical Co. — Class A (b)		27,750		666,000
Patterson Dental Co. (b)		10,300		658,994
Pharmaceutical Product    Development, Inc. (b)		7,600	$	228,532
Sunrise Senior Living, Inc. (b)		5,100		147,390
SurModics, Inc. (b)		3,900		81,939
Synovis Life Technologies, Inc. (b)		5,200		122,928
Taro Pharmaceutical Industries Ltd. (b)		5,100		327,675
Vistacare, Inc. (a) (b)		8,100		279,531
Young Innovations, Inc.		10,900		327,000
				4,477,665
Industrials (13.0%)
DRS Technologies, Inc. (b)		11,000		264,660
Knight Transportation, Inc. (b)		19,900		500,883
Right Management Consultants, Inc. (b)		17,900		323,095
Simpson Manufacturing Co., Inc. (b)		9,400		420,650
Stericycle, Inc. (b)		7,500		346,350
Teleflex, Inc.		8,800		404,888
Tetra Tech, Inc. (b)		14,000		314,720
				2,575,246
Information Technology (23.6%)
Actel Corp. (b)		6,600		178,068
Acxiom Corp. (b)		7,700		122,430
American Management Systems, Inc. (b)		12,900		190,920
ANSYS, Inc. (b)		10,400		370,656
Autodesk, Inc.		10,700		205,975
Black Box Corp.		5,000		215,300
Cymer, Inc. (b)		7,900		360,714
Global Payments, Inc.		6,900		287,385
Group 1 Software, Inc. (b)		7,500		135,375
Kronos, Inc. (b)		5,200		312,000
Open Text Corp. (b)		10,400		205,504
Photronics, Inc. (b)		11,600		249,864
ScanSource, Inc. (b)		7,900		339,700
Serena Software, Inc. (b)		8,900		153,525
TriQuint Semiconductor, Inc. (b)		13,600		97,512
Verisity Ltd. (b)		14,200		177,358
Verity, Inc. (b)		24,600		345,630
Wind River Systems, Inc. (b)		18,000		120,600
Zebra Technologies Corp. — Class A (b)		10,800		615,060
				4,683,576

Continued

5

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Small Cap Equity Fund	October 31, 2003

Common Stocks, continued:
	Shares		Value
Materials (2.1%)
Spartech Corp.		9,100	$	210,938
Valspar Corp.		4,200		200,340
				411,278
Transportation & Shipping (2.7%)
Expeditors International of    Washington, Inc.		14,300		536,822
TOTAL COMMON STOCKS    (Cost $14,837,913)				19,518,172
Investment Companies (1.5%)
Wells Fargo Prime Investment    Money Market Fund		294,500	$	294,500
TOTAL INVESTMENT COMPANIES    (Cost $294,500)				294,500
TOTAL INVESTMENTS    (Cost $15,132,413) (a) — 99.9%				19,812,672
Other assets in excess of liabilities — 0.1%				18,519
NET ASSETS — 100.0%			$	19,831,191

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$5,076,770
Unrealized depreciation	(396,511)
Net unrealized appreciation	$4,680,259

Aggregate cost for federal income tax purposes is substantially the same.

(b) Non-income producing security.

See notes to financial statements

6

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Government Income Fund	October 31, 2003

U.S. Government Agency Obligations (97.9%)
	Principal Amount		Value
Fannie Mae (41.2%)
3.88%, 3/15/05	$	900,000	$	927,469
5.25%, 6/15/06		520,000		556,730
4.38%, 10/15/06		1,945,000		2,038,285
5.00%, 1/15/07		1,000,000		1,065,769
7.13%, 3/15/07		1,000,000		1,134,286
4.25%, 7/15/07		500,000		520,926
6.63%, 10/15/07		500,000		563,531
6.00%, 5/15/08		750,000		830,447
5.38%, 11/15/11		700,000		741,548
6.13%, 3/15/12		400,000		443,419
4.50%, 5/1/33		972,486		980,971
				9,803,381
Federal Home Loan Bank (38.3%)
4.13%, 11/15/04		725,000		745,052
5.13%, 3/6/06		1,200,000		1,277,204
2.50%, 3/15/06		1,000,000		1,004,612
5.38%, 5/15/06		2,000,000		2,145,793
4.13%, 11/15/06		650,000		675,258
2.75%, 3/14/08		1,550,000		1,513,153
5.75%, 5/15/12		1,000,000		1,082,187
4.50%, 11/15/12		250,000		248,214
3.88%, 6/14/13		450,000		422,674
				9,114,147
Freddie Mac (13.9%)
4.88%, 3/15/07		1,000,000		1,063,384
5.75%, 4/15/08		400,000		439,290
5.00%, 12/1/17		1,322,854		1,343,873
4.50%, 5/1/18		468,217		467,384
				3,313,931
Government National Mortgage    Association (4.5%)
5.28%, 11/16/15		1,000,000		1,061,807
TOTAL U.S. GOVERNMENT AGENCY    OBLIGATIONS    (Cost $23,361,352)				23,293,266
U.S. Treasury Notes (1.2%)
4.00%, 11/15/12		300,000		295,465
TOTAL U.S. TREASURY NOTES    (Cost $288,983)				295,465
Investment Companies (0.0%)
	Shares		Value
Wells Fargo 100% Treasury    Money Market Fund		1,373	$	1,373
TOTAL INVESTMENT COMPANIES    (Cost $1,373)				1,373
TOTAL INVESTMENTS    (Cost $23,651,708) (a) — 99.1%				23,590,104
Other assets in excess of liabilities — 0.9%				203,603
NET ASSETS — 100.0%			$	23,793,707

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$	251,171
Unrealized depreciation		(312,775	)
Net unrealized appreciation	$	(61,604	)

Aggregate cost for federal income tax purposes is substantially the same.

See notes to financial statements

7

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Quality Income Fund	October 31, 2003

Asset Backed Securities (1.8%)
	Principal Amount		Value
Banking & Financial Services (0.4%)
CIT RV Trust, Series 1999-A, Class A3,    5.96%, 4/15/11	$	77,375	$	77,782
Green Tree Recreational, Equipment &    Consumer Trust, Series 1997-C,    Class A1, 6.49%, 2/15/18		68,570		68,708
				146,490
Utilities (1.4%)
Peco Energy Transition Trust,    Series 2001-A, Class A1, 6.52%,    12/31/10		500,000		563,141
TOTAL ASSET BACKED SECURITIES    (Cost $687,607)				709,631
Commercial Mortgage Backed Securities (7.2%)
Banking & Financial Services (7.2%)
DLJ Commercial Mortgage Corp.,    7.12%, 10/10/32		272,323		295,478
GMAC Commercial Mortgage    Securities, Inc., Series 1998-C1,    Class A1, 6.41%, 5/15/30		622,830		650,684
LB-UBS Commercial Mortgage Trust,    4.39%, 3/15/32		600,000		579,871
Nomura Asset Securities Corp., 6.59%,    3/15/30		535,000		598,062
Residential Accredit Loans, Inc.,    Series 2002-QS9, Class A3,    6.50%, 7/25/32		310,280		314,250
Washington Mutual, Inc.,    Series 2002-AR10, Class A6,    4.82%, 10/25/32		400,657		406,148
TOTAL COMMERCIAL MORTGAGE BACKED    SECURITIES    (Cost $2,895,462)				2,844,493
Corporate Bonds (52.5%)
Aerospace & Defense (0.4%)
Boeing Co., 6.13%, 2/15/33		165,000		160,713
Airlines (1.8%)
American Airlines, Inc., Series 1999-1,    7.02%, 10/15/09		500,000		498,113
Atlas Air, Inc., Series 1999-1, Class A1,    7.20%, 1/2/19		221,832		201,257
				699,370
Automotive (0.6%)
General Motors, 7.13%, 7/15/13		230,000		239,343
Banking & Financial Services (22.4%)
American Financial Group, 7.13%,    4/15/09	$	200,000	$	209,460
American General Finance, 5.38%,    10/1/12		300,000		303,152
BankBoston NA, 7.38%, 9/15/06		200,000		224,893
Barclays Bank PLC, 6.86%, 9/15/49		200,000		215,730
BB&T Corp., 6.38%, 6/30/05		500,000		534,882
Capital One Bank Co., 6.65%, 3/15/04		200,000		203,433
Core Investment Grade Trust, 4.73%,    11/30/07		300,000		310,737
Donaldson, Lufkin & Jenrette, Inc.,    6.88%, 11/1/05		200,000		217,796
Fannie Mae, 4.63%, 5/1/13		235,000		226,252
Fannie Mae, 6.63%, 11/15/30		360,000		405,625
Ford Motor Credit Co., 5.80%, 1/12/09		145,000		141,255
Ford Motor Credit Co., 7.38%, 2/1/11		200,000		203,631
Freddie Mac, 4.50%, 7/15/13		650,000		635,763
General Motors Acceptance Corp.,    MTN, 8.38%, 2/22/05		500,000		528,278
General Motors Acceptance Corp.,    8.00%, 11/1/31		50,000		51,420
Goldman Sachs Group, Inc., MTN,    7.35%, 10/1/09		250,000		289,337
Household Financial Corp., 5.75%,    1/30/07		500,000		539,834
KeyCorp, 6.75%, 3/15/06		500,000		547,021
KFW International Finance, Inc.,    4.75%, 1/24/07		200,000		213,271
Lehman Brothers Holdings, 7.75%,    1/15/05		500,000		538,627
Merrill Lynch & Co., Inc., 6.38%,    10/15/08		500,000		560,027
North Fork Bancorp., 5.00%, 8/15/12		200,000		205,896
SunTrust Bank, Inc., 6.38%, 4/1/11		250,000		277,956
Synovus Financial Corp., 7.25%,    12/15/05		500,000		551,384
Wachovia Corp., 7.45%, 7/15/05		500,000		545,229
Washington Mutual, Inc., 5.63%,    1/15/07		200,000		215,449
				8,896,338
Building & Construction (0.9%)
CRH America, Inc., 5.30%, 10/15/13		145,000		146,102
Pulte Homes, Inc., 6.38%, 5/15/33		200,000		191,186
				337,288
Cable (1.2%)
Comcast Cable Communications, Inc.,    7.13%, 6/15/13		135,000		151,508
Comcast Corp., 8.88%, 4/1/07		300,000		316,130
				467,638
Chemicals (1.5%)
E.I. Du Pont de Nemours & Co.,    8.25%, 9/15/06		500,000		577,910

Continued

8

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Quality Income Fund	October 31, 2003

Corporate Bonds, continued:
	Principal Amount		Value
Commercial Services (0.4%)
PHH Corp., 7.13%, 3/1/13	$	130,000	$	144,122
Computer Industry (0.7%)
IBM Corp., 4.88%, 10/1/06		250,000		265,227
Electric — Integrated (1.6%)
American Electric Power Co., Inc.,    6.13%, 5/15/06		135,000		144,997
Constellation Energy Group, 7.60%,    4/1/32		135,000		158,869
Firstenergy Corp., 7.38%, 11/15/31		120,000		128,192
Progress Energy, Inc., 5.85%, 10/30/08		200,000		214,733
				646,791
Energy (0.9%)
Kinder Morgan Energy Partners LP,    7.75%, 3/15/32		150,000		176,766
Tosco Corp., 7.80%, 1/1/27		150,000		179,276
				356,042
Food & Beverages (2.2%)
Coca-Cola Enterprises, 5.38%, 8/15/06		500,000		537,851
General Mills, Inc., 5.13%, 2/15/07		300,000		319,448
				857,299
Foreign Agencies (0.7%)
Ontario Province, 5.50%, 10/1/08		250,000		270,045
Health Care (0.6%)
Wyeth, 6.25%, 3/15/06		200,000		217,235
Insurance (2.1%)
Ace Ltd., 6.00%, 4/1/07		275,000		296,666
AIG SunAmerica, Inc., MTN, 5.75%,    2/16/09		500,000		537,880
				834,546
Machinery & Equipment (0.6%)
Caterpillar, Inc., 7.25%, 9/15/09		200,000		233,193
Media (2.0%)
News America Holdings, Inc., 7.70%,    10/30/25		130,000		148,623
Time Warner Communications, Inc.,    8.11%, 8/15/06		400,000		450,547
Time Warner Entertainment, Inc.,    8.38%, 7/15/33		140,000		173,773
				772,943
Research & Development (0.7%)
Science Applications International    Corp., 7.13%, 7/1/32		245,000		268,389
Restaurants (1.4%)
Darden Restaurants, Inc., 8.38%,    9/15/05		500,000		552,800
Retail (1.5%)
Kroger Co., 7.50%, 4/1/31	$	40,000	$	45,762
Target Corp., 7.50%, 2/15/05		500,000		535,704
				581,466
Telecommunications (3.0%)
AT&T Wireless Services, Inc., 8.75%,    3/1/31		69,000		82,976
British Telecom PLC, 7.88%, 12/15/05		250,000		276,810
Deutsche Telekom International    Finance, 8.25%, 6/15/05		250,000		273,143
SBC Communications, Inc., 5.88%,    2/1/12		250,000		264,758
Sprint Capital Corp., 6.88%, 11/15/28		300,000		282,321
				1,180,008
Textiles (1.4%)
VF Corp., 8.10%, 10/1/05		500,000		549,280
Tobacco (0.5%)
Altria Group, Inc., 7.00%, 7/15/05		200,000		209,566
Transportation & Shipping (2.0%)
Burlington Northern Santa Fe Corp.,    Series H, 9.25%, 10/1/06		500,000		560,399
Norfolk Southern Corp., 6.20%, 4/15/09		200,000		219,676
				780,075
Utilities (1.4%)
Niagra Mohawk Power Co., 7.75%,    5/15/06		500,000		562,512
TOTAL CORPORATE BONDS    (Cost $19,553,178)				20,660,139
U.S. Government Agency Obligations (31.6%)
Fannie Mae (10.5%)
5.00%, 8/1/17		375,285		381,295
5.50%, 8/1/17		648,004		667,451
7.00%, 2/1/26		992,377		1,047,903
6.50%, 5/1/29		202,608		210,757
6.50%, 11/1/32		363,436		377,722
5.50%, 6/1/33		946,418		955,556
5.00%, 9/1/33		497,443		490,957
				4,131,641
Freddie Mac (13.1%)
5.50%, 2/15/26		1,000,000		1,021,197
6.00%, 11/1/32		1,239,572		1,272,418
5.50%, 12/1/32		765,714		772,523
5.50%, 6/1/33		1,200,000		1,210,604
5.00%, 8/1/33		497,478		489,903
6.00%, 9/1/33		400,000		410,595
				5,177,240

Continued

9

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC Quality Income Fund	October 31, 2003

U.S. Government Agency Obligations, continued:
	Principal Amount		Value
Government National Mortgage Association (6.6%)
6.11%, 11/16/21	$	351,000	$	382,088
5.15%, 6/16/23		210,000		214,986
4.75%, 1/16/30		500,000		500,000
4.36%, 2/16/30		308,967		310,662
6.00%, 9/20/31		164,392		169,371
7.00%, 4/15/32		201,170		213,099
7.50%, 7/15/32		355,208		379,490
6.00%, 10/20/32		439,142		452,476
				2,622,172
Tennessee Valley Authority (1.4%)
6.25%, 12/15/17, Series E		500,000		551,947
TOTAL U.S. GOVERNMENT AGENCY    OBLIGATIONS    (Cost $12,356,866)				12,483,000
U.S. Treasury Notes (2.1%)
3.00%, 7/15/12		560,000		629,190
4.25%, 8/15/13		215,000		214,127
TOTAL U.S. TREASURY NOTES    (Cost $825,829)				843,317
U.S. Treasury Bonds (4.3%)
5.25%, 11/15/28		650,000		648,731
5.50%, 8/15/28		750,000		774,374
5.38%, 2/15/31		250,000		258,350
TOTAL U.S. TREASURY BONDS    (Cost $1,722,585)				1,681,455
Investment Companies (0.3%)
	Shares		Value
Wells Fargo Prime Investment    Money Market Fund		133,884	$	133,884
TOTAL INVESTMENT COMPANIES    (Cost $133,888)				133,884
TOTAL INVESTMENTS    (Cost $38,175,411) (a) — 99.8%				39,355,919
Other assets in excess of liabilities — 0.2%				98,025
NET ASSETS — 100.0%			$	39,453,944

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$	1,392,436
Unrealized depreciation		(211,928	)
Net unrealized appreciation	$	1,180,508

Aggregate cost for federal income tax purposes is substantially the same.

MTN — Medium Term Note
PLC — Public Limited Co.

See notes to financial statements

10

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC North Carolina Tax-Free Bond Fund	October 31, 2003

North Carolina Municipal Obligations (96.0%)
	Principal Amount		Value
Cabarrus County CP, 5.50%, 4/1/15,    Callable 4/1/11 @ 102	$	500,000	$	552,100
Cabarrus County GO, 5.30%, 2/1/08,    Callable 2/1/07 @ 100.5, (MBIA Insured)		935,000		1,030,033
Catawba County Memorial Hospital    Project Revenue, 4.40%, 10/1/08,    (AMBAC Insured)		1,000,000		1,086,890
Centennial Authority Hotel Tax    Revenue, Arena Project, 4.65%,    9/1/06, (FSA Insured)		1,000,000		1,081,420
Charlotte GO, Series A, 4.75%, 2/1/10,    Callable 2/1/08 @ 101		435,000		469,413
Charlotte Water & Sewer System    Revenue, Series A, 4.38%, 7/1/15		250,000		260,320
Charlotte-Mecklenburg Health Care    Systems Revenue, Series A, 4.90%,    1/15/10, Callable 1/15/07 @ 102		1,000,000		1,066,740
Cumberland County CP, Series A,    6.20%, 12/1/07, Prerefunded 12/1/04    @ 102, (AMBAC Insured)		1,535,000		1,650,876
Cumberland County Hospital Facilities    Revenue, 5.25%, 10/1/10, Callable    10/1/09 @ 101		500,000		542,270
Dare County CP, Series A, 4.50%,    5/1/04, (MBIA Insured)		500,000		508,515
Fayetteville Public Works Commission    Revenue, Series A, 5.25%, 3/1/08,    Callable 3/1/05 @ 102, (AMBAC    Insured)		1,000,000		1,069,180
High Point Water & Sewer System GO,    4.50%, 6/1/16, Callable 6/1/12 @    101, (MBIA Insured)		250,000		258,453
Iredell County Memorial Hospital    Revenue, 5.10%, 10/1/11, Callable    10/1/07 @ 101, (AMBAC Insured)		1,000,000		1,090,060
Lincoln County GO, 4.70%, 6/1/17,    Callable 6/1/12 @ 101, (FGIC    Security Insured)		250,000		260,373
North Carolina Educational Facilities    Finance Agency Revenue, Wake    Forest University Project, 5.00%,    11/1/12, Callable 11/1/07 @ 102		500,000		541,530
North Carolina Housing Finance    Agency Home Ownership Revenue,    Series A1, 4.75%, 1/1/05, AMT		500,000		517,530
North Carolina Housing Finance    Agency Home Ownership Revenue,    Series 4A, 4.45%, 1/1/07, AMT		240,000		253,781
North Carolina Housing Finance    Agency Home Ownership Revenue,    Series 4A, 4.45%,    7/1/07, AMT	$	240,000	$	254,993
North Carolina Housing Finance    Agency Home Ownership Revenue,    Series 13A, 4.95%, 7/1/14, Callable    7/1/11 @ 100, AMT		250,000		259,248
North Carolina Medical Care    Community Health Care Facilities    Revenue, Scotland Memorial Hospital    Project, 4.75%, 10/1/05, (Radian    Insured)		500,000		528,050
North Carolina Medical Care    Community Hospital Revenue,    Southeastern Regional Medical    Center Project, 5.75%, 6/1/13,    Callable 6/1/09 @ 102		525,000		568,234
North Carolina Municipal Power Agency    #1, Catawba Electric Revenue,    5.25%, 1/1/09, (MBIA-IBC Insured)		500,000		558,780
North Carolina State GO, Series A,    4.75%, 4/1/14, Callable 4/1/08 @    102		250,000		262,963
North Carolina State Public School    Building GO, 4.60%, 4/1/13,    Callable 4/1/09 @ 102		250,000		265,490
Pitt County Memorial Hospital    Revenue, 5.38%, 12/1/10, Callable    12/1/05 @ 102, Escrowed to Maturity		1,000,000		1,094,850
Pitt County Public Facilities CP,    Series A, 5.35%, 4/1/07,    (MBIA Insured)		625,000		693,588
Raleigh Durham Airport Authority    Revenue, Series A, 5.25%, 11/1/12,    Callable 5/1/11 @ 101, (FGIC    Insured)		500,000		553,700
Stanly County GO, 4.60%, 2/1/14,    Callable 2/1/11 @ 101.5 (AMBAC    Insured)		250,000		264,595
Union County Enterprise System    Revenue, 5.35%, 6/1/09, Callable    6/1/06 @ 102, (MBIA Insured)		500,000		556,990
Union County GO School, 4.75%,    3/1/13, Callable 3/1/11 @ 101		250,000		267,740
University of North Carolina    Greensboro Revenue, Series A,    4.63%, 4/1/13, Callable 4/1/11 @    101, (FSA Insured)		545,000		577,716
Wake County GO, Series A, 4.75%,    2/1/14, Callable 2/1/11 @ 101.5		500,000		535,535

Continued

11

RBC FUNDS, INC.	Schedule of Portfolio Investments (Unaudited)
RBC North Carolina Tax-Free Bond Fund	October 31, 2003

North Carolina Municipal Obligations, continued:
	Principal Amount		Value
Winston-Salem CP, Series A, 5.30%,    6/1/09, Callable 6/1/06 @ 102	$	1,000,000	$	1,105,849
Winston-Salem State University    Housing & Dining Systems Revenue,    Series B, 4.75%, 1/1/10, Callable    1/1/09 @ 101, (MBIA Insured)		500,000		543,105
Winston-Salem State University    Housing & Dining Systems Revenue,    Series B, 4.85%, 1/1/11, Callable    1/1/09 @ 101, (MBIA Insured)		500,000		539,255
TOTAL NORTH CAROLINA MUNICIPAL    OBLIGATIONS    (Cost $20,157,382)				21,670,165
Investment Companies (3.1%)
	Shares		Value
Wells Fargo National Tax-Free    Money Market Fund		711,171	$	711,171
TOTAL INVESTMENT COMPANIES    (Cost $711,171)				711,171
TOTAL INVESTMENTS    (Cost $20,868,553) (a) — 99.1%				22,381,336
Other assets in excess of liabilities — 0.9%				204,352
NET ASSETS — 100.0%			$	22,585,688

(a) Represents cost for financial reporting purposes and differs from value by unrealized appreciation
(depreciation) of securities as follows:

Unrealized appreciation	$	1,512,783
Unrealized depreciation		—
Net unrealized appreciation	$	1,512,783

Aggregate cost for federal income tax purposes is substantially the same.

AMBAC — AMBAC Indemnity Corp.
AMT — Alternative Minimum Tax
CP — Certificate of Participation
FGIC — Financial Guaranty Insurance Corp.
FSA — Financial Security Assurance
GO — General Obligation
MBIA — MBIA, Inc.

See notes to financial statements

12

RBC FUNDS, INC.
October 31, 2003

Statements of Assets and Liabilities (Unaudited)
	RBC Large Cap Equity Fund			RBC Mid Cap Equity Fund			RBC Small Cap Equity Fund			RBC Government Income Fund			RBC Quality Income Fund			RBC North Carolina Tax-Free Bond Fund
Assets:
Investments, at value    (cost $37,604,950; $146,477,722;    $15,132,413; $23,651,708;    $38,175,411; and $20,868,553,    respectively)	$	42,343,491		$	168,673,273		$	19,812,672		$	23,590,104		$	39,355,919		$	22,381,336
Cash		—			12,092			—			—			—			—
Interest and dividends receivable		17,009			85,269			423			252,814			425,509			283,672
Receivable for capital shares issued		1,155			64,288			28,157			5,172			—			—
Receivable for investments sold		—			—			—			—			120,012			—
Prepaid expenses		20,384			21,982			13,458			16,965			19,211			3,877
Total Assets		42,382,039			168,856,904			19,854,710			23,865,055			39,920,651			22,668,885
Liabilities:
Distributions payable		—			—			—			45,429			148,013			66,716
Payable for capital shares redeemed		7,957			14,653			250			6,020			—			—
Payable for investments purchased		—			—			—			—			297,001			—
Accrued expenses and other payables:
Investment advisory fees		3,232			12,831			1,507			781			2,602			864
Administration fees		693			2,749			323			391			650			321
Distribution fees		3,546			18,733			3,256			1,603			213			1,127
Other		24,192			50,949			18,183			17,124			18,228			14,169
Total Liabilities		39,620			99,915			23,519			71,348			466,707			83,197
Net Assets	$	42,342,419		$	168,756,989		$	19,831,191		$	23,793,707		$	39,453,944		$	22,585,688
Net Assets Consist Of:
Capital	$	83,003,990		$	158,941,555		$	16,788,948		$	23,362,759		$	37,069,335		$	20,644,455
Accumulated net investment    income (loss)		(157,459	)		(427,782	)		(134,447	)		—			(147,849	)		(19,969	)
Accumulated net realized gains (losses)    from investment transactions		(45,242,653	)		(11,952,335	)		(1,503,569	)		492,552			1,351,950			448,419
Net unrealized appreciation    (depreciation) on investments		4,738,541			22,195,551			4,680,259			(61,604	)		1,180,508			1,512,783
Net Assets	$	42,342,419		$	168,756,989		$	19,831,191		$	23,793,707		$	39,453,944		$	22,585,688
Net Assets:
Class A	$	8,007,107		$	62,738,734		$	5,622,708		$	5,987,057		$	649,470		$	4,450,102
Class B		2,216,082			6,815,589			2,544,774			512,597			124,468			288,101
Class I		32,119,230			99,202,666			11,663,709			17,294,053			38,680,006			17,847,485
Total	$	42,342,419		$	168,756,989		$	19,831,191		$	23,793,707		$	39,453,944		$	22,585,688
Shares Outstanding:
Class A		847,396			5,439,382			444,940			562,868			64,166			420,221
Class B		244,718			641,277			213,212			48,231			12,297			27,198
Class I		3,374,543			8,441,346			909,543			1,626,233			3,821,651			1,685,433
Total		4,466,657			14,522,005			1,567,695			2,237,332			3,898,114			2,132,852
Net Asset Values:
Class A — Offering and redemption    price per share	$	9.45		$	11.53		$	12.64		$	10.64		$	10.12		$	10.59
Class B — Offering price per share*	$	9.06		$	10.63		$	11.94		$	10.63		$	10.12		$	10.59
Class I — Offering and redemption price    per share	$	9.52		$	11.75		$	12.82		$	10.63		$	10.12		$	10.59

* Redemption price of Class B shares varies based on length of time held.

See notes to financial statements

13

RBC FUNDS, INC.
For the Six Months Ended October 31, 2003

Statements of Operations (Unaudited)
	RBC Large Cap Equity Fund			RBC Mid Cap Equity Fund			RBC Small Cap Equity Fund			RBC Government Income Fund			RBC Quality Income Fund			RBC North Carolina Tax-Free Bond Fund
Investment Income:
Interest income	$	—		$	—		$	—		$	471,119		$	1,133,234		$	548,013
Dividend income		153,901			620,128			52,919			2,433			1,766			2,385
Total Investment Income		153,901			620,128			52,919			473,552			1,135,000			550,398
Expenses:
Investment advisory fees		155,172			565,486			76,537			41,421			130,425			42,844
Administration Fees		33,252			121,177			16,401			20,711			32,607			18,362
Distribution fees — Class A		20,107			141,654			12,386			15,461			1,391			11,145
Distribution fees — Class B		11,061			35,507			11,844			2,756			591			1,665
Accounting fees		16,499			28,241			16,833			17,259			23,425			18,670
Custodian fees		3,258			9,741			2,653			2,245			4,993			1,806
Insurance fees		2,470			8,280			1,288			1,695			2,576			1,442
Legal and Audit fees		22,982			65,969			14,170			16,948			23,365			15,118
Registration and filing fees		8,759			16,399			12,003			7,072			7,875			4,326
Shareholder reports		7,319			24,925			4,027			4,329			6,501			3,981
Transfer agent fees		33,609			80,059			21,448			14,701			17,044			8,891
Directors’ fees		2,489			8,497			1,268			1,608			2,383			1,318
Other fees		4,437			12,801			2,701			3,148			4,304			2,829
Total expenses before voluntary fee    reductions		321,414			1,118,736			193,559			149,354			257,480			132,397
Expenses voluntarily reduced by:
Administrator		—			—			—			—			—			(2,448	)
Distributor		(10,054	)		(70,826	)		(6,193	)		(8,419	)		(843	)		(5,989	)
Net Expenses		311,360			1,047,910			187,366			140,935			256,637			123,960
Net Investment Income (Loss)		(157,459	)		(427,782	)		(134,447	)		332,617			878,363			426,438
Realized/Unrealized Gains (Losses)    from Investments:
Net realized gains (losses) from    investment transactions and other    dispositions		(357,028	)		1,162,857			2,169,116			1,418,422			591,564			259,747
Change in unrealized appreciation    (depreciation) on investments		6,223,515			31,129,568			2,879,768			(1,840,868	)		(1,118,610	)		(500,109	)
Net realized/unrealized gains (losses)    from investments		5,866,487			32,292,425			5,048,884			(422,446	)		(527,046	)		(240,362	)
Change in net assets resulting from    operations	$	5,709,028		$	31,864,643		$	4,914,437		$	(89,829	)	$	351,317		$	186,076

See notes to financial statements

14

RBC FUNDS, INC.

Statements of Changes in Net Assets
	RBC Large Cap Equity Fund						RBC Mid Cap Equity Fund						RBC Small Cap Equity Fund
	For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003
	(Unaudited)						(Unaudited)						(Unaudited)
From Investment Activities:
Operations:
Net investment income (loss)	$	(157,459	)	$	60,119		$	(427,782	)	$	(398,291	)	$	(134,447	)	$	(243,477	)
Net realized gains (losses) from    investment transactions and other    dispositions		(357,028	)		(27,566,941	)		1,162,857			(11,194,364	)		2,169,116			(3,444,713	)
Net realized losses from futures    contracts		—			—			—			(964,999	)		—			—
Change in unrealized appreciation    (depreciation) on investments		6,223,515			16,236,068			31,129,568			(22,484,146	)		2,879,768			(1,538,562	)
Change in net assets from operations		5,709,028			(11,270,754	)		31,864,643			(35,041,800	)		4,914,437			(5,226,752	)
Distributions to Class A Shareholders:
From net investment income		—			(7,430	)		—			—			—			—
From net realized gains from    investment transactions and futures    contracts		—			—			—			(431,775	)		—			—
Distributions to Class B Shareholders:
From net investment income		—			(84	)		—			—			—			—
From net realized gains from    investment transactions and futures    contracts		—			—			—			(91,773	)		—			—
Distributions to Class I Shareholders:
From net investment income		—			(102,196	)		—			—			—			—
From net realized gains from    investment transactions and futures    contracts		—			—			—			(911,429	)		—			—
Change in net assets from shareholder   distributions		—			(109,710	)		—			(1,434,977	)		—			—
Capital Transactions:
Proceeds from shares issued		4,702,462			11,064,718			25,790,302			61,900,000			2,395,347			11,572,346
Dividends reinvested		—			42,295			—			1,432,835			—			—
Cost of shares redeemed		(13,219,289	)		(32,862,438	)		(39,591,917	)		(60,955,952	)		(10,629,617	)		(11,858,931	)
Change in net assets from capital    transactions		(8,516,827	)		(21,755,425	)		(13,801,615	)		2,376,883			(8,234,270	)		(286,585	)
Change in net assets		(2,807,799	)		(33,135,889	)		18,063,028			(34,099,894	)		(3,319,833	)		(5,513,337	)
Net Assets:
Beginning of period		45,150,218			78,286,107			150,693,961			184,793,855			23,151,024			28,664,361
End of period	$	42,342,419		$	45,150,218		$	168,756,989		$	150,693,961		$	19,831,191		$	23,151,024
Share Transactions:
Issued		518,593			1,337,028			2,396,866			6,443,976			208,601			1,151,705
Reinvested		—			4,865			—			153,085			—			—
Redeemed		(1,458,130	)		(3,849,492	)		(3,701,229	)		(6,461,774	)		(920,269	)		(1,195,656	)
Change in shares transactions		(939,537	)		(2,507,599	)		(1,304,363	)		135,287			(711,668	)		(43,951	)

See notes to financial statements

15

RBC FUNDS, INC.

Statements of Changes in Net Assets
	RBC Government Income Fund						RBC Quality Income Fund						RBC North Carolina Tax-Free Bond Fund
	For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003
	(Unaudited)						(Unaudited)						(Unaudited)
From Investment Activities:
Operations:
Net investment income	$	332,617		$	1,225,319		$	878,363		$	2,325,888		$	426,438		$	1,012,731
Net realized gains from investment    transactions and other dispositions		1,418,422			1,061,545			591,564			916,167			259,747			276,307
Net change in unrealized appreciation    (depreciation) on investment    transactions		(1,840,868	)		569,204			(1,118,610	)		1,645,732			(500,109	)		662,001
Change in net assets from operations		(89,829	)		2,856,068			351,317			4,887,787			186,076			1,951,039
Distributions to Class A Shareholders:
From net investment income		(68,714	)		(204,394	)		(11,106	)		(21,149	)		(73,368	)		(152,357	)
From net realized gains from    investment transactions		—			—			—			(517	)		—			(17,628	)
Distributions to Class B Shareholders:
From net investment income		(4,773	)		(16,464	)		(2,058	)		(4,338	)		(4,631	)		(12,581	)
From net realized gains from    investment transactions		—			—			—			(128	)		—			(1,713	)
Distributions to Class I Shareholders:
From net investment income		(259,130	)		(1,004,461	)		(903,008	)		(2,445,484	)		(348,439	)		(847,793	)
From net realized gains from    investment transactions		—			—			—			(61,931	)		—			(91,581	)
Change in net assets from shareholder   distributions		(332,617	)		(1,225,319	)		(916,172	)		(2,533,547	)		(426,438	)		(1,123,653	)
Capital Transactions:
Proceeds from shares issued		4,083,529			18,519,228			6,446,289			14,829,282			1,125,662			3,005,523
Dividends reinvested		229,733			640,450			255,403			802,986			97,630			279,172
Cost of shares redeemed		(11,293,794	)		(19,436,211	)		(14,955,772	)		(35,226,442	)		(4,391,897	)		(9,055,257	)
Change in net assets from capital    transactions		(6,980,532	)		(276,533	)		(8,254,080	)		(19,594,174	)		(3,168,605	)		(5,770,562	)
Change in net assets		(7,402,978	)		1,354,216			(8,818,935	)		(17,239,934	)		(3,408,967	)		(4,943,176	)
Net Assets:
Beginning of period		31,196,685			29,842,469			48,272,879			65,512,813			25,994,655			30,937,831
End of period	$	23,793,707		$	31,196,685		$	39,453,944		$	48,272,879		$	22,585,688		$	25,994,655
Share Transactions:
Issued		380,509			1,749,231			634,429			1,475,219			105,036			283,408
Reinvested		21,352			60,389			24,937			79,935			9,161			26,293
Redeemed		(1,052,496	)		(1,829,882	)		(1,460,735	)		(3,512,536	)		(411,224	)		(856,700	)
Change in shares transactions		(650,635	)		(20,262	)		(801,369	)		(1,957,382	)		(297,027	)		(546,999	)

See notes to financial statements

16

RBC FUNDS, INC.

Notes to Financial Statements
October 31, 2003
(Unaudited)

1. Organization

RBC Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Company was organized as a Maryland corporation on March 1, 1994. At October 31, 2003, the Company consisted of six separate investment portfolios: RBC Large Cap Equity Fund, RBC Mid Cap Equity Fund, RBC Small Cap Equity Fund, RBC Government Income Fund, RBC Quality Income Fund, and the RBC North Carolina Tax-Free Bond Fund (individually, a “Fund”, and collectively, the “Funds”).

The Funds offer three classes of shares: Class A, Class B, and Class I shares. Class A shares are offered with no maximum front-end sales charge. Effective November 1, 2001, offerings of Class B shares were closed to new investors. Class B shares are offered to existing Class B shareholders for reinvestment of dividends and in exchange for Class B shares of other Funds. Class B shares are so offered at net asset value but are subject to a contingent deferred sales charge (“CDSC”). In addition, Class A and Class B shares pay ongoing distribution fees. Class B shares will convert automatically to Class A shares on the first business day of the month following the seventh anniversary of their purchase date. Class I shares are offered to trust or institutional clients of the Funds’ Investment Advisor as well as accounts of brokers and other financial intermediaries affiliated with RBC Financial Group.

The Funds’ investment objectives are as follows:

RBC Large Cap Equity Fund — Long-term capital appreciation. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks of large U.S. companies each having $5 billion or more in market capitalization at the time of purchase by the Fund. Investments may include securities of non-U.S. companies, and the Fund may engage in certain hedging strategies.

RBC Mid Cap Equity Fund — Long-term capital appreciation. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks of mid-sized companies that fall within the market capitalization range of companies in the Standard and Poor’s (“S&P”) MidCap 400 Composite Stock Price Index at the time of purchase by the Fund. Investments may include securities of non-U.S. Companies, and the Fund may engage in certain hedging strategies.

RBC Small Cap Equity Fund — Long-term capital appreciation. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks of small companies. Small capitalization companies are defined by the Fund as companies with a market capitalization of less than $2.0 billion at the time of purchase by the Fund. Investments may include securities of non-U.S. companies, and the Fund may engage in certain hedging strategies.

RBC Government Income Fund — Relatively high current income consistent with relative stability of principal and safety. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in U.S. Government obligations (those that are issued or guaranteed by the U.S. Government or its agencies or instrumentalities). The Fund’s investments in securities guaranteed by U.S. Government agencies are primarily mortgage backed securities. In general, its investments will have maximum maturities of ten years.

RBC Quality Income Fund — Current income and capital appreciation. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in U.S. Government obligations (those that are issued or guaranteed by the U.S. Government or its agencies or instrumentalities) and investment grade corporate debt obligations as well as other fixed income securities such as asset backed securities, mortgage backed securities and bank obligations. At least 70% of the Fund’s total assets will be invested in securities rated at the time of purchase in one of the three highest categories by nationally recognized statistical rating organizations or unrated securities of comparable quality. The Fund’s other investments may include securities rated BBB by S&P or Baa by Moody’s Investors Service (or deemed of comparable quality), preferred stocks, zero coupon obligations and convertible securities, and the Fund may invest in certain derivatives in order to lengthen or shorten its average portfolio maturity.

RBC North Carolina Tax-Free Bond Fund — High current income that is free from both federal income tax and North Carolina personal income tax, together with relative safety of principal. The Fund must normally invest at least 80% of its net assets, plus any borrowings for investment purposes, in municipal obligations issued by the State of North Carolina, its political subdivisions, and at least 80% of its total assets in bonds, although the Fund expects generally to have a higher percentage of its assets so invested. None of the Fund’s securities will have a remaining maturity of more than fifteen years.

Continued

17

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Security Valuation:

Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by an independent pricing service, the use of which has been approved by the Funds’ Board of Directors (the “Board”). In making such valuations, the pricing service utilizes both dealer-supplied valuations and electronic data processing techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. Short-term debt obligations, having a remaining maturity of 60 days or less at time of purchase are valued at amortized cost, which approximates market value, as approved by the Board.

The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities traded on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) are valued at the official closing price as reported by NASDAQ. Securities or other assets for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value, are valued at fair market value as determined in good faith by or at the direction of the Board.

Investment Transactions:

Security transactions in the Funds are accounted for on the date the security is purchased or sold (“trade date”). Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premium or discount. Dividend income is recorded on the ex-dividend date. Securities gains and losses are calculated on the identified cost basis.

Allocation of Expenses:

Expenses directly attributable to a Fund are charged to that Fund; other expenses are allocated proportionately among each Fund within the Company in relation to the net assets of each Fund or on another reasonable basis. Expenses specific to a class are charged to that class.

Financial Instruments:

Futures Contracts

A Fund may enter into certain futures contracts, including for most Funds, futures contracts based on a specific security, class of securities, foreign currency or an index, purchase or sell options on any such futures contracts and engage in related closing transactions. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. The Funds may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Company the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Company to segregate assets to cover contracts that would require it to purchase securities or currencies. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of a Fund’s futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting a Fund’s ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions.

Continued

18

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

Upon entering into a futures contract, the Funds are required to pledge to the broker an amount of cash, U.S. government securities, or other assets, equal to a certain percentage of the contract amount. This is known as the initial margin deposit. Subsequent payments, known as variation margin, are made or received by the Funds each day, depending on the daily fluctuations in fair value of the underlying index. The Funds recognize a gain or loss equal to the variation margin.

When-Issued Transactions

The Funds may engage in when-issued (to be announced) transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are valued daily and begin earning interest on the settlement date.

Distributions to Shareholders:

The RBC Large Cap Equity Fund, RBC Mid Cap Equity Fund, and RBC Small Cap Equity Fund declare and pay dividends of substantially all of their net investment income monthly. The RBC Government Income Fund, RBC Quality Income Fund, and RBC North Carolina Tax-Free Bond Fund declare dividends of substantially all of their net investment income daily and pay those dividends monthly. Each Fund will distribute, at least annually, substantially all net capital gains, if any, earned by such Fund. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassification.

3. Agreements and Other Transactions with Affiliates

On December 18, 2002, the shareholders of the RBC Funds, Inc. met and approved Voyageur Asset Management Inc. (“Voyageur” or “Advisor”) as the Company’s investment advisor effective December 30, 2002. Voyageur replaced Glenwood Capital Management, Inc., each an indirect wholly-owned subsidiary of the Royal Bank of Canada. The new advisory contracts did not change the rate of advisory fees paid by the Funds. Pursuant to the advisory contracts, the Advisor manages the investments of the Funds and continuously reviews, supervises and administers the Funds’ investments. The Advisor is responsible for placing orders for the purchase and sale of investment securities directly with brokers and dealers selected at its discretion. Under the terms of the advisory contracts the Advisor is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows: 0.70% for the RBC Large Cap Equity Fund, RBC Mid Cap Equity Fund, and the RBC Small Cap Equity Fund, 0.30 % for the RBC Government Income Fund, 0.60% for the RBC Quality Income Fund, and 0.35% for the RBC North Carolina Tax-Free Bond Fund. Certain officers of the Funds are employed by the Advisor. Such individuals are not paid any fees directly by the Funds for serving as officers of the Funds.

BISYS Fund Services Ohio, Inc. (“BISYS”) serves as the Funds’administrator (the “Administrator”), transfer agent, and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the corporate existence of the Company, maintenance of its records and the preparation of reports. Services provided under the transfer agency agreement include providing personnel and facilities to perform shareholder servicing and transfer agency related services. Under the terms of the administrative services contract, the Administrator receives a fee based on an annual percentage of 0.15% of each Fund’s average daily net assets. The fund accounting fees for the Funds are computed at the annual rate percentage of 0.03% of each Fund’s average daily net assets subject to a $30,000 per Fund annual minimum fee. The transfer agency agreement provides for a per account fee in connection with shareholder servicing.

Each of the Funds has adopted a Master Distribution 12b-1 Plan (the “Plan”) with respect to its Class A and Class B shares, in which Centura Funds Distributor, Inc. (the “Distributor”) acts as the Funds’ distributor. The Distributor is an affiliate of the Funds’Administrator and was formed specifically to distribute shares of the Funds. The Plan provides that Class A and B shares of each Fund will pay the Distributor a fee for its costs incurred in financing certain distribution and shareholder service activities related to that class.

The Plan provides for payments by each Fund to the Distributor at an annual rate not to exceed 0.50% and 1.00% of the Fund’s average daily net assets attributable to its Class A shares and Class B shares, respectively. Such fees may include a service fee totaling up to 0.25% of the average daily net assets attributable to a Fund’s Class A shares and Class B shares, respectively. Service fees are paid to securities dealers and other financial institutions for maintaining shareholder accounts and providing

Continued

19

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

related services to shareholders. Currently, the Distributor has voluntarily undertaken to limit 12b-1 fees to 0.25% for Class A shares for each Fund and 0.75% for Class B shares of the RBC Government Income Fund, RBC Quality Income Fund, and RBC North Carolina Tax-Free Bond Fund.

In addition, the Distributor also receives the proceeds of any CDSC imposed on redemptions of Class B shares. The following is a summary of the dealer commissions paid to the Distributor, and re-allowed to RBC Centura Securities, Inc., and RBC Dain Rauscher Corp. for Class B shares for the six months ended October 31, 2003:

	Distributor		RBC Centura Securities, Inc.		RBC Dain Rauscher Corp.
RBC Large Cap Equity Fund	$	16	$	820	$	115
RBC Mid Cap Equity Fund		19		691		277
RBC Small Cap Equity Fund		62		222		143
RBC Government Income Fund		—		—		372
RBC Quality Income Fund		—		—		1
RBC North Carolina Tax-Free Bond Fund		—		—		—

4. Concentration of Credit Risk

The RBC North Carolina Tax-Free Bond Fund invests substantially all of its assets in a portfolio of tax-exempt debt obligations issued by the state of North Carolina and its authorities and agencies. The issuers’abilities to meet their obligations may be affected by economic or political developments in the state of North Carolina.

5. Securities Transactions

The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended October 31, 2003 were as follows:

	Purchases		Sales
RBC Large Cap Equity Fund	$	7,243,118	$	15,925,559
RBC Mid Cap Equity Fund		3,062,788		17,904,318
RBC Small Cap Equity Fund		3,351,046		11,033,815
RBC Government Income Fund		12,163,190		18,850,151
RBC Quality Income Fund		15,384,924		25,073,536
RBC North Carolina Tax-Free Bond Fund		—		2,697,588

Continued

20

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

6. Capital Share Transactions

The Company is authorized to issue 1.05 billion shares of capital stock with a par value of $0.001. Transactions in shares of the Funds are summarized below:

	RBC Large Cap Equity Fund						RBC Mid Cap Equity Fund						RBC Small Cap Equity Fund
	For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003
	(Unaudited)						(Unaudited)						(Unaudited)
CAPITAL TRANSACTIONS:
Class A
Proceeds from shares issued	$	712,512		$	1,538,621		$	13,927,451		$	16,476,708		$	986,593		$	1,636,622
Dividends reinvested		—			7,313			—			431,044			—			—
Cost of shares redeemed		(1,408,641	)		(2,281,945	)		(10,936,351	)		(12,374,155	)		(817,505	)		(2,189,243	)
Change in Class A	$	(696,129	)	$	(736,011	)	$	2,991,100		$	4,533,597		$	169,088		$	(552,621	)
Class B
Proceeds from shares issued	$	18,382		$	9,035		$	3,847		$	101,052		$	2,300		$	60,044
Dividends reinvested		—			83			—			90,507			—			—
Cost of shares redeemed		(154,279	)		(1,176,765	)		(2,003,398	)		(4,386,652	)		(143,437	)		(726,987	)
Change in Class B	$	(135,897	)	$	(1,167,647	)	$	(1,999,551	)	$	(4,195,093	)	$	(141,137	)	$	(666,943	)
Class I
Proceeds from shares issued	$	3,971,568		$	9,517,062		$	11,859,004		$	45,322,240		$	1,406,454		$	9,875,680
Dividends reinvested		—			34,899			—			911,284			—			—
Cost of shares redeemed		(11,656,369	)		(29,403,728	)		(26,652,168	)		(44,195,145	)		(9,668,675	)		(8,942,701	)
Change in Class I	$	(7,684,801	)	$	(19,851,767	)	$	(14,793,164	)	$	2,038,379		$	(8,262,221	)	$	932,979
Net change from capital transactions	$	(8,516,827	)	$	(21,755,425	)	$	(13,801,615	)	$	2,376,883		$	(8,234,270	)	$	(286,585	)
SHARE TRANSACTIONS:
Class A
Issued		78,629			185,996			1,308,211			1,732,854			84,956			161,020
Reinvested		—			840			—			46,444			—			—
Redeemed		(154,190	)		(267,940	)		(1,029,810	)		(1,317,376	)		(71,112	)		(222,587	)
Change in Class A		(75,561	)		(81,104	)		278,401			461,922			13,844			(61,567	)
Class B
Issued		2,172			897			315			10,344			215			5,709
Reinvested		—			10			—			10,494			—			—
Redeemed		(17,745	)		(144,837	)		(206,944	)		(507,839	)		(13,464	)		(75,173	)
Change in Class B		(15,573	)		(143,930	)		(206,629	)		(487,001	)		(13,249	)		(69,464	)
Class I
Issued		437,792			1,150,135			1,088,340			4,700,778			123,430			984,976
Reinvested		—			4,015			—			96,147			—			—
Redeemed		(1,286,195	)		(3,436,715	)		(2,464,475	)		(4,636,559	)		(835,693	)		(897,896	)
Change in Class I		(848,403	)		(2,282,565	)		(1,376,135	)		160,366			(712,263	)		87,080
Net change from share transactions		(939,537	)		(2,507,599	)		(1,304,363	)		135,287			(711,668	)		(43,951	)

Continued

21

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

	RBC Government Income Fund						RBC Quality Income Fund						RBC North Carolina Tax-Free Bond Fund
	For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003			For the Six Months Ended October 31, 2003			For the Year Ended April 30, 2003
	(Unaudited)						(Unaudited)						(Unaudited)
CAPITAL TRANSACTIONS:
Class A
Proceeds from shares issued	$	1,893,510		$	3,854,740		$	284,487		$	263,717		$	163,791		$	54,693
Dividends reinvested		73,143			198,234			10,386			21,580			70,108			157,897
Cost of shares redeemed		(2,129,227	)		(3,207,198	)		(138,083	)		(297,858	)		(37,800	)		(551,453	)
Change in Class A	$	(162,574	)	$	845,776		$	156,790		$	(12,561	)	$	196,099		$	(338,863	)
Class B
Proceeds from shares issued	$	—		$	291,402		$	10,564		$	3,599		$	—		$	31,404
Dividends reinvested		3,875			11,104			2,036			4,513			3,419			11,314
Cost of shares redeemed		(72,045	)		(160,401	)		(354	)		(6,601	)		(155,848	)		(36,614	)
Change in Class B	$	(68,170	)	$	142,105		$	12,246		$	1,511		$	(152,429	)	$	6,104
Class I
Proceeds from shares issued	$	2,190,019		$	14,373,086		$	6,151,238		$	14,561,966		$	961,871		$	2,919,426
Dividends reinvested		152,715			431,112			242,981			776,893			24,103			109,961
Cost of shares redeemed		(9,092,522	)		(16,068,612	)		(14,817,335	)		(34,921,983	)		(4,198,249	)		(8,467,190	)
Change in Class I	$	(6,749,788	)	$	(1,264,414	)	$	(8,423,116	)	$	(19,583,124	)	$	(3,212,275	)	$	(5,437,803	)
Net change from capital transactions	$	(6,980,532	)	$	(276,533	)	$	(8,254,080	)	$	(19,594,174	)	$	(3,168,605	)	$	(5,770,562	)
SHARE TRANSACTIONS:
Class A
Issued		177,613			362,476			27,974			26,116			15,219			5,152
Reinvested		6,799			18,678			1,015			2,146			6,578			14,895
Redeemed		(198,466	)		(302,503	)		(13,551	)		(29,621	)		(3,591	)		(51,739	)
Change in Class A		(14,054	)		78,651			15,438			(1,359	)		18,206			(31,692	)
Class B
Issued		—			27,471			1,033			354			—			2,908
Reinvested		360			1,046			199			449			320			1,067
Redeemed		(6,714	)		(15,032	)		(35	)		(644	)		(14,470	)		(3,482	)
Change in Class B		(6,354	)		13,485			1,197			159			(14,150	)		493
Class I
Issued		202,896			1,359,284			605,422			1,448,749			89,817			275,348
Reinvested		14,193			40,665			23,723			77,340			2,263			10,331
Redeemed		(847,316	)		(1,512,347	)		(1,447,149	)		(3,482,271	)		(393,163	)		(801,479	)
Change in Class I		(630,227	)		(112,398	)		(818,004	)		(1,956,182	)		(301,083	)		(515,800	)
Net change from share transactions		(650,635	)		(20,262	)		(801,369	)		(1,957,382	)		(297,027	)		(546,999	)

Continued

22

RBC FUNDS, INC.

Notes to Financial Statements, Continued
October 31, 2003
(Unaudited)

7. Federal Income Taxes

It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable section of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gain sufficient to relieve it from all, or substantially all federal income taxes.

8. Change in Auditors

During the Funds’ fiscal year, PricewaterhouseCoopers LLP resigned as the Funds’ independent auditors on the basis it was no longer “independent” of the Funds within the meaning of their professional standards. On December 2, 2003, the Board engaged Deloitte & Touche LLP as the Funds’ new independent auditors as of that date for the remainder of the fiscal year ending April 30, 2004.

9. Subsequent Event

On December 2, 2003, the Funds’ Board approved, among other items, a Plan of Reorganization, subject to shareholder approval, whereby the Corporation would reorganize as a Delaware trust. Shareholders of the Funds will also be asked to approve, among other proposals, the election of nine Directors to the Board.

Continued

23

RBC FUNDS, INC.
RBC Large Cap Equity Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities							Distributions										Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities		Net Investment Income		Return of Capital		Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 8.33		(0.04	)	1.16		1.12		—		—		—		—		$ 9.45	13.45	%(b)	$ 8,007	1.56	%(c)	(0.86	%)(c)	1.81	%(c)	17	%
Year Ended April 30, 2003	9.87		—		(1.53	)	(1.53	)	(0.01	)	—		—		(0.01	)	8.33	(15.53	%)	7,686	1.46	%	(0.07	%)	1.71	%	90	%
Year Ended April 30, 2002	12.02		(0.02	)	(2.13	)	(2.15	)	(a	)	(a	)	—		—		9.87	(17.87	%)	9,906	1.34	%	(0.14	%)	1.59	%	33	%
Year Ended April 30, 2001	15.56		(0.04	)	(2.55	)	(2.59	)	—		—		(0.95	)	(0.95	)	12.02	(17.24	%)	14,126	1.25	%	(0.28	%)	1.50	%	31	%
Year Ended April 30, 2000	13.81		(0.02	)	2.03		2.01		(0.01	)	—		(0.25	)	(0.26	)	15.56	14.63	%	19,044	1.25	%	(0.22	%)	1.50	%	63	%
Year Ended April 30, 1999	12.60		0.10		2.19		2.29		(0.10	)	—		(0.98	)	(1.08	)	13.81	19.58	%	2,335	1.14	%	0.72	%	1.51	%	114	%
Class B
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 8.01		(0.07	)	1.12		1.05		—		—		—		—		$ 9.06	13.11	%(b)	$ 2,216	2.31	%(c)	(1.61	%)(c)	(c)	(d)	17	%
Year Ended April 30, 2003	9.56		(0.08	)	(1.47	)	(1.55	)	(a	)	—		—		—		8.01	(16.21	%)	2,085	2.21	%	(0.80	%)	(d	)	90	%
Year Ended April 30, 2002	11.73		(0.10	)	(2.07	)	(2.17	)	—		—		—		—		9.56	(18.50	%)	3,865	2.09	%	(0.89	%)	(d	)	33	%
Year Ended April 30, 2001	15.32		(0.14	)	(2.50	)	(2.64	)	—		—		(0.95	)	(0.95	)	11.73	(17.85	%)	5,990	2.00	%	(1.03	%)	(d	)	31	%
Year Ended April 30, 2000	13.70		(0.11	)	1.98		1.87		—		—		(0.25	)	(0.25	)	15.32	13.72	%	7,703	2.00	%	(0.94	%)	(d	)	63	%
Year Ended April 30, 1999	12.55		(0.01	)	2.20		2.19		(0.06	)	—		(0.98	)	(1.04	)	13.70	18.76	%	4,138	1.90	%	(0.09	%)	2.01	%	114	%
Class I
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 8.38		(0.03	)	1.17		1.14		—		—		—		—		$ 9.52	13.60	%(b)	$ 32,119	1.31	%(c)	(0.62	%)(c)	(c	)(d)	17	%
Year Ended April 30, 2003	9.92		0.03		(1.55	)	(1.52	)	(0.02	)	—		—		(0.02	)	8.38	(15.34	%)	35,379	1.21	%	0.20	%	(d	)	90	%
Year Ended April 30, 2002	12.07		0.02		(2.15	)	(2.13	)	(0.01	)	(0.01	)	—		(0.02	)	9.92	(17.71	%)	64,516	1.09	%	0.11	%	(d	)	33	%
Year Ended April 30, 2001	15.57		—		(2.55	)	(2.55	)	(a	)	—		(0.95	)	(0.95	)	12.07	(16.96	%)	149,839	1.00	%	(0.03	%)	(d	)	31	%
Year Ended April 30, 2000	13.80		0.01		2.03		2.04		(0.02	)	—		(0.25	)	(0.27	)	15.57	14.88	%	194,157	1.00	%	0.09	%	(d	)	63	%
Year Ended April 30, 1999	12.58		0.12		2.21		2.33		(0.13	)	—		(0.98	)	(1.11	)	13.80	19.94	%	139,857	0.92	%	0.82	%	1.02	%	114	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	Less than $0.01 per share.
(b)	Not annualized.
(c)	Annualized.
(d)	There were no waivers or reimbursements during the period.

See notes to financial statements

24

RBC FUNDS, INC.
RBC Mid Cap Equity Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities							Distributions									Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities		Net Investment Income		Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 9.46		(0.03	)	2.10		2.07		—		—		—		$ 11.53	21.88	%(b)	$ 62,739	1.41	%(c)	(0.65	%)(c)	1.66	%(c)	2	%
Year Ended April 30, 2003	11.73		(0.03	)	(2.15	)	(2.18	)	—		(0.09	)	(0.09	)	9.46	(18.58	%)	48,806	1.40	%	(0.37	%)	1.65	%	28	%
Year Ended April 30, 2002	11.99		(0.01	)	0.67		0.66		(0.01	)	(0.91	)	(0.92	)	11.73	5.99	%	55,143	1.37	%	(0.22	%)	1.62	%	19	%
Year Ended April 30, 2001	14.02		0.01		0.98		0.99		(0.01	)	(3.01	)	(3.02	)	11.99	5.92	%	28,312	1.31	%	0.09	%	1.56	%	66	%
Year Ended April 30, 2000	15.33		(0.02	)	2.69		2.67		—		(3.98	)	(3.98	)	14.02	21.15	%	30,374	1.31	%	(0.17	%)	1.56	%	61	%
Year Ended April 30, 1999	16.14		0.03		1.15		1.18		(0.04	)	(1.95	)	(1.99	)	15.33	8.59	%	14,034	1.28	%	0.20	%	1.53	%	142	%
Class B
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 8.75		(0.08	)	1.96		1.88		—		—		—		$ 10.63	21.49	%(b)	$ 6,816	2.17	%(c)	(1.39	%)(c)	(c	)(d)	2	%
Year Ended April 30, 2003	10.95		(0.13	)	(1.98	)	(2.11	)	—		(0.09	)	(0.09	)	8.75	(19.26	%)	7,416	2.15	%	(1.12	%)	(d	)	28	%
Year Ended April 30, 2002	11.32		(0.10	)	0.64		0.54		—		(0.91	)	(0.91	)	10.95	5.31	%	14,619	2.12	%	(0.90	%)	(d	)	19	%
Year Ended April 30, 2001	13.47		(0.08	)	0.94		0.86		—		(3.01	)	(3.01	)	11.32	5.12	%	16,514	2.06	%	(0.66	%)	(d	)	66	%
Year Ended April 30, 2000	14.97		(0.13	)	2.61		2.48		—		(3.98	)	(3.98	)	13.47	20.31	%	17,209	2.06	%	(0.90	%)	(d	)	61	%
Year Ended April 30, 1999	15.88		(0.07	)	1.12		1.05		(0.01	)	(1.95	)	(1.96	)	14.97	7.83	%	19,269	2.04	%	(0.55	%)	(d	)	142	%
Class I
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 9.62		(0.02	)	2.15		2.13		—		—		—		$ 11.75	22.14	%(b)	$ 99,203	1.16	%(c)	(0.40	%)(c)	(c	)(d)	2	%
Year Ended April 30, 2003	11.91		(0.01	)	(2.19	)	(2.20	)	—		(0.09	)	(0.09	)	9.62	(18.46	%)	94,472	1.15	%	(0.12	%)	(d	)	28	%
Year Ended April 30, 2002	12.13		0.01		0.69		0.70		(0.01	)	(0.91	)	(0.92	)	11.91	6.34	%	115,032	1.12	%	0.10	%	(d	)	19	%
Year Ended April 30, 2001	14.14		0.04		0.99		1.03		(0.03	)	(3.01	)	(3.04	)	12.13	6.17	%	120,842	1.06	%	0.35	%	(d	)	66	%
Year Ended April 30, 2000	15.37		0.01		2.74		2.75		(a	)	(3.98	)	(3.98	)	14.14	21.67	%	84,905	1.06	%	0.10	%	(d	)	61	%
Year Ended April 30, 1999	16.16		0.07		1.15		1.22		(0.06	)	(1.95	)	(2.01	)	15.37	8.93	%	138,897	1.03	%	0.46	%	(d	)	142	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	Less than $0.01 per share.
(b)	Not annualized.
(c)	Annualized.
(d)	There were no waivers or reimbursements during the period.

See notes to financial statements

25

RBC FUNDS, INC.
RBC Small Cap Equity Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities							Distributions								Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Loss		Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities		Net Investment Income	Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Loss to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.11		(0.07	)	2.60		2.53		—	—		—		$ 12.64	25.02	%(a)	$ 5,623	1.81	%(b)	(1.30	%)(b)	2.06	%(b)	16	%
Year Ended April 30, 2003	12.32		(0.12	)	(2.09	)	(2.21	)	—	—		—		10.11	(17.94	%)	4,359	1.70	%	(1.12	%)	1.95	%	120	%
Year Ended April 30, 2002	11.56		(0.11	)	1.04		0.93		—	(0.17	)	(0.17	)	12.32	8.17	%	6,069	1.61	%	(0.99	%)	1.86	%	31	%
Year Ended April 30, 2001	12.50		(0.11	)	0.08		(0.03	)	—	(0.91	)	(0.91	)	11.56	(0.43	%)	5,870	1.49	%	(0.85	%)	1.74	%	71	%
Year Ended April 30, 2000	12.69		(0.09	)	2.31		2.22		—	(2.41	)	(2.41	)	12.50	19.97	%	6,881	1.46	%	(0.80	%)	1.71	%	258	%
Year Ended April 30, 1999	14.99		(0.06	)	(1.20	)	(1.26	)	—	(1.04	)	(1.04	)	12.69	(8.05	%)	3,046	1.48	%	(0.43	%)	1.73	%	130	%
Class B
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 9.59		(0.11	)	2.46		2.35		—	—		—		$ 11.94	24.50	%(a)	$ 2,545	2.56	%(b)	(2.05	%)(b)	(b	)(c)	16	%
Year Ended April 30, 2003	11.77		(0.21	)	(1.97	)	(2.18	)	—	—		—		9.59	(18.52	%)	2,171	2.45	%	(1.87	%)	(c	)	120	%
Year Ended April 30, 2002	11.14		(0.19	)	0.99		0.80		—	(0.17	)	(0.17	)	11.77	7.30	%	3,483	2.36	%	(1.73	%)	(c	)	31	%
Year Ended April 30, 2001	12.17		(0.19	)	0.07		(0.12	)	—	(0.91	)	(0.91	)	11.14	(1.20	%)	4,159	2.24	%	(1.60	%)	(c	)	71	%
Year Ended April 30, 2000	12.50		(0.20	)	2.28		2.08		—	(2.41	)	(2.41	)	12.17	19.09	%	4,578	2.21	%	(1.53	%)	(c	)	258	%
Year Ended April 30, 1999	14.90		(0.14	)	(1.22	)	(1.36	)	—	(1.04	)	(1.04	)	12.50	(8.79	%)	5,108	2.23	%	(1.19	%)	(c	)	130	%
Class C
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.25		(0.09	)	2.66		2.57		—	—		—		$ 12.82	25.07	%(a)	$ 11,664	1.54	%(b)	(1.07	%)(b)	(b	)(c)	16	%
Year Ended April 30, 2003	12.45		(0.09	)	(2.11	)	(2.20	)	—	—		—		10.25	(17.67	%)	16,621	1.45	%	(0.87	%)	(c	)	120	%
Year Ended April 30, 2002	11.66		(0.07	)	1.03		0.96		—	(0.17	)	(0.17	)	12.45	8.36	%	19,113	1.36	%	(0.72	%)	(c	)	31	%
Year Ended April 30, 2001	12.57		(0.06	)	0.06		—		—	(0.91	)	(0.91	)	11.66	(0.17	%)	22,877	1.24	%	(0.60	%)	(c	)	71	%
Year Ended April 30, 2000	12.72		(0.07	)	2.33		2.26		—	(2.41	)	(2.41	)	12.57	20.24	%	20,645	1.21	%	(0.51	%)	(c	)	258	%
Year Ended April 30, 1999	14.99		(0.02	)	(1.21	)	(1.23	)	—	(1.04	)	(1.04	)	12.72	(7.84	%)	30,057	1.23	%	(0.19	%)	(c	)	130	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	Not annualized.
(b)	Annualized.
(c)	There were no waivers or reimbursements during the period.

See notes to financial statements

26

RBC FUNDS, INC.
RBC Government Income Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities						Distributions									Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Income	Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities		Net Investment Income		Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.80		0.12	(0.16	)	(0.04	)	(0.12	)	—		(0.12	)	$ 10.64	(0.37	%)(a)	$ 5,987	1.21	%(b)	2.22	%(b)	1.46	%(b)	45	%
Year Ended April 30, 2003	10.26		0.38	0.54		0.92		(0.38	)	—		(0.38	)	10.80	9.07	%	6,233	1.08	%	3.55	%	1.33	%	67	%
Year Ended April 30, 2002	10.14		0.51	0.12		0.63		(0.51	)	—		(0.51	)	10.26	6.28	%	5,113	1.04	%	4.93	%	1.29	%	35	%
Year Ended April 30, 2001	9.66		0.56	0.48		1.04		(0.56	)	—		(0.56	)	10.14	11.01	%	5,139	0.93	%	5.61	%	1.18	%	103	%
Year Ended April 30, 2000	10.03		0.50	(0.33	)	0.17		(0.50	)	(0.04	)	(0.54	)	9.66	1.73	%	4,493	0.88	%	5.13	%	1.13	%	60	%
Year Ended April 30, 1999	10.19		0.50	0.04		0.54		(0.50	)	(0.20	)	(0.70	)	10.03	5.38	%	678	0.84	%	4.85	%	1.09	%	104	%
Class B
For the Six Months Ended October 31, 2003 (Unaudited)	$ 10.80		0.09	(0.17	)	(0.08	)	(0.09	)	—		(0.09	)	$ 10.63	(0.72	%)(a)	$ 513	1.71	%(b)	1.73	%(b)	1.96	%(b)	45	%
Year Ended April 30, 2003	10.25		0.33	0.55		0.88		(0.33	)	—		(0.33	)	10.80	8.64	%	589	1.58	%	3.05	%	1.83	%	67	%
Year Ended April 30, 2002	10.13		0.46	0.12		0.58		(0.46	)	—		(0.46	)	10.25	5.76	%	421	1.54	%	4.42	%	1.79	%	35	%
Year Ended April 30, 2001	9.66		0.51	0.47		0.98		(0.51	)	—		(0.51	)	10.13	10.36	%	323	1.43	%	5.13	%	1.68	%	103	%
Year Ended April 30, 2000	10.03		0.45	(0.33	)	0.12		(0.45	)	(0.04	)	(0.49	)	9.66	1.23	%	232	1.38	%	4.63	%	1.63	%	60	%
Year Ended April 30, 1999	10.18		0.45	0.05		0.50		(0.45	)	(0.20	)	(0.65	)	10.03	4.96	%	195	1.35	%	4.32	%	1.60	%	104	%
Class I
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.80		0.13	(0.17	)	(0.04	)	(0.13	)	—		(0.13	)	$ 10.63	(0.34	%)(a)	$ 17,294	0.95	%(b)	2.49	%(b)	(b	)(c)	45	%
Year Ended April 30, 2003	10.26		0.40	0.54		0.94		(0.40	)	—		(0.40	)	10.80	9.34	%	24,375	0.83	%	3.82	%	(c	)	67	%
Year Ended April 30, 2002	10.14		0.53	0.12		0.65		(0.53	)	—		(0.53	)	10.26	6.55	%	24,308	0.79	%	5.19	%	(c	)	35	%
Year Ended April 30, 2001	9.66		0.58	0.48		1.06		(0.58	)	—		(0.58	)	10.14	11.29	%	33,859	0.68	%	5.87	%	(c	)	103	%
Year Ended April 30, 2000	10.03		0.53	(0.33	)	0.20		(0.53	)	(0.04	)	(0.57	)	9.66	1.99	%	43,486	0.63	%	5.31	%	(c	)	60	%
Year Ended April 30, 1999	10.19		0.52	0.04		0.56		(0.52	)	(0.20	)	(0.72	)	10.03	5.64	%	118,640	0.59	%	5.11	%	(c	)	104	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	Not annualized.
(b)	Annualized.
(c)	There were no waivers or reimbursements during the period.

See notes to financial statements

27

RBC FUNDS, INC.
RBC Quality Income Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities					Distributions									Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Income	Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities	Net Investment Income		Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.27		0.20	(0.15	)	0.05	(0.20	)	—		(0.20	)	$ 10.12	0.53	%(c)	$ 649	1.43	%(d)	3.82	%(d)	1.68	%(d)	36	%
Year Ended April 30, 2003	9.84		0.41	0.47		0.88	(0.44	)	(0.01	)	(0.45	)	10.27	9.09	%	501	1.31	%	4.03	%	1.56	%	79	%
Year Ended April 30, 2002	10.06		0.51	(0.15	)	0.36	(0.52	)	(0.06	)	(0.58	)	9.84	3.67	%	493	1.22	%	5.03	%	1.47	%	88	%
Year Ended April 30, 2001	9.50		0.58	0.58		1.16	(0.58	)	(0.02	)	(0.60	)	10.06	12.46	%	324	1.16	%	5.88	%	1.41	%	130	%
Period Ended April 30, 2000 (a)	10.00		0.50	(0.50	)	—	(0.50	)	—		(0.50	)	9.50	0.03	%(c)	240	1.34	%(d)	5.50	%(d)	1.59	%(d)	314	%
Class B
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.27		0.17	(0.14	)	0.03	(0.18	)	—		(0.18	)	$ 10.12	0.28	%(c)	$ 124	1.93	%(d)	3.31	%(d)	2.18	%(d)	36	%
Year Ended April 30, 2003	9.84		0.36	0.47		0.83	(0.39	)	(0.01	)	(0.40	)	10.27	8.54	%	114	1.81	%	3.52	%	2.06	%	79	%
Year Ended April 30, 2002	10.06		0.47	(0.15	)	0.32	(0.48	)	(0.06	)	(0.54	)	9.84	3.17	%	108	1.72	%	4.50	%	1.97	%	88	%
Period Ended April 30, 2001 (b)	9.55		0.54	0.53		1.07	(0.54	)	(0.02	)	(0.56	)	10.06	10.37	%(c)	44	1.68	%(d)	5.25	%(d)	1.90	%(d)	130	%
Class I
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.27		0.20	(0.13	)	0.07	(0.22	)	—		(0.22	)	$ 10.12	0.66	%(c)	$ 38,680	1.18	%(d)	4.05	%(d)	(d	)(e)	36	%
Year Ended April 30, 2003	9.84		0.42	0.48		0.90	(0.46	)	(0.01	)	(0.47	)	10.27	9.33	%	47,658	1.06	%	4.30	%	(e	)	79	%
Year Ended April 30, 2002	10.06		0.54	(0.15	)	0.39	(0.55	)	(0.06	)	(0.61	)	9.84	3.93	%	64,912	0.97	%	5.34	%	(e	)	88	%
Year Ended April 30, 2001	9.50		0.60	0.58		1.18	(0.60	)	(0.02	)	(0.62	)	10.06	12.74	%	77,808	0.91	%	6.10	%	(e	)	130	%
Period Ended April 30, 2000 (a)	10.00		0.52	(0.50	)	0.02	(0.52	)	—		(0.52	)	9.50	0.20	%(c)	69,558	1.09	%(d)	5.65	%(d)	1.11	%(d)	314	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	For the period from May 11, 1999 (commencement of operations) to April 30, 2000.
(b)	For the period from June 12, 2000 (commencement of operations) to April 30, 2001.
(c)	Not annualized.
(d)	Annualized.
(e)	There were no waivers or reimbursements during the period.

See notes to financial statements

28

RBC FUNDS, INC.
RBC North Carolina Tax-Free Bond Fund

Financial Highlights
(Selected data for a share outstanding throughout the period indicated)

		Investment Activities						Distributions									Ratios/Supplemental Data
	Net Asset Value, Beginning of Period		Net Investment Income	Net Realized and Unrealized Gains (Losses) on Investments		Total from Investment Activities		Net Investment Income		Net Realized Gains		Total Distributions		Net Asset Value, End of Period	Total Return*		Net Assets, End of Period (000’s)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses to Average Net Assets**		Portfolio Turnover***
Class A
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.70		0.18	(0.11	)	0.07		(0.18	)	—		(0.18	)	$ 10.59	0.62	%(a)	$ 4,450	1.21	%(b)	3.29	%(b)	1.48	%(b)	0	%
Year Ended April 30, 2003	10.39		0.36	0.35		0.71		(0.36	)	(0.04	)	(0.40	)	10.70	6.96	%	4,301	1.12	%	3.41	%	1.39	%	2	%
Year Ended April 30, 2002	10.30		0.38	0.19		0.57		(0.38	)	(0.10	)	(0.48	)	10.39	5.64	%	4,507	1.10	%	3.61	%	1.37	%	7	%
Year Ended April 30, 2001	9.91		0.40	0.39		0.79		(0.40	)	—		(0.40	)	10.30	8.04	%	4,225	1.00	%	3.88	%	1.28	%	13	%
Year Ended April 30, 2000	10.45		0.38	(0.51	)	(0.13	)	(0.39	)	(0.02	)	(0.41	)	9.91	(1.15	%)	4,554	0.98	%	3.85	%	1.26	%	14	%
Year Ended April 30, 1999	10.30		0.41	0.20		0.61		(0.41	)	(0.05	)	(0.46	)	10.45	5.96	%	4,870	0.82	%	3.89	%	1.26	%	11	%
Class B
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.70		0.15	(0.11	)	0.04		(0.15	)	—		(0.15	)	$ 10.59	0.37	%(a)	$ 288	1.71	%(b)	2.79	%(b)	1.98	%(b)	0	%
Year Ended April 30, 2003	10.40		0.31	0.34		0.65		(0.31	)	(0.04	)	(0.35	)	10.70	6.33	%	443	1.62	%	2.91	%	1.89	%	2	%
Year Ended April 30, 2002	10.30		0.32	0.20		0.52		(0.32	)	(0.10	)	(0.42	)	10.40	5.21	%	425	1.60	%	3.11	%	1.87	%	7	%
Year Ended April 30, 2001	9.92		0.34	0.38		0.72		(0.34	)	—		(0.34	)	10.30	7.39	%	439	1.50	%	3.38	%	1.77	%	13	%
Year Ended April 30, 2000	10.46		0.33	(0.51	)	(0.18	)	(0.34	)	(0.02	)	(0.36	)	9.92	(1.64	%)	449	1.48	%	3.34	%	1.76	%	14	%
Year Ended April 30, 1999	10.30		0.36	0.21		0.57		(0.36	)	(0.05	)	(0.41	)	10.46	5.53	%	570	1.32	%	3.38	%	1.76	%	11	%
Class I
For the Six Months Ended    October 31, 2003    (Unaudited)	$ 10.70		0.19	(0.11	)	0.08		(0.19	)	—		(0.19	)	$ 10.59	0.75	%(a)	$ 17,847	0.96	%(b)	3.54	%(b)	0.98	%(b)	0	%
Year Ended April 30, 2003	10.39		0.39	0.35		0.74		(0.39	)	(0.04	)	(0.43	)	10.70	7.23	%	21,251	0.87	%	3.66	%	0.89	%	2	%
Year Ended April 30, 2002	10.30		0.40	0.19		0.59		(0.40	)	(0.10	)	(0.50	)	10.39	5.90	%	26,006	0.85	%	3.86	%	0.87	%	7	%
Year Ended April 30, 2001	9.91		0.42	0.39		0.81		(0.42	)	—		(0.42	)	10.30	8.31	%	29,223	0.75	%	4.13	%	0.77	%	13	%
Year Ended April 30, 2000	10.45		0.41	(0.51	)	(0.10	)	(0.42	)	(0.02	)	(0.44	)	9.91	(0.90	%)	32,461	0.73	%	4.09	%	0.76	%	14	%
Year Ended April 30, 1999	10.30		0.43	0.20		0.63		(0.43	)	(0.05	)	(0.48	)	10.45	6.22	%	39,519	0.56	%	4.15	%	0.76	%	11	%

*	Excludes contingent deferred sales charge for class B.
**	During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio would have been as indicated.
***	Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued.
(a)	Not annualized.
(b)	Annualized.

See notes to financial statements

29

RBC Funds

For additional information on the
RBC FUNDS, call
1-800-442-3688

INVESTMENT ADVISOR
Voyageur Asset Management Inc.
90 South Seventh St. Suite 4300
Minneapolis, MN 55402

CUSTODIAN
Wells Fargo Bank Minnesota, N.A.
733 Marquette Ave.
Minneapolis, MN 55479

ADMINISTRATOR
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219

DISTRIBUTOR
Centura Funds Distributor, Inc.
3435 Stelzer Road
Columbus, OH 43219

LEGAL COUNSEL
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116

INDEPENDENT AUDITORS
Deloitte & Touche LLP
180 N. Stetson Avenue
Chicago, IL 60601

This report is for the information of the shareholders of RBC Funds. Its use in connection with any offering of the Funds’ shares is authorized only in case of a concurrent or prior delivery of the Funds’ current prospectus.

Investments in mutual funds involve risk, including possible loss of principal. RBC Funds are not deposits, guaranteed by or obligations of RBC Centura Bank or its affiliates and are not insured by the FDIC, the Federal Reserve Board or any other government agency.

ITEM 2. CODE OF ETHICS.

     (a) Disclose whether, as of the end of the period covered by the report,
     the registrant has adopted a code of ethics that applies to the
     registrant's principal executive officer, principal financial officer,
     principal accounting officer or controller, or persons performing similar
     functions, regardless of whether these individuals are employed by the
     registrant or a third party. If the registrant has not adopted such a code
     of ethics, explain why it has not done so.

NOT APPLICABLE FOR SEMI-ANNUAL REPORTING PERIODS.


ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

          (a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:

                  (i) Has at least one audit committee financial expert serving
                  on its audit committee; or

                  (ii) Does not have an audit committee financial expert serving
                  on its audit committee.

              (2) If the registrant provides the disclosure required by
              paragraph (a)(1)(i) of this Item, it must disclose the name of
              the audit committee financial expert and whether that person is
              "independent." In order to be considered "independent" for
              purposes of this Item, a member of an audit committee may not,
              other than in his or her capacity as a member of the audit
              committee, the board of directors, or any other board committee:

                  (i) Accept directly or indirectly any consulting, advisory, or
                  other compensatory fee from the issuer; or

                  (ii) Be an "interested person" of the investment company as
                  defined in Section 2(a)(19) of the Act
                  (15 U.S.C. 80a- 2(a)(19)).

               (3) If the registrant provides the disclosure required by
               paragraph (a)(1)(ii) of this Item, it must explain why it does
               not have an audit committee financial expert.

NOT APPLICABLE FOR SEMI-ANNUAL REPORTING PERIODS.


ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

         (a) Disclose, under the caption AUDIT FEES, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.

         (b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.

         (c) Disclose, under the caption TAX FEES, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.

         (d) Disclose, under the caption ALL OTHER FEES, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.

         (e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

             (2) Disclose the percentage of services described in each of
             paragraphs (b) through (d) of this Item that were approved by the
             audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
             Regulation S-X.

         (f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.

         (g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and


                                       2



is subcontracted with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser that
provides ongoing services to the registrant for each of the last two fiscal
years of the registrant.

         (h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.

NOT APPLICABLE FOR SEMI-ANNUAL REPORTING PERIODS.


ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

         (a)  If the registrant is a listed issuer as defined in Rule 10A-3
              under the Exchange Act (17CFR 240.10A-3), state whether or not
              the registrant has a separately-designated standing audit
              committee established in accordance with Section 3(a)(58)(A) of
              the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has
              such a committee, however designated, identify each committee
              member. If the entire board of directors is acting as the
              registrant's audit committee as specified in Section 3(a)(58)(B)
              of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.

         (b)  If applicable, provide the disclosure required by Rule 10A-3(d)
              under the Exchange Act (17CFR 240.10A-3(d)) regarding an
              exemption from the listing standards for all audit committees.

NOT APPLICABLE TO THE REGISTRANT.


ITEM 6. [RESERVED]


ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

         A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.

NOT APPLICABLE FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.


                                       3



ITEM 8. [RESERVED]


ITEM 9. CONTROLS AND PROCEDURES.

         (a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).

         IN THE OPINION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL
FINANCIAL OFFICER, BASED ON THEIR EVALUATION, THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO
ENSURE (I) THAT MATERIAL INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS
CONSOLIDATED SUBSIDIARIES, IS MADE KNOWN TO THEM BY OTHERS WITHIN THOSE
ENTITIES, PARTICULARLY DURING THE PERIOD IN WHICH THIS REPORT IS BEING PREPARED;
AND (II) THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM
N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS
SPECIFIED IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS.

         (b) Disclose any change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

         THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER
FINANCIAL REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL
HALF-YEAR (THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL
REPORT) THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY
AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.


ITEM 10. EXHIBITS.

         (a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.

         (a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.

NOT APPLICABLE FOR SEMI-ANNUAL REPORTING PERIODS.

         (a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.

         (b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule 30a-2(b)
under the Act of 1940. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)             RBC Funds, Inc
             -------------------------------------------------------------------

                                By  /s/ Jennifer Lammers
                                  ----------------------------------------------
                                    Jennifer Lammers
                                    President, RBC Funds, Inc.

Date 1/06/04
     ------------------

         Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

                                By  /s/ Jennifer Lammers
                                  ----------------------------------------------
                                    Jennifer Lammers
                                    President, RBC Funds, Inc.

Date 1/06/04
     ------------------

                                By  /s/ Chris Tomas
                                  ----------------------------------------------
                                    Chris Tomas
                                    Treasurer, RBC Funds, Inc.

Date 1/06/04
     ------------------


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