WEALTH MANAGEMENT businesses serve affluent and high net worth clients around the world and provide asset management and estate and trust services directly to clients and through internal partners and third-party distributors. This segment comprises Canadian Wealth Management, U.S. & International Wealth Management and Global Asset Management. We are a market leader in Canadian wealth and asset management, and we have strong and growing businesses in the U.S. and internationally. With more than 4,000 financial consultants, advisors, private bankers and trust officers in 24 countries, we help clients grow, protect and transfer their wealth.

 
  2008 Key performance highlights
•  Net income decreased $97 million, or 13%, from last year primarily due to lower transaction activity amid continued uncertainty in global financial markets and the combined impact of the items related to the Reserve Primary Fund and auction rate securities (described in the Wealth Management section of the MD&A).
•  Total revenue was relatively flat to last year. Lower transaction volumes, a decline in the fair value of certain securities held to economically hedge our stock-based compensation plan, and the unfavourable impact of the stronger Canadian dollar were mostly offset by recent acquisitions and solid growth in fee-based client assets for most of the year.
•  Assets under management increased $61 billion, or 38%, from last year, reflecting the acquisition of PH&N and strong net mutual fund sales for most of the year.
•  Assets under administration increased $7 billion, or 1%, from last year, reflecting the favourable impact of the stronger U.S. dollar on the translation of our U.S. dollar-denominated assets under administration, as at October 31, 2008. Assets under administration also increased, reflecting the acquisition of FBW, partially offset by lower client assets due to uncertainty in global financial markets.
   
  Business achievements in 2008
•   RBC’s strength and stability, combined with the attractiveness of our Wealth Management platform and the acquisitions made by our businesses, have enabled us to grow to more than 4,000 client-facing advisors.
•   In acquiring PH&N, we established ourselves as the leading provider of retail, high net worth, and institutional asset management services, and became one of the top pension plan managers in Canada, as measured by assets under management.
•   We are now the largest fund company in Canada with 16% market share, leading the industry with $8.8 billion in total mutual fund net sales in fiscal 2008.
•   Adding the PH&N private client team to our existing capability also made us one of the largest private investment counselling firms in Canada, with market strengths coast to coast.
•  We continued to offer our clients a full range of investment advice and planning services, supported by a team of experts in financial and retirement planning, tax, law, and trusts and estates. Access to this specialized wealth management services team in Canada is one reason our investment advisors gave us top marks in a satisfaction survey of bank-owned, regional and national independent investment dealers (Investment Executive 2008 Brokerage Report Card).
•  U.S. clients gained access to the global capabilities of RBC when we converted to a single U.S. broker-dealer platform with Capital Markets. Acquiring FBW significantly expanded our presence in key U.S. regions and added more than 300 financial consultants. We now operate 204 retail branches in 41 states.
•  We opened a new office with Capital Markets in Mumbai, India, while our new office in Santiago, Chile, broadened our presence in Latin America.
•  We were named the top provider of trust services in the U.K., and the highest-ranked Canadian firm in Latin America (Euromoney).
•  Our asset management business continued to deliver strong investment performance, while keeping management expense ratios below the median and offering pricing options that provide clients with transparency and choice in seeking advice.
•   We were named Best Overall Fund Group in Canada and, as a result of the PH&N acquisition, Best Bond Fund Family in Canada, both for the second consecutive year (Lipper Inc.).
   
  2009 and beyond
•  We will continue working to extend our lead in the Canadian wealth and asset management markets, with client-focused products, services and strategies.
•  We plan to improve operating performance and to expand U.S. Wealth Management through organic growth and bolt-on acquisitions.
•  We plan to expand our high net worth International Wealth Management business through organic growth and bolt-on acquisitions.
• We plan to expand asset management globally by leveraging our capabilities in the institutional market and in the individual market through sub-advisory and alliance opportunities.
• We will work hard to continue attracting and retaining experienced advisors, private bankers and other professionals across all our businesses.