Bank of America 2001 Annual Report Download - page 27

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25
with the numbers of households rising 6-7% annually. In
addition, the baby boom generation is due to inherit $7.5 tril-
lion of wealth in the next ten to 20 years, in the largest gener-
ational wealth transfer in history.
These clients are seeking advice, compre-
hensive solutions and world-class products. We
are exceptionally well-positioned to compete
for this business. We occupy leading market
positions in the fastest-growing U.S. markets,
including the most attractive high-growth areas in
which affluent and high-net-worth clients are con-
centrated, such as California, Florida and Texas.
Many of these clients already do business with
Bank of America. Our opportunity is to continue
to expand our relationships with these clients by
becoming a trusted advisor and by providing supe-
rior products and the expertise our clients expect.
The Bank of America customer base is a rich
resource for referrals and client relationships.
For example, we have the opportunity to increase
our Private Bank client list by a factor of four,
simply by focusing on the qualified potential cus-
tomers within our own franchise. Recent client
focus groups have underscored that customers
are confused by the sheer number of investment
choices available to them. Clients want one trusted
advisor to handle all of their needs and to help make their
lives less complicated. Unlike many competitors, we can
offer our clients the convenience and stability of a compre-
hensive financial relationship.
We believe we have the most attractive opportunity in
the industry. Our strong national presence gives
our investment professionals the opportunity to
serve clients in the fastest-growing areas of the
country. Our professionals are focused on provid-
ing clients thoughtful, objective advice on how to
reach their long-term financial goals. And Bank
of America delivers an impressive array of world-
class solutions to help clients achieve these goals.
The combination of the leading national network
of banking centers and a growing force of profes-
sionals offering a full range of investment, securi-
ties and financial planning services gives us a
unique growth opportunity.
Access and convenience are increasingly
important. Our clients have full access to the pow-
erful distribution capability of our banking centers,
ATMs and telephone banking network, which are
unmatched in the industry. For our clients, this
means better service and unparalleled conven-
ience – something our competitors, especially the
stand-alone investment firms, cannot provide.
Along with the rest of our company, the Asset
Management Group is committed to using Six Sigma
to increase efficiency and client satisfaction. Several projects
under way are focused on improving practices for identifying
The combination of the leading national network of banking centers and
a growing
force of professionals offering a full range of investment, securities
and
financial planning services gives us a unique growth opportunity.
THE SOUTH CAROLINA OFFICE OF STATE
TREASURER recently selected Bank of
America and certain of its affiliates to manage
and distribute FUTUREScholar, a college sav-
ings program that will help individuals and
families make tax-advantaged investments in
higher education.
FUTUREScholar is a 529 college invest-
ment plan named for the section of the federal
tax code that generally allows investors
to accumulate assets for college expenses free
of federal income taxes.
Those plans are fast becoming a preferred
way to save for college. Nationally, about
$8 billion is invested in college investment
programs. That figure is expected to grow to
more than $100 billion by 2005. Investments
and earnings can be used to pay for a wide
range of college expenses – tuition, room and
board, books and supplies – at any accredited
institution in the U.S.
NATIONS FUNDS
MONEY MARKET GROWTH
■
Assets in Custody
■
Brokerage Assets
■
Assets Under Management
(Dollars in billions)
CONTINUED GROWTH IN
CLIENT ASSETS
1998 20001999 2001
1998
(Dollars in billions)
Assets Under Management
1999 2000 2001
$45
$83
$123
$59
$0
$90
$60
$30
$120
$0
$300
$400
$200
$100
$500
278
100
48
86
67
235 249
99
47
123
62
$426
$388
$460
$434
314
New Investment
Account Helps
Families Pay for
College