Bank of America 2003 Annual Report Download - page 9

Raising the Bar in Wealth Management
$474 billion
As Bank of America’s affluent
customers achieve greater
success, their financial
affairs become increasingly
complex. Custom-tailored banking
and investing services have always
been available to the very wealthy.
However, investors with less than
$3 million in investable assets have
sometimes found it difficult to acquire
the counsel of skilled and experienced
advisors together with the conven-
ience and scope of banking and
investing solutions offered by a lead-
ing financial institution.
To bridge this gap, in 2003 Bank of
America launched a unique cross-dis-
cipline service called Premier Banking
and Investments. Intended to set a
new standard for the industry, this
service was based on extensive
research into clients’ needs.
A skilled Premier Banking client
manager brings the banking expertise;
a highly trained, experienced financial
advisor from our brokerage company,
Banc of America Investment Services,
Inc., provides the investment planning
skills. More than 1,700 client managers
and financial advisors were hand-
picked and trained to work together to
deliver customized solutions that are
exceptionally convenient, balanced for
the best mix of risk and reward, and
tailored to the client’s financial goals.
We continue to refine the model
as we find new ways to add value for
our clients.
Today, relationship teams serve
more than 100,000 clients from coast
to coast. These teams helped to drive
higher investment balances and out-
performed their peers in selling credit
products and in growing the total value
of deposit accounts in 2003. They also
achieved dramatically higher client
satisfaction scores. This across-the-
board increase in every key perform-
ance measure reflects the true power
of an integrated client relationship,
both for our clients and for the bank.
Everything works together. Finan-
cial needs are no longer treated as iso-
lated transactions. Credit can be used
to increase cash flow. Savings can be
put to work productively with long-term
investments. A mortgage is not just a
mortgage, but an integral component
of the client’s overall financial plan.
A customized financial plan is the
centerpiece of Premier Banking &
Investments. The relationship team
guides clients through a process of dis-
covery, analysis and implementation—
the point where in-depth research
becomes a working financial plan sup-
ported by specialized expertise in asset
allocation and trust and wealth trans-
fer. The plan changes as the client’s
objectives evolve—from accumulating
assets, to funding a child’s education, to
building a secure retirement portfolio.
Our Consulting Services Group
(CSG) offers Private Bank
and Premier Banking and
Investments (PB&I) clients a
range of investment choices,
along with rigorous, ongoing
monitoring of the people and
philosophy driving investment
performance. CSG aligns its
own interests with the clients’
by basing its fees on the value
of assets invested, so investors
can focus on long-term goals
rather than trading fees.
CSG clients can access
more than 50 top investment
managers and select from
more than 90 portfolios,
including stock, bond and
international, many of which
would be harder for individuals
to access on their own.
Clients can customize their
portfolios and retain ownership
of the underlying securities to
control their tax liability and
follow personal investment
preferences.
PB&I clients also can invest
in managed portfolios of
preselected funds structured
to meet their risk and return
goals, giving them the simpli-
city and peace of mind of
having a single account with
assets monitored by CSG.
In just two years, CSG has
opened 22,000 accounts; in
2003, it more than quadrupled
the assets it manages.
BANK OF AMERICA 2003 15
Managing Today’s
Complex Wealth
Clients of The Private Bank
have told us they want a com-
prehensive suite of solutions
that is part of a thoughtful
wealth management plan
for themselves and their
families. So we created an
innovative new business
model that combines all of
Bank of America’s consider-
able resources, including
banking, credit, investment
and trust and wealth transfer
services, delivered by expert
client management teams.
With offices in 39 markets,
The Private Bank serves
some of the nation’s wealthi-
est and most sophisticated
families, including 40% of
the Forbes 400.
of their assets to Bank of America
High-Net-Worth and Affluent Clients Get World-Class Solutions
In 2003, clients entrusted
■Our new Premier Banking and Investments teams provide custom-tailored service and advice to affluent clients.
■The Private Bank serves some of the nation’s wealthiest and most sophisticated families.
■Our Consulting Services Group more than quadrupled assets under management in 2003.
Highlights