RBC Royal Bank Can

RNS Number:5844F
Royal Bank of Canada
20 June 2001


UBS Asset Management to Acquire Royal Bank of Canada's Institutional Asset
Management Business

Further Strengthening Its Investment and Distribution Capabilities in the
Americas

New York, June 20, 2001 - UBS Asset Management (UBS-AM) and Royal Bank of Canada
(RBC) today announced that RT Capital Management, Inc., the institutional asset
management business of RBC, will be acquired by UBS-AM for a maximum of CAD 350
million, (USD 230M, CHF 411M) subject to certain conditions. The transaction is
expected to close by Sept. 30,2001, pending regulatory approvals.

RT Capital will be renamed Brinson Canada upon closing, complementing the
Brinson Partners and Brinson Advisors brand names used by UBS-AM in the
Americas. Brinson Canada will continue under the leadership of its current
chairman and chief executive officer, Michael Wilson. Wilson, who served as
Canada's federal Minister of Finance from 1984 to 1991, will report to Benjamin
F. Lenhardt Jr., head of UBS-AM in the Americas, and president and chief
executive officer of Brinson Partners.

RT Capital is a leading third-party asset manager in Canada, with more than CAD
31 billion (USD 20B, CHF 36B) in assets under management. The firm has a long
history in Canadian institutional fund management, and a diverse client base
which includes corporate and public fund plan sponsors, endowments and insurance
companies. RT Capital also comprises one of the largest institutional fund
distribution networks in Canada, and provides wholesale distribution through
several major insurers.

"RT Capital is an ideal addition to UBS Asset Management's investment
capabilities in the Americas," said Benjamin F. Lenhardt. "The two organizations
are an excellent cultural fit, both having the same client-focused
organizational structures and similar fundamental-based investment philosophies.
Canadian clients will see little change in investment processes and RT Capital
will continue to manage its Canadian client relationships. RT Capital's market
leadership position in Canada, UBS Asset Management's global investment platform
as well as our institutional and wholesale expertise in the U.S. translates into
broader investment and distribution capabilities for Canadian plan sponsors."

"We have found a strong strategic acquirer of the RT Capital business at a full
and fair price," said Reay Mackay, vice-chairman of RBC Investments, the RBC
division responsible for RT Capital. "This move will help RT Capital and its
employees take the business to the next level."

RBC announced in March that it was exploring strategic alternatives for RT
Capital in response to the growing needs of its clients for global investment
products and prompted by recent increases in foreign content limits for Canadian
pensions. "We began this process more than a year ago," said Wilson. "We were
very discriminating in what we were looking for, and UBS Asset Management passed
all of our selection criteria with flying colors. Our management team is excited
about the strong prospects of this global platform going forward."

The increase in foreign content limits (from 20% to 30%) for Canadian pension
funds has created a new competitive landscape in Canada, the world's fourth
largest pension market. As a result, plan sponsors and other institutional
investors are increasingly requiring that managers provide a wide variety of
U.S. and global investment capabilities. UBS-AM currently manages CAD 3.1
billion (USD 2.0B, CHF 3.6B) for 21 clients in Canada - in international and
global mandates. "The addition of RT Capital represents another step in our
mission to become a premier global asset management firm," said Peter Wuffli,
chairman and chief executive officer of UBS-AM. "RT Capital greatly expands our
existing Canadian presence, and at the same time provides UBS Asset Management
with additional diversification of client revenue sources."

Putnam Lovell Securities Inc. and RBC Dominion Securities acted as advisors to
Royal Bank in the transaction, and UBS Warburg acted as advisor to UBS Asset
Management.

About UBS & UBS Asset Management
UBS Asset Management is one of the world's most extensive globally integrated
investment management organizations, with assets under management totaling USD
369 billion as of March 31, 2001. UBS (NYSE: UBS) is a leading global financial
services firm with 71,000 employees worldwide, providing a wide range of
services to a client base that includes affluent individuals, corporations,
institutions and governments. Headquartered in Switzerland, the bank has
significant operations in all of the world's major financial centers. For more
information, visit http://www.ubs.com.

About Royal Bank of Canada
Royal Bank of Canada (NYSE, TSE: RY) is a diversified financial services
company. It provides personal and commercial banking, wealth management
services, insurance, corporate and investment banking, and transaction
processing on a global basis. The company employs more than 54,000 people who
serve 10 million personal, business and public sector customers in North America
and in 30 countries around the world. For more information, please visit
http://www.royalbank.com.

UBS
Contacts:
Royal Bank of Canada     UBS Asset Management         UBS Group
Chethan Lakshman         Greg T. Fedorinchik, CFA     David P. Walker
+1 416 974-9463          +1 312 220-7971              +1 212 713-8502

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