RBC Asset Management is committed to providing RBC Managed Portfolios clients with personal rates of return and remains one of the few firms in the industry to offer clients this level of personal reporting. We consider this level of client reporting an important element of the RBC Managed Portfolios program.

You may have noticed a new look to the RBC Managed Portfolios statement that was mailed to you following the quarter ending March 31, 2007. One key objective of the new statement is to enhance the reporting of your personal rates of return (by moving from a monthly to a daily calculation method).

Since converting to this enhanced reporting method, we’ve received questions from clients related to the personal rate of return appearing on page one of their statement. A complete analysis of these figures and all other statement calculations has been completed and confirms the following:

• On page 1, personal rates of return reported on a 3 month and year-to-date basis are accurate. We have identified on many client statements that personal rates of return on a 1 year, 2 year and “Since Inception” basis are understated.
• All other parts of your March 31st statement are accurate, including all dollar amounts related to your account (e.g. balances, transaction values).
• This issue is unique to your March 31st statement. All information reported on your previous statements is accurate, including your personal rates of return.

Your March 31st statement is being updated to show correct personal rates of return for all time periods and will be available on June 16, 2007. If you would like to receive an updated statement please contact your relationship manager.

We are currently reviewing the calculation of personal rates of return reported on March statements. We are confident that all other components of the statement are accurate, including the dollar value of your holdings. We commit that we will report back to you the results of our review and appreciate your patience. Should you have any questions, please contact your RBC Financial Planner.