Bank of Montreal 1999 Annual Report Download - page 58

Private Client Group
52 Bank of Montreal Group of Companies 1999 Annual Report
Group Description:
The Private Client Group (PCG) brings together all of
the Bank’s wealth management capabilities in six lines
of business: retail investment products, direct and full
service investing, Canadian and U.S. private banking,
and institutional asset management.

Retail Investment Products includes the Bank’s three
families of mutual funds (53 funds in all). Term invest-
ment vehicles such as term deposits and guaranteed
investment certificates will become part of PCG in
fiscal 2000.

The rapidly growing demand for direct investing
services is met by InvestorLine Discount Brokerage
in Canada, and by Harris Investors Direct in the
United States.

The Nesbitt Burns Private Client Division offers full-
service investing, research, advisory and insurance
services in a financial planning context. Nesbitt Burns
has over 1,360 Investment Advisors across Canada who
provide full-service investment advice.

Harris Private Bank provides integrated banking, in-
vestment management and trust and estate services to
its clientele in the United States.

In Canada, banking, trust, and investment management
s
ervices are offered to high net worth clients through
15 locations. These Private Client Service Centres,
currently aligned with the Personal and Commercial
Client Group, will become part of PCG in fiscal 2000.

Jones Heward Investment Counsel and Harris Invest-
ment Management join forces to manage/advise the
majority of the Bank’s proprietary mutual funds, as
well as pension funds, endowments and other large
pools of capital on behalf of institutional investors.
Client Profile:
PCG serves four key North American market segments:
the mainstream, affluent, high net worth and institutional
markets. Clients in Canada and the United States are
able to draw on the resources of the entire group to help
meet their objectives for asset growth and preservation.
Many of PCG’s services are available through a vari-
ety of channels: traditional in-person service at Private
Client Service Centres, Bank of Montreal and Nesbitt
Burns branch networks; call centres recognized for their
exceptional service quality; and the Internet. The five
investore retail outlets, and their 37-foot “store on wheels”
counterpart, provide consumers with a unique environ-
ment to explore and experience new ways to manage
their money.
Environmental Overview:
The creation of PCG is a robust response to the globaliza-
tion
of the market for investment services. PCG is com-
mitted to investing in innovative technology to continue
to meet the explosive demands of its clients for anywhere,
anyhow, anytime access and technology-supported
information services. This investment will enhance and
support PCG’s focus on creating and sustaining personal
relationships founded on expertise, trust, and a passion-
ate commitment to doing what is right for each client.
Retail Investment Products
Continue to strengthen product line with “added-value”
offerings:

Introduced MatchMaker
®
Protection Feature, allowing mutual fund
investors concerned about market fluctuations to protect 100% of
their original investment in a MatchMaker strategic investment
portfolio over ten years. Two new funds, the Monthly Income Fund
and the International RSP Index Fund, bring the total number of
First Canadian Funds to 30.
Make it easier for clients to understand and manage
their investments:

The First Canadian Funds call centre was ranked first quartile
overall for customer communications and service in the DALBAR,
Inc. survey of 23 mutual fund companies evaluated for the year
ended September 30, 1999.

Broadcast half-hour direct response TV programs on mutual fund
investing and education savings.
Direct Investing
Achieve size needed to compete effectively in this
rapidly globalizing business:

Entered into an agreement to acquire Chicago-based Burke,
Christensen & Lewis Securities. When combined with Harris Investors
Direct, the new company will have nearly 45,000 clients and
$4.2 billion in assets under administration. The acquisition is subject
t
o regulatory approval and is expected to close in December 1999.

In Canada, InvestorLine
®
, our direct brokerage, grew by nearly
40% in 1999 to 200,000 clients and almost $6 billion in assets
under administration.
Improve electronic trading features and capacity, in the
face
of a dramatic shift in consumer preferences:

Electronic transactions (web and IVR), first introduced in May 1997,
accounted
for 80% of transactions in 1999.

InvestorLine was ranked #1 in online trading services by Canadian
Business
magazine’s survey of direct brokerages.

Enhanced electronic trading system to display online
status of
trades, and give the ability to change or cancel orders
online.
Key Business Strategies and Accomplishments in 1999
At the Group level, the focus in 1999 was on developing a deep understanding of our clients’ growing demands for expertise and flexibility
,
and laying the groundwork for the strategies that will realize the value inherent in the Bank’s wealth management businesses. Individual
businesses have formulated initiatives designed to enhance their product lines and improve access to their services.
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