Bank of Montreal 1999 Annual Report Download - page 59

Bank of Montreal Group of Companies 1999 Annual Report 53
Private Banking – U.S.
Expand geographic reach of Private Bank offerings:

Extended the Harris Private Bank business model through the
Chicago-area community banking network.

Through two joint marketing ventures with Bancomer, began
provid
ing wealthy and affluent Mexicans with high-quality banking
products
through Harris Bank in Chicago and through Harris Trust
Bank of Arizona.

Harris Private Bank became one of the first banks in the United
States to provide its clients with the ability to monitor their invest-
ment portfolios and trust accounts online.
Introduce products tailored to meet clients’ unique needs:

A Premium Investment Program was implemented to serve clients
who require a managed account under $1 million, consisting of
multiple families of mutual funds and selected individual securities.

A distinct product offering is now provided to all affluent and
wealthy clients using Private Banking services.
Institutional Asset Management
Consistently achieve solid investment performance†:

The majority of Harris Insight Funds (51% by assets) are in the top
performance quartile
‡
and 80% are in the top two quartiles
‡
for the
12 months ended September 30, 1999.

Four out of five Jones Heward Funds, managed by
Jones Heward
Investment Counsel,
are top-two quartile‡performers for the year
ended September 30, 1999.

Jones Heward and Harris Investment Management manage 91%
of the assets of First Canadian Funds. Of those assets, 62% are
in the first or second performance quartiles‡for the year ended
September 30, 1999.
†
Past performance is not necessarily an indicator of future performance.
‡
The quartile rankings are calculated by Lipper Analytical Services. Lipper Analytical Services
calculate performance results of funds with similar objectives.
Nesbitt Burns Gateway is a trade mark of Nesbitt Burns Corporation Limited/La Corporation
Nesbitt Burns Limitée, used under license.
Veev®is a trade mark of 724 Solutions Inc. (Bank of Montreal is an authorized user.)
Full-Service Investing
Provide leading-edge research, product and technology
support to Investment Advisors for better client service:

Nesbitt Burns’ Economics team was ranked num ber one in Canada
in the 1999 Brendan Wood International Survey (as was the
Canadian equity research team). The Economics team
is led by
Chief Economist Sherry Cooper.

Investment Advisors can now offer their clients an Education Planner
and a Self-Directed RESP product. They are better able to serve
their clients using an improved contact management system.
Offer innovative ways for clients to monitor their
investment portfolios:

Launched Nesbitt Burns Gateway® ,aservicethatallowsclientstoview
their accounts via the Internet, track model portfolios and more.
Over 16,000 clients went online in the first nine months.

Partnered with 724 Solutions and Bell Mobility in the introduction
of Veev®wireless service, which provides “anywhere” access to
banking and investment accounts to users of wireless devices such
as palm computing devices.
Private Banking – Canada
Continue to expand capability to meet the wealth
management needs of wealthy and affluent clients:

Laid the groundwork for an integrated offering of wealth manage-
ment services in Canada.

Implemented a sophisticated computer-supported profiling process
to better determine clients’ individual investment objectives and
risk tolerance.
Enhance profitability by achieving economies of scale
in Canadian operations:

Launched Agent for Executor service, to assist Bank clients
who have been appointed as executors and are unable to fulfil
their responsibilities or require additional expertise.

In conjunction with Nesbitt Burns, introduced a package of back-
office services (trade settlement, custodial and reporting services
and trustee services) for independent Investment Counselors.
Key Business Strategies for 2000
With the organizational groundwork for PCG in place, work on implementation of strategic initiatives will proceed during fiscal 2000. These
initiatives were identified as offering the greatest opportunity for value creation, following a disciplined and intensive analysis of the PCG
businesses, their position in the evolving competitive landscape, and the group’s capability to capitalize on the market potential.
An overriding focus on meeting clients’ growing demands for flexibil-
ity and expertise has shaped PCG’s decisions to invest principally
in people and technology. This focus is a foundation of PCG’s business
strategies for 2000. Essential elements of the strategies are to:

Co-ordinate distribution channels to ensure clients are connected
to the full range of specialists, products and
access points required
to meet their individual needs.

Develop targeted value propositions based on well-researched
insights into client behaviours and preferences.

Consolidate the components of the business and adopt a North
American focus.

Position the group to achieve efficiencies by moving to common
technology platforms and rationalizing products and operations.
PCG’s initiatives in 2000 are designed to improve product and
ser-
vice offerings, operating strategies, and co-ordination of distribu
tion
channels serving the Canadian mainstream and affluent markets.

A new Investment Funds Specialist sales force will operate within
the branch network, with a mandate to assist clients to develop
and implement an investment plan. Investment Funds Specialists
will offer innovative new asset management products, propri-
etary deposit products and mutual funds, as well as selected
third-party investment options.

The mandate of the First Canadian Funds call centre will be
expanded to include retail investment products. Full “virtual”
integration with mbanx Direct is planned, ensuring that all
clients have convenient access to the highest quality of invest-
ment service, products and advice.

Additional Nesbitt Burns Investment Advisors will be hired and
trained to provide retirement and investment planning/advice
an d
insurance services.* Investment Advisors resident in the Bank’s
branches will work closely with Investment Funds Specialists to
provide the full spectrum of wealth management services to clients.

Clients with the most complex situations will be served by
a co-ordinated, dedicated team of financial professionals offer-
ing an integrated array of customized products and services,
including investment management, brokerage, trust, estate, tax
planning, financing and banking.
*Insurance is offered through a separate subsidiary of Nesbitt Burns.