Bank of Montreal 2004 Annual Report Download - page 46

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BMO Financial Group Annual Report 200442
MD&A
Management’s Discussion and Analysis
Private Client Group
Group Description
Private Client Group (PCG) brings together all of BMO Financial Group’s wealth
management businesses. Operating under the BMO brand in Canada and Harris in
the United States, PCG serves a full range of North American client segments, from
mainstream to ultra-high net worth, as well as select institutional market segments.
We offer our clients a broad range of wealth management products and services,
including full-service and direct investing, private banking and investment products.
Vision
To be a provider of leading wealth management solutions in select North American
markets, helping our clients to accumulate, protect and grow their assets.
Strategies
•Deliver exceptional service and integrated wealth management solutions
to our clients.
•Grow organically by providing integrated services to BMO’s banking
clients and leveraging its broad distribution network.
•
Invest selectively in businesses where we can create incremental value.
•Drive continuous business optimization in support of sustainable
productivity improvements.
North American Private Banking
offers integrated banking, trust
and investment management services to high and ultra-high
net worth clients in Canada and the United States. We use
a client-driven model to deliver a complete range of financial
products through an advisory approach.
Investment Products
includes BMO Mutual Funds, Guardian
Group of Funds, Harris Insight Funds and BMO Term
Investments. We assist retail and commercial clients with
investment and retirement planning by providing well-
diversified investment products and solutions through multiple
distribution channels. Investment Products also provides
institutional money management services to external and
internal clients through Jones Heward Investment Counsel
and Harris Investment Management.
Challenges
•Continuing to enhance our operational efficiencies
in both Canada and the United States.
•Improving profitability in U.S. businesses.
•Sustaining revenue growth amid economic and political
uncertainty that affects market conditions and investor
confidence levels.
Our Lines of Business
Full-Service Investing
offers a full range of investing and wealth
advisory services through BMO Nesbitt Burns. Our strategy is
focused on providing our clients with the highest standard of
customized advice.
North American Direct Investing
operates as BMO InvestorLine
in Canada and Harrisdirect in the United States, providing a
self-guided investment experience for the informed long-term
investor. We work with our partners in BMO Financial Group
to enhance overall client relationships.
Strengths
•Award-winning product offerings and industry-recognized
leadership in client service.
•Strategic foothold in selected high-growth wealth markets
in the United States.
•Access to BMO’s broad client base both in Canada and the
United States.
•
Prestige, recognition and trust of the BMO, BMO Nesbitt Burns
and Guardian brands in Canada and the Harris brand in the
United States.
Key Performance Drivers 2004 2003 2002
Increase in assets under management (%) (1) 9.8 11.7 4.0
Increase in assets under management
and administration and
term deposits (%) (1) (2) 4.1 14.7 16.2
Direct brokerage average daily trades 21,518 18,367 14,046
(1) Excludes the impact of changes in the Canadian/U.S. dollar exchange rate.
(2) Excludes exit of sub-custodial assets having minimal revenue.
Gilles G. Ouellette
President and Chief Executive Officer,
Private Client Group, BMO Financial Group
and Deputy Chair, BMO Nesbitt Burns