Bank of Montreal 2000 Annual Report Download - page 58

2001 Objectives
■Increase the number of investment professionals to 700 in Bank of
Montreal branches to provide more points of contact and convenience
for our clients.
■Continue to aggressively grow our U.S. wealth management business
in fast-growing, affluent, technology-friendly urban centres.
■Complete the integration of all our acquired U.S. companies under
The Harris brand.
■Through the new brand, The Harris, continue to build on Harris Bank’s
long-standing expertise in investment management and trust and
estate services in order to develop our wealth management business
throughout North America.
2000 Accomplishments
■Assets under management and administration and term deposits of
$234 billion grew by $37 billion or 18.8%, reflecting strong growth in
our client business.
■Brought together all businesses under the BMO brand in Canada and
The Harris brand in the United States.
■Acquired two U.S. direct investing firms
– Chicago-based Burke,
Christensen & Lewis Securities and Seattle-based Freeman Welwood –
bringing the number of accounts in the Bank’s North American direct
investment program to 420,000.
■Expanded physical distribution network with targeted acquisitions in
the most affluent, fastest-growing urban centres in the United States.
■
Launched the first Canadian full-service online program – BMO Nesbitt
Burns Full-Service OnLineTM5 service – offering investors the most com-
prehensive Internet-based research and investing services in the market.
■Launched BMO Harris Private Banking, providing clients with the first
truly integrated North American private banking enterprise.
■Placed 450 new investment professionals in Bank of Montreal branches
to provide Bank clients with wealth management expertise.
■Initiated the sale of third-party funds at Bank of Montreal branches, an
initiative that stimulated increased sales of BMO Mutual Funds.
34 ■Bank of Montreal Group of Companies Annual Report 2000
Review of Client Groups Performance
Private Client Group
Group Description
The Private Client Group (PCG) has total assets under manage -
ment and administration and term deposits of $234 billion
and more than 4,700 employees. It brings together all of the
Bank of Montreal Group of Companies’ wealth management
services. Operating as Private Client Group in Canada and
under The HarrisTM1in the United States, PCG provides North
American investors with the tools they need to accumulate,
protect and grow their financial assets. PCG offers clients a
broadarrayofproductsandservicesincludingretailinvest-
ment products, direct and full-service investing, private
banking and institutional money management.
Retail Investment Products
The Retail Investment Products group includes the Bank’s families of mutual
funds (33 BMO Mutual Funds – 47 by December 2000, and 18 Harris Insight®2
Funds – 21 by December 2000) as well as term investment products such as
term deposits and guaranteed investment certificates.
Client Profile
PCG serves four key North American market segments. These
are the mainstream, affluent, high net worth and institutional
markets. Clients can access PCG’s services through a variety
of channels including Bank of Montreal branches, BMO Nesbitt
Burns branches, BMO InvestorLine®service and BMO Harris
Private Banking locations in Canada, and, in the United States,
through Harris InvestorLine service and Harris Private Bank,
as well as through call centres and the Internet.
2000 Objectives
■Expand the BMO Mutual Fund call centre to include term investment
products.
■Provide clients with their choice of access via branches, telephone banking
and other electronic distribution channels.
2000 Objectives
In 2000, the Private Client Group’s overall objective was to differentiate itself in the marketplace through a focused approach designed to help clients accu-
mulate, protect and grow financial assets. The goal was to provide clients with choice and flexibility for their wealth management needs. Specifically, PCG
wanted to give clients the choice of the high-quality advice of its sales force and/or the ability to act independently using direct channels. This co-ordinated
approach allows PCG to offer clients a full suite of investment options and the ability to cross-sell and migrate clients actively between lines of business. The
combination of strong brands, highly qualified professionals and a wide range of products and services will help PCG create and sustain the solid foundation
required to become a powerful wealth management group. To achieve its objectives, PCG identified a number of key performance indicators. These included:
■Grow assets under management and administration and term deposits by 11.5%.
■Add 375 investment professionals to provide quality advice and pro-active sales within Bank branches.
■Grow business through superior advisory and planning capabilities.
■Create a sophisticated network of wealth management professionals.
■Provide expanded direct access for investing.
■Employ migration strategy across businesses to promote cross-selling of products and services.
■
Expand wealth management capabilities in key affluent U.S. markets.
■Build strong brand positioning in Canada and the United States.