Bank of Montreal 2008 Annual Report Download - page 56

MANAGEMENT’S DISCUSSION AND ANALYSIS
MD&A
52 | BMO Financial Group 191st Annual Report 2008
Private Client Group (PCG)
“We are defining great client
experience in the wealth
management industry by
simplifying financial matters,
creating innovative solutions
and providing personalized,
expert advice.”
Who We Are
Private Client Group 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 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 solutions,
including full-service and online brokerage in Canada, and private banking and investment products in Canada and the United States.
GILLES OUELLETTE
PRESIDENT AND CHIEF EXECUTIVE OFFICER
PRIVATE CLIENT GROUP
Online Brokerage operates as BMO InvestorLine in Canada, providing self-directed investors with the ability to plan, research and manage their investing decisions in their
own way. We are focused on providing a superior client experience, understanding and anticipating our clients’ investing needs and helping them to be financially successful.
By providing an innovative and comprehensive online offering to key client segments, we will acquire new clients as well as increase investing activity among existing clients.
North American Private Banking operates as BMO Harris Private Banking in Canada and Harris Private Bank in the United States. We are focused on capitalizing
on our comprehensive wealth management capabilities and continuing to build our integrated value proposition, which delivers a unique client experience to the high
and ultra-high net worth client segments, with offerings ranging from specific individual solutions to complex team-based wealth management strategies.
Investment Products consists of Retail Investment Products and BMO Asset Management. Retail Investment Products includes BMO Mutual Funds, BMO Guardian
and BMO Term Investments. We help our clients build a confident future by providing trusted, long-term investment solutions, by understanding our clients, competitors
and industry and by having a robust multi-channel distribution capability. BMO Mutual Funds offers a targeted, comprehensive product line and supports specialized
life stage advice for key Canadian client segments. BMO Guardian provides investment products and services delivered to retail investors through financial intermediaries –
primarily the advisory channel. BMO Term Investments is focused on providing innovative principal-protected solutions and advice to the retail investment market.
BMO Asset Management, which includes Jones Heward Investment Counsel and HIM Monegy in Toronto, Harris Investment Management in Chicago and Pyrford
International in London, U.K., is focused on providing institutional and retail investment management solutions to external and internal clients.
Strengths and Value Drivers
•Prestige, recognition and trust of the BMO, BMO Nesbitt Burns and
Harris brands.
•Strong national presence in Canada.
•Strategic presence in the Chicago area and select high-growth wealth
management markets across the United States.
•Full range of award-winning client offerings and industry-recognized
leadership in client service.
•Access to BMO’s broad client base and distribution network in Canada
and the United States.
Challenges
•
Sensitivity to financial markets and a changing regulatory environment.
•Accelerating growth and improving performance in a consolidating
U.S. wealth management marketplace.
•Adding to our first-class sales force in an extremely
competitive market.
Our Lines of Business
Full-Service Investing offers a comprehensive range of investment
and wealth advisory services through BMO Nesbitt Burns. We are focused on
becoming the top-performing full-service brokerage firm in North America.
BMO Nesbitt Burns drives investment growth by leveraging our high level of
client satisfaction, the strength and breadth of our product offerings and our
performance-driven culture.
To be the wealth management solutions provider that
defines great customer experience, helping our clients
to accumulate, protect and grow their assets.
VISION
PATH TO DIFFERENTIATION
We will succeed by delivering an exceptional client experience that meets
our clients’ wealth management needs and by continuing to improve
the productivity of our sales forces through:
•Providing best-in-class wealth management solutions with a focus on
helping our clients invest and plan for their retirement years.
•Enhancing our business models and investing selectively to create
incremental value.
•Building a culture of innovation.
•Deliver an exceptional client experience and simplify complex
financial matters.
•Collaborate effectively within PCG and across BMO Financial Group.
•Attract, develop and retain superior talent.
Key Performance Metrics and Drivers 2008 2007 2006
Increase (decrease) in assets
under management (%) (1) (2) (16.2) 9.0 14.1
Increase (decrease) in assets under
management, assets under
administration
and term deposits (%) (1) (2) (3 )(9.7) 7.4 12.9
Increase (decrease) in full-time employees (%) (4) 4.2 3.9 (0.9)
(1) Excludes the impact of changes in the Canadian/U.S. dollar exchange rate.
(2) Excludes the impact of the transfer of institutional trust and custody assets to P&C U.S. in 2007.
(3) Historical figures have been adjusted for a reclassification of assets under administration
to assets under management and for an increase in assets under administration to reflect
a change in valuation.
(4) Excludes businesses sold/transferred: Harrisdirect, Retirement Plan Services, Harris Insight Funds.
STRATEGIES