Lines of Business Investment Products Global Direct Investing Overview of Line Performance 2003 Focus  Overview of Line Performance 2003 Focus Global Private Banking Full-Service Investing Description and Strategy Overview of Line Performance Overview of Line Performance 2003 Focus  2003 Focus Description and Strategy Description and Strategy Retail Investment Products include BMO’s family of mutual funds (Harris Insight Funds and BMO Mutual Funds), Guardian Group of Funds and term investment products. We assist  retail and commercial clients with investment and retirement planning by providing them with top-performing investment products and packaged investment solutions through multiple distribution channels. Institutional Asset Management provides traditional money management services for external and inter- nal clients, including our affiliated mutual funds in Canada and the United States. Assets under management and term investments increased in 2002, leading to an increased market share of Canadian retail investments. The above-average performance of our mutual fund families and additions to our sales team supported this growth.  b Expand our investment business with the organization’s Canadian and U.S. clients by leveraging the strengths of our internal partners. b Provide superior investment performance and client service to promote growth. b Continue to build and enhance the capabilities of the sales force, as advisory capabilities become increasingly important to investors. Full-Service Investing is comprised of BMO Nesbitt Burns in Canada and Harris AdvantEdge Investing in the United States. Our strategy is to build and manage our clients’ wealth by pro- viding customized wealth management solutions. Full-Service Investing increased its Canadian market share de- spite challenging equity markets and low client trading volumes. In early 2002, we took advantage of the consolidation of the Canadian industry to recruit additional high-quality financial professionals. We also focused our cost management efforts and strengthened our fee-based business. b Increase our share of assets through financial planning, insur- ance,managedassetandfee-basedprograms,andonlineservices. b Increase sales force productivity through improved training, professional development and performance management. b Enhance cross-marketing and cross-selling activities across BMO Financial Group. b Integrate the acquired assets and the team of professional wealth advisors of myCFO, which complement Harris Private Bank’s offerings to ultra-high net worth clients.  b Continue to focus on revenue enhancement opportunities, client retention and improved efficiency. b Make investments in the business while managing opera- tional costs. b Deepen existing relationships with affluent households and provide clients with integrated wealth management services. Despite challenging capital markets, Global Private Banking had a record year. We achieved this by maintaining existing client relationships and capitalizing on productivity enhancements. Global Private Banking offers integrated banking, trust and in- vestment management services to high and ultra-high net worth clients in Canada and the United States. We leverage a client- driven model to deliver a complete range of financial products through an advisory approach. Direct Investing, which includes BMO InvestorLine and Harris direct , provides a guided investment experience for the informed, long-term investor. We work with our partners in BMO Financial Group to enhance the overall client relationship. Harris InvestorLine, combined with the newly acquired CSFB direct and the online client accounts of Morgan Stanley Individual Investor Group formed Harris direct , now the sixth- largest direct investing firm in North America based on assets under administration. b Continue to control costs while building an exceptional in- vestment experience for guided and self-directed investors. This will be achieved primarily by providing investment  and planning tools that enhance our clients’ ability to manage their investments. b Leverage relationships across BMO Financial Group to enhance cross-marketing opportunities. Description and Strategy BMO FINANCIAL GROUP ANNUAL REPORT 2002 43