News Releases

BMO Nesbitt Burns is simplifying personal investing with the launch today of Canada’s first Unified Managed Account (UMA) program. The new BMO Nesbitt Burns Architect Program combines the individual security ownership and customization benefits of traditional separately managed accounts with the diversification and operational efficiencies of a mutual fund wrap program.

The new program will allow BMO Nesbitt Burns Investment Advisors to create a customized portfolio for clients that combines separately managed accounts, mutual funds, exchange traded funds (ETFs), and alternative investment products, such as hedge funds, into a single account. The Architect Program pilot begins today and will be available through all BMO Nesbitt Burns Investment Advisors across the country in September 2005.

“Clients have told us that they want a simpler way to manage their assets. Right now in this industry, you need multiple accounts and investment vehicles to get a diversified solution. Our new Architect Program consolidates everything into one account with one fee and one statement,” said Sarah Widmeyer, Vice-President & Managing Director, Managed Assets Group, BMO Nesbitt Burns.

“This is a whole new level of portfolio construction that supports our clients’ focus on their long-term investment strategy instead of on short-term individual security and manager returns. We are the first to offer the UMA in Canada and we are proud to be able to bring this to our BMO Nesbitt Burns clients,” added Widmeyer.

Other client benefits include:

• Inside of the account, all investment vehicles are separated, enabling the Investment Advisor and the client to clearly track performance;
• Coordination of all investments, meaning:
  • Automatic rebalancing
  • Better risk management
  • Strategic asset allocation
  • Intelligent cash management, including contributions, withdrawals and income requirements
  • Enhanced tax management: avoidance of superficial losses and automatic tax loss harvesting
  • Manager and style diversification at lower minimums

The minimum investment is $150,000, making it more accessible than ever before for an investor to have professional money management, as well as diversification of investment vehicles, money managers and money management styles, all within one account.

The Architect Program offers both pre-configured model portfolios designed by specialist teams at BMO Nesbitt Burns, as well as a full open-architecture offering, which allows advisors to create custom portfolios from a selection of investment products.

BMO Nesbitt Burns is launching its UMA with Placemark Investments of Dallas as the program's Overlay Portfolio Manager (OPM). Placemark is responsible for executing all trades and implementing program features, such as tax management and rebalancing. Placemark is the industry's leading OPM to financial service companies offering UMAs, and worked closely with BMO Nesbitt Burns to create enhancements specifically for the Canadian market.

“UMAs are the leading edge of managed account products because they are simpler and more efficient for clients, advisors and distributors,” said Lee Chertavian, CEO of Placemark Investments. “We have helped create many UMA programs for sponsors in the U.S. and we expect the demand for UMAs in Canada to be just as strong.”

About BMO Nesbitt Burns
BMO Nesbitt Burns is BMO Financial Group’s full service advisory firm and is part of BMO’s Private Client Group. The Private Client Group provides integrated wealth management services in Canada and the United States and has total assets under management and administration and term investments of $290 billion as at April 30, 2005.

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