Bank of Montreal is looking for acquisitions for its retail investment business in the United States.

Gilles Ouellette, head of the bank’s private client group, said that it has a team looking “aggressively” for strategic acquisitions in the U.S., and it expects to consummate some deals later this year as it seeks to expand its footprint in the U.S.

Bill Downe, CEO BMO Nesbitt Burns and Head of Investment Banking, noted that in each of its acquisitions to date, the firm has been able to widen the breadth of the offering. He said that the bank expects the “build out of distribution points to support revenue growth. We are seeing that as we build it, they are coming,” said Downe.

As for its latest acquisition, that of the Guardian Group of Funds, Ouellette reaffirmed that it is maintaining the independence of the advisor channel. “The channel [in which Guardian operates] is very distinct, and our intention is to keep it distinct.”

BMO CEO Tony Comper also noted that it intends to keep the Guardian brand. He called it a very strong brand, noting that it was one of the attractive features of the acquisition.

Downe observed that the private client group’s performance held in well in the quarter, despite a fall off in the market. He attributed it to the strength of the fee-based business, while trading volumes were down substantially.

“The group’s strategy is to build on BMO Nesbitt Burns’s strong market position in Canada, expand coverage in the highly profitable U.S. Midwest mid-market sector and selectively grow its presence in the energy and media and telecommunications sectors. The group is also building in specific high-return businesses such as merchant banking, securitization and credit investment management.”

Net income for the second quarter of 2001 was $48 million, compared with $59 million for the second quarter of 2000. Revenues for the quarter declined by 11% to $389 million, due to significantly reduced client trading revenues, partially offset by the effects of higher revenues from acquired businesses in the U.S. Non-interest expenses of $306 million were 6% lower than in the prior year due to lower revenue-based compensation and expense management, partially offset by incremental expenses from acquired businesses and strategic investment spending.

The fiscal 2001 objectives continue to be to increase the number of Canadian investment professionals in the bank’s branches to 700 to provide more points of contact for clients; aggressively grow U.S. wealth management business in fast-growing, affluent, technology-friendly urban centres; complete the integration of all acquired U.S. companies under the Harris brand; and continue to build on Harris Bank’s expertise in investment management and trust and estate services in order to develop wealth management business throughout North America.

It says, “In Canada and the United States, growth will also be achieved through placing specialized investment professionals in traditional retail banking locations. Providing an integrated approach to meeting clients’ needs for wealth accumulation, growth and preservation will continue to be a strategic focus throughout the balance of 2001.”