TD Ameritrade rakes in $10.2B in net new assets in the fourth quarter

TD Ameritrade Institutional is helping its parent company bring in higher levels of net new assets, TD Ameritrade Holding Corp. chief executive Fred Tomczyk said today as the company released earnings results. Overall, the firm garnered $10.2 billion in net new assets in the quarter ended Dec. 31, its first fiscal quarter. That's up from $9.7 billion a year ago. For its full fiscal year ended last September, TD Ameritrade reported record net new-client assets of $41.5 billion. RIAs account for 40% of the firm's $406 billion in total assets, and about 60% of its net new asset flows, Mr. Tomczyk said in an interview. He attributed the strength to TD Ameritrade's efforts at marketing to prospective recruits and servicing its existing independent advisers, as well as an open-architecture approach in developing its adviser workstation. TD Ameritrade Holding Corp. earned $152 million, or $0.27 per share in the first fiscal quarter, on $653 million in revenue. Profits were down from $163.6 million for the period ended Sept. 30, but up from $145 million in net income a year ago. Mr. Tomczyk said the environment for the individual investor business remains “tepid” as concerns over Europe dominate the headlines. The custody unit's RIAs tend to be more consistent with their investment approach, he said. RIAs “take a much more long-term view” with client assets, Mr. Tomczyk said. “They're at the low end of their normal range [for cash balances]. They're pretty much invested.”