TD Ameritrade reports record rise in net new assets

Though lowering its earnings outlook for the year, TD Ameritrade Holding Corp. posted a record $10.2 billion hike in net new assets in the first quarter. "Despite what some see [to the contrary], we continue to see a very healthy breakaway-broker pipeline" in the company's custody business, Fred Tomczyk, president and chief executive, said on an earnings call today. The company did not offer separate asset flows from its RIA custody business, versus its discount-brokerage operation, however. The net-new-asset total was well ahead of the $8.7 billion figure the firm reported in the previous quarter. It also far outstripped the $6.4 billion the firm brought in during the first quarter of 2009. Mr. Tomczyk said a program to attract adviser recruits who want to join an existing RIA practice "continues to work very well" and that TD Ameritrade is benefiting from a "bit of a rising tide" in the adviser breakaway market. Nevertheless, Ameritrade lowered its profit outlook to between 90 cents and $1.10 per share, down from an earlier estimate of between $1.10 and $1.40 per share. The company said lower trading volume and low interest rates, together with the seasonally slow summer months, will affect its financial results in the near term.