TD's Fred Tomczyk: RIAs will lead the way to the affluent
TD Ameritrade president Fred Tomczyk said today that the company will rely on its registered investment advisers to help achieve TD's goal of becoming a “premier asset gatherer.”
Mr. Tomczyk, president and chief executive of TD Ameritrade Holding Corp., made the remark at his company's annual conference, in discussing the company's move to attract more-affluent customers. He noted that in years past, TD has been an aggregator of assets, but it's steadily evolving into one of the largest financial institution in the world. .
“I think we're there, with a rate on par if not better than anyone else,” Mr. Tomczyk stated. And, he added, “For people who are more affluent, our solution is you, the registered investment adviser.”
This fiscal year, TD Ameritrade hopes to add between $21 billion and $33 billion to its coffers, Mr. Tomczyk said. In the first fiscal quarter ending in December, the company added close to $9 billion in assets, and last year, it added $27 billion, he noted in a presentation.
Current assets at the holding corporation stand at $319 billion.
TD Ameritrade's leverage with
TD Bank gives it a unique advantage in the marketplace, he said.
“We are going to work in earnest with our partners to cross-sell,” he said. “It's a unique opportunity,” he said, because it's the first time a “leading retail bank” and a “leading online broker” are coming together.
TD Ameritrade achieved a record average trades per day of about 379,000 in the fiscal first quarter, and the company hopes to continue to lead there, Mr. Tomczyk said, though he noted that it won't be “without quite a fight.”
In response to a question later in his presentation, Mr. Tomczyk said that TD Ameritrade would also consider offering U.S. investments and services to Canadian customers, through Toronto-Dominion Bank, and U.K. customers through TD Waterhouse. It may also consider offering U.S. investors access to Canadian investments in the future.
The company will try to reach customers on many levels, through education, using the online brokerage “thinkorswim”, which TD acquired one year ago.
There's an “enormous appetite” for investing education, he said, noting that TD Ameritrade has had 1.6 million interactions with clients through its education channel.
Mr. Tomczyk has been chief executive of TD Ameritrade since October 2008. Before that he had been chief operating officer and and held posts at Toronto-Dominion Bank, which retains a 45% investment in TD Ameritrade.
TD executives noted today that about 1,200 advisers are present at the TD Ameritrade conference, which is taking place in Orlando, Fla., today and tomorrow.
