AMTD » Topics » Strategy

This excerpt taken from the AMTD 10-K filed Nov 13, 2009.
Strategy
 
We intend to capitalize on the growth and consolidation of the retail brokerage industry in the United States and leverage our low-cost infrastructure to grow our market share and profitability. Our long-term growth strategy is to increase our market share of total assets in client accounts by providing superior offerings to long-term investors, RIAs and active traders. We strive to enhance the client experience by providing sophisticated asset management products and services, enhanced technological capabilities that enable self-directed investors to trade and invest in new asset classes and a superior, proprietary, single-platform system to support RIAs. The key elements of our strategy are as follows:
 
  •  Focus on retail brokerage services.  We continue to focus on attracting active traders, long-term investors and RIAs to our retail brokerage services. This focused strategy is designed to enable us to maintain our low operating cost structure while offering our clients outstanding products and services.
 
  •  Provide a comprehensive long-term investor solution.  We continue to expand our suite of diversified investment products and services to best serve investors’ needs. We help clients make investment decisions by providing simple-to-use investment tools, guidance, education and objective third-party research.
 
  •  Maintain industry leadership and market share with active traders.  We help active traders make better-informed investment decisions by offering fast access to markets, insight into market trends and innovative tools such as strategy back-testing and comprehensive options research and trading capabilities.
 
  •  Continue to be a leader in the RIA industry.  We provide RIAs with comprehensive brokerage and custody services supported by our robust integrated technology platform, customized personal service and practice management solutions.


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Table of Contents

 
  •  Leverage our infrastructure to add incremental revenue.  Through our proprietary technology, we are able to provide a very robust online experience for long-term investors and active traders. Our low-cost, scalable platform provides speed, reliability and quality trade execution services for clients. The scalable capacity of our trading system allows us to add a significant number of transactions while incurring minimal additional fixed costs.
 
  •  Continue to be a low-cost provider of quality services.  We intend to continue to lower our operating costs per trade by creating economies of scale, utilizing our single-platform proprietary system, continuing to automate processes and locating much of our operations in low-cost geographical areas. This low fixed-cost infrastructure provides us with significant financial flexibility.
 
  •  Continue to differentiate our offerings through innovative technologies and service enhancements.  We have been an innovator in our industry over our 30-year history. We continually strive to provide our clients with the ability to customize their trading experience. We provide our clients greater choice by tailoring our features and functionality to meet their specific needs.
 
  •  Leverage the TD AMERITRADE brand.  We believe that we have a superior brand identity and that our advertising has established TD AMERITRADE as a leading brand in the retail brokerage market.
 
  •  Continue to aggressively pursue growth through acquisitions.  When evaluating potential acquisitions, we look for transactions that will give us operational leverage, technological leverage, increased market share or other strategic opportunities.
 
On June 11, 2009, we acquired thinkorswim Group Inc. (“thinkorswim”). The acquisition enhanced our industry leadership position in client trades per day and will provide our clients with access to thinkorswim’s advanced trading technology, tools and services, as well as a leading investor education program. This acquisition is discussed in further detail in Item 8, Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements: Note 2 — Business Combinations.
 
On February 4, 2008, we purchased a portion of Fiserv, Inc.’s (“Fiserv”) investment support services business by acquiring all of the outstanding capital stock of Fiserv Trust Company, a wholly-owned subsidiary of Fiserv. The acquisition added approximately $25 billion in client assets to TD AMERITRADE, including $15 billion held in more than 75,000 accounts managed by approximately 500 independent RIAs and $10 billion held in more than 2,000 plans administered by 80 independent third party administrators (“TPAs”). This acquisition is discussed in further detail in Item 8, Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements: Note 2 — Business Combinations.
 
On January 24, 2006, we acquired the U.S. brokerage business of TD Waterhouse Group, Inc. (“TD Waterhouse”) from The Toronto-Dominion Bank (“TD”). The transaction combined highly complementary franchises to create a retail broker that we believe has the scale, breadth and financial strength to be a leading player in the increasingly competitive and consolidating investor services industry. The acquisition of TD Waterhouse provided us with a national network of over 100 branches, as well as relationships with one of the largest groups of independent RIAs. It also enabled us to provide our clients with a Federal Deposit Insurance Corporation (“FDIC”)-insured deposit account sweep alternative for their cash through an arrangement with TD Bank USA, N.A. (“TD Bank USA”).
 
These excerpts taken from the AMTD 10-K filed Nov 26, 2008.
Strategy
 
We intend to capitalize on the growth and consolidation of the retail brokerage industry in the United States and leverage our low-cost infrastructure to grow our market share and profitability. Our long-term growth strategy is to increase our market share of client assets by providing superior offerings to long-term investors, RIAs, and active traders. We strive to enhance the client experience by providing sophisticated asset management products and services, enhanced technological capabilities that enable self-directed investors to trade and invest in new asset classes and a superior, proprietary, single-platform system to support RIAs. The key elements of our strategy are as follows:
 
  •  Focus on retail brokerage services.  We plan to focus on attracting active traders, long-term investors and RIAs to our retail brokerage services. This focused strategy is designed to enable us to maintain our low operating cost structure while offering our clients outstanding products and services.
 
  •  Provide a comprehensive long-term investor solution.  We continue to expand our suite of diversified investment products and services to best serve investors’ needs. We help clients make investment decisions by providing simple-to-use investment tools and objective research, guidance and education.


3


 

 
  •  Maintain industry leadership and market share with active traders.  We help traders make better-informed investment decisions by offering fast access to markets, insight into market trends and innovative tools such as strategy back-testing and comprehensive options research and trading capabilities.
 
  •  Continue to be a leader in the RIA industry.  We provide RIAs with comprehensive brokerage and custody services supported by our robust integrated technology platform, customized personal service and practice management solutions.
 
  •  Leverage our infrastructure to add incremental revenue.   Through our proprietary technology, we are able to provide a very robust online experience for long-term investors and active traders. Our low-cost, scalable platform provides speed, reliability and quality trade execution services for clients. The scalable capacity of our trading system allows us to add a significant number of transactions while incurring minimal additional fixed costs.
 
  •  Continue to be a low-cost provider of quality services.  Our operating expense per trade is among the lowest of any of our publicly-traded competitors. We intend to continue to lower our operating costs per trade by creating economies of scale, utilizing our single-platform proprietary system, continuing to automate processes and locating much of our operations in low-cost geographical areas. This low fixed-cost infrastructure provides us with significant financial flexibility.
 
  •  Continue to differentiate our offerings through innovative technologies and service enhancements.  We have been an innovator in our industry over our 30-year history. We continually strive to provide our clients with the ability to customize their trading experience. We provide our clients greater choice by tailoring our features and functionality to meet their specific needs.
 
  •  Leverage the TD AMERITRADE brand.  We believe that we have a superior brand identity and that our advertising has established TD AMERITRADE as a leading brand in the retail brokerage market.
 
  •  Continue to aggressively pursue growth through acquisitions.  When evaluating potential acquisitions, we look for transactions that will give us operational leverage, technological leverage, increased market share or other strategic opportunities.
 
On February 4, 2008, we purchased a portion of Fiserv, Inc.’s (“Fiserv”) investment support services business by acquiring all of the outstanding capital stock of Fiserv Trust Company, a wholly-owned subsidiary of Fiserv. The acquisition added approximately $25 billion in client assets to TD AMERITRADE, including $15 billion held in more than 75,000 accounts managed by approximately 500 independent RIAs and $10 billion held in more than 2,000 plans administered by 80 independent third party administrators (TPAs). This acquisition is discussed in further detail in Item 8, Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements: Note 2 — Business Combinations.
 
On January 24, 2006, we acquired the U.S. brokerage business of TD Waterhouse Group, Inc. (“TD Waterhouse”) from The Toronto-Dominion Bank (“TD”). The transaction combined highly complementary franchises to create a retail broker with the scale, breadth and financial strength to be a leading player in the increasingly competitive and consolidating investor services industry. The acquisition of TD Waterhouse provided us with a national network of over 100 branches, as well as relationships with one of the largest groups of independent RIAs. We also now provide our clients with a Federal Deposit Insurance Corporation (“FDIC”)-insured money market sweep alternative for their cash through an arrangement with TD Bank USA, N.A. This acquisition is discussed in further detail under the heading “Acquisition of TD Waterhouse” in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
Strategy


 



We intend to capitalize on the growth and consolidation of the
retail brokerage industry in the United States and leverage our
low-cost infrastructure to grow our market share and
profitability. Our long-term growth strategy is to increase our
market share of client assets by providing superior offerings to
long-term investors, RIAs, and active traders. We strive to
enhance the client experience by providing sophisticated asset
management products and services, enhanced technological
capabilities that enable self-directed investors to trade and
invest in new asset classes and a superior, proprietary,
single-platform system to support RIAs. The key elements of our
strategy are as follows:


 


























  • 

Focus on retail brokerage services.  We plan to
focus on attracting active traders, long-term investors and RIAs
to our retail brokerage services. This focused strategy is
designed to enable us to maintain our low operating cost
structure while offering our clients outstanding products and
services.
 
  • 

Provide a comprehensive long-term investor
solution.
  We continue to expand our suite of
diversified investment products and services to best serve
investors’ needs. We help clients make investment decisions
by providing simple-to-use investment tools and objective
research, guidance and education.





3





 





 












































































  • 

Maintain industry leadership and market share with active
traders.
  We help traders make better-informed
investment decisions by offering fast access to markets, insight
into market trends and innovative tools such as strategy
back-testing and comprehensive options research and trading
capabilities.
 
  • 

Continue to be a leader in the RIA
industry.
  We provide RIAs with comprehensive
brokerage and custody services supported by our robust
integrated technology platform, customized personal service and
practice management solutions.
 
  • 

Leverage our infrastructure to add incremental revenue.
  Through our proprietary technology, we are able
to provide a very robust online experience for long-term
investors and active traders. Our low-cost, scalable platform
provides speed, reliability and quality trade execution services
for clients. The scalable capacity of our trading system allows
us to add a significant number of transactions while incurring
minimal additional fixed costs.
 
  • 

Continue to be a low-cost provider of quality
services.
  Our operating expense per trade is
among the lowest of any of our publicly-traded competitors. We
intend to continue to lower our operating costs per trade by
creating economies of scale, utilizing our single-platform
proprietary system, continuing to automate processes and
locating much of our operations in low-cost geographical areas.
This low fixed-cost infrastructure provides us with significant
financial flexibility.
 
  • 

Continue to differentiate our offerings through innovative
technologies and service enhancements.
  We have
been an innovator in our industry over our
30-year
history. We continually strive to provide our clients with the
ability to customize their trading experience. We provide our
clients greater choice by tailoring our features and
functionality to meet their specific needs.
 
  • 

Leverage the TD AMERITRADE brand.  We believe
that we have a superior brand identity and that our advertising
has established TD AMERITRADE as a leading brand in the retail
brokerage market.
 
  • 

Continue to aggressively pursue growth through
acquisitions.
  When evaluating potential
acquisitions, we look for transactions that will give us
operational leverage, technological leverage, increased market
share or other strategic opportunities.


 



On February 4, 2008, we purchased a portion of Fiserv,
Inc.’s (“Fiserv”) investment support services
business by acquiring all of the outstanding capital stock of
Fiserv Trust Company, a wholly-owned subsidiary of Fiserv.
The acquisition added approximately $25 billion in client
assets to TD AMERITRADE, including $15 billion held in more
than 75,000 accounts managed by approximately 500 independent
RIAs and $10 billion held in more than 2,000 plans
administered by 80 independent third party administrators
(TPAs). This acquisition is discussed in further detail in
Item 8, Financial Statements and Supplementary
Data — Notes to Consolidated Financial Statements:
Note 2 — Business Combinations.


 



On January 24, 2006, we acquired the U.S. brokerage
business of TD Waterhouse Group, Inc. (“TD
Waterhouse”) from The Toronto-Dominion Bank
(“TD”). The transaction combined highly complementary
franchises to create a retail broker with the scale, breadth and
financial strength to be a leading player in the increasingly
competitive and consolidating investor services industry. The
acquisition of TD Waterhouse provided us with a national network
of over 100 branches, as well as relationships with one of the
largest groups of independent RIAs. We also now provide our
clients with a Federal Deposit Insurance Corporation
(“FDIC”)-insured money market sweep alternative for
their cash through an arrangement with TD Bank USA, N.A. This
acquisition is discussed in further detail under the heading
“Acquisition of TD Waterhouse” in Item 7,
Management’s Discussion and Analysis of Financial Condition
and Results of Operations.


 




This excerpt taken from the AMTD 10-K filed Nov 26, 2007.
Strategy
 
We intend to capitalize on the growth and consolidation of the retail brokerage industry in the United States and leverage our low-cost infrastructure to grow our market share and profitability. Our long-term growth strategy is to increase our market share of client assets by providing superior offerings to long-term investors, RIAs, and active traders. We strive to enhance the client experience by providing sophisticated asset management products and services, enhanced technological capabilities that enable self-directed investors to trade and invest in new asset classes and a superior, proprietary, single-platform system to support RIAs. The key elements of our strategy are as follows:
 
  •  Focus on retail brokerage services.  We plan to focus on attracting active traders, long-term investors and RIAs to our retail brokerage services. This focused strategy is designed to enable us to maintain our low operating cost structure while offering our clients outstanding products and services.
 
  •  Provide a comprehensive long-term investor solution.  We continue to expand our suite of diversified investment products and services to best serve investors’ needs. We help families make investment decisions by providing simple-to-use investment tools and objective research, guidance and education.
 
  •  Maintain industry leadership and market share with active traders.  We help traders make better-informed investment decisions by offering fast access to markets, insight into market trends and innovative tools such as strategy back-testing and comprehensive options research and trading capabilities.
 
  •  Continue to be a trusted advocate and leader in the RIA industry.  We provide RIAs with comprehensive brokerage and custody services supported by our robust integrated technology platform, customized personal service and practice management solutions.


3


 

 
  •  Leverage our infrastructure to add incremental revenue.  Through our proprietary technology, we are able to provide a very robust online experience for long-term investors and active traders. Our low-cost, scalable platform provides speed, reliability and quality trade execution services for clients. The scalable capacity of our trading system allows us to add a significant number of transactions while incurring minimal additional fixed costs.
 
  •  Continue to be a low-cost provider of quality services.  Our operating expense per trade is among the lowest of any of our publicly-traded competitors. We intend to continue to lower our operating costs per trade by creating economies of scale, utilizing our single-platform proprietary system, continuing to automate processes and locating much of our operations in low-cost geographical areas. This low fixed-cost infrastructure provides us with significant financial flexibility.
 
  •  Continue to differentiate our offerings through innovative technologies and service enhancements.  We have been an innovator in our industry over our 30-year history. We continually strive to provide our clients with the ability to customize their trading experience. We provide our clients greater choice by tailoring our features and functionality to meet their specific needs.
 
  •  Leverage the TD AMERITRADE brand.  We believe that we have a superior brand identity and that our advertising has established TD AMERITRADE as a leading brand in the retail brokerage market.
 
  •  Continue to aggressively pursue growth through acquisitions.  When evaluating potential acquisitions, we look for transactions that will give us operational leverage, technological leverage, increased market share or other strategic opportunities.
 
On May 24, 2007, we entered into a stock purchase agreement with Fiserv, Inc. (“Fiserv”) pursuant to which one of our wholly-owned subsidiaries agreed to purchase a portion of Fiserv’s investment support services business by acquiring all of the outstanding capital stock of Fiserv Trust Company, a wholly-owned subsidiary of Fiserv. Under the stock purchase agreement, the initial purchase price payable at closing is $225 million in cash plus Fiserv Trust Company’s regulatory capital, subject to certain pre- and post-closing adjustments. An additional earn-out payment of up to $100 million in cash could be payable following the first anniversary of the acquisition based on the achievement of certain revenue targets. The closing of the transaction is conditioned upon obtaining certain regulatory approvals, Fiserv completing an internal reorganization of Fiserv Trust Company to transfer the investment administration services business, which we are not acquiring, to Fiserv, and other customary conditions. At the closing, we will enter into a transition services agreement with Fiserv under which Fiserv will service client accounts for up to six months (subject to extension) and will be compensated based on revenue earned during the term of the transition services agreement. Fiserv has agreed not to compete with the acquired business for three years, subject to certain exceptions. Each party’s indemnification obligations are generally limited to losses in excess of $3 million and less than $50 million. Either party can terminate the agreement if the closing has not occurred by January 24, 2008.
 
On January 24, 2006, we acquired the U.S. brokerage business of TD Waterhouse Group, Inc. (“TD Waterhouse”). The transaction combined highly complementary franchises to create a retail broker with the scale, breadth and financial strength to be a leading player in the increasingly competitive and consolidating investor services industry. The acquisition of TD Waterhouse provided us with a national network of over 100 branches, as well as relationships with one of the largest groups of independent RIAs. We also now provide our clients with a Federal Deposit Insurance Corporation (“FDIC”)-insured money market sweep alternative for their cash through an arrangement with TD Bank USA, N.A. See “Acquisition of TD Waterhouse” below for further information about this acquisition.
 
Prior to acquiring TD Waterhouse, we completed several other acquisitions, the two largest of which were a merger with Datek Online Holdings Corp. (“Datek”) in fiscal 2002 and the acquisition of National Discount Brokers Corporation (“NDB”) in fiscal 2001.
 
This excerpt taken from the AMTD 10-K filed Dec 7, 2006.
Strategy
 
We intend to capitalize on the growth and consolidation of the retail brokerage industry in the United States and leverage our low-cost infrastructure to grow market share and profitability. Our long-term growth strategy includes increasing our focus beyond active traders to obtain a greater market share from long-term investors and registered investment advisors. We strive to enhance the client experience while delivering greater value to stockholders. The key elements of our strategy are as follows:
 
  •  Focus on retail brokerage services.  We plan to focus on attracting active traders, long-term investors and registered investment advisors to our retail brokerage services. This focused strategy is designed to allow us to maintain our low operating cost structure and still offer our clients outstanding products and services.
 
  •  Leverage our infrastructure to add incremental revenue.  Through our proprietary technology, we are able to provide a very robust online experience for investors and traders. Our low-cost, scalable platform provides speed, reliability and quality trade execution services for clients. The scalable capacity of our trading system allows us to add a significant number of transactions while incurring minimal additional fixed costs.
 
  •  Continue to be a low-cost provider of quality services.  Our operating expense per trade is among the lowest of any of our publicly traded competitors. We intend to continue to lower our operating costs per trade by creating economies of scale, utilizing our single-platform proprietary system, continuing to automate processes and locating much of our operations in low-cost geographical areas. This low fixed-cost infrastructure provides us with significant financial leverage.
 
  •  Continue to offer innovative technologies and service enhancements to our clients.  We have been an innovator in our industry over our 30-year history. We continually strive to provide our clients with choice


3


 

  and the ability to customize their trading experience. We provide greater choice by tailoring our features and functionality to meet the specific needs of investors.
 
  •  Continue to aggressively pursue growth through acquisitions.  When evaluating potential acquisitions, we look for transactions that will give us operational leverage, technological leverage, increased market share or other strategic opportunities. On January 24, 2006, we completed our acquisition of the U.S. brokerage business of TD Waterhouse Group, Inc. (“TD Waterhouse”). The transaction combined highly complementary franchises to create a retail broker with the scale, breadth and financial strength to be a leading player in the increasingly competitive and consolidating investor services industry. The acquisition of TD Waterhouse provided us with a national network of over 100 branches, as well as relationships with one of the largest networks of independent registered investment advisors. We also now provide our clients with an FDIC-insured money market sweep alternative for their cash through an arrangement with TD Bank USA, N.A. See “Acquisition of TD Waterhouse” below for further information about the acquisition of TD Waterhouse.
 
During fiscal 2004, we acquired Bidwell & Company and purchased the retail client accounts of BrokerageAmerica, LLC and Investex Securities Group, Inc. In fiscal 2005, we purchased the retail client accounts of JB Oxford & Company. These acquisitions followed the merger with Datek Online Holdings Corp. (“Datek”) in fiscal 2002 and the purchase of National Discount Brokers Corporation (“NDB”) in fiscal 2001. We intend to continue to be an acquirer by searching for other firms that fit one or more of our criteria.
 
  •  Leverage the TD AMERITRADE brand.  We believe that we have a superior brand identity and offering. Our advertising has established TD AMERITRADE as a significant brand in the retail brokerage market.
 
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