One of Canada’s largest asset
managers, advisors and distributors of investment products. Through
our Discount Brokerage channels, we service customers in Canada,
the United States and the United Kingdom.
Overall business strategy
To develop a more integrated, strong, asset gathering,
client-focused organization, thereby increasing its contribution to
shareholder value. Wealth Management will continue to leverage
technology to improve the customer experience and increase
operational efficiency. In addition, TD Waterhouse International
will focus on building critical mass in order to improve
returns.
Challenges in 2003
- Market fluctuations and investor uncertainty during the first
half of 2003 put pressure on discount brokerage trading activity,
advice based businesses and mutual fund assets under management.
Market conditions and profitability have improved during the second
half of 2003 and we are hopeful that investor confidence will
continue to improve in 2004.
- Due to limited growth opportunities, TD Waterhouse Australia
was sold to Commonwealth Bank Australia Group. Joint venture
agreements have also been renegotiated to reduce TD Waterhouse
International’s ownership. The combined effect of these
actions will improve earnings in 2004.
- The restructuring of TD Waterhouse International in the second
quarter resulted in goodwill write downs and restructuring charges
of $339 million. The restructuring has also helped position TD
Waterhouse International to achieve breakeven results in 2004.
2003 Highlights.
- Assets under administration increased $33 billion from 2002 as
a result of business and market growth.
- For the second straight year, TD Waterhouse U.S.A. was ranked
#1 basic discount broker by SmartMoney, The Wall Street
Journal’s Magazine of Personal Business, in its
annual survey of brokerage firms.
- TD Waterhouse U.K. was named Best Online Broker by
Shares magazine. Strengths identified by readers of the
magazine were the speed and accuracy of trade execution.
Business outlook and focus for 2004
The restructuring of the TD Waterhouse International operations
and the aggressive cost control process across all of the Wealth
Management operations have set the stage for growth in 2004. Key
areas of focus for 2004 are:
- Continued concentration on asset growth in order to drive
revenue.
- Maintain cost reduction/containment strategy in order to
improve efficiency of operations.
- Build a robust infrastructure to support an integrated domestic
Wealth offering and achieve competitive advantage in all domestic
Wealth businesses.
