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.
- 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.