TD Ameritrade 4Q16 Earnings Call Notes

Tim Hockey – President and CEO

Client call volumes up 17% since the election

“Overall client call volumes since the election were up 17% from last year, which on its own is a healthy increase but new client calls were up 37%. Call topics were overwhelmingly market related, a great opportunity to educate, provide guidance and introduce helpful solutions to our clients and our teams delivered. Asset inflows were up 6% from last year and new funded accounts were up more than 20%. ”

Long term investors sold long-held positions

“So, what specifically were our clients doing? Long-term investors sold [ph] long-held positions, as the markets rally. Traders continue to seek opportunities via effective rotation or trading on volatility and widely held symbols, namely in the finance, tech and infrastructure spaces. We said for years that news drives trading, and today, more often than not, social media is breaking that news.”

The election got less active traders engaged

“My sense, what happened and certainly post-election was that the less active traders reengaged. There was a significant uptick in our non-active trader segment. And so, in other words, you saw the results of the election and they said, it’s time to look at my portfolio, maybe it’s been a while reposition and you definitely saw some of the sector rotation you did. Going forward, I think you’ll see that actually activities start to peter [ph] out a little bit as people are now positioned. But generally my sense is that you’re going to see a more volatile set of market conditions over the next little while and that will drive more activity.”