TD Ameritrade FY 2Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$TD Earnings Call Notes

“Retail investor sentiment improved over the quarter…Our Investor Movement Index continues to demonstrate increased bullishness, showing upward movement in 8 of the last 9 months and is currently at its highest level since June of 2011. But while settlement has improved, engagement remains toughened as many investors hesitate to reenter the markets. ”

“The reality is that while those investors who are engaged in the markets are increasingly bullish and our RIAs continue — are currently fully invested with record low levels of client cash as a percentage of client assets, many retail investors remain cautious”

“Our trades per day improved by 13% sequentially but remain below our expectations in light of how the equity markets have done over the last 12 to 15 months as a large number of investors remain cautious.”

“as we have said many times before and we’ll continue to emphasize, we remain very well positioned for rising rates”

“I think what we saw is in January and February after the tax deal and the fiscal cliff, people started to reenter the markets, but then Europe started to become uncertain here again and it feels a bit like Groundhog Day. But we’re having one of those markets where there’s that uncertainty but there’s not much volatility ’til yesterday.”

“I would say the odds or the probability of margin loans going up with the market…happens probably 75% of the time. And there always is these 25% that it doesn’t. And it didn’t happen this quarter. So we’ve been watching and thought it would come. It didn’t come…I think the other thing that happened, there’s no question, we did have pretty good margin loans on Apple…Apple’s decline certainly has contributed to the margin loans.”

“ETFs for a retail trader, yes, they’re using the ETF…[but] they continue to be very interested in equities, and mutual funds continue to do well, equity mutual funds or balanced mutual funds. So from my perspective, we’re not seeing a significant change.”

“every year as we go towards the end of March, the asset gathering slows a bit and then the first part of April in particular like right now…And then you typically pick back up.”

“an increasing market with a few corrections along the way for increased volatility. That’s a perfect market environment for us”

“It is an advice and guidance market”

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