TD Ameritrade Institutional s Technology Triple Threat Bob Mahoney, Director, Technology Solutions This material is designed for an investment professional audience, primarily Registered Investment Advisors (RIAs). TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. 2015 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.
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About TD Ameritrade Institutional Source: http://www.amtd.com/investor-relations/by-the-numbers/default.aspx
Top Strategic Initiatives for Growth Deploying technology to increase scale Systematizing client service and delivery TD Ameritrade Institutional 2014 Advisor Survey
What Would Prompt You to Consider Changing Your Current Technology Systems? (Respondents could select up to two) To improve workflow 62.6% To expand capacity 44.8% An increase in AUM An increase in number of clients An increase in revenue 18.7% 16.5% 21.7% 0% 10% 20% 30% 40% 50% 60% 70% 6 Source: InvestmentNews 2015 Adviser Technology Study
$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Year-Over-Year Total Technology Spending $65,499 22.4% increase $80,175 2013 2014 7 Source: InvestmentNews 2015 Adviser Technology Study
Tech Spending: Do you expect to adjust your technology budget in 2015 38.5% 55.1% We will increase spending We will decrease spending We will keep spending the same 6.4% 8 Source: InvestmentNews 2015 Adviser Technology Study
Primary Staffing Resource for Technology Expertise (Installation, Implementation, Training, and On-going Support) Consultants or third-parties 33.8% Knowledgeable staff (Not primary role) 29.9% Technology outsourcing 21.4% Dedicated IT staff 10.7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 9 Source: InvestmentNews 2015 Adviser Technology Study
Are Your Integrated Systems Automated? 21.9% Yes; I don't have to do anything 51.7% 26.4% No; limited to importing and downloading files Some are automated, but others are not 10 Source: InvestmentNews 2015 Adviser Technology Study
Obstacles Limiting the Integration of Systems (Respondents could select multiple, except None ) Insufficient staff time for developing a plan or implementing fully integrated systems 37.6% Unable to identify an appropriate solution 29.4% One or more systems that we would like to integrate are currently manual 24.0% Lack of software vendor support Lack of internal resources for investing in, and maintaining, a solution 18.6% 17.6% Low return on investment None Can't keep up with the pace of new technology Lack of support from our custodian or broker-dealer 11.8% 11.8% 10.9% 10.9% 11 Source: InvestmentNews 2015 Adviser Technology Study Inability to get real-time data feeds 8.1% 0% 5% 10% 15% 20% 25% 30% 35% 40%
12 Veo Open Access
Benefits of Veo Open Access choice flexibility efficiency
CRM Integrations Available Now: 14
Process Improvements Streamlined Management Fee Billing Run Management Fee Report Run Management Fee Report Save Report to computer Navigate to Management Fee Import Function Click button to submit fees to TD Ameritrade Prior Workflow Current Workflow Log into Portfolio Management system Log into Portfolio Management system Export Management Fee Report Click button to submit fees Log into Custodian TD System Ameritrade Load Saved Management Fee File
Process Improvements Streamlined Rebalancing Log into rebalancing application and create rebalancing event and trade file Export and save trade order file Log into Custodian System Import trade order file Streamlining Workflows Submit orders to Custodian 16 Receive alert and log into rebalancing system Create rebalancing event and trade order file Submit orders to Veo
17 Collaborating & Idea Sharing Tech Summit 2014
Building Veo Open Access SM Together With Third- Party Technology Providers 8 in 2010 89 in 2015
Veo Open Access Integrations CRM Solutions Portfolio Management Financial Planning Online Advice Solutions Office Tools Analytics Trading & Rebalancing
TD Ameritrade s Custodial Technology Earns Top Marks for RIA Satisfaction 3 Years in a Row! - Financial Planning Tech Survey, Dec 2012, Dec 2013, and Dec 2014
How Do Your Applications Interact? http://www.tdainstitutional.com/integrationanalyzer For illustrative purposes only.
Bringing It All Together with:
Inconsistent Experiences Compliance Portfolio Mgmt Planning Document Mgmt CRM Vault RIA OPS Multiple Logins - Time Dedicated to Process - Unproductive Workflow - Disparate Systems
Consistent, Unified Experience One Experience RIA OPS Single Access Point - More Time with Clients - Consistent Experience - Less Dependency on Others
Also Coming Soon to Veo One
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One Glance TASKS For illustrative purposes only.
TEST CLIENT TEST CLIENT 2 Test Client Test Client 1, 401 (K) Test Client 1 and Test Client 2, Corporation Test Client 2, 403 (B) Test Client 1 and Test Client 2 For illustrative purposes only.
TEST CLIENT TEST CLIENT 2 For illustrative purposes only.
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Responsive Technology 34 For illustrative purposes only.
Roadmap Adding more vendor integrations Delivering business intelligence and analytics Creating simplified workflows Onboarding and training advisors
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Fully Rebalance Securities and Cash Invest Cash Generate Cash Increase Security Positions Decrease Security Positions
Manage Cash Only Generate and/or Invest Cash Invest Cash Only Generate Cash Only
Directed Trading Replace Securities Harvest Tax Losses
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Automated Portfolio Monitoring irebal can monitor all portfolios based on an advisor s settings monitoring can even occur daily Through Veo alerts, advisors can be notified when any portfolio: needs to raise cash according to your settings has new cash to invest according to your settings has drifted beyond your acceptable rebalancing bands Orders will be generated by irebal and will be waiting for review 51
Giving You Control With easy-to-use global settings, you do not have to worry about: Avoidance of short term gains (or, gains which are close to transitioning to long-term) Avoidance of Early redemption penalties on mutual funds Advisors will be reminded 30 days later that the wash sale period has expired How much drift is acceptable and how closely to target each security Trade minimums 52
Technology Triple Threat irebal on Veo thinkpipes 53
What is thinkpipes? Trading and Market Data System Streaming market data Stocks, ETFs, options, futures Access to Level II data Time and sales Alerts and news, including streaming CNBC Company fundamental research Market events calendar Strategies education help thinkpipes Learning Center Video tutorials TD Ameritrade magazines and newsletters Release notes Options involve risks and are not suitable for all investors
thinkpipes Advanced Trading Capabilities Robust position analysis Pre- and post-trade block allocations Algorithmic trading choices Extensive real-time charting Complex options functionality Smart Navigational Features Customizable menus Personalized dashboards Point and click trading Tabbed browsing and windows Options involve risks and are not suitable for all investors
thinkpipes Flexible Data Solutions Easily import orders and allocations Single equity and options trades Multiple equity trades Spread allocations Quickly export to Excel One-click access to account views by group, individual, and household levels Options involve risks and are not suitable for all investors
Customizable Look and Feel For illustrative purposes only.
Watch List and Chart For illustrative purposes only.
Option Chain Quotes and Underlying Stock Information For illustrative purposes only.
Position Analysis / Creating a Covered Call Trade 20,200 20,200 For illustrative purposes only.
Calendar Dividends, Earnings and Conference Calls For illustrative purposes only.
CNBC News Fundamental For illustrative purposes only.
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Questions? This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries. 5/13/2015 64