Broker Check

February Newsletter



February 13, 2019


Update from the TD Ameritrade Conference

Dear «Salutation»:

Recently, my family and I traveled to sunny Florida where we spent some time with Mickey Mouse, and I attended the TD Ameritrade Institutional annual conference.  There were plenty of academic and technology-based sessions with great information that we will review in the office and put to work to enhance our client service. 

Perhaps the most interesting and anticipated information concerns the acquisition of TD Ameritrade Institutional by Charles Schwab, and TD Ameritrade’s view regarding this pending agreement.  In the opening session of the conference Tom Nally, President of TD Ameritrade Institutional, addressed the need for continued delivery of quality service and the need to compete with other custodians until the deal is finalized, which is on track for the second half of 2020.  Tom Nally followed up by saying, after the finalization of the deal, it will take another two to three years for a complete integration of the two firms to occur.  Through 2020, we anticipate that there will be little to no impact on how you work with us or TD Ameritrade Institutional.

A custodian the size of Charles Schwab and TD Ameritrade combined is a large operation that may be too busy and too big to best support our future needs.  As a result, Intelligent Investment Management, LLP will soon conduct an exhaustive review of options for a potential alternative custodial relationship; we do not want to assume that Charles Schwab is the best fit.  We will be looking for a custodian that specializes in supporting a firm of our size, as well as, offering us the tools and services that best fit our needs and the needs of our clients.  Although, we view this as an opportunity to enhance our future administrative and custodial functions, we currently, plan to work with TD Ameritrade Institutional throughout 2020.  We will keep you informed of any updates as we proceed down this path.  

If you have been watching the news you have certainly read about the current global outbreak of the Coronavirus that began in Wuhan China. The Chinese government has responded appropriately with citywide quarantines, affecting businesses, manufacturing and production.  This “downtime” will have an economic impact in China and will be felt around the world.  Consequently we may see declining GDP figures in the first quarter of 2020.   We expect markets to be volatile which will impact equity and bond market activity; it may also create buying opportunities until the total impact of the virus is known.

If you have any concerns or questions related to the impact on the markets or the transition of TD Ameritrade Institutional, please give the office a call, Steve and I are always happy talk with you.



Intelligent Investment Management, LLP