The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Supermarket to Spin-Off Not Rated 3.0 Email Routing List Email & Route  Print Print
Monday, April 05, 1999

Supermarket to Spin-Off

Reported by Sean Hanna, Editor in Chief

The Internet-IPO craze is about to hit a fund supermarket. Toronto-Dominion Bank (NYSE:TD) will sell 10% of its Waterhouse Investor Services division to the public this Spring. The offering is expected to value the firm at $7 to $10 billion. Waterhouse's Institutional unit is the old Jack White unit which handles custody business for advisors.

Toronto-Dominion shouldn't be blamed for trying to cash in. Already, E*Trade is valued at roughly $7 billion by the market. Meanwhile, Schwab trades at a 110 PE and a market cap of more than $38 billion.

More than $350 million could be raised in an offering if Waterhouse prices itself at 50% of its expected trading value as other recent Internet IPOs have done. This money could be used by the discount-broker to beef up its systems in its race with Schwab to win over and retain the custody business of financial advisors.

Waterhouse currently ranks second among the supermarket custodians in terms of financial intermediaries served, according to research by Boston-based Cerulli Associates. Waterhouse serves 2,900 intermediaries compared to 5,400 for Schwab, 584 for Fidelity, and 326 for DataLynx.

Yet in the all important assets-in-the-door ranking Waterhouse falls to third, says Cerulli. Schwab leads with $122 billion, Fidelity is second with $21 billion, Waterhouse has $7 billion, and DataLynx is nipping at its heels with $6 billion.

Waterhouse handled about 90,000 trades, including 55,000 on the 'Net, every day -- seven times more than when Toronto-Dominion bought it in 1996. These numbers should only rise as Waterhouse adds about 2,000 accounts a day to its base of 1.6 million customers.

For a look at the comparative market caps of Internet brokers follow this link.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. ETF.com Awards 2020, April 20
  2. The 31st Sub-Advised Funds Forum, Apr 20-21
  3. IDC Virtual Roundtable: Florida - April 2021, April 20
  4. IMEA Marketing Council Roundtable | Engaging Advisors In a Virtual World, April 21
  5. MMI Summit 2021, Apr 21-22
  6. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  7. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  8. IDC Virtual Roundtable: Alabama, Georgia, North Carolina, and South Carolina - April 2021, April 22
  9. Nicsa webinar - Diversity Data: What is at stake? Business, Reputation and Talent, April 22
  10. IDC Webinar: The Future of the Workplace - April 2021, April 23
  11. IDC Virtual Roundtable: Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas - April 2021, April 27
  12. IMEA In Session - Post-Covid Sales Coverage, April 27
  13. MFDF Case Studies in Fund Oversight — A Virtual Roundtable for Directors, Apr 28-29
  14. IDC Virtual Roundtable: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota - April 2021, April 29
  15. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  16. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  17. ICI 2021 General Membership Meeting - Day 1, May 6
  18. Emerging Manager Forum USA, May 12-14
  19. ICI 2021 General Membership Meeting - Day 2, May 13
  20. 2021 FINRA Annual Conference, May 18-20
  21. IDC Speaker Series - Abby Joseph Cohen: A Conversation About the State of the Global Markets, May 19
  22. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  23. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  24. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
  25. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20
  26. ICI 2021 Operations and Technology Conference, May 20

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use