TD Bank 2002 Annual Report Download - page 24

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22
HOW WE PERFORMED IN 2002
Financial results of key product segments within
TD Wealth Management
TD Mutual Funds is the fifth largest mutual fund manager in
Canada with $29 billion in assets. In spite of the adverse
markets, which hampered sales activity and AUM growth,
revenues increased by 3% or $5 million, to $187 million in
2002 and our efficiency ratio improved six percentage
points. Mutual fund market share declined during the fiscal
year as the focus within the retail branch network, our
primary distribution channel, was on integration related
issues and implementing process improvements for most of
the year. We believe we are well positioned to reverse this
trend going forward.
TD Private Client Group includes trust services, private
banking and Private Investment Counsel. Despite volume
increases, revenues decreased by six percent or $10 million,
to $156 million in 2002 primarily due to narrower interest
margins and declines in fee-based businesses, primarily in
Estates and Trusts, and Private Investment Counsel.
TD Asset Management is one of Canada’s largest asset
managers and is recognized as the largest quantitative
manager in the country. Services provided include investment
management to pension funds, corporations, institutions,
endowments and foundations. Consistent with industry
trends, these asset-based fee businesses experienced
declining revenues in this environment. Revenues declined
by 10% or $13 million to $112 million in 2002, while
expenses decreased 6% or $4 million to $61 million.
TD Waterhouse Investment Advice provides full-service
brokerage services to our retail customers throughout
Canada. Although fiscal 2002 represented a challenging
environment for our business we continued to grow our sales
force and AUA, resulting in a revenue increase of 6% or
Assets under administration
(billions of dollars)
00 01 02
$234 billion
$300
250
150
200
100
50
0
Assets under management
(billions of dollars)
00 01 02
$112 billion
$120
100
60
80
40
20
0
Revenues
(millions of dollars) 2002 2001 Growth
Mutual Funds $ 187 $ 182 3%
Asset Management 112 125 (10)
Private Client Group 156 166 (6)
Investment Advice 238 225 6
Discount Brokerage 1,512 1,616 (6)
Financial Planning 7–100
Total $ 2,212 $ 2,314 (4)%