eTrade 2000 Annual Report Download - page 23

order. We have eight proprietary mutual funds, four of which were launched in fiscal 2000, including the e-Commerce Index Fund and
the Premier Money Market fund.
Additionally, we have expanded the scope of the mutual funds group to encompass a broader range of investment vehicles, enabling us
to provide a more diverse portfolio of product offerings to new and existing customers. Through our acquisition of eInvesting in July
2000, individual investors, as well as financial advisors and corporations offering portfolios to their employees, will be able to set up
dollar-denominated, personalized portfolios via the Internet. Also, through the acquisition of (PrivateAccounts) in October 2000, we
expect to further expand our product portfolio to offer separate account management services for those investors who are looking for
private management of their money. We continue to expand our broad base of products and services to attract and retain all types of
investors, from active investors to those who invest with a long-term, buy and hold strategy.
Business Solutions Group
In fiscal 1998, we acquired OptionsLink, formerly a division of Hambrecht & Quist LLC, and privately-held ShareData, Inc.
(“ShareData”). OptionsLink was an all-electronic Web-based and interactive voice response inquiry and order entry system for
employee stock option and stock purchase plan services for corporate stock plan participants. ShareData was a supplier of stock plan
knowledge-based software and Full Service Stock Plan Administration (“FSSPA”) consulting services for pre-IPO and public
companies. The products and services provided by these companies were combined and are now part of the corporate financial
services offered by BSG. We believe that this service is the only one that offers a full spectrum of fully integrated electronic stock plan
management services, including plan administration, compliance, employee communication, and online transaction capabilities. BSG
represents an important potential growth segment for us and provides an opportunity to diversify our revenue stream while facilitating
our cross-sell strategy. We currently offer products and services to over 3,300 corporations with online reach to over 1.4 million
employees of those companies. Currently, initiatives to increase the scope of the BSG relationships include cross-selling various
E*TRADE products such as employee banking services provided by the Bank, ATM services by placing ATMs at company locations
where we have existing relationships, and an online 401(k) product.
Corporate Operations
Included in the asset gathering and other segment are the activities generated by our corporate operations. Corporate activities include
the management of corporate held investments, participation in two venture capital funds (E*TRADE eCommerce Fund I and
E*TRADE eCommerce Fund II), and the management of corporate borrowing activities. Corporate operations also encompass
technology development, systems maintenance and operations, and general and administrative costs benefiting E*TRADE as a whole.
Growth Strategy
The formation of the asset gathering business has enhanced our ability to focus on several key objectives, including targeting a more
affluent customer base through new programs, increasing our “share-of-wallet” of existing customers, and expanding the channels of
distribution through which we provide services. We intend to continue to roll out new products and services to achieve these
objectives, including focusing on retirement/401(k) programs, college savings plans, delivery of electronic advice, and tiered product
offerings.
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Our business strategy includes expanding our product mix to include targeted and high value products and services, providing
E*TRADE customers with a more personalized, integrated customer solution in meeting individual financial objectives. In the mutual
fund and investment product business, we are executing on this strategy by continuing to enhance and market the mutual fund
supermarket, while rolling out additional proprietary funds. Following our joint venture with Ernst and Young, LLP in September
2000, we are developing an electronic advice product that will provide customers with personalized financial advice based on their
specific financial goals, and will provide recommendations on mutual funds that may help customers achieve their objectives.
Additionally, as we roll out investment products from our acquisitions of eInvesting and PrivateAccounts, we will be able to provide
new and differentiated products for our customer base. Some of the new products will also be offered for financial advisors as we
target the intermediary channel.
BSG will continue to focus on the Business-to-Business-to-Consumer strategy in providing products and services to corporations for
end-use by their employees. We will also focus on cross-selling additional E*TRADE products to our corporate customers, and in
turn, their employees. Among the products that we intend to cross-sell include an online 401(k) product and corporate banking.
Through our high net worth initiatives, we intend to provide different levels of products and services to different tiers of customers,
thereby encouraging customers to consolidate their assets at E*TRADE to receive premium services.
2002. EDGAR Online, Inc.