Big Gain for Schwab's RIA Unit

McWhinney says the planned merger of Ameritrade and TD Waterhouse “will probably have some impact on the retail side, but I don’t know about the institutional side–what platform will they use? You can’t have two systems and get the cost savings.” She adds that “our net new asset flow in Schwab Institutional this year may be more than what TD has under management.” As for Fidelity Investments publicly stated goal of overtaking Charles Schwab & Co., McWhinney comments that “I am really not losing business to Fidelity. There’s enough money out there for everybody, and when you’re the strongest player you’ll get a disproportionate share.”

Asked whether Charles Schwab & Co. will remain independent in the face of merger rumors, McWhinney says “Chuck [Schwab] is adamant” about flying solo. Rather than sell out, she adds, Schwab plans to focus on growth. “He’s a growth guy, with a capital G,” she says.