Managed Account Services - Yenra

Researched and reviewed fee-based portfolios of discretionary selected and managed individual securities

Managed Accounts

Charles Schwab has expanded the availability of third-party and proprietary managed accounts to all its retail brokerage clients nationally. Previously, Schwab's managed account offering was available only through the fee-based services of Schwab Private Client or one of the independent investment advisory firms doing business through Schwab Institutional. Now, all qualified retail clients will be able to put the power of managed accounts to work for their portfolio with guidance and assistance from Schwab's financial consultants.

Managed accounts are fee-based portfolios of individual securities selected and managed on a discretionary basis by professional money managers. These money managers typically specialize in specific investment styles, such as large-cap growth, international equity or short-term fixed income. Managed accounts have other important features such as potential tax management benefits through greater control of capital gains and losses, and the ability to place restrictions on specific securities or categories of securities held in the account.

"The expansion of our managed account services is in direct response to client need. More investors are demanding these sophisticated money management solutions, but don't want to pay the high fees typical of full-commission brokerages where these accounts are primarily sold," said Schwab's William Atwell. "Our managed account services represent the exact combination of value and service that investors have come to expect from Schwab. Our managed account pricing is as much as fifty percent below the published rates of major competitors."

Schwab's offering for retail investors consists of Managed Account Select, a comprehensive selection of approximately forty third party money managers, coupled with unaffiliated research and review of the money managers by a leading investment consulting firm. Managed Account Affiliates are four strategies utilizing Schwab Equity Ratings for stock selection, and five strategies from the money managers at U.S. Trust.

In addition to Managed Account Select and Managed Account Affiliates, independent advisors who custody with Schwab Institutional have exclusive access to recently launched Managed Account Access, a bundled service offering advisors access to a broad array of top money managers with minimums as low as $100,000. Managed Account Access provides advisors with the streamlined administration available at brokerage competitors along with the flexibility to do their own due diligence. Advisors also have exclusive access to the Managed Account Marketplace, which gives advisors the freedom to work with more than seven hundred money managers, negotiating their own fees and performing their own due diligence.

"Advisors and their clients truly appreciate the choice and flexibility in our offering," said Schwab's John Morris.

Across the firm, client assets in managed accounts at Schwab totaled $24 billion as of August 31.

Charles Schwab provides securities brokerage and financial services.