Schwab Intelligent Portfolios Premium™ Brings
in $1 Billion in Assets Since March Debut
Since introducing new subscription-based pricing at the end of
March, Schwab Intelligent Portfolios Premium has added $1 billion
in new assets under management, reinforcing the significance of
Schwab’s move to a more modern way to deliver financial planning.
In addition to strong asset growth, the service has seen a 25
percent increase in account opens, a 40 percent increase in average
household assets enrolled, and a 37 percent rise in new-to-Schwab
household enrollments.*
Overall client assets managed by Schwab’s digital advisory
solutions total $41 billion, up 23% year-over-year.*
Schwab Intelligent Portfolios Premium offers unlimited 1:1
guidance from a CERTIFIED FINANCIAL PLANNER™ professional who can
provide personalized financial advice based on current goals and
circumstances, a comprehensive and customized financial plan,
access to the financial plan 24/7 via a comprehensive digital
planning experience, and a diversified portfolio of low-cost
exchange-traded funds (ETFs) that automatically rebalances over
time.
“The move to subscription-based financial planning came as a
direct result of client feedback about the appeal of this pricing
approach, and it’s clear from these early results that we’ve struck
a chord,” said Cynthia Loh, Charles Schwab vice president of
digital advice and innovation. “Today’s consumers expect
simplicity, transparency and value – and how they invest should be
no different.”
Schwab Intelligent Portfolios Premium is designed for people who
want a combination of automated portfolio management and
comprehensive guidance and financial planning. Clients using the
service represent a wide range of ages and asset levels, and their
planning conversations can include a mix of financial goals from
retirement and college savings to shorter-term topics like travel,
purchasing a home, and funding home improvements.
“The wealth management industry is changing rapidly – consumers
are expecting to tailor services to their needs and pay based on
consumption,” according to Alois Pirker, research director for Aite
Group's Wealth Management practice. “Schwab is at the forefront of
this change. The subscription-based pricing they introduced in
their digital advisory service lowers the barrier for many
consumers that would benefit from financial planning by making it
very easy to understand from a service and pricing
perspective.”
“We’ve seen many new clients sign up who knew they needed help
with financial planning but hadn’t found an advisory model that fit
them – either because they prefer a more digital approach, are
cost-conscious, or find traditional planning services overly
complex,” noted Loh. “These investors were managing their
investments on their own but not necessarily by choice, so we’re
excited to give them a new way to get the help they need.”
In March, pricing for Schwab Intelligent Portfolios Premium was
changed from an asset-based advisory fee to an initial one-time
$300 fee for planning, and a $30 monthly subscription (advisory)
fee ($90 billed quarterly) that does not change at higher asset
levels.
Just as if they'd invested on their own, clients pay the
operating expenses on the ETFs in the portfolios — which includes
Schwab ETFs™. Schwab believes cash is a key component of an
investment portfolio. Based on a client’s risk profile, a portion
of their portfolio is placed in an FDIC-insured deposit at Schwab
Bank. Some cash alternatives outside of the program pay a higher
yield. See additional cost information below.
More information about Schwab’s digital advisory services is
available here.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
*Schwab data as of June 30, 2019
Disclosures
Please read the Schwab Intelligent Portfolios Solutions™
disclosure brochures for important information, pricing, and
disclosures related to the Schwab Intelligent Portfolios and Schwab
Intelligent Portfolios Premium programs.
Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios
Premium™ are made available through Charles Schwab & Co. Inc.
(“Schwab”), a dually registered investment advisor and broker
dealer. Portfolio management services are provided by Charles
Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are
subsidiaries of The Charles Schwab Corporation.
Additional Cost Information
There is no advisory fee or commissions charged for Schwab
Intelligent Portfolios. For Schwab Intelligent Portfolios Premium,
there is an initial planning fee of $300 upon enrollment and a $30
per month advisory fee charged on a quarterly basis as detailed in
the Schwab Intelligent Portfolios Solutions™ disclosure brochures.
Investors in Schwab Intelligent Portfolios and Schwab Intelligent
Portfolios Premium (collectively, “Schwab Intelligent Portfolios
Solutions”) do pay direct and indirect costs. These include ETF
operating expenses which are the management and other fees the
underlying ETFs charge all shareholders. The portfolios include a
cash allocation to a deposit account at Schwab Bank. Our affiliated
bank earns income on the deposits, and earns more the larger the
cash allocation is. The lower the interest rate Schwab Bank pays on
the cash, the lower the yield. Some cash alternatives outside of
Schwab Intelligent Portfolios Solutions pay a higher yield.
Deposits held at Schwab Bank are protected by FDIC insurance up to
allowable limits per depositor, per account ownership category.
Schwab Intelligent Portfolios Solutions invests in Schwab ETFs. A
Schwab affiliate, Charles Schwab Investment Management, receives
management fees on those ETFs. Schwab Intelligent Portfolios
Solutions also invests in third party ETFs. Schwab receives
compensation from some of those ETFs for providing shareholder
services, and also from market centers where ETF trade orders are
routed for execution. Fees and expenses will lower performance, and
investors should consider all program requirements and costs before
investing. Expenses and their impact on performance, conflicts of
interest, and compensation that Schwab and its affiliates receive
are detailed in the Schwab Intelligent Portfolios Solutions
disclosure brochures.
The cash allocation in Schwab Intelligent Portfolios Solutions™
will be accomplished through enrollment in the Schwab Intelligent
Portfolios Sweep Program (Sweep Program), a program sponsored by
Charles Schwab & Co., Inc. By enrolling in Schwab Intelligent
Portfolios Solutions, clients consent to having the free credit
balances in their Schwab Intelligent Portfolios Solutions brokerage
accounts swept to deposit accounts at Charles Schwab Bank through
the Sweep Program. Charles Schwab Bank is a FDIC‐insured depository
institution affiliated with Charles Schwab & Co., Inc. and
Charles Schwab Investment Advisory, Inc.
Through its operating subsidiaries, The Charles Schwab
Corporation (NYSE: SCHW) provides a full range of securities
brokerage, banking, money management and financial advisory
services to individual investors and independent investment
advisors. Its broker-dealer subsidiary, Charles Schwab & Co.,
Inc. (member SIPC, www.sipc.org), and affiliates offer a complete
range of investment services and products including an extensive
selection of mutual funds; financial planning and investment
advice; retirement plan and equity compensation plan services;
compliance and trade monitoring solutions; referrals to independent
fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles
Schwab Bank (member FDIC and an Equal Housing Lender), provides
banking and lending services and products. Edelman Intelligence is
not affiliated with the Charles Schwab Corporation or its
affiliates. More information is available at www.schwab.com and
www.aboutschwab.com.
Investment Products: Not FDIC Insured • No Bank Guarantee •
May Lose Value.
© 2019 Charles Schwab & Co., Inc., All rights reserved.
Member SIPC.
(0719-91EK)
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version on businesswire.com: https://www.businesswire.com/news/home/20190711005183/en/
Marianne Ahlmann Charles Schwab 415-667-1115
Marianne.ahlmann@schwab.com
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