Schwab Completes Asset Acquisition of USAA’s Investment Management Company
27 May 2020 - 6:15AM
Business Wire
Over one million new accounts and nearly 400
new employees join Schwab
The Charles Schwab Corporation announced today that it has
completed its acquisition of the assets of USAA’s Investment
Management Company and has transitioned the underlying brokerage
and managed portfolio accounts to Schwab. As announced in July
2019, the companies have also entered into a long-term referral
agreement that makes Schwab the exclusive provider of wealth
management and investment brokerage services for USAA members.
Schwab’s commitment to putting clients first, serving their
financial needs and seeing the world through their eyes now extends
to USAA members, representing over one million brokerage and
managed portfolio accounts, now serviced by Schwab.
“We are incredibly honored that USAA entrusted Schwab with the
vital task of building the financial futures of its members,” said
Walt Bettinger, President and CEO of Schwab. “We understand that
with this transaction comes a great responsibility to USAA members
and their talented employees, and we are committed to making the
integration as seamless and efficient as possible. We are so proud
to serve the men and women who have served our country and their
families, and we’ll commit ourselves to working each day to
continue delivering the highest level of service to them. As an
employer of choice of veterans, Schwab has long supported the
military community and we look forward to strengthening that
relationship.”
“USAA and Schwab share an unwavering commitment to the financial
security of our members and clients. Schwab approaches every
decision ‘through clients’ eyes’ and offers a wide selection of
investment products and services for some of the lowest costs in
the industry,” said Wayne Peacock, president and CEO of USAA. “Our
members now will receive expanded solutions from Schwab, who shares
our client-centric approach and is committed to serving and
employing military members.”
To uphold a shared focus on integrity, relationships and
service, both organizations have worked together to facilitate a
smooth transition of USAA member accounts to Schwab. Nearly 400
former USAA employees have joined Schwab to support the one million
plus new accounts with continued high-caliber service and to help
transitioning members feel confident about their accounts moving to
Schwab.
USAA members with accounts that transferred to Schwab have
access to a new hub on Schwab.com to guide them through the
features and services available with their Schwab account,
including helpful FAQs, to-do lists and Schwab contact
information.
For Schwab, the transaction adds scale through the addition of
approximately $80 billion to its $3.8 trillion in total client
assets. It also provides Schwab an opportunity to serve USAA
members as their exclusive provider of wealth management and
investment brokerage services, through the long-term referral
agreement.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading
provider of financial services, with more than 360 offices and 12.9
million active brokerage accounts, 1.7 million corporate retirement
plan participants, 1.4 million banking accounts, and $3.8 trillion
in client assets as of April 30, 2020. Through its operating
subsidiaries, the company provides a full range of wealth
management, securities brokerage, banking, asset management,
custody, 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; 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. More information is
available at www.schwab.com and www.aboutschwab.com.
About USAA
The USAA family of companies provides insurance, banking,
investments and retirement solutions to more than 13 million
current and former members of the U.S. military and their families.
Known for its legendary commitment to its members, USAA is
consistently recognized for outstanding service, employee
well-being and financial strength. USAA membership is open to all
who are serving our nation in the U.S. military or have received a
discharge type of Honorable – and their eligible family members.
Founded in 1922, USAA is headquartered in San Antonio. For more
information about USAA, follow us on Facebook or Twitter @USAA, or
visit USAA.com
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