Schwab Launches Ready-to-Go SMAs
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Friday, August 12, 2005

Schwab Launches Ready-to-Go SMAs

Schwab Institutional has created a bundled managed account product for its advisors.

The brokerage's new Managed Account Access program currently includes access to 22 strategies. Two Charles Schwab Investment Management portfolios will be added to the program in September of 2005. Currently, five out of the 22 existing strategies are provided by U.S. Trust. Schwab is working to add more managers to the program.

The account minimums under the program are $100,000 for equity strategies and $250,000 for fixed income strategies. The program's money management, custody and brokerage fees are less than 100 basis points.

Schwab also offers an open-architecture managed account program called Managed Account Marketplace, which provides access to 700 money managers, said spokeswoman Lindsay Tiles. Advisors can also add any manager they want to the platform, said Tiles. Another Schwab SMA program is called Managed Account Select. That program allows advisors to use Callan Associates manage research in concert with Schwab's administration.

"This offering can help advisors compete even more effectively with full-service brokers and help level the playing field by providing advisors access to some of the most recognized names in the industry at low minimums," said John Morris, senior vice president of Charles Schwab.

"We also expect Access to have particular appeal for brokers who are leaving their firms to become independent and want to continue working with the same asset managers without interruption. It provides a 'soft landing' place for the brokers transitioning their clients and takes the pain out of the dual contract process for both the advisor and the money manager," said Morris.

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