MutualFundWire.com: Schwab's Own Fund Assets Climb

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Tuesday, April 17, 2001

Schwab's Own Fund Assets Climb

Revenues at Charles Schwab & Company's balance-related business grew 10 percent over a year ago even while trading-related revenues at the firm plunged, said Charles Schwab, chairman and co-ceo. The figures were included in quarterly earnings reports released today.

Overall financial results at the San Francisco-based firm were in line with revised results expected by analysts. First-quarter earnings at the firm fell 68 percent from a year ago. Schwab's net income was $97 million, or seven cents a diluted share, compared with $300 million, or 22 cents a share, a year earlier.

The report shows that the total mutual fund assets custodied at Schwab and held in Schwab's own fund family have barely budged over the past year despite the carnage in the stock market. Fund assets at Schwab slipped to $325 million at the end of March from $330 at the end of the fourth quarter of 2000. Fund assets in the equivalent period a year ago were $328 million.

More than half these assets -- $172 million -- are part of Schwab's Mutual Fund Marketplace. Of that amount $84 million is now held in OneSource. Assets in OneSource peaked at $119 billion at the end of March 200.

These figures show that assets in the third-party funds in OneSource had declined by more than 29 percent.

Over that same period assets in Schwab proprietary funds grew nearly 20 percent to $153.2 billion from $127.9 billion at the end of March 2000. The bulk of the assets in Schwab's proprietary funds are held in its money market funds. These funds also accounted for all of the growth in Schwab's own funds during the past three months.

Schwab Mutual Fund Assets
Description	March 31, 2001	February 28, 2001	March 31, 2000
Schwab One	$28.8	$29.0	$29.7
Proprietary funds
Money market funds	$125.5	$109.4	$98.1
Equity & bond funds	$27.7	$30.1	$29.8
Total proprietary	$153.2	$139.5	$127.9
Mutual Fund MarketPlace
Mutual Fund OneSource	$84.2	$98.3	$119.0
Mutual fund clearing services	$19.1	$21.2	$5.9
All other	$68.7	$71.3	$75.3
Total Mutual Fund Marketplace	$172.0	$190.8	$200.2
Total mutual fund assets	$325.2	$330.3	$328.1
Source: Charles Schwab Corporation