In 1972 Charles Schwab bought out his partners in First Commander Corporation, a broker-dealer and investment newsletter publisher. He renamed the firm after himself in 1973 and adopted the "discount brokerage" business model following the 1974 deregulation of the securities industry.
Schwab sold the brokerage to Bank of America in 1983, only to buy it back in 1987 and take it public later that year,
Mutual Fund Distribution
Schwab launched its Mutual Fund MarketPlace with 140 no-load funds in 1983. It expanded that service to offer round-the-clock mutual fund trades in 1986.
It followed that innovation with the creation of the no-transaction fee (NTF) Mutual Fund OneSource in 1992. The NTF platform revolutionized mutual fund distribution by allowing fund investors to gather their assets under one roof while avoiding the commissions of traditional brokerage accounts.
Schwab also instituted "shelf-space" payments for mutual fund firms taking part in the NTF platform. Today those payments range from 40 basis points on funds custodied on the platform.
Proprietary Mutual Funds
Schwab founded a family of index mutual funds in 1989 with the first fund opening in 1990. Through the next decade it studiously refrained from offering self-branded active funds to avoid competition with funds on OneSource.
Schwab added active funds with the purchase of Axa Rosenberg funds in 2004. The combined funds are now branded as Laudus.
Schwab launched its proprietary line of ETFs in 2009. Those ETFs are offered with no commission to its brokerage clients.
Sponsored Opportunities
Key People:
Randall Merk President and CEO, Charles Schwab Investment Management, Charles Schwab
Bari Havlik Chief Compliance Officer, Charles Schwab Investment Management, Charles Schwab & Co., Inc.
Koji E. Felton Senior Vice President, Chief Counsel, Corporate Secretary, Charles Schwab Investment Management, Charles Schwab & Company
Jeffrey M. Mortimer CEO and president, Laudus Funds, Charles Schwab & Company
Peter Crawford SVP for Investment Management Services,
George Pereira Senior Vice President, Chief Financial Officer, Charles Schwab Investment Management, Charles Schwab
Michael Haydel Vice President, Asset Management Client Services, Charles Schwab
Catherine MacGregor Vice President, Chief Counsel, Laudus Trust and Laudus Institutional Trust, Charles Schwab
Story Archive for Charles Schwab Investment Management
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