Schwab Adds Morningstar as Managed Account Provider

Morningstar will join GuidedChoice as a fully integrated provider of managed account services to workers saving for retirement through Schwab Index Advantage. Employers will be able to choose Morningstar’s managed account services once the integration with Schwab Index Advantage is completed, expected later this year.

“We have a long history of offering both Morningstar and GuidedChoice 401(k) advice to participants in the traditional 401(k) plans we service. We are pleased now to be able to offer our Schwab Index Advantage clients a choice of these two advice providers,” said Steve Anderson, executive vice president, Schwab Retirement Plan Services.

Schwab Index Advantage combines low fund investment expense with personalized savings recommendations and investment management designed to help workers better prepare for retirement. To help drive down costs, the service uses index mutual funds with low fund operating expenses instead of actively managed mutual funds. Index Advantage also includes a professional, low-cost, independent managed account service that develops an ongoing personalized savings and investment strategy for individuals.