Products February 15, 2007

Schwab Puts Out Portfolio Product for Advisers, TPAs

Charles Schwab has launched the Schwab Advisor Portfolio, aimed at advisers and third party administrators (TPAs) interested in customizing the investment choices of their client plans, including adding separately managed accounts.

Reported by

Fred Schneyer

A Schwab news release said that via Schwab Advisor Portfolio, advisers and TPAs can choose investment options from among all assets that can be held or traded at Charles Schwab & Co., which includes a mix of stocks, bonds, exchange-traded funds (ETFs), or other investments.

The announcement said the new product is designed for employer-directed defined benefit plans, pooled money purchase plans, and profit-sharing plans that are managed by an independent adviser and also use a directed corporate trustee.

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With the new product, Schwab said it now provides both trading and custody services, in addition to directed trustee services.

Advisers will have access to the firm’s managed account platform via Managed Account Select and Managed Account Access, Schwab’s bundled programs with $250,000 minimums for fixed income strategies and $100,000 for equity strategies, and Schwab Managed Account Marketplace, the open-architecture service that gives advisers the flexibility of working with whichever money manager they choose.

The announcement said that additional benefits of the new product include improved plan administration services through bank-certified trust statements, contribution processing, and payment services, combined with broker/dealer sub-custody services, electronic trading and data feeds through SchwabLink.