New Managed Account Solution From Schwab Institutional Gives Advisors Preferred Access to U.S. Trust-Managed Investment Strategi
January 04 2005 - 10:00AM
PR Newswire (US)
New Managed Account Solution From Schwab Institutional Gives
Advisors Preferred Access to U.S. Trust-Managed Investment
Strategies SAN FRANCISCO, Jan. 4 /PRNewswire-FirstCall/ -- Schwab
Institutional (http://www.schwabinstitutional.com/), a leading
provider of custodial, operational and trading support for
independent fee-based investment advisors, announced today a new
bundled managed account offering that provides advisors with
preferred access to U.S. Trust portfolio management. This latest
offering, Managed Account Affiliates(TM), features account minimums
as low as $100,000 for most equity management. Managed Accounts
(also known as "separate accounts") are portfolios of individual
securities that are professionally managed on a discretionary basis
by institutional-caliber portfolio managers. According to Cerulli
Associates, assets in separate account consulting programs topped
$548 billion at the close of 3Q, 2004. This represents a 21% growth
rate year over year, while Schwab's growth rate was nearly 40% for
the same period. "We're pleased to offer advisors and their clients
access to the best that Schwab Institutional and U.S. Trust have to
offer," said John Morris, senior vice president at Schwab. "We plan
to enhance the value of this new platform over time by adding
fixed-income strategies and tax-managed solutions." Morris added
that advisors had the opportunity to hear directly from two U.S.
Trust portfolio managers in an educational webcast in December.
Thomas Galvin, manager of Focused Large-Cap Growth, and David
Williams, manager of Value Equity, shared their expert viewpoints
on style investing. Due to advisors' enthusiastic responses to this
event, Schwab Managed Account Services has developed a tentative
schedule of live regional educational sessions that will allow
advisors to hear from industry experts in person. More details will
be available later this month. Schwab has a dominant position in
the service agent marketplace -- 67.5% market share as of 2003
according to Cerulli Associates, June 2004. Approximately 900 of
the advisors who custody assets with Schwab Institutional currently
use managed accounts; assets in managed accounts now exceed $15
billion. Schwab Institutional's managed account services also
include Managed Account Select(R), a complete bundled solution and
Managed Account Marketplace(R), an open-architecture platform that
provides access to one of the widest selection of money managers.
Managed Account Marketplace is generally intended for advisors who
are seeking simplified administration but want to perform their own
due diligence and negotiate money managers' fees independently.
About Schwab Institutional Schwab Institutional is a leading
provider of custodial, operational and trading support for
independent fee-based investment advisors. Client assets custodied
with Schwab Institutional increased 22 percent to $316 billion
between September 30, 2003 and September 30, 2004. These assets
managed by the approximately 5,000 independent advisor firms Schwab
Institutional serves represent approximately one-third of total
customer assets custodied at Schwab as of September 30, 2004. About
Charles Schwab The Charles Schwab Corporation (NYSE/Nasdaq: SCH),
through its operating subsidiaries, provides securities brokerage
and financial services to individual investors and the independent
investment advisors who work with them. With over 7 million
individual investor accounts and more than $1 trillion in client
assets, The Charles Schwab Corporation is one of the nation's
largest financial services firms. Its subsidiary Charles Schwab
& Co., Inc. (member SIPC) provides a complete range of
investment services and products, including an extensive selection
of mutual funds; financial planning and investment advice;
retirement plans; referrals to independent fee-based investment
advisors; and custodial, operational and trading support for
independent fee-based investment advisors. Its subsidiary Charles
Schwab Bank (member FDIC) provides banking and mortgage services
and products. The corporation's other operating subsidiaries
include U.S. Trust Corporation (member FDIC) and CyberTrader(R),
Inc. (member SIPC) .These companies' Web sites can be reached at
http://www.schwab.com/ , http://www.schwabbank.com/ ,
http://www.ustrust.com/ , and http://www.cybertrader.com/ . About
U.S. Trust Founded in 1853, U.S. Trust is a wealth management
company that provides planning, investment management, fiduciary
and private banking services. Headquartered in New York City, U.S.
Trust has $104 billion in assets under management, as of Sept. 30,
2004, and serves affluent individuals, families and institutions
nationwide through its offices in California, Connecticut,
Delaware, the District of Columbia, Florida, Massachusetts,
Minnesota, New Hampshire, New Jersey, North Carolina, Oregon,
Pennsylvania, Texas, Virginia and Washington. Schwab Institutional
is a division of Charles Schwab & Co., Inc. ("Schwab") Member
SIPC (0105-00033) DATASOURCE: Charles Schwab CONTACT: Alison
Wertheim of Charles Schwab, +1-415-636-5812, or Web site:
http://www.schwab.com/ Web site:
http://www.schwabinstitutional.com/
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