Record Year for New 401(k) Plan Participants and Newly Independent Advisors
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Despite difficult market and economic conditions, Charles Schwab’s business-to-business Institutional Services division evidenced great strength and impressive growth in 2008. Schwab broke two records in bringing in more than 200,000 401(k) plan participants and winning an unparalleled $13 billion in assets from investment advisors who chose to leave established financial firms and set up shop as independent registered investment advisors. Net new assets for the entire Institutional Services division in 2008 totaled more than $78 billion, bringing total assets under management to $654.4 billion.
Schwab Advisor Services Continues to Grow as Market Leader
One of two units within Institutional Services, Schwab Advisor Services (http://www.schwabinstitutional.com/public) serves more than 5,500 independent investment advisory firms and custodies $477.2 billion as of the end of 2008. Its net new assets for the year totaled more than $60 billion. This net new asset figure includes the record $13 billion from 123 advisor teams who turned independent with Schwab in 2008.
“The strong net new asset numbers we saw this year speak not only to the increasing appeal of the independent model among successful investment advisors, but also to the continued success that independent advisors are having in the marketplace,” said Jim McCool, executive vice president and head of Schwab Institutional Services.
Other key metrics for the year included:
Key product and program enhancements for 2008 included:
Schwab Corporate & Retirement Services Brings in Record Level of Plan Participants
Schwab Corporate & Retirement Services (www.scrs.schwab.com), which provides retirement, equity compensation, and other financial services to corporations and their employees, continued its impressive growth and expansion in 2008. The group brought in more than $18 billion in net new assets, bringing total assets under management for Schwab Corporate & Retirement Services to $177.2 billion.
“We experienced tremendous success in 2008, particularly among large companies who are looking to Schwab not only to serve as 401(k) plan administrator, but also as a resource to help their employees manage their overall finances,” said McCool. “We also have kept a laser focus on serving our existing clients, who are looking to us for guidance and leadership in this challenging economic environment.”
Key metrics for 2008 included:
Key service and product enhancements for 2008 included:
About Charles Schwab
The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.4 million client brokerage accounts, 1.4 million corporate retirement plan participants, 447,000 banking accounts, and $1.1 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com. (0109-7559)
All numbers and data contained in the above press release are as of December 31, 2008 and are based on internal Schwab reporting metrics unless otherwise noted.
The Schwab Managed Retirement Trust Funds™, the Schwab Indexed Retirement Trust Funds, the Schwab Institutional Trust Funds®, and the Charles Schwab Stable Value Fund™ are collective trust funds managed and distributed by Charles Schwab Trust Company (CSTC), a division of Charles Schwab Bank. CSTC acts as trustee, manager, and distributor of the Funds and is responsible for the selection, monitoring and replacement of the Funds' investment sub-advisors. The Funds are not mutual funds, and their units are not registered under the Securities Act of 1933, as amended or applicable securities laws of any state or other jurisdiction. The Funds are not registered under Investment Company Act of 1940, as amended, or other applicable law and unit holders are not entitled to the protections of the 1940 Act. The Funds are not insured by CSTC, any of its affiliates, the FDIC or any other person. As defined in the Funds’ Declaration of Trust and Participation Agreement documents, the Funds are available for investment by eligible, qualified retirement plan trusts only. The unit value of the Funds will fluctuate, and investors may lose money.
Schwab Performance Technologies (“SPT”), like Schwab, is a subsidiary of The Charles Schwab Corporation. Schwab provides brokerage services, while SPT licenses software and provides related technology products and services. PortfolioServices is a product of SPT.
1 Schwab Institutional Client Promoter Score, Benchmarking Study Q3-08