Schwab Completes Acquisition of Windward Investment Management, Inc.

Wednesday, November 10, 2010 8:00 am PST



Public Company Information:

"We are pleased to be able to provide our investment advisor and retail clients with convenient and cost effective access to Windward’s portfolio management expertise"

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation today announced the completion of its acquisition of Windward Investment Management, Inc. for $150 million in cash and stock. The acquisition agreement was originally announced August 30, 2010. As of September 30, Windward managed $4.24 billion in client assets.

“We are pleased to be able to provide our investment advisor and retail clients with convenient and cost effective access to Windward’s portfolio management expertise,” said Walt Bettinger, Schwab President and CEO. “Their long-term track record of portfolio construction which has balanced risk management with market outperformance through global diversification is a tangible testament to the power of their approach and will be a great addition to Schwab’s investment management solutions.”

Each of the three Windward portfolios has exceeded industry benchmarks for cumulative performance. Growth rates from Jan. 1, 2002 through September 30, 2010 included the following:

  • 71.9% for Windward's Diversified Conservative portfolio, compared to 64.7% for the Barclays Capital Aggregate Bond Index
  • 94.4% for Windward's Diversified Growth portfolio, compared to 38.8% for a blended index combining the S&P 500 and the Barclays Capital U.S. Aggregate Bond indices
  • 120.3% for Windward's Diversified Aggressive portfolio, compared to 17.9% for the S&P 500 Total Return Index.

Data Sources for indices: Bloomberg

Performance of the Windward portfolios is based on actual returns, net of all fees and expenses. The period reflects the longest available time period for which all three Windward Strategies existed concurrently. Past performance is not necessarily indicative of future return. Future returns are not guaranteed and a loss of principal may occur. The material provided herein is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities. The information is not intended to provide tax, legal or investment advice.

Effective with the close, the Windward business is now named Windhaven Investment Management, Inc. Windward portfolios will now be called Windhaven portfolios and will be available as part of Schwab’s Managed Account Access service for investment advisors immediately and to Schwab retail clients in the coming months.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.9 million client brokerage accounts, 1.5 million corporate retirement plan participants, 665,000 banking accounts, and $1.47 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. (“Schwab”) (member SIPC,, 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 through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at and


Charles Schwab
Alison Wertheim, 415-667-0475 (Media)
Rich Fowler, 415-667-1841 (Investors/Analysts)

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