Schwab Completes Asset Acquisition of USAA’s Investment Management Company

Over one million new accounts and nearly 400 new employees join Schwab

Tuesday, May 26, 2020 1:15 pm PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW
"We are incredibly honored that USAA entrusted Schwab with the vital task of building the financial futures of its members"

SAN FRANCISCO--(BUSINESS WIRE)--The Charles Schwab Corporation announced today that it has completed its acquisition of the assets of USAA’s Investment Management Company and has transitioned the underlying brokerage and managed portfolio accounts to Schwab. As announced in July 2019, the companies have also entered into a long-term referral agreement that makes Schwab the exclusive provider of wealth management and investment brokerage services for USAA members.

Schwab’s commitment to putting clients first, serving their financial needs and seeing the world through their eyes now extends to USAA members, representing over one million brokerage and managed portfolio accounts, now serviced by Schwab.

“We are incredibly honored that USAA entrusted Schwab with the vital task of building the financial futures of its members,” said Walt Bettinger, President and CEO of Schwab. “We understand that with this transaction comes a great responsibility to USAA members and their talented employees, and we are committed to making the integration as seamless and efficient as possible. We are so proud to serve the men and women who have served our country and their families, and we’ll commit ourselves to working each day to continue delivering the highest level of service to them. As an employer of choice of veterans, Schwab has long supported the military community and we look forward to strengthening that relationship.”

“USAA and Schwab share an unwavering commitment to the financial security of our members and clients. Schwab approaches every decision ‘through clients’ eyes’ and offers a wide selection of investment products and services for some of the lowest costs in the industry,” said Wayne Peacock, president and CEO of USAA. “Our members now will receive expanded solutions from Schwab, who shares our client-centric approach and is committed to serving and employing military members.”

To uphold a shared focus on integrity, relationships and service, both organizations have worked together to facilitate a smooth transition of USAA member accounts to Schwab. Nearly 400 former USAA employees have joined Schwab to support the one million plus new accounts with continued high-caliber service and to help transitioning members feel confident about their accounts moving to Schwab.

USAA members with accounts that transferred to Schwab have access to a new hub on Schwab.com to guide them through the features and services available with their Schwab account, including helpful FAQs, to-do lists and Schwab contact information.

For Schwab, the transaction adds scale through the addition of approximately $80 billion to its $3.8 trillion in total client assets. It also provides Schwab an opportunity to serve USAA members as their exclusive provider of wealth management and investment brokerage services, through the long-term referral agreement.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 360 offices and 12.9 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $3.8 trillion in client assets as of April 30, 2020. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, 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 through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

About USAA

The USAA family of companies provides insurance, banking, investments and retirement solutions to more than 13 million current and former members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving our nation in the U.S. military or have received a discharge type of Honorable – and their eligible family members. Founded in 1922, USAA is headquartered in San Antonio. For more information about USAA, follow us on Facebook or Twitter @USAA, or visit USAA.com

Contact:

Mayura Hooper
Charles Schwab
Phone: 415-667-1525

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