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Schwab Expands Its Fixed Income Offering With the Launch of Five Wasmer Schroeder™ Strategies

11/18/2021

New additions include two positive impact strategies, bringing new choices for clients who want to align their investments with their values

Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, today announced the expansion of its suite of fixed income separately managed account strategies available to Charles Schwab & Co., Inc. (Schwab) clients with five Wasmer Schroeder Strategies, including two positive impact strategies.

The positive impact strategies include the Wasmer Schroeder Positive Impact Bond strategy (PIBX), a taxable, limited duration strategy, and the Wasmer Schroeder Positive Impact Tax Exempt strategy (PIFI), an intermediate duration, high credit quality municipal strategy. Known for its rigorous approach to fixed income management, the Wasmer Schroeder team employs a distinctive use-of-proceeds methodology to identify bonds that finance projects and initiatives with positive social or environmental impacts, distinguishing Wasmer Schroeder strategies from offerings that rely solely on third-party ESG ratings or scoring lists.

“Generating income in the current environment is challenging, and investors need solutions that address a wide variety of objectives as well as unique preferences,” said John Sturiale, Head of Product Management and Strategy, Schwab Asset Management. “We are pleased to expand the universe of fixed income choices for Schwab clients and deliver more options for those who wish to make an impact with their portfolio.”

Schwab is also adding three strategies that focus on higher yielding sectors than Wasmer Schroeder’s core intermediate products, providing new options for clients seeking to generate additional income. These additions include the Intermediate Strategic Tax Exempt strategy (ISTEFI) along with the Intermediate IG Credit (ITTX+) and Multi-Sector Income (MITX) strategies, both of which are taxable strategies.

Schwab acquired Wasmer Schroeder’s comprehensive lineup of tax exempt and taxable strategies and brought on its deeply experienced investment team in July 2020. The launch of additional strategies delivers on Schwab’s objective of providing clients with more fixed income choices and compelling value through the Wasmer Schroeder acquisition.

The Wasmer Schroeder Strategies now available to Schwab clients include a total of 25 strategies, including nine actively managed strategies, two positive impact strategies, two ultra-short strategies, and a series of 12 bond ladders. For more information, visit www.schwab.com/wasmer-schroeder.

About Schwab Asset Management

Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. As part of the Charles Schwab organization, we champion the needs of investors and seek to enhance the financial lives of our clients in all we do. Operating our business through clients’ eyes and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. Established in 1989, Schwab Asset Management manages more than $640.5 billion in assets and draws on the knowledge and expertise of more than 119 investment professionals (figures as of 9/30/2021). More information is available at www.schwabassetmanagement.com.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.

Disclosures:

Schwab Asset Management is the dba name for Charles Schwab Investment Management, Inc. (CSIM). Schwab Asset Management is a part of the broader Schwab Asset Management Solutions organization (SAMS), a collection of business units of The Charles Schwab Corporation aligned by a common function—asset management-related services—under common leadership. CSIM and Charles Schwab & Co., Inc. (Schwab) Member SIPC are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

Please refer to the Charles Schwab Investment Management, Inc. Wasmer Schroeder Strategies Disclosure Brochure for additional information. Wasmer Schroeder Strategies are available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services .

Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. There are risks associated with any investment approach, and the Wasmer Schroeder Strategies have their own set of risks. The Wasmer Schroeder Strategies invests primarily in fixed income instruments and as such the strategies are subject to various risks including but not limited to interest rate risk, reinvestment risk, credit risk, default risk and event risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

Tax exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and CSIM does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.

Because environmental, social and governance (ESG) strategies exclude some securities, ESG-focused products may not be able to take advantage of the same opportunities or market trends as products that do not use such strategies. Additionally, the criteria used to select companies for investment may result in investing in securities, industries or sectors that underperform the market as a whole.

(1121-1GTV)

Christine Hudacko
Charles Schwab
415-961-3790

Source: The Charles Schwab Corporation

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