Schwab Announces Planned Launch of Schwab Intelligent Portfolios

The Only Automated Investment Advice Service with No Advisory Fees, No Commissions and No Account Service Fees Charged

SAN FRANCISCO--(BUSINESS WIRE)-- The Charles Schwab Corporation (Schwab) today announced additional details about the company’s new automated investment advisory service, Schwab Intelligent Portfolios™, which it plans to make available to retail investors in the first quarter of 2015, with a white label version for Registered Investment Advisors available shortly thereafter.

“Schwab Intelligent Portfolios addresses a growing demand for affordable, objective, sophisticated and convenient investment advice,” said Schwab President and CEO Walt Bettinger. “The service alters the investing landscape by combining innovative technology with proven approaches to advice and the support that only people can provide, all without charging program management fees, advice fees, or commissions, while using low cost exchange traded funds. It is a combination that Schwab can uniquely deliver due to the breadth of our capabilities – over four decades of firm-wide experience managing complex advisory, brokerage and money management services, banking and clearing systems – and our track record of technology, pricing and service innovation at large scale.”

With as little as $5,000, investors will be able to open individual, joint, IRA, and revocable living trust accounts that offer technology-driven automated portfolios and a modern, streamlined client experience designed for ease and efficiency.

“While Schwab Intelligent Portfolios will be very accessible with a low account minimum, the combination of a simplified client experience with highly sophisticated portfolio construction, makes it appropriate for a wide range of investors – from those who are just getting started to those who have accumulated more wealth, but prefer a technology powered approach to investing,” noted Bettinger.

The service, available via web and smartphone applications, will provide investors with:

• Diversified portfolios using Schwab and third party low-cost exchange traded funds (ETFs) as the underlying securities and portfolio management provided by Charles Schwab Investment Advisory, Inc., the team that oversees more than $20 billion in managed portfolio assets
• Access to approximately 20 globally diversified asset classes including equities, fixed income, real estate, and commodities across U.S., international and emerging markets, and an FDIC-insured cash allocation
• Technology-driven daily portfolio monitoring and automatic rebalancing to keep the portfolios aligned to clients’ chosen investment strategies
• Automated tax loss harvesting available at no cost for portfolios starting at $50,000
• The ability to automatically fund accounts on a recurring basis

• Fully paperless account open and account management
• Live help from investment professionals if needed and service support available 24 hours a day, seven days a week and 365 days a year

Bettinger added that the development of Schwab Intelligent Portfolios is part of Schwab’s ongoing commitment to provide quality investment advice to a broad spectrum of investors. “We’ve seen strong growth in our traditional advisory solutions as more investors have sought out professional investment advice, and we believe there will always be people who prefer a relationship-centered model,” he said. “Schwab Intelligent Portfolios will make investing accessible to a broader group of investors who are less comfortable with a traditional approach to advice and prefer the power of technology to enhance and simplify their lives.”

A customizable version for Registered Investment Advisors (RIA) will be available shortly after the launch. Advisors will be able to apply their own branding to web and mobile applications for clients and have the option to modify asset allocations to customize the portfolios from a pool of eligible ETFs. Multiple pricing options will be available for these customized, white-labeled versions including an option with no platform or program management fee.

To sign up to receive details about Schwab Intelligent Portfolios as they become available, please visit www.intelligent.schwab.com.

About 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:

Brokerage Products: Not FDIC-Insured · No Bank Guarantee · May Lose Value

Schwab Intelligent Portfolios™ will be made available through Schwab Wealth Investment Advisory, Inc. ("SWIA"), which has filed an application with the SEC to register as an investment adviser. Portfolio management services will be provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). SWIA, CSIA, and Charles Schwab Bank are affiliates of Charles Schwab & Co., Inc. and subsidiaries of The Charles Schwab Corporation.

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) 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, 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; compliance and trade monitoring solutions; 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.

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Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20141027005923/en/

Charles Schwab
Michael Cianfrocca, 415-667-0344
[email protected]

Source: Charles Schwab Corporation

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