Your financial picture can become more complex as your assets grow. Consider taking a more sophisticated approach to investing through Managed Account Select ® .
A separately managed account is a portfolio of individual securities managed on your behalf by a professional asset management firm. You invest in the individual securities, which can provide the ownership, control, and transparency you may seek. We'll work with you to find the managed account that fits your needs.
Contact your Schwab Financial Consultant or connect with us to learn more.When you invest in a separately managed account through Managed Account Select, you'll enjoy:
You'll have access to a range of investment strategies and the power to choose one focused strategy or to diversify across several asset classes.
Your account will be managed by the carefully vetted third-party professional asset manager you choose, and the Schwab Center for Financial Research (SCFR) 1 holds them all to rigourus, research-based quality standards.
Direct ownership of underlying securities lets you request to make adjustments—tax-loss harvesting and security or industry restrictions 2 .
A Schwab Financial professional can help you find an appropriate solution to address your unique goals and needs.
You'll have a clear view of the individual securities you own, plus ready access to account details and trade information.
You can access the expertise of experienced asset managers with low account minimums and at a competitive price, helping to keep more of your money working for you.
When you invest through Schwab's Managed Account Select, you can choose from a wide range of strategies, including:
All strategies are managed by professional, third-party asset managers, who apply their unique insights, experience, and investment acumen on your behalf.
These strategies and asset managers undergo ongoing rigorous review by SCFR, which assures you have a variety of qualified asset managers to choose from.
Flat asset-based fee (Other fees such as transaction fees, operating expenses, and commissions [loads] may apply.)
Flat asset-based fee (Other fees such as transaction fees, operating expenses, and commissions [loads] may apply.)
Managed Account Select Tiered, asset-based fee 3 (No trading or transaction fees.) Fees start at: Equities: 1.00% Fixed Income: 0.65% Balanced: 0.95% Bond Ladders: 0.45%Tell us about yourself so we can help connect you to the support you need. Just answer a few questions and we’ll reach out by email or phone.
A managed account (or separately managed account) is a portfolio of individual securities, such as stocks or bonds, that is managed on your behalf by a professional asset management firm. Unlike with a mutual fund or exchange-traded fund, you directly own the individual securities. Each separately managed account is designed to follow a specific asset class or achieve a targeted investment objective.
Are there minimum investments for Managed Account Select strategies at Schwab?
Yes. The minimum investment to open an account in Managed Account Select varies depending on strategy and asset manager. Typical minimum investments:
Our asset-based fees are blended on a tiered scale and decline with additional assets. 3
You may be able to take advantage of lower pricing if you have multiple Managed Account Select accounts within your household, provided they are of the same asset class. 4
How does a separately managed account provide flexibility and control?
When you invest in a managed account, you own the underlying securities. This provides you with the ability to request for adjustments based on your specific needs or goals, such as:
No. Schwab believes in giving investors the freedom to choose from experienced third-party investment management firms. You can select from more than 50 asset managers representing approximately 145 individual strategies.
How are these strategies and asset managers chosen?
Schwab Center for Financial Research (SCFR), a division of Charles Schwab & Co., Inc., has a team of analysts who research, evaluate, and perform ongoing due diligence on the asset managers and strategies in Managed Account Select. SCFR's evaluation of asset managers and strategies for Managed Account Select, both qualitative and quantitative analyses, are conducted to provide a diverse array of strategies across multiple investment styles.
Will I have to work with a new contact at Schwab?
No. If you have an existing relationship with a Schwab Financial professional, you can continue to work with him or her to review, select, and monitor your managed account. Your Schwab Financial professional will communicate with your selected asset manager on your behalf.
1. The Schwab Center for Financial Research ("SCFR") is a division of Charles Schwab & Co., Inc. ("Schwab") that evaluates money managers ("MMs") in Schwab's Managed Account Select ("Select") program. The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed account strategies or MMs to investment advisors or their clients.
2. Amount and type of investment restrictions must be reasonable and are subject to the manager's acceptance.
3. The asset-based fee does not cover (i) certain costs or charges imposed by third parties, including odd-lot differentials, American Depositary Receipt (ADR) fees, exchange fees, and transfer taxes mandated by law; (ii) charges for special services elected by you, including periodic distribution fees, electronic funds and wire transfer fees, certificate delivery fees, and reorganization fees; (iii) dealer markups and markdowns on fixed income securities; and (iv) execution of transactions in securities by other broker-dealers. For important information about the frequency and cost of trades executed through broker-dealers other than Schwab, see schwab.com/assetmanagertradeawaypractices.
4. Schwab calculates account grouping fees in programs by totaling the market value of client accounts within a strategy category and charging those accounts according to the applicable fee schedule. Diversified Portfolios, master limited partnership ("MLP"), options-based, and balanced strategies are subject to the Equity fee schedule. Preferred stock and convertible bond strategies are subject to the Fixed Income fee schedule. ** Retirement plan accounts subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), as well as charitable remainder trusts, may only be aggregated with accounts that have identical account registrations.
The Managed Account Select program is sponsored by Schwab. Please read the Charles Schwab & Co., Inc. Disclosure Brochure for: Schwab Managed Account Services™ Wrap Fee Program, Schwab Managed Portfolios™ Wrap Fee Program, Schwab Financial Planning Services for important information and disclosures. In addition, please read the participating money manager's (MM's) disclosure brochure, including any supplements for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Investment advisors are not owned by, affiliated with, or supervised by Schwab. Services may vary depending on which MM you choose and are subject to an MM's acceptance of the account.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio.
This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.
Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
