Charles Schwab Evolution Reaches Milestone Serving the Wealth Management Needs of Affluent Investors

  Charles Schwab Evolution Reaches Milestone Serving the Wealth Management
  Needs of Affluent Investors

 Fifty percent of client assets now enrolled in some form of ongoing advisory

Business Wire

SAN FRANCISCO -- June 5, 2014

Charles Schwab, one of the largest full-service investment services firms with
more than $2.3 trillion in client assets, announced it has reached an
important threshold with half of its total client assets now enrolled in an
ongoing advisory relationship through its Investor Services businesses and the
7,000 independent Registered Investment Advisors (RIAs) it serves through
Schwab Advisor Services.

Walt Bettinger, Schwab president and chief executive officer (Photo: Business

Walt Bettinger, Schwab president and chief executive officer (Photo: Business

“We take pride in the role Schwab and the advisors we serve have played in
making high quality investing accessible and affordable for investors over the
last 40 years. Costs and convenient access will forever matter and be a core
part of our story. The steady growth we’ve made into wealth management
reflects a transformation in our firm that has been driven by the needs and
demands of investors as so many of them accumulate significant assets over the
course of their lives and increasingly look for professional help,” said Walt
Bettinger, Schwab president and chief executive officer, when announcing the
milestone in an employee communication today from the company’s headquarters
in San Francisco.

Schwab provides investors access to wealth management services directly
through its retail business as well as supporting independent RIAs with the
wealth management services they offer their clients through its decades-long
support of the RIA industry where it has been a leader since first launching
its Advisor Services business in 1987. “Today’s investors decide what type of
relationship they want based on their own specific needs and preferences,” Mr.
Bettinger said. “Many find appeal in the nationally branded, wealth management
services of a large firm, like those available through our financial
consultants in our retail business, while others seek the highly customized
and local expertise offered by independent RIAs. Together, we are reaching a
large and growing pool of investors looking for an alternative to the
traditional wirehouse brokerage model; which we believe continues to lose
favor among investors today.”

Mr. Bettinger noted that overall, across the retail and advisor services
businesses combined, average assets per client household are approximately
$500,000 at Schwab. Within Schwab’s retail business, the growth of affluent
assets reflects the evolution of the firm and its clients’ needs: as of
December 2013, accounts with more than $250,000 comprised nearly 85 percent of
total balances in retail accounts at Schwab; accounts in excess of $500,000
comprised more than 75 percent of all retail assets. Today more than 70% of
all retail client assets are now serviced by a dedicated local relationship
from a branch professional.

Describing the driving factor in the firm’s evolution, Bettinger highlighted
investors’ increasing demand for comprehensive financial advice and help
managing substantial assets, especially as millions of baby boomers continue
to approach and enter retirement following their peak earning and asset
accumulation years, and do so with a changing point of view about what they
want from their investment services firm. “Our research reveals a contemporary
affluent investor mindset: engaged, willing to ask tough questions of their
providers and demanding of quality, value and accountability. Especially when
it comes to their money, we’re seeing investors are more focused on substance
and becoming increasingly selective about the types of financial professionals
and firms that they place their trust in when it comes to helping manage the
assets they have accumulated over their lifetime. We believe effective wealth
management should combine a personal relationship with transparency, open
architecture, technology and accessibility that engages clients and gives them
a greater sense of confidence,”Bettinger said. “It is a philosophical
approach about focusing on the client that we’ve shared for the past 25 years
with independent advisors and we believe the underlying reason we’re seeing
both parts of the business grow in tandem.”

New Advertising

This month the company has begun running a series of new print and television
advertisements. One series of print ads are designed to highlight Schwab’s
support for independent RIAs and focus thematically on a “celebration of
independence.” The campaign began with a print ad featuring Chuck Schwab,
company founder and chairman, and will be followed later in June with online
ads featuring RIAs and their stories, each charting the advisor’s path to
independence and the power of their model for serving the wealth management
needs of their clients.

To showcase its evolving approach to wealth management within the retail
business, the company will also launch a series of advertisements on June 12
defining a “modern approach to wealth management,” that highlights the
importance of client/financial consultant collaboration, cost transparency,
value, broad access to third-party investment solutions, and a range of other
financial products and services available to clients.

“Following the depths of the financial crisis from the end of 2009 through
2012, our client assets grew by $529 billion, 65 percent more than four of our
largest publicly traded competitors combined^1,” Bettinger said in his note to
employees. “It’s a testament to your service to clients and commitment to
their financial well-being that during one of the toughest financial
environments in history, we’ve earned the trust of investors and advisors in
such significant numbers.”

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

More information is available at Follow us on Twitter,
Facebook, YouTube, LinkedIn and our Schwab Talk blog.


Wealth management refers to products and services available through the
operating subsidiaries of The Charles Schwab Corporation of which there are
important differences including, but not limited to, the type of advice and
assistance provided, fees charged, and the rights and obligations of the
parties. It is important to understand the differences when determining which
products and/or services to select.

There are certain eligibility requirements if you are interested in working
with a dedicated Financial Consultant. The Charles Schwab Corporation provides
a full range of securities, brokerage, banking, money management and financial
advisory services through its operating subsidiaries. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC,, offers
investment services and products, including Schwab brokerage accounts. Its
banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing
Lender), provides deposit and lending services and products.

Schwab Advisor Services serves independent investment advisors and includes
the custody, trading and support services of Schwab. Independent investment
advisors are not owned by, affiliated with or supervised by Schwab.

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



^1 TD Ameritrade, Bank of America Merrill Lynch, E*Trade and Morgan Stanley
Global Wealth Management

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Charles Schwab
Michael Cianfrocca, 415-667-0344
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