Client assets associated with Schwab Institutional, a provider of custodial, operational and trading support for independent fee-based investment advisors, increased 18% to $365 billion between June 2004 and June 2005, while the number of individual client accounts associated with Schwab Institutional increased six percent to 1.3 million.
Through its subsidiaries, The Charles Schwab Corporation gathered $11.2 billion in net new assets in the second quarter of 2005. Schwab Institutional represented more than 50 percent of this total, and its total client assets represented just under one-third of The Charles Schwab Corporation’s $1.106 trillion in total client assets.
“In the first half of 2005, I am very pleased with the feedback we are getting on the excellent service we are providing. Equally rewarding is watching the success our clients are having using all of the services we offer to help them grow,” said Deborah Doyle McWhinney, president of Schwab Institutional. “The Schwab Institutional team is focused on helping our clients compete and win business. The growth we are seeing is evidence that advisors value the products and services we provide.”
During the first half of 2005, Schwab Institutional introduced a number of tools and services to help advisors manage the growth and efficiency of their businesses. The new offerings included an enhanced eDelivery enrollment process that includes the added advantage of lower $12.95 pricing for advisors who sign clients up for eDelivery products; more than 50 Business Consulting Services workshops for advisors, including sessions on marketing, technology, compliance, transition planning, and mergers and acquisitions; and the latest in the series of Schwab Market Knowledge Tools(TM) reports, “Key Strategies for Building Optimal Client Relationships: Analysis of Advisor End-Client Feedback.” In addition, advisors gained access to resources available through partnerships with other enterprises within The Charles Schwab Corporation, including access to US Trust strategies via Schwab Institutional’s managed accounts platform and a new pledged asset line of credit product from Schwab Bank.