Charles Schwab will introduce Schwab Consulting Services, a wrap account service that gives the 6,000 independent advisers using its Schwab Institutional service access to 50 money managers, which are still being selected by Callan Associates and Schwab, said Lance Berg, Callan spokesman. Managers will be monitored by Callan. More than 12 investment styles are represented.
The service, which should be available at an asset-based fee of less than 1%, will be launched in the second quarter and complement Schwab’s existing managed account offering for advisers.
The managed account service is available three ways: Directly, through independent arrangements between investment advisers and the managers; through Managed Account Connection, featuring managers dedicated to working with investment advisers and that have lowered their account minimums and management fees for advisers working with Schwab; and through Schwab consultants, who provide assistance with manager selection, ongoing due diligence and performance reporting.
