Charles Schwab Investment Management wants to move to a subadvised format from a fund-of-funds approach for four mutual funds in its MarketManager Portfolio, according to SEC filings. The change will lower overall expense ratios by 15 to 20 basis points. Shareholders will vote on the proposed changes May 28.
Schwab proposed hiring Eagle Asset, Harris Associates, TCW and Thornburg for the $187 million Growth Portfolio; Aronson + Partners, Berger Perkins, PIMCO and Eagle for the $123 million Balanced Portfolio; Royce & Associates, Tocqueville Asset Management, Veredus Asset Management and TCW for the $11 million Small Cap Portfolio; and American Century, Artisan, William Blair and Harris and for the $229 million International Portfolio.
Glen Mathiesen, a Schwab spokesman, said he could not comment on the matter during the SEC imposed quiet period.