Charles Schwab Enhances Institutional Intelligent Portfolios™
October 24 2016 - 5:30PM
Business Wire
Updates follow new research about how
independent advisors are using automated investment management
Charles Schwab today announced a number of new features and
enhancements to Institutional Intelligent Portfolios
— the automated investment management platform designed
specifically for independent advisors and sponsored by Schwab
Wealth Investment Advisory, Inc. The primary update is
enhanced portfolio customization, which launches next month and
will provide advisors greater flexibility to design portfolios
based on their investment philosophies. Other enhancements include
new account funding options, and ways for firms to manage multiple
Institutional Intelligent Portfolios programs. In early 2017,
Schwab will also roll out an updated client-user app for
smartphones and tablets that will enhance navigation and deliver a
more intuitive user experience.
“Automated investment management continues to be an important
and evolving trend in our industry. Our research shows that
advisors are optimistic that this technology can help scale their
businesses and allow them to stay competitive in the marketplace,”
said Jessica Heffron, vice president, client experience,
Schwab Advisor Services. “Most advisors tell us that the biggest
opportunity for automated investing tools is to more efficiently
serve smaller accounts or reach clients that their firms have been
unable to serve before.”
The company shared the news today at Schwab IMPACT, the nation’s
largest and longest-running annual gathering of independent
advisors. Among more than 30 technology-focused sessions at this
year’s event is an Institutional Intelligent Portfolios user panel
discussion, where three early adopters will share insights about
how they have built new offers on the platform. During this panel,
Schwab will also share findings from a recent study of more than
500 advisors who use or plan to introduce automated investment
management.
Schwab’s Automated Investment Management Research
Schwab surveyed more than 500 advisors to learn more about
sentiment and gather feedback from firms that already use or plan
to introduce automated investing offers. The survey participants
included Schwab client firms (70 percent) as well as advisors at
wirehouses, insurance broker/dealers, and other RIA firms.
Key findings from the study include:
- Overall, six in 10 advisors see
automated investing as a way to expand reach to clients they have
not typically served.
- Two thirds of current and future users
agree that automated investment management is a scalable and
efficient way to grow their business.
- When it comes to pricing, 83 percent of
advisors plan to offer asset-based pricing and 64 percent say their
automated offer will be priced lower than their traditional
offer.
- Few advisors are going completely
digital. Most advisors are incorporating some level of personal
interaction, which would largely include meetings and consultations
with the client over the phone or electronically (75 percent) or in
person (45 percent), in addition to investment management.
“Since launching Institutional Intelligent Portfolios in 2015,
there has been a lot of interest in automated investing solutions,
but launching a more digitally-based solution is proving to be a
significant strategic endeavor. The technology is only a piece of
complex equation. Even advisors who are early adopters are
approaching it judiciously in terms of implementation,” said
Heffron. “Those advisors who are already out in front on this
opportunity are using a ‘test and learn’ approach and are ready to
modify strategies and assumptions as this trend continues to unfold
in the market.”
Enhancements and updates to Institutional Intelligent
Portfolios
Schwab has worked with advisors to determine how this technology
can complement their long-term business strategies and to collect
feedback to help drive continued improvements to the offer,
including:
- Enhanced portfolio
customization. Schwab now offers more than 950 ETFs on the
Institutional Intelligent Portfolios platform — more than double
the number of ETFs that were available at launch last year.
Starting next month, all advisors will be able to create up to 45
advisor-defined asset classes in each portfolio and offer multiple
ETFs in each asset class.
- Multiple-program. Firms can now
offer separate programs at the advisor level or establish programs
to target specific client segments.
- New account funding options.
Advisors now have more account funding options, in addition to
cash, and can journal transfer of asset positions.
- Easier account open for clients.
Enhancements to the account opening process make account open
faster and more flexible.
- Client interface enhancements.
In early 2017, Schwab will roll out a new Institutional Intelligent
Portfolios app for both smart phones and tablets. The app will
continue to be advisor-branded and will now include streamlined
navigation and an improved client interface.
About the Charles Schwab 2016 Automated Investment Management
Research
The 2016 Automated Investment Management Research was conducted
for Schwab Advisor Services by Socratic Technologies Inc. Socratic
Technologies Inc. is not affiliated with, nor employed by Charles
Schwab & Co. Inc. All data is self-reported by study
participants and is not verified or validated. Advisors
participated in the study from May 16 to May 31, 2016. Study
participants were 509 advisors, including 359 advisors from firms
that custody with Schwab and 150 advisors from wirehouses,
independent broker dealers, insurance broker dealers, and other RIA
firms.
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 integrity.
More information is available at www.aboutschwab.com.
Follow us on Twitter, Facebook, YouTube,
and LinkedIn.
Disclosures
Through its operating subsidiaries, The Charles Schwab
Corporation (NYSE: SCHW) provides a full range of securities
brokerage, banking, money management and financial advisory
services to individual investors and independent investment
advisors. Its broker-dealer subsidiary, Charles Schwab & Co.,
Inc. (member SIPC, www.sipc.org), and affiliates offer a
complete range of investment services and products including an
extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan
services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based
investment advisors through Schwab Advisor Services. Its banking
subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing
Lender), provides banking and lending services and products. More
information is available at www.schwab.com and
www.aboutschwab.com.
For general informational purposes only. Meant for investment
advisor audiences.
Institutional Intelligent Portfolios™ is an ETF program made
available through independent investment advisors that maintain a
business relationship with Schwab Advisor Services™. The program is
sponsored by Schwab Wealth Investment Advisory, Inc. (“SWIA”), a
registered investment advisor. SWIA is an affiliate of Charles
Schwab & Co., Inc. (“CS&Co.”) and a subsidiary of The
Charles Schwab Corporation.
Independent investment advisors are not owned by, affiliated
with or supervised by Charles Schwab & Co. Inc. (“Schwab”). The
mention of the above firms is not, and should not be construed as a
recommendation, endorsement or sponsorship by Schwab.
Follow @Schwab4RIAs #SchwabIMPACT for news and
updates from IMPACT® 2016
(1016-NA3T)
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161024006256/en/
Charles SchwabRob Farmer, 415-920-3816Rob.Farmer@schwab.comorThe
Neibart GroupMayrav Weiss, 914-500-5874sas@neibartgroup.com
Charles Schwab (NYSE:SCHW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Charles Schwab (NYSE:SCHW)
Historical Stock Chart
From Apr 2023 to Apr 2024