Schwab Expands Its Fixed Income Offering With the Launch of Five Wasmer Schroeder™ Strategies
November 18 2021 - 8:35AM
Business Wire
New additions include two positive impact
strategies, bringing new choices for clients who want to align
their investments with their values
Schwab Asset Management, the asset management arm of The Charles
Schwab Corporation, today announced the expansion of its suite of
fixed income separately managed account strategies available to
Charles Schwab & Co., Inc. (Schwab) clients with five Wasmer
Schroeder Strategies, including two positive impact strategies.
The positive impact strategies include the Wasmer Schroeder
Positive Impact Bond strategy (PIBX), a taxable, limited duration
strategy, and the Wasmer Schroeder Positive Impact Tax Exempt
strategy (PIFI), an intermediate duration, high credit quality
municipal strategy. Known for its rigorous approach to fixed income
management, the Wasmer Schroeder team employs a distinctive
use-of-proceeds methodology to identify bonds that finance projects
and initiatives with positive social or environmental impacts,
distinguishing Wasmer Schroeder strategies from offerings that rely
solely on third-party ESG ratings or scoring lists.
“Generating income in the current environment is challenging,
and investors need solutions that address a wide variety of
objectives as well as unique preferences,” said John Sturiale, Head
of Product Management and Strategy, Schwab Asset Management. “We
are pleased to expand the universe of fixed income choices for
Schwab clients and deliver more options for those who wish to make
an impact with their portfolio.”
Schwab is also adding three strategies that focus on higher
yielding sectors than Wasmer Schroeder’s core intermediate
products, providing new options for clients seeking to generate
additional income. These additions include the Intermediate
Strategic Tax Exempt strategy (ISTEFI) along with the Intermediate
IG Credit (ITTX+) and Multi-Sector Income (MITX) strategies, both
of which are taxable strategies.
Schwab acquired Wasmer Schroeder’s comprehensive lineup of tax
exempt and taxable strategies and brought on its deeply experienced
investment team in July 2020. The launch of additional strategies
delivers on Schwab’s objective of providing clients with more fixed
income choices and compelling value through the Wasmer Schroeder
acquisition.
The Wasmer Schroeder Strategies now available to Schwab clients
include a total of 25 strategies, including nine actively managed
strategies, two positive impact strategies, two ultra-short
strategies, and a series of 12 bond ladders. For more information,
visit www.schwab.com/wasmer-schroeder.
About Schwab Asset Management
Schwab Asset Management offers a focused lineup of competitively
priced ETFs, mutual funds and separately managed account strategies
designed to serve the central needs of most investors. As part of
the Charles Schwab organization, we champion the needs of investors
and seek to enhance the financial lives of our clients in all we
do. Operating our business through clients’ eyes and putting them
at the center of our decisions, we aim to deliver exceptional
experiences to investors and the financial professionals who serve
them. Established in 1989, Schwab Asset Management manages more
than $640.5 billion in assets and draws on the knowledge and
expertise of more than 119 investment professionals (figures as of
9/30/2021). More information is available at
www.schwabassetmanagement.com.
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:
Schwab Asset Management is the dba name for Charles Schwab
Investment Management, Inc. (CSIM). Schwab Asset Management is a
part of the broader Schwab Asset Management Solutions organization
(SAMS), a collection of business units of The Charles Schwab
Corporation aligned by a common function—asset management-related
services—under common leadership. CSIM and Charles Schwab &
Co., Inc. (Schwab) Member SIPC are separate but affiliated
companies and subsidiaries of The Charles Schwab Corporation.
Please refer to the Charles Schwab Investment Management,
Inc. Wasmer Schroeder Strategies Disclosure Brochure for additional
information. Wasmer Schroeder Strategies are available through
Schwab's Managed Account Connection® program ("Connection"). Please
read Schwab's disclosure brochure for important information and
disclosures relating to Connection and Schwab Managed Account
Services™.
Investments in managed accounts should be considered in view of
a larger, more diversified investment portfolio. There are risks
associated with any investment approach, and the Wasmer Schroeder
Strategies have their own set of risks. The Wasmer Schroeder
Strategies invests primarily in fixed income instruments and as
such the strategies are subject to various risks including but not
limited to interest rate risk, reinvestment risk, credit risk,
default risk and event risk. Fixed income securities are subject to
increased loss of principal during periods of rising interest
rates. Fixed income investments are subject to various other risks
including changes in credit quality, market valuations, liquidity,
prepayments, early redemption, corporate events, tax ramifications
and other factors.
Tax exempt bonds are not necessarily a suitable investment for
all persons. Information related to a security's tax-exempt status
(federal and in-state) is obtained from third-parties and CSIM does
not guarantee its accuracy. Tax-exempt income may be subject to the
Alternative Minimum Tax (AMT). Capital appreciation from bond funds
and discounted bonds may be subject to state or local taxes.
Capital gains are not exempt from federal income tax.
Because environmental, social and governance (ESG) strategies
exclude some securities, ESG-focused products may not be able to
take advantage of the same opportunities or market trends as
products that do not use such strategies. Additionally, the
criteria used to select companies for investment may result in
investing in securities, industries or sectors that underperform
the market as a whole.
(1121-1GTV)
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Christine Hudacko Charles Schwab 415-961-3790
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