uploads///Advisor services

Charles Schwab Advisor Services Benefits from Innovative Offerings


Mar. 23 2016, Updated 8:07 a.m. ET

Advisor Services division

Charles Schwab’s (SCHW) Advisor Services division focuses primarily on online or virtual advisory programs. These programs have the potential for strong growth in the long term. The Advisor Services division’s assets make up 46% of Charles Schwab’s total client assets. The company provides custodial, trading, and support services to independent IAs (investment advisers), retirement business services to independent retirement plan advisers, and record keepers under this division.

Charles Schwab’s Advisor Services division reported total client assets of $1.2 trillion in 4Q15—a 1% rise over 4Q14 and a 4% rise over the previous quarter. Clients in the division added new assets totaling $21.3 billion. Client assets expanded on market appreciation and new investments.

Here’s how a few of the company’s peers in the brokerage industry have fared in net profits during the last fiscal year:

  • Interactive Brokers Group (IBKR) posted $459 million.
  • TD Ameritrade Holding (AMTD) posted $787 million.
  • E*TRADE Financial (ETFC) posted $293 million.

Together, these companies make up 1.4% of the Vanguard Financials ETF (VFH).

Focusing on PR and education

Charles Schwab focuses on education and enhancing its relationship with its advisers. The company recently held its Impact Conference, hosting 5,000 advisers, exhibitors, sponsors, and media to discuss new technologies, offerings, leadership, and talent. The company has released enhancements to PortfolioCenter, its desktop, cloud-based platform for portfolio management and reporting, which helps advisers manage daily workflow for billing, data exporting, and client reporting more efficiently.

Charles Schwab has also introduced new capabilities to Schwab OpenView Gateway to facilitate tighter integration with the Schwab Advisor Center through increased single sign-on opportunities.

In next part, we’ll discuss Charles Schwab’s daily trades in 1Q16.

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