The wealth management and investment needs of a millionaire client and those of a multimillionaire are not the same ,and Charles Schwab wants to make the distinction.
With a fast-growing cohort of high-net-worth and ultra-high-net-worth clients among the $7.6 trillion in client assets it manages, the company is sharpening its focus on these two groups.
From now, Schwab has two brands to manage its wealthiest clients, with their level of investible assets determining which they will be automatically enrolled into:
Both sets of clients will have access to one of the firm’s dedicated consultants, who will help them manage every aspect of their finances, including creating a financial plan and directing them to other specialists within the firm on topics including tax, trust and estate planning, equity compensation, retirement planning, trading, and education and family support.
Several other benefits are common to both client streams but UNHW clients will also have an integrated banking and wealth management experience including access to a senior banker from Charles Schwab Premier Bank.
“These new experiences reflect our commitment to deliver meaningful differentiation for the growing number of wealthy clients we serve, who are increasingly attracted to our breadth of services and outstanding value,” said Jonathan Craig, managing director and head of investor services at Charles Schwab. “While we have been providing some of these benefits to clients for some time, we’re excited to introduce new benefits and package them all together into a premier experience, and we will continue to build on it with additional benefits and capabilities in the future.”
The wealthier segment of Schwab’s client base has seen significant growth in recent years and now represents more than two-thirds of its total retail client assets.
In the last five years, the HNW group has grown 10% annually, while the UHNW group has grown by almost 20% over the same period.
“These branded experiences underscore Schwab’s ability to meet the specific needs of our wealthier clients, but we are equally committed to ensuring that every client at Schwab receives a great experience, from those just getting started to those building wealth,” Craig said. “We are proud to offer a range of services and capabilities for investors at every stage of their investing journey with a focus on delivering low costs and great value, products and experiences that make investing easy and accessible, and exceptional client service.”
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
