New Schwab Model Portfolios Designed to Help Advisors Keep Clients on Course

Nachrichtenquelle: Business Wire (engl.)
25.08.2020, 15:00  |  116   |   |   

Charles Schwab Investment Management, Inc. (CSIM), an asset management arm of The Charles Schwab Corporation, today announced the launch of a series of model portfolios available to advisors through the Envestnet Fund Strategist Network (Envestnet).

The new Schwab Model Portfolios offer advisors seven risk-based allocations, each using either low-cost market-cap-weighted ETFs or a blend of market cap and strategic beta ETF strategies. A behavioral overlay is also built into the models with the aim of helping advisors’ clients stay invested across market cycles and conditions.

The portfolios offer advisors two straightforward approaches to portfolio construction:

  • A Series – a broad asset allocation approach that uses traditional market-cap-weighted exposures to equity, fixed income and real assets for a diversified, low-cost core portfolio
  • AB Series – an approach that builds from the core and incorporates strategic beta, value, growth, and other sub-asset class allocation exposures

Average weighted expense for the model portfolios ranges from 0.04% to 0.12%* with a minimum investment of $25,000 in alignment with Envestnet minimum requirements. Standard Envestnet platform access fees also apply for advisors.

“The model portfolios can help advisors provide their clients with broadly diversified market exposures either in the form of low-cost core passive allocations or with the additional diversifying benefits of strategic beta,” said Jake Gilliam, Head of Multi-Asset Solutions at CSIM. “These investment solutions can free up advisors’ time to focus even more on wealth management and client relationships, which is especially important in the current environment.”

While the model portfolios are new on the Envestnet platform, Schwab has been working with advisors since early last year on how they can apply this portfolio framework approach on their own.

“This framework is built on decades of research and expertise, and advisor response to our approach has been very positive. Many also requested a platform-based solution to help them implement it, which led us to offer this new model portfolio structure,” said Gilliam. “For advisors who prefer to use the framework and implement it on their own, they certainly can, making any adjustments that best fit their business. For others who prefer the convenience and automated tracking and reporting of a platform solution, the Schwab Model Portfolios can be accessed through Envestnet.”

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