Schwab Advisor Services has expanded its institutional no transaction fee (INTF) mutual fund offering for independent registered investment advisors (RIAs). The expanded line-up includes the addition of more than 800 institutional funds, without a transaction fee, from 15 leading third-party asset managers.
The 15 asset managers are: Blackrock, Cohen & Steers, Columbia, Delaware + Waddell & Reed, Diamond Hill, Franklin Templeton, First Eagle, Guggenheim, Goldman Sachs, Invesco, Janus, Legg Mason, Lord Abbett, Nuveen, and Principal.
“This offer increases independent advisors’ ability to personalize their clients’ investment portfolios and to put more of their clients’ initial investments to work,” said Jalina Kerr, managing director, client experience, Schwab Advisor Services. “Our goal is to deliver a customized investment experience for the advisor and their end-client with a one-stop-selection of the institutional funds advisors choose most frequently for client portfolios.”
The newly available funds are in addition to the more than 130 no-transaction-fee, institutional share class funds from T. Rowe Price already accessible to Schwab’s independent advisor clients, that was announced in December.
The new line-up, which will also be available to advisors who custody with TD Ameritrade Institutional, gives advisors no transaction fee choices from a larger number of funds with lower net expense ratios, and more funds with an Overall Morningstar RatingTM of 4 or 51.
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Charles Schwab & Co. Inc. (“Schwab”) has entered into a long-term strategic relationship with T. Rowe Price under which Schwab receives compensation for promoting certain actively managed T. Rowe Price funds to Schwab's retail clients and the clients of registered investment advisors that custody assets at Schwab.
Charles Schwab & Co., Inc. (member SIPC) receives remuneration from fund companies participating in the institutional no transaction fee (INTF) platform for recordkeeping and shareholder services, and other administrative services. Schwab receives greater remuneration on institutional share classes that participate in INTF than it would if the share class were made available with a transaction fee.
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1 Source: Morningstar 6/30/22