DJ TIERNEY: Today, investors are seeking both customization and tax-efficiency when it comes to their investments. At Schwab, we are here to help advisors deliver what investors are asking for.
Hi, I’m DJ Tierney, Investment Portfolio Strategist at Charles Schwab. In this short video, I’m going to talk about Schwab Personalized Indexing, an advisor-led solution from Schwab Asset Management. It’s a separately managed account that offers customizable, index-based investing, with tax-efficient management. It’s simple, straightforward, easy to implement, and easy to scale. With an account minimum of just $100,000, Schwab Personalized Indexing is available to more investors than ever before. And with fees maxing out at 0.25%, it’s an affordable way to deliver benefits to advisor clients. Let’s take a closer look at some of the key benefits of this offer.
First, Schwab Personalized Indexing is tax-efficient. Using a process called tax loss harvesting, it monitors each client’s account daily to look for opportunities to lock in tax losses, thereby helping to potentially increase a client’s after-tax return.
Second, it’s customizable. The advisor selects one of the four offered indices and personalizes the account by designating investment exclusions. Personalization can help investors identify with the investment strategy, and possibly stay committed to the strategy for longer timeframes.
Third, it’s professionally managed. Our portfolio management team leverages advanced technology to optimize each client’s portfolio and monitor it daily, freeing up the advisor’s time to tend to other aspects of a client’s portfolio and their experience.
And, finally, we’ve built digital capabilities into Schwab Personalized Indexing for advisors and clients to provide ease of use and transparency.
Some of the key features of the digital experience include digital onboarding. Advisors can now enroll most account types online, which means fewer errors, faster processing, and a more streamlined workflow experience.
The advisor digital interface makes it easy and quick to deliver personalization at scale. Using a simple dropdown menu, the advisor can select the index their client wants to track.
Most advisor clients’ accounts can be further customized by excluding individual securities, sub-industries, and industries. This is not a one-size-fits-all offer.
And, finally, the digital dashboards provide real-time access to account information like tax savings. Advisors and their clients can login anytime of day or night to see their portfolio.
If you think Schwab Personalized Indexing might be a good fit for your clients, please reach out to your Schwab Asset Management director. We look forward to hearing from you.
