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Schwab offers proprietary mutual fund portfolios
FWR Staff
30 August 2006
Program features $50k minimum, low fees and a fee-back satisfaction promise. Charles Schwab is marketing a line of proprietary mutual-fund portfolios to retail investors with at least $50,000 to invest. The San Francisco-based discount broker-dealer has sweetened the pot with a promise to rebate program fees to unhappy investors.
Eight portfolios "Many investors" are "put off by the high fees often associated with other mutual fund advisory programs" even as they look for "investment expertise to keep their portfolios in line given the unpredictable movements of the market," says Walt Bettinger, president of Schwab Investor Services. "We created Schwab Managed Portfolios to address this increasing demand from investors for a simpler but sophisticated and affordable solution to their investment needs." The program features eight pre-set mutual-fund portfolios , at four risk levels using equity funds from Schwab Investment Management. Fees start at 0.5% and may go as low as 0.25% at higher asset levels. The mutual funds also come with a satisfaction guarantee that will rebate the previous quarter's program fee to unsatisfied customers. There's more information on Schwab's program here. -FWR .