Charles Schwab Collective Trust Funds Surpass
$10 Billion in Assets under Management
Funds Increasing in Popularity with a Compound Annual Growth Rate of 29 Percent
June 23, 2010 09:03 AM Eastern Daylight Time
SAN FRANCISCO--(EON: Enhanced Online News)--Charles Schwab announced today that assets under
management in its collective trust funds, designed specifically for retirement plan sponsors and participants and
available through Charles Schwab Trust Company, a division of Charles Schwab Bank, recently surpassed $10
billion. The appeal of these funds, which include active and index target date retirement trust funds, stable value fund,
fixed income, and equity funds, has grown consistently in the past five years among both plan sponsors and
retirement plan participants. From 2005 through 2009, Schwab’s collective trust funds have grown at a compound
annual growth rate of 29 percent.
Schwab’s collective trust funds provide plan sponsors and participants with diversified portfolios across an array of
asset allocation strategies based on a non-proprietary investment sub-advisor model, which provides access to each
sub-advisor’s expertise in a specific asset class. The use of sub-advisors gives Schwab the flexibility to replace
managers and can increase the comfort level of plan sponsors who prefer a multiple manager strategy. In addition,
the funds’ collective trust structure helps keep costs down, another key benefit for investors. Collective trust funds
can also offer more transparency of underlying holdings, and because only eligible retirement plans may invest, the
possibility of relatively predictable and consistent cash flows.
“We have seen very strong interest in collective trust funds, largely because plan sponsors are increasingly
enthusiastic about Schwab’s open-architecture approach to using independent sub-advisors in the funds,” said John
Sturiale, investment officer at Charles Schwab Bank and managing director with Charles Schwab Investment
Management. “Plan sponsors a