Pay up or shove off, Charles Schwab Corp. has been telling mutual fund companies lately — most of them, anyway.
The discount brokerage firm is seeking new fees from funds in its Schwab “supermarket” and is showing the door to a few funds that so far say they won’t pay. Fund supermarkets, of which Schwab’s is one of the two biggest, have proved highly popular in providing one stop shopping for investors to buy and sell shares in thousands of funds operated by hundreds of fund companies.
But not all fund firms have gotten an ultimatum from Schwab. Industry behemoths Vanguard Group and Fidelity Investments say Schwab hasn’t approached them seeking new fee payments to keep their products in the Schwab supermarket — an apparent reflection of the importance of those fund giants to Schwab.
“We’ve had no contact with Schwab regarding any fee matters in the past several months, nothing from them at all,” says Vanguard principal and spokesman Brian Mattes.