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Portfolio > Asset Managers

Schwab Advisory Assets Grow 31%

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NU Online News Service, Jan. 22, 2004, 11:31 a.m. EST – The Charles Schwab Corp., San Francisco, says it had good luck selling advisory services in 2003.[@@]

The company made its name as a discount broker, but it now owns U.S. Trust, has a big private client operation and operates a unit that supports independent advisors.[@@]

Clients put $41 billion more new assets into Schwab accounts with an “ongoing advisory component” in 2003 than they took out. Total assets in the accounts increased 31% between the end of 2002 and the end of 2003, to $436 billion, Schwab says.

Private-client assets increased 162%, to $16 billion, and 401(k) plan assets increased 23%, to $3.8 billion.

Schwab says it also shared business with the independent advisors. The volume of referrals to independent advisors increased 59% in 2003, to about $20 billion in client assets, Schwab says.

Schwab notes that it recently set up a program to help advisors handle succession planning issues, and it says 285 advisors have used Advisor WebCenter, a service that helps advisors put up Web sites.

The company as a whole is reporting $148 million in net income for the fourth quarter of 2003 on $1.1 billion in revenue, compared with a $79 million net loss on $986 million in revenue for the fourth quarter of 2002.


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