Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Portfolio Construction > Investment Strategies

Schwab Adds 5 New Strategies to Fixed Income SMA Offering

By Bernice Napach

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • It has added five Wasmer Schroeder Strategies: two tax-exempt, three taxable.
  • Two of the five are positive impact strategies.
  • Schwab now offers 25 Wasmer Schroeder Strategies.

Two days after Schwab Asset Management launched its first ETF focusing on environmental, social and governance factors, it added two fixed income impact strategies to its separately managed accounts offering for clients.

They are part of the asset manager’s Wasmer Schroeder Strategies, named for the company whose taxable and tax-exempt fixed income strategies Schwab acquired in July 2020.

The new impact strategies are the Wasmer Schroeder Positive Impact Bond strategy (PIBX), a taxable, limited duration strategy, and the Wasmer Schroeder Positive Impact Tax Exempt strategy (PIFI), an intermediate duration, high credit quality municipal strategy.

The positive impact strategies focus on identifying bonds that finance projects and initiatives with positive social or environmental impacts, using in-house, rather than third-party ESG ratings or scoring lists, according to Schwab.

The other three new strategies focus on higher yielding sectors than Wasmer Schroeder’s core intermediate products and include the taxable Intermediate IG [Investment Grade] Credit (ITTX+) and Multi-Sector Income (MITX) strategies and the Intermediate Strategic Tax-Exempt strategy (ISTREFI).

“Generating income in the current environment is challenging, and investors need solutions that address a wide variety of objectives as well as unique preferences,” said John Sturiale, head of product management and strategy, Schwab Asset Management, in a statement. “We are pleased to expand the universe of fixed income choices for Schwab clients and deliver more options for those who wish to make an impact with their portfolio.”

Schwab clients can now access a total of 25 Wasmer Schroeder Strategies, including nine actively managed strategies, two positive impact and two ultrashort strategies and a series of 12 bond ladders. The minimum investment is $250,000 for each strategy.

Bernice Napach

@Think_Napach

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.