Charles Schwab, in partnership with iCapital, has launched its alternative investments platform for retail clients with more than $5 million in household assets in Schwab accounts. The news comes about six months after a pilot alternatives program was shared with a small group of these high-net-worth and ultra-high-net-worth clients.
“As our large and growing HNW and UHNW client base continues to turn to Schwab to meet a broad array of wealth, advice and investing needs, we are committed to continuing to expand our capabilities to serve their evolving needs and preferences,” Neesha Hathi, who heads Schwab's Wealth & Advice Solutions, said in a statement.
A recent survey of Schwab’s HNW clients found that over half expect to allocate at least 5% of their portfolio to alternatives over the next three years.
“Schwab serves more than a million multimillionaire investors, representing over $3 trillion in assets at Schwab, and we are proud that our breadth of products and services meet the specific needs of our wealthier clients,” according to Jonathan Craig, head of Investor Services.
The brokerage firm says it has provided independent advisors with services and support for their alternative investment clients “for many years and continues to invest in enhancing its capabilities to support advisors’ use” of these products.
More than 37% of advisors custodying at Schwab use one of the firm's alternative investment platforms, it adds, and RIAs’ investor clients have $58 billion in alternative assets custodied at Schwab.
Schwab’s alternatives platform for retail investors currently includes third-party funds that invest in private equity, hedge funds, private credit and private real estate. The firm says it plans to add additional asset classes, including exchange funds, and a broader menu of funds in each investment category.
Retail clients using the new platform can work with Schwab alternative investment consultants, as well as with their existing Schwab with their financial consultants, wealth consultants or wealth advisors.
The firm says retail clients with over $1 million in assets at Schwab are automatically enrolled in Schwab Private Client Services, and clients with over $10 million are enrolled in Schwab Private Wealth Services.
(Credit: Diego M. Radzinschi/ALM)
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