Schwab Advisor Services has expanded the number of mutual funds RIAs can acquire without transaction fees.
The move nearly doubles the number of institutional, no transaction fee (INTF) funds available through Schwab’s platform to approximately 2,000 from 58 asset managers. Institutional shares are typically only available to investors who meet certain thresholds. They usually carry lower fees than other share classes and require minimum investments that vary by fund, but can be as high as five or six figures.
Schwab’s INTF roster now includes funds from AB, Akre, Alger, AMG, American Beacon, Artisan, Baron, Buffalo, Carillon, Cliffwater, Federated, Gabelli, Harding Loevner, Hartford, Jensen, John Hancock, Lazard, Manning & Napier, Matthews, Natixis/Loomis, NYLI, Oakmark, Parnassus, Performance Trust, PGIM, Royce, Segall Bryant, Thornburg, Victory, Virtus, Voya, Wasatch and William Blair.
“This robust capability will provide independent advisors seamless access to the most trusted institutional funds, enhancing both advisor and client investment optionality,” Jalina Kerr, head of advisor experience for Schwab Advisor Services, said in a statement. “Since the last expansion, we’ve seen exceptional adoption–AUM up 22% YoY–a testament to the need this meets.”
Previously, the program included about 1,200 funds from 25 managers. According to Schwab, many of the new funds have 4-star and 5-star Morningstar ratings.
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