Managed Account Select®

Your financial picture becomes more complex as your assets grow. Take a more sophisticated approach to investing through Managed Account Select.

A separately managed account is a portfolio of individual securities managed on your behalf by a professional asset management firm. You own the individual securities, which can provide the ownership, control, and transparency you deserve. We’ll work with you to find the managed account that fits your needs.

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Ready to take your portfolio to the next level?

Contact a Schwab Financial Consultant or call us at 866-855-9041.

Unlock an elite investment option

When you invest in a separately managed account through Managed Account Select, you’ll enjoy these advantages:

Choice. You'll have access to an expansive range of investment strategies and the power to choose one focused strategy or to diversify across several asset categories.

Quality. Your account will be managed by the respected, carefully vetted third-party professional asset manager you choose, and Charles Schwab Investment Advisory, Inc. (CSIA)1 holds them all to rigorous, research-based quality standards.

Flexibility. Direct ownership of underlying securities lets you make adjustments—tax-loss harvesting or security or industry restrictions2—based on your full financial picture.

Partnering At every step of the way, you can work with a Schwab Consultant to help you find an appropriate solution to address your unique goals and needs.

Transparency. You'll have a clear view of the individual securities you own, plus ready access to account details and trade information.

Value. You can access the expertise of high-caliber asset managers and specialized strategies with lower account minimums and at a competitive price, helping to keep more of your money working for you.

Find the strategy that's right for you When you invest through Schwab Managed Account Select, you can choose from a wide range of investment strategies, including: Domestic and international equity strategies Fixed income strategies, including bond ladders Balanced strategies that include multiple asset classes All strategies are managed by professional, third-party asset managers, who apply their unique insights, experience, and investment savvy on your behalf. These strategies and asset managers undergo rigorous review by CSIA,1 which helps ensure that you have a variety of qualified asset managers to choose from.

Working together for you As a Managed Account Select investor, you’ll be backed by a team committed to supporting your success: Your Schwab Consultant, who gets to know your unique situation and recommends appropriate strategies A third-party asset manager, who invests on your behalf per your chosen managed account strategy CSIA,1 which evaluates and monitors the performance of asset managers and strategies

Managed accounts vs. mutual funds and ETFs

While mutual funds, exchange-traded funds (ETFs), and separately managed accounts each offer professional management and a wide range of investment strategies, there are distinct differences. Consider your unique circumstances and financial needs to determine which option best suits you.

Does it allow:	Mutual funds	ETFs	Separately managed accounts
Ownership of underlying securities	No	No	Yes
Daily transparency into portfolio holdings and transactions	No	Usually	Yes
Tax-loss harvesting of underlying securities	No	No	Yes3
Customization of portfolio contents	No	No	Yes2
Portability of underlying holdings	No	No	Yes
Potential for unwanted capital gains distributions	Yes	Rarely	No

Requirements	Mutual funds	ETFs	Separately managed accounts
Account funding	Cash only	Cash	Cash or securities
Minimum investment at Schwab	As low as $100	One share	Equities: Typically $100,000 Fixed income: Typically $250,000 Balanced: Typically $250,000
Fee structure	Flat asset-based fee (Other fees such as transaction fees, operating expenses, and commissions [loads] may apply.)	Flat asset-based fee (Trade commission may apply)	Tiered, asset-based fee4 (No trading or transaction fees)

Frequently asked questions

What is a managed account?

A managed account (or separately managed account) is a portfolio of individual securities, such as stocks or bonds, that is managed on your behalf by a professional asset management firm. Unlike with a mutual fund or exchange-traded fund, you directly own the individual securities instead of pooling your assets with other investors. Each separately managed account follows a focused strategy within a specific asset class or investment style.

Are there minimum investments to open a managed account with Schwab? 

Yes. The minimum investment to open a managed account at Schwab varies depending on strategy and fund manager. Typical minimum investments:

• Equity strategies: $100,000
• Fixed income strategies: $250,000
• Balanced strategies: $250,000
  

What are the typical annual fees for managed accounts at Schwab? 

Our asset-based fees are blended on a tiered scale and decline with additional assets.⁴

• Fees for equity strategies start at 1.35%.
• Fees for fixed income strategies start at 0.65%.
• Fees for balanced and equity index strategies start at 0.95%.

You may be able to take advantage of lower pricing by combining multiple Managed Account Select accounts within your household, provided they are of the same asset class.⁵

How does a separately managed account provide flexibility and control?

When you invest in a managed account, you individually own the underlying securities. This gives you more ability to make adjustments based on your specific needs or goals. Working with most asset managers,³ you can:
 

• Exclude a particular security or industry from your account²
• Manage tax implications and support tax efficiency through tax-loss harvesting
• Elect to invest in environmental, social, and governance integration

What strategies can I invest in? Am I limited to Schwab products?

No. Schwab believes in giving investors the freedom to choose from respected third-party investment management firms. You can select from more than 45 asset managers representing approximately 100 individual investment strategies.

Will I have to work with a new contact at Schwab?

No. If you have an existing relationship with a Schwab Consultant, you can continue to work with him or her to review, select, and monitor your managed account. Your Schwab Consultant will communicate with your selected asset manager on your behalf.

1. Charles Schwab Investment Advisory, Inc. ("CSIA") is an affiliate of Charles Schwab & Co., Inc. ("Schwab"). The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed accounts of money managers ("MMs") to investment advisors or their clients. CSIA is an affiliate of Schwab that evaluates the MMs in Schwab's Select program.

2. Amount and type of investment restrictions must be reasonable and are subject to the manager's acceptance.

3. Services may vary, depending on which investment firm(s) you choose.

4. The asset-based fee does not cover (i) certain costs or charges imposed by third parties, including odd-lot differentials, American Depositary Receipt fees, exchange fees, and transfer taxes mandated by law; (ii) charges for special services elected by you, including periodic distribution fees, electronic funds and wire transfer fees, certificate delivery fees, and reorganization fees; (iii) dealer markups and markdowns on fixed income securities; and (iv) execution of transactions in securities by other broker-dealers.

5. Schwab calculates household fees in Managed Account Select® ("Select") by totaling the value of client assets in their managed accounts within the following strategy categories: equity, ETF, fixed income, fixed income ladder. Assets in equity strategies are charged according to the applicable fee schedule category (i.e., regular equity strategies, index-based strategies, or ThomasPartners, Inc. strategies). Diversified Portfolios, Master Limited Partnership ("MLP") strategies, and options-based and balanced strategies are charged according to the regular equity fee schedule. Preferred stock strategies are charged according to the fixed income (non-ladder) fee schedule. Schwab charges the combined assets in householded managed accounts with equity strategies in the following order according to the applicable fee schedule category: (i) accounts with equity strategies (other than index-based strategies, if any); (ii) accounts with index-based strategies (if any); and (iii) accounts with ThomasPartners, Inc. strategies. ERISA accounts can be householded only with other ERISA accounts of identical registration.

The Managed Account Select program is sponsored by Schwab. Please read the Schwab Managed Account Services™ Disclosure Brochure for important information and disclosures. In addition, please read the participating manager's disclosure brochure, including any supplements, for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Services may vary depending on which money manager you choose and are subject to a money manager's acceptance of the account.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.

Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.