Fixed Income Strategies
Schwab offers short-term, intermediate, and long-term fixed income managed accounts, as well as bond ladder managed accounts. All are competitively priced and professionally managed by leading third-party investment managers, including PIMCO.
What do I get?
With Managed Account Select® at Schwab:
- Access over 75 investment strategies from professional third-party asset managers.
- All asset management firms are rigorously screened by Schwab.
With PIMCO Municipal Bond Ladder managed accounts:
- Access five professionally managed strategies, available only at Schwab, that seek to generate income by leveraging opportunities in the muni bond market.
- These accounts can also help you minimize the effect of interest rate fluctuations.
What are the fees and minimums?
- Investment minimum: $250,000
- Annual fee: 0.25%—0.65%, depending on account size
Ready to get started?
Contact us to discuss the fixed income managed account that's right for you.
Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Please read Schwab’s disclosure brochure for important information and disclosures relating to managed accounts at Schwab.
Services may vary depending on which asset managers you choose, and are subject to an asset manager’s acceptance of the account.
1. Accounts must have a balance of $300,000 or more to elect income distributions. Individual municipal bonds may not be tax-advantaged, depending on the bond issuer and your state of residence. Bonds issued in U.S. territories are exempt from federal and state taxes.
2. Please note that fees shown above are blended. Fees are directly deducted quarterly. Separately managed account fees include Schwab’s commissions and PIMCO’s investment management fees, but do not include dealer markups/markdowns or other fees and expenses as described in Schwab’s disclosure brochure. The asset-based fee covers management fees and trade executions by Schwab. It 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.
Individual municipal bonds may not be tax-advantaged depending on the bond issuer and your state of residence. Bonds issued in U.S. territories are exempt from federal and state taxes.
Bond prices rise and fall daily, and municipal bonds are subject to various risks, including changes in interest rates, call risk, market conditions, and default risk. As interest rates rise, bond prices usually fall, and with them the value of your bonds. Bonds in the portfolios may be purchased at a premium, which may result in realized losses. Some municipal bonds may be difficult to sell. A bond issuer may be unable to make interest or principal payments, thereby resulting in a default. If this happens, the bond may have little or no value. The interest on municipal bonds may be determined to be taxable after purchase. Bond ladders focused on California municipal bonds are more susceptible to political, economic, regulatory, or other factors affecting issuers of California municipal securities, including an eroding tax base and budget and cash deficits.
The PIMCO Municipal Bond Ladder strategies are available through Schwab’s Managed Account Connection™ program (“Connection”). Please read Schwab’s disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services™. In addition, please read PIMCO’s Form ADV or brochure for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Bonds in the PIMCO Municipal Bond Ladder strategies may have a rating as low as A– at time of purchase. The strategies may hold callable bonds, which may increase interest rate risk exposure.
Charles Schwab & Co., Inc. ("Schwab") and Pacific Investment Management Company LLC ("PIMCO") are separate and unaffiliated companies.