Fixed Income Managed Accounts
Schwab offers short-term, intermediate, and long-term fixed income managed accounts, as well as bond ladder managed accounts. All are competitively priced and managed by leading third-party investment managers, including PIMCO.
What do I get?
With Managed Account Select® Fixed Income Strategies at Schwab:
- Choose from a wide range of investment strategies offered by third-party investment managers.
- All third-party investment management firms are rigorously screened by Schwab.
With PIMCO Municipal Bond Ladder managed accounts through Schwab Managed Account Connection®:
- Access to professionally managed strategies, available only at Schwab, that seek to generate income by leveraging opportunities in the municipal bond market.
- These strategies can also help you manage the effect of interest rate fluctuations.
What are the fees and minimums?
- Investment minimum: Typically $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.
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.
PIMCO Municipal Bond Ladder strategies buy bonds whose interest is exempt from federal, and in some cases, state income tax at the time of purchase. All bonds will be exempt from the Alternative Minimum Tax at the time of purchase. Please consult your tax advisor regarding your personal tax situation.
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. 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. Concentration risk may increase within a state specific or state preference portfolio. If a particular state faces major headline risk, even high-quality bonds within the portfolio may be adversely affected from a pricing standpoint.
Please read the Schwab Managed Account Services™ Disclosure Brochure for important information and disclosures relating to Managed Account Connection® and Schwab Managed Account Services™. In addition, please read PIMCO’s disclosure brochure, including any supplements, for important information and disclosures.
Charles Schwab & Co., Inc. ("Schwab") and Pacific Investment Management Company LLC ("PIMCO") are separate and unaffiliated companies.