50 years ago, Schwab helped bring the stock market from Wall Street to Main Street by putting clients first and empowering them with the innovative technology and excellent service they needed to invest in equities with confidence.
Now, Schwab is applying that same approach to the fixed income market with the acquisition of the Wasmer Schroeder Strategies—fixed income strategies managed by a team with over 30 years of industry-leading experience. Wasmer Schroeder had a long history of providing client-specific options in fixed income, and now Schwab brings that expertise to you.
So what exactly does this mean for you?
Well, the main benefit is that Schwab clients now have access to tax-exempt and taxable separate account bond strategies for investors in any tax bracket. These are managed by the experienced professionals who supported the Wasmer Schroeder Strategies and are now part of Charles Schwab Investment Management, Incorporated, one of the industry's largest and most experienced asset managers.
These strategies are tailored to meet different types of goals, with each one specifically designed to seek to provide three overarching benefits:
They can generate a source of steady retirement income…
Help reduce portfolio risk associated with your equity investments…
And help keep you on track with your financial goals, even as interest rates fluctuate.
On top of that, our team's experience and skill are enhanced by sophisticated technology that allows them to efficiently analyze bonds and create better outcomes for clients.
And you won't have to worry about navigating the fixed income market on your own. Our team of experienced professionals is always on your side, putting your interests first. They use their expertise to seek market inefficiencies and reduce transaction costs…potentially minimize your tax burden…and aim to maximize returns.
So all of this—the technology, the research, the industry experience—it's all about simplifying the world of fixed income and putting the client first, just like Schwab has always done.
As of July 1, 2020, the portfolio management teams for the Wasmer Schroeder Strategies transitioned to CSIM with CSIM assuming portfolio management services for the Strategies. CSIM is a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. ("Schwab"). Both CSIM and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.
Please refer to the Charles Schwab Investment Management, Inc. ("CSIM") Wasmer Schroeder Strategies Disclosure Brochure for additional information.
There are risks associated with any investment approach, the Wasmer Schroeder Strategies have their own set of risks. The Wasmer Schroeder Strategies invests primarily in fixed income instruments and as such the strategies are subject to various risks including but not limited to interest rate risk, reinvestment risk, credit risk, default risk and event risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio.
Tax exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and CSIM does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.