Schwab Charitable, one of the largest and fastest-growing donor-advised funds in the nation, has set a record for its charitable assets under management and for its annual grants during fiscal 2012 (ended June 30), the firm announced Tuesday.
The fund has $3.16 billion in assets under management and gave out $524 million in grants for the fiscal year. The firm also announced an expansion of its investment options for donor-advised funds.
"Despite uncertainty in the broader economic environment, we are thrilled that we have set these new records," said Kim Laughton, Schwab Charitable president, adding that it is "a demonstration of our clients' commitment to charitable causes and a reflection of the high levels of satisfaction with their charitable accounts."
Schwab has now given out more than $3 billion in grants to more than 62,000 charitable organizations. Donor-advised funds allow investors to receive tax advantages while donating to charities over time.
Schwab is adding a new short-term income pool to its investment choices and is making changes to some of its existing investment pools in the next few weeks. The new Principal Short-Term Income Fund is a diversified fund with a strong historical performance and relatively low volatility when interest rates fluctuate, Schwab says.
Schwab Charitable's investment pools will include four asset allocation pools (for donors wanting a diversified investment strategy in one investment choice) and nine individual asset class pools for donors seeking a personal investment strategy.
Also, investment advisors will now be able to manage their clients' charitable accounts using the same platform, Schwab Advisor Center, that they use to manage other accounts at Schwab. The platform will include the addition of online forms and applications, enhanced views of clients' contribution history and details regarding grant activity.