Charles Schwab today announced it has launched Institutional Intelligent Portfolios, an automated digital investment management platform designed specifically for independent registered investment advisors. Institutional Intelligent Portfolios allows RIA firms flexibility in constructing portfolios from a wide range of ETFs, as well as the ability to brand the digital experience for their clients, the company says.
“Institutional Intelligent Portfolios can be used by RIA firms to enhance their current business model or to develop new lines of business” says Neesha Hathi, Schwab’s senior vice president of advisor services technology solutions.
Firms can create their own set of unique portfolios by choosing from over 450 ETFs representing 28 asset classes. Those ETFs represent more than 80% of the total ETF assets currently held by advisor clients at Schwab and represent almost 100% of the advisors’ client ETF assets invested in the 28 asset classes represented on the platform.
“Advisors have a lot of flexibility in how they design the portfolios from a range of taxable, nontaxable and municipal portfolios,” says Naureen Hassan, Schwab’s executive vice president of investor services segments and platforms. “Once they design the portfolios, how they choose to modify them over time is up to them.”
Portfolios must maintain a 4% cash balance. Advisors can brand the client experience with their firm’s logo and contact information.
Signing up clients is simple––clients complete an investor risk profile that’s mapped to a portfolio based on the scoring of the profile. The advisor reviews the results, and upon approval the money is invested. Once an account is established, it can be enrolled for electronic delivery of all trade confirmations, statements and other documents. Clients can access their account online using Schwab Alliance or through a dedicated website or mobile app.
Institutional Intelligent Portfolio accounts will be integrated with Schwab’s existing systems. Advisors will be able to access accounts through Schwab Advisor Center. Data downloads will be available to advisors’ portfolio management systems. In addition, users of Schwab’s OpenView Gateway will be able to access real time information on these accounts through participating third party applications.
Pricing is based upon total assets custodied with Schwab outside of the Institutional Intelligent Portfolios program. For advisors with less than $100 million in AUM with Schwab, there will be a 10 basis points platform fee. For firms with more than $100 million, there will be no platform fee. A specialized service team will support advisors and their clients using the platform.
For more information, visit https://institutionalintelligent.schwab.com/advisor