$7.7 Billion in Net New Assets Fuel Record Year for Schwab Corporate Services
January 31 2005 - 9:00AM
PR Newswire (US)
$7.7 Billion in Net New Assets Fuel Record Year for Schwab
Corporate Services SAN FRANCISCO, Jan. 31 /PRNewswire-FirstCall/ --
Schwab Corporate Services, a leading provider of workplace
financial benefit plan services, posted record performance in 2004,
bringing in $7.7 billion in net new assets. The inflow included new
assets from Schwab's bundled retirement plan, third-party
administrator, designated brokerage and stock plan service
businesses. "Schwab Corporate Services grew at a record pace last
year by delivering great service, innovation and value to plan
sponsors and third-party administrators alike," said Charles R.
Schwab, chairman and CEO of The Charles Schwab Corporation. "The
business continues to fulfill a key part of our strategy to help
individual investors make the most of employer-sponsored savings
and investment plans. These plans are the cornerstone of retirement
savings for many of our clients." Schwab Corporate Services and the
other institutional businesses at Schwab play a vital role as the
firm continues to deepen relationships with individual investors by
serving them through the workplace. This month in its earnings
release, the firm announced record non-trading revenues for the
fourth quarter, including revenues contributed by Schwab Corporate
Services. 2004 Business Highlights "Record growth in net new assets
demonstrates our continued ability to meet marketplace demands for
excellent service and innovative products in all of our business
channels," said Jim McCool, president, Schwab Corporate Services.
Retirement Plan Services added $2.6 billion in net new assets in
2004 and announced 81 new bundled retirement plans. Schwab credits
growth in the bundled sector in part to its successful launch of
managed account and advice services at no additional cost.* Plan
Administrator Services (PAS) added $3.8 billion in net new assets,
and attracted 28 new third-party administrators (TPAs) to its
network. PAS provides trust and custody, trading and recordkeeping
solutions to TPAs. PAS introduced several new trust and custody
products last year, and the unit's Schwab Retirement Technologies
group successfully rolled out its new online Application Service
Provider (ASP) model, which clients are already utilizing to serve
more than 250,000 plan participants. Designated Brokerage added 56
new corporate clients in 2004 and brought in $1 billion in net new
assets. Designated Brokerage offers employee-monitoring solutions
to SEC- and NASD-regulated firms. A rebound in the financial
services industry and Schwab's service reputation and competitive
pricing contributed to the strong growth. Stock Plan Services
brought in $259 million in net new assets, and added over 40,000
participants and $9.3 billion in plan value in 2004. Stock Plan
Services provides equity compensation services to public
corporations. The unit's expertise in administering restricted
stock plans played an important role in its success. Such plans are
becoming increasingly popular as clients seek ways to augment their
traditional stock option plans. About Schwab Corporate Services
Schwab Corporate Services (SCS) provides services to retirement
plans, retirement plan sponsors and participants through Schwab
Retirement Plan Services, Inc. (SRPS), The Charles Schwab Trust
Company (CSTC), Schwab Retirement Technologies(R), and Charles
Schwab & Co., Inc. SCS also provides equity compensation plan
services and other financial and retirement services to
corporations and executives. SRPS provides recordkeeping and
related services with respect to retirement plans. CSTC, a
California state-chartered trust company, provides trust and
custody services with respect to benefit plans. Schwab Retirement
Technologies is engaged in developing and licensing proprietary
retirement plan recordkeeping systems to independent Third Party
Administrators. Charles Schwab & Co., Inc. (Member SIPC) is a
registered broker/dealer, offering the Schwab Personal Choice
Retirement Account(R) (PCRA), as well as other brokerage and
custody services to its customers. These entities are affiliates of
each other and are wholly owned subsidiaries of The Charles Schwab
Corporation. Total client assets in employer-sponsored retirement
plans at Schwab equaled $131 billion at the end of December 2004.
The Charles Schwab Corporation (NYSE / Nasdaq: SCH), through
Charles Schwab & Co., Inc. (member SIPC), U.S. Trust
Corporation (member FDIC), CyberTrader(R), Inc. (member SIPC) and
its other operating subsidiaries, is one of the nation's largest
financial services firms. (0105-3601) * "At no extra cost" means
that there is no cost for service outside the fees paid to SRPS and
Charles Schwab & Co., Inc. (CS&Co.) for recordkeeping and
related services, including trustee and custodial fees paid to The
Charles Schwab Trust Company. The advice, including the managed
account service, is provided by a third party, GuidedChoice, Inc.,
an innovator in the development and delivery of investment advice.
The GuidedChoice(TM) service and the investment advice are
formulated and provided by GuidedChoice Asset Management, Inc.
(GuidedChoice). GuidedChoice is not affiliated with, nor is it an
employee or agent of, CS&Co. or SRPS. The GuidedChoice service
is available to participants enrolled in plans that use the
recordkeeping and related services of SRPS. Availability subject to
regulatory requirements. Plan sponsors must elect to make the
GuidedChoice service available. Availability may be limited due to
plan type and plan provisions. Participant access to the
GuidedChoice service is facilitated through SRPS's affiliate,
CS&Co. Neither CS&Co. nor SRPS supervises, makes
recommendations with respect to, or takes responsibility for
monitoring the advice provided to participants by GuidedChoice.
These entities are affiliates of each other and are wholly owned
subsidiaries of The Charles Schwab Corporation. DATASOURCE: Charles
Schwab CONTACT: Mike Peterson, +1-330-908-4334, or , or Lindsay
Tiles, +1-415-667-3997, or , both of Charles Schwab Web site:
http://www.schwab.com/
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