Charles Schwab 2006 Annual Report Download - page 25

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23
Schwab Financial Products develops the prod-
ucts and services needed to serve individual
investors, independent advisors, and corporate
retirement plans.
- Client assets in Mutual Fund OneSource®
funds grew 18 percent to $163 billion. It
remains one of the country’s largest “super-
markets” of no-transaction-fee mutual funds.
- Charles Schwab Bank completed a record
year with assets of $11 billion; outstanding
mortgage, home equity loans, and secured
lines of credit of $2.3 billion; and first mort-
gage originations of $1.2 billion.
- Total assets in separately managed accounts
rose 25 percent to nearly $33 billion.
Our money management subsidiary, Charles
Schwab Investment Management (CSIM), is
one of the nation’s largest money market
fund managers. CSIM provides oversight for
the institutional-style, sub-advised Laudus
Funds family and manages 69 Schwab Funds
mutual funds, including nine funds that
utilize our award-winning Schwab Equity
Ratings® for investment selection. As of year-
end, all nine of those funds have beaten their
benchmarks since inception or conversion to
Schwab Equity Ratings.
At mid-year, we introduced Schwab Managed
Portfolios, a suite of diversified portfolios that
combine mutual funds based on Schwab Equity
Ratings with funds chosen from Mutual Fund
OneSource. Schwab’s money managers create
and maintain these portfolios with initial invest-
ment minimums as low as $25,000, offering
professional advice at half the price offered by
our largest competitor. It has been our most
successful launch of any advice product.
During the year, we launched the Schwab
Inflation Protected Fund™ and the Laudus
Rosenberg International Discovery Fund. In
March, the Schwab Premier Equity Fund® was
closed to new investors, based on strong
demand in just its first year. We also expanded
access to research tools and trading to 22 hours
a day, seven days a week, for CDs purchased
through our Schwab BondSource™ platform.
We began 2007 by announcing the acquisition
of Global Real Analytics, LLC, a leader in
applied real estate analytics and Commercial
Real Estate Index products, and have
already filed a registration statement for
our first Schwab Global Real Estate Fund™.
Among other planned launches are three new
“fundamental” index funds – a first for Schwab.
2006 H I G HLIGH T S
- TOTAL CLIENT ASSETS IN MUTUAL FUNDS ROSE 20 PERCENT TO $590 BILLION
- CLIENT ASSETS IN SCHWAB FUNDS® AND LAUDUS FUNDS™ GREW 28 PERCENT TO $191 BILLION
S CH WA B F I N A NC I A L PR O D U C TS
Ron Toll, Schwab portfolio
operations manager
.