Charles Schwab 2015 Annual Report Download - page 50

THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)
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The following table presents a roll forward of client assets for the Schwab money market funds, Schwab equity and bond
funds and ETFs and Mutual Fund OneSource®:
Schwab Money Schwab Equity and Mutual Fund
Market Funds Bond Funds and ETFs OneSource®
Year Ended December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013
Balance at beginning of period $ 167,909 $ 167,738 $ 167,896 $ 88,450 $ 71,249 $ 49,587 $ 234,381 $ 234,777 $ 204,465
N
et inflows (outflows) (1,947) 287 (195) 15,542 11,398 8,311 (23,014) (8,925) (2,813)
N
et market gains (losses) and othe
r
186 (116) 37 (1,880) 5,803 13,351 (3,713) 8,529 33,125
Balance at end of period $ 166,148 $ 167,909 $ 167,738 $ 102,112 $ 88,450 $ 71,249 $ 207,654 $ 234,381 $ 234,777
The following table presents asset management and administration fees, average client assets, and average fee rate:
Year Ended December 31, 2015  2014  2013

Average
Client
Assets Revenue 
Average
Fee 
Average
Client
Assets Revenue 
Average
Fee 
Average
Client
Assets Revenue 
Average
Fee
Schwab money market funds      
before fee waivers $ 161,381 $ 947 0.59%$ 164,564 $ 957 0.58%
$ 162,484 $ 936 0.58%
Fee waivers (672)   (751)  (674)
Schwab money market funds 161,381 275 0.17% 164,564 206 0.13%
 162,484 262 0.16%
Schwab equity and bond funds and ETFs 102,486 217 0.21%  83,916 192 0.23%
 63,012 157 0.25%
Mutual Fund OneSource® (1) 225,347 764 0.34% 236,003 805 0.34%
 219,188 744 0.34%
Other third-party mutual funds and ETFs (1,2) 251,491 223 0.09%  241,314 210 0.09%
 223,095 176 0.08%
Total mutual funds and ETFs (3) $ 740,705 1,479 0.20%$ 725,797 1,413 0.19%
$ 667,779 1,339 0.20%
Advice solutions (3) :   
Fee-based $ 172,302 898 0.52%$ 160,721 840 0.52%
$ 136,353 718 0.53%
Intelligent Portfolios 3,274 - -  N/A N/A N/A  N/A N/A N/A
Legacy Non-Fee 16,463 N/A N/A  15,794 N/A N/A
 13,890 N/A N/A
Total advice solutions $ 192,039 898 0.47%  $ 176,515 840 0.48%
$ 150,243 718 0.48%
Other balance-based fees (2,4) 324,701 226 0.07% 297,499 234 0.08%
 249,619 216 0.09%
Other (2,5) 47   46  42
Total asset management  
and administration fees $ 2,650  $ 2,533  $ 2,315
(1) In 2015, certain Mutual Fund OneSource balances and revenues were reclassified to Other third-party mutual funds and ETFs. Prior-period information
has been recast to reflect this change.
(2) Beginning in 2015, Other third-party mutual funds and ETFs and Other balance-based fees are presented separately. Related revenues were previously
p
resented in Other. Prio
r
-period information has been recast to reflect this change. Other third-party mutual funds and ETFs include ETF OneSource.
(3) Beginning in 2015, Fee-based, Intelligent Portfolios and Legacy Non-Fee advice solutions are presented separately. Prior-period information has been
recast to reflect this change. Advice solutions include managed portfolios, specialized strategies and customized investment advice. Fee-based advice
solutions include Schwab Private Client, Schwab Managed Portfolios, Managed Account Select, Schwab Advisor Network, Windhaven Strategies,
Thomas Partners Dividend Growth Strategy, and Schwab Index Advantage advised retirement plan balances. Intelligent Portfolios include Schwab
Intelligent Portfolios™, launched in March 2015, and Institutional Intelligent Portfolios, launched in June 2015. Legacy Non-Fee advice solutions
include superseded programs such as Schwab Advisor Source and certain retirement plan balances. Average client assets for advice solutions may also
include the asset balances contained in the three categories of mutual funds listed above.
(4) Includes various asset-based fees, such as trust fees, mutual fund clearing fees, 401(k) recordkeeping fees, and other service fees.
(5) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.
N/A Not applicable.
Asset management and administration fees increased by $117 million, or 5%, in 2015 from 2014, and by $218 million, or
9%, in 2014 from 2013, due to the following items.
x Mutual fund and ETF service fees increased by $66 million, or 5%, in 2015 from 2014, due to higher net yields on
money market fund assets, growth in client assets in equity and bond funds and ETFs and other third party mutual
funds and ETFs, partially offset by a reduction in client assets in Mutual Fund OneSource. Mutual fund and ETF
service fees increased by $74 million, or 6%, in 2014 from 2013 due to growth in client assets in Mutual Fund