Schwab sees 20% growth in assets after reaching $1.2 trillion milestone

Schwab sees 20% growth in assets after reaching $1.2 trillion milestone
Schwab sees 20% growth in assets after reaching $1.2 trillion milestone

Omar Aguilar, investment director at Schwab Asset Management, said Monday that it is considering a new boost in asset growth, up to an annual average of 20%, after its investment management arm reached the $1.2 trillion milestone.

The manager attributes the expansion to the enormous investment reach of the parent company. Schwab is the largest custodian of registered investment advisors, while 25 million retail investors use its brokerage platform.

Aguilar oversees $1.2 trillion in a suite of ETFs, mutual funds and separately managed accounts, after the assets cleared the 13-digit hurdle in late 2023 as markets shook off recession fears in a general rebound.

“We have the luxury of having incredible distribution capabilities within our core company, which will drive our business 15% to 20% annually over the next seven years,” said Aguilar, who is based in San Francisco and has served as CEO and CIO of Schwab Asset Management from 2022.

Schwab Asset Management’s position within a larger investment firm gives it a somewhat “integrated” distribution network, where it can access the millions of investors who use the parent company’s brokerage platform.

Schwab is the fifth-largest issuer of exchange-traded funds in the U.S., and its nearly $350 billion package has more than doubled since 2019, according to Bloomberg Intelligence.

Aguilar also explained that he is looking to grow Schwab Asset Management’s model portfolio business over the next few years. He estimated that between 50,000 and 75,000 million dollars are currently invested in his models.

 
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