How to subscribe to an investment available on the Schwab Alternative Investment OneSource® Platform

How to subscribe to an investment available on the Schwab Alternative Investment OneSource® Platform

The Schwab Alternative Investment OneSource platform enables you to efficiently build diversified portfolios of non-listed registered alternative investment funds with no Schwab custody fees, low fund investment minimums, and the convenience you expect from Schwab.

More than 40 funds across eight alternative investment strategies are available through the Schwab Alternative Investment OneSource platform. Review the list of funds currently available on the Schwab Alternative Investment OneSource platform, including fund information, profiles, and other fund documents, to determine which one is right for your clients. Contact your local Schwab Portfolio Consultant to discuss the platform or available funds in more detail.

To subscribe to a fund available on the Schwab Alternative Investment OneSource platform, paper forms are available for all products and DocuSign® for some products.

All accounts
In addition to the information above, the following may be required:
Non-listed REITs and business development corporations (BDCs)
  • A selling agreement to invest in a specific fund (contact the fund issuer to determine if required)
Trust accounts
  • A copy of the trust document or trust certificate, required for certain funds
Alternative investments tool
  • The Access Alternative Investments Tooltip security function

For details, see How to use DocuSign.

  • Use the Alternative Investment OneSource Letter of Instruction form to complete the workflow.
  • Go to the forms library on Schwab Advisor Center and select the Alternative Investment OneSource Letter of Instruction. Click Select, and then select Open PDF.
  • Complete all necessary fields and save the form as a PDF document to your desktop.
  • Print the form and obtain the investment advisor's signature.
  • Go to the fund materials page and open the appropriate fund subscription document. Complete all necessary fields, save the form as a PDF document to your desktop, and print the document.
  • Obtain client signatures from all account holders for both documents.
  • Send the signed forms, as well as any other necessary documentation, to your Schwab service team via a Schwab Advisor Center service request.

Once you have submitted your request:

  • If forms were submitted using DocuSign, see the What's next? section of How to use DocuSign.
  • After making the payment, a "pending settlement" position will post to your client's account reflecting the value of the payment. Upon receipt of the final net asset value Tooltip (NAV) and the number of shares purchased, those shares deposit to your client's Schwab account, replacing the "pending settlement" position. Going forward, the value of the investment will fluctuate based on the NAV reported by the fund. In some cases, this settlement period can take up to 45 days to complete.
  • For questions regarding subscribing to a security on the Schwab Alternative Investment OneSource platform, contact the Schwab Alternative Investment OneSource hotline at 877-243-9271 or via a Schwab Advisor Center service request.

Form: Alternative Investment OneSource Letter of Instruction
Resource: Schwab Alternative Investment OneSource® fund contacts
Resource: Schwab Alternative Investment OneSource® fund list
Resource: Schwab Alternative Investment OneSource® platform

Why does Schwab offer pending settlement placeholders on purchases through the Schwab Alternative Investment OneSource platform but not on purchases through Schwab Alternative Investment Custody Services?
Schwab does not recognize a purchase on the Schwab Alternative Investment Custody Services platform as a trade and therefore cannot offer pending settlement placeholders. For Schwab Alternative Investment Custody Services purchases, Schwab does not execute trades as broker of record and confirmations come directly from the fund.

In comparison, for purchases on the Alternative Investment OneSource platform, Schwab will execute trades as broker of record. Schwab issues confirmations, not the fund.

My firm runs a fund that I would like Schwab to make available. Whom do I contact?
There are many criteria for a fund to be considered for inclusion on the Schwab Alternative Investment OneSource platform. Among the requirements are that the fund be registered and the asset manager have a dedicated sales team with the goal and capacity to distribute the fund nationally. Contact the Schwab Alternative Investment OneSource hotline at 877-243-9271 or via a Schwab Advisor Center service request for more information.

How to initiate a transfer or purchase for Schwab Alternative Investment Custody Services

How to transfer assets to a Schwab account

How to use DocuSign

Introduction to Schwab Alternative Investment Custody Services

The investor should carefully consider the investment objectives, risks, charges, and expenses before investing. The prospectus contains this and other information. It should be read carefully before investing.

Hedge funds, whether or not they are registered, often employ leveraging and other speculative practices that increase an investor's risk of investment loss, often charge high fees, and can be highly illiquid. Alternative investments may involve complex tax structures and delays in distributing important tax information.

Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should read carefully the related prospectus, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees, and expenses.

Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures, and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.

The Schwab Alternative Investment OneSource® platform does not provide investment advisors or their clients with advice about potential investment in participating funds. It is each investment advisor's responsibility to determine the suitability of such an investment for its clients. Alternative investments such as the participating funds are risky, and an advisor’s client may lose its entire investment in a fund.

Risks of REITs are similar to those associated with direct ownership of real estate, such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and creditworthiness of the issuer. Investing in REITs may pose additional risks such as real estate industry risk, interest rate risk, and liquidity risk.

See the Charles Schwab Account Agreement for terms and conditions that apply to accounts investing in funds through the Schwab Alternative Investment OneSource platform.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab receives remuneration from fund companies participating in the Schwab Alternative Investment OneSource platform for recordkeeping and shareholder services and other administrative services. Funds available for purchase on the Schwab Alternative Investment OneSource platform are intended only for U.S. residents.

This site does not constitute an offering and is meant only to provide a broad overview for informational and discussion purposes.

Third-party firms are not affiliated with Charles Schwab & Co., Inc.

All information provided here is subject to change.

DocuSign is not affiliated with or employed by Charles Schwab & Co. Inc

For investment professional use only—not for distribution or use with clients.

(0523-31U9)