Introduction to Schwab Institutional Intelligent Portfolios®

Introduction to Schwab Institutional Intelligent Portfolios®

Institutional Intelligent Portfolios® is an automated investment management platform developed exclusively for investment advisors who custody with Schwab. Advisors use the platform to design their own customized ETF or mutual fund portfolios, and provide a fully digital onboarding experience with automated trading and rebalancing. An advisor-branded website and mobile application offers your clients a sophisticated, digital experience.

Robust ETF or mutual fund Portfolios designed by your firm

  • Create a diverse set of portfolios for your clients reflecting your investment strategy.
  • Thousands of eligible ETFs and mutual funds are available.
  • Customize your target allocation and drift tolerance for each asset class.

Advisor-branded digital experience for your clients

  • Branded client website and mobile experience branded with your firm's logo, contact information, and disclosures.
  • Visualization of portfolio and asset allocation, performance, and activity.
  • Integrates your own Form ADV, service agreement and privacy policy into account opening.
  • Supports co-browsing with clients, so you can "see what they see."

Automated Rebalancing, Tax-loss Harvesting and Client Onboarding

  • Provides automated, daily rebalancing with tax-loss harvesting for accounts valued above $50,000.
  • Offers paperless onboarding with streamlined account open workflows. Advisors can assign a portfolio or leverage the integrated client risk assessment questionnaire.
  • Works with Schwab systems and the services you use daily, you can see client accounts in Schwab Advisor Center.
  • Account data delivered in Schwab data downloads for easy import into third-party tools, including portfolio management and financial planning systems.
Minimum Investment
  • $5,000
  • Advisor may set higher minimums for clients.
Account feeNo account service fees, trading commissions or custody fees are charged to clients.
Funding

Institutional Intelligent Portfolios accounts can be funded with cash deposits or positions transferred from another account. Cash deposit methods include:

  • Check deposits (live and remote deposit)
  • Cash journals (internal transfers)
  • ACH (MoneyLink®)
  • Inbound wire
Advisor PFA Role
  • Withdrawal power financial advisor is the only applicable advisor PFA role for Schwab Intelligent Portfolios accounts and is applied automatically during the account opening process.
  • Advisors cannot be added to existing Schwab Intelligent Portfolios accounts.
  • If your client requests to add you to an existing Schwab Intelligent Portfolios account, a new Schwab Institutional Intelligent Portfolios account must be opened, and the assets journaled from the existing account to the new one.
Converting Accounts
  • You can initiate a conversion of your client's existing account to an Institutional Intelligent Portfolios account by accessing the Account Management page on Schwab Advisor Center.
  • You can select a customized portfolio, and your client sees the portfolio allocation during the approval flow.
  • Your client approves the conversion online or through a mobile device.
Tax ConsiderationsAdvisors can offer tax loss harvesting. Clients can opt in with a $50,000 minimum at account level.
Reporting
  • Fully paperless account open and account management, including statements, confirmations, disclosure deliveries, and communications. Clients receive email alert notifications.
  • Reporting can be accessed in accounts on the Account Documents page of InstitutionalIntelligent.schwab.com or SchwabAlliance.com.
CostAdvisors pay no platform fee for Institutional Intelligent Portfolios, regardless of their AUM.
Eligible for IIPNon-US-citizenship with domestic Home/Legal address and phone number.
Ineligible for IIP

The following are ineligible for IIP:

  • End-client is an organization.
  • Minor role on account is 18 years of age or greater.
  • Foreign Home/Legal address.
    • End-clients enrolled in IIP who change Home/Legal address to non-US address become ineligible.
      • See FAQs section for closure options.

Institutional Intelligent Portfolios® FAQs

For more questions, contact:
Email: IIPService@schwab.com
Phone: 877-768-5280
Monday – Friday, 8:00 a.m. to 7:00 p.m. ET

Institutional Intelligent Portfolios® is a technology and service platform made available by Schwab Performance Technologies (“SPT”) to independent investment advisors (“Advisors”) who maintain a business relationship with Schwab Advisor Services™, a division of Charles Schwab & Co., Inc. (“Schwab”). Schwab, a registered broker-dealer and member SIPC, provides custody, trading and support services. Brokerage products, including the Schwab One® brokerage account, are offered by Schwab. SPT and Schwab are separate companies affiliated as subsidiaries of The Charles Schwab Corporation, but their products and services are independent from each other.

Charles Schwab & Co., Inc. and Charles Schwab Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services, including the Schwab One brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products are offered by Charles Schwab Bank, SSB, Member FDIC and an Equal Housing Lender.

The cash allocation in Institutional Intelligent Portfolios will be accomplished through enrollment in the Schwab Intelligent Portfolios Sweep Program (Sweep Program), a program sponsored by Charles Schwab & Co, Inc. By enrolling in Institutional Intelligent Portfolios, clients consent to having the free credit balances in their Schwab Intelligent Portfolios Solutions brokerage accounts swept to FDIC-insured Deposit Accounts at Charles Schwab Bank through the Sweep Program. Funds deposited at Charles Schwab Bank, SSB are insured, in aggregate, up to $250,000 per depositor, for each account ownership category, by the Federal Deposit Insurance Corporation (FDIC). The interest rate on cash balances in the Sweep Program is set on the first business day of each month equal to the seven-day yield (with waivers) for the Schwab Government Money Fund – Sweep Shares (symbol: SWGXX) as determined at the end of the prior month. See Current Interest Rates for more details. Charles Schwab Bank, SSB is affiliated with Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.

Accounts must maintain a minimum balance of $5,000 to be eligible for automatic rebalancing.

Diversification, asset allocation, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab affiliates earn revenue from the underlying assets in Institutional Intelligent Portfolios® accounts. This revenue comes from managing Schwab ETFs™ or SchwabFunds® and providing services relating to certain third-party funds that can be selected for the portfolio, and from the cash feature on the accounts. Revenue may also be received from the market centers where ETF trade orders are routed for execution.

Charles Schwab & Co., Inc. (member SIPC) receives remuneration from fund companies in the Mutual Fund OneSource (R) service for recordkeeping and shareholder services, and other administrative services.

IIP disclosure brochure offer:  Please contact your independent investment advisor ("Advisor") directly for a copy of its disclosure brochure and privacy policy.

The Sweep Program is offered by Charles Schwab Bank, member FDIC and an Equal Housing Lender.

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