Introduction to Model Market Center™

Overview

Model Market Center™ offers you access to a large selection of model portfolios through a seamless integration with iRebal®, the powerful rebalancing tool available at no additional cost* for accounts managed through Schwab Advisor Center®.

Model Market Center makes it possible to personalize your clients' portfolios without the day-to-day operational burden of building your own models, and helps you avoid the increasing costs and rigidity of traditional institutional money management. You can service clients across asset levels, from the emerging to high-net worth investor.

Research and subscribe to models from the Model Market Center, and then use iRebal to create blended models and design custom portfolios based on your client needs and implement using your own investment guidelines while maintaining full trading authority.
 

Model Market Center is designed for independent Registered Investment Advisors (RIAs) who are looking to reduce costs associated with portfolio construction while retaining full control over their clients' portfolios and investing according to their firm's investment philosophy.

Access

  • Research over 500 models comprised of mutual funds, ETFs and equities—based on risk category, portfolio turnover, performance, and more—to identify models of interest
  • Review collateral and marketing material associated with each model to assist in your due diligence process
  • Your clients don't have to complete any paperwork, and you don't have to contact an asset manager—simply access the platform and subscribe to available models

Analyze

  • Use the FinMason Model Impact Tool, available via integration with Model Market Center, to evaluate portfolio risk vs. targeted projections and outcomes
  • Identify and compare models listed in Model Market Center that match a client's risk profile and investment needs

Blend

  • Create blended models using a combination of available models with your own strategies and maintain within a single client account/portfolio
  • Customize portfolios for clients that align with your clients' individual goals

Implement

  • Incorporate available models into your existing iRebal rebalancing process, while retaining trading discretion and control over client accounts
  • Approve and edit orders in iRebal before they are sent for execution
  • Receive dashboard alerts from managers regarding new models, model changes, model removals, and more
     

Advisors can access Model Market Center through iRebal. Once in iRebal, Model Market Center can be found under the Models tab, located at the top of the page, or at the Model Market Center portlet located near the bottom of the iRebal home page.

Easily filter your Model Market Center dashboard view to include only the details relevant to you by using the filter icon at the top of each column or by choosing the columns to search and view using the Filters tab and/or Columns tab located on the right side of the page.

The Model Detail screen shows the security allocations as well as additional documents to help you evaluate the model. You can select up to five models to Subscribe and/or Blend before implementation.
 

How do I access Model Market Center? 
Model Market Center is accessible from within iRebal, the powerful rebalancing tool available at no additional cost for accounts held with Charles Schwab.

Who should use Model Market Center? 
Model Market Center is designed for independent Registered Investment Advisors (RIAs) who want to reduce the costs associated with portfolio construction, but still invest according to their investment philosophy and retain full control and responsibility over their clients' portfolios.

Who is responsible for determining whether a model is right for use?
As the independent advisor and fiduciary, you're responsible for due diligence on any model or manager, as well as making sure the model is suitable for a given advisory client account, both upfront and over time. Charles Schwab is not responsible for manager or model due diligence or suitability for use with any client.

What is the cost for using Model Market Center?
Model Market Center is free of charge for use on accounts managed through Schwab Advisor Center. However, some models charge a Strategist Fee in basis points. These fees are set by the model manager and are displayed on the model page. Note that some models have no Strategist Fee associated with them—these usually contain ETFs or mutual funds proprietary to the model manager.*

How do I know if a model charges a Strategist Fee? 
If a model charges a Strategist Fee, it will be shown on the model's dashboard and model detail screens under the Strategist Fee column.

How are Strategist Fees collected? 
When you subscribe to a model with a Strategist Fee, you must provide a Management Fee Account for billing. iRebal will then keep track of the value of the accounts the RIA has assigned to that model and will post an invoice at the end of each month on the iRebal home page. The amount due will be debited from the RIA's designated Management Fee Account approximately 10 business days after the invoice is posted. 

If I subscribe to a model with a Strategist Fee in Model Market Center, will I be automatically charged? 
You will not be charged a Strategist Fee until you assign an account to the model(s) to which you subscribed.

How will I be notified in the event my subscribed model is terminated?

  • If a manager decides to unpublish their model(s), the Model Manager will notify all impacted advisors. You'll see a message regarding this event in the Notifications section of the Model Market Center.
  • If a model manager is terminated, Schwab will notify all impacted advisors about the termination, and will post a notification in the Model Market Center.

Will using Model Market Center impact my clients' experience?
Using Model Market Center will not impact your clients' experience at all. Their statements will not change, and even if you use a model that charges a Strategist Fee, that fee will be debited against your firm's management fee account, not the clients' account(s).

When can my office get access to iRebal and Model Market Center? 
You need to complete the iRebal interest survey to join the waitlist. The interest survey is available on the Advisor Services iRebal page.

Once my firm is enabled, how do I access iRebal? What permissions do I need?
Once your firm is enabled for iRebal, your security administrator should add the iRebal Access permission to your Schwab Advisor Center user ID in order to access iRebal. 

iRebal users can be set up with different permissions to separate roles and responsibilities in your firm. Only Schwab Advisor Center user IDs you identify will be granted access to iRebal. Although users who have access to iRebal may submit rebalances and review results, they require additional permission to Edit, Approve, and Submit trades.

If your user ID has the iRebal Access permission, you can launch iRebal from the Trading tab on Schwab Advisor Center.
 

For questions about using Model Market Center, call the iRebal Support team at 855-640-2472 from Monday through Friday from 9 a.m. to 5:30 p.m. ET.

For additional information, go to the following resources:
Model Market Center Factsheet
Model Market Center FAQs
Model Market Center Available models
Model Market Center blended models
 

How to get started in iRebal®
How to rebalance in iRebal®
How to work with Model Market Center™
How to work with Schwab Advisor Center® security features
How to work with Schwab Advisor Center® user security groups
Introduction to iRebal®

* Standard Schwab custody fees and fund management fees apply. For models that charge a Strategist Fee: The Strategist Fee, in basis points, is set by the Model Manager and can be seen directly on the model page in the Model Market Center.

† Schwab and FinMason are separate, unaffiliated companies. Schwab is not responsible for each other's opinions, policies, and services. The FinMason Model Impact information, printouts, and any information from the Model Market Center is intended for investment professional use and viewing only and is not a substitute for appropriate model or other investment due diligence. It may not be distributed to members of the public, nor used in written form as sales literature for public use.

Material made available through the Model Market Center is provided by affiliated and unaffiliated Model Managers and information providers. Schwab has not paid for or been involved in the preparation of the content, and has not verified, endorsed or approved the content. Schwab assumes no responsibility for any fact, recommendation, opinion, or advice contained in any such model portfolio or materials and expressly disclaims any responsibility for any investment decisions or for the suitability of any security or transaction based on it. Any mention of specific managers and/or models should not be considered an endorsement or recommendation by Schwab. Users of Model Market Center are responsible for all upfront and ongoing manager and model due diligence.

Certain model attributes are sourced from Informa PSN. The PSN Data Set and any other Informa content is supplied by Zephyr, A Division of Informa Business Intelligence, Inc. The PSN Data Set may not be copied or distributed and is not warranted to be accurate, complete or timely. Schwab and Informa Business Intelligence, Inc. are separate unaffiliated companies and are not responsible for each other's services.

Schwab typically receives remuneration from ETFs and mutual funds and/or their managers that participate in the MMC for administrative and/or other services.

Model Market Center leverages iRebal® to provide independent RIAs access to model portfolios provided by affiliated and unaffiliated Model Managers. 

iRebal® is a technology offering of Schwab. Rebalancing does not protect against losses or guarantee that an investor's goals will be met. Market volatility, volume, and system availability may delay account access and trade executions.

Schwab does not provide investment planning, legal, regulatory, tax or compliance advice. Consult professionals in these fields to address your specific circumstances.
 

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