Portfolio Connect Section

How to work with fee schedules in Schwab Advisor Portfolio Connect®

How to work with fee schedules in Schwab Advisor Portfolio Connect® 

With Schwab Advisor Portfolio Connect, you can create fee schedules to help calculate management fees. Once you create a fee schedule, you can assign it to one or more accounts or account groups, giving you the flexibility you need to support your firm’s unique billing requirements.

User access

Users with the Schwab Advisor Center® firm security administrator (FSA) Tooltip designation have access to all accounts and data within Portfolio Connect.

Non-FSA users have:

  • The same account data access on Portfolio Connect that they do on Schwab Advisor Center
  • No access to firm level data

See How to work with Schwab Advisor Center® user security groups for details.

BrowserGoogle Chrome provides the best browser experience and is strongly encouraged.

Note: Some Schwab Advisor Portfolio Connect elements are not supported on Internet Explorer or Microsoft Edge.
LoginPortfolio Connect is only accessible through Schwab Advisor Center by going to More > Portfolio Connect > Continue to Portfolio Connect.
  1. Within Schwab Advisor Portfolio Connect, go to Billing > Fee Schedules to access the fee schedule list.
  2. At the top right of the fee schedule list, click New Fee Schedule.
  3. Enter a fee schedule name in the Display Name field and a Description.
  4. Choose the fee schedule options that apply and then click Save.

Fee schedule settings

Bill inAdvanceBill for the upcoming quarter using the previous quarters ending account or account group value
ArrearsBill for the quarter that just ended using that quarters ending account or account group value
Round total fee amountYesRound the total fee amount to the nearest dollar
NoNot round the total fee amount to the nearest dollar
Prorate First & Last InvoiceYes – Prorate FirstFor new accounts, billed invoices will be billed mid-period based on their billing start date
Yes – Prorate LastFor closed accounts, billed invoices will be billed mid-period based on their account closed date (arrears only)
NoNot prorate invoices mid-period based on new or closing accounts and will bill on the total billing period
Prorate FlowsYesAdjust the fee based on additions or withdrawals made mid-period in the account or account group
NoNot adjust the fee based on additions or withdrawals and will bill on the total account or account group value
Billing FrequencyQuarterlyBill accounts or account groups on a calendar quarter cadence
MonthlyBill accounts or account groups on a monthly cadence
CashIncludeInclude cash in the total billable value
ExcludeExclude cash in the total billable value

 

Fee Rate Settings

Fee TypeFlat FeeApplies a flat dollar amount regardless of the portfolio value. Proration is not applicable with this fee type
Single Rate Qualified Tiers -

Applies a single rate across the total account value

  • Example: all assets are billed at 1.5% until the total account value exceeds 1 million, at which point all assets are billed at .8%
Traditional Tiered Rate -

Allows multiple rates across the total account value

  • Example: the first 1 million billed at 1.5%, and all assets above 1 Million billed at .8% annually
Minimum FeeGuarantees the fee amount will not fall under the minimum amount entered regardless of Account Value
  1. Within Schwab Advisor Portfolio Connect, go to Billing > Fee Schedules, to access the fee schedule list.
  2. Click on the fee schedule name.
  3. Click Edit in the top right of the page.
  4. Make changes to the fee schedule options.
  5. Click Save.

Use one of these processes to assign a pre-existing fee schedule to an account.

For New accounts not yet reviewed within Schwab Advisor Portfolio Connect:

  1. Go to Accounts > Accounts > Review.

For Active accounts already reviewed in Schwab Advisor Portfolio Connect:

  1. Go to Accounts > Accounts > click the action menu to the right of the account and then select View Account Profile to view the account details.
  2. Navigate to Billing Settings, click Edit.
  3. Select Single Account in the Billing Source dropdown section.

    Note: If the account will be billed as part of a group, then select Member of Group in the Billing Source section and assign the fee schedule to the group.
     
  4. Choose Automatic or Manual as the Payment Method.
  5. Select the appropriate Billing Start Date to indicate when the billing calculations should begin for the account.
  6. Choose the Fee Schedule to assign from the dropdown.
  7. Optionally choose Override Fee.
  8. Optionally add a Fee Adjustment Amount. Increase or decrease your fee amount by adding a positive or negative value. Enter a Fee Adjustment Description to display with the fee adjustment on the invoice.

    Note: Fee adjustments are static and will remain on the account until removed.
     
  9. Click Save.

Use this process to assign a pre-existing fee schedule to an account group.

  1. To see the Account Groups details page go to AccountsGroups > click the action menu to the right of the group and then select View Account Group Profile.
  2. Navigate to Billing Settings, click Edit.
  3. Select Account Group in the Billing Source section.
  4. Select the appropriate Billing Start Date to indicate when the billing calculations should begin for the account. Click Next.
  5. Choose the Fee Schedule to assign from the dropdown.
  6. Optionally choose to Override Fee.
  7. Optionally add a Fee Adjustment Amount. Increase or decrease your fee amount by adding a positive or negative value. Enter a Fee Adjustment Description to display with the fee adjustment on the invoice.

    Note: Fee adjustments are static and will remain on the account until removed.
     
  8. Click Next.
  9. Define Fee Allocation Settings:

    Fee allocation type

    Determines how the group fee will be allocated to the underlying accounts.

    • Pro-Rata—Allocates the group fee to each underlying account based on the weight underlying account in the group.
    • Fixed Rate—Allocates the group fee to each underlying account based on the advisor defined percentage.
    NumberThe account number for each account within the group.
    NameThe account name for each account within the group.
    Include

    Indicates if the underlying account value will be included in group value used for fee calculations.

    • Yes—Includes the account’s value in the group value used for billing.
    • No—Excludes the account’s value from the group value used for billing.


    Note: Accounts excluded from billing are included in the performance.

    Billing Settings

    Displays where an account is set to bill.

    • This Account Group—Indicates the account is set to bill within the group you are viewing.
    • Another account group name—Indicates the account is set to bill as a member of a different group.
    • Account—Indicates the account is set to bill by itself.
    • Not Billed—Indicates the account is not set up to bill.


    Portfolio Connect does not allow accounts to be set up to bill in more than one account or group.

    Allocate Fee

    Indicates if the individual account deducts its allocated portion of the group fee.

    • Yes—Indicates the account deducts its allocated portion of the group fee.
    • No—Indicates the account’s allocated portion of the group fee is allocated to the remaining members of the group for deduction.
    Allocation TypeIndicates if the account allocation is set to Pro-Rata or Fixed-Rate allocation.
    Allocation Rate

    Percentage of individual fee allocation can be entered here if Fixed- Rate allocation is used.

    This field is not applicable for Pro-Rata allocation.

    Hide Invoice

    Indicates if this individual account will have an invoice included in their Client Reports.

    • Yes—Hides the invoice from the Client Report for the account.
    • No—Includes the invoice in the Client Report for the account.


    Note: This is only applicable for accounts where Allocate Fee is set to No and include invoices in the Client Report package.

  10. Click Save.

Once you have assigned the fee schedule, you can:

  • See projected invoices based on prior business day's valuation.
  • Lock invoices for pending invoices from prior billing periods.
  • Transmit fees to Schwab Advisor Center for locked invoices.
  • View and print invoices for non-projected invoices.

For additional resources, go to the Help menu at the top of each page in Portfolio Connect. Call the number listed under Contact Us to speak with platform support.

Why can't I view and print invoices that are projected?
Invoices in the projected status have not reached the end of the billing period required for correct valuation. These invoices are subject to change as the market changes. You can view the invoice details to understand how the projected value was calculated.

Why are all the member accounts for my account group set to exclude from billing?
Accounts can be members of several account groups, but they can only bill to one account group. If an account’s Billing Settings is set Not Billed, Account, or Member (where it is already billing to another account group), it will not be eligible to be billed as a part of the current account group.

Why do I have to click View Account Profile instead of Review to assign a Fee Schedule?
An account will be in Review status when it is new. The account will have a status of Active once the billing and report settings have been defined. After an account is in the Active status you will need to select View Account Profile from the in-row menu on the right to access the account profile page.

How to get started in Schwab Advisor Portfolio Connect®
How to review and submit management fees in Schwab Advisor Portfolio Connect®
Introduction to Schwab Advisor Portfolio Connect®
Introduction to Schwab Advisor Portfolio Connect® Billing