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Schwab to buy fixed-income manager with $10.5B in assets

Charles Schwab Corp. signage is displayed on the door of an office building in New York, U.S., on Thursday, April 12, 2018. Charles Schwab Corp. reported earnings per share for the first quarter that beat the average analyst estimate, with 443,000 new accounts, the highest quarterly level in 18 years, chief executive officer Walt Bettinger said in a statement. Photographer: Christopher Lee/Bloomberg
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Charles Schwab is continuing its buying spree, agreeing to purchase Wasmer Schroeder, a Naples, Florida-based fixed-income management firm with $10.5 billion in assets under management.

Schwab last year agreed to buy TD Ameritrade Holding for $26 billion, an acquisition expected to close in the second half of 2020. The Wasmer Schroeder purchase will increase the approximately $90 billion in Schwab’s separately managed accounts.

Terms of the all-cash deal weren’t disclosed in Monday’s announcement.

Schwab, with more than $4 trillion in assets, has stepped up its focus on income-related products as it seeks to attract a larger share of the retirement business. Every day, roughly 10,000 Americans turn 65, the traditional retirement age.

Direct indexing, heightened competition and advisor tech platforms were just some of the critical details executives discussed.
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“Generating income is one of the greatest financial needs facing the growing number of investors who are in, or preparing for, retirement,” Rick Wurster, executive vice president of Schwab Asset Management Solutions, said in the statement.

Bloomberg News