Charles Schwab announced Thursday that its funds are now being made available to third parties through clearinghouses and brokers outside of the company.
President and chief executive officer of Charles Schwab Investment Management, Evelyn Dilsaver, said "The popularity and performance of Schwab's mutual funds have caught the interest of brokers and independent advisors who until now haven't been able to offer Schwab funds to their clients."
Schwab noted that each of the Schwab and Laudus MarketMasters funds with a track record longer than a year has outperformed its benchmark and category. For the 12 months ended Sept. 30, four of the seven were in the top 10%, and for the three-year period ended Sept. 30, four of Schwab's five actively managed funds ranked in the top 20%.
"If you're not a Schwab client, these funds have been hidden gems despite their great story" Dilsaver said. "This is an opportunity for us to showcase our funds and their unique management style among a broader pool of potential investors."
Currently there are four outside-Schwab dealers who are licensed to sell Schwab Funds and Laudus Market Master Funds: Ameritrade, Fidelity, T.D. Waterhouse and Union Bank of California. Pershing and Fiserv Trust are soon to be added to the list.