Co-chief executive of Charles Schwab David Pottruck tried yesterday to justify the company mutual fund platform increase by saying the volume of phone calls the company receives from investors is increasing, despite the decline in its assets and trading volume, Dow Jones reports.
Schwab now receives 45,000 calls a day at its call centers and needs a way to cover the cost of servicing those calls, David Pottruck told the Investment Council Association of America conference. The company announced in March it would raise its fee on assets from 35 basis points to 40 basis points.
Pottruck said he understood higher fees would create pressures on mutual funds in a slow economy. But "we have laid off all the people we can," he said. "We can do no more layoffs."
Meanwhile, Pottruck expects the institutional trading business will bring in $150 million in revenue this year.