CFO Joe Martinetto commented, “This decision is part of the retirement plan business strategy we’ve been sharing for some time, which includes the development of a program combining low-cost, index-focused investment products with personalized advice to help create better outcomes for participants. Our current strategy also places a greater emphasis on client relationships that enable Schwab to bring more of its capabilities to bear in serving participants so we can maximize the value we deliver. With a more efficient and focused single recordkeeping system, we can better leverage our resources in serving both plan sponsors and participants, and we’re excited about the opportunities for accelerating our growth in this arena.”
The SMART report can be viewed with its accompanying 12-month data at
This press release contains forward-looking statements relating to the company’s reduction in client assets and retirement plan participants and the financial impact from the consolidation of two retirement plan recordkeeping technology platforms; growth in revenues, earnings and profits; gap between revenue and expense growth; expected revenues and expenses and offsets; expenses; and pre-tax profit margin. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.
Important factors that may cause such differences include, but are not limited to, the actual number of clients whose relationship with Schwab terminates as a result of the consolidation of two retirement plan recordkeeping technology platforms; general market conditions, including the level of interest rates, equity valuations and trading activity; the company’s ability to attract and retain clients and grow client assets/relationships; competitive pressures on rates and fees; the level of client assets, including cash balances; the company’s ability to monetize client assets; capital needs and management; the company’s ability to manage expenses; the impact of changes in market conditions on money market fund fee waivers, revenues, expenses and pre-tax margins; the level of field sales activity and related incentive compensation; regulatory guidance; acquisition integration costs; the volume of prepayments in the company’s mortgage-backed securities portfolio; net interest margin; client enrollments in advised solutions and utilization of commission-free platforms; trading activity; the company’s ability to develop and launch new products, services and capabilities in a timely and successful manner; the effect of adverse developments in litigation or regulatory matters and the extent of any charges associated with legal matters; any adverse impact of financial reform legislation and related regulations; and other factors set forth in the company’s Form 10-Q for the period ended June 30, 2013.