The Schwab Self-Directed Brokerage Account Indicators

Transcription

1 The Schwab Self-Directed Brokerage Account Indicators An industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts Quarter Ending March 31, 2011 FOR INSTUTIONAL PURPOSES ONLY Charles Schwab & Co., Inc. (Member SIPC). All rights reserved. ( )

2 0B An industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts Table of Contents: March 31, 2011 Key Schwab Observations for Quarter Ending March 31, PCRA Participant Profile Information 3 PCRA Participants within Age Bands 4 Market Value Allocation - Asset Classes 5 Market Value Allocation - Equity Sectors 6 Market Value Allocation - Mutual 7 Net Asset Flow - Asset Classes 8 Net Asset Flow - All Investment Categories 9

3 UThe Schwab Self-Directed Brokerage Account IndicatorsU Key Schwab Observations for the First Quarter 2011: UParticipant Summary The markets rose in January and February, only to pull back in mid-march, but a late rally in the closing weeks of the first quarter of 2011 gave way to the S&P posting a 5.92% return for the quarter. For the quarter, participant account balances in the Schwab Personal Choice Retirement Account (PCRA) were up 2.5% over last quarter and 10% from a year ago bringing the average account balance to $156k. Participants were active in their PCRA accounts during Q1 as trading volumes increased by 15.7% and average account positions grew by 4% from a year ago. The ishares Silver Trust replaced Microsoft in the Top 10 Equity Holdings, while the number of participants aged 50 and over grew by 1.58% from last year to 44.39%. UInvesting Behavior and General Investing Characteristics Asset Allocation Cash Investments and Fixed Income allocations accounted for 22% of all allocations, which was a 4% decline from last year. Mutual still remained the top asset allocation at 42%, while Equities came in at 36% up 3% from a year ago. Equities Exchange Traded remained the largest sector holding at 27%, followed by Information Technology at 16% and Financials at 10%. All of the other equity sectors had minor changes for the year. Mutual There were subtle movements throughout the year in the mutual fund sectors, with 1% decreases in Large Cap Stock and International. While Asset Allocation grew by 2% bringing it to a 13% of all allocations. Asset Flows Compared to a year ago net asset flows in Equities were up by 16.8% totaling 59.7%, while Mutual dropped to 33.3%. The top three net asset flows by sector were ETFs at 28.8%, Taxable Bond at 11.2% and Large Cap at 10.4%. All three accounted for 50% of all net asset follows. 2011Charles Schwab & Co., Inc. (Member SIPC). All rights reserved. ( ) Page 2

4 1B PCRA Participants Profile Information* - All Average Age* 47 Top 10 Equity Holdings % of Equity Assets Average PCRA Account Balance $156,464 APPLE INC 4.5% SPDR GOLD TRUST 1.5% Average Positions (per Account) CITIGROUP INC 1.4% Equities 4.44 BERKSHIRE HATHAWAY B NEWCL. 1.4% Mutual 2.82 GENERAL ELECTRIC COMPANY 1.4% Cash Investments 1.27 FORD MOTOR COMPANY NEW 1.2% Fixed-Income 0.20 S P D R S&P 500 ETF TR 1.1% Total 8.73 ISHARES SILVER TRUST 0.9% BANK OF AMERICA CORP 0.9% Average Trades in Quarter (per Account) UNITED CONTL HLDGS INC 0.9% Equities 4.12 Mutual 1.85 Top 10 Mutual Fund Holdings % of MF Assets Fixed-Income 0.04 SCHWAB S&P 500 INDEX FD 1.5% Total 6.01 PIMCO TOTAL RETURN FUND CL D 1.4% FAIRHOLME FUND 1.2% Median Percent Invested* PIMCO TOTAL RETURN FUND INSTL. 1.1% PCRA 78.4% OAKMARK EQUITY INCOME FD 1.0% Core Offering 21.6% COLUMBIA VALUE AND 0.9% DODGE & COX INTL STOCK 0.8% VANGUARD 500 INDEX FUND INV. 0.8% JANUS OVERSEAS FD CL T 0.8% LOOMIS SAYLES BOND FUND 0.7% Investors should consider carefully information contained in the prospectus, including investment objectives, risks, trading restrictions, charges and expenses. You can request a prospectus at or by calling the Schwab Dedicated PCRA Call Center at PCRA (7272). Please read the prospectus carefully before investing. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost. Small cap funds are subject to greater volatility than those in other asset categories. International investments are subject to additional risks such as currency fluctuation, political instability and the potential for illiquid markets. Since sector funds focus investments on companies involved in a particular sector, the funds may involve a greater degree of risk than an investment in other mutual funds with greater diversification. Fixed-income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors Charles Schwab & Co., Inc. (Member SIPC). All rights reserved. ( ) Page 3

5 2B PCRA Participants within Age Bands* - All As of March 31, 2011 March 31, % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 44.39% 31.55% 24.07% This chart illustrates the percent of PCRA participants within each age band. Page 4

6 3B Market Value Allocation - Asset Classes* - All (Year over Year) March 31, 2011 Cash Investments 19% As of March 31, 2011 Cash Investments 22% As of March 31, 2010 Equities 36% Equities 33% Mutual 42% Fixed Income 3% Mutual 41% Fixed Income 4% This chart illustrates the percent of PCRA participant assets in each noted asset class as a percentage of total PCRA assets. Percentages are calculated as of month end. Money market mutual funds are classified under Cash Investments. Page 5

7 4B Market Value Allocation - Equity Sectors* - All (Year over Year) March 31, 2011 ETFs/Other 27% As of March 31, 2011 Consumer Discretionary Utilities 7% 1% Consumer Staples 4% Energy 9% ETFs/Other 27% As of March 31, 2010 Consumer Discretionary 7% Utilities 1% Consumer Staples 5% Energy 8% Financials 10% Financials 11% Information Technology 16% Mutual 4% Industrials 8% Materials 6% Health Care 6% Telecomm 2% Information Technology 15% Mutual 4% Industrials 8% Telecomm 2% Materials 5% Health Care 7% This chart illustrates the percent of PCRA participant assets in each equity sector, as classified by Standard & Poor s, as a percentage of total PCRA assets within equity securities. Percentages are calculated as of month-end. Page 6

8 5B Market Value Allocation - Mutual * - All (Year over Year) March 31, 2011 As of March 31, 2011 As of March 31, 2010 Taxable Bond 20% Asset Allocation 13% Taxable Bond 20% Asset Allocation 11% Specialized 8% International 18% Specialized 8% International 19% Small Cap Stock 14% Large Cap Stock 27% Small Cap Stock 14% Large Cap Stock 28% This chart illustrates the percent of PCRA participant assets in each mutual fund category, as classified by Morningstar Inc., as a percentage of total PCRA longterm mutual fund assets. Percentages are calculated as of month end. Page 7

9 6B Net Asset Flow - Asset Class* - All As of March 31, 2011 March 31, 2011 Equities 59.7% Mutual 33.3% Fixed Income 8.7% Options -0.6% Money Market -1.0% -10% 0% 10% 20% 30% 40% 50% 60% 70% This chart illustrates the percent of total net flows within each asset class over the three month period ending March 31, Net flow percentages are calculated by adding the purchases and sales amounts within each respective asset class and dividing by the total net flows over the period. Page 8

10 7B Net Asset Flow - All Categories* - All As of March 31, 2011 March 31, 2011 Money Marke -1.00% Equities - Other Equities - Mut -0.90% MF - Taxable Bond MF - Internatio -0.80% MF - Tax MF Free - Large Cap 0.10% Stock MF - Other MF - Asset 0.10% Allocation Equities - Utili Equities % Info Technology Equities - Con 0.80% Equities - Energy Equities - Tele 1.20% MF - Specializ Equities 1.20% - Materials Equities - Con Equities 2.00% - Financials Equities - Indu 2.40% Equities - Health Care MF - Small Ca 2.60% Equities - MF Hea- Small Cap 2.60% Stock Equities - Fina Equities 3.40% - Industrials Equities - Mat 4.60% Equities - Consumer Discretionary Equities - Ene 6.20% Equities - Info 8.00% MF - Specialized MF - Asset Equities Al - Telecomm 8.60% Services MF - Large Ca 10.40% Equities - Consumer Staples MF - Taxable 11.20% Equities - Oth 28.80% Equities - Utilities MF - Other 6.2% 4.6% 3.4% 2.6% 2.6% 2.4% 2.0% 1.2% 1.2% 0.8% 0.5% 0.1% 8.6% 8.0% 11.2% 10.4% 28.8% MF - Tax Free Bond 0.1% MF - International -0.8% Equities - Mutual -0.9% Money Market -1.0% -5% 0% 5% 10% 15% 20% 25% 30% 35% This chart illustrates the percent of total net flows within each investment category, as classified by Standard & Poor s and Morningstar Inc., over the three month period ending March 31, Net flow percentages are calculated by adding the purchases and sales amounts within each respective investment category and dividing by the total net flows over the period. Page 9

11 Endnotes *Data for the Participant Profile and Age Band charts is based on the PCRA participant population (approximately 32,300 accounts) of only Schwab Retirement Plan Services, Inc. Data for all other charts is based on all PCRAs in Schwab s entire PCRA participant population that have an account balance between $5,000 and $2 million (approximately 162,200 accounts). All data contained herein is for information purposes only and may not be copied, assigned, transferred, disclosed, or utilized without the express written approval of Schwab. Data is gathered for these reports from what we believe to be reliable sources; however, Schwab does not guarantee the accuracy, timeliness or completeness of the information. Charles Schwab & Co., Inc. is a registered broker-dealer, offering the Schwab Personal Choice Retirement Account (PCRA), as well as other brokerage and custody services, to its customers. The Charles Schwab Corporation (Charles Schwab) provides services to retirement other benefit plans and participants as well as equity compensation plan services and other financial and retirement services to corporations and executives through its separate but affiliated companies and subsidiaries, Schwab Retirement Plan Services, Inc.; Schwab Retirement Plan Company; Charles Schwab Bank; and Charles Schwab & Co., Inc. Brokerage products and services are offered by Charles Schwab & Co., Inc. (Member SIPC). FOR INSTITUTIONAL PURPOSES ONLY Charles Schwab & Co., Inc. (Member SIPC). All rights reserved. ( )