Schwab Acquiring Thomas Partners, Which Designs Growth Portfolios With Dividend Income Streams

Monday, October 15, 2012 10:25
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Schwab Acquiring Thomas Partners, Which Designs Growth Portfolios With Dividend Income Streams

Tags: Charles Schwab | custodians | RIAs | TAMPs

The Charles Schwab Corporation is acquiring Thomas Partners, an RIA with $2.3 billion AUM that createsgrowth stock portfolios that generate dividend income, for $85 million in cash plus additional payments contingent on AUM growth. The strategy will be accessible through Schwab Advisor Services as well as sold directly to retail clients.

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“Its money management solutions will be made available at a lower cost to clients of independent Registered Investment Advisors (RIAs) through the Schwab Advisor Services platform,” Schwab says.
 
“At closing, Schwab will waive transaction commission costs for ThomasPartners’ managed accounts custodied on Schwab’s Advisor Services platform.”
 
In addition to making the offering available to Schwab RIAs, Thomas’ portfolios will also be sold directly to retail clients, Schwab says, “as part of its growing selection of advisory solutions which include Schwab Advisor Network, Windhaven Portfolios, Schwab Managed Portfolios, Schwab Private Client, and access to third party portfolio management.”
 
 
Headquartered in Wellesley, Massachusetts, ThomasPartners has “consistently outperformed relevant benchmarks over the nine-year history of its dividend product,” Schwab says in a press release.
 
Assets in advised accounts at Schwab have grown steadily over the years and today stand at $124 billion. After closing, Schwab says ThomasPartners will no longer directly market to individual investors.   

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