Schwab Investment Management Agreement

Schwab Investment Management Agreement: Understanding the Basics

Schwab Investment Management Agreement is a document outlining the terms and conditions of an investment management relationship between the client and the manager. Schwab is one of the largest investment management companies in the world, managing billions of dollars in assets for clients.

The agreement usually covers several key areas, including the investment objectives, investment strategies, fees, compensation, and termination clauses. It is an essential document that outlines the expectations and obligations of both parties.

Investment Objectives

The investment objectives section outlines the goals and aims of the investment portfolio. This section will articulate what the manager seeks to achieve with the investment, including the intended returns, the investment time horizon, and the level of risk. The objectives are typically based on the client`s needs and investment goals.

Investment Strategies

The investment strategies section is the meat of the agreement. It outlines the investment approach that the manager will take to achieve the investment objectives. The strategies mentioned in the agreement can vary depending on the client`s risk tolerance, investment goals, and market conditions.

The investment strategies detailed can be long-term or short-term and can include investing in stocks, bonds, mutual funds, exchange-traded funds, and other financial instruments.

Fees and Compensation

The fee structure and compensation of the investment manager is a crucial aspect of the agreement. The fees charged by the manager will depend on many factors, including the assets under management, the scope of the services provided, and the investment strategies.

The agreement will specify how the fees are computed, including the method used and the charges that apply. The compensation section will detail how the manager will receive payment for their services. It can be in the form of a percentage of assets under management, a flat rate, or any other agreed-upon method.

Termination Clauses

The termination clauses section outlines the conditions under which the agreement can be terminated. The clauses can be initiated by either party or by mutual consent. It will spell out the notice periods, the penalties or refunds, and other necessary conditions that apply in case of termination.


Schwab Investment Management Agreement is a comprehensive document that outlines the terms and conditions of an investment management relationship. It is essential to carefully read and understand the agreement before signing it to avoid any misunderstandings or surprises. With the right investment manager, the agreement can be an effective tool in achieving your investment goals.