Charles Schwab Agrees Another Takeover

Editorial Staff

7 April 2022

Charles Schwab has agreed to buy fixed income management firm Wasmer, Schroeder & Company for cash. The acquired business oversaw $10.5 billion in assets under management as at the end of 2019.

Wasmer Schroeder offers tax-exempt and taxable strategies. Charles Schwab said that the assets will extend its existing capabilities and expand its figure of about $90 billion in separately managed accounts.

Charles Schwab expects to close the transaction in the middle of 2020. Financial terms were not disclosed.

This agreement follows last year’s move to buy TD Ameritrade in a $26 billion transaction, a deal that showed intense competition in the discount brokerage space. Last week, as reported here, Morgan Stanley agreed to buy E*TRADE, a similar deal by size and scope.

The large retirement sector, and its traditional requirement for fixed income investment savvy, was a driver of the latest deal, Charles Schwab said.

“Generating income is one of the greatest financial needs facing the growing number of investors who are in, or preparing for retirement,” Rick Wurster, executive vice president, Schwab Asset Management Solutions – part of the Schwab empire - said. “Wasmer Schroeder’s professionally managed portfolios and investment capabilities will help Schwab deliver on a wide-range of fixed income investment needs and preferences, and complements the total wealth management offering we make available to our retail and RIA clients.”

Wasmer Schroder was formed in 1987 and has more than 30 investment staff.