Charles Schwab to Acquire Wasmer Schroeder in All-Cash Deal

The transaction will allow Schwab to increase its fixed income separately managed account business.

The Charles Schwab Corporation announced on Monday that it has entered into a definitive agreement in which it will acquire Wasmer, Schroeder & Company, LLC in an all-cash purchase. 

Wasmer Schroeder is an independent investment manager of fixed income separately managed accounts. As of the end of 2019, the company had $10.5 billion in assets under management.

Charles Schwab is an American bank and stock brokerage firm. The transaction is expected to close in mid-2020, the statement released by the company said, without revealing any details as to the size of the deal.

Charles Schwab to expand fixed income capabilities

Under the acquisition, Charles Schwab will add Wasmer Schroeder’s tax-exempt and taxable strategies with risk-adjusted performance track records, as well as its team of investment professions to its fixed income capabilities.

Rick Wurster of Charles Schwab
Rick Wurster, executive VP of Schwab Asset Management Solutions
Source: Charles Schwab

Commenting on the acquisition, Rick Wurster, executive vice president, Schwab Asset Management Solutions said in the statement: “Generating income is one of the greatest financial needs facing the growing number of investors who are in, or preparing for retirement.”

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“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.”

The deal will allow Charles Schwab to grow its fixed income separately managed account business, by providing the opportunity for increased asset flows, the company said in yesterday’s statement.

Martin Wasmer of Wasmer Schroeder
Martin Wasmer, founder and CEO of Wasmer Schroeder
Source: Wasmer Schroeder

“Over the course of our 32 year history, we have had an unwavering focus on delivering for investors,” added Martin Wasmer, founder and CEO of Wasmer Schroeder in the statement.

“Clients value the combination of our team’s in-depth credit research capabilities, performance record and superior client service experience which set us apart in the industry. We look forward to joining Schwab to deliver our strategies to their clients and to help investors with their overall wealth management needs.”

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