Frequently Asked Questions

About Institutional Intelligent Portfolios®

Pricing

Creating Portfolios

Opening & Funding Accounts

Managing the Program

Integration

Client Resources

Important Disclosures:

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

Institutional Intelligent Portfolios® ("IIP") is a technology and service platform made available by Schwab Performance Technologies ("SPT") to independent investment advisors (“Advisors”) who maintain a business relationship with Schwab Advisor Services™, a division of Charles Schwab & Co., Inc. ("Schwab"). Schwab, a registered broker-dealer and member SIPC, provides custody, trading and support services. Brokerage products, including the Schwab One© brokerage account, are offered by Schwab. SPT and Schwab are separate companies affiliated as subsidiaries of The Charles Schwab Corporation, but their products and services are independent from each other.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Deposit and lending products are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.

The cash allocation in Institutional Intelligent Portfolios® will be accomplished through enrollment in the Schwab Intelligent Portfolios Sweep Program (Sweep Program), a program sponsored by Charles Schwab & Co., Inc. (“Schwab”). By enrolling in Institutional Intelligent Portfolios, clients consent to having the free credit balances in their Institutional Intelligent Portfolios brokerage accounts swept to deposit accounts at Charles Schwab Bank® (“Schwab Bank”) through the Sweep Program. Schwab Bank is an FDIC-insured depository institution affiliated with Schwab Performance Technologies (“SPT”) and Schwab. Cash balances held in the Sweep Program at Schwab Bank are eligible for FDIC insurance up to allowable limits.

Funds deposited at Charles Schwab Bank are insured, in aggregate, up to $250,000 based on account ownership type, by the Federal Deposit Insurance Corporation (FDIC).

Tax-loss harvesting is available for clients with invested assets of $50,000 or more in their Institutional Intelligent Portfolios account. Clients must be enrolled to receive this service.

The tax-loss harvesting feature that is available with Institutional Intelligent Portfolios is subject to significant limitations, which are described on the Institutional Intelligent Portfolios website and mobile application (collectively, the "Website") and the License and Services Agreement and the IRS website at www.irs.gov. Neither the tax-loss harvesting strategy for the Institutional Intelligent Portfolios platform nor any discussion herein is intended as tax advice. Neither Charles Schwab & Co., Inc. nor its affiliates, represent that any particular tax consequences, benefits, or outcomes will be obtained.

Accounts must maintain a minimum balance of $5,000 to be eligible for automatic rebalancing.

Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab affiliates do earn revenue from the underlying assets in Institutional Intelligent Portfolios accounts. This revenue comes from managing Schwab ETFs™ and Schwab Funds® and providing services related to certain third-party funds that can be selected for the portfolios, and from the cash feature on the accounts. Revenue may also be received from the market centers where ETF trade orders are routed for execution.

Schwab receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for record keeping, shareholder services and other administrative services, including program development and maintenance.

Schwab receives remuneration from mutual fund companies available through the Schwab Mutual Fund Marketplace for record keeping, shareholder services and other administrative services.

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support services of Schwab.

RateWatch is not affiliated with Schwab.

This material is for registered investment advisor use only. This material may not be forwarded or made available, in part or in whole, to any party that is not a financial professional.


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