The Charles Schwab Corporation - SCHW STOCK NEWS

The Board of Directors of The Charles Schwab Corporation has appointed Rick Wurster as President, effective October 15, 2021. Wurster, previously Managing Director and head of Schwab Asset Management, has been with the company since 2016. He will oversee multiple divisions, including Investor Services and Schwab Asset Management. CEO Walt Bettinger praised Wurster's client-focused approach. As of August 31, 2021, Schwab reported 32.5 million active brokerage accounts and $7.8 trillion in client assets.

Schwab Advisor Services is hosting the IMPACT conference on October 19-20, offering two days of keynotes and educational sessions at no cost to its 13,000 independent advisory firms. The event features notable speakers including Malcolm Gladwell and Ben Bernanke, focusing on topics like market trends and firm culture. The innovative virtual networking platform allows personalized interactions among attendees. Additionally, IMPACT 2021 welcomes over 130 students from diverse universities, emphasizing Schwab's commitment to nurturing the next generation of advisors.

Schwab Asset Management's BeFi Barometer 2021 reveals increased behavioral biases among investors, primarily driven by COVID-19 and social media influence. Significant behavioral biases include recency bias (58%), confirmation bias (50%), and framing (44%). 60% of clients invested in cryptocurrency; 33% in SPACs. Advisors indicate behavioral finance techniques improve client relationships and retention, particularly during market volatility. Key strategies include taking a long-term view (76%) and integrating goals-based planning (75%). These insights are crucial for advisors aiming to secure client trust and enhance investment performance.

According to a new study by Charles Schwab, the COVID-19 pandemic has significantly accelerated the use of technology in managing personal finances. 41% of investors increased their usage of tech tools during the pandemic, with 32% planning to continue this trend. Interestingly, 19% believe technology will manage their portfolios fully within a year. Despite this, 59% still seek human advice during market volatility, indicating a desire for a hybrid approach in financial management.

The annual survey by Schwab Retirement Plan Services reveals that Gen Z and Millennials are significantly impacted by financial stress, with 44% of Gen Z and 38% of Millennials stating it affects their job performance. A third of Gen Z expects retirement delays due to COVID-19. Gen Z participants show a strong preference for professional financial advice, with 62% seeking help. Their optimism for adopting positive financial behaviors is higher than older generations, especially in increasing 401(k) contributions and saving. Employers who manage COVID-19 well can enhance employee loyalty, with 25% of Gen Z stating increased loyalty.

The Charles Schwab Corporation reported significant growth in its Monthly Activity Report for August 2021. The firm attracted $51.8 billion in core net new assets from clients, with $50.5 billion excluding mutual fund clearing. Total client assets reached $7.84 trillion, marking a 75% increase year-over-year and a 3% rise from July 2021. Moreover, derivative trades accounted for 23.1% of total trades, up from 13.8% in August 2020 and 22.2% in July 2021.

Schwab launches its financial education initiative, Moneywise America, to enhance financial literacy among teens in the U.S. by 2025. The program aims to bridge the education gap, particularly in under-resourced communities, offering a standards-based curriculum and trained volunteers. Schwab plans to mobilize 25% of its workforce for this initiative. Additionally, Schwab collaborates with Girl Scouts of the USA to integrate financial concepts into their programs, enhancing girls' money management skills from kindergarten through grade 12.