Charles Schwab has agreed to purchase the brokerage and managed portfolio property of USAA’s Funding Administration Firm, the agency introduced, for $1.eight billion in money.
Schwab and USAA may even enter an unique long-term referral settlement that will make Schwab the “unique wealth administration and brokerage supplier” for USAA members. USAA offers insurance coverage, banking, investments and retirement accounts to greater than 13 million present and former members of the U.S. navy.
Schwab will add over a million new accounts and a few $90 billion in consumer property via the acquisition, the agency stated, serving to it “add scale” to its $1.9 trillion investor providers enterprise; Schwab holds some $three.5 trillion in consumer property general.
The transaction will shut in 2020, with the conversion of USAA’s brokerage providers and managed portfolios to Schwab’s platform.
USAA earlier this month bought its $81.three billion asset administration enterprise, mutual funds and ETFs, in addition to its 529 faculty financial savings plan, to Victory Capital.
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