Alternative Investments

Offering clients a diversified portfolio that includes alternative investments (AI) has become increasingly important to advisors.  Schwab's AI custody policies allow clients to hold a variety of alternative investments in their accounts allowing  you to effectively manage and monitor your client's whole portfolio.

The term "alternative investments" is often used as a catchall phrase that includes both alternative assets (those that are not stocks, bonds, or cash) and alternative strategies. For Schwab's custodial servicing purpose, we use the term to mean certain privately offered securities, registered REITs and certain alternative strategy registered pools.

Product & Platforms

Schwab Alternative Investment OneSource®

Schwab Alternative Investment OneSource provides enhanced custodial and shareholder services to '33 Act registered alternative investment funds.

Services

Alternative Investments Custody Services

You may custody approved alternative investments at Schwab and manage these investments alongside the rest of your assets.  Subject to an asset acceptance review process, Schwab accepts the following asset types for custody:

  • Hedge funds, both domestic and offshore
  • Hedge fund of funds, both domestic and offshore
  • '33 Act registered REITs
  • Private equity funds
  • Other third party pooled investments
  • Certain private equity

For your convenience, and to ensure seamless service for your clients, we have established relationships with an alternate custodian for those assets we cannot custody.

Alternative Investments Products (AIP) Service Platform

Securities offered by members of the Alternative Investment Products (AIP) Service Platform are eligible for expedited investment processing and custody at Schwab. AIP is a data transmission platform run by the Depository Trust Clearing Corporation (DTCC) that links administrators, broker/dealers (B/D), custodians, and issuers of Alternative Investments to provide streamlined processing of pooled investments like hedge funds, funds-of-funds, private equity, REITs, and limited partnerships.

The investor should carefully consider the investment objectives, risks, charges and expenses before investing. The prospectus contains this and other information. It should be read carefully before investing.