Charles Schwab is phasing out its automated rebalancing service for advisors, Institutional Intelligent Portfolios, as the financial services giant consolidates its robo-investing and portfolio management offerings. The move doesn't involve Schwab's robo-advisor for retail clients.
Schwab announced on its website that it will no longer open new accounts on the Intelligent Portfolios platform starting Nov. 15 and plans to retire the service next year. It will offer portfolio management for advisors' clients through iRebal, which the company acquired in the TD Ameritrade deal, at the Schwab Advisor Center.
"One benefit of Schwab's integration with Ameritrade is the acquisition of some of the most innovative RIA tech platforms and capabilities on the market, including iRebal—our adaptable portfolio management and rebalancing tool," the company said.
Firms can start transitioning client accounts off Institutional Intelligent Portfolios now but have until the 2025 fourth quarter to remove them from the platform, Schwab said.
"We've offered Institutional Intelligent Portfolios to advisors since 2015 but have found that iRebal is a better solution overall for advisors, so we will be upgrading those who use IIP to iRebal and will retire IIP by 2025," a Schwab spokesperson told ThinkAdvisor via email Friday.
"Advisors are looking for ways to enhance and scale how they manage client investments and wealth," according to the spokesperson. "We received feedback from current Institutional Intelligent Portfolios users that, while they appreciate the scale and efficiency it affords, they want a more customizable and self-directed solution for managing client wealth with no cash minimums and a broader array of security types.
