Why Schwab’s Asset Management and Administration Fees Fell
Asset management and administration fees contributed $814 million, or 32.7%, of Charles Schwab’s (SCHW) net revenues in the second quarter. The line item saw a fall of 4% on a YoY basis because of a fall in revenues generated from money market funds. This revenue fall was a result of the company’s decision to reduce fees in the prior year, transfer funds into bank sweep accounts, as well as lower inflows in money market funds.