Schwab’s MMF assets rose 225% through Fed’s rate-hike journey
Climb of fund managers’ ranks contrasts with slumping banking deposits
Assets held by Charles Schwab’s money market funds have grown 225% since the US Federal Reserve called time on its zero interest-rate policy in 2022 – propelling the firm to become the fifth-largest US MMF manager by the end of last year.
Data from the Office of Financial Research (OFR) shows Schwab-sponsored MMFs held $473.4 billion at end-December 2023, up from $145.5 billion in February 2022 – a runaway expansion that went some way in easing woes from a slump in deposits at the banking unit.
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