title text box charles schwab u.k. ltd. -...

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Charles Schwab U.K. Ltd. Kully Samra Managing Director

Master Investor Show Saturday 23rd April 2016

© 2016 Charles Schwab & Co., Inc. All rights reserved. Member: SIPC. (0416-EW07)

Approved for presentation to UK residents by Charles Schwab, U.K., Limited, authorised and regulated by the Financial Conduct Authority.

Charles Schwab

Points to cover

§ The existence of the ‘special’ US – UK relationship § Key Considerations as an investor in this time of volatility § Schwab view on the US market § Questions

Charles Schwab

A day in the life of an average UK citizen

Charles Schwab

Who consumes any of the products or services that I mentioned in this imaginary trip?

Who owns any of the stocks I mentioned?

Who owns any US stocks?

Charles Schwab

When it comes to investing, the UK is already very closely tied to US markets

Of all US equities held overseas, 11.5% is held by the UK, Canada at 12.1% and Cayman Islands at 12.3%*

The UK is the third largest holder of US equities, behind Canada and the Cayman Islands

Source: US Treasury Data 2015 (http://www.treasury.gov/resource-center/data-chart-center/Pages/index.aspx)

US

CAYMAN ISLANDS 12.3%

12.1% CANADA

11.5% UK

Charles Schwab

Points to cover

§ The existence of the ‘special’ US – UK relationship § Key Considerations as an investor in this time of volatility § Schwab view on the US market § Questions

Charles Schwab

A diversified portfolio can reduce volatility over time

Charles Schwab 8

Why diversification makes sense long-term

Asset class performance represented by annual total returns for the following indexes: S&P 500® Index (US Lg Cap), Russell 2000® Index (US Sm Cap), MSCI EAFE® Net of Taxes (Int’l Dev), MSCI Emerging Markets IndexSM (EM), MSCI US REIT Index (REITs), S&P GSCI® (Commodities), Barclays U.S. Treasury Inflation-Linked Bond Index (TIPS), Barclays U.S. Aggregate Bond Index (Core US Bonds), Barclays U.S. High Yield Bond Index (High Yld Bonds), Barclays Global Aggregate Ex-USD TR Index (Int’l Dev Bonds), Barclays Emerging Markets USD Bond TR Index (EM Bonds), Citigroup U.S. 3-Month T-Bill Index (T-Bills). Moderate Diversified allocation based on total return with taxable bonds model allocation (24% U.S. stocks, 21% int’l stocks, 25% core bonds, 1% U.S. inflation protected securities, 5% int’l developed country bonds, 10% U.S. corporate high yield bonds, 5% int’l emerging markets bonds, 4% commodities, 5% cash). Past results are not an indication or guarantee of future performance. Returns assume reinvestment of dividends, interest, and capital gains. Indexes are unmanaged, do not incur fees or expenses, and cannot be invested in directly. Please see Disclosure slides for more information about the market indices and asset allocations used. Source: Schwab Center for Financial Research with data provided by Morningstar, Inc.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ann. return Standard

deviation Commodities

32.1% EM 55.8% REITs

31.5% EM 34.0% REITs

35.9% EM 39.4%

Core US Bonds

5.2% EM

78.5% REITs 28.5% TIPS

13.6% EM 18.2% US Sm Cap

38.8% REITs 30.4% REITs

2.5% REITs 10.9% EM

33.8% Int'l

Dev Bonds 22.4%

US Sm Cap 47.3% EM

25.6% Commodities 25.6% EM

32.1% Commodities 32.7%

Int'l Dev Bonds

4.4% High

Yld Bonds 58.2%

US Sm Cap 26.9% REITs

8.7% EM Bonds 17.9% US Lg Cap

32.4% US Lg Cap 13.7% US Lg Cap

1.4% EM 9.4% Commodities

25.2% TIPS 16.6% Int'l Dev

38.6% Int'l Dev 20.2% Int'l Dev

13.5% Int'l Dev 26.3% TIPS

11.6% T-Bills 1.8% EM Bonds

34.2% EM 18.9%

Core US Bonds

7.8% REITs 17.8% Int'l Dev

22.8% Core

US Bonds 6.0%

EM Bonds 1.3% EM Bonds

9.2% US Sm Cap 22.2%

EM Bonds 12.3% REITs

36.7% US Sm Cap 18.3% EM Bonds

12.3% US Sm Cap 18.4% Int'l Dev

11.2% TIPS -2.4% Int'l Dev

31.8% High

Yld Bonds 15.1%

EM Bonds 7.0% Int'l Dev

17.3% Moderate Diversified

10.3% US Sm Cap

4.9% Core

US Bonds 0.5%

High Yld Bonds

7.8% Int'l Dev 21.8%

Core US Bonds

10.3% High

Yld Bonds 29.0%

Commodities 17.3% REITs

12.1% US Lg Cap 15.8%

Int'l Dev Bonds

11.0% EM Bonds

-14.8% REITs 28.6% US Lg Cap

15.1% High

Yld Bonds 5.0%

US Sm Cap 16.3%

High Yld Bonds

7.4% EM Bonds

4.8% T-Bills 0.0% US Sm Cap

7.6% REITs 21.6%

REITs 3.6% US Lg Cap

28.7% Int'l

Dev Bonds 12.5%

Moderate Diversified

6.9% High

Yld Bonds 11.8%


8.4% Moderate Diversified -23.2%

US Sm Cap 27.2% EM Bonds

12.8% Int'l

Dev Bonds 4.4%

US Lg Cap 16.0% REITs

2.5% TIPS 3.6% Int'l Dev

-0.8% US Lg Cap 6.3% US Lg Cap

18.8% T-Bills 1.7% EM Bonds

26.9% EM Bonds 11.9% US Lg Cap


11.4% Core

US Bonds 7.0%

High Yld Bonds -26.2%

US Lg Cap 26.5%


10.6% US Lg Cap

2.1% High

Yld Bonds 15.8%

T-Bills 0.1%

High Yld Bonds

2.5% TIPS -1.4%


5.8% High

Yld Bonds 18.8%

High Yld Bonds

-1.4% Moderate Diversified

23.5% High

Yld Bonds 11.1%

US Sm Cap 4.6% EM Bonds

10.0% US Lg Cap 5.5% US Sm Cap


25.9% Commodities

9.0% T-Bills 0.1%


10.5% Commodities



-2.0% Int'l Dev 5.6% EM Bonds


-4.0% Commodities


11.1% T-Bills 3.0%

Int'l Dev Bonds

8.2% EM Bonds

5.2% US Lg Cap -37.0% Commodities

13.5'% Int'l Dev 7.8%


-0.3% TIPS 7.0%

Core US Bonds

-2.0% T-Bills 0.0% US Sm Cap

-4.4% TIPS 5.3%


12.1% EM

-6.2% Int'l

Dev Bonds 19.4%

US Lg Cap 10.9% TIPS

2.8% T-Bills 4.8% T-Bills

4.7% REITs -38.0% TIPS

11.4'% Core

US Bonds 6.5%

Commodities -1.2%

Core US Bonds

4.2% EM

-2.6% EM -2.2%

High Yld Bonds

-4.5% Int'l

Dev Bonds 5.2%

Int'l Dev Bonds

9.0% Int'l Dev -15.9% TIPS

8.4% TIPS 8.5%

High Yld Bonds

2.7% Core

US Bonds 4.3%

High Yld Bonds

1.9% Int'l Dev -43.4%

Int'l Dev Bonds

7.5% TIPS 6.3% US Sm Cap

-4.2% Int'l

Dev Bonds 4.1%

Int'l Dev Bonds

-3.1% Int'l

Dev Bonds -3.1%

Int'l Dev Bonds

-6.0% Core

US Bonds 4.7%

TIPS 6.9%

US Sm Cap -20.5%

Core US Bonds

4.1% Core

US Bonds 4.3%

Core US Bonds

2.4% TIPS 0.4% US Sm Cap

-1.6% Commodities -46.5%

Core US Bonds

5.9% Int'l

Dev Bonds 4.9%

Int'l Dev -12.1% Commodities

0.1% EM Bonds -4.1% Int'l Dev

-4.9% EM -14.9% T-Bills

1.3% Core

US Bonds 3.1%

US Lg Cap -22.1% T-Bills

1.1% T-Bills 1.2%

Int'l Dev Bonds

-8.7% Commodities

-15.1% REITs -16.8% EM

-53.3% T-Bills 0.2% T-Bills

0.1% EM -18.4% T-Bills

0.1% TIPS -8.6% Commodities

-33.1% Commodities -32.9% Commodities

-1.9% T-Bills 1.7%

Charles Schwab 9

Asset class swings in past year particularly extreme

As of 3/31/16. Asset class performance represented by annual total returns for the following indexes: S&P 500® Index (US Lg Cap), Russell 2000® Index (US Sm Cap), MSCI EAFE® Net of Taxes (Int’l Dev), MSCI Emerging Markets IndexSM (EM), MSCI US REIT Index (REITs), S&P GSCI® (Commodities), Barclays U.S. Treasury Inflation-Linked Bond Index (TIPS), Barclays U.S. Aggregate Bond Index (Core US Bonds), Barclays U.S. High Yield Bond Index (High Yld Bonds), Barclays Global Aggregate Ex-USD TR Index (Int’l Dev Bonds), Barclays Emerging Markets USD Bond TR Index (EM Bonds), Citigroup U.S. 3-Month T-Bill Index (T-Bills). Moderate Diversified allocation based on total return with taxable bonds model allocation (24% U.S. stocks, 21% int’l stocks, 25% core bonds, 1% U.S. inflation protected securities, 5% int’l developed country bonds, 10% U.S. corporate high yield bonds, 5% int’l emerging markets bonds, 4% commodities, 5% cash). Past results are not an indication or guarantee of future performance. Returns assume reinvestment of dividends, interest, and capital gains. Indexes are unmanaged, do not incur fees or expenses, and cannot be invested in directly. Please see Disclosure slides for more information about the market indices and asset allocations used. Source: Schwab Center for Financial Research with data provided by Morningstar, Inc.

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-05 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Commodities

11.1% US Sm Cap 2.3% US Sm Cap

0.7% REITs 5.6%

Int'l Dev Bonds

0.4% REITs 3.0% US Lg Cap

8.4% US Sm Cap 3.3% REITs

1.8% TIPS 1.5%

Int'l Dev Bonds

3.5% EM

13.2% EM

7.7% US Lg Cap 1.3%

Int'l Dev Bonds

0.1% US Lg Cap

2.1% Commodities 0.3%

Core US Bonds

0.7% Int'l Dev 7.8% US Lg Cap

0.3% Int'l

Dev Bonds 1.2%

Core US Bonds

1.4% EM Bonds

1.4% REITs 10.4%

Int'l Dev 4.1%

High Yld Bonds

0.3% T-Bills 0.0% Int'l Dev

2.1% T-Bills 0.0%

Int'l Dev Bonds

0.4% EM

7.1% T-Bills 0.0% T-Bills

0.0% Int'l

Dev Bonds 0.5%

TIPS 1.1% US Sm Cap

8.0% Int'l

Dev Bonds 2.2%

EM Bonds 0.1% Commodities

-0.1% Core

US Bonds 0.7%

Core US Bonds

-0.1% T-Bills 0.0% REITs

5.8% TIPS -0.1%

Core US Bonds

-0.3% T-Bills 0.0%

Core US Bonds

0.7% US Lg Cap

6.8% EM Bonds


0.0% TIPS -1.0% TIPS

0.2% TIPS -0.8% TIPS

-0.6% US Sm Cap 5.6%

Core US Bonds

-0.3% TIPS

-0.8% EM Bonds 0.0%

High Yld Bonds

0.6% Int'l Dev 6.5%


1.3% T-Bills 0.0%

Core US Bonds

-1.1% EM Bonds

0.1% EM Bonds -1.3% EM Bonds


3.5% EM Bonds


-1.2% High

Yld Bonds -1.6%


0.4% Commodities

4.9% High

Yld Bonds 1.2%

Core US Bonds


-1.1% T-Bills 0.0% High Yld Bonds


-1.7% High

Yld Bonds 2.7%

REITs -0.6% Int'l Dev


-2.8% T-Bills 0.0%


4.7% US Lg Cap

1.0% REITs -0.3% EM Bonds



-3.2% US Lg Cap

-2.5% EM Bonds 2.7%


-0.8% EM Bonds

-1.4% REITs -3.3% US Sm Cap

0.0% High

Yld Bonds 4.4%

TIPS 0.7% Int'l Dev

-0.5% High

Yld Bonds -1.5%

Int'l Dev Bonds

-0.1% US Lg Cap

-6.0% High

Yld Bonds -2.6%

Int'l Dev Bonds

0.3% Int'l Dev -1.6% US Lg Cap

-1.6% US Lg Cap -5.0% US Lg Cap

-0.1% Int'l

Dev Bonds 4.1%

T-Bills 0.0% TIPS

-0.8% US Lg Cap -1.9%

High Yld Bonds

-0.6% REITs -6.2% EM

-3.0% TIPS 0.3%

High Yld Bonds

-2.2% EM

-2.2% Commodities -5.2% EM

-0.2% EM Bonds 3.1%

Core US Bonds

-0.4% Commodities

-2.0% EM -2.6% US Sm Cap

-1.2% US Sm Cap -6.3% US Sm Cap

-4.9% Commodities 0.2%

Int'l Dev Bonds

-2.8% High

Yld Bonds -2.5%

EM -6.5% REITs

-0.4% TIPS 1.8%

US Sm Cap -2.6%

Int'l Dev Bonds

-3.0% Int'l Dev -2.8% EM

-6.9% Int'l Dev -7.4% Int'l Dev

-5.1% Core

US Bonds 0.0%

EM -3.9% US Sm Cap

-5.0% Int'l Dev -7.2% Int'l Dev

-1.8% Core

US Bonds 0.9%

REITs -5.9% EM

-4.0% REITs -4.6% Commodities

-14.1% EM -9.0% Commodities

-6.3% T-Bills 0.0% Commodities

-9.0% Commodities -8.6% US Sm Cap

-8.8% Commodities -2.0% T-Bills

0.0%

Charles Schwab

Lengthening holding period may reduce downside risk

Source: Schwab Center for Financial Research with data provided by Standard and Poor’s. Every 1-, 3-, 5-, 10-, and 20-year rolling calendar period for the S&P 500 Index was analyzed from 1926 through September 2015*. The highest and lowest annual total returns for the specified rolling time periods were chosen to depict the volatility of the market. Returns include reinvestment of dividends. Indices are unmanaged, do not incur fees or expenses, and cannot be invested in directly. Past performance is no indication of future results.

54.0%

31.1% 28.6% 20.1% 17.9%

-43.3%

-27.0%

-12.5% -1.4%

3.1%

-60%

-40%

-20%

0%

20%

40%

60%

1-Year Periods 3-Year Periods 5-Year Periods 10-Year Periods 20-Year Periods

Ann

ualiz

ed T

otal

Ret

urns

Diversified equity portfolio as represented by the S&P 500® Index (1926 – 2015*)

Charles Schwab

Time in the market is more important than timing the market

Charles Schwab

Stick to a trading plan

§  Diversification and a proper asset allocation plan are critical to success

§  Don’t trade unfamiliar products or strategies

§  Set realistic profit goals; few professionals outperform the indices

§  Scale in and out of positions; take some profits

§  Use Limit orders; not market orders

§  Don’t get sentimental about positions

§  Use extra caution when trading on margin

§  Limit active trading to only 20% - 30% of your portfolio

§  Use ETFs for portfolio diversification

Charles Schwab

When in doubt, wait it out

•  Sometimes in uncertain markets, sitting on the sidelines is not a bad idea

•  Sometimes hedging positions, closing out non-core holdings, maintaining a higher level of cash

•  All bull markets and all bear markets eventually come to an end

•  Sometimes the best trade is no trade at all

Charles Schwab

Points to cover

§ The existence of the ‘special’ US – UK relationship § Key Considerations as an investor in this time of volatility

§ Schwab view on the US § Questions

Charles Schwab 15

Market’s emotional roller coaster

2015-2016

Charles Schwab

2016 so far….

US economy is a mixed picture : “The stock market has forecast nine of the last five recessions” *

§  Sell off at the start of the year increased talk of recession in the US, we believe risks are low, and Leading Economic Indices showing minor stress

§  Sell off at start of year also hit global markets, however US has bounced back to outperform most developed markets

§  Central bank divergence will continue to contribute to global volatility, as will the differential between Fed hike expectations and those of the market

*Paul Samuelson, 1966

Charles Schwab 17

U.S. leading indicators showing minor stress Leading Economic Index

As of 2/16. Dotted lines represent recessions and recoveries to prior high. Solid lines and years noted correspond to period of time between recovery and next recession. Gray-shaded areas indicate periods of recession. See last slide for definition of recession. The Conference Board's Leading Economic Index (LEI) is a composite average of individual economic indicators designed to capture turning points in aggregate economic activity better than any individual component. ISM=Institute for Supply Management. Source: FactSet, The Conference Board.

Current Trend Leading Economic Index (LEI) • Average workweek Fair • Unemployment claims Strong • New orders: consumer goods and materials Fair • ISM New Orders Index Fair • New orders: nondefense capital goods excl. aircraft Fair • Building permits • S&P 500 • Leading Credit Index Strong

Stable • Interest rate spread • Avg. consumer expectations for business conditions

Strong

Fair

Improving

Worsening

Worsening

40

60

80

100

120

140

1975 1980 1985 1990 1995 2000 2005 2010 2015

6 yrs

8 yrs

4 yrs

Fair Stable

Improving

Fair

Fair Improving

Stable Improving

Improving

Stable

Charles Schwab

2016 so far….






Charles Schwab

Continued US outperformance….

19

.

Source: FactSet, MSCI, Standard & Poor's, as of 04/19/2016. *Indexed to 100 = 12/31/11

Charles Schwab

2016 so far….






Charles Schwab 21

Central bank divergence

ECB=European Central Bank. BoJ=Bank of Japan. PBoC=People’s Bank of China. Source: Schwab Center for Financial Research.

Charles Schwab 22

Market’s expectations still under Fed’s Fed funds rate %

Fed estimate based on median Federal Open Market Committee (FOMC) projections. Market estimate based on Bloomberg Euro Dollar Synthetic Rate Forecast Analysis (EDSF). Source: Bloomberg, Federal Reserve.

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2016 2017 2018

Dec. 2015 Fed estimate Mar. 2016 Fed estimate Market estimate (as of 4/15/16)

Charles Schwab

Still a good opportunity to take part in US strength

§  Q1 US GDP weak, however we could be in for a stronger Q2

§  Forward PE only slightly above historic median, still not too late to take part in US strength to those underexposed

§  While US earnings have been weak, bar set low and it’s really about expectations above all else

§  Overall environment for stocks more positive than negative, modest economic growth, low inflation, and a still dovish Fed

2016 remainder of year..

Charles Schwab

Index Definitions & Disclosures Barclays Global Aggregate Bond Index provides a broad-based measure of the global investment-grade fixed-rate debt markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The Global Aggregate Bond Index ex US excludes the U.S. Aggregate component. Barclays Municipal Bond Index is a total return performance benchmark for the long-term, investment-grade tax-exempt bond market. The Index is classified into four main sectors: General Obligation, Revenue, Insured, and Pre-refunded Bonds. Barclays U.S. Aggregate Bond Index is a market-value-weighted index of taxable investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage backed securities, with maturities of one year or more. Barclays U.S. Credit Bond Index includes all publicly issued, fixed rate, nonconvertible investment grade dollar-denominated, SEC-registered corporate debt. Included among Yankees is debt issued or guaranteed by foreign sovereign governments, municipalities, governmental agencies, or international agencies. Barclays U.S. Corporate High-Yield Bond Index the covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market.. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Barclays U.S. Corporate Bond Index covers the USD-denominated investment grade, fixed-rate, taxable, corporate bond market. Securities are included if rated investment-grade (Baa3/BBB-/BBB-) or higher using the middle rating of Moody’s, S&P, and Fitch. This index is part of the U.S. Aggregate. Barclays U.S. Government Bond Index is composed of the Barclays Capital Treasury Bond Index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues), and the Barclays Capital Agency Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations, and corporate debt guaranteed by the U.S. Government). Mortgage-backed securities are not included in the Agency Index. Barclays U.S. Mortgage-Backed Securities (MBS) Index is a market value-weighted index that measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Freddie Mac (FHLMC). It includes securities that have 30-, 20-, 15-year and balloon securities with remaining maturity of at least one year and more than $250 million outstanding face value. Barclays U.S. Treasury Bond Index includes public obligations of the U.S. Treasury excluding Treasury Bills and U.S. Treasury TIPS. The index rolls up to the U.S. Aggregate. Securities have $250 million minimum par amount outstanding and at least one year until final maturity. Sub-indices based on maturity such as the U.S. 1-5 Year Treasury and the U.S. 5-10 year Treasury Bond Indices are inclusive of lower bounds. U.S. Intermediate Treasury includes bonds with maturities of 1 to 9.9999 years. U.S. Long Treasury includes maturities 10 years and greater. Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index is a market value-weighted index that tracks inflation-protected securities issued by the U.S. Treasury. To prevent the erosion of purchasing power, TIPS are indexed to the non-seasonally adjusted Consumer Price Index for All Urban Consumers, or the CPI-U (CPI). Citigroup U.S. 3-month Treasury Bill Index is an index that measures monthly total return equivalents of yield averages that are not marked to market. The Three-Month Treasury Bill Index consists of the last three three-month Treasury bill issues.. CRSP 6-8 Index is a small-cap index created and maintained by the Center for Research in Security Prices (CRSP) at the University of Chicago's Graduate School of Business. CRSP capitalization-based indices include common stocks listed on the NYSE, AMEX, and the NASDAQ National Market. The CRSP 6-8 Index refers to the 6th through the 8th deciles and represents a small cap index that excludes micro-caps. Global Industry Classification Standard (GICS®) was developed by Standard and Poor’s in collaboration with Morgan Stanley Capital International (MSCI). It consists of 10 economic sectors aggregated from 24 industry groups, 67 industries and 156 sub-industries covering over 43,000 companies globally. The 10 sectors are Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Telecommunication Services, and Utilities. Ibbotson U.S. Intermediate-Term Government Bond Index is constructed from monthly returns of non-callable bonds with maturities of not less than five years, held for the calendar year. MSCI EAFE® Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. The MSCI EAFE Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. Russell indices are market-capitalization weighted and subsets of the Russell 3000® Index, which contains the largest 3,000 companies incorporated in the United States and represents approximately 98% of the investable U.S. equity market. The Russell 2000® Index is composed of the 2000 smallest companies in the Russell 3000 Index. The Russell 2000® Growth Index contains those Russell 2000 securities with a greater-than-average growth orientation. The Russell 2000® Value Index contains those Russell 2000 securities with a less-than-average growth orientation. The Russell 1000® Growth Index contains those Russell 1000 securities with a greater-than-average growth orientation. The Russell 1000® Value Index contains those Russell 1000 securities with a less-than-average growth orientation. S&P 500® Index is a market-capitalization weighted index that consists of 500 widely traded stocks chosen for market size, liquidity, and industry group representation. S&P U.S. Preferred Stock Index is comprised of preferred stocks issued by U.S. entities that meet a set of defined criteria, such as market capitalization of more than US$ 100 million. Preferred stocks are a class of capital stock that pays dividends at a specified rate and has a preference over common stock in the payment of dividends and the liquidation of assets. These include floating and fixed rate preferreds, cumulative and non-cumulative preferreds, preferred stocks with a callable or conversion feature, and trust preferreds. __________________________________ Diversification does not eliminate the risk of investment losses. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The Schwab Center for Financial Research is a division of Charles Schwab & Company, Inc.

Charles Schwab

Why

Charles Schwab

“We want access to the US market” Charles Schwab offers international investors access into the world’s largest financial market. With over 5,000 companies to choose from, investors can put money in major companies and global brands that list their shares there.

The US market is a highly-transparent, well-established market with abundant financial data. No other financial market is as large, accessible, transparent, and liquid.

“We want client service from experienced and licensed practitioners” All of our practitioners are licensed.

“We want to be able to make informed decisions based on evidence and research, not opinion” We provide market insights and research reports that helps investors build a portfolio based on individual goals and risk tolerance.

Charles Schwab offers financial education through live workshops and webinars that are designed to help clients learn more about topics around investing there.

“We want access to assistance and execution beyond the traditional London working day” Charles Schwab offers international investors access to experienced and licensed practitioners 24 hours a day, five days a week.

Charles Schwab can also offer extended hours trading made possible by computerised order matching systems known as Electronic Markets.

“Other firms have technology that seems to be built with the broker, not the client, in mind” We provide easy-to-use, reliable online trading which offers advanced investing research for foreign investment needs.

Our flagship trading platform is designed to work the way traders think. It aligns with the workflow to deliver a sophisticated and efficient trading experience.

Investors can choose from a variety of data options including Nasdaq TotalView® quotes, interactive technical charting, sophisticated risk and account management .

“We want transparency of pricing and demonstrable value for money” Our Pricing Guide for Individual Investors document gives an overview of standard pricing for commission rates, transaction fees, and key account charges and service fees

Questions?

[email protected]

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