Schwab books highest ever client cash disbursements for tax season

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Charles Schwab Corp. SCHW, +1.02% on Friday reported a $6.5 billion drop in net new assets excluding mutual fund clearing as clients sold down their asset for cash disbursements during tax season. The broker said the move marked the highest ever client cash disbursements at Schwab. “These outflows include the impact of client portfolio actions taken during 2021, a year marked by strong equity market performance and robust trading activity,” CFO Peter Crawford said. “Such seasonal activity is distinct from flows within client accounts rebalancing their cash positions between daily liquidity and investments such as money market funds. This rebalancing, or sorting, activity tends to occur as an extended period of low interest rates shifts into a rising rate environment and clients refresh their allocations.” Total client assets were $7.28 trillion as of month-end April, down 1% from April 2021 and down 7% compared to March 2022. Shares of Schwab rose 1.4% in premarket trades. The stock is down 22.8% year-to-date, compared to a 17.5% loss by the S&P 500 SPX, +2.39%.

This article was originally published by Marketwatch.com. Read the original article here.

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