Charles Schwab's March net new client assets surge past $53B.
Charles Schwab's core net new client assets increased by over $53B in March, the second highest amount for any March in its history. The firm's trading and wealth management businesses experienced a strong first quarter, and the Federal Reserve's tighter policy has led investors to move their investment cash from low-return accounts to higher yielding investments such as money market funds. While the higher interest rates increase Schwab's cost of funding and have some impact on earnings, the firm expects growth in earnings due to natural growth in its business and lower expenses. The management will provide investors more information at the company's Spring Business Update on April 17.