Ironwood Investment Management, LLC and Charles Schwab have built an enduring 25-year partnership in the small cap investment management industry. Since 1999, at the inception of Ironwood’s flagship product, the Small Cap Core Strategy (SCC), we have partnered with Schwab for their leading custodial products and services. We have forged a robust partnership spanning over 330 accounts and $140M in Assets Under Management (AUM). Additionally, the Ironwood Schwab Small Cap product is available on the Schwab Managed Account Marketplace®, which makes investing with Ironwood a seamless experience for existing advisors using the Schwab platform. This multi-decade partnership demonstrates how two aligned organizations can create exceptional outcomes for our clients.
Ironwood: A Trusted Leader in Small-Cap Investing
Ironwood Investment Management brings a disciplined and research-driven approach to small-cap investing. Our flagship Small Cap Core Strategy is guided by a time-tested philosophy of identifying “High I-Q” (High Ironwood Quality) companies – those with exceptional management, strong financials, sustainable business models, and market-leading positions. This approach enables our expert team to find undervalued gems in the small-cap universe, delivering the potential for long-term wealth creation. With a nearly three-decade track record, Ironwood has demonstrated a consistent ability to navigate the complexities of the small-cap market while maintaining a commitment to tax efficiency, ethical practices, and client-centric service.
Furthermore, a low-turnover approach in the SCC Strategy may reduce tax liabilities for investors. Ironwood also pursues tax-loss harvesting strategies to potentially mitigate after-tax returns. Our dedication to integrating Environmental, Social, and Governance (ESG) considerations into the investment process highlights a focus on sustainability and responsible investing—qualities that resonate deeply with modern investors. These attributes position Ironwood as a premier partner for those seeking growth and stability in the dynamic small-cap market.
Schwab Managed Account Marketplace®
Easily integrate managed accounts into your firm’s offering: Schwab Managed Account Marketplace® was custom-built for Registered Investment Advisors (RIAs). Schwab’s experienced service and operations teams provide support, while their consulting group focuses on providing the information you need to make thoughtful decisions on money managers and investment strategies.
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A Shared Commitment to Quality
Ironwood’s focus on quality and longevity aligns with Schwab’s core values of serving clients ethically, constantly improving the client experience, and being good stewards. Schwab’s reputation for reliability and innovation enhances Ironwood’s ability to deliver exceptional service to its clients. By offering Ironwood on the Schwab Managed Account Marketplace®, Schwab enables advisors and investors to access Ironwood’s SCC Strategy and expertise with ease. This partnership simplifies the investment process, allowing Schwab advisors to introduce clients to a proven small-cap strategy without unnecessary friction.
Proven Performance and Accessibility
Since its inception, the Ironwood Small Cap Core Strategy has delivered a 12% annual return gross of fees and 251 basis points of alpha per annum versus the Russell 2000 index, showcasing our team’s ability to generate returns in the Small Cap space. This performance is a testament to our disciplined investment process and deep understanding of market dynamics. For Schwab advisors and clients, Ironwood’s inclusion on the Managed Account Marketplace® provides an easy route to access this top-tier strategy.
With a 25-year partnership history, over 330 accounts, and $140 million in assets under management, Ironwood has proven itself as a trusted partner for Schwab’s advisors. Ironwood’s client-centric approach – marked by high-touch services, accessibility, and a focus on achieving long-term goals – brings additional value to Schwab’s RIA clients and the Schwab platform.
The Power of Partnership
Together, Ironwood and Schwab offer a compelling value proposition. Ironwood’s ability to deliver strong small-cap strategies complements Schwab’s reputation as a trusted custodian. This partnership underscores the benefits of collaboration, providing clients with a seamless, efficient, and effective investment experience.
Especially with the fast-moving dynamics in today’s market, the Ironwood + Schwab partnership illustrates what two great firms can achieve together. For those seeking to navigate the intricacies of small-cap investing, this partnership offers a unique combination of expertise, accessibility, and long-term vision.
Contact Us To Learn More About Ironwood Schwab Small Cap Strategy
PERFORMANCE DATA AND DISCLOSURES
Performance Statistics as of 9/30/2024
Ironwood Investment Management®, LLC (Ironwood) is an independently managed investment advisory firm providing investment advisory services to institutional clients, mutual funds and high-net-worth clients. The firm is a registered investment adviser with the Securities and Exchange Commission. SEC Registration does not imply a certain level of skill or training. Accounts in the Small Cap Core composite include separately managed, fully discretionary, fee-paying portfolios. Portfolios are invested in undervalued securities, the majority of which will have market capitalizations under $2.5 billion at cost, including securities with growth and/or value characteristics. Securities are considered undervalued when management believes the current share price does not accurately reflect the long-term economic value of the underlying company. Ironwood Investment Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Ironwood Investment Management, LLC has been independently verified for the periods January 1, 1999 through December 31, 2021. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The Small Cap Core composite has had a performance examination for the periods July 1, 2002 to December 31, 2021. The verification and performance examination reports are available upon request. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The creation date of the composite: July 2002. Performance inception date of the composite: January 1, 1999. Prior to July 2002, portfolios were included in the composite when at least 75% of the portfolio was invested in equity securities and when at least 75% of the portfolio was invested according to the investment style of the composite. Subsequent to July, 2002, portfolios are included in the composite after the first full month of being fully invested. Returns are presented gross and net of management fees and include the reinvestment of all income. Net returns are calculated based on the highest fee of 1.00%. Investment management fees are 1.00% on the first $25 million, 0.90% on the next $25 million, 0.80% on the next $50 million, and 0.75% over $100 million on an annual basis and a client’s return will be reduced by these and other related expenses. The actual fee charged to an individual portfolio may vary by size and type of portfolio and may be negotiated. Actual investment advisory fees incurred by clients may vary. The Russell 2000 Index consists of the 2000 smallest stocks in the Russell 3000 Index that represents approximately 8% of the U.S. equity market capitalization. The indices have been reconstituted annually since 1989. Ironwood returns and Index performance reflect reinvested interest income and dividends, in U.S. dollars. A list of composite descriptions and a list of limited distribution pooled fund descriptions are available upon request. Past performance is not indicative of future results. Policies for valuing investments, calculating performance and preparing GIPS Reports are available upon request. Prior to May 2006, the Firm was known as Ironwood Capital Management, LLC.