Charles Schwab Launches New Mutual Fund Inspired by Award-Winning Schwab Equity Ratings' Model Portfolio
February 23 2005 - 1:17PM
PR Newswire (US)
Charles Schwab Launches New Mutual Fund Inspired by Award-Winning
Schwab Equity Ratings' Model Portfolio New Fund Utilizes Same
Stock-Rating Expertise Behind Schwab's #1 Ranked Model Equity
Portfolio SAN FRANCISCO, Feb. 23 /PRNewswire-FirstCall/ -- Charles
Schwab Investment Management, Inc. today announced the launch of
the Schwab Premier Equity Fund(TM), a new addition to the Schwab
Funds(R) suite of actively-managed equity funds. This new Fund
provides investors the opportunity to invest in a mutual fund that
uses the same stock screening expertise that helped Schwab's model
equity portfolio achieve a #1 ranking in Barron's 2004 annual stock
selection competition. The Fund utilizes Schwab Equity Ratings(R),
a proprietary stock screening methodology behind Schwab's model
equity portfolio, which this year took first place for best
three-year performance for the second consecutive year. The
existing line-up of funds that use Schwab Equity Ratings has
already captured broad-scale investor attention with performance
numbers that have more than held their own against the competition.
Visit Schwab.com for Schwab Funds performance information. The
Schwab Premier Equity Fund is unique because it seeks to deliver
capital appreciation by selecting only stocks rated A or B by
Schwab Equity Ratings. With its multi-cap strategy, the Fund is
free to invest in stocks of any size and can shift between growth
and value in order to seek strong returns through different market
conditions. "Last year's #1 rating from Barron's generated investor
interest in a fund that would use Schwab Equity Ratings to capture
strongly-rated stocks in one investment," said Evelyn Dilsaver,
president and CEO of Charles Schwab Investment Management, Inc.
"This year's win reinforces our decision to offer the Premier
Equity Fund." The Fund is currently in subscription through March
18, 2005, commencing operations on March 21, 2005*. During the
subscription period, Schwab clients can invest in the fund at an
offering price of $10 per share with all fund expenses waived
through June 30, 2005. The Fund is offered in two share classes.
Investor Shares require an initial investment of $2,500. Select
Shares, which offer a lower operating expense ratio (OER) in return
for a higher investment minimum, have an initial investment of
$50,000. Effective July 1, 2005, the fund's operating expense
ratios (1.30 percent for Investor Shares and 1.15 percent for
Select Shares) will apply. They are guaranteed through February 27,
2006, excluding interest, taxes and certain non-routine expenses.
Portfolio Management The new actively-managed fund will be
co-managed by Jeffrey Mortimer, CFA, senior vice president and
senior portfolio manager; Vivienne Hsu, CFA, vice president and
senior portfolio manager; and Larry Mano, director and portfolio
manager. The team oversees the eight SchwabFunds that tap into
Schwab Equity Ratings. These include the Schwab Core Equity Fund,
Schwab Dividend Equity Fund, Schwab Hedged Equity Fund, Schwab
Small-Cap Equity Fund, Schwab Financial Services Fund, Schwab
Health Care Fund, Schwab Technology Fund and the new Schwab Premier
Equity Fund. See end of press release for regulation analyst
certification and how to obtain important required disclosures.
About Charles Schwab Investment Management Founded in 1991, Charles
Schwab Investment Management, Inc. (CSIM) is an affiliate of
Charles Schwab & Co. Inc. and an adviser to Schwab Funds. As of
December 31, 2004, CSIM ranked as the nation's 12th-largest mutual
fund group, based on assets under management, currently totaling
$136 billion. It is the country's fourth-largest money market fund
manager and third-largest provider of retail index funds. With the
addition of the new fund, CSIM currently manages 51 including 22
actively managed equity funds, taxable and tax-free bond funds, and
taxable and tax-free money market funds. About Schwab Equity
Ratings Schwab Equity Ratings offer an objective and disciplined
assessment of approximately 3,000 U.S. equities, more than any
other major brokerage firm. Stocks are assigned grades of A, B, C,
D, or F, reflecting performance potential over the next 12 months.
Schwab's outlook is that "A"-rated stocks, on average, will
strongly outperform, and "F"-rated stocks, on average, will
strongly underperform the equities market over the next 12 months.
The ratings assess four broad categories: fundamentals, valuation,
momentum, and risk. They are updated each week to reflect new
financial data and other information. For more information on
Schwab Equity Ratings, including performance details, how
performance was calculated, comparison of performance to benchmarks
and limitations of model performance, visit
http://www.schwab.com/serperformance. About Charles Schwab The
Charles Schwab Corporation (NYSE:SCH) Nasdaq, through its operating
subsidiaries, provides securities brokerage and financial services
to individual investors and the independent investment advisors who
work with them. With over 7 million individual investor accounts
and more than $1 trillion in client assets, The Charles Schwab
Corporation is one of the nation's largest financial services
firms. Its subsidiary Charles Schwab & Co., Inc. (member SIPC)
provides a complete range of investment services and products,
including an extensive selection of mutual funds; financial
planning and investment advice; retirement plans; referrals to
independent fee-based investment advisors; and custodial,
operational and trading support for independent fee-based
investment advisors. Its subsidiary Charles Schwab Bank, N.A.
(member FDIC) provides banking and mortgage services and products.
The Corporation's other operating subsidiaries include U.S. Trust
Corporation (member FDIC) and CyberTrader(R), Inc. (member SIPC).
These companies' Web sites can be reached at
http://www.schwab.com/, http://www.schwabbank.com/,
http://www.ustrust.com/, and http://www.cybertrader.com/. Past
performance is no guarantee of future results. Investors should
consider carefully information contained in the prospectus,
including investment objectives, risks, charges and expenses. You
can request a prospectus by calling Schwab at 1-800-435-4000.
Please read the prospectus carefully before investing. Investment
value will fluctuate and shares, when redeemed, may be worth more
or less than original cost. The fund could have a high portfolio
turnover rate, which may result in increased transaction costs and
capital gain distributions. The fund's focus on a limited number of
securities may result in increased volatility. The performance of
Schwab Equity Ratings or the model equity portfolio is not an
indication of future performance of the Schwab Premier Equity Fund.
Performance of the model portfolios submitted to the Barron's
competition was calculated using an equal-weighted return
methodology that is administered by Zack's. It is not actual
performance and does not reflect actual trading. Each brokerage
firm had its own methodologies in picking its stock lists, which
differed in many respects, including the numbers of issues held,
frequency of trading and changes of selection criteria over time.
Barron's is a registered trademark of Dow Jones & Company, Inc.
All rights reserved. * Subscription orders must be received in good
form by 4 p.m. Eastern Time on March 18, 2005. Orders received
after that time will be invested at the next determined net asset
value (NAV) after receipt and acceptance of the order by Schwab.
Sufficient assets must be in your account by 9 a.m. Eastern time on
March 17, 2005. If you do not have sufficient assets to meet the
minimum initial investment requirement by this time, your order
will be canceled. You may reinstate your order by bringing a check
to your local Schwab branch by 4 p.m. Eastern Time on March 18,
2005. Share price will fluctuate once operations commence on March
21, 2005. (0205-7175) DATASOURCE: Charles Schwab CONTACT: Sondra
Harris of Charles Schwab, +1-415-636-3292, or Web site:
http://www.schwab.com/
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