Schwab Launches Its Family of Mutual Funds Onto Third-Party Mutual Fund Platforms
October 12 2005 - 7:00PM
PR Newswire (US)
SAN FRANCISCO, Oct. 12 /PRNewswire-FirstCall/ -- Based on growing
demand among both individuals and investment advisors, Schwab Funds
are now being made broadly available through other brokers and
clearing houses outside of Schwab. Investors can now purchase
Schwab Funds and Laudus MarketMasters Funds through platforms at
Ameritrade, Fidelity, TD Waterhouse and Union Bank of California.
Additional companies, such as Pershing and Fiserv Trust, are in the
process of being added. In most cases, the investor share class of
the funds will be offered on the fund companies' no-transaction-fee
platforms. "The popularity and performance of Schwab's mutual funds
have caught the interest of brokers and independent advisors who
until now haven't been able to offer Schwab Funds to their
clients," said Evelyn Dilsaver, president and chief executive
officer of Charles Schwab Investment Management. "If you're not a
Schwab client, these funds have been hidden gems despite their
great story. This is an opportunity for us to showcase our funds
and their unique management style among a broader pool of potential
investors." With this move, an expanded number of U.S. investors
will have access to a line-up of funds from Schwab and Laudus that
includes eight of Schwab's actively-managed equity funds based on
Schwab Equity Ratings; all ten of the company's fixed income funds,
including the industry-recognized Schwab YieldPlus ultra-short bond
fund (SWYPX/SWYSX), and the Laudus MarketMaster funds. The Laudus
Rosenberg Funds, sub-advised by AXA Rosenberg, have long been
available through a variety of distribution platforms. Managers of
Schwab's actively-managed equity funds incorporate Schwab Equity
Ratings(R) into their disciplined investment process when selecting
stocks to buy and sell. Each of the funds with track records longer
than one- year has outperformed its benchmark and category average
since inception or since Schwab Equity Ratings became a component
of the investment management process. For the one-year period
ending September 30, 2005, four of the seven funds were in the top
10% for performance as reported by Morningstar. For the three-year
period ending September 30, 2005, four of the company's five
actively managed funds ranked among the top 20% of funds tracked by
Morningstar. Schwab Funds now available outside the company include
the Schwab Core Equity Fund (SWANX), Schwab Dividend Equity Fund
(SXDIX/SWDSX), Schwab Hedged Equity Fund (SWHEX, SWHIX), Schwab
Small-Cap Equity Fund (SWSIX/SWSCX), Schwab Health Care Fund
(SWHFX), Schwab Financial Services Fund (SWFFX), Schwab Large-Cap
Growth Fund (SWLNX, SWLSX) and Schwab Technology Fund (SWTFX). In
addition, investors will be able to access all Schwab index and
fixed-income funds, as well as the four multi-manager Laudus
MarketMasters Funds: Laudus International MarketMasters
(SWOIX/SWMIX), Laudus Balanced MarketMasters (SWOBX/SWMBX), Laudus
Small-Cap MarketMasters (SWOSX/SWMSX) and Laudus U.S. MarketMasters
(SWOGX/SWMGX). According to Dilsaver, "When buying a mutual fund,
most investors make decisions based on performance and value -- two
of the hallmarks of Schwab and Laudus Funds. Whether internally
with Schwab clients or externally through our new distribution
channels, I'm confident that we can compete on performance where it
matters." 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), an affiliate of Charles
Schwab & Co., Inc., is one of the nation's largest mutual fund
companies with $140 billion under management as of August 31, 2005.
It is among the country's largest money market fund managers and is
the third-largest provider of retail index funds. In addition to
managing Schwab proprietary funds, CSIM provides oversight for the
institutional-style, sub-advised Laudus Fund family. CSIM currently
manages 67 mutual funds including 23 actively managed funds. About
Schwab Equity Ratings(R) Schwab Equity Ratings offer an objective
and disciplined assessment of approximately 3,000 U.S.
head-quartered stocks, 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
ratings reflect each stock's evaluation across 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 / Nasdaq: SCH),
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 (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/.
(1005-9510) PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL VALUE. 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. Important Disclosure
Information: Trades in no-load funds available through Mutual Fund
OneSource(R) service (including SchwabFunds), as well certain other
funds are available without transaction fees when placed through
schwab.com or through our automated phone channels. For each of
these trade orders placed through a broker, a $25 service charge
applies.Schwab's short-term redemption fee will be charged on
redemptions of funds bought through Schwab's Mutual Fund
OneSource(R) service with no transaction fees. If you pay a
transaction fee to purchase a fund, you will pay a transaction fee
when you sell it as well. Schwab reserves the right to change the
funds we make available without transaction fees and to reinstate
fees on any fund Charles Schwab & Co., Inc., member SIPC,
receives remuneration from fund companies participating in the
Mutual Fund OneSource(R) service for recordkeeping and shareholder
services and other administrative services. Schwab also may receive
remuneration from transaction fee fund companies for certain
administrative services. Laudus Funds are managed by Charles Schwab
Investment Management, Inc. The Laudus Group of Funds includes the
Laudus Rosenberg Funds, which are part of the Laudus Trust and
distributed by ALPS Distributor, Inc. and the Laudus MarketMasters
Funds, which are part of the Schwab Capital Trust and distributed
by Charles Schwab & Co., Inc. Charles Schwab Investment
Management, Inc., is a subsidiary of The Charles Schwab
Corporation. The Schwab Equity Ratings and stock lists or models
are not personal recommendations for any particular investor and do
not take into account the financial, investment or other objectives
and may not be suitable for any particular investor. Before buying,
investors should consider whether the investment is suitable for
themselves and their portfolio. Additionally, investors should
consider any recent market or company news. Stocks can be volatile
and entail risk and individual stocks may not be suitable for an
investor. Average As of 09/30/2005 Annual Return Inception
Conversion Date Symbol Date Schwab Equity YTD Ratings Schwab Core
Equity Fund SWANX 7/1/1996 6/1/2005 7.0% Benchmark: S&P 500
Index 2.8% Fund Category: Ranking: 142/1574 Morningstar Large-Cap
Blend Return: 3.5% Schwab Dividend Equity 9/2/2003 9/2/2003 5.1%
Fund - Investor Shares SWDIX Benchmark: S&P 500 Index 2.8% Fund
Category: Ranking: 401/1131 Morningstar Large-Cap Blend Return:
4.0% Schwab Small-Cap Equity Fund - Investor Shares SWSIX 7/1/2003
7/1/2003 13.0% Benchmark: S&P 600 Index 7.3% Fund Category:
Ranking: 26/491 Morningstar Small-Cap Blend Return: 5.5% Financial
Services Fund SWFFX 7/3/2000 7/1/2003 5.9% Benchmark: S&P
Financials Sector -1.2% Fund Category: Ranking: 10/120 Morningstar
Specialty -Financial Return: -0.6% Health Care Fund SWHFX 7/3/2000
7/1/2003 15.2% Benchmark: S&P Health Care Sector 5.9% Fund
Category: Ranking: 12/180 Morningstar Specialty -Health Return:
7.4% Technology Fund SWTFX 9/3/2002 9/3/2002 1.2% Benchmark:
S&P Information Technology Sector 0.0% Fund Category: Ranking:
133/274 Morningstar Specialty -Technology Return: 1.4% Schwab
Hedged Equity Fund-Select Shares SWHEX 9/3/2002 9/3/2002 7.7%
Benchmark: S&P 500 Index 2.8% Fund Category: Ranking: 30/1030
Morningstar Moderate Allocation Return: 3.6% Schwab Premier Equity
Fund - Investor Shares SWPNX 3/21/2005 3/21/2005 Benchmark: S&P
500 Index Fund Category: Ranking: Morningstar Large-Cap Blend
Return: Average Annual Return Since Inception Since or Conversion
1-year 3-year 5-year Inception to Schwab Equity Ratings Schwab Core
Equity Fund 19.4% 17.7% -0.7% 9.6% 8.4% Benchmark: S&P 500
Index 12.3% 16.7% -1.5% 8.5% 6.2% Fund Category: 87/1496 231/1227
328/931 46/414 111/1191 Morningstar Large-Cap Blend 13.2% 15.7%
-1.2% 7.3% 5.5% Schwab Dividend Equity 13.8% 17.5% 17.5% Fund -
Investor Shares Benchmark: S&P 500 Index 12.3% 11.9% 11.9% Fund
Category: 519/1086 184/986 184/986 Morningstar Large-Cap 13.7%
14.0% 14.0% Schwab Small-Cap Equity Fund - Investor Shares 27.8%
Benchmark: S&P 600 Index 21.2% Fund Category: 30/460 24/418
24/418 Morningstar Small-Cap Blend 19.2% 21.6% 21.6% Financial
Services Fund 17.3% 20.7% 6.5% 10.0% 19.0% Benchmark: S&P
Financials Sector 7.0% 15.9% 3.5% 7.6% 12.2% Fund Category: 13/120
17/103 37/77 40/74 13/105 Morningstar Specialty- Financial 9.4%
16.6% 7.4% 11.2% 13.8% Health Care Fund 32.7% 27.7% 7.5% 7.4% 30.2%
Benchmark: S&P Health Care Sector 12.1% 10.3% 0.4% 0.6% 6.3%
Fund Category: 4/178 12/157 14/96 22/95 2/167 Morningstar
Specialty-Health 15.9% 16.4% -0.8% 1.4% 12.2% Technology Fund 16.6%
26.8% -11.5% 12.4% 18.2% Benchmark: S&P Information Technology
Sector 13.6% 22.6% 13.6% 15.3% 11.7% Fund Category: 147/271 68/247
28/199 38/187 39/256 Morningstar Specialty- Technology 17.9% 24.7%
-17.5% -17.2% 13.1% Schwab Hedged Equity Fund-Select Shares 18.8%
16.7% 14.4% 14.4% Benchmark: S&P 500 Index 12.3% 16.7% 12.0%
12.0% Fund Category: 17/977 49/694 19/695 19/695 Morningstar
Moderate Allocation 10.8% 12.4% 9.9% 9.9% Schwab Premier Equity
Fund -- Investor Shares 9.5% 9.5% Benchmark: S&P 500 Index 4.3%
4.3% Fund Category: 47/1600 47/1600 Morningstar Large-Cap Blend
5.2% 5.2% PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL VALUE. VISIT SCHWAB.COM FOR
MONTH-END PERFORMANCE INFORMATION. CURRENT PERFORMANCE MAY BE LOWER
OR HIGHER RANKINGS REPRESENT THE RANKINGS COMPILED BY MORNINGSTAR
INC. AS OF 9/30/2005. MORNINGSTAR RANKING / # OF FUNDS IN CATEGORY
DISPLAYS THE FUND'S ACTUAL RANK WITHIN ITS MORNINGSTAR CATEGORY
BASED ON AVERAGE ANNUAL TOTAL RETURN AND NUMBER OF FUNDS IN THAT
CATEGORY. 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. DATASOURCE: Charles Schwab CONTACT: Sondra Harris of
Charles Schwab, +1-415-636-3292, or Web site:
http://www.schwab.com/
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