Charles Schwab Expands Target-Date Collective Trust Fund Line-up for Retirement Plan Clients.Launch of New Index Target-Date Funds Provides Plan Sponsors with More Choice SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Charles Schwab Charles Schwab can refer to:
CSTC Combined Security Transition Command CSTC Calcutta State Transport Corporation CSTC Consolidated Space Test Center CSTC Consolidated Satellite Test Center CSTC Cyber Solutions Tools Center ) has expanded its offering of target-date collective trust funds1 for retirement plans to include the Schwab Indexed Retirement Trust Funds[TM], which primarily use index strategies. The Schwab Indexed Retirement Trust Funds are passively managed collective trust funds, managed and distributed by CSTC, a division of Charles Schwab Bank, that use primarily passively-managed investment strategies (index funds) in building their asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. models. The funds, designed specifically for investment by defined contribution plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan participants, are tied to target retirement dates 2010 to 2050 in five-year increments. The Schwab Indexed Retirement Trust Funds are comprised of a mix of index-based collective trust funds and a stable value portfolio. Similar to the Schwab Managed Retirement Trust Funds[TM], CSTC's actively managed target-date collective trust funds for defined contribution plans, each fund is a comprehensive portfolio that uses sub-advisors, which gives Schwab the flexibility to replace underperforming portfolios and can increase the comfort level of plan sponsors who prefer a multiple manager strategy. In addition, the funds' collective trust structure helps keep costs low, another key benefit for plan sponsors and participants. "We have seen very high adoption of target-date retirement funds with nearly 70 percent of Schwab Retirement Plan Services clients making them available to their participants," said John Sturiale, investment officer for Schwab's collective trust funds for retirement plan clients. "We're expanding our offer to include these passively managed funds to give plan sponsors more choice and flexibility in the types of investments they can make available to their employees." The Schwab Indexed Retirement Trust Funds have no minimum balance requirements and have an all-in operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratio of 0.18 percent. The investments in the fund portfolios are allocated among Russell 1000 Value, Russell 1000 Growth, Russell 2000, MSCI EAFE The MSCI EAFE (NYSE: EFA) is a stock market index of foreign stocks, from the perspective of a North American investor. The index is market capitalization weighted (meaning that the weight of securities is determined based on their respective market capitalizations. , and Lehman Aggregate Bond index-based collective trust funds offered by Mellon Capital Management, one of the nation's largest tax-exempt index managers; and the stable value strategy is managed by CSTC. The funds are distributed both directly to eligible, qualified retirement plan clients of CSTC and Charles Schwab & Co., Inc., and are also available for trading by other retirement providers through the National Securities Clearing Corporation (NSCC See National Securities Clearing Corporation. NSCC See National Securities Clearing Corporation (NSCC). ). The funds' portfolios are designed to become more conservative over time, reaching 40 percent equity and 60 percent fixed income at each of the target dates, with the goal of balancing risk and return. The funds continue to become more conservative for 20 years beyond the target retirement dates. Once they reach 25 percent stock and 75 percent fixed income allocations, the allocations no longer change. For more information about the funds, visit www.cstcfunds.com. About Schwab Corporate & Retirement Services Schwab Corporate & Retirement Services, a division of Charles Schwab & Co., Inc., provides a broad range of investing services through the workplace, including employer-sponsored retirement plans direct to corporations or through a nationwide network of more than 300 retirement Third Party Administrators (TPAs). The division also offers the Schwab Personal Choice Retirement Account[R] and provides employee equity compensation plan services and corporate brokerage services, in addition to a range of recordkeeping, custodial and trustee services, which are available through Charles Schwab Trust Company, a division of Charles Schwab Bank. Schwab Corporate & Retirement Services also includes Charles Schwab Clearing Services (CSCS CSCS Certified Strength and Conditioning Specialist CSCS Center for the Study of Complex Systems (University of Michigan) CSCS Construction Skills Certification Scheme (UK) CSCS Center for Surface Combat Systems ), which provides mutual fund trading, settlement, and related clearing services to a small number of banks, brokerage firms and trust companies. As of March 31, 2008, assets held in Schwab Corporate & Retirement Services stood at $227.8 billion. About Charles Schwab The Charles Schwab Corporation (Nasdaq:SCHW SCHW Silver Chitin Handwraps (Everquest gaming) ) is a leading provider of financial services, with more than 300 offices and 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. , 344,000 banking accounts, and $1.5 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. , http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment Fee-Based Investment An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this to commission-based investment, in which the advisor makes money based on the amount of trades made or the advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank (member FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) provides banking and mortgage services and products. More information is available at www.schwab.com. (c) 2008 Charles Schwab Bank. All rights reserved. (0608-3092) 1 The Schwab Managed Retirement Trust Funds[TM], Schwab Indexed Retirement Trust Funds[TM], Schwab Institutional Trust Funds[R], and Charles Schwab Stable Value Fund[TM] are collective trust funds distributed by Charles Schwab Trust Company ("CSTC"), a division of Charles Schwab Bank. CSTC acts as trustee and manager of the Funds. The Funds are not mutual funds, and their units are not registered under the 1933 Act, as amended or applicable securities laws of any state or other jurisdiction. The Funds are not registered under Investment Company Act of 1940, as amended, or other applicable law, and unit holders are not entitled to the protections of the 1940 Act. The Funds are not insured by CSTC, any of its affiliates, the FDIC or any other person. As defined in the Funds' Declaration of Trust and Participation Agreement documents, the Funds are available for investment by eligible, qualified retirement plan trusts only. The unit value of the Funds will fluctuate, and investors may lose money. Various asset classes of the underlying funds, such as small-cap and international, may carry additional risks. |
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