Schwab Target Funds
 

Investment Objective

Schwab Target Funds seek to provide capital appreciation and income consistent with their current asset allocation.

Investment Strategy

The Schwab Target Funds are designed for investors with a planned date of retirement. The target date is the date, or date range, when it’s expected that the investor will begin gradual withdrawals of fund assets, to begin covering expenses in retirement. Utilizing a fund-of-funds strategy, the Fund expects to gradually decrease its equity holdings and increase its fixed income holdings as the target date approaches and for approximately 20 years beyond the target date. The Portfolio Manager allocates across a broad range of asset classes by investing in a combination of active and passive proprietary and sub-advised/externally managed strategies. The principal value of the Fund is not guaranteed at anytime, including target date.  

  • Accumulating for retirement—A higher proportion is invested in equity to provide more growth potential, and the opportunity to build assets and keep up with inflation. The specific allocation will depend on how far away the investor is from the target date.
  • Closer to retirement—A higher proportion is invested in fixed income and cash and cash equivalents (including money market funds) to provide the increased stability and income needed in preparation for retirement. At the target date, the Fund will be invested in approximately 40% equity, 54% fixed income and 6% cash and cash equivalents (including money market funds).
  • Living in retirement—Once the target date is reached, the Fund continues to be invested more conservatively. The fixed income allocation increases and the equity exposure decreases to help protect the portfolio while still providing some opportunity for growth. Twenty years after the target date, the Fund will reach its most conservative allocation of 25% equity, 66% fixed income and 9% cash and cash equivalents (including money market funds).
Schwab Target Funds
Fund Name Ticker Net OER1 Min. Investment
Target 2010 Fund SWBRX 0.52% $100
Target 2015 Fund SWGRX 0.58% $100
Target 2020 Fund SWCRX 0.65% $100
Target 2025 Fund SWHRX 0.71% $100
Target 2030 Fund SWDRX 0.74% $100
Target 2035 Fund SWIRX 0.78% $100
Target 2040 Fund SWERX 0.80% $100
Target 2045 Fund SWMRX 0.75% $100
Target 2050 Fund SWNRX 0.76% $100
Target 2055 Fund SWORX 0.73% $100

Distinguishing Characteristics and Benefits

  • Rebalancing. Your investment is reallocated based on your target date to help meet your retirement goals.
  • Good Value. Your Fund is competitively priced so your investment goes further.
  • Diversified solution. Your portfolio is a combination of active and passive proprietary and sub-advised/externally managed strategies*.
Cumulative Growth of a $10,000 Investment (pre-tax)
Growth of $10,000 Investment as of         
Fund
Category

(Note that the retirement year included in a Target Fund's name does not necessarily represent the specific year an investor expects to retire; it is intended only as a general guide.)

Investment Management

Charles Schwab Investment Management actively manages the Schwab Asset Allocation Funds to provide diversification across key asset categories. Portfolio managers monitor the market and adjust investments as needed to keep all the Funds in line with their stated objectives.

Investment Management Team

Zifan Tang, Ph.D., CFA

Managing Director, Head of Asset Allocation Strategies
Full Bio>
 
Investment Management Bio

Zifan Tang, Ph.D., CFA

Managing Director, Head of Asset Allocation Strategies

Zifan Tang is a Managing Director and Head of Asset Allocation Strategies for Charles Schwab Investment Management, Inc. (CSIM).  Ms. Tang leads the portfolio management team of Schwab’s asset allocation strategies, which comprise the Schwab Target Funds, Schwab MarketTrack Portfolios, Schwab Monthly Income Funds, and Schwab Balanced Fund. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in January 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors, which was subsequently acquired by BlackRock.

Ms. Tang holds a Ph.D. in Engineering from Royal School of Mines, Imperial College of Science, Technology and Medicine in London, UK. She is a CFA charterholder.

0213-0942

Schwab Asset Allocation Funds

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Contact Us

Call your Schwab Funds representative at 877-824-5615