Each of the Schwab Monthly Income Funds seeks to provide monthly income and the opportunity for growth to meet future income needs.
The Schwab Monthly Income Funds utilizing a fund-of-funds strategy invest in a range of underlying fixed income and equity mutual funds, and are designed to deliver monthly income and the opportunity for growth. Investors choose the fund that matches their asset allocation needs and let Schwab portfolio managers do the rest.
Schwab Monthly Income Funds Line-Up
Schwab Monthly Income Fund — Maximum Payout
A target payout higher than the Enhanced Payout Fund with the most conservative level of growth potential.
Schwab Monthly Income Fund— Enhanced Payout
A target payout higher than the Moderate Payout Fund with an average level of growth potential.
Schwab Monthly Income Fund — Moderate Payout
A target payout with the highest level of growth potential compared to other Schwab Monthly Income Funds.
The Schwab Monthly Income Funds with a higher percent of equity investments generally have the greatest opportunity for potential growth. With this opportunity comes increased risk and the likelihood for fluctuation in net asset value. Actual asset allocation may vary over time depending on market conditions.
|Fund||Anticipated Annual Payout in Low Interest Rate Environment||Anticipated Annual Payout in High Interest Rate Environment|
|Schwab Monthly Income Fund-Moderate Payout||1-3%||3-6%|
|Schwab Monthly Income Fund-Enhanced Payout||1-4%||4-7%|
|Schwab Monthly Income Fund-Maximum Payout||1-5%||5-8%|
Yield targets are based on anticipated market returns. Actual returns may vary based on market conditions. Payout ranges mentioned are not actual rates of returns or yields, but simply a target payout percentage set by the advisor, based on historic yield environents over a ten year period. For distribution information, please visit www.schwab.com/monthlyincome or call 800.548.5589.
|Fund Name||Ticker||Net OER1||Min. Investment|
|Schwab Monthly Income Fund-Moderate Payout||SWJRX||0.67%||$100|
|Schwab Monthly Income Fund-Enhanced Payout||SWKRX||0.57%||$100|
|Schwab Monthly Income Fund-Maximum Payout||SWLRX||0.46%||$100|
Distinguishing Characteristics and Benefits
- Provides monthly income and a degree of growth potential
- Actively managed and reallocated as needed over time to maintain desired payout strategy
- Although monthly payouts may not be equal, the Funds are managed to moderate fluctuations in distributions over the course of a year
- Can be used as a single income solution or an income-producing component of a larger portfolio
Investment Management Team
Charles Schwab Investment Management actively manages the Schwab Monthly Income Funds, monitoring the market and adjusting investments as needed to keep the Funds in line with their income and growth objectives.