Schwab Monthly Income Funds
 
Schwab Monthly Income Funds Estimated Allocation Mix2
  • A fund’s actual annual payout may vary from one year to the next and over time due to several factors, including, without limitation, the interest rate environment, the performance of the financial markets in which the fund invests, the allocation of fund assets across different asset classes and investments, and the amount and timing of prior distributions by the fund. Although, a fund has its own distinct asset allocation strategy that is designed to accommodate the fund’s targeted annual payout percentage while taking into account the fund’s specific risk tolerances and desired level of capital appreciation, the fund’s actual annual payout could be higher or lower.
  • The Funds intend to allocate investments among various asset classes such as equity, fixed income and cash and cash equivalents (including money market funds). Each of the Funds’ target asset allocation is not fixed, and each of the Funds have the flexibility to move within their asset allocation ranges (under normal market conditions) at the discretion of the investment adviser. Market appreciation or depreciation may cause the Funds to temporarily be outside their ranges.
  • The 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.

Investment Objective

Each of the Schwab Monthly Income Funds seeks to provide monthly income and the opportunity for growth to meet future income needs.

Investment Strategy

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.

Schwab Monthly Income Funds
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
Cumulative Growth of a $10,000 Investment (pre-tax)
Growth of $10,000 Investment as of         
Fund
Category

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.

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 Income Funds

  • Monthly Income Funds

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Contact Us

Call your Schwab Funds representative at 877-824-5615