New Schwab Portfolios(TM) Leverage Industry-Recognized Schwab Equity Ratings
June 28 2005 - 10:01AM
PR Newswire (US)
New Schwab Portfolios(TM) Leverage Industry-Recognized Schwab
Equity Ratings Now Investors Can Easily Access Schwab's Advice via
Diversified Portfolios of Stocks or Mutual Funds SAN FRANCISCO,
June 28 /PRNewswire-FirstCall/ -- To meet the growing needs of
investors looking for convenient, easy-to-implement investment
advice, Charles Schwab, & Co., Inc., has introduced Schwab
Portfolios, diversified portfolios of stocks, exchange traded funds
(ETFs) or mutual funds. Schwab Portfolios are designed for
investors who are looking to invest between $10,000 and $200,000
without having to do lengthy research and complex analysis. Stock
selection within the portfolios and several of the mutual funds
leverages Schwab Equity Ratings(R), the firm's industry-recognized
approach to stock selection. Schwab Stock Portfolios "Schwab Stock
Portfolios are a breakthrough for investors. Until now it's been
time consuming and expensive for people to invest $50,000 directly
in well-researched stocks and still obtain the diversification
required to help manage risk," said James Burton, senior vice
president of advised investing for Charles Schwab. "The new Schwab
Stock Portfolio solves these challenges by providing sector
diversification, stock selection based on research with a
demonstrated track record, and zero trading commissions under a
very reasonable fee structure." Schwab Stock Portfolios are made up
of 30 stocks -- all with Schwab Equity Ratings of A or B and
diversified across all 10 market sectors -- for an investment
minimum of as little as $50,000. With help from a Schwab
consultant, investors select a portfolio that matches their
objectives and comfort with risk. Exchange-traded funds of stocks
and bonds may also be recommended to complete the asset allocation.
Schwab investment consultants provide ongoing guidance, including
an annual portfolio consultation, specific buy and sell
recommendations to periodically rebalance the portfolio, and
assistance with trades. Investors pay an asset-based fee of 1.25
percent, which includes commissions on all recommended trades
executed with a Schwab consultant. The 30 stocks used in the Stock
Portfolio are drawn from Schwab's Composite Stock List, which has
an impressive track record. On average, for all complete 52-week
periods and assuming transaction costs of 1%, the list has returned
31.1% versus the S&P 500 Index(R) performance of 17.6% (as of
3/28/2005). (See below for important disclosure information).
Schwab Mutual Fund Portfolios For investors who prefer mutual
funds, Schwab Portfolios provide a mix of Schwab Funds that use
Schwab Equity Ratings, together with quality third-party funds
handpicked by the Schwab Center for Investment Research from
Schwab's Select List. The mutual fund portfolios are available on
http://www.schwab.com/ with a $25,000 initial investment ($10,000
in a retirement account) and are provided at no additional cost for
clients who do not require ongoing support from a Schwab
consultant. Clients who would like ongoing guidance in managing
their portfolios and have $50,000 to invest will pay an asset-based
fee of 0.75 percent for Schwab's Advised Investing service, which
includes commissions on recommended trades. "People today have more
at stake than ever when it comes to managing their investments,"
said Burton. "But they also have less time. Schwab Mutual Fund
Portfolios provide a simple, top-quality solution for those who
seek an easy-to-implement portfolio built to deliver both
performance potential and diversification. And for investors who
want ongoing support, our optional advised investing service
provides ongoing reviews and specific recommendations from a
financial professional." About Schwab Equity Ratings Schwab Equity
Ratings provides an objective assessment of approximately 3000 U.S.
head-quartered equities, more than any other 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
average stock over the next 12 months. The ratings assess 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, visit http://www.schwab.com/. 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 April 30, 2005.
It is the country's third-largest money market fund manager and
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. In total, CSIM
currently manages 62 mutual funds, including 21 actively managed.
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/.
(0005-8421) 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 800 435-4000. Please read the prospectus
carefully before investing. Investment value will fluctuate, and
shares, when redeemed, may be worth more or less than original
cost. The Schwab Center for Investment Research is a division of
Charles Schwab & Co., Inc Limitations of Model Performance
Schwab's Composite Stock List performance results are simulated
model portfolio performance results, which do not represent actual
investment performance or trading. The performance is past
performance and no indication of future results. Since the trades
have not actually been executed, the results do not reflect the
impact of certain market factors such as limited trading liquidity.
No representation is being made that any investor will or is likely
to achieve profits or losses similar to those shown in relying on
Schwab Equity Ratings or any stock model or list. The performance
of the Schwab Composite Stock List is not an indication of the
future performance of investment products using Schwab Equity
Ratings. Schwab Composite Stock List: Performance is calculated for
each complete 52-week period since the Schwab Composite Stock List
was first published on November 18, 2002. Performance results
assume that a hypothetical investor would have purchased all stocks
on the Composite Stock List in equal value amounts at the market
close of the first available trading day on or after the date of
publication (typically on Mondays unless there was a holiday), and
would then have held those stocks until the market close of the
first available trading day on or after the date that is exactly 52
weeks later than the date of first publication. Schwab calculates
the simple total return for each stock in the Composite Stock List
by dividing the ending price plus dividends paid during the period,
if any, by the starting price for the holding period, minus one.
The simple total return includes dividends, if any, which are held
as non-interest-bearing cash, during the 52-week period. After all
of the individual stock returns are calculated, Schwab then
averages the simple total returns for all of the stocks held in a
Composite Stock List during the 52-week holding period to find the
arithmetic average return of the list. Thus, the 52-week
performance for each Composite Stock List is calculated as the
equal-weighted average return of all of the simple total returns
associated with each stock held in each Composite Stock List.
Schwab also subtracts 1% of hypothetical transaction costs for each
52-week list's performance. The amount of the actual commissions
and other fees an investor would actually pay will vary. If the
stock has stopped trading due to acquisition, financial distress,
delisting by an exchange, or other similar circumstance, the stock
is assumed to be liquidated on the close of its last trading day.
Proceeds, if any, are held as non-interest-bearing cash. In
instances in which a stock continues to trade but its stock symbol
changes during a performance calculation period, the symbol
reflected will be the stock's symbol as of the start of the
applicable performance calculation period. Any stock splits are
accounted for by using the company's split-adjusted prices.
DATASOURCE: Charles Schwab CONTACT: Sondra Harris, +1-415-636-3292,
or , or Sarah Bulgatz, +1-415-636-4940, or , both of Charles Schwab
Web site: http://www.schwab.com/
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