The funds are tied to target retirement dates 2010, 2020, 2030, 2040, and now, 2050. A sixth fund, the Schwab Managed Retirement Trust Fund – Income, is designed to provide income during retirement.
According to a press release from Schwab, The investment allocations in the five target-date funds become more conservative over time, with the goal of balancing risk and return, and the income fund has a fixed allocation of 75% bonds, stable value and cash, and 25% stocks.
align=”left”>In addition to launching the 2050 target-date retirement fund, Schwab has also added a third separate unit class at 54 basis points (0.54%) and eliminated minimum balance requirements for all unit classes. The funds are offered with all-in operating expense ratios of 89, 69 or 54 basis points.
Schwab recently added American Century Investments and State Street Global Advisors as domestic small-cap subadvisors to the funds. Sub-advisors for the Schwab Managed Retirement Trust Funds include:
- American Century Investments
- American Funds
- The Boston Company Asset Management
- Dodge & Cox
- Goldman Sachs Asset Management
- Pictet Asset Management
- State Street Global Advisors
- Turner Investment Partners
- The Vanguard Group
More information can be found at www.cstcfunds.com .
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