Schwab Adds 2050 Fund to Target Date Line-up

March 19, 2007 ( - Charles Schwab has added a fifth target date fund - the 2050 fund - to its line up of Schwab Managed Retirement Trust Funds that are managed by The Charles Schwab Trust Company (CSTC).

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 .