SAN FRANCISCO, March 13 /PRNewswire-FirstCall/ -- For the second year
in a row, Schwab Equity Ratings(R) have powered Charles Schwab & Co.,
Inc.'s model portfolio to one of the first-place finishes in the latest
survey of stock selection performance compiled by Zacks Investment
Research, and reported in Barron's. In the five-year category, Schwab's
model equity portfolio outpaced the S&P 500 Index's 35 percent gain by more
than 60 percentage points, returning 97.05 percent for the 2002-2006
period.
"We are pleased that once again, Schwab Equity Ratings have
demonstrated their ability to consistently identify a group of
outperforming stocks over the long term," said Mark Riepe, senior vice
president of the Schwab Center for Investment Research. "Not only are the
ratings popular with our clients, who use them to help with stock
selection, they have become a critical element of the investment strategies
used by our portfolio managers to manage nearly $9 billion in mutual funds
and managed accounts. All of Schwab Funds' actively-managed equity funds
have beaten their benchmarks since they began incorporating Schwab Equity
Ratings in their investment strategies."
Highlights of Schwab's performance:
*For the five-year period ending Dec. 31, 2006, the Schwab portfolio
posted a return of 97.05 percent, up from a 58.7 percent return for the
previous five-year period and beating the closest competitor in the
category by almost 40 percentage points. In dollar terms, this is
equivalent to a $100,000 portfolio on Jan. 1, 2002 growing to $197,050
during this five-year period. Invested in the S&P 500, the portfolio
would have grown to only $135,000.
*In the three-year category, the portfolio finished in third place with a
52.48 percent return, placing it in the top three for best performance
for the fourth year in a row.
"The Schwab Equity Ratings model portfolio has come in first in either
the three- or five-year category every year since we began participating in
the competition," said Greg Forsythe, senior vice president, Schwab Equity
Ratings. "Once again, the ratings have proven their effectiveness at
identifying both high- and low-performing stocks, especially over the long
haul."
Schwab manages nine mutual funds and a suite of managed account
portfolios that leverage the ratings but with different strategies than
those used in the model portfolio. The funds include the Schwab Core Equity
Fund (SWANX), the Schwab Dividend Equity Fund (SWDIX, SWDSX), the Schwab
Large-Cap Growth Fund (SWLNX, SWLSX), the Schwab Hedged Equity Fund (SWHEX,
SWHIX), the Schwab Premier Equity Fund (SWPNX, SWPSX), the Schwab Small-Cap
Equity Fund (SWSCX, SWSIX), the Schwab Health Care Fund (SWHFX), the Schwab
Financial Services Fund (SWFFX), and the Schwab Technology Fund (SWTFX).
For more information about Schwab Equity Ratings and the equity model
portfolio, call 1-800-SCHWAB or go to http://www.schwab.com/barronscontest .
About the Schwab Equity Model Portfolio
The portfolio consists of 100 of the 1,000 companies with the largest
market capitalization in the U.S. and is designed to approximate the
sector/industry weightings of the S&P 500. In developing the portfolio, a
rigorous monthly review of these stocks is conducted using Schwab Equity
Ratings' disciplined approach to stock selection, focusing on fundamentals,
valuation, momentum and risk. The portfolio adheres to strict buy/sell
criteria and may trade monthly, based on the last Schwab Equity Rating of
the month. Stocks that no longer meet Schwab's strict criteria are dropped
from the list and replaced by more highly rated stocks.
About Schwab Equity Ratings
Using consistent analysis, Schwab Equity Ratings provide a disciplined
and objective evaluation of approximately 3,000 U.S.-headquartered stocks.
Schwab assigns clear and easy-to-understand ratings of A, B, C, D or F to
help identify stocks that are expected to outperform or underperform the
market over the next 12 months. Schwab's outlook is that A-rated stocks
will, on average, strongly outperform, while F-rated stocks on average will
strongly underperform. Ratings are generally updated each week to reflect
new financial data and other information. Schwab provides clients with
online access to Schwab Equity Ratings for their own equity research and
posts the performance history of the ratings on Schwab.com. The ratings
power Schwab's managed accounts, many mutual funds and advised products and
solutions, and are used by Schwab Private Client consultants as the basis
for buy and sell stock recommendations.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.8 million client
brokerage accounts, 570,000 corporate retirement plan participants, 149,000
banking accounts, and $1.3 trillion in client assets. Through its operating
subsidiaries, the company provides a full range of securities brokerage,
banking, money management and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org ),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org ) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com . (0307-5135)
Important Disclosures:
For all model performance results, there are inherent limitations which
investors should understand. Unlike an actual performance record, simulated
results do not represent actual investment performance or trading. Since
the trades have not actually been executed, the results may have under- or
over-compensated for the impact, if any of certain market factors, such as
the effect of limited trading liquidity. No representation is being made
that any investor will or is likely to achieve results similar to those
shown. The results presented reflect past performance and should not and
cannot be viewed as an indicator of future performance. The results shown
are not an indicator of the returns a Schwab client would have realized or
will realize in relying on Schwab Equity Ratings or any stock list or model
mentioned. The Schwab Equity Model Portfolio utilized the Schwab Equity
Ratings and final investment selection was made by a portfolio manager. The
performance of the Schwab Equity Model Portfolio is not an indication of
the future performance of investment products using Schwab Equity Ratings.
Schwab Equity Ratings and the lists or models mentioned are not
personal recommendations for any particular investor and do not take into
account the financial, investment or other objectives and may not be
suitable for any particular investor. Before buying, investors should
consider whether the investment is suitable for themselves and their
portfolio. Additionally, investors should consider any recent market or
company news. Stocks can be volatile and entail risk and individual stocks
may not be suitable for you. Indexes are unmanaged, do not incur management
fees and expenses and cannot be invested in directly.
Barron's awarded Schwab the first-place rank for the five-year period
from Dec. 31, 2001, to Dec. 31, 2006, for "best of" stock recommendation
lists submitted by certain brokerage firms to Zacks Investment Research,
Inc. ("Zacks"), an independent firm that analyzes broker research. All
hypothetical buy and sell trades were charged a 1 percent commission and
assumed to take place at the stock's closing price. Performance of the
portfolios submitted was calculated using an equal-weighted return
methodology that is administered by Zacks, an independent firm, whereas the
performance of the S&P 500(R), as noted by Barron's, is stated as the
capitalization-weighted return. The S&P 500 Index represents a list of 500
leading companies from leading industries. Indices are unmanaged, do not
incur management fees and expenses, and cannot be invested in directly.
Each brokerage firm had its own methodologies in picking its stock lists,
which differed in many respects, including the number of issues held,
frequency of trading, and changes of selection criteria over time. Barron's
is a registered trademark of Dow Jones & Company, Inc. All rights reserved.
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.
In March 2007, Barron's reported Schwab's third place win for the
three-year period from Dec. 31, 2003, to Dec. 31, 2006 for "best of" stock
recommendation lists submitted by certain brokerage firms to Zacks. In
February 2006, Barron's, reported Schwab's third-place win for the
three-year period from Dec. 31, 2002 to Dec. 31, 2005. In January, 2005,
Barron's reported Schwab's first-place win for the three-year period from
Dec. 31, 2001 to Dec. 31, 2004, In January 2004, Barron's reported Schwab's
first-place win for the three-year period from Dec. 31, 2000, to Dec. 31,
2003.
THIS IS A BROKERAGE SERVICE.
The Securities and Exchange Commission requires all broker-dealers who
give brokerage advice for a fee to make the following disclosure. Accounts
enrolled in this Schwab Private Client service are brokerage accounts and
not advisory accounts. Our interests may not always be the same as yours.
Please ask us questions to make sure you understand your rights and our
obligations to you, including the extent of our obligations to disclose
conflicts of interest and to act in your best interest. We are paid both by
you and, sometimes, by people who compensate us based on what you buy.
Therefore, our profits, and our salespersons' compensation, may vary by
product and over time. Please call us at 888-878-3892 if you have questions
about the differences between a brokerage service and an advisory service.
For details about the features, benefits and fees associated with Schwab
Private Client, please see the Schwab Private Client Supplement to Account
Application and Agreement.
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Sarah Bulgatz of Charles Schwab,
+1-415-636-5940, or sarah.bulgatz@schwab.com
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