SAN FRANCISCO, March 22 /PRNewswire-FirstCall/ -- Charles Schwab
Investment Management, Inc. (CSIM), the asset management subsidiary of The
Charles Schwab Corporation, announced today that the Schwab Short-Term Bond
Market Fund(TM) won The 2006 Lipper Fund Award for consistent return for
the three-year period ending Dec. 31, 2006. It was first in both the three-
and five-year periods out of 67 and 59 funds respectively. In addition, the
fund received a Lipper Performance Achievement Certificate for 2006, coming
in first out of 72 funds. The Schwab YieldPlus Fund(R) was also awarded a
Performance Achievement Certificate for 2006, coming in first for both the
one- and five-year periods, competing with 78 other ultra-short bond funds
in the one-year period and 45 funds in the category over five years.(1)
Both Schwab funds are managed by the taxable fixed income management
team headed by Kim Daifotis, senior vice president and chief investment
officer of fixed income, and Matt Hastings, senior portfolio manager.
"We're proud that once again, Lipper has recognized the excellent work
that our fixed income management team does on behalf of investors," said
Evelyn Dilsaver, president and CEO of CSIM. "It's not often that the same
management team receives top honors for two funds in the same year."
Daifotis credited the depth and experience of the Schwab fixed income
management team with consistently making the right calls for the funds.
"To be No. 1, you have to do everything well and capitalize in all
areas -- trading, credit analysis and portfolio management -- not just
outperform in one aspect," said Daifotis. "Our overall performance might
receive the attention, but we're especially pleased with our risk-adjusted
performance. That is what's important to our investors. We don't seek to
hit homeruns, but we aim for a lot of singles and the occasional double.
These funds have great long-term records because of consistent out
performance, little by little, every month."
Daifotis said the Schwab team positioned the funds well for last year's
rising interest rate climate, allowing them to find pockets of extra return
without excess risk. He also noted the funds' management team avoided the
lower-quality end of the subprime mortgage market that is causing so much
concern in today's market.
The Schwab YieldPlus Fund, which has over $12 billion in assets and is
the largest in its category, seeks higher yield than a money-market fund
(Yield Plus Fund is not a money market fund.) while managing changes in
share price by investing in ultra-short-term bonds. The Schwab Short-Term
Bond Market Fund seeks high current income by tracking the performance of
the Lehman Brothers Short (one-five years) U.S. Government/Credit Index.
Lipper, Inc., a subsidiary of Reuters, is a global mutual fund research
company. Lipper's Performance Achievement Certificates are awarded to funds
with returns that topped their Lipper category over one or more time
periods: one, five, 10 or 15-year (depending on universe). Certificates are
awarded for all Lipper Classifications and for the overall fund universe.
Open-end funds, closed-end funds and variable insurance products are
considered for awards.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. INVESTORS SHOULD
CONSIDER CAREFULLY INFORMATION CONTAINED IN THE PROSPECTUS, INCLUDING
INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOU CAN REQUEST A
PROSPECTUS BY CALLING 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.
BOND FUNDS ARE SUBJECT TO INCREASED LOSS OF PRINCIPAL DURING PERIODS OF
RISING INTEREST RATES.
Fund Management
Daifotis has overall responsibility for Schwab's taxable and municipal
bond and money market funds, which exceed $156 billion in assets. In
addition, he is responsible for the portfolio management of 10 proprietary
fixed income funds as well as the fixed income components for Schwab's
MarketTrack Portfolios(R) and Schwab Target Funds(TM). He has managed the
Schwab Short- Term Bond Market Fund since 1997 and the Schwab YieldPlus
Fund since its inception in 1999. Hastings is a member of the management
team that oversees the taxable fixed income strategies for Schwab Funds(R).
He joined Charles Schwab in 1999, and has been co-manager of the Schwab
YieldPlus Fund and the Schwab Short-Term Bond Market Fund since 2004.
About Charles Schwab Investment Management (CSIM)
Founded in 1991, Charles Schwab Investment Management, Inc., an
affiliate of Charles Schwab & Co., Inc., is one of the nation's largest
asset management companies with $222 billion in assets under management as
of Feb. 28, 2007. It is among the country's largest money market fund
managers and is the 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. CSIM also manages
over $1.3 billion in separately managed accounts as of Feb. 28, 2007. CSIM
currently manages 68 mutual funds including 33 actively managed funds and
five separate account model portfolios.
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, 584,000 corporate retirement plan participants, 150,000
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. (0307-5732)
(1) Shares mentioned were Schwab's Select Share class which have a
minimum purchase of $50,000. An additional share class is available
with a lower initial investment and a higher net operating expense
ratio, but with commensurate lower performance.
SOURCE Charles Schwab
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Related links:
http://www.schwab.com/
CONTACT:
Sondra Harris of Charles Schwab,
+1-415-636-3292, sondra.harris@schwab.com; or Amiee Watts of
SunStar PR, 1-703-894-1042, awatts@isunstar.com
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