Schwab Institutional Diversified International Trust Fund Provides Retirement Plan Sponsors and Participants with Greater Diversification and Simplicity
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Bank, a trust and custody service provider to 401(k) and other retirement plans announced today the addition of the Schwab Institutional Diversified International Trust Fund to its suite of collective trust funds. The Fund, designed specifically for investment by retirement plan sponsors and participants, is available through Charles Schwab Trust Company, a division of Charles Schwab Bank. The Fund is also available to retirement plan clients through the National Securities Clearing Corporation (NSCC).
The Schwab Institutional Diversified International Trust Fund is a collective trust fund designed to provide qualified retirement plan sponsors and participants with an international investment vehicle that gives them broad international diversification through a single fund investment. The Fund invests primarily in common stocks within the International Large Cap, Small Cap, and Emerging Market asset classes.
“The new Diversified International Fund is a comprehensive, well diversified, international trust fund that can serve as a cost efficient addition to a retirement plan investment menu,” said John Sturiale, vice president and portfolio manager, Charles Schwab Investment Management. “This fund was constructed by focusing on the same principles that drive our full suite of collective trust funds, including open investment architecture, providing institutional value and expertise to individual retirement plan investors, and straightforward investment solutions.”
The Schwab Institutional Diversified International Trust Fund is offered in two unit classes, providing pricing flexibility to retirement plan sponsors as they determine the investment menu for the plan. The Fund is offered without minimum balance requirements and with the following all-in operating expense ratios: Institutional Unit Class (0.79%) and Retirement Unit Class (1.04%).
Schwab’s collective trust funds provide plan sponsors and participants with diversified portfolios across an array of asset class strategies based on a non-proprietary investment sub-advisor model, which provides access to each sub-advisor’s expertise in a specific asset class. The use of sub-advisors gives Schwab the flexibility to replace sub-advisors and can appeal to plan sponsors who prefer a multiple manager strategy. In addition, the funds’ collective trust structure helps keep costs down, another key benefit for a plan and its participants.
In addition to the new Schwab Institutional Diversified International Trust Fund, Schwab’s suite of collective trust funds includes:
- Schwab Managed Retirement Trust Funds* – Primarily actively managed funds tied to target retirement dates in five-year increments from 2010 to 2050.
- Schwab Indexed Retirement Trust Funds* – Primarily passively managed funds tied to target retirement dates in five-year increments from 2010 to 2050.
- Charles Schwab Stable Value Fund – A diversified, low cost capital preservation vehicle supported by a variety of well-known and experienced investment sub-advisors, and wrapped by multiple insurers and banks.
- Schwab Institutional Core Plus Fixed Income Trust Fund – Low cost fixed income fund supported by a variety of well known and experienced sub-advisors.
- Schwab Institutional Large Cap Growth, Value and Small Cap Trust Funds – Low cost equity funds in differing styles supported by a variety of well known and experienced sub-advisors.
For more information about Schwab’s collective trust funds, visit www.cstcfunds.com.
The Schwab Managed Retirement Trust Funds™, the Schwab Indexed Retirement Trust Funds®, the Schwab Institutional Trust Funds®, Schwab Institutional Diversified International Trust Fund, and the Charles Schwab Stable Value Fund™ are collective trust funds managed and distributed by Charles Schwab Trust Company (CSTC), a division of Charles Schwab Bank. CSTC acts as trustee, manager, and distributor of the Funds and is responsible for the selection, monitoring and replacement of the Funds' investment sub-advisors. The Funds are not mutual funds, and their units are not registered under the Securities Act of 1933, as amended or applicable securities laws of any state or other jurisdiction. The Funds are not registered under Investment Company Act of 1940, as amended, or other applicable law and unit holders are not entitled to the protections of the 1940 Act. The Funds are not insured by CSTC, any of its affiliates, the FDIC or any other person. As defined in the Funds’ Declaration of Trust and Participation Agreement documents, the Funds are available for investment by eligible, qualified retirement plan trusts only.
*Target date funds are built for investors who expect to start gradual withdrawals of fund assets on the target date, to begin covering expenses in retirement. The principal value of the funds is not guaranteed at any time, and will continue to fluctuate up to and after the target date.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.9 million client brokerage accounts, 1.5 million corporate retirement plan participants, 665,000 banking accounts, and $1.47 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, 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 Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com. (1110-7058)