Schwab Survey Finds a Majority of Investors Are Not Monitoring or Adjusting Their Mutual Fund Portfolios

Friday, July 31, 2009 8:44 am PDT



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SAN FRANCISCO--(BUSINESS WIRE)--A recent Charles Schwab survey found that just 4 out of 10 (39 percent) mutual fund investors surveyed have made changes to their portfolio allocations since the stock market began to decline. Less than half (45 percent) of those surveyed have become more knowledgeable about their investments since the financial crisis began roughly two years ago.

The survey of 602 mutual fund owners, conducted after nearly two years of bad news about the financial markets, also found that only 31 percent of those surveyed claimed they speak with their broker or financial advisor on a regular basis, while 36 percent indicated they do not know which mutual funds they own.

“When market volatility occurs, it presents a great opportunity for individuals to increase their levels of engagement in how they manage their investments,” said Peter Crawford, senior vice president for investment management service at Charles Schwab. “At a time when people are probably in need of more guidance, we encourage investors to ask questions and seek out a deeper relationship with your broker or financial consultant. Greater engagement will help ensure individuals maximize the opportunities that are available to them.”

To help investors achieve their goals, Schwab recently significantly reduced expense ratios in its proprietary equity index mutual funds to among the lowest in the industry. Schwab also lowered all Schwab equity and bond mutual fund investment minimums to one hundred dollars. In addition, earlier this year Schwab announced changes to its target date mutual funds intended to help investors more effectively achieve their long-term retirement goals, including reducing expenses and increasing weightings toward bonds versus stocks as investors approach retirement.

“If your portfolio has recently experienced a decline due to market volatility, it’s natural to feel anxious and unsure about how to get back on track. It’s all right to feel that way, but it is not all right to disengage as a way to deal with those feelings,” said Crawford. “We encourage investors to ask questions so they can get the clarity they need to help them feel less anxious. Our aim is to make sure our clients have those answers, all while receiving good value and straightforward products.”

About the Survey

The Charles Schwab Mutual Fund Survey is based on a sample of 602 mutual fund owners age 18 and older. It was conducted by Kelton Research in April 2009.

Investors should carefully consider 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.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 593,000 banking accounts, and $1.2 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,, 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. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (0709-10152)


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