American Beacon has partnered with Schwab to offer an Institutional Share Purchase Program (ISPP) allowing American Beacon employees to purchase the American Beacon Funds - Institutional Class online without an investment minimum or transaction fee for online purchases.1 You can also set up an Automatic Investment Plan of recurring investments in American Beacon Institutional Shares in your Schwab account:
Eligible accounts: Taxable individual accounts, joint accounts, UGMA/UTMA accounts, family trust accounts, IRAs.
1. Broker-assisted and automated phone trades are subject to service charges. Refer to the Charles Schwab Pricing Guide for Individual Investors for full details. Schwab's short-term redemption fee of $49.95 may be charged on redemptions of funds held for 90 days or less. Funds are also subject to management fees and expenses.
Yes, you can. Please call Schwab at 888-847-1269 and ask to be included in the American Beacon Institutional Share Purchase Program.
To offer you access to the Institutional Share Purchase Program, some internal verification procedures are required. These procedures generally allow you to place your first trade within 72 hours of your call to Schwab.
Please visit the American Beacon Home Page.
You may update your account online through Schwab.com or via telephone at 800-435-4000.
Generally, it takes up to five days for Schwab to establish a new account. Upon receiving your account information, you may submit a request for automatic deposits through your banking institution.
Yes, you can transfer another brokerage account to Schwab. To transfer your shares, you can complete Schwab's transfer paperwork or call 888-847-1269 to have Schwab walk you through the process.
You can choose any option listed on Schwab’s account opening form, including direct deposit. Please contact your banking institution directly.
If you would like to automatically deposit a portion of your paycheck to fund the account, please access your pay detail in Exponent HR. Timing is subject to direct deposit deadline.
The cash deposited into the account is not automatically invested into the institutional funds; it will remain in the Schwab Bank Sweep feature. To invest the cash deposited from your paycheck, follow these Instructions to set up an Automatic Investment Plan.
The Schwab Bank Sweep feature is a cash option for account holders residing in the U.S. The Bank Sweep feature sweeps the uninvested cash in your account to deposit accounts at Charles Schwab Bank.2 Schwab’s Cash Features are further described in Schwab’s Cash Features Disclosure Statement for Individual Investors, which you will receive at account opening. Please contact Schwab for current information on interest rates and money market yields.
2. Funds deposited at Schwab Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 (when aggregated with all other deposits held by you in the same capacity at Schwab Bank). For more information, please see the Cash Features Disclosure Statement for Individual Investors.
You can select from several of the American Beacon Funds - Institutional Class. The available funds can be found on Schwab.com.
Use the lookup functionality provided in your Schwab online account. Under Research, select Mutual Funds and then search for the name of the institutional fund.
Log in to your account at Schwab.com or call 888-847-1269. When you place a trade online for American Beacon institutional shares, it will appear as though you will be charged a fee and the minimums still apply. However, no transaction fees or minimums will be charged.3 To proceed with the trade, select either option under Transaction Fee, then click Review Order. On the next page you will see that no fees have been charged.
Note: There is a $25 charge to place an order over the phone with a Schwab representative.
3. Schwab's short-term redemption fee of $49.95 may be charged on redemptions of funds held for 90 days or less. Funds are also subject to management fees and expenses.
While the Institutional Share Purchase Program does not provide any investment advice, your Schwab account will give you access to Schwab’s entire suite of advice offerings and products. Any fees or charges that may result from your participation in offerings outside of the Institutional Share Purchase Program are at your discretion and obligation.
No. American Beacon only provides you with preferred access to the institutional share class of American Beacon Funds. For other investments, American Beacon employees will receive a discount on all trading activities in their Schwab accounts.
Yes, you can use all services that Schwab offers for the Schwab One brokerage account. Please note that certain fees and related expenses may be applicable. Additionally, you will need to abide by American Beacon's Compliance procedures for personal trading activites.
Yes, there will probably be some fees for placing trades outside of American Beacon Fund shares, depending on what you purchase or sell. However, because you are an American Beacon employee these fees will be discounted.
It is not a qualified plan. If you plan to move assets from a qualified plan, please contact your tax advisor.
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.
Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.
Schwab's short-term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource® service (and certain other funds with no transaction fees) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short-term trading.
Trades in no-load mutual funds available through the Mutual Fund OneSource service (including Schwab Funds), as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds.
Charles Schwab & Co., Inc., member SIPC, receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services.
Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value
Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.
©2018 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. Unauthorized access is prohibited. Usage will be monitored. (1118-8KBM) (11/18)