The Schwab YieldPlus Fund® is designed with your income needs in mind. The fund’s objective is to seek high current income with minimal changes in share price. It’s appropriate for clients who plan to hold their investment for one year or longer, and who can tolerate changes in share price.
The YieldPlus Fund offers:
Monthly Income—The fund invests in a large, well-diversified portfolio of taxable bonds and distributes its income on the last day of each month.
Low Duration—To minimize changes in share price or NAV, the fund seeks to maintain an average portfolio duration of one-year or less. However, in volatile markets, the fund may experience a higher degree of NAV fluctuation. What is NAV?
Active Portfolio Management—The fund is actively managed by a seasoned team of taxable bond portfolio managers who are supported by a team of credit and market analysts. The team use a disciplined approach designed to deliver competitive total returns, which has become the foundation of managing Schwab’s other fixed income funds.
Where does the YieldPlus ultrashort bond fund fit in a well planned investment portfolio?
YieldPlus is an ultra-short bond fund and not a money market fund. The fund has a higher risk and volatility profile than a money market fund, and unlike a money fund, its share price will fluctuate.
To assist you in evaluating where an ultrashort bond fund might fit in your investment portfolio, the following chart illustrates the total return potential and risk profile of different categories of fixed income funds.
YieldPlus is a “total return” fund—the yearly return includes price appreciation or depreciation of principal plus dividends or interest received.
Total return performance as of 3/31/2008
Performance data quoted represents past performance and does not indicate future results. Visit Schwab.com for month-end performance information. Current performance may be lower or higher. Investment value will fluctuate, and shares when redeemed, may be worth more or less than original cost.
Schwab also offers two Schwab Tax-Free YieldPlus Funds. These investments can help you manage tax impact and your exposure to the alternative minimum tax (AMT).
PLEASE READ IMPORTANT DISCLOSURES BELOW
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.
YieldPlus is an ultra-short bond fund and not a money market fund and should not be considered as substitute for a money market fund. Unlike a money market fund, YieldPlus is not subject to maturity, credit or diversification limitations and may invest in instruments that a money fund may not purchase. The fund has a higher risk profile than a money market fund, and unlike a money fund, its share price does fluctuate.
Bond funds (like the YieldPlus Fund) are subject to increased loss of principal during periods of rising interest rates.
Though the fund seeks minimal fluctuations in share price, it is subject to the risk that a decline in the credit quality of a portfolio holding could cause the fund’s share price to decline, which is a common principal risk for taxable corporate bond funds.
Trades in no-load mutual funds available through Mutual Funds OneSource service (including SchwabFunds) 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. Funds are also subject to management fees and expenses.
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