1. For important information about asset managers' use of broker-dealers other than Schwab to execute trades see schwab.com/assetmanagertradeawaypractices.

Past performance does not guarantee future results; the value of investments and the income derived from them can go down as well as up. Future returns and the achievement of stated goals are not guaranteed, and a loss of principal may occur.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio.

There are risks associated with any investment approach, and the ThomasPartners strategies have their own set of risks. First, there are the risks associated with investing in dividend-paying stocks, including but not limited to the risk that stocks in the strategy may reduce or stop paying dividends, affecting the strategy’s ability to generate income. Second, investor sentiment could cause dividend-paying equities to fall out of favor and decrease in price. Third, there are risks associated with investing in fixed income asset classes, including through the use of exchange-traded funds (ETFs) that include but are not limited to interest rate risk, credit risk, high yield risk, and government security risk. Please discuss these and other potential risks with your Financial Consultant prior to investing. 

Estimated Income Growth Since Inception Charts: 

The ThomasPartners Dividend Growth Strategy Composite as shown is not available for direct investment, and includes accounts from the ThomasPartners Dividend Growth K-1 Generating and Dividend Growth Non K-1 Generating versions of the strategy. Actual performance of these two versions of the strategy may vary from that of the overall Dividend Growth Strategy Composite. Returns are expressed in U.S. dollars. Returns are presented net of fees and include the reinvestment of all income. Prior to the addition of wrap accounts beginning 6/30/2005, net of fee performance was calculated using actual management fees. After wrap accounts were added, net of fee performance is calculated net of actual management fees for non-wrap accounts, and net of actual wrap fees for wrap accounts, which generally includes management fees and transaction costs for wrap accounts. Actual net of management fees on non-wrap accounts is presented as it represents a higher fee than offered by this specific wrap sponsor.

The Estimated Income Growth Since Inception–Dividend Growth chart assumes that a client invested $1 million in the ThomasPartners Dividend Growth Strategy on March 31, 2003 (the strategy's inception date). Each period’s estimated annual income shown is the product of that initial $1 million investment times the composite strategy's cumulative total return (net of actual fees) since the inception date, times the strategy’s annualized dividend yield. The strategy’s annualized yield at each listed measurement date is derived by annualizing the last dividend paid for each stock in the portfolio, and dividing that dollar amount by the price of the stock. The dividend yield for the S&P 500 Index and the NASDAQ U.S. Broad Dividend Achievers Total Return Index is obtained from Bloomberg for 2014–2018. The dividend yield is calculated using the gross dividend receipts over the prior year divided by the ending index value. This calculation is different than in prior years. The dividend yield for the DAATR was previously calculated by ThomasPartners based on the methodology recommended by the index provider. Please note that the strategy’s yield calculation methodology may result in a higher yield than the index yield methodology because generally the dividend paying equities in the strategy will increase their dividends over the course of a 12 month period, resulting in an annualized methodology based on the last dividend paid for each stock being higher than a methodology using the actual dividends paid over the trailing 12 months.

Indexes are unmanaged, do not include fees, and cannot be invested in directly. The S&P 500 Total Return Index and the NASDAQ U.S. Broad Dividend Achievers Index TR (DAATR) contain more securities positions than the ThomasPartners Dividend Growth strategy, as a result, the performance of the strategy at times may be more volatile than the performance of the Indexes. Please note that there are material differences between the indexes shown, including potential differences in holdings and in how each calculates dividend yield. ThomasPartners Portfolio Management Team believes that although the S&P 500 Total Return Index does not seek dividend income as a primary objective, it is a suitable proxy for the overall market.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

This information is for general purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions. 

Portfolio Management for the ThomasPartners Strategies is provided by ThomasPartners Investment Management ("ThomasPartners"), a division of Charles Schwab Investment Advisory, Inc. ("CSIA"). CSIA is a registered investment adviser and an affiliate of Charles Schwab & Co, Inc. ("Schwab"). Both CSIA and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation. ThomasPartners strategies are available through the Schwab Managed Account Connection® ("Connection") program. Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services.