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 Balanced Income Strategies do not represent any one account, but rather, the strategies’ composite performance. The fixed income allocation for the Balanced Income Strategies for accounts opened through the Schwab Connection platform are invested in ETFs to gain exposure to fixed income, rather than the historical use of individual bonds and ETFs for the strategies. The ThomasPartners Dividend Growth Strategy Composite is shown for illustrative purposes and is not available for direct investment. It does not represent the performance of any actual account. Estimated Annual Income is hypothetical. Hypothetical performance results have inherent limitations. No representation is made that a client will achieve results similar to those shown. Actual accounts managed by ThomasPartners Investment Management, a division of Charles Schwab Investment Advisory, Inc., may have had performance that differs from the performance shown in the chart during comparable periods due to the customization of advice to each client and other factors.

The Estimated Income Growth Since Inception charts assume that a client invested $1 million in the strategy on its inception date (Dividend Growth—3/31/2003, Balanced Income—5/31/2003). Each period’s estimated annual income shown is the product of that initial $1 million investment and the accumulation of capital appreciation plus reinvestment of all distributions of income since the inception date, multiplied by the annualized strategy 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 (DAATR) is obtained from Bloomberg for 2014-2017. 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 Investment Management 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.

Returns are expressed in U.S. dollars, presented net of fees and expenses, and include the reinvestment of all income. Prior to the addition of wrap accounts beginning 6/30/2005 for Dividend Growth, and 6/30/2008 for Balanced Income, 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, non-bundled fee accounts, and actual bundled fees paid for bundled fee accounts. Bundled fees, which include wrap fees and all-in fees, generally include management fees, trading costs, custodian fees, and other administrative expenses. 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 Blended Benchmark for the Balanced Income strategy is composed of 60% DAATR and 40% Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index. The S&P 500 TR/ Bar. US Intermediate is composed of 60% S&P 500 TR Index and 40% Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index. The yield for the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index is based on the 30-day SEC yield and is provided by Morningstar Direct. Indexes are unmanaged, do not incur fees or expenses, and cannot be invested in directly.

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, 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.