Three Schwab Funds Recognized by Lipper for Best-in-Class Long-Term
Schwab California Tax-Free Bond Fund Earns its Fifth Win; Schwab Hedged Equity
Fund and Laudus Growth Investors U.S. Large Cap Growth Fund Take Top Honors
SAN FRANCISCO -- April 23, 2013
Charles Schwab Investment Management, Inc. (CSIM) announced today that three
of its mutual funds received accolades from Lipper as best-in-class over the
last 10 years.
For the fifth year in a row, the Schwab California Tax-Free Bond Fund (SWCAX)
took top honors as Best Fund over 10 years out of 15 funds in the California
Intermediate Municipal Debt Funds category. The Schwab Hedged Equity Fund
(SWHEX) was named Best Fund over 10 Years for “Long/Short Equity Funds,” out
of 14 funds in this category. Lipper also recognized the Laudus Growth
Investors U.S. Large Cap Growth Fund (LGILX) as the Best Fund over 10 Years
out of 144 funds in the “Large-Cap Growth Funds” category.
“We’re so pleased that Lipper selected these funds as outperformers,” said
Marie Chandoha, president and chief executive officer of CSIM. “Schwab
advocates investing for the long-term, so it’s rewarding to offer investors
products recognized for their consistent long-term performance.”
Schwab California Tax-Free Bond Fund
Launched in 1992, the Schwab California Tax-Free Bond Fund (SWCAX) seeks high
current income exempt from federal and California personal income tax that is
consistent with capital preservation. The fund invests primarily in
investment-grade municipal securities from California issuers. In addition,
the fund does not currently intend to invest in securities whose interest is
subject to the federal alternative minimum tax (AMT). The fund had $463
million in assets under management as of December 31, 2012.
*Ken Salinger joined CSIM in March 2008 and is Managing Director and Head
of Tax-Exempt Strategies, leading the team responsible for daily trading
and management of Schwab’s national and state-specific tax-free bond funds
and municipal money market funds. He has been responsible for the
day-to-day co-management of the fund since 2008.
*John Shelton is a portfolio manager with CSIM and has day-to-day
responsibility for the management of Schwab’s municipal bond funds. John
joined CSIM in 2000. He has been responsible for the day-to-day
co-management of the fund since 2001.
Schwab Hedged Equity Fund
The Schwab Hedged Equity Fund (SWHEX) seeks long-term capital appreciation
over market cycles with lower volatility than the broad equity market. The
fund establishes long and short equity positions in U.S. companies, typically
by purchasing or selling short stocks of companies with market capitalizations
of $1 billion or more at the time the stock is purchased or sold short. The
fund has a portfolio optimization process to assist with portfolio
construction, and uses Schwab Equity Ratings to aid in stock selection.
Launched in 2002, the fund had $191 million in assets under management as of
December 31, 2012.
*Jonas Svallin is Managing Director and Head of Disciplined Active Equity
Strategies. Since 2012 he has been responsible for the day-to-day
co-management of the fund.
*Paul Alan Davis is Managing Director and Senior Portfolio Manager, and
responsible for the day-to-day co-management of the fund since 2006.
*Wei Li, Ph.D., is a Portfolio Manager responsible for the day-to-day
co-management of the fund since 2013.
Laudus Growth Investors U.S. Large Cap Growth Fund
The Laudus Growth Investors U.S. Large Cap Growth Fund (LGILX) seeks long-term
capital appreciation. It seeks to invest in companies that possess dominant
market positions and franchises, a major technological edge, or unique
competitive advantage that gives them the potential to generate high returns
on above-average sales and profit growth. The fund combines fundamental
research and quantitative analysis to evaluate companies based on their
relative performance prospects in a variety of scenarios to identify those for
which the magnitude or duration of future growth are underappreciated by the
market. The fund, which launched in 1997, had $1.47 billion in assets under
management as of December 31, 2012.
*Paul A. Graham, Managing Director of UBS Global AM, has been a
co-portfolio manager of the fund since November 12, 2012
*Peter J. Bye, Executive Director of UBS Global AM, has been a co-portfolio
manager of the fund since November 12, 2012
The Lipper Fund Awards recognize funds that have excelled in delivering
consistently strong risk-adjusted performance, relative to peers. Lipper, a
Thomson Reuters company, uses the Lipper Leader for Consistent Return
methodology to designate award-winning funds in most individual
classifications for the three-, five-, and ten-year periods.
About The Lipper Fund Awards
The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence,
a global family of awards that celebrate exceptional performance throughout
the professional investment community. The Thomson Reuters Awards for
Excellence recognize the world's top funds, fund management firms, sell-side
firms, research analysts, and investor relations teams. The Thomson Reuters
Awards for Excellence also include the Extel Survey Awards, the StarMine
Analyst Awards, and the StarMine Broker Rankings. For more information, please
contact email@example.com or visit
About Charles Schwab Investment Management
Founded in 1989, Charles Schwab Investment Management, Inc. (CSIM), a
subsidiary of The Charles Schwab Corporation, is one of the nation's largest
asset management companies with $219.3 billion in assets under management as
of December 31, 2012. It is among the country's largest money market fund
managers and is the third-largest provider of retail index funds. In addition
to managing Schwab’s proprietary funds, CSIM provides oversight for the
sub-advised Laudus Fund family. CSIM currently manages 76 mutual funds in
addition to two separate account model portfolios, and 15 ETFs.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial
services, with more than 300 offices and 8.9 million active brokerage
accounts, 1.6 million corporate retirement plan participants, 888,000 banking
accounts, and $2.08 trillion in client assets as of March 31, 2013.The
companywas ranked ’Highest in Investor Satisfaction With Self-Directed
Services’ in the 2012 US Self-Directed Investor Satisfaction Study^SM from J.D
Power and Associates.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,
www.sipc.org), 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; compliance and trade monitoring solutions; referrals to independent
fee-based investment advisors; and custodial, operational and trading support
for independent, fee-based investment advisors through its Advisor Services
division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an
Equal Housing Lender), provides trust and custody services, banking and
lending services and products. Investment products offered by Charles Schwab &
Co., Inc. are not insured by the FDIC, are not deposits or obligations of
Charles Schwab Bank, and are subject to investment risk, including the
possible loss of principal invested. More information is available at
www.schwab.com and www.aboutschwab.com.
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
Past performance does not guarantee future results.
Investment value will fluctuate, and shares, when redeemed, may be worth more
or less than their original cost.
Hedged Equity Fund’s long positions can decline in value at the same time the
value of the short stock increases, thereby increasing the potential for loss.
The potential loss associated with short positions is much greater than the
original value of the securities sold. The use of borrowing and short sales
may cause the fund to have higher expenses than those of equity funds that do
not use such techniques.
Investment income from some municipal bond funds may be subject to certain
state and local taxes and the federal alternative minimum tax. Capital gains
are not exempt from federal income tax.
The Laudus Group® of Funds includes the Laudus Mondrian and Laudus Growth
Investors Funds, which are part of the Laudus Trust and Laudus Institutional
Trust and distributed by ALPS Distributors, Inc.; and the Laudus MarketMasters
Funds®, which are part of the Schwab Capital Trust and distributed by Charles
Schwab & Co., Inc. ALPS Distributors, Inc. and Charles Schwab Investment
Management, Inc. are unaffiliated entities.
Charles Schwab Investment Management, Inc. ("CSIM"), the investment advisor
for Schwab's proprietary funds, and Charles Schwab & Co., Inc. ("Schwab"), the
distributor for Schwab Funds, are separate but affiliated companies and
subsidiaries of The Charles Schwab Corporation. (0413-2580)
Erin Montgomery, 212-403-9271
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