Products January 23, 2013

Schwab Adds to Target-Date Lineup

Charles Schwab Investment Management Inc. has added to its line of target-date funds (TDFs) with 2045, 2050 and 2055 retail offerings.
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Charles Schwab Bank has added two funds to its collective trust fund lineup for eligible retirement plans—the Schwab Managed Retirement Trust Fund 2055 (SMRT 2055) and Schwab Indexed Retirement Trust Fund 2055 (SIRT 2055)—which offer target-date portfolios in a collective trust vehicle, diversified across traditional and nontraditional asset classes. The SMRT Funds use a combination of active and passive investments, and the SIRT Funds use primarily passive investment strategies.

These additions complete Schwab’s suite of retail and institutional target-date funds. The Schwab Target 2045, 2050 and 2055 Funds are retail mutual funds that offer shareholders a diversified portfolio of active and passive management, as well as a combination of proprietary and externally managed strategies, and become more conservative over time.

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“These new funds are designed for young people who want an affordable, accessible solution for a more distant retirement,” said Omar Aguilar, senior vice president and chief investment officer of equities for Charles Schwab Investment Management. “Whether you’re investing in the funds directly or through an employer’s retirement plan, they deliver broad asset allocation and ongoing professional investment management.”

The Schwab Managed Retirement Trust Funds are available in four unit classes with all-in operating expense ratios starting at 0.45%. The Schwab Indexed Retirement Trust Funds are available in a single unit class with no investment minimums and an all-in operating expense ratio of 0.18%. Plan sponsors and their advisers may learn more about the funds at www.schwabbankfunds.com. 

The Schwab Target Funds have net operating expense ratios ranging from 0.55% to 0.84% and an account minimum of $100.  For more information about the funds, visit www.schwab.com/target.

Deals & People January 23, 2013

BMO Retirement Adds DCIO Manager

Ben Jones was appointed manager, defined contribution investment-only (DCIO) by BMO Retirement Services at BMO Global Asset Management.
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In this newly created position, Jones reports to Matt Smith, head of sales and strategy for the retirement services division. Jones is responsible for overseeing BMO’s investment product sales in defined contribution markets across the country. He is based in Park City, Utah.

Before joining BMO, Jones was director of defined contribution at Russell Investments, where he was responsible for managing all aspects of its intermediary retirement plan distribution across the U.S.

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A Chartered Retirement Plan Specialist (CRPS), Jones is a member of the DCIO Forum and the Defined Contribution Institutional Investment Association (DCIIA). He was nominated as one of 401kWire’s 100 Most Influential People in Defined Contribution in 2010 and 2011.

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