Schwab Expands Target-Date Collective Trust Fund Offering

Charles Schwab introduced the Schwab Indexed Retirement Trust Funds to the Charles Schwab Trust Company offering of target-date collective trust funds for retirement plans.

The Schwab Indexed Retirement Trust Funds are managed and distributed by CSTC, and use primarily passively-managed investment strategies (index funds) in building their asset allocation models, according to a press release. The funds are tied to target retirement dates in five-year increments from 2010 to 2050.

The investments in the fund portfolios are allocated among Russell 1000 Value, Russell 1000 Growth, Russell 2000, MSCI EAFE, and Lehman Aggregate Bond index-based collective trust funds offered by Mellon Capital Management, and the stable value strategy managed by CSTC, the release said. The funds have no minimum balance requirement and have an all-in operating expense ratio of 0.18%.

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