An introduction to Schwab Money Funds
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As one of the nation's largest and most experienced money market fund asset managers, Schwab Asset Management is often recognized as an industry leader.
Here's what you should know.
The Schwab Money Funds are managed with three primary objectives in mind; stability of principal, liquidity, and a competitive rate of return.
Our funds always seek the highest yield that is consistent with capital preservation and the funds' ability to meet redemptions.
Money market funds adhere to regulatory guidelines surrounding which securities are money market fund eligible.
They mandate that money market funds pay close attention to credit quality, diversification, maturity, liquidity, and transparency.
To ensure the Schwab Money Funds adhere to these guidelines, in addition to our own strict internal requirements, we take a team-based, research-driven approach to security selection and portfolio management with a focus on risk mitigation.
Schwab Asset Management employs distinct credit research and portfolio management teams.
Our credit research team determines the creditworthiness of each issuer and approves limits with stringent investment guidelines in mind.
Our portfolio management and investment risk teams perform in-depth analysis on various factors, like interest rates, Fed policy, and liquidity.
These teams also work to maintain a stable net asset value by managing and analyzing credit and sector diversification, peer group exposure, weighted average maturity contributions, and finally, frequent stress testing.
So, what differentiates Schwab Asset Management from other money market fund managers?
First, as one of the largest managers of money market funds, we maintain economies of scale as well as access to securities supply.
Second, we intentionally separate our portfolio management and credit research teams. Why? Well, imagine the potential conflict of interest which could occur if portfolio managers were charged with the responsibility of approving the securities for the funds they also manage.
Third, Schwab Money Funds are only available to Charles Schwab clients; we do not sell our money market funds "off-platform." This allows us to better understand our clients and their liquidity needs.
Fourth and finally, Schwab Money Funds are competitively priced compared to industry averages. Given our disciplined and dynamic investment process, deeply experienced investment teams, and focus on thoughtful risk management, we believe our funds represent a compelling value.
We invite you to review the Schwab Money Funds lineup. We provide a broad choice of prime, government, and municipal money market funds with low investment minimums and no transaction fees.
Interested in learning more about the Schwab Money Funds or Schwab Asset Management? Reach out to your financial professional who can work with you to achieve your financial goals.
In the current complex market environment, you need a partner that you and your clients can trust. At Schwab Asset Management, we seek to earn that trust through a conversative and disciplined approach to money market fund management. Learn more about our process and what sets us apart in this short video.