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Schwab Launches Inflation Protected Fund

Charles Schwab Investment Management, a subsidiary of Charles Schwab & Company, Inc., announced yesterday the launch of a new fixed-income fund called the Schwab Inflation Protected Fund.
As the name implies, the new fund is designed to help investors keep ahead of the negative impact price increases have on their buying power. Schwab says the new fund is specifically designed for investors at or near retirement. The fund anticipates having ~80% of the assets invested in U.S. Government Treasury Inflation-Protected Securities (TIPS), 20% invested in other foreign government and corporate inflation-protected bonds, and the remaining 10% invested in high-yield securities. The minimum investment is $2,500, except for retirement, education, and custodial accounts where it is $1,000. Charles Schwab & Co., Inc. has been quietly becoming one of the nation's largest mutual fund companies and is the third largest provider of retail index funds. Investors should consult with their Advisors and read the prospectus before considering an investment in the fund.
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