Charles Schwab Investment Management has launched three new target-date funds for the years 2045, 2050 and 2055.
In addition, Charles Schwab Bank has added two new funds to its lineup of collective trust funds for eligible retirement funds: the Schwab Managed Retirement Trust Fund 2055 and the Schwab Indexed Retirement Trust Fund 2055.
“These new funds are designed for young people who want an affordable, accessible solution for a more distant retirement,” says Omar Aguilar, senior vice president and chief investment officer of equities for Charles Schwab Investment Management.
The target funds are mutual funds designed primarily for retail investors, and offer shareholders both active and passive management, as well as a combination of proprietary and externally managed strategies, Schwab says.
The SMRT and SIRT funds, maintained by Charles Schwab Bank as trustee, offer target-date portfolios in a collective trust vehicle that are diversified across traditional and non-traditional asset classes, according to Schwab. The SMRT funds use a combination of active and passive investments while the SIRT funds use primarily passive investment strategies.
Last quarter, the SMRT Funds reached their 10-year anniversary and the SIRT Funds reached their four-year anniversary this month. The 10-year milestone for the original SMRT Funds stands as one of the longer track records for target date funds of any type, Schwab says.