Charles Schwab Investment Management Inc. expanded its mutual fund lineup for retirees by introducing a group of three funds designed to help people plan for income needs.
The Schwab Monthly Income Funds have different annual payout targets. Each of the funds is actively managed with portfolios of fixed-income and equity mutual fund investments.
The Charles Schwab Corp. unit, which started offering the new funds Tuesday, has launched other retirement-oriented funds, including target-date and income products, in the past few years.
The new Monthly Income Funds differ from other income products in that they offer target payouts to give investors an indication of projected annual income.
To deliver the target payout, portfolio managers monitor the markets and adjust the mix of investments to keep the funds in line with their objectives of both income and capital growth, Schwab said.
