Contractual Expires Mutual Fund
Fund companies may, in their sole discretion, add, revise or revoke spending limits, but documents and disclosures must be provided. Capped funds and indices adhere to a maximum level of investment per component. This can allow for greater diversification and prevent a single stake from unduly affecting the fund`s performance. Past performance does not guarantee future performance. The value of the asset fluctuates and the shares, when taken back, may be worth more or less than the initial cost. If there was a cost exemption during the period, the net expense ratio was used to calculate the fund`s return. An expense limit is a limit on the operating costs incurred by a mutual fund. The spending limit is expressed as a percentage of the average net worth of the fund and represents a limit on the fees that can be charged to a shareholder. The Morningstar rating for funds or “star rating” is calculated for products under management (including mutual funds, variable annuity and variable life insurance sub-accounts, exchange funds, closed-end funds and segregated accounts) with at least three years of history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparison purposes.
It is calculated based on a Morningstar risk-adjusted return measure that takes into account the change in the monthly outperformance of a managed product, with a greater focus on downward fluctuations and rewarding consistent performance. The top 10% of products in each product category get 5 stars, the next 22.5% get 4 stars, the next 35% get 3 stars, the next 22.5% get 2 stars and the bottom 10% get 1 star. Morningstar`s overall rating for a managed product is derived from a weighted average of the performance measures associated with Morningstar rating metrics over three, five, and 10 years (if applicable). The weights are as follows: 100% three-year rating for 36- to 59-month total return, 60% five-year score/three-year 40% rating for 60- to 119-month total return and 50% over 10 years/five-year rating of 30%/three-year rating 20% for total return 120 months or more. While the 10-year global star rating formula seems to give the most weight to the 10-year period, the recent three-year period actually has the greatest impact, as it is included in all three evaluation periods. Morningstar Ratings does not take into account selling fees that may apply to certain third-party funds. Morningstar`s overall ratings are derived from a weighted average of the risk-adjusted return figures associated with Morningstar rating measures over 3, 5 and 10 years (if applicable). Free mutual fund transactions available through the OneSource Mutual Funds service (including SchwabFunds) as well as certain other funds are available without transaction fees. For each of these trading orders placed through a broker, there is a service fee of $25. Schwab reserves the right to change the funds provided by us without transaction fees and to reintroduce fees for all funds. Funds are also subject to management fees and expenses.
Changes in the spending limit affect a fund`s annual performance. Any increase in the spending cap could lead to lower returns, while reductions would help improve performance. The investment is aimed at long-term capital growth. The fund invests primarily in equity securities, primarily common and preferred shares, of U.S. companies with a market capitalization of at least $1 billion at the time of purchase, which, according to the subsite, presents above-average growth prospects. The stocks of the mid- and large-cap companies in the fund`s portfolio are those that the sub-advisor expects to maintain or generate above-average earnings growth. The Fund may invest up to 20% of its total assets in securities of foreign issuers, including issuers domiciled or operating in emerging markets. Waivers of expenses may be voluntary or contractual and may expire on a specific date or period.
Morningstar assumes that a waiver is voluntary, unless otherwise stated in the prospectus. Morningstar collects expiration dates of waivers when they are disclosed in the prospectus. .