Fund Description

The fund maintains a defined asset allocation targeting 100% in stock investments and, under normal circumstances, invests at least 80% of net assets (including borrowings for investment purposes) in stock investments, typically considerably higher. It seeks to stay near target allocations of about 50% U.S. large-cap, 9% U.S. small-cap, 23% developed international large-cap, 5% developed international small-cap, 8% emerging markets, and 5% real estate securities, with a small cash position for operations. It invests mainly in affiliated Schwab index funds and ETFs that track or replicate various stock market indices, may use sampling, and may use derivatives and securities lending. Managers monitor holdings and cash flows, allowing modest allocation deviations to reduce transaction costs. It may also invest directly in securities and, for temporary defensive or liquidity purposes, may hold up to 100% in cash and short-term instruments, which may prevent meeting its objective.