Fund Description

The fund maintains a defined asset allocation across stocks, bonds and cash, targeting about 80% equity, 16% fixed income and 4% cash and cash equivalents (including money market funds). Equity is allocated among U.S. large-cap (43%), U.S. small-cap (7%), developed international large-cap (17%), real estate (4%), developed international small-cap (3%) and emerging markets (5%). It invests mainly in affiliated Schwab index funds and ETFs that track market indices, may use sampling, and underlying funds may use derivatives and securities lending. The portfolio managers monitor the fund's holdings and cash flow and manage them as needed in order to maintain the fund's target allocation, allowing modest deviations to reduce transaction costs. The fund may also invest directly in securities, and for temporary defensive or liquidity purposes may hold up to 100% in cash and short-term instruments.