MutualFundWire.com: Schwab Sweeps Fund Offshore
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Thursday, August 12, 1999

Schwab Sweeps Fund Offshore


Charles Schwab Corp. has moved into the offshore fund market with the formation of Charles Schwab Worldwide Funds, a Dublin-based investment company.

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    • The new company's first proprietary fund, U.S. Dollar Liquid Asset Fund, was launched on July 19 with about $137 million in assets. The fund, designed as a short-term cash investment pool, will be linked to customers' brokerage accounts. The sweep vehicle will automatically sweep any spare cash into the fund to earn income.

    "The fund was launched to our international clientele," Mo Shafroth, a Schwab spokesperson said. It is the first of what will become a range of new products.

    "A money market fund like this is more of a tool. It is the basic piece of any account. It is a product that should fit nicely in a portfolio," Shafroth said.

    Creating this fund is a signal of Schwab's commitment to expand its presence internationally. Schwab currently offers more than 200 mutual funds to its international customers. "We want to take products that are available domestically and offer them in local currencies to local markets," Shafroth said.

    Dublin was the city of choice because "of the great infrastructure, strong work force and technology," he said. The company was not given any Irish government grant aid or tax incentives.

    The fund will not be marketed in any special manner, Shafroth said, it will be an extension of products already offered through Schwab. SEI Investments will be providing fund performance tracking and monitoring, preparation of fund financial statements, completion of fund regulatory filings, coordination of annual fund audits and monitoring of fund investment restrictions, as administration services for Charles Schwab Worldwide Funds.


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