Sabatini and Associates, LLC Attorneys at Law :: Newington :: Hartford :: Connecticut

Investors in Charles Schwab’s ultra-short bond funds the Schwab YieldPlus Fund Investor Shares (Symbol: SWYPX) and the Schwab YieldPlus Fund - Select Shares (Symbol: SWYSX) may be entitled to recover their investment losses. Charles Schwab marketed its YieldPlus funds as safe investments that would provide “higher potential returns than money market funds, with only marginally higher risk.” Charles Schwab also represented that its YieldPlus funds were designed to provide “high current income with minimal changes in share price,” and that this objective would be accomplished by investing in a “well-diversified” portfolio of bonds with durations of one year or less. But the YieldPlus mutual funds have decreased in value by 25% during the first quarter of 2008. That performance is far worse than the performance of money market funds and other ultra-short bond mutual funds during the same period. The funds were over-concentrated in risky mortgage-backed securities that contained subprime mortgage loans. The Funds also invested heavily in collateralized debt obligations. If you lost money in a Schwab YieldPlus fund please contact us for a free case evaluation.