The Mutual Fund OneSource List is made up of 170 funds used by Charles Schwab’s direct investors as well as advisors, who also have access to five other mutual fund lists and separately manged account lists.
The list is updated quarterly and the changes below are from the third quarter of the year to the fourth.
Changes to the list are based on quantitative analysis, using Schwab’s internal manager rating system.
When a fund is removed from the list, it does not mean that Schwab’s investment advisory team deem it to be ‘a sell,’ but instead means it is no longer one of their top picks for new investment.
To find out more about how funds are picked for the list, read our profile with gatekeeper Michael Iachini.
|Schwab Mutual Fund OneSource Select List fourth quarter reshuffle|
|LARGE-CAP U.S. STOCK|
|FMI Large Cap||Lord Abbett Calibrated Dividend Growth|
|MID AND SMALL-CAP U.S. STOCK FUNDS|
|Ave Maria Growth||AMG Managers Fairpointe Mid Cap|
|Boston Trust Small Cap||Commerce MidCap Growth|
|CRM Small Cap Value Inv||Janus Henderson Small Cap Value|
|Eaton Vance Tx-Mgd Small-Cap||Sentinel Small Company|
|TIAA-CREF Small-Cap Equity Retail|
|Tributary Small Company Instl|
|INTERNATIONAL STOCK FUNDS|
|AllianzGI NFJ Emerging Markets Value||BlackRock Global Dividend Inv|
|American Funds Intl Gr and Inc||Franklin Mutual International|
|American Funds New Perspective||Harding Loevner International Eq Inv|
|Janus Henderson Global Equity Income T||Hartford Schroders Intl Multi-Cp Val|
|Matthews Asia Innovators Investor||JPMorgan International Rsrch Enh Eq|
|Pear Tree Polaris Fgn Val Sm Cap Ord||Matthews Asia Growth Investor|
|T. Rowe Price International Stock||RBC Emerging Markets Equity|
|T. Rowe Price Latin America|
|T. Rowe Price New Asia|
|Cohen & Steers International Realty||BlackRock Health Sciences Opps Inv|
|ICON Energy||Gabelli Utilities AAA|
|TAXABLE BOND FUNDS|
|BBH Limited Duration||BMO TCH Corporate Income|
|DoubleLine Low Dur Emerg Mkts Fxd Inc||Goldman Sachs Short Dur Govt|
|JPMorgan Income||Lord Abbett Bond-Debenture|
|Pimco Investment Grade Corp Bd||Payden Limited Maturity|
|RBC BlueBay Emerging Market Corp Bd|
|TAX FREE BOND FUNDS|
|T. Rowe Price Tax-Free Shrt-Interm||Northern Short-Intermediate Tax-Exempt|
|ADDITIONAL FUND CATEGORIES|
|Northern Global Tactical Asset Allocation||First Eagle Global|
|Schwab® Monthly Income Fund — Moderate Payout||Destra Flaherty & Crumrine Pref & Inc|
|Schwab Target 2060 Fund||MainStay Convertible|
|Schwab Target 2035 Fund|
|Schwab Target 2040 Fund|
|Schwab Target 2045 Fund|
|Schwab Target 2050 Fund|
Big and small
The $76.2 billion American Funds New Perspective fund is the single largest fund added to the list.
It is ranked fifth out of 23 Global Large-Cap Growth funds tracked by Citywire for three-year total returns to the end of September. Over that time it returned 34.5% compared to the average Global Large-Cap Growth fund, which was up 28.2%.
Capital Group also saw its $13.7 billion American Funds International Growth and Income fund added to the list, after it was taken off the previous quarter, taking its total to 19 funds on the list.
The only other group to have two funds added to the list in the quarter was T. Rowe Price, which also saw two funds removed, keeping its total at 24.
The T. Rowe funds added were the $15.8 billion T. Rowe Price International Stock fund and the $2 billion T. Rowe Price Tax-Free Short-Intermediate fund.
It was not just big names like T. Rowe and Capital Group who won spaces on the list.
The $454 million CRM Small Cap Value fund, managed by Citywire A-rated Brian Harvey, was added, replacing the $2.83 billion Janus Henderson Small Cap Value fund managed by Justin Tugman, Craig Kempler and Citywire A-rated Robert Perkins.
At the end of September, the CRM Small Cap Value fund had a 6.4% weighting to healthcare, which is one of the sectors Schwab believes to outperform, compared to Janus fund's 1.9% allocation.
In a note from the updated list, the firm backed healthcare, financials and technology equity sectors to outperform and said real estate, utilities and telecom were still underperforming.
The team remains neutral on consumer staples and discretionary sectors as well as energy, industrials and materials.
Within emerging markets, the team added funds with higher allocation to outperforming markets such as China, Brazil and Chile.
Brazil equities were up 23% for the third quarter with China up 14.7% for the same period.
The AllianzGI Emerging Markets Value fund has a higher position in both China and Brazil than the RBC Emerging Markets Equity fund.
In China, the AllianzGI Emerging Markets fund had a 28.28% allocation and in Brazil it had a 7.8% position compared to the RBC Emerging Markets Equity fund which had a 14.6% and 6.9% allocation, respectively.
‘In Latin America, Brazil and Chile shined for quarter three and Mexico and Columbia paled in comparison,’ Schwab’s team said in the update.
‘China and Thailand were quarter three winners in Asian emerging markets, far surpassing Pakistan and Indonesia.’
Ten funds were only on the list for one quarter before being removed.
- AMG Managers Fairpointe Mid Cap
- Franklin Mutual International
- Hartford Schroders International Multi-Cap Value
- Matthews Asia Growth
- T. Rowe Price Latin America
- T. Rowe Price New Asia
- Gabelli Utilities
- Goldman Sachs Short Duration Government
- Destra Flaherty & Crumrine Preferred & Income
- Schwab Target 2045