Schwab Yield Plus Select losses may be recoverable
The Schwab YieldPlus Select Fund (SWYSX), which is one of the largest bond funds for Charles Schwab Corp., has lost 80% of its assets over the past year. Many investors placed their money in this fund as an alternative to a money market, and they have suffered substantial losses as a result of the funds inappropriate concentration on mortgage-backed securites. Some of these investment losses may be recoverable through a Schwab YieldPlus Select lawsuit.
In May 2007, the Schwab Yield Plus Select Fund had assets of $13 billion, and as of March 20, 2008, the assets had declined to only $2.5 billion. Through the end of March, 2008, the net asset value per share has dropped more than 18% year to date, and Morning star now ranks the fund last among ultra-short-term bond funds. As a result of unreasonable investment approaches by fund managers, who placed more than half of the assets in mortgage-backed securities, the Schwab YieldPlus Select fund lost considerably more than other competitive funds, which have lost on average only about 1.3%.
Investors have been pulling their money out of the Yield Plus Select fund, as they are now realizing that Schwab made misleading and untrue statements about the nature of the bond fund investment.
Many investors were led to believe that they were purchasing a relatively low risk alternative to a money market account, which are considered the safest possible investments besides bank accounts and government debt. Schwab literature was provided to investors which indicated:
“The [YieldPlus] funds provide higher yields on your cash with only marginally higher risk [and therefore] could be a smart alternative.”
SCHWAB YIELDPLUS SELECT LAWSUITS
The financial fraud lawyers at Saiontz, Kirk & Miles, P.A. are reviewing potential Schwab Yield Plus Select lawsuits as a result of omissions and misleading statements made by the brokerage, which prevented investors from fully understanding the nature of what they were investing in. For individuals who lost over $10,000.00 off of their initial investment, they may be entitled to recover a portion of their losses through a securities fraud arbitration lawsuit. To determine if you, a friend or family member may be entitled to compensation, request a free consultation and claim evaluation.
