Schwab YieldPlus Select shares continue to drop as investors pursue lawsuits

By Carl Saiontz
Posted June 4, 2008

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The value of Schwab YieldPlus Select Fund Shares fell another 4% over the last month, and the bond fund has tumbled nearly 35% from where it was at the beginning of last year. For an investment that was promoted as an alternative to cash or money markets, designed to provide income without substantial changes in share price, the Schwab YieldPlus decline has had devastating consequences for investors. For those who have lost over $10,000, the lawyers at Saiontz & Kirk, P.A. are providing free consultations to review the potential for a Schwab lawsuit.

Schwab YieldPlus Select is an ultra-short bond fund which was hit heavily by the collapse of the subprime mortgage market. In an effort to obtain returns that exceeded other conservative bonds in the same class, fund managers invested a substantial portion of the assets in the risky mortgage backed securities and failed to diversify. They also failed to disclose to investors the extent of the risk they were exposed to.

For the first six months of 2007, the price for Schwab YieldPlus Select shares was steady, between 9.69 and 9.67 per share, which is what investors expected. However, with the subprime mortgage crisis which surfaced towards the end of last summer, share prices began to decline. From the end of 2007 through early 2008, the fund saw devastating double digit losses which came as a shock to most investors who thought their money was in a conservative investment.

SCHWAB YIELDPLUS SELECT DROP JANUARY 2007 THROUGH MAY 2008

SCHWAB YIELDPLUS LAWSUITS

Investors who have lost money as a result of the fall of Schwab YieldPlus shares, they may be entitled to a financial recovery to recoup losses. Schwab YieldPlus class action lawsuits as well as individual arbitration claims are being pursued throughout the United States.

The Schwab YieldPlus lawyers at Saiontz & Kirk, P.A. are reviewing potential lawsuits for individuals who have lost over $10,000 off of their initial investment into the YieldPlus bond fund. To have a potential claim reviewed and evaluated by an attorney, request a free consultation.