Schwab YieldPlus Mutual Funds
Did you purchase ultra-short bond funds Schwab YieldPlus (SWYPX) and Schwab YieldPlus Select (SWYSX)? These funds were marketed as conservative and an alternative to money-market funds to retirees and others.
These funds, however, were not the well-diversified, safe funds that Schwab was alleged to have represented to its customers. Rather, the funds were heavily invested in risky subprime mortgage-backed securities (MBS) and risky collateral debt obligations (CDOs).
The Schwab YieldPlus Fund has lost more than 40% of its value, making it one of the worst-performing ultra-short bond funds.
Sonn and Erez PLC is representing investors in arbitration to sue Schwab for misrepresenting the safetu and holdings YieldPlus funds, and the failure to disclose material facts about significant levels of risky subprime investments contained in the funds.
There are claims that Kimon Daifotis, the lead portfolio manager of the YieldPlus Fund, sold 2.9 million shares of the fund between Jan. 31, 2008, and April 1, 2008, on behalf of other Schwab mutual funds. At the same time, Schwab's other portfolio managers, as well as the company's corporate Web site, were encouraging investors to hold on to their YieldPlus shares.
If you believe that you may have been misled as to the risk of your Schwab YieldPlus fund and wish to learn more about our investigation, please contact us toll free at 1-866-372-8311 or fill out the “contact us” form.
If you have information or wish to discuss your rights as an investor, contact us at 1-866-372-8311 or contact Jeff Sonn, Esq. at jsonn@sonnerez.com or Jeff Erez at jerez@sonnerez.com, or Stefan Apotheker at sapotheker@sonnerez.com.
