Schwab Small-Cap, International index funds adopt new benchmarks

By Toni Weeks

San Diego, Dec. 29 - The board of trustees of the Schwab Capital Trust implemented changes to the investment policies of the Schwab Small-Cap Index Fund and the Schwab International Index Fund, according to a 497 filing with the Securities and Exchange Commission. The changes were approved at a meeting held Sept. 14 and took effect recently.

Effective Dec. 14, the Schwab Small-Cap Index Fund must invest at least 80% of its net assets in stocks that are included in the Russell 2000 index. Previously, the fund used the Schwab Small-Cap Index as its benchmark.

Effective Dec. 20, the Schwab International Index Fund must invest at least 80% of its net assets in stocks that are included in the MSCI EAFE index. The fund previously used the Schwab International Index as its benchmark.

At the same meeting, the board approved a reduction in the contractual expense limitation of the investment adviser on the net annual operating expenses of the Schwab Small-Cap Index Fund, effective Nov. 1. The expense limit was reduced to 0.17% from 0.19%.

The funds' investment adviser is San Francisco-based Charles Schwab Investment Management Inc.

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