Schwab Launches Ginnie Fund

Charles Schwab & Co. Inc., San Francisco, has announced the introduction of a mutual fund that invests primarily in Ginnie Mae mortgage-backed securities.The Schwab GNMA Fund will generally invest at least 80% of its assets in Ginnie Mae MBS, and the remainder will be invested in other fixed-income securities or held in cash, the company said. "Our decision to introduce this fund is in response to client demand for investments that provide strong income and credit safety," said Randy Merk, president of Charles Schwab Investment Management. The fund's subscription period will continue through Feb. 28, and its first day of operation will be March 3. During the subscription period, Schwab clients can invest in the fund at an offering price of $10 per share. The fund is offered in two classes. Investor Shares have an initial investment minimum of $2,500, with subsequent minimums of $500. Select Shares have an initial minimum of $50,000, with subsequent minimums of $1,000.