Schwab Adds Ultra to Muni MMFs
A Form N-1A Registration for Schwab Municipal Money Funds indicates that they're preparing to launch "Ultra" share class version of Schwab AMT Tax-Free Money Fund, Schwab California Municipal Money Fund and Schwab New York Municipal Money Fund. (Schwab Municipal Money Fund already has an "UltraShares" class, SWOXX.) These classes, which will have $1 million minimums like other existing UltraShares classes, will launch on April 29, 2020. These funds all have existing "InvestorShares" classes: Schwab AMT Tax-Free Money Fund InvestorShares (SWWXX), Schwab Municipal Money Fund InvestorShares (SWTXX), Schwab California Municipal Money Fund InvestorShares (SWKXX), and Schwab New York Municipal Money Fund InvestorShares (SWYXX). The filing says, "The Ultra Shares for each of Schwab AMT Tax-Free Money Fund, Schwab California Municipal Money Fund and Schwab New York Municipal Money Fund is newly organized and therefore has not yet had any operations as of the date of this prospectus. Certain information reflects financial results for a single fund share. 'Total return' shows the percentage that an investor in a fund would have earned or lost during a given period, assuming all distributions were reinvested." For more on Schwab's latest money fund liquidations, see our Feb. 20 Crane Data News, "Franklin, Legg Mason Deal Signals More Consolidation; More Liquidations," and watch for coverage in our pending March issue of Money Fund Intelligence, which ships on Friday.
