Subject: Mutual Fund Performance Summary for March 2005 (RothIRA4135-1685)

From: Schwab Alerts <[email-masked]>
Date: Thu, 28 Apr 2005 20:47:08 -0600 (MDT)

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| My Mutual Funds Monthly Performance Summary Alert | March 2005

Performance Review and Perspectives
All major equity and fixed-income categories experienced negative returns both during March and for the first quarter. Among the broad domestic-equity categories, small-cap stocks suffered most in March, with the Small Blend category returning -2.4% versus a decline of 1.8% for the Large Blend category. Overseas, a gloomier economic outlook in both Europe and Japan along with higher oil prices and the prospect of higher U.S. interest rates resulted in Foreign Large Blend funds slipping 2.7%. Diversified Emerging Markets funds, which were previously the bright spot of the international categories, fell 6.7% during the month. High-quality bond and muni fund categories, although still negative for the quarter, fared better than the riskier high-yield bond category, which returned -2.7% in March.

As of March 31, our recommendations include overweighting domestic stocks and cash up to 5% and underweighting bonds up to 10%. Despite continued high energy costs and declining profit growth, we believe that favorable sentiment indicators and attractive valuations amid relatively low inflation and interest rates continue to support this view. The period of relative strength in small-cap stocks appears to be maturing and valuation differentials are beginning to favor large-caps. We recently eliminated our overweight recommendation of emerging market equities, and now recommend investors neutral-weight the overall international asset class.

For Schwab's current market perspectives and the view over the next six to 12 months, please visit the "Market Insight" section of schwab.com.

Prepared by the Schwab Center for Investment Research

Schwab asks leading fund managers for their views:

1. | What is your outlook for growth investing in the coming year? What trends do you see developing for this style?
2. | What factors should investors look at when it comes to choosing a growth fund?
3. | How do you define a growth stock? What are the key factors or measures you look at when evaluating growth stocks?
4. | How have the "growth" and "value" style distinctions changed over the past several years?

· ABN AMRO Answers
· Janus Answers
· Jensen Answers

| | | | | | | | | | | | | |

Data as of 03/31/2005

Actual Return

Average Annual Total Return

Symbol - Fund Name
(Inception Date)

1 Mo

1 Yr

3 Yr

5 Yr

10 Yr

Since Inception

Morningstar Category: Large Blend

Category Average

-3.71

4.07

1.68

-3.03

9.17

N/A

Standard & Poor's 500

-1.77

6.69

2.74

-3.16

10.79

7.20

FMAGX - Fidelity Magellan
(05/02/1963)

-1.99

3.14

0.43

-5.30

8.97

18.71

Morningstar Category: Specialty-Health

Category Average

-4.67

-4.05

0.36

2.31

11.87

N/A

Standard & Poor's 500

-1.77

6.69

2.74

-3.16

10.79

7.20

FBIOX - Fidelity Select Biotechnology
(12/16/1985)

-1.31

-14.49

-3.57

-8.06

10.93

12.60

Morningstar Category: Mid-Cap Growth

Category Average

-4.02

3.25

2.72

-7.05

9.10

N/A

Russell 2000

-2.86

5.41

8.05

4.01

10.43

13.12

FRSGX - Franklin Small-Mid Cap Growth A
(02/14/1992)

-8.91

0.32

0.75

-8.91

10.08

11.84

Morningstar Category: Foreign Large Blend

Category Average

-4.80

10.62

8.22

-3.50

6.25

N/A

MSCI EAFE NDTR_D

-2.51

15.06

11.47

-1.14

5.41

11.12

UMBWX - UMB Scout WorldWide
(09/14/1993)

-4.23

14.79

10.47

1.57

10.39

9.99

Performance data not available for the following funds:
SHSTX

Total returns are adjusted for sales charges and assume reinvestment of dividends and capital gains.

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Performance data quoted is past performance and is no guarantee of future results. Total return assumes reinvestment of all dividends and capital gains. Current performance may be lower or higher. Visit Schwab.com for month-end performance information. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

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S&P500® Index: Includes common stocks of the largest publicly traded U.S. companies. (S&P is a registered trademark of McGraw-Hill Co., Inc.)

Russell 2000® Index: The Russell 2000 Index is designed to measure the performance of the small-cap market. It consists of the 2,000 smallest companies in the Russell 3000® Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

Morgan Stanley Capital International EAFE® Index: An index of foreign stock prices of the Europe, Australasia, and Far East exchanges. Total return is calculated in US dollars.

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

Investment risks: Note that small cap funds, healthcare funds, and technology funds may be subject to greater volatility than those in other asset categories with a greater degree of diversification. International investments are subject to additional risks such as currency fluctuation, political instability and the potential for illiquid markets. Some funds may have achieved high returns in the past, which may have been a result of investments in IPOs and the funds may not be able to maintain such returns.

The monthly Performance Review was compiled from sources believed to be reliable; however, Charles Schwab & Co., Inc. makes no representations or guarantees that the information is accurate, complete or timely. Additionally, Schwab makes no warranties to you regarding any results from using the information. Charles Schwab & Co., Inc. member NASD/SIPC & certain regional exchanges. The Schwab Center for Investment Research ("SCIR") is a part of Charles Schwab & Co., Inc. The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. Schwab does not assess the suitability or the potential value of any particular investment. The Charles Schwab Corporation and its officers, directors, employees, consultants and/or members of their families may have a position in, and may from time to time, purchase or sell any of the mentioned or related securities including derivatives in such securities. Additionally, Schwab (or persons related thereto) or consultants may perform or solicit investment banking or other business from any company mentioned in this report. ©2005 Charles Schwab & Co., Inc.

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