Subject: Mutual Fund Performance Summary for June 2006 (RothIRA4135-1685)

From: Schwab Alerts <[email-masked]>
Date: Thu, 20 Jul 2006 19:49:57 -0600

| | | |
| |

June 2006

Client Log In | Unsubscribe

Please Note:

Your alerts have a new look and a new "Schwab Client Feedback" feature at the bottom of the alert. This new feature allows you to easily send us your comments and suggestions about this alert product. These changes are part of our renewed commitment to our clients.

Performance Review and Perspectives

June continued to be a challenging investment environment as most domestic and international fund categories posted small losses following the sharp corrections that we saw in May. Here's a look at some of June's highlights:

Value outperforms growth
Continued investor worries about the economic landscape, inflation, and additional rate increases put a drag on most diversified domestic equity categories. Growth categories lagged their value peers, with Small Growth (-1.03%) and Mid-Cap Growth (-0.37%) posting the weakest results. Large Value (0.18%) and Mid-Cap value (0.11%) were the only categories to post positive returns. Fixed income funds were mixed as a general flight to quality boosted Government bonds while higher risk categories lost some ground. Turbulence in the equity markets boosted Long Government (0.64%), Ultrashort Bond (0.30%), and Short-Term Bond (0.16%), while the World Bond (-0.74%) and High Yield Bond (-0.49%) categories fell.

With the exception of the Latin America Stock category which rose 3.32%, all foreign fund categories posted losses but to a lesser extent than the large sell-offs seen in May, with Foreign Small/Mid Growth (-2.77%) faring the worst.

Specialty-Real Estate gained 4.79% on news of additional REIT privatization and rising rents charged by certain REITs. The defensive Specialty-Utilities category also gained 1.91% as investors sought refuge from market volatility.

Monetary slowdown continues (as of 7/14/06)
For some time, we've been warning investors about heightened risks to domestic, developed international and emerging markets. Because the monetary headwinds remain intense, we continue to recommend investors use strength in the market to slightly underweight both domestic and international equities while overweighting cash. Although further strength over the near term remains a possibility given recent bearish sentiment and over-sold technical conditions, other indicators are less supportive for a sustainable rally to emerge.

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®

Want a concise list of Schwab's top mutual fund picks? >

If the process of selecting a new mutual fund seems daunting, turn to Schwab's Mutual Fund OneSource Select List™. Schwab's experts have applied rigorous criteria to create this quarterly list of pre-screened, no-load, no-transaction-fee funds.

View the OneSource Select List.

Learn more about how funds make the OneSource Select List.

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

Data as of 06/30/2006

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

-1.72

7.22

10.54

2.09

7.28

N/A

Standard&Poor's 500 TR

0.01

8.63

11.22

2.49

8.32

5.61

FMAGX - Fidelity Magellan
(05/02/1963)

-0.74

9.61

9.40

0.86

7.32

18.42

Morningstar Category: Specialty-Health

Category Average

-2.38

3.17

7.85

1.44

9.15

N/A

Standard&Poor's 500 TR

0.01

8.63

11.22

2.49

8.32

5.61

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

0.88

11.78

9.14

-2.33

10.05

13.05

Morningstar Category: Mid-Cap Growth

Category Average

-2.16

10.84

14.15

2.97

7.55

N/A

Russell 2000

0.64

14.58

18.70

8.50

9.05

13.22

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

-6.00

5.14

12.22

1.49

7.54

11.91

Morningstar Category: Foreign Large Blend

Category Average

-2.55

24.50

21.40

7.83

6.24

N/A

MSCI EAFE NDTR_D

-0.01

26.56

23.94

10.02

6.39

10.59

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

-2.66

23.36

21.85

9.97

10.66

10.89

Performance data not available for the following funds:
SHSTX

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

Click on a fund's symbol to see more information.
To modify the mutual funds in your Watch Lists, please click here.

Schwab Client Feedback

Was this email useful to you?

If you have specific questions about your account, for your protection please log in to schwab.com and select "customer service," or call 1-800-435-4000.

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.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing.

To unsubscribe or modify your Email Alert customization options, log in to Schwab Alerts.
To read about Schwab's privacy policy go to www.schwab.com/privacy.

Charles Schwab & Co., Inc. ("Schwab") is a member of NASD/SIPC and certain regional exchanges. Schwab is a subsidiary of The Charles Schwab Corporation and trades under the symbol "SCHW".

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. ©2006 Charles Schwab & Co., Inc.

Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. (2006-2211)

By Morningstar, Inc. All rights reserved.
All other information and data contained herein is the proprietary information of Morningstar, Inc., and may not be copied or redistributed for any purpose and may only be used for non-commercial, personal purposes. Morningstar information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from use of the information. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933.

Distribution by Merkle|Quris