Upgrades

…Under its partnership with Rob Arnott of Research Affiliates, Schwab Funds introduced on January 31 two new fundamental index funds, the Schwab Fundamental Emerging Markets and the Schwab Fundamental International Small-Mid Company Index Fund. In April 2007, Schwab introduced three other fundamental index funds, which Jeff Mortimer, CIO of Charles Schwab Investment Management, said had captured $1 billion in assets since then, 60% of which came from advisors.

…Franklin Templeton Investments introduced the Templeton International Bond Fund for U.S. investors, designed to capitalize on fixed-income opportunities outside the U.S. The fund seeks to generate current income with capital appreciation and growth of income by investing in foreign fixed-income markets. Investment decisions will ultimately be driven by valuations, meaning that the fund will invest in countries where it is believed bonds are underpriced and where country fundamentals offer potential for price appreciation.