Originally called the OneSource Portfolios, the products were relabeled in April. Schwab's tremendous distribution power, combined with the marketing appeal of using funds available via the OneSource platform, helped ensure success right out of the gate. More recently, however, sales have slowed substantially for all of the funds. Backed by Goldman's impeccable reputation as an asset allocation manager, the products reaped significant assets in their first quarter of operations. This is more than most funds of funds captured all last year.
Funds of funds are an interesting development in long-term investment planning.
However, high costs and relative underperformance will limit the product's widespread success.