Charles Schwab Investment Management:
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Schwab Government Money Funds do not plan to adopt a policy to
implement Liquidity Fees or Redemption Gates.
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Retail investors will continue to have access to Schwab Prime,
Municipal and Government money market funds with a net asset value
(NAV) that is designed to be constant (CNAV).1
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We are committed to providing capital preservation and liquidity
products that will meet the needs of both retail and institutional
investors.
As a leader in money market fund reform, Charles Schwab Investment
Management is committed to providing all investors with as much clarity
as possible on the impact and implications of the money market fund
reform issued by the Securities and Exchange Commission in July, 2014.
We have spent significant time reviewing the amendments and listening to
our investors' preferences. We want to assure our retail and
institutional shareholders that we will continue to offer a variety of
investment options and a robust product lineup that includes Prime,
Municipal and Government money market funds. Specifically, retail
investors will continue to have access to a lineup of Schwab Prime,
Municipal and Government money market funds with a CNAV.2 For
those no longer eligible for our CNAV Prime and Municipal money market
funds under the new money market fund reform amendments, we plan to make
floating NAV money funds available. At this time, our Board of Trustees
has elected not to implement liquidity fees or redemption gates on
Schwab Government money market funds.
About Charles Schwab Investment Management, Inc.
Founded in 1989, Charles Schwab Investment Management, Inc. (CSIM), a
subsidiary of The Charles Schwab Corporation, is one of the nation's
largest asset management companies with more than $269.1B in assets
under management as of 3/31/15*. It is among the country's largest money
market fund managers and is the third-largest provider of retail index
funds. In addition to managing Schwab’s proprietary funds, CSIM provides
oversight for the sub-advised Laudus Fund family. CSIM currently manages
74 mutual funds in addition to two separate account model portfolios,
and 21 exchange-traded funds.
More information is available at www.csimfunds.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com.
Follow us on Twitter, Facebook, YouTube, and LinkedIn.
Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE:SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC, www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at www.schwab.com
and www.aboutschwab.com.
DISCLOSURES:
Investors should consider carefully information contained in the
prospectus, including investment objectives, risks, charges, and
expenses. You can request a prospectus by calling 800-435-4000.
Please read the prospectus carefully before investing.
An investment in a money market fund is neither insured nor
guaranteed by the FDIC or any other government agency. Yields
will fluctuate, and, although the fund seeks to preserve the value of
your investment at $1 per share, it is possible to lose money by
investing in the fund. Compared to the total return, the
seven-day yield more closely reflects the current earnings of the fund.
Charles Schwab Investment Management, Inc. ("CSIM"), the investment
advisor for Schwab's proprietary funds, and Charles Schwab & Co.,
Inc.("Schwab"), the distributor for Schwab Funds, are separate but
affiliated companies and subsidiaries of The Charles Schwab Corporation.
* Number of Funds and Assets Under Management (AUM) is as of 3/31/2015.
CSIM managed approximately $258.0B on a discretionary basis and
approximately $11.1B on a non-discretionary basis.
1 A fund’s share price is its net asset value per share, or
NAV, which is the fund’s net assets divided by the number of its shares
outstanding. Under the new amendments, Retail Prime and Municipal money
market funds, as well as Government money market funds will continue to
be permitted to transact at a constant net asset value (CNAV) of $1.00.
Note that CNAV is a construct, not a guarantee. Please see disclosures
below for more information.
2 Subject to any Sweep Fund eligibility requirements imposed
by Charles Schwab & Co.
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