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Schwab
Funds®
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Summary
Prospectus April 30,
2011
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Schwab Value
Advantage Money
Fund®
Ticker Symbols: Select Shares®: SWBXX Institutional Shares: SWAXX
Before you invest, you may want to review the funds
prospectus, which contains more information about the fund and
its risks. You can find the funds prospectus, Statement of
Additional Information (SAI) and other information about the
fund online at www.schwabfunds.com/prospectus. You can
also obtain this information at no cost by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com. If you purchase or hold
fund shares through a financial intermediary, the funds
prospectus, SAI, and other information about the fund are
available from your financial intermediary.
The funds prospectus and SAI, both dated April 30,
2011, include a more detailed discussion of fund investment
policies and the risks associated with various fund investments.
The prospectus and SAI are incorporated by reference into the
summary prospectus, making them legally a part of the summary
prospectus.
Investment
objective
The funds goal is to seek the highest current income
consistent with stability of capital and liquidity.
Fund fees
and expenses
This table describes the fees and expenses you may pay if you
buy and hold Select
Shares®
or Institutional Shares of the fund.
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Select
Shares®
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Institutional
Shares
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Shareholder
fees
(fees
paid directly from your investment)
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None
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None
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Annual
fund operating expenses
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(expenses
that you pay each year as a % of the value of your investment)
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Management fees
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0.30
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0.30
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Distribution (12b-1) fees
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None
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None
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Other expenses
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0.16
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0.05
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Total annual fund operating expenses
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0.46
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0.35
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Less expense reduction
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(0.11)
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(0.11)
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Total annual fund operating expenses after expense
reduction1
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0.35
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0.24
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1
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The investment
adviser and its affiliates have agreed to limit the total annual
fund operating expenses (excluding interest, taxes and certain
non-routine expenses) of the Select Shares and Institutional
Shares to 0.35% and 0.24%, respectively, through 4/29/13. This
agreement may only be amended or terminated with the approval of
the funds Board of Trustees. Non-routine
expenses that are not subject to the foregoing contractual
operating expense limitation include, but are not limited to,
any reimbursement payments made by a share class to the
investment adviser
and/or its
affiliates of fund fees and expenses that were previously waived
or reimbursed by the investment adviser
and/or its
affiliates in order to maintain a positive net yield for the
share class.
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Example
This example is intended to help you compare the cost of
investing in each share class with the cost of investing in
other mutual funds. The example assumes that you invest $10,000
in a share class for the time periods indicated and then redeem
all of your shares at the end of those time periods. The example
also assumes that your investment has a 5% return each year and
that each share class operating expenses through
4/29/13 are
the same as those shown above as total annual fund operating
expenses after expense reduction and for all subsequent periods
are the same as those shown above as total annual fund operating
expenses. The expenses would be the same whether you stayed in
the fund or sold your shares at the end of each period. Your
actual costs may be higher or lower.
Expenses on
a $10,000 investment
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1 year
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3 years
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5 years
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10 years
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Select
Shares®
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$
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36
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$
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125
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$
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235
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$
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557
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Institutional Shares
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$
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25
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$
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90
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$
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174
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$
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421
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Principal
investment strategies
To pursue its goal, the fund invests in high-quality
short-term money market investments issued by U.S. and
foreign issuers, such as:
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commercial paper, including asset-backed commercial paper
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promissory notes
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certificates of deposit and time deposits
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variable- and floating-rate debt securities
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bank notes and bankers acceptances
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repurchase agreements
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obligations that are issued by the U.S. government, its
agencies or instrumentalities, including obligations that are
not guaranteed by the U.S. Treasury, such as those issued
by Fannie Mae and Freddie Mac (U.S. government securities)
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All of these investments will be denominated in
U.S. dollars, including those that are issued by foreign
issuers. Obligations that are issued by private issuers that are
guaranteed as to principal or interest by the
U.S. government, its agencies or instrumentalities are
considered U.S. government securities under the rules that
govern money market funds.
In choosing securities, the funds manager seeks to
maximize current income within the limits of the funds
investment objective and credit, maturity and diversification
policies. Some of these policies may be stricter than the
federal regulations that apply to all money funds. Certain of
the funds securities are subject to credit or liquidity
enhancements, which are designed to provide incremental levels
of creditworthiness or liquidity.
The investment advisers credit research department
analyzes and monitors the securities that the fund owns or is
considering
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buying. The manager may adjust the funds holdings or its
average maturity based on actual or anticipated changes in
interest rates or credit quality. To preserve its
investors capital, the fund seeks to maintain a stable
$1.00 share price.
Principal
risks
The fund is subject to risks, any of which could cause an
investor to lose money. The funds principal risks include:
Investment Risk. Your investment in the fund is not
a bank deposit and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
Although the fund seeks to preserve the value of your investment
at $1.00 per share, it is possible to lose money by investing in
the fund.
Interest Rate Risk. Interest rates rise and fall
over time. As with any investment whose yield reflects current
interest rates, the funds yield will change over time.
During periods when interest rates are low, the funds
yield (and total return) also will be low. In addition, to the
extent a share class makes any reimbursement payments to the
investment adviser and/or its affiliates, the share classs
yield would be lower.
Credit Risk. The fund is subject to the risk that a
decline in the credit quality of a portfolio investment could
cause the fund to lose money or underperform. The fund could
lose money if the issuer of a portfolio investment fails to make
timely principal or interest payments or if a guarantor,
liquidity provider or counterparty of a portfolio investment
fails to honor its obligations. Even though the funds
investments in repurchase agreements are collateralized at all
times, there is some risk to the fund if the other party should
default on its obligations and the fund is delayed or prevented
from recovering or disposing of the collateral. The negative
perceptions of the ability of an issuer, guarantor, liquidity
provider or counterparty to make payments or otherwise honor its
obligations, as applicable, could also cause the price of that
investment to decline. The credit quality of the funds
portfolio holdings can change rapidly in certain market
environments and any downgrade or default on the part of a
single portfolio investment could cause the funds share
price or yield to fall.
Many of the U.S. government securities that the fund
invests in are not backed by the full faith and credit of the
United States government, which means they are neither issued
nor guaranteed by the U.S. Treasury. Although maintained in
conservatorship by the Federal Housing Finance Agency since
September 2008, Fannie Mae (FNMA) and Freddie Mac (FHLMC)
maintain only limited lines of credit with the
U.S. Treasury. The Federal Home Loan Banks (FHLB) also only
maintain limited access to credit lines from the
U.S. Treasury. Other securities, such as obligations issued
by the Federal Farm Credit Banks Funding Corporation (FFCB), are
supported solely by the credit of the issuer. There can be no
assurance that the U.S. government will provide financial
support to securities of its agencies and instrumentalities if
it is not obligated to do so under law. Also, any government
guarantees on securities the fund owns do not extend to shares
of the fund itself.
Foreign Investment Risk. The funds investments
in securities of foreign issuers or securities with credit or
liquidity enhancements provided by foreign entities may involve
certain risks that are greater than those associated with
investments in securities of U.S. issuers or securities
with credit or liquidity enhancements provided by
U.S. entities. These include risks of adverse changes in
foreign economic, political, regulatory and other conditions;
differing accounting, auditing, financial reporting and legal
standards and practices; differing securities market structures;
and higher transaction costs. In addition, sovereign risk, or
the risk that a government may become unwilling or unable to
meet its loan obligations or guarantees, could increase the
credit risk of financial institutions connected to that
particular country.
Management Risk. Any actively managed mutual fund is
subject to the risk that its investment adviser will make poor
security selections. The funds investment adviser applies
its own investment techniques and risk analyses in making
investment decisions for the fund, but there can be no guarantee
that they will produce the desired results. The investment
advisers maturity decisions will also affect the
funds yield, and in unusual circumstances potentially
could affect its share price. To the extent that the investment
adviser anticipates interest rate trends imprecisely, the
funds yield at times could lag those of other money market
funds.
Liquidity Risk. Liquidity risk exists when
particular investments are difficult to purchase or sell. The
market for certain investments may become illiquid due to
specific adverse changes in the conditions of a particular
issuer or under adverse market or economic conditions
independent of the issuer. The funds investments in
illiquid securities may reduce the returns of the fund because
it may be unable to sell the illiquid securities at an
advantageous time or price. Further, transactions in illiquid
securities may entail transaction costs that are higher than
those for transactions in liquid securities.
Redemption Risk. The fund may experience
periods of heavy redemptions that could cause the fund to
liquidate its assets at inopportune times or at a loss or
depressed value, particularly during periods of declining or
illiquid markets. Redemptions by a few large investors in the
fund may have a significant adverse effect on the funds
ability to maintain a stable $1.00 share price. In the
event any money market fund fails to maintain a stable net asset
value, other money market funds, including the fund, could face
a market-wide risk of increased redemption pressures,
potentially jeopardizing the stability of their $1.00 share
prices.
Money Market Risk. The fund is not designed to offer
capital appreciation. In exchange for their emphasis on
stability and liquidity, money market investments may offer
lower long-term performance than stock or bond investments.
Performance
The bar chart below shows how the funds Institutional
Shares investment results have varied from year to year, and the
following table shows the funds Select Shares and
Institutional Shares average annual total returns for various
periods. This information provides some indication of the risks
of investing in the fund. All figures assume distributions were
reinvested. Keep in mind that future performance may differ from
past performance. For current performance information, please
see www.schwab.com/moneyfunds or call toll-free
1-800-435-4000
for a current
seven-day
yield.
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Summary Prospectus April 30, 2011
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2 of 4
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Schwab Value Advantage Money
Fund®
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Annual
total returns
(%) as of
12/31
Institutional
Shares
Best
quarter: 1.31% Q3 2007 Worst
quarter: 0.02% Q2 2010
Average
annual total returns
(%) as of
12/31/10
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Since
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1 year
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5 years
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inception
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Select Shares
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0.03
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2.57
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2.251
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Institutional Shares
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0.11
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2.67
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2.282
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1
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Inception: 2/28/03.
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2
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Inception: 7/1/02.
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Investment
adviser
Charles Schwab Investment Management, Inc.
Purchase
and sale of fund shares
The fund is open for business each day that the New York Stock
Exchange is open except when the following federal holidays are
observed: Columbus Day and Veterans Day.
When you place orders to purchase, exchange or redeem fund
shares through Charles Schwab & Co., Inc. (Schwab) or
another financial intermediary, you must follow Schwabs or
the other financial intermediarys transaction procedures.
Eligible Investors (as determined by the fund and which
generally are limited to institutional investors) may invest
directly in the fund by placing purchase, exchange and
redemption orders through the funds transfer agent.
Eligible Investors must contact the transfer agent by phone or
in writing to obtain an account application. Eligible Investors
may contact the transfer agent:
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by telephone at
1-800-407-0256; or
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by mail in writing at Boston Financial Data Services, Attn:
Schwab Funds, P.O. Box 8283, Boston, MA
02266-8323.
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Set forth below are the investment minimums for the funds
Select Shares and Institutional Shares. These minimums may be
waived for certain investors or in the funds sole
discretion.
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Minimum
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Minimum initial
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additional
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Minimum
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investment
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investment
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balance
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Select
Shares®
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$
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1,000,000
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$
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1
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$
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1,000,000
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Institutional Shares
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$
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3,000,000
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$
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1
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$
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3,000,000
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Tax
information
Distributions received from the fund will generally be taxable
as ordinary income or capital gains, unless you are investing
through an IRA, 401(k) or other tax-advantaged account.
Payments
to financial intermediaries
If you purchase shares of the fund through a broker-dealer or
other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund
shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other
financial intermediary and your salesperson to recommend the
fund over another investment. Ask your salesperson or visit you
financial intermediarys website for more information.
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Summary Prospectus April 30, 2011
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3 of 4
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Schwab Value Advantage Money
Fund®
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Schwab
Funds®
REG54667FLD-04
Schwab
Value Advantage Money
Fund®;
Ticker Symbols: Select Shares®: SWBXX Institutional Shares: SWAXX
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Summary Prospectus April 30, 2011
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4 of 4
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Schwab Value Advantage Money
Fund®
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