nvcsr

From the Chairman

Charles Schwab

Chairman

Dear Shareholder,

I want to thank you for entrusting us with your investments. I have always felt that money funds play an integral role in providing current income for cash between long-term investments. While no investment is completely risk-free, money funds are a good choice for investors who want to reduce volatility inherent in mostly stock portfolios.

Schwab Funds^® are managed by Charles Schwab Investment Management, Inc., one of the largest mutual fund managers in the U.S. Our portfolio managers share a passion for investment research and analysis. I am proud of their depth of experience, which reflects an average of 14 years in the investment industry. And, I am impressed by the commitment that our managers bring to the stewardship of the funds, for you, their shareholders.

Whether you’re in a higher tax bracket and could use the potential benefits of municipal money funds, or are looking for the added protection of U.S. Government securities, we offer a range of money funds with distinct investment strategies to meet your needs.

In closing, once again I want to thank you for choosing Schwab. We strive every day to warrant the trust you have placed in us.

Sincerely,

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

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund 1

From the President

Evelyn Dilsaver is President and CEO of Charles Schwab Investment Management, Inc. and of each of the funds covered in this report. She joined the firm in 1992 and has held a variety of executive positions at Schwab.

Dear Shareholder,

I am pleased to present the annual report for your Schwab money fund for the period ended December 31, 2006. During the report period, our money funds performed as designed, providing you with current income, as well as stability of capital and convenient access to your money.

Schwab offers a range of both taxable and tax-advantaged money funds with distinct investment strategies. We recently expanded our money fund product line with the launch of the Schwab AMT Tax-Free Money Fund^tm. This fund is designed for investors seeking income exempt from the alternative minimum tax.

I would also like to take this opportunity to remind you that our lower priced Schwab Value Advantage Investments^® shares are available with many of our money funds, including the Schwab AMT Tax-Free Money Fund. These shares are designed for investors who have larger balances and don’t need frequent access to their cash. They require a minimum initial investment of $25,000 ($15,000 for IRA and custodial accounts) but may offer higher yields than Sweep Investments.

In closing, I speak for all of us at Schwab when I say our goal is to give you the financial products, guidance and personal relationship you need to succeed.

Thank you for investing in Schwab Funds^®.

Sincerely,

Investment income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Capital gains are not exempt from federal income tax.

2 Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

The Investment Environment and the Funds

Kevin Shaughnessy, CFA, vice president and senior portfolio manager, is responsible for the management of the funds.

As the U.S. economy transitioned towards slower growth, the markets remained resilient and ended the one-year period with positive results, aided by higher corporate profitability, falling energy/commodity prices, and stable interest rates. Major equity indexes finished off the year with bullish returns, while Treasury debt prices drifted lower in response to a handful of strong U.S. economic reports towards the end of the period. Several key issues continued to resonate with investors, including Federal Reserve (the Fed) policy, slowing economic growth, inflation concerns, a sluggish real estate market, and fluctuating energy prices.

Though falling existing home sales and lower motor vehicle production did much to curtail growth in the eyes of the Fed, favorable labor market conditions, sustained increases in labor income, and lower energy prices continued to promote sustainable growth. The unemployment rate fell to a cyclical low of 4.5% in the fourth quarter of 2006, while consumer spending and business investment remained key contributors to GDP growth.

In its December 2006 statement, the Fed noted that the economy appeared to be growing at a more moderate rate as a result of prior rate increases, lagged effects of energy prices, which remained relatively high, despite recent declines, and a substantial cooling of the housing market. Consistent with the Fed’s report, GDP continued to decline, growing approximately 2% in the fourth quarter of 2006, down significantly relative to prior periods.

Energy prices remained a key issue in the markets over the past year. Unlike 2005, the past year saw a rather mild hurricane season. Prices declined throughout the report period due to a lack of hurricanes in the Gulf of Mexico, as well as an increase in U.S. fuel inventories. More recently, abundant heating inventories, warmer weather, and skepticism regarding OPEC’s proposed production cuts contributed to a slip in oil prices. Crude oil has declined roughly 28% since July 2006’s record $78.40 per barrel, yet still remained around the $55-$56 per barrel range at the end of the report period, as diminishing U.S. crude inventories and concern about global surplus lingered in investors’ minds.

The events of 2006 also had a significant impact on the housing market. Housing starts and existing home sales continued to decline throughout the period, even though by historical standards, they remained relatively strong. Although housing negatively affected GDP, rebounds in income, consumer spending, and investments helped to offset the impact. Concerns remained as to whether the Fed’s actions, and the immediate effects on the housing market, would spill over into the rest of the economy.

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund 3

The Investment Environment and the Funds continued

Inflation continued to be of concern to the Fed throughout 2006. Core inflation, which excludes the more volatile food and energy components, decelerated significantly, yet still remained above their comfort zone. In efforts to curb inflationary pressures, the Fed raised short-term interest rates four times during the report period. The August 2006 meeting marked a key point in the year as the Fed elected at that time to leave the target rate unchanged at 5.25%, where it remained as of the end of the report period. This was the first time they had not raised rates since the series of 17 consecutive rate hikes began in June 2004.

In this environment, yields on municipal variable-rate demand notes rose significantly as the yield of the Bond Market Association’s (BMA) Municipal Index rose by one percentage point during the report period. This change was driven by the increase in the Fed Funds Rate, as well as the heavy issuance of variable rate securities. While variable rate issuance remained strong, the supply of fixed rate municipal notes decreased approximately 14% for the year, due to the increase in tax revenue realized by state and local governments. Consequently, the funds were overweight variable rate notes, as they were attractive in price and provided value to the funds.

The Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund generally maintained a weighted average maturity (WAM) that was slightly shorter than the previous year in anticipation of rising interest rates. The funds added longer fixed rate maturities as yields rose at mid year, and avoided them when the yield curve inverted in the third quarter. The best performing security types for 2006 were floating rate notes and municipal commercial paper with maturities of three months or less.

During the report period, the Schwab AMT Tax-Free Money Fund’s (formerly Schwab Florida Municipal Money Fund) investment objective, investment strategy and name were changed due to the repeal of the Florida annual intangible personal property tax. Accordingly, the fund will no longer invest primarily in securities issued by the State of Florida and its municipalities. In addition, the fund does not currently intend to invest in municipal securities whose interest is subject to the Alternative Minimum Tax (AMT).

Nothing in this report represents a recommendation of a security by the investment adviser.

Manager views and portfolio holdings may have changed since the report date.

4 Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Performance and Fund Facts as of 12/31/06

Seven-Day Yields

The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.


									AMT Tax-Free
	Municipal Money Fund								Money Fund

			Value								Value
	Sweep		Advantage		Select		Institutional		Sweep		Advantage
	Shares		Shares		Shares		Shares		Shares		Shares
Ticker Symbol	SWXXX		SWTXX		SWLXX		SWOXX		SWFXX		SWWXX


Seven-Day Yield¹		3.23%		3.42%		3.52%		3.63%		3.19%		3.38%

Seven-Day Yield–No Waiver²		3.05%		3.28%		3.28%		3.28%		2.92%		3.15%

Seven-Day Effective Yield¹		3.28%		3.48%		3.58%		3.69%		3.24%		3.44%

Seven-Day Taxable-Equivalent Effective Yield^{1, 3}		5.05%		5.35%		5.51%		5.68%		4.98%		5.29%

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. To obtain more current performance information, please visit www.schwab.com/schwabfunds.

Statistics

Money funds must maintain a dollar-weighted average maturity of no longer than 90 days, and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).


	Municipal	AMT Tax-Free
	Money Fund	Money Fund


Weighted Average Maturity	33 days	31 days

Credit Quality of Holdings % of portfolio	100% Tier 1	100% Tier 1

Credit-Enhanced Securities % of portfolio	71%	61%

Minimum Initial Investment⁴
Sweep Investments^tm	*	*
Value Advantage Shares ($15,000 for IRA and custodial accounts)⁵	$25,000	$25,000
Select Shares	$1,000,000	n/a
Institutional Shares	$3,000,000	n/a

An investment in a money fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although money funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a money fund.

Portfolio holdings may have changed since the report date.

¹Fund expenses have been partially absorbed by CSIM and Schwab.

²Yield if fund expenses had not been partially absorbed by CSIM and Schwab.

³Taxable-equivalent effective yield assumes a 2006 maximum federal regular income tax rate of 35.00%. Investment income may be subject to the Alternative Minimum Tax.

⁴Please see prospectus for further detail and eligibility requirements.

⁵Municipal money funds are generally not appropriate investments for IRAs and other tax-deferred accounts. Please consult your tax advisor about your situation.

*Subject to the eligibility terms and conditions of your Schwab account agreement.

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund 5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six-months beginning July 1, 2006 and held through December 31, 2006.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 7/1/06		at 12/31/06		7/1/06-12/31/06



Schwab Municipal Money Fund^tm
Sweep Shares
Actual Return		0.64%	$	1,000	$	1,015.00	$	3.25
Hypothetical 5% Return		0.64%	$	1,000	$	1,021.98	$	3.26
Value Advantage Shares^tm
Actual Return		0.45%	$	1,000	$	1,016.00	$	2.29
Hypothetical 5% Return		0.45%	$	1,000	$	1,022.94	$	2.29
Select Shares^®
Actual Return		0.35%	$	1,000	$	1,016.50	$	1.78
Hypothetical 5% Return		0.35%	$	1,000	$	1,023.44	$	1.79
Institutional Shares
Actual Return		0.24%	$	1,000	$	1,017.00	$	1.22
Hypothetical 5% Return		0.24%	$	1,000	$	1,024.00	$	1.22


Schwab AMT Tax-Free Money Fund^tm
Sweep Shares
Actual Return		0.64%	$	1,000	$	1,014.90	$	3.25
Hypothetical 5% Return		0.64%	$	1,000	$	1,021.98	$	3.26
Value Advantage Shares
Actual Return		0.45%	$	1,000	$	1,004.90	$	0.69
Hypothetical 5% Return		0.45%	$	1,000	$	1,005.40	$	0.69

¹Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights.

²Expenses for each share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year. For the Schwab AMT Tax-Free Money Fund (Value Advantage Shares), expenses are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 56 days of the period (from 11/6/2006, commencement of operations through 12/31/2006), and divided by 365 days of the fiscal year.

6 Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Schwab Municipal Money Fund^tm

Financial Statements

Financial Highlights


	1/1/06–			1/1/05–			1/1/04–			1/1/03–			1/1/02–
Sweep Shares	12/31/06			12/31/05			12/31/04			12/31/03			12/31/02


Per-Share Data ($)

Net asset value at beginning of period		1.00			1.00			1.00			1.00			1.00

Income from investment operations:
Net investment income		0.03			0.02			0.01			(0.00	)¹		0.01

Less distributions:
Dividends from net investment income		(0.03	)		(0.02	)		(0.01	)		(0.00	)¹		(0.01	)

Net asset value at end of period		1.00			1.00			1.00			1.00			1.00

Total return (%)		2.83			1.79			0.60			0.46			0.91

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.64			0.65			0.66			0.66			0.66
Gross operating expenses		0.81			0.82			0.81			0.81			0.82
Net investment income		2.79			1.77			0.60			0.46			0.90
Net assets, end of period ($ x 1,000,000)		7,230			7,467			7,563			7,494			7,435


	1/1/06–			1/1/05–			1/1/04–			1/1/03–			1/1/02–
Value Advantage Shares	12/31/06			12/31/05			12/31/04			12/31/03			12/31/02


Per-Share Data ($)

Net asset value at beginning of period		1.00			1.00			1.00			1.00			1.00

Income from investment operations:
Net investment income		0.03			0.02			0.01			0.01			0.01

Less distributions:
Dividends from net investment income		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)

Net asset value at end of period		1.00			1.00			1.00			1.00			1.00

Total return (%)		3.03			2.00			0.81			0.68			1.12

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.45			0.45			0.45			0.45			0.45
Gross operating expenses		0.58			0.59			0.58			0.58			0.59
Net investment income		2.98			1.97			0.80			0.68			1.11
Net assets, end of period ($ x 1,000,000)		2,798			3,007			3,245			3,901			4,480

¹ Per-share amount was less than $0.01.

See financial notes 7

Schwab Municipal Money Fund

Financial Highlights continued

1/1/06–
1/1/05–
1/1/04–
6/2/03¹–

Select Shares 12/31/06 12/31/05 12/31/04 12/31/03

Per-Share Data ($)

Net asset value at beginning of period
1.00 1.00 1.00 1.00

Income from investment operations:

Net investment income
0.03 0.02 0.01 (0.00 )²

Less distributions:

Dividends from net investment income
(0.03 ) (0.02 ) (0.01 ) (0.00 )²

Net asset value at end of period
1.00 1.00 1.00 1.00

Total return (%)
3.13 2.10 0.92 0.39 ³

Ratios/Supplemental Data (%)

Ratios to average net assets:

Net operating expenses
0.35 0.35 0.35 0.35 ⁴

Gross operating expenses
0.58 0.59 0.58 0.58 ⁴

Net investment income
3.10 2.11 0.93 0.68 ⁴

Net assets, end of period ($ x 1,000,000)
1,244 966 727 474

1/1/06–
1/1/05–
1/1/04–
6/2/03¹–

Institutional Shares 12/31/06 12/31/05 12/31/04 12/31/03

Per-Share Data ($)

Net asset value at beginning of period
1.00 1.00 1.00 1.00

Income from investment operations:

Net investment income
0.03 0.02 0.01 (0.00 )²

Less distributions:

Dividends from net investment income
(0.03 ) (0.02 ) (0.01 ) (0.00 )²

Net asset value at end of period
1.00 1.00 1.00 1.00

Total return (%)
3.25 2.21 1.03 0.45 ³

Ratios/Supplemental Data (%)

Ratios to average net assets:

Net operating expenses
0.24 0.24 0.24 0.24 ⁴

Gross operating expenses
0.58 0.59 0.58 0.58 ⁴

Net investment income
3.21 2.20 1.08 0.80 ⁴

Net assets, end of period ($ x 1,000,000)
2,494 1,783 1,459 718

¹ Commencement of operations.

² Per-share amount was less than $0.01.

³ Not annualized.

⁴ Annualized.

8 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings as of December 31, 2006

This section shows all the securities in the fund’s portfolio and their value as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting Schwab’s website at www.schwab.com/schwabfunds.

For fixed rate obligations, the rate shown is the effective yield at the time of purchase. For variable-rate obligations, the rate shown is the rate as of the report date and the maturity date shown is the next interest rate change date.

Cost

Value

Holdings by Category

($ x 1,000)

.7%

Municipal Securities

13,720,247

.7%

Total Investments

13,720,247

.3%

Other Assets and Liabilities

45,999

100

.0%

Net Assets

13,766,246


Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)





Municipal Securities 99.7% of net assets




Alabama 1.4%


Alabama Municipal Funding Corp
Municipal Funding Notes Master Series 2006A 3.93%, 01/04/07 (a)(b)		20,835		20,835
Alabama Special Care Facility Finance Auth
RB (Ascension Health Senior Credit Group) Series 2006D 3.95%, 01/04/07 (a)(c)		8,000		8,000
Alabama State HFA
S/F Mortgage RB Series 2006H 4.07%, 01/03/07 (a)(b)		50,000		50,000
Bessemer Medical Clinic Board
RB Series 1990A 3.95%, 01/04/07 (a)(b)(c)(d)		10,865		10,865
Birmingham Public Educational Building Auth
Student Housing RB Series 2005A 3.93%, 01/04/07 (a)(b)		6,415		6,415
Daphne Utilities Board
Water, Gas and Sewer Refunding RB Series 2000 3.92%, 01/04/07 (a)(b)(c)		7,135		7,135
Decatur IDB
Exempt Facilities Refunding RB (Nucor Steel Decatur) Series 2003A 4.00%, 01/03/07 (a)		17,000		17,000
Hoover Board of Education
Capital Outlay TAN Series 2001 3.95%, 01/04/07 (a)(b)(c)(d)		14,810		14,810
Indian Springs Village
RB (Joseph Bruno Montessori Academy) Series 1999 4.09%, 01/03/07 (a)(b)		1,120		1,120
Jefferson Cnty Public Building Auth
Lease Revenue Warrants Series 2006 3.94%, 01/04/07 (a)(b)(c)		10,335		10,335
Mobile Board of Water and Sewer
RB Series 2006 3.94%, 01/04/07 (a)(b)(c)(d)		10,190		10,190
Montgomery Cnty Public Building Auth
Revenue Warrants (Montgomery Cnty Facilities) Series 2006 3.94%, 01/04/07 (a)(b)(c)(d)		5,395		5,395
Montgomery Downtown Redevelopment Auth
Bonds (Southern Poverty Law Center) Series 2000 4.09%, 01/04/07 (a)		15,000		15,000
Scottsboro
School Warrants Series 1997 3.93%, 01/04/07 (a)(b)		3,200		3,200
Stevenson IDB
Environmental Improvement RB (Mead Corp) Series 1997 3.97%, 01/03/07 (a)(b)		17,300		17,300
Tuscaloosa Cnty
IDRB (Knight Specialties) Series 1998 4.05%, 01/03/07 (a)(b)		830		830

				198,430


Alaska 0.5%


Alaska Housing Finance Corp
Collateralized Bonds (Veteran Mortgage Program) 2006 First Series A2 3.97%, 01/04/07 (a)(c)(d)		15,155		15,155
General Housing Purpose Bonds Series 2005B 3.94%, 01/04/07 (a)(b)(c)(d)		4,990		4,990
General Mortgage RB Series 2002A 3.95%, 01/04/07 (a)(c)(d)		5,995		5,995
Mortgage RB Series 1999A2 3.98%, 01/04/07 (a)(c)(d)		4,975		4,975
State Capital Project Bonds Series 2006A 3.94%, 01/04/07 (a)(b)(c)		27,930		27,930
Valdez
Marine Terminal Refunding RB (Exxon Pipeline Co) Series 1993B 3.90%, 01/02/07 (a)		3,900		3,900

				62,945


Arizona 1.3%


Arizona School Facilities Board
COP Series 2005A 2&3 3.95%, 01/04/07 (a)(b)(c)		9,875		9,875

See financial notes 9

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Arizona SD

TAN Financing Program COP Series 2006
3.59%, 07/30/07
59,000 59,299

Downtown Phoenix Hotel Corp

Subordinate RB Series 2005B
4.03%, 01/03/07 (a)(b)(c)(d)
21,360 21,360

Glendale IDA

CP Revenue Notes (Midwestern University Financing Program)
3.57%, 02/08/07 (b)
3,000 3,000

Maricopa Cnty IDA

M/F Mortgage Refunding RB (San Fernando Apts) Series 2004
3.97%, 01/04/07 (a)(b)
7,750 7,750

Phoenix Civic Improvement Corp

Subordinated Excise Tax RB (Airport Improvements) Series 1995
3.96%, 01/03/07 (a)(b)
1,000 1,000

Subordinated Excise Tax RB (Civic Expansion) Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
4,675 4,675

Subordinated Excise Tax RB Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
7,010 7,010

Wastewater System Revenue BAN Series 2006
3.52%, 02/06/07 (b)
12,000 12,000

3.52%, 03/06/07 (b)
10,000 10,000

Phoenix IDA

Government Office Lease Refunding RB (Capitol Mall LLC) Series 2005
3.97%, 01/04/07 (a)(b)(c)(d)
4,145 4,145

S/F Mortgage Draw-Down RB Series 2005A
3.98%, 01/04/07 (a)(c)(d)
9,250 9,250

Salt River Pima-Maricopa Indian Community

Bonds Series 2005
3.90%, 01/04/07 (a)(b)
4,800 4,800

Salt River Project Agricultural Improvement and Power District

Electric System RB Series 2006A
3.95%, 01/04/07 (a)(c)(d)
6,850 6,850

3.95%, 01/04/07 (a)(c)
2,060 2,060

Scottsdale IDA

Hospital RB (Scottsdale Healthcare) Series 2006G
3.95%, 01/04/07 (a)(b)(c)
3,000 3,000

Scottsdale Municipal Property Corp

Excise Tax Refunding RB Series 2006
3.97%, 01/04/07 (a)(c)
4,595 4,595

Tempe Excise Tax

Transit Excise Tax Revenue Obligations Series 2006
3.92%, 01/03/07 (a)(c)
3,000 3,000

Tempe IDA

RB (ASUF Brickyard) Series 2004A
3.90%, 01/04/07 (a)(b)
1,885 1,885

175,554

Arkansas 0.1%

Arkansas Development Finance Auth

IDRB (C&C Holding Co) Series 1998
4.00%, 01/04/07 (a)(b)
540 540

Independence Cnty

IDRB (Townsends) Series 1996
3.96%, 01/03/07 (a)(b)
9,000 9,000

University of Arkansas Board of Trustees

Various Facilities RB (UAMS Campus) Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
7,290 7,290

16,830

California 1.3%

Access Loans For Learning Student Loan Corp

Student Loan Program RB Series II-A2
3.96%, 01/04/07 (a)(b)
20,000 20,000

Student Loan Program RB Series II-A3
3.98%, 01/04/07 (a)(b)
23,700 23,700

Student Loan Program RB Sr Series II-A8
3.78%, 06/01/07 (a)(b)
33,300 33,300

California

Economic Recovery Bonds Series 2004C2
3.75%, 01/02/07 (a)(c)
10,810 10,810

Economic Recovery Bonds Series 2004C3
3.75%, 01/02/07 (a)(c)
30,875 30,875

GO Bonds Series 2004B2
3.75%, 01/02/07 (a)(b)
2,550 2,550

Various Purpose GO Bonds
3.91%, 01/04/07 (a)(b)(c)(d)
110 110

California HFA

Home Mortgage RB Series 2001J
3.86%, 01/02/07 (a)(b)(c)
11,530 11,530

Home Mortgage RB Series 2002B
4.00%, 01/02/07 (a)(b)(c)
19,000 19,000

Home Mortgage RB Series 2003M
3.90%, 01/02/07 (a)(c)
15,000 15,000

Irvine Updates Improvement Board Assessment District

Assessment District No. 97-17 Limited Obligation Improvement Bonds
3.80%, 01/02/07 (a)(b)
5,875 5,875

Orange Cnty Sanitation District

Refunding COP Series 2000A
3.83%, 01/02/07 (a)(c)
3,275 3,275

176,025

10 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Colorado 3.1%

Adams Cnty

Mortgage RB (Platte Valley Medical Center) Series 2005
3.95%, 01/04/07 (a)(b)(c)
14,250 14,250

Arapahoe Cnty

Refunding IDRB (Denver Jetcenter) Series 1997
3.80%, 01/02/07 (a)(b)
3,500 3,500

Arvada

Water Enterprise RB Series 2001
3.70%, 01/02/07 (a)(b)(c)
3,730 3,730

Broomfield Urban Renewal Auth

Tax Increment RB (Broomfield Event Center) Series 2005
3.93%, 01/04/07 (a)(b)
13,785 13,785

Centerra Metropolitan District No. 1

RB Series 2004
3.94%, 01/04/07 (a)(b)
10,000 10,000

Colorado

Education Loan Program TRAN Series 2006B
3.54%, 08/03/07
100,000 100,122

General Fund TRAN Series 2006A
3.78%, 06/27/07
125,000 125,425

Colorado HFA

Economic Development RB (Pemracs) Series 2000A
4.07%, 01/04/07 (a)(b)
2,570 2,570

Colorado Student Loan Auth

Sr Bonds Series 1990A
3.95%, 01/03/07 (a)(b)(c)
14,400 14,400

Sr Lien RB Series 1999A2
3.95%, 01/03/07 (a)(b)(c)
3,400 3,400

Dawson Ridge Metropolitan District No. 1

Limited Tax Refunding Bonds Series 1992A
3.98%, 01/04/07 (a)(c)(d)
10,870 10,870

Denver City and Cnty

Airport System RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
37,535 37,535

Airport System Refunding RB Series 2000B
4.05%, 01/03/07 (a)(b)(c)
14,900 14,900

GO Bonds (Justice System Facilities and Zoo) Series 2005
3.95%, 01/04/07 (a)(c)(d)
9,315 9,315

Denver Convention Center Hotel Auth

Sr Refunding RB (Convention Center Hotel) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
6,895 6,895

Denver Department of Aviation

Airport System RB Series 2006A
3.95%, 01/04/07 (a)(b)(c)
9,500 9,500

Lowry Economic Development Auth

Refunding RB Series 2002A
3.90%, 01/03/07 (a)(b)
10,355 10,355

Park Creek Metropolitan District

Jr Subordinate Limited Property Tax Supported RB Series 2005
3.95%, 01/04/07 (a)(c)(d)
10,970 10,970

Thompson SD R2-J

GO Bonds Series 2005
3.95%, 01/04/07 (a)(b)(c)
4,200 4,200

University of Colorado Hospital Auth

RB Series 2006B
3.95%, 01/04/07 (a)(b)(c)
16,500 16,500

Westminster Economic Development Auth

Tax Increment RB (Westminster Plaza) Series 1997A
4.07%, 01/04/07 (a)(b)
5,930 5,930

428,152

Connecticut 0.2%

Connecticut

GO Refunding Bonds Series 2005B
3.93%, 01/04/07 (a)(b)(c)(d)
27,400 27,400

Connecticut HFA

Housing Draw Down Bonds Series 2004B
3.96%, 01/04/07 (a)(b)(c)(d)
25 25

Mortgage Finance Bonds Series G2
3.96%, 01/04/07 (a)(c)(d)
4,780 4,780

S/F Mortgage Draw Down RB Series 2004B
3.96%, 01/04/07 (a)(b)(c)(d)
450 450

32,655

Delaware 0.3%

Delaware Solid Waste Auth

RB Series 2006
3.97%, 01/04/07 (a)(b)(c)(d)
14,235 14,235

Delaware State Transportation Auth

Transportation System Sr RB Series 2006
3.97%, 01/04/07 (a)(b)(c)
3,170 3,170

New Castle Cnty

M/F Rental Housing RB (Fairfield English Village) Series 2005
3.97%, 01/04/07 (a)(b)
8,500 8,500

Sussex Cnty

IDRB (Perdue-Agrirecycle) Series 2000
3.97%, 01/03/07 (a)(b)
5,300 5,300

RB (Baywood) Series 1997A
4.14%, 01/03/07 (a)(b)
2,400 2,400

Wilmington

GO Bonds Series 2006B
3.95%, 01/04/07 (a)(b)(c)
7,765 7,765

41,370

See financial notes 11

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

District of Columbia 2.0%

District of Columbia

COP Series 2006
3.95%, 01/04/07 (a)(b)(c)
11,390 11,390

Fiscal Year 2007 GO TRAN
3.51%, 09/28/07
91,000 91,488

GO Refunding Bonds Series 2005B
3.95%, 01/03/07 (a)(b)(c)(d)
16,320 16,320

RB (American Psychological Association) Series 2003
3.95%, 01/04/07 (a)(b)
2,610 2,610

RB (St Coletta Special Education Public Charter School) Series 2005
3.90%, 01/04/07 (a)(b)
4,150 4,150

Metropolitan Washington Airports Auth

Airport System RB Series 2005A
3.98%, 01/04/07 (a)(b)(c)(d)
14,995 14,995

Airport System RB Series 2006A
3.98%, 01/04/07 (a)(b)(c)(d)
11,980 11,980

Flexible Term PFC Revenue Notes Series A
3.65%, 02/06/07 (b)
12,500 12,500

Flexible Term PFC Revenue Notes Series B
3.65%, 02/14/07 (b)
26,500 26,500

Flexible Term PFC Revenue Notes Series C
3.67%, 02/08/07 (b)
23,000 23,000

Flexible Term PFC Revenue Notes Series D
3.60%, 03/09/07 (b)
30,000 30,000

RB Series 2001A
3.98%, 01/04/07 (a)(b)(c)(d)
5,870 5,870

Refunding RB Series 2002C
3.98%, 01/03/07 (a)(b)(c)
1,725 1,725

Refunding RB Series 2004D
3.98%, 01/04/07 (a)(b)(c)(d)
2,750 2,750

National Capital Revitalization Corp

RB (DC USA Parking Garage) Series 2006
3.97%, 01/04/07 (a)(b)(c)
26,430 26,430

281,708

Florida 8.7%

Alachua Cnty Health Facilities Auth

RB (Shands Hospital-University of Florida) Series 1992R
3.94%, 01/04/07 (a)(b)(c)(d)
66,175 66,175

Alachua Cnty School Board

COP Series 2004
3.94%, 01/04/07 (a)(b)(c)(d)
6,245 6,245

Brevard Cnty HFA

M/F Housing Refunding RB (Shore View Apts) Series 1995
3.95%, 01/04/07 (a)(b)
1,900 1,900

Broward Cnty

Professional Sports Facilities Tax and Refunding RB (Broward Cnty Civic Arena) Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
23,525 23,525

Subordinate Port Facilities Refunding RB (Port Everglades) Series 1998
3.93%, 01/04/07 (a)(b)(c)
8,640 8,640

Broward Cnty Educational Facilities Auth

RB (Nova Southeastern University) Series 2000A
3.92%, 01/03/07 (a)(b)
10,115 10,115

Broward Cnty HFA

M/F Housing RB (Landings of Inverrary Apts) Series 1985
3.90%, 01/03/07 (a)(b)
7,500 7,500

M/F Housing RB (Sanctuary Apts) Series 1985
3.93%, 01/03/07 (a)(b)
9,000 9,000

M/F Housing RB (Sawgrass Pines Apts) Series 1993A
3.97%, 01/04/07 (a)(b)
8,100 8,100

M/F Housing Refunding RB (Island Club Apts) Series 2001A
3.95%, 01/04/07 (a)(b)
3,000 3,000

Broward Cnty SD/Board

COP Series 2006A
3.95%, 01/04/07 (a)(b)(c)
9,785 9,785

Capital Trust Agency

M/F Housing RB (Portofino Villas and Stratford Landing) Series 2006A
3.92%, 01/04/07 (a)(b)
4,100 4,100

Charlotte Cnty

Refunding RB Series 2003A
3.93%, 01/04/07 (a)(b)(c)
7,080 7,080

Refunding RB Series 2003B
3.90%, 01/04/07 (a)(b)(c)
5,300 5,300

Charlotte Cnty HFA

M/F Housing RB (Murdock Circle Apts) Series 2000
3.99%, 01/03/07 (a)(b)
3,200 3,200

Clay Cnty Utility Auth

RB Series 2003A
3.90%, 01/04/07 (a)(b)
9,520 9,520

Collier Cnty

IDRB (Ave Maria Utility Co) Series 2005
3.97%, 01/03/07 (a)(b)
10,000 10,000

Collier Cnty IDA

Educational Facilities RB (Community School of Naples) Series 2002
3.90%, 01/04/07 (a)(b)
6,150 6,150

Dade Cnty IDA

IDRB (South Florida Stadium Corp) Series 1985C
3.76%, 01/03/07 (a)(b)
1,050 1,050

12 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Escambia HFA

S/F Mortgage RB Series 2001A
3.97%, 01/04/07 (a)(b)(c)(d)
1,400 1,400

4.03%, 01/04/07 (a)(b)(c)(d)
2,640 2,640

S/F RB Series 2002A1
3.99%, 01/04/07 (a)(c)(d)
3,810 3,810

Eustis

RB Installment 1997A
3.92%, 01/03/07 (a)(b)
3,025 3,025

Florida

RB (Dept of Environmental Protection Preservation 2000) Series 1997B
3.95%, 01/04/07 (a)(b)(c)(d)
15,000 15,000

RB (Dept of Environmental Protection-Florida Forever) Series 2003A
3.95%, 01/04/07 (a)(b)(c)
6,740 6,740

Florida Board of Education

Capital Outlay Bonds Series 1999C
3.97%, 01/04/07 (a)(c)(d)
17,780 17,780

Capital Outlay Bonds Series 2003C
3.95%, 01/04/07 (a)(b)(c)(d)
2,300 2,300

Lottery RB Series 2002C
3.95%, 01/04/07 (a)(b)(c)(d)
33,535 33,535

Public Education Capital Outlay Refunding Bonds Series 2005C
3.95%, 01/04/07 (a)(c)
15,095 15,095

Florida Dept of Environmental Protection

Forever RB Series 2005B
3.95%, 01/04/07 (a)(b)(c)
20,260 20,260

Florida Dept of Transportation

Turnpike RB Series 2000A
3.97%, 01/04/07 (a)(b)(c)(d)
4,000 4,000

Florida Development Finance Corp

IDRB (Schmitt Family Partnership) Series 1999A2
4.02%, 01/03/07 (a)(b)
1,625 1,625

IDRB (Sunshine State Christian Homes, Inc) Series 1999A3
3.97%, 01/03/07 (a)(b)
1,080 1,080

IDRB Enterprise Bond Program (Pioneer-Ram) Series 1998A3
4.02%, 01/03/07 (a)(b)
780 780

Florida HFA

Homeowner Mortgage RB Series 2000-4
4.03%, 01/04/07 (a)(b)(c)(d)
790 790

Housing RB (Caribbean Key Apts) Series 1996F
3.95%, 01/03/07 (a)(b)
300 300

M/F Housing RB (Cameron Cove Apts) Series 1985XX
3.96%, 01/03/07 (a)(b)
100 100

M/F Housing Refunding RB (Reflections Apts) Series 2001KA
3.91%, 01/04/07 (a)(b)
13,500 13,500

M/F Mortgage RB (Clarcona Groves Apts) Series 2005A
3.96%, 01/03/07 (a)(b)
4,250 4,250

M/F Mortgage RB (Lynn Lake Apts) Series 2005B1
3.97%, 01/04/07 (a)(b)
10,100 10,100

M/F Mortgage RB (Pinnacle Pointe Apts) Series 2003N
3.96%, 01/03/07 (a)(b)
2,335 2,335

M/F Mortgage RB (Wexford Apts) Series 2003P
3.96%, 01/03/07 (a)(b)
7,840 7,840

M/F Mortgage Refunding RB (Tuscany Pointe Apts) Series 2005D
3.92%, 01/04/07 (a)(b)
12,090 12,090

M/F Mortgage Refunding RB (Victoria Park Apts) Series 2002J1
3.91%, 01/04/07 (a)(b)
5,370 5,370

RB (Timberline Apts) Series 1999P
3.93%, 01/03/07 (a)(b)
6,035 6,035

Florida Higher Educational Facilities Financing Auth

Educational Facilities RB (Flagler College Inc) Series 2005
3.92%, 01/03/07 (a)(b)
9,200 9,200

Florida Local Government Finance Commission

Pooled TECP Series 1994A
3.60%, 01/18/07 (b)
12,730 12,730

3.62%, 01/19/07 (b)
2,700 2,700

3.64%, 01/19/07 (b)
21,960 21,960

3.60%, 02/09/07 (b)
4,118 4,118

Gainesville

IDRB (Lifesouth Community Blood Centers) Series 1999
3.92%, 01/03/07 (a)(b)
4,975 4,975

RB Series 2005A
3.94%, 01/04/07 (a)(b)(c)
4,990 4,990

Gainesville Utility System

RB Series 2005C
3.95%, 01/02/07 (a)(c)
3,000 3,000

Greater Orlando Aviation Auth

Airport Facility RB (Flightsafety International) Series 2003A
3.97%, 01/04/07 (a)(b)
5,000 5,000

Gulf Breeze

Local Government Loan Program RB Series 1985C
4.00%, 01/04/07 (a)(b)(c)
960 960

Local Government Loan Program RB Series 1985E
4.00%, 01/04/07 (a)(b)(c)
5,465 5,465

Halifax Hospital Medical Center

RB (Florida Health Care Plan) Series 1998
3.91%, 01/03/07 (a)(b)
5,200 5,200

Highlands Cnty Health Facilities Auth

Hospital RB Series 2003D & 2006C
3.95%, 01/04/07 (a)(b)(c)
4,725 4,725

See financial notes 13

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Hillsborough Cnty Aviation Auth

Airport Facilities Subordinated TECP Series B
3.64%, 02/08/07 (b)
10,300 10,300

RB (Tampa International Airport) Series 2003A
3.98%, 01/04/07 (a)(b)(c)(d)
5,495 5,495

Hillsborough Cnty Educational Facilities Auth

RB (University of Tampa) Series 2000
3.95%, 01/04/07 (a)(b)
5,100 5,100

Hillsborough Cnty HFA

M/F Housing RB (Claymore Crossing Apts) Series 2005
3.96%, 01/03/07 (a)(b)
1,000 1,000

M/F Housing RB (Lake Kathy Apts) Series 2005
3.97%, 01/04/07 (a)(b)
5,000 5,000

Hillsborough Cnty IDA

Educational Facilities RB (Berkeley Preparatory School, Inc) Series 1999
3.92%, 01/03/07 (a)(b)
4,280 4,280

IDRB (University Community Hospital) Series 1994
3.60%, 01/04/07 (a)(b)(c)(d)
62,115 62,115

RB (Independent Day School) Series 2000
3.95%, 01/04/07 (a)(b)
700 700

RB (Tampa Metropolitan Area YMCA) Series 2000
3.92%, 01/04/07 (a)(b)
7,600 7,600

Hillsborough Cnty Port District

Refunding RB (Tampa Port Auth) Series 2005A
3.98%, 01/04/07 (a)(b)(c)(d)
6,665 6,665

Jacksonville Aviation Auth

Refunding RB Series 2005
3.91%, 01/03/07 (a)(b)(c)
4,000 4,000

Jacksonville Economic Development Commission

Educational Facilities RB (Episcopal High School) Series 2002
3.90%, 01/03/07 (a)(b)
5,200 5,200

RB (Bolles School) Series 1999A
3.92%, 01/04/07 (a)(b)
1,500 1,500

Refunding RB (YMCA of Florida First Coast) Series 2003
3.90%, 01/04/07 (a)(b)
4,700 4,700

Special Facility Airport RB (Holland Sheltair Aviation Group) Series 2004A1
3.95%, 01/04/07 (a)(b)
3,970 3,970

Jacksonville Health Facilities Auth

RB (River Garden/The Coves) Series 1994
3.97%, 01/04/07 (a)(b)
3,045 3,045

Jacksonville HFA

M/F Housing Refunding RB (St Augustine Apts) Series 2006
3.91%, 01/03/07 (a)(b)
3,300 3,300

Lake Cnty School Board

COP Series 2006B
3.97%, 01/04/07 (a)(b)(c)
22,800 22,800

Lake Shore Hospital Auth

Health Facility RB (Lake Shore Hospital) Series 1991
3.92%, 01/04/07 (a)(b)
2,900 2,900

Lee Cnty HFA

M/F Housing RB (University Club Apts) Series 2002A
3.98%, 01/04/07 (a)(b)
7,500 7,500

Manatee Cnty HFA

M/F Housing RB (La Mirada Gardens) Series 2002A
4.03%, 01/04/07 (a)(b)
4,000 4,000

M/F Housing RB (Sabal Palm Harbor Apts) Series 2000A
3.99%, 01/03/07 (a)(b)
4,200 4,200

Miami Health Facilities Auth

Refunding RB (Miami Jewish Home and Hospital for the Aged, Inc) Series 2005
3.92%, 01/03/07 (a)(b)
7,410 7,410

Miami-Dade Cnty

Aviation RB (Miami International Airport) Series 2002
3.98%, 01/04/07 (a)(b)(c)(d)
5,370 5,370

Aviation RB (Miami International Airport) Series 2005A
3.98%, 01/04/07 (a)(b)(c)
9,105 9,105

GO Bonds Series 2005
3.96%, 01/04/07 (a)(b)(c)(d)
9,940 9,940

Solid Waste System RB Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
10,870 10,870

Miami-Dade Cnty IDA

IDRB (Airbus Service Co) Series 1998A
4.02%, 01/04/07 (a)(b)
7,840 7,840

RB (Belen Jesuit Preparatory School) Series 1999
3.92%, 01/03/07 (a)(b)
6,030 6,030

RB (Gulliver Schools) Series 2000
3.92%, 01/04/07 (a)(b)
3,700 3,700

Ocala

Utility Systems RB Series 2005B
3.95%, 01/04/07 (a)(b)(c)(d)
1,500 1,500

Ocean Highway and Port Auth

RB Series 1990
4.02%, 01/03/07 (a)(b)
9,000 9,000

Okeechobee Cnty

Exempt Facility RB (Okeechobee Landfill) Series 1999
3.97%, 01/04/07 (a)(b)
15,000 15,000

Orange Cnty Health Finance Auth

Refunding Program RB (Pooled Hospital Loan) Series 1985
3.53%, 03/13/07 (b)
19,500 19,500

14 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Orange Cnty HFA

M/F Housing RB (Alta Westgate Apts) Series 2005C
3.95%, 01/03/07 (a)(b)
6,920 6,920

M/F Housing RB (Palm Key Apts) Series 1997C
3.91%, 01/03/07 (a)(b)
5,000 5,000

M/F Housing Refunding RB (Andover Place Apts) Series 1998F
3.96%, 01/04/07 (a)(b)
6,000 6,000

M/F Housing Refunding RB (Post Fountains At Lee Vista) Series 1997E
3.92%, 01/03/07 (a)(b)
7,235 7,235

Orange Cnty IDA

Educational Facilities RB (UCF Hospitality School Student Housing Foundation) Series 2004
3.92%, 01/03/07 (a)(b)
8,695 8,695

IDRB (Central Florida YMCA) Series 2002A
3.92%, 01/04/07 (a)(b)
3,850 3,850

IDRB (Goodwill Industries of Central Florida) Series 1999
3.92%, 01/03/07 (a)(b)
6,000 6,000

RB (Central Florida YMCA) Series 2005
3.90%, 01/04/07 (a)(b)
5,600 5,600

Orange Cnty School Board

COP Series 2006A
3.94%, 01/04/07 (a)(b)(c)
5,277 5,277

COP Series 2006B
3.95%, 01/04/07 (a)(b)(c)
2,995 2,995

Orlando Utilities Commission

Water and Electric RB Series 2002B
3.91%, 01/03/07 (a)(c)
5,100 5,100

Orlando-Orange Cnty Expressway Auth

RB Series 2005B1
3.91%, 01/03/07 (a)(b)(c)
11,810 11,810

Palm Beach Cnty

Airport RB (Galaxy Aviation) Series 2000A
3.98%, 01/03/07 (a)(b)
7,595 7,595

Criminal Justice Facilities RB Series 1997
3.95%, 01/04/07 (a)(b)(c)(d)
7,495 7,495

IDBR (South Florida Blood Banks) Series 2002
3.92%, 01/03/07 (a)(b)
7,705 7,705

IDRB (Palm Beach Day School) Series 1999
3.92%, 01/03/07 (a)(b)
7,000 7,000

RB (Norton Gallery and School of Art) Series 1995
3.93%, 01/03/07 (a)(b)
2,500 2,500

RB (Zoological Society of the Palm Beaches) Series 2001
3.94%, 01/04/07 (a)(b)
3,500 3,500

Palm Beach Cnty Health Facilities Auth

Refunding Program RB (Pooled Hospital Loan) Series 1985
3.52%, 03/08/07 (b)
56,000 56,000

Palm Beach Cnty HFA

M/F Housing Refunding RB (Emerald Bay Club Apts) Series 2004
3.94%, 01/04/07 (a)(b)
7,000 7,000

M/F Housing Refunding RB (Spinnaker Landing Apts) Series 1998
3.97%, 01/04/07 (a)(b)
2,645 2,645

Pinellas Cnty Educational Facilities Auth

RB (Shorecrest Preparatory School) Series 2001
3.91%, 01/03/07 (a)(b)
905 905

Refunding RB (Canterbury School of Florida) Series 2004
3.91%, 01/03/07 (a)(b)
4,360 4,360

Pinellas Cnty HFA

M/F Housing RB (Greenwood Apts) Series 2002A
3.95%, 01/04/07 (a)(b)
6,460 6,460

Pinellas Cnty Industry Council

RB (Operation Par) Series 1999
3.97%, 01/04/07 (a)(b)
4,010 4,010

Santa Rosa Cnty

Health Facilities RB (Baptist Hospital) Series 2003
3.90%, 01/04/07 (a)(b)
6,820 6,820

Sarasota Cnty

RB (Sarasota Family YMCA) Series 1999
3.92%, 01/04/07 (a)(b)
440 440

Sarasota Cnty Health Facilities Auth

RB (Sarasota-Manatee Jewish Housing Council, Inc) Series 2005A
3.93%, 01/04/07 (a)(b)
12,300 12,300

Seminole Cnty IDA

IDRB (Amrhein Family Limited Partnership) Series 2001
3.97%, 01/03/07 (a)(b)
3,965 3,965

South Florida Water Management District

COP Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
18,890 18,890

3.95%, 01/04/07 (a)(b)(c)
18,330 18,330

St Johns Cnty

Water and Sewer Refunding RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
11,035 11,035

St Johns Cnty School Board

COP (Master Lease Program) Series 2006
3.95%, 01/04/07 (a)(b)(c)
13,530 13,530

Sumter Landing Community Development District

Recreational RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
2,000 2,000

Sunshine State Governmental Financing Commission

TECP Series 1998A
3.52%, 03/06/07 (b)(c)
65,289 65,289

See financial notes 15

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Tallahassee-Leon Cnty Civic Center Auth

Capital Improvement RB Series 1998A
3.92%, 01/03/07 (a)(b)
9,060 9,060

Tampa

Health Care Facilities RB (Lifelink Foundation) Series 1997
3.92%, 01/03/07 (a)(b)
4,460 4,460

Tampa Bay Water Auth

Utility System RB Series 2002
3.95%, 01/04/07 (a)(b)
5,400 5,400

University of South Florida Research Foundation

RB (Interdisciplinary Research Building) Series 2004A
3.93%, 01/03/07 (a)(b)
13,855 13,855

Volusia Cnty

Tourist Development Tax RB Series 2004
3.94%, 01/04/07 (a)(b)(c)(d)
7,195 7,195

Volusia Cnty Educational Facilities Auth

RB (Bethune-Cookman College) Series 2001
3.92%, 01/03/07 (a)(b)
10,310 10,310

Volusia Cnty Health Facilities Auth

Hospital Facilities RB (Memorial Health Systems) Series 1996
3.95%, 01/04/07 (a)(b)(c)(d)
38,965 38,965

Winter Haven

Utility System Improvement and Refunding RB Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
8,185 8,185

1,199,509

Georgia 4.3%

Atlanta

Airport General Refunding RB Series 2000A
3.95%, 01/04/07 (a)(b)(c)(d)
11,195 11,195

Airport General Refunding RB Series 2000C
3.98%, 01/04/07 (a)(b)(c)(d)
3,385 3,385

Airport General Refunding RB Series 2003RF-D
3.84%, 01/04/07 (a)(b)(c)(d)
3,385 3,385

Airport Passenger Facility Charge and Subordinate Lien General RB Series 2004C
3.95%, 01/04/07 (a)(b)(c)
5,175 5,175

Subordinate Lien Tax Allocation Bonds (Atlantic Station) Series 2006
4.01%, 01/04/07 (a)(b)
13,000 13,000

Water and Wastewater RB Series 2004
4.03%, 01/03/07 (a)(b)(c)(d)
4,500 4,500

Water and Wastewater Revenue CP Series 2006-1
3.55%, 02/05/07 (b)
10,000 10,000

3.58%, 02/05/07 (b)
27,400 27,400

Atlanta Urban Residential Finance Auth

M/F Housing RB (Capitol Gateway Apts Phase I)
Series 2005
4.00%, 01/04/07 (a)(b)
4,125 4,125

M/F Housing RB (Delmonte/Brownlee Court) Series 2001A
3.97%, 01/03/07 (a)(b)
4,595 4,595

M/F Housing RB (Lindbergh City Center Apts) Series 2004
3.98%, 01/04/07 (a)(b)
5,000 5,000

M/F Housing RB (M St Apts) Series 2003
3.97%, 01/04/07 (a)(b)
7,000 7,000

M/F Housing RB (Peaks at West Atlanta Apts) Series 2001
3.97%, 01/03/07 (a)(b)
4,800 4,800

M/F Sr Housing RB (Big Bethel Village) Series 2001
3.97%, 01/03/07 (a)(b)
4,400 4,400

Augusta Housing Auth

M/F Housing RB (G-Hope) Series 2001
3.97%, 01/03/07 (a)(b)
3,620 3,620

Burke Cnty Development Auth

RB (Oglethorpe Power Corp) Series 2006B3
3.56%, 02/22/07 (b)(c)
10,000 10,000

RB (Oglethorpe Power Corp) Series 2006B4
3.56%, 02/12/07 (b)(c)
9,000 9,000

Cherokee Cnty

IDRB (Universal Alloy Corp) Series 1996
3.97%, 01/04/07 (a)(b)
1,100 1,100

Clayton Cnty Development Auth

IDRB (Wilson Holdings) Series 1998
4.02%, 01/03/07 (a)(b)
200 200

Clayton Cnty Housing Auth

M/F Housing RB (Hyde Park Club Apts) Series 1997
3.98%, 01/03/07 (a)(b)
11,695 11,695

Cobb Cnty Housing Auth

M/F Housing RB (Walton Green Apts) Series 1995
3.97%, 01/04/07 (a)(b)
13,500 13,500

M/F Housing RB (Woodchase Village Apts) Series 2003
4.00%, 01/04/07 (a)(b)
4,000 4,000

M/F Housing Refunding RB (Walton Park Apts) Series 2000
3.97%, 01/04/07 (a)(b)
21,100 21,100

Columbus Development Auth

RB (Foundation Properties) Series 2002
3.99%, 01/04/07 (a)(b)
10,965 10,965

Columbus Housing Auth

M/F Housing RB (Eagles Trace Apts) Series 2002
3.97%, 01/03/07 (a)(b)
6,100 6,100

16 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Dalton Development Auth

Revenue Certificates (Hamilton Health Care System) Series 2003B
3.90%, 01/04/07 (a)(b)
5,245 5,245

DeKalb Cnty

Water and Sewerage RB Series 2003A
3.95%, 01/04/07 (a)(c)(d)
13,290 13,290

Water and Sewerage RB Series 2006A
3.94%, 01/04/07 (a)(b)(c)
9,990 9,990

Water and Sewerage Refunding RB Series 2006B
3.95%, 01/04/07 (a)(b)(c)
18,095 18,095

DeKalb Cnty Development Auth

RB (Arbor Montessori School) Series 1998
3.92%, 01/03/07 (a)(b)
1,100 1,100

DeKalb Cnty Housing Auth

M/F Housing RB (Brittany Apts) Series 2001
3.97%, 01/04/07 (a)(b)
7,200 7,200

M/F Housing RB (Eagles Trace Apts) Series 1996
3.95%, 01/03/07 (a)(b)
8,550 8,550

M/F Housing RB (Mountain Crest Apts) Series 2002
3.97%, 01/03/07 (a)(b)
7,725 7,725

M/F Housing RB (Villas of Friendly Heights Apts) Series 2001
3.97%, 01/03/07 (a)(b)
3,415 3,415

M/F Housing RB (Wesley Club Apts) Series 2002
3.97%, 01/03/07 (a)(b)
5,810 5,810

Effingham Cnty IDA

RB (TEMCOR) Series 2001
3.97%, 01/03/07 (a)(b)
3,005 3,005

Fulton Cnty

Water and Sewerage RB Series 2004
3.94%, 01/04/07 (a)(b)(c)
3,485 3,485

3.95%, 01/04/07 (a)(b)(c)(d)
10,000 10,000

Fulton Cnty Development Auth

RB (Atlanta International School) Series 1997
3.92%, 01/03/07 (a)(b)
2,200 2,200

RB (Children’s Healthcare of Atlanta) Series 2005A
3.95%, 01/04/07 (a)(c)
46,395 46,395

RB (Trinity School) Series 2001
3.92%, 01/03/07 (a)(b)
7,000 7,000

Georgia

GO Bonds Series 2002B
3.95%, 01/04/07 (a)(c)(d)
890 890

GO Refunding Bonds Series 2004C
3.95%, 01/04/07 (a)(c)
2,600 2,600

Gwinnett Cnty Development Auth

COP (Gwinnett Cnty Public Schools) Series 2006
3.95%, 01/04/07 (a)(b)(c)
25,835 25,835

3.97%, 01/04/07 (a)(b)(c)(d)
33,400 33,400

Jefferson Cnty Development Auth

IDRB (Grove River Mills) Series 1997
4.02%, 01/04/07 (a)(b)
1,200 1,200

Laurens Cnty Development Auth

Solid Waste Disposal RB (Southeast Paper Manufacturing Co) Series 1993
3.97%, 01/04/07 (a)(b)
25,000 25,000

Solid Waste Disposal RB (Southeast Paper Manufacturing Co) Series 1997
3.97%, 01/04/07 (a)(b)
26,000 26,000

Lawrenceville Housing Auth

M/F Housing RB (Chatham Club Apts) Series 2002
3.95%, 01/04/07 (a)(b)(d)
7,700 7,700

Lowndes Cnty Development Auth

M/F Housing RB (FMPH Valdosta) Series 1999
3.97%, 01/03/07 (a)(b)
4,510 4,510

Macon-Bibb Cnty Hospital Auth

Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 1998
3.92%, 01/03/07 (a)(b)
4,000 4,000

Marietta Housing Auth

M/F Housing RB (Walton Village Apts) Series 2005
4.00%, 01/04/07 (a)(b)
14,300 14,300

Metropolitan Atlanta Rapid Transit Auth

Sales Tax Revenue CP BAN (Third Indenture) Series 2004A
3.55%, 02/05/07 (b)
12,500 12,500

3.52%, 03/06/07 (b)
10,000 10,000

Miller Cnty Development Auth

IDRB (Birdsong Corp) Series 2000
3.97%, 01/03/07 (a)(b)
2,300 2,300

Pooler Development Auth

M/F Housing RB (Alta Towne Lake Apts) Series 2005
3.95%, 01/04/07 (a)(b)
19,500 19,500

Savannah Economic Development Auth

Exempt Facility RB (Georgia Kaolin Terminal) Series 1997
3.95%, 01/04/07 (a)(b)
6,000 6,000

Exempt Facility RB (Home Depot) Series 1995B
3.96%, 01/03/07 (a)(b)
5,000 5,000

First Mortgage RB (Marshes of Skidaway Island) Series 2003C
3.98%, 01/04/07 (a)(b)
1,185 1,185

See financial notes 17

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Savannah Housing Auth

M/F Housing RB (Indigo Pointe Apts) Series 2001A1
3.97%, 01/03/07 (a)(b)
3,500 3,500

M/F Housing RB (Live Oak Plantation Apts) Series 2001A1
3.97%, 01/03/07 (a)(b)
2,500 2,500

Summerville Development Auth

Exempt Facility RB (Image Industries) Series 1997
4.00%, 01/04/07 (a)(b)
11,000 11,000

Thomasville Hospital Auth

Revenue Anticipation Certificates (John D. Archbold Memorial Hospital)
Series 2003
3.92%, 01/03/07 (a)(b)
5,700 5,700

Walton Cnty Development Auth

RB (Tucker Door and Trim Corp) Series 2000
4.07%, 01/03/07 (a)(b)
2,500 2,500

Webster Cnty IDA

IDRB (Tolleson Lumber Co) Series 1999
3.97%, 01/04/07 (a)(b)
4,000 4,000

Winder-Barrow Industrial Building Auth

IDRB (Progress Container Corp) Series 2000
3.97%, 01/03/07 (a)(b)
2,200 2,200

Worth Cnty

Refunding IDRB (Seabrook Peanut Co) Series 1996B
3.97%, 01/03/07 (a)(b)
1,300 1,300

586,365

Hawaii 0.6%

Hawaii

GO Bonds Series 2002CZ
3.94%, 01/04/07 (a)(b)(c)(d)
5,900 5,900

Special Purpose Refunding RB (Hawaiian Electric Co) Series 2000
3.98%, 01/04/07 (a)(b)(c)(d)
9,095 9,095

Hawaii Housing Finance and Development Corp

S/F Mortgage Purchase RB
4.06%, 01/02/07 (a)(c)(d)
1,520 1,520

Honolulu Board of Water Supply

Water System RB Series 2006A
3.94%, 01/04/07 (a)(b)(c)
7,000 7,000

Honolulu City and Cnty

GO Bonds Series 2003A
3.95%, 01/04/07 (a)(b)(c)(d)
14,995 14,995

GO CP Series H
3.55%, 02/08/07 (b)
38,000 38,000

76,510

Idaho 0.4%

Idaho

TAN Series 2006
3.70%, 06/29/07
28,000 28,106

Idaho Housing and Finance Association

S/F Mortgage Bonds Series 2005F
4.05%, 01/03/07 (a)(c)
17,900 17,900

Idaho State University Foundation

RB (LE and Thelma E. Stephens Performing Arts Center) Series 2001
3.91%, 01/04/07 (a)(b)
3,660 3,660

49,666

Illinois 7.1%

Aurora

Collateralized S/F Mortgage RB Series A2
3.98%, 01/04/07 (a)(c)(d)
28,000 28,000

Carol Stream

M/F Housing Refunding RB (St Charles Square) Series 1997
4.04%, 01/03/07 (a)(b)
4,415 4,415

Chicago

General Airport Third Lien RB (Chicago O’Hare International Airport) Series 2005A
3.95%, 01/04/07 (a)(b)(c)
25,737 25,738

3.95%, 01/04/07 (a)(b)(c)(d)
15,810 15,810

General Airport Third Lien Refunding RB (Chicago O’Hare International Airport) Series 2005B
3.79%, 01/04/07 (a)(b)(c)(d)
6,325 6,325

3.95%, 01/04/07 (a)(b)(c)
11,410 11,410

GO Bonds Series 2003C
3.95%, 01/04/07 (a)(b)(c)(d)
2,694 2,694

GO Project and Refunding Bonds Series 2005B
3.95%, 01/04/07 (a)(b)(c)(d)
6,850 6,850

GO Project and Refunding Bonds Series 2006A
3.97%, 01/04/07 (a)(b)(c)
45,795 45,795

M/F Housing RB (Central Station Senior Housing) Series 2004
3.98%, 01/04/07 (a)(b)
9,500 9,500

Midway Airport RB Series 1998C
3.96%, 01/04/07 (a)(b)(c)(d)
24,480 24,480

Sales Tax Refunding RB Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
9,705 9,705

Second Lien Wastewater Transmission Refunding RB Series 2001
3.94%, 01/04/07 (a)(b)(c)(d)
20,510 20,510

Sr Lien Water RB Series 2000
3.96%, 01/04/07 (a)(c)(d)
12,975 12,975

Wastewater Transmission RB Series 1998A
3.97%, 01/04/07 (a)(b)(c)
2,785 2,785

18 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Chicago Board of Education

Unlimited Tax GO Bonds (Dedicated Revenues) Series 2006B
3.97%, 01/04/07 (a)(b)(c)(d)
11,000 11,000

Unlimited Tax GO Bonds Series 1997
3.95%, 01/04/07 (a)(b)(c)(d)
7,120 7,120

Chicago Housing Auth

Capital Program Refunding RB Series 2006
3.67%, 07/01/07 (b)
22,180 22,322

Chicago O’Hare International Airport

General Airport Third Lien RB Series 2003B2
3.98%, 01/04/07 (a)(b)(c)(d)
8,595 8,595

General Airport Third Lien Refunding RB Series 2003A2
3.98%, 01/04/07 (a)(b)(c)(d)
7,895 7,895

General Airport Third Lien Refunding RB Series 2003B2
3.98%, 01/04/07 (a)(b)(c)(d)
10,800 10,800

Second Lien Passenger Facility Charge RB Series 2001A
4.00%, 01/03/07 (a)(b)(c)(d)
11,070 11,070

3.98%, 01/04/07 (a)(b)(c)(d)
6,315 6,315

Special Facilities RB (O’Hare Tech Center II) Series 2002
3.99%, 01/04/07 (a)(b)
15,500 15,500

Cook Cnty

GO Capital Improvement Bonds Series 2004B
3.94%, 01/04/07 (a)(b)(c)(d)
6,900 6,900

RB (Catholic Theological Union) Series 2005
3.94%, 01/03/07 (a)(b)
4,000 4,000

East Dundee, Kane and Cook Cnties

IDRB (Otto Engineering) Series 1998
4.02%, 01/04/07 (a)(b)
1,595 1,595

Hampshire

IDRB (Poli-Film America) Series 1998A
3.97%, 01/04/07 (a)(b)
2,300 2,300

Illinois

Civic Center Bonds Series 1991
4.01%, 01/04/07 (a)(b)(c)(d)
2,940 2,940

GO Bonds (Illinois First) Series 2000
3.96%, 01/04/07 (a)(b)(c)(d)
33,575 33,575

GO Bonds (Illinois First) Series 2002
3.96%, 01/04/07 (a)(b)(c)(d)
26,500 26,500

GO Bonds Series 2003
3.94%, 01/04/07 (a)(b)(c)(d)
22,500 22,500

GO Bonds Series 2004A
3.95%, 01/02/07 (a)(b)(c)(d)
8,600 8,600

GO Bonds Series 2006
3.95%, 01/04/07 (a)(c)
2,395 2,395

3.95%, 01/04/07 (a)(c)(d)
1,745 1,745

Illinois Development Finance Auth

Economic Development RB (Korex Corp) Series 1990
4.04%, 01/04/07 (a)(b)
4,000 4,000

Gas Supply Refunding RB (People’s Gas) Series 2003E
3.99%, 01/04/07 (a)(b)(c)(d)
14,995 14,995

IDRB (Arc-Tronics) Series 1999
3.97%, 01/03/07 (a)(b)
1,585 1,585

IDRB (Camcraft Inc) Series 1993
4.14%, 01/03/07 (a)(b)
1,600 1,600

IDRB (Radiological Society of North America) Series 1997
3.98%, 01/04/07 (a)(b)
2,930 2,930

Qualified Residential Rental Bonds (River Oaks) Series 1989
3.96%, 01/03/07 (a)(b)
32,000 32,000

RB (American College of Surgeons) Series 1996
3.94%, 01/05/07 (a)(b)
13,100 13,100

RB (Aurora Central Catholic High School) Series 1994
4.19%, 01/03/07 (a)(b)
1,000 1,000

RB (Carmel High School) Series 2003
3.94%, 01/03/07 (a)(b)
6,200 6,200

RB (Catholic Charities Housing Development Corp) Series 1993A
4.09%, 01/03/07 (a)(b)
9,160 9,160

RB (Catholic Charities Housing Development Corp) Series 1993B
4.09%, 01/03/07 (a)(b)
910 910

RB (Chicago Academy of Sciences) Series 1997
3.94%, 01/03/07 (a)(b)
1,150 1,150

RB (Chicago Academy of Sciences) Series 1998
3.94%, 01/03/07 (a)(b)
5,700 5,700

RB (Francis W. Parker School) Series 1999
3.90%, 01/03/07 (a)(b)
2,355 2,355

RB (Lake Forest Academy) Series 1994
3.94%, 01/03/07 (a)(b)
4,000 4,000

RB (Lake Forest Country Day School) Series 2005
3.94%, 01/03/07 (a)(b)
7,250 7,250

RB (Perspectives Charter School) Series 2003
3.93%, 01/04/07 (a)(b)
5,500 5,500

RB (Presbyterian Homes Two Arbor Lane) Series 2001
3.94%, 01/03/07 (a)(b)
9,000 9,000

RB (Richard H. Driehaus Museum) Series 2005
3.94%, 01/03/07 (a)(b)
3,800 3,800

RB (Slovak American Charitable Association) Series 2000
3.94%, 01/03/07 (a)(b)
7,460 7,460

See financial notes 19

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

RB (St Ignatius College Prep) Series 2002
3.94%, 01/03/07 (a)(b)(d)
2,800 2,800

Water Facilities Refunding RB (Illinois-American Water Co) Series 2002
4.02%, 01/04/07 (a)(b)(c)
5,000 5,000

Illinois Education Facility Auth

RB (Northwestern University) Series 2003
3.95%, 01/04/07 (a)(c)(d)
7,010 7,010

RB (Shedd Aquarium) Series 1997
3.95%, 01/03/07 (a)(b)(c)(d)
2,000 2,000

Illinois Health Facilities Auth

RB (Bensenville Home Society) Series 1989A
3.93%, 01/03/07 (a)(b)
1,300 1,300

RB (Ingalls Health System) Series 1994
3.94%, 01/04/07 (a)(b)(c)(d)
29,180 29,180

Illinois Housing Development Auth

M/F Mortgage Refunding RB (Hyde Park Tower Apts) Series 2000A
3.97%, 01/03/07 (a)(b)
4,500 4,500

Illinois Toll Highway Auth

Sr Priority RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
10,665 10,665

3.97%, 01/04/07 (a)(b)(c)(d)
6,925 6,925

Sr Priority RB Series 2006A1
3.95%, 01/04/07 (a)(b)(c)(d)
10,405 10,405

Sr Priority RB Series 2006A2
3.94%, 01/04/07 (a)(b)(c)(d)
10,410 10,410

3.95%, 01/04/07 (a)(b)(c)(d)
27,565 27,565

3.96%, 01/04/07 (a)(b)(c)(d)
14,995 14,995

Lombard

Refunding IDRB (B&H Partnership) Series 1995
4.31%, 01/04/07 (a)(b)
1,850 1,850

Metropolitan Pier and Exposition Auth

Bonds (McCormick Place Expansion) Series 1998B
3.94%, 01/04/07 (a)(b)(c)(d)
30,960 30,960

Bonds (McCormick Place Expansion) Series 2002A
3.97%, 01/04/07 (a)(b)(c)(d)
6,425 6,425

Refunding Bonds (McCormick Place Expansion) Series 1999AC
3.96%, 01/04/07 (a)(b)(c)(d)
9,790 9,790

Refunding Bonds (McCormick Place Expansion) Series 2002A
3.97%, 01/04/07 (a)(b)(c)
9,300 9,300

Refunding Bonds (McCormick Place Expansion) Series 2002B
3.95%, 01/03/07 (a)(b)(c)(d)
18,490 18,490

Metropolitan Water Reclamation District of Greater Chicago

GO Capital Improvement Bonds Unlimited Tax Series 2006
3.94%, 01/04/07 (a)(c)
50,000 50,000

Unlimited Tax GO Refunding Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
10,000 10,000

Montgomery Special Service Area No. 10

Special Tax Bonds (Blackberry Crossing West) Series 2004
3.94%, 01/03/07 (a)(b)
12,152 12,152

Palatine

Special Facility Limited Obligation RB (Little City for Community
Development) Series 1998
3.94%, 01/03/07 (a)(b)
5,000 5,000

Regional Transportation Auth of Cook, DuPage, Kane, Lake, McHenry and Will Cnties

GO Bonds Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
29,110 29,110

Regional Transportation Auth

GO Refunding Bonds Series 1999
3.96%, 01/04/07 (a)(b)(c)(d)
21,785 21,785

Rockford

IDRB (Ring Can Corp) Series 1998
3.97%, 01/03/07 (a)(b)
740 740

IDRB (Rockford Industrial Welding Supply) Series 1996
4.02%, 01/04/07 (a)(b)
2,000 2,000

Southwestern Illinois Development Auth

Refunding IDRB (Holten Meat) Series 2004
4.02%, 01/04/07 (a)(b)
6,860 6,860

University of Illinois

Auxiliary Facilities RB Series 1999A
3.95%, 01/03/07 (a)(b)(c)(d)
3,500 3,500

Wheeling

M/F Housing Refunding RB (Woodland Creek Apts II)
Series 2002
3.96%, 01/04/07 (a)(b)
17,655 17,655

Will-Kankakee Regional Development Auth

IDRB (Toltec Steel Services) Series 2002
4.01%, 01/04/07 (a)(b)
6,290 6,290

Woodridge

M/F Housing Refunding RB (Hinsdale Lake Terrace Apts) Series 1990
3.96%, 01/05/07 (a)(b)(c)
20,760 20,760

Yorkville

IDRB (FE Wheaton and Co) Series 1996
4.20%, 01/04/07 (a)(b)
950 950

970,726

20 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Indiana 1.7%

Brownburg 1999 School Bldg Corp

First Mortgage Refunding Bonds Series 2005B
3.95%, 01/04/07 (a)(b)(c)(d)
11,580 11,580

Elkhart Cnty

Economic Development RB (West Plains Apts) Series 1998A
3.99%, 01/03/07 (a)(b)
1,750 1,750

Indiana Development Finance Auth

IDRB (Big Sky Park) Series 1999
3.99%, 01/04/07 (a)(b)
4,200 4,200

IDRB (Cives Corp) Series 1998
3.97%, 01/04/07 (a)(b)
7,150 7,150

Indiana Finance Auth

Environmental RB (PSI Energy Inc) Series 2005B
3.96%, 01/03/07 (a)(b)
10,500 10,500

State Revolving Fund Program Series 2006B
3.88%, 01/04/07 (a)(c)
26,480 26,480

3.97%, 01/04/07 (a)(c)(d)
5,630 5,630

Indiana Health and Educational Facility Financing Auth

RB (Ascension Health Credit Group) Series 2006B6
3.95%, 01/04/07 (a)(c)
15,950 15,950

Indiana Health Facilities Financing Auth

Hospital RB (Sisters of St Francis Health Services, Inc) Series 1999A
3.94%, 01/04/07 (a)(b)(c)(d)
7,605 7,605

Insured RB Series 1985A
3.92%, 01/03/07 (a)(b)(c)
2,780 2,780

RB (Ascension Health Credit Group) Series 2001A2
3.62%, 06/01/07 (a)
17,275 17,273

RB (Ascension Health) Series 2001A3
3.35%, 01/30/07 (a)
10,000 9,981

Indiana HFA

S/F Mortgage RB Series 1998D2
4.06%, 01/04/07 (a)(c)(d)
9,715 9,715

S/F Mortgage RB Series 2000B2
4.08%, 01/04/07 (a)(c)(d)
3,620 3,620

S/F Mortgage RB Series 2002B
4.00%, 01/03/07 (a)(c)(d)
2,675 2,675

S/F Mortgage RB Series 2004B2 & 2005C2
3.98%, 01/04/07 (a)(c)
5,435 5,435

Indiana Housing and Community Development Agency

S/F Mortgage RB Series 2006D1
3.97%, 01/04/07 (a)(c)(d)
14,000 14,000

Indiana Municipal Power Agency

Power Supply System RB Series 2006A
3.97%, 01/04/07 (a)(b)(c)(d)
7,000 7,000

Indianapolis

M/F Housing RB (Nora Pines Apts) Series 2001
3.97%, 01/04/07 (a)(b)
9,275 9,275

Thermal Energy System RB Series 2001A
3.96%, 01/04/07 (a)(b)(c)(d)
9,900 9,900

Indianapolis Local Public Improvement Bond Bank

Bonds (Indianapolis Airport Auth) Series 2005B
3.99%, 01/04/07 (a)(b)(c)(d)
3,125 3,125

Bonds (Waterworks) Series 2006A
3.92%, 01/04/07 (a)(b)(c)
4,245 4,245

RB (Indianapolis Airport Auth) Series 2004I
3.98%, 01/04/07 (a)(b)(c)(d)
11,295 11,295

Jay School Building Corp

First Mortgage Refunding Bonds Series 2006
3.95%, 01/03/07 (a)(b)(c)
4,535 4,535

Lafayette

Sewage Works Refunding RB Series 2006
3.95%, 01/03/07 (a)(b)(c)
4,405 4,405

Marion

Economic Development RB (Indiana Wesleyan University) Series 2000
3.90%, 01/03/07 (a)(b)
7,500 7,500

St Joseph Cnty

Economic Development RB (Corby Apts) Series 1997B
4.04%, 01/03/07 (a)(b)
3,380 3,380

Economic Development RB (Pin Oaks Apts) Series 1997A
4.04%, 01/03/07 (a)(b)
1,000 1,000

Economic Development RB (Western Manor Apts) Series 1997C
4.04%, 01/03/07 (a)(b)
2,130 2,130

Vigo Cnty

Economic Development RB (Sisters of Providence) Series 2001
4.00%, 01/04/07 (a)(b)
3,500 3,500

Wayne Township School Building Corp

First Mortgage Refunding Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)
5,145 5,145

232,759

Iowa 1.6%

Des Moines Metropolitan Wastewater Reclamation Auth

Sewer RB Series 2004B
3.94%, 01/04/07 (a)(b)(c)(d)
6,480 6,480

Iowa

TRAN Series 2006
3.53%, 06/29/07
50,000 50,174

See financial notes 21

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Iowa Finance Auth

M/F Housing RB (Country Club Village) Series 2006
3.97%, 01/04/07 (a)(b)
11,370 11,370

Iowa Higher Education Loan Auth

Private College Facility RB (Graceland University) Series 2003
3.95%, 01/04/07 (a)(b)
2,000 2,000

Iowa School Corporations

Cash Anticipation Program Warrant Certificates Series 2006-2007 A
3.71%, 06/28/07 (b)
75,000 75,278

Iowa Student Loan Liquidity Corp

RB Series 1988B
3.96%, 01/03/07 (a)(b)(c)
46,500 46,500

Tobacco Settlement Auth

Asset-Backed Bonds Series 2001B
4.03%, 01/03/07 (a)(c)
21,710 21,710

Asset-Backed Bonds Series C
3.96%, 01/04/07 (a)(b)(c)(d)
11,820 11,820

225,332

Kansas 0.1%

Kansas Development Finance Auth

M/F Housing RB (Saddlewood Apts) Series 2004M
4.04%, 01/04/07 (a)(b)
7,600 7,600

Kentucky 1.1%

Boyle Cnty

Hospital RB (Ephraim McDowell Health) Series 2006
3.95%, 01/04/07 (a)(b)
8,500 8,500

Elizabethtown

IDRB (ALTEC) Series 1997
3.99%, 01/03/07 (a)(b)
3,000 3,000

Jefferson Cnty

M/F Housing Refunding RB (Camden Brookside Apts) Series 2002
3.94%, 01/04/07 (a)(b)
8,900 8,900

Sports Stadium RB (University of Louisville Athletic Association) Series 1997
4.15%, 01/04/07 (a)(b)
600 600

Kentucky Asset/Liability Commission

General Fund TRAN Series 2006A
3.70%, 06/28/07
25,000 25,094

Kentucky Higher Education Student Loan Corp

Insured RB Series 1991E
3.98%, 01/03/07 (a)(b)(c)
12,600 12,600

Insured RB Series 1996A
3.98%, 01/03/07 (a)(b)(c)
23,850 23,850

Kentucky Housing Corp

RB Series 1998B
3.99%, 01/04/07 (a)(c)(d)
11,995 11,995

RB Series 1998F
4.06%, 01/04/07 (a)(c)(d)
19,320 19,320

RB Series 2002A
4.00%, 01/03/07 (a)(c)(d)
3,175 3,175

Louisville and Jefferson Cnty Metropolitan Sewer District

Sewage and Drainage System RB Series 1999A
3.96%, 01/04/07 (a)(b)(c)(d)
6,115 6,115

Louisville and Jefferson Cnty Regional Airport Auth

Special Facilities RB Series 1999C
3.91%, 01/02/07 (a)
21,700 21,700

Louisville/Jefferson Cnty Metro Government

Health System RB (Norton Healthcare) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
1,200 1,200

Richmond

IDRB (Mikron) Series 1995
4.00%, 01/03/07 (a)(b)
5,000 5,000

151,049

Louisiana 2.6%

Ernest N. Morial-New Orleans Exhibit Hall Auth

Sr Subordinate Special Tax Bonds Series 2003A
3.98%, 01/04/07 (a)(b)(c)(d)
4,995 4,995

Lake Charles Harbor and Terminal District

Dock and Wharf RB (Conoco Inc) Series 2000
4.05%, 01/03/07 (a)(b)
10,500 10,500

Louisiana

Gasoline and Fuels Tax RB Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
3,435 3,435

3.95%, 01/04/07 (a)(b)(c)
12,025 12,025

Gasoline and Fuels Tax RB Series 2006A
3.94%, 01/04/07 (a)(b)(c)
20,925 20,925

3.95%, 01/04/07 (a)(b)(c)
20,865 20,865

GO Refunding Bonds Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
6,275 6,275

Louisiana Citizens Property Insurance Corp

Assessment RB Series 2006B
4.12%, 01/02/07 (a)(b)(c)
56,660 56,660

3.95%, 01/04/07 (a)(b)(c)(d)
16,300 16,300

Louisiana HFA

S/F Mortgage Refunding RB Series 2005A
3.99%, 01/04/07 (a)(c)(d)
22,944 22,944

Louisiana Local Government Environmental Facilities and Community Development Auth

RB (University of Louisiana-Monroe) Series 2004A
3.93%, 01/04/07 (a)(b)
8,000 8,000

RB (University of Louisiana-Monroe) Series 2004C
3.93%, 01/04/07 (a)(b)
12,515 12,515

22 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Louisiana Offshore Terminal Auth

Deepwater Port Refunding RB First State Series 1992A
3.92%, 01/03/07 (a)(b)
10,000 10,000

Louisiana State University and Agricultural and Mechanical College

Auxiliary RB Series 2006
3.94%, 01/04/07 (a)(b)(c)
9,240 9,240

New Orleans

GO Refunding Bonds Series 2005
3.96%, 01/04/07 (a)(b)(c)(d)
7,940 7,940

New Orleans Aviation Board

Refunding Bonds Series 1993B
3.97%, 01/03/07 (a)(b)(c)
4,220 4,220

New Orleans IDB

M/F Housing RB (3700 Orleans) Series 2000
4.00%, 01/04/07 (a)(b)
29,000 29,000

St James Parish

Pollution Control Refunding RB (Texaco) Series 1988A
3.61%, 02/13/07
59,030 59,030

Pollution Control Refunding RB (Texaco) Series 1988B
3.61%, 02/13/07
39,030 39,030

353,899

Maine 0.6%

Maine Finance Auth

RB (Jackson Laboratory) Series 2002
3.96%, 01/04/07 (a)(b)
5,465 5,465

Solid Waste Disposal RB (Casella Waste Systems Inc) Series 2005
3.95%, 01/04/07 (a)(b)
12,500 12,500

Maine Health and Educational Facilities Auth

RB Series 2006F
3.94%, 01/04/07 (a)(b)(c)(d)
15,155 15,155

Maine Housing Auth

General Housing Draw Down Bonds Series 2005A
3.96%, 01/04/07 (a)(c)(d)
2,920 2,920

General Housing Draw Down Bonds Series 2005B
3.98%, 01/04/07 (a)(c)(d)
10,430 10,430

Mortgage Purchase Bonds Series 2002F2
3.98%, 01/04/07 (a)(c)(d)
3,085 3,085

Mortgage Purchase Bonds Series 2006H
3.62%, 12/17/07 (a)
30,000 30,000

79,555

Maryland 1.0%

Baltimore

Convention Center Hotel RB Sr Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
20,120 20,120

Project RB (Wastewater) Series 2005B
3.95%, 01/04/07 (a)(b)(c)
14,135 14,135

Howard Cnty

Consolidated Public Improvement CP BAN Series D
3.52%, 03/05/07 (c)
15,500 15,500

Maryland Community Development Administration

S/F Program Bonds Third Series 1999
4.06%, 01/04/07 (a)(c)(d)
31,215 31,215

Maryland Economic Development Corp

IDRB (Dixon Valve and Coupling Co)
Series 1998
4.02%, 01/03/07 (a)(b)
950 950

Maryland Energy Financing Administration

Limited Obligation Local District Cooling Facilities RB (Comfort Link) Series 2001
3.97%, 01/03/07 (a)(b)
10,000 10,000

Maryland Health and Higher Educational Facilities Auth

Project and Refunding RB (Mercy Center) Series 1996
3.94%, 01/04/07 (a)(b)(c)(d)
18,185 18,185

RB (Johns Hopkins University) Series 2002A
3.95%, 01/04/07 (a)(c)
15,185 15,185

Montgomery Cnty

Consolidated Public Improvement BAN Series 2006B
3.95%, 01/02/07 (a)(c)
10,000 10,000

135,290

Massachusetts 2.1%

Haverhill

State Qualified BAN
3.62%, 03/30/07
1,865 1,869

Massachusetts

GO Bonds Consolidated Loan Series 2000C
3.93%, 01/04/07 (a)(c)(d)
1,500 1,500

GO Bonds Consolidated Loan Series 2001D
3.94%, 01/04/07 (a)(b)(c)(d)
2,785 2,785

GO Bonds Consolidated Loan Series 2005C
3.95%, 01/04/07 (a)(b)(c)(d)
5,000 5,000

GO Bonds Consolidated Loan Series 2006B
3.96%, 01/02/07 (a)(c)
13,600 13,600

GO Bonds Consolidated Loan Series 2006D
3.93%, 01/04/07 (a)(c)(d)
8,810 8,810

3.94%, 01/04/07 (a)(c)
8,650 8,650

See financial notes 23

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

GO Bonds Consolidated Loan Series 2006E
3.95%, 01/04/07 (a)(b)(c)
5,500 5,500

GO Refunding Bonds Series 1998B
3.88%, 01/04/07 (a)(c)
19,500 19,500

Lease RB (Route 3 North Transportation Improvements) Series 2002B
3.89%, 01/03/07 (a)(b)(c)
1,600 1,600

Special Obligation Dedicated Tax RB Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
23,800 23,800

Special Obligation Dedicated Tax Refunding RB Series 2005
3.93%, 01/04/07 (a)(b)(c)(d)
2,325 2,325

Massachusetts Bay Transportation Auth

Assessment Bonds Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
6,500 6,500

Sr Sales Tax Bonds Series 2005A
3.93%, 01/04/07 (a)(c)
10,700 10,700

Sr Sales Tax Bonds Series 2006A
3.94%, 01/04/07 (a)(c)
4,200 4,200

Massachusetts Development Finance Agency

M/F Housing Refunding RB (Kensington at Chelmsford) Series 2002
3.99%, 01/04/07 (a)(b)
250 250

RB (Berkshire School) Series 2001
3.93%, 01/04/07 (a)(b)
1,000 1,000

RB (Harvard University) Series 2006B1
3.87%, 01/02/07 (a)
4,000 4,000

Massachusetts Health and Educational Facilities Auth

RB (Baystate Medical Center) Series D
3.94%, 01/04/07 (a)(b)(c)(d)
10,823 10,823

RB (Massachusetts Institute of Technology) Series K
3.94%, 01/04/07 (a)(c)(d)
6,710 6,710

RB (Winchester Hospital) Series D
3.94%, 01/04/07 (a)(b)(c)(d)
12,027 12,027

RB (Worcester City Campus Corp) Series 2005D
3.93%, 01/04/07 (a)(b)(c)(d)
4,755 4,755

Revenue Notes (Harvard University) Series EE
3.60%, 02/07/07
18,000 18,000

Massachusetts HFA

Housing Bonds Series 2003S
4.09%, 01/03/07 (a)(c)(d)
4,000 4,000

S/F Housing RB Series 122
3.96%, 01/04/07 (a)(c)
10,525 10,525

Massachusetts Port Auth

RB Series 2005 A&C
3.95%, 01/04/07 (a)(b)(c)(d)
6,905 6,905

Massachusetts School Building Auth

Dedicated Sales Tax Bonds Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
13,300 13,300

Massachusetts State College Building Auth

RB Series 2006A
3.99%, 01/03/07 (a)(b)(c)(d)
5,700 5,700

Massachusetts Turnpike Auth

Subordinate RB (Metropolitan Highway System) Series 1999A
3.94%, 01/04/07 (a)(b)(c)(d)
7,110 7,110

Massachusetts Water Pollution Abatement Trust

Pool Program Refunding Bonds Series 2006
3.93%, 01/04/07 (a)(c)
1,000 1,000

RB Subordinate Series 1999A
3.94%, 01/03/07 (a)(c)(d)
15,000 15,000

Massachusetts Water Resources Auth

CP Notes Series 1994
3.55%, 03/06/07 (b)
23,800 23,800

3.61%, 03/06/07 (b)
19,000 19,000

General Revenue Refunding Bonds Series 2005B
3.93%, 01/04/07 (a)(b)(c)
4,435 4,435

Salem

BAN
3.34%, 01/11/07
6,000 6,001

Weston

BAN
3.28%, 02/09/07
3,000 3,004

293,684

Michigan 3.3%

Detroit

Sewage Disposal System RB Series 1999A
3.96%, 01/04/07 (a)(b)(c)(d)
34,650 34,650

Sewage Disposal System Second Lien RB Series 2001B
3.99%, 01/04/07 (a)(b)(c)(d)
4,260 4,260

Detroit SD

School Building and Site Improvement Bonds (Unlimited Tax GO) Series 2001A
3.94%, 01/04/07 (a)(b)(c)(d)
83,485 83,485

School Building and Site Improvement Bonds Series 2001A
3.99%, 01/04/07 (a)(b)(c)(d)
4,620 4,620

School Building and Site Improvement Refunding Bonds (Unlimited Tax GO) Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
10,895 10,895

3.95%, 01/04/07 (a)(b)(c)
3,580 3,580

School Building and Site Improvement Refunding Bonds Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
8,500 8,500

24 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Detroit Sewage Disposal System

Refunding Sr Lien RB Series 2006D
3.95%, 01/04/07 (a)(b)(c)(d)
27,500 27,500

Sr Lien Refunding RB Series 2003A
3.95%, 01/03/07 (a)(b)(c)(d)
15,145 15,145

Detroit Water Supply

Refunding RB Second Lien Series 2006C
3.95%, 01/04/07 (a)(b)(c)
6,895 6,895

System Revenue Sr Lien Bonds Series 2006A
3.95%, 01/04/07 (a)(b)(c)
12,995 12,995

3.98%, 01/04/07 (a)(b)(c)
17,000 17,000

Michigan Higher Education Facilities Auth

Limited Obligation Refunding RB (Hope College) Series 2004
3.93%, 01/04/07 (a)(b)
3,730 3,730

Michigan Job Development Auth

Limited Obligation RB (Frankenmuth Bavarian Inn Motor Lodge) Series 1985
3.75%, 01/02/07 (a)(b)
7,100 7,100

Michigan State Building Auth

CP Notes Series 5
3.55%, 01/04/07 (b)
15,000 15,000

Refunding RB (Facilities Program) Series 2005I
3.93%, 01/04/07 (a)(b)(c)
4,670 4,670

Refunding RB (Facilities Program) Series 2006-1A
3.95%, 01/04/07 (a)(b)(c)(d)
4,735 4,735

3.97%, 01/04/07 (a)(b)(c)(d)
3,200 3,200

Refunding RB Series 2006IA
3.97%, 01/04/07 (a)(b)(c)
8,400 8,400

Michigan State Hospital Financing Auth

Hospital Refunding RB (Henry Ford Health System) Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
1,670 1,670

Hospital Refunding RB (Henry Ford Health System) Series 2006B
3.90%, 01/03/07 (a)(b)
10,000 10,000

Hospital Refunding RB (Henry Ford Health System) Series 2006C
3.90%, 01/03/07 (a)(b)
15,000 15,000

RB (Ascension Health Credit Group) Series 1999B3
3.88%, 01/03/07 (a)
36,300 36,300

Michigan Strategic Fund

Limited Obligation RB (American Cancer Society) Series 2000
3.98%, 01/04/07 (a)(b)
3,715 3,715

Limited Obligation RB (EPI Printers) Series 1997
4.07%, 01/04/07 (a)(b)
240 240

Limited Obligation RB (Mans) Series 1998B
4.07%, 01/04/07 (a)(b)
455 455

Limited Obligation RB (United Machining) Series 1998
4.07%, 01/04/07 (a)(b)
4,000 4,000

Limited Obligation Refunding RB (Detroit Edison Co) Series 1999C
3.98%, 01/04/07 (a)(b)(c)(d)
9,245 9,245

Limited Obligation Refunding RB (Detroit Edison Co) Series 2003A
3.98%, 01/04/07 (a)(b)(c)(d)
5,995 5,995

Oakland Cnty

Limited Obligation RB (Husky Envelope Products) Series 1999
4.07%, 01/04/07 (a)(b)
1,580 1,580

University of Michigan Health System

RB Series 2005A
3.90%, 01/02/07 (a)
18,592 18,592

Wayne Cnty

Airport Jr Lien RB (Detroit Metropolitan Wayne Cnty Airport) Series 2001
3.96%, 01/04/07 (a)(b)(c)
1,000 1,000

Airport Refunding RB (Detroit Metropolitan Wayne Cnty Airport) Series 1996B
3.96%, 01/03/07 (a)(b)(c)
40,190 40,190

Wayne Cnty Airport Auth

Airport RB (Detroit Metropolitan Wayne Cnty Airport) Series 2005
3.98%, 01/04/07 (a)(b)(c)(d)
22,850 22,850

RB (Detroit Metropolitan Airport) Series 2005
3.98%, 01/04/07 (a)(b)(c)(d)
2,750 2,750

RB Series 2005
3.99%, 01/04/07 (a)(b)(c)(d)
3,640 3,640

453,582

Minnesota 1.3%

Bloomington Port Auth

Special Tax Refunding RB (Mall of America) Series 1999B
3.96%, 01/04/07 (a)(b)(c)
19,400 19,400

Burnsville

M/F Housing Refunding RB (Southwind Apts) Series 2004
3.92%, 01/04/07 (a)(b)
8,350 8,350

Eden Prairie

M/F Housing RB (Eden Prairie Leased Housing Associates I) Series 2003A
4.01%, 01/05/07 (a)(b)
6,000 6,000

Hennepin Cnty Housing and Redevelopment Auth

M/F Housing Refunding RB (Stone Arch Apts) Series 2002
3.97%, 01/04/07 (a)(b)(d)
2,800 2,800

See financial notes 25

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Inver Grove Heights

Sr Housing Refunding RB (PHM/Inver Grove, Inc) Series 2005
3.92%, 01/04/07 (a)(b)
6,000 6,000

Mendota Heights

Refunding IDRB (Dakota Business Plaza) Series 2000
4.11%, 01/04/07 (a)(b)
2,300 2,300

Minneapolis-St Paul Metropolitan Airports Commission

RB Series 2000B
3.98%, 01/04/07 (a)(b)(c)(d)
5,225 5,225

Subordinate Refunding RB Series 2005B
3.98%, 01/04/07 (a)(b)(c)(d)
5,960 5,960

Minnesota

GO Series 2004
3.94%, 01/04/07 (a)(c)
10,690 10,690

Tax and Aid Anticipation Borrowing Program
3.59%, 09/05/07
27,000 27,160

Minnesota Agricultural and Economic Development Board

RB (Evangelical Lutheran Good Samaritan Society) Series 1996
3.96%, 01/04/07 (a)(b)
7,200 7,200

Minnesota HFA

Residential Housing Finance Bonds Series 2003B
3.98%, 01/04/07 (a)(c)
6,000 6,000

Residential Housing Finance Bonds Series 2004G
3.97%, 01/04/07 (a)(c)
17,005 17,005

Minnesota Higher Education Facilities Auth

RB (Trustees of the Hamline University of Minnesota) Series Six-E1
3.93%, 01/04/07 (a)(b)
2,590 2,590

RB (Trustees of the Hamline University of Minnesota) Series Six-E2
3.93%, 01/04/07 (a)(b)
4,000 4,000

Rochester

Health Care Facilities RB (Mayo Foundation) Series 1992C
3.60%, 02/08/07
20,200 20,200

St Louis Park

M/F Housing RB (At The Park) Series 2002A
4.05%, 01/05/07 (a)(b)
3,300 3,300

M/F Housing Refunding RB (Knollwood Place Apts) Series 2005
3.92%, 01/04/07 (a)(b)
5,650 5,650

St Paul Housing and Redevelopment Auth

District Heating RB Series 1999D
3.96%, 01/05/07 (a)(b)
2,920 2,920

Western Minnesota Municipal Power Agency

Power Supply RB Series 2006A
3.94%, 01/04/07 (a)(b)(c)(d)
13,970 13,970

176,720

Mississippi 0.9%

Mississippi

GO Capital Improvements Bonds Series 2003E
3.93%, 01/03/07 (a)(c)
14,385 14,385

GO Refunding Bonds Series 2001
3.96%, 01/04/07 (a)(c)(d)
14,880 14,880

Mississippi Business Finance Corp

IDRB (Electric Mills Wood Preserving) Series 1999
4.06%, 01/04/07 (a)(b)
5,000 5,000

IDRB (VC Regional Assembly and Manufacturing) Series 2003
3.97%, 01/03/07 (a)(b)
9,210 9,210

Mississippi Development Bank

Special Obligation Bonds (Capital Projects and Equipment Acquisition) Series 2001A
4.03%, 01/03/07 (a)(b)(c)(d)
16,380 16,380

Special Obligation Bonds (Jackson GO Capital City Convention Center) Series 2006
3.94%, 01/04/07 (a)(b)(c)
31,365 31,365

Special Obligation Bonds (Madison Cnty Highway Construction) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
18,410 18,410

Mississippi Home Corp

S/F Mortgage RB Series 2002A
3.98%, 01/04/07 (a)(b)(c)(d)
3,970 3,970

S/F Mortgage RB Series 2002C2
3.98%, 01/04/07 (a)(b)(c)(d)
4,775 4,775

118,375

Missouri 1.0%

Jackson Cnty

Special Obligation Bonds (Harry S. Truman Sports Complex) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
25,300 25,300

Missouri Board of Public Buildings

Special Obligation Bonds Series 2006A
3.97%, 01/04/07 (a)(c)
7,300 7,300

Missouri Development Finance Board

IDRB (Milbank Manufacturing Co) Series 1997
4.02%, 01/03/07 (a)(b)
3,000 3,000

Missouri Higher Education Loan Auth

Student Loan RB Sr Series 2005A
3.95%, 01/04/07 (a)(b)(c)
9,000 9,000

Missouri Highway and Transportation Commission

First Lien State Road Bonds Series 2006 A&B
3.95%, 01/04/07 (a)(c)(d)
6,565 6,565

Missouri Housing Development Commission

S/F Mortgage RB Series 2004A1
3.98%, 01/04/07 (a)(c)
3,975 3,975

26 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Missouri Public Utilities Commission

Interim Construction Notes Series 2006
3.62%, 09/15/07
6,520 6,559

Springfield

Public Utility RB Series 2006
3.94%, 01/04/07 (a)(b)(c)
24,595 24,595

3.95%, 01/04/07 (a)(b)(c)
10,000 10,000

3.97%, 01/04/07 (a)(b)(c)
6,800 6,800

St Charles Cnty IDA

M/F Housing Refunding RB (Time Centre Apts Phase I) Series 2004A
3.96%, 01/04/07 (a)(b)
15,600 15,600

M/F Housing Refunding RB (Time Centre Apts Phase II) Series 2004B
4.00%, 01/04/07 (a)(b)
4,500 4,500

St Louis IDA

IDRB (Kessler Container) Series 1997A
3.95%, 01/04/07 (a)(b)
1,700 1,700

M/F Housing Refunding RB (Merchandise Mart Apts) Series 2005A
4.00%, 01/04/07 (a)(b)
10,475 10,475

Washington IDA

IDRB (Pauwels Transformers) Series 1995
4.22%, 01/04/07 (a)(b)
2,400 2,400

137,769

Montana 0.3%

Montana State Health Facility Auth

Hospital RB (Deaconess-Billings Clinic Health System) Series 1994
4.03%, 01/03/07 (a)(b)(c)
26,375 26,375

4.03%, 01/03/07 (a)(b)(c)(d)
10,705 10,705

37,080

Nebraska 0.7%

American Public Energy Agency

Gas Supply RB Series 2005A
3.88%, 01/04/07 (a)(c)
5,517 5,517

Nebraska Investment Finance Auth

S/F Housing RB Series 1998G
4.06%, 01/04/07 (a)(c)(d)
10,735 10,735

Nebraska Public Power District

General RB Series 2005 B1&C
3.95%, 01/04/07 (a)(b)(c)
15,655 15,655

General RB Series 2006A
3.60%, 06/01/07 (a)(b)(c)(d)
12,515 12,515

Omaha Public Power District

Electric System Subordinated RB Series 2006B
3.95%, 01/04/07 (a)(b)(c)
5,085 5,085

Separate Electric System RB Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
34,390 34,390

Stanton Cnty

IDRB (Nucor Corp) Series 1996
4.00%, 01/03/07 (a)
19,300 19,300

103,197

Nevada 2.6%

Clark Cnty

Airport System Subordinate Lien RB Series 2005D2
3.95%, 01/03/07 (a)(b)(c)
4,780 4,780

Airport System Subordinate Lien RB Series 2005D3
3.93%, 01/03/07 (a)(b)(c)
7,280 7,280

Economic Development RB (UNLV Foundation) Series 1999
3.91%, 01/04/07 (a)(b)
270 270

GO (Limited Tax) Bank Bonds Series 2006
3.60%, 01/04/07 (a)(b)(c)(d)
26,475 26,475

3.97%, 01/04/07 (a)(b)(c)
8,970 8,970

GO (Limited Tax) Bank Refunding Bonds Series 2006
3.95%, 01/04/07 (a)(b)(c)
5,235 5,235

GO Bank Refunding Bonds Series 2006
3.97%, 01/04/07 (a)(b)(c)
9,955 9,955

IDRB (Southwest Gas Corp) Series 2003A
4.00%, 01/03/07 (a)(b)
12,500 12,500

IDRB (Southwest Gas Corp) Series 2004A
3.98%, 01/04/07 (a)(b)(c)(d)
3,168 3,167

Clark Cnty SD

GO (Limited Tax) Building Bonds Series 2001F
3.94%, 01/04/07 (a)(b)(c)(d)
21,715 21,715

GO (Limited Tax) Building Bonds Series 2005C
3.95%, 01/04/07 (a)(b)(c)(d)
15,970 15,970

Las Vegas

GO Various Purpose Bonds Series 2006B
3.94%, 01/04/07 (a)(b)(c)
8,305 8,305

Las Vegas Convention and Visitors Auth

Refunding RB Series 2005
3.97%, 01/04/07 (a)(b)(c)(d)
4,145 4,145

Las Vegas Valley Water District

GO (Limited Tax) Refunding Bonds Series 2005A
3.97%, 01/04/07 (a)(b)(c)
10,090 10,090

GO (Limited Tax) Water CP Series 2004 A&B
3.50%, 02/06/07 (c)
37,000 37,000

3.53%, 03/07/07 (c)
26,500 26,500

GO (Limited Tax) Water Improvement Bonds Series 2006A
3.94%, 01/04/07 (a)(b)(c)
28,145 28,145

See financial notes 27

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Nevada

GO Water Refunding Bonds Series 2006D
3.95%, 01/04/07 (a)(b)(c)(d)
8,860 8,860

Nevada Housing Division

M/F Housing RB (Apache Pines Apts) Series 1999A
3.95%, 01/04/07 (a)(b)
7,415 7,415

M/F Housing RB (Banbridge Apts) Series 2000A
3.95%, 01/04/07 (a)(b)
3,960 3,960

M/F Housing RB (Home Suites) Series 1989A
3.98%, 01/03/07 (a)(b)
4,500 4,500

M/F Housing RB (Silver Pines Apts) Series 2002A
3.98%, 01/04/07 (a)(b)
5,500 5,500

M/F Housing Refunding RB (Oakmont) Series 2002
3.95%, 01/04/07 (a)(b)
4,350 4,350

Nevada System of Higher Education

University RB Series 2005B
3.95%, 01/04/07 (a)(b)(c)(d)
10,690 10,690

3.97%, 01/04/07 (a)(b)(c)(d)
5,275 5,275

North Las Vegas

GO Building Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
30,720 30,720

Truckee Meadows Water Auth

Water Refunding RB Series 2006
3.95%, 01/04/07 (a)(b)(c)
9,300 9,300

Water Revenue CP Series 2006B
3.53%, 03/08/07 (b)
5,300 5,300

Washoe Cnty

GO Refunding Bonds (Convention Center) Series 2001A
3.96%, 01/04/07 (a)(b)(c)(d)
26,000 26,000

352,372

New Hampshire 0.4%

New Hampshire Business Finance Auth

Solid Waste Disposal RB (Lonza Biologics) Series 2003
4.00%, 01/04/07 (a)(b)
30,000 30,000

New Hampshire Health and Educational Facilities Auth

RB (Easter Seals New Hampshire) Series 2004A
3.96%, 01/04/07 (a)(b)
6,060 6,060

RB (Frisbie Memorial Hospital) Series 2005
3.94%, 01/04/07 (a)(b)
4,355 4,355

RB (Riverwoods) Series 2003
3.93%, 01/04/07 (a)(b)
3,085 3,085

New Hampshire HFA

S/F Mortgage Acquisition RB Series 1997C
4.06%, 01/04/07 (a)(b)(c)(d)
1,125 1,125

S/F Mortgage Acquisition RB Series 1998B
4.06%, 01/04/07 (a)(b)(c)(d)
9,730 9,730

54,355

New Jersey 0.4%

Delaware River Port Auth

RB Series 1999
3.94%, 01/04/07 (a)(b)(c)(d)
1,100 1,100

Gloucester Cnty

Pollution Control Refunding RB (Exxon Mobil) Series 2003
3.76%, 01/02/07 (a)
2,600 2,600

New Jersey Transit Corp

Subordinated COP Series 2005A
3.94%, 01/04/07 (a)(b)(c)
8,545 8,545

New Jersey Transportation Trust Fund Auth

Transportation System Bonds Series 2005D
3.95%, 01/04/07 (a)(b)(c)(d)
21,125 21,125

New Jersey Turnpike Auth

RB Series 2000A
3.95%, 01/04/07 (a)(b)(c)(d)
1,000 1,000

RB Series 2004C2
3.93%, 01/04/07 (a)(b)(c)(d)
19,325 19,325

Vernon

BAN
3.35%, 01/12/07
3,978 3,979

57,674

New Mexico 1.7%

Farmington

Hospital RB (San Juan Regional Medical Center) Series 2004B
3.94%, 01/04/07 (a)(b)
5,000 5,000

New Mexico

2006-2007 TRAN Series 2006
3.75%, 06/29/07
111,250 111,644

2006-2007 TRAN Series 2006A
3.50%, 06/29/07
100,000 100,363

Santa Fe

Tax Subordinate Lien Wastewater System RB Series 1997B
3.96%, 01/03/07 (a)(b)
16,400 16,400

233,407

New York 7.6%

Jay Street Development Corp

Courts Facility Lease RB Fiscal 2004 Series A4
3.92%, 01/02/07 (a)(b)
5,880 5,880

Long Island Power Auth

Electric System General RB Series 2006D
3.95%, 01/04/07 (a)(b)(c)(d)
10,385 10,385

Electric System RB Series 1998A
3.96%, 01/04/07 (a)(b)(c)(d)
10,970 10,970

Electric System Subordinated RB Series 2001-2B
3.92%, 01/02/07 (a)(b)
7,550 7,550

28 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Metropolitan Transportation Auth

Dedicated Tax Fund Bonds Series 2006B
3.95%, 01/04/07 (a)(b)(c)
26,230 26,230

RB Series 2005B
3.96%, 01/04/07 (a)(b)(c)(d)
19,885 19,885

RB Series 2005G2
3.88%, 01/02/07 (a)(b)
6,600 6,600

New York City

GO Bonds Fiscal 1994 Series A7
3.92%, 01/02/07 (a)(b)
6,700 6,700

GO Bonds Fiscal 1998 Series D
3.94%, 01/03/07 (a)(b)(c)(d)
43,825 43,825

GO Bonds Fiscal 2002 Series A
3.96%, 01/04/07 (a)(b)(c)(d)
15,000 15,000

GO Bonds Fiscal 2003 Series G2
3.86%, 01/03/07 (a)(b)
20,815 20,815

GO Bonds Fiscal 2004 Series F
3.97%, 01/04/07 (a)(b)(c)(d)
170,000 170,000

GO Bonds Fiscal 2004 Series H2
3.84%, 01/03/07 (a)(b)
1,000 1,000

GO Bonds Fiscal 2004 Series H7
3.92%, 01/02/07 (a)(b)
18,000 18,000

GO Bonds Fiscal 2006 Series I5
3.90%, 01/02/07 (a)(b)
400 400

GO Bonds Fiscal 2006 Series I6
3.90%, 01/02/07 (a)(b)
2,000 2,000

GO Bonds Fiscal 2006 Series I8
3.97%, 01/02/07 (a)(b)
17,635 17,635

GO Bonds Fiscal 2006 Series J1
3.95%, 01/04/07 (a)(b)(c)
8,005 8,005

New York City Health and Hospitals Corp

Health System Bonds Series 1999A
3.95%, 01/04/07 (a)(b)(c)(d)
8,000 8,000

New York City IDA

Pilot RB (Yankee Stadium) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
17,500 17,500

New York City Municipal Water Finance Auth

TECP Series 6
3.60%, 01/04/07 (c)
40,000 40,000

3.57%, 01/11/07 (c)
78,000 78,000

Water and Sewer System RB Series 1993C
3.88%, 01/02/07 (a)(b)(c)
20,000 20,000

Water and Sewer System RB Series 1994G
3.92%, 01/02/07 (a)(b)(c)
5,000 5,000

Water and Sewer System RB Series 1995A
3.90%, 01/02/07 (a)(b)(c)
7,600 7,600

Water and Sewer System RB Series 2002 & 2003A
3.94%, 01/04/07 (a)(c)(d)
6,500 6,500

Water and Sewer System RB Series 2002G
3.94%, 01/04/07 (a)(b)(c)(d)
18,545 18,545

Water and Sewer System RB Series 2003F2
3.97%, 01/02/07 (a)(c)
3,000 3,000

Water and Sewer System RB Series 2005D
3.95%, 01/04/07 (a)(b)(c)(d)
1,290 1,290

Water and Sewer System RB Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
4,825 4,825

Water and Sewer System Refunding RB Series 2005D
3.95%, 01/04/07 (a)(c)(d)
18,800 18,800

New York City Transitional Finance Auth

Future Tax Secured Bonds Fiscal 2001 Series B
3.90%, 01/02/07 (a)(c)
13,600 13,600

General Capital Purpose BAN Fiscal 2007 Series 1
3.54%, 06/29/07
65,000 65,224

Recovery Bonds Fiscal 2003 Series 2A
3.90%, 01/02/07 (a)(c)
12,040 12,040

New York Liberty Development Corp

RB (Goldman Sachs Headquarters) Series 2005
3.95%, 01/04/07 (a)(c)(d)
9,300 9,300

New York State Dormitory Auth

Court Facilities Lease RB (New York City) Series 2005A
3.60%, 05/01/07 (a)(b)(c)(d)
17,710 17,710

Hospital Insured Mortgage RB Series 2004A
3.95%, 01/04/07 (a)(b)(c)
33,130 33,130

RB (State University Educational Facilities) Series 2000B
3.93%, 01/04/07 (a)(b)(c)(d)
10,000 10,000

State Personal Income Tax RB (Education) Series 2006C
3.93%, 01/04/07 (a)(c)(d)
4,322 4,322

New York State Environmental Facilities Corp

Clean Water and Drinking Water Revolving Funds RB Series 2001C & 2002B
3.95%, 01/04/07 (a)(c)
36,615 36,615

New York State HFA

RB (250 W 50th St) Series 1997A
3.93%, 01/03/07 (a)(b)
1,400 1,400

RB (345 E 94th St) Series 1998A
3.91%, 01/03/07 (a)(b)
565 565

New York State Mortgage Agency

Mortgage RB Series 109
3.96%, 01/04/07 (a)(c)(d)
25,160 25,160

S/F Mortgage RB Series 92
3.94%, 01/04/07 (a)(c)(d)
2,495 2,495

New York State Power Auth

CP Series 1
3.50%, 03/06/07 (c)
20,390 20,390

New York State Thruway Auth

Bonds Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
26,650 26,650

General RB Series 2005F
3.95%, 01/04/07 (a)(b)(c)(d)
25,605 25,605

General RB Series F
3.95%, 01/04/07 (a)(b)(c)(d)
21,935 21,935

See financial notes 29

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

New York State Urban Development Corp

State Personal Income Tax RB Series 2005B
3.95%, 01/04/07 (a)(c)(d)
8,000 8,000

Port Auth of New York and New Jersey

Consolidated Bonds 135th Series
3.96%, 01/04/07 (a)(c)(d)
100 100

Consolidated Bonds 139th Series
3.96%, 01/04/07 (a)(b)(c)(d)
9,940 9,940

Consolidated Bonds 140th Series
3.95%, 01/04/07 (a)(c)
9,570 9,570

Consolidated Bonds 141st Series
3.96%, 01/04/07 (a)(b)(c)(d)
6,555 6,555

Consolidated Bonds 144th Series
3.95%, 01/04/07 (a)(c)
5,000 5,000

Rockland Cnty

RAN Series 2006
3.51%, 03/22/07
10,000 10,021

Sales Tax Asset Receivable Corp.

RB Fiscal 2005 Series A
3.95%, 01/04/07 (a)(b)(c)(d)
6,530 6,530

Smithtown Central SD

2006-2007 TAN
3.50%, 06/28/07
33,000 33,079

Triborough Bridge and Tunnel Auth

General Refunding RB Series 2002B
3.95%, 01/04/07 (a)(c)(d)
9,995 9,995

1,044,871

North Carolina 1.3%

Durham Housing Auth

M/F Housing RB (Pendleton Townhomes) Series 2001
3.97%, 01/03/07 (a)(b)
5,320 5,320

Forsyth Cnty

RB (Plymouth Printing Co) Series 1998
4.02%, 01/03/07 (a)(b)
590 590

Guilford Cnty Industrial Facilities and Pollution Control Financing Auth

IDRB (Metalcraft of Mayville SE Manufacturing) Series 1997
3.95%, 01/04/07 (a)(b)
900 900

Hertford Cnty Industrial Facilities and Pollution Control Financing Auth

IDRB (Nucor Corp) Series 2000A
4.02%, 01/03/07 (a)
26,500 26,500

Johnston Cnty Industrial Facilities and Pollution Control Financing Auth

IDRB (Flanders Corp) Series 1998
3.95%, 01/03/07 (a)(b)
4,500 4,500

Mecklenburg Cnty

M/F Housing RB (Sycamore Green Apts) Series 2001
3.95%, 01/04/07 (a)(b)
8,240 8,240

North Carolina Capital Facilities Finance Agency

Solid Waste Disposal RB (Duke Energy Carolinas) Series 2006A
3.94%, 01/04/07 (a)(b)
16,000 16,000

North Carolina HFA

Homeownership RB Series 1A
3.99%, 01/02/07 (a)(c)(d)
9,075 9,075

Homeownership RB Series 8A and 17A
3.98%, 01/04/07 (a)(c)
3,140 3,140

North Carolina State Education Assistance Auth

Student Loan RB Series 2005A1
3.95%, 01/04/07 (a)(b)(c)
20,000 20,000

Student Loan RB Series 2005A3
3.95%, 01/04/07 (a)(b)(c)
23,500 23,500

Raleigh Utilities

Combined Enterprise System RB Series 2006A
3.95%, 01/04/07 (a)(c)
6,400 6,400

Rowan Cnty Industrial Facilities and Pollution Control Financing Auth

IDRB (Taylor Clay Products) Series 1999
3.97%, 01/04/07 (a)(b)
2,600 2,600

Sampson Cnty

COP Series 2006
3.94%, 01/04/07 (a)(b)(c)
12,520 12,520

Sampson Cnty Industrial Facilities and Pollution Control Finance Auth

IDRB (Crumpler Plastic Pipe) Series 1999
4.02%, 01/04/07 (a)(b)
1,500 1,500

University of North Carolina at Chapel Hill

General Revenue and Refunding RB Series 2005A
3.95%, 01/04/07 (a)(c)
4,993 4,993

Wake Cnty

GO CP BAN
3.59%, 02/05/07 (c)
8,310 8,310

3.70%, 04/16/07 (c)
11,750 11,750

Wake Cnty Housing Auth

M/F Housing RB (Walnut Ridge Apts) Series 2000
3.97%, 01/03/07 (a)(b)
9,740 9,740

Wilmington Housing Auth

M/F Housing RB (Garden Lakes Estates) Series 1999
3.97%, 01/03/07 (a)(b)
6,755 6,755

182,333

North Dakota 0.4%

North Dakota HFA

Home Mortgage Finance Program Series 2004B
3.97%, 01/03/07 (a)(c)
22,545 22,545

Home Mortgage Finance Program Series 2005A
3.97%, 01/03/07 (a)(c)
22,100 22,100

Home Mortgage Finance Program Series 2005C
3.97%, 01/03/07 (a)(c)
12,000 12,000

30 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Richland Cnty

Solid Waste Disposal RB (Minn-Dak Farmers Coop) Series 1996A
4.12%, 01/04/07 (a)(b)
4,470 4,470

Solid Waste Disposal RB (Minn-Dak Farmers Coop) Series 1996B
4.12%, 01/04/07 (a)(b)
410 410

61,525

Ohio 1.5%

Akron, Bath and Copley Joint Township Hospital District

RB (Summa Health System) Series 2004B
3.93%, 01/04/07 (a)(b)
7,415 7,415

Cincinnati SD

Classroom Facilities Construction and Improvement Refunding Bonds Series 2006
3.93%, 01/04/07 (a)(b)(c)
46,855 46,855

3.97%, 01/04/07 (a)(b)(c)
6,650 6,650

Cleveland

Airport System RB Series 2000C
3.94%, 01/04/07 (a)(b)(c)(d)
32,010 32,010

3.95%, 01/04/07 (a)(b)(c)(d)
19,075 19,075

Columbus SD

School Facilities Construction and Improvement Refunding Bonds Series 2006
3.97%, 01/04/07 (a)(b)(c)
6,665 6,665

Cuyahoga Cnty

Economic Development RB (Hathaway Brown School) Series 1999
3.94%, 01/04/07 (a)(b)
12,115 12,115

Franklin Cnty

Hospital RB (The Children’s Hospital) Series 2003
3.91%, 01/04/07 (a)(b)(c)
5,000 5,000

Hamilton Cnty

Sales Tax Refunding Bonds Subordinate Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
32,530 32,530

Ohio

RB (Pooled Financing) Series 2004
3.93%, 01/04/07 (a)(b)
7,980 7,980

Ohio HFA

M/F Refunding RB
(10 Wilmington Place) Series 1991B
3.96%, 01/05/07 (a)(b)(c)
8,945 8,945

Residential Mortgage RB Series 2001C
4.03%, 01/04/07 (a)(c)(d)
4,025 4,025

Ohio Higher Educational Facility Commission

Facility RB (University of Dayton) Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
5,840 5,840

RB (Pooled Financing) Series 2003B
3.93%, 01/04/07 (a)(b)
4,575 4,575

RB (The Cleveland Institute of Music) Series 2005
3.93%, 01/04/07 (a)(b)
5,000 5,000

Rickenbacker Port Auth

Capital Funding RB (OASBO Expanded Asset Pooled Financing) Series 2002A
3.95%, 01/04/07 (a)(b)(c)
5,700 5,700

210,380

Oklahoma 0.6%

Muldrow Public Works Auth

IDRB (OK Foods) Series 1995
4.00%, 01/03/07 (a)(b)
4,000 4,000

Oklahoma Cnty Industrial Auth

RB (National Cowboy Hall of Fame) Series 1999
3.90%, 01/04/07 (a)(b)
905 905

Oklahoma Development Finance Auth

RB (Shawnee Funding) Series 1996
3.97%, 01/03/07 (a)(b)
3,100 3,100

Oklahoma Student Loan Auth

Bonds and Notes Series 1998A
3.95%, 01/03/07 (a)(b)(c)
33,100 33,100

Bonds and Notes Series 2000A4
3.95%, 01/03/07 (a)(b)(c)
20,945 20,945

Bonds and Notes Series 2005A
3.95%, 01/03/07 (a)(b)(c)
15,045 15,045

Payne Cnty Economic Development Auth

Student Housing RB (OSUF Phase III Student Housing) Series 2005
3.93%, 01/04/07 (a)(b)(c)
8,500 8,500

85,595

Oregon 0.3%

Oregon Dept of Transportation

Highway User Tax Revenue Sr Lien Bonds Series 2006A
3.95%, 01/04/07 (a)(c)
3,420 3,420

Oregon Economic Development Commission

RB (Pendleton Flour Mills) Series 1997-182
4.00%, 01/03/07 (a)(b)
2,905 2,905

Oregon Health and Science University

Special RB (OHSU Medical Group) Series 2004A
3.93%, 01/03/07 (a)(b)
8,700 8,700

See financial notes 31

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Oregon Housing and Community Services Dept

Mortgage RB (S/F Mortgage Program) Series 2005F
3.95%, 01/03/07 (a)(c)
13,685 13,685

S/F Mortgage RB Series 2004L
3.95%, 01/03/07 (a)(c)
5,000 5,000

Portland

M/F Housing RB (Village of Lovejoy Fountain) Series 1997
3.99%, 01/03/07 (a)(b)
8,500 8,500

Second Lien Sewer System RB Series 2006B
3.97%, 01/04/07 (a)(b)(c)
3,535 3,535

45,745

Pennsylvania 4.2%

Allegheny Cnty Hospital Development Auth

RB (University of Pittsburgh Medical Center) Series 2005B
4.04%, 01/04/07 (a)(e)
12,767 12,767

RB (UPMC Senior Communities) Series 2003
3.91%, 01/04/07 (a)(b)
6,300 6,300

Allegheny Cnty Port Auth

Special Revenue Transportation Bonds Series 1999
3.93%, 01/04/07 (a)(b)(c)(d)
1,000 1,000

Beaver Cnty IDA

Pollution Control Refunding RB (First Energy Nuclear Generation Corp) Series 2006C
3.91%, 01/02/07 (a)(b)
20,125 20,125

Central Bucks SD

GO Bonds Series 2000A
3.96%, 01/04/07 (a)(b)(c)
1,660 1,660

Dauphin Cnty General Auth

RB (Education and Health Loan) Series 1997
3.96%, 01/04/07 (a)(b)(c)
6,035 6,035

Delaware Cnty IDA

RB (YMCA of Philadelphia) Series 1999
4.02%, 01/03/07 (a)(b)
90 90

Delaware Valley Regional Finance Auth

Local Government RB Series 1986
3.91%, 01/03/07 (a)(b)
10,600 10,600

Local Government RB Series 1998A
3.97%, 01/04/07 (a)(b)(c)(d)
500 500

3.99%, 01/04/07 (a)(b)(c)(d)
13,210 13,210

Erie SD

GO Bonds Series 2001A
3.95%, 01/04/07 (a)(b)(c)(d)
25,695 25,695

Harrisburg Auth

Water Refunding RB Series 2002B
3.96%, 01/04/07 (a)(b)(c)
1,000 1,000

Water Refunding RB Series 2003A
3.96%, 01/04/07 (a)(b)(c)
7,200 7,200

Luzerne Cnty IDA

RB (Methodist Homes) Series 2003
3.95%, 01/03/07 (a)(b)
2,600 2,600

Water Facility Refunding RB (Pennsylvania-American Water Co Water Facilities) Series A
3.98%, 01/04/07 (a)(b)(c)(d)
3,000 3,000

Manheim Township SD

GO Bonds Series 2004
3.93%, 01/04/07 (a)(b)(c)
3,400 3,400

Mercer Cnty

GO Bonds Series 2001
3.95%, 01/04/07 (a)(b)(c)(d)
7,725 7,725

Montgomery Cnty IDA

Pollution Control Refunding RB (Peco Energy Co) Series 1994A
3.60%, 03/15/07 (b)
21,000 21,000

Pollution Control Refunding RB (Peco Energy Co) Series 1999A
3.90%, 01/03/07 (a)(b)
17,600 17,600

School RB (Friends’ Central School) Series 2002
3.91%, 01/04/07 (a)(b)
760 760

Montgomery Cnty Redevelopment Auth

M/F Housing RB (Brookside Manor Apts) Series 2001A
3.90%, 01/04/07 (a)(b)
5,100 5,100

Northhampton Cnty

Cnty Agreement RB Series 2001
3.95%, 01/05/07 (a)(b)(c)(d)
9,995 9,995

Norwin SD

GO Bonds Series 2001A
3.95%, 01/04/07 (a)(b)(c)(d)
11,500 11,500

Pennsylvania

GO Bonds First Series 2003
3.94%, 01/04/07 (a)(b)(c)(d)
3,645 3,645

GO Bonds Second Series 2002
3.94%, 01/04/07 (a)(b)(c)(d)
4,995 4,995

GO Third Refunding Series 2004
3.95%, 01/04/07 (a)(b)(c)
24,620 24,620

Pennsylvania Convention Center Auth

RB Series 1989A
3.94%, 01/04/07 (a)(b)(c)(d)
4,500 4,500

Pennsylvania Economic Development Finance Auth

Exempt Facilities RB (Amtrak) Series 2001B
4.08%, 01/04/07 (a)(b)
2,000 2,000

Pennsylvania Energy Development Auth

RB (B&W Ebensburg) Series 1986
3.95%, 01/03/07 (a)(b)
4,035 4,035

Pennsylvania HFA

S/F Mortgage RB Drawdown Series 2003
3.97%, 01/04/07 (a)(b)(c)(d)
3,200 3,200

S/F Mortgage RB Drawdown Series 2003A
3.97%, 01/04/07 (a)(b)(c)(d)
2,280 2,280

S/F Mortgage RB Series 1999A
3.99%, 01/04/07 (a)(c)(d)
13,420 13,420

32 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Pennsylvania Higher Education Assistance Agency

Student Loan RB Series 1997A
4.00%, 01/03/07 (a)(b)(c)
28,900 28,900

Student Loan RB Series 2000A
4.00%, 01/03/07 (a)(b)(c)
28,075 28,075

Student Loan RB Series 2001A
4.00%, 01/03/07 (a)(b)(c)
21,450 21,450

Student Loan RB Series 2003A1
4.00%, 01/03/07 (a)(b)(c)
7,000 7,000

Student Loan RB Series 2003A2
4.00%, 01/03/07 (a)(b)(c)
38,000 38,000

Pennsylvania Higher Educational Facilities Auth

RB (University of Pennsylvania Health Services) Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
5,990 5,990

RB (University of Pennsylvania) Series 2005C
3.97%, 01/04/07 (a)(c)
4,870 4,870

Pennsylvania Public School Building Auth

Lease RB (Philadelphia SD) Series 2003
3.95%, 01/04/07 (a)(b)(c)(d)
2,658 2,658

RB (Parkland SD) Series 1999D
3.96%, 01/04/07 (a)(b)(c)
14,085 14,085

School RB (Marple Newton SD) Series 2001
3.95%, 01/04/07 (a)(b)(c)(d)
4,965 4,965

Pennsylvania Turnpike Commission

Oil Franchise Tax Subordinated Refunding RB Series 2006B
3.97%, 01/04/07 (a)(b)(c)(d)
6,400 6,400

RB Series 2004A
3.97%, 01/04/07 (a)(b)(c)(d)
12,495 12,495

Philadelphia

GO Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
415 415

3.97%, 01/04/07 (a)(b)(c)(d)
9,665 9,665

TRAN Series 2006-2007 A
3.77%, 06/29/07
18,000 18,062

Philadelphia Gas Works

RB Third Series 2001
3.94%, 01/04/07 (a)(b)(c)(d)
4,295 4,295

Philadelphia IDA

RB (Cultural and Commercial Corridors Program) Series 2006A
3.94%, 01/04/07 (a)(b)(c)(d)
2,000 2,000

RB (Please Touch Museum) Series 2006
3.95%, 01/04/07 (a)(b)(c)
3,125 3,125

RB Series 1998A
3.99%, 01/04/07 (a)(b)(c)(d)
12,710 12,710

Philadelphia SD

TRAN Series Series 2006-07 A
3.78%, 06/29/07 (b)
67,000 67,228

Philadelphia Water and Sewer

Water and Wastewater RB Series 2005A
3.95%, 01/03/07 (a)(b)(c)(d)
10,060 10,060

Reading SD

GO Bonds Series 2003A
3.95%, 01/04/07 (a)(b)(c)(d)
4,225 4,225

Scranton Redevelopment Auth

Guaranteed Lease RB Series 2004
3.96%, 01/04/07 (a)(b)
2,265 2,265

University of Pittsburgh

Pitt Asset Notes-Tax Exempt Higher Education Registered Series 2006
3.70%, 08/24/07
11,000 11,054

Westmoreland Cnty Municipal Auth

Municipal Service RB Series 2005
3.97%, 01/04/07 (a)(b)(c)(d)
4,640 4,640

576,189

Rhode Island 1.0%

Rhode Island Economic Development Corp

Airport RB Series 2005A
3.98%, 01/04/07 (a)(b)(c)(d)
6,180 6,180

Airport Refunding RB Series 2005C
3.95%, 01/04/07 (a)(b)(c)(d)
6,980 6,980

Rhode Island Housing and Mortgage Finance Corp

Homeownership Opportunity Bonds Series 1998-29A
4.06%, 01/04/07 (a)(c)(d)
19,020 19,020

Homeownership Opportunity Bonds Series 52B & 53B
3.98%, 01/04/07 (a)(c)(d)
6,295 6,295

Rhode Island IDA

IDRB (Greystone of Lincoln) Series 2000
4.15%, 01/04/07 (a)(b)
1,100 1,100

Rhode Island Student Loan Auth

RB Series 1995-1
3.96%, 01/03/07 (a)(b)(c)
30,000 30,000

RB Series 1996-1
3.96%, 01/03/07 (a)(b)(c)
19,000 19,000

RB Series 1996-2
3.96%, 01/03/07 (a)(b)(c)
20,000 20,000

RB Series 1996-3
3.96%, 01/03/07 (a)(b)(c)
23,000 23,000

131,575

South Carolina 0.6%

Berkeley Cnty SD

School Building Bonds Series 2002
3.95%, 01/03/07 (a)(b)(c)(d)
7,575 7,575

Florence Cnty Public Facilities Corp

Refunding COP (Law Enforcement and Civic Centers) Series 2003
3.98%, 01/04/07 (a)(b)(c)
22,600 22,600

Greenville IDA

IDRB (Stevens Aviation Technical Services) Series 1997
4.02%, 01/04/07 (a)(b)
3,500 3,500

See financial notes 33

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

South Carolina

GO Research University Infrastructure Bonds Series 2005A
3.97%, 01/04/07 (a)(c)
5,605 5,605

GO State Institution Bonds (University of South Carolina) Series 2006B
3.96%, 01/04/07 (a)(c)
4,100 4,100

South Carolina Housing and Development Auth

M/F Rental Housing RB (Ashley Apts) Series 1999
3.97%, 01/03/07 (a)(b)
3,895 3,895

M/F Rental Housing RB (Piedmont Manor Apts) Series 2000B1
3.97%, 01/03/07 (a)(b)
5,755 5,755

M/F Rental Housing RB (Spartanburg Terrace Apts) Series 2000C1
3.97%, 01/03/07 (a)(b)
1,960 1,960

M/F Rental Housing Refunding RB (Fairway Apts) Series 2001A
3.95%, 01/03/07 (a)(b)
7,735 7,735

South Carolina Jobs Economic Development Auth

RB (Holcim) Series 2003
4.07%, 01/04/07 (a)(b)
6,250 6,250

South Carolina Public Service Auth

Revenue Obligations Series 2006A
3.94%, 01/04/07 (a)(b)(c)(d)
5,990 5,990

South Carolina Transportation Infrastructure Bank

RB Series 2003A
3.95%, 01/04/07 (a)(b)(c)
4,190 4,190

Spartanburg Cnty IDA

Refunding IDRB (Bemis Co) Series 1991
3.97%, 01/04/07 (a)(b)
4,750 4,750

83,905

South Dakota 0.3%

South Dakota Health and Educational Facilities Auth

RB (McKenna Hospital) Series 1994
3.96%, 01/05/07 (a)(b)(c)
26,330 26,330

South Dakota Housing Development Auth

Homeownership Mortgage Bonds Series 2004G
3.95%, 01/03/07 (a)(c)
11,000 11,000

M/F Housing RB (Harmony Heights) Series 2001
4.05%, 01/04/07 (a)(b)
6,500 6,500

43,830

Tennessee 4.6%

Bristol Health and Educational Facilities Board

RB (King College) Series 2001
3.90%, 01/04/07 (a)(b)
6,050 6,050

Carter Cnty IDB

M/F Housing Refunding RB (Willow Run Apts) Series 1990
4.05%, 01/05/07 (a)(b)
6,675 6,675

Chattanooga Health, Education and Housing Facility Board

RB (Baylor School) Series 1996
3.92%, 01/03/07 (a)(b)
1,335 1,335

Clarksville Public Building Auth

Pooled Financing RB (Tennessee Municipal Bond Fund) Series 1997
3.90%, 01/04/07 (a)(b)
3,845 3,845

Pooled Financing RB (Tennessee Municipal Bond Fund) Series 2001
4.00%, 01/02/07 (a)(b)
1,000 1,000

Franklin Cnty IDB

IDRB (Hi-Tech) Series 1997
3.99%, 01/03/07 (a)(b)
2,800 2,800

Grundy Cnty IDB

Limited Obligation RB (Toyo Seat USA Corp) Series 2001
4.12%, 01/04/07 (a)(b)
2,810 2,810

Hendersonville IDB

Refunding IDRB (Betty Machine Co) Series 2001
3.97%, 01/03/07 (a)(b)
3,245 3,245

Jackson Health, Educational and Housing Facility Board

M/F Housing RB (Patrician Terrace Apts) Series 2005
3.97%, 01/04/07 (a)(b)
2,400 2,400

Jackson IDB

Solid Waste Facility Bonds (Ameristeel Corp) Series 1997
3.95%, 01/04/07 (a)(b)
3,800 3,800

McMinn Cnty IDA

Solid Waste Disposal Facilities RB (Bowater) Series 1999
3.97%, 01/04/07 (a)(b)
13,500 13,500

Memphis

Electric System Subordinate RB Series 2003A
3.95%, 01/04/07 (a)(b)(c)(d)
2,800 2,800

Metropolitan Government of Nashville and Davidson Cnty Health and Educational Facilities Board

M/F Housing RB (Burning Tree Apts) Series 2005
3.97%, 01/04/07 (a)(b)
8,700 8,700

M/F Housing RB (Chippington Tower Apts I & II) Series 2005
4.06%, 01/04/07 (a)(b)
13,500 13,500

M/F Housing Refunding RB (Brentwood Oaks Apts) Series 1991
3.95%, 01/04/07 (a)(b)
11,110 11,110

RB (Ensworth School) Series 2002
3.92%, 01/03/07 (a)(b)
7,525 7,525

34 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Metropolitan Government of Nashville and Davidson Cnty IDB

Educational Facilities Refunding RB (David Lipscomb University) Series 2003
3.92%, 01/03/07 (a)(b)
7,545 7,545

M/F Housing RB (Arbor Crest) Series 1985B
3.95%, 01/04/07 (a)(b)
12,750 12,750

M/F Housing RB (Arbor Knoll) Series 1985A
3.95%, 01/04/07 (a)(b)
13,400 13,400

Metropolitan Nashville Airport Auth

Passenger Facility Charge Refunding Bonds Series 2003
3.92%, 01/03/07 (a)(b)
4,810 4,810

Montgomery Cnty Public Building Auth

Pooled Financing RB (Tennessee Cnty Loan Pool) Series 2002
4.00%, 01/02/07 (a)(b)
10,400 10,400

Sevier Cnty Public Building Auth

Public Improvement Bonds Series 1995C1
3.94%, 01/04/07 (a)(b)(c)
2,570 2,570

Public Improvement Bonds Series 1996E4
3.94%, 01/04/07 (a)(b)(c)
1,960 1,960

Public Improvement Bonds Series 1996E5
3.94%, 01/04/07 (a)(b)(c)
1,135 1,135

Public Improvement Bonds Series 1996II-C
3.94%, 01/04/07 (a)(b)(c)
700 700

Shelby Cnty

TAN Series 2006
3.78%, 06/29/07
10,000 10,034

Shelby Cnty Health, Education and Housing Facility Board

M/F Housing RB (TUP I) Series 1997A
4.05%, 01/03/07 (a)(b)
5,000 5,000

RB (Rhodes College) Series 2000
3.94%, 01/04/07 (a)(b)
9,380 9,380

RB (St Benedict at Auburndale High School) Series 2003
3.93%, 01/04/07 (a)(b)
4,880 4,880

RB (The Hutchison School) Series 2005
3.93%, 01/04/07 (a)(b)
10,000 10,000

Tennergy Corp

Gas RB Series 2006A
3.97%, 01/04/07 (a)(b)(c)(d)
115,000 115,000

Tennessee

GO TECP Series A
3.57%, 01/11/07
50,000 50,000

Tennessee Energy Acquisition Corp

Gas Project RB Series 2006A
3.96%, 01/03/07 (a)(c)
30,000 30,000

3.95%, 01/04/07 (a)(c)(d)
15,000 15,000

3.97%, 01/04/07 (a)(c)(d)
137,775 137,775

Gas Project RB Series 2006C
3.97%, 01/04/07 (a)(c)
30,000 30,000

Jr Gas Project RB Series 2006B
3.96%, 01/04/07 (a)(b)(c)
5,000 5,000

Tennessee Housing Development Agency

Homeownership Program Bonds Series 2001-1C
4.04%, 01/04/07 (a)(c)(d)
5,125 5,125

Volunteer Student Loan Funding Corp

RB Series 1987A1
3.97%, 01/03/07 (a)(b)
15,000 15,000

RB Series 1987A2
3.97%, 01/03/07 (a)(b)
13,700 13,700

RB Series 1987A3
3.97%, 01/03/07 (a)(b)
24,700 24,700

626,959

Texas 14.2%

Alvin Independent SD

Unlimited Schoolhouse RB Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
6,170 6,170

Amarillo Health Facility Corp

Refunding RB (Evangelical Lutheran Good Samaritan Society) Series 1997
3.96%, 01/04/07 (a)(b)
3,155 3,155

Austin

Electric Utility System Refunding RB Series 2006
3.95%, 01/04/07 (a)(b)(c)
17,970 17,970

Public Improvement Bonds Series 2000
3.96%, 01/04/07 (a)(c)(d)
6,000 6,000

Water and Wastewater Refunding Bonds Series 2001 A&B
3.95%, 01/04/07 (a)(b)(c)
4,600 4,600

Water and Wastewater Refunding RB Series 2001 A&B
3.95%, 01/03/07 (a)(b)(c)(d)
6,425 6,425

Austin Electric, Water, and Sewer System

Water and Wastewater Refunding RB Series 2005
3.97%, 01/04/07 (a)(b)(c)
3,020 3,020

Bexar Cnty Housing Finance Corp

M/F Housing RB (Villages at Lost Creek Apts) Series 2006A1
3.95%, 01/04/07 (a)(b)(c)(d)
9,160 9,160

Brazos River Auth

Pollution Control RB Series 2006A
3.98%, 01/04/07 (a)(b)(c)
7,575 7,575

Pollution Control Refunding RB (TXU Electric Co) Series 2001D1
3.96%, 01/03/07 (a)(b)
14,300 14,300

Brownsville Independent SD

Unlimited Tax School Building Bonds Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
8,930 8,930

Brownville Utility System

Revenue Improvement and Refunding Bonds Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
6,965 6,965

See financial notes 35

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Collin Cnty HFA

M/F Housing RB (Huntington Apts) Series 1996
4.02%, 01/04/07 (a)(b)
6,150 6,150

Cypress-Fairbanks Independent SD

Schoolhouse and Refunding Bonds Series 2006
3.95%, 01/04/07 (a)(b)(c)
39,035 39,035

Dallas

GO Bonds Series 2005
3.95%, 01/04/07 (a)(c)
32,030 32,030

Waterworks and Sewer System CP Series B
3.55%, 02/05/07 (c)
26,770 26,770

Dallas Area Rapid Transit

Sr Lien Sales Tax RB Series 2001
3.96%, 01/04/07 (a)(b)(c)(d)
16,130 16,130

Dallas Fort Worth International Airport

Joint Improvement and Refunding RB Series 2001A
3.98%, 01/04/07 (a)(b)(c)(d)
7,495 7,495

Joint Improvement and Refunding RB Series 2002A
3.98%, 01/04/07 (a)(b)(c)(d)
8,995 8,995

Joint Improvement RB Series 2003A
3.98%, 01/04/07 (a)(b)(c)(d)
14,990 14,990

Joint RB Series 2003A
3.98%, 01/04/07 (a)(b)(c)(d)
8,870 8,870

Dallas Independent SD

Unlimited Tax School Building Bonds Series 2006
3.96%, 01/04/07 (a)(b)(c)(d)
14,575 14,575

Dallas Water and Sewer Utilities

Refunding and Improvement RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
6,495 6,495

Dallas-Fort Worth International Airport Facility Improvement Corp

Refunding RB (American Airlines Inc) Series 2000 A&C
3.98%, 01/04/07 (a)(b)(c)
12,805 12,805

Denton Utility System

RB Series 2000A
3.95%, 01/04/07 (a)(b)(c)(d)
5,230 5,230

Duncanville Independent SD

Unlimited Tax Refunding Bonds Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
4,355 4,355

El Paso

GO Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)
4,000 4,000

Water and Sewer Refunding RB Series 1998
4.06%, 01/04/07 (a)(b)(c)(d)
8,455 8,455

El Paso Cnty Hospital District

Combination Tax and Revenue Certificates of Obligation Series 2005
3.94%, 01/04/07 (a)(b)(c)
13,505 13,505

Garland Independent SD

Unlimited Tax School Building Bonds Series 2004B
3.72%, 06/15/07 (a)(b)(c)
7,125 7,107

Goose Creek Consolidated Independent SD

Unlimited Tax Schoolhouse and Refunding Bonds Series 2006
3.95%, 01/04/07 (a)(b)(c)
19,975 19,975

Grand Prairie IDA

IDRB (NTA Leasing Co) Series 1994
4.05%, 01/03/07 (a)(b)
1,155 1,155

Grapevine IDA

Airport Improvement RB (Simuflite Training International) Series 1983A
3.65%, 04/02/07 (a)(b)
19,000 19,000

Greater East Texas Student Loan Corp

RB Series 1992B
3.96%, 01/04/07 (a)(b)
30,200 30,200

3.93%, 07/01/07 (a)(b)
14,000 14,000

RB Series 1995B
3.93%, 07/01/07 (a)(b)
10,000 10,000

Refunding RB Series 1993A
3.96%, 01/04/07 (a)(b)
48,150 48,150

Refunding RB Series 1993B
3.96%, 01/04/07 (a)(b)
23,400 23,400

Greater Texas Student Loan Corp

RB Series 1998A
3.96%, 01/04/07 (a)(b)
10,250 10,250

Gulf Coast IDA

IDRB (Gruma Corp) Series 1994
4.00%, 01/03/07 (a)(b)
6,440 6,440

Gulf Coast Waste Disposal Auth

Environmental Facilities RB (ExxonMobil) Series 2000
3.99%, 01/02/07 (a)
14,700 14,700

Harris Cnty

Jr Lien Special RB (Rodeo) Series 2001C
3.98%, 01/04/07 (a)(b)(c)
1,775 1,775

Permanent Improvement Refunding Bonds Series 2004A
3.95%, 01/04/07 (a)(c)(d)
21,015 21,015

Permanent Improvement Refunding Bonds Series 2006A & Unlimited Tax Road and Refunding Bonds Series 2006B
3.97%, 01/04/07 (a)(c)
16,885 16,885

Toll Road Sr Lien Refunding RB Series 2005A
3.97%, 01/04/07 (a)(b)(c)(d)
6,470 6,470

Harris Cnty Flood Control Dist

Contract Tax TECP Series F
3.62%, 03/09/07 (b)
30,690 30,690

Harris Cnty Health Facility Development Corp

RB (SCH Health Care) Series 1997B
3.96%, 01/04/07 (a)(b)(c)(d)
14,850 14,850

36 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Harris Cnty HFA

M/F Housing RB (Dominion Square Apts) Series 2000
4.02%, 01/04/07 (a)(b)
2,825 2,825

M/F Housing RB (Lafayette Village Apts) Series 2006
4.00%, 01/04/07 (a)(b)
7,100 7,100

M/F Housing RB (Village At Cornerstone Apts) Series 2004
3.97%, 01/04/07 (a)(b)
8,360 8,360

Hays Consolidated Independent SD

Unlimited Tax Refunding Bonds Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
3,675 3,675

Houston

Public Improvement Refunding Bonds Series 1998A
3.96%, 01/04/07 (a)(c)(d)
21,655 21,655

TRAN Series 2006
3.69%, 06/29/07
17,000 17,065

Water and Sewer System Jr Lien Refunding RB Series 2002A
3.99%, 01/04/07 (a)(b)(c)(d)
6,530 6,530

Houston Combined Utility System

First Lien Refunding RB Series 2004A
3.95%, 01/04/07 (a)(b)(c)(d)
5,310 5,310

First Lien Refunding RB Series 2005A
3.87%, 01/04/07 (a)(b)(c)(d)
15,135 15,135

Houston Community College

Jr Lien Student Fee Refunding RB Series 2006
3.96%, 01/04/07 (a)(b)(c)
1,325 1,325

Houston Independent SD

Limited Tax School Building Bonds Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
5,720 5,720

Limited Tax Schoolhouse and Refunding Bonds Series 2003
3.95%, 01/04/07 (a)(b)(c)(d)
5,280 5,280

Limited Tax Schoolhouse Bonds Series 2004
3.63%, 06/15/07 (a)(b)(c)
50,000 50,000

Jewett Economic Development Corp

IDRB (Nucor Corp) Series 2003
4.00%, 01/03/07 (a)
6,200 6,200

Katy Independent SD

Unlimited Tax School Building Bonds Series 2000A
3.96%, 01/04/07 (a)(b)(c)(d)
10,145 10,145

Keller Independent SD

Unlimited Tax School Building and Refunding Bonds Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
4,800 4,800

Lake Travis Independent SD

Unlimited Tax School Building Bonds Series 2006A
3.97%, 01/04/07 (a)(b)(c)
8,000 8,000

Laredo Independent SD

Unlimited Tax School Building Bonds Series 2006
3.97%, 01/04/07 (a)(b)(c)(d)
5,900 5,900

Lavaca-Navidad River Auth

Water Supply System Contract RB (Formosa Plastics Corp) Series 1990
3.98%, 01/03/07 (a)(b)(d)(e)
13,600 13,600

Leander Independent SD

Unlimited Tax School Building and Refunding Bonds Series 2003
3.96%, 01/04/07 (a)(b)(c)(d)
10,000 10,000

Lower Colorado River Auth

Refunding RB Series 1999A
3.96%, 01/04/07 (a)(b)(c)(d)
10,770 10,770

Lower Neches River Auth

Exempt Facilities Refunding RB (Exxon Mobil) Series 2001B
3.99%, 01/02/07 (a)
17,455 17,455

Mansfield IDA

IDRB (Southern Champion Tray) Series 1999
3.97%, 01/03/07 (a)(b)
1,200 1,200

Matagorda Cnty Navigation District No. 1

Refunding RB (Houston Lighting and Power Co) Series 2001
4.00%, 01/03/07 (a)(b)(c)(d)
6,950 6,950

Midland College District

GO Bonds Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
5,520 5,520

Midlothian Independent SD

Unlimited Tax School Building and Refunding Bonds Series 2004
3.96%, 01/04/07 (a)(b)(c)(d)
8,840 8,840

Unlimited Tax School Building and Refunding Bonds Series 2006
3.97%, 01/04/07 (a)(b)(c)(d)
3,535 3,535

Montgomery Cnty

Unlimited Tax Road Bonds Series 2006A
3.95%, 01/04/07 (a)(b)(c)
4,245 4,245

North East Independent SD

Unlimited Tax Refunding Bonds Series 2005
3.95%, 01/04/07 (a)(b)(c)(d)
1,980 1,980

3.97%, 01/04/07 (a)(b)(c)
5,740 5,740

Unlimited Tax School Building Bonds Series 2004
3.94%, 01/04/07 (a)(b)(c)(d)
13,985 13,985

North Texas Higher Education Auth

Student Loan RB Series 1998
3.97%, 01/03/07 (a)(b)
9,000 9,000

Student Loan RB Series 2005A
3.98%, 01/03/07 (a)(b)(c)
20,600 20,600

Student Loan RB Series 2005C
3.98%, 01/03/07 (a)(b)
50,000 50,000

North Texas Municipal Water District

Water System RB Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
7,340 7,340

3.97%, 01/04/07 (a)(b)(c)
10,725 10,725

See financial notes 37

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Northwest Independent SD

Unlimited Tax Refunding Bonds Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
29,180 29,180

Panhandle Plains Higher Education Auth

Student Loan RB Series 1991A
3.96%, 01/03/07 (a)(b)(c)
32,400 32,400

Student Loan RB Series 1992A
3.96%, 01/03/07 (a)(b)(c)
19,100 19,100

Student Loan RB Series 1993A
3.96%, 01/03/07 (a)(b)(c)
21,700 21,700

Port Arthur Independent SD

Unlimited Tax School Building Bonds Series 2005
3.96%, 01/04/07 (a)(b)(c)(d)
23,395 23,395

Rio Grande City Consolidated Independent SD

Unlimited Tax School Building Bonds Series 2006
3.97%, 01/04/07 (a)(b)(c)
3,155 3,155

San Antonio

Airport System Revenue Improvement Bonds Series 2002
3.98%, 01/04/07 (a)(b)(c)(d)
9,240 9,240

Electric and Gas Systems RB New Series 2005
3.95%, 01/04/07 (a)(b)(c)
3,000 3,000

San Antonio Empowerment Zone Development Corp

Contract RB (Drury Southwest Hotel) Series 2005
3.95%, 01/04/07 (a)(b)
10,450 10,450

San Antonio IDA

IDRB (Gruma Corp) Series 1994
4.00%, 01/03/07 (a)(b)
4,095 4,095

Southeast Texas Housing Finance Corp

M/F Housing RB (Piedmont Apts) Series 2006
3.97%, 01/04/07 (a)(b)
14,000 14,000

Spring Independent SD

Unlimited Tax Schoolhouse Bonds Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
13,780 13,780

Texas

GO Bonds (Veterans’ Housing Assistance Program-Fund II) Series 2002A2
3.95%, 01/03/07 (a)(c)(d)
6,000 6,000

GO Bonds (Veterans’ Housing Assistance Program-Fund II) Series 2005A
3.97%, 01/03/07 (a)(c)
15,900 15,900

GO Refunding Bonds (College Student Loan) Series 2003
3.93%, 07/02/07 (a)(c)
30,630 30,630

TRAN Series 2006
3.56%, 08/31/07
222,000 223,332

Texas A&M Board of Regents

Permanent University Fund Bonds Series 1998
3.94%, 01/04/07 (a)(c)(d)
25,755 25,755

Permanent University Fund Bonds Series 2006
3.95%, 01/04/07 (a)(c)
3,000 3,000

Texas Dept of Housing and Community Affairs

M/F Housing RB (Atascocita Pines Apts) Series 2005
4.00%, 01/04/07 (a)(b)
11,900 11,900

M/F Housing RB (Bristol Apts) Series 2004
3.97%, 01/04/07 (a)(b)
8,625 8,625

M/F Housing RB (Canal Place Apts) Series 2005A
4.01%, 01/03/07 (a)(b)
15,000 15,000

M/F Housing RB (Creek Point Apts) Series 2000
3.98%, 01/03/07 (a)(b)
6,585 6,585

M/F Housing RB (Montgomery Pines Apts) Series 2004
3.97%, 01/04/07 (a)(b)
12,300 12,300

M/F Housing RB (Pinnacle Apts) Series 2004
3.97%, 01/04/07 (a)(b)
7,000 7,000

M/F Housing RB (Tower Ridge Apts) Series 2005
4.06%, 01/04/07 (a)(b)
15,000 15,000

Residential Mortgage RB Series 1998A
4.06%, 01/04/07 (a)(c)(d)
14,950 14,950

Residential Mortgage Refunding RB Series 2003A
3.98%, 01/04/07 (a)(c)(d)
10,000 10,000

S/F Mortgage RB
Series 2002 A&B
3.98%, 01/04/07 (a)(b)(c)(d)
4,115 4,115

S/F Mortgage RB Series 2004D
3.96%, 01/04/07 (a)(b)(c)
23,400 23,400

Texas Dept of Transportation

GO Mobility Funds Series 2006
3.95%, 01/04/07 (a)(c)
6,800 6,800

State Highway Fund First Tier RB Series 2006A
3.97%, 01/04/07 (a)(c)
26,075 26,075

Texas Municipal Gas Acquisition and Supply Corp I

Gas Supply RB Sr Lien Series 2006B
3.97%, 01/04/07 (a)(c)
20,000 20,000

3.98%, 01/04/07 (a)(c)
37,000 37,000

Texas Public Finance Auth

Unemployment Compensation Obligation Assessment RB Series 2003C3
3.52%, 03/08/07 (c)
14,100 14,100

Unemployment Compensation Obligation Assessment RB Series 2003C4
3.50%, 02/07/07 (c)
26,600 26,600

Texas State Affordable Housing Corp

S/F Mortgage RB (Professional Educators Home Loan Program) Series 2006A
4.08%, 01/03/07 (a)(b)(c)(d)
17,664 17,664

Texas State University System Board of Regents

Revenue Financing System RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
19,400 19,400

3.95%, 01/04/07 (a)(b)(c)(d)
8,125 8,125

38 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Texas Transportation Commission

Mobility Fund Bonds Series 2005A
3.95%, 01/04/07 (a)(c)(d)
14,825 14,825

Trinity River Auth

Improvement and Refunding Bonds Series 2005
3.97%, 01/04/07 (a)(b)(c)
5,110 5,110

Solid Waste Disposal RB (Community Waste Disposal) Series 1999
4.00%, 01/03/07 (a)(b)
3,410 3,410

University of Texas

Board of Regents Permanent University Fund Bonds Series 2004B
3.96%, 01/04/07 (a)(c)
4,965 4,965

Permanent University Fund Flexible Rate Notes Series A
3.49%, 02/06/07
25,000 25,000

3.51%, 02/06/07
24,237 24,237

Permanent University Fund Bonds Series 2005 B
4.03%, 01/03/07 (a)(d)(c)
24,655 24,655

Revenue Financing
System Bonds
Series 2003B & 2004D 4.03%, 01/03/07 (a)(c)(d)
53,090 53,090

1,954,770

Utah 1.1%

Intermountain Power Agency

Power Supply Refunding RB Series 1998A
3.95%, 01/04/07 (a)(b)(c)(d)
9,995 9,995

Salt Lake City

Hospital RB (IHC Health Services) Series 2001
3.96%, 01/04/07 (a)(b)(c)(d)
26,730 26,730

University of Utah

Refunding RB (Auxiliary and Campus Facilities) Series 1998A
3.96%, 01/04/07 (a)(b)(c)(d)
30,060 30,060

Student Loan RB Series 1993A
3.98%, 01/03/07 (a)(b)
5,000 5,000

Utah Building Ownership Auth

Lease Refunding RB Series 1998C
3.96%, 01/04/07 (a)(b)(c)(d)
9,695 9,695

Utah State Board of Regents

Hospital Refunding RB (University of Utah) Series 2006A
3.60%, 06/01/07 (a)(b)(c)(d)
49,805 49,805

Student Loan RB Series 2005W
3.98%, 01/03/07 (a)(b)(c)
25,280 25,280

156,565

Vermont 0.1%

Vermont Economic Development Auth

IDRB (Agri-Mark) Series 1999A
4.02%, 01/04/07 (a)(b)
17,000 17,000

IDRB (Agri-Mark) Series 1999B
4.02%, 01/04/07 (a)(b)
1,000 1,000

18,000

Virginia 0.5%

Arlington Cnty IDA

M/F Housing RB (Gates of Ballston Apts) Series 2005
3.97%, 01/03/07 (a)(b)
14,500 14,500

King George Cnty

Solid Waste Disposal Facility RB (Garnet) Series 1996
3.95%, 01/04/07 (a)(b)
3,700 3,700

Montgomery Cnty IDA

RB (Virginia Tech Foundation) Series 2001B
4.01%, 01/04/07 (a)(b)
355 355

Newport News IDA

RB (CNU Warwick Student Apts) Series 2004
3.90%, 01/04/07 (a)(b)
4,100 4,100

Norfolk

Parking System Refunding RB Series 2000B
3.96%, 01/04/07 (a)(b)(c)(d)
9,450 9,450

Norfolk Redevelopment and Housing Auth

RB (E2F Student Housing I) Series 2005
3.90%, 01/04/07 (a)(b)
7,000 7,000

Portsmouth Redevelopment and Housing Auth

M/F Housing RB (Churchland North Apts) Series 1999
3.97%, 01/03/07 (a)(b)
6,235 6,235

Virginia Beach Development Auth

M/F Residential Rental Housing RB (Silver Hill at Thalia) Series 1999
3.97%, 01/03/07 (a)(b)
4,000 4,000

Virginia College Building Auth

Educational Facilities RB (Public Higher Education Financing Program) Series 2006A
3.96%, 01/04/07 (a)(c)
6,015 6,015

Virginia Housing Development Auth

Commonwealth Mortgage Bonds Series 2006D1
4.00%, 01/03/07 (a)(c)(d)
7,990 7,990

Commonwealth Mortgage Bonds Series 2006D2
4.00%, 01/03/07 (a)(c)(d)
7,400 7,400

Virginia Port Auth

RB (2002 Resolution) Series 2005A
3.97%, 01/04/07 (a)(b)(c)(d)
2,630 2,630

73,375

See financial notes 39

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Washington 4.8%

Cacade Water Alliance

Water System RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
8,680 8,680

Central Puget Sound Regional Transit Auth

Sales Tax RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
7,926 7,926

Clark Cnty SD

No. 37 (Vancouver) Unlimited Tax Deferred Interest GO Bonds Series 2001C
3.97%, 01/04/07 (a)(b)(c)(d)
15,245 15,245

Douglas Cnty Development Corp

RB (Executive Flight) Series 1998
3.95%, 01/04/07 (a)(b)
5,900 5,900

Eatonville SD No. 404

Unlimited Tax GO Bonds Series 2006
3.96%, 01/04/07 (a)(b)(c)(d)
8,745 8,745

Energy Northwest

Electric Refunding RB (Columbia Generating Station) Series 2006A
3.95%, 01/04/07 (a)(c)
20,625 20,625

Project 1 Electric Refunding RB Series 2006A
3.70%, 07/01/07
15,000 15,094

Refunding Electric RB (Columbia Generating Station No. 3) Series 2001A
3.96%, 01/04/07 (a)(b)(c)(d)
29,700 29,700

Refunding Electric RB (Project No. 1) Series 2002A
3.95%, 01/04/07 (a)(b)(c)(d)
32,460 32,460

3.97%, 01/04/07 (a)(b)(c)(d)
3,145 3,145

Refunding Electric RB (Project No. 3) Series 2003A
3.95%, 01/04/07 (a)(b)(c)(d)
8,690 8,690

King Cnty

Sewer Refunding RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
7,660 7,660

King Cnty Rural Library District

Unlimited Tax GO Bonds Series 2005
3.97%, 01/04/07 (a)(b)(c)(d)
11,520 11,520

Olympia

Solid Waste RB (LeMay Enterprises) Series 1999
4.00%, 01/03/07 (a)(b)
4,205 4,205

Pierce Cnty

IDRB (McFarland Cascade) Series 1996
4.02%, 01/04/07 (a)(b)
3,945 3,945

Pierce Cnty Economic Development Corp

RB (Flex-A-Lite Consolidated) Series 1996
4.00%, 01/03/07 (a)(b)
1,950 1,950

Solid Waste RB (LeMay Enterprises) Series 1999
4.00%, 01/03/07 (a)(b)
1,125 1,125

Port of Centralia IDA

Solid Waste RB (LeMay Enterprises) Series 1999
4.00%, 01/03/07 (a)(b)
705 705

Port of Moses Lake Public Corp

RB (National Frozen Foods Corp) Series 1997
3.95%, 01/03/07 (a)(b)
1,000 1,000

Port of Seattle

RB Series 2001B
3.98%, 01/04/07 (a)(b)(c)(d)
4,430 4,430

RB Series 2003A
3.95%, 01/04/07 (a)(b)(c)(d)
1,000 1,000

Special Facility RB (Terminal 18)
Series 1999B
4.00%, 01/03/07 (a)(b)(c)(d)
49,795 49,795

Subordinate Lien RB Series 1999B
3.84%, 01/04/07 (a)(b)(c)(d)
2,875 2,875

Subordinate Lien RB Series 2005
3.98%, 01/03/07 (a)(b)
8,500 8,500

Port of Tacoma

RB Series 2005
3.98%, 01/04/07 (a)(b)(c)(d)
6,265 6,265

Seattle

Drainage and Wastewater Refunding RB Series 2002
3.95%, 01/04/07 (a)(b)(c)(d)
6,875 6,875

Seattle Housing Auth

RB (Casa Pacifica Apts) Series 1997
4.00%, 01/03/07 (a)(b)
2,850 2,850

RB (CHHIP and HRG) Series 1996
4.00%, 01/03/07 (a)(b)
3,260 3,260

Snohomish Cnty Public Utility District No. 1

Electric System Refunding RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
7,405 7,405

Tacoma Housing Auth

RB (Crown Assisted Living) Series 1998
3.99%, 01/03/07 (a)(b)
2,955 2,955

Washington

GO Bonds Series 1998C
3.96%, 01/04/07 (a)(c)(d)
12,150 12,150

GO Bonds Series 2000B
3.96%, 01/04/07 (a)(c)(d)
13,380 13,380

GO Bonds Series 2003A
3.96%, 01/04/07 (a)(b)(c)(d)
5,170 5,170

Motor Vehicle Fuel Tax GO Bonds Series 2003C
3.95%, 01/04/07 (a)(b)(c)
18,920 18,920

Motor Vehicle Fuel Tax GO Bonds Series 2006B
3.97%, 01/04/07 (a)(b)(c)(d)
2,500 2,500

Unlimited GO Bonds Series B
3.96%, 01/04/07 (a)(b)(c)(d)
30,485 30,485

Various Purpose GO Bonds Series 2005D
3.95%, 01/04/07 (a)(b)(c)(d)
5,930 5,930

3.97%, 01/04/07 (a)(b)(c)(d)
3,475 3,475

40 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Various Purpose GO Bonds Series 2006D
3.94%, 01/04/07 (a)(b)(c)
8,635 8,635

3.95%, 01/04/07 (a)(b)(c)(d)
11,330 11,330

Various Purpose GO
Refunding Bonds
Series R2005A 3.97%, 01/04/07 (a)(b)(c)
2,875 2,875

Various Purpose GO
Refunding Bonds
Series R2005A & R2006A
3.97%, 01/04/07 (a)(b)(c)
6,200 6,200

Washington Economic Development Finance Auth

IDRB (Tonkin Building Associates) Series 1997A
4.02%, 01/04/07 (a)(b)
1,000 1,000

Lease RB (Washington Biomedical Research Properties II) Series 2005E
4.03%, 01/03/07 (a)(b)(c)(d)
14,620 14,620

RB (Hunter Douglas) Series 1997A
3.97%, 01/03/07 (a)(b)
3,500 3,500

Solid Waste Disposal RB (Cedar Grove Composting) Series 2004B
4.00%, 01/03/07 (a)(b)
5,200 5,200

Solid Waste Disposal RB (Heirborne Investments, LLC) Series 2006K
4.00%, 01/03/07 (a)(b)
5,895 5,895

Solid Waste Disposal RB (Lemay Enterprises) Series 2005B
4.00%, 01/03/07 (a)(b)
5,665 5,665

Solid Waste Disposal RB (Waste Management) Series 2000C
3.99%, 01/03/07 (a)(b)
5,500 5,500

Solid Waste Disposal RB (Waste Management) Series 2000H
3.99%, 01/03/07 (a)(b)
6,825 6,825

Solid Waste Disposal RB (Waste Management) Series 2000I
3.98%, 01/03/07 (a)(b)
10,240 10,240

3.99%, 01/03/07 (a)(b)
7,235 7,235

Solid Waste Disposal RB (Waste Management) Series 2005D
3.95%, 01/04/07 (a)(b)
18,000 18,000

Washington Health Care Facilities Auth

RB (Yakima Valley Farm Workers Clinic) Series 1997
3.95%, 01/03/07 (a)(b)
2,800 2,800

Washington Housing Finance Commission

M/F Housing RB (Anchor Village Apts) Series 1997
3.97%, 01/04/07 (a)(b)
10,750 10,750

M/F Housing RB (Brittany Park Phase II) Series 1998A
3.97%, 01/04/07 (a)(b)
3,480 3,480

M/F Housing RB (Brittany Park) Series 1996A
3.97%, 01/04/07 (a)(b)
8,930 8,930

M/F Housing RB (Fairwinds Redmond) Series 2005A
4.00%, 01/04/07 (a)(b)
7,500 7,500

M/F Housing RB (Forest Creek Apts) Series 2006
3.97%, 01/04/07 (a)(b)
13,815 13,815

M/F Housing RB (Highlander Apts) Series 2004A
3.97%, 01/04/07 (a)(b)
7,000 7,000

M/F Housing RB (Lakewood Meadows Apts) Series 2000A
3.97%, 01/04/07 (a)(b)
3,140 3,140

M/F Housing RB (Merrill Gardens at Queen Anne) Series 2004A
4.00%, 01/04/07 (a)(b)
11,000 11,000

M/F Housing RB (Merrill Gardens) Series 1997A
3.97%, 01/04/07 (a)(b)
6,125 6,125

M/F Housing RB (Rainier Court Apts) Series 2003A
3.97%, 01/04/07 (a)(b)
12,750 12,750

M/F Housing RB (Rosecreek Apts) Series 1998A
4.00%, 01/04/07 (a)(b)
3,570 3,570

M/F Housing RB (Silver Creek Apts) Series 2004
3.97%, 01/04/07 (a)(b)
4,100 4,100

M/F Housing RB (The Seasons Apts) Series 2006
3.97%, 01/04/07 (a)(b)
20,000 20,000

M/F Housing RB (Vintage at Burien) Series 2004A
3.97%, 01/04/07 (a)(b)
6,570 6,570

M/F Housing RB (Woodrose Apts) Series 1999A
3.97%, 01/04/07 (a)(b)
6,750 6,750

M/F Mortgage RB (Canyon Lakes) Series 1993
3.99%, 01/04/07 (a)(b)
4,130 4,130

M/F Mortgage RB (Lake Washington Apts) Series 1996
4.00%, 01/03/07 (a)(b)
7,850 7,850

M/F Mortgage RB (Meridian Court Apts) Series 1996
3.98%, 01/03/07 (a)(b)
6,700 6,700

M/F RB (Cedar Ridge Retirement) Series 2005A
3.99%, 01/04/07 (a)(b)
5,030 5,030

Non-Profit Refunding RB (Horizon House) Series 2005
3.92%, 01/02/07 (a)(b)
11,545 11,545

Yakima Cnty Public Corp

IDRB (Cowiche Growers) Series 1998
3.95%, 01/04/07 (a)(b)
2,200 2,200

654,995

See financial notes 41

Schwab Municipal Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

West Virginia 0.6%

Braxton Cnty

Solid Waste Disposal Refunding RB (Weyerhouser Co) Series 1998
3.98%, 01/04/07 (a)(b)(c)
16,275 16,275

Marion Cnty

Solid Waste Disposal Facility RB (Grant Town Cogeneration) Series 1990B
4.00%, 01/03/07 (a)(b)
17,125 17,125

Solid Waste Disposal Facility RB (Grant Town Cogeneration) Series 1990C
4.00%, 01/03/07 (a)(b)
14,800 14,800

Solid Waste Disposal Facility RB (Grant Town Cogeneration) Series 1990D
4.00%, 01/03/07 (a)(b)
2,800 2,800

West Virginia Housing Development Fund

Housing Finance Bonds Series 2001D
3.95%, 01/04/07 (a)(c)(d)
14,270 14,270

West Virginia State Hospital Finance Auth

RB (Pallotine Health Services Inc) Series 2006
3.92%, 01/04/07 (a)(b)
12,500 12,500

West Virginia Water Development Auth

RB (Loan Program IV)
Series 2005A
3.95%, 01/04/07 (a)(b)(c)
7,504 7,504

85,274

Wisconsin 1.0%

Colburn IDA

IDRB (Heartland Farms) Series 1994
4.11%, 01/04/07 (a)(b)
5,100 5,100

Kenosha

IDRB (Asyst Technologies) Series 1997
3.99%, 01/04/07 (a)(b)
5,000 5,000

Milwaukee Cnty

Airport RB Series 2000A
3.98%, 01/04/07 (a)(b)(c)(d)
18,470 18,470

Southeast Wisconsin Professional Baseball Park District

Sales Tax Refunding Bonds Series 1998
3.95%, 01/03/07 (a)(b)(c)(d)
5,000 5,000

Wisconsin

GO Bonds Series 2006A
3.97%, 01/04/07 (a)(b)(c)
6,685 6,685

GO CP Notes
3.50%, 02/06/07 (c)
11,755 11,755

3.52%, 03/08/07 (c)
35,755 35,755

Wisconsin Housing and Economic Development Auth-1987 Homeownership Resolution

Business Development RB (Ultratec) Series 1995-7
4.11%, 01/04/07 (a)(b)
1,885 1,885

Homeownership RB Series 2002C
3.90%, 01/03/07 (a)(c)
2,765 2,765

Homeownership RB Series 2003B
3.95%, 01/03/07 (a)(c)
12,325 12,325

Housing RB Series 2002B
3.95%, 01/04/07 (a)(b)(c)(d)
12,920 12,920

Wisconsin Housing and Economic Development Auth-1988 Homeownership Resolution

Homeownership RB Series 2005C
3.95%, 01/03/07 (a)(c)
11,000 11,000

Homeownership RB Series 2003A
3.98%, 01/04/07 (a)(c)(d)
2,365 2,365

RB Series 2004D
3.98%, 01/04/07 (a)(c)(d)
2,540 2,540

Wisconsin Rapids

IDRB (Thiele Kaolin) Series 1998
3.97%, 01/03/07 (a)(b)
4,500 4,500

138,065

Wyoming 0.3%

Lincoln Cnty

Pollution Control RB (Exxon) Series 1987B
3.91%, 01/02/07 (a)
6,200 6,200

Pollution Control RB (Exxon) Series 1987C
3.91%, 01/02/07 (a)
6,600 6,600

Uinta Cnty

Pollution Control Refunding RB (Amoco) Series 1998
2.25%, 07/01/07 (a)
8,350 8,257

Wyoming

Education Fund TRAN Series 2006A
3.69%, 06/27/07
25,000 25,095

46,152

Total Municipal Securities
(Cost $13,720,247) 13,720,247

End of Investments.

At 12/31/06, the tax basis cost of the fund’s investment was $13,720,247.

42 See financial notes

Schwab Municipal Money Fund

Portfolio Holdings continued

At 12/31/06, portfolio holdings included illiquid and/or restricted securities as follows:


Issuer	Face Amount		Value
Rate, Acquisition Date, Maturity Date	($ x 1,000)		($ x 1,000)




Allegheny Cnty Hospital Development Auth
RB (University of Pittsburgh Medical Center) Series 2005B 4.04%, 12/15/06, 01/04/07		12,767		12,767
Lavaca-Navidad River Auth
Water Supply System Contract RB (Formosa Plastics Corp) Series 1990 3.98%, 01/07/99, 01/03/07		13,600		13,600


(a)		Variable-rate security.
(b)		Credit-enhanced security.
(c)		Liquidity-enhanced security
(d)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $4,730,480 or 34.4% of net assets.
(e)		Illiquid and/or restricted security.


BAN		— Bond anticipation note
COP		— Certificate of participation
GO		— General obligation
HFA		— Housing finance agency
IDA		— Industrial development authority
IDB		— Industrial development board
IDRB		— Industrial development revenue bond
RAN		— Revenue anticipation note
RB		— Revenue bond
TAN		— Tax anticipation note
TECP		— Tax-exempt commercial paper
TRAN		— Tax and revenue anticipation note

See financial notes 43

Schwab Municipal Money Fund

Statements of

Changes in Net Assets

For the current and prior report periods. All numbers x 1,000.




Operations


		1/1/06-12/31/06			1/1/05-12/31/05
Net investment income			$391,028			$246,264
Net realized gains or losses	+		669			(755	)


Increase in net assets from operations			391,697			245,509


Distributions Paid
Dividends from net investment income
Sweep Shares			199,231			129,009
Value Advantage Shares			87,857			62,499
Select Shares			35,801			18,472
Institutional Shares	+		68,139			36,165


Total dividends from net investment income			391,028			246,145


Transactions in Fund Shares*
Shares Sold
Sweep Shares			37,679,223			34,222,246
Value Advantage Shares			3,893,260			3,763,501
Select Shares			2,403,651			2,018,411
Institutional Shares	+		4,384,527			3,704,608


Total shares sold			48,360,661			43,708,766


Shares Reinvested
Sweep Shares			195,123			126,513
Value Advantage Shares			77,499			55,374
Select Shares			31,151			15,562
Institutional Shares	+		58,551			31,212


Total shares reinvested			362,324			228,661


Shares Redeemed
Sweep Shares			(38,110,980	)		(34,444,625	)
Value Advantage Shares			(4,179,902	)		(4,056,494	)
Select Shares			(2,156,933	)		(1,795,103	)
Institutional Shares	+		(3,732,716	)		(3,411,103	)


Total shares redeemed			(48,180,531	)		(43,707,325	)

Net transactions in fund shares			542,454			230,102


Net Assets
Beginning of period			13,223,123			12,993,657
Total increase	+		543,123			229,466


End of period			$13,766,246			$13,223,123


*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

46 See financial notes

Schwab AMT Tax-Free Money Fund^tm

Financial Statements

Financial Highlights


	1/1/06–			1/1/05–			1/1/04–			1/1/03–			1/1/02–
Sweep Shares	12/31/06			12/31/05			12/31/04			12/31/03			12/31/02


Per-Share Data ($)

Net asset value at beginning of period		1.00			1.00			1.00			1.00			1.00

Income from investment operations:
Net investment income		0.03			0.02			0.01			0.00	¹		0.01
Less distributions:
Dividends from net investment income		(0.03	)		(0.02	)		(0.01	)		(0.00	)¹		(0.01	)

Net asset value at end of period		1.00			1.00			1.00			1.00			1.00

Total return (%)		2.83			1.81			0.60			0.46			0.96

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.65			0.65			0.66			0.64			0.59
Gross operating expenses		0.86			0.85			0.85			0.85			0.87
Net investment income		2.77			1.78			0.59			0.47			0.95
Net assets, end of period ($ x 1,000,000)		1,045			1,973			1,905			1,804			1,785

11/06/06²–

Value Advantage Shares

12/31/06

Per-Share Data ($)

Net asset value at beginning of period

1.00

Income from investment operations:

Net investment income

0.00

Net realized and unrealized gains or losses

0.00

Total income or loss from investment operations

0.00

Less distributions:

Dividends from net investment income

(0.00

)¹

Net asset value at end of period

1.00

Total return (%)

0.49

⁴

Ratios/Supplemental Data (%)

Ratios to average net assets:

Net operating expenses

0.44

^3,5

Gross operating expenses

0.68

⁵

Net investment income

3.22

⁵

Net assets, end of period ($ x 1,000,000)

¹ Per-share amount was less than $0.01.

² Commencement of operations.

³ The ratio of net operating expenses would have been .45% if custody credits had not been included.

⁴ Not annualized.

⁵ Annualized.

See financial notes 47

Schwab AMT Tax-Free Money Fund

Portfolio Holdings as of December 31, 2006

This section shows all the securities in the fund’s portfolio and their value as of the report date.

Cost

Value

Holdings by Category

($ x 1,000)

101

.0%

Municipal Securities

1,141,771

101

.0%

Total Investments

1,141,771

.0)%

Other Assets and Liabilities

(11,840

)

100

.0%

Net Assets

1,129,931


Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)





Municipal Securities 101.0% of net assets




Alabama 1.6%


Birmingham Downtown Redevelopment Auth
RB (UAB Educational Foundation) Series 2002 3.92%, 01/03/07 (a)(b)		18,595		18,595


Alaska 0.2%


Valdez
Marine Terminal Refunding RB (Exxon Pipeline Co) Series 1993B 3.90%, 01/02/07 (a)		2,000		2,000


Arizona 3.5%


Salt River Project Agricultural Improvement and Power District
Electric System RB Series 2002B 3.95%, 01/04/07 (a)(c)(d)		7,440		7,440
Electric System RB Series 2006A 3.95%, 01/04/07 (a)(c)		3,185		3,185
Scottsdale IDA
Hospital RB (Scottsdale Healthcare) Series 2006G 3.95%, 01/04/07 (a)(b)(c)		7,000		7,000
Scottsdale Municipal Property Corp
Excise Tax Refunding RB Series 2006 3.95%, 01/04/07 (a)(c)		9,580		9,580
Tempe Excise Tax
Transit Excise Tax Revenue Obligations Series 2006 3.92%, 01/03/07 (a)(c)		12,000		12,000

				39,205


Colorado 2.2%


Denver Convention Center Hotel Auth
Sr Refunding RB Series 2006 3.95%, 01/04/07 (a)(b)(c)(d)		9,330		9,330
Sr Refunding RB (Convention Center Hotel) Series 2006 3.95%, 01/04/07 (a)(b)(c)(d)		10,000		10,000
Denver Dept of Aviation
Airport System RB Series 2006A 3.97%, 01/04/07 (a)(b)(c)		6,000		6,000

				25,330


District of Columbia 5.0%


District of Columbia
GO Bonds Series 2005A 3.95%, 01/03/07 (a)(b)(c)(d)		19,000		19,000
Ballpark RB Series 2006B1 3.97%, 01/04/07 (a)(b)(c)		17,190		17,190
National Capital Revitalization Corp
RB (DC USA Parking Garage) Series 2006 3.97%, 01/04/07 (a)(b)(c)		20,000		20,000

				56,190


Florida 18.4%


Alachua Cnty School Board
COP Series 2004 3.94%, 01/04/07 (a)(b)(c)(d)		2,800		2,800
Florida
RB (Dept of Environmental Protection Preservation 2000) Series 1997B 3.95%, 01/04/07 (a)(b)(c)(d)		7,890		7,890
Florida Board of Education
Capital Outlay Bonds Series 1998E 3.96%, 01/04/07 (a)(c)(d)		12,280		12,280
Capital Outlay Bonds Series 2003C 3.95%, 01/04/07 (a)(b)(c)(d)		7,500		7,500
Capital Outlay Refunding Bonds Series 2001B 3.96%, 01/04/07 (a)(c)(d)		14,100		14,100
Florida Dept of Transportation
Turnpike RB Series 2000A 3.97%, 01/04/07 (a)(b)(c)(d)		7,820		7,820
Florida HFA
M/F Housing RB (Cameron Cove Apts) Series 1985XX 3.96%, 01/03/07 (a)(b)		8,100		8,100
M/F Housing Refunding RB (South Pointe) Series 1998J 3.92%, 01/03/07 (a)(b)		4,925		4,925

48 See financial notes

Schwab AMT Tax-Free Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Florida State Board of Education

Public Education Capital Outlay Refunding Bonds Series 2005C
3.95%, 01/04/07 (a)(c)
5,117 5,117

Gainesville Utility System

RB Series 2005C
3.95%, 01/02/07 (a)(c)
7,000 7,000

RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)
4,545 4,545

Ocala

Utility Systems RB Series 2005B
3.95%, 01/04/07 (a)(b)(c)(d)
3,990 3,990

Orange Cnty Health Facilities Auth

Hospital RB (Orlando Regional Healthcare System) Series 2004
3.99%, 01/02/07 (a)(b)
8,000 8,000

Refunding Program RB (Pooled Hospital Loan) Series 1985
3.65%, 04/05/07 (b)
18,400 18,400

Orange Cnty HFA

M/F Housing Refunding RB (Andover Place Apts) Series 1998F
3.96%, 01/04/07 (a)(b)
1,770 1,770

Refunding RB (Highland Pointe Apts) Series 1998J
3.94%, 01/04/07 (a)(b)
7,455 7,455

Orange Cnty School Board

COP Series 2006A
3.94%, 01/04/07 (a)(b)(c)
4,660 4,660

COP Series 2006B
3.95%, 01/04/07 (a)(b)(c)
2,760 2,760

Palm Beach Cnty

RB (Zoological Society of the Palm Beaches) Series 2001
3.94%, 01/04/07 (a)(b)
2,000 2,000

Palm Beach Cnty Health Facilities Auth

Refunding Program RB (Pooled Hospital Loan) Series 1985
3.59%, 01/16/07 (b)
7,300 7,300

3.52%, 03/08/07 (b)
9,500 9,500

Sarasota Cnty

Utility System Refunding RB Series 2005A
3.97%, 01/04/07 (a)(b)(c)(d)
4,505 4,505

Sumter Landing Community Development District

Recreational RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)(d)
2,000 2,000

Sunshine State Governmental Financing Commission

TECP Series 1998A
3.50%, 02/06/07 (b)(c)
39,497 39,497

Tampa

Educational Facilities RB (Pepin Academy of Tampa) Series 2002
3.94%, 01/04/07 (a)(b)
3,625 3,625

Tampa Bay Water Auth

Utility System Refunding and Improvement RB Series 2001A
3.99%, 01/04/07 (a)(b)(c)(d)
5,200 5,200

University of South Florida Research Foundation

RB (Interdisciplinary Research Building) Series 2004A
3.93%, 01/03/07 (a)(b)
4,500 4,500

Winter Haven

Utility System Improvement and Refunding RB Series 2005
3.94%, 01/04/07 (a)(b)(c)(d)
995 995

208,234

Georgia 4.7%

Atlanta

Subordinate Lien Tax Allocation Bonds (Atlantic Station) Series 2006
4.01%, 01/04/07 (a)(b)
7,000 7,000

Burke Cnty Development Auth

RB (Oglethorpe Power Corporation) Series 2006B2
3.54%, 02/12/07 (b)(c)
10,000 10,000

DeKalb Cnty Public Safety and Judicial Facilities Auth

RB (Public Safety and Judicial Facility) Series 2004
3.95%, 01/04/07 (a)(c)
4,485 4,485

Fulton Cnty

Water and Sewerage RB Series 2004
3.94%, 01/04/07 (a)(b)(c)
1,035 1,035

Metropolitan Atlanta Rapid Transit Auth

Sales Tax Revenue CP BAN (Third Indenture) Series 2004A
3.52%, 03/06/07 (b)
30,200 30,200

52,720

Hawaii 0.4%

Honolulu City and Cnty

Wastewater System RB (First Bond Resolution) Sr Series 2006A
3.94%, 01/04/07 (a)(b)(c)
4,200 4,200

Illinois 9.5%

Chicago

GO Bonds (Project and Refunding) Series 2004A
3.94%, 01/04/07 (a)(b)(c)(d)
10,300 10,300

GO Bonds (Project and Refunding) Series 2006A
3.95%, 01/04/07 (a)(b)(c)(d)
17,735 17,735

Illinois

GO Bonds Series 2004A
3.95%, 01/02/07 (a)(b)(c)(d)
20,000 20,000

Illinois Finance Auth

RB (Northwestern University) Series 2006
3.95%, 01/04/07 (a)(c)(d)
10,745 10,745

Illinois Toll Highway Auth

Sr Priority RB Series 2005A
3.94%, 01/04/07 (a)(b)(c)
15,000 15,000

See financial notes 49

Schwab AMT Tax-Free Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Metropolitan Pier and Exposition Auth

Bonds (McCormick Place Expansion) Series 1998B
3.94%, 01/04/07 (a)(b)(c)(d)
1,680 1,680

Metropolitan Water Reclamation District of Greater Chicago

GO Capital Improvement Bonds Unlimited Tax Series 2006
3.94%, 01/04/07 (a)(c)
16,630 16,630

St Clair Cnty

Industrial Building Refunding RB (Winchester Apts) Series 1994
3.93%, 01/04/07 (a)(b)
15,550 15,550

107,640

Indiana 1.4%

Indiana Health Facilities Financing Auth

RB (Ascension Health) Series 2001A3
3.35%, 01/30/07 (a)
8,000 7,984

Purdue University

Student Fee Bonds Series W
3.95%, 01/04/07 (a)(c)
8,165 8,165

16,149

Iowa 1.5%

Iowa School Corporations

Cash Anticipation Program Warrant Certificates Series 2006-2007 A
3.71%, 06/28/07 (b)
16,720 16,782

Kentucky 2.2%

Boyle Cnty

Hospital RB (Ephraim McDowell Health) Series 2006
3.95%, 01/04/07 (a)(b)
1,000 1,000

Kentucky Asset/Liability Commission

General Fund TRAN Series 2006A
3.70%, 06/28/07
15,000 15,056

Louisville/Jefferson Cnty Metro Government

Health System RB (Norton Healthcare) Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
9,260 9,260

25,316

Louisiana 2.3%

Louisiana

Gasoline and Fuels Tax RB Series 2005A
3.94%, 01/04/07 (a)(b)(c)(d)
6,995 6,995

GO Bonds Series 2006C
3.95%, 01/03/07 (a)(b)(c)(d)
5,610 5,610

GO Match Bonds Series 2006B
3.95%, 01/04/07 (a)(b)(c)(d)
3,120 3,120

Louisiana Local Government Environmental Facilities and Community Development Auth

RB (University of Louisiana-Monroe) Series 2004C
3.93%, 01/04/07 (a)(b)
10,000 10,000

25,725

Maryland 1.3%

Maryland Health and Higher Educational Facilities Auth

FHA Insured Mortgage RB (Western Maryland Health System) Series 2006A
3.94%, 01/04/07 (a)(b)(c)
14,825 14,825

Massachusetts 2.9%

Chelmsford

BAN
3.66%, 06/22/07
6,000 6,023

Massachusetts Bay Transportation Auth

Sr Sales Tax Bonds Series 2006B
3.94%, 01/03/07 (a)(c)
18,100 18,100

Quincy

BAN
3.75%, 08/03/07
8,000 8,034

32,157

Michigan 1.0%

Detroit Sewage Disposal System

Refunding Sr Lien RB Series 2006D
3.95%, 01/04/07 (a)(b)(c)(d)
11,000 11,000

Missouri 1.6%

Missouri Highway and Transportation Commission

First Lien State Road Bonds Series 2006B
3.95%, 01/04/07 (a)(c)
6,935 6,935

3.97%, 01/04/07 (a)(c)
6,895 6,895

Springfield

Special Obligation BAN (College Station Garage) Series 2006
3.81%, 12/01/07
4,360 4,367

18,197

Montana 1.3%

Forsyth

Pollution Control Refunding RB (NW Corp Colstrip) Series 2006
3.95%, 01/04/07 (a)(b)(c)
15,000 15,000

Nebraska 1.6%

Nebraska Public Power District

General RB Series 2006A
3.96%, 01/04/07 (a)(b)(c)(d)
17,495 17,495

50 See financial notes

Schwab AMT Tax-Free Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Nevada 0.4%

Truckee Meadows Water Auth

Water Revenue CP Series 2006B
3.55%, 02/06/07 (b)
5,000 5,000

New Jersey 3.3%

Cherry Hill Township

General and Sewer Capital BAN Series 2006
3.57%, 10/23/07
5,826 5,846

Mercer Cnty

BAN Series 2006A
3.55%, 06/15/07
5,500 5,511

New Jersey Transit Corp

Subordinated COP Series 2005A
3.94%, 01/04/07 (a)(b)(c)
5,000 5,000

Newark

GO School Promissory Notes Series 2006C
3.58%, 06/15/07
5,000 5,010

Woodbridge

BAN
3.79%, 07/06/07
13,000 13,045

3.80%, 07/06/07
3,000 3,010

37,422

New York 4.4%

New York City

GO Bonds Fiscal 2006 Series I8
3.97%, 01/02/07 (a)(b)
5,400 5,400

New York City Municipal Water Finance Auth

Water and Sewer System RB Series 1995A
3.90%, 01/02/07 (a)(b)(c)
8,500 8,500

Water and Sewer System RB Series 1994G
3.92%, 01/02/07 (a)(b)(c)
1,100 1,100

TECP Series 6
3.60%, 01/04/07 (c)
25,000 25,000

Water and Sewer System RB Fiscal 2006 Series A
3.93%, 01/04/07 (a)(c)(d)
10,000 10,000

50,000

Pennsylvania 1.2%

Beaver Cnty IDA

Pollution Control Refunding RB (FirstEnergy Nuclear Generation Corp)
Series 2006A
3.97%, 01/02/07 (a)(b)
300 300

Philadelphia

GO Bonds Series 2006
3.94%, 01/04/07 (a)(b)(c)
13,630 13,630

13,930

Puerto Rico 2.3%

Puerto Rico

TRAN Series 2007
3.50%, 07/30/07 (b)
10,000 10,056

Puerto Rico Highway and Transportation Auth

Highway Refunding RB Series BB
3.50%, 02/15/07 (a)(b)(c)
11,210 11,210

Puerto Rico Municipal Finance Agency

Refunding Bonds Series C
3.50%, 02/15/07 (a)(b)(c)
4,945 4,945

26,211

South Carolina 2.8%

Beaufort-Jasper Higher Education Commission

Student Housing RB (University of South Carolina-Beaufort Student Housing)
Series 2005
3.93%, 01/04/07 (a)(b)
16,540 16,540

South Carolina Public Service Auth

TECP
3.60%, 02/07/07 (c)
8,591 8,591

South Carolina Transportation Infrastructure Bank

Refunding RB Series 2005A
3.95%, 01/04/07 (a)(b)(c)
6,385 6,385

31,516

Tennessee 6.1%

Clarksville Public Building Auth

Pooled Financing RB (Tennessee Municipal Bond Fund) Series 2001
4.00%, 01/02/07 (a)(b)
4,000 4,000

Knoxville

Wastewater System Revenue Improvement Bonds Series 2005A
3.95%, 01/04/07 (a)(b)(c)
5,500 5,500

Shelby Cnty

TAN Series 2006
3.78%, 06/29/07
7,000 7,024

Tennessee Energy Acquisition Corp

Jr Gas Project RB Series 2006B
3.96%, 01/04/07 (a)(b)(c)
22,540 22,540

Gas Project RB Series 2006C
3.97%, 01/04/07 (a)(c)
20,000 20,000

Gas Project RB Series 2006A
3.97%, 01/04/07 (a)(c)(d)
10,000 10,000

69,064

Texas 11.8%

Dallas

GO Bonds Series 2005
3.95%, 01/04/07 (a)(c)
5,000 5,000

Dallas Water and Sewer Utilities

Refunding and Improvement RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
5,000 5,000

See financial notes 51

Schwab AMT Tax-Free Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Harris Cnty

Permanent Improvement Refunding Bonds Series 2006A & Unlimited Tax Road and Refunding Bonds Series 2006B
3.97%, 01/04/07 (a)(c)
25,000 25,000

Lower Colorado River Auth

CP Series A
3.50%, 02/05/07 (c)
3,700 3,700

North Texas Municipal Water District

Water System RB Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
7,340 7,340

San Antonio

Combination Tax and Revenue Certificates of Obligation Series 2006
3.96%, 01/04/07 (a)(c)(d)
4,445 4,445

General Improvement and Refunding Bonds Series 2006 & Combination Tax and Revenue Certificates of
Obligation Series 2006
3.97%, 01/04/07 (a)(c)
6,165 6,165

Texas A&M Board of Regents

Permanent University Fund Bonds Series 1998
3.94%, 01/04/07 (a)(c)(d)
5,990 5,990

Permanent University Fund Bonds Series 2006
3.95%, 01/04/07 (a)(c)
3,155 3,155

Texas Dept of Transportation

GO Mobility Fund Bonds Series 2005A
3.95%, 01/04/07 (a)(c)
9,000 9,000

GO Mobility Fund Bonds Series 2006
3.95%, 01/04/07 (a)(c)(d)
8,035 8,035

Texas Municipal Gas Acquisition and Supply Corp I

Gas Supply RB Sr Lien Series 2006B
3.98%, 01/04/07 (a)(c)
13,000 13,000

University of Texas

Permanent University Fund Flexible Rate Notes Series A
3.55%, 01/16/07
25,000 25,000

3.60%, 02/05/07
3,900 3,900

3.51%, 02/06/07
9,072 9,072

133,802

Virginia 0.4%

Virginia College Building Auth

Educational Facilities RB (Public Higher Education Financing Program)
Series 2006A
3.95%, 01/04/07 (a)(c)(d)
4,125 4,125

Washington 3.7%

Cacade Water Alliance

Water System RB Series 2006
3.94%, 01/04/07 (a)(b)(c)(d)
8,680 8,680

King Cnty

Sewer Refunding RB Second Series 2006
3.94%, 01/04/07 (a)(b)(c)
9,095 9,095

Port of Seattle

Intermediate Lien Refunding RB Series 2006
3.95%, 01/04/07 (a)(b)(c)(d)
7,250 7,250

Washington

Various Purpose GO Refunding Bonds Series R-2005A
3.94%, 01/04/07 (a)(b)(c)
16,235 16,235

41,260

Wisconsin 0.7%

Wisconsin Transportation

Revenue CP Series 2006A
3.52%, 03/06/07 (c)
7,500 7,500

Wyoming 1.3%

Lincoln Cnty

Pollution Control RB (Amoco) Series 1983
3.55%, 04/01/07 (a)
15,200 15,181

Total Municipal Securities
(Cost $1,141,771) 1,141,771

End of Investments.

At 12/31/06, the tax basis cost of the fund’s investments was $1,141,771.


(a)		Variable-rate security.
(b)		Credit-enhanced security.
(c)		Liquidity-enhanced security.
(d)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $299,655 or 26.5% of net assets.


BAN		— Bond anticipation note
COP		— Certificate of participation
GO		— General obligation
HFA		— Housing finance agency
IDA		— Industrial development authority
IDRB		— Industrial development revenue bond
RAN		— Revenue anticipation note
RB		— Revenue bond
TAN		— Tax anticipation note
TECP		— Tax-exempt commercial paper
TRAN		— Tax and revenue anticipation note

52 See financial notes

Schwab AMT Tax-Free Money Fund

Statements of

Changes in Net Assets

For the current and prior report periods. All numbers x 1,000.




Operations


		1/1/06-12/31/06			1/1/05-12/31/05
Net investment income			$31,616			$21,545
Net realized gains or losses	+		48			(223	)


Increase in net assets from operations			31,664			21,322


Distributions Paid
Dividends from net investment income
Sweep Shares			31,422			21,545
Value Advantage Shares	+		194			—


Total dividends from net investment income			31,616			21,545


Transactions in Fund Shares*
Shares Sold
Sweep Shares			5,393,721			5,637,418
Value Advantage Shares	+		101,632			—


Total shares sold			5,495,353			5,637,418


Shares Reinvested
Sweep Shares			30,578			21,042
Value Advantage Shares	+		167			—


Total shares reinvested			30,745			21,042


Shares Redeemed
Sweep Shares			(6,351,764	)		(5,589,996	)
Value Advantage Shares	+		(17,321	)		—


Total shares redeemed			(6,369,085	)		(5,589,996	)

Net transactions in fund shares			(842,987	)		68,464


Net Assets
Beginning of period			1,972,870			1,904,629
Total increase or decrease	+		(842,939	)		68,241


End of period			$1,129,931			$1,972,870


Net investment income not yet distributed			$12			$12


*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

See financial notes 55

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Financial Notes

1. Business Structure of the Fund:

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund are a series of The Charles Schwab Family of Funds (the “trust”), a no-load, open-end management investment company. The company is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended. The list below shows all the funds in the trust including the fund discussed in this report, which are highlighted:



The Charles Schwab Family of Funds (organized October 20, 1989) Schwab Money Market Fund^tmSchwab Government Money Fund^tmSchwab U.S. Treasury Money Fund^tmSchwab Value Advantage Money Fund^® Schwab Municipal Money Fund^tmSchwab California Municipal Money Fund^tmSchwab New York Municipal Money Fund^tmSchwab New Jersey Municipal Money Fund^tm		Schwab Pennsylvania Municipal Money Fund^tmSchwab AMT Tax-Free Money Fund^tmSchwab Massachusetts Municipal Money Fund^tmSchwab Retirement Advantage Money Fund^tmSchwab Investor Money Fund^tmSchwab Advisor Cash Reserves^tmSchwab Cash Reserves

The Schwab Municipal Money Fund offers four share classes: Sweep Shares, Value Advantage Shares, Select Shares and Institutional Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums. The Schwab AMT Tax-Free Money Fund offers two share classes: Sweep Shares and Value Advantage Shares.

The Schwab Florida Municipal Money Fund’s investment objective, investment strategy and name have been changed due to the repeal of the annual intangible personal property tax. Accordingly, the fund’s new name is the Schwab AMT Tax-Free Money Fund and it will no longer invest primarily in securities issued by the State of Florida and its municipalities.

Shares are bought and sold at $1.00 per share. Each share has a par value of 1/1,000 of a cent, and the trustees may authorize the issuance of as many shares as necessary.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The accounting policies are in conformity with the principles generally accepted in the United States of America.


(a)	Security Valuation:

The funds value the securities in their portfolios at amortized cost, which approximates market value.


(b)	Portfolio Investments:

Delayed-Delivery: The funds may buy securities on a delayed-delivery basis. In these transactions, a fund agrees to buy a security for a stated price, with settlement generally occurring within two weeks. If the security’s value falls before settlement occurs, the fund could end up paying more for the security than its market value at the time of settlement. The funds have set aside sufficient securities as collateral for those securities bought on a delayed-delivery basis.


(c)	Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

(d) Investment Income:

Interest income is recorded as it accrues. If the fund buys a debt security at a discount (that is, for less than face value) or a premium (more than face value), it amortizes the discount or premium from the current date to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. If the security is callable (meaning that the issuer has the option to pay it off before its maturity date), then the fund amortizes the premium to the security’s call date and price, rather than the maturity date and price.

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(e) Expenses:

Expenses that are specific to a fund or class within the trust are charged directly to that fund or class. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets. For funds offering multiple share classes, the net investment income, other than class specific expenses and the realized and unrealized gains or losses, are allocated daily to each class in proportion to its net assets.

(f) Distributions to Shareholders:

The funds declare dividends every day they open for business. These dividends, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds may make distributions from any net realized capital gains once a year.

(g) Custody Credit:

Each fund has an arrangement with its custodian bank under which the fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts (if any) are disclosed in the statement of operations as a reduction to the fund’s net operating expenses.

(h) Accounting Estimates:

The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund also keeps certain assets in segregated accounts as required by securities law.

(i) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.

(j) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liability arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with its vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss to be remote.

(k) New Accounting Standards:

Financial Accounting Standards Board Interpretation (FIN) No. 48—Accounting for Uncertainty in Income Taxes—an Interpretation of SFAS No. 109, was issued in July 2006 and is effective for fiscal years beginning after December 15, 2006. A fund with a fiscal year ending December 31 will implement FIN 48 no later than June 29, 2007, and it will apply to all open tax years. This Interpretation provides new requirements for the recognition, measurement, and disclosure in the financial statements of a tax position taken or expected to be taken in a tax return when there is uncertainty about whether that tax position will ultimately be sustained. We have not yet completed our evaluation of the impact, if any, of adopting FIN 48 on the funds’ financial statements.

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of SFAS No. 157 will have on the funds’ financial statement disclosures.


3.	Affiliates and Affiliated Transactions: All dollars amounts are x 1,000.

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the funds’ investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement (Advisory Agreement) between it and the trust. Charles Schwab & Co., Inc. (“Schwab”) is an affiliate of the investment adviser and is the trust’s shareholder services agent and transfer agent.

For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee payable monthly based on the funds’ average daily net assets described as follows:


	Municipal		AMT Tax-Free
Average daily net assets	Money Fund		Money Fund


First $1 billion		0.38%		0.38%
Over $1 billion		0.35%		0.35%
Over $10 billion		0.32%		0.32%
Over $20 billion		0.30%		0.30%
Over $40 billion		0.27%		0.27%

For its transfer agent and shareholder services, Schwab is entitled to receive an annual fee payable monthly based on the funds’ average daily net assets described as follows:


	Transfer Agent Fees		Shareholder Service Fees

Sweep Shares		0.25%		0.20%
Value Advantage Shares		0.05%		0.17%
Select Shares*		0.05%		0.17%
Institutional Shares*		0.05%		0.17%

Although these agreements specify certain fees for these services, CSIM and Schwab have made additional agreements with the fund to limit the total expenses charged, excluding interest, taxes and certain non-routine expenses through April 29, 2007 (July 21, 2007 for AMT Tax-Free Money Fund), as follows:


	Municipal			AMT Tax-Free
	Money Fund			Money Fund


Sweep Shares		0.64%	**		0.64	%***
Value Advantage Shares		0.45%			0.45	%
Select Shares*		0.35%			n/a
Institutional Shares*		0.24%			n/a

* Select Shares and Institutional Shares are only offered by Municipal Money Fund.

** Prior to April 30, 2006, the limit was 0.65% for Sweep Shares.

*** Prior to July 20, 2006, the limit was 0.65% for Sweep Shares.

The funds may make direct transactions with certain other Schwab Funds when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and officers. For the period ended December 31, 2006, the funds’ total security transactions with other Schwab Funds were as follows:


Schwab Municipal Money Fund			$5,253,853
Schwab AMT Tax-Free Money Fund			$2,190,033

Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund

Financial Notes (continued)

3. Affiliates and Affiliated Transactions (continued):
Unless stated, all dollars amounts are x 1,000.

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions within the Schwab Funds. All loans are for temporary or emergency purposes only. The interest rate charged on the loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review of the Board of Trustees of the Schwab Funds. There was no interfund borrowing or lending activity for the funds during the period.

Trustees

Trustees may include people who are officers and/or directors of the investment adviser or Schwab. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these persons for their service as trustees, but it did pay non-interested persons (independent trustees), as noted in the fund’s Statement of Operations.

4. Borrowing:

The funds may borrow money from banks and custodians. The funds may obtain temporary bank loans through the trust to which they belong, to use for meeting shareholder redemptions or for extraordinary or emergency purposes. The Schwab Funds have custodian overdraft facilities and line of credit arrangements of $150 million and $100 million with State Street Corporation, and Bank of America, N.A., respectively. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. There were no borrowings from the line of credit for the funds during the period.


5.	Federal Income Taxes: (All dollars amounts are x 1,000.)

As of December 31, 2006, the components of distributable earnings on a tax-basis were as follows:


	Municipal		AMT Tax-Free
	Money Fund		Money Fund


Undistributed tax-exempt income		—		12

As of December 31, 2006, the funds had capital loss carry forwards available to offset future net capital gains before the expiration dates:


	Municipal		AMT Tax-Free
Expire	Money Fund		Money Fund


2007		$106		—
2008		873		—
2009		—		—
2010		—		—
2011		241		—
2012		1,479		32
2013		652		231

Total		$3,351		$263

For tax purposes, realized capital losses, occurring after October 31, 2006, may be deferred and treated as occurring on the first day of the following fiscal year.


	Municipal		AMT Tax-Free
	Money Fund		Money Fund


Capital losses utilized	$	669	$	48

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Schwab Municipal Money Fund
Schwab AMT Tax-Free Money Fund (Formerly Schwab Florida Municipal Money Fund)

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab Municipal Money Fund and Schwab AMT Tax-Free Money Fund (two of the portfolios constituting The Charles Schwab Family of Funds, hereafter referred to as the “Funds”) at December 31, 2006, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
February 15, 2007

Trustees and Officers

The tables below gives information about the trustees and officers for The Charles Schwab Family of Funds, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Laudus Trust, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. As of December 31, 2006, the Fund Complex included 95 funds.

The address for all trustees and officers is 101 Montgomery Street, San Francisco, CA 94104. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-800-435-4000.


Independent Trustees
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Mariann Byerwalter 1960 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Chairman of JDN Corporate Advisory LLC. From 1996 to 2001, Vice President for Business Affairs and Chief Financial Officer of Stanford University, and in 2001, Special Advisor to the President of Stanford University.		95	Board 1—Director, Redwood Trust, Inc. Board 2—Director, PMI Group, Inc.


Donald F. Dorward 1931 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chief Executive Officer, Dorward & Associates (corporate management, marketing and communications consulting firm). From 1996-1999, Executive Vice President and Managing Director, Grey Advertising. Prior to 1996, President and Chief Executive Officer, Allen & Dorward Advertising.		57	None.


William A. Hasler 1941 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Retired. Dean Emeritus, Haas School of Business, University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals). Prior to August 1998, Dean of the Haas School of Business, University of California, Berkeley (higher education).		95	Board 1—Director, Mission West Properties Board 2—Director, TOUSA Board 3—Director, Harris-Stratex Networks Board 4—Director, Genitope Corp. Board 5—Director & Non-Executive Chairman, Solectron Corp. Board 6—Director, Ditech Networks


Robert G. Holmes 1931 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman, Chief Executive Officer and Director, Semloh Financial, Inc. (international financial services and investment advisory firm)		57	None.


Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Chairman and Chief Executive Officer and founder of Smith Graham & Co. (investment advisors).		57	Board 1—Board of Cooper Industries Board 2—Chairman of the Audit Committee of Oneok Partners LP.


Independent Trustees continued
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Donald R. Stephens 1938 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Managing Partner, D.R. Stephens & Company (investments). Prior to 1996, Chairman and Chief Executive Officer of North American Trust (real estate investment trust).		57	None.


Michael W. Wilsey 1943 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman and Chief Executive Officer, Wilsey Bennett, Inc. (real estate investment and management, and other investments).		57	None.


Interested Trustees
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Charles R. Schwab²1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman, Chief Executive Officer and Director, The Charles Schwab Corporation, Charles Schwab & Co., Inc.; Chairman and Director, Charles Schwab Investment Management, Inc., Charles Schwab Bank, N. A.; Chairman and Chief Executive Officer, Schwab (SIS) Holdings Inc. I, Schwab International Holdings, Inc.; Chief Executive Officer and Director, Schwab Holdings, Inc.; Director, U.S. Trust Company, N. A., U.S. Trust Corporation, United States Trust Company of New York. Until May 2003, Co-Chief Executive Officer, The Charles Schwab Corporation.		57	None.


Randall W. Merk²1954 Trustee (Trustee of The Charles Schwab Family of Funds since 2005.)	Executive Vice President and President, Schwab Financial Products, Charles Schwab & Co., Inc.; Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc. Prior to September 2002, President and Chief Investment Officer, American Century Investment Management, and Director, American Century Companies, Inc.		95	None.


Officers of the Trust
Name, Year of Birth, and Position(s)
with the Trust; (Term of Office, and
Length of Time Served³)		Principal Occupations During the Past Five Years


Evelyn Dilsaver 1955 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds since 2004.)		President, Chief Executive Officer, and Director, Charles Schwab Investment Management, Inc.; Executive Vice President, Charles Schwab & Co., Inc; President and Chief Executive Officer, Laudus Trust and Laudus Variable Insurance Trust; President, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; President, Mutual Fund Division, UST Advisers, Inc. From June 2003 to July 2004, Senior Vice President, Asset Management Products and Services, Charles Schwab & Co., Inc. Prior to June 2003, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, U.S. Trust, a subsidiary of The Charles Schwab Corporation.


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Chief Financial Officer, Laudus Trust and Laudus Variable Insurance Trust; Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief Financial Officer, Mutual Fund Division, UST Advisors, Inc. Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited. From December 1999 to November 2004, Sr. Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Kimon Daifotis 1959 Senior Vice President and Chief Investment Officer—Fixed Income (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Investment Officer—Fixed Income, Charles Schwab Investment Management, Inc. Prior to 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


Jeffrey Mortimer 1963 Senior Vice President and Chief Investment Officer—Equities (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Investment Officer—Equities, Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer, Laudus Trust and Laudus Variable Insurance Trust. Prior to 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


Randall Fillmore 1960 Chief Compliance Officer and AML Officer (Officer of The Charles Schwab Family of Funds since 2002.)		Senior Vice President and Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President Charles Schwab & Co., Inc.; Chief Compliance Officer, Laudus Trust and Laudus Variable Insurance Trust; Chief Compliance Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc., and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc.


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of The Charles Schwab Family of Funds since 1998.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc.; Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc.; Chief Legal Officer, Laudus Trust and Laudus Variable Insurance Trust; Chief Legal Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. Prior to June 1998, Branch Chief in Enforcement at U.S. Securities and Exchange Commission in San Francisco.


Catherine MacGregor 1964 Vice President (Officer of The Charles Schwab Family of Funds since 2005)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc., Laudus Trust and Laudus Variable Insurance Trust; since 2006, Chief Counsel, Laudus Trust and Laudus Variable Insurance Trust. Until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP.


Cathy Sabo 1964 Vice President (Officer of The Charles Schwab Family of Funds since 2005)		Vice President, Compliance, Charles Schwab Investment Management, Inc., Laudus Trust and Laudus Variable Insurance Trust. Until 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.


Officers of the Trust continued
Name, Year of Birth, and Position(s)
with the Trust; (Term of Office, and
Length of Time Served³)		Principal Occupations During the Past Five Years


Michael Haydel 1972 Vice President (Officer of The Charles Schwab Family of Funds since 2006)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President and AML Officer, Laudus Trust and Laudus Variable Insurance Trust. Until March 2004, Director Charles Schwab & Co., Inc.


¹	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab Funds retirement policy requires that independent trustees elected after January 1, 2000 retire at age 72 or after twenty years of service as a trustee, whichever comes first. Independent trustees elected prior to January 1, 2000 will retire on the following schedule: Messrs. Holmes and Dorward will retire on December 31, 2007, and Messrs. Stephens and Wilsey will retire on December 31, 2010.

²	In addition to their employment with the investment adviser and the distributor, Messrs. Schwab and Merk also own stock of The Charles Schwab Corporation. Mr. Schwab and Mr. Merk are Interested Trustees because they are employees of Schwab and/or the adviser.

³	The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each other officer serves at the pleasure of the Board.

Glossary

agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment alternative offering a high degree of credit quality.

Alternative Minimum Tax (AMT) A federal income tax designed to limit the extent to which high-income taxpayers (including individuals, estates, trusts and corporations) can benefit from certain deductions and exemptions. For example, some types of income that are exempt from regular federal income tax are not exempt from the AMT.

asset-backed securities Bonds or other debt securities that represent ownership in a pool of assets such as credit card debt.

bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the “coupon rate”) until a specified date (the “maturity date”), at which time the issuer returns the money borrowed (“principal” or “face value”) to the bondholder. Because of their structure, bonds are sometimes called “fixed income securities” or “debt securities.”

An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.

bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.

bond anticipation notes Obligations sold by a municipality on an interim basis in anticipation of the municipality’s issuance of a longer-term bond in the future.

capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

commercial paper Promissory notes issued by banks, corporations, state and local governments and other entities to finance short-term credit needs. These securities generally are structured on a discounted basis but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk.

credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly limit the credit quality of the securities a money market fund can buy.

credit ratings Debt issuers, including corporations, states and municipalities, may arrange with a recognized independent rating organization, such as Standard & Poor’s, Fitch, Inc. and Moody’s Investor Service, to rate their creditworthiness and/or the creditworthiness of their debt issues. For example, an issuer may obtain a long-term rating within the investment grade rating category, which is, from high to low, AAA, AA, A and BBB for Standard & Poor’s and Fitch, and Aaa, Aa, A and Baa for Moody’s.

credit risk The risk that a debt issuer may be unable to pay interest or principal to its debtholders.

dollar-weighted average maturity (DWAM) See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all dividends were reinvested in additional shares of the fund.

expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

illiquid securities Securities are generally considered illiquid if they cannot be disposed of promptly (typically within seven days) and in the ordinary course of business at approximately the amount at which a fund has valued the instruments.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

liquidity-enhanced security A security that when tendered is paid from funds advanced by an entity other than the issuer (such as a large financial institution). Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities prior to their final maturity.

maturity The date a debt security is scheduled to be “retired” and its principal amount returned to the bondholder.

Portfolio terms

To help reduce the space occupied by the portfolio holdings, we use the following terms. Most of them appear within descriptions of individual securities in municipal funds, and describe features of the issuer or the security. Some of these are more fully defined elsewhere in the Glossary.


ACES			Adjustable convertible extendable security
BAN			Bond anticipation note
COP			Certificate of participation
GAN			Grant anticipation note
GO			General obligation
HDA			Housing Development Authority
HFA			Housing Finance Agency
IDA			Industrial Development Authority
IDB			Industrial Development Board
IDRB			Industrial Development Revenue Bond
M/F			Multi-family
RAN			Revenue anticipation note
RB			Revenue bond
S/F			Single-family
TAN			Tax anticipation note
TECP			Tax-exempt commercial paper
TRAN			Tax and revenue anticipation note
VRD			Variable-rate demand

money market securities High-quality, short-term debt securities that may be issued by entities such as the U.S. government, corporations and financial institutions (such as banks). Money market securities include commercial paper, promissory notes, certificates of deposit, bankers acceptances, notes and time deposits.

muni, municipal bonds, municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.

net asset value per share (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding. Money funds seek to maintain a steady NAV of $1.00.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

revenue anticipation notes Obligations that are issued in expectation of the receipt of revenue, such as income taxes, property taxes, etc.

section 3c7 securities Section 3c7 of the Investment Company Act of 1940 (the “1940 Act”) exempts certain issuers from many regulatory requirements applicable to investment companies under the 1940 Act. An issuer whose outstanding securities are exclusively owned by “qualified purchasers” and who is not making or proposing to make a public offering of the securities may qualify for this exemption.

section 4(2)/144A securities Securities exempt from registration under Section 4(2) of the Securities Act of 1933. These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

taxable-equivalent yield The yield an investor would need to get from a taxable investment in order to match the yield paid by a given tax-exempt investment, once the effect of all applicable taxes is taken into account. For example, if your tax rate were 25%, a tax-exempt investment paying 4.5% would have a taxable-equivalent yield for you of 6.0% (4.5% ¸ [1 – 0.25%] = 6.0%).

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

tax anticipation notes Notes that typically are sold to finance the cash flow needs of municipalities in anticipation of the receipt of taxes on a future date.

Tier 1, Tier 2 Tier 1 is the highest category of credit quality, Tier 2 the second highest. A security’s tier can be established either by an independent rating organization or by a determination of the investment adviser. Money market fund shares and U.S. government securities are automatically considered Tier 1 securities.

weighted average maturity For mutual funds, the maturity of all the debt securities in its portfolio, calculated as a weighted average. As a rule, the longer a fund’s weighted average maturity, the greater its interest rate risk. Money funds are required to maintain a weighted average maturity of no more than 90 days.

yield The income paid out by an investment, expressed as a percentage of the investments market value.

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you’re an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting Schwab’s website at www.schwab.com/schwabfunds, the SEC’s website at http://www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting Schwab’s website at www.schwab.com/schwabfunds or the SEC’s website at http://www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Premier Equity Fund^tm

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

Schwab Technology Fund^tm

Schwab Institutional Select^® S&P 500 Fund

Schwab S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Viewpoints Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2020 Fund

Schwab Target 2030 Fund

Schwab Target 2040 Fund

Schwab Retirement Income Fund

Bond Funds

Schwab YieldPlus Fund^®

Schwab Short-Term Bond Market Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab Inflation Protected Fund^tm

Schwab Tax-Free YieldPlus Fund^tm

Schwab Short/Intermediate Tax-Free Bond Fund^tm

Schwab Long-Term Tax-Free Bond Fund^tm

Schwab California Tax-Free YieldPlus Fund^tm

Schwab California Short/Intermediate

Tax-Free Bond Fund^tm

Schwab California Long-Term Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds that seek high current income consistent with safety and liquidity.¹ Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.


¹	Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

From the Chairman

Charles Schwab

Chairman

Dear Shareholder,

In closing, once again I want to thank you for choosing Schwab. We strive every day to warrant the trust you have placed in us.

Sincerely,

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

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund 1

From the President

Dear Shareholder,

In closing, I speak for all of us at Schwab when I say our goal is to give you the financial products, guidance and personal relationship you need to succeed.

Thank you for investing in Schwab Funds^®.

Sincerely,

Investment income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Capital gains are not exempt from federal income tax.

2 Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

The Investment Environment and the Funds

Linda Klingman, vice president and senior portfolio manager, has overall responsibility for the management of the funds.

Mike Neitzke, portfolio manager, has day-to-day responsibility for management of the funds.

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund 3

The Investment Environment and the Funds continued

As the Fed raised short-term interest rates earlier in the year, the money market yield curve maintained a positive slope. In this environment, the funds’ variable rate securities holdings were beneficial as their interest rates reset frequently, allowing the funds to quickly capture the rise in market rates.

Mid-year, our expectations were that growth would slow and inflation would moderate leading the Fed to pause in its rate-hiking campaign. At this time, we felt the longer end of the curve represented value and provided a good opportunity to add yield to the portfolios. To that end, we extended the funds and maintained a weighted average maturity (WAM) longer than other funds with similar investment objectives throughout the second half of the year. This action benefited the funds’ performance because we extended the WAM during a period in which the money market curve was positively sloped. This allowed us to add yield to the portfolios prior to the flattening and subsequent inversion of the curve.

Nothing in this report represents a recommendation of a security by the investment adviser.

Manager views and portfolio holdings may have changed since the report date.

4 Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Performance and Fund Facts as of 12/31/06

Seven-Day Yields

The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.


	Retirement Advantage
	Money Fund		Investor Money Fund
Ticker Symbol	SWIXX		SWRXX


Seven-Day Yield¹		4.89%		4.72%

Seven-Day Yield–No Waiver²		4.72%		n/a

Seven-Day Effective Yield¹		5.01%		4.83%

Statistics

Money funds must maintain a dollar-weighted average maturity of no longer than 90 days, and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).


	Retirement Advantage
	Money Fund	Investor Money Fund


Weighted Average Maturity	55 days	59 days

Credit Quality of Holdings % of portfolio	100% Tier 1	100% Tier 1

Minimum Initial Investment³	$25,000	$1 Retirement Plan Participants
		$2,500 Other Investors

Portfolio holdings may have changed since the report date.

¹Fund expenses have been partially absorbed by CSIM and Schwab.

²Yield if fund expenses had not been partially absorbed by CSIM and Schwab.

³Please see prospectus for further detail and eligibility requirements.

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund 5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 7/1/06		at 12/31/06		7/1/06–12/31/06



Schwab Retirement Advantage Money Fund^tm
Actual Return		0.49%	$	1,000	$	1,024.80	$	2.50
Hypothetical 5% Return		0.49%	$	1,000	$	1,022.74	$	2.50


Schwab Investor Money Fund^tm
Actual Return		0.67%	$	1,000	$	1,024.00	$	3.42
Hypothetical 5% Return		0.67%	$	1,000	$	1,021.83	$	3.41

¹Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights.

²Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

6 Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Schwab Retirement Advantage Money Fund

Portfolio Holdings as of December 31, 2006

This section shows all the securities in the fund’s portfolio by industry classification and their value as of the report date.

For fixed rate obligations, the rate shown is the effective yield at the time of purchase, except U.S. Treasury notes, for which the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date and the maturity date shown is the next interest rate change date.

Cost

Value

Holdings by Category

($ x 1,000)

.5%

Fixed-Rate Obligations

621,256

.7%

Variable-Rate Obligations

61,851

.6%

Other Investments

117,402

.8%

Total Investments

800,509

.2%

Other Assets and Liabilities

1,721

100

.0%

Net Assets

802,230


Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)





Fixed-Rate Obligations 77.5% of net assets




Bank Notes 2.3%


Bank of America, N.A.
5.33%, 02/13/07		5,000		5,000
5.33%, 03/08/07		1,000		1,000
5.30%, 03/09/07		9,000		9,000
5.31%, 04/02/07		3,000		3,000

				18,000


Certificates of Deposit 20.1%


Abbey National Treasury Services PLC
5.32%, 06/22/07 (a)		2,000		2,000
Alliance & Leicester PLC
5.34%, 03/01/07		5,000		5,000
Banco Bilbao Vizcaya Argentaria S.A.
5.53%, 02/27/07		6,000		5,995
Bank of the West
5.34%, 04/26/07		5,000		5,000
Bank of Tokyo Mitsubishi UFJ, Ltd
5.31%, 04/03/07		7,000		7,000
Barclays Bank PLC
5.31%, 01/04/07		1,000		1,000
5.32%, 02/13/07		6,000		6,000
5.33%, 02/14/07		8,000		8,000
5.33%, 03/27/07		2,000		2,000
4.26%, 04/05/07		5,000		5,000
Bayerische Hypo- und Vereinsbank AG
5.32%, 01/24/07		2,000		2,000
BNP Paribas
5.36%, 05/31/07		2,000		2,000
5.32%, 06/27/07		6,000		6,000
Calyon ECD
5.31%, 06/22/07		2,000		2,000
Canadian Imperial Bank of Commerce
5.33%, 02/16/07		9,000		9,000
Citibank, N.A.
5.30%, 03/12/07		7,000		7,000
5.33%, 03/27/07		3,000		3,000
Citizens Bank Of Pennsylvania
5.33%, 01/31/07		3,000		3,000
Credit Agricole S.A.
5.32%, 02/09/07		6,000		6,000
Credit Suisse
5.37%, 03/08/07		4,000		4,000
Deutsche Bank, AG
4.85%, 01/26/07		2,000		2,000
5.01%, 02/09/07		1,000		1,000
5.42%, 02/12/07		6,000		6,000
5.25%, 03/20/07		5,000		4,998
DnB NOR Bank ASA
5.33%, 01/18/07		1,000		1,000
HSBC Bank, PLC
5.31%, 05/08/07		7,000		7,000
Landesbank Baden-Wurttemberg
5.32%, 01/05/07		1,000		1,000
Landesbank Hessen-Thueringen Girozentrale
5.32%, 01/16/07		2,000		2,000
Mitsubishi UFJ Trust & Banking Corp.
5.57%, 01/08/07		3,000		3,000
5.31%, 05/08/07		3,000		3,000
Mizuho Corporate Bank Ltd.
5.33%, 01/10/07		2,000		2,000
5.32%, 05/03/07		1,000		1,000
Northern Rock, PLC
5.33%, 01/23/07		3,000		3,000
5.32%, 02/05/07		2,000		2,000
Royal Bank of Scotland, PLC
5.32%, 03/15/07		2,000		2,000
San Paolo IMI SpA
5.32%, 02/16/07		2,000		2,000
Skandinaviska Enskilda Banken AB
5.31%, 05/30/07		5,000		5,000
Societe Generale
5.32%, 02/12/07		1,000		1,000
5.31%, 04/04/07		1,000		1,000
5.32%, 06/22/07		3,000		3,000
Svenska Handelsbanken AB
5.30%, 03/12/07		6,000		6,000
Unicredito Italiano SpA
5.32%, 01/26/07		5,000		5,000
5.42%, 02/28/07		2,000		2,000
5.33%, 06/21/07		1,000		1,000
Washington Mutual Bank
5.34%, 03/20/07		2,000		2,000
5.29%, 05/30/07		1,000		1,000

				160,993

8 See financial notes

Schwab Retirement Advantage Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Commercial Paper & Other Corporate Obligations 54.6%

Alliance & Leicester, PLC

5.33%, 03/08/07 (c)
1,000 990

Amstel Funding Corp.

5.31%, 03/28/07 (b)(c)
1,000 988

5.36%, 04/13/07 (b)(c)
5,000 4,926

5.34%, 04/20/07 (b)(c)
3,000 2,953

Amsterdam Funding Corp.

5.35%, 05/04/07 (a)(b)(c)
3,000 2,947

Anglo Irish Bank Corp., PLC

5.33%, 01/19/07 (c)
1,000 997

ANZ National (In’t) Ltd.

5.31%, 03/30/07 (a)
4,000 3,949

Aquinas Funding, L.L.C.

5.33%, 03/26/07 (a)(b)(c)
2,000 1,975

5.33%, 07/06/07 (a)(b)(c)
2,000 1,946

Atlantis One Funding Corp.

5.36%, 01/10/07 (b)(c)
3,000 2,996

5.30%, 02/02/07 (b)(c)
1,000 995

5.32%, 02/16/07 (b)(c)
1,000 993

5.41%, 02/16/07 (b)(c)
3,000 2,980

5.33%, 02/22/07 (b)(c)
4,000 3,970

5.30%, 03/16/07 (b)(c)
4,000 3,957

5.38%, 03/16/07 (b)(c)
1,500 1,484

Australia & New Zealand Banking Group

5.35%, 01/08/07
3,000 2,997

Bank of America Corp.

5.35%, 02/26/07
1,000 992

5.30%, 03/06/07
12,000 11,888

5.30%, 03/09/07
1,000 990

5.33%, 03/09/07
4,000 3,961

5.33%, 03/19/07
2,000 1,978

5.30%, 04/27/07
5,000 4,916

Bank of Ireland

5.31%, 05/21/07 (c)
4,000 3,919

Bear Stearns Companies, Inc.

5.34%, 01/17/07
1,000 998

5.33%, 01/19/07
3,000 2,992

5.37%, 03/09/07
1,000 990

Beta Finance, Inc.

5.32%, 01/05/07 (b)(c)
3,000 2,998

Calyon North America, Inc.

5.31%, 04/03/07 (a)
5,000 4,933

Cancara Asset Securitisation, L.L.C.

5.32%, 01/12/07 (a)(b)(c)
5,000 4,992

5.33%, 01/17/07 (a)(b)(c)
2,000 1,995

CC (USA), Inc.

5.33%, 01/30/07 (b)(c)
1,000 996

5.37%, 03/09/07 (b)(c)
2,000 1,981

5.31%, 05/22/07 (b)(c)
4,000 3,919

Chariot Funding, L.L.C.

5.31%, 02/07/07 (a)(b)(c)
5,000 4,973

Citigroup Funding, Inc.

5.33%, 01/18/07 (a)
7,000 6,983

5.32%, 01/19/07 (a)
1,000 997

5.32%, 01/24/07 (a)
3,000 2,990

5.33%, 02/20/07 (a)
8,000 7,942

5.34%, 04/23/07 (a)
2,500 2,459

Clipper Receivables Co., L.L.C.

5.30%, 01/12/07 (a)(b)(c)
11,000 10,982

Cobbler Funding, L.L.C.

5.31%, 03/01/07 (b)(c)
1,500 1,487

5.34%, 03/15/07 (b)(c)
1,000 989

Concord Minutemen Capital Co., Series A

5.31%, 01/11/07 (a)(b)(c)
4,000 3,994

5.32%, 01/22/07 (a)(b)(c)
4,000 3,988

5.43%, 02/14/07 (a)(b)(c)
2,000 1,987

Crown Point Capital Co., L.L.C.

5.32%, 01/18/07 (a)(b)(c)
6,000 5,985

5.33%, 01/18/07 (a)(b)(c)
3,330 3,322

5.33%, 02/06/07 (a)(b)(c)
2,481 2,468

Dakota CP Notes of Citibank Credit Card Issuance Trust

5.32%, 01/08/07 (b)(c)
4,000 3,996

5.34%, 01/22/07 (b)(c)
4,000 3,988

5.33%, 02/08/07 (b)(c)
7,000 6,961

5.33%, 02/08/07 (b)(c)
2,000 1,989

5.33%, 02/09/07 (b)(c)
1,000 994

Dexia Delaware, L.L.C.

5.31%, 03/13/07 (a)
6,000 5,938

DnB NOR Bank ASA

5.42%, 02/15/07
3,000 2,980

5.42%, 02/21/07
4,000 3,970

Dorada Finance, Inc.

5.37%, 03/08/07 (b)(c)
2,000 1,981

5.33%, 04/02/07 (b)(c)
1,000 987

Edison Asset Securitization Corp., L.L.C.

5.32%, 06/20/07 (a)(b)(c)
2,000 1,951

Fairway Finance Co., L.L.C.

5.31%, 03/12/07 (a)(b)(c)
5,000 4,949

Falcon Asset Securitization Corp.

5.31%, 01/09/07 (a)(b)(c)
2,703 2,700

Five Finance, Inc.

5.32%, 02/15/07 (b)(c)
1,000 993

5.33%, 02/22/07 (b)(c)
1,000 992

5.31%, 03/09/07 (b)(c)
1,000 990

5.31%, 03/29/07 (b)(c)
1,000 988

Galaxy Funding, Inc.

5.30%, 03/05/07 (b)(c)
3,000 2,973

General Electric Capital Corp.

5.57%, 04/20/07
3,000 2,951

5.41%, 05/01/07
8,000 7,861

5.38%, 05/25/07
7,000 6,855

5.30%, 06/11/07
2,000 1,954

5.32%, 06/28/07
5,000 4,873

General Electric Capital Services

5.32%, 02/06/07
4,000 3,979

5.31%, 07/05/07
5,000 4,867

Grampian Funding L.L.C.

5.32%, 03/28/07 (a)(b)(c)
1,000 988

HBOS Treasury Services PLC

5.33%, 02/08/07 (a)
4,500 4,475

5.33%, 02/12/07 (a)
4,000 3,975

HSBC U.S.A., Inc.

5.33%, 06/21/07
3,000 2,926

IXIS Commercial Paper Corp.

5.55%, 01/04/07 (a)(c)
1,000 1,000

5.30%, 01/19/07 (a)(c)
5,000 4,987

5.31%, 03/16/07 (a)(c)
1,250 1,237

Jupiter Securitization Corp.

5.31%, 02/05/07 (a)(b)(c)
3,250 3,233

5.30%, 02/07/07 (a)(b)(c)
2,690 2,675

See financial notes 9

Schwab Retirement Advantage Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

K2 (USA), Inc.

5.33%, 01/10/07 (b)(c)
2,000 1,997

5.32%, 01/16/07 (b)(c)
1,000 998

5.37%, 03/20/07 (b)(c)
2,000 1,977

Klio II Funding Corp.

5.33%, 01/22/07 (b)(c)
2,500 2,492

5.32%, 03/08/07 (b)(c)
2,130 2,110

Klio III Funding Corp.

5.35%, 01/12/07 (b)(c)
1,000 998

5.35%, 01/24/07 (b)(c)
3,000 2,990

Lexington Parker Capital Co., L.L.C.

5.32%, 01/16/07 (a)(b)(c)
2,000 1,996

5.33%, 02/02/07 (a)(b)(c)
3,000 2,986

5.32%, 02/09/07 (a)(b)(c)
1,500 1,492

Mane Funding Corp.

5.33%, 01/23/07 (b)(c)
1,000 997

5.31%, 02/06/07 (b)(c)
2,000 1,989

Merrill Lynch & Co., Inc.

5.36%, 06/15/07
6,000 5,858

Mont Blanc Capital Corp.

5.30%, 03/07/07 (a)(b)(c)
1,000 991

5.32%, 03/21/07 (a)(b)(c)
3,000 2,966

Morgan Stanley

5.32%, 06/26/07
9,000 8,772

Nationwide Building Society US

5.31%, 05/03/07
5,500 5,404

Nieuw Amsterdam Receivables Corp.

5.33%, 01/16/07 (a)(b)(c)
3,193 3,186

Old Line Funding, L.L.C.

5.33%, 01/22/07 (a)(b)(c)
12,322 12,284

Park Granada, L.L.C.

5.32%, 01/17/07 (b)(c)
3,364 3,356

Picaros Funding, L.L.C.

5.32%, 01/10/07 (a)(b)(c)
4,000 3,995

5.38%, 03/01/07 (a)(b)(c)
2,000 1,983

Ranger Funding Co., L.L.C.

5.31%, 01/23/07 (a)(b)(c)
1,000 997

San Paolo IMI U.S. Financial Co.

5.37%, 03/13/07 (a)
6,000 5,938

Santander Central Hispano Finance (Delaware), Inc.

5.35%, 04/25/07 (a)
4,000 3,934

Scaldis Capital Ltd.

5.30%, 02/26/07 (a)(b)(c)
4,356 4,321

5.31%, 03/12/07 (a)(b)(c)
2,000 1,980

5.32%, 03/26/07 (a)(b)(c)
5,000 4,939

Sedna Finance, Inc.

5.33%, 01/24/07 (b)(c)
1,000 997

5.33%, 03/21/07 (b)(c)
2,000 1,977

Sheffield Receivables Corp.

5.32%, 01/08/07 (a)(b)(c)
4,000 3,996

Sigma Finance, Inc.

5.33%, 03/05/07 (b)(c)
5,000 4,954

5.30%, 03/06/07 (b)(c)
1,500 1,486

5.31%, 05/29/07 (b)(c)
4,000 3,915

Societe Generale North America, Inc.

5.33%, 03/01/07 (a)
7,950 7,882

5.30%, 03/08/07 (a)
1,650 1,634

5.30%, 06/11/07 (a)
1,000 977

Stanfield Victoria Funding

5.33%, 03/06/07 (b)(c)
3,500 3,467

Svenska Handelsbanken, Inc.

5.33%, 01/26/07 (a)
3,800 3,786

Swedbank AB

5.34%, 05/02/07
1,500 1,474

Swedbank Mortgage AB

5.31%, 02/07/07
3,000 2,984

Swedbank AB

5.33%, 02/21/07
2,000 1,985

Thunder Bay Funding, L.L.C.

5.32%, 01/10/07 (a)(b)(c)
3,000 2,996

5.33%, 01/16/07 (a)(b)(c)
3,000 2,993

Tulip Funding Corp.

5.33%, 01/16/07 (a)(b)(c)
1,115 1,113

UBS Finance (Delaware), Inc.

5.35%, 02/01/07 (a)
5,000 4,977

5.33%, 04/02/07 (a)
1,150 1,135

Unicredito Italiano Bank (Ireland) PLC

5.33%, 02/06/07 (c)
1,000 995

5.33%, 02/07/07 (c)
1,000 995

Westpac Banking Corp.

5.32%, 01/22/07 (c)
10,000 9,969

Westpac Trust Securities NZ Ltd.

5.33%, 02/12/07 (a)(c)
1,000 994

Windmill Funding Corp.

5.32%, 01/04/07 (a)(b)(c)
1,000 1,000

5.32%, 01/25/07 (a)(b)(c)
2,500 2,491

5.32%, 01/25/07 (a)(b)(c)
2,000 1,993

5.32%, 01/26/07 (a)(b)(c)
3,000 2,989

438,263

Promissory Notes 0.5%

The Goldman Sachs Group, Inc.

5.64%, 04/10/07 (d)
4,000 4,000

Total Fixed-Rate Obligations
(Cost $621,256) 621,256

Variable-Rate Obligations 7.7% of net assets

BMC Special Care Facilities Financing Authority of the City of Montgomery, Alabama

5.35%, 01/04/07 (a)
1,780 1,780

BNP Paribas

5.30%, 01/02/07
5,000 4,999

5.29%, 01/03/07
9,000 8,998

CC (USA), Inc.

5.36%, 01/16/07 (b)(c)
6,000 6,000

City of New Britain, Connecticut

5.38%, 01/04/07 (a)
2,800 2,800

City of Palm Springs, California

5.35%, 01/04/07 (a)
8,000 8,000

Liberty Lighthouse U.S. Capital Co., L.L.C.

5.32%, 01/02/07 (b)(c)
2,000 2,000

Links Finance, L.L.C.

5.36%, 01/29/07 (b)(c)
1,000 1,000

LoanStar Assets Partners II, L.P.

5.37%, 01/04/07 (a)
5,000 5,000

New York City IDA

5.40%, 01/04/07 (a)
145 145

Royal Bank of Canada

5.28%, 01/03/07
9,000 8,999

Sigma Finance, Inc.

5.34%, 03/26/07 (b)(c)
3,000 3,000

10 See financial notes

Schwab Retirement Advantage Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Sumitomo Trust & Banking Co.

5.35%, 01/29/07
5,000 5,000

Wachovia Asset Securitization Issuance, L.L.C.

5.34%, 01/25/07 (a)(b)(c)
1,129 1,130

White Pine Finance, L.L.C.

5.31%, 01/22/07 (b)(c)
3,000 3,000

Total Variable-Rate Obligations
(Cost $61,851) 61,851

Maturity Amount
Value

Security ($ x 1,000) ($ x 1,000)

Other Investments 14.6% of net assets

Repurchase Agreements 14.6%

Credit Suisse Securities (USA), L.L.C.

Tri-Party Repurchase Agreement dated 12/29/06, due 01/02/07 at 5.32%, fully collateralized by U.S. Government Securities with a value of $2,453.
2,403 2,402

UBS Financial Services, Inc.

Tri-Party Repurchase Agreement dated 12/29/06, due 01/02/07 at 5.32%, fully collateralized by U.S. Government Securities with a value of $117,302.
115,068 115,000

Total Other Investments
(Cost $117,402) 117,402

End of Investments.

At 12/31/06, the tax basis cost of the fund’s investments was $800,509.

At 12/31/06, portfolio holdings included illiquid and/or restricted securities as follows:


Issuer
Rate, Acquisition Date,	Face Amount		Value
Maturity Date	($ x 1,000)		($ x 1,000)




The Goldman Sachs Group, Inc.
5.64%, 07/14/06, 04/10/07		4,000		4,000


(a)		Credit-enhanced security.
(b)		Asset-backed security.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $277,094 or 34.5% of net assets.
(d)		Restricted and/or illiquid security.

IDA — Industrial Development Authority

See financial notes 11

Schwab Investor Money Fund

Portfolio Holdings as of December 31, 2006

This section shows all the securities in the fund’s portfolio and their value as of the report date.

Cost

Value

Holdings by Category

($ x 1,000)

.8%

Fixed-Rate Obligations

1,048,722

.8%

Variable-Rate Obligations

128,405

.5%

Other Investment

138,200

100

.1%

Total Investments

1,315,327

.1)%

Other Assets and Liabilities

(1,673

)

100

.0%

Net Assets

1,313,654


Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)





Fixed-Rate Obligations 79.8% of net assets




Bank Notes 0.9%


Bank of America, N.A.
5.51%, 01/24/07		4,000		4,000
5.31%, 03/02/07		4,000		4,000
5.33%, 03/08/07		2,000		2,000
5.31%, 04/02/07		2,000		2,000

				12,000


Certificates of Deposit 22.5%


Banca Intesa SpA
5.32%, 02/28/07		2,000		2,000
5.35%, 04/16/07		6,000		6,000
5.36%, 04/18/07		2,000		2,000
Banco Bilbao Vizcaya Argentaria S.A.
5.33%, 01/22/07		15,000		15,001
Bank of Ireland
5.33%, 05/10/07		4,000		4,000
Bank of the West
5.31%, 01/24/07		3,000		3,000
Barclays Bank PLC
5.31%, 01/04/07		4,000		4,000
5.32%, 01/30/07		3,000		3,000
5.32%, 02/13/07		2,000		2,000
5.30%, 03/12/07		3,000		2,998
5.31%, 03/13/07		7,000		7,000
5.26%, 04/05/07		2,000		2,000
Bayerische Hypo- und Vereinsbank AG
5.32%, 01/24/07		2,000		2,000
BNP Paribas
5.31%, 04/04/07		1,000		1,000
5.36%, 05/31/07		3,000		3,000
5.32%, 06/27/07		13,000		13,000
Calyon
5.31%, 01/29/07		2,000		2,000
5.33%, 02/20/07		10,000		10,000
Citibank, N.A.
5.33%, 01/29/07		5,000		5,000
5.32%, 03/27/07		3,000		3,000
Credit Agricole S.A.
5.36%, 01/11/07		2,000		2,000
5.32%, 02/09/07		13,000		13,000
5.34%, 04/30/07		2,000		2,000
5.37%, 05/18/07		5,000		5,000
Credit Suisse
5.37%, 03/08/07		2,000		2,000
5.30%, 06/14/07		19,000		19,000
Deutsche Bank, AG
4.85%, 01/26/07		2,000		2,000
5.01%, 02/09/07		1,000		1,000
5.42%, 02/12/07		25,000		25,000
DnB NOR Bank ASA
5.33%, 01/18/07		1,000		1,000
First Tennessee Bank, N.A.
5.32%, 02/28/07		5,000		5,000
HSBC Bank, PLC
5.31%, 05/08/07		12,000		12,000
ING Bank N.V.
5.40%, 02/20/07		5,000		5,000
Landesbank Baden-Wurttemberg
5.32%, 01/05/07		3,000		3,000
5.32%, 03/28/07		9,000		9,000
Landesbank Hessen-Thueringen Girozentrale
5.32%, 01/16/07		4,000		4,000
Lloyds TSB Bank, PLC
5.30%, 01/09/07		7,000		7,000
Mitsubishi UFJ Trust & Banking Corp.
5.58%, 01/22/07		7,000		7,000
5.31%, 05/08/07		2,000		2,000
Mizuho Corporate Bank Ltd.
5.33%, 01/10/07		5,000		5,000
5.33%, 02/27/07		1,000		1,000
Northern Rock, PLC
5.33%, 01/23/07		4,000		4,000
5.32%, 02/05/07		3,000		3,000
San Paolo IMI SpA
5.32%, 02/16/07		18,000		18,000
Skandinaviska Enskilda Banken AB
5.31%, 05/30/07		1,000		1,000
Societe Generale
5.32%, 02/12/07		2,000		2,000
5.30%, 04/30/07		3,000		3,000
5.32%, 07/02/07		1,000		1,000
Toronto Dominion Bank
5.40%, 02/21/07		2,000		2,000
5.32%, 03/15/07		13,000		13,000

16 See financial notes

Schwab Investor Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Unicredito Italiano SpA

5.32%, 01/08/07
1,000 1,000

5.45%, 02/09/07
1,000 1,000

5.38%, 03/13/07
8,000 8,000

5.40%, 03/20/07
4,000 4,000

5.33%, 06/21/07
5,000 5,000

Washington Mutual Bank

5.50%, 02/01/07
2,000 2,000

Wilmington Trust Co.

5.36%, 04/13/07
4,000 4,000

295,999

Commercial Paper & Other Corporate Obligations 56.4%

Alliance & Leicester PLC

5.33%, 03/08/07 (c)
2,000 1,981

5.33%, 05/18/07 (c)
2,000 1,960

Allied Irish Banks North America, Inc.

5.38%, 02/28/07 (a)
3,000 2,975

Amstel Funding Corp.

5.32%, 01/26/07 (b)(c)
1,500 1,495

5.42%, 02/21/07 (b)(c)
6,000 5,955

5.31%, 03/26/07 (b)(c)
6,000 5,928

5.36%, 04/13/07 (b)(c)
4,000 3,941

5.32%, 05/18/07 (b)(c)
1,000 980

5.33%, 06/20/07 (b)(c)
1,000 976

Amsterdam Funding Corp.

5.31%, 01/12/07 (a)(b)(c)
2,200 2,196

Anglo Irish Bank Corp., PLC

5.34%, 02/13/07 (c)
2,000 1,987

Aquinas Funding, L.L.C.

5.33%, 07/06/07 (a)(b)(c)
6,000 5,839

Atlantic Asset Securitization, L.L.C.

5.36%, 01/19/07 (a)(b)(c)
2,000 1,995

5.33%, 03/15/07 (a)(b)(c)
6,129 6,064

Atlantis One Funding Corp.

5.58%, 01/03/07 (b)(c)
2,000 1,999

5.45%, 02/07/07 (b)(c)
6,000 5,967

5.37%, 03/05/07 (b)(c)
3,000 2,973

5.32%, 03/14/07 (b)(c)
8,180 8,094

5.32%, 03/27/07 (b)(c)
5,000 4,938

5.33%, 05/09/07 (b)(c)
7,000 6,871

Australia & New Zealand Banking Group

5.35%, 01/08/07
7,500 7,492

Bank of America Corp.

5.32%, 02/05/07
9,000 8,954

5.35%, 02/26/07
8,000 7,935

5.31%, 03/02/07
6,000 5,948

5.32%, 03/07/07
6,000 5,943

5.33%, 03/09/07
5,000 4,951

5.33%, 03/19/07
1,500 1,483

5.31%, 04/02/07
1,000 987

5.30%, 04/27/07
5,000 4,916

5.33%, 06/04/07
4,000 3,911

Bank of Ireland

5.31%, 05/21/07 (c)
6,000 5,879

Barclays US Funding Corp.

5.32%, 01/12/07 (a)
1,000 998

Barton Capital Corp.

5.32%, 01/18/07 (a)(b)(c)
9,000 8,978

Bear Stearns Companies, Inc.

5.37%, 03/08/07
2,000 1,981

5.37%, 03/16/07
2,000 1,979

5.32%, 03/23/07
1,000 988

5.31%, 04/27/07
1,000 983

Beta Finance, Inc.

5.32%, 01/05/07 (b)(c)
1,000 999

Calyon North America, Inc.

5.31%, 03/02/07 (a)
2,000 1,983

Cancara Asset Securitisation, L.L.C.

5.32%, 01/12/07 (a)(b)(c)
8,440 8,426

5.33%, 01/26/07 (a)(b)(c)
4,000 3,985

CC (USA), Inc.

5.33%, 01/24/07 (b)(c)
5,000 4,983

5.37%, 03/09/07 (b)(c)
6,000 5,942

5.38%, 03/22/07 (b)(c)
2,000 1,977

5.31%, 05/22/07 (b)(c)
3,000 2,939

Citigroup Funding, Inc.

5.32%, 01/05/07 (a)
1,000 999

5.32%, 01/18/07 (a)
11,000 10,973

5.32%, 01/18/07 (a)
2,000 1,995

5.32%, 01/19/07 (a)
11,000 10,971

5.32%, 01/24/07 (a)
13,000 12,956

5.33%, 02/20/07 (a)
14,000 13,898

Clipper Receivables Co., L.L.C.

5.32%, 01/25/07 (a)(b)(c)
3,000 2,989

Cobbler Funding L.L.C.

5.31%, 03/01/07 (b)(c)
5,000 4,957

Concord Minutemen Capital Co., Series A

5.43%, 02/14/07 (a)(b)(c)
2,000 1,987

5.42%, 02/20/07 (a)(b)(c)
1,000 993

5.38%, 03/19/07 (a)(b)(c)
10,400 10,283

5.36%, 04/19/07 (a)(b)(c)
4,000 3,937

Crown Point Capital Co., L.L.C.

5.33%, 01/16/07 (a)(b)(c)
2,287 2,282

5.33%, 01/16/07 (a)(b)(c)
2,000 1,996

5.32%, 01/17/07 (a)(b)(c)
11,000 10,974

5.32%, 01/18/07 (a)(b)(c)
1,000 998

5.37%, 04/23/07 (a)(b)(c)
4,000 3,935

Dakota CP Notes of Citibank Credit Card Issuance Trust

5.32%, 01/08/07 (b)(c)
4,000 3,996

5.32%, 01/17/07 (b)(c)
14,000 13,967

5.33%, 02/08/07 (b)(c)
9,000 8,950

5.33%, 02/08/07 (b)(c)
3,000 2,983

DnB NOR Bank ASA

5.46%, 02/08/07
1,000 994

5.42%, 02/15/07
9,000 8,941

5.37%, 03/07/07
1,400 1,387

5.37%, 03/19/07
1,000 989

Dorada Finance, Inc.

5.48%, 01/30/07 (b)(c)
4,000 3,983

5.37%, 03/09/07 (b)(c)
1,000 990

Edison Asset Securitization Corp.

5.32%, 01/05/07 (a)(b)(c)
4,000 3,998

5.32%, 06/20/07 (a)(b)(c)
1,000 976

Falcon Asset Securitization Corp.

5.31%, 01/09/07 (a)(b)(c)
9,000 8,990

Five Finance, Inc.

5.32%, 02/27/07 (b)(c)
5,000 4,958

5.31%, 05/22/07 (b)(c)
2,000 1,959

General Electric Capital Corp.

5.29%, 03/05/07
5,000 4,954

5.41%, 05/01/07
14,000 13,757

5.38%, 05/25/07
5,000 4,897

5.30%, 06/11/07
4,000 3,908

See financial notes 17

Schwab Investor Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

5.32%, 06/28/07
16,000 15,593

General Electric Capital Services

5.32%, 02/06/07
5,000 4,974

5.31%, 07/05/07
11,000 10,708

Grampian Funding, L.L.C.

5.40%, 02/13/07 (a)(b)(c)
1,000 994

5.33%, 02/15/07 (a)(b)(c)
2,000 1,987

5.32%, 03/28/07 (a)(b)(c)
6,000 5,926

5.33%, 04/27/07 (a)(b)(c)
2,450 2,409

5.34%, 04/27/07 (a)(b)(c)
1,000 983

5.33%, 05/21/07 (a)(b)(c)
1,500 1,470

HBOS Treasury Services, PLC

5.32%, 02/06/07 (a)
2,500 2,487

5.32%, 03/14/07 (a)
1,400 1,385

5.31%, 03/26/07 (a)
4,000 3,952

5.32%, 03/26/07 (a)
1,000 988

HSBC U.S.A., Inc.

5.32%, 06/28/07
6,000 5,846

ING (U. S.) Funding, L.L.C.

5.31%, 05/31/07 (a)
1,000 978

Irish Life & Permanent, PLC

5.32%, 02/16/07 (c)
2,000 1,987

5.33%, 06/19/07 (c)
2,500 2,439

IXIS Commercial Paper Corp.

5.55%, 01/04/07 (a)(c)
4,400 4,398

5.30%, 01/19/07 (a)(c)
2,000 1,995

5.31%, 03/26/07 (a)(c)
1,000 988

K2 (USA), L.L.C.

5.33%, 01/10/07 (b)(c)
1,300 1,298

5.57%, 01/16/07 (b)(c)
1,000 998

5.33%, 01/17/07 (b)(c)
1,000 998

5.31%, 03/26/07 (b)(c)
2,000 1,976

KBC Financial Products International, Ltd.

5.29%, 04/05/07 (a)(c)
3,000 2,959

Klio Funding Corp.

5.38%, 01/25/07 (b)(c)
5,000 4,982

Klio II Funding Corp.

5.33%, 01/22/07 (b)(c)
1,000 997

5.37%, 01/25/07 (b)(c)
1,000 996

5.37%, 01/26/07 (b)(c)
7,120 7,094

Lexington Parker Capital Co., L.L.C.

5.31%, 01/04/07 (a)(b)(c)
9,000 8,996

5.36%, 01/09/07 (a)(b)(c)
2,000 1,998

5.31%, 04/12/07 (a)(b)(c)
1,000 985

Links Finance, L.L.C.

5.34%, 04/12/07 (b)(c)
2,000 1,971

Mane Funding Corp.

5.33%, 01/18/07 (b)(c)
1,000 998

5.33%, 01/23/07 (b)(c)
3,000 2,990

5.31%, 02/06/07 (b)(c)
1,000 995

5.33%, 02/20/07 (b)(c)
9,000 8,934

Mont Blanc Capital Corp.

5.30%, 03/07/07 (a)(b)(c)
4,000 3,962

5.32%, 03/21/07 (a)(b)(c)
3,000 2,966

Morgan Stanley

5.33%, 05/22/07
7,000 6,857

5.33%, 06/21/07
8,000 7,803

Nationwide Building Society US

5.36%, 01/08/07
4,500 4,495

5.33%, 03/06/07
5,000 4,953

Nieuw Amsterdam Receivables Corp.

5.33%, 01/16/07 (a)(b)(c)
3,000 2,993

5.33%, 06/13/07 (a)(b)(c)
4,000 3,906

Park Granada, L.L.C.

5.51%, 01/30/07 (b)(c)
1,000 996

5.33%, 04/30/07 (b)(c)
4,000 3,931

Picaros Funding, L.L.C.

5.32%, 01/10/07 (a)(b)(c)
2,000 1,997

5.31%, 02/08/07 (a)(b)(c)
4,000 3,978

5.38%, 03/01/07 (a)(b)(c)
3,000 2,974

San Paolo IMI U.S. Financial Co.

5.32%, 01/30/07 (a)
4,000 3,983

Santander Central Hispano Finance (Delaware), Inc.

5.37%, 04/16/07 (a)
3,000 2,954

5.35%, 04/25/07 (a)
4,000 3,934

Scaldis Capital Ltd.

5.32%, 01/03/07 (a)(b)(c)
1,000 1,000

5.33%, 01/17/07 (a)(b)(c)
6,000 5,986

5.32%, 01/22/07 (a)(b)(c)
3,000 2,991

5.38%, 03/01/07 (a)(b)(c)
12,000 11,897

5.32%, 04/25/07 (a)(b)(c)
1,500 1,475

Sedna Finance, Inc.

5.32%, 01/16/07 (b)(c)
3,000 2,993

5.33%, 01/24/07 (b)(c)
2,000 1,993

Sigma Finance, Inc.

5.56%, 01/12/07 (b)(c)
5,000 4,992

5.33%, 03/05/07 (b)(c)
2,000 1,982

5.33%, 03/29/07 (b)(c)
1,000 987

5.31%, 03/30/07 (b)(c)
1,000 987

5.31%, 05/29/07 (b)(c)
8,000 7,830

Skandinaviska Enskilda Banken AB

5.55%, 01/22/07
10,000 9,969

5.37%, 04/10/07
1,000 986

Societe Generale North America, Inc.

5.33%, 04/02/07 (a)
2,000 1,973

5.37%, 04/20/07 (a)
1,000 984

5.30%, 05/03/07 (a)
5,000 4,913

5.36%, 05/15/07 (a)
2,000 1,962

5.30%, 06/11/07 (a)
3,000 2,931

Stanfield Victoria Funding

5.33%, 01/26/07 (b)(c)
1,000 996

5.33%, 02/15/07 (b)(c)
1,500 1,490

5.32%, 03/06/07 (b)(c)
4,000 3,963

Svenska Handelsbanken, Inc.

5.31%, 01/02/07 (a)
4,000 3,999

Swedbank AG

5.32%, 01/04/07
1,000 1,000

5.34%, 05/02/07
7,000 6,878

Thunder Bay Funding, L.L.C.

5.32%, 01/10/07 (a)(b)(c)
3,000 2,996

5.33%, 02/09/07 (a)(b)(c)
6,805 6,766

UBS Finance (Delaware), Inc.

5.35%, 02/01/07 (a)
6,000 5,973

5.29%, 04/02/07 (a)
16,000 15,790

5.29%, 04/09/07 (a)
16,000 15,774

5.30%, 06/04/07 (a)
6,000 5,867

5.30%, 06/12/07 (a)
1,000 977

Unicredito Italiano Bank (Ireland) PLC

5.33%, 01/08/07 (c)
1,000 999

5.33%, 02/07/07 (c)
2,000 1,989

Westpac Banking Corp.

5.32%, 01/22/07 (c)
9,000 8,972

5.34%, 05/02/07 (c)
1,000 983

5.31%, 05/07/07 (c)
5,000 5,891

5.33%, 05/07/07 (c)
3,000 1,964

18 See financial notes

Schwab Investor Money Fund

Portfolio Holdings continued

Issuer
Face Amount
Value

Rate, Maturity Date ($ x 1,000) ($ x 1,000)

Westpac Trust Securities NZ, Ltd.

5.36%, 04/17/07 (a)(c)
1,000 985

Whistlejacket Capital, L.L.C.

5.37%, 03/01/07 (b)(c)
1,000 991

Windmill Funding Corp.

5.30%, 01/09/07 (a)(b)(c)
17,000 16,980

Yorktown Capital, L.L.C.

5.33%, 05/10/07 (a)(b)(c)
1,000 981

740,723

Total Fixed-Rate Obligations
(Cost $1,048,722) 1,048,722

Variable-Rate Obligations 9.8% of net assets

Barclays Bank PLC

5.31%, 01/05/07
5,000 5,000

5.30%, 01/29/07
10,000 10,000

BNP Paribas

5.30%, 01/02/07
11,000 10,999

5.29%, 01/03/07
7,000 6,998

5.29%, 01/08/07
7,000 7,000

California Pollution Control Financing Authority

5.39%, 01/03/07 (a)
1,760 1,760

CC (USA), Inc.

5.36%, 01/16/07 (b)(c)
3,000 3,000

Development Authority of Columbus, GA

5.37%, 01/04/07 (a)
1,570 1,570

Eagle County, Colorado Taxable Housing Facilities

5.35%, 01/04/07 (a)
1,500 1,500

Liberty Lighthouse U.S. Capital Co., L.L.C.

5.31%, 01/02/07 (b)(c)
2,000 2,000

5.32%, 01/02/07 (b)(c)
2,000 2,000

Links Finance, L.L.C.

5.31%, 01/08/07 (b)(c)
4,000 4,000

5.37%, 01/16/07 (b)(c)
1,000 1,000

5.36%, 01/29/07 (b)(c)
7,000 7,001

LP Pinewoods SPV, Inc.

5.35%, 01/04/07 (a)
15,000 15,000

Royal Bank of Canada

5.28%, 01/03/07
2,000 2,000

Royal Bank of Scotland, PLC

5.29%, 01/16/07
8,000 7,999

Sedna Finance, Inc.

5.33%, 03/15/07 (b)(c)
3,000 3,000

Sigma Finance, Inc.

5.32%, 01/16/07 (b)(c)
2,000 2,000

5.34%, 03/26/07 (b)(c)
5,000 5,000

Sumitomo Trust & Banking Co.

5.35%, 01/16/07
10,000 10,000

Swedbank AB

5.32%, 03/15/07
4,000 3,999

The Goldman Sachs Group, Inc.

5.37%, 01/08/07 (d)
10,000 10,000

Village of Sturtevant, WI

5.43%, 01/04/07 (a)
580 580

White Pine Finance, L.L.C.

5.31%, 01/22/07 (b)(c)
5,000 4,999

Total Variable-Rate Obligations
(Cost $128,405) 128,405

Maturity Amount
Value

Security ($ x 1,000) ($ x 1,000)

Other Investment 10.5% of net assets

Repurchase Agreement 10.5%

Credit Suisse Securities (USA), L.L.C.

Tri-Party Repurchase Agreement dated 12/29/07, due 01/02/07 at 5.32%, fully collateralized by U.S. Government Securities with a value of $140,968.
138,282 138,200

Total Other Investment
(Cost $138,200) 138,200

End of Investments.

At 12/31/06, the tax basis cost of the fund’s investments was $1,315,327.

At 12/31/06, portfolio holdings included illiquid and/or restricted securities as follows:


Issuer
Rate, Acquisition Date,	Face Amount		Value
Maturity Date	($ x 1,000)		($ x 1,000)




The Goldman Sachs Group, Inc.
5.37%, 07/06/06, 01/08/07		10,000		10,000


(a)		Credit-enhanced security.
(b)		Asset-backed security.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $456,831 or 34.8% of net assets.
(d)		Illiquid and/or restricted security.

See financial notes 19

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Financial Notes

1. Business Structure of the Funds:

Each of the funds discussed in this report is a series of The Charles Schwab Family of Funds (the “trust”), a no-load, open-end management investment company. The company is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended. The list below shows all the funds in the trust including the funds discussed in this report, which are highlighted:



The Charles Schwab Family of Funds (organized October 20, 1989) Schwab Money Market Fund Schwab Government Money Fund Schwab U.S. Treasury Money Fund Schwab Value Advantage Money Fund Schwab Municipal Money Fund Schwab California Municipal Money Fund Schwab New York Municipal Money Fund		Schwab New Jersey Municipal Money Fund Schwab Pennsylvania Municipal Money Fund Schwab AMT Tax-Free Money Fund Schwab Massachusetts Municipal Money Fund Schwab Retirement Advantage Money Fund Schwab Investor Money Fund Schwab Advisor Cash Reserves Schwab Cash Reserves

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund each offers one share class. Shares are bought and sold at $1.00 per share. Each share has a par value of 1/1,000 of a cent, and the trustees may authorize the issuance of as many shares as necessary.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America.

(a) Security Valuation:

The funds value the securities in their portfolios at amortized cost, which approximates market value.

(b) Portfolio Investments:

Repurchase Agreements: The funds may enter into repurchase agreements. In a repurchase agreement, a fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created. Any repurchase agreements with due dates later than seven days from issue dates may be subject to seven day put features for liquidity purposes.

The funds’ repurchase agreements will be fully collateralized by U.S. government securities. All collateral is held by the funds’ custodian (or, in the case of tri-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement.

Delayed-Delivery: The funds may buy securities on a delayed-delivery basis. In these transactions, a fund agrees to buy a security for a stated price, with settlement generally occurring within two weeks. If the security’s value falls before settlement occurs, the fund could end up paying more for the security than its market value at the time of settlement. The fund has set aside sufficient securities as collateral for those securities bought on a delayed-delivery basis.

(c) Security Transactions:

(d) Investment Income:

Interest income is recorded as it accrues. If a fund buys a debt security at a discount (that is, for less than face value) or a premium (more than face value), it amortizes the discount or premium from the current date to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. If the security is callable (meaning that the issuer has the option to pay it off before its maturity date), then the fund amortizes the premium to the security’s call date and price, rather than the maturity date and price.

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(e) Expenses:

Expenses that are specific to a fund or a class within the trust are charged directly to that fund or class. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds declare dividends every day they are open for business. These dividends, which are equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds may make distributions from any net realized capital gains once a year.

(g) Custody Credit:

(h) Accounting Estimates:

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund also keeps certain assets in segregated accounts, as may be required by securities law.

(i) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(j) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liability arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss to be remote.

(k) New Accounting Standards:

A fund with a fiscal year ending December 31 will implement FIN48 no later than June 29, 2007, and it will apply to all open tax years. This Interpretation provides new requirements for the recognition, measurement, and disclosure in the financial statements of a tax position taken or expected to be taken in a tax return when there is uncertainty about whether that tax position will ultimately be sustained. We have not yet completed our evaluation of the impact, if any, of adopting FIN 48 on the funds’ financial statements.

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of SFAS No. 157 will have on the fund’s financial statement disclosures.

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Financial Notes (continued)

3. Affiliates and Affiliated Transactions:

(All dollar amounts are x 1,000)


	Retirement
	Advantage		Investor
Average daily net assets	Money Fund		Money Fund


First $1 billion		0.38%		0.38%
Over $1 billion		0.35%		0.35%
Over $10 billion		0.32%		0.32%
Over $20 billion		0.30%		0.30%
Over $40 billion		0.27%		0.27%

For its transfer agent and shareholder services, Schwab is entitled to receive an annual fee payable monthly based on the funds’ average daily net assets described as follows:


	Transfer Agent Fees		Shareholder Service Fees

Retirement Advantage Money Fund		0.05%		0.17%
Investor Money Fund		0.05%		0.20%

Although these agreements specify certain fees for these services, CSIM and Schwab have made additional agreements with the Retirement Advantage Money Fund to limit the total expenses charged, excluding interest, taxes and certain non-routine expenses to 0.49% through April 29, 2007.

The funds may make direct transactions with certain other Schwab Funds when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and officers. For the period ended December 31, 2006, each fund’s total security transactions with other Schwab Funds were as follows:


Retirement Advantage Money Fund			$2,000
Investor Money Fund			—

Trustees

4. Borrowing:

Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund

Financial Notes (continued)

4. Borrowing (continued):

Corporation and Bank of America, N.A., respectively. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. There was no borrowing for any funds from the line of credit during the period.


5.	Federal Income Taxes:

(All dollar amounts are x 1,000)

As of December 31, 2006, the funds had no undistributable earning on a tax basis.

As of December 31, 2006, the funds had no capital loss carry forwards to offset future net capital gains.

The tax-basis components of distributions during the current period and prior fiscal year were:


	Retirement
	Advantage		Investor
	Money Fund		Money Fund


Current period distributions
From ordinary income		$30,235		$42,536
From long-term capital gains		—		—
Prior period distributions
From ordinary income		$17,635		$13,258
From long-term capital gains		—		—

The permanent book and tax basis differences may result in reclassifications between capital account and other accounts as required. The adjustments will have no impact on net assets or the results of operations. As of December 31, 2006, no such classifications were required.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Schwab Retirement Advantage Money Fund
Schwab Investor Money Fund

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund (two of the portfolios constituting The Charles Schwab Family of Funds, hereafter referred to as the “Funds”) at December 31, 2006, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
February 15, 2007

Trustees and Officers


Independent Trustees
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Mariann Byerwalter 1960 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Chairman of JDN Corporate Advisory LLC. From 1996 to 2001, Vice President for Business Affairs and Chief Financial Officer of Stanford University, and in 2001, Special Advisor to the President of Stanford University.		95	Board 1—Director, Redwood Trust, Inc. Board 2—Director, PMI Group, Inc.


Donald F. Dorward 1931 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chief Executive Officer, Dorward & Associates (corporate management, marketing and communications consulting firm). From 1996-1999, Executive Vice President and Managing Director, Grey Advertising. Prior to 1996, President and Chief Executive Officer, Allen & Dorward Advertising.		57	None.


William A. Hasler 1941 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Retired. Dean Emeritus, Haas School of Business, University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals). Prior to August 1998, Dean of the Haas School of Business, University of California, Berkeley (higher education).		95	Board 1—Director, Mission West Properties Board 2—Director, TOUSA Board 3—Director, Harris-Stratex Networks Board 4—Director, Genitope Corp. Board 5—Director & Non-Executive Chairman, Solectron Corp. Board 6—Director, Ditech Networks


Robert G. Holmes 1931 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman, Chief Executive Officer and Director, Semloh Financial, Inc. (international financial services and investment advisory firm)		57	None.


Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds since 2000.)	Chairman and Chief Executive Officer and founder of Smith Graham & Co. (investment advisors).		57	Board 1—Board of Cooper Industries Board 2—Chairman of the Audit Committee of Oneok Partners LP.


Independent Trustees continued
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Donald R. Stephens 1938 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Managing Partner, D.R. Stephens & Company (investments). Prior to 1996, Chairman and Chief Executive Officer of North American Trust (real estate investment trust).		57	None.


Michael W. Wilsey 1943 Trustee (Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman and Chief Executive Officer, Wilsey Bennett, Inc. (real estate investment and management, and other investments).		57	None.


Interested Trustees
Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the Trust; (Term of		Fund Complex
Office, and Length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee		Other Directorships


Charles R. Schwab²1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989.)	Chairman, Chief Executive Officer and Director, The Charles Schwab Corporation, Charles Schwab & Co., Inc.; Chairman and Director, Charles Schwab Investment Management, Inc., Charles Schwab Bank, N. A.; Chairman and Chief Executive Officer, Schwab (SIS) Holdings Inc. I, Schwab International Holdings, Inc.; Chief Executive Officer and Director, Schwab Holdings, Inc.; Director, U.S. Trust Company, N. A., U.S. Trust Corporation, United States Trust Company of New York. Until May 2003, Co-Chief Executive Officer, The Charles Schwab Corporation.		57	None.


Randall W. Merk²1954 Trustee (Trustee of The Charles Schwab Family of Funds since 2005.)	Executive Vice President and President, Schwab Financial Products, Charles Schwab & Co., Inc.; Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc. Prior to September 2002, President and Chief Investment Officer, American Century Investment Management, and Director, American Century Companies, Inc.		95	None.


Officers of the Trust
Name, Year of Birth, and Position(s)
with the Trust; (Term of Office, and
Length of Time Served³)		Principal Occupations During the Past Five Years


Evelyn Dilsaver 1955 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds since 2004.)		President, Chief Executive Officer, and Director, Charles Schwab Investment Management, Inc.; Executive Vice President, Charles Schwab & Co., Inc; President and Chief Executive Officer, Laudus Trust and Laudus Variable Insurance Trust; President, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; President, Mutual Fund Division, UST Advisers, Inc. From June 2003 to July 2004, Senior Vice President, Asset Management Products and Services, Charles Schwab & Co., Inc. Prior to June 2003, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, U.S. Trust, a subsidiary of The Charles Schwab Corporation.


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Chief Financial Officer, Laudus Trust and Laudus Variable Insurance Trust; Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief Financial Officer, Mutual Fund Division, UST Advisors, Inc. Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited. From December 1999 to November 2004, Sr. Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Kimon Daifotis 1959 Senior Vice President and Chief Investment Officer—Fixed Income (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Investment Officer—Fixed Income, Charles Schwab Investment Management, Inc. Prior to 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


Jeffrey Mortimer 1963 Senior Vice President and Chief Investment Officer—Equities (Officer of The Charles Schwab Family of Funds since 2004.)		Senior Vice President and Chief Investment Officer—Equities, Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer, Laudus Trust and Laudus Variable Insurance Trust. Prior to 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


Randall Fillmore 1960 Chief Compliance Officer and AML Officer (Officer of The Charles Schwab Family of Funds since 2002.)		Senior Vice President and Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President Charles Schwab & Co., Inc.; Chief Compliance Officer, Laudus Trust and Laudus Variable Insurance Trust; Chief Compliance Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc., and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc.


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of The Charles Schwab Family of Funds since 1998.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc.; Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc.; Chief Legal Officer, Laudus Trust and Laudus Variable Insurance Trust; Chief Legal Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. Prior to June 1998, Branch Chief in Enforcement at U.S. Securities and Exchange Commission in San Francisco.


Catherine MacGregor 1964 Vice President (Officer of The Charles Schwab Family of Funds since 2005.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc., Laudus Trust and Laudus Variable Insurance Trust; since 2006, Chief Counsel, Laudus Trust and Laudus Variable Insurance Trust. Until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP.


Cathy Sabo 1964 Vice President (Officer of The Charles Schwab Family of Funds since 2005.)		Vice President, Compliance, Charles Schwab Investment Management, Inc., Laudus Trust and Laudus Variable Insurance Trust. Until 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.


Officers of the Trust continued
Name, Year of Birth, and Position(s)
with the Trust; (Term of Office, and
Length of Time Served³)		Principal Occupations During the Past Five Years


Michael Haydel 1972 Vice President (Officer of The Charles Schwab Family of Funds since 2006.)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President and AML Officer, Laudus Trust and Laudus Variable Insurance Trust. Until March 2004, Director Charles Schwab & Co., Inc.


¹	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab Funds retirement policy requires that independent trustees elected after January 1, 2000 retire at age 72 or after twenty years of service as a trustee, whichever comes first. Independent trustees elected prior to January 1, 2000 will retire on the following schedule: Messrs. Holmes and Dorward will retire on December 31, 2007, and Messrs. Stephens and Wilsey will retire on December 31, 2010.

²	In addition to their employment with the investment adviser and the distributor, Messrs. Schwab and Merk also own stock of The Charles Schwab Corporation. Mr. Schwab and Mr. Merk are Interested Trustees because they are employees of Schwab and/or the adviser.

³	The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each other officer serves at the pleasure of the Board.