N-30D 1 f83547nv30d.txt SCHWAB FAMILY OF FUNDS SEMIANNUAL REPORT 6/30/02 SCHWAB MUNICIPAL MONEY FUNDS June 30, 2002 Semiannual Report 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 FLORIDA MUNICIPAL MONEY FUND [CHARLES SCHWAB LOGO] [PHOTO OF CHARLES SCHWAB] Dear Shareholder, During the six months covered by this report, investor confidence was tested by concerns about corporate accounting practices and economic weakness. While many investors remain nervous, there's nothing here that challenges the belief that the best way to create wealth is by participating in the financial markets. In this financial environment, as in most, money funds can play an essential role. But for each investor, that role should depend on individual goals and time horizons, not on transient market conditions. Setting and maintaining an appropriate asset allocation -- one that may include some money fund holdings -- is still one of the best strategies for reaching your financial goals. By investing in SchwabFunds,(R) you have already taken an important step in building a portfolio that can help you achieve your financial goals. On behalf of all of us at SchwabFunds, thank you for the trust that you have placed in us. Sincerely, /s/ Charles Schwab ------------------ Charles Schwab SCHWAB Municipal Money Funds SEMIANNUAL REPORT January 1, 2002 - June 30, 2002 2 Market Overview 6 Schwab Municipal Money Fund 50 Schwab California Municipal Money Fund 72 Schwab New York Municipal Money Fund 84 Schwab New Jersey Municipal Money Fund 93 Schwab Pennsylvania Municipal Money Fund 102 Schwab Florida Municipal Money Fund 114 Financial Notes -------------------------------------------------------------------- 116 GLOSSARY SchwabFunds(R) offers two basic types of money fund investments, each designed with a particular use in mind. SWEEP INVESTMENTS(TM) For your day-to-day cash needs A Sweep Investment can serve as the primary sweep money fund for your Schwab account. VALUE ADVANTAGE INVESTMENTS(R) For your larger, longer-term cash balances Higher balance requirements and policies designed to discourage frequent transactions make Value Advantage Investments appropriate for money you don't need to access frequently. While their features can help minimize fund expenses -- which in turn can mean higher returns for investors -- Value Advantage Investments cannot be used as sweep funds.
SWEEP VALUE ADVANTAGE INVESTMENTS INVESTMENTS TAXABLE MONEY FUNDS -------------------------------------------------------------------------------- SCHWAB MONEY MARKET FUND o -------------------------------------------------------------------------------- SCHWAB GOVERNMENT MONEY FUND o -------------------------------------------------------------------------------- SCHWAB U.S. TREASURY MONEY FUND o -------------------------------------------------------------------------------- SCHWAB VALUE ADVANTAGE MONEY FUND(R) o -------------------------------------------------------------------------------- MUNICIPAL MONEY FUNDS -------------------------------------------------------------------------------- SCHWAB MUNICIPAL MONEY FUND o o -------------------------------------------------------------------------------- SCHWAB CALIFORNIA MUNICIPAL MONEY FUND o o -------------------------------------------------------------------------------- SCHWAB FLORIDA MUNICIPAL MONEY FUND o -------------------------------------------------------------------------------- SCHWAB NEW JERSEY MUNICIPAL MONEY FUND o -------------------------------------------------------------------------------- SCHWAB NEW YORK MUNICIPAL MONEY FUND o o -------------------------------------------------------------------------------- SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND o --------------------------------------------------------------------------------
For more complete information on SchwabFunds, including fees and expenses, call 800-435-4000 to obtain a prospectus or go to www.schwab.com/schwabfunds. Please read the prospectus carefully before investing. An investment in a money market 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. MARKET OVERVIEW ECONOMIC SLOWDOWN CONTINUES WITH SOME SIGNS OF RECOVERY. The six months covered by this report included periods during which the U.S. economy showed some signs of improvement. However, the faltering stock market continued to undermine consumer confidence and delay corporate spending, which kept economic recovery from gaining momentum. One bright spot was Gross Domestic Product (GDP), which grew at an annualized rate of 5.0% during Q1 2002 (see chart, page 3). Inventory buildup was a large contributor to Q1 GDP, but final sales were also better than expected, traditionally a positive sign for the economy. [PHOTO OF MAN] After languishing for several quarters, business investment showed signs of life during the report period. Although spending on buildings remained very low, businesses began to make more investments in equipment and software -- areas where investment growth is considered essential for a healthy recovery. Spending on information technology (IT) equipment was up for the first time since the beginning of the recession in March 2001. Meanwhile, the manufacturing sector saw its fifth consecutive month of growth in June, according to the Institute for Supply Management. In spite of these positive signs, however, the economy slowed in the second quarter; initial calculations placed Q2 2002 GDP growth at just 1.1%. ASSET CLASS PERFORMANCE COMPARISON % returns during the reporting period This graph compares the performance of various asset classes (as represented by indices) during the report period. [LINE GRAPH]
Lehman Aggregate MSCI EAFE Russell 2000 S&P 500 3 Month Bond Index Index Small-Cap Index Index T-Bill 4-Jan-02 -0.24 1.57 2.21 2.13 0.02 11-Jan-02 1.27 -1.4 0.32 -0.22 0.08 18-Jan-02 1.1 -3.23 -2.86 -1.79 0.1 25-Jan-02 0.57 -4.29 -1.83 -1.28 0.11 1-Feb-02 1.01 -5.38 -1.66 -2.15 0.14 8-Feb-02 1.34 -6.71 -4.38 -4.41 0.18 15-Feb-02 1.57 -4.37 -3.81 -3.72 0.21 22-Feb-02 1.76 -6.38 -4.65 -4.97 0.24 1-Mar-02 1.35 -3.34 -1.91 -1.16 0.27 8-Mar-02 0.21 2.25 2.53 1.68 0.3 15-Mar-02 0.01 2.11 2.41 1.84 0.32 22-Mar-02 -0.08 0.86 3.09 0.32 0.36 29-Mar-02 0.09 0.62 3.98 0.29 0.41 5-Apr-02 1.08 0.61 2.21 -1.87 0.45 12-Apr-02 1.33 -1.12 5.87 -2.89 0.49 19-Apr-02 1.56 2.1 6.28 -1.66 0.52 26-Apr-02 2.12 1.16 3.03 -5.93 0.55 3-May-02 2.18 1.87 5.29 -6.1 0.58 10-May-02 2.14 1.19 1.29 -7.71 0.62 17-May-02 1.72 3.97 4.65 -3.2 0.66 24-May-02 2.37 3.32 1.52 -5.19 0.7 31-May-02 2.89 2.45 0.27 -6.49 0.73 7-Jun-02 2.84 -0.78 -3.21 -9.96 0.76 14-Jun-02 3.95 -4.94 -5.52 -11.74 0.8 21-Jun-02 4.11 -4.99 -5.09 -13.33 0.83 28-Jun-02 3.79 -1.62 -4.7 -13.16 0.87
THREE-MONTH U.S. TREASURY BILLS (T-BILLS): measures short-term U.S. Treasury obligations LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX: measures the U.S. bond market S&P 500(R) INDEX: measures U.S. large-cap stocks RUSSELL 2000(R) INDEX: measures U.S. small-cap stocks MSCI-EAFE(R) INDEX: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East These figures assume dividends and distributions were reinvested. Index figures don't include trading and management costs, which would lower performance. Indices are unmanaged and you can't invest in them directly. Remember that past performance isn't an indication of future results. Data source: Charles Schwab & Co., Inc. (Schwab). 2 Although unemployment rose slightly during the report period, it is still below the 30 year average of 6.3%. Source: Bloomberg L.P. UNEMPLOYMENT REACHES 6.0%, BUT PACE OF INCREASE SLOWS. [PHOTO OF MAN] After reaching new lows in 2000, the U.S. unemployment rate rose rapidly in 2001. By the end of December 2001 it was at 5.8%, up from 4.0% in December 2000. Thus far in 2002, unemployment has shown signs of stabilizing, ending the period at 5.9%, after hitting 6.0% in April -- its highest level since August 1994. New job creation in June, however, was weaker than expected. Most of the newly created jobs were in the service industry, but not business services, which would have signaled more of an economic upturn. Until a sustained economic recovery reaches the job market, further increases in unemployment may occur. Meanwhile, inflation remained low, in part because employers have enjoyed extremely strong worker productivity, which has helped stabilize labor costs and consumer prices. ECONOMIC FACTORS AND THEIR EFFECTS ON THESE FUNDS. The following charts show recent figures for common measures of the state of the U.S. economy and the interest rate environment. While the relationship of each of these factors to the performance of the funds is complex, the captions over each chart and the discussion above include analysis of how we believe these factors may have influenced market behavior during the report period. REAL GDP GROWTH Annualized growth rate for each quarter shown Growth of 5.0% in Q1 2002 pleasantly surprised many, but Q2 2002 growth was just 1.1% in preliminary calculations. Recent revisions to 2001 figures now show three negative quarters during that year. [BAR CHART] Q3 1992 3.1 Q4 1992 5.4 Q1 1993 -0.1 Q2 1993 2.5 Q3 1993 1.8 Q4 1993 6.2 Q1 1994 3.4 Q2 1994 5.7 Q3 1994 2.2 Q4 1994 5 Q1 1995 1.5 Q2 1995 0.8 Q3 1995 3.1 Q4 1995 3.2 Q1 1996 2.9 Q2 1996 6.8 Q3 1996 2 Q4 1996 4.6 Q1 1997 4.4 Q2 1997 5.9 Q3 1997 4.2 Q4 1997 2.8 Q1 1998 6.1 Q2 1998 2.2 Q3 1998 4.1 Q4 1998 6.7 Q1 1999 3 Q2 1999 2 Q3 1999 5.2 Q4 1999 7.1 Q1 2000 2.6 Q2 2000 4.8 Q3 2000 0.6 Q4 2000 1.1 Q1 2001 -0.6 Q2 2001 -1.6 Q3 2001 -0.3 Q4 2001 2.7 Q1 2002 5 Q2 2002 1.1
Gross domestic product (GDP), a broad measure of the goods and services produced in the United States during a given time period, is a prime indicator of the health of the country's economy. Typically, stock investors see an increase in GDP as a positive, since it indicates stronger demand, production and corporate earnings. The figures shown here are adjusted for inflation. Data source: Bloomberg L.P. 3 In spite of the low yields resulting from the Fed's policy of keeping interest rates low, money funds remained in favor because of market uncertainty. MARKET OVERVIEW Continued STOCKS STRUGGLE; MONEY FUND YIELDS REMAIN FLAT. Signs of economic improvement, continued low interest rates, and some positive earnings surprises were hardly enough to support stock prices, especially those of large-cap U.S. companies (see chart, page 2). One reason appears to have been the high prices of these stocks compared to earnings. Companies have worked to improve earnings by trimming costs, but any sustained earnings improvement will likely come only with stronger demand for goods and services. Lingering concerns over accounting issues, high corporate debt levels, and the excesses of the tech market bubble further undermined investor confidence. International stocks performed better for U.S. investors, benefiting from better valuations and a weakening U.S. dollar. Despite negative performance, small-cap companies were still favored by investors, who saw them as less affected by accounting indiscretions and high-valuation concerns. With interest rates largely stable over the report period, money market yields were relatively flat. Bond yields also were relatively flat, although their returns still were stronger than equities. U.S. UNEMPLOYMENT RATE Adjusted for seasonal variations After a decade of declines, unemployment rose sharply, reaching 6.0% in April 2002--over two percentage points above its three-decade low of 3.9% in 2000. [LINE GRAPH] 30-Jun-92 7.8 Jul-92 7.7 Aug-92 7.6 Sep-92 7.6 Oct-92 7.3 Nov-92 7.4 Dec-92 7.4 Jan-93 7.3 Feb-93 7.1 Mar-93 7 Apr-93 7.1 May-93 7.1 Jun-93 7 Jul-93 6.9 Aug-93 6.8 Sep-93 6.7 Oct-93 6.8 Nov-93 6.6 Dec-93 6.5 Jan-94 6.8 Feb-94 6.6 Mar-94 6.5 Apr-94 6.4 May-94 6.1 Jun-94 6.1 Jul-94 6.3 Aug-94 6 Sep-94 5.8 Oct-94 5.8 Nov-94 5.6 Dec-94 5.5 Jan-95 5.6 Feb-95 5.4 Mar-95 5.3 Apr-95 5.8 May-95 5.8 Jun-95 5.6 Jul-95 5.6 Aug-95 5.7 Sep-95 5.6 Oct-95 5.5 Nov-95 5.7 Dec-95 5.6 Jan-96 5.6 Feb-96 5.5 Mar-96 5.6 Apr-96 5.5 May-96 5.6 Jun-96 5.3 Jul-96 5.5 Aug-96 5.1 Sep-96 5.2 Oct-96 5.2 Nov-96 5.3 Dec-96 5.4 Jan-97 5.3 Feb-97 5.3 Mar-97 5.1 Apr-97 5 May-97 4.7 Jun-97 5 Jul-97 4.7 Aug-97 4.9 Sep-97 4.7 Oct-97 4.7 Nov-97 4.6 Dec-97 4.7 Jan-98 4.5 Feb-98 4.6 Mar-98 4.6 Apr-98 4.3 May-98 4.3 Jun-98 4.5 Jul-98 4.5 Aug-98 4.5 Sep-98 4.5 Oct-98 4.5 Nov-98 4.4 Dec-98 4.3 Jan-99 4.3 Feb-99 4.4 Mar-99 4.2 Apr-99 4.3 May-99 4.2 Jun-99 4.3 Jul-99 4.3 Aug-99 4.2 Sep-99 4.2 Oct-99 4.1 Nov-99 4.1 Dec-99 4.1 Jan-00 4 Feb-00 4.1 Mar-00 4.1 Apr-00 3.9 May-00 4.1 Jun-00 4 Jul-00 4 Aug-00 4.1 Sep-00 3.9 Oct-00 3.9 Nov-00 4 Dec-00 4 Jan-02 4.2 Feb-02 4.2 Mar-02 4.3 Apr-02 4.5 May-02 4.4 Jun-02 4.5 Jul-02 4.5 Aug-02 4.9 Sep-02 4.9 Oct-02 5.4 Nov-02 5.6 Dec-02 5.8 Jan-02 5.6 Feb-02 5.5 Mar-02 5.7 Apr-02 6 May-02 5.8 30-Jun-02 5.9
This measures the portion of the U.S. labor force that is unemployed and is either seeking a job or waiting to return to one. Low unemployment often accompanies prosperity and is generally a positive factor for investors, although very low unemployment may boost inflation as employers raise pay to compete for workers. Rising unemployment may mean a softening economy. Data source: Bloomberg L.P. MEASURES OF INFLATION Annualized figures for the Consumer Price Index (monthly) and Employment Cost Index (quarterly) CPI was up 1.1% for the 12 months ended June 30, 2002 (2.3% if food and energy are excluded). ECI rose 4.0% over the same period. [LINE GRAPH]
Employment Consumer Qtr Cost Index Date Price Index 30-Sep-92 3.5 30-Jun-92 3.1 Dec-92 3.5 Jul-92 3.2 Mar-93 3.5 Aug-92 3.1 Jun-93 3.6 Sep-92 3 Sep-93 3.6 Oct-92 3.2 Dec-93 3.5 Nov-92 3 Mar-94 3.2 Dec-92 2.9 Jun-94 3.2 Jan-93 3.3 Sep-94 3.2 Feb-93 3.2 Dec-94 3 Mar-93 3.1 Mar-95 2.9 Apr-93 3.2 Jun-95 2.9 May-93 3.2 Sep-95 2.7 Jun-93 3 Dec-95 2.7 Jul-93 2.8 Mar-96 2.8 Aug-93 2.8 Jun-96 2.9 Sep-93 2.7 Sep-96 2.8 Oct-93 2.8 Dec-96 2.9 Nov-93 2.7 Mar-97 2.9 Dec-93 2.7 Jun-97 2.8 Jan-94 2.5 Sep-97 3 Feb-94 2.5 Dec-97 3.3 Mar-94 2.5 Mar-98 3.3 Apr-94 2.4 Jun-98 3.5 May-94 2.3 Sep-98 3.7 Jun-94 2.5 Dec-98 3.4 Jul-94 2.8 Mar-99 3 Aug-94 2.9 Jun-99 3.2 Sep-94 3 Sep-99 3.1 Oct-94 2.6 Dec-99 3.4 Nov-94 2.7 Mar-00 4.3 Dec-94 2.7 Jun-00 4.4 Jan-95 2.8 Sep-00 4.3 Feb-95 2.9 Dec-00 4.1 Mar-95 2.9 Mar-01 4.1 Apr-95 3.1 Jun-01 3.9 May-95 3.2 Sep-01 4.1 Jun-95 3 Dec-01 4.1 Jul-95 2.8 Mar-02 3.9 Aug-95 2.6 30-Jun-02 4 Sep-95 2.5 Oct-95 2.8 Nov-95 2.6 Dec-95 2.5 Jan-96 2.7 Feb-96 2.7 Mar-96 2.8 Apr-96 2.9 May-96 2.9 Jun-96 2.8 Jul-96 3 Aug-96 2.9 Sep-96 3 Oct-96 3 Nov-96 3.3 Dec-96 3.3 Jan-97 3 Feb-97 3 Mar-97 2.8 Apr-97 2.5 May-97 2.2 Jun-97 2.3 Jul-97 2.2 Aug-97 2.2 Sep-97 2.2 Oct-97 2.1 Nov-97 1.8 Dec-97 1.7 Jan-98 1.6 Feb-98 1.4 Mar-98 1.4 Apr-98 1.4 May-98 1.7 Jun-98 1.7 Jul-98 1.7 Aug-98 1.6 Sep-98 1.5 Oct-98 1.5 Nov-98 1.5 Dec-98 1.6 Jan-99 1.7 Feb-99 1.6 Mar-99 1.7 Apr-99 2.3 May-99 2.1 Jun-99 2 Jul-99 2.1 Aug-99 2.3 Sep-99 2.6 Oct-99 2.6 Nov-99 2.6 Dec-99 2.7 Jan-00 2.7 Feb-00 3.2 Mar-00 3.7 Apr-00 3 May-00 3.1 Jun-00 3.7 Jul-00 3.7 Aug-00 3.4 Sep-00 3.5 Oct-00 3.4 Nov-00 3.4 Dec-00 3.4 Jan-02 3.7 Feb-02 3.5 Mar-02 2.9 Apr-02 3.3 May-02 3.6 Jun-02 3.2 Jul-02 2.7 Aug-02 2.7 Sep-02 2.6 Oct-02 2.1 Nov-02 1.9 Dec-02 1.6 Jan-02 1.1 Feb-02 1.1 Mar-02 1.5 Apr-02 1.6 May-02 1.2 30-Jun-02 1.1
The Consumer Price Index (CPI) tracks changes in the cost of goods and services and is the most common measure of inflation. The Employment Cost Index (ECI) measures the cost of employing workers, including benefits costs. Financial markets are very sensitive to increases in inflation because of the potentially negative impact on corporate earnings, investors and consumers. Data source: Bloomberg L.P. 4 LOOKING AHEAD: NEGATIVE FACTORS THREATEN RECOVERY. The Federal Reserve (the Fed) now appears likely to keep interest rates low until it is satisfied that business spending is back on track -- probably late 2002 at the earliest. Unemployment has shown signs of stabilizing, although further stock market losses could hamper the recovery. [PHOTO OF CREDIT CARD MACHINE] It is unclear that the recovery will gain momentum anytime soon. Consumer spending is already strong (atypically, it remained so through most of this past recession). Furthermore, inventories are already largely back to normal, so further increases in these areas don't seem likely for now. Looking forward, we see several factors that could weaken or delay the recovery. Concerns over accounting issues continue to hover over the markets and earnings could be lower as companies adopt more conservative accounting methods. Further weakness in the dollar could help make U.S. securities even less attractive to foreign investors. Consumer spending may at last falter. The war against terrorism could involve unexpected costs, and threats to world political stability could drive up petroleum prices. YIELDS OF U.S. TREASURY SECURITIES Effective yields of ten-year and five-year Treasuries After the Fed's long string of interest rate cuts in 2001, yields remained at fairly low levels, with a marked increase in the spread between five-year and ten-year Treasuries. [LINE GRAPH]
5 Yr 10 Yr 30-Jun-92 6.27 7.12 31-Jul-92 5.82 6.71 31-Aug-92 5.58 6.6 30-Sep-92 5.32 6.35 31-Oct-92 5.89 6.79 30-Nov-92 6.22 6.94 31-Dec-92 5.99 6.69 31-Jan-93 5.55 6.36 28-Feb-93 5.21 6.02 31-Mar-93 5.24 6.02 30-Apr-93 5.11 6.01 31-May-93 5.37 6.15 30-Jun-93 5.05 5.78 31-Jul-93 5.15 5.81 31-Aug-93 4.79 5.45 30-Sep-93 4.77 5.38 31-Oct-93 4.85 5.43 30-Nov-93 5.16 5.82 31-Dec-93 5.21 5.79 31-Jan-94 5.02 5.64 28-Feb-94 5.57 6.13 31-Mar-94 6.23 6.74 30-Apr-94 6.64 7.04 31-May-94 6.76 7.15 30-Jun-94 6.95 7.32 31-Jul-94 6.73 7.11 31-Aug-94 6.8 7.17 30-Sep-94 7.28 7.6 31-Oct-94 7.49 7.81 30-Nov-94 7.79 7.91 31-Dec-94 7.83 7.82 31-Jan-95 7.51 7.58 28-Feb-95 7.04 7.2 31-Mar-95 7.07 7.2 30-Apr-95 6.88 7.06 31-May-95 6.05 6.28 30-Jun-95 5.97 6.2 31-Jul-95 6.16 6.43 31-Aug-95 6.07 6.28 30-Sep-95 6.02 6.18 31-Oct-95 5.81 6.02 30-Nov-95 5.52 5.74 31-Dec-95 5.38 5.57 31-Jan-96 5.24 5.58 29-Feb-96 5.73 6.1 31-Mar-96 6.09 6.33 30-Apr-96 6.41 6.67 31-May-96 6.63 6.85 30-Jun-96 6.46 6.71 31-Jul-96 6.57 6.79 31-Aug-96 6.73 6.94 30-Sep-96 6.46 6.7 31-Oct-96 6.07 6.34 30-Nov-96 5.83 6.04 31-Dec-96 6.21 6.42 31-Jan-97 6.25 6.49 28-Feb-97 6.39 6.55 31-Mar-97 6.75 6.9 30-Apr-97 6.57 6.72 31-May-97 6.5 6.66 30-Jun-97 6.38 6.5 31-Jul-97 5.9 6.01 31-Aug-97 6.22 6.34 30-Sep-97 5.99 6.1 31-Oct-97 5.71 5.83 30-Nov-97 5.84 5.87 31-Dec-97 5.71 5.74 31-Jan-98 5.38 5.51 28-Feb-98 5.59 5.62 31-Mar-98 5.62 5.65 30-Apr-98 5.64 5.67 31-May-98 5.55 5.55 30-Jun-98 5.47 5.45 31-Jul-98 5.5 5.49 31-Aug-98 4.8 4.98 30-Sep-98 4.22 4.42 31-Oct-98 4.23 4.61 30-Nov-98 4.48 4.71 31-Dec-98 4.54 4.65 31-Jan-99 4.55 4.65 28-Feb-99 5.22 5.29 31-Mar-99 5.1 5.24 30-Apr-99 5.21 5.35 31-May-99 5.58 5.62 30-Jun-99 5.65 5.78 31-Jul-99 5.79 5.9 31-Aug-99 5.87 5.97 30-Sep-99 5.75 5.88 31-Oct-99 5.96 6.02 30-Nov-99 6.11 6.19 31-Dec-99 6.34 6.44 31-Jan-00 6.68 6.67 29-Feb-00 6.6 6.41 31-Mar-00 6.31 6 30-Apr-00 6.54 6.21 31-May-00 6.52 6.27 30-Jun-00 6.19 6.03 31-Jul-00 6.15 6.03 31-Aug-00 5.97 5.73 30-Sep-00 5.85 5.8 31-Oct-00 5.81 5.75 30-Nov-00 5.43 5.47 31-Dec-00 4.98 5.11 31-Jan-01 4.77 5.11 28-Feb-01 4.66 4.9 31-Mar-01 4.56 4.92 30-Apr-01 4.89 5.34 31-May-01 4.91 5.38 30-Jun-01 4.95 5.41 31-Jul-01 4.53 5.05 31-Aug-01 4.38 4.83 30-Sep-01 3.8 4.59 31-Oct-01 3.48 4.23 30-Nov-01 4.06 4.75 31-Dec-01 4.3 5.05 31-Jan-02 4.37 5.03 28-Feb-02 4.19 4.88 31-Mar-02 4.81 5.4 30-Apr-02 4.41 5.09 31-May-02 4.36 5.05 30-Jun-02 4.03 4.8
Yields, or interest rates, represent the cost of borrowing money. Rapid economic growth or the expectation of higher inflation can drive rates up, while the opposite conditions can push rates down. Other factors being equal, low interest rates are positive for stock investors because low borrowing costs can help boost corporate earnings. Data source: Bloomberg L.P. SHORT-TERM RATES Effective yields of 90-day municipal commercial paper during the reporting period Short-term yields fluctuated during the report period, but ended the six-month period where they began. [LINE GRAPH]
Weekly 90-Day Muni 31-Dec-01 1.35 04-Jan-02 1.4 11-Jan-02 1.45 18-Jan-02 1.25 25-Jan-02 1.3 01-Feb-02 1.4 08-Feb-02 1.4 15-Feb-02 1.35 22-Feb-02 1.3 01-Mar-02 1.3 08-Mar-02 1.4 15-Mar-02 1.45 22-Mar-02 1.65 29-Mar-02 1.65 05-Apr-02 1.7 12-Apr-02 1.7 19-Apr-02 1.65 26-Apr-02 1.65 03-May-02 1.6 10-May-02 1.55 17-May-02 1.5 24-May-02 1.5 31-May-02 1.45 07-Jun-02 1.4 14-Jun-02 1.45 21-Jun-02 1.45 28-Jun-02 1.35
Typically, the yields offered by municipal commercial paper broadly reflect market interest rates. Periodic shifts in supply and demand can skew this relationship, however. For example, short-term municipal rates tend to fall sharply in January and rise again in late April, as investors buy or sell muni investments in response to the yearly tax calendar. Data source: Bloomberg L.P. 5 SCHWAB MUNICIPAL MONEY FUND [PHOTO OF WALTER BEVERIDGE] WALTER BEVERIDGE, a portfolio manager, is responsible for day-to-day management of the fund. Prior to joining the firm in 1992, he worked for nearly ten years in asset management. This fund may be appropriate for individuals in higher tax brackets who are seeking tax-exempt income. TICKER SYMBOLS SWEEP SHARES SWXXX VALUE ADVANTAGE SHARES SWTXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND THAT IS EXEMPT FROM FEDERAL INCOME TAX. 1 MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. The Bond Buyer 1-Year Note Index (a widely used indicator of municipal yields) reached a low of 1.45% near the end of January. Stronger-than-expected economic figures released in March, however, caused an increase of 0.55% to 0.60% for that index. During this time, we added to our positions in fixed-rate securities, which offered higher yields than variable-rate notes. This strategy allowed us to maintain a neutral to slightly longer maturity versus our peer group, which helped the performance of the fund when yields fell once again by approximately 0.60% during the second quarter as the strength of the recovery came into question. WITH SOME LEADING ECONOMIC INDICATORS POINTING TO EXPANSION, A STRONGER ECONOMY MAY BE ON THE WAY. However, struggles in the equity markets, uncertainty in the Middle East and the war on terrorism may hamper consumer and business confidence, which may prolong the recovery and delay an increase in the Fed Funds Rate. 1 Income that is exempt from federal income tax may be subject to state income tax. 6 PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results.
VALUE SWEEP ADVANTAGE SHARES SHARES ------------------------------------------------------- Seven-Day Yield 0.86% 1.07% ------------------------------------------------------- Seven-Day Effective Yield 0.86% 1.08% ------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.40% 1.76% -------------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH] Municipal Money Fund 31-Dec-01 39 31-Jan-02 37 28-Feb-02 35 31-Mar-02 33 30-Apr-02 35 31-May-02 33 30-Jun-02 57
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 10.8% California 2. 10.2% Texas 3. 7.3% Georgia 4. 7.2% Florida 5. 7.0% Pennsylvania 6. 6.4% Illinois 7. 4.5% Michigan 8. 4.3% Washington 9. 3.3% Colorado 10. 2.9% New York 11. 36.1% Other
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, Sweep Shares' and Value Advantage Shares' seven-day yields would have been 0.69% and 0.92%, the seven-day effective yields would have been 0.69% and 0.92% and the seven-day taxable-equivalent effective yields would have been 1.12% and 1.50%, respectively. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum federal regular income tax rate of 38.60%. 7 SCHWAB MUNICIPAL MONEY FUND - FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- SWEEP SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------------------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) ---------------------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 ------------------------------------------------------------------------- Income from investment operations: Net investment income 0.00 4 0.02 0.03 0.03 0.03 0.03 ------------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.00) 4 (0.02) (0.03) (0.03) (0.03) (0.03) ------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 ========================================================================= Total return (%) 0.46 2 2.23 3.53 2.70 2.92 3.11 RATIOS/SUPPLEMENTAL DATA (%) ---------------------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.66 1 0.66 0.66 3 0.66 0.66 0.66 3 Expense reductions reflected in above ratio 0.17 1 0.17 0.17 0.19 0.22 0.24 Ratio of net investment income to average net assets 0.93 1 2.21 3.47 2.67 2.87 3.06 Net assets, end of period ($ x 1,000,000) 6,893 7,265 6,780 6,090 5,247 4,424
1 Annualized. 2 Not annualized. 3 Would have been 0.67% if certain non-routine expenses (proxy fees) had been included. 4 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 8
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- VALUE ADVANTAGE SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ------------------------------------------------------------------------------------------------------------------ PER-SHARE DATA ($) ------------------------------------------------------------------------------------------------------------------ Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 ------------------------------------------------------------------- Income from investment operations: Net investment income 0.01 0.02 0.04 0.03 0.03 0.03 ------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.01) (0.02) (0.04) (0.03) (0.03) (0.03) ------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 =================================================================== Total return (%) 0.57 2 2.45 3.75 2.91 3.14 3.32 RATIOS/SUPPLEMENTAL DATA (%) ------------------------------------------------------------------------------------------------------------------ Ratio of net operating expenses to average net assets 0.45 1 0.45 0.45 3 0.45 0.45 0.45 3 Expense reductions reflected in above ratio 0.15 1 0.16 0.18 0.20 0.24 0.27 Ratio of net investment income to average net assets 1.14 1 2.35 3.70 2.89 3.08 3.29 Net assets, end of period ($ x 1,000,000) 3,920 3,778 2,919 2,270 1,620 1,085
1 Annualized. 2 Not annualized. 3 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included. See the Financial Notes, which are integral to this information. 9 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security = Delayed-delivery security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $11,104,154 Cost: $11,104,154 ------------------------------------ 100.0% TOTAL INVESTMENTS Market Value: $11,104,154 Cost: $11,104,154
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) MUNICIPAL SECURITIES 100.0% of investments --------------------------------------------------------------------------- ALABAMA 0.4% +@ ALABAMA STATE IDA RB (Scientific Project) 1.60%, 07/07/02 2,430 2,430 +@ CITRONELLE,ALABAMA IDB Pollution Control Revenue Refunding Bond (AKZO Chemicals, Inc. Project) 1.30%, 07/07/02 2,600 2,600 +@ DAPHNE, ALABAMA UTILITIES BOARD OF WATER, GAS, & SEWER Revenue Refunding Bond 1.30%, 07/07/02 8,950 8,950 +@ DOTHAN, ALABAMA IDB RB (Baxley Blowpipe Project) 1.43%, 07/07/02 500 500 +@ FORT PAYNE, ALABAMA IDA IDRB (Charleston Hosiery Project) Series 1997 1.40%, 07/07/02 1,400 1,400 +@ HEADLAND, ALABAMA IDB RB (Golden Peanut Project) 1.45%, 07/07/02 1,720 1,720 +@ HOOVER, ALABAMA BOARD OF EDUCATION Capital Outlay TOB 1.33%, 07/07/02 9,860 9,860 +@ INDIAN SPRINGS VILLAGE, ALABAMA ADDITIONAL BUILDING AUTHORITY RB (J. Bruno Academy Project) 1.60%, 07/07/02 1,385 1,385 +@ MOBILE COUNTY, ALABAMA IDB Pollution Control Revenue Refunding Bond (Ultraform Co. Project) Series 1995A 1.30%, 07/07/02 7,480 7,480 RB (Ultraform Co. Project) Series 1995B 1.30%, 07/07/02 1,000 1,000 +@ SCOTTSBORO, ALABAMA GO 1.25%, 07/07/02 4,275 4,275 +@ TUSCALOOSA, ALABAMA IDB IDRB (Field Container Corp.) 1.25%, 07/07/02 1,950 1,950
See the Financial Notes, which are integral to this information. 10
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) IDRB (Knight Special Project) 1.60%, 07/07/02 1,040 1,040 -------- 44,590 ALASKA 0.5% +@ ALASKA STATE HOUSING FINANCE CORP. Housing Development RB Series 2000A 1.40%, 07/07/02 18,715 18,715 TOB Series 1999D 1.37%, 07/07/02 21,805 21,805 +@ VALDEZ, ALASKA MARINE TERMINAL Revenue Refunding Bond (Exxon Pipeline Co. Project) Series 1993B 1.75%, 07/01/02 13,800 13,800 -------- 54,320 ARIZONA 1.4% +@ ARIZONA EDUCATIONAL LOAN MARKETING CORP. Educational Loan RB Series 1990A 1.35%, 07/07/02 12,905 12,905 Educational Loan RB Series 1991A 1.30%, 07/07/02 13,000 13,000 +@ ARIZONA HEALTH FACILITIES AUTHORITY Hospital System RB (Arizona Volunteer Hospital Federation) Series 1985A 1.25%, 07/07/02 11,090 11,090 Hospital System RB (Arizona Volunteer Hospital Federation) Series 1985B 1.25%, 07/07/02 9,330 9,330 Hospital System RB (Northern Arizona Health Care) Series 1996B 1.25%, 07/07/02 4,450 4,450 +@ CHANDLER, ARIZONA IDA IDRB (South Bay Circuits Project) Series 1999A 1.50%, 07/07/02 2,000 2,000 +@ MARICOPA COUNTY, ARIZONA IDA M/F Housing RB (Gran Victoria Housing, LLC Project) Series 2000A 1.25%, 07/07/02 3,165 3,165 +@ PHOENIX, ARIZONA CIVIC IMPROVEMENT Excise Tax RB (Airport Improvements) 1.30%, 07/07/02 1,000 1,000 +@ PHOENIX, ARIZONA IDA RB (Vaw America, Inc. Project) 1.40%, 07/07/02 3,000 3,000 + SALT RIVER PROJECT, ARIZONA AGRICULTURE IMPROVEMENT POWER DISTRICT TECP 1.35%, 07/08/02 20,085 20,085 1.20%, 07/09/02 17,100 17,100 1.20%, 07/15/02 28,796 28,796 1.68%, 08/14/02 10,000 10,000 +@ YAVAPAI COUNTY, ARIZONA IDRB (Yavapai Regional Medical Center) 1.25%, 07/07/02 14,850 14,850 +@ YUMA COUNTY, ARIZONA IDA M/F Housing RB (El Encanto Apartments) Series 1988A 1.50%, 07/07/02 2,915 2,915 -------- 153,686 ARKANSAS 0.1% +@ ARKANSAS DEVELOPMENT FINANCE AUTHORITY IDRB (C&C Holding Co. Project) Series 1998 1.40%, 07/07/02 1,255 1,255 +@ INDEPENDANCE COUNTY, ARKANSAS IDRB (Ideal Baking Project) 1.40%, 07/07/02 3,300 3,300 IDRB (Townsends of Arkansas, Inc. Project) 1.35%, 07/07/02 9,000 9,000 --------- 13,555 CALIFORNIA 10.8% +@ ACCESS LOANS FOR LEARNING STUDENT LOAN CORP. OF CALIFORNIA RB (Student Loan Program) Series II A-1 1.30%, 07/07/02 35,000 35,000 RB (Student Loan Program) Series II A-2 1.32%, 07/07/02 20,000 20,000 RB (Student Loan Program) Series II A-3 1.30%, 07/07/02 22,200 22,200 = CALIFORNIA COMMUNITY COLLEGE FINANCING AUTHORITY TRAN Series 2002A 1.68%, 06/30/03 35,000 35,453
See the Financial Notes, which are integral to this information. 11 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) + CALIFORNIA HIGHER EDUCATION LOAN AUTHORITY Student Loan RB Series 1992A-2-6 2.00%, 12/01/02 29,675 29,675 Student Loan RB Series 1992A-3 2.30%, 04/01/03 44,900 44,900 Student Loan RB Series 1992A-4 2.35%, 04/01/03 8,725 8,725 Student Loan RB Series 1992D-1 1.75%, 10/01/02 13,600 13,600 Student Loan RB Series 1992D-2 1.80%, 12/01/02 11,500 11,500 Student Loan Revenue Refunding Bond Series 1987C-1 2.70%, 07/01/02 50,000 50,000 = CALIFORNIA SCHOOL CASH RESERVE PROGRAM AUTHORITY RAN Series 2002A 1.59%, 07/03/03 21,640 21,940 1.67%, 07/03/03 50,000 50,654 CALIFORNIA STATE Revenue Anticipation Warrants Series 2002A 1.43%, 10/25/02 50,000 50,168 Revenue Anticipation Warrants Series 2002B 1.78%, 11/27/02 73,000 73,300 Revenue Anticipation Warrants Series 2002C 1.86%, 01/30/03 375,000 375,305 +@ CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES Revenue TOB Series 2002K-1 1.30%, 07/07/02 33,585 33,585 Revenue TOB Series 2002K-2 1.30%, 07/07/02 101,735 101,735 = CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TRAN Series 2002A 1.70%, 06/30/03 40,000 40,510 = LOS ANGELES, CALIFORNIA TRAN 1.57%, 06/30/03 25,000 25,350 LOS ANGELES, CALIFORNIA UNIFIED SCHOOL DISTRICT TRAN 2.57%, 07/23/02 50,000 50,042 = LOS ANGELES COUNTY, CALIFORNIA TRAN Series 2002A 1.64%, 06/30/03 69,700 70,630 = LOS ANGELES COUNTY, CALIFORNIA SCHOOLS POOLED FINANCING PROGRAM TRAN Series 2002A 1.67%, 06/30/03 20,000 20,261 ORANGE COUNTY, CALIFORNIA SANITATION DISTRICT COP Series 2000A 1.75%, 07/01/02 2,900 2,900 COP Series 2000B 1.75%, 07/01/02 900 900 +@ SOUTHERN CALIFORNIA HFA S/F Mortgage RB TOBP (PT-629) 1.30%, 07/07/02 12,000 12,000 --------- 1,200,333 COLORADO 3.3% +@ ADAMS COUNTY, COLORADO IDRB (City View Park Project) Series 1985 1.35%, 07/07/02 6,000 6,000 +@ ADAMS COUNTY, COLORADO ECONOMIC DEVELOPMENT AUTHORITY Tax Increment RB (Westminster Plaza Urban Renewal Project) 1.55%, 07/07/02 6,460 6,460 +@ ARAPAHOE COUNTY, COLORADO Industrial Development Revenue Refunding Bond (Denver Jet Center Project) Series 1997 1.75%, 07/30/02 1,000 1,000 +@ ARVADA, COLORADO Water RB 1.60%, 07/01/02 4,300 4,300 +@ COLORADO HEALTH FACILITIES AUTHORITY RB (National Benevolent Association Project) 1.30%, 07/07/02 725 725 +@ COLORADO HFA Economic Development RB (Inovonics Enterprises Project) 1.55%, 07/07/02 3,235 3,235 Economic Development RB (Pemracs Limited, LLP Project) Series 2000A 1.50%, 07/07/02 3,785 3,785
See the Financial Notes, which are integral to this information. 12
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) S/F Mortgage TOB Series 1999M 1.38%, 07/07/02 5,360 5,360 + COLORADO REGIONAL TRANSPORTATION DISTRICT TECP 1.65%, 07/03/02 5,000 5,000 1.50%, 07/09/02 7,500 7,500 +@ COLORADO STUDENT OBLIGATION BOND AUTHORITY Student Loan RB (Colorado University) Series 1990A 1.33%, 07/07/02 14,400 14,400 Student Loan RB Series 1989A 1.33%, 07/07/02 49,200 49,200 Student Loan RB Series 1999A-2 1.33%, 07/07/02 28,400 28,400 Student Loan RB Series 1999A-3 1.33%, 07/07/02 29,800 29,800 + DENVER, COLORADO CITY & COUNTY AIRPORT SYSTEM @ RB Series 1992D 1.35%, 07/07/02 47,925 47,925 @ RB Series 1992F 1.35%, 07/07/02 15,500 15,500 @ RB Series 1992G 1.35%, 07/07/02 19,375 19,375 @ Revenue Refunding Bond Series 2000B 1.40%, 07/07/02 10,000 10,000 @ Revenue Refunding Bond Series 2000C 1.35%, 07/07/02 52,400 52,400 Revenue Refunding Bond Series 2001A 2.10%, 11/15/02 8,000 8,071 + DENVER, COLORADO CITY & COUNTY SCHOOL DISTRICT NO. 1 GO Series 2001C 1.78%, 12/01/02 4,715 4,787 +@ LOWRY, COLORADO ECONOMIC REDEVELOPMENT AUTHORITY RB 1.25%, 07/07/02 10,000 10,000 RB Series 1998A 1.25%, 07/07/02 11,025 11,025 + PALIMINO PARK, COLORADO PUBLIC IMPROVEMENTS CORP. Asset Lien RB 1.60%, 07/03/02 12,680 12,680 +@ SMITH CREEK, COLORADO METROPOLITAN DISTRICT RB Series 1997 1.30%, 07/07/02 2,250 2,250 +@ WHEATRIDGE COUNTY, COLORADO IDRB (Leaf, Inc. Project) 1.50%, 07/07/02 7,000 7,000 --------- 366,178 DELAWARE 0.3% +@ DELAWARE STATE GO Refunding Bond TOB Series 258 1.31%, 07/07/02 3,995 3,995 +@ NEW CASTLE COUNTY, DELAWARE AIRPORT FACILITY RB (Flight Safety International, Inc. Project) 1.33%, 07/07/02 16,600 16,600 +@ SUSSEX COUNTY, DELAWARE IDRB (Perdue Agri-recycle, LLC Project) 1.35%, 07/07/02 5,300 5,300 RB (Baywood, LLC Project) Series 1997A 1.45%, 07/07/02 2,400 2,400 --------- 28,295 DISTRICT OF COLUMBIA 0.6% +@ DISTRICT OF COLUMBIA RB (Arnold & Porter Project) 1.35%, 07/07/02 3,300 3,300 RB (George Washington University Project) Series 2000B 1.20%, 07/07/02 10,000 10,000 +@ DISTRICT OF COLUMBIA ENTERPRISE ZONE RB (Crowell & Morning, LLP Project) 1.35%, 07/07/02 4,500 4,500 +@ DISTRICT OF COLUMBIA HFA M/F Housing RB (Edgewood Terrace III Development) 1.35%, 07/07/02 4,000 4,000 METROPOLITAN WASHINGTON, D.C. AIRPORT AUTHORITY TECP 1.75%, 07/02/02 20,000 20,000 1.75%, 07/03/02 12,800 12,800 1.45%, 07/10/02 13,000 13,000 --------- 67,600
See the Financial Notes, which are integral to this information. 13 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) FLORIDA 7.2% +@ BROWARD COUNTY, FLORIDA EDUCATIONAL FACILITIES AUTHORITY RB (Nova SouthEastern) Series 2000A 1.25%, 07/07/02 5,500 5,500 +@ BROWARD COUNTY, FLORIDA HFA M/F Housing RB (Landings Inverrary Apartments Project) Series 1985 1.42%, 07/07/02 7,500 7,500 M/F Housing RB (Reflections Airport Project) 1.30%, 07/07/02 12,000 12,000 M/F Housing RB (Sanctuary Apartments Project) Series 1985 1.42%, 07/07/02 6,300 6,300 M/F Housing Revenue Refunding Bond (Island Club Apartments Project) Series 2001A 1.27%, 07/07/02 3,000 3,000 M/F Housing Revenue Refunding Bond (South Pointe Project) 1.30%, 07/07/02 7,750 7,750 M/F Housing Revenue Refunding Bond (Water's Edge Project) 1.30%, 07/07/02 200 200 +@ BROWARD COUNTY, FLORIDA PORT FACILITIES Revenue Refunding Bond (Sub Port Everglades Project) 1.30%, 07/07/02 2,700 2,700 +@ CHARLOTTE COUNTY, FLORIDA HFA M/F Housing RB (Murdock Circle Apartments Project) 1.47%, 07/07/02 7,500 7,500 +@ CITRUS PARK COMMUNITY, FLORIDA DEVELOPMENT DISTRICT Capital Improvement Bond Series 1996 1.26%, 07/07/02 1,705 1,705 +@ DADE COUNTY, FLORIDA Aviation RB Series 1984A 1.26%, 07/07/02 2,600 2,600 +@ DADE COUNTY, FLORIDA IDA RB (Micheal-Ann Russell Jewish Community Center Project) Series 1997 1.25%, 07/07/02 4,285 4,285 +@ EUSTIS, FLORIDA Multi-Purpose RB Series 1997A 1.25%, 07/07/02 500 500 +@ FLORIDA CAPITAL PROJECTS FINANCE AUTHORITY Continuing Care Retirement Community RB (Glenridge on Palmer Ranch) Series 2002C 1.85%, 07/07/02 7,000 7,000 +@ FLORIDA DEVELOPMENT FINANCE CORP. IDRB (Schmitt Family Project) Series 1999A2 1.40%, 07/07/02 750 750 +@ FLORIDA HFA Housing RB (Ashley Lake II Project) Series 1989J 1.26%, 07/07/02 1,400 1,400 Housing RB (Caribbean Key Apartments) Series 1996F 1.30%, 07/07/02 1,000 1,000 M/F Housing RB 1.43%, 07/07/02 5,100 5,100 M/F Housing RB (Buena Vista Project) Series 1985MM 1.20%, 07/07/02 10,000 10,000 M/F Housing RB (South Pointe Project) Series 1998J 1.25%, 07/07/02 5,100 5,100 M/F Housing RB Series 1983J 1.25%, 07/07/02 3,270 3,270 +@ FLORIDA HOUSING FINANCE CORP. M/F Housing Revenue Refunding Bond (Reflections Project) Series 2001A 1.25%, 07/07/02 9,500 9,500 RB (Heritage Pointe Project) Series 1999I-1 1.33%, 07/07/02 9,500 9,500 + FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION Pooled TECP 1.40%, 08/07/02 12,403 12,403 1.45%, 08/07/02 2,202 2,202 1.55%, 08/07/02 2,573 2,573 1.50%, 09/05/02 23,750 23,750 1.55%, 09/05/02 9,368 9,368
See the Financial Notes, which are integral to this information. 14
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT.VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ FLORIDA OCEAN HIGHWAY & PORT AUTHORITY RB Series 1990 1.40%, 07/07/02 11,400 11,400 +@ FLORIDA STATE BOARD OF EDUCATION CAPITAL OUTLAY Public Education GO TOB Series 1998A 1.31%, 07/07/02 9,000 9,000 FLORIDA STATE MUNICIPAL POWER AGENCY RB (Stanton II Project) 1.50%, 10/01/02 6,625 6,832 +@ RB (Stanton Project) 1.20%, 07/07/02 2,320 2,320 +@ GAINESVILLE, FLORIDA IDRB (Lifesouth Community Blood Centers Project) Series 1999 1.25%, 07/07/02 6,060 6,060 +@ GULF BREEZE, FLORIDA RB (Local Government Loan Program) Series 1985B 1.25%, 07/07/02 10,460 10,460 RB (Local Government Loan Program) Series 1985C 1.25%, 07/07/02 12,030 12,030 RB (Local Government Loan Program) Series 1985E 1.30%, 07/07/02 1,590 1,590 +@ HALIFAX, FLORIDA HOSPITAL MEDICAL CENTER Health Care Facilities RB (Florida Health Care Plan, Inc. Project) 1.30%, 07/07/02 5,200 5,200 + HILLSBOROUGH COUNTY, FLORIDA AVIATION AUTHORITY Airport Facilities Sub Lien TECP 1.55%, 07/08/02 34,500 34,500 1.65%, 07/09/02 16,600 16,600 1.80%, 08/01/02 7,300 7,300 @ Special Purpose Revenue Refunding Bond (Delta Airlines Project) 1.30%, 07/07/02 1,600 1,600 + HILLSBOROUGH COUNTY, FLORIDA CAPITAL IMPROVEMENT PROGRAM TECP 1.35%, 11/07/02 8,000 8,000 +@ HILLSBOROUGH COUNTY, FLORIDA IDA Educational Facilities RB (Berkeley Preparatory School) 1.25%, 07/07/02 4,895 4,895 RB (Tampa Metropolitan YMCA Project) Series 2000K 1.30%, 07/07/02 5,000 5,000 +@ JACKSONVILLE, FLORIDA Industrial Development Revenue Refunding Bond (Pavilion Associates, Ltd. Project) 1.30%, 07/07/02 5,100 5,100 + JACKSONVILLE, FLORIDA ELECTRIC AUTHORITY @ RB (Water & Sewer Systems) Series 2000B 1.25%, 07/07/02 3,100 3,100 Water & Sewer TECP 1.60%, 07/10/02 62,000 62,000 +@ LAKE SHORE, FLORIDA HOSPITAL AUTHORITY Health Facilities RB (Lakeshore Hospital Project) Series 1991 1.25%, 07/07/02 3,300 3,300 +@ LAKELAND, FLORIDA EDUCATIONAL FACILITIES RB (Florida Southern College Project) Series 1999 1.20%, 07/07/02 30,000 30,000 +@ LEE COUNTY, FLORIDA IDA Educational Facilities RB (Canterbury School, Inc Project) 1.25%, 07/07/02 6,000 6,000 +@ MANATEE COUNTY, FLORIDA HFA M/F Housing RB (Hampton McGuire Project) Series 1989A 1.25%, 07/07/02 3,635 3,635 M/F Housing RB (La Mirada Gardens) Project Series 2002A 1.32%, 07/07/02 4,000 4,000 +@ MIAMI, FLORIDA HFA RB (Jewish Home for the Aged, Inc. Project) Series 1996 1.25%, 07/07/02 8,900 8,900 +@ MIAMI-DADE COUNTY, FLORIDA IDRB (Gulliver Schools Project) Series 2000 1.30%, 07/07/02 3,900 3,900
See the Financial Notes, which are integral to this information. 15 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ MIAMI-DADE COUNTY, FLORIDA IDA IDRB (Airis Miami, LLC Project) Series 1999A 1.25%, 07/07/02 28,500 28,500 IDRB (Arctic Partners Project) 1.40%, 07/07/02 610 610 RB (Belen Jesuit Preparatory School Project) Series 1999 1.25%, 07/07/02 7,505 7,505 MIAMI-DADE COUNTY, FLORIDA SCHOOL DISTRICT RAN 1.40%, 12/30/02 22,950 23,046 +@ NASSUA COUNTY, FLORIDA Pollution Control RB (Rayonier Project) Series 1999 1.20%, 07/07/02 6,200 6,200 + ORANGE COUNTY, FLORIDA TECP Series A 1.50%, 07/02/02 22,536 22,536 +@ ORANGE COUNTY, FLORIDA HEALTH FACILITIES AUTHORITY RB (Adventist Health Systems) Series 1992B 1.20%, 07/07/02 3,400 3,400 RB (Florida Hospital Association Health Facility Loan Program) Series 2000A 1.75%, 07/07/02 28,000 28,000 +@ ORANGE COUNTY, FLORIDA HFA Housing Revenue Refunding Bond (Highland Pointe Apartments Project) Series 1988J 1.30%, 07/07/02 7,000 7,000 M/F Housing RB (Andover Place Apartments) 1.25%, 07/07/02 7,300 7,300 M/F Housing RB (Smokewood Project) Series 1992A 1.25%, 07/07/02 19,950 19,950 M/F Housing Revenue Refunding Bond (Heather Glenn Apartments Project) Series 2001E 1.20%, 07/07/02 6,400 6,400 + OSCEOLA COUNTY, FLORIDA Capital Improvements RB 1.42%, 09/01/02 2,400 2,415 +@ PALM BEACH COUNTY, FLORIDA RB (Complete Alcohol Rehabilitation Project) 1.25%, 07/07/02 5,300 5,300 RB (Norton Gallery Art School Project) Series 1995 1.25%, 07/07/02 2,500 2,500 RB (Raymond F. Kravis Center Project) 1.15%, 07/07/02 5,000 5,000 RB (Zoological Society, Inc. Project) 1.30%, 07/07/02 3,500 3,500 +@ PALM BEACH COUNTY, FLORIDA HFA Revenue Refunding Bond (Joseph L. Morse Geriatric Center Project) 1.25%, 07/07/02 5,500 5,500 +@ PASCO COUNTY, FLORIDA SCHOOL BOARD COP 1.25%, 07/07/02 37,500 37,500 +@ PINELLAS COUNTY, FLORIDA EDUCATIONAL FACILITIES AUTHORITY RB (Shorecrest Prep School Project) 1.30%, 07/07/02 1,000 1,000 +@ PINELLAS COUNTY, FLORIDA HFA M/F Housing RB (Mariners Pointe Apartments) 1.35%, 07/07/02 8,900 8,900 +@ PINELLAS COUNTY, FLORIDA IDA IDRB (Restorative Care of America Project) 1.45%, 07/07/02 100 100 +@ PINELLAS COUNTY, FLORIDA INDEPENDENT COUNCIL RB (Operation Par, Inc. Project) Series 1999 1.30%, 07/07/02 5,310 5,310 +@ SARASOTA COUNTY, FLORIDA RB (Sarasota County Family YMCA Project) 1.25%, 07/07/02 3,545 3,545 SEMINOLE COUNTY, FLORIDA SCHOOL DISTRICT TAN 2.10%, 08/14/02 3,800 3,805 +@ SOUTHEAST VOLUSIA, FLORIDA HOSPITAL DISTRICT RB (Bert Fish Medical Center Project) Series 1995 1.40%, 07/07/02 10,015 10,015 +@ ST. PETERSBURG, FLORIDA Capital Improvement RB (Airport & Golf Course) Series 1997B 1.20%, 07/07/02 1,665 1,665
See the Financial Notes, which are integral to this information. 16
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ SUMTER COUNTY, FLORIDA IDA IDRB (Robbins Manufacturing Co. Project) 1.40%, 07/07/02 1,410 1,410 + SUNSHINE STATE OF FLORIDA GOVERNMENTAL FINANCE COMMISSION TECP 1.40%, 07/10/02 4,412 4,412 1.40%, 09/12/02 29,601 29,601 +@ TALLAHASSEE & LEON COUNTY, FLORIDA CIVIC CENTER AUTHORITY Capital Improvement RB Series 1998A 1.25%, 07/07/02 1,690 1,690 +@ TAMPA, FLORIDA RB (Tampa Prep School Project) 1.25%, 07/07/02 10,000 10,000 +@ TAMPA, FLORIDA HEALTH CARE FACILITIES RB (Lifelink Foundation Inc., Project) 1.25%, 07/07/02 5,200 5,200 +@ TAMPA, FLORIDA OCCUPATIONAL LICENSE TAX Revenue Refunding Bond Series 2002B 1.20%, 07/07/02 7,000 7,000 Revenue Refunding Bond Series 2002C 1.20%, 07/07/02 14,100 14,100 +@ TAMPA, FLORIDA REGIONAL WATER SUPPLY AUTHORITY Water Utility System RB 1.30%, 07/07/02 7,000 7,000 +@ VOLUSIA COUNTY, FLORIDA EDUCATIONAL FACILITY AUTHORITY RB (Bethune Cookman College Project) 1.25%, 07/07/02 5,000 5,000 +@ VOLUSIA COUNTY, FLORIDA HEALTH FINANCE AUTHORITY RB (South West Volusia Health Project) Series 1994A 1.25%, 07/07/02 9,075 9,075 +@ WEST ORANGE, FLORIDA HEALTHCARE DISTRICT RB Series 1999B 1.20%, 07/07/02 10,800 10,800 -------- 798,968 GEORGIA 7.3% +@ ATHENS-CLARKE, JACKSON & MORGAN COUNTIES, GEORGIA IDRB (Mayfield Dairy Farms, Inc. Project) 1.35%, 07/07/02 7,350 7,350 + ATLANTA, GEORGIA AIRPORT @ RB TOB Series 376 1.35%, 07/07/02 11,195 11,195 o RB TOBP (PA-926) 2.25%, 07/11/02 12,960 12,960 +@ ATLANTA, GEORGIA URBAN RESIDENTIAL FINANCE AUTHORITY M/F Housing RB (Brentwood Creek Apartments Project) 1.35%, 07/07/02 4,720 4,720 M/F Housing RB (Brentwood Meadows Apartments Project) 1.35%, 07/07/02 3,065 3,065 M/F Housing RB (Brentwood Village Apartments Project) 1.35%, 07/07/02 6,195 6,195 M/F Housing RB (Carver Redevelopment Phase III Project) 1.35%, 07/07/02 3,500 3,500 M/F Housing RB (Delmonte Brownlee Project) Series 2001A 1.35%, 07/07/02 4,600 4,600 M/F Housing RB (Peaks At West Atlanta Apartments Project) 1.35%, 07/07/02 5,000 5,000 M/F Senior Housing RB (Big Bethel Village Project) 1.35%, 07/07/02 4,500 4,500 +@ AUGUSTA, GEORGIA HOUSING AUTHORITY M/F Housing RB (G-Hope Ltd. Partnership Project) 1.35%, 07/07/02 3,800 3,800 +@ BARTOW COUNTY, GEORGIA IDRB (Bartow Paving Co. Project) 1.40%, 07/07/02 2,200 2,200 IDRB (Matthew Contracting Project) 1.35%, 07/07/02 2,400 2,400 +@ CARTERSVILLE, GEORGIA DEVELOPMENT AUTHORITY IDRB (Cartersville Facilities Project) 1.37%, 07/07/02 2,400 2,400
See the Financial Notes, which are integral to this information. 17 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ CHEROKEE COUNTY, GEORGIA IDRB (Universal Alloy) 1.35%, 07/07/02 3,100 3,100 +@ CLAYTON COUNTY, GEORGIA IDRB (Wilson Holdings Project) 1.35%, 07/07/02 1,000 1,000 +@ CLAYTON COUNTY, GEORGIA DEVELOPMENT AUTHORITY Special Facilities RB (Delta Air Lines) Series 2000B 1.40%, 07/07/02 111,455 111,455 Special Facilities RB (Delta Air Lines) Series 2000C 1.40%, 07/07/02 107,855 107,855 +@ CLAYTON COUNTY, GEORGIA HOUSING AUTHORITY M/F Housing RB (Hyde Park Club Apartments Project) 1.35%, 07/07/02 12,400 12,400 +@ COBB COUNTY, GEORGIA HFA M/F Housing RB (Walton Green Project) 1.35%, 07/07/02 13,500 13,500 M/F Housing Revenue Refunding Bond (Walton Park Apartments Project) 1.30%, 07/07/02 21,100 21,100 +@ COLUMBUS, GEORGIA DEVELOPMENT AUTHORITY RB (Foundation Property's, Inc. Project) Series 2000 1.35%, 07/07/02 4,000 4,000 Revenue Bond (Foundation Properties, Inc. Project) 1.35%, 07/07/02 11,500 11,500 +@ COLUMBUS, GEORGIA HOUSING AUTHORITY M/F Housing RB (Eagles Trace Apartments Project) 1.35%, 07/07/02 6,400 6,400 +@ CRISP COUNTY, CORDELE, GEORGIA IDA IDRB (Georgia Ductile Project) 1.42%, 07/07/0 15,000 15,000 +@ DAWSON COUNTY, GEORGIA DEVELOPMENT AUTHORITY IDRB (World Wide Manufacturing Project) 1.40%, 07/07/02 2,700 2,700 +@ DEKALB COUNTY, GEORGIA DEVELOPMENT AUTHORITY IDRB (Arbor Montessori School Project) 1.25%, 07/07/02 1,100 1,100 IDRB (Siemens Energy, Inc. Project) 1.30%, 07/07/02 7,500 7,500 IDRB (Truman Properties LLC Project) 1.40%, 07/07/02 1,800 1,800 +@ DEKALB COUNTY, GEORGIA HFA M/F Housing RB (Brittany Apartments Project) 1.35%, 07/07/02 8,000 8,000 M/F Housing RB (Eagle Trace Apartments Project) Series 1996 1.30%, 07/07/02 9,050 9,050 M/F Housing RB (Mountain Crest Apartments Project) Series 2002A-1 1.35%, 07/07/02 7,915 7,915 M/F Housing RB (Villas of Friendly Heights Apartments Project) 1.35%, 07/07/02 3,575 3,575 M/F Housing RB (Wesley Club Apartments Project) 1.35%, 07/07/02 5,970 5,970 M/F Housing RB (Wood Hills Apartment Project) 1.30%, 07/07/02 17,350 17,350 +@ DOUGLAS COUNTY, GEORGIA IDA RB (Blue Circle Project) 1.35%, 07/07/02 3,800 3,800 +@ EFFINGHAM COUNTY, GEORGIA IDA RB (Temcor Project) 1.35%, 07/07/02 4,000 4,000 +@ FAYETTE COUNTY, GEORGIA DEVELOPMENT AUTHORITY Educational Facilities RB (Catholic School Properties, Inc. Project) 1.25%, 07/07/02 10,200 10,200 +@ FAYETTE COUNTY, GEORGIA HOSPITAL AUTHORITY Revenue Anticipation Certificate (Fayette Community Hospital Project) 1.25%, 07/07/02 10,000 10,000 +@ FORSYTH COUNTY, GEORGIA ECONOMIC DEVELOPMENT AUTHORITY RB (Federal Road, LLC Project) 1.35%, 07/07/02 7,000 7,000
See the Financial Notes, which are integral to this information. 18
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ FULTON COUNTY, GEORGIA DEVELOPMENT AUTHORITY RB (Atlanta International School Project) 1.25%, 07/07/02 2,800 2,800 RB (Trinity School Project) 1.25%, 07/07/02 7,000 7,000 RB (Woodruff Arts Center Project) 1.25%, 07/07/02 10,000 10,000 +@ GAINESVILLE, GEORGIA REDEVELOPMENT AUTHORITY Educational Facilities RB (Riverside Military Project) 1.25%, 07/07/02 30,000 30,000 GEORGIA STATE GO Series 2002A 1.86%, 05/01/03 13,695 13,878 GO Series 2002B 1.87%, 05/01/03 12,320 12,485 +@ GO TOB Series 18 1.33%, 07/07/02 10,390 10,390 +@ GO TOB Series 1998-1003 1.33%, 07/07/02 20,245 20,245 +@ GO TOB Series 213 1.31%, 07/07/02 5,000 5,000 +@ GO TOBP (PA-897) 1.27%, 07/07/02 10,575 10,575 GEORGIA STATE ROAD & TOLLWAY AUTHORITY BAN 2.29%, 11/20/02 40,000 40,069 +@ GORDON COUNTY, GEORGIA DEVELOPMENT AUTHORITY RB (Constantine Dyeing, LLC Project) 1.35%, 07/07/02 6,300 6,300 +@ GWINNETT COUNTY, GEORGIA HFA M/F Housing RB 1.20%, 07/07/02 5,000 5,000 +@ HART COUNTY, GEORGIA INDUSTRIAL BUILDING AUTHORITY IDRB (AWH Corp. Project) 1.35%, 07/07/02 4,300 4,300 IDRB (Dundee Mills Project) 1.35%, 07/07/02 2,995 2,995 +@ HOUSTON COUNTY, GEORGIA DEVELOPMENT AUTHORITY IDRB (Douglas Asphalt County Project) 1.35%, 07/07/02 2,400 2,400 +@ JEFFERSON COUNTY, GEORGIA DEVELOPMENT AUTHORITY IDRB (Grove River Mills Project) Series 1997 1.40%, 07/07/02 2,500 2,500 +@ LAFAYETTE, GEORGIA DEVELOPMENT AUTHORITY RB (Dixie Group Project) 1.35%, 07/07/02 4,000 4,000 +@ LAURENS COUNTY, GEORGIA DEVELOPMENT AUTHORITY Solid Waste Disposal RB (Southeast Paper Manufacturing Co. Project) 1.35%, 07/07/02 51,000 51,000 +@ LAWRENCEVILLE, GEORGIA HOUSING AUTHORITY M/F Housing RB (Chatham Club Apartments Project) 1.40%, 07/07/02 7,700 7,700 +@ LOWNDES COUNTY, GEORGIA DEVELOPMENT AUTHORITY M/F Housing RB (FMPH Valdosta, Limited Partnership Project) 1.35%, 07/07/02 5,045 5,045 +@ MACON-BIBB COUNTY, GEORGIA HOSPITAL AUTHORITY RB (The Medical Center of Central Georgia Project) Series 1998 1.25%, 07/07/02 4,000 4,000 +@ MILLER COUNTY, GEORGIA DEVELOPMENT AUTHORITY IDRB (Birdsong Corp. Project) 1.35%, 07/07/02 2,900 2,900 +@ ROSWELL, GEORGIA HFA M/F Housing RB (Gables Realty Wood Crossing Project) 1.25%, 07/07/02 11,650 11,650 +@ SAVANNAH, GEORGIA HOUSING AUTHORITY M/F Housing RB (Indigo Pointe Apartments) Series 2001A 1.35%, 07/07/02 3,500 3,500 M/F Housing RB (Live Oak Plantation Apartments) Series 2001A 1.35%, 07/07/02 2,500 2,500
See the Financial Notes, which are integral to this information. 19 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ SAVANNAH, GEORGIA ECONOMIC DEVELOPMENT AUTHORITY RB (Georgia Kaolin, Inc.) 1.35%, 07/07/02 11,000 11,000 RB (Home Depot Project) Series 1995B 1.30%, 07/07/02 5,000 5,000 +@ SUMMERVILLE, GEORGIA DEVELOPMENT AUTHORITY RB (Image Industry Project) Series 1997 1.35%, 07/07/02 11,000 11,000 +@ THOMASTON-UPSON COUNTY, GEORGIA IDA IDRB (Southern Mills Project) Series 1999 1.35%, 07/07/02 4,940 4,940 +@ WALTON COUNTY, GEORGIA DEVELOPMENT AUTHORITY RB (Tucker Door & Trim Corp. Project) 1.55%, 07/07/02 2,600 2,600 +@ WEBSTER COUNTY, GEORGIA IDA IDRB (Tolleson Lumber Co., Inc. Project) 1.35%, 07/07/02 6,400 6,400 +@ WHITFIELD COUNTY, GEORGIA DEVELOPMENT AUTHORITY RB (Product Concepts Project) 1.35%, 07/07/02 1,200 1,200 +@ WINDER-BARROW, GEORGIA INDUSTRIAL BUILDING AUTHORITY IDRB (Progress Container Corp. Project) Series 2000 1.35%, 07/07/02 2,980 2,980 +@ WORTH COUNTY, GEORGIA IDA Revenue Refunding Bond (Seabrook Project) Series 1996B 1.35%, 07/07/02 1,300 1,300 -------- 805,807 HAWAII 0.3% +@ HAWAII STATE DEPARTMENT OF BUDGET & FINANCE Special Purpose RB TOBP (PA-795R) 1.37%, 07/07/02 8,195 8,195 +o HAWAII STATE HOUSING FINANCE & DEVELOPMENT CORP. TOB 2.75%, 08/01/02 9,905 9,905 + HONOLULU, HAWAII CITY & COUNTY TECP 1.35%, 08/07/02 11,900 11,900 -------- 30,000 IDAHO 0.8% CUSTER COUNTY, IDAHO Pollution Control RB (Amoco Project) Series 1983 1.90%, 10/01/02 2,625 2,625 +@ IDAHO HFA Housing RB (Assisted Living Concepts Project) 1.50%, 07/07/02 3,470 3,470 = IDAHO STATE TAN 1.63%, 06/30/03 80,000 81,075 +@ IDAHO STATE UNIVERSITY FOUNDATION, INC. RB (L E & Thelma Stevens Project) 1.30%, 07/07/02 3,800 3,800 -------- 90,970 ILLINOIS 6.4% +@ AURORA, ILLINOIS M/F Housing RB (Apartments at Fox Valley) Series 1999A 1.25%, 07/07/02 9,445 9,445 +@ BATAVIA, ILLINOIS IDRB (American Industrial Technologies) 1.50%, 07/07/02 2,430 2,430 +@ BOLINGBROOK, ILLINOIS SPECIAL SERVICE AREA NO. 2 Special Tax Bond Series 2001B 1.35%, 07/07/02 5,000 5,000 +@ CAROL STREAM, ILLINOIS M/F Housing Revenue Refunding Bond (St. Charles Square Project) 1.35%, 07/07/02 4,415 4,415 +@ CENTRALIA, ILLINOIS IDA RB (Consolidated Foods Corp. & Hollywood Brands, Inc. Project) 1.25%, 07/07/02 10,000 10,000 +@ CHICAGO, ILLINOIS GO Series B 1.27%, 07/07/02 20,000 20,000 IDRB (Morse Automotive Project) Series 1995 1.40%, 07/07/02 1,800 1,800
See the Financial Notes, which are integral to this information. 20
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) RB (Homestart Program) Series 2000A 1.35%, 07/07/02 20,000 20,000 S/F Mortgage RB TOB Series 1999N 1.38%, 07/07/02 8,745 8,745 Water Second Lien RB 1.20%, 07/07/02 2,000 2,000 +@ CHICAGO, ILLINOIS BOARD OF EDUCATION Unlimited Tax GO TOB 1.31%, 07/07/02 7,120 7,120 + CHICAGO, ILLINOIS EMERGENCY TELEPHONE SYSTEM GO 1.70%, 01/01/03 15,195 15,791 +@ CHICAGO, ILLINOIS GAS SUPPLY RB (Peoples Gas, Light & Coke Co. Project) Series 1993B 1.35%, 07/07/02 15,000 15,000 Revenue Refunding Bond (Peoples Gas, Light & Coke Co. Project) Series 2000C 1.39%, 07/07/02 19,000 19,000 +@ CHICAGO, ILLINOIS METROPOLITAN WATER RECLAMATION DISTRICT RB Series 2002A 1.20%, 07/07/02 12,000 12,000 +@ CHICAGO, ILLINOIS MIDWAY AIRPORT RB TOB 1.33%, 07/07/02 24,480 24,480 +@ CHICAGO, ILLINOIS O'HARE INTERNATIONAL AIRPORT RB (ACES General Airport Second Lien) Series B1 1.33%, 07/07/02 23,200 23,200 RB (ACES General Airport Second Lien) Series B2 1.33%, 07/07/02 13,300 13,300 Special Facility RB 1.30%, 07/07/02 41,484 41,484 Special Facility RB TOB Series 2001B6 1.42%, 07/07/02 11,070 11,070 Special Facility RB (O'Hare Technical Center II Project) 1.35%, 07/07/02 15,500 15,500 Special Facility Revenue Refunding Bond (Lufthansa German Project) 1.30%, 07/07/02 43,770 43,770 +@ CHICAGO, ILLINOIS WATERWORKS Senior Lien RB TOB 1.33%, 07/07/02 12,975 12,975 +@ EAST DUNDEE, KANE & COOK COUNTIES, ILLINOIS IDRB (Otto Engine Project) 1.35%, 07/07/02 2,040 2,040 +@ ELMHURST, ILLINOIS IDRB (ELM Machining Corp. Project) 1.55%, 07/07/02 2,300 2,300 +@ GILBERTS, ILLINOIS SPECIAL SERVICE AREA NO. 10 RB (Timber Trails Project) 1.25%, 07/07/02 10,785 10,785 +@ GLENDALE HEIGHTS, ILLINOIS IDRB (York Corrugated Container Project) 1.50%, 07/07/02 1,300 1,300 +@ HAMPSHIRE, ILLINOIS IDRB (Poli-Film America Project) Series 1998A 1.40%, 07/07/02 4,700 4,700 +@ ILLINOIS DEVELOPMENT FINANCE AUTHORITY IDRB (Arc Tronics, Inc. Project) 1.45%, 07/07/02 2,395 2,395 IDRB (Camcraft, Inc. Project) 1.45%, 07/07/02 2,500 2,500 IDRB (Catholic Charities) 1.40%, 07/07/02 910 910 IDRB (Molding Project) 1.70%, 07/07/02 3,500 3,500 IDRB (Perkin Paperboard Co., LP) Series 1994 1.45%, 07/07/02 5,500 5,500 IDRB (Presbyterian Home Lake) Series 1996A 1.25%, 07/07/02 1,000 1,000 IDRB (Radiological Society Project) Series 1997 1.30%, 07/07/02 3,980 3,980 IDRB (River Graphics Corp. Project) Series 1996 1.55%, 07/07/02 2,945 2,945 RB (Catholic Charities Housing Project) Series 1993A 1.65%, 07/07/02 9,160 9,160
See the Financial Notes, which are integral to this information. 21 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) RB (Chicago Academy of Science Project) 1.25%, 07/07/02 4,115 4,115 RB (Chicago Academy of Science Project) Series 1998 1.25%, 07/07/02 5,700 5,700 RB (Chicago Horticultural Society Project) 1.25%, 07/07/02 10,000 10,000 RB (Korex Corp. Project) 1.30%, 07/07/02 4,000 4,000 RB (Lake Forest Academy Project) 1.25%, 07/07/02 2,000 2,000 RB (Loyola Academy Project) 1.25%, 07/07/02 16,845 16,845 RB (McCormick Theological Project) Series 2001B 1.25%, 07/07/02 14,500 14,500 RB (Palos Common Hospital Project) Series 1998 1.30%, 07/07/02 10,000 10,000 RB (Presbyterian Homes Project) 1.25%, 07/07/02 4,000 4,000 RB (Roll Service, Inc. Project) 1.45%, 07/07/02 2,230 2,230 RB (Slovak American Charitable Project) 1.25%, 07/07/02 8,060 8,060 RB (St. Ignatius College Prep. Project) 1.25%, 07/07/02 4,700 4,700 RB (Variable Rest Haven Illiana Christian) 1.25%, 07/07/02 1,555 1,555 RB (Wheaton Academy Project) 1.25%, 07/07/02 3,000 3,000 Residential Rental RB (F.C Harris Pavillion Project) Series 1994 1.30%, 07/07/02 17,510 17,510 Residential Rental RB (River Oak Project) 1.32%, 07/07/02 32,000 32,000 Revenue Refunding Bond (Francis W. Parker Project) 1.20%, 07/07/02 2,500 2,500 Revenue Refunding Bond (Rich Products Corp. Project) 1.35%, 07/07/02 1,525 1,525 Water Facilities Revenue Refunding Bond (Illinois American Water Co. Project) 1.35%, 07/07/02 5,000 5,000 +@ ILLINOIS EDUCATIONAL FACILITIES TOB 1.37%, 07/07/02 2,000 2,000 +@ ILLINOIS EDUCATIONAL FACILITY AUTHORITY RB (Chicago Historical Society) 1.25%, 07/07/02 7,900 7,900 +@ ILLINOIS HDA M/F Mortgage Revenue Refunding Bond (Hyde Park Tower Apartments Project) Series 2000A 1.45%, 07/07/02 4,500 4,500 +@ ILLINOIS HEALTH FACILITY AUTHORITY RB (Bensenville Home Society Project) Series 1989A 1.30%, 07/07/02 2,175 2,175 RB (Washington & Jane Smith Home) Series 1991 1.30%, 07/07/02 2,800 2,800 +@ ILLINOIS METROPOLITAN PIER AND EXPO AUTHORITY TOB (McCormick Place Exposition Project) 1.33%, 07/07/02 24,145 24,145 +@ ILLINOIS REGIONAL TRANSPORTATION AUTHORITY GO TOB 1.33%, 07/07/02 9,730 9,730 +@ ILLINOIS STATE GO TOB 1.33%, 07/07/02 28,125 28,125 GO TOB Series 2001-2 1.33%, 07/07/02 5,000 5,000 ILLINOIS STATE TOLL HIGHWAY AUTHORITY Highway Priority RB Series 1992A 1.75%, 01/01/03 20,000 20,835 +@ ILLINOIS STUDENT ASSISTANCE COMMISSION Student Loan RB Series 1996A 1.30%, 07/07/02 7,700 7,700 +@ ILLINOIS VARIOUS COUNTIES GO TOB 1.33%, 07/07/02 12,055 12,055 +@ LOMBARD, ILLINOIS Industrial Development Revenue Refunding Bond (B & H Partnership Project) 1.60%, 07/07/02 1,850 1,850
See the Financial Notes, which are integral to this information. 22
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ MELROSE PARK, ILLINOIS IDRB (Ninos Enterprises, Inc. Project) 1.45%, 07/07/02 2,700 2,700 +@ NEW LENOX, ILLINOIS IDRB (Panduit Corp. Project) 1.40%, 07/07/02 4,400 4,400 +@ OAK FOREST, ILLINOIS RB (Homewood Pool-South Suburban Mayors & Managers Association Project) 1.30%, 07/07/02 10,000 10,000 +@ ORLAND PARK, ILLINOIS IDRB (Orland Properties Project) 1.70%, 07/07/02 890 890 +@ PALATINE, ILLINOIS SPECIAL FACILITIES Limited Obligation RB (Little City Community Development Project) 1.25%, 07/07/02 4,000 4,000 +@ RICHTON PARK, ILLINOIS IDRB (Avatar Corp. Project) 1.55%, 07/07/02 1,900 1,900 +@ ROCKFORD, ILLINOIS IDRB (Industrial Welding Supply, Inc. Project) 1.55%, 07/07/02 2,000 2,000 IDRB (Ring Can Corp. Project) 1.35%, 07/07/02 1,800 1,800 +@ TINLEY PARK, ILLINOIS IDA RB (Beverly Manufacturing Co. Project) Series 1997A 1.55%, 07/07/02 2,370 2,370 +@ UNIVERSITY OF ILLINOIS RB Merlot TOB Series 2000S 1.37%, 07/07/02 3,500 3,500 +@ WILL-KANKAKEE, ILLINOIS REGIONAL DEVELOPMENT AUTHORITY IDRB (Toltec Steel Services Project) 1.35%, 07/07/02 4,875 4,875 +@ YORKVILLE, ILLINOIS IDRB (F.E. Wheaton & Co., Inc. Project) Series 1996 1.55%, 07/07/02 1,210 1,210 -------- 709,240 INDIANA 1.3% +@ ELKHART COUNTY, INDIANA Economic Development RB (White Plains Apartments Project) Series 1998A 1.35%, 07/07/02 1,950 1,950 +@ GARY, INDIANA EMPOWERMENT ZONE RB (Chemcoaters, LLC Project) Series 2000A 1.50%, 07/07/02 6,500 6,500 +@ GARY, INDIANA REDEVELOPMENT DISTRICT Economic Growth RB Series 20001-A 1.35%, 07/07/02 12,420 12,420 +@ HAMMOND, INDIANA Economic Development RB (Lear Seating Corp. Project) Series 1994 1.50%, 07/07/02 9,145 9,145 +@ INDIANA DEVELOPMENT FINANCE AUTHORITY IDRB (Cives Corp. Project) Series 1998 1.35%, 07/07/02 7,150 7,150 INDIANA HEALTH FACILITY FINANCING AUTHORITY RB TECP (Ascension Health Credit Group) Series 2001A-2 1.83%, 07/03/03 25,000 25,000 INDIANA STATE DEVELOPMENT FINANCE AUTHORITY Environmental Improvement Revenue Refunding Bond (USX Corp. Project) 1.40%, 08/01/02 14,000 14,000 +@ IDRB (Big Sky Park Project) 1.35%, 07/07/02 6,000 6,000 +@ INDIANA STATE HFA S/F Mortgage RB TOB Series 2000P 1.40%, 07/07/02 8,640 8,640 +@ INDIANA STATE HOUSING TOB Series 1999A 1.38%, 07/07/02 9,995 9,995 +@ INDIANA THERMAL ENERGY SYSTEM RB TOB 1.33%, 07/07/02 9,900 9,900 +@ INDIANA UNIVERSITY, INDIANA RB 1.20%, 07/07/02 6,039 6,039
See the Financial Notes, which are integral to this information. 23 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ INDIANAPOLIS, INDIANA M/F Housing RB (Nora Pines Apartments Project) 1.35%, 07/07/02 5,000 5,000 +@ MIAMI COUNTY, INDIANA Economic Development RB (Dukes Memorial Hospital Project) 1.30%, 07/07/02 4,965 4,965 +@ ST. JOSEPH COUNTY, INDIANA Economic Development RB (Pine Oaks Apartments Project) Series 1997A 1.35%, 07/07/02 1,000 1,000 Economic Development RB Series 1997B 1.35%, 07/07/02 3,430 3,430 Educational Facilities RB (University of Notre Dame) 1.10%, 07/07/02 4,200 4,200 +@ UNIVERSITY OF SOUTHERN INDIANA AUXILIARY SYSTEM RB Series 2001B 1.25%, 07/07/02 10,800 10,800 +@ VIGO COUNTY, INDIANA Economic Development Revenue Bond (Sister's Providence Project) 1.40%, 07/07/02 3,500 3,500 -------- 149,634 IOWA 0.8% + IOWA STATE SCHOOL CASH ANTICIPATION PROGRAM TRAN 1.65%, 06/20/03 50,000 50,525 +@ IOWA STUDENT LOAN LIQUIDITY CORP. Student Loan RB Series 1988B 1.30%, 07/07/02 33,600 33,600 +@ SAINT JOSEPH COUNTY, IOWA ECONOMICAL DEVELOPMENT AUTHORITY RB (Western Manor Project) 1.35%, 07/07/02 2,130 2,130 -------- 86,255 KANSAS 1.1% +@ KANSAS DEPARTMENT OF TRANSPORTATION HIGHWAY RB TOB Series 1999 1.33%, 07/07/02 37,500 37,500 OLATHE, KANSAS Temporary GO Series 2002A 1.84%, 06/01/03 41,785 42,130 +@ WICHITA, KANSAS Airport Facilities Revenue Refunding Bond (Cessna Service Center Project) 1.45%, 07/07/02 11,245 11,245 Airport Facilities Revenue Refunding Bond (Flight Safety International, Inc. Project) 1.33%, 07/07/02 26,170 26,170 -------- 117,045 KENTUCKY 1.8% +@ ELIZABETHTOWN, KENTUCKY IDRB (Aztec Project) 1.40%, 07/07/02 3,000 3,000 +@ JEFFERSON COUNTY, KENTUCKY SPORTS STADIUM RB (University of Louisville Athletic Department) 1.40%, 07/07/02 5,300 5,300 +@ KENTON COUNTY, KENTUCKY AIRPORT BOARD Special Facilities RB Series 2000A 1.40%, 07/07/02 8,915 8,915 + KENTUCKY CORPORATE HOUSING o RB TOB Series 1998W 1.65%, 11/07/02 19,320 19,320 @ Revenue Merlot TOB Series 2000U 1.42%, 07/07/02 9,685 9,685 +@ KENTUCKY HIGHER EDUCATION STUDENT LOAN CORP. Insured Student Loan RB Series 1991E 1.25%, 07/07/02 42,600 42,600 Insured Student Loan RB Series 1996A 1.25%, 07/07/02 23,850 23,850 +@ KENTUCKY HOUSING CORP. Housing RB TOB Series 2002A 1.42%, 07/07/02 5,995 5,995
See the Financial Notes, which are integral to this information. 24
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) S/F Mortgage RB TOBP (PT-628) 1.40%, 07/07/02 7,440 7,440 = KENTUCKY INTERLOCAL SCHOOL TRANSPORTATION ASSOCIATION TRAN 1.64%, 06/30/03 42,663 43,232 +@ LOUISVILLE & JEFFERSON COUNTIES, KENTUCKY METRO SEWER DISTRICT TOB Series A 1.33%, 07/07/02 6,115 6,115 +@ LOUISVILLE & JEFFERSON COUNTIES, KENTUCKY REGIONAL AIRPORT AUTHORITY Special Facilities RB (UPS Project) Series 1999C 1.70%, 07/01/02 1,800 1,800 +@ MURRAY, KENTUCKY IDA Revenue Refunding Bond (Dean Foods Co. Project) 1.35%, 07/07/02 6,000 6,000 +@ RICHMOND, KENTUCKY IDRB (Mikron Project) 1.40%, 07/07/02 7,175 7,175 +@ WICKLIFFE, KENTUCKY Pollution Control & Solid Waste Disposal Revenue Refunding Bond (Westvaco Corp. Project) 1.25%, 07/07/02 4,250 4,250 +@ WILSON COUNTY, KENTUCKY IDB RB (Perma Pipe Project) 1.60%, 07/07/02 3,150 3,150 -------- 197,827 LOUISIANA 1.0% +@ CALCASIEU PARISH, LOUSIANA IDB IDRB (Weingarten Realty Project) 1.30%, 07/07/02 1,990 1,990 +@ LAFAYETTE PARISH, LOUISIANA IDRB (Westwood Village Project) 1.30%, 07/07/02 3,735 3,735 +@ LAKE CHARLES, LOUISIANA HARBOR & TERMINAL DISTRICT Dock & Wharf RB (Conoco, Inc. Project) 1.35%, 07/07/02 10,500 10,500 + LOUISIANA STATE GO Series 1996A 1.75%, 08/01/02 5,000 5,018 +@ NEW ORLEANS, LOUISIANA AVIATION BOARD RB Series 1993B 1.35%, 07/07/02 5,760 5,760 +@ OUACHITA PARISH, LOUISIANA IDB IDRB (Sulzer Escher Wyss, Inc. Project) 1.35%, 07/07/02 1,500 1,500 ST. JAMES PARISH, LOUISIANA Pollution Control Revenue Refunding Bond TECP (Texaco Project) Series 1988A 1.75%, 09/26/02 36,500 36,500 Pollution Control Revenue Refunding Bond TECP (Texaco Project) Series 1988B 1.75%, 09/26/02 44,030 44,030 -------- 109,033 MARYLAND 0.7% BALTIMORE COUNTY, MARYLAND Consolidated Public TECP 1.45%, 09/26/02 20,000 20,000 +@ MARYLAND STATE COMMUNITY HOUSING DEVELOPMENT ADMINISTRATION DEPARTMENT S/F Mortgage Revenue TOBP (PA-634) 1.37%, 07/07/02 7,380 7,380 TOB Series 1999G 1.38%, 07/07/02 32,335 32,335 +@ MARYLAND STATE ECONOMIC DEVELOPMENT CORP. Economic Development RB (Hunter Douglas Project) 1.35%, 07/07/02 3,400 3,400 IDRB (Dixon Valve Project) 1.40%, 07/07/02 2,615 2,615 +@ MARYLAND STATE ENERGY FINANCING ADMINISTRATION Limited Obligation Local District RB (Comfort Link Project) 1.35%, 07/07/02 10,000 10,000 -------- 75,730 MASSACHUSETTS 1.2% COHASSET, MASSACHUSETTS BAN 2.65%, 07/26/02 18,025 18,035
See the Financial Notes, which are integral to this information. 25 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) FALMOUTH, MASSACHUSETTS BAN 1.60%, 01/24/03 3,895 3,909 GATEWAY, MASSACHUSETTS REGIONAL SCHOOL DISTRICT BAN 1.60%, 01/31/03 5,000 5,026 +@ MASSACHUSETTS INDUSTRIAL FINANCE AUTHORITY IDRB (Arkansas Electronic Products Corp. Project) 1.40%, 07/07/02 2,600 2,600 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO. Power Supply System RB Series 1992B 1.40%, 07/01/02 1,000 1,020 +@ MASSACHUSETTS ROUTE 3 NORTH TRANSPORTATION IMPORT ASSOCIATION Lease RB Series 2002B 1.20%, 07/07/02 5,000 5,000 MASSACHUSETTS STATE Consolidated Loan GO Series 2002A 1.50%, 01/01/03 5,000 5,062 +@ TOB Series 2001O 1.20%, 07/07/02 2,785 2,785 +@ TOB Series 2002C 1.20%, 07/07/02 3,485 3,485 +@ MASSACHUSETTS STATE DEVELOPMENT FINANCE AGENCY Higher Education Revenue Refunding Bond (Smith College Project) 1.20%, 07/07/02 125 125 MASSACHUSETTS STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY RB (Milford Whitinsville Regional) Series 1993B 1.62%, 07/15/02 2,365 2,418 +@ RB (Milliams College) Series 1993E 1.10%, 07/07/02 5,505 5,505 +@ RB TOB Series 2002D 1.20%, 07/07/02 10,510 10,510 + MASSACHUSETTS STATE HFA S/F Housing RB Series 2001H 2.05%, 12/02/02 10,000 10,000 +@ MASSACHUSETTS STATE WATER POLLUTION ABATEMENT TRUST Water Pollution TOB Series 1999N 1.32%, 07/07/02 16,500 16,500 + MASSACHUSETTS WATER RESOURCES AUTHORITY TECP 1.40%, 10/04/02 21,865 21,865 NORWELL, MASSACHUSETTS BAN 1.65%, 02/21/03 7,110 7,160 TEWKSBURY, MASSACHUSETTS BAN 1.65%, 02/21/03 7,104 7,131 + UNIVERSITY OF MASSACHUSETTS BUILDING AUTHORITY RB Series 2 1.45%, 11/01/02 1,360 1,376 -------- 129,512 MICHIGAN 4.5% +@ ANN ARBOR, MICHIGAN ECONOMIC DEVELOPMENT CORP. Limited Obligation RB (Glacier Hills, Inc. Project) Series 2000A 1.33%, 07/07/02 23,245 23,245 Limited Obligation RB (Glacier Hills, Inc. Project) Series 2000B 1.33%, 07/07/02 9,620 9,620 +@ DETROIT, MICHIGAN CITY SCHOOL DISTRICT GO TOB Series 2002A 1.30%, 07/07/02 4,620 4,620 +@ DETROIT, MICHIGAN SEWAGE DISPOSAL SYSTEM RB TOB Series 1999A 1.33%, 07/07/02 34,650 34,650 RB TOB Series 2002G 1.31%, 07/07/02 4,260 4,260 +@ EASTERN MICHIGAN UNIVERSITY BOARD OF REGENTS Revenue Refunding Bond 1.90%, 07/07/02 3,700 3,700 +@ GEORGETOWN TOWNSHIP, MICHIGAN ECONOMIC DEVELOPMENT CORP. Limited Obligation RB (Sunset Manor, Inc. Project) 1.33%, 07/07/02 9,180 9,180
See the Financial Notes, which are integral to this information. 26
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ GRAND RAPIDS, MICHIGAN ECONOMIC DEVELOPMENT CORP. RB (Amway Hotel Corp. Project) Series 1991A 1.35%, 07/07/02 8,755 8,755 MICHIGAN COMPREHENSIVE TRANSPORTATION Revenue Refunding Bond Series 2002A 1.85%, 05/15/03 10,655 10,760 MICHIGAN MUNICIPAL BOND AUTHORITY RB Series 2002A 1.30%, 08/21/02 30,200 30,240 + RB Series C-2 2.59%, 08/22/02 105,500 105,635 MICHIGAN STATE TECP 1.55%, 09/04/02 14,000 14,000 + MICHIGAN STATE BUILDING AUTHORITY TECP 1.60%, 07/18/02 25,425 25,425 1.65%, 07/18/02 4,000 4,000 +@ MICHIGAN STATE HDA TOBP (PT-556) 1.37%, 07/07/02 3,630 3,630 +@ MICHIGAN STATE HOSPITAL FINANCE AUTHORITY RB (Martin Luther Memorial Home Inc. Project) 1.25%, 07/07/02 8,085 8,085 +@ MICHIGAN STATE STRATEGIC FUND Limited Obligation RB (Advance Plastics Corp.) 1.45%, 07/07/02 2,430 2,430 Limited Obligation RB (American Cancer Society Great Lakes) 1.35%, 07/07/02 5,790 5,790 Limited Obligation RB (EPI Printers, Inc. Project) 1.45%, 07/07/02 2,000 2,000 Limited Obligation RB (John Widdicomb Co. Project) 1.45%, 07/07/02 1,105 1,105 Limited Obligation RB (Manufacturer's Project) Series 1991 1.45%, 07/07/02 1,050 1,050 Limited Obligation RB (Mechanics Uniform Rental Project) 1.45%, 07/07/02 1,000 1,000 Limited Obligation RB (Orchestra Place Renewal Project) 1.48%, 07/07/02 15,000 15,000 Limited Obligation RB (United Machining Project) Series 1998 1.45%, 07/07/02 6,000 6,000 Limited Obligation RB Series 1998B 1.45%, 07/07/02 1,615 1,615 +@ MICHIGAN STATE TRUNK LINE Revenue Refunding TOB Series 1998A 1.45%, 07/07/02 46,666 46,666 +@ OAKLAND COUNTY, MICHIGAN ECONOMIC DEVELOPMENT CORP. Limited Obligation RB (Husky Envelope Products, Inc. Project) 1.45%, 07/07/02 2,620 2,620 Limited Obligation RB (Pontiac Vision Schools Project) 1.35%, 07/07/02 11,000 11,000 +@ WAYNE CHARTER COUNTY, MICHIGAN AIRPORT RB (Detroit Metropolitan Wayne County Airport Project) 1.33%, 07/07/02 55,000 55,000 RB (Detroit Metropolitan Wayne County Airport Project) Series 1996A 1.35%, 07/07/02 5,650 5,650 RB (Detroit Metropolitan Wayne County Airport Project) Series 2002A 1.30%, 07/07/02 42,000 42,000 -------- 498,731 MINNESOTA 2.6% +@ BLOOMINGTON, MINNESOTA PORT AUTHORITY Special Tax Revenue Refunding Bond (Mall of America Project) Series 1999B 1.35%, 07/07/02 10,000 10,000 +@ DAKOTA COUNTY, MINNESOTA COMMUNITY DEVELOPMENT AGENCY S/F RB TOBP (PT-627) 1.40%, 07/07/02 5,500 5,500 +@ HENNEPIN COUNTY, MINNESOTA Unlimited GO Series 1996C 1.45%, 07/07/02 3,250 3,250
See the Financial Notes, which are integral to this information. 27 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ HENNEPIN COUNTY, MINNESOTA HOUSING & REDEVELOPMENT AUTHORITY M/F Housing RB (City Apartments at Loring Park) 1.50%, 07/07/02 2,600 2,600 +@ MENDOTA HEIGHTS, MINNESOTA IDRB (Dakota Business Plaza Project) 1.60%, 07/07/02 2,300 2,300 + MINNEAPOLIS ST. PAUL, MINNESOTA AIRPORT COMMISSION TECP 1.50%, 10/03/02 20,000 20,000 1.70%, 07/08/02 10,000 10,000 1.55%, 10/03/02 7,500 7,500 +@ MINNESOTA STATE Agriculture & Economic Development RB (Evangelical Lutheran Project) 1.40%, 07/07/02 8,000 8,000 + MINNESOTA STATE HFA Residential Housing Finance RB Series 2001B 1.90%, 12/04/02 63,785 63,785 Residential Housing Finance RB Series 2001C 1.90%, 12/04/02 30,230 30,230 Residential Housing Finance RB Series 2001D 1.90%, 12/04/02 35,805 35,805 +@ MINNESOTA STATE HIGHER EDUCATION FACILITIES AUTHORITY RB (Carleton College) Series 2000G 1.20%, 07/07/02 13,630 13,630 RB (St. Thomas University Project) Series 5-L 1.35%, 07/07/02 4,000 4,000 RB (St. Thomas University Project) 1.35%, 07/07/02 9,700 9,700 ROCHESTER, MINNESOTA Health Care Facility RB TECP (Mayo Medical Center) 1.30%, 07/17/02 50,700 50,700 +@ Health Care Facilities RB TOB Series 177 1.31%, 07/07/02 7,130 7,130 +@ ST. LOUIS PARK, MINNESOTA M/F Housing RB (At the Park Project) Series 2002A 1.40%, 07/07/02 3,300 3,300 -------- 287,430 MISSISSIPPI 0.9% +@ JACKSON COUNTY, MISSISSIPPI Pollution Control Revenue Refunding Bond (Chevron USA, Inc. Project) 1.75%, 07/01/02 1,000 1,000 +@ MISSISSIPPI GO Refunding Bond TOB 1.33%, 07/07/02 14,880 14,880 +@ MISSISSIPPI BUSINESS FINANCE AUTHORITY IDRB (Clopay Building Products Co. Project) Series 1999 1.35%, 07/07/02 3,300 3,300 +@ MISSISSIPPI BUSINESS FINANCIAL CORP. IDRB (Electric Mills Wood Project) 1.45%, 07/07/02 5,000 5,000 IDRB (Omega Motion Project) Series 1996 1.35%, 07/07/02 5,500 5,500 +@ MISSISSIPPI DEVELOPMENT BANK Special Obligation TOBP (PT-520) 1.30%, 07/07/02 38,365 38,365 +@ MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTHORITY RB (Baptist Memorial Hospital Project) 1.26%, 07/07/02 17,460 17,460 +@ MISSISSIPPI S/F HFA TOB Series 1997G 1.38%, 07/07/02 12,330 12,330 -------- 97,835 MISSOURI 0.5% +@ MISSOURI HIGHER EDUCATION LOAN AUTHORITY Student Loan RB Series 1988A 1.25%, 07/07/02 13,800 13,800 +@ MISSOURI STATE DEVELOPMENT FINANCE BOARD IDRB (H.R. Williams Mill Supply Project) Series 1995 1.50%, 07/07/02 3,100 3,100
See the Financial Notes, which are integral to this information. 28
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) IDRB (Milbank Manufacturing Co. Project) 1.55%, 07/07/02 3,000 3,000 +@ MISSOURI STATE HEALTH AND EDUCATIONAL FACILITIES AUTHORITY Health Facilities RB (National Benevolent Association Project) 1.25%, 07/07/02 2,695 2,695 +o MISSOURI STATE HOUSING DEVELOPMENT COMMISSION Mortgage RB TOBP (PA-847) 1.55%, 08/15/02 6,210 6,210 +@ ST. CLAIR, MISSOURI IDA RB (Private Dynaquip) 1.35%, 07/07/02 1,000 1,000 = ST. LOUIS, MISSOURI GENERAL FUND TRAN 1.67%, 06/26/03 20,000 20,234 +@ ST. LOUIS, MISSOURI IDA RB (Kessler Container Project) 1.35%, 07/07/02 2,400 2,400 +@ WASHINGTON, MISSOURI IDA RB (Pauwels Transformer Project) 1.53%, 07/07/02 3,200 3,200 -------- 55,639 MONTANA 0.0% +@ CLAY COUNTY, MONTANA IDRB (KC Salad Real Estate Project) 1.40%, 07/07/02 1,900 1,900 NEBRASKA 0.5% +@ DODGE COUNTY, NEBRASKA IDRB (Oilgear Project) 1.55%, 07/07/02 1,670 1,670 + NEBRASKA INVESTMENT FINANCE AUTHORITY @ S/F Housing RB Merlot TOB Series 2000O 1.42%, 07/07/02 3,525 3,525 o S/F Housing RB TOB Series 1998X 1.65%, 11/07/02 10,735 10,735 NEBRASKA PUBLIC POWER DISTRICT Power Supply System RB 1.67%, 01/01/03 13,000 13,545 Power Supply System RB 1.85%, 01/01/03 7,690 8,006 +@ STANTON COUNTY, NEBRASKA IDRB (Nucor Corp. Project) Series 1996 1.50%, 07/07/02 19,300 19,300 -------- 56,781 NEVADA 1.6% +@ CLARK COUNTY, NEVADA Economic Development RB (University of Nevada Las Vegas Project) 1.30%, 07/07/02 705 705 +@ CLARK COUNTY, NEVADA AIRPORT Airport Improvement RB (System Subordinate Lien) Series 1995A2 1.33%, 07/07/02 1,200 1,200 + CLARK COUNTY, NEVADA AIRPORT REVENUE SYSTEMS Sub Lien RB Series 1999B1 1.30%, 07/03/02 21,360 21,360 + CLARK COUNTY, NEVADA MOTOR FUEL TAX TECP 1.30%, 07/08/02 4,925 4,925 + CLARK COUNTY, NEVADA PASSENGER FACILITY RB (Las Vegas McCarran International Airport) Series 1992A 1.80%, 07/01/02 11,000 11,220 + CLARK COUNTY, NEVADA SCHOOL DISTRICT @ TOB Series 2000-5 1.33%, 07/07/02 19,935 19,935 o TOB Series 2001F 1.65%, 08/28/02 21,715 21,715 + LAS VAGAS VALLEY, NEVADA WATER DISTRICT GO TECP 1.50%, 10/03/02 40,000 40,000 +@ NEVADA HOUSING DIVISION M/F Housing RB (Apache Pines Apartments Project) Series 1999A 1.35%, 07/07/02 7,415 7,415 M/F Housing RB Series 1989A 1.20%, 07/07/02 5,300 5,300 Multi-Unit Housing RB (Banbridge Apartment Project) Series 2000A 1.35%, 07/07/02 3,960 3,960 Multi-Unit Housing RB (City Center Project) Series 2000A 1.35%, 07/07/02 9,350 9,350
See the Financial Notes, which are integral to this information. 29 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) Multi-Unit Housing RB (Oakmont Project) 1.35%, 07/07/02 4,350 4,350 Multi-Unit Housing RB (Silver Pines Apartments) Series 2002A 1.25%, 07/07/02 5,400 5,400 +@ WASHOE COUNTY, NEVADA Refunding TOB (Reno Sparks Convention Center Project) Series 2001A 1.33%, 07/07/02 21,000 21,000 ------- 177,835 NEW HAMPSHIRE 0.1% +@ NEW HAMPSHIRE STATE HFA S/F Revenue TOB Series 1998G 1.38%, 07/07/02 5,855 5,855 S/F Revenue TOB Series 1998U 1.38%, 07/07/02 9,995 9,995 ------- 15,850 NEW JERSEY 0.8% EAST BRUNSWICK, NEW JERSEY BAN 2.05%, 03/19/03 12,000 12,080 +@ NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY RB (Catholic Community Services Project) 1.15%, 07/07/02 200 200 +@ NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY RB 2001A 1.15%, 07/07/02 500 500 +o NEW JERSEY STATE HIGHWAY AUTHORITY Putters General Revenue TOB (Garden State Parkway Project) Series 247 1.42%, 09/12/02 14,930 14,930 +o NEW JERSEY STATE HOUSING & MORTGAGE FINANCE AGENCY RB TOBP (PT-285) 1.50%, 07/11/02 780 780 o NEW JERSEY STATE TRANSPORTATION CORP. TOB Series 148 2.00%, 10/04/02 2,305 2,305 +@ NEW JERSEY STATE TURNPIKE AUTHORITY RB TOBP (PA-719) 1.18%, 07/07/02 2,795 2,795 NORTH BRUNSWICK, NEW JERSEY BAN 2.63%, 08/21/02 5,000 5,004 +@ NORTH HUDSON, NEW JERSEY SEWAGE AUTHORITY RB Series 2001B 1.10%, 07/07/02 15,455 15,455 SUSSEX COUNTY, NEW JERSEY BAN 1.79%, 06/06/03 6,000 6,053 = WOODBRIDGE TOWNSHIP, NEW JERSEY BAN 1.50%, 07/08/03 7,000 7,069 1.52%, 07/08/03 23,000 23,222 ------- 90,393 NEW MEXICO 0.2% +@ ALBUQUERQUE, NEW MEXICO AIRPORT Subordinated Lien RB Series 1996A 1.30%, 07/07/02 10,260 10,260 +@ SANTA FE, NEW MEXICO GROSS RECEIPTS TAX Wastewater Systems RB Series 1997B 1.30%, 07/07/02 17,000 17,000 ------- 27,260 NEW YORK 2.9% +@ DUTCHESS COUNTY, NEW YORK IDA Civic Facilities RB (Trinity Pawling School Corp. Project) 1.20%, 07/07/02 1,825 1,825 +@ JAY STREET DEVELOPMENT CORP., NEW YORK Lease RB (Jay Street Project) Series A2001-1 1.10%, 07/07/02 1,000 1,000 +@ LONG ISLAND, NEW YORK POWER AUTHORITY Electric System RB Series 1998A 1.10%, 07/07/02 5,000 5,000 Electric System RB TOB Series 1998A 1.18%, 07/07/02 10,970 10,970 Electric System RB TOB Series 338 1.18%, 07/07/02 20,295 20,295 Electric System RB TOBP (PA-565) 1.21%, 07/07/02 5,000 5,000
See the Financial Notes, which are integral to this information. 30
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ MACON, NEW YORK STATE MANAGMENT AGENCY RB TOB Series 1999H 1.18%, 07/07/02 14,995 14,995 METROPOLITAN NEW YORK TRANSPORTATION AUTHORITY TECP 1.40%, 09/09/02 16,500 16,500 +@ NEW YORK CITY, NEW YORK GO TOB (CoreStates Merlot Program) Series 1997C 1.27%, 07/07/02 17,825 17,825 +@ NEW YORK CITY, NEW YORK HOUSING DEVELOPMENT CORP. M/F Mortgage RB (15th Street Development Project) Series 2000A 1.20%, 07/07/02 7,000 7,000 M/F Rental Housing RB (Lyric Development Project) Series 2001A 1.15%, 07/07/02 20,000 20,000 +@ NEW YORK CITY, NEW YORK IDA IDRB (Allway Tools, Inc. Project) 1.30%, 07/07/02 1,710 1,710 +@ NEW YORK CITY, NEW YORK MUNICIPAL WATER FINANCE AUTHORITY Water & Sewer System RB Series 1994G 1.70%, 07/01/02 2,500 2,500 Water & Sewer Systems RB TOB Series 158 1.18%, 07/07/02 9,995 9,995 NEW YORK CITY, NEW YORK TRANSITIONAL FINANCE AUTHORITY BAN Series 2002-4 1.65%, 02/26/03 22,500 22,622 +@ Future Tax Secured TOB Series 1999B 1.27%, 07/07/02 14,820 14,820 +o NEW YORK STATE DORMITORY AUTHORITY RB TOB Series 2000-15 1.55%, 08/07/02 20,000 20,000 +@ NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY Facilities RB (Con Edison Co. Project) Subseries A-3 1.20%, 07/07/02 10,000 10,000 Gas Facilities RB TOB Series 379 1.18%, 07/07/02 1,570 1,570 Pollution Control Revenue Refunding Bond (Orange & Rockland Utilities, Inc. Project) Series 1994A 1.10%, 07/07/02 900 900 +@ NEW YORK STATE HFA M/F Housing RB (Union Square South Housing Project) 1.15%, 07/07/02 22,400 22,400 M/F Housing Second Mortgage RB Series 1999A 1.20%, 07/07/02 2,000 2,000 RB (70 Battery Place Project) Series 1999A 1.20%, 07/07/02 3,600 3,600 RB Series 1997A 1.15%, 07/07/02 17,600 17,600 +o NEW YORK STATE LOCAL GOVERNMENT ASSISTANCE CORP. RB TOB Series 468X 1.65%, 02/06/03 10,000 10,000 +@ NEW YORK STATE MORTGAGE AGENCY RB Series 2000K 1.18%, 07/07/02 6,215 6,215 RB TOB Series 1999F 1.18%, 07/07/02 10,700 10,700 NEW YORK STATE TOLLWAY AUTHORITY BAN Series 2002A 2.20%, 03/26/03 9,500 9,572 PORT AUTHORITY OF NEW YORK & NEW JERSEY +@ Special Obligation RB TOB 4,345 4,345 1.23%, 07/07/02 TECP 1.65%, 07/12/02 14,000 14,000 +@ TOB Series 2000Z 1.32%, 07/07/02 5,065 5,065 RAVENA COEYMANS SELKIRK, NEW YORK CENTENIAL SCHOOL DISTRICT BAN 1.72%, 06/20/03 9,747 9,866 +@ YONKERS, NEW YORK IDA Civic Facilities RB (Consumers Union Facility Project) 1.15%, 07/07/02 460 460 ------- 320,350
See the Financial Notes, which are integral to this information. 31 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) NORTH CAROLINA 1.6% +@ BUNCOMBE COUNTY, NORTH CAROLINA SCHOOL GO Series 2000C 1.30%, 07/07/02 14,000 14,000 +@ BURKE COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES POLLUTION CONTROL FINANCING AUTHORITY IDRB (Bauer Industries, Inc. Project) 1.40%, 07/07/02 2,655 2,655 +@ CHARLOTTE, NORTH CAROLINA AIRPORT Revenue Refunding Bond Series 1997A 1.30%, 07/07/02 5,965 5,965 +@ DURHAM, NORTH CAROLINA HOUSING AUTHORITY M/F Housing RB (Pendleton Townhomes Project) 1.35%, 07/07/02 5,490 5,490 +@ FORSYTH COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY RB (Plymouth Printing Project) 1.40%, 07/07/02 1,650 1,650 +@ GATES COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY IDRB (Coxe-Lewis Project) 1.45%, 07/07/02 1,485 1,485 +@ GUILFORD COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY RB (Culp, Inc. Project) 1.40%, 07/07/02 3,825 3,825 RB (Neal Manufacturing Project) 1.35%, 07/07/02 2,100 2,100 RB (Vitafoam, Inc. Project) 1.35%, 07/07/02 5,500 5,500 +@ HERTFORD COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY IDRB (Nucor Corp. Project) Series 2000 1.33%, 07/07/02 17,500 17,500 IDRB (Nucor Corp. Project) Series 2000A 1.50%, 07/07/02 26,500 26,500 +@ JOHNSTON COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY RB (Flanders Corp. Project) 1.35%, 07/07/02 4,500 4,500 +@ NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY Capital Facilities RB (Durham Academy Project) 1.25%, 07/07/02 23,700 23,700 +@ NORTH CAROLINA EDUCATIONAL FACILITIES FINANCE AGENCY RB (Davidson College) Series 2000B 1.25%, 07/07/02 19,000 19,000 RB (High Point University Project) 1.25%, 07/07/02 5,110 5,110 RB (Queens College) Series 1999B 1.25%, 07/07/02 6,160 6,160 +@ NORTH CAROLINA STATE PUBLIC SCHOOL BUILDING TOB Series 249 1.31%, 07/07/02 2,500 2,500 +@ ROCKINGHAM COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY IDRB (McMichael Mills Project) 1.35%, 07/07/02 3,700 3,700 +@ ROWAN COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES POLLUTION CONTROL FINANCING AUTHORITY (Taylor-Clay Products Project) 1.35%, 07/07/02 4,400 4,400 +@ SAMPSON COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY IDRB (Crumpler Plastic Project) 1.40%, 07/07/02 4,100 4,100 +@ UNION COUNTY, NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY RB (Rock-Tenn Converting County Project) Series 1997 1.35%, 07/07/02 1,750 1,750
See the Financial Notes, which are integral to this information. 32
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ WAKE COUNTY, NORTH CAROLINA HOUSING AUTHORITY M/F Housing RB (Walnut Ridge Apartments Project) 1.35%, 07/07/02 10,075 10,075 +@ WILMINGTON, NORTH CAROLINA HOUSING AUTHORITY M/F Housing RB (Garden Lake Estates Project) Series 1999 1.35%, 07/07/02 7,280 7,280 ------- 178,945 NORTH DAKOTA 0.1% +@ RICHLAND COUNTY, NORTH DAKOTA IDRB (Minn-Dak Farmers Co-Op Project) Series 1986B 1.55%, 07/07/02 810 810 Solid Waste Disposal RB (Minn-Dak Farmers Co-Op Project) Series 1996A 1.55%, 07/07/02 8,870 8,870 ------- 9,680 OHIO 1.1% +@ CLEVELAND, OHIO AIRPORT SYSTEM RB Series 1997D 1.30%, 07/07/02 21,200 21,200 +@ CUYAHOGA COUNTY, OHIO Economic Development RB (Hathaway Brown School Project) Series 1999 1.25%, 07/07/02 14,650 14,650 +@ OHIO AIR QUALITY DEVELOPMENT AUTHORITY RB (JMG Funding, LP) Series 1994A 1.33%, 07/07/02 2,900 2,900 RB (Limited Partnership Project) Series 1994B 14,400 14,400 1.35%, 07/07/02 + OHIO STATE HFA @ Mortgage RB TOB 1.35%, 07/07/02 7,730 7,730 + Mortgage RB TOB Series 2000AA 1.42%, 07/07/02 5,820 5,820 @ Mortgage RB TOBP (PA-806) 1.37%, 07/07/02 565 565 Residental Mortgage Backed Securities RB Series 2001E 2.75%, 08/15/02 50,000 50,000 ------- 117,265 OKLAHOMA 1.6% +@ GARFIELD COUNTY, OKLAHOMA IDRB (Bank of Commerce Group, Inc. Project) 1.25%, 07/07/02 7,265 7,265 +@ MULDROW, OKLAHOMA PUBLIC WORKS AUTHORITY IDRB (Oklahoma Foods Project) 1.70%, 07/07/02 6,000 6,000 OKLAHOMA CITY, OKLAHOMA INDUSTRIAL CULTURAL FACILITIES Trust Health Care TECP Series 1998B 1.40%, 07/08/02 10,000 10,000 1.40%, 07/31/02 16,610 16,610 +@ OKLAHOMA COUNTY, OKLAHOMA INDUSTRIAL AUTHORITY RB (National Cowboy Hall of Fame Project) Series 1999 1.25%, 07/07/02 1,235 1,235 +@ OKLAHOMA DEVELOPMENT FINANCE AUTHORITY RB (Shawnee Funding, Ltd.) 1.35%, 07/07/02 4,000 4,000 +@ OKLAHOMA HFA S/F Housing RB TOBP (PT-360) 1.37%, 07/07/02 6,860 6,860 +@ OKLAHOMA STATE STUDENT LOAN AUTHORITY RB Series 1996A 1.30%, 07/07/02 32,580 32,580 RB Series 1997A 1.30%, 07/07/02 33,000 33,000 RB Series 1998A 1.30%, 07/07/02 33,100 33,100 RB Series 2000A-4 1.30%, 07/07/02 20,945 20,945 +@ TULSA, OKLAHOMA INDUSTRIAL AUTHORITY Hospital RB (YMCA of Greater Tulsa Project) Series 1999 1.25%, 07/07/02 2,700 2,700 ------- 174,295
See the Financial Notes, which are integral to this information. 33 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) OREGON 1.7% +@ GILLIAM COUNTY, OREGON Solid Waste Disposal RB (Waste Management Project) Series 2000A 1.40%, 07/07/02 10,000 10,000 OREGON STATE TAN Series 2002A 2.00%, 05/01/03 100,000 101,020 +@ OREGON STATE ECONOMIC DEVELOPMENT AUTHORITY RB (Kettle Foods Project) Series 186 1.40%, 07/07/02 5,725 5,725 RB (Pendleton Flour Mills Project) Series 1982 1.40%, 07/07/02 5,330 5,330 +@ OREGON STATE ECONOMIC DEVELOPMENT COMMISSION Economic & IDRB 1.25%, 07/07/02 4,100 4,100 OREGON STATE HOUSING & COMMUNITY SERVICES DEPARTMENT S/F Mortgage RB Series 2001T 2.12%, 11/14/02 2,165 2,165 S/F Mortgage RB Series 2001U 2.12%, 11/14/02 9,500 9,500 S/F Mortgage RB Series 2002C 1.67%, 02/06/03 9,000 9,000 S/F Mortgage RB Series 2002E 1.72%, 02/06/03 3,440 3,440 +@ PORT OF PORTLAND, OREGON Special Obligation RB (Portland Bulk Terminals, LLC Project) 1.25%, 07/07/02 34,000 34,000 +@ PORTLAND, OREGON M/F Housing RB (Village of Lovejoy Fountain) 1.40%, 07/07/02 7,000 7,000 ------- 191,280 PENNSYLVANIA 7.0% +@ ALLEGHENY COUNTY, PENNSYLVANIA IDA RB (USX Corp. Project) 1.35%, 07/07/02 1,900 1,900 +@ BLAIR COUNTY, PENNSYLVANIA IDA RB (Village of Pennsylvania State Project) Series 2002C 1.29%, 07/07/02 5,000 5,000 +@ CAMBRIA COUNTY, PENNSYLVANIA IDA Resource Recovery RB (Cambria Cogen Co. Project) 1.33%, 07/07/02 16,390 16,390 Resource Recovery RB (Cambria Cogen Co. Project) Series 1998A1 1.30%, 07/07/02 74,700 74,700 +@ CLARION COUNTY, PENNSYLVANIA IDA Energy Development RB (Piney Creek Project) 1.26%, 07/07/02 11,065 11,065 +@ DAUPHIN COUNTY, PENNSYLVANIA GENERAL AUTHORITY RB (Education & Health Loan Program) Series 1997 1.31%, 07/07/02 8,280 8,280 +@ DELAWARE COUNTY, PENNSYLVANIA IDA RB (YMCA of Philadelphia Project) Series 1999 1.35%, 07/07/02 605 605 +@ DELAWARE RIVER PORT AUTHORITY OF PENNSYLVANIA & NEW JERSEY RB TOBP (PA-606) 1.18%, 07/07/02 1,100 1,100 +@ DELAWARE VALLEY, PENNSYLVANIA REGIONAL FINANCE AUTHORITY Local Government RB TOB Series 2001J 1.31%, 07/07/02 11,380 11,380 +@ EASTON, PENNSYLVANIA CITY SCHOOL DISTRICT GO 1.30%, 07/07/02 4,300 4,300 +o ERIE, PENNSYLVANIA CITY SCHOOL DISTRICT TOB Series 2001A 1.45%, 07/10/02 24,645 24,645 +@ HARRISBURG, PENNSYLVANIA AUTHORITY RB 1.18%, 07/07/02 9,795 9,795
See the Financial Notes, which are integral to this information. 34
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ LANCASTER COUNTY, PENNSYLVANIA HOSPITAL AUTHORITY Health Center RB (Brethren Village Project) 1.30%, 07/07/02 1,200 1,200 Health Center RB (Masonic Homes Project) 1.25%, 07/07/02 17,435 17,435 +@ LEBANON COUNTY, PENNSYLVANIA HEALTH FACILITIES AUTHORITY RB (ECC Retirement Village Project 1.30%, 07/07/02 5,100 5,100 +@ MERCER COUNTY, PENNSYLVANIA GO TOB 1.31%, 07/07/02 7,700 7,700 +@ MONTGOMERY COUNTY, PENNSYLVANIA HIGHER EDUCATION & HEALTH AUTHORITY RB (Madlyn & Leonard Abramson Project) 1.35%, 07/07/02 3,500 3,500 + MONTGOMERY COUNTY, PENNSYLVANIA IDA @ School RB (Friends Central School Project) 1.18%, 07/07/02 8,000 8,000 Pollution Control TECP 1.50%, 07/02/02 28,400 28,400 1.30%, 07/08/02 27,000 27,000 +@ MONTGOMERY COUNTY, PENNSYLVANIA REDEVELOPMENT AUTHORITY M/F Housing RB (Brookside Manor Apartments) Series 2001A 1.15%, 07/07/02 9,510 9,510 M/F Housing RB (Kingswood Apartments Project) Series 2001A 1.15%, 07/07/02 9,205 9,205 M/F Housing Revenue Refunding Bond (Glenmore Assoc. Project) Series A 1.35%, 07/07/02 3,250 3,250 o NORTHAMTON COUNTY, PENNSYLVANIA GENERAL PURPOSE AUTHORITY RB TOB 1.40%, 07/10/02 6,995 6,995 +@ PENNSYLVANIA CONVENTION CENTER AUTHORITY RB TOBP (PT-1224) 1.27%, 07/07/02 400 400 +@ PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY Exempt Facilities RB (AMTrak Project) Series 2001B 1.50%, 07/07/02 8,000 8,000 Exempt Facilities RB (Reliant Energy Seward Project) Series 2001A 1.45%, 07/07/02 31,500 31,500 RB (Merck & Company West Point Project) 1.30%, 07/07/02 7,100 7,100 +@ PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY RB (B&W Ebensburg Project) Series 1986 1.30%, 07/07/02 19,845 19,845 RB (Piney Creek Project) Series 1986A 1.30%, 07/07/02 17,360 17,360 RB (Piney Creek Project) Series 1986C 1.30%, 07/07/02 3,000 3,000 + PENNSYLVANIA HFA @ S/F Mortgage RB TOBP (PT-278) Series 1999-66A 1.30%, 07/07/02 195 195 @ S/F Mortgage RB TOBP (PT-119A) Series 1997 1.27%, 07/07/02 699 699 o TOB Series 1998Y 1.60%, 11/07/02 9,495 9,495 o TOB Series 1999U 1.42%, 07/11/02 24,605 24,605 @ TOBP (PA-909) 1.30%, 07/07/02 2,995 2,995 +@ PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY Student Loan RB Series 1988A 1.30%, 07/07/02 800 800 Student Loan RB Series 1994A 1.30%, 07/07/02 4,400 4,400 Student Loan RB Series 1997A 1.35%, 07/07/02 20,000 20,000 Student Loan RB Series 1999A 1.30%, 07/07/02 1,000 1,000 + PENNSYLVANIA STATE Refunding GO 1.65%, 09/15/02 1,000 1,007
See the Financial Notes, which are integral to this information. 35 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) @ TOBP (PA-1035R) 1.60%, 07/07/02 14,995 14,995 @ TOBP (PA-935) 1.27%, 07/07/02 35,325 35,325 +@ PENNSYLVANIA STATE EDA Exempt Facilities RB (Reliant Energy Seward, LLC Project) Series 2002A 1.30%, 07/07/02 3,000 3,000 Exempt Facilities RB (Reliant Energy Seward, LLC Project) Series 2002B 1.30%, 07/07/02 17,000 17,000 +@ PENNSYLVANIA STATE HIGHER EDUCATION ASSISTANCE AGENCY Student Loan RB Series 2000A 1.35%, 07/07/02 33,700 33,700 Student Loan RB Series 2001A 1.35%, 07/07/02 13,200 13,200 +@ PENNSYLVANIA STATE HIGHER EDUCATIONAL FACILITIES AUTHORITY RB (Ursinus College) 1.35%, 07/07/02 3,200 3,200 +@ PENNSYLVANIA STATE OF COMMONWEALTH TOB Series 1997C 1.33%, 07/07/02 1,000 1,000 +@ PENNSYLVANIA STATE PUBLIC SCHOOL BUILDING AUTHORITY RB (Parkland School District) Series 1999D 1.30%, 07/07/02 6,900 6,900 +@ PENNSYLVANIA STATE TURNPIKE COMMISSION Turnpike RB Series 2001U 1.25%, 07/07/02 8,275 8,275 +@ PENNSYLVANIA STATE UNIVERSITY RB Series 2001A 1.24%, 07/07/02 5,000 5,000 RB Series 2002A 1.24%, 07/07/02 5,000 5,000 +@ PHILADELPHIA, PENNSYLVANIA Water & Waste RB Series 1997B 1.25%, 07/07/02 5,910 5,910 +@ PHILADELPHIA, PENNSYLVANIA GAS WORKS RB TOBP (PA-877) 1.20%, 07/07/02 5,995 5,995 +@ PHILADELPHIA, PENNSYLVANIA HOSPITALS & HIGHER EDUCATION FACILITIES AUTHORITY RB (Wills Eye Hospital Project) 1.35%, 07/07/02 13,800 13,800 + PHILADELPHIA, PENNSYLVANIA IDA o Airport RB TOB Series 1998A 1.42%, 07/11/02 13,710 13,710 @ IDRB (Girard Estate Facility Leasing Project) 1.35%, 07/07/02 13,500 13,500 @ RB (City Line Holiday Inn Project) Series 1996 1.20%, 07/07/02 6,800 6,800 @ RB (Girard Estate Aramark Project) 1.35%, 07/07/02 4,700 4,700 +@ QUAKERTOWN, PENNSYLVANIA GENERAL AUTHORITY RB (Pooled Financing Program) Series A 1.35%, 07/07/02 14,922 14,922 RB Series 1998A 1.35%, 07/07/02 12,890 12,890 +@ QUAKERTOWN, PENNSYLVANIA HOSPITAL AUTHORITY Hospital RB (Hospital Pooled Financing Group) 1.35%, 07/07/02 9,300 9,300 +@ SCHUYLKILL COUNTY, PENNSYLVANIA IDA Resource Recovery RB (Gilberton Power Project) Series 1985 1.25%, 07/07/02 495 495 TEMPLE UNIVERSITY OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION, PENNSYLVANIA University Funding Obligation RB 1.92%, 05/06/03 31,500 31,783 +@ WASHINGTON COUNTY, PENNSYLVANIA AUTHORITY Lease RB (Girard Estate Refunding Project) Series 1999 1.35%, 07/07/02 37,960 37,960 Municipal Facilities Lease RB Series 1995B-1 1.30%, 07/07/02 8,100 8,100 ------- 775,316
See the Financial Notes, which are integral to this information. 36
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) PUERTO RICO 0.1% GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO TECP 1.35%, 09/20/02 6,775 6,775 +@ PUERTO RICO COMMONWEALTH TOBP (PA-652) 1.13%, 07/07/02 6,000 6,000 +@ PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY Highway RB Series 1998A 1.10%, 07/07/02 200 200 Revenue TOBP (PA-605) 1.13%, 07/07/02 1,210 1,210 ------- 14,185 RHODE ISLAND 0.7% +@ RHODE ISLAND HOUSING & MORTGAGE FINANCE CORP. TOB Series 1999E 1.38%, 07/07/02 19,020 19,020 +@ RHODE ISLAND STATE INDUSTRIAL FACILITIES CORP. IDRB (Greystone of Lincoln Project) 1.50%, 07/07/02 2,400 2,400 + RHODE ISLAND STATE STUDENT LOAN AUTHORITY @ Higher Education Loan RB Series 1995-1 1.35%, 07/07/02 12,300 12,300 @ Higher Education Loan RB Series 1996-2 1.35%, 07/07/02 10,000 10,000 @ Higher Education Loan RB Series 1996-3 1.35%, 07/07/02 20,400 20,400 RB 1.80%, 06/01/03 19,000 19,000 ------- 83,120 SOUTH CAROLINA 0.7% +@ BERKELEY COUNTY, SOUTH CAROLINA SCHOOL DISTRICT TOB Series 32A 1.37%, 07/07/02 7,575 7,575 CHARLESTON, SOUTH CAROLINA SCHOOL DISTRICT Refunding GO Series 2001B 1.88%, 02/01/03 11,280 11,480 +@ GREENVILLE, SOUTH CAROLINA COUNTY & CITY IDRB (Stevens Aviation Technology Services Project) 1.40%, 07/07/02 3,500 3,500 +@ SOUTH CAROLINA ECONOMIC DEVELOPMENT AUTHORITY Hospital Facility RB (Sanders Brothers Construction Project) 1.40%, 07/07/02 1,400 1,400 +@ SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTHORITY IDRB (Electric City Printing Project) 1.40%, 07/07/02 2,200 2,200 RB (Thomas & Betts Corp. Project) 1.40%, 07/07/02 3,250 3,250 +@ SOUTH CAROLINA STATE HOUSING FINANCE & DEVELOPMENT AUTHORITY M/F Housing RB (Ashley Apartments Project) Series 1999 1.35%, 07/07/02 4,300 4,300 M/F Rental Housing RB (Peidmont) Series 2000B-1 1.35%, 07/07/02 5,755 5,755 M/F Rental Housing RB (Spartanburg) Series 2000C-1 1.35%, 07/07/02 1,960 1,960 M/F Rental Housing Revenue Refunding Bond (Fairway Project) Series 2001A 1.30%, 07/07/02 7,735 7,735 +@ SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE RB TOB Series 1999A 1.33%, 07/07/02 22,610 22,610 +@ SPARTANBURG COUNTY, SOUTH CAROLINA IDA RB (Bemis, Inc.) 1.30%, 07/07/02 4,750 4,750 ------- 76,515 SOUTH DAKOTA 0.5% +@ SOUTH DAKOTA HDA Homeownership Mortgage RB Series 2001F 1.40%, 07/07/02 20,000 20,000
See the Financial Notes, which are integral to this information. 37 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) M/F Housing RB (Harmon Apartments Project) 1.40%, 07/07/02 6,500 6,500 +@ SOUTH DAKOTA STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY RB (McKenna Hospital) Series 1994 1.35%, 07/07/02 27,535 27,535 ------- 54,035 TENNESSEE 2.2% +@ BRISTOL, TENNESSEE HEALTH & EDUCATIONAL FACILITIES BOARD RB (Kings College Project) 1.25%, 07/07/02 7,650 7,650 +@ CHATTANOOGA, TENNESSEE HEALTH EDUCATION & HOUSING FACILITY BOARD RB (Baylor School Project) 1.25%, 07/07/02 2,035 2,035 +@ FRANKLIN COUNTY, TENNESSEE IDRB (Hi-Tech Project) Series 1997 1.40%, 07/07/02 5,200 5,200 +@ GRUNDY COUNTY, TENNESSEE IDB Limited Obligation RB (Toyo Seat USA Corp. Project) 1.55%, 07/07/02 4,500 4,500 +@ HENDERSONVILLE, TENNESSEE IDB Industrial Development & Improvement Revenue Refunding Bond (Betty Machinery Co. Project) 1.35%, 07/07/02 5,500 5,500 +@ HUNTINGDON, TENNESSEE IDB IDRB (Associated Rubber Co. Project) Series 1999 1.35%, 07/07/02 2,500 2,500 +@ JACKSON COUNTY, TENNESSEE Solid Waste Facilities IDRB (Ameristeel Corp. Project) 1.35%, 07/07/02 3,800 3,800 +@ MCMINN COUNTY, TENNESSEE IDB Solid Waste Disposal RB (Bowater, Inc. Project) 1.35%, 07/07/02 13,500 13,500 + MEMPHIS-SHELBY COUNTY, TENNESSEE AIRPORT AUTHORITY Airport Revenue Refunding Bond Series 1997A 1.75%, 02/15/03 2,405 2,460 METROPOLITAN GOVERNMENT NASHVILLE & DAVIDSON COUNTY, TENNESSEE, HEALTH & EDUCATIONAL FACILITIES BOARD RB (Ascension Health Credit) Series B-1 1.60%, 07/28/03 20,000 20,000 +@ METROPOLITAN NASHVILLE & DAVIDSON COUNTY, TENNESSEE IDB IDRB (Bind Technologies, Inc.) 1.35%, 07/07/02 3,350 3,350 M/F Housing IDRB (Arbor Crest) Series 1985B 1.25%, 07/07/02 12,550 12,550 M/F Housing IDRB (Arbor Knoll) Series 1985A 1.25%, 07/07/02 1,000 1,000 +@ SEVIER COUNTY, TENNESSEE PUBLIC BUILDING AUTHORITY Local Government Public Improvement Bond Series 1995C1 1.25%, 07/07/02 4,815 4,815 Local Government Public Improvement Bond Series 1995E3 1.25%, 07/07/02 1,345 1,345 Local Government Public Improvement Bond Series 1996D1 1.25%, 07/07/02 2,245 2,245 Local Government Public Improvement Bond Series 1996E4 1.25%, 07/07/02 2,685 2,685 Local Government Public Improvement Bond Series 1996F1 1.25%, 07/07/02 9,000 9,000 Local Government Public Improvement Bond Series 1996F2 1.25%, 07/07/02 6,945 6,945 Local Government Public Improvement Bond Series 1996G 1.25%, 07/07/02 5,760 5,760 Local Government Public Improvement Bond Series 1997I-A1 1.25%, 07/07/02 10,000 10,000 Local Government Public Improvement Bond Series II-C 1.25%, 07/07/02 900 900
See the Financial Notes, which are integral to this information. 38
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) Local Government Public Improvement Bond Series III-C1 1.25%, 07/07/02 9,330 9,330 SHELBY COUNTY, TENNESSEE HEALTH EDUCATION & HOUSING BOARD RB TECP (Baptist Memorial Hospital Project) 1.35%, 07/08/02 29,000 29,000 +@ SHELBY COUNTY, TENNESSEE HEALTH, EDUCATION & HOUSING FACILITIES BOARD Educational Facilities RB (Rhodes College) 1.25%, 07/07/02 9,900 9,900 M/F Housing RB Series 1997A 1.40%, 07/07/02 5,000 5,000 +@ SUMNER COUNTY, TENNESSEE HEALTH, EDUCATION & HOUSING FACILITIES BOARD RB (Hospital Alliance Pooled Program) Series 1999A 1.38%, 07/07/02 2,900 2,900 +@ TENNESSEE HDA Mortgage Finance TOB Series 1997K 1.38%, 07/07/02 2,740 2,740 RB TOB Series 2001H 1.36%, 07/07/02 7,260 7,260 +@ TENNESSEE VOLUNTEER STATE STUDENT LOAN FUNDING CORP. RB Series 1987A 1.30%, 07/07/02 15,000 15,000 RB Series 1987A-2 1.30%, 07/07/02 3,100 3,100 RB Series 1997A-3 1.30%, 07/07/02 36,800 36,800 ------- 248,770 TEXAS 10.2% +@ AMARILLO, TEXAS HEALTH FACILITIES CORP. Hospital RB (High Plains Baptist Hospital) Series 1985 1.45%, 07/07/02 3,000 3,000 Revenue Refunding Bond 1.40%, 07/07/02 3,155 3,155 +@ AUSTIN, TEXAS PUBLIC IMPROVEMENT TOB 1.33%, 07/07/02 6,000 6,000 +@ AUSTIN, TEXAS WATER & WASTEWATER SYSTEMS RB TOB Series A63 1.37%, 07/07/02 6,425 6,425 +@ BEXAR COUNTY, TEXAS HEALTH FACILITIES DEVELOPMENT CORP. RB (Chandler Memorial Home Project) Series 1995 1.32%, 07/07/02 4,175 4,175 +@ BROWNSVILLE COUNTY, TEXAS INDUSTRIAL DEVELOPMENT CORP. Revenue Refunding Bond (Rich Seapak Corp. Project) 1.35%, 07/07/02 3,750 3,750 +@ CALHOUN COUNTY, TEXAS NAVIGATION DISTRICT Solid Waste Disposal RB (Formosa Plastics Corp. Project) 1.35%, 07/07/02 14,500 14,500 +@ CAPITAL INDUSTRIAL DEVELOPMENT CORP., TEXAS Solid Waste Disposal RB (Texas Disposal System, Inc. Project) 1.35%, 07/07/02 4,900 4,900 +@ COLLIN COUNTY, TEXAS HFA M/F Housing RB (Huntington Apartments Project) 1.38%, 07/07/02 6,150 6,150 +@ DALLAS FORT WORTH, TEXAS INTERNATIONAL AIRPORT RB TOBP (PA-678) 1.40%, 07/07/02 7,045 7,045 + DALLAS, TEXAS WATER WORKS & SEWER SYSTEM TECP 1.35%, 07/10/02 5,000 5,000 1.65%, 07/10/02 15,122 15,122 +@ DENTON, TEXAS UTILITY SYSTEMS RB TOB Series 369 1.31%, 07/07/02 5,230 5,230
See the Financial Notes, which are integral to this information. 39 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ EAGLE, TEXAS TEXAS A&M BOARD OF REGENTS PERMANENT UNIVERSITY FUND TOB 1.33%, 07/07/02 28,445 28,445 +@ EL PASO, TEXAS Water & Sewer RB TOB Series 1999 1.38%, 07/07/02 12,415 12,415 +@ EULESS, TEXAS IDA RB (Ferguson Enterprises, Inc. Project) 1.30%, 07/07/02 4,950 4,950 +@ GRAND PRAIRIE, TEXAS IDA IDRB (NTA Leasing Co. Project) Series 1994 1.40%, 07/07/02 1,625 1,625 = GRAPEVINE COLLEYVILLE INDEPENDENT SCHOOL DISTRICT, TEXAS TRAN 1.63%, 06/30/03 + GRAPEVINE, TEXAS INDUSTRIAL DEVELOPMENT CORP. Airport RB (Singer County Project) 2.00%, 04/01/03 18,975 18,975 + GREATER EAST TEXAS HIGHER EDUCATION AUTHORITY @ Student Loan RB Series 1992A 1.27%, 07/07/02 7,500 7,500 Student Loan RB Series 1992B @ 1.32%, 07/07/02 30,200 30,200 2.75%, 07/01/02 14,000 14,000 @ Student Loan RB Series 1993A 1.32%, 07/07/02 48,150 48,150 @ Student Loan RB Series 1993B 1 1.32%, 07/07/02 32,000 32,000 Student Loan RB Series 1995B 2.75%, 07/01/02 10,000 10,000 + GREATER EAST TEXAS STUDENT LOAN CORP. Student Loan RB Series 1996A 1.32%, 07/07/02 56,000 56,000 +@ GUADALUPE BLANCO RIVER AUTHORITY, TEXAS Pollution Control Revenue Refunding Bond (Central Power & Light Co. Project) 1.80%, 07/01/02 2,000 2,000 +@ GULF COAST, TEXAS IDA RB (Gruma Corp. Project) 1.35%, 07/07/02 6,440 6,440 +@ GULF COAST, TEXAS WASTE DISPOSAL AUTHORITY Pollution Control Revenue Refunding Bond (Amoco Oil Co. Project) 1.75%, 07/01/02 1,500 1,500 HARRIS COUNTY, TEXAS TAN 1.94%, 02/28/03 40,000 40,342 + HARRIS COUNTY, TEXAS FLOOD CONTROL DISTRICT TECP 1.55%, 09/11/02 1,700 1,700 1.75%, 09/11/02 1,010 10,100 1.40%, 10/07/02 18,100 18,100 +@ HARRIS COUNTY, TEXAS HEALTH FACILITY DEVELOPMENT CORP. TOB 1.33%, 07/07/02 14,850 14,850 +@ HARRIS COUNTY, TEXAS HOUSING FINANCE CORP. M/F Housing RB (Dominion Square Apartments Project) 1.38%, 07/07/02 3,245 3,245 +@ HARRIS COUNTY, TEXAS HOUSTON SPORTS AUTHORITY Special Jr. Lien RB (Rodeo Project) Series 2001C 1.25%, 07/07/02 2,000 2,000 + HARRIS COUNTY, TEXAS TOLL ROAD Prerefunded RB Series 1992A 1.68%, 08/15/02 3,005 3,083 + HOUSTON, TEXAS Airport System RB Series 1998B 1.78%, 07/01/03 2,900 2,992 +@ HOUSTON, TEXAS PUBLIC IMPROVEMENT Revenue Refunding Bond TOB Series 1998A 1.33%, 07/07/02 21,655 21,655 +@ HOUSTON, TEXAS WATER & SEWER SYSTEM RB TOB Series 2202F 1.31%, 07/07/02 6,530 6,530
See the Financial Notes, which are integral to this information. 40
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ KATY, TEXAS INDEPENDENT SCHOOL DISTRICT Unlimited Tax School Building TOB Series 2000A 1.33%, 07/07/02 10,145 10,145 +@ LAVACA-NAVIDAD RIVER AUTHORITY, TEXAS WATER SUPPLY SYSTEM CONTRACT RB (Formosa Plastics Corp. Project) 1.40%, 07/07/02 13,600 13,600 +@ LOWER COLORADO RIVER AUTHORITY, TEXAS Revenue Refunding Bond TOB Series 1999A 1.33%, 07/07/02 10,770 10,770 +@ LUBBOCK, TEXAS EDUCATIONAL FACILITIES AUTHORITY RB (Lubbock Christian University Project) 1.30%, 07/07/02 6,400 6,400 +@ MANSFIELD, TEXAS INDUSTRIAL DEVELOPMENT CORP. RB (Southern Champion Tray Project) Series 1999 1.35%, 07/07/02 2,800 2,800 +@ MATAGORDA COUNTY, TEXAS NAVIGATION DISTRICT NO. 1 RB Merlots TOB Series 2001A44 1.42%, 07/07/02 19,385 19,385 +@ MONTGOMERY COUNTY, TEXAS INDUSTRIAL DEVELOPMENT CORP. IDRB (Houston Area Research Center Project) 1.40%, 07/07/02 6,600 6,600 +@ NORTH TEXAS HIGHER EDUCATION AUTHORITY Income Tax Student Loan RB Series 1996C 1.30%, 07/07/02 5,600 5,600 Income Tax Student Loan RB Series 2000A 1.30%, 07/07/02 43,000 43,000 Income Tax Student Loan RB Series 2001A 1.30%, 07/07/02 13,405 13,405 Income Tax Student Loan Revenue Refunding Bond 1.30%, 07/07/02 40,700 40,700 Income Tax Student Loan Revenue Refunding Bond (Texas Student Loan Project) 1.30%, 07/07/02 9,000 9,000 Income Tax Student Loan Revenue Refunding Bond Series 1987A 1.33%, 07/07/02 87,750 87,750 Income Tax Student Loan Revenue Refunding Bond Series 1996A 1.30%, 07/07/02 8,600 8,600 Income Tax Student Loan Revenue Refunding Bond Series 1996B 1.30%, 07/07/02 4,000 4,000 Income Tax Student Loan Revenue Refunding Bond Series 1996D 1.30%, 07/07/02 4,000 4,000 +@ PANHANDLE PLAINS, TEXAS HIGHER EDUCATION AUTHORITY Student Loan RB Series 1992A 1.30%, 07/07/02 15,500 15,500 Student Loan RB Series 1992A1 1.30%, 07/07/02 2,400 2,400 Student Loan RB Series 1993A 1.30%, 07/07/02 13,700 13,700 Student Loan RB Series 1995A 1.30%, 07/07/02 10,600 10,600 Student Loan RB Series 1997X 1.30%, 07/07/02 19,300 19,300 +@ ROBERTSON COUNTY, TEXAS INDUSTRIAL DEVELOPMENT CORP. IDRB (Sanderson Farms Project) Series 1995 1.45%, 07/07/02 3,700 3,700 +@ SAN ANTONIO, TEXAS IDA IDRB (Gruma Corp. Project) 1.35%, 07/07/02 4,095 4,095 +@ SOUTHEAST TEXAS HOUSING FINANCE CORP. TOBP (PT-165) 1.37%, 07/07/02 10,825 10,825 TOBP (PT-193) 1.37%, 07/07/02 11,010 11,010 +@ TEXAS CAPITAL HEALTH FACILITIES DEVELOPMENT CORP. RB (Island On Lake Travis, Ltd. Project) 1.30%, 07/07/02 8,500 8,500 +@ TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS Residential Meeting RB TOB Series 1999C 1.38%, 07/07/02 14,950 14,950 +@ TEXAS MUNICIPAL GAS CORP. Gas Reserve Senior Lien RB 1.25%, 07/07/02 15,940 15,940
See the Financial Notes, which are integral to this information. 41 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) TEXAS STATE +@ Revenue Refunding Bond (Veterans Housing Assistance Fund) Series 1995 1.20%, 07/07/02 9,985 9,985 TRAN Series 2001A-L32 2.50%, 08/29/02 152,000 152,299 TEXAS STATE COLLEGE STUDENT LOAN GO 2.58%, 08/01/02 5,720 5,733 +@ TEXAS STATE DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS M/F Housing RB (Creek Point Apartments Project) 1.35%, 07/07/02 7,200 7,200 +@ TEXAS STATE PUBLIC FINANCE AUTHORITY GO Refunding TOBP Series 290 1.31%, 07/07/02 8,660 8,660 +@ TRINITY RIVER AUTHORITY, TEXAS Solid Waste Disposal RB (Community Waste Project) 1.40%, 07/07/02 6,605 6,605 +@ UNIVERSITY OF TEXAS Revenue TOB Series 2002II-R-173 1.33%, 07/07/02 5,000 5,000 UNIVERSITY OF TEXAS BOARD OF REGENTS TECP (Permanent University Fund) 1.40%, 10/15/02 16,800 16,800 +@ WACO, TEXAS EDUCATIONAL FINANCE CORP. RB (Baylor University) Series 2002A 1.25%, 07/07/02 10,000 10,000 --------- 1,135,585 UTAH 2.8% +@ INTERMOUNTAIN POWER AGENCY, UTAH Power Supply TOB Series 1997B 1.31%, 07/07/02 16,495 16,495 Power Supply TOB Series 409 1.31%, 07/07/02 15,330 15,330 +@ SALT LAKE CITY, UTAH RB (Rowland Hall St. Marks Project) 1.25%, 07/07/02 9,515 9,515 +@ SALT LAKE CITY, UTAH AIRPORT RB 1.35%, 07/07/02 10,000 10,000 +@ SALT LAKE CITY, UTAH HOSPITAL RB TOB (IHC Health Services) 1.33%, 07/07/02 26,730 26,730 +@ SALT LAKE CITY, UTAH SPECIAL FACILITIES Revenue Refunding Bond (Delta Airlines, Inc. Project) 1.40%, 07/07/02 23,510 23,510 +@ UTAH STATE TOBP (PT-429) 1.30%, 07/07/02 31,085 31,085 +@ UTAH STATE BOARD OF REGENTS Student Loan RB Series 1993A 1.25%, 07/07/02 35,000 35,000 Student Loan RB Series 1995L 1.25%, 07/07/02 77,500 77,500 Student Loan RB Series 1997R 1.25%, 07/07/02 26,355 26,355 +@ UTAH STATE BUILDING OWNERSHIP AUTHORITY Lease Revenue Refunding Bond TOB Series 1998C 1.33%, 07/07/02 9,695 9,695 +@ UTAH STATE FACILITIES SYSTEM Revenue Refunding Bond TOB Series 1998A 1.33%, 07/07/02 30,060 30,060 +@ WOODS CROSS CITY, UTAH M/F Housing RB (Springwood Apartments Project) Series 2001-A 1.25%, 07/07/02 3,605 3,605 ------- 314,880 VERMONT 0.2% +@ VERMONT ECONOMIC DEVELOPMENT AUTHORITY IDRB (AGRI Mark, Inc. Project) Series 1999A 1.45%, 07/07/02 17,000 17,000 IDRB (AGRI Mark, Inc. Project) Series 1999B 1.45%, 07/07/02 1,000 1,000
See the Financial Notes, which are integral to this information. 42
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ VERMONT STATE EDUCATION & HEALTH BUILDINGS FINANCE AGENCY RB (Hospital Fletcher Allen Medical Center) Series 2000B 1.25%, 07/07/02 5,000 5,000 ------- 23,000 VIRGINIA 0.8% +@ CHESTERFIELD COUNTY, VIRGINIA IDA Solid Waste Disposal Facility RB (Tidewater Fibre Corp. Project) 1.35%, 07/07/02 7,500 7,500 +@ KING GEORGE COUNTY, VIRGINIA IDA Solid Waste Disposal Facility RB (Garnet of Virginia Project) Series 1996 1.35%, 07/07/02 3,700 3,700 +@ LOUDOUN COUNTY, VIRGINIA IDRB (Electronic Instrumentation Project) 1.40%, 07/07/02 2,260 2,260 + MECKLENBURG COUNTY, VIRGINIA IDA Exempt Facility Revenue Refunding Bond (UAE, LP Project) 1.40%, 09/26/02 7,500 7,500 +@ METROPOLITAN WASHINGTON, D.C. AIRPORTS AUTHORITY, VIRGINIA Putters Revenue TOB, Series 240 1.36%, 07/07/02 6,900 6,900 +@ MONTGOMERY COUNTY, VIRGINIA IDA RB (Virginia Tech Foundation Project) 1.25%, 07/07/02 4,820 4,820 RB (Virginia Tech Foundation) Series 2001A 1.25%, 07/07/02 9,700 9,700 RB (Virginia Tech Foundation) Series 2001B 1.38%, 07/07/02 1,840 1,840 +@ NORFOLK, VIRGINIA PACKAGE SYSTEM Revenue Refunding Bond TOB 1.33%, 07/07/02 9,450 9,450 +@ PORTSMOUTH, VIRGINIA REDEVELOPMENT & HOUSING AUTHORITY M/F Housing RB (Churchland North Apartments Project) 1.35%, 07/07/02 6,855 6,855 +@ RICHMOND, VIRGINIA IDA Educational Facilities RB 1.25%, 07/07/02 10,000 10,000 +@ STAUNTON, VIRGINIA IDRB ( Diebold, Inc. - Staunton Project) Series 1997 1.35%, 07/07/02 2,835 2,835 +@ VIRGINIA BEACH, VIRGINIA DEVELOPMENT AUTHORITY M/F Housing RB (Silver Hill at Thalia, LLC Project) Series 1999 1.35%, 07/07/02 4,350 4,350 VIRGINIA STATE HDA Commonwealth Mortgage RB Series 2001I-1 1.90%, 07/01/02 6,825 6,825 +@ Commonwealth Mortgage RB TOB Series 2000CC 1.42%, 07/07/02 280 280 o Commonwealth Mortgage RB TOBP (PA-818) Series 2001R 1.50%, 08/15/02 6,395 6,395 ------- 91,210 WASHINGTON 4.3% +@ ALGONA, WASHINGTON ECONOMIC DEVELOPMENT CORP. IDRB (Aitchison Family Partnership Project) 1.35%, 07/07/02 2,530 2,530 +@ DOUGLAS COUNTY, WASHINGTON ECONOMIC DEVELOPMENT CORP. RB (Executive Flight Program) 1.35%, 07/07/02 6,500 6,500 +@ ENERGY NORTHWEST WASHINGTON Electric Revenue TOBP (PT-615) 1.30%, 07/07/02 16,230 16,230 +@ EVERETT, WASHINGTON IDA RB (Partners Trust/Synsor Project) Series 1996 1.40%, 07/07/02 4,100 4,100 +@ EVERETT, WASHINGTON INDUSTRIAL DEVELOPMENT CORP. Exempt Facilities RB (Kimberly Clark Project) 1.41%, 07/07/02 3,200 3,200 KING COUNTY, WASHINGTON BAN 2.16%, 10/01/02 40,000 40,107 +@ TOB Series 215 1.31%, 07/07/02 14,995 14,995
See the Financial Notes, which are integral to this information. 43 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ OLYMPIA, WASHINGTON ECOMOMIC DEVELOPMENT AUTHORITY Solid Waste Disposal RB (Lemay Enterprises Project) 1.40%, 07/07/02 8,160 8,160 +@ PIERCE COUNTY, WASHINGTON ECONOMIC DEVELOPMENT CORP. RB (Flex-A-Lite Consolidated Project) 1.40%, 07/07/02 2,700 2,700 RB (K & M Holdings II Project) Series 1997 1.75%, 07/07/02 1,500 1,500 RB (McFarland Cascade Project) 1.50%, 07/07/02 2,000 2,000 RB (Solid Waste Lemay Enterprises Project) 1.40%, 07/07/02 3,500 3,500 +@ PIERCE COUNTY, WASHINGTON SCHOOL DISTRICT NO. 10 GO TOB 1.33%, 07/07/02 43,655 43,655 +@ PORT CENTRALIA, WASHINGTON IDB Solid Waste Disposal RB (Lemay Enterprises Project) 1.40%, 07/07/02 2,200 2,200 +@ PORT MOSES LAKE, WASHINGTON PUBLIC CORP. RB (Moses Lake Industrial Project) Series 1995 1.40%, 07/07/02 3,000 3,000 RB (National Frozen Foods Corp.) 1.30%, 07/07/02 4,600 4,600 +@ PORT OF SEATTLE, WASHINGTON Special Facilities RB TOB Series 1999J 1.42%, 07/07/02 49,795 49,795 TOBP (PA-759R) 1.37%, 07/07/02 5,100 5,100 +@ SEATTLE, WASHINGTON HDA RB (Capitol Hill Housing Improvement & HRG Project) 1.40%, 07/07/02 3,635 3,635 RB (Casa Pacifica Apartments Project) Series 1997 1.40%, 07/07/02 3,050 3,050 +@ SPOKANE COUNTY, WASHINGTON INDUSTRIAL DEVELOPMENT CORP. RB (Metal Sales Manufacturing Corp. Project) 1.53%, 07/07/02 1,575 1,575 +@ TACOMA, WASHINGTON HOUSING AUTHORITY RB (Crown Assisted Living Project) 1.35%, 07/07/02 3,390 3,390 +@ WASHINGTON HEALTH CARE FACILITIES AUTHORITY RB (Yakima Valley Farm Workers Clinic) Series 1997 1.30%, 07/07/02 3,400 3,400 WASHINGTON STATE +@ GO TOB 1.33%, 07/07/02 13,380 13,380 +@ GO TOB Series B 1.33%, 07/07/02 30,485 30,485 Refunding GO Series 2001A 2.61%, 09/01/02 28,045 28,133 +@ Various Purpose GO TOB Series 1998C 1.33%, 07/07/02 12,150 12,150 +@ WASHINGTON STATE ECONOMIC DEVELOPMENT FINANCE AUTHORITY ACES RB (Tank Project) Series 1998B 1.50%, 07/07/02 1,330 1,330 IDRB (Tonkin Building) Series 1997A 1.50%, 07/07/02 1,000 1,000 RB (Hunter Douglas Project) Series 1997A 1.35%, 07/07/02 3,500 3,500 RB (Skills, Inc Project) 1.35%, 07/07/02 3,120 3,120 Solid Waste Disposal RB (Waste Management Project) Series 2000H 1.40%, 07/07/02 6,825 6,825 Solid Waste Disposal RB (Waste Management Project) Series 2000I 1.40%, 07/07/02 5,415 5,415 Solid Waste Disposal RB (Waste Management Project) Series 2000L 1.40%, 07/07/02 7,235 7,235 Solid Waste Disposal RB (Waste Management Project) Series 2001C 1.40%, 07/07/02 5,500 5,500 RB (Hamilton Materials Project) 1.35%, 07/07/02 3,700 3,700 +@ WASHINGTON STATE ENERGY Northwest Eagle TOB 1.33%, 07/07/02 29,700 29,700 +@ WASHINGTON STATE HFA M/F Housing Mortgage RB (Brittany Park Phase 3 Project) 1.40%, 07/07/02 3,480 3,480
See the Financial Notes, which are integral to this information. 44
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) M/F Housing Mortgage RB (Canyon Lake II) Series 1993A 1.55%, 07/07/02 4,505 4,505 M/F Housing Mortgage RB (Lake Washington Apartments Project) Series 1996 1.40%, 07/07/02 8,450 8,450 M/F Housing Mortgage RB (Meridian Court Apartments) Series 1996 1.35%, 07/07/02 6,700 6,700 M/F Housing Mortgage RB (Merrill Gardens Project) Series 1997A 1.35%, 07/07/02 3,725 3,725 M/F Housing Mortgage RB (Rosecreek Apartments Project) 1.40%, 07/07/02 3,570 3,570 M/F Housing Mortgage RB (Woodrose Apartment Project) Series 1999A 1.35%, 07/07/02 6,750 6,750 +@ WASHINGTON STATE HOUSING FINANCE COMMISSION M/F Housing RB (Carlyle Care Center Project) Series 2000A 1.95%, 07/01/02 3,055 3,055 M/F Housing RB (Lakewood Meadows Apartments Project) Series 2000A 1.45%, 07/07/02 3,140 3,140 Non-Profit Housing RB (Emerald Heights Project) Series 1990 1.85%, 07/01/02 1,800 1,800 TOBP (PT-636) 1.40%, 07/07/02 17,975 17,975 + WASHINGTON STATE PUBLIC POWER SUPPLY SYSTEM RB (Nuclear Project No. 2) Series 1992A 1.58%, 07/01/02 4,330 4,416 1.76%, 07/01/02 5,880 5,998 Revenue Refunding Bond (Nuclear Project No. 1) Series 1992A 2.68%, 07/01/02 5,300 5,406 +@ YAKAMA INDIAN NATION, WASHINGTON CONFEDERATED TRIBES & BANDS RB (Yakama Forests Products Project) 1.40%, 07/07/02 4,300 4,300 +@ YAKIMA COUNTY, WASHINGTON PUBLIC CORP. IDRB (Cowiche Growers Project) 1.35%, 07/07/02 3,200 3,200 RB (Hi-Country Foods Project) 1.40%, 07/07/02 6,300 6,300 RB (Michaelson Packaging Project) 1.40%, 07/07/02 2,600 2,600 RB (Printing Press Project) 1.40%, 07/07/02 1,500 1,500 ------- 477,265 WEST VIRGINIA 0.6% +@ FAYETTE COUNTY, WEST VIRGINA SOLID WASTE DISPOSAL FACILITIES RB (Georgia-Pacific Corp. Project) Series 1995 1.35%, 07/07/02 11,100 11,100 +@ MARION COUNTY, WEST VIRGINIA SOLID WASTE DISPOSAL FACILITIES RB (Grant Town Project) Series 1990B 1.30%, 07/07/02 23,025 23,025 RB (Grant Town Project) Series 1990C 1.30%, 07/07/02 19,900 19,900 RB (Grant Town Project) Series 1990D 1.30%, 07/07/02 3,800 3,800 +@ WEST VIRGINIA SCHOOL BUILDING AUTHORITY RB TOBP (PA-914) 1.30%, 07/07/02 5,400 5,400 +@ WEST VIRGINIA STATE HOSPITAL FINANCE AUTHORITY RB (St. Joseph's Hospital Project) Series 1987 1.32%, 07/07/02 1,600 1,600 ------- 64,825 WISCONSIN 1.2% +@ CARLTON, WISCONSIN Pollution Control RB (Wisconsin Power & Light Co. Project) 1.45%, 07/07/02 5,800 5,800 +@ CHILTON, WISCONSIN IDRB (Kaytee Products, Inc. Project) Series 1995 1.55%, 07/07/02 715 715
See the Financial Notes, which are integral to this information. 45 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) +@ COLBURN, WISCONSIN IDRB (Heartland Farms Project) Series 1994 1.55%, 07/07/02 5,900 5,900 +@ GRAFTON, WISCONSIN IDRB (Milwaukee Sign Co. Project) 1.55%, 07/07/02 690 690 +@ KENOSHA, WISCONSIN IDRB (Asyst Tech, LLC Project) 1.35%, 07/07/02 5,000 5,000 +@ LAC DU FLAMBEAU, BAND OF LAKE SUPERIOR, WISCONSIN CHIPPEWA INDIANS Special Obligation Bond (Simpson Electric Co. Project) Series 1985 1.40%, 07/07/02 3,400 3,400 +@ RAPIDS CITY, WISCONSIN IDRB (Theile Kaolin of Wisconsin, Inc. Project) Series 1998 1.35%, 07/07/02 4,500 4,500 +@ RHINELANDER, WISCONSIN IDRB (Lake Shore, Inc. Project) 1.55%, 07/07/02 3,820 3,820 +@ SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT Sales Tax RB TOB Series 2000Y 1.37%, 07/07/02 5,000 5,000 +@ WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY Home Ownership RB Series 2002C 1.20%, 07/07/02 3,000 3,000 Home Ownership RB Series 2002D 1.30%, 07/07/02 3,000 3,000 Home Ownership RB TOB Series 1999R 1.35%, 07/07/02 18,345 18,345 Home Ownership RB TOB Series 1999S 1.40%, 07/07/02 13,240 13,240 Home Ownership TOBP (PT-194) 1.37%, 07/07/02 12,755 12,755 Housing RB TOB Series 650 1.31%, 07/07/02 16,380 16,380 RB (Ultratec, Inc. Project ) Series 7 1.55%, 07/07/02 2,820 2,820 + WISCONSIN STATE GO Series 2002C 1.65%, 05/01/03 4,985 5,040 +@ WISCONSIN STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY RB (Gundersen Lutheran) Series 2000A 1.90%, 07/01/02 2,500 2,500 RB (Gundersen Lutheran) Series 2000B 1.90%, 07/01/02 3,280 3,280 RB (Lutheran College) 1.35%, 07/07/02 7,000 7,000 RB (Sinai Samaritan) Series 1994A 1.30%, 07/07/02 15,138 15,138 ------- 137,323 WYOMING 0.7% = WYOMING STATE GENERAL FUND TRAN Series 2002A 1.58%, 06/27/03 30,000 30,268 +@ WYOMING COMMUNITY DEVELOPMENT AUTHORITY Housing RB TOBP (PT-533) 1.37%, 07/07/02 6,450 6,450 Housing RB TOB 1.37%, 07/07/02 10,260 10,260 +@ JACKSON COUNTY, WYOMING Pollution Control RB (Chevron Project) 1.75%, 07/01/02 9,700 9,700 +@ LINCOLN COUNTY, WYOMING Pollution Control RB (ExxonMobil Corp. Project) Series 1987A 1.75%, 07/01/02 9,400 9,400 Pollution Control RB (ExxonMobil Corp. Project) Series 1987B 1.75%, 07/07/02 4,000 4,000 +@ UNITA COUNTY, WYOMING Pollution Control RB (Chevron USA, Inc. Project) 1.75%, 07/01/02 8,000 8,000 ------- 78,078
END OF PORTFOLIO HOLDINGS. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 46 Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV. ASSETS --------------------------------------------------------------------- Investments, at market value $11,104,154 a Cash 1,244 Receivables: Fund shares sold 14,516 Interest 40,550 Investments sold 190,452 Prepaid expenses + 28 -------------- TOTAL ASSETS 11,350,944 LIABILITIES --------------------------------------------------------------------- Payables: Fund shares redeemed 29,631 Dividends to shareholders 3,727 Investments bought 504,076 Investment adviser and administrator fees 180 Transfer agent and shareholder service fees 314 Accrued expenses + 262 -------------- TOTAL LIABILITIES 538,190 NET ASSETS --------------------------------------------------------------------- TOTAL ASSETS 11,350,944 TOTAL LIABILITIES - 538,190 -------------- NET ASSETS $10,812,754 NET ASSETS BY SOURCE Capital received from investors 10,815,699 Net realized capital losses (2,945)
NET ASSETS BY SHARE CLASS
SHARES SHARE CLASS NET ASSETS / OUTSTANDING = NAV Sweep Shares $ 6,892,758 6,895,842 $1.00 Value Advantage Shares $ 3,919,996 3,920,124 $1.00
a Includes illiquid restricted securities worth $214,705, or 1.93% of the fund's investments. The amortized cost for the fund's securities was $11,104,154. During the reporting period, the fund had $1,706,224 in transactions with other SchwabFunds(R). FEDERAL TAX DATA COST BASIS OF PORTFOLIO $11,104,155 UNUSED CAPITAL LOSSES:
Expires 12/31 of: Loss amount: 2002 $ 268 2003 36 2004 465 2005 523 2007 775 2008 + 873 ------ $2,940
See the Financial Notes, which are integral to this information. 47 SCHWAB MUNICIPAL MONEY FUND -- FINANCIALS Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000. INVESTMENT INCOME --------------------------------------------------------------------- Interest $86,312 NET REALIZED LOSSES --------------------------------------------------------------------- Net realized losses on investments sold (4) EXPENSES --------------------------------------------------------------------- Investment adviser and administrator fees 19,002 a Transfer agent and shareholder service fees: Sweep Shares 15,853 b Value Advantage Shares 4,189 b Trustees' fees 26 c Custodian and portfolio accounting fees 409 Professional fees 34 Registration fees 558 Shareholder reports 329 Other expenses + 52 ---------- Total expenses 40,452 Expense reduction - 8,634 d ---------- NET EXPENSES 31,818 INCREASE IN NET ASSETS FROM OPERATIONS --------------------------------------------------------------------- TOTAL INVESTMENT INCOME 86,312 NET EXPENSES - 31,818 ---------- NET INVESTMENT INCOME 54,494 NET REALIZED LOSSES + (4) ---------- INCREASE IN NET ASSETS FROM OPERATIONS $54,490
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion,0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of average daily net assets as follows: TRANSFER AGENT SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ---------------------------------------------- Sweep Shares 0.25 Value Advantage Shares 0.05
SHAREHOLDER SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ---------------------------------------------- Sweep Shares 0.20 Value Advantage Shares 0.17
c For the fund's independent trustees only. d Includes $7,930 from the investment adviser (CSIM) and $704 from the transfer agent and shareholder service agent (Schwab). These reductions reflect a guarantee by CSIM and Schwab to limit the operating expenses of this fund through at least April 30, 2003, as follows:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ---------------------------------------------- Sweep Shares 0.66 Value Advantage Shares 0.45
This limit doesn't include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 48 Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02-6/30/02 are unaudited.
OPERATIONS --------------------------------------------------------------------------------- 1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $ 54,494 $ 231,943 Net realized gains or losses + (4) 1,167 ---------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS 54,490 233,110 DISTRIBUTIONS PAID --------------------------------------------------------------------------------- DIVIDENDS FROM NET INVESTMENT INCOME Sweep Shares 32,784 150,939 Value Advantage Shares + 21,710 81,004 ---------------------------------- TOTAL DIVIDENDS FROM NET INVESTMENT INCOME 54,494 231,943 TRANSACTIONS IN FUND SHARES a --------------------------------------------------------------------------------- SHARES SOLD Sweep Shares 12,283,116 24,826,248 Value Advantage Shares + 2,574,748 5,849,858 ---------------------------------- TOTAL SHARES SOLD 14,857,864 30,676,106 SHARES REINVESTED Sweep Shares 30,030 147,934 Value Advantage Shares + 18,841 74,863 ---------------------------------- TOTAL SHARES REINVESTED 48,871 222,797 SHARES REDEEMED Sweep Shares 12,685,555 24,489,922 Value Advantage Shares + 2,451,195 5,065,908 ---------------------------------- TOTAL SHARES REDEEMED 15,136,750 29,555,830 NET INCREASE OR DECREASE (230,015) 1,343,073 b NET ASSETS --------------------------------------------------------------------------------- Beginning of period 11,042,773 9,698,533 Total increase or decrease + (230,019) 1,344,240 c ---------------------------------- END OF PERIOD $ 10,812,754 $11,042,773
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents shares sold plus shares reinvested, minus shares redeemed. c Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 49 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND [PHOTO OF KEVIN SHAUGHNESSY] KEVIN SHAUGHNESSY, a portfolio manager, is responsible for the day-to-day management of the fund. Prior to joining the firm in 2000, he worked for more than ten years in fixed income portfolio management. This fund may be appropriate for California taxpayers, especially those in higher tax brackets who are seeking double tax-exempt income. TICKER SYMBOLS SWEEP SHARES SWCXX VALUE ADVANTAGE SHARES SWKXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND THAT IS EXEMPT FROM FEDERAL AND CALIFORNIA PERSONAL INCOME TAX. MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. Stronger-than-expected economic figures released in March caused an increase in rates. During this time, we added to our positions in fixed-rate securities, which offered higher yields. This allowed us to maintain a neutral to slightly longer maturity versus our peer group. The longer maturity helped the fund's performance when yields fell once again during the second quarter as the strength of the recovery came into question. CALIFORNIA'S ECONOMY APPEARS TO HAVE BEGUN A SLOW RECOVERY. Job growth and tourism have improved, while real estate and consumer spending have remained strong. The slow economy and the state's increased reliance on stock market-related income tax revenues caused the state to end fiscal 2002 (on June 30) with a $1.5 billion deficit, while also facing a projected $23.4 billion deficit for the current fiscal year. The governor's proposed budget would close the gap through a mix of ongoing and one-time measures. The revenue shortfalls, along with advances for purchases during the energy crisis, have reduced the state's liquidity, which in turn has lead to lower credit quality. However, due to the size and diversity of the state's economy and its ability to raise revenues or trim expenses, the state is a solid investment-grade credit, with general obligation credit ratings of A1/negative outlook, A+/negative outlook and AA/rating watch negative from Moody's, Standard & Poor's and Fitch, respectively. 50 PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results.
VALUE SWEEP ADVANTAGE SHARES SHARES --------------------------------------------------- Seven-Day Yield 0.78% 0.98% --------------------------------------------------- Seven-Day Effective Yield 0.78% 0.98% --------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.40% 1.76% ---------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH]
California Municipal Money Fund 31-Dec-01 44 31-Jan-02 41 28-Feb-02 36 31-Mar-02 32 30-Apr-02 25 31-May-02 21 30-Jun-02 65
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 96.4% California 2. 3.6% Puerto Rico
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, Sweep Shares' and Value Advantage Shares' seven-day yields would have been 0.61% and 0.84%, the seven-day effective yields would have been 0.61% and 0.84% and the seven-day taxable-equivalent effective yields would have been 1.10% and 1.51%, respectively. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum combined federal regular income and California state personal income tax rate of 44.31%. 51 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- SWEEP SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ----------------------------------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) ----------------------------------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 ----------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.00 4 0.02 0.03 0.02 0.03 0.03 ----------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.00) 4 (0.02) (0.03) (0.02) (0.03) (0.03) ----------------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 =================================================================================== Total return (%) 0.43 2 1.99 3.02 2.42 2.64 2.95 RATIOS/SUPPLEMENTAL DATA (%) ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.65 1 0.65 0.65 3 0.65 0.65 0.65 3 Expense reductions reflected in above ratio 0.17 1 0.17 0.18 0.20 0.24 0.26 Ratio of net investment income to average net assets 0.87 1 1.98 2.98 2.41 2.60 2.91 Net assets, end of period ($ x 1,000,000) 3,713 3,897 3,923 3,457 2,611 2,155
1 Annualized. 2 Not annualized. 3 Would have been 0.66% if certain non-routine expenses (proxy fees) had been included. 4 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 52
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- VALUE ADVANTAGE SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 --------------------------------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) --------------------------------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 -------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.01 0.02 0.03 0.03 0.03 0.03 -------------------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.01) (0.02) (0.03) (0.03) (0.03) (0.03) -------------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 ================================================================================ Total return (%) 0.53 2 2.19 3.22 2.62 2.84 3.15 RATIOS/SUPPLEMENTAL DATA (%) --------------------------------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.45 1 0.45 0.45 3 0.45 0.45 0.45 3 Expense reductions reflected in above ratio 0.14 1 0.16 0.17 0.20 0.25 0.27 Ratio of net investment income to average net assets 1.07 1 2.11 3.20 2.60 2.79 3.12 Net assets, end of period ($ x 1,000,000) 2,623 2,563 2,170 1,604 1,359 937
1 Annualized. 2 Not annualized. 3 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included. See the Financial Notes, which are integral to this information. 53 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security = Delayed-delivery security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $6,686,229 Cost: $6,686,229 ---------------------------------- 100.0% TOTAL INVESTMENTS Market Value: $6,686,229 Cost: $6,686,229
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) MUNICIPAL SECURITIES 100.0% OF INVESTMENTS --------------------------------------------------------------------- CALIFORNIA 96.4% +@ ABAG FINANCING AUTHORITY FOR NON-PROFIT CORPORATIONS, CALIFORNIA COP (Harker School Project) 1.20%, 07/07/02 4,900 4,900 COP (Lucile Salter Packard Project) 1.20%, 07/07/02 4,700 4,700 M/F Housing RB (Architect Building Project) 1.35%, 07/07/02 3,200 3,200 M/F Housing RB (Miramar Apartments) 1.20%, 07/07/02 30,000 30,000 M/F Housing RB (Mountain View Apartments) Series 1997A 1.35%, 07/07/02 3,215 3,215 RB (New De Young Museum Project) Series 2002B 1.15%, 07/07/02 10,000 10,000 RB (Public Policy Institute of California Project) Series 2002A 1.25%, 07/07/02 9,000 9,000 +@ ALAMEDA COUNTY, CALIFORNIA IDRB (Aitchison Family Project) Series 1993A 1.20%, 07/07/02 2,680 2,680 IDRB (JMS Family Partners) Series A 1.20%, 07/07/02 1,000 1,000 IDRB (Scientific Technology Project) Series 1994A 1.25%, 07/07/02 2,400 2,400 +@ ALAMEDA COUNTY, CALIFORNIA IDA RB (Malmberg Engineering, Inc. Project) 1.35%, 07/07/02 2,520 2,520 +@ ALISAL UNION SCHOOL DISTRICT, CALIFORNIA COP (Bridge Funding Project) Series A 1.10%, 07/07/02 10,505 10,505 +@ ANAHEIM, CALIFORNIA COP (Anaheim Memorial Hospital Association Project) 1.10%, 07/07/02 10,815 10,815 COP (Police Facility Financing Project) 1.10%, 07/07/02 2,500 2,500
See the Financial Notes, which are integral to this information. 54
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ ANAHEIM, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Casa Grande Apartments) Series 1997A 1.15%, 07/07/02 3,695 3,695 M/F Housing RB (Park Vista Apartments) 1.25%, 07/07/02 21,000 21,000 M/F Housing RB (Port Trinidad Apartments) Series 1997C 1.15%, 07/07/02 2,040 2,040 M/F Housing RB (Sage Park Project) Series A 1.20%, 07/07/02 5,500 5,500 +@ ANAHEIM, CALIFORNIA UNION HIGH SCHOOL DISTRICT COP 1.20%, 07/07/02 5,500 5,500 +@ BAY AREA, CALIFORNIA TOLL AUTHORITY Toll Bridge RB (San Francisco Bay Area Project) Series 2001C 1.10%, 07/07/02 29,000 29,000 Toll Bridge RB TOB Series 2001Q 1.18%, 07/07/02 10,125 10,125 +@ BIG BEAR LAKE, CALIFORNIA Water RB TOBP (PA-597) 1.20%, 07/07/02 8,445 8,445 +@ BURBANK, CALIFORNIA REDEVELOPMENT AGENCY M/F Housing RB 1.30%, 07/07/02 8,900 8,900 +@ CALIFORNIA ALTERNATIVE ENERGY SOURCE FINANCING AUTHORITY RB (GE Capital Corp. Arroyo Project) Series 1993B 1.15%, 07/07/02 12,860 12,860 RB (GE Capital Corp. Arroyo Project) Series A 1.20%, 07/07/02 25,330 25,330 = CALIFORNIA COMMUNITY COLLEGE FINANCING AUTHORITY TRAN Series A 1.68%, 06/30/03 35,000 35,453 +@ CALIFORNIA EASTERN WATER MUNICIPAL DISTRICT Water & Sewer RB COP Series 1993B 1.10%, 07/07/02 18,690 18,690 +@ CALIFORNIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY RB (Lion Raisin Project) 1.20%, 07/07/02 1,550 1,550 + CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY @ RB (Chapman University) 1.35%, 07/07/02 4,900 4,900 @ RB (San Francisco Conservatory) 1.10%, 07/07/02 2,890 2,890 RB (St Mary's College Project) Series B 1.15%, 07/05/02 8,150 8,150 @ RB (University of Judaism Project) Series A 1.30%, 07/07/02 5,500 5,500 @ RB (University of San Francisco) 1.35%, 07/07/02 20,000 20,000 @ RB TOB Series 413 1.15%, 07/07/02 8,995 8,995 +@ CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY RB (California Prebyterian Homes) Series 1998 1.18%, 07/07/02 30,500 30,500 RB (Catholic Health Care West) Series 1988B 1.15%, 07/07/02 9,900 9,900 RB (Catholic Health Care) Series A 1.15%, 07/07/02 10,300 10,300 RB (Children's Hospital Project) Series 1991 1.30%, 07/07/02 20,700 20,700 RB (Scripps Memorial Hospital) Series A 1.15%, 07/07/02 14,000 14,000 TOB Putters Series 181 1.28%, 07/07/02 9,995 9,995 + CALIFORNIA HFA @ Home Mortgage RB Series 1999J-1 1.22%, 07/07/02 7,885 7,885 @ Home Mortgage RB Series 1999J-2 1.22%, 07/07/02 18,385 18,385 @ Home Mortgage RB Series 1999L 1.85%, 07/01/02 3,570 3,570 @ Home Mortgage RB Series 2000G 1.20%, 07/07/02 6,100 6,100 @ Home Mortgage RB Series 2000N 1.22%, 07/07/02 10,000 10,000 @ Home Mortgage RB Series G 1.20%, 07/07/02 50,000 50,000
See the Financial Notes, which are integral to this information. 55 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Home Mortgage RB Series N 1.85%, 07/01/02 18,635 18,635 Home Mortgage RB Series P 2.67%, 08/01/02 7,335 7,335 @ M/F Housing RB Series 2001G 1.20%, 07/07/02 60,835 60,835 @ Revenue TOB Series 1997E 1.20%, 07/07/02 7,865 7,865 o Revenue TOB Series R 2.60%, 07/07/02 9,995 9,995 @ Revenue TOBP (PT-613) 1.30%, 07/07/02 94,995 94,995 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK +@ IDRB (American Derosa- Lamparts) 1.25%, 07/07/02 4,950 4,950 +@ IDRB (Fairmont Sign Co. Project) Series 2000A 1.45%, 07/07/02 4,250 4,250 +@ IDRB (Independent System Operation Corporation Project) Series A 1.40%, 07/07/02 13,600 13,600 +@ IDRB (Lafayette Textile Industries Project) 1.25%, 07/07/02 2,320 2,320 +@ IDRB (Nelson Name Plate Co. Project) 1.35%, 07/07/02 3,650 3,650 +@ IDRB (Roller Bearing Co. of America Santa Ana Project) 1.35%, 07/07/02 2,400 2,400 +@ RB (Buck Institute) 1.10%, 07/07/02 25,000 25,000 TECP 1.40%, 11/20/02 7,000 7,000 1.45%, 12/19/02 7,000 7,000 1.50%, 01/29/03 25,000 25,000 +@ CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY RB (Borax, Inc. Project) Series A 1.20%, 07/07/02 10,200 10,200 RB (Green Team of San Jose Project) 1.25%, 07/07/02 2,000 2,000 RB (Wadham Energy Project) Series 1987B 1.20%, 07/07/02 700 700 Resource Recovery RB (Sanger Project) Series 1990A 1.30%, 07/07/02 19,200 19,200 Resource Recovery Solid Waste Disposal RB (Atlas Disposal Industrial Project) Series 1999A 1.30%, 07/07/02 3,000 3,000 Resource Recovery Solid Waste Disposal RB (Bay Leasing, Inc. Project) Series 1999A 1.25%, 07/07/02 9,075 9,075 Solid Waste Disposal RB 1.75%, 07/07/02 11,615 11,615 Solid Waste Disposal RB (Blue Line Transfer, Inc. Project) 1.25%, 07/07/02 4,900 4,900 Solid Waste Disposal RB (Alameda County Industries Project) Series 2000A 1.25%, 07/07/02 4,470 4,470 Solid Waste Disposal RB (Allan Co. Project) 1.25%, 07/07/02 725 725 Solid Waste Disposal RB (Athens Disposal Co. Project) Series 1995A 1.25%, 07/07/02 14,555 14,555 Solid Waste Disposal RB (Athens Disposal Co. Project) Series 1999A 1.25%, 07/07/02 7,600 7,600 Solid Waste Disposal RB (Athens Services Project) Series 2001A 1.25%, 07/07/02 4,900 4,900 Solid Waste Disposal RB (BLT Enterprises) Series 1999A 1.25%, 07/07/02 7,905 7,905 Solid Waste Disposal RB (Blue Line Transfer Project) Series 2001A 1.25%, 07/07/02 5,000 5,000 Solid Waste Disposal RB (Burrtec Waste Industries Project) Series 1995A 1.75%, 07/07/02 3,195 3,195 Solid Waste Disposal RB (California Waste Solutions Project) Series 2002 A 1.25%, 07/07/02 3,760 3,760 Solid Waste Disposal RB (Calsan, Inc. Project) Series 1999B 1.25%, 07/07/02 3,915 3,915
See the Financial Notes, which are integral to this information. 56
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Solid Waste Disposal RB (Cheese & Protein International Project) Series 2001A 1.20%, 07/07/02 10,000 10,000 Solid Waste Disposal RB (Cold Cyn Landfill Project) 1.30%, 07/07/02 5,845 5,845 Solid Waste Disposal RB (Colmac Energy Project) Series 1990A 1.20%, 07/07/02 8,445 8,445 Solid Waste Disposal RB (Contra Costa Services) Series 1995A 1.25%, 07/07/02 3,000 3,000 Solid Waste Disposal RB (Edco Disposal Corp. Project) Series 1996A 1.25%, 07/07/02 17,140 17,140 Solid Waste Disposal RB (Federal Disposal Service Project) Series 2001A 1.30%, 07/07/02 3,200 3,200 Solid Waste Disposal RB (Greenteam of San Jose Project) Series 2001A 1.25%, 07/07/02 5,000 5,000 Solid Waste Disposal RB (Greenwaste of Tehama Project) Series A 1.30%, 07/07/02 2,535 2,535 Solid Waste Disposal RB (Madera Disposable Project) Series A 1.30%, 07/07/02 1,800 1,800 Solid Waste Disposal RB (Marborg Industries Project) Series A 1.25%, 07/07/02 5,135 5,135 Solid Waste Disposal RB (Met Recycling Corporation Project) Series B 1.30%, 07/07/02 4,575 4,575 Solid Waste Disposal RB (Mottra Corp. Project) Series 2002 A 1.25%, 07/07/02 2,750 2,750 Solid Waste Disposal RB (NorCal Waste System, Inc. Project) Series 2001A 1.30%, 07/07/02 9,250 9,250 Solid Waste Disposal RB (NorCal Waste System, Inc. Project) Series 2002A 1.30%, 07/01/02 6,000 6,000
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Solid Waste Disposal RB (Project) Series 2002A 1.30%, 07/07/02 3,900 3,900 Solid Waste Disposal RB (Ratto Group Co., Inc. Project) Series 2001A 1.25%, 07/07/02 4,925 4,925 Solid Waste Disposal RB (Republic Services, Inc. Project) Series 2001A 1.25%, 07/07/02 6,250 6,250 Solid Waste Disposal RB (Santa Clara Project) 1.30%, 07/07/02 3,400 3,400 Solid Waste Disposal RB (Santa Clara Valley Project) Series 2001A 1.25%, 07/07/02 3,780 3,780 Solid Waste Disposal RB (Shell Oil Co. Project) Series 1994B 1.85%, 07/01/02 1,900 1,900 Solid Waste Disposal RB (Solag Disposal Project) Series 1997A 1.30%, 07/07/02 2,935 2,935 Solid Waste Disposal RB (Specialty Solid Waste Project) Series 2001A 1.30%, 07/07/02 4,740 4,740 Solid Waste Disposal RB (Sun Valley Paper Project) 1.25%, 07/07/02 900 900 Solid Waste Disposal RB (Talco Plastics Project) Series 1997A 1.25%, 07/07/02 4,075 4,075 Solid Waste Disposal RB (Taormina Industries, Inc. Project) Series 1994B 1.25%, 07/07/02 2,225 2,225 Solid Waste Disposal RB (Tri Community Recycle Project) 1.25%, 07/07/02 2,280 2,280 Solid Waste Disposal RB (Waste Management Project) Series- 2002A 1.23%, 07/07/02 13,000 13,000 Solid Waste Disposal RB (Waste Management, Inc. Project) Series A 1.25%, 07/07/02 5,000 5,000 Solid Waste Disposal RB (West Valley Project) Series 1997A 1.75%, 07/07/02 5,280 5,280 Solid Waste Disposal RB (Zanker Road Landfill Project) Series C 1.30%, 07/07/02 6,370 6,370
See the Financial Notes, which are integral to this information. 57 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, FACE VALUE MKT. VALUE SERIES, RATE, MATURITY ($ x 1,000) ($ x 1,000) Solid Waste Disposal RB Series A 1.25%, 07/07/02 10,000 10,000 +@ CALIFORNIA PUBLIC POWER AGENCY Subordinate Lien RB (San Juan Project) Series 1997D 1.20%, 07/07/02 2,500 2,500 + CALIFORNIA SCHOOL CASH RESERVE PROGRAM AUTHORITY Pooled RB Series A 2.50%, 07/03/02 5,100 5,100 2.62%, 07/03/02 1,000 1,000 2.63%, 07/03/02 9,500 9,501 2.65%, 07/03/02 161,390 161,402 = 1.67%, 07/03/03 100,000 101,308 +@ CALIFORNIA SCHOOL FACILITIES FINANCING CORP. COP (Capital Improvement Financing Project) Series 1999D 1.15%, 07/07/02 8,610 8,610 CALIFORNIA STATE +@ GO Series 2001I-2 1.18%, 07/07/02 17,840 17,840 + GO TECP 1.60%, 07/03/02 13,000 13,000 1.60%, 07/09/02 22,000 22,000 1.50%, 07/10/02 9,500 9,500 1.55%, 07/10/02 7,000 7,000 1.50%, 07/30/02 6,250 6,250 1.40%, 08/06/02 16,500 16,500 1.55%, 08/06/02 25,100 25,100 1.40%, 08/07/02 26,190 26,190 1.45%, 08/12/02 24,250 24,250 1.55%, 08/12/02 63,800 63,800 1.50%, 08/22/02 12,000 12,000 1.35%, 08/30/02 8,000 8,000 1.40%, 09/05/02 67,400 67,400 1.40%, 09/06/02 50,000 50,000 +@ GO TOB Series 194 1.15%, 07/07/02 8,120 8,120 +@ GO TOB Series 195 1.15%, 07/07/02 10,835 10,835 +o GO TOBP (PA-676) 2.75%, 07/11/02 26,125 26,125 +@ GO TOBP (PA-815R) 1.22%, 07/07/02 12,445 12,445 +@ GO TOBP (PT-1236) 1.22%, 07/07/02 31,605 31,605
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ GO TOBP (PT-1252) 1.22%, 07/07/02 34,045 34,045 +@ GO TOBP (PT-1257) 1.22%, 07/07/02 29,495 29,495 +@ GO TOBP (PT-153) 1.24%, 07/07/02 4,995 4,995 +@ Merlot GO TOB Series 2000A 1.37%, 07/07/02 18,065 18,065 Revenue Anticipation Warrant Series 2002A 1.55%, 10/25/02 43,000 43,129 Revenue Anticipation Warrant Series 2002B 1.78%, 11/27/02 70,000 70,204 1.80%, 11/27/02 60,000 60,170 Revenue Anticipation Warrant Series 2002C 1.86%, 01/30/03 375,000 375,305 +@ TOB Putters Series 132 1.28%, 07/07/02 95,100 95,100 +@ CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES RB Series K-1 1.30%, 07/07/02 227,250 227,250 +@ CALIFORNIA STATE ECONOMIC DEVELOPMENT FINANCING AUTHORITY IDRB (Calco Project) 1.55%, 07/07/02 670 670 IDRB (Gaiser Tool Project) 1.20%, 07/07/02 2,350 2,350 IDRB (Mannesmann Dematic Corp.) 1.30%, 07/07/02 3,200 3,200 IDRB (Mercury Air Group) 1.20%, 07/07/02 14,800 14,800 RB (Costa Macoroni Project) 1.20%, 07/07/02 2,945 2,945 +@ CALIFORNIA STATE GOVERNMENT Eagle TOB Series 1994 1.35%, 07/07/02 19,850 19,850 Eagle TOB Series 1997C 1.35%, 07/07/02 10,900 10,900 Eagle TOB Series 2000 1.18%, 07/07/02 29,255 29,255 1.23%, 07/07/02 30,540 30,540 1.40%, 07/07/02 9,900 9,900 + CALIFORNIA STATE HFA @ M/F Housing RB TOB 1.22%, 07/07/02 22,175 22,175
See the Financial Notes, which are integral to this information. 58
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) o RB TOBP (PA-540R) 1.30%, 07/11/02 3,025 3,025 @ RB TOBP (PT-640) 1.30%, 07/07/02 24,000 24,000 +@ CALIFORNIA STATE PUBLIC WORKS BOARD Lease Revenue TOB Putters Series 209 1.28%, 07/07/02 9,995 9,995 Lease Revenue TOB Series 1999F 1.32%, 07/07/02 9,985 9,985 Lease Revenue TOB Series 2000D 1.20%, 07/07/02 3,000 3,000 Lease Revenue TOBP (PA-814) 1.20%, 07/07/02 15,395 15,395 CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY +@ COP 1.10%, 07/07/02 7,485 7,485 +@ COP TOB Series 1999E 1.32%, 07/07/02 5,000 5,000 +@ IDRB (Biocol Investments, LP) Series 1997B 2.05%, 07/07/02 1,500 1,500 +@ IDRB (Integrated Rolling Co. Project) Series 1999A 1.35%, 07/07/02 2,600 2,600 +@ Insured RB (Fremont Rideout Project) Series 2001A 1.80%, 07/01/02 19,500 19,500 +@ M/F Housing RB (Cypress Villa Apartments) Series F 1.15%, 07/07/02 4,725 4,725 +@ M/F Housing RB (Emerald Gardens Apartments) Series E 1.15%, 07/07/02 7,320 7,320 +@ M/F Housing RB (Kimberly Woods Project) Series 1995B 1.25%, 07/07/02 13,400 13,400 +@ M/F Housing RB (Park David Senior Apartments Project) Series 1999D 1.20%, 07/07/02 8,220 8,220 +@ M/F Housing RB (Plaza Club Apartments) Series 1997A 1.20%, 07/07/02 9,790 9,790 +@ RB (Biola University Project) Series 2002B 1.15%, 07/07/02 23,000 23,000 +@ RB (Dr. Nichols Pistachio) Series C 1.25%, 07/07/02 700 700 +@ RB (Elder Care Alliance) 1.23%, 07/07/02 12,760 12,760
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ RB (Gemological Institute Project) 1.20%, 07/07/02 35,705 35,705 +@ RB (INSD Children's Hospital Project) Series 2002A 1.10%, 07/07/02 27,500 27,500 +@ RB (INSD Children's Hospital Project) Series 2002B 1.10%, 07/07/02 19,500 19,500 +@ RB (Japanese American Museum Project) Series 2000A 1.15%, 07/07/02 4,900 4,900 +@ RB (Jewish Federation of Los Angeles) Series 2000A 1.30%, 07/07/02 8,800 8,800 +@ RB (Masters College Project) 1.15%, 07/07/02 11,250 11,250 +@ RB (National Public Radio Project) 1.20%, 07/07/02 8,000 8,000 +@ RB (Valley Palms Apartments Project) 1.20%, 07/07/02 12,000 12,000 +@ Solid Waste Facilities (Disposal Waste Services) 1.20%, 07/07/02 25,000 25,000 = TRAN Series A 1.70%, 06/30/03 40,000 40,510 +@ CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT CORP. IDRB (13th I Associates Project) 1.15%, 07/07/02 4,610 4,610 IDRB (Agricultural Products, Inc. Project) 2.05%, 07/07/02 1,310 1,310 IDRB (Cowden Metal Stamping Project) 2.05%, 07/07/02 1,565 1,565 IDRB (Drip In Irrigation Co. Project) 1.25%, 07/07/02 3,600 3,600 IDRB (Pacific Handy Cutter Products Project) 2.05%, 07/07/02 280 280 IDRB (The Diamond Foods Project) Series 1991 2.05%, 07/07/02 915 915 IDRB Series 1998C 1.25%, 07/07/02 1,830 1,830 +@ CALIFORNIA STATEWIDE COMMUNITY Industrial Development Revenue Refunding Bond (Golden Valley Project) Series A 1.25%, 07/07/02 1,260 1,260
See the Financial Notes, which are integral to this information. 59 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ CALIFORNIA STATEWIDE M/F HOUSING AUTHORITY RB (Woodsong Apartments) Series 1997B 1.15%, 07/07/02 3,327 3,327 +@ CARLSBAD, CALIFORNIA M/F Housing Revenue Refunding COP (La Costa Apartment Project) Series 1993A 1.25%, 07/07/02 14,400 14,400 CENTRAL COAST, CALIFORNIA WATER AUTHORITY RB (State Water Project Regional Facilities) 2.41%, 10/01/02 5,600 5,769 +@ CONCORD, CALIFORNIA M/F Housing Mortgage RB (Bel Air Apartments Project) Series 1986A 1.20%, 07/07/02 3,000 3,000 +@ CONCORD, CALIFORNIA M/F HOUSING AUTHORITY RB (California Hill Apartments) Series 1989A 1.25%, 07/07/02 7,900 7,900 CONTRA COSTA COUNTY, CALIFORNIA +@ M/F Housing Mortgage RB (El Cerrito Project) Series A 1.20%, 07/07/02 980 980 TRAN Series A 2.43%, 10/04/02 28,000 28,040 = CONTRA COSTA COUNTY, CALIFORNIA BOARD OF EDUCATION TRAN 1.66%, 07/01/03 26,700 27,051 +@ DAVIS, CALIFORNIA COMMUNITY FACILITIES DISTRICT Special Tax Bond (East Davis Mace Ranch Project) District No. 1999-2 1.20%, 07/07/02 4,160 4,160 +@ DUBLIN, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Park Siera Project) Series A 1.25%, 07/07/02 12,700 12,700 +@ DUBLIN, CALIFORNIA SAN RAMON SERVICES DISTRICT COP 1.15%, 07/07/02 15,400 15,400
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) EAST BAY, CALIFORNIA MUNICIPAL UTILITY DISTRICT TECP 1.50%, 07/09/02 3,000 3,000 1.20%, 07/11/02 32,300 32,300 1.55%, 08/07/02 12,000 12,000 1.40%, 08/21/02 5,000 5,000 1.25%, 09/12/02 11,800 11,800 1.35%, 11/08/02 11,000 11,000 +@ Water System Subordinated RB Series 2002B 1.13%, 07/07/02 10,000 10,000 +@ EL CAJON, CALIFORNIA M/F Housing RB (Pinewood Apartments Project) 1.20%, 07/07/02 1,450 1,450 M/F Housing Redevelopment RB (Mollison & Madison Project) 1.20%, 07/07/02 5,200 5,200 +@ ENCINITAS, CALIFORNIA M/F Housing Revenue Refunding Bond (Torrey Pines Project) Series A 1.20%, 07/07/02 3,100 3,100 FAIRFIELD, CALIFORNIA HOUSING AUTHORITY Mortgage Revenue Refunding Bond (Creekside Estates Project) 1.60%, 07/07/02 5,055 5,183 +@ FOOTHILL-DE ANZA, CALIFORNIA COMMUNITY COLLEGE DISTRICT Merlot TOB Series 2000YY 1.32%, 07/07/02 9,995 9,995 +@ FRESNO, CALIFORNIA IDA RB (Keiser Corp.) 1.25%, 07/07/02 1,965 1,965 + GOLDEN EMPIRE SCHOOLS FINANCING AUTHORITY, CALIFORNIA Lease RB (Kern High School District Projects) 1.20%, 07/03/02 10,600 10,600 GOLDEN GATE BRIDGE HIGHWAY & TRANSPORTATION DISTRICT, CALIFORNIA TECP 1.25%, 07/03/02 9,700 9,700 1.65%, 10/04/02 10,000 10,000 1.30%, 10/15/02 26,000 26,000
See the Financial Notes, which are integral to this information. 60
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ HAYWARD, CALIFORNIA M/F Housing RB (Shorewood Apartment Project) Series A 1.10%, 07/07/02 9,100 9,100 +@ HAYWARD, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Huntwood Terrace Apartments) 1.20%, 07/07/02 5,465 5,465 +@ HERCULES, CALIFORNIA REDEVELOPMENT AGENCY IDRB (Pro Media Project) Series 2000A 1.35%, 07/07/02 2,500 2,500 +@ HUNTINGTON BEACH, CALIFORNIA M/F Housing RB (Five Points Project) 1.20%, 07/07/02 9,500 9,500 +@ HUNTINGTON PARK, CALIFORNIA REDEVELOPMENT AGENCY M/F Housing RB (Casa Rita Apartments) Series 1994A 1.20%, 07/07/02 4,100 4,100 +@ IRVINE RANCH, CALIFORNIA IMPROVEMENT BOND ACT 1915 RB (Assessment District No. 85-7) Series 1986I 1.20%, 07/07/02 16,182 16,182 RB (Assessment District No. 89-10) 1.75%, 07/01/02 900 900 +@ IRVINE RANCH, CALIFORNIA WATER DISTRICT RB 1.75%, 07/01/02 1,100 1,100 +@ KERN COUNTY, CALIFORNIA COP (Kern Public Facilities Project) Series A 1.10%, 07/07/02 3,400 3,400 +@ LIVERMORE, CALIFORNIA M/F Housing Revenue Refunding Bond (Arbors Apartment Project) Series 1991A 1.25%, 07/07/02 9,005 9,005 +@ LODI, CALIFORNIA ELECTRIC SYSTEM RB COP Series A 1.10%, 07/07/02 14,000 14,000 +@ LONG BEACH, CALIFORNIA HARBOR RB TOBP (PA-890R) 1.24%, 07/07/02 9,190 9,190
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) LOS ANGELES, CALIFORNIA +@ M/F Housing RB (Beverly Park Apartments) 1.20%, 07/07/02 34,000 34,000 +@ M/F Housing RB (Studio Colony) Series 1985C 1.17%, 07/07/02 15,931 15,931 +@ M/F Housing RB Series 1985K 1.30%, 07/07/02 59,455 59,455 +@ M/F Housing Revenue Refunding Bond (Tri City Project) Series 2001I 1.20%, 07/07/02 3,700 3,700 +@ TOBP (PA-554) 1.20%, 07/07/02 3,150 3,150 = TRAN 1.50%, 06/30/03 43,000 43,632 1.57%, 06/30/03 49,000 49,686 +@ Water & Power RB Subseries 2001B-1 1.20%, 07/07/02 30,500 30,500 +@ Water & Power RB Subseries 2001B-3 1.70%, 07/07/02 13,800 13,800 +@ Water & Power RB Subseries 2001B-6 1.85%, 07/07/02 5,000 5,000 LOS ANGELES, CALIFORNIA AIRPORT TECP Series A 1.35%, 07/10/02 5,700 5,700 TECP Series B 1.40%, 07/10/02 4,300 4,300 +@ LOS ANGELES, CALIFORNIA COMMUNITY REDEVELOPMENT AGENCY M/F Housing Revenue Refunding Bond (Promenade Towers Project) Series 2000 1.10%, 07/07/02 34,300 34,300 +@ LOS ANGELES, CALIFORNIA DEPARTMENT OF WATER & POWER Eagle TOB Series 2001 1.18%, 07/07/02 24,750 24,750 Electric Plant TOB Series 1 1.32%, 07/07/02 19,995 19,995 Electric Plant TOB Series 370 1.18%, 07/07/02 11,620 11,620 RB TOB Series L 1.32%, 07/07/02 20,390 20,390 TOB Putters Series 184 1.28%, 07/07/02 15,000 15,000 LOS ANGELES, CALIFORNIA HARBOR DEPARTMENT TECP 1.45%, 09/10/02 11,000 11,000
See the Financial Notes, which are integral to this information. 61 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) LOS ANGELES, CALIFORNIA METROPOLITAN TRANSPORTATION AUTHORITY TECP 1.30%, 10/15/02 14,518 14,518 LOS ANGELES, CALIFORNIA UNIFIED SCHOOL DISTRICT +@ Munitops TOB Series C 1.18%, 07/07/02 15,400 15,400 TRAN 1.27%, 07/23/02 64,560 64,616 = TRAN Series B 3.00%, 07/01/03 15,000 15,195 + LOS ANGELES, CALIFORNIA WASTEWATER SYSTEM @ RB TOB Series A 1.18%, 07/07/02 12,245 12,245 Revenue Refunding Bond Series 2001A 1.88%, 10/31/02 14,000 14,000 Revenue Refunding Bond Series 2001B 1.88%, 10/31/02 18,000 18,000 Revenue Refunding Bond Series 2001C 1.88%, 10/31/02 20,000 20,000 LOS ANGELES, CALIFORNIA WATER & POWER TECP 1.50%, 07/05/02 6,300 6,300 1.50%, 07/08/02 14,100 14,100 1.35%, 08/13/02 9,300 9,300 1.30%, 08/14/02 15,000 15,000 1.30%, 08/27/02 15,000 15,000 LOS ANGELES COUNTY, CALIFORNIA +@ COP ACES (Los Angeles County Museum of Art Project) Series 1985A 1.30%, 07/07/02 1,900 1,900 +@ COP ACES (Los Angeles County Museum of Art Project) Series 1985B 1.30%, 07/07/02 2,100 2,100 +@ M/F Housing RB (Channel Gateway Apartments) 1.20%, 07/07/02 67,700 67,700 = TRAN Series A 3.00%, 06/30/03 97,000 98,294 LOS ANGELES COUNTY, CALIFORNIA CAPITAL ASSET LEASING CORP. Lease Revenue TECP 1.40%, 08/05/02 19,950 19,950 1.40%, 08/07/02 6,050 6,050 1.40%, 08/08/02 24,590 24,590 1.30%, 09/03/02 3,400 3,400 1.35%, 09/09/02 6,000 6,000
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ LOS ANGELES COUNTY, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Malibu Canyon Apartments Project) Series B 1.30%, 07/07/02 23,520 23,520 +@ LOS ANGELES COUNTY, CALIFORNIA METROPOLITAN TRANSIT AUTHORITY TOB 1.32%, 07/07/02 23,830 23,830 +@ LOS ANGELES COUNTY, CALIFORNIA METROPOLITAN TRANSPORTATION AUTHORITY Eagle Sales Tax Revenue Refunding TOB Series A 1.18%, 07/07/02 24,750 24,750 Revenue Refunding Bond Series 1993A 1.10%, 07/07/02 15,000 15,000 + LOS ANGELES COUNTY, CALIFORNIA PENSION OBLIGATION Revenue Refunding Bond Series B 1.10%, 07/07/02 3,115 3,115 @ Revenue Refunding Bond Series 1996A 1.10%, 07/07/02 12,375 12,375 = LOS ANGELES COUNTY, CALIFORNIA SCHOOLS POOLED FINANCING PROGRAM TRAN Series A 1.67%, 06/30/03 20,000 20,261 +@ LOS ANGELES COUNTY, CALIFORNIA TRANSPORTATION COMMISSION Sales Tax RB Series 1992A 1.10%, 07/07/02 8,050 8,050 +@ MADERA, CALIFORNIA PUBLIC FINANCING MUNICIPAL GOLF COURSE REVENUE REFINANCING AUTHORITY RB 1.10%, 07/07/02 3,345 3,345 +@ METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Revenue Refunding Bond Series 1996A 1.10%, 07/07/02 6,500 6,500 Revenue Refunding Bond Series 1997C 1.25%, 07/07/02 4,200 4,200 Revenue Refunding Bond Series 1998B 1.15%, 07/07/02 8,500 8,500 Revenue Refunding Bonds Series 1999C 1.15%, 07/07/02 4,100 4,100
See the Financial Notes, which are integral to this information. 62
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Revenue Refunding Bond Series B2 1.13%, 07/07/02 5,000 5,000 Waterworks RB Series 2000B2 1.10%, 07/07/02 8,700 8,700 Waterworks Revenue Refunding Bond Series 2001B-1 1.13%, 07/07/02 14,000 14,000 Waterworks Revenue TOB Series 1999O 1.32%, 07/07/02 16,000 16,000 Waterworks Revenue TOBP (PA-546) 1.22%, 07/07/02 14,000 14,000 +@ MODESTO-SANTA CLARA-REDDING, CALIFORNIA PUBLIC POWER AGENCY RB (San Juan Project) Subordinate Lien Series 1997E 1.13%, 07/07/02 5,000 5,000 +@ MOUNT SAN JACINTO, CALIFORNIA WINTER PARK AUTHORITY COP (Palm Springs Aerial Project) 1.15%, 07/07/02 8,200 8,200 COP (Palm Springs Aerial Project) Series 2000B 1.15%, 07/07/02 2,900 2,900 +@ NORTHERN CALIFORNIA POWER AGENCY Revenue Refunding Bond (Hydroelectric No. 1 Project) Series 2002A 1.10%, 07/07/02 11,310 11,310 Revenue Refunding Bond (Hydroelectric No. 1 Project) Series 2002B 1.10%, 07/07/02 22,110 22,110 +@ NORTHERN CALIFORNIA TRANSMISSION AGENCY Revenue Refunding Bond (CaliforniaOre Transmission Project) Series 2002 A 1.20%, 07/07/02 10,000 10,000 OAKLAND, CALIFORNIA +@ Revenue TOB (180 Harrison Foundation Project) Series 2000M 1.32%, 07/07/02 3,000 3,000 TRAN 2.65%, 07/25/02 64,785 64,841 + OAKLAND, CALIFORNIA UNIFIED SCHOOL DISTRICT Alameda County TRAN 1.55%, 10/24/02 10,000 10,044 +@ ORANGE COUNTY, CALIFORNIA COP (Florence Crittenton Services Project) Series 1990 1.18%, 07/07/02 5,700 5,700 M/F Housing RB (Lantern Pines Project) 1.20%, 07/07/02 14,700 14,700 +@ ORANGE COUNTY, CALIFORNIA APARTMENT DEVELOPMENT RB (Villas Aliento) Series 1998E 1.10%, 07/07/02 4,500 4,500 RB (Hidden Hills) Series 1985C 1.30%, 07/07/02 9,700 9,700 RB Series F 1.10%, 07/07/02 15,900 15,900 Revenue Refunding Bond (Jess L. Frost Project) Series 1985B 1.20%, 07/07/02 10,200 10,200 Revenue Refunding Bond (Pointe Niguel Project) Series 1992C 1.10%, 07/07/02 18,000 18,000 Revenue Refunding Bond (The Lakes Project #185) Series 1991A 1.15%, 07/07/02 16,000 16,000 ORANGE COUNTY, CALIFORNIA LOCAL TRANSPORTATION AUTHORITY TECP 1.60%, 07/12/02 4,000 4,000 1.25%, 09/08/02 45,000 45,000 +@ ORANGE COUNTY, CALIFORNIA SANITATION DISTRICT COP (Sanitation Districts 1-3, 5- 7 & 11) Series 1992C 1.10%, 07/07/02 5,000 5,000 COP (Sanitation Districts 1-3, 5-7, & 11) 1.75%, 07/01/02 400 400 COP Series 2000B 1.75%, 07/01/02 100 100 +@ PALO ALTO, CALIFORNIA UNIFIED SCHOOL DISTRICT Merlot TOB Series R 1.32%, 07/07/02 6,000 6,000 +@ PETALUMA, CALIFORNIA COMMUNITY M/F HOUSING AUTHORITY M/F Housing RB (Oakmont At Petaluma Project) 1.35%, 07/07/02 3,550 3,550
See the Financial Notes, which are integral to this information. 63 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND - FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ PINOLE, CALIFORNIA REDEVELOPMENT AGENCY M/F Housing RB (East Bluff Apartments Project) 1.35%, 07/07/02 2,559 2,559 +@ PLEASANT HILL, CALIFORNIA M/F Housing RB (Brookside Apartments Project) 1.10%, 07/07/02 4,800 4,800 +@ PORT OF OAKLAND, CALIFORNIA Merlot TOB (First Union) Series 2000JJ 1.37%, 07/07/02 15,000 15,000 TOBP (PA-663) 1.24%, 07/07/02 7,575 7,575 +@ RANCHO, CALIFORNIA WATER DISTRICT FINANCING AUTHORITY RB Series 2001B 1.10%, 07/07/02 10,000 10,000 +@ REDWOOD CITY, CALIFORNIA COP (City Hall Project) 1.25%, 07/07/02 2,400 2,400 RIVERSIDE COUNTY, CALIFORNIA +@ M/F Housing RB (Ambergate Apartments) Series 1992A 1.35%, 07/07/02 2,600 2,600 Teeter Obligation TECP 1.55%, 08/07/02 8,458 8,458 +@ RIVERSIDE COUNTY, CALIFORNIA ASSET LEASING CORP. Leasehold RB (South West Justice Center) Series 2000B 1.10%, 07/07/02 10,000 10,000 +@ RIVERSIDE COUNTY, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Briarwood Apartment Project) Series 1985C 1.20%, 07/07/02 4,500 4,500 M/F Housing RB (Tyler Springs Apartments) Series 1999C 1.10%, 07/07/02 7,000 7,000 M/F Housing Revenue Refunding Bond (Victoria Springs Apartments) 1.20%, 07/07/02 9,000 9,000 +@ RIVERSIDE COUNTY, CALIFORNIA IDA RB (Calmold, Inc. Project) 1.20%, 07/07/02 3,220 3,220 +@ RIVERSIDE COUNTY, CALIFORNIA PUBLIC FACILITIES ACES COP (Riverside County Public Facility Project) Series 1985C 1.20%, 07/07/02 6,500 6,500 ACES COP Series 1985B 1.20%, 07/07/02 8,300 8,300 SACRAMENTO, CALIFORNIA MUNICIPAL UTILITY DISTRICT TECP Series 1 1.50%, 07/08/02 35,050 35,050 1.40%, 07/10/02 15,000 15,000 +@ SACRAMENTO COUNTY, CALIFORNIA COP (Administration Center & Court House Project) 1.15%, 07/07/02 7,875 7,875 +@ SACRAMENTO COUNTY, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Chesapeake Commons Project) Series C 1.20%, 07/07/02 28,000 28,000 M/F Housing RB (Hidden Oaks Apartments) Series 1999C 1.20%, 07/07/02 6,300 6,300 +@ SACRAMENTO COUNTY, CALIFORNIA SANITATION DISTRICT FINANCING AUTHORITY TOB Series 366 1.15%, 07/07/02 28,945 28,945 TOBP (PA-694) 1.20%, 07/07/02 6,090 6,090 +@ SACRAMENTO COUNTY, CALIFORNIA SPECIAL FACILITIES RB (Recessna Aircraft Corp. Project) 1.20%, 07/07/02 3,700 3,700 +@ SALINAS, CALIFORNIA APARTMENT DEVELOPMENT M/F Housing RB (Mariner Villa Project) Series 1985B 1.15%, 07/07/02 2,825 2,825 SAN BERNARDINO COUNTY, CALIFORNIA +@ COP (Glen Helen Blockbuster Pavilion Project) Series 1994C 1.15%, 07/07/02 6,210 6,210 +@ COP (Medical Center Financing Project) 1.22%, 07/07/02 21,060 21,060 = TRAN 1.68%, 07/01/03 35,000 35,454
See the Financial Notes, which are integral to this information. 64
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) SAN DIEGO, CALIFORNIA CITY & COUNTY UNIFIED SCHOOL DISTRICT TRAN 1.48%, 08/01/02 20,700 20,715 = SAN DIEGO, CALIFORNIA COUNTY & SCHOOL DISTRICT TRAN Series 2002A 1.67%, 06/30/03 10,855 10,999 +@ SAN DIEGO, CALIFORNIA HOUSING AUTHORITY M/F Mortgage RB (Creekside Villa) Series 1999B 1.20%, 07/07/02 6,000 6,000 M/F Mortgage RB (Nobel Courts) Series 1999L 1.10%, 07/07/02 15,500 15,500 +@ SAN DIEGO, CALIFORNIA UNIFIED SCHOOL DISTRICT TRAN Series A 1.52%, 07/28/03 61,850 62,818 SAN DIEGO, CALIFORNIA WATER AUTHORITY TECP Series 1 1.50%, 07/03/02 15,000 15,000 1.20%, 07/12/02 5,000 5,000 +@ SAN FRANCISCO, CALIFORNIA CITY & COUNTY AIRPORTS COMMISSION International Airport Certificates Series 476 1.19%, 07/07/02 16,255 16,255 International Airports RB TOB Series 429 1.19%, 07/07/02 8,485 8,485 International Airports RB TOBP (PA-662) 1.30%, 07/07/02 12,670 12,670 +@ SAN FRANCISCO, CALIFORNIA CITY & COUNTY FINANCING CORP Lease RB (Moscone Center Expansion Project) Series 2000-3 1.10%, 07/07/02 13,900 13,900 Lease RB (Moscone Center Expansion Project) Series 2000 1.20%, 07/07/02 18,900 18,900 +@ SAN FRANCISCO, CALIFORNIA CITY & COUNTY REDEVELOPMENT AGENCY M/F Housing RB (3rd & Mission) Series 1999C 1.15%, 07/07/02 20,000 20,000 M/F Housing RB (Fillmore Center Project) Series A2 1.25%, 07/07/02 3,750 3,750 M/F Housing RB (Ocean Beach Apartments) Series-B 1.30%, 07/07/02 4,850 4,850 M/F Housing RB (Post Street Towers) Series A 1.15%, 07/07/02 10,000 10,000 M/F Housing RB (Winterland Project) Series 1985C 1.25%, 07/07/02 16,800 16,800 +@ SAN FRANCISCO, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Magnolia Plaza Project) Series A 1.30%, 07/07/02 5,500 5,500 SAN JOAQUIN COUNTY, CALIFORNIA TRANSPORTATION AUTHORITY Sales Tax Revenue TECP 1.25%, 07/10/02 10,000 10,000 1.20%, 08/08/02 15,000 15,000 1.25%, 08/09/02 18,600 18,600 +@ SAN JOSE, CALIFORNIA M/F Housing RB (Almeden Lake Apartments Project) Series 1997A 1.20%, 07/07/02 15,900 15,900 M/F Housing RB (Betty Anne Apartments Project) Series A 1.20%, 07/07/02 11,000 11,000 M/F Housing RB (Carlton Plaza Project) Series A 1.50%, 07/07/02 5,000 5,000 M/F Housing RB (El Paseo Apartments Project) Series B 1.20%, 07/07/02 5,000 5,000 M/F Housing RB (Seinna at Renaissance Project) Series 1996A 1.20%, 07/07/02 21,500 21,500 SAN JOSE, CALIFORNIA FINANCING AUTHORITY Lease Revenue BAN Series A 1.32%, 12/12/02 16,000 16,083 +@ SAN JOSE, CALIFORNIA REDEVELOPMENT AGENCY M/F Housing (101 San Fernando Apartments Project) Series A 1.25%, 07/07/02 38,000 38,000 Tax Allocation TOB Putters Series 158 1.28%, 07/07/02 30,095 30,095
See the Financial Notes, which are integral to this information. 65 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE Rate, Maturity ($ x 1,000) ($ x 1,000) +@ SAN LEANDRO, CALIFORNIA M/F Housing RB (Carlton Plaza Project) Series A 1.70%, 07/07/02 1,900 1,900 +@ SANGER, CALIFORNIA PUBLIC FINANCING AUTHORITY Revenue Refunding Bond (Utility System Funding Project) Series A 1.50%, 07/07/02 10,000 10,000 SANTA BARBARA COUNTY, CALIFORNIA TRAN Series A 1.52%, 07/25/03 12,000 12,186 +@ SANTA CLARA COUNTY, CALIFORNIA M/F Housing Revenue Refunding Bond (Brairwood Apartments Project) Series 1996B 1.10%, 07/07/02 12,400 12,400 M/F Housing Revenue Refunding Bond (Grove Garden Apartments) Series 1997A 1.10%, 07/07/02 14,000 14,000 +@ SANTA CLARA COUNTY, CALIFORNIA ELECTRIC AUTHORITY RB, Series C 1.10%, 07/07/02 18,100 18,100 +@ SANTA CLARA COUNTY, CALIFORNIA HOSPITAL FACILITY AUTHORITY RB (El Camino Hospital District- Valley Medical Center Project) Series 1985A 1.25%, 07/07/02 16,700 16,700 +@ SANTA CLARA VALLEY, CALIFORNIA WATER DISTRICT COP TOB Series 411 1.15%, 07/07/02 15,120 15,120 +@ SANTA FE SPRINGS, CALIFORNIA IDA RB 1.80%, 07/30/02 4,000 4,000 +@ SANTA PAULA, CALIFORNIA PUBLIC FINANCING AUTHORITY Lease Water System RB (Aquis Project) 1.25%, 07/07/02 9,200 9,200 +@ SANTA ROSA, CALIFORNIA M/F Housing RB (Quail Run Apartments) Series 1997A 1.35%, 07/07/02 4,850 4,850 +@ SANTA ROSA, CALIFORNIA HOUSING AUTHORITY M/F Housing RB (Apple Creek Apartments Project) Series E 1.15%, 07/07/02 17,140 17,140 SONOMA COUNTY, CALIFORNIA TRAN 2.05%, 11/19/02 21,500 21,577 = SOUTH COAST, CALIFORNIA LOCAL EDUCATION AGENCIES TRAN Series A 1.65%, 06/30/03 25,000 25,331 +@ SOUTH PLACER, CALIFORNIA WASTEWATER AUTHORITY RB Series B 1.15%, 07/07/02 20,000 20,000 +@ SOUTHERN CALIFORNIA HFA S/F Mortgage RB TOBP (PT-629) 1.30%, 07/07/02 25,000 25,000 +@ SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY RB (Southern Transmission Project) Series 1991 1.10%, 07/07/02 27,115 27,115 Revenue Refunding Bond (Palos Verdes Project) Series 1996B 1.10%, 07/07/02 6,400 6,400 Revenue Refunding Bond (Southern Transmission Project) Series 2001A 1.10%, 07/07/02 6,095 6,095 +@ SOUTHERN CALIFORNIA SOUTHEAST RESOURCE RECOVERY FACILITY AUTHORITY RB Series 1993A 1.15%, 07/07/02 12,241 12,241 +@ STOCKTON, CALIFORNIA COMMUNITY FACILITY DISTRICT RB 1.20%, 07/07/02 1,555 1,555 +@ SUNNYVALE, CALIFORNIA COP (Government Center Site Acquisition) Series 2001A 1.20%, 07/07/02 7,900 7,900 +@ TULARE PORTERVILLE, CALIFORNIA SCHOOL FINANCING AUTHORITY RB 1.95%, 07/07/02 6,220 6,220 +@ UNION CITY, CALIFORNIA M/F Housing RB (Greenhaven Apartments Project) Series 1997A 1.10%, 07/07/02 10,975 10,975
See the Financial Notes, which are integral to this information. 66
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE Rate, Maturity ($ x 1,000) ($ x 1,000) +@ UNIVERSITY OF CALIFORNIA BOARD OF REGENTS Eagle TOB 1.18%, 07/07/02 19,430 19,430 UNIVERSITY OF CALIFORNIA REGENTS TECP 1.25%, 08/07/02 10,000 10,000 1.45%, 08/07/02 17,300 17,300 1.50%, 08/09/02 16,000 16,000 1.40%, 08/12/02 8,100 8,100 1.35%, 08/13/02 14,921 14,921 1.25%, 09/12/02 23,545 23,545 1.65%, 10/04/02 8,100 8,100 1.30%, 10/07/02 25,000 25,000 +@ VAL VERDE, CALIFORNIA UNIFIED SCHOOL DISTRICT COP RB Series 2001A 1.11%, 07/07/02 13,735 13,735 +@ VALLECITOS, CALIFORNIA WATER DISTRICT RB (Twin Oaks Reservoir Project) 1.10%, 07/07/02 19,300 19,300 +@ VALLEJO CITY, CALIFORNIA UNIFIED SCHOOL DISTRICT COP (Various Capital Improvement Financing Projects) Series 1999E 1.15%, 07/07/02 5,765 5,765 = VENTURA COUNTY, CALIFORNIA TRAN 1.66%, 07/01/03 20,000 20,263 +@ VICTOR VALLEY, CALIFORNIA COMMUNITY COLLEGE DISTRICT COP 1.15%, 07/07/02 53,450 53,450 +@ VISTA, CALIFORNIA IDA IDRB (Desalination System, Inc. Project) 1.20%, 07/07/02 5,650 5,650 +@ WEST BASIN, CALIFORNIA MUNICIPAL WATER DISTRICT RB COP (Phase III Recycled Water Project) Series 1999A 1.15%, 07/07/02 2,900 2,900 +@ WEST SACRAMENTO, CALIFORNIA SPECIAL TAX RB (Community Facilities District No. 6) 1.70%, 07/07/02 3,835 3,835 +@ WESTMINSTER, CALIFORNIA COP (Civic Center Project) Series A 1.25%, 07/07/02 3,790 3,790 +@ WESTMINSTER, CALIFORNIA AGENCY Tax Allocation Bond (Community Redevelopment Project) 1.25%, 07/07/02 9,365 9,365 +@ WESTMINSTER, CALIFORNIA REDEVELOPMENT AGENCY M/F Housing RB (Brookhurst Royale) Series A 2.15%, 07/07/02 7,700 7,700 --------- 6,448,457 PUERTO RICO 3.6% GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO TECP 1.40%, 08/13/02 1,846 1,846 1.45%, 08/14/02 3,454 3,454 1.45%, 08/23/02 9,435 9,435 1.35%, 09/10/02 1,863 1,863 1.40%, 09/10/02 25,559 25,559 1.35%, 09/20/02 41,000 41,000 + PUERTO RICO COMMONWEALTH @ Infrastructure Eagle TOB Series 2000 1.35%, 07/07/02 15,465 15,465 1.40%, 07/07/02 20,000 20,000 @ Public Improvement TOB Series 2001A 1.18%, 07/07/02 5,535 5,535 @ TOB Putters Series 232 1.18%, 07/07/02 24,245 24,245 @ TOB Series 204 1.18%, 07/07/02 6,295 6,295 @ TOB Series 3 1.13%, 07/07/02 5,495 5,495 @ TOBP (PA-652) 1.13%, 07/07/02 2,730 2,730 Unlimited GO Series 2001II-R-124 1.33%, 07/05/02 4,895 4,895 +@ PUERTO RICO COMMONWEALTH HIGHWAY & Transportation Authority Highway Revenue Refunded Bond Series T 2.50%, 07/01/02 4,655 4,725 RB Series 1998A 1.10%, 07/07/02 2,900 2,900
See the Financial Notes, which are integral to this information. 67 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Revenue TOBP (PA-605) 1.13%, 07/07/02 1,200 1,200 Transportation Revenue Merlot TOB Series 2000FFF 1.27%, 07/07/02 4,980 4,980 +@ PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY TOBP (PA-498) 1.13%, 07/07/02 3,290 3,290 PUERTO RICO ELECTRIC POWER AUTHORITY +@ Infratructure Eagle TOB 1.40%, 07/01/02 7,405 7,405 +@ RB TOB Putters 1.18%, 07/07/02 5,000 5,000 o RB TOB Putters Series 164 1.55%, 11/21/02 2,765 2,765 +@ PUERTO RICO HIGHWAY & TRANSPOTATION AUTHORITY RB TOB (R-66) Series II 1.18%, 07/07/02 8,600 8,600 +@ PUERTO RICO HOUSING FINANCE CORP. RB TOB Series R 1.25%, 07/07/02 7,550 7,550 +@ PUERTO RICO PUBLIC BUILDING AUTHORITY Government Facilities RB TOB Putter Series 211 1.18%, 07/07/02 14,995 14,995 Revenue Guaranteed RB TOB Series II-R-56 1.18%, 07/07/02 6,545 6,545 -------- 237,772
End of Portfolio Holdings. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 68 Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV.
ASSETS -------------------------------------------------------------------------------- Investments, at market value $ 6,686,229 a Cash 815 Receivables: Fund shares sold 6,869 Interest 26,806 Investments sold 253,686 Prepaid expenses + 11 ------------- TOTAL ASSETS 6,974,416 LIABILITIES -------------------------------------------------------------------------------- Payables: Fund shares redeemed 15,376 Dividends to shareholders 2,043 Investments bought 620,523 Investment adviser and administrator fees 110 Transfer agent and shareholder service fees 175 Accrued expenses + 199 ------------- TOTAL LIABILITIES 638,426 NET ASSETS -------------------------------------------------------------------------------- TOTAL ASSETS 6,974,416 TOTAL LIABILITIES - 638,426 ------------- NET ASSETS $ 6,335,990 NET ASSETS BY SOURCE Capital received from investors 6,336,679 Net realized capital losses (689)
NET ASSETS BY SHARE CLASS
SHARES SHARE CLASS NET ASSETS / OUTSTANDING = NAV Sweep Shares $3,712,702 3,713,583 $1.00 Value Advantage Shares $2,623,288 2,623,211 $1.00
a Includes illiquid restricted securities worth $41,910, or 0.63% of the fund's investments.The amortized cost for the fund's securities was $6,686,229. During the reporting period, the fund had $542,734 in transactions with other SchwabFunds(R).
FEDERAL TAX DATA COST BASIS OF PORTFOLIO $ 6,686,229
UNUSED CAPITAL LOSSES: Expires 12/31 of: Loss amount: 2002 $ 173 2004 93 2005 35 2006 42 2007 259 2008 + 958 --------- $ 1,560
See the Financial Notes, which are integral to this information. 69 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- FINANCIALS Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000.
INVESTMENT INCOME -------------------------------------------------------------------------------- Interest $ 47,557 NET REALIZED GAINS -------------------------------------------------------------------------------- Net realized gains on investments sold 871 EXPENSES -------------------------------------------------------------------------------- Investment adviser and administrator fees 11,132 a Transfer agent and shareholder service fees: Sweep Shares 8,462 b Value Advantage Shares 2,767 b Trustees' fees 23 c Custodian and portfolio accounting fees 276 Professional fees 28 Registration fees 93 Shareholder reports 142 Other expenses + 33 ----------- Total expenses 22,956 Expense reduction - 5,074 d ----------- NET EXPENSES 17,882 INCREASE IN NET ASSETS FROM OPERATIONS -------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 47,557 NET EXPENSES - 17,882 ----------- NET INVESTMENT INCOME 29,675 NET REALIZED GAINS + 871 ----------- INCREASE IN NET ASSETS FROM OPERATIONS $ 30,546
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion, 0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of average daily net assets as follows: TRANSFER AGENT SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ---------------------------------------------------------------------------- Sweep Shares 0.25 Value Advantage Shares 0.05
SHAREHOLDER SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ---------------------------------------------------------------------------- Sweep Shares 0.20 Value Advantage Shares 0.17
c For the fund's independent trustees only. d Includes $4,510 from the investment adviser (CSIM) and $564 from the transfer agent and shareholder service agent (Schwab). These reductions reflect a guarantee by CSIM and Schwab to limit the operating expenses of this fund through at least April 30, 2003, as follows:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS ----------------------------------------------------------------------------- Sweep Shares 0.65 Value Advantage Shares 0.45
This limit doesn't include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 70 Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02 - 6/30/02 are unaudited.
OPERATIONS -------------------------------------------------------------------------------- 1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $ 29,675 $ 122,778 Net realized gains + 871 465 ---------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS 30,546 123,243 DISTRIBUTIONS PAID -------------------------------------------------------------------------------- DIVIDENDS FROM NET INVESTMENT INCOME Sweep Shares 16,266 73,669 Value Advantage Shares + 13,409 49,109 ---------------------------------- TOTAL DIVIDENDS FROM NET INVESTMENT INCOME 29,675 122,778 TRANSACTIONS IN FUND SHARES a -------------------------------------------------------------------------------- SHARES SOLD Sweep Shares 6,090,722 13,033,350 Value Advantage Shares + 1,494,933 3,316,593 ---------------------------------- TOTAL SHARES SOLD 7,585,655 16,349,943 SHARES REINVESTED Sweep Shares 14,938 72,176 Value Advantage Shares + 11,846 46,166 ---------------------------------- TOTAL SHARES REINVESTED 26,784 118,342 SHARES REDEEMED Sweep Shares 6,290,604 13,131,183 Value Advantage Shares + 1,446,897 2,970,370 ---------------------------------- TOTAL SHARES REDEEMED 7,737,501 16,101,553 NET INCREASE OR DECREASE (125,062) 366,732 b NET ASSETS -------------------------------------------------------------------------------- Beginning of period 6,460,181 6,092,984 Total increase or decrease + (124,191) 367,197 c ---------------------------------- END OF PERIOD $ 6,335,990 $ 6,460,181
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents shares sold plus shares reinvested, minus shares redeemed. c Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 71 SCHWAB NEW YORK MUNICIPAL MONEY FUND [PHOTO OF KEVIN SHAUGHNESSY] KEVIN SHAUGHNESSY, a portfolio manager, is responsible for the day-to-day management of the fund. Prior to joining the firm in 2000, he worked for more than ten years in fixed income portfolio management. This fund may be appropriate for New York taxpayers, especially those in higher tax brackets who are seeking triple tax-exempt income. TICKER SYMBOLS SWEEP SHARES SWNXX VALUE ADVANTAGE SHARES SWYXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND THAT IS EXEMPT FROM FEDERAL AND NEW YORK STATE AND LOCAL PERSONAL INCOME TAX. MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. Stronger-than-expected economic figures released in March caused an increase in rates. During this time, we added to our positions in fixed-rate securities, which offered higher yields. This allowed us to maintain a neutral to slightly longer maturity versus our peer group. The longer maturity helped the fund's performance when yields fell once again during the second quarter as the strength of the recovery came into question. NEW YORK STATE ENDED FISCAL 2002 (ON MARCH 30) WITH A $1 BILLION SURPLUS. In early June, the state passed a budget that projects a surplus for fiscal 2003 of $716 million, or 1.8% of expenditures. As with other states that are highly dependent on income from capital gains and stock options, New York's personal income tax collections have been significantly affected by economic and financial declines. Fiscal 2002 collections were $1 billion lower than projected, and fiscal 2003 receipts are expected to be $2.5 billion below 2002. A number of upstate municipalities are in significant financial difficulty, and the state's $1 billion cut in grants to local governments will further exacerbate those problems. Furthermore, New York City continues to struggle with costs and lost revenues associated with the events of September 11. In spite of these difficulties, the state is a solid investment-grade credit, with general obligation ratings of A2, AA/negative outlook and AA from Moody's, Standard & Poor's and Fitch, respectively. 72 PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results.
VALUE SWEEP ADVANTAGE SHARES SHARES -------------------------------------------------------------------------------- Seven-Day Yield 0.77% 1.01% -------------------------------------------------------------------------------- Seven-Day Effective Yield 0.77% 1.01% -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.40% 1.84% --------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH]
NY Municipal Money Fund 31-Dec-01 46 31-Jan-02 38 28-Feb-02 44 31-Mar-02 47 30-Apr-02 50 31-May-02 41 30-Jun-02 57
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 96.4% New York 2. 3.6% Puerto Rico
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, Sweep Shares' and Value Advantage Shares' seven-day yields would have been 0.60% and 0.83%, the seven-day effective yields would have been 0.60% and 0.83% and the seven-day taxable-equivalent effective yields would have been 1.09% and 1.51%, respectively. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum combined federal regular income and New York state and New York City personal income tax rate of 45.05%. 73 SCHWAB NEW YORK MUNICIPAL MONEY FUND -- FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- SWEEP SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ------------------------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) ------------------------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 -------------------------------------------------------------------------- Income from investment operations: Net investment income 0.00 4 0.02 0.03 0.03 0.03 0.03 -------------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.00) 4 (0.02) (0.03) (0.03) (0.03) (0.03) -------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 ========================================================================== Total return (%) 0.41 2 2.06 3.39 2.59 2.78 2.96 RATIOS/SUPPLEMENTAL DATA (%) ------------------------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.69 1 0.69 0.69 3 0.69 0.69 0.69 3 Expense reductions reflected in above ratio 0.16 1 0.17 0.18 0.22 0.28 0.33 Ratio of net investment income to average net assets 0.83 1 2.04 3.35 2.57 2.73 2.93 Net assets, end of period ($ x 1,000,000) 900 889 798 604 468 357
1 Annualized. 2 Not annualized. 3 Would have been 0.70% if certain non-routine expenses (proxy fees) had been included. 4 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 74
1/1/02- 1/1/01- 1/1/00- 1/1/99- 1/1/98- 1/1/97- VALUE ADVANTAGE SHARES 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ------------------------------------------------------------------------------------------------------------------------ PER-SHARE DATA ($) ------------------------------------------------------------------------------------------------------------------------ Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 ------------------------------------------------------------------------- Income from investment operations: Net investment income 0.01 0.02 0.04 0.03 0.03 0.03 ------------------------------------------------------------------------- Less distributions: Dividends from net investment income (0.01) (0.02) (0.04) (0.03) (0.03) (0.03) ------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 ========================================================================= Total return (%) 0.53 2 2.30 3.64 2.83 3.03 3.21 RATIOS/SUPPLEMENTAL DATA (%) ------------------------------------------------------------------------------------------------------------------------ Ratio of net operating expenses to average net assets 0.45 1 0.45 0.45 3 0.45 0.45 0.45 3 Expense reductions reflected in above ratio 0.17 1 0.19 0.22 0.26 0.33 0.40 Ratio of net investment income to average net assets 1.08 1 2.23 3.59 2.81 2.96 3.18 Net assets, end of period ($ x 1,000,000) 635 604 419 296 238 126
1 Annualized. 2 Not annualized. 3 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included. See the Financial Notes, which are integral to this information. 75 SCHWAB NEW YORK MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security = Delayed-delivery security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $1,599,976 Cost: $1,599,976 ----------------------------------- 100.0% TOTAL INVESTMENTS Market Value: $1,599,976 Cost: $1,599,976
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) MUNICIPAL SECURITIES 100.0% of investments NEW YORK 96.4% +@ ALBANY, NEW YORK INDUSTRIAL DEVELOPMENT AGENCY IDRB (Newkirk Products Project) Series 1995A 1.30%, 07/07/02 1,000 1,000 IDRB (United Cerebral Palsy Project) Series B 1.20%, 07/07/02 11,455 11,455 +@ BABYLON, NEW YORK IDA Resource Recovery (Ogden Martin Project) Series 1998 1.35%, 07/07/02 5,000 5,000 +@ CHAUTAQUA COUNTY, NEW YORK IDA Civic Facilities RB (Jamestown Center City Development Project) Series 2000A 1.25%, 07/07/02 4,950 4,950 +@ CHENANGO COUNTY, NEW YORK IDA IDRB (Baille Lumber Project) Series 2000A 1.40%, 07/07/02 5,151 5,151 +@ DUTCHESS COUNTY, NEW YORK IDA IDRB (Mechtroncis Corp. Project) Series 1998 1.35%, 07/07/02 3,225 3,225 IDRB (Trinity Pawling School Corp. Project) 1.20%, 07/07/02 3,175 3,175 EAST MEADOW, NEW YORK UNION FREE SCHOOL DISTRICT BAN 2.54%, 08/23/02 13,000 13,011 +@ HERKIMER COUNTY, NEW YORK IDA Civic Facilities RB (Templeton Foundation Project) 1.35%, 07/07/02 2,100 2,100 +@ JAY STREET DEVELOPMENT CORP., NEW YORK Lease RB (Jay Street Project) Series A-1 1.10%, 07/07/02 3,200 3,200 1.15%, 07/07/02 13,600 13,600
See the Financial Notes, which are integral to this information. 76
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) LONG ISLAND, NEW YORK POWER AUTHORITY +@ Electric System RB Subseries 1B 1.85%, 07/01/02 18,000 18,000 +@ Electric System RB Subseries 2A 1.10%, 07/07/02 7,300 7,300 +@ Electric System RB Subseries 3A 1.13%, 07/07/02 13,000 13,000 +@ Electric System RB TOB Series 1998A 1.18%, 07/07/02 1,900 1,900 +@ Electric System RB TOB Series 338 1.18%, 07/07/02 2,400 2,400 +@ Electric System RB TOBP (PA 824) 1.21%, 07/07/02 4,365 4,365 +@ Electric System RB TOBP (PA-522) 1.21%, 07/07/02 21,000 21,000 +@ Electric System RB TOBP (PA-565) 1.21%, 07/07/02 10,000 10,000 TECP 1.60%, 07/03/02 14,000 14,000 METROPOLITAN NEW YORK TRANSPORTATION AUTHORITY +@ RB TOB Series 665 1.18%, 07/07/02 10,000 10,000 +o RB TOBP (PA-1031-R) 1.32%, 02/27/03 19,995 19,995 +@ Revenue Refunding TOB Series 2002D-1 1.10%, 07/07/02 10,000 10,000 +@ Revenue Refunding TOB Series 2002D-2 1.10%, 07/07/02 10,000 10,000 +@ Service Contract RB TOB Series 678 1.23%, 07/07/02 19,000 19,000 TECP 1.40%, 09/12/02 25,000 25,000 +@ MONROE COUNTY, NEW YORK IDRB (ENBI Corp. Lease Rent Project) Series 1988 1.30%, 07/07/02 2,000 2,000 NASSAU COUNTY, NEW YORK GO Series A 2.70%, 07/01/02 4,895 4,895 NASSAU COUNTY, NEW YORK INTERIM FINANCE AUTHORITY BAN Series 2001B-2 1.55%, 09/12/02 25,000 25,047 = BAN Series 2002A-1 1.40%, 03/13/03 34,000 34,375 +@ NEW YORK CITY, NEW YORK GO Series 1992D 1.15%, 07/07/02 4,300 4,300 GO Subseries 1993A-7 1.75%, 07/01/02 5,900 5,900 GO Subseries A-8 1.10%, 07/07/02 5,000 5,000 GO Subseries H-2 1.75%, 07/01/02 11,500 11,500 GO Subseries H-3 1.70%, 07/01/02 5,900 5,900 GO TOB (CoreStates Merlot Program Project) Series 1997C 1.27%, 07/07/02 26,000 26,000 GO TOB Series 394 1.18%, 07/07/02 6,920 6,920 GO TOB Series F 1.18%, 07/07/02 3,395 3,395 M/F Rental Housing RB (Tribeca Tower Project) Series 1997A 1.15%, 07/07/02 2,300 2,300 +@ NEW YORK CITY, NEW YORK HEALTH & HOSPITAL CORP. RB TOBP (PA-555) 1.19%, 07/07/02 17,620 17,620 +@ NEW YORK CITY, NEW YORK HOUSING DEVELOPMENT CORP. M/F Housing RB (100 Jane Street Development Project) Series A 1.20%, 07/07/02 6,525 6,525 M/F Housing RB (15th Street Development Project) 1.20%, 07/07/02 3,700 3,700 M/F Housing RB (One Columbus Project) Series A 1.20%, 07/07/02 20,700 20,700 M/F Rental Housing RB (Lyric Development Project) Series 2001A 1.15%, 07/07/02 5,000 5,000 +@ NEW YORK CITY, NEW YORK IDA Civic Facility RB (Jewish Board of Family Services Project) 1.23%, 07/07/02 15,820 15,820 RB TOBP (PT-459) 1.23%, 07/07/02 4,265 4,265 Special Facility RB (Korean Airlines Co. Project) Series 1997A 1.25%, 07/07/02 7,400 7,400
See the Financial Notes, which are integral to this information. 77 SCHWAB NEW YORK MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) NEW YORK CITY, NEW YORK MASS TRANSIT AUTHORITY TECP 1.35%, 08/30/02 9,000 9,000 1.40%, 09/09/02 2,000 2,000 +@ NEW YORK CITY, NEW YORK MUNICIPAL FINANCING AUTHORITY Water & Sewer System RB TOB 1.19%, 07/07/02 4,995 4,995 NEW YORK CITY, NEW YORK MUNICIPAL WATER TECP 1.35%, 09/09/02 45,000 45,000 1.40%, 09/26/02 19,000 19,000 +@ NEW YORK CITY, NEW YORK MUNICIPAL WATER FINANCE AUTHORITY Water & Sewer System Revenue TOBP (PA-492) 1.18%, 07/07/02 3,250 3,250 Water & Sewer System Revenue TOBP (PA-523) Series 1999B 1.19%, 07/07/02 4,735 4,735 Water & Sewer System Revenue TOBP (PA-838) 1.20%, 07/07/02 4,995 4,995 + NEW YORK CITY, NEW YORK TRANSIT @ Cultural Resources RB (American Museum of Natural History Project) Series 1993A 1.10%, 07/07/02 5,285 5,285 Cultural Resources RB (American Museum of Natural History Project) Series 1999B 2.60%, 07/01/02 8,000 8,000 NEW YORK CITY, NEW YORK TRANSITIONAL FINANCE AUTHORITY BAN (New York City Recovery Notes) Series 2001A 1.35%, 10/02/02 12,845 12,906 2.13%, 10/02/02 15,000 15,042 BAN Series 2002-4 2.10%, 02/26/03 25,000 25,063 BAN Series 3 1.59%, 11/13/02 9,000 9,037 +@ RB (Future Tax Secured Project) Series 2001B 1.80%, 07/01/02 2,100 2,100 o RB TOBP (PA-917) 2.15%, 07/18/02 14,545 14,545 +@ TOB 1.18%, 07/07/02 15,720 15,720 BAN Series 2002-4 1.90%, 02/26/03 10,000 10,038 + NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP. o TOB Series 2000-23 1.90%, 09/25/02 20,965 20,965 o TOB Series 468X 1.65%, 07/07/02 9,995 9,995 NEW YORK STATE +@ Environmental Pollution Control RB TOB Series 1994D 1.18%, 07/07/02 17,050 17,050 GO Series A 1.35%, 10/10/02 21,150 21,150 + NEW YORK STATE DORMITORY AUTHORITY @ Lease RB TOB Series 493 1.18%, 07/07/02 2,180 2,180 @ RB (New York Foundling Charitable Corp. Project) 1.20%, 07/07/02 4,760 4,760 o RB Putters TOB Series 107 1.70%, 03/06/03 11,625 11,625 o RB TOB Series 2000-15, 2.65, 08/07/02 27,030 27,030 @ RB TOB Series 2001D 1.32%, 07/07/02 2,900 2,900 @ TOB 1.18%, 07/07/02 12,375 12,375 +@ NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY Facility RB (Con Edison Co. Project) Subseries A-1 1.30%, 07/07/02 5,000 5,000 Facility RB (Con Edison Co. Project) Subseries A-2 1.20%, 07/07/02 5,000 5,000 Facility RB (Con Edison Co. Project) Subseries A-3 1.20%, 07/07/02 4,000 4,000 Gas Facilities RB TOB Series 379 1.18%, 07/07/02 14,125 14,125 TOB (Eagle Trust) Series 1994A 1.18%, 07/07/02 14,850 14,850 NEW YORK STATE ENVIRONMENTAL TECP 1.30%, 08/07/02 20,000 20,000 1.30%, 09/04/02 25,900 25,900
See the Financial Notes, which are integral to this information. 78
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ NEW YORK STATE ENVIRONMENTAL FACILITIES CORP. TOB (Eagle Trust) 1.18%, 07/07/02 24,225 24,225 +@ NEW YORK STATE HFA Housing RB (345 East 94th Street Housing Project) 1.20%, 07/07/02 18,400 18,400 1.20%, 07/07/02 3,800 3,800 Housing RB (East 84th Street Project) Series 1995A 1.15%, 07/07/02 1,500 1,500 Housing RB (Union Square South Housing Project) 1.15%, 07/07/02 15,400 15,400 Housing RB (Worth Street Housing Project) Series A 1.25%, 07/07/02 10,000 10,000 M/F Housing RB Series 1999A 1.20%, 07/07/02 17,500 17,500 RB (101 West End Project) 1.20%, 07/07/02 14,400 14,400 1.20%, 07/07/02 10,600 10,600 RB (350 West 43rd Street Housing Project) Series A 1.20%, 07/07/02 10,000 10,000 RB (66 West 38th Street Project) Series A 1.40%, 07/07/02 11,400 11,400 RB (70 Battery Place Project) Series 1999A 1.20%, 07/07/02 8,500 8,500 RB (Chelsea Arms Housing Project) Series 1998A 1.20%, 07/07/02 18,000 18,000 RB (Tribeca Landing) Series 1997A 1.15%, 07/07/02 4,500 4,500 1.20%, 07/07/02 13,000 13,000 RB (West 20th Street Project) Series 2001A 1.23%, 07/07/02 30,600 30,600 RB (West 38th Street Project) Series 2001A 1.25%, 07/07/02 5,200 5,200 RB Series 1997A 1.15%, 07/07/02 34,300 34,300 Service Contract Obligation RB Series 2001A 1.15%, 07/07/02 5,000 5,000 +@ NEW YORK STATE LOCAL GOVERNMENT ASSISTANCE CORP. RB Series 1994B 1.10%, 07/07/02 2,500 2,500 RB Series 1995D 1.15%, 07/07/02 7,700 7,700 RB Series 1995G 1.10%, 07/07/02 2,000 2,000 TOB 1.18%, 07/07/02 9,900 9,900 +@ NEW YORK STATE MEDICAL CARE FACILITIES FINANCING AGENCY RB (Pooled Equipment Loan Program 1) 1.30%, 07/07/02 2,400 2,400 +@ NEW YORK STATE MEDICAL CARE FACILITY TOBP (PT-154) 1.19%, 07/07/02 3,175 3,175 + NEW YORK STATE MORTGAGE AGENCY @ RB TOB (Homeowners Mortgage) Series 77-A 1.32%, 07/07/02 10,835 10,835 @ RB TOB Series B3 1.47%, 07/07/02 4,800 4,800 o RB TOBP (PA-153C) 1.70%, 11/14/02 4,640 4,640 o RB TOBP (PA-627R) 1.70%, 11/14/02 13,995 13,995 o RB TOBP (PA-628R) 2.75%, 11/14/02 5,335 5,335 @ RB TOBP (PA-907) 1.23%, 07/07/02 5,495 5,495 @ RB TOBP (PT-260) 1.23%, 07/07/02 6,845 6,845 o RB TOBP (PT-289) 1.95%, 07/07/02 6,760 6,760 @ TOB Series 1999F 1.32%, 07/07/02 24,795 24,795 NEW YORK STATE POWER AUTHORITY +@ RB Series 5 1.10%, 07/07/02 11,900 11,900 TECP 1.45%, 08/07/02 10,200 10,200 +@ NEW YORK STATE THRUWAY AUTHORITY General Revenue TOB Series 456 1.18%, 07/07/02 6,995 6,995 Service Contract RB (Roc-R-142) Series II 1.18%, 07/07/02 4,995 4,995 NEW YORK STATE TOLLWAY AUTHORITY General Revenue BAN Series 2002A 2.20%, 03/26/03 33,445 33,698 RB (Highway & Bridge Trust Fund) Series 2002B 1.49%, 04/01/03 8,635 8,729
See the Financial Notes, which are integral to this information. 79 SCHWAB NEW YORK MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ NEW YORK STATE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY RB Series 1999C 1.10%, 07/07/02 28,350 28,350 Special Obligation RB Series C 1.15%, 07/07/02 13,400 13,400 +@ NIAGARA COUNTY, NEW YORK IDRB (Allegheny Ludlum Steel Co. Project) Series 1984 1.30%, 07/07/02 10,000 10,000 = NORTH BABYLON, NEW YORK UNION FREE SCHOOL DISTRICT TAN 1.63%, 06/26/03 14,300 14,418 OCEANSIDE, NEW YORK UNION FREE SCHOOL DISTRICT BAN 1.63%, 06/27/03 8,000 8,068 PORT AUTHORITY OF NEW YORK & NEW JERSEY +o RB TOB Putters Series 243 1.45%, 08/29/02 9,930 9,930 TECP 1.67%, 07/11/02 18,000 18,000 1.60%, 08/09/02 6,160 6,160 1.45%, 08/13/02 10,150 10,150 +@ POUGHKEEPSIE, NEW YORK IDA IDRB (Eastman & Bixby Project) Series 2000B 1.20%, 07/07/02 3,000 3,000 +@ SCHENECTADY, NEW YORK IDRB (Fortitech Holding Corp. Project) Series 1995A 1.30%, 07/07/02 1,000 1,000 + SUFFOLK COUNTY, NEW YORK BAN 1.79%, 05/14/03 11,940 12,038 +@ TOMPKINS COUNTY, NEW YORK IDA RB (Civic Facility Cornell) Series 2002A 1.15%, 07/07/02 6,555 6,555 RB (Civic Facility Cornell) Series 2002B 1.15%, 07/07/02 7,000 7,000 +@ TRIBOROUGH, NEW YORK BRIDGE & TUNNEL AUTHORITY General Purpose RB Series C 1.10%, 07/07/02 12,500 12,500 Special Obligation Refunding Bond Series 2000A 1.15%, 07/07/02 6,250 6,250 = WEST GENESEE CENTRAL, NEW YORK SCHOOL DISTRICT BAN 1.60%, 07/11/03 13,935 14,075 +@ WESTCHESTER COUNTY, NEW YORK IDA IDRB (Levister Redevelopment Co., LLC) Series A 1.20%, 07/07/02 7,000 7,000 IDRB (Levister Redevelopment Co., LLC) Series B 1.20%, 07/07/02 6,000 6,000 +@ YONKERS, NEW YORK CIVIC FACILITIES IDRB (Consumers Union Facility Project) Series 1989 1.15%, 07/07/02 1,300 1,300 IDRB (Consumers Union Facility Project) Series 1991 1.15%, 07/07/02 700 700 IDRB (Consumers Union Facility Project) Series 1994 1.15%, 07/07/02 1,740 1,740 --------- 1,541,656 PUERTO RICO 3.6% + PUERTO RICO COMMONWEALTH GO 1.50%, 07/01/02 10,660 10,820 @ Public Improvement TOB Series 2001R 1.30%, 07/07/02 5,600 5,600 @ Public Improvement TOB Series 3 1.13%, 07/07/02 7,500 7,500 +@ PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY Transportation RB Series 1998A 1.10%, 07/07/02 3,100 3,100 PUERTO RICO GOVERNMENT DEVELOPMENT BANK TECP 1.55%, 08/01/02 11,000 11,000 1.35%, 09/20/02 10,400 10,400 +o PUERTO RICO HOUSING FINANCE CORP. RB TOB Series J 1.85%, 10/03/02 9,900 9,900 --------- 58,320
END OF PORTFOLIO HOLDINGS. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 80 Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV. ASSETS --------------------------------------------------------------------- Investments, at market value $1,599,976 a Cash 321 Receivables: Fund shares sold 4,152 Interest 5,590 Prepaid expenses + 20 ------------- TOTAL ASSETS 1,610,059 LIABILITIES --------------------------------------------------------------------- Payables: Fund shares redeemed 3,173 Dividends to shareholders 493 Investment bought 71,616 Investment adviser and administrator fees 26 Transfer agent and shareholder service fees 44 Accrued expenses + 69 ------------- TOTAL LIABILITIES 75,421 NET ASSETS --------------------------------------------------------------------- TOTAL ASSETS 1,610,059 TOTAL LIABILITIES - 75,421 ------------- NET ASSETS $1,534,638 NET ASSETS BY SOURCE Capital received from investors 1,534,933 Net realized capital losses (295)
NET ASSETS BY SHARE CLASS
SHARES SHARE CLASS NET ASSETS / OUTSTANDING = NAV Sweep Shares $899,863 900,114 $1.00 Value Advantage Shares $634,775 634,882 $1.00
a Includes illiquid restricted securities worth $154,715, or 9.67% of the fund's investments. The amortized cost for the fund's securities was $1,599,976. During the reporting period, the fund had $367,615 in transactions with other SchwabFunds(R). FEDERAL TAX DATA COST BASIS OF PORTFOLIO $1,599,992 UNUSED CAPITAL LOSSES: Expires 12/31 of: Loss amount: 2003 $6 2004 9 2006 6 2007 53 2008 186 2009 + 43 ----------- $303
See the Financial Notes, which are integral to this information. 81 SCHWAB NEW YORK MUNICIPAL MONEY FUND -- FINANCIALS Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000. INVESTMENT INCOME --------------------------------------------------------------------- Interest $ 11,846 NET REALIZED GAINS --------------------------------------------------------------------- Net realized gains on investments sold 20 EXPENSES --------------------------------------------------------------------- Investment adviser and administrator fees 2,869 a Transfer agent and shareholder service fees: Sweep Shares 2,060 b Value Advantage Shares 703 b Trustees' fees 13 c Custodian and portfolio accounting fees 144 Professional fees 20 Registration fees 6 Shareholder reports 45 Other expenses + 9 ------------- Total expenses 5,869 Expense reduction - 1,274 d ------------- NET EXPENSES 4,595 INCREASE IN NET ASSETS FROM OPERATIONS --------------------------------------------------------------------- TOTAL INVESTMENT INCOME 11,846 NET EXPENSES - 4,595 ------------- NET INVESTMENT INCOME 7,251 NET REALIZED GAINS + 20 ------------- INCREASE IN NET ASSETS FROM OPERATIONS $ 7,271
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion, 0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of aver- age daily net assets as follows: TRANSFER AGENT SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS -------------------------------------------- Sweep Shares 0.25 Value Advantage Shares 0.05
SHAREHOLDER SERVICES:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS -------------------------------------------- Sweep Shares 0.20 Value Advantage Shares 0.17
c For the fund's independent trustees only. d Includes $1,242 from the investment adviser (CSIM) and $32 from the transfer agent and shareholder service agent (Schwab). These reductions reflect a guarantee by CSIM and Schwab to limit the operating expenses of this fund through at least April 30, 2003, as follows:
% OF AVERAGE SHARE CLASS DAILY NET ASSETS -------------------------------------------- Sweep Shares 0.69 Value Advantage Shares 0.45
This limit doesn't include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 82 Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02-6/30/02 are unaudited. OPERATIONS -------------------------------------------------------------------------------
1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $7,251 $29,627 Net realized gains or losses + 20 (54) -------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS 7,271 29,573 DISTRIBUTIONS PAID ------------------------------------------------------------------------------ DIVIDENDS FROM NET INVESTMENT INCOME Sweep Shares 3,819 17,301 Value Advantage Shares + 3,432 12,326 -------------------------------- TOTAL DIVIDENDS FROM NET INVESTMENT INCOME 7,251 29,627 TRANSACTIONS IN FUND SHARES a ------------------------------------------------------------------------------ SHARES SOLD Sweep Shares 1,507,536 2,857,059 Value Advantage Shares + 372,094 720,805 -------------------------------- TOTAL SHARES SOLD 1,879,630 3,577,864 SHARES REINVESTED Sweep Shares 3,484 16,899 Value Advantage Shares + 3,036 11,690 -------------------------------- TOTAL SHARES REINVESTED 6,520 28,589 SHARES REDEEMED Sweep Shares 1,500,030 2,782,798 Value Advantage Shares + 344,111 547,669 -------------------------------- TOTAL SHARES REDEEMED 1,844,141 3,330,467 NET INCREASE 42,009 275,986 b NET ASSETS ------------------------------------------------------------------------------ Beginning of period 1,492,609 1,216,677 Total increase + 42,029 275,932 c -------------------------------- END OF PERIOD $1,534,638 $1,492,609
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents shares sold plus shares reinvested, minus shares redeemed. c Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 83 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND [PHOTO OF KEVIN SHAUGHNESSY] KEVIN SHAUGHNESSY, a portfolio manager, is responsible for the day-to-day management of the fund. Prior to joining the firm in 2000, he worked for more than ten years in fixed income portfolio management. This fund may be appropriate for New Jersey taxpayers, especially those in higher tax brackets who are seeking double tax exempt income. TICKER SYMBOL SWJXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND THAT IS EXEMPT FROM FEDERAL AND NEW JERSEY PERSONAL INCOME TAX. MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. Stronger-than-expected economic figures released in March caused an increase in rates. During this time, we added to our positions in fixed-rate securities, which offered higher yields. This allowed us to maintain a neutral to slightly longer maturity versus our peer group. The longer maturity helped the fund's performance when yields fell once again during the second quarter as the strength of the recovery came into question. NEW JERSEY'S REVENUES FROM SALES AND INCOME TAXES WERE DOWN SUBSTANTIALLY IN FISCAL 2002, AS A RESULT OF THE EVENTS OF 9/11 AND DECLINES IN THE STOCK MARKET, which lowered revenues from capital gains and stock options. Consequently, the state ended fiscal 2002 (on June 30) with a general fund balance of only $100 million, or about 0.4% of expenditures, and began fiscal 2003 projecting a $6.1 billion deficit for the year. The state's budget addresses this deficit by selling tobacco bonds and restructuring corporate income taxes. In the second half of the report period, rating agencies lowered the state's bond ratings. However, with the diversity of its economy as well as its revenue raising ability, New Jersey is a strong investment grade credit, with general obligation ratings of Aa2/negative outlook, AA and AA from Moody's, Standard & Poor's and Fitch, respectively. 84 PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results. ----------------------------------------------------------- Seven-Day Yield 0.83% ----------------------------------------------------------- Seven-Day Effective Yield 0.83% ----------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.44% -----------------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH]
NJ Municipal Money Fund 31-Dec-01 45 31-Jan-02 47 28-Feb-02 41 31-Mar-02 43 30-Apr-02 51 31-May-02 40 30-Jun-02 49
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 87.7% New Jersey 2. 9.3% Puerto Rico 3. 3.0% Pennsylvania
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the funds's seven-day yield would have been 0.58%, the seven-day effective yield would have been 0.58% and the seven-day taxable-equivalent effective yield would have been 1.01%. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum combined federal regular income and New Jersey state personal income tax rate of 42.51%. 85 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND -- FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 2/2/98 4- 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 --------------------------------------------------------------------------------------------------------- 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 0.00 5 0.02 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.00) 5 (0.02) (0.03) (0.03) (0.03) ---------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 ========================================================== Total return (%) 0.43 2 2.13 3.38 2.58 2.60 2 RATIOS/SUPPLEMENTAL DATA (%) --------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.65 1 0.65 0.65 3 0.65 0.65 1 Expense reductions reflected in above ratio 0.24 1 0.25 0.27 0.29 0.48 1 Ratio of net investment income to average net assets 0.87 1 2.08 3.35 2.60 2.75 1 Net assets, end of period ($ x 1,000,000) 405 382 321 206 98
1 Annualized. 2 Not annualized. 3 Would have been 0.66% if certain non-routine expenses (proxy fees) had been included. 4 Commencement of operations. 5 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 86 PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $403,304 Cost: $403,304 ------------------------------ 100.0% TOTAL INVESTMENTS Market Value: $403,304 Cost: $403,304
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) MUNICIPAL SECURITIES 100.0% of investments -------------------------------------------------------------------------------- NEW JERSEY 87.7% BERGEN COUNTY, NEW JERSEY General Improvement GO 2.57%, 07/15/02 1,800 1,801 Special Services GO (Vocational School Project) 2.57%, 07/15/02 400 400 +@ CAMDEN COUNTY, NEW JERSEY IMPROVEMENT AUTHORITY RB (Harvest Village Project) Series 1999A 1.85%, 07/01/02 1,900 1,900 EAST BRUNSWICK TOWNSHIP, NEW JERSEY BAN 2.65%, 07/26/02 7,000 7,003 2.05%, 03/19/03 7,400 7,449 ESSEX COUNTY, NEW JERSEY General Improvement GO 1.83%, 06/01/03 1,400 1,430 +@ ESSEX COUNTY, NEW JERSEY IMPROVEMENT AUTHORITY Lease Revenue TOBP (PA-648) 1.13%, 07/07/02 5,995 5,995 +@ ESSEX COUNTY, NEW JERSEY PUBLIC IMPROVEMENT AUTHORITY RB (County Asset Sale Project) Series 1995 1.20%, 07/07/02 1,000 1,000 MONMOUTH COUNTY, NEW JERSEY General Improvement GO 2.60%, 07/15/02 1,055 1,055 MONMOUTH COUNTY, NEW JERSEY COUNTY COLLEGE GO 2.60%, 07/15/02 600 600 +@ MONMOUTH COUNTY, NEW JERSEY IMPROVEMENT AUTHORITY RB (Pooled Government Loan Program) 1.05%, 07/07/02 9,500 9,500 MONTCLAIR, NEW JERSEY BAN 2.14%, 04/11/03 11,694 11,771 NEW BRUNSWICK, NEW JERSEY BAN 2.63%, 08/21/02 10,000 10,008
See the Financial Notes, which are integral to this information. 87 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY + Market Transition Facility RB Series 1994A 2.70%, 07/01/02 1,120 1,120 + Municipal Loan Pool RB 2.25%, 09/15/02 900 902 +@ Natural Gas Facilities RB TOB (Nui Corp. Project) Series 161 1.23%, 07/07/02 1,525 1,525 +@ Natural Gas Facilities RB TOB Series 371 1.18%, 07/07/02 3,000 3,000 +@ Natural Gas Facilities Revenue Refunding Bond (New Jersey Natural Gas Co.) Series 1998B 1.15%, 07/07/02 1,400 1,400 +@ RB (500 International Partners Project) 1.20%, 07/07/02 5,800 5,800 +@ RB (Catholic Community Services Project) 1.15%, 07/07/02 4,895 4,895 +@ RB (Geriatric Services Housing Corp. Project) 1.15%, 07/07/02 7,735 7,735 +@ RB (Graphic Management, Inc. Project) 1.15%, 07/07/02 5,465 5,465 +@ RB (Hamilton Industrial Development Project) Series 1998 1.30%, 07/07/02 6,480 6,480 +@ RB (Jewish Home Rockleigh Project) Series 1998A 1.30%, 07/07/02 5,000 5,000 +@ RB (Job Haines Home Project) 1.20%, 07/07/02 3,800 3,800 +@ RB (St. James Prep & Social Service Project) Series 1998 1.20%, 07/07/02 3,240 3,240 +@ RB (Stone Brothers Secaucus Project) 1.33%, 07/07/02 1,860 1,860 +@ RB (Toys R Us, Inc. Project) Series 1984 1.65%, 07/30/02 3,000 3,000 +@ RB (Wechsler Coffee Corp. Project) Series 1998 1.35%, 07/07/02 1,025 1,025 +@ Revenue Refunding Bond (Airis Newark, LLC Project) 1.10%, 07/07/02 1,500 1,500 TECP 1.20%, 07/09/02 19,100 19,100 +@ Thermal Energy Facilities RB (Marina Energy, LLC Project) Series 2001A 1.10%, 07/07/02 1,700 1,700 +@ Thermal Energy Facilities RB (Thermal Energy, Ltd. Partnership I Project) Series 1997 1.25%, 07/07/02 4,600 4,600 +@ NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY RB (Hackettstown Community Hospital Project) 1.20%, 07/07/02 6,900 6,900 RB (Hospital Capital Asset Financing Project) Series 1985D 1.10%, 07/07/02 1,500 1,500 RB (Princeton Medical Center Project) Series 1999A-3 1.20%, 07/07/02 3,100 3,100 RB Series 2001A1 1.10%, 07/07/02 7,000 7,000 RB Series 2001A3 1.10%, 07/07/02 4,000 4,000 RB TOBP (PA-504) 1.13%, 07/07/02 6,200 6,200 Revenue Refunding Bond (Christian Health Project) Series 1998B 1.17%, 07/07/02 9,600 9,600 +@ NEW JERSEY SPORTS & EXPOSITION AUTHORITY State Contract RB Series 2002B-2 1.30%, 07/07/02 8,200 8,200 NEW JERSEY STATE Governmental GO 1.70%, 08/01/02 2,000 2,038 + NEW JERSEY STATE EDUCATIONAL FACILITIES AUTHORITY @ RB (Caldwell College) Series 2000B 1.45%, 07/07/02 2,300 2,300 RB (Seton Hall University Project) Series 2001A 2.56%, 07/01/02 2,245 2,245 + NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY Student Loan RB Series 1999B 1.75%, 06/01/03 3,500 3,500 @ NEW JERSEY STATE HOUSING & MORTGAGE FINANCE AGENCY o RB TOBP (PT-285) 1.55%, 07/11/02 14,900 14,900
See the Financial Notes, which are integral to this information. 88
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) @ RB TOBP (PT-635) 1.18%, 07/07/02 4,850 4,850 NEW JERSEY STATE TRANSPORTATION CORP +@ COP TOB Series 690 1.18%, 07/07/02 16,665 16,665 o TOB Series 148 2.00%, 10/04/02 4,100 4,100 +@ NEW JERSEY STATE TRANSPORTATION TRUST FUND AUTHORITY TOB Series 2000C 1.23%, 07/07/02 11,495 11,495 TOB Series 203 1.18%, 07/07/02 1,995 1,995 TOB Series 204 1.18%, 07/07/02 13,685 13,685 +@ NEW JERSEY STATE TURNPIKE AUTHORITY RB Series 1991D 1.10%, 07/07/02 12,900 12,900 RB TOB (Eagle Trust Project) 1.18%, 07/07/02 8,000 8,000 RB TOBP (PA-719) 1.18%, 07/07/02 5,000 5,000 + NEWARK, NEW JERSEY General Improvement GO 1.47%, 10/01/02 2,700 2,724 +@ NORTH HUDSON,NEW JERSEY SEWAGE AUTHORITY RB Series 2001B 1.10%, 07/07/02 4,000 4,000 PORT AUTHORITY OF NEW YORK & NEW JERSEY RB 2.70%, 07/15/02 7,850 7,857 +@ Special Obligation RB TOB Series 805 1.32%, 07/07/02 2,290 2,290 TECP 1.35%, 11/08/02 5,000 5,000 +@ TOB Series 153 1.25%, 07/07/02 370 370 +o TOBP (PA-518) 3.32%, 07/11/02 6,795 6,795 SUSSEX COUNTY, NEW JERSEY BAN 1.79%, 06/06/03 6,596 6,654 +@ TRENTON, NEW JERSEY PARKING AUTHORITY Putters RB TOB Series 221 1.20%, 07/07/02 4,320 4,320 +@ UNION COUNTY, NEW JERSEY IMPROVEMENT AUTHORITY RB (Cedar Glen Housing Corp.) Series 2001A 1.10%, 07/07/02 6,500 6,500 +@ UNIVERSITY MEDICINE & DENTISTRY OF NEW JERSEY RB Series 2002B 1.23%, 07/07/02 7,000 7,000 WOODBRIDGE TOWNSHIP, NEW JERSEY BAN 1.52%, 07/08/03 7,000 7,068 ------- 353,810 PENNSYLVANIA 3.0% +@ DELAWARE RIVER PORT AUTHORITY OF PENNSYLVANIA & NEW JERSEY RB TOBP (PA-606) 1.18%, 07/07/02 10,250 10,250 RB TOBP (PA-611) 1.18%, 07/07/02 1,695 1,695 ------- 11,945 PUERTO RICO 9.3% +@ PUERTO RICO COMMONWEALTH Public Improvement TOB Series 2001A 1.30%, 07/07/02 1,700 1,700 Public Improvement TOB Series 3 1.13%, 07/07/02 7,000 7,000 Unlimited GO Series 2001II-R-124 1.33%, 07/07/02 100 100 +o PUERTO RICO ELECTRIC POWER AUTHORITY RB TOB Putters Series 164 1.55%, 11/21/02 13,000 13,000 PUERTO RICO GOVERNMENT DEVELOPMENT BANK TECP 1.55%, 08/01/02 3,000 3,000 1.60%, 08/21/02 3,999 3,999 1.35%, 09/20/02 8,750 8,750 ------- 37,549
END OF PORTFOLIO HOLDINGS. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 89 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND -- FINANCIALS Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV. ASSETS ----------------------------------------------------------------------------- Investments, at market value $403,304 a Cash 322 Receivables: Interest receivable 1,846 Investments sold 11,312 Prepaid expenses + 11 ----------- TOTAL ASSETS 416,795 LIABILITIES ----------------------------------------------------------------------------- Payables: Dividends to shareholders 121 Investments bought 12,067 Investment adviser and administrator fees 5 Transfer agent and shareholder service fees 15 Accrued expenses + 35 ----------- TOTAL LIABILITIES 12,243 NET ASSETS ----------------------------------------------------------------------------- TOTAL ASSETS 416,795 TOTAL LIABILITIES - 12,243 ----------- NET ASSETS $404,552 NET ASSETS BY SOURCE Capital received from investors 404,540 Net realized capital gains 12
NET ASSET VALUE (NAV) SHARES NET ASSETS / OUTSTANDING = NAV $404,552 404,576 $1.00 a Includes illiquid restricted securities worth $38,795, or 9.62% of the fund's investments. The amortized cost for the fund's securities was $403,304. During the reporting period, the fund had $334,750 in transactions with other SchwabFunds(R).
FEDERAL TAX DATA COST BASIS OF PORTFOLIO $403,304 UNUSED CAPITAL LOSSES: Expires 12/31 of: Loss amount: 2007 $ 5 2008 + 24 ----------- $ 29
See the Financial Notes, which are integral to this information. 90 Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000. INVESTMENT INCOME -------------------------------------------------------------- Interest $2,958 NET REALIZED GAINS -------------------------------------------------------------- Net realized gains on investments sold 41 EXPENSES -------------------------------------------------------------- Investment adviser and administrator fees 738 a Transfer agent and shareholder service fees 873 b Trustees' fees 13 c Custodian and portfolio accounting fees 74 Professional fees 15 Registration fees 5 Shareholder reports 11 Other expenses + 5 --------- Total expenses 1,734 Expense reduction - 472 d --------- NET EXPENSES 1,262 INCREASE IN NET ASSETS FROM OPERATIONS -------------------------------------------------------------- TOTAL INVESTMENT INCOME 2,958 NET EXPENSES - 1,262 --------- NET INVESTMENT INCOME 1,696 NET REALIZED GAINS + 41 --------- INCREASE IN NET ASSETS FROM OPERATIONS $1,737
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion, 0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of average daily net assets: for transfer agent services, 0.25% of the fund's assets; for shareholder services, 0.20% of the fund's assets. c For the fund's independent trustees only. d This reduction was made by the investment adviser (CSIM). It reflects a guarantee by CSIM and the transfer agent and shareholder service agent (Schwab) to limit the operating expenses of this fund through at least April 30, 2003 to 0.65% of average daily net assets. This limit doesn't include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 91 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND -- FINANCIALS Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02-6/30/02 are unaudited.
OPERATIONS ----------------------------------------------------------------------------- 1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $ 1,696 $ 7,456 Net realized gains + 41 9 ------------------------------ INCREASE IN NET ASSETS FROM OPERATIONS 1,737 7,465 DISTRIBUTIONS PAID ----------------------------------------------------------------------------- Dividends from net investment income $ 1,696 $ 7,456 TRANSACTIONS IN FUND SHARES a ----------------------------------------------------------------------------- Shares sold 586,576 1,155,713 Shares reinvested 1,556 7,343 Shares redeemed + (565,959) (1,101,332) ------------------------------ NET INCREASE 22,173 61,724 NET ASSETS ----------------------------------------------------------------------------- Beginning of period 382,338 320,605 Total increase + 22,214 61,733 b ------------------------------ END OF PERIOD $ 404,552 $ 382,338
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 92 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND [PHOTO OF WALTER BEVERIDGE] Walter Beveridge, a portfolio manager, has been responsible for day-to-day management of the fund since its inception in 1998. Prior to joining the firm in 1992, he worked for nearly ten years in asset management. This fund may be appropriate for Pennsylvania taxpayers, especially those in higher tax brackets who are seeking double tax-exempt income. TICKER SYMBOL SWEXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND THAT IS EXEMPT FROM FEDERAL AND PENNSYLVANIA PERSONAL INCOME TAX. MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. Stronger-than-expected economic figures released in March caused an increase in rates. During this time, we added to our positions in fixed-rate securities, which offered higher yields. This allowed us to maintain a neutral to slightly longer maturity versus our peer group. The longer maturity helped the fund's performance when yields fell once again during the second quarter as the strength of the recovery came into question. THE STATE CONTINUES TO MAINTAIN ABOVE-AVERAGE CREDIT QUALITY. This is derived from its conservative financial management, strong financial reserves, increasing economic diversification and moderate debt levels. The state has also been helped by the fact that, over the past thirty years, its economy has shifted from its traditional heavy industrial base to a more diversified economy that now resembles the employment profile of the country as a whole. The current economic slowdown is projected to produce a shortfall in budgeted revenues of about 6% for fiscal 2002 (which ended June 30). The state is expected to close this gap through a combination of reducing expenditures, making interfund transfers and taking money out of the "rainy day" fund that the state has been maintaining for situations such as the present one where a budget deficit is projected. Pennsylvania's general obligations ratings are Aa2, AA and AA by Moody's, Standard & Poor's and Fitch, respectively. 93 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results. ---------------------------------------------------------- Seven-Day Yield 0.82% ---------------------------------------------------------- Seven-Day Effective Yield 0.82% ---------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.37% ----------------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH]
Pennsylvania Municipal Money Fund 31-Dec-01 27 31-Jan-02 39 28-Feb-02 38 31-Mar-02 34 30-Apr-02 27 31-May-02 43 30-Jun-02 54
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 98.1% Pennsylvania 2. 1.9% Puerto Rico
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's seven-day yield would have been 0.56%, the seven-day effective yield would have been 0.56% and the seven-day taxable-equivalent effective yield would have been 0.94%. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum combined federal regular income and Pennsylvania state personal income tax rate of 40.32%. 94 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND -- FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 2/2/98 4- 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 ------------------------------------------------------------------------------------------------------------------- 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 0.00 5 0.02 0.04 0.03 0.03 --------------------------------------------------------------- Less distributions: Dividends from net investment income (0.00) 5 (0.02) (0.04) (0.03) (0.03) --------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 =============================================================== Total return (%) 0.43 2 2.20 3.57 2.71 2.72 2 RATIOS/SUPPLEMENTAL DATA (%) ------------------------------------------------------------------------------------------------------------------ Ratio of net operating expenses to average net assets 0.65 1 0.65 0.65 3 0.65 0.65 1 Expense reductions reflected in above ratio 0.26 1 0.27 0.27 0.29 0.51 1 Ratio of net investment income to average net assets 0.87 1 2.14 3.52 2.68 2.85 1 Net assets, end of period ($ x 1,000,000) 278 292 225 164 122
1 Annualized. 2 Not annualized. 3 Would have been 0.66% if certain non-routine expenses (proxy fees) had been included. 4 Commencement of operations. 5 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 95 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $289,265 Cost: $289,265 ------------------------------- 100.0% TOTAL INVESTMENTS Market Value: $289,265 Cost: $289,265
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) MUNICIPAL SECURITIES 100.0% of investments ------------------------------------------------------------------------ PENNSYLVANIA 98.1% + ALLEGHENY COUNTY, PENNSYLVANIA AIRPORT AUTHORITY Airport Revenue Refunding Bond (Pittsburgh International Airport Project) Series 1997A-1 1.70%, 01/01/03 3,000 3,052 Airport Revenue Refunding Bond (Pittsburgh International Airport Project) Series 1999 1.75%, 01/01/03 2,435 2,478 +@ ALLEGHENY COUNTY, PENNSYLVANIA IDA RB (Saureisen Project) 1.50%, 07/07/02 1,300 1,300 + ALLEGHENY COUNTY, PENNSYLVANIA PORT AUTHORITY GAN 1.60%, 06/30/03 12,000 12,164 + ALLENTOWN, PENNSYLVANIA SCHOOL DISTRICT GO, Series 1999B 1.43%, 08/15/02 1,360 1,366 +@ BERKS COUNTY, PENNSYLVANIA IDA RB (Beacon Container Project) 1.45%, 07/07/02 1,730 1,730 + BLAIR COUNTY, PENNSYLVANIA CONVENTION & SPORTS FACILITIES AUTHORITY Guaranteed RB Series 2000 A 1.89%, 05/01/03 2,190 2,253 +@ BUCKS COUNTY, PENNSYLVANIA IDA RB (Klearfold Project) 1.50%, 07/07/02 4,000 4,000 RB (Schuman & Sons Project) 1.40%, 07/07/02 365 365 +@ CAMBRIA COUNTY, PENNSYLVANIA IDA Resource Recovery RB (Cambria Cogen Co. Project) 1.30%, 07/07/02 12,300 12,300
See the Financial Notes, which are integral to this information. 96
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) +@ CENTRAL BUCKS, PENNSYLVANIA SCHOOL DISTRICT GO Series 2000A 1.30%, 07/07/02 1,850 1,850 +@ CHESTER COUNTY, PENNSYLVANIA HEALTH & EDUCATION FACILITIES AUTHORITY RB (Simpson Meadows Project) Series 2000 1.35%, 07/07/02 4,000 4,000 +@ CLARION COUNTY, PENNSYLVANIA IDA Energy Development RB (Piney Creek Project) 1.30%, 07/07/02 3,400 3,400 +@ DELAWARE COUNTY, PENNSYLVANIA AUTHORITY Hospital RB (Crozer Chester Medical Center) 1.25%, 07/07/02 5,000 5,000 +@ DELAWARE COUNTY, PENNSYLVANIA IDA RB (YMCA of Philadelphia Project) Series 1999 1.35%, 07/07/02 2,190 2,190 +@ DELAWARE RIVER PORT AUTHORITY, PENNSYLVANIA & New Jersey RB Series 1999-606 1.18%, 07/07/02 6,450 6,450 +@ DELAWARE VALLEY REGIONAL FINANCIAL AUTHORITY Local Government RB Series 2002E 1.29%, 07/07/02 4,555 4,555 + ERIE, PENNSYLVANIA WATER AUTHORITY Pre-Refunded RB 1.73%, 12/01/02 715 722 Unrefunded RB 1.72%, 12/01/02 370 374 +@ LANCASTER COUNTY, PENNSYLVANIA HOSPITAL AUTHORITY RB (Brethren Village) 1.30%, 07/07/02 4,400 4,400 +@ LEBANON COUNTY, PENNSYLVANIA HEALTH FACILITIES RB (ECC Retirement Village Project 1.30%, 07/07/02 1,600 1,600 +@ MERCER COUNTY, PENNSYLVANIA GO TOB 1.31%, 07/07/02 1,300 1,300 +@ MONTGOMERY COUNTY, PENNSYLVANIA HIGHER EDUCATION & HEALTH AUTHORITY RB (Madlyn & Leonard Abramson Project) 1.35%, 07/07/02 2,000 2,000 MONTGOMERY COUNTY, PENNSYLVANIA IDA +@ Environmental Facilities RB (Lonza, Inc. Project) 1.35%, 07/07/02 7,000 7,000 TECP 1.30%, 07/08/02 3,560 3,560 +@ MONTGOMERY COUNTY, PENNSYLVANIA M/F Housing RB (Glenmore Association) Series A 1.35%, 07/07/02 500 500 +@ NORTHAMPTON COUNTY, PENNSYLVANIA GENERAL PURPOSE AUTHORITY County Agreement RB TOB 1.40%, 07/10/02 3,000 3,000 +@ Northampton County, Pennsylvania IDA RB (Binney & Smith) Series A 1.35%, 07/07/02 3,250 3,250 RB (Binney & Smith) Series B 1.35%, 07/07/02 900 900 +o NORWIN, PENNSYLVANIA SCHOOL DISTRICT GO TOB Series 2001A 1.50%, 10/23/02 8,710 8,710 +@ PENNSYLVANIA CONVENTION CENTER AUTHORITY RB TOBP (PT-1224) 1.27%, 07/07/02 6,845 6,845 +@ PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY Exempt Facilities RB (AMTRAK Project) Series 2001B 1.50%, 07/07/02 4,500 4,500 Exempt Facilities RB (Merck & Company Project) Series 2000 1.30%, 07/07/02 5,000 5,000
See the Financial Notes, which are integral to this information. 97 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ x 1,000) ($ x 1,000) Exempt Facilities RB (Merck & Company West Project) Series 2001 1.30%, 07/07/02 6,900 6,900 Exempt Facilities RB (Reliant Energy Seward Project) Series 2001A 1.45%, 07/07/02 4,000 4,000 Exempt Facilities RB (Reliant Energy Seward Project) Series 2002B 1.30%, 07/07/02 6,000 6,000 +@ PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY RB (B&W Ebensburg Project) Series 1986 1.30%, 07/07/02 7,790 7,790 RB (Piney Creek Project) Series 1986A 1.30%, 07/07/02 9,305 9,305 RB (Piney Creek Project) Series 1986C 1.30%, 07/07/02 1,155 1,155 + PENNSYLVANIA HFA o RB TOB Series 1998Y 1.60%, 11/07/02 6,000 6,000 @ S/F Mortgage RB TOBP (PT-278) Series 1999-66A 1.30%, 07/07/02 13,140 13,140 @ S/F Mortgage RB TOBP (PT-119A) Series 1997 1.27%, 07/07/02 7,136 7,136 @ TOB (PA-909) 1.30%, 07/07/02 2,000 2,000 @ TOB (PA-989R) 1.30%, 07/07/02 5,600 5,600 o TOB Series 1999U 1.42%, 07/11/02 5,000 5,000 @ TOB (Regulation D) Series L10 1.40%, 07/07/02 6,000 6,000 +@ PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY Student Loan RB Series 2000A 1.35%, 07/07/02 9,500 9,500 Student Loan RB Series 2001A 1.35%, 07/07/02 9,300 9,300 PENNSYLVANIA STATE +@ GO (Macon Trust Receipts) Series 2001F 1.45%, 07/07/02 3,575 3,575 GO 2nd Series 2000 1.78%, 10/15/02 9,850 9,947 +@ GO TOB Series 2000-3 1.33%, 07/07/02 3,700 3,700 + Refunding GO 1.37%, 09/15/02 2,000 2,015 +@ PENNSYLVANIA STATE OF COMMONWEALTH TOB Series 1997C 1.33%, 07/07/02 11,870 11,870 +@ PENNSYLVANIA STATE PUBLIC SCHOOL BUILDING AUTHORITY RB Series 1999D 1.30%, 07/07/02 400 400 +@ PHILADELPHIA, PENNSYLVANIA IDRB TOBP (PA-982) (Philadelphia Airport) Series 1998A 1.42%, 07/11/02 4,000 4,000 +@ PHILADELPHIA, PENNSYLVANIA IDA RB (Girard Estate Aramark Project) 1.35%, 07/07/02 5,300 5,300 +@ QUAKERTOWN, PENNSYLVANIA GENERAL AUTHORITY Pooled Financing Program RB Series 1998A 1.50%, 07/07/02 170 170 +@ SPRING FORD, PENNSYLVANIA AREA SCHOOL DISTRICT TOB Series 247 1.26%, 07/07/02 3,500 3,500 + TEMPLE UNIVERSITY OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION, PENNSYLVANIA University Funding Obligation RB 1.92%, 05/06/03 13,500 13,621 +@ WASHINGTON COUNTY, PENNSYLVANIA AUTHORITY RB (Girard Estate Refunding Project) Series 1999J 1.35%, 07/07/02 3,120 3,120 +@ WEST CORNWALL TOWNSHIP, PENNSYLVANIA MUNICIPAL AUTHORITY RB (Lebanon Valley Crethren Project) 1.30%, 07/07/02 1,720 1,720 ------- 283,878 PUERTO RICO 1.9% PUERTO RICO GOVERNMENT DEVELOPMENT BANK TECP 1.40%, 08/23/02 5,387 5,387
END OF PORTFOLIO HOLDINGS. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 98 Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV.
ASSETS -------------------------------------------------------------------------------- Investments, at market value $289,265 a Cash 14 Interest receivable 957 Prepaid expenses + 9 ----------- TOTAL ASSETS 290,245 LIABILITIES -------------------------------------------------------------------------------- Payables: Dividends to shareholders 85 Investments bought 12,164 Investment adviser and administrator fees 3 Transfer agent and shareholder service fees 10 Accrued expenses + 33 ----------- TOTAL LIABILITIES 12,295 NET ASSETS -------------------------------------------------------------------------------- TOTAL ASSETS 290,245 TOTAL LIABILITIES - 12,295 ----------- NET ASSETS $277,950 NET ASSETS BY SOURCE Capital received from investors 277,950 NET ASSET VALUE (NAV) SHARES NET ASSETS / OUTSTANDING = NAV $277,950 277,987 $1.00
a Includes illiquid restricted securities worth $26,710, or 9.23% of the fund's investments. The amortized cost for the fund's securities was $289,265. During the reporting period, the fund had $309,143 in transactions with other SchwabFunds(R). Federal Tax Data Cost basis of portfolio $289,265 See the Financial Notes, which are integral to this information. 99 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND -- FINANCIALS Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000. INVESTMENT INCOME ------------------------------------------------------------- Interest $2,141 EXPENSES ------------------------------------------------------------- Investment adviser and administrator fees 536 a Transfer agent and shareholder service fees 635 b Trustees' fees 12 c Custodian and portfolio accounting fees 64 Professional fees 15 Registration fees 8 Shareholder reports 7 Other expenses + 5 --------- Total expenses 1,282 Expense reduction - 365 d --------- NET EXPENSES 917 INCREASE IN NET ASSETS FROM OPERATIONS ------------------------------------------------------------- TOTAL INVESTMENT INCOME 2,141 NET EXPENSES - 917 --------- NET INVESTMENT INCOME 1,224 --------- INCREASE IN NET ASSETS FROM OPERATIONS $1,224
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion, 0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of average daily net assets: for transfer agent services, 0.25% of the fund's assets; for shareholder services, 0.20% of the fund's assets. c For the fund's independent trustees only. d This reduction was made by the investment adviser (CSIM). It reflects a guarantee by CSIM and the transfer agent and shareholder service agent (Schwab) to limit the operating expenses of this fund through at least April 30, 2003 to 0.65% of average daily net assets. This limit doesn't include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 100 Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02-6/30/02 are unaudited. OPERATIONS -------------------------------------------------------------------------- 1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $1,224 $5,405 Net realized gains + - 32 ---------------------------- INCREASE IN NET ASSETS FROM OPERATIONS 1,224 5,437 DISTRIBUTIONS PAID -------------------------------------------------------------------------- Dividends from net investment income $1,224 $5,405 TRANSACTIONS IN FUND SHARES a -------------------------------------------------------------------------- Shares sold 425,537 860,902 Shares reinvested 1,109 5,247 Shares redeemed + (440,301) (799,275) ----------------------------- NET INCREASE OR DECREASE (13,655) 66,874 NET ASSETS -------------------------------------------------------------------------- Beginning of period 291,605 224,699 Total increase or decrease + (13,655) 66,906 b ----------------------------- END OF PERIOD $277,950 $291,605
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 101 SCHWAB FLORIDA MUNICIPAL MONEY FUND [PHOTO OF WALTER BEVERIDGE] WALTER BEVERIDGE, a portfolio manager, has been responsible for day-to-day management of the fund since its inception in 1998. Prior to joining the firm in 1992, he worked for nearly ten years in asset management. This fund may be appropriate for Florida taxpayers, especially those in higher tax brackets who are seeking tax-exempt income. TICKER SYMBOL SWFXX THE FUND SEEKS THE HIGHEST CURRENT INCOME THAT IS CONSISTENT WITH STABILITY OF CAPITAL AND LIQUIDITY, AND ALSO SEEKS TO HAVE ITS SHARES EXEMPT FROM THE FLORIDA INTANGIBLE TAX. MANAGER'S PERSPECTIVE SHORT-TERM MUNICIPAL YIELDS CONTINUED TO FALL DURING THE BEGINNING OF 2002. Stronger-than-expected economic figures released in March caused an increase in rates. During this time, we added to our positions in fixed-rate securities, which offered higher yields. This allowed us to maintain a neutral to slightly longer maturity versus our peer group. The longer maturity helped the fund's performance when yields fell once again during the second quarter as the strength of the recovery came into question. QUICK ACTION AVERTED A BUDGET SHORTFALL FOR FLORIDA IN FISCAL 2002. Florida had initially expected to close out fiscal 2002 (on June 30) with a $2.5 billion unreserved general fund balance. The economic downturn changed that expectation, and by October 2001 the state was projecting a $1.3 billion revenue shortfall instead. State government addressed the problem rapidly, allowing Florida to maintain a balanced budget through fiscal 2002. In the end, the state reported receipts that were actually somewhat ahead of projections for the final months of the fiscal year, which meant that Florida ended fiscal 2002 with a surplus of $416 million, as well as $940 million in its budget stabilization fund. Due to its substantial reserves and strong financial controls, the state is a solid investment-grade credit. The state's current general obligation ratings are Aa2, AA+ and AA from Moody's, Standard & Poor's and Fitch, respectively. 102 PERFORMANCE AND FUND FACTS SEVEN-DAY YIELDS 1 as of 6/30/02 The seven-day yields are calculated using standard SEC formulas. The effective yields include the effect of reinvesting daily dividends during the period. Please remember that money market fund yields fluctuate, and that past performance is not an indication of future results. ------------------------------------------------------------- Seven-Day Yield 0.94% ------------------------------------------------------------- Seven-Day Effective Yield 0.94% ------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield 3 1.53% -------------------------------------------------------------
WEIGHTED AVERAGE MATURITY during the period 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). [LINE GRAPH]
Florida Municipal Money Fund 31-Dec-01 29 31-Jan-02 31 28-Feb-02 33 31-Mar-02 37 30-Apr-02 30 31-May-02 32 30-Jun-02 45
PORTFOLIO COMPOSITION 2 as of 6/30/02 All figures are shown as a percentage of the fund's investments. All of the fund's securities were in the top tier of credit quality at the time of purchase. BY STATE [PIE CHART] 1. 81.0% Florida 2. 9.1% California 3. 2.6% District of Columbia 4. 1.9% Texas 5. 1.4% West Virginia 6. 1.2% Pennsylvania 7. 2.8% Other
BY CREDIT QUALITY [PIE CHART] 1. 100.0% Tier 1
1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's seven-day yield would have been 0.65%, the seven-day effective yield would have been 0.65% and the seven-day taxable-equivalent effective yield would have been 1.06%. 2 Composition of the fund's portfolio is as of 6/30/02 and is not indicative of holdings after that date. 3 Taxable-equivalent yield assumes a 2002 maximum federal regular income tax rate of 38.6%. 103 SCHWAB FLORIDA MUNICIPAL MONEY FUND -- FINANCIALS FINANCIAL TABLES These pages provide additional data on the fund's performance, portfolio holdings, expenses and business operations. Because this is a semiannual report, the figures for the current report period are unaudited. The FINANCIAL NOTES section, following the FINANCIAL STATEMENTS, contains information about the fund's business structure, accounting practices and other matters, completing the data given in these tables. FINANCIAL HIGHLIGHTS
1/1/02- 1/1/01- 1/1/00- 1/1/99- 3/18/98 4- 6/30/02 12/31/01 12/31/00 12/31/99 12/31/98 ------------------------------------------------------------------------------------------------------- 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 0.00 5 0.02 0.04 0.03 0.02 Less distributions: Dividends from net investment income (0.00) 5 (0.02) (0.04) (0.03) (0.02) ---------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 ==================================================== Total return (%) 0.50 2 2.32 3.62 2.78 2.37 2 RATIOS/SUPPLEMENTAL DATA (%) ------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.59 1 0.59 0.59 3 0.59 0.59 1 Expense reductions reflected in above ratio 0.28 1 0.28 0.29 0.33 0.41 1 Ratio of net investment income to average net assets 0.99 1 2.30 3.56 2.75 2.95 1 Net assets, end of period ($ x 1,000,000) 847 1,518 1,435 1,215 1,016
1 Annualized. 2 Not annualized. 3 Would have been 0.60% if certain non-routine expenses (proxy fees) had been included. 4 Commencement of operations. 5 Per-share amount was less than $0.01. See the Financial Notes, which are integral to this information. 104 PORTFOLIO HOLDINGS As of June 30, 2002; unaudited. This section shows all the securities in the fund's portfolio and their market value, as of the report date. We use the symbols below to designate certain characteristics: + Credit-enhanced security o Illiquid restricted security @ Variable-rate security 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. For variable-rate obligations with scheduled maturities greater than 397 days, the maturity shown is the later of the next interest rate change date or demand date. For variable-rate obligations with scheduled maturities less than 397 days, the maturity shown is the earlier of the next interest rate change date or demand date. For variable-rate obligations without demand features, the maturity shown is the next interest rate change date. The pie chart below shows the fund's major categories and the market value and cost of the securities in each category. For definitions of abbreviations and acronyms used in security descriptions, see "portfolio terms" in the glossary. ALL DOLLAR VALUES ARE IN THOUSANDS. [PIE CHART] 100.0% MUNICIPAL SECURITIES Market Value: $853,610 Cost: $853,610 --------------------------------------- 100.0% TOTAL INVESTMENTS Market Value: $853,610 Cost: $853,610
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) MUNICIPAL SECURITIES 100.0% OF INVESTMENTS --------------------------------------------------------------------------- ARIZONA 0.4% + TEMPE, ARIZONA UNION HIGH SCHOOL DISTRICT NO. 213 GO (Project of 1998) Series 1999B 1.24%, 07/01/02 3,235 3,235 CALIFORNIA 9.1% + CALIFORNIA HIGHER EDUCATION LOAN AUTHORITY Student Loan Revenue Refunding Bond Series 1987C-1 1.65%, 07/01/03 10,000 10,000 CALIFORNIA STATE Revenue Anticipation Warrant Series 2002B 1.80%, 11/27/02 40,000 40,113 KERN, CALIFORNIA HIGH SCHOOL DISTRICT TRAN 2.55%, 07/09/02 13,000 13,004 + SOUTHERN CALIFORNIA HFA S/F Housing RB Series A3 2.55%, 07/15/02 14,600 14,600 ------ 77,717 DISTRICT OF COLUMBIA 2.6% METRO WASHINGTON, D.C. AIRPORT AUTHORITY TECP Series B 1.45%, 07/10/02 22,000 22,000 FLORIDA 81.0% +@ BREVARD COUNTY, FLORIDA HFA M/F Housing Revenue Refunding Bond (Shore View Apartment Project) 1.35%, 07/07/02 1,900 1,900 +@ BROWARD COUNTY, FLORIDA Port Facilities Revenue Refunding Bond (Port Everglades Project) Series 1998 1.30%, 07/07/02 6,700 6,700 +@ BROWARD COUNTY, FLORIDA HFA M/F Housing RB (Sanctuary Apartments Project) Series 1985 1.42%, 07/07/02 2,700 2,700 M/F Housing Revenue Refunding Bond (Water's Edge Project) 1.30%, 07/07/02 200 200
See the Financial Notes, which are integral to this information. 105 SCHWAB FLORIDA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) S/F Mortgage RB TOBP (PT-589) 1.37%, 07/07/02 2,975 2,975 +@ CHARLOTTE COUNTY, FLORIDA HFA M/F Housing RB (Murdock Circle Apartments Project) 1.47%, 07/07/02 3,000 3,000 +@ COLLIER COUNTY, FLORIDA HFA M/F Housing RB (Brittany Bay Apartments Project) Series 2001A 1.35%, 07/07/02 3,350 3,350 + DADE COUNTY, FLORIDA Aviation RB (Miami International Airport) Series 1997A 1.65%, 10/01/02 2,000 2,019 Aviation RB (Miami International Airport) Series 1997B 1.55%, 10/01/02 1,000 1,009 o Special Obligation TOB Series 415 1.65%, 05/10/03 7,995 7,995 +@ DADE COUNTY, FLORIDA IDA IDRB (June Leasing Corp. Project) Series 1995 1.45%, 07/07/02 250 250 RB (Dolphins Stadium Project) Series 1985C 1.25%, 07/07/02 1,050 1,050 + DUVAL COUNTY, FLORIDA SCHOOL DISTRICT Refunding Unlimited GO 1.70%, 08/01/02 3,000 3,010 ESCAMBIA COUNTY, FLORIDA HFA +@ S/F Mortgage RB Series 2001C 1.35%, 07/07/02 2,410 2,410 o S/F Mortgage RB Series B 2.20%, 04/03/03 3,700 3,700 +@ S/F Mortgage RB TOB Series 1997D 1.38%, 07/07/02 5,975 5,975 +@ S/F Mortgage RB TOBP (PT-121) 1.37%, 07/07/02 8,675 8,675 +@ S/F Mortgage RB TOBP (PT-519) 1.37%, 07/07/02 3,230 3,230 +@ EUSTIS, FLORIDA Multi-Purpose RB 1.25%, 07/07/02 3,700 3,700 + FIRST FLORIDA GOVERNMENTAL FINANCING COMMISSION RB Series 1992A 2.75%, 07/01/02 1,000 1,000 +@ FLORIDA DEVELOPMENT FINANCE CORP. IDRB (Central Farms, Ltd. Project) Series 1999A4 1.40%, 07/07/02 1,410 1,410 IDRB (Pioneer Ram Project) Series 1998A3 1.40%, 07/07/02 1,160 1,160 IDRB (Schmitt Family Project) Series 1999A2 1.40%, 07/07/02 1,500 1,500 IDRB (Sunshine State Project) Series 1999A3 1.30%, 07/07/02 1,380 1,380 IDRB (Vutec Corp. Project) Series 1999A1 1.40%, 07/07/02 1,840 1,840 +@ FLORIDA HFA Housing RB (Ashley Lake II Project) Series 1989J 1.26%, 07/07/02 9,400 9,400 Housing RB (Caribbean Key Apartments) Series 1996F 1.30%, 07/07/02 2,400 2,400 Housing RB (Heron Park Project) Series 1996U 1.26%, 07/07/02 3,605 3,605 Housing RB (Tiffany Club Project) Series 1996P 1.30%, 07/07/02 7,350 7,350 M/F Housing RB (Waterford Pointe) Series 2000E-1 1.35%, 07/07/02 4,155 4,155 +@ FLORIDA HOUSING FINANCE CORP. Housing RB (Timberline Apartments) Series 1999P 1.25%, 07/07/02 2,500 2,500 Housing RB (Valencia Village Apartments Project) Series 1999G-1 1.35%, 07/07/02 5,875 5,875 Housing RB (Vinings Hampton Village) Series 2001D 1.40%, 07/07/02 10,800 10,800
See the Financial Notes, which are integral to this information. 106
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) RB TOB Series 2000J 1.35%, 07/07/02 4,450 4,450 RB TOBP (PT-471) 1.30%, 07/07/02 14,760 14,760 FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION Pooled TECP Series A 1.65%, 09/05/02 1,000 1,000 Pooled TECP Series B 1.70%, 07/11/02 4,000 4,000 FLORIDA STATE Gas Utility RB (Gas Project No. 1) 1.62%, 12/01/02 1,200 1,217 + FLORIDA STATE BOARD OF EDUCATION @ Capital Outlay Public Education GO TOB Series 1998A 1.31%, 07/07/02 2,000 2,000 @ Capital Outlay Revenue Refunding TOB 1.33%, 07/07/02 14,100 14,100 @ Capital Outlay TOB Series 137 1.33%, 07/07/02 17,935 17,935 @ Capital Outlay TOB Series 190 1.31%, 07/07/02 2,275 2,275 @ Capital Outlay TOB Series 1998E 1.33%, 07/07/02 12,280 12,280 @ Capital Outlay TOB Series 223 1.31%, 07/07/02 6,145 6,145 @ Capital Outlay TOB Series 286 1.31%, 07/07/02 5,275 5,275 Capital Outlay TOBP (PA-697) 1.80%, 02/13/03 16,015 16,015 +@ FLORIDA STATE BOARD OF FINANCE DEPARTMENT OF GENERAL SERVICES RB TOB Series 317 1.31%, 07/07/02 23,140 23,140 +@ FLORIDA STATE TURNPIKE AUTHORITY Turnpike RB TOB Series 273 1.31%, 07/07/02 5,745 5,745 +@ FORT MEYERS, FLORIDA Utility Revenue Refunding TOB Series 1999A 1.31%, 07/07/02 2,495 2,495 +@ GAINESVILLE, FLORIDA IDRB (Exactech, Inc. Project) 1.35%, 07/07/02 3,300 3,300 + GREATER ORLANDO, FLORIDA AVIATION AUTHORITY Airport Facility TECP 1.40%, 08/08/02 1,596 1,596 1.50%, 09/12/02 25,318 25,318 +@ GULF BREEZE, FLORIDA RB (Local Government Loan Program) Series 1985B 1.25%, 07/07/02 9,000 9,000 RB (Local Government Loan Program) Series 1985E 1.30%, 07/07/02 1,430 1,430 + HILLSBOROUGH COUNTY, FLORIDA Capital Improvement TECP Series A 2.15%, 07/02/02 9,000 9,000 1.50%, 08/28/02 7,300 7,300 HILLSBOROUGH COUNTY, FLORIDA AVIATION AUTHORITY TECP 1.55%, 07/08/02 500 500 +@ HILLSBOROUGH COUNTY, FLORIDA CAPITAL IMPROVEMENT PROGRAM RB TOB Series 222 1.31%, 07/07/02 9,230 9,230 +@ HILLSBOROUGH COUNTY, FLORIDA EDUCATIONAL FACILITIES AUTHORITY RB (University of Tampa Project) 1.30%, 07/07/02 5,800 5,800 +@ HILLSBOROUGH COUNTY, FLORIDA IDA RB (Independent Day School Project) 1.30%, 07/07/02 2,000 2,000 RB (Tampa Metropolitan YMCA Project) Series 2000K 1.30%, 07/07/02 4,400 4,400 + JACKSONVILLE, FLORIDA Excise Tax Revenue Refunding & Improvement Bond Series 1998B 1.71%, 10/01/02 1,120 1,127 +@ JACKSONVILLE, FLORIDA ECONOMIC DEVELOPMENT COMMISSION RB (Bolles School Project) Series 1999A 1.25%, 07/07/02 3,400 3,400 +@ JACKSONVILLE, FLORIDA ELECTRIC AUTHORITY RB TOB Series 2000FF 1.37%, 07/07/02 9,970 9,970
See the Financial Notes, which are integral to this information. 107 SCHWAB FLORIDA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) RB TOB Series 211 1.31%, 07/07/02 7,185 7,185 RB TOB Series 226 1.31%, 07/07/02 5,000 5,000 Water & Sewer Systems RB Series 2000B 1.25%, 07/07/02 1,350 1,350 +@ JACKSONVILLE, FLORIDA HEALTH FACILITY AUTHORITY RB (River Garden Project) Series 1994 1.30%, 07/07/02 3,590 3,590 +@ JACKSONVILLE, FLORIDA PORT AUTHORITY TOB 1.35%, 07/07/02 10,100 10,100 +@ LEE COUNTY, FLORIDA HFA M/F Housing RB (Cape Coral Apartments Project) Series 1999A 1.47%, 07/07/02 6,160 6,160 M/F Housing RB (University Club Apartments Project) Series 2002A 1.32%, 07/07/02 6,700 6,700 +@ MANATEE COUNTY, FLORIDA HFA M/F Housing RB (Centre Court Apartments Project) Series 2000A 1.35%, 07/07/02 3,850 3,850 M/F Housing RB (Sabal Palm Harbor Project) Series 2000A 1.47%, 07/07/02 7,300 7,300 M/F Housing RB (Sabal Palm Harbor Project) Series 2000B 1.47%, 07/07/02 3,930 3,930 MIAMI DADE COUNTY, FLORIDA SCHOOL DISTRICT RAN 1.40%, 12/30/02 20,000 20,084 +@ MIAMI-DADE COUNTY, FLORIDA IDA Airport Facilities RB (Flight Safety Project) Series 1999A 1.30%, 07/07/02 12,500 12,500 1.35%, 07/07/02 9,000 9,000 IDRB (Airbus Service Co. Project) Series 1998A 1.40%, 07/07/02 9,360 9,360 IDRB (Arctic Partners, Ltd. Project) 1.40%, 07/07/02 1,990 1,990 IDRB (Badia Spices, Inc. Project) 1.35%, 07/07/02 3,875 3,875 IDRB (Fine Arts Lamps Project) Series 1998 1.35%, 07/07/02 1,900 1,900 +@ NASSUA COUNTY, FLORIDA Pollution Control RB (Rayonier Project) Series 1999 1.20%, 07/07/02 250 250 +@ OKEECHOBEE COUNTY, FLORIDA Exempt Facility RB (Okeechobee Landfill, Inc. Project) Series 1999 1.35%, 07/07/02 15,000 15,000 + ORANGE COUNTY, FLORIDA TECP 1.50%, 07/02/02 20,000 20,000 +@ ORANGE COUNTY, FLORIDA HEALTH FACILITIES AUTHORITY RB (Adventist Health Systems) Series 1992B 1.20%, 07/07/02 200 200 RB (Florida Hospital Association Health Facility Loan Program) Series 2000A 1.75%, 07/07/02 25,600 25,600 ORANGE COUNTY, FLORIDA HEALTH FINANCING AUTHORITY TECP 1.45%, 09/12/02 20,000 20,000 +@ ORANGE COUNTY, FLORIDA HFA M/F Housing RB (Andover Place Apartments) 1.25%, 07/07/02 470 470 M/F Housing RB (Glenn Millenia Project) Series 2001C 1.35%, 07/07/02 3,355 3,355 M/F Housing RB (Highland Pointe Apartments Project) Series 1988J 1.30%, 07/07/02 655 655 M/F Housing RB (West Pointe Villas Project) Series 2000F 1.35%, 07/07/02 5,750 5,750 M/F Housing RB Series 2000G 1.47%, 07/07/02 3,200 3,200 M/F Housing Revenue Refunding Bond (Heather Glenn Apartments Project) Series 2001E 1.20%, 07/07/02 5,400 5,400 ORANGE COUNTY, FLORIDA IDA IDRB (Central Florida Kidney Centers Project) 1.25%, 07/07/02 5,000 5,000 IDRB (Central Florida YMCA Project) Series 2002A 1.30%, 07/07/02 5,000 5,000 IDRB (Goodwill Industries, Inc. Project) 1.25%, 07/07/02 6,000 6,000
See the Financial Notes, which are integral to this information. 108
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) RB (Center For Drug Free Living Project) 1.25%, 07/07/02 9,615 9,615 +@ ORANGE COUNTY, FLORIDA SCHOOL BOARD COP Series 2000B 1.75%, 07/07/02 1,200 1,200 +@ PALM BEACH COUNTY, FLORIDA IDRB (Benjamin Private School Project) 1.25%, 07/07/02 9,000 9,000 IDRB (Palm Beach Day Care School Project) Series 1999 1.25%, 07/07/02 7,000 7,000 RB (Complete Alcohol Rehabilitation Project) 1.25%, 07/07/02 200 200 RB (Zoological Society, Inc. Project) 1.30%, 07/07/02 2,000 2,000 +@ PALM BEACH COUNTY, FLORIDA AIRPORT RB (Galaxy Aviation Project) Series 2000A 1.35%, 07/07/02 6,000 6,000 +o PALM BEACH COUNTY, FLORIDA CRIMINAL JUSTICE FACILITIES TOB Series 191 1.60%, 12/05/02 7,495 7,495 +@ PALM BEACH COUNTY, FLORIDA HDA CORP. M/F Revenue Refunding Bonds (Spinnaker Landing Project) 1.35%, 07/07/02 2,945 2,945 PALM BEACH COUNTY, FLORIDA HEALTH FACILITIES AUTHORITY +@ Revenue Refunding Bond (Joseph L. Morse Geriatric Center) 1.25%, 07/07/02 2,855 2,855 TECP 1.45%, 09/12/02 2,400 2,400 +@ PALM BEACH COUNTY, FLORIDA HFA M/F Housing RB (Azalea Place Apartments Project) Series 1999A 1.47%, 07/07/02 3,100 3,100 +@ PASCO COUNTY, FLORIDA COP 1.25%, 07/07/02 1,370 1,370 +@ PASCO COUNTY, FLORIDA EDUCATION FACILITY AUTHORITY RB (St. Leo University Project) 1.57%, 07/07/02 2,450 2,450 +@ PINELLAS COUNTY, FLORIDA HFA S/F Housing RB TOBP (PT-352) 1.37%, 07/07/02 4,020 4,020 +@ PINELLAS COUNTY, FLORIDA IDA IDRB (H&S Swanson's Tool Co. Project) 1.35%, 07/07/02 3,930 3,930 IDRB (Restorative Care of America Project) 1.45%, 07/07/02 1,700 1,700 +@ POLK COUNTY, FLORIDA IDA IDRB (Juice Bowl Products, Inc. Project) 1.35%, 07/07/02 2,790 2,790 RB (Farmland Hydro Project) 1.35%, 07/07/02 6,000 6,000 RB (Pavermodule, Inc. Project) 1.35%, 07/07/02 3,610 3,610 +@ SEMINOLE COUNTY, FLORIDA IDA IDRB (Amrhein Family Project) 1.35%, 07/07/02 4,560 4,560 SEMINOLE COUNTY, FLORIDA SCHOOL DISTRICT TAN 2.50%, 08/14/02 7,000 7,006 +@ SOUTHEAST VOLUSIA, FLORIDA HOSPITAL DISTRICT RB (Bert Fish Medical Center Project) Series 1995 1.40%, 07/07/02 1,815 1,815 +@ ST. PETERSBURG, FLORIDA Capital Improvement RB (Airport & Golf Course Project) Series 1997C 1.35%, 07/07/02 585 585 Capital Improvement RB (Airport & Golf Course Project) Series B 1.20%, 07/07/02 2,020 2,020 +@ SUMTER COUNTY, FLORIDA IDA RB (Robbins Manufacturing Project) Series 1997 1.40%, 07/07/02 320 320 +@ TALLAHASSEE & Leon County, FLORIDA CIVIC CENTER AUTHORITY Capital Improvement RB Series A 1.25%, 07/07/02 13,000 13,000 +@ TAMPA BAY, FLORIDA WATER UTILITY SYSTEM RB TOB Series 2001N 1.31%, 07/07/02 5,200 5,200
See the Financial Notes, which are integral to this information. 109 SCHWAB FLORIDA MUNICIPAL MONEY FUND -- FINANCIALS PORTFOLIO HOLDINGS Continued As of June 30, 2002; unaudited.
ISSUER SECURITY TYPE, PROJECT, SERIES, FACE VALUE MKT. VALUE RATE, MATURITY ($ X 1,000) ($ X 1,000) + TAMPA, FLORIDA Guaranteed Entitlement Revenue Refunding Bond 1.78%, 10/01/02 2,130 2,152 +@ VOLUSIA COUNTY, FLORIDA EDUCATIONAL FACILITY AUTHORITY RB (Bethune Cookman College Project) 1.25%, 07/07/02 675 675 +@ WEST ORANGE, FLORIDA HEALTHCARE DISTRICT RB Series 1999B 1.20%, 07/07/02 100 100 ------- 691,293 KENTUCKY 0.6% + KENTON COUNTY, KENTUCKY AIRPORT BOARD Revenue Refunding Bond Series 2002A 1.82%, 03/01/03 4,825 4,854 MASSACHUSETTS 0.6% +o MASSACHUSETTS STATE TOBP (PA-945) 1.80%, 02/13/03 4,995 4,995 PENNSYLVANIA 1.2% TEMPLE UNIVERSITY OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION, PENNSYLVANIA University Funding Obligation RB 1.92%, 05/06/03 10,000 10,090 PUERTO RICO 0.3% PUERTO RICO GOVERNMENT DEVELOPMENT BANK TECP 1.65%, 07/10/02 403 403 1.35%, 09/20/02 2,500 2,500 ------- 2,903 TEXAS 1.9% TEXAS STATE TRAN Series 2001A-L32 1.70%, 08/29/02 1,000 1,003 2.50%, 08/29/02 15,000 15,030 ------- 16,033 WASHINGTON 0.9% +@ ENERGY NORTHWEST, WASHINGTON Electric Putters RB TOB Series 242Z 1.33%, 07/07/02 6,295 6,295 + WASHINGTON STATE PUBLIC POWER SUPPLY SYSTEM Revenue Refunding Bond (Nuclear Project No. 1) Series 1992A 2.70%, 07/01/02 2,000 2,040 ------- 8,335 WEST VIRGINIA 1.4% +@ WEST VIRGINIA SCHOOL BUILDING AUTHORITY RB TOBP (PA-914) 1.30%, 07/07/02 12,155 12,155
END OF PORTFOLIO HOLDINGS. For totals, please see the first page of holdings for this fund. See the Financial Notes, which are integral to this information. 110 Statement of ASSETS AND LIABILITIES As of June 30, 2002; unaudited. All numbers x 1,000 except NAV. ASSETS ------------------------------------------------------------------------------- Investments, at market value $853,610 a Cash 20 Interest receivable 3,461 Prepaid expenses + 32 ----------- TOTAL ASSETS 857,123 LIABILITIES ------------------------------------------------------------------------------- Payables: Dividends to shareholders 296 Investments bought 10,000 Investment adviser and administrator fees 6 Transfer agent and shareholder service fees 31 Accrued expenses + 48 ----------- TOTAL LIABILITIES 10,381 NET ASSETS ------------------------------------------------------------------------------- TOTAL ASSETS 857,123 TOTAL LIABILITIES - 10,381 ----------- NET ASSETS $846,742 NET ASSETS BY SOURCE Capital received from investors 846,826 Net realized capital losses (84)
NET ASSET VALUE (NAV)
SHARES NET ASSETS / OUTSTANDING = NAV $846,742 846,849 $1.00
a Includes illiquid restricted securities worth $24,185, or 2.83% of the fund's investments. The amortized cost for the fund's securities was $853,610. During the reporting period, the fund had $1,035,825 in transactions with other SchwabFunds(R). FEDERAL TAX DATA Cost basis of portfolio $853,610 UNUSED CAPITAL LOSSES: Expires 12/31 of: LOSS AMOUNT: 2008 $99
See the Financial Notes, which are integral to this information. 111 SCHWAB FLORIDA MUNICIPAL MONEY FUND -- FINANCIALS Statement of OPERATIONS For January 1, 2002 through June 30, 2002; unaudited. All numbers x 1,000. INVESTMENT INCOME ------------------------------------------------------------------------------- Interest $7,154 NET REALIZED GAINS ------------------------------------------------------------------------------- Net realized gains on investments sold 15 EXPENSES ------------------------------------------------------------------------------- Investment adviser and administrator fees 1,721 a Transfer agent and shareholder service fees 2,042 b Trustees' fees 13 c Custodian and portfolio accounting fees 100 Professional fees 16 Registration fees 32 Shareholder reports 30 Other expenses + 7 --------- Total expenses 3,961 Expense reduction - 1,284 d --------- NET EXPENSES 2,677 INCREASE IN NET ASSETS FROM OPERATIONS ------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 7,154 NET EXPENSES - 2,677 --------- NET INVESTMENT INCOME 4,477 NET REALIZED GAINS + 15 --------- INCREASE IN NET ASSETS FROM OPERATIONS $4,492
a Calculated on a graduated basis as a percentage of average daily net assets: 0.38% of the first $1 billion, 0.35% over $1 billion, 0.32% over $10 billion, 0.30% over $20 billion and 0.27% over $40 billion. b Calculated as a percentage of average daily net assets: for transfer agent services, 0.25% of the fund's assets; for shareholder services, 0.20% of the fund's assets. c For the fund's independent trustees only. d This reduction was made by the investment adviser (CSIM). It reflects a guarantee by CSIM and the transfer agent and shareholder service agent (Schwab) to limit the operating expenses of this fund through at least April 30, 2003 to 0.66% of average daily net assets. CSIM and Schwab have voluntarily agreed to further limit the operating expenses of this fund to 0.59%. The voluntary reduction may be changed at any time without prior notice. These limits do not include interest, taxes and certain non-routine expenses. See the Financial Notes, which are integral to this information. 112 Statements of CHANGES IN NET ASSETS For the current and prior reporting periods. All numbers x 1,000. Figures for 1/1/02-6/30/02 are unaudited. OPERATIONS ------------------------------------------------------------------------------- 1/1/02-6/30/02 1/1/01-12/31/01 Net investment income $ 4,477 $ 19,059 Net realized gains + 15 67 ------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS 4,492 19,126 DISTRIBUTIONS PAID ------------------------------------------------------------------------------- Dividends from net investment income $ 4,477 $ 19,059 TRANSACTIONS IN FUND SHARES a ------------------------------------------------------------------------------- Shares sold 1,324,178 3,151,142 Shares reinvested 4,056 18,492 Shares redeemed + (1,999,163) (3,087,097) ------------------------------- NET INCREASE OR DECREASE (670,929) 82,537 NET ASSETS ------------------------------------------------------------------------------- Beginning of period 1,517,656 1,435,052 Total increase or decrease + (670,914) 82,604 b ------------------------------- END OF PERIOD $ 846,742 $ 1,517,656
a Because all transactions in this section took place at $1.00 per share, figures for share quantities are the same as for dollars. b Represents the changes in net assets from operations plus the changes in value of transactions in fund shares, minus distributions paid. See the Financial Notes, which are integral to this information. 113 FINANCIAL NOTES FINANCIAL NOTES Unaudited BUSINESS STRUCTURE OF THE FUNDS EACH OF THE FUNDS DISCUSSED IN THIS REPORT IS A SERIES OF THE CHARLES SCHWAB FAMILY OF FUNDS(TM), 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 sidebar shows the funds in this report and their trust. THE SCHWAB MUNICIPAL MONEY FUND, SCHWAB CALIFORNIA AND SCHWAB NEW YORK MUNICIPAL MONEY FUNDS OFFER TWO SHARE CLASSES EACH: Sweep Shares and Value Advantage Shares. Shares of each class represent interests in the same portfolio, but each class has different expenses and investment minimums. The Schwab New Jersey, Pennsylvania and Florida Municipal Money Funds 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 trust may issue as many shares as necessary. FUND OPERATIONS Most of the funds' investments are described in the fund-by-fund sections earlier in this report. However, there are certain other investments and policies that may affect a fund's financials. The most significant of these are described below. Other policies concerning the funds' business operations also are described here. 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. 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, a 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. THE FUNDS PAY FEES FOR VARIOUS SERVICES. Through their trust, the funds have agreements with Charles Schwab Investment Management, Inc. (CSIM) to provide investment advisory and administrative services and with Charles Schwab & Co., Inc. (Schwab) to provide transfer agent and shareholder services. Although these agreements specify certain fees for these services, CSIM and Schwab have made additional agreements with the funds that may limit the total expenses charged. The rates and limitations for these fees vary from fund to fund, and are described in each fund's Statement of Operations. THE TRUST AND ITS FUNDS This list shows all of the funds included in The Charles Schwab Family of Funds. The funds discussed in this report 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(R) 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 Florida Municipal Money Fund Schwab Institutional Advantage Money Fund(R) Schwab Retirement Money Fund(R) Schwab Government Cash Reserves 114 FINANCIAL NOTES 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 each fund's Statement of Operations. THE FUNDS MAY ENGAGE IN CERTAIN TRANSACTIONS INVOLVING AFFILIATES. The funds may make direct transactions with certain other SchwabFunds(R) 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. 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. ACCOUNTING POLICIES The following are the main policies the funds use in preparing their financial statements. THE FUNDS VALUE THEIR SECURITIES AT AMORTIZED COST, which approximates market value. SECURITY TRANSACTIONS are recorded as of the date the order to buy or sell the security is executed. INTEREST INCOME is recorded as it accrues. If a fund bought a debt instrument at a discount (that is, for less than its face value) or a premium (more than face value), it amortizes the discount or premium from the current date up 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. REALIZED GAINS AND LOSSES from security transactions are based on the identified costs of the securities involved. EXPENSES that are specific to a fund are charged directly to that fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their net assets. 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. THE ACCOUNTING POLICIES DESCRIBED ABOVE 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. 115 GLOSSARY 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 ALLOCATION The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage. ASSET-BACKED SECURITIES Securities that are backed by the loans or accounts receivable of an entity, such as a bank or credit card company. These securities are obligations that the issuer intends to repay using the assets backing them (once collected). Therefore, repayment depends largely on the cash flows generated by the assets backing the securities. ASSET CLASS A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes. 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." 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 and other institutions to finance short-term credit needs. These securities generally are structured as discount notes but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk. 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 Moody's Investor Service, Standard & Poor's and Fitch, Inc., 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. 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 TOB Tender option bond TOBP Tender option bond partnership TRAN Tax and revenue anticipation note VRD Variable-rate demand 116 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. INTEREST Payments to holders of debt securities as compensation for loaning a security's principal to the issuer. MATURITY Generally, the date a debt security is scheduled to be "retired" and its principal amount returned to the bondholder. 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, banker's acceptances, notes and time deposits. 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. REVENUE ANTICIPATION NOTES Obligations that are issued in expectation of the receipt of other types of revenue, such as that available under the Federal Revenue Sharing Program. 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 working capital needs of municipalities in anticipation of the receipt of property taxes on a future date. WEIGHTED AVERAGE For mutual funds, an average that gives the same weight to each security as the security represents in the fund's portfolio. 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 an annual rate and calculated as a percentage of the investment's market value. 117 NOTES NOTES NOTES CONTACT SCHWAB The SchwabFunds Family(R) includes a variety of funds to help meet your investment needs. You can diversify your portfolio in a single step with our asset allocation funds. Or you can customize your portfolio with a combination of our stock funds as well as our taxable and tax-advantaged bond and money market funds. Please call 800-435-4000 for a free prospectus and brochure for any of these SchwabFunds(R). Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus. METHODS FOR PLACING ORDERS The following information outlines how Schwab brokerage account investors can place orders. If you are investing through a third-party investment provider, methods for placing orders may be different. INTERNET 1 www.schwab.com SCHWAB BY PHONE(TM) Use our automated voice service or speak to a representative. Call 800-435-4000, day or night (for TDD service, call 800-345-2550) TELEBROKER(R) Automated touch-tone phone service at 800-272-4922 MAIL Write to SchwabFunds at: PO Box 3812 Englewood, CO 80155-3812 When selling or exchanging shares, be sure to include the signatures of at least one of the persons whose name is on the account. 1 Shares of Sweep Investments(TM) may not be purchased over the Internet. THE SCHWABFUNDS FAMILY STOCK FUNDS Schwab S&P 500 Fund Schwab 1000 Fund(R) Schwab Small-Cap Index Fund(R) Schwab Total Stock Market Index Fund(R) Schwab International Index Fund(R) Schwab Core Equity Fund(TM) Schwab Focus Funds Communications Focus Fund Financial Services Focus Fund Health Care Focus Fund Technology Focus Fund Schwab MarketMasters Funds(TM) U.S. MarketMasters Fund(TM) Small-Cap MarketMasters Fund(TM) International MarketMasters Fund(TM) ASSET ALLOCATION FUNDS Schwab MarketTrack Portfolios(R) All Equity Portfolio Growth Portfolio Balanced Portfolio Conservative Portfolio Schwab MarketMasters Funds(TM) Balanced MarketMasters Fund(TM) BOND FUNDS Schwab Short-Term Bond Market Fund Schwab Total Bond Market Fund Schwab YieldPlus Fund(R) Schwab Short/Intermediate Tax-Free Bond Fund Schwab Long-Term Tax-Free Bond Fund Schwab California Short/Intermediate Tax-Free Bond Fund Schwab California Long-Term Tax-Free Bond Fund SCHWAB MONEY FUNDS Schwab offers an array of money market funds that seek high current income consistent with safety and liquidity. 2 Choose from taxable or tax-advantaged alternatives. Many can be linked to your Schwab account to "sweep" cash balances automatically when you're between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments(R). 2 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. [CHARLES SCHWAB LOGO] INVESTMENT ADVISER Charles Schwab Investment Management, Inc. 101 Montgomery Street, San Francisco, CA 94104 DISTRIBUTOR SchwabFunds(R) PO Box 3812, Englewood, CO 80155-3812 This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. (C)2002 Charles Schwab & Co., Inc. All rights reserved. Member SIPC/NYSE. Printed on recycled paper. REG13603-05