-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GI1bbjA4+JrIMqloSE96Q5+S5+82GxxADBqhgkHIEzeeWNpWhV3I1a8pe+47tOcK qA0ItoatZhGIh8e46x1mww== 0000950149-96-001375.txt : 19960904 0000950149-96-001375.hdr.sgml : 19960904 ACCESSION NUMBER: 0000950149-96-001375 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960903 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB CHARLES FAMILY OF FUNDS CENTRAL INDEX KEY: 0000857156 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05954 FILM NUMBER: 96625241 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4156277000 MAIL ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 N-30D 1 SCHWAB MONEY FUNDS VALUE ADVANTAGE INVESTMENTS 1 SCHWABFUNDS(R) [LOGO] SCHWAB MONEY FUNDS VALUE ADVANTAGE INVESTMENTS(TM) SEMI-ANNUAL REPORT JUNE 30, 1996 [Photo of the Schwab Building, San Francisco, California] 2 Dear Shareholder, [Photo of I'd like to take this opportunity to share some thoughts on Charles mutual fund investing and tell you how we're working to expand R. Schwab] our services to keep pace with your changing needs. First, however, I want to extend a personal welcome to the many thousands of new shareholders who've joined the SchwabFunds Family(R) in the past six months. With your support, we've become one of the largest and fastest-growing organizations in the mutual fund industry. Today, Charles Schwab Investment Management, Inc. serves over 1.8 million shareholders with total assets under management in excess of $38 billion. In six years, SchwabFunds(R) has grown from just a few funds to a mutual fund complex offering retail investors 21 funds covering a broad range of financial markets and investing approaches. NEW INVESTING STRATEGIES. Over the past year, we've introduced five new funds, each built on specific, time-tested strategies. The Schwab Asset Director(R) Funds help you diversify your portfolio through asset allocation, the Schwab S&P 500 Fund seeks to track U.S. stock market performance through indexing, and the Schwab Analytics Fund(TM) uses advanced quantitative methods to identify attractive investment opportunities. Along with our other offerings, these new funds give you powerful tools you can use to help construct a custom investment portfolio that matches your individual goals. And, of course, they also allow you to tap into the combined investing expertise of our highly experienced team of professional portfolio managers. TIME-TESTED INVESTING STRATEGIES THAT OFFER YOU AN EXPANDING RANGE OF OPPORTUNITIES ENHANCING SHAREHOLDER COMMUNICATIONS. Our commitment to shareholders goes beyond simply offering you new investment opportunities. We also want to help you become a more-informed mutual fund investor by providing the in-depth information you need to help manage your portfolio more effectively. Toward that end, we've changed the format of this report to make it more accessible and informative. If you'd like more information on any of the funds in the SchwabFunds Family, call 1-800-2 NO-LOAD (1-800-266-5623). Our representatives will be happy to provide you with a free prospectus, which contains more complete information on fund risks, charges and expenses. Please read it carefully before investing. Thank you for placing your trust in us. We value your confidence in our efforts to date, and we'll continue working hard to offer you an even broader range of strategic investment opportunities in the future. /s/ Charles R. Schwab Charles R. Schwab Cover: The Schwab Building, San Francisco, California 3
TABLE OF CONTENTS OVERVIEW ..................................................... 1 SCHWAB TAX-EXEMPT MONEY FUND- VALUE ADVANTAGE SHARES(TM) SUMMARY ........................... 2 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND- VALUE ADVANTAGE SHARES(TM) SUMMARY ........................... 4 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND- VALUE ADVANTAGE SHARES(TM) SUMMARY ........................... 6 QUESTIONS TO THE PORTFOLIO MANAGEMENT TEAM ................... 9 GLOSSARY OF TERMS ............................................ 17 PORTFOLIO SUMMARY ............................................ 18 FINANCIAL STATEMENTS AND NOTES ............................... 21
OVERVIEW We're pleased to report on the performance of your investment in the Schwab Value Advantage Investments(TM) for the six-month reporting period ended June 30, 1996. This report covers: - Schwab Tax-Exempt Money Fund-Value Advantage Shares - Schwab California Tax-Exempt Money Fund-Value Advantage Shares - Schwab New York Tax-Exempt Money Fund-Value Advantage Shares During the reporting period, all three Value Advantage Investments provided you with competitive tax-exempt current income, 1 combined with capital stability and liquidity. The Schwab Value Advantage Investments seek to maintain a stable $1 share price to protect your principal. As with all money funds, however, there can be no assurance that the Funds will be able to maintain a $1 net asset value per share. It is also important to understand that your investment is not insured or guaranteed by the U.S. government. 1 Income from each of the Value Advantage Investments may be subject to the federal Alternative Minimum Tax (AMT), and income from the Schwab Tax-Exempt Money Fund-Value Advantage Shares may be subject to state and local income taxes. 1 4 SCHWAB TAX-EXEMPT MONEY FUND - VALUE ADVANTAGE SHARES(TM) SUMMARY PERFORMANCE REVIEW The table below presents the Schwab Tax-Exempt Money Fund-Value Advantage Shares' 7-day average yields at the end of the reporting period. Of course, money market yields fluctuate, and past performance is no guarantee of future results. - ------------------------------------------------------------------------------ 7-DAY AVERAGE YIELDS 2 (as of 6/30/96)
Simple Compound Compound Taxable Equivalent 3 ----------------------------------------------------------------------- 3.03% 3.08% 5.10% -----------------------------------------------------------------------
THE OPPORTUNITY FOR HIGHER YIELDS, AFTER TAXES If you are in a high tax bracket, the federal tax-exempt income which may be paid by the Schwab Tax-Exempt Money Fund-Value Advantage Shares can provide you with higher yields than taxable money funds on a taxable equivalent basis. On June 25, 1996, these Value Advantage Shares' average 7-day simple yield was 3.07% and average 7-day compound yield was 3.12%. 4 Here's how the compound taxable equivalent yield compared with First Tier taxable money funds on June 25, 1996 for shareholders in the highest 1996 tax bracket:
- ------------------------------------------------------------------------------- Your Value Advantage Shares' 7-day compound taxable equivalent yield: 3 5.16% Average 7-day compound yield for fully taxable money funds: 5 4.82% ---- YOUR YIELD ADVANTAGE, AFTER TAXES: 0.34% - --------------------------------------------------------------------------------
2 A portion of the Fund's fees were waived or reimbursed during the reporting period. Without the waivers or reimbursements, the Schwab Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.72%, the 7-day compound yield would have been 2.76%, and the 7-day compound taxable equivalent yield would have been 4.57% at June 30, 1996. 3 Taxable equivalent yield assumes a 1996 maximum federal income tax rate of 39.60%. 4 Without waivers or reimbursements, the Schwab Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.76%, the 7-day compound yield would have been 2.80%, and the 7-day compound taxable equivalent yield would have been 4.64% at June 25, 1996. 5 Source: IBC Financial Data's average 7-day simple and compound yields for the 272 funds in the First Tier category of Taxable Money Funds, as of June 25, 1996. Past performance is no guarantee of future results. 2 5 PORTFOLIO COMPOSITION The chart below illustrates the composition of the Fund's portfolio as of the June 30, 1996 report date. In addition, you'll find a complete listing of the securities in the Fund's portfolio on June 30, 1996 later in this report. The Fund primarily invests in a diversified portfolio of high-quality municipal securities issued by U.S. states, territories, and their political subdivisions, agencies and instrumentalities. SCHWAB TAX-EXEMPT MONEY FUND PORTFOLIO COMPOSITION - JUNE 30, 1996 [The following is a pie chart showing the Schwab Tax-Exempt Money Fund Portfolio Composition as of June 30, 1996.] Variable Rate Obligations 55% Tax-Exempt Commercial Paper 13% Put Bonds 8% Anticipation Notes 11% Other 7% Variable Rate Tender Option Bonds/Partnerships 6%
STRONG GROWTH IN FUND ASSETS AND SHAREHOLDERS During the six-month reporting period, the Schwab Tax-Exempt Money Fund-Value Advantage Shares(TM)' net assets and shareholder base more than doubled, reflecting the growing popularity of "tax-smart" investments. [The following is a table showing the strong growth in Fund Assets and Shareholders for the Schwab Tax-Exempt Money Fund-Value advantage shares.]
6/30/96 12/31/95 Change - ------------------------------------------------------------------------- Total Net Assets (000s) $374,687 $160,682 +133% - ------------------------------------------------------------------------- Shareholder Accounts 1,809 902 +101% - -------------------------------------------------------------------------
3 6 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - VALUE ADVANTAGE SHARES(TM) SUMMARY PERFORMANCE REVIEW The table below presents the Schwab California Tax-Exempt Money Fund-Value Advantage Shares' 7-day average yields at the end of the reporting period. Of course, money market yields fluctuate, and past performance is no guarantee of future results. - -------------------------------------------------------------------------------- 7-DAY AVERAGE YIELDS 6 (as of 6/30/96)
Simple Compound Compound Taxable Equivalent 7 - -------------------------------------------------------------------------------- 2.91% 2.95% 5.39% - --------------------------------------------------------------------------------
THE OPPORTUNITY FOR HIGHER YIELDS, AFTER TAXES If you are in a high tax bracket, the double tax-exempt income which may be paid by the Schwab California Tax-Exempt Money Fund-Value Advantage Shares can provide you with higher yields than taxable money funds on a taxable equivalent basis. On June 25, 1996, these Value Advantage Shares' average 7-day simple yield was 2.95% and average 7-day compound yield was 2.99%. 8 Here's how the compound taxable equivalent yield compared with First Tier taxable money funds on June 25, 1996 for shareholders in the highest 1996 tax bracket: - -------------------------------------------------------------------------------- Your Value Advantage Shares' 7-day compound taxable equivalent yield: 7 5.46% Average 7-day compound yield for fully taxable money funds: 9 4.82% ---- YOUR YIELD ADVANTAGE, AFTER TAXES: 0.64% - --------------------------------------------------------------------------------
6 A portion of the Fund's fees were waived or reimbursed during the reporting period. Without the waivers or reimbursements, the Schwab California Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.58%, the 7-day compound yield would have been 2.61%, and the 7-day compound taxable equivalent yield would have been 4.76% at June 30, 1996. 7 Taxable equivalent yield assumes a 1996 maximum combined federal and California state income tax rate of 45.22%. 8 Without waivers or reimbursements, the Schwab California Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.63%, the 7-day compound yield would have been 2.66%, and the 7-day compound taxable equivalent yield would have been 4.86% at June 25, 1996. 9 Source: IBC Financial Data's average 7-day simple and compound yields for the 272 funds in the First Tier category of Taxable Money Funds, as of June 25, 1996. Past performance is no guarantee of future results. 4 7 PORTFOLIO COMPOSITION The chart below illustrates the Fund's portfolio composition as of the June 30, 1996 report date. In addition, you'll find a complete listing of the securities in the Fund's portfolio on June 30, 1996 later in this report. The Fund primarily invests in a portfolio of high-quality municipal securities issued by the state of California, its agencies, and municipalities. SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND PORTFOLIO COMPOSITION - JUNE 30, 1996 [The following is a pie chart showing the Schwab California Tax-Exempt Money Fund-Value Advantage Shares Portfolio Composition as of June 30, 1996.] Variable Rate Obligations 55% Tax-Exempt Commercial Paper 19% Tax and Revenue Anticipation Notes 17% Other 7% Variable Rate Tender Option Bond Partnerships 2%
STRONG GROWTH IN FUND ASSETS AND SHAREHOLDERS During the six-month reporting period, the Schwab California Tax-Exempt Money Fund-Value Advantage Shares(TM)' net assets and shareholder base more than doubled, reflecting the growing popularity of "tax-smart" investments. [The following is a table showing the Schwab California Tax-Exempt Money Fund-Value Advantage Shares Strong Growth in Fund Assets and shareholders.]
6/30/96 12/31/95 Change - -------------------------------------------------------------------------------- Total Net Assets (000s) $280,242 $108,008 +159% - -------------------------------------------------------------------------------- Shareholder Accounts 1,197 409 +193% - --------------------------------------------------------------------------------
5 8 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - VALUE ADVANTAGE SHARES(TM) SUMMARY PERFORMANCE REVIEW The table below presents the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares' 7-day average yields at the end of the reporting period. Of course, money market yields fluctuate, and past performance is no guarantee of future results. - -------------------------------------------------------------------------------- 7-DAY AVERAGE YIELDS 10 (as of 6/30/96)
Simple Compound Compound Taxable Equivalent 11 - -------------------------------------------------------------------------------- 2.86% 2.90% 5.40% - --------------------------------------------------------------------------------
THE OPPORTUNITY FOR HIGHER YIELDS, AFTER TAXES If you are in a high tax bracket, the triple tax-exempt income which may be paid by the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares can provide you with higher yields than taxable money funds on a taxable equivalent basis. On June 25, 1996, these Value Advantage Shares' average 7-day simple yield was 2.92% and average 7-day compound yield was 2.96%. 12 Here's how the compound taxable equivalent yield compared with First Tier taxable money funds on June 25, 1996 for shareholders in the highest 1996 tax bracket: - -------------------------------------------------------------------------------- Your Value Advantage Shares' 7-day compound taxable equivalent yield: 11 5.51% Average 7-day compound yield for fully taxable money funds: 13 4.82% ---- YOUR YIELD ADVANTAGE, AFTER TAXES: 0.69% - -------------------------------------------------------------------------------- 10 A portion of the Fund's fees were waived or reimbursed during the reporting period. Without the waivers or reimbursements, the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.29%, the 7-day compound yield would have been 2.32%, and the 7-day compound taxable equivalent yield would have been 4.32% at June 30, 1996. 11 Taxable equivalent yield assumes a 1996 maximum combined federal and New York state and New York city income tax rate of 46.27%. 12 Without waivers or reimbursements, the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares' 7-day simple yield would have been 2.34%, the 7-day compound yield would have been 2.37%, and the 7-day compound taxable equivalent yield would have been 4.41% at June 25, 1996. 13 Source: IBC Financial Data's average 7-day simple and compound yields for the 272 funds in the First Tier category of Taxable Money Funds, as of June 25, 1996. Past performance is no guarantee of future results. 6 9 PORTFOLIO COMPOSITION The chart below illustrates the Fund's portfolio composition as of the June 30, 1996 report date. In addition, you'll find a complete listing of the securities in the Fund's portfolio on June 30, 1996 later in this report. The Fund primarily invests in a portfolio of high-quality municipal securities issued by the state of New York, its agencies, and municipalities. SCHWAB NEW YORK TAX-EXEMPT MONEY FUND PORTFOLIO COMPOSITION - JUNE 30, 1996 [The following is a pie chart showing the Schwab New York Tax-Exempt Money Fund Portfolio Composition as of June 30, 1996.] Variable Rate Obligations 68% Tax-Exempt Commercial Paper 6% Anticipation Notes 17% Other 5% Variable Rate Tender Option Bonds/Partnerships 4%
STRONG GROWTH IN FUND ASSETS AND SHAREHOLDERS During the six-month reporting period, the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares(TM)' net assets and shareholder base experienced strong growth, reflecting the increasing popularity of "tax-smart" investments. [The following is a table showing the Schwab New York Tax-Exempt Money Fund-Value Advantage Shares Strong Growth in Fund Assets and Shareholders.]
6/30/96 12/31/95 Change - -------------------------------------------------------------------------------- Total Net Assets (000s) $29,485 $15,143 +95% - -------------------------------------------------------------------------------- Shareholder Accounts 208 100 +108% - --------------------------------------------------------------------------------
7 10 - ------------------------------------------------------------------------------- MAKING THE MOST OF YOUR INVESTMENT The Schwab Value Advantage Investments(TM) are designed to offer you higher yields than most tax-exempt money market funds. By requiring higher account balances and limiting shareholder transactions, Value Advantage Shares(TM)' operating expenses are minimized in order to maximize your returns. To help achieve this goal, Value Advantage Shares are not designed to transfer cash balances to settle trades or cover Schwab One(R) checks, margin calls, or insufficient funds in your Schwab brokerage or Schwab One account. If you need to access your money regularly for these purposes, you may wish to keep some funds in one of our Schwab Money Funds-Sweep Investments(TM) and invest for your longer term cash needs in the Schwab Value Advantage Investments. - ------------------------------------------------------------------------------- 8 11 QUESTIONS TO THE PORTFOLIO MANAGEMENT TEAM OF CHARLES SCHWAB INVESTMENT MANAGEMENT, INC. Stephen B. Ward: Senior Vice President and Chief Investment Officer Walter Beveridge: Portfolio Manager Q. WHAT HAS BEEN THE ECONOMIC CLIMATE DURING THE FIRST SIX MONTHS OF 1996? A. At the beginning of the reporting period, market participants were primarily concerned about the likelihood of an economic recession. However, as the six-month reporting period progressed, the economic climate changed, and by June 30, 1996, concern was focused on excessive growth and its potential impact on future inflation. Following the first quarter of 1996, many economic observers were surprised by both the size of the increase in the Real Gross Domestic Product (GDP) growth rate and the strength of the labor market. The Real GDP growth rate was 2.0% for the first quarter in 1996 and 4.2% for the second quarter, based on the advance estimate. The average monthly increase in payroll employment jumped from 185,000 in 1995 to 232,000 during the first six months of 1996. The June hourly wage increase was the largest recorded in history. These developments have led most market observers to anticipate that the Federal Reserve (the Fed) may increase the federal funds rate in the near term. The economy continues to exhibit signs of strong economic growth as evidenced by strong growth in jobs, retail sales, auto sales, and strong construction spending despite higher mortgage rates. Although inflation has remained relatively low, as evidenced by the 2.8% Consumer Price Index (CPI) increase on a year-over-year basis as of June 1996, there remains a concern that the economy is performing at or near its employment and manufacturing capacity. As a result, the Fed is expected to remain diligent in its effort to prevent future increases in inflation. 9 12 Q. HOW HAVE THIS YEAR'S ECONOMIC EVENTS IMPACTED SHORT-TERM TAXABLE INTEREST RATES? A. Short-term interest rates continued their year long decline during the first six weeks of 1996. The 90-day commercial paper rate fell from 5.50% on January 2 to 5.12% on February 16. This short-lived decline in interest rates reflected continuing doubts about the strength of the economy, as well as the Fed's announcement of a 0.25% reduction in the federal funds rate following its Open Market Committee meeting in late January. Since mid-February, evidence of increased productivity and strength in the labor market has led to an upward trend in short-term interest rates. By June 28, the last business day of the period, the 90-day commercial paper rate was 5.52%. Many economists believe that sustained GDP growth and potential inflationary pressures will lead the Fed to increase the federal funds rate, and current market rates incorporate this expectation. Q. HOW HAVE SHORT-TERM TAX-EXEMPT INTEREST RATES RESPONDED TO MOVEMENTS IN TAXABLE INTEREST RATES DURING THE SIX-MONTH REPORTING PERIOD? A. In general, differences between interest rate movements for tax-exempt and taxable securities exist due to differences in supply and demand conditions in these markets. The supply of tax-exempt securities is more irregular than the supply of taxable securities since tax-exempt issuers offer securities for substantially different reasons from those motivating taxable issuers. Specifically, tax-exempt issuers are usually motivated by budgetary, tax, and legal considerations. Demand can also be affected by buyers who are sensitive to changes in interest rates and who enter and exit the tax-exempt market primarily to earn trading profits by capitalizing on changes in the size of the spread between taxable and tax-exempt interest rates. During the first half of 1996, short-term tax-exempt interest rates loosely tracked taxable interest rates, with variations in the spread between taxable and tax-exempt interest rates reflecting supply and demand factors in the municipal market. Specifically, through much of January, low 10 13 inventories of municipal securities drove tax-exempt interest rates lower relative to taxable interest rates. In February, as dealer inventories of municipal securities increased to more typical levels, the spread between municipal and taxable yields narrowed, returning to a more normal relationship. This situation, combined with market conditions, resulted in increased Fund yields later in the period. This upward trend in supply and dealer inventories continued as the reporting period closed -- issuance activity in the municipal market increased during the busy June "note season" -- and municipal rates again began to rise, narrowing the spread between municipal and taxable yields. These movements in tax-exempt interest rates during the six-month reporting period are illustrated in the chart below. [The following is a line graph showing the Short-Term Municipal Interest Rates in the First Half of 1996 Yields for 90-Day Municipal Commercial Paper.]
SHORT-TERM MUNICIPAL INTEREST RATES IN THE FIRST HALF OF 1996 YIELDS 90-Day Municipal Commercial Paper January 2, 1996 - June 28, 1996 90-Day Municipal Commercial Paper Yield 1/2/96 3.25% 1/3/96 3.30 1/4/96 3.30 1/5/96 3.15 1/8/96 3.25 1/9/96 3.25 1/10/96 3.25 1/11/96 3.30 1/12/96 3.25 1/15/96 3.25 1/17/96 3.20 1/18/96 3.20 1/19/96 3.15 1/22/96 3.15 1/23/96 3.20 1/24/96 3.20 1/25/96 3.30 1/26/96 3.40 1/29/96 3.40 1/30/96 3.35 1/31/96 3.35 2/1/96 3.30 2/2/96 3.00 2/5/96 3.00 2/6/96 3.00 2/7/96 3.15 2/8/96 3.15 2/9/96 3.20 2/12/96 3.20 2/13/96 3.20 2/14/96 3.20 2/15/96 3.20 2/16/96 3.20 2/20/96 3.20 2/21/96 3.20 2/22/96 3.20 2/23/96 3.20 2/26/96 3.20 2/27/96 3.20 2/28/96 3.20 2/29/96 3.20 3/1/96 3.25 3/4/96 3.25 3/5/96 3.20 3/6/96 3.10 3/7/96 3.15 3/8/96 3.25 3/11/96 3.30 3/12/96 3.30 3/13/96 3.30 3/14/96 3.30 3/15/96 3.30 3/18/96 3.30 3/19/96 3.30 3/20/96 3.30 3/21/96 3.30 3/22/96 3.30 3/25/96 3.30 3/26/96 3.36 3/27/96 3.35 3/28/96 3.40 3/29/96 3.40 4/1/96 3.40 4/2/96 3.35 4/3/96 3.35 4/4/96 3.35 4/5/96 3.40 4/8/96 3.45 4/9/96 3.50 4/10/96 3.50 4/11/96 3.50 4/12/96 3.50 4/15/96 3.50 4/16/96 3.50 4/17/96 3.50 4/18/96 3.50 4/19/96 3.50 4/22/96 3.50 4/23/96 3.60 4/24/96 3.65 4/25/96 3.65 4/26/96 3.65 4/29/96 3.65 4/30/96 3.65 5/1/96 3.60 5/2/96 3.60 5/3/96 3.65 5/6/96 3.65 5/7/96 3.65 5/8/96 3.65 5/9/96 3.60 5/10/96 3.60 5/13/96 3.55 5/14/96 3.60 5/15/96 3.60 5/16/96 3.60 5/17/96 3.60 5/20/96 3.55 5/21/96 3.55 5/22/96 3.55 5/23/96 3.55 5/24/96 3.55 5/28/96 3.55 5/29/96 3.55 5/30/96 3.55 5/31/96 3.55 6/3/96 3.50 6/4/96 3.45 6/5/96 3.40 6/6/96 3.40 6/7/96 3.40 6/10/96 3.40 6/11/96 3.40 6/12/96 3.40 6/13/96 3.50 6/14/96 3.50 6/17/96 3.55 6/18/96 3.55 6/19/96 3.55 6/20/96 3.55 6/21/96 3.60 6/24/96 3.60 6/25/96 3.60 6/26/96 3.60 6/27/96 3.60 6/28/96 3.60
Source: Lehman Brothers, Inc. 11 14 Q: HOW HAS THE PORTFOLIO MANAGEMENT TEAM ADJUSTED EACH FUND'S PORTFOLIO TO RESPOND TO CHANGES IN THE INTEREST RATE ENVIRONMENT? An increase in the supply of municipal money market instruments typically causes yields to rise. One strategy we attempt to use to respond to these higher yields is to increase each Fund's dollar-weighted average maturity, thus allowing it to lock in the higher yields available in the market for a longer period of time. As supply decreases, the yields on available securities also typically begin to decrease, and we attempt to shorten the Funds' dollar-weighted average maturity. Shortening maturity keeps each Fund from being locked into lower rates and provides an opportunity to buy higher-yielding securities as interest rates rise. SCHWAB TAX-EXEMPT MONEY FUND-VALUE ADVANTAGE SHARES(TM) As the supply of municipal money market instruments increased during the early part of the year, the dollar-weighted average maturity for the Schwab Tax-Exempt Money Fund was lengthened from approximately 44 days to 57 days. By mid-February, both the yields and supply of securities began to decrease, and the Fund's average maturity was gradually shortened to a low of 34 days by the end of May. The available supply of tax-exempt securities began to increase again in June, and the Fund's average maturity was increased to 63 days at the close of the reporting period in order to take advantage of the higher yields then available in the market. CALIFORNIA TAX-EXEMPT MONEY FUND-VALUE ADVANTAGE SHARES(TM) As the supply of municipal money market instruments increased in California during the early part of the year, the dollar-weighted average maturity for the Schwab California Tax-Exempt Money Fund was lengthened from approximately 42 days to 57 days. By mid-February, both the yields and supply of securities began to decrease, and the Fund's average maturity was gradually shortened to a low of 28 days by the end of May. The available supply of tax-exempt securities began to increase again in June, and the Fund's average maturity was increased to 54 days at the close of the reporting period in order to take advantage of the higher yields then available in the market. 12 15 NEW YORK TAX-EXEMPT MONEY FUND-VALUE ADVANTAGE SHARES(TM) As the reporting period began, the dollar-weighted average maturity of the Schwab New York Tax-Exempt Money Fund was 50 days -- a figure reflecting the relatively large supply and higher yields of New York's municipal money market instruments. A reduction in the supply and yields of New York municipal securities beginning in mid-January led to a corresponding reduction in the Fund's average maturity -- to 38 days. Improved supply conditions in late February allowed for a gradual extension of average maturity to approximately 64 days by the end of May. The Fund's average maturity at the close of the period was 54 days. Q. WHAT STANDARDS DOES THE PORTFOLIO MANAGEMENT TEAM USE IN SELECTING SECURITIES FOR THE PORTFOLIOS? A. Money market funds are required by law to hold high-quality securities in their portfolios. For the Schwab Value Advantage Investments(TM), we have continued to take the additional step of only investing in what are referred to as First Tier securities. In general, a First Tier security is a security that provides certain maturity limits and carries the highest credit rating from the required number of Nationally Recognized Statistical Rating Organizations (NRSROs); if unrated, it must be deemed to be of comparable quality according to guidelines approved by the Board of Trustees of The Charles Schwab Family of Funds. Certain securities owned by the each portfolio are insured or are backed by a letter of credit issued by a First Tier financial institution. These arrangements are frequently referred to as "credit enhancements" because they provide incremental levels of creditworthiness in addition to the underlying strength of the primary issuer. Insurance companies and financial institutions providing credit enhancements are reviewed by Charles Schwab Investment Management as a regular part of our thorough credit review procedures for all portfolio securities and issuers. 13 16 Q. HOW DO THE SCHWAB VALUE ADVANTAGE INVESTMENTS(TM) ACHIEVE SUCH COMPETITIVE YIELDS WHILE MAINTAINING SUCH HIGH-QUALITY INVESTMENT PORTFOLIOS? A. The Schwab Value Advantage Investments are able to maintain higher than average money market fund yields primarily because of their relatively low operating expenses. They are able to achieve low operating expense levels by requiring higher initial and ongoing balances than most other money funds. Since the cost of servicing an account is relatively unaffected by the size of the account, funds which require high balances are able to achieve lower expense levels on a per share basis. Also, unlike many other money market investments, and most other Schwab Money Funds, the Value Advantage Investments do not offer the "sweep" feature which allows automatic daily or weekly investment of free cash balances held in a shareholder's Schwab account. The "sweep" feature adds to the expense of operating a mutual fund. These lower operating expenses translate directly into higher yields for investors. Q. WHAT CHANGES HAVE OCCURRED IN CALIFORNIA'S ECONOMIC CLIMATE DURING THE SIX-MONTH REPORTING PERIOD? A. During the past two years, California's economic recovery has broadly reflected the movement and pace of national trends. While the state has regained the jobs lost during the last recession, the California unemployment rate continues to exceed the national average. Further, a persistent softness in the real estate market, and sluggish figures for new home construction, may keep unemployment levels above the national average in the near future. California has eliminated its accumulated budget deficit of approximately $2 billion and expects to build up a contingency reserve to cover future economic challenges. Lawmakers continue to struggle with maintaining necessary services - -- such as education; road, sewer and other infrastructure improvements; and public health, welfare, and safety services -- with available tax revenues against a backdrop of budget reductions. The recently approved state budget assumes levels of 14 17 federal assistance and state economic growth that may not be realized. However, 1995-1996 revenues came in above budget estimates, and California's financial position is expected to continue to improve over the next twelve months. We are satisfied with the credit quality of the California securities the Fund currently owns, and we will continue to monitor the state's economic situation closely. California's current long-term credit ratings are A1 from Moody's Investor Service, A from Standard & Poor's Corporation, and A+ from Fitch Investors Services, Inc., three well- known rating agencies. Q. WHAT CHANGES HAVE OCCURRED IN NEW YORK'S ECONOMIC CLIMATE DURING THE SIX-MONTH REPORTING PERIOD? A. New York's creditworthiness is supported by a diverse economic base and the central role New York City continues to play as a focus for international finance, tourism, and other service-related businesses. The state entered the last recession earlier than others, and its recovery has been significantly slower and less robust. At the current growth rate, New York may not reach pre-recession employment levels until late 1997. Economic growth may continue to be constrained by ongoing structural changes in the economy, corporate downsizing and relocation, cutbacks in defense spending, and high levels of public assistance. In spite of reported budgetary surpluses in 1993, 1994, and 1996, the state still faces the challenge of resolving a general fund deficit of more than $2.3 billion. In early July 1996, after the longest delay in the state's history, Governor George Pataki and the legislature agreed on a 1997 budget that will result in slightly higher New York state spending than in 1996. The success of this budget will depend largely on the state's ability to achieve forecast levels of economic growth and implement its budget strategies in a smooth and timely fashion. Growth forecasts notwithstanding, New York's economy continues to be somewhat sluggish, and major delays in adoption of the budget, and other administrative roadblocks, make it difficult for the state to implement many of the 15 18 new policies. Therefore, the state is unlikely to reverse its general fund deficit within the next twelve months. We are satisfied with the credit quality of the New York securities which the Fund currently owns, and we will continue to monitor the state's economic situation. New York's current long-term credit ratings are A from Moody's Investor Service, A- from Standard & Poor's Corporation, and A+ from Fitch Investors Services, Inc., three well-known rating agencies. 16 19 GLOSSARY OF TERMS COMMERCIAL PAPER Short-term, interest-paying obligations with maturities ranging up to 270 days, issued by banks, corporations, and other borrowers. CREDIT ENHANCEMENTS A bank letter of credit, purchase agreement, insurance, or line of credit that provides an additional level of creditworthiness for debt securities to supplement the financial strength of the issuer. DOLLAR-WEIGHTED AVERAGE MATURITY A measure of the average maturity of a mutual fund's entire portfolio, weighted by the value of its individual holdings. FEDERAL FUNDS RATE A key interest rate charged by banks when lending money to other banks overnight. FEDERAL RESERVE The central bank of the United States that establishes policies on bank reserves and regulations, determines the discount rate, and tightens or loosens the availability of credit. FIRST TIER SECURITY A security that matures within certain recognized limits and carries the top credit rating from the requisite number of NRSROs, or if unrated, is of equivalent credit quality. HIGH-QUALITY SECURITY A security ranked in the highest two rating categories by an NRSRO, or if unrated, is of equivalent credit quality. MATURITY The length of time before which the issuer of a debt security must repay the principal amount. NRSRO A Nationally Recognized Statistical Rating Organization, such as Standard & Poor's or Moody's Investor Services, which evaluates and rates the credit quality of securities. TAXABLE EQUIVALENT YIELD The return you would have to realize on a fully taxable investment in order to equal a specified tax-exempt yield; this hypothetical yield varies according to your income tax bracket. YIELD The rate of return, usually dividend or interest payments, on an investment, expressed as a percentage of market price. 17 20 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ PORTFOLIO SUMMARY (Unaudited) ASSET GROWTH
Total Total Percentage Net Assets Net Assets Growth Over as of 6/30/96 as of 12/31/95 Reporting (000s) (000s) Period - -------------------------------------------------- $ 3,899,764 $3,564,519 9% - --------------------------------------------------
AVERAGE YIELDS FOR THE PERIODS ENDED JUNE 30, 1996 SWEEP SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 2.82% 2.94% 3.04% - --------------------------------------------------
VALUE ADVANTAGE SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 3.03% 3.15% N/A - --------------------------------------------------
MATURITY SCHEDULE PERCENT OF TOTAL INVESTMENTS
Maturity Range 9/30/95 12/31/95 3/31/96 6/30/96 - ----------------------------------------------------------------- 0 - 15 Days 73.2% 66.0% 64.6% 65.9% 16 - 30 Days 3.5 0.9 0.5 1.5 31 - 60 Days 3.8 11.2 5.2 9.7 61 - 90 Days 1.9 0.2 9.7 3.5 91 - 120 Days 0.2 1.8 4.9 3.4 Over 120 Days 17.4 19.9 15.1 16.0 Weighted Average 53 Days 50 Days 48 Days 63 Days - -----------------------------------------------------------------
18 21 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ PORTFOLIO SUMMARY (Unaudited) ASSET GROWTH
Total Total Percentage Net Assets Net Assets Growth Over as of 6/30/96 as of 12/31/95 Reporting (000s) (000s) Period - -------------------------------------------------- $ 1,869,622 $1,685,703 11% - --------------------------------------------------
AVERAGE YIELDS FOR THE PERIODS ENDED JUNE 30, 1996 SWEEP SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 2.71% 2.81% 2.92% - --------------------------------------------------
VALUE ADVANTAGE SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 2.91% 3.01% N/A - --------------------------------------------------
MATURITY SCHEDULE PERCENT OF TOTAL INVESTMENTS
Maturity Range 9/30/95 12/31/95 3/31/96 6/30/96 - ----------------------------------------------------------------- 0 - 15 Days 75.7% 62.2% 65.0% 61.2% 16 - 30 Days 3.6 0.4 1.6 9.1 31 - 60 Days 2.9 14.6 3.6 9.8 61 - 90 Days 0.4 1.7 6.5 8.1 91 - 120 Days 0.0 2.2 13.3 0.9 Over 120 Days 17.4 18.9 10.0 10.9 Weighted Average 55 Days 51 Days 41 Days 54 Days - -----------------------------------------------------------------
19 22 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ PORTFOLIO SUMMARY (Unaudited) ASSET GROWTH
Total Total Percentage Net Assets Net Assets Growth Over as of 6/30/96 as of 12/31/95 Reporting (000s) (000s) Period - -------------------------------------------------- $ 258,693 $220,006 18% - --------------------------------------------------
AVERAGE YIELDS FOR THE PERIODS ENDED JUNE 30, 1996 SWEEP SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 2.62% 2.77% 2.91% - --------------------------------------------------
VALUE ADVANTAGE SHARES
Last Last Last Seven Days Three Months Twelve Months - -------------------------------------------------- 2.86% 3.01% N/A - --------------------------------------------------
MATURITY SCHEDULE PERCENT OF TOTAL INVESTMENTS
Maturity Range 9/30/95 12/31/95 3/31/96 6/30/96 - ----------------------------------------------------------------- 0 - 15 Days 72.2% 68.4% 67.6% 72.0% 16 - 30 Days 0.0 0.0 2.7 2.3 31 - 60 Days 4.0 11.7 0.0 7.8 61 - 90 Days 1.5 0.0 16.0 0.0 91 - 120 Days 4.8 3.1 1.7 1.4 Over 120 Days 17.5 16.8 12.0 16.5 Weighted Average 50 Days 48 Days 44 Days 54 Days - -----------------------------------------------------------------
20 23 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- VARIABLE RATE OBLIGATIONS--55.43%(a) ALABAMA--1.93% Alabama Housing Finance Authority Single Family Revenue Bonds (Collateralized Home Mortgage Revenue Program) Series 1996A-1/(Bayerische Landesbank Girozentrale Credit Agreement) 3.25%, 07/07/96 $12,400 $12,400 Alabama Housing Finance Authority Single Family Revenue Bonds (Collateralized Home Mortgage Revenue Program) Series 1996A-2/(Bayerische Landesbank Girozentrale Credit Agreement) 3.35%, 07/07/96 11,800 11,800 Citronelle, Alabama Industrial Development Board Pollution Control Revenue Refunding Bonds (AZKO Chemicals, Inc. Project)/(Wachovia Bank LOC) 3.40%, 07/07/96 1,100 1,100 Jefferson County, Alabama Sewer Revenue Warrants Series 1995A/(Bayerische Landesbank Girozentrale LOC) 3.40%, 07/07/96 12,500 12,500 Mobile County, Alabama Industrial Development Board Revenue Refunding Bonds (Ultraform Co. Project) Series 1985B/(Bayerische Landesbank Girozentrale LOC) 3.20%, 07/05/96 1,000 1,000 Mobile County, Alabama Industrial Development Board Pollution Control Revenue Refunding Bonds (Alabama Power Co. Project) Series 1993C 3.45%, 07/07/96 12,000 12,000 Mobile County, Alabama Industrial Development Board Pollution Control Revenue Refunding Bonds (Ultraform Co. Project) Series 1995A/ (Bayerische Landesbank Girozentrale LOC) 3.20%, 07/07/96 7,480 7,480 Montgomery, Alabama Special Care Facility Financing Authority Revenue Bonds (Baptist Medical Center VHA) Series 1985C/(AMBAC Insurance & FNB Chicago SBPA) 3.35%, 07/07/96 2,000 2,000 Montgomery, Alabama Special Care Facility Financing Authority Revenue Bonds (Baptist Medical Center VHA) Series 1985G/(AMBAC Insurance & FNB Chicago SBPA) 3.35%, 07/07/96 6,390 6,390 Montgomery, Alabama Special Care Facility Financing Authority Revenue Bonds (Baptist Medical Center VHA) Series 1985H/(AMBAC Insurance & FNB Chicago SBPA) 3.35%, 07/07/96 5,295 5,295
21 24 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Opelika, Alabama Industrial Development Board Revenue Bonds (Power Guard Project) Series 1994/ (SouthTrust Bank of Alabama LOC) 3.65%, 07/07/96 $ 2,850 $ 2,850 ------ 74,815 ------ ARIZONA--0.77% Arizona Educational Loan Marketing Corp. Revenue Bonds Series A/(MBIA Insurance & Fuji Bank SBPA) 3.50%, 07/07/96 11,605 11,605 Coconino County, Arizona Pollution Control Revenue Bonds (Tucson Electric Co.) Series 1996B/ (Societe Generale LOC) 3.35%, 07/07/96 10,700 10,700 Yavapai County, Arizona Industrial Development Authority Revenue Bonds (First Health Care Corp. Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 4,230 4,230 Yuma, Arizona Industrial Development Authority Multi Family Housing Revenue Bonds (El Encanto Apartments) Series A/(Citibank LOC) 3.55%, 07/07/96 3,000 3,000 Yuma, Arizona Industrial Development Authority Multi Family Housing Revenue Bonds (El Encanto Apartments) Series B/(Citibank LOC) 3.85%, 07/07/96 125 125 ------ 29,660 ------ CALIFORNIA--2.95% California Health Facilities Financing Authority Revenue Bonds (Catholic Health Care) Series 1996D/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 4,100 4,100 California Health Facilities Financing Authority Revenue Bonds (Pooled Loan Program) Series 1985B/ (FGIC Insurance & FGIC SPA) 2.80%, 07/07/96 6,345 6,345 California Higher Education Loan Authority Student Loan Refunding Revenue Bonds Series E1/(SLMA LOC) 3.40%, 07/07/96 5,000 5,000 California Pollution Control Financing Authority Revenue Bonds (Burney Forest Products Project) Series 1988A/ (National Westminster Bank LOC) 3.65%, 07/01/96 700 700 California Pollution Control Financing Authority Revenue Bonds (Burney Forest Products Project) Series 1989A/ (National Westminster Bank LOC) 3.65%, 07/01/96 300 300
22 25 - ------------------------------------------------------------------------------
Par Value -------- ---------- California Pollution Control Financing Authority Revenue Bonds (Southern California Edison) Series 1986B 3.45%, 07/01/96 $ 1,400 $ 1,400 California Pollution Control Financing Authority Revenue Bonds (Southern California Edison) Series 1986C 3.45%, 07/01/96 3,980 3,980 California Pollution Control Financing Authority Revenue Bonds (Southern California Edison) Series 1986D 3.45%, 07/01/96 6,000 6,000 California Pollution Control Financing Authority Waste Disposal Revenue Bonds (Western Waste Industries) Series 1994A/(Union Bank of California LOC) 3.10%, 07/07/96 2,000 2,000 California Statewide Community Development Corp. Apartment Development Revenue Bonds Series 1995-A3/ (FNMA LOC) 3.15%, 07/07/96 11,000 11,000 California Statewide Community Development Corp. Revenue Bonds Certificates of Participation (Sutter Health Obligation Group)/(AMBAC Insurance & Industrial Bank of Japan SBPA) 3.10%, 07/01/96 6,500 6,500 Irvine Ranch, California Water District Consolidated Revenue Refunding Bonds Series 1985B-1/ (Sumitomo Bank LOC) 3.45%, 07/01/96 2,000 2,000 Irvine Ranch Water District Consolidated Series 1993 General Obligation Improvement Districts 105, 140, 240, 250/(Bank of America LOC) 3.30%, 07/01/96 5,300 5,300 Irvine Ranch Water District Consolidated Series 1985 General Obligation Improvement Districts 105, 140, 240, 250/(Commerzbank LOC) 3.30%, 07/01/96 4,800 4,800 Los Angeles County, California Metropolitan Transportation Authority Proposition C Second Senior Sales Tax Revenue Refunding Bonds Series A/(MBIA Insurance & Industrial Bank of Japan SBPA) 3.00%, 07/07/96 300 300 Los Angeles County, California Pension Revenue Refunding Obligation Bonds Series 1996A/(AMBAC Insurance & Natwest Bank SBPA) 3.15%, 07/07/96 3,900 3,900 Los Angeles, California Community Redevelopment Agency Certificates of Participation (Broadway Springs Center Project) Series 1987/(Bank of America LOC) 3.20%, 07/07/96 100 100
23 26 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Northern California Power Agency Public Power Refunding Revenue Bonds (Geothermal Project 3A)/ (AMBAC Insurance & Bank of Nova Scotia LOC) 3.15%, 07/07/96 $12,500 $ 12,500 Orange County, California Sanitation District Certificates of Participation Series 1990-92A/(National Westminster Bank LOC) 3.30%, 07/01/96 5,790 5,790 Orange County, California Various Sanitation Districts Certificates of Participation (Capital Improvement Programs) Series 1990-92C/(FGIC Insurance & FGIC SPA) 3.40%, 07/01/96 17,200 17,200 Riverside County, California Certificates of Participation (Riverside County Public Facility Project) Series 1985A/ (Sanwa Bank LOC) 2.90%, 07/07/96 3,700 3,700 Simi Valley, California Multi Family Housing Certificates of Participation (Lincoln Wood Ranch Project)/ (Sumitomo Bank LOC) 3.25%, 07/07/96 2,000 2,000 Victor Valley, California Community College District Certificates of Participation (Capital Improvements Financing & Refunding Project)/(Banque Nationale de Paris & Dai-Ichi Kangyo Bank LOC) 3.15%, 07/07/96 6,400 6,400 Western Riverside County, California Regional Wastewater Authority Revenue Bonds Regulatory Wastewater Treatment/(National Westminster Bank LOC) 3.10%, 07/01/96 3,000 3,000 ------- 114,315 ------- COLORADO--4.93% Colorado Health Facilities Authority Revenue Bonds (Sisters of Charity Health) Series B/(Multiple Credit Enhancements) 3.25%, 07/07/96 23,000 23,000 Colorado Student Obligation Bond Authority Student Loan Revenue Bonds (Colorado University) Series 1989A/ (SLMA LOC) 3.40%, 07/07/96 13,700 13,700 Colorado Student Obligation Bond Authority Student Loan Revenue Bonds (Colorado University) Series 1990A/ (SLMA LOC) 3.40%, 07/07/96 23,810 23,810
24 27 - ------------------------------------------------------------------------------
Par Value -------- ---------- Colorado Student Obligation Bond Authority Student Loan Revenue Bonds (Colorado University) Series 1993B/ (SLMA LOC) 3.40%, 07/07/96 $ 4,400 $ 4,400 Colorado Student Obligation Bond Authority Student Loan Revenue Bonds (Colorado University) Series 1993C-2/ (SLMA LOC) 3.30%, 07/07/96 2,200 2,200 Denver, Colorado City & County Airport System Revenue Bonds Series 1992D/(Morgan Guaranty Trust LOC) 3.70%, 07/07/96 48,900 48,900 Denver, Colorado City & County Airport System Revenue Bonds Series 1992E/(Bank of Tokyo-Mitsubishi LOC) 3.85%, 07/07/96 30,000 30,000 Denver, Colorado City & County Airport System Revenue Bonds Series 1992F/(Bank of Montreal LOC) 3.70%, 07/07/96 16,000 16,000 Denver, Colorado City & County Airport System Revenue Bonds Series 1992G/(Credit Local de France LOC) 3.70%, 07/07/96 20,000 20,000 Douglas County, Colorado Multi Family Housing Revenue Bonds (Autumn Chase Project)/(Citibank LOC) 3.35%, 07/07/96 9,300 9,300 ------- 191,310 ------- DISTRICT OF COLUMBIA--0.11% District of Columbia Revenue Bonds Adjustable Convertible Extendable Securities (Georgetown University) Series 1988D/(Sanwa Bank SBPA) 3.60%, 07/07/96 4,200 4,200 ------- FLORIDA--2.16% Brevard County, Florida Housing Finance Authority Multi Family Housing Revenue Bonds (Palm Place Project)/ (Chemical Bank LOC) 3.60%, 07/07/96 5,000 5,000 Dade County, Florida Solid Waste Industrial Development Revenue Bonds (Montenay-Dade, Ltd. Project) Series 1988/(Banque Paribas LOC) 3.80%, 07/07/96 2,500 2,500 Dade County, Florida Solid Waste Industrial Development Revenue Bonds (Montenay-Dade, Ltd. Project) Series 1989/(Banque Paribas LOC) 3.80%, 07/07/96 1,280 1,280 Dade County, Florida Solid Waste Industrial Development Revenue Bonds (Montenay-Dade, Ltd. Project) Series 1990A/(Banque Paribas LOC) 3.80%, 07/07/96 21,403 21,403
25 28 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Dade County, Florida Water & Sewer Systems Revenue Bonds Series 1994/(FGIC Insurance & Industrial Bank of Japan SBPA) 3.30%, 07/07/96 $13,800 $13,800 Hillsborough County, Florida Industrial Development Authority Pollution Control Revenue Refunding Bonds (Tampa Electric Co. Project) Series 1992 3.55%, 07/01/96 6,400 6,400 Hillsborough County, Florida Industrial Development Authority Revenue Bonds (Seaboard Tampa Terminals Project) Series 1986A/(Barclays Bank LOC) 3.25%, 07/07/96 5,500 5,500 Orange County, Florida Housing Finance Authority Multi Family Housing Revenue Bonds (Rio Vista Project)/(First Union Bank of North Carolina LOC) 3.30%, 07/07/96 3,855 3,855 Orange County, Florida Housing Finance Authority Multi Family Housing Revenue Bonds (Smokewood Project)/(Citibank LOC) 3.35%, 07/07/96 10,000 10,000 Palm Beach County, Florida Health Facilities Authority Revenue Refunding Bonds (Joseph L. Morse Geriatric Center)/(Sun Bank LOC) 3.35%, 07/07/96 12,100 12,100 Palm Beach County, Florida Housing Finance Authority Multi Family Housing Revenue Bonds (Crystal II Project)/(Citibank LOC) 3.50%, 07/07/96 1,850 1,850 ------ 83,688 ------ GEORGIA--2.59% Burke County, Georgia Development Authority Pollution Control Revenue Bonds (Oglethorpe Power Corp. Project) Series 1993A/(FGIC Insurance & Industrial Bank of Japan SBPA) 3.30%, 07/07/96 20,040 20,040 Burke County, Georgia Development Authority Pollution Control Revenue Bonds (Oglethorpe Power Corp. Project) Series 1994A/(FGIC Insurance & Credit Local de France SBPA) 3.30%, 07/07/96 14,100 14,100 Cobb County, Georgia Housing Authority Multi Family Housing Revenue Bonds (Walton Green Project)/ (Wachovia Bank LOC) 3.55%, 07/07/96 14,000 14,000
26 29 - ------------------------------------------------------------------------------
Par Value -------- ---------- Cobb County, Georgia Housing Authority Multi Family Housing Revenue Bonds (Williamstown Apartment Project)/(Wachovia Bank LOC) 3.70%, 07/07/96 $ 2,000 $ 2,000 Dekalb County, Georgia Development Authority Industrial Development Revenue Bonds (Park North Business Center Project)/(Wachovia Bank LOC) 3.40%, 07/07/96 5,140 5,140 Dekalb County, Georgia Development Authority Industrial Development Revenue Bonds (Siemens Energy, Inc. Project)/(Siemens Guaranty) 3.45%, 07/07/96 3,750 3,750 Dekalb County, Georgia Development Authority Revenue Bonds (American Cancer Society)/(Trust Company Bank LOC) 3.35%, 07/07/96 1,975 1,975 Dekalb County, Georgia Housing Authority Multi Family Housing Revenue Bonds (Wood Hills Apartment Project)/(Bank of Montreal LOC) 3.45%, 07/07/96 5,250 5,250 Douglas County, Georgia Development Authority Revenue Bonds (Mima Inc. Project)/(Wachovia Bank LOC) 3.70%, 07/07/96 4,300 4,300 Gainesville, Georgia Redevelopment Authority Revenue Refunding Bonds (Downtown Gainvesville Development Project)/(Trust Company Bank LOC) 3.35%, 07/07/96 1,475 1,475 Hapeville, Georgia Industrial Development Authority Revenue Bonds / (Swiss Bank LOC) 3.60%, 07/01/96 700 700 Richmond County, Georgia Industrial Development Authority Revenue Bonds (Bok Group Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 5,000 5,000 Rockmart, Georgia Industrial Development Authority Revenue Bonds (CW Matthews Contracting)/ (Wachovia Bank LOC) 3.55%, 07/07/96 2,000 2,000 Roswell, Georgia Housing Authority Multi Family Housing Revenue Bonds (Gables Realty Wood Crossing Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 11,650 11,650 Smyrna, Georgia Housing Authority Multi Family Housing Revenue Bonds (Walton Park LP Project)/ (Wachovia Bank LOC) 3.55%, 07/07/96 8,000 8,000
27 30 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Villa Rica, Georgia Industrial Development Revenue Bonds (Lowes Home Centers, Inc. Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 $ 1,200 $ 1,200 ------- 100,580 ------- HAWAII--1.51% Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Adventist Health System West)/(Union Bank of California LOC) 3.40%, 07/07/96 3,100 3,100 Hawaii State Housing Finance & Development Corp. Multi Family Housing Revenue Bonds (Rental Housing System) Series 1990A/(Industrial Bank of Japan LOC) 3.65%, 07/07/96 17,100 17,100 Hawaii State Housing Finance & Development Corp. Multi Family Housing Revenue Bonds (Rental Housing System) Series 1990B/(Industrial Bank of Japan LOC) 3.65%, 07/07/96 19,600 19,600 Hawaii State Housing Finance & Development Corp. Multi Family Housing Revenue Bonds (Nani Mauna Loa Project) Series 1995A/(Citibank LOC) 3.75%, 07/07/96 4,350 4,350 Honolulu, Hawaii City & County Multi Family Housing Revenue Bonds (HaleKua Gardens Project) Series A/ (Bank of Tokyo-Mitsubishi LOC) 3.65%, 07/07/96 5,256 5,256 Honolulu, Hawaii City & County Multi Family Housing Revenue Bonds (Iolani Regents Project) Series 1990A/ (Bank of Hawaii LOC) 3.50%, 07/07/96 9,225 9,225 ------- 58,631 ------- ILLINOIS--8.93% Aurora, Kane & Dupage Counties, Illinois Industrial Development Revenue Bonds (North American Plastics Corp.)/(First of America, Illinois LOC) 3.60%, 07/07/96 5,400 5,400 Centralia, Illinois Industrial Development Authority Revenue Bonds (Consolidated Foods Corp./Hollywood Brands, Inc. Project)/(Wachovia Bank LOC) 3.40%, 07/07/96 4,500 4,500 Chicago, Illinois General Obligation Tender Bonds Series 1992B/(Canadian Imperial Bank of Commerce LOC) 3.30%, 07/07/96 10,400 10,400
28 31 - ------------------------------------------------------------------------------
Par Value -------- ---------- Chicago, Illinois Industrial Development Revenue Bonds (Morse Automotive) Series 1995/(American National Bank & Trust Co. LOC) 3.66%, 07/07/96 $ 3,000 $ 3,000 Chicago, Illinois O'Hare International Airport Revenue Bonds Adjustable Convertible Extendable Securities (General Airport Second Lien) Series B-1/(Sanwa Bank LOC) 3.55%, 07/07/96 9,800 9,800 Chicago, Illinois O'Hare International Airport Adjustable Convertible Extendable Securities Revenue Bonds (General Airport Second Lien) Series B-2/(Sanwa Bank LOC) 3.55%, 07/07/96 9,800 9,800 Chicago, Illinois O'Hare International Airport Revenue Bonds (General Airport Second Lien) Series 1994C/ (Societe Generale LOC) 3.40%, 07/07/96 7,400 7,400 Chicago, Illinois O'Hare International Airport Revenue Bonds (General Airport Second Lien) Series A/(Westpac Banking Corp. LOC) 3.40%, 07/07/96 12,800 12,800 Illinois Development Finance Agency Industrial Development Revenue Bonds (Chicago Corrugated Box Co.) Series 1996/(American National Bank & Trust Co. LOC) 3.63%, 07/07/96 1,500 1,500 Illinois Development Finance Authority Hospital Revenue Bonds (Palos Community Hospital) Series 1994-1/(Credit Suisse SBPA) 3.30%, 07/07/96 33,700 33,700 Illinois Development Finance Authority Hospital Revenue Bonds (Palos Community Hospital) Series 1994-2/(Credit Suisse SBPA) 3.30%, 07/07/96 4,000 4,000 Illinois Development Finance Authority Industrial Development Revenue Bonds (Knead Dough Baking Co.)/(Bank of America LOC) 3.65%, 07/07/96 8,555 8,555 Illinois Development Finance Authority Industrial Development Revenue Bonds (Molding Project)/ (Northern Trust LOC) 3.60%, 07/07/96 1,100 1,100 Illinois Development Finance Authority Industrial Development Revenue Bonds (Pekin Paperboard Co. LP) Series 1994/(Northern Trust LOC) 3.60%, 07/07/96 5,500 5,500
29 32 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Illinois Development Finance Authority Residential Rental Revenue Bonds (F.C. Harris Pavillion Project) Series 1994/(FNMA Collateral Investment Agreement) 3.75%, 07/07/96 $ 1,000 $ 1,000 Illinois Development Finance Authority Residential Rental Revenue Bonds (River Oak)/(Swiss Bank LOC) 3.40%, 07/07/96 9,255 9,255 Illinois Educational Facility Authority Revenue Bonds (Chicago Historical Society)/ (Bank of Tokyo-Mitsubishi LOC) 3.35%, 07/07/96 8,200 8,200 Illinois Educational Facility Authority Revenue Bonds (Chicago Zoological Society Brookfield Zoo) Series B/(Chemical Bank LOC) 3.45%, 07/07/96 2,000 2,000 Illinois Educational Facility Authority Revenue Bonds (Illinois Institute of Technology) Series 1990A/ (Northern Trust LOC) 3.35%, 07/07/96 11,300 11,300 Illinois Educational Facility Authority Revenue Bonds (Northwestern University)/(FNB Chicago SBPA) 3.40%, 07/07/96 22,200 22,200 Illinois Health Facility Authority Revenue Bonds (Bensenville Home Society) Series 1989A/ (American National Bank & Trust Co. LOC) 3.45%, 07/07/96 2,450 2,450 Illinois Health Facility Authority Revenue Bonds (Franciscan Village Project) Series 1989A/ (Commonwealth Bank of Australia LOC) 3.40%, 07/07/96 1,975 1,975 Illinois Health Facility Authority Revenue Bonds (Hospital Sisters Services) Series E/(MBIA Insurance & Morgan Guaranty Trust SBPA) 3.40%, 07/07/96 4,300 4,300 Illinois Health Facility Authority Revenue Bonds (Ingalls Memorial Hospital) Series 1985C/(LaSalle National Bank LOC) 3.55%, 07/07/96 1,100 1,100 Illinois Health Facility Authority Revenue Bonds (Revolving Fund Pooled Loan) Series 1985C/(FNB Chicago LOC) 3.40%, 07/07/96 6,000 6,000 Illinois Health Facility Authority Revenue Bonds (Revolving Fund Pooled Loan) Series 1985D/(FNB Chicago LOC) 3.40%, 07/07/96 20,000 20,000 Illinois Health Facility Authority Revenue Bonds (Streeterville Corp.) Series A/(FNB Chicago LOC) 3.35%, 07/07/96 14,400 14,400
30 33 - ------------------------------------------------------------------------------
Par Value -------- ---------- Illinois Health Facility Authority Revenue Bonds (Washington & Jane Smith Home) Series 1991/ (Comerica Bank LOC) 3.50%, 07/07/96 $ 2,800 $ 2,800 Illinois State Toll Highway Authority Revenue Bonds Series B/(MBIA Insurance & Societe Generale SBPA) 3.30%, 07/07/96 63,400 63,400 Kane County, Illinois Revenue Bonds (Glenwood School for Boys)/(Harris Trust & Savings Bank LOC) 3.35%, 07/07/96 9,000 9,000 Lombard, Illinois Industrial Development Revenue Refunding Bonds (B & H Partnership Project)/ (Comerica Bank LOC) 3.68%, 07/07/96 1,850 1,850 McHenry County, Illinois Industrial Development Authority Revenue Refunding Bonds (Dean Foods Co. Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 2,675 2,675 New Lenox, Illinois Industrial Development Revenue Bonds (Panduit Corp. Project)/(Commerzbank LOC) 3.45%, 07/07/96 4,400 4,400 Oak Forest, Illinois Revenue Bonds (Homewood Pool) Series 1989/(FNB Chicago LOC) 3.40%, 07/07/96 37,000 37,000 Rockford, Illinois Industrial Development Revenue Bonds (Industrial Welding Supply, Inc. Project)/ (American National Bank & Trust Co. LOC) 3.63%, 07/07/96 2,000 2,000 Yorkville, Illinois Industrial Development Revenue Bonds (F.E. Wheaton & Co. Inc. Project) Series 1996 3.73%, 07/07/96 1,600 1,600 ------- 346,360 ------- INDIANA--0.48% Crawfordsville, Indiana Industrial Development Revenue Bonds (National Service Industries, Inc. Project)/ (Wachovia Bank LOC) 3.40%, 07/07/96 2,000 2,000 Hammond, Indiana Economic Development Revenue Bonds (Lear Seating Corp. Project) Series 1994/ (Chemical Bank LOC) 4.00%, 07/07/96 8,500 8,500 Indiana Health Facility Financing Authority Adjustable Convertible Extendable Securities Hospital Revenue Bonds (Methodist Hospital) Series C/(Credit Suisse SBPA) 3.35%, 07/07/96 4,100 4,100
31 34 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Indianapolis, Indiana Economic Development Authority Revenue Bonds (Herff-Jones, Inc. Project)/ (Wachovia Bank LOC) 3.60%, 07/07/96 $ 4,100 $ 4,100 ------ 18,700 ------ IOWA--0.11% Iowa Higher Education Loan Authority Adjustable Convertible Extendable Securities Revenue Bonds (Education Loan Private College Facility)/ (MBIA Insurance & Dai-Ichi Kangyo Bank SBPA) 3.85%, 07/07/96 4,100 4,100 ------ KANSAS--0.17% Kansas City, Kansas Industrial Revenue Bonds (Owen Industries, Inc. Project) Series 1987/(Sanwa Bank LOC) 3.65%, 07/07/96 1,800 1,800 Wichita, Kansas Airport Facilities Revenue Bonds (Flightsafety International, Inc.)/(Wachovia Bank LOC) 3.55%, 07/07/96 3,000 3,000 Wichita, Kansas Health Facilities Authority Revenue Bonds (CSJ Health System) Series XXV/ (Sumitomo Bank LOC) 3.65%, 07/07/96 1,900 1,900 ------ 6,700 ------ KENTUCKY--0.74% Davies County, Kentucky Solid Waste Disposal Facility Revenue Bonds (Scott Paper) Series 1994B/ (ABN-AMRO Bank LOC) 3.85%, 07/01/96 300 300 Lebanon, Kentucky Industrial Development Revenue Bonds (Wallace Computer Services, Inc.)/ (Wachovia Bank LOC) 3.50%, 07/07/96 5,000 5,000 Mason County, Kentucky Pollution Control Financing Authority Revenue Bonds (East Kentucky Power Corp.) Series 1984B-1/(N.R.U.--C.F.C. Guaranty) 3.15%, 07/07/96 12,500 12,500 Murray, Kentucky Industrial Development Authority Revenue Bonds (Dean Foods Co.)/ (Wachovia Bank LOC) 3.55%, 07/07/96 6,000 6,000 Owensboro, Kentucky Limited Obligation Revenue Bonds (Dart Polymers, Inc. Project) Series 1985A/ (National Westminster Bank LOC) 3.75%, 07/07/96 1,900 1,900
32 35 - ------------------------------------------------------------------------------
Par Value -------- ---------- Wilson County, Kentucky Industrial Development Board Revenue Bonds (Perma Pipe Project)/(Harris Trust & Savings Bank LOC) 3.65%, 07/07/96 $ 3,150 $ 3,150 ------- 28,850 ------- LOUISIANA--3.12% De Soto Parish, Louisiana Pollution Control Financing Authority Revenue Refunding Bonds (Central Louisiana Electric Co.) Series 1991A/(Swiss Bank LOC) 3.25%, 07/07/96 400 400 De Soto Parish, Louisiana Pollution Control Financing Authority Revenue Refunding Bonds (Central Louisiana Electric Co.) Series 1991B/(Swiss Bank LOC) 3.25%, 07/07/96 15,000 15,000 East Baton Rouge Parish, Louisiana Pollution Control Revenue Refunding Bonds (Exxon Corp.) Series 1989 3.60%, 07/01/96 3,000 3,000 Louisiana Public Facilities Authority Hospital Revenue Bonds (Willis Knighton Medical Project)/ (AMBAC Insurance & Mellon Bank SBPA) 3.30%, 07/07/96 15,300 15,300 New Orleans, Louisiana Aviation Board Revenue Bonds (Passenger Facility Charge Projects) Series 1994/(Banque Paribas & Canadian Imperial Bank of Commerce LOC) 3.45%, 07/07/96 6,300 6,300 New Orleans, Louisiana Aviation Board Revenue Refunding Bonds Series B/(MBIA Insurance & Industrial Bank of Japan SBPA) 3.25%, 07/07/96 73,020 73,020 Rapides Parish, Louisiana Industrial Development Board Pollution Control Revenue Refunding Bonds (Central Louisiana Electric Co.) Series 1991/(Swiss Bank LOC) 3.25%, 07/07/96 8,150 8,150 ------- 121,170 ------- MAINE--0.29% Maine Regional Waste System, Inc. Solid Waste Resource Recovery Revenue Bonds Series 1993-M/ (Midland Bank LOC) 3.50%, 07/07/96 5,090 5,090 Maine Regional Waste System, Inc. Solid Waste Resource Recovery Revenue Bonds Series 1995-O/ (Midland Bank LOC) 3.50%, 07/07/96 6,000 6,000 ------- 11,090 -------
33 36 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- MARYLAND--2.32% Baltimore, Maryland Industrial Development Authority Revenue Bonds (City of Baltimore Capital Acquisition Program) Series 1986/(Dai-Ichi Kangyo Bank LOC) 3.55%, 07/07/96 $52,400 $52,400 Maryland State Health & Higher Educational Facility Authority Pooled Revenue Bonds (Kennedy Kreiger Project) Series 1993D/(FNB Maryland LOC) 3.40%, 07/07/96 2,000 2,000 Maryland State Health & Higher Educational Facility Authority Pooled Revenue Bonds (Pooled Loan Program) Series A/(FNB Chicago LOC) 3.35%, 07/07/96 9,700 9,700 Montgomery County, Maryland Housing Opportunity Commission Housing Revenue Bonds (Draper Lane) Series 1991I/(FGIC Insurance & Sumitomo Bank SBPA) 3.55%, 07/07/96 16,500 16,500 Northeast Maryland Waste Disposal Authority Resource Recovery Revenue Bonds (Hartford County)/ (AMBAC Insurance & Credit Local de France LOC) 3.30%, 07/07/96 9,600 9,600 ------ 90,200 ------ MICHIGAN--0.09% Michigan State Strategic Fund Limited Obligation Revenue Bonds (Dean Foods Co. Project)/(Wachovia Bank LOC) 3.55%, 07/07/96 3,500 3,500 ------ MINNESOTA--0.70% Bloomington, Minnesota Port Authority Tax Increment Revenue Refunding Bonds (Mall of America) Series 1995A/(Credit Local de France SBPA & FSA Insurance) 4.00%, 07/07/96 10,000 10,000 St. Paul, Minnesota Housing Redevelopment Authority Multi Family Housing Development Bonds (Multi City Joint Rental Housing Program) Series 1985A/ (FHLB Des Moines LOC) 3.50%, 07/07/96 17,100 17,100 ------ 27,100 ------ MISSOURI--0.70% Independence, Missouri Industrial Development Authority Revenue Bonds (Resthaven Project)/(Credit Local de France LOC) 3.40%, 07/07/96 9,640 9,640
34 37 - ------------------------------------------------------------------------------
Par Value -------- ---------- Mexico, Missouri Industrial Development Authority Revenue Bonds (ABP Midwest Manufacturing Co. Project) Series 1995/(Royal Bank of Scotland LOC) 3.25%, 07/07/96 $ 7,600 $ 7,600 Missouri State Development Finance Board Industrial Development Revenue Bonds (H.R. Williams Mill Supply Project) Series 1995/(Union Bank of Switzerland LOC) 3.50%, 07/07/96 3,100 3,100 St. Charles, Missouri Industrial Development Authority Demand Revenue Refunding Bonds (Casalon Apartments Project)/(Citibank LOC) 3.35%, 07/07/96 3,100 3,100 Washington, Missouri Industrial Development Authority Revenue Bonds (Pauwels Transformer Project)/ (Generale Bank LOC) 3.70%, 07/07/96 3,900 3,900 ------ 27,340 ------ MONTANA--0.35% Forsyth, Montana Pollution Control Financing Authority Revenue Bonds (Portland General Electric Coal Stripping Project) Series 1983B/(Swiss Bank LOC) 3.30%, 07/07/96 6,500 6,500 Montana State Health Facility Authority Revenue Bonds (Health Care Pooled Loan Program) Series 1985A/ (FGIC Insurance & Norwest Bank of Minnesota SBPA) 3.40%, 07/07/96 7,195 7,195 ------ 13,695 ------ NEVADA--0.43% Clark County, Nevada Airport Improvement Revenue Refunding Bonds Series 1993A/(MBIA Insurance & Industrial Bank of Japan SBPA) 3.30%, 07/07/96 13,850 13,850 Clark County, Nevada Industrial Development Revenue Bonds (Cogeneration Project No. 2)/(Swiss Bank LOC) 3.80%, 07/07/96 2,700 2,700 ------ 16,550 ------ NEW HAMPSHIRE--0.21% New Hampshire Higher Education & Health Facilities Authority Revenue Bonds (VHA New England, Inc.) Series 1985B/(AMBAC Insurance & FNB Chicago SBPA) 3.35%, 07/07/96 1,000 1,000
35 38 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- New Hampshire State Housing Finance Authority Multi Family Housing Revenue Bonds (Fairways Project) Series 1994-1/(General Electric Capital Corp. LOC) 3.55%, 07/07/96 $ 7,000 $ 7,000 ------ 8,000 ------ NEW JERSEY--0.16% Port Authority of New York & New Jersey Special Obligation Adjustable Rate Revenue Versatile Structure Obligation Series 2/(Morgan Guaranty Trust LOC) 3.50%, 07/01/96 6,100 6,100 ------ NEW MEXICO--0.22% Albuquerque, New Mexico Airport Revenue Bonds Subordinated Lien Series 1996A/(Bayerische Landesbank Girozentrale LOC) 3.40%, 07/07/96 4,500 4,500 Albuquerque, New Mexico Gross Receipts Ledgers Tax Adjustable Rate Tender Revenue Bonds Series 1994/ (Canadian Imperial Bank of Commerce LOC) 3.40%, 07/07/96 700 700 Belen, New Mexico Industrial Development Revenue Bonds (Solo Cup, Inc. Project)/(Wachovia Bank LOC) 3.55%, 07/07/96 3,250 3,250 ------ 8,450 ------ NEW YORK--1.80% New York City, New York General Obligation Bonds Series 1993A Subseries A-5/(Kredietbank LOC) 3.60%, 07/01/96 60 60 New York City, New York General Obligation Bonds Series 1994B Subseries B-2/(MBIA Insurance & Bank Austria SBPA) 3.60%, 07/01/96 500 500 New York City, New York General Obligation Bonds Series 1995B Subseries B-10/(Union Bank of Switzerland LOC) 3.15%, 07/07/96 7,500 7,500 New York City, New York Housing Development Corp. Special Obligation Revenue Bonds (East 96th Street Project) Series 1990A/(Bank of Tokyo-Mitsubishi LOC) 3.30%, 07/07/96 11,300 11,300 New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series 1994G/(FGIC SPA & FGIC Insurance) 3.55%, 07/07/96 100 100
36 39 - ------------------------------------------------------------------------------
Par Value -------- ---------- New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series 1995A/(FGIC Insurance) 3.75%, 07/01/96 $2,600 $2,600 New York City, New York Variable Rate General Obligation Bonds Series 1995B1 Subseries B-8/ (Bank of Tokyo-Mitsubishi LOC) 3.25%, 07/07/96 1,200 1,200 New York State Dormitory Authority Revenue Bonds (Masonic Hall Asylum)/(AMBAC Insurance & Credit Local de France LOC) 3.10%, 07/07/96 400 400 New York State Energy Research & Development Authority Electric Facilities Revenue Bonds (Long Island Lighting Co. Project) Series 1993A/(Toronto-Dominion Bank LOC) 3.05%, 07/07/96 3,000 3,000 New York State Energy Research & Development Authority Electric Facilities Revenue Bonds (Long Island Lighting Co. Project) Series 1994A/(Union Bank of Switzerland LOC) 3.00%, 07/07/96 3,500 3,500 New York State Energy Research & Development Authority Pollution Control Refunding Revenue Bonds (Orange & Rockland Utilities, Inc. Project) Series 1994A/(FGIC Insurance & Societe Generale SBPA) 3.10%, 07/07/96 9,400 9,400 New York State Energy Research & Development Authority Pollution Control Revenue Bonds (New York Electric & Gas)/(Union Bank of Switzerland LOC) 3.45%, 07/01/96 600 600 New York State Energy Research & Development Authority Pollution Control Revenue Bonds (Niagara Mohawk Power) Series 1985A/(Toronto-Dominion Bank LOC) 3.70%, 07/01/96 6,000 6,000 New York State Local Government Assistance Corp. Variable Rate Revenue Bonds Series 1993A/(Credit Suisse, Swiss Bank & Union Bank of Switzerland LOC) 3.10%, 07/07/96 1,300 1,300 New York State Local Government Assistance Corp. Variable Rate Revenue Bonds Series 1995B/ (Bank of Nova Scotia LOC) 3.10%, 07/07/96 7,500 7,500 New York State Local Government Assistance Corp. Variable Rate Revenue Bonds Series 1995G/ (National Westminster Bank LOC) 3.10%, 07/07/96 4,300 4,300
37 40 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- New York State Local Government Assistance Corp. Variable Rate Revenue Bonds Series 1995F/ (Toronto-Dominion Bank LOC) 3.05%, 07/07/96 $ 4,000 $ 4,000 Triborough Bridge & Tunnel Authority, New York Special Obligation Bridge Revenue Bonds Series 1994/(FGIC SPA & FGIC Insurance) 3.05%, 07/07/96 6,000 6,000 Yonkers, New York Industrial Development Agency Civic Facilities Revenue Bonds (Consumers Union Facility Project)/(AMBAC Insurance & Credit Local de France SBPA) 3.20%, 07/07/96 800 800 ------ 70,060 ------ NORTH CAROLINA--2.10% North Carolina Medical Care Community Hospital Revenue Bonds (Moses H. Cone Memorial Hospital Project)/(Wachovia Bank LOC) 3.25%, 07/07/96 23,000 23,000 North Carolina Medical Care Community Hospital Revenue Bonds (Pooled Equipment Financing Project)/ (MBIA Insurance & Banque Paribas SBPA) 3.70%, 07/07/96 600 600 Wake County, North Carolina Industrial Facility & Pollution Control Financing Authority Revenue Bonds (Carolina Power & Light) Series 1985B/ (Sumitomo Bank LOC) 3.35%, 07/07/96 2,900 2,900 Wake County, North Carolina Industrial Facility & Pollution Control Financing Authority Revenue Bonds (Carolina Power & Light) Series 1985C/ (Sumitomo Bank LOC) 3.35%, 07/07/96 55,050 55,050 ------ 81,550 ------ NORTH DAKOTA--0.52% Mercer County, North Dakota National Rural Utility Pollution Control Revenue Bonds (Basin Electric Power Cooperative Antelope Project) Series 1984C/ (N.R.U.--C.F.C. Guaranty) 3.15%, 07/07/96 8,150 8,150 Richland County, North Dakota Industrial Development Revenue Bonds (Minn-Dak Farmers Co-Op) Series 1986B/(Norwest Bank LOC) 3.65%, 07/07/96 1,000 1,000
38 41 - ------------------------------------------------------------------------------
Par Value -------- ---------- Richland County, North Dakota Solid Waste Disposal Revenue Bonds (Minn-Dak Farmers Co-Op) Series 1996A/(Norwest Bank LOC) 3.65%, 07/07/96 $11,000 $11,000 ------ 20,150 ------ OHIO--0.90% Columbus, Ohio Electric System Revenue Bonds Series 1984/(Union Bank of Switzerland LOC) 3.55%, 07/07/96 6,880 6,880 Columbus, Ohio General Obligation Bonds Series 1995-1/(Westdeutsche Landesbank LOC) 3.00%, 07/07/96 6,000 6,000 Dayton, Ohio Special Facilities Revenue Refunding Bonds (Emery Air Freight) Series 1993F/ (ABN-AMRO Bank LOC) 3.60%, 07/07/96 8,000 8,000 Ohio Air Quality Development Authority Revenue Bonds (JMG Funding, LP) Series 1994A/ (Societe Generale LOC) 3.50%, 07/07/96 12,000 12,000 Ohio Housing Finance Agency Multi Family Housing Revenue Bonds (Kenwood Congregate Retirement Community) Series 1985/(Morgan Guaranty Trust LOC) 3.60%, 07/07/96 2,000 2,000 ------ 34,880 ------ OKLAHOMA--0.53% Muldrow, Oklahoma Public Works Authority Industrial Development Revenue Bonds (Oklahoma Foods Project)/ (Rabobank Nederland LOC) 3.55%, 07/07/96 6,300 6,300 Oklahoma City, Oklahoma Industrial & Cultural Facilities Revenue Bonds (Oklahoma Christian College)/(Sumitomo Bank LOC) 3.68%, 07/07/96 9,000 9,000 Oklahoma Development Financing Authority Revenue Bonds (Shawnee Funding Ltd.)/(Bank of Nova Scotia LOC) 3.50%, 07/07/96 4,000 4,000 Tulsa, Oklahoma Industrial Development Authority Hospital Revenue Bonds (Hillcrest Medical Center) Series 1988/ (Bank of Tokyo-Mitsubishi LOC) 3.50%, 07/07/96 670 670
39 42 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Tulsa, Oklahoma Industrial Development Authority Industrial Development Revenue Bonds (Thomas & Betts Project) Series 1991/(Wachovia Bank LOC) 3.55%, 07/07/96 $ 700 $ 700 ------ 20,670 ------ OREGON--1.36% Medford, Oregon Hospital Facility Authority Revenue Bonds (Rogue Valley Manor Project) Series 1985/ (Banque Paribas LOC) 3.70%, 07/07/96 7,700 7,700 Oregon State Economic Development Commission Economic & Industrial Development Revenue Bonds/(Wachovia Bank LOC) 3.40%, 07/07/96 4,100 4,100 Oregon State General Obligation Notes Series 1973F/ (Bank of Tokyo-Mitsubishi LOC) 3.35%, 07/07/96 11,185 11,185 Oregon State General Obligation Notes Series 1973H/ (Bank of Tokyo-Mitsubishi LOC) 3.25%, 07/07/96 24,700 24,700 Port of Portland, Oregon Industrial Development Revenue Bonds (Schnitzer Steel Project)/(Comerica Bank LOC) 3.40%, 07/07/96 5,000 5,000 ------ 52,685 ------ PENNSYLVANIA--1.04% Montgomery County, Pennsylvania Industrial Development Authority Revenue Bonds (Seton Medical Supply Co. Project)/(Banque Paribas LOC) 3.75%, 07/07/96 5,500 5,500 Pennsylvania Energy Development Authority Revenue Bonds (B & W Ebensberg Project) Series 1986/ (Swiss Bank LOC) 3.40%, 07/07/96 2,100 2,100 Quakertown, Pennsylvania Hospital Authority Revenue Bonds (Hospital Pooled Financing Group) Series 1985/(PNC Bank LOC) 3.85%, 07/07/96 15,000 15,000 Sayre, Pennsylvania Health Care Facilities Authority Revenue Bonds (VHA Capital Finance Revenue) Series 1985B/(AMBAC Insurance & FNB Chicago SBPA) 3.25%, 07/07/96 4,365 4,365 Sayre, Pennsylvania Health Care Facilities Authority Revenue Bonds (VHA Capital Finance Revenue) Series 1985F/(AMBAC Insurance & FNB Chicago SBPA) 3.25%, 07/07/96 4,100 4,100
40 43 - ------------------------------------------------------------------------------
Par Value -------- ---------- Washington County, Pennsylvania Higher Education Authority Revenue Bonds (Pooled Equipment Lease)/ (Sanwa Bank LOC) 3.30%, 07/07/96 $9,400 $ 9,400 ------ 40,465 ------ RHODE ISLAND--0.05% Rhode Island Student Loan Authority Higher Education Revenue Bonds Series 1995-1/(National Westminster Bank LOC) 3.45%, 07/07/96 2,000 2,000 ------ SOUTH CAROLINA--0.52% Greenville County, South Carolina Industrial Development Revenue Bonds (Quality Thermoforming Project)/(South Carolina National Bank LOC) 3.55%, 07/07/96 1,200 1,200 South Carolina Jobs Economic Development Authority Economic Development Revenue Bonds (Electric City Printing Project)/(Wachovia Bank LOC) 3.55%, 07/07/96 3,300 3,300 South Carolina Jobs Economic Development Authority Hospital Facilities Revenue Bonds (Baptist Health Care System)/(Credit Local de France LOC) 3.30%, 07/07/96 6,900 6,900 South Carolina Jobs Economic Development Authority Industrial Development Revenue Bonds (Ado Corp. Project)/(South Carolina National Bank LOC) 3.55%, 07/07/96 800 800 South Carolina State Port Authority Revenue Bonds (Junior Lien)/(South Carolina National Bank LOC) 3.25%, 07/07/96 3,300 3,300 Spartanburg County, South Carolina Industrial Development Authority Revenue Bonds (Bemis, Inc.)/ (Wachovia Bank LOC) 3.40%, 07/07/96 4,750 4,750 ------ 20,250 ------ SOUTH DAKOTA--0.57% Rapid City, South Dakota Industrial Development Corp. Revenue Bonds (Property Associates Project)/ (Lloyds Bank LOC) 3.30%, 07/07/96 6,025 6,025
41 44 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- South Dakota State Health & Educational Facilities Authority Revenue Bonds (McKenna Hospital) Series 1994/(MBIA Insurance & Banque Paribas SBPA) 3.45%, 07/07/96 $16,000 $16,000 ------ 22,025 ------ TENNESSEE--1.76% Metropolitan Nashville & Davidson County, Tennessee Health & Education Facility Board Revenue Bonds Series A/(FGIC Insurance & Barclays Bank Line Of Credit) 3.40%, 07/07/96 1,200 1,200 Metropolitan Nashville & Davidson County, Tennessee Industrial Development Multi Family Housing Revenue Bonds (Arbor Crest) Series 1985B/(Wachovia Bank LOC) 3.40%, 07/07/96 4,000 4,000 Metropolitan Nashville & Davidson County, Tennessee Industrial Development Multi Family Housing Revenue Bonds (Arbor Knoll) Series 1985A/(Wachovia Bank LOC) 3.40%, 07/07/96 1,000 1,000 Metropolitan Nashville & Davidson County, Tennessee Industrial Development Multi Family Housing Revenue Bonds (Western Hills Apartments)/(Sumitomo Bank LOC) 4.00%, 07/07/96 7,035 7,035 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995C-1/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 5,750 5,750 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995C-2/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 4,600 4,600 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995C-3/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 10,000 10,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995E-3/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 3,000 3,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996D-1 (AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 3,430 3,430
42 45 - ------------------------------------------------------------------------------
Par Value -------- ---------- Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996E-1/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 $ 7,150 $ 7,150 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996E-4/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 3,000 3,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996F-1/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 9,000 9,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996F-2/(AMBAC Insurance & Kredietbank LOC) 3.20%, 07/07/96 9,000 9,000 ------ 68,165 ------ TEXAS--6.13% Amarillo, Texas Health Facilities Corp. Hospital Revenue Bonds (High Plains Baptist Hospital) Series 1985/(Banque Paribas LOC) 3.75%, 07/07/96 9,300 9,300 Bexar County, Texas Health Facilities Development Corp. Revenue Bonds (Chandler Memorial Home Project) Series 1995/(Bank One LOC) 3.40%, 07/07/96 5,170 5,170 Capital, Texas Industrial Development Corp. Industrial Development Revenue Refunding Bonds (National Service Industries, Inc. Project)/(Wachovia Bank LOC) 3.40%, 07/07/96 4,950 4,950 Euless, Texas Industrial Development Authority Revenue Bonds (Ferguson Enterprises, Inc.)/ (Wachovia Bank LOC) 3.40%, 07/07/96 4,850 4,850 Greater East Texas Higher Education Authority Student Loan Revenue Bonds Series 1992A/(SLMA LOC) 3.40%, 07/07/96 17,000 17,000 Greater East Texas Higher Education Authority Student Loan Revenue Bonds Series 1995B/(SLMA LOC) 3.60%, 07/07/96 40,000 40,000 Hays, Texas Memorial Health Facilities Development Corp. Hospital Revenue Bonds (AHS/Sunbelt Central Texas Medical Center Project) Series 1990A/(Swiss Bank LOC) 3.35%, 07/07/96 9,000 9,000
43 46 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Hays, Texas Memorial Health Facilities Development Corp. Hospital Revenue Bonds (AHS/Sunbelt Central Texas Medical Center Project) Series 1990B/(Swiss Bank LOC) 3.35%, 07/07/96 $16,300 $16,300 Lavaca-Navidad River Authority, Texas Water Supply System Contract Revenue Bonds (Formosa Plastics Corp. Project)/(Canadian Imperial Bank of Commerce LOC) 3.60%, 07/07/96 12,900 12,900 Lower Neches Valley Authority, Texas Industrial Development Corp. Pollution Control Revenue Bonds (Mobil Corp. Neches River Treatment Project) Series 1994 3.40%, 07/07/96 12,000 12,000 Midlothian, Texas Industrial Development Corp. Pollution Control Revenue Bonds (Box-Crow Co. Project)/(Union Bank of Switzerland LOC) 4.10%, 07/07/96 1,400 1,400 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996B/ (AMBAC Insurance & SLMA Credit Agreement) 3.40%, 07/07/96 4,000 4,000 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996D/ (AMBAC Insurance & SLMA Credit Agreement) 3.40%, 07/07/96 4,000 4,000 Panhandle Plains, Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1992A/ (SLMA LOC) 3.40%, 07/07/96 9,800 9,800 Port Authority of Corpus Christi, Texas Nueces County Marine Terminal Revenue Bonds (Reynolds Metals Co.)/(Barclays Bank LOC) 3.55%, 07/07/96 3,100 3,100 Robertson County, Texas Industrial Development Corp. Industrial Development Revenue Bonds (Sanderson Farms Project) Series 1995/(Harris Trust & Savings Bank LOC) 3.40%, 07/07/96 4,300 4,300 Texas Health Facilities Development Corp. Adjustable Convertible Extendable Securities Revenue Bonds (North Texas Pooled Health) Series 1985B/ (Banque Paribas LOC) 3.40%, 07/07/96 11,000 11,000 Texas Small Business Industrial Development Corp. Industrial Development Revenue Bonds (Texas Public Facility Capital Access)/(Multiple Credit Enhancements) 3.15%, 07/07/96 41,795 41,795
44 47 - ------------------------------------------------------------------------------
Par Value -------- ---------- Texas State Revenue Refunding Bonds (Veterans Housing Assistance Fund) Series 1995 3.30%, 07/07/96 $24,000 $ 24,000 Trinity River Authority, Texas Pollution Control Revenue Bonds (Lafarge Corp. Project)/(Banque Nationale de Paris LOC) 3.75%, 07/07/96 3,100 3,100 ------- 237,965 ------- VERMONT--0.11% Vermont Education & Health Buildings Financing Agency Revenue Bonds (VHA New England) Series 1985G/ (AMBAC Insurance & FNB Chicago SBPA) 3.30%, 07/07/96 4,240 4,240 ------- VIRGINIA--0.18% Lynchburg, Virginia Industrial Development Authority Hospital Facility Revenue Bonds (First Mortgage VHA Mid-Atlantic States, Inc.) Series 1985A/ (AMBAC Insurance & Mellon Bank SBPA) 3.35%, 07/07/96 500 500 Lynchburg, Virginia Industrial Development Authority Hospital Facility Revenue Bonds (First Mortgage VHA Mid-Atlantic States, Inc.) Series 1985B/ (AMBAC Insurance & Mellon Bank SBPA) 3.35%, 07/07/96 400 400 Lynchburg, Virginia Industrial Development Authority Hospital Facility Revenue Bonds (First Mortgage VHA Mid-Atlantic States, Inc.) Series 1985C/ (AMBAC Insurance & Mellon Bank SBPA) 3.35%, 07/07/96 600 600 Lynchburg, Virginia Industrial Development Authority Hospital Facility Revenue Bonds (First Mortgage VHA Mid-Atlantic States, Inc.) Series 1985F/ (AMBAC Insurance & Mellon Bank SBPA) 3.35%, 07/07/96 5,600 5,600 ------- 7,100 ------- WASHINGTON--0.98% Snohomish County, Washington Public Utilities District #1 Electric Revenue Refunding Bonds (Generation Systems)/(MBIA Insurance & Industrial Bank of Japan SBPA) 3.30%, 07/07/96 20,000 20,000
45 48 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Washington State Health Care Facilities Authority Revenue Refunding Bonds (Sisters of St. Joseph of Peace) Series 1993/(MBIA Insurance & U.S. Bank of Washington SBPA) 3.35%, 07/07/96 $12,600 $12,600 Washington State Housing Finance Commission Multi Family Mortgage Revenue Bonds (Canyon Lake II Project) Series 1993A/(U.S. Bank of Washington LOC) 3.40%, 07/07/96 4,565 4,565 Washington State Housing Finance Commission Multi Family Mortgage Revenue Bonds (Canyon Lake II Project) Series 1994/(U.S. Bank of Washington LOC) 3.90%, 07/01/96 735 735 ------ 37,900 ------ WEST VIRGINIA--0.06% West Virginia State Hospital Finance Authority Hospital Revenue Bonds (St. Joseph's Hospital Project) Series 1987/(Bank of Tokyo-Mitsubishi LOC) 3.30%, 07/07/96 2,200 2,200 ------ WISCONSIN--0.81% Chilton, Wisconsin Industrial Development Revenue Refunding Bonds (Kaytee Products, Inc. Project) Series 1995/(Bank One Milwaukee LOC) 3.55%, 07/07/96 1,865 1,865 Fairwater, Wisconsin Industrial Development Revenue Bonds (Dean Foods Co. Project) Series 1990/ (Wachovia Bank LOC) 3.40%, 07/07/96 1,450 1,450 Lac Du Flambeau Band of Lake Superior Chippewa Indians, Wisconsin Special Obligation Bonds (Simpson Electric Co. Project) Series 1985/(Barclays Bank LOC) 3.45%, 07/07/96 6,100 6,100 Milwaukee, Wisconsin Redevelopment Authority Industrial Development Revenue Bonds (Field Container Corp. LP) Series 1994/(Northern Trust LOC) 3.60%, 07/07/96 5,000 5,000 Prentice, Wisconsin Industrial Development Refunding Revenue Bonds (Blount, Inc.) Series 1992/ (Morgan Guaranty Trust LOC) 3.30%, 07/07/96 2,363 2,363 Sheboygan, Wisconsin Pollution Control Financing Authority Pollution Control Revenue Bonds (Wisconsin Power & Light Co.) 3.55%, 07/07/96 1,000 1,000
46 49 - ------------------------------------------------------------------------------
Par Value -------- ---------- Wisconsin State Health & Education Facilities Authority Revenue Bonds (Sinai Samaritan) Series 1994A/ (Marshall & Ilsley Bank LOC) 3.35%, 07/07/96 $13,755 $ 13,755 --------- 31,533 --------- WYOMING--0.04% Lincoln County, Wyoming Pollution Control Revenue Authority Revenue Bonds (Exxon Corp. Project) Series 1984B 3.60%, 07/01/96 1,600 1,600 ---------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $2,150,542) 2,150,542 --------- VARIABLE RATE TENDER OPTION BONDS--2.15%(a) GEORGIA--0.41% Georgia State Public Improvement General Obligation Tender Option Bonds Series 1995B (Citi-157)/ (Citibank Tender Option) 3.49%, 07/07/96 16,000 16,000 --------- NEVADA--0.64% Nevada State General Obligation Tender Option Bonds (Colorado River Community) Series 1994 (Citi-143)/ (Citibank Tender Option) 3.54%, 07/07/96 25,000 25,000 --------- TEXAS--0.31% Harris County, Texas Toll Road Subordinated Lien Highway Tender Option Bonds (Citi-138)/ (Citibank Tender Option) 3.54%, 07/07/96 7,000 7,000 Harris County, Texas Toll Road Subordinated Lien Highway Tender Option Bonds (Citi-139)/ (Citibank Tender Option) 3.54%, 07/07/96 5,000 5,000 --------- 12,000 --------- WASHINGTON--0.79% King County, Washington Limited Tax General Obligation Department of Metropolitan Services Tender Option Bonds Series 1994A (Citi-136)/(Citibank Tender Option) 3.54%, 07/07/96 15,570 15,570
47 50 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- King County, Washington Limited Tax General Obligation Department of Metropolitan Services Tender Option Bonds Series 1994A (Citi-137)/ (Citibank Tender Option) 3.54%, 07/07/96 $10,000 $10,000 Washington State Public Power Supply System Nuclear Project Number 2 Revenue Tender Option Bonds Series 1990C (Citi-145)/(FGIC Insurance, Escrowed to Maturity with Government Securities & Citibank Tender Option) 3.54%, 07/07/96 5,000 5,000 ------ 30,570 ------ TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $83,570) 83,570 ------ VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS--3.58%(a)(c) CONNECTICUT--0.19% Connecticut State General Obligation General Purpose Public Improvement Tender Option Bond Partnership Series 1991A (BTP-151)/(Bankers Trust Tender Option) 3.45%, 07/07/96 7,365 7,365 ------ GEORGIA--0.40% Georgia State Public Improvement General Obligation Tender Option Bond Partnership Series 1993B & 1993C (BTP-135)/(Bankers Trust Tender Option) 3.45%, 07/07/96 3,865 3,865 Georgia State Public Improvement General Obligation Tender Option Bond Partnership Series 1993B & 1993C (BTP-140)/(Bankers Trust Tender Option) 3.45%, 07/07/96 4,575 4,575 Georgia State Public Improvement General Obligation Tender Option Bond Partnership Series 1994B (BTP-148)/(Bankers Trust Tender Option) 3.45%, 07/07/96 7,100 7,100 ------ 15,540 ------ ILLINOIS--0.39% Chicago, Illinois Metropolitan Water Reclamation District Greater Chicago General Obligation Tender Option Bond Partnership (Cook County) (BTP-71)/(Automated Data Processing, Inc. Tender Option) 3.50%, 07/07/96 9,870 9,870
48 51 - ------------------------------------------------------------------------------
Par Value -------- ---------- Chicago, Illinois School Finance Authority General Obligation School Finance Tender Option Bond Partnership (BTP-70)/(MBIA Insurance & Automated Data Processing, Inc. Tender Option) 3.50%, 07/07/96 $ 5,365 $ 5,365 ------ 15,235 ------ MARYLAND--0.09% Baltimore County, Maryland General Obligation Consolidated Public Improvement Tender Option Bond Partnership Series 1991 (BTP-132)/(Bankers Trust Tender Option & Escrowed to Maturity with Government Securities) 3.45%, 07/07/96 3,621 3,621 ------ MINNESOTA--0.12% Minnesota State Various Purpose General Obligation Sports Health Club Tax Tender Option Bond Partnership (BTP-65)/(Automated Data Processing, Inc. Tender Option & Escrowed to Maturity with Government Securities) 3.50%, 07/07/96 4,455 4,455 ------ SOUTH CAROLINA--0.14% South Carolina State Capital Improvement Revenue Refunding Tender Option Bond Partnership (BTP-147)/ (Bankers Trust Tender Option) 3.45%, 07/07/96 5,370 5,370 ------ TEXAS--0.92% Regents of the University of Texas Permanent University Fund Tender Option Bond Partnership Series 1992A (BTP-143)/(Permanent University Fund Guaranty, Bankers Trust Tender Option & Escrowed to Maturity with Government Securities) 3.45%, 07/07/96 10,685 10,685 Texas State General Obligation General Purpose Public Improvement Tender Option Bond Partnership Series 1993B (BTP-116)/(Bankers Trust Tender Option) 3.45%, 07/07/96 10,170 10,170 Texas State Public Finance Authority General Obligation Tender Option Bond Partnership Series 1994 (BTP-127)/ (Bankers Trust Tender Option) 3.45%, 07/07/96 14,980 14,980 ------ 35,835 ------
49 52 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- VIRGINIA--0.34% Chesterfield County, Virginia General Obligation Public Improvement & Refunding Tender Option Bond Partnership Series 1991 (BTP-136)/(Bankers Trust Tender Option) 3.50%, 07/07/96 $6,025 $ 6,025 Fairfax County, Virginia Public Improvement General Obligation Tender Option Bond Partnership Series 1991A (BTP-131)/(Bankers Trust Tender Option & Escrowed to Maturity with Government Securities) 3.45%, 07/07/96 7,146 7,146 ------ 13,171 ------ WASHINGTON--0.63% King County, Washington Unlimited Tax General Obligation Tender Option Bond Partnership Series 1993C (BTP-56)/(Automated Data Processing, Inc. Tender Option) 3.50%, 07/07/96 6,365 6,365 Washington State General Obligation Tender Option Bond Partnership Series 1990 (BTP-152)/(Bankers Trust Tender Option) 3.45%, 07/07/96 5,655 5,655 Washington State Public Power Supply System Nuclear Project Number 2 Revenue Refunding Tender Option Bond Partnership Series 1990C (BTP-130)/ (Bankers Trust Tender Option) 3.55%, 07/07/96 5,740 5,740 Washington State Public Power Supply System Nuclear Project Number 2 Revenue Refunding Tender Option Bond Partnership Series 1993B (BTP-137)/ (Bankers Trust Tender Option) 3.55%, 07/07/96 6,685 6,685 ------ 24,445 ------ WISCONSIN--0.36% Wisconsin State Public Improvement General Obligation Tender Option Bond Partnership Series 1990 (BTP-62)/ (Automated Data Processing, Inc. Tender Option & Escrowed to Maturity with Government Securities) 3.50%, 07/07/96 4,500 4,500
50 53 - ------------------------------------------------------------------------------
Par Value -------- ---------- Wisconsin State Public Improvement General Obligation Tender Option Bond Partnership Series 1992A (BTP-142)/(Bankers Trust Tender Option & Escrowed to Maturity with Government Securities) 3.45%, 07/07/96 $ 9,480 $ 9,480 ------- 13,980 ------- TOTAL VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS (Cost $139,017) 139,017 ------- BOND ANTICIPATION NOTES--1.23%(b) NEW JERSEY--1.23% Cherry Hill Township, New Jersey Bond Anticipation Notes 3.05%, 10/16/96 32,622 32,688 East Brunswick Township, New Jersey Bond Anticipation Notes 3.67%, 05/23/97 14,885 14,959 ------- TOTAL BOND ANTICIPATION NOTES (Cost $47,647) 47,647 ------- GENERAL OBLIGATIONS--3.17%(b) ALASKA--0.03% Valdez, Alaska Unlimited General Obligation Bonds Series 1990/(MBIA Insurance) 3.70%, 01/01/97 1,000 1,014 ------- DELAWARE--0.04% Wilmington, Delaware General Obligation Bonds Series 1992A/(MBIA Insurance) 3.85%, 07/01/97 1,500 1,517 ------- FLORIDA--0.14% Dade County, Florida School District General Obligation Bonds/(MBIA Insurance) 3.70%, 08/01/96 5,450 5,464 ------- GEORGIA--0.06% Chatham County, Georgia School District Unlimited General Obligation Bonds Series 1995B/(FGIC Insurance) 3.65%, 08/01/96 1,160 1,161
51 54 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Clayton County, Georgia School District Unlimited General Obligation Bonds/(Escrowed to Maturity with Government Securities) 3.70%, 10/01/96 $ 1,335 $ 1,347 ------ 2,508 ------ HAWAII--0.08% Hawaii State Unlimited General Obligation Bonds Series 1986BF/(Escrowed to Maturity with Government Securities) 3.40%, 08/01/96 1,000 1,018 Honolulu, Hawaii City & County Refunding & Improvement General Obligation Bonds Series 1993B 3.65%, 10/01/96 2,000 2,001 ------ 3,019 ------ ILLINOIS--0.45% Illinois State Unlimited General Obligation Bonds Series 1995/(FGIC Insurance) 3.10%, 12/01/96 17,500 17,616 ------ KANSAS--0.07% Overland Park, Kansas Temporary Notes Unlimited General Obligation Bonds Series 1996A 3.68%, 04/01/97 1,600 1,601 Overland Park, Kansas Temporary Notes Unlimited General Obligation Bonds Series 1996B 3.68%, 04/01/97 1,100 1,101 ------ 2,702 ------ LOUISIANA--0.03% New Orleans, Louisiana Public Improvement Unlimited General Obligation Bonds Series 1988/(FSA Insurance) 3.50%, 10/01/96 1,000 1,010 ------ MASSACHUSETTS--0.16% Massachusetts State Unlimited General Obligation Bonds Series 1986/(Escrowed to Maturity with Government Securities) 3.72%, 10/01/96 3,170 3,259 Massachusetts State Unlimited General Obligation Bonds Series 1986A/(FGIC Insurance) 3.20%, 10/01/96 2,820 2,905 ------ 6,164 ------ MINNESOTA--0.44% Minnesota State General Obligation Bonds Series 1986/ (Escrowed to Maturity with Government Securities) 3.89%, 08/01/96 9,500 9,524
52 55 - ------------------------------------------------------------------------------
Par Value -------- ---------- Minnesota State Unlimited General Obligation Bonds Series 1988 3.15%, 08/01/96 $1,050 $ 1,053 Minnesota State Unlimited General Obligation Bonds Series 1993 3.70%, 08/01/96 1,000 1,001 Minnesota State Unlimited General Obligation Bonds Series 1995 3.70%, 08/01/96 5,400 5,408 ------ 16,986 ------ NEW JERSEY--0.03% Lacey Township, New Jersey School District Unlimited General Obligation Bonds Series 1992 3.80%, 09/01/96 1,000 1,001 ------ NEW MEXICO--0.15% Albuquerque, New Mexico Municipal School District Number 12 General Obligation Bonds 3.60%, 08/01/96 1,700 1,701 Bernalillo County, New Mexico Unlimited General Obligation Bonds Series 1995 3.60%, 08/01/96 2,080 2,084 New Mexico State Capital Projects State General Obligation Bonds 3.75%, 08/01/96 2,000 2,000 ------ 5,785 ------ NEW YORK--0.03% Albany, New York Unlimited General Obligation Bonds Series 1993/(AMBAC Insurance) 3.45%, 01/15/97 1,150 1,153 ------ SOUTH CAROLINA--0.17% South Carolina State Capital Improvement General Obligation Bonds Series 1995B-1 3.70%, 08/01/96 6,400 6,411 ------ TEXAS--0.72% Amarillo, Texas Independent School District Unlimited General Obligation Bonds/(Escrowed to Maturity with Government Securities) 3.72%, 08/01/96 1,000 1,004 Dallas County, Texas Limited Tax General Obligation Bonds (Permanent Improvement Project) Series 1992A 3.15%, 08/15/96 1,980 1,991
53 56 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Dallas County, Texas Unlimited Tax General Obligation Bonds (Road Improvement Project) Series 1992 3.15%, 08/15/96 $ 1,940 $ 1,951 Harris County, Texas Unlimited General Obligation Bonds Series 1991 3.23%, 10/01/96 20,000 20,112 Round Rock, Texas Limited General Obligation Bonds/ (FGIC Insurance) 3.25%, 08/01/96 1,795 1,799 Tarrant County, Texas Limited General Obligation Bonds 3.68%, 07/15/96 1,000 1,002 ------ 27,859 ------ VIRGINIA--0.03% Fairfax County, Virginia Unlimited General Obligation Refunding Bonds Series 1989B/(Escrowed to Maturity with Government Securities) 3.75%, 11/01/96 1,320 1,342 ------ WASHINGTON--0.34% Port of Vancouver, Washington Limited General Obligation Bonds Series 1996A/(AMBAC Insurance) 3.70%, 12/01/96 400 400 Washington State General Obligation Bonds Series 1986D/ (Escrowed to Maturity with Government Securities) 3.40%, 09/01/96 985 993 3.25%, 09/01/96 5,000 5,040 Washington State General Obligation Refunding Bonds Series R-1992-C 3.70%, 09/01/96 1,850 1,853 Washington State Motor Vehicles Fuel Tax Unlimited General Obligation Bonds Series 1986E/(Escrowed to Maturity with Government Securities) 3.65%, 09/01/96 1,000 1,007 Washington State Unlimited General Obligation Bonds Series R-1994-A 3.60%, 08/01/96 4,000 4,000 ------ 13,293 ------ WISCONSIN--0.20% Milwaukee, Wisconsin Metropolitan Sewer District Unlimited Tax General Obligation Bonds Series 1987A 3.70%, 09/01/96 1,000 1,003 Wisconsin State Unlimited General Obligation Bonds Series 1986B/(Escrowed to Maturity with Government Securities) 3.14%, 08/01/96 5,000 5,094
54 57 - ------------------------------------------------------------------------------
Par Value -------- ---------- Wisconsin State Unlimited General Obligation Bonds Series 1989C/(Escrowed to Maturity with Government Securities) 3.65%, 05/01/97 $ 250 $ 259 3.60%, 05/01/97 1,395 1,447 ------- 7,803 ------- TOTAL GENERAL OBLIGATIONS (Cost $122,647) 122,647 ------- MANDATORY PUT BONDS--6.00%(b) CALIFORNIA--0.48% California Higher Education Loan Authority Student Loan Revenue Bonds Series 1987A/(National Westminster Bank LOC) 3.95%, 07/01/97 2,500 2,500 California Higher Education Loan Authority Student Loan Revenue Bonds Series 1992B/(SLMA LOC) 3.90%, 07/01/97 5,000 5,000 California Higher Education Loan Authority Student Loan Revenue Bonds Series 1995E-5/(SLMA LOC) 3.75%, 06/01/97 11,000 11,000 ------- 18,500 ------- FLORIDA--0.09% Orange County, Florida Industrial Development Authority Industrial Development Revenue Bonds (General Accident Insurance Project) 4.00%, 12/01/96 3,500 3,500 ------- ILLINOIS--1.31% Chicago, Illinois General Obligation Tender Notes Series 1996/(Landesbank Hessen-Thuringen Girozentrale LOC) 3.10%, 02/04/97 51,000 51,000 ------- INDIANA--0.21% Indiana State Housing Finance Authority Single Family Mortgage Revenue Bonds Series 1994C 4.00%, 07/01/96 3,500 3,500 Indiana State Housing Finance Authority Single Family Mortgage Revenue Bonds Series 1994D 3.90%, 07/01/96 4,700 4,700 ------- 8,200 -------
55 58 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- IOWA--0.04% Le Claire, Iowa Electric Revenue Bonds Series B 3.34%, 09/01/96 $ 1,490 $ 1,492 ------ KENTUCKY--0.06% Calvert City, Kentucky Industrial Development Revenue Refunding Bonds (SKW Alloys, Inc. Lease Rent) Series 87/(Bayerische Vereinsbank LOC) 3.60%, 10/01/96 2,220 2,220 ------ NEW MEXICO--0.08% Santa Fe, New Mexico Single Family Mortgage Revenue Bonds (FNMA/GNMA Mortgage Backed Securities Project) Series 1995B/(FGIC Insurance) 3.70%, 11/15/96 3,300 3,300 ------ TENNESSEE--0.04% Metropolitan Nashville & Davidson County, Tennessee Industrial Development Board Revenue Bonds (General Accident Insurance Project) Series 1986 4.10%, 11/01/96 1,500 1,500 ------ TEXAS--2.31% Greater East Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1993A/(SLMA LOC) 3.85%, 05/01/97 48,150 48,150 Greater East Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1993B-1/(SLMA LOC) 3.70%, 04/01/97 11,000 11,000 Greater East Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1992B/(SLMA LOC) 3.90%, 07/01/97 14,000 14,000 Greater East Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1993B-2/(SLMA LOC) 3.85%, 06/01/97 6,500 6,500 Greater East Texas Higher Education Loan Authority Student Loan Revenue Bonds Series 1995B/(SLMA LOC) 3.90%, 07/01/97 10,000 10,000 ------ 89,650 ------
56 59 - ------------------------------------------------------------------------------
Par Value -------- ---------- UTAH--0.63% Utah County, Utah Environmental Improvement Revenue Bonds (USX Corp. Project)/(Wachovia Bank LOC) 3.54%, 10/01/96 $24,575 $ 24,575 ------- VIRGINIA--0.26% Harrisonburg, Virginia Redevelopment Housing Authority Revenue Bonds (Rolling Brook Village Apartments) Series A/(GNMA Collateral Investment Agreement & Guardian Savings & Loan LOC) 3.50%, 02/01/97 10,000 10,000 ------- WASHINGTON--0.49% Washington State Housing Finance Commission Multi Family Mortgage Revenue Bonds Series 1A-S/(FGIC Insurance) 3.80%, 06/01/97 19,000 19,000 ------- TOTAL MANDATORY PUT BONDS (Cost $232,937) 232,937 ------- OPTIONAL PUT BONDS--1.61%(b) MISSOURI--1.53% Missouri State Environmental Improvement & Energy Resources Authority Pollution Control Revenue Bonds (Union Electric Co.) Series 1985A/(Swiss Bank LOC) 3.80%, 06/01/97 31,000 31,000 Missouri State Environmental Improvement & Energy Resources Authority Pollution Control Revenue Bonds (Union Electric Co.) Series 1985B/(Union Bank of Switzerland LOC) 3.80%, 06/01/97 28,500 28,500 ------- 59,500 ------- NEW HAMPSHIRE--0.08% New Hampshire Higher Education & Health Facilities Authority Revenue Bonds (Dartmouth College) Series 1985A-G 3.80%, 06/01/97 2,980 2,980 ------- TOTAL OPTIONAL PUT BONDS (Cost $62,480) 62,480 ------- REVENUE ANTICIPATION NOTES--0.13%(b) NEW YORK--0.13% Rockland County, New York Revenue Anticipation Notes Series 1996 3.73%, 05/16/97 5,000 5,022 ------ TOTAL REVENUE ANTICIPATION NOTES (Cost $5,022) 5,022 ------
57 60 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- REVENUE BONDS--3.58%(b) ALASKA--0.13% Anchorage, Alaska Telephone Utilities Refunding Revenue Bonds Series 1994A/(AMBAC Insurance) 3.25%, 12/01/96 $ 5,000 $ 5,005 ------ ARIZONA--0.05% Arizona State University Revenue Bonds Series 1988/ (AMBAC Insurance & Escrowed to Maturity with Government Securities) 3.80%, 07/01/96 1,795 1,831 ------ ARKANSAS--0.05% Jonesboro, Arkansas Sales & Use Tax Revenue Bonds Series 1996/(FSA Insurance) 3.80%, 05/01/97 2,000 2,000 ------ CALIFORNIA--0.02% Los Angeles, California Municipal Improvement Corp. Lease Revenue Bonds (Real Property Acquisition) Series 1995X/(AMBAC Insurance) 3.65%, 01/01/97 835 845 ------ FLORIDA--0.85% Florida State Department of General Services Division Facilities Management Revenue Bonds (Florida Facilities Pool Project) Series 1986/(Escrowed to Maturity with Government Securities) 3.45%, 09/01/96 16,000 16,432 Florida State Department of General Services Division Facilities Management Revenue Refunding Bonds (Florida Facilities Pool Project) Series 1993/(AMBAC Insurance) 3.45%, 09/01/96 4,065 4,074 Florida State Municipal Power Agency Revenue Refunding Bonds (St. Lucie Project)/(Escrowed to Maturity with Government Securities) 3.65%, 10/01/96 1,000 1,028 Gainesville, Florida Utilities Systems Revenue Bonds Series 1996A 3.20%, 10/01/96 1,290 1,292 Jacksonville, Florida Electric Authority Revenue Bonds Series 1988-3A/(Escrowed to Maturity with Government Securities) 3.73%, 10/01/96 2,030 2,080
58 61 - ------------------------------------------------------------------------------
Par Value -------- ---------- Orange County, Florida School District Revenue Anticipation Notes Series 1996A 3.60%, 04/15/97 $8,000 $ 8,039 ------ 32,945 ------ GEORGIA--0.03% Clayton County, Georgia Hospital Authority Revenue Anticipation Certificates (Southern Regulatory Medical Center)/(MBIA Insurance) 3.55%, 08/01/96 1,000 1,002 ------ ILLINOIS--0.11% Chicago, Illinois Waterworks Revenue Refunding Bonds/ (Escrowed to Maturity with Government Securities) 3.65%, 11/01/96 1,000 1,021 Illinois Health Facility Authority Revenue Bonds (Grant Hospital Chicago)/(Escrowed to Maturity with Government Securities) 3.34%, 12/01/96 3,000 3,110 ------ 4,131 ------ INDIANA--0.03% Indiana State Transportation Financing Authority Highway Revenue Bonds Series A/(AMBAC Insurance) 3.80%, 06/01/97 1,000 1,004 ------ KENTUCKY--0.15% Maysville, Kentucky Industrial Building Revenue Bonds (Green Tokai Building)/(Bank of America LOC) 3.55%, 07/07/96 5,740 5,740 ------ LOUISIANA--0.08% Louisiana Public Facility Authority Revenue Bonds (Equipment Leasing Debt Public Safety)/ (AMBAC Insurance) 3.40%, 08/01/96 3,325 3,327 ------ MARYLAND--0.25% Maryland State Department of Transportation Consolidated Transportation Revenue Refunding Bonds Series 1991 3.80%, 09/01/96 1,200 1,204 Maryland State Department of Transportation County Transportation Revenue Bonds Series 1993 3.22%, 12/15/96 8,500 8,520 ----- 9,724 -----
59 62 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- MICHIGAN--0.17% Michigan State Underground Storage Tank Financing Assurance Authority Revenue Bonds Series 1996I/ (AMBAC Insurance) 3.80%, 05/01/97 $6,500 $6,563 ----- NEW HAMPSHIRE--0.13% New Hampshire Municipal General Obligation Revenue Bonds Series 1995A/(AMBAC Insurance) 3.60%, 08/15/96 5,095 5,105 ----- NEW MEXICO--0.02% New Mexico State Severence Tax Special Tax Revenue Bonds Series 1992A 3.40%, 07/01/96 725 725 ----- NORTH DAKOTA--0.13% Fargo, North Dakota Sales Tax Revenue Refunding Bonds/(AMBAC Insurance) 3.85%, 07/01/96 710 710 ----- OREGON--0.15% Oregon State Housing & Community Services Department Mortgage Revenue Bonds/(Escrowed to Maturity with Government Securities) 3.85%, 05/15/97 5,000 5,000 ----- PENNSYLVANIA--0.1% Pennsylvania Intergovernmental Cooperative Authority Special Tax Revenue Refunding Bonds (Philly Funding Program)/(FGIC Insurance) 3.75%, 06/15/97 2,500 2,529 Pennsylvania State Turnpike Commission Turnpike Revenue Bonds Series 1986A/(Escrowed to Maturity with Government Securities) 3.65%, 12/01/96 3,100 3,215 ----- 5,744 ----- RHODE ISLAND--0.20% Rhode Island Depositors Economic Protection Corp. Special Obligation Revenue Bonds Series A/(MBIA Insurance & Escrowed to Maturity with Government Securities) 3.00%, 08/01/96 7,440 7,613 -----
60 63 - ------------------------------------------------------------------------------
Par Value -------- ---------- TEXAS--0.97% Burlington, Texas Waterworks & Sewer Revenue Refunding Bonds Series 1989A/(AMBAC Insurance) 3.67%, 06/01/97 $1,345 $1,382 Houston, Texas Water & Sewer System Revenue Exchange Prior Lien Revenue Bonds Series 1986A/(Escrowed to Maturity with Government Securities) 3.65%, 12/01/96 300 310 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-01/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 1,525 1,576 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-02/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 1,700 1,757 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-03/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 1,850 1,912 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-04/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,050 2,119 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-05/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,250 2,326 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-06/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,475 2,559 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-07/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,725 2,818 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-08/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 3,000 3,102 Southland Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-09/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 3,300 3,412 Trinity River Authority, Texas Regional Wastewater System Revenue Refunding Bonds Series A/(AMBAC Insurance) 3.80%, 08/01/96 1,500 1,501
61 64 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- University of Texas Constitutional Appropriation Revenue Bonds Series 1995 3.50%, 08/15/96 $1,115 $ 1,116 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-01/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 615 635 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-02/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 500 517 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-05/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 1,675 1,732 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-06/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 1,825 1,887 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-07/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,025 2,094 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-08/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,225 2,301 Western Oaks, Texas Municipal Utilities District Revenue Bonds Series 1986-09/(Escrowed to Maturity with Government Securities) 3.35%, 11/15/96 2,450 2,533 ------ 37,589 ------ WASHINGTON--0.05% Seattle, Washington Municipal Light & Power Revenue Refunding Bonds/(Escrowed to Maturity with Government Securities) 3.58%, 10/01/96 1,000 1,029 Washington Suburban Sanitation District General Construction Refunding Revenue Bonds Second Series/ (Escrowed to Maturity with Government Securities) 3.58%, 11/01/96 1,000 1,030 ------- 2,059 ------- TOTAL REVENUE BONDS (Cost $138,662) 138,662 -------
62 65 - ------------------------------------------------------------------------------
Par Value -------- ---------- TAX AND REVENUE ANTICIPATION NOTES--9.61%(b) CALIFORNIA--6.63% California School Cash Reserve Program Authority Pooled Tax & Revenue Anticipation Notes Series 1995A/ (MBIA Insurance) 3.80%, 07/03/96 $ 695 $ 695 3.75%, 07/03/96 500 500 California School Cash Reserve Program Authority Pooled Tax & Revenue Anticipation Notes Series 1996-97/ (MBIA Insurance)(d) 3.85%, 07/02/97 153,455 154,781 Cupertino, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 6,500 6,536 Fullerton, California Joint Unified High School District Tax & Revenue Anticipation Notes Series 1995-96 3.80%, 11/14/96 3,725 3,734 Kern County, California High School District Tax & Revenue Anticipation Notes Series 1995-96 4.05%, 09/19/96 20,000 20,029 Los Angeles County, California Tax & Revenue Anticipation Notes Series 1995-96/(Multiple Credit Enhancements) 3.65%, 07/01/96 950 950 Los Angeles, California Tax & Revenue Anticipation Notes Series 1996-97(d) 3.87%, 06/19/97 7,000 7,040 Martinez, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 3,300 3,318 Mountain View, California School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/02/97 2,000 2,013 Mountain View, California Unified High School District Tax & Revenue Anticipation Notes (Los Altos, California) Series 1996-97(d) 3.80%, 07/02/97 2,500 2,517 Pleasanton, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/05/96 4,030 4,030 San Diego County, California Tax & Revenue Anticipation Notes 3.42%, 09/30/96 1,580 1,584 San Francisco, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 3.89%, 07/25/96 10,000 10,004
63 66 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- San Joaquin County, California Tax & Revenue Anticipation Notes Series 1995-96 3.97%, 10/15/96 $30,000 $ 30,045 San Lorenzo, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 4,800 4,826 Sunnyvale, California Elementary School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 4,500 4,530 ------- 257,132 ------- IOWA--1.30% Iowa School Corporations Warrant Certificates Series 1996A/(FSA Insurance) 3.95%, 06/27/97 50,000 50,380 ------- NEW MEXICO--0.05% New Mexico State Severence Tax Revenue Bonds Series 1996A 3.75%, 07/01/97 1,987 2,018 ------- TEXAS--1.63% Houston, Texas Tax & Revenue Anticipation Notes Series 1996-97(d) 3.90%, 06/30/97 20,000 20,115 Texas State Tax & Revenue Anticipation Notes Series 1995-1996A 4.05%, 08/30/96 8,000 8,009 3.95%, 08/30/96 8,190 8,200 3.94%, 08/30/96 1,000 1,001 3.90%, 08/30/96 2,000 2,003 3.33%, 08/30/96 10,000 10,021 3.18%, 08/30/96 1,700 1,704 3.10%, 08/30/96 10,600 10,633 Texas State Tax & Revenue Anticipation Notes Series 1995-96A 3.15%, 08/30/96 1,600 1,604 ------- 63,290 ------- TOTAL TAX AND REVENUE ANTICIPATION NOTES (Cost $372,820) 372,820 -------
64 67 - ------------------------------------------------------------------------------
Par Value -------- ---------- TAX-EXEMPT COMMERCIAL PAPER--13.39%(b) ARIZONA--1.22% Maricopa County, Arizona Pollution Control Financing Authority Pollution Control Revenue Bonds (Southern California Edison Palo Verde Project) Series 1985B 3.60%, 08/06/96 $ 6,450 $ 6,450 3.40%, 08/28/96 5,600 5,600 Maricopa County, Arizona Pollution Control Financing Authority Pollution Control Revenue Bonds (Southern California Edison Palo Verde Project) Series 1985C 3.55%, 08/15/96 4,500 4,500 3.55%, 08/19/96 11,750 11,750 Maricopa County, Arizona Pollution Control Financing Authority Pollution Control Revenue Bonds (Southern California Edison Palo Verde Project) Series 1985G 3.60%, 08/08/96 600 600 3.50%, 08/08/96 4,500 4,500 3.40%, 08/28/96 4,000 4,000 Salt River Project, Arizona Agricultural Improvement & Power District Promissory Notes/(Multiple Credit Enhancements) 3.65%, 08/16/96 9,950 9,950 ------- 47,350 ------- CALIFORNIA--0.58% Orange County, California Local Transportation Authority Sales Tax Revenue Bonds Commercial Paper Notes/(Industrial Bank of Japan LOC) 3.70%, 09/09/96 11,000 11,000 3.60%, 09/09/96 4,700 4,700 West & Central Basin Financing Authority, California West Basin Municipal Water District Tax-Exempt Commercial Paper/(Toronto-Dominion Bank LOC) 3.50%, 07/24/96 7,000 7,000 ------- 22,700 ------- COLORADO--1.31% Denver, Colorado City & County Airport System Revenue Bonds Series 1990B/(Sanwa Bank LOC) 3.75%, 09/11/96 7,520 7,520 Denver, Colorado City & County Airport System Revenue Bonds Series 1990C/(Sanwa Bank LOC) 3.70%, 08/07/96 5,000 5,000 3.60%, 09/05/96 5,000 5,000 Denver, Colorado City & County Airport System Revenue Bonds Series 1990E/(Sanwa Bank & Sumitomo Trust & Banking LOC) 3.75%, 09/13/96 3,000 3,000
65 68 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- Platte River, Colorado Power Authority Adjustable Tender Electric Revenue Bonds (Subordinated Lien Bonds)/(Morgan Guaranty Trust LOC) 3.70%, 08/21/96 $12,100 $12,100 Platte River, Colorado Power Authority Adjustable Tender Electric Revenue Bonds (Subordinated Lien Bonds) Series S-1/(Morgan Guaranty Trust LOC) 3.55%, 08/19/96 15,500 15,500 3.40%, 08/28/96 2,800 2,800 ------ 50,920 ------ FLORIDA--0.18% Sunshine State Government Financing Commission Revenue Bonds Series 1986/(Multiple Credit Enhancements) 3.55%, 09/11/96 7,000 7,000 ------ GEORGIA--1.17% Burke County, Georgia Development Authority Pollution Control Revenue Bonds (Oglethorpe Power Project) 1st Series 1989/(Credit Suisse LOC) 3.25%, 07/10/96 21,000 21,000 3.55%, 08/08/96 3,700 3,700 3.45%, 08/15/96 1,400 1,400 3.55%, 08/19/96 8,400 8,400 3.40%, 08/28/96 11,000 11,000 ------ 45,500 ------ KANSAS--0.19% Burlington, Kansas Pollution Control Revenue Refunding Bonds (Kansas City Power & Light Co. Project) Series 1987A/(Toronto-Dominion Bank LOC) 3.50%, 08/08/96 1,800 1,800 Burlington, Kansas Pollution Control Revenue Refunding Bonds (Kansas City Power & Light Co. Project) Series 1987B/(Deutsche Bank LOC) 3.35%, 08/07/96 2,000 2,000 3.55%, 08/15/96 1,200 1,200 3.40%, 08/28/96 2,200 2,200 ------ 7,200 ------ KENTUCKY--0.06% Pendleton County, Kentucky Multiple County Lease Revenue Bonds (Kentucky Association of Counties Lease Program) Series 1989/(Commonwealth Bank of Australia LOC) 3.75%, 07/24/96 2,300 2,300 ------
66 69 - ------------------------------------------------------------------------------
Par Value -------- ---------- LOUISIANA--1.65% Louisiana State Adjustable Tender General Obligation Refunding Bonds Series 1991A/(Credit Local de France LOC) 3.60%, 07/01/96 $ 955 $ 955 3.55%, 08/15/96 4,690 4,690 3.55%, 08/19/96 4,275 4,275 3.40%, 08/28/96 13,950 13,950 Louisiana State Pollution Control Revenue Refunding Bonds (St. James Parish/Texaco Project) Series 1988B 3.75%, 07/18/96 40,000 40,000 ------ 63,870 ------ MASSACHUSETTS--0.26% Massachusetts Water Resources Authority Series 1995/ (Morgan Guaranty Trust LOC) 3.65%, 08/08/96 10,000 10,000 ------ MICHIGAN--1.16% Michigan State Building Authority Commercial Paper Notes Series 1/(Canadian Imperial Bank of Commerce LOC) 3.70%, 08/28/96 45,000 45,000 ------ MINNESOTA--0.52% Rochester, Minnesota Adjustable Tender Health Care Facility Revenue Bonds (Mayo Foundation/Mayo Medical Center) Series 1988E/(Credit Suisse SBPA) 3.55%, 08/15/96 3,600 3,600 3.40%, 08/28/96 2,100 2,100 Rochester, Minnesota Adjustable Tender Health Care Facility Revenue Bonds (Mayo Foundation/Mayo Medical Center) Series 1988F/(Credit Suisse SBPA) 3.55%, 08/15/96 2,100 2,100 Rochester, Minnesota Adjustable Tender Health Care Facility Revenue Bonds (Mayo Foundation/Mayo Medical Center) Series 1992B 3.40%, 08/28/96 2,100 2,100 Rochester, Minnesota Adjustable Tender Health Care Facility Revenue Bonds (Mayo Foundation/Mayo Medical Center) Series 1992C 3.40%, 08/28/96 4,300 4,300 University of Minnesota Tax Exempt Commercial Paper Series A 3.50%, 08/19/96 6,000 6,000 ------- 20,200 -------
67 70 SCHWAB TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value -------- ---------- NORTH CAROLINA--2.75% North Carolina Eastern Municipal Power Agency Power System Revenue Bonds Series 1988B/(Union Bank of Switzerland & Morgan Guaranty Trust LOC) 3.60%, 07/10/96 $44,435 $ 44,435 3.60%, 07/11/96 11,300 11,300 North Carolina Eastern Municipal Power Agency Power System Revenue Bonds Series B/(Industrial Bank of Japan LOC) 3.70%, 07/10/96 21,010 21,010 3.70%, 07/15/96 30,000 30,000 ------- 106,745 ------- TEXAS--2.34% Lower Colorado River Authority Tax-Exempt Commercial Paper Series D/(Morgan Guaranty Trust SBPA) 3.75%, 08/08/96 11,600 11,600 Texas Municipal Power Agency Tax-Exempt Commercial Paper/(Multiple Credit Enhancements) 3.45%, 08/07/96 49,025 49,025 Texas State Tax-Exempt Commercial Paper Series 1995 3.35%, 08/12/96 30,000 30,000 ------- 90,625 ------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $519,410) 519,410 ------- TENDER OPTION BONDS--0.12%(b) GEORGIA--0.12% Metropolitan Atlanta Rapid Transit Authority, Georgia Sales Tax Revenue Tender Option Bonds Series M (bT-69)/(AMBAC Insurance & Bankers Trust Tender Option) 3.80%, 10/03/96 4,673 4,673 ---------- TOTAL TENDER OPTION BONDS (Cost $4,673) 4,673 ---------- TOTAL INVESTMENTS--100.0% (Cost $3,879,427) $3,879,427 ==========
See accompanying Notes to Schedules of Investments. 68 71 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- VARIABLE RATE OBLIGATIONS--54.64%(a) ABAG Finance Authority for Nonprofit Organizations Certificates of Participation (Lucile Salter Packard Project)/(AMBAC Insurance & Industrial Bank of Japan SBPA) 3.25%, 07/07/96 $ 6,050 $ 6,050 Alameda County, California Industrial Development Authority Revenue Bonds (Aitchison Family Project) Series 1993A/(Wells Fargo Bank LOC) 3.30%, 07/07/96 2,920 2,920 Alameda County, California Industrial Development Authority Revenue Bonds (Scientific Technology Project) Series 1994A/(Banque Nationale de Paris LOC) 3.30%, 07/07/96 3,000 3,000 Anaheim, California Certificates of Participation (Anaheim Memorial Hospital Assoc. Project)/(AMBAC Insurance & ABN-AMRO Bank SBPA) 3.10%, 07/07/96 8,370 8,370 Anaheim, California Certificates of Participation (Police Facility Financing Project)/(AMBAC Insurance & Industrial Bank of Japan SPA) 3.30%, 07/07/96 250 250 Anaheim, California Housing Authority Multi Family Housing Revenue Bonds (Heritage Village Apartments Project) Series 1992A/(Multiple Credit Enhancements) 3.25%, 07/07/96 3,385 3,385 Big Bear Lake, California Industrial Development Revenue Certificates of Participation (Southwest Gas Corp. Project) Series A/(Union Bank of Switzerland LOC) 3.30%, 07/07/96 12,500 12,500 California Educational Facilities Authority Revenue Bonds (California Institute of Technology) Series 1994 3.10%, 07/07/96 17,300 17,300 California Health Facilities Financing Authority Revenue Bonds (Catholic Health Care) Series 1996B/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 20,000 20,000 California Health Facilities Financing Authority Revenue Bonds (Catholic Health Care) Series 1996C/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 20,000 20,000 California Health Facilities Financing Authority Revenue Bonds (Catholic Health Care) Series 1996D/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 13,600 13,600
69 72 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- California Health Facilities Financing Authority Revenue Bonds (Adventist Health System--Sutter Health) Series 1991A/(Toronto-Dominion Bank LOC) 3.10%, 07/07/96 $ 1,000 $ 1,000 California Health Facilities Financing Authority Revenue Bonds (Childrens Hospital Project) Series 1991/(MBIA Insurance & Swiss Bank SBPA) 3.00%, 07/07/96 9,900 9,900 California Health Facilities Financing Authority Revenue Bonds (Granada Hills Community Center) Series 1985C/(Banque Paribas LOC) 3.00%, 07/07/96 3,400 3,400 California Health Facilities Financing Authority Revenue Bonds (Huntington Memorial Hospital) Series 1985/(Morgan Guaranty Trust LOC) 3.15%, 07/07/96 15,515 15,515 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente Project) Series 1993A 3.00%, 07/07/96 8,200 8,200 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente Project) Series 1993B 3.00%, 07/07/96 1,600 1,600 California Health Facilities Financing Authority Revenue Bonds (Pooled Loan Program) Series 1985B/ (FGIC Insurance & FGIC SPA) 2.80%, 07/07/96 2,000 2,000 California Health Facilities Financing Authority Revenue Bonds (Scripps Memorial Hospital) Series 1985B/(MBIA Insurance & Morgan Guaranty Trust SBPA) 2.80%, 07/07/96 15,120 15,120 California Health Facilities Financing Authority Revenue Bonds (Scripps Memorial Hospital) Series 1991A/(MBIA Insurance & Morgan Guaranty Trust SBPA) 2.80%, 07/07/96 1,100 1,100 California Health Facilities Financing Authority Revenue Bonds (Scripps Memorial Hospital) Series 1991B/(MBIA Insurance & Swiss Bank SBPA) 3.05%, 07/07/96 13,900 13,900 California Health Facilities Financing Authority Revenue Bonds (St. Francis Hospital) Series 1995E/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 5,000 5,000 California Health Facilities Financing Authority Revenue Bonds (St. Francis Hospital) Series 1995F/ (MBIA Insurance & Rabobank Nederland SBPA) 3.00%, 07/07/96 30,000 30,000 California Pollution Control Financing Authority Refunding Revenue Bonds (Southern California Edison) Series 1986A 3.45%, 07/01/96 8,200 8,200
70 73 - ------------------------------------------------------------------------------
Par Value ------- ---------- California Pollution Control Financing Authority Refunding Revenue Bonds (Southern California Edison) Series 1986C 3.45%, 07/01/96 $ 520 $ 520 California Pollution Control Financing Authority Refunding Revenue Bonds (Southern California Edison) Series 1986D 3.45%, 07/01/96 6,735 6,735 California Pollution Control Financing Authority Revenue Bonds (Burney Forest Products Project) Series 1988A/(National Westminster Bank LOC) 3.65%, 07/01/96 1,000 1,000 California Pollution Control Financing Authority Revenue Bonds (Reynolds Metals Co. Project) Series 1985/(National Westminster Bank LOC) 3.15%, 07/07/96 1,300 1,300 California Pollution Control Financing Authority Revenue Bonds (Southdown, Inc. Project) Series B/ (Societe Generale LOC) 3.40%, 07/07/96 3,900 3,900 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Athens Disposal Co. Project) Series 1995A/(Wells Fargo Bank LOC) 3.40%, 07/07/96 10,000 10,000 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Burrtec Waste Industries Project) Series 1995A/(Union Bank of California LOC) 3.45%, 07/07/96 4,000 4,000 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Colmac Energy Project) Series 1990A/(Swiss Bank LOC) 3.30%, 07/07/96 12,900 12,900 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Colmac Energy Project) Series 1990B/(Swiss Bank LOC) 3.30%, 07/07/96 2,900 2,900 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Colmac Energy Project) Series 1990C/(Swiss Bank LOC) 3.30%, 07/07/96 10,000 10,000 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Contra Costa Services) Series 1995A/(Bank of America LOC) 3.40%, 07/07/96 4,500 4,500 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Taormina Industries Project) Series 1994B/(Sanwa Bank LOC) 3.65%, 07/07/96 11,000 11,000
71 74 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Western Waste Industries) Series 1994A/(Union Bank of California LOC) 3.10%, 07/07/96 $ 4,000 $ 4,000 California Statewide Community Development Corp. Apartment Development Revenue Bonds Series 1995-A3/ (FNMA LOC) 3.15%, 07/07/96 10,000 10,000 California Statewide Community Development Corp. Hospital Revenue Bonds Certificates of Participation (Sutter Health Group)/(AMBAC Insurance & Industrial Bank of Japan SBPA) 3.10%, 07/01/96 6,050 6,050 California Statewide Community Development Corp. Industrial Development Revenue Bonds (13th I Associates Project)/(Union Bank of California LOC) 3.30%, 07/07/96 5,435 5,435 California Statewide Community Development Corp. Industrial Development Revenue Bonds (ARM Inc. Project) Series 1994A/(Bank of Tokyo-Mitsubishi LOC) 3.40%, 07/07/96 600 600 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Aerostar Properties Project)/(Union Bank of California LOC) 3.25%, 07/07/96 5,095 5,095 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Agricultural Products, Inc. Project)/(Union Bank of California LOC) 3.40%, 07/07/96 1,440 1,440 California Statewide Community Development Corp. Industrial Development Revenue Bonds (D.V. Industries) Series 1994A/(Bank of Tokyo-Mitsubishi LOC) 3.40%, 07/07/96 1,640 1,640 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Flambeau Airmold Project)/(Norwest Bank of Minnesota LOC) 3.45%, 07/07/96 3,000 3,000 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Industrial Dynamics, Co. Project)/(Union Bank of California LOC) 3.40%, 07/07/96 4,920 4,920 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Lorber Industries of California Project)/(Union Bank of California LOC) 3.40%, 07/07/96 1,050 1,050 California Statewide Community Development Corp. Industrial Development Revenue Bonds (ORA Real Estate Project) Series 1995D/(Union Bank of California LOC) 3.40%, 07/07/96 3,000 3,000
72 75 - ------------------------------------------------------------------------------
Par Value ------- ---------- California Statewide Community Development Corp. Industrial Development Revenue Bonds (Pacific Handy Cutter Products Project)/(Union Bank of California LOC) 3.40%, 07/07/96 $ 1,210 $ 1,210 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Pacific Scientific Project) Series 1989/(Union Bank of California LOC) 3.45%, 07/07/96 5,125 5,125 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Packaging Innovation Project) Series 1994A/(Bank of Tokyo-Mitsubishi LOC) 3.40%, 07/07/96 2,950 2,950 California Statewide Community Development Corp. Industrial Development Revenue Bonds (The Diamond Foods Project) Series 1991/(Union Bank of California LOC) 3.40%, 07/07/96 1,465 1,465 California Statewide Community Development Corp. Industrial Development Revenue Bonds (Z-Nix Co. Inc. Project)/(Union Bank of California LOC) 3.40%, 07/07/96 920 920 California Statewide Community Development Corp. Revenue Bonds Certificates of Participation (Kaiser Foundation Hospitals) 3.00%, 07/07/96 10,000 10,000 Carlsbad, California Multi Family Housing Revenue Refunding Bonds Certificates of Participation (La Costa Apartment Project) Series 1993A/(Bank of America LOC) 3.20%, 07/07/96 4,920 4,920 Concord, California Multi Family Housing Mortgage Revenue Bonds (Bel Air Apartments Project) Series 1986A/(Bank of America LOC) 3.20%, 07/07/96 3,000 3,000 Contra Costa, California Multi Family Housing Mortgage Revenue Bonds (El Cerrito Project) Series A/ (Bank of America LOC) 3.40%, 07/07/96 980 980 Duarte, California Redevelopment Agency Certificates of Participation (Johnson Duarte Partners Project) Series 1984B/(Bank of America LOC) 3.20%, 07/07/96 1,600 1,600 Duarte, California Redevelopment Agency Certificates of Participation (Piken Duarte Partners Project) Series 1984A/(Bank of America LOC) 3.20%, 07/07/96 4,250 4,250
73 76 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Eastern Municipal Water District, California Water & Sewer Revenue Certificates of Participation Series 1993B/(FGIC Insurance & Industrial Bank of Japan LOC) 3.00%, 07/07/96 $12,200 $12,200 Encinitas, California Multi Family Housing Revenue Refunding Bonds (Torrey Pines Project) Series A/ (Bank of America LOC) 2.90%, 07/07/96 8,100 8,100 Foothill Eastern Transportation Corridor Agency, California Toll Road Revenue Bonds Series 1995B/ (Morgan Guaranty Trust LOC) 3.00%, 07/07/96 12,000 12,000 Foothill Eastern Transportation Corridor Agency, California Toll Road Revenue Bonds Series 1995C/ (Credit Suisse LOC) 3.10%, 07/07/96 4,500 4,500 Foothill Eastern Transportation Corridor Agency, California Toll Road Revenue Bonds Series 1995D/ (Industrial Bank of Japan LOC) 3.15%, 07/07/96 41,800 41,800 Fremont, California Multi Family Housing Revenue Refunding Certificates of Participation (Amber Court Apartments Project) Series 1990A/ (Bank of Tokyo-Mitsubishi LOC) 3.45%, 07/07/96 10,380 10,380 Fresno, California Multi Family Housing Revenue Refunding Bonds (Heron Pointe Apartments) Series 1996A/(First Interstate Bank of California LOC) 3.20%, 07/07/96 5,250 5,250 Glenn, California Industrial Development Authority Industrial Development Revenue Bonds (Land 'O Lakes Project)/(Sanwa Bank LOC) 4.15%, 07/07/96 1,900 1,900 Grand Terrace, California Community Redevelopment Agency Multi Family Housing Revenue Bonds (Mount Vernon Villas Project) Series 1985A/ (Industrial Bank of Japan LOC) 3.40%, 07/07/96 1,865 1,865 Independent City, California Lease Finance Authority Lease Revenue Bonds (Various Pooled Project) Series 1988/(National Westminster Bank LOC) 3.20%, 07/07/96 2,490 2,490 Irvine Ranch Water District Consolidated Revenue Bonds Series 1985 (Districts 105,140,240,250)/ (Commerzbank LOC) 3.30%, 07/01/96 3,640 3,640
74 77 - ------------------------------------------------------------------------------
Par Value ------- ---------- Irvine Ranch, California Water District Consolidated Revenue Bonds (Districts 105,250,290) Series 1991/ (National Westminster Bank LOC) 3.30%, 07/01/96 $1,100 $1,100 Irvine Ranch, California Water District Consolidated Revenue Bonds Series 1985A-1/(Landesbank Hessen-Thuringen Girozentrale LOC) 3.30%, 07/01/96 3,300 3,300 Irvine Ranch, California Water District Consolidated Revenue Bonds Series 1985A-2/(Landesbank Hessen-Thuringen Girozentrale LOC) 3.30%, 07/01/96 400 400 Irvine Ranch, California Water District Consolidated Revenue Bonds Series 1985B-1/(Sumitomo Bank LOC) 3.45%, 07/01/96 3,300 3,300 Irvine Ranch, California Water District Consolidated Revenue Bonds Series 1985B-2/(Sumitomo Bank LOC) 3.45%, 07/01/96 300 300 Irvine, California Improvement Bond Act 1915 Revenue Bonds (Assessment District No. 89-10)/ (National Westminster Bank LOC) 3.30%, 07/01/96 1,000 1,000 Irvine, California Improvement Bond Act 1915 Revenue Bonds (Assessment District No. 95-12) Series 1996A/ (Kredietbank LOC) 3.30%, 07/01/96 5,100 5,100 Irvine, California Improvement Bond Act 1915 Revenue Bonds (Special Assessment District No. 94-15)/ (Dai-Ichi Kangyo Bank LOC) 3.50%, 07/01/96 2,100 2,100 Kern County, California Certificates of Participation (Kern Public Facilities Project) Series A/(Sanwa Bank LOC) 3.00%, 07/07/96 200 200 Lancaster, California Redevelopment Agency Multi Family Revenue Bonds (Woodcreek Garden Apartments Project) Series 1985J/(Bank of Tokyo-Mitsubishi LOC) 3.20%, 07/07/96 8,400 8,400 Livermore, California Multi Family Housing Revenue Refunding Bonds (Arbors Apartment Project) Series 1991A/(Bank of Tokyo-Mitsubishi LOC) 3.45%, 07/07/96 9,255 9,255 Livermore, California Multi Family Housing Revenue Refunding Bonds (Diablo Vista Apartments Project) Series 1990A/(Union Bank of California LOC) 3.45%, 07/07/96 6,950 6,950
75 78 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Los Angeles County, California Certificates of Participation Adjustable Convertible Extendable Securities (Los Angeles County Museum of Art Project) Series 1985A/(Bank of America LOC) 3.40%, 07/07/96 $ 3,800 $ 3,800 Los Angeles County, California Certificates of Participation Adjustable Convertible Extendable Securities (Los Angeles County Museum of Art Project) Series 1985B/(Bank of America LOC) 3.40%, 07/07/96 3,500 3,500 Los Angeles County, California Metropolitan Transportation Authority General Revenue Bonds (Union Station Project) Series 1985A/(FSA Insurance & Societe Generale SBPA) 3.15%, 07/07/96 33,100 33,100 Los Angeles County, California Metropolitan Transportation Authority Proposition C Second Senior Sales Tax Revenue Refunding Bonds Series A/(MBIA Insurance & Industrial Bank of Japan SBPA) 3.00%, 07/07/96 24,000 24,000 Los Angeles County, California Multi Family Mortgage Revenue Refunding Bonds (Casden Community Complex) Series 1991C/(FHLB LOC) 2.90%, 07/07/96 3,200 3,200 Los Angeles County, California Multi Family Mortgage Revenue Refunding Bonds (Valencia Village Project) Series 1984C/(Industrial Bank of Japan LOC) 3.50%, 07/07/96 900 900 Los Angeles County, California Transportation Commission Sales Tax Revenue Refunding Bonds Series 1992A/(FGIC Insurance & Industrial Bank of Japan SBPA) 3.10%, 07/07/96 12,100 12,100 Los Angeles, California Community Redevelopment Agency Certificates of Participation (Baldwin Hills Public Parking Project) Series B/(Wells Fargo Bank LOC) 3.25%, 07/07/96 13,200 13,200 Los Angeles, California Community Redevelopment Agency Certificates of Participation (Broadway Springs Center Project) Series 1987/(Bank of America LOC) 3.20%, 07/07/96 10,900 10,900 Los Angeles, California Multi Family Housing Revenue Bonds (Poinsettia Apartments Project) Series 1989A/ (Dai-Ichi Kangyo Bank LOC) 3.20%, 07/07/96 9,600 9,600 Marin County, California Housing Authority Multi Family Housing Revenue Bonds (Crest Marin II Apartments Project) Series 1989A/(Dai-Ichi Kangyo Bank LOC) 3.40%, 07/07/96 7,100 7,100
76 79 - ------------------------------------------------------------------------------
Par Value ------- ---------- Modesto, California High School District & Modesto City School District Certificates of Participation (Capital Facilities Project) Series 1991/ (Bank of Tokyo-Mitsubishi LOC) 3.05%, 07/07/96 $ 5,200 $ 5,200 Monterey County, California Financing Authority Revenue Bonds (Reclamation & Distribution Projects)/ (Dai-Ichi Kangyo Bank LOC) 3.35%, 07/07/96 5,000 5,000 Moorpark, California Multi Family Housing Revenue Refunding Bonds (Le Club Apartments Project) Series A/(Citibank LOC) 3.05%, 07/07/96 6,000 6,000 Northern California Power Agency Public Power Refunding Revenue Bonds (Geothermal Project 3A)/ (AMBAC Insurance & Bank of Nova Scotia LOC) 3.15%, 07/07/96 42,000 42,000 Oakland, California Economic Development Revenue Refunding Bonds (Leamington Hotel Project) Series 1994A/(First Interstate Bank of California LOC) 3.15%, 07/07/96 4,250 4,250 Ontario, California Redevelopment Agency Multi Family Housing Revenue Refunding Bonds Series 1991A/(FHLB LOC) 2.90%, 07/07/96 4,492 4,492 Orange County, California Apartment Development Revenue Refunding Bonds (Jess L. Frost Project) Series 1985B/(Wells Fargo Bank LOC) 3.25%, 07/07/96 8,200 8,200 Orange County, California Apartment Development Revenue Refunding Bonds (The Lakes Project #185) Series 1991A/(Citibank LOC) 3.15%, 07/07/96 20,000 20,000 Orange County, California Certificates of Participation (Florence Crittenton Services Project) Series 1990/(Swiss Bank LOC) 3.30%, 07/07/96 6,700 6,700 Orange County, California Sanitation District Certificates of Participation (Sanitation Districts 1,2,3)/(AMBAC Insurance) 3.30%, 07/01/96 3,700 3,700 Orange County, California Sanitation District Certificates of Participation Series 1990-92A/ (National Westminster Bank LOC) 3.30%, 07/01/96 14,600 14,600
77 80 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Orange County, California Various Sanitation Districts Certificates of Participation (Capital Improvement Programs) Series 1990-92C/(FGIC Insurance & FGIC SPA) 3.40%, 07/01/96 $13,800 $13,800 Orange County, California Water District Certificates of Participation (Sanitation Districts #1,2,3)/ (AMBAC Insurance & Industrial Bank of Japan SBPA) 3.00%, 07/07/96 66,545 66,545 Orange County, California Water District Certificates of Participation Series 1990B/(National Westminster Bank LOC) 3.45%, 07/01/96 5,500 5,500 Panama Buena Vista, California Unified School District Certificates of Participation (1994 Capital Improvement Financing Project)/(Union Bank of California LOC) 3.25%, 07/07/96 4,000 4,000 Pleasant Hill, California Multi Family Housing Revenue Bonds (Brookside Apartments Project)/(FNMA LOC) 3.10%, 07/07/96 5,500 5,500 Riverside County, California Certificates of Participation (Riverside County Public Facility Project) Series 1985A/(Sanwa Bank LOC) 2.90%, 07/07/96 14,000 14,000 Riverside County, California Certificates of Participation (Riverside County Public Facility Project) Series 1985B/(Sanwa Bank LOC) 2.95%, 07/07/96 3,100 3,100 Riverside County, California Certificates of Participation (Riverside County Public Facility Project) Series 1985C/(Sanwa Bank LOC) 2.95%, 07/07/96 5,600 5,600 Riverside County, California Housing Authority Multi Family Housing Revenue Bonds (Briarwood Apartment Project) Series 1985C/(FHLB LOC) 3.05%, 07/07/96 4,500 4,500 Riverside County, California Industrial Development Authority Revenue Bonds (Cryogenic Project) Series 1989B-1/(Rabobank Nederland LOC) 3.30%, 07/07/96 4,100 4,100 Riverside County, California Variable Rate Tax & Revenue Anticipation Notes Series 1996-1997/ (Toronto-Dominion Bank LOC) 3.00%, 07/07/96 16,300 16,300 Sacramento County, California Certificates of Participation (Administration Center & Court House Project)/(Union Bank of Switzerland LOC) 3.10%, 07/07/96 27,800 27,800
78 81 - ------------------------------------------------------------------------------
Par Value ------- ---------- Salinas, California Apartment Development Multi Family Housing Revenue Bonds (Mariner Villa Project) Series 1985B/(Bank of America LOC) 2.90%, 07/07/96 $ 2,725 $ 2,725 San Bernardino County, California Certificates of Participation (Glen Helen Blockbuster Pavilion Project) Series 1994C/(Bank of Tokyo-Mitsubishi LOC) 3.70%, 07/07/96 7,125 7,125 San Bernardino County, California Multi Family Housing Revenue Bonds (Western Properties Project IV) Series 1985/(Bank of America LOC) 3.10%, 07/07/96 1,100 1,100 San Francisco, California City & County Redevelopment Agency Multi Family Housing Revenue Bonds (Fillmore Center Project) Series A-1/(Citibank LOC) 3.00%, 07/07/96 26,500 26,500 San Francisco, California City & County Redevelopment Agency Multi Family Housing Revenue Bonds (Fillmore Center Project) Series A-2/(Citibank LOC) 3.15%, 07/07/96 3,750 3,750 San Francisco, California City & County Redevelopment Agency Multi Family Housing Revenue Bonds (Fillmore Center Project) Series B-2/(Bank of Nova Scotia LOC) 3.05%, 07/07/96 13,100 13,100 San Francisco, California City & County Redevelopment Agency Multi Family Housing Revenue Bonds (Rincon Center Apartments) Series 1985B/(Citibank LOC) 3.00%, 07/07/96 5,705 5,705 San Francisco, California Housing Authority Multi Family Housing Revenue Bonds (737 Post Project) Series 1985D/(Banque Nationale de Paris LOC) 3.25%, 07/07/96 16,800 16,800 San Jose--Santa Clara, California Water Financing Authority Sewer Revenue Bonds Series B/(AMBAC Insurance & Bank of Nova Scotia LOC) 3.15%, 07/07/96 7,600 7,600 San Mateo County, California Certificates of Participation (Capital Projects) Series 1985B/(Swiss Bank LOC) 3.30%, 07/07/96 3,145 3,145 Santa Clara County, California Hospital Facility Authority Revenue Bonds (El Camino Hospital District-Valley Medical Center Project) Series 1985A/(National Westminster Bank LOC) 3.10%, 07/07/96 7,900 7,900 Santa Clara County, California Hospital Facility Authority Revenue Bonds (El Camino Hospital District-Valley Medical Center Project) Series 1985B/(National Westminster Bank LOC) 3.10%, 07/07/96 8,100 8,100
79 82 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Santa Clara, California Electric Revenue Bonds Series 1985A/(National Westminster Bank LOC) 3.20%, 07/07/96 $13,000 $ 13,000 Santa Clara, California Electric Revenue Bonds Series 1985B/(National Westminster Bank LOC) 3.20%, 07/07/96 11,900 11,900 Santa Clara, California Electric Revenue Bonds Series 1985C/(National Westminster Bank LOC) 3.20%, 07/07/96 8,600 8,600 Santa Cruz County, California Housing Authority Multi Family Housing Revenue Bonds (Paloma del Mar Apartments Project) Series 1992A/(Bank of Tokyo-Mitsubishi LOC) 3.25%, 07/07/96 7,700 7,700 South San Francisco, California Multi Family Revenue Bonds (Magnolia Plaza Apartments Project) Series A/ (Wells Fargo Bank LOC) 3.20%, 07/07/96 4,500 4,500 Southern California Metropolitan Water District Revenue Refunding Bonds Series 1996A/(ABN-AMRO Bank LOC) 2.95%, 07/07/96 18,700 18,700 Southern California Public Power Authority Refunding Revenue Bonds (Palos Verdes Project) Series 1996B/ (Morgan Guaranty Trust LOC) 3.10%, 07/07/96 8,270 8,270 Southern California Public Power Authority Revenue Bonds (Southern Transmission Project) Series 1991/ (AMBAC Insurance & Swiss Bank LOC) 3.10%, 07/07/96 10,300 10,300 Turlock, California Irrigation District Certificates of Participation (Transmission Project, Municipal Utilities--Water & Sewer) Series 1996A/ (Societe Generale LOC) 3.10%, 07/07/96 2,200 2,200 Vallejo, California Commercial Development Revenue Bonds (Vallejo Center Association Project) Series 1994A/(Bank of Tokyo-Mitsubishi LOC) 3.85%, 07/07/96 900 900 Visalia, California Public Building Authority Certificates of Participation (Convention Center Expansion Project) Series 1991/(Union Bank of California LOC) 3.50%, 07/07/96 1,000 1,000 --------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $1,122,152) 1,122,152 ---------
80 83 - ------------------------------------------------------------------------------
Par Value ------- ---------- VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS--2.12%(a)(c) California State Department of Water Resources Revenue Bonds (Central Valley Project) Series J3 Tender Option Bond Partnership (BTP-141)/(Bankers Trust Tender Option) 3.40%, 07/07/96 $ 5,155 $ 5,155 Los Angeles County, California Transportation Commission Sales Tax Revenue Tender Option Bond Partnership (BTP-146)/(Bankers Trust Tender Option & Escrowed to Maturity with Government Securities) 3.40%, 07/07/96 23,078 23,078 Los Angeles, California Department of Water & Power Electric Plant Revenue Refunding Bonds Series 1994 Tender Option Bond Partnership (BTP-68)/ (Automated Data Processing, Inc. Tender Option) 3.45%, 07/07/96 5,195 5,195 Metropolitan Water District of Southern California Waterworks General Obligation Revenue Refunding Bonds Series 1993A1 & 1993A2 Tender Option Bond Partnership (BTP-115)/(Bankers Trust Tender Option) 3.45%, 07/07/96 10,145 10,145 ------ TOTAL VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS (Cost $43,573) 43,573 ------ CERTIFICATES OF PARTICIPATION--4.70%(b) San Jose, California Financing Authority Certificates of Participation (Convention Center Project)/ (Escrowed to Maturity with Government Securities) 3.45%, 09/01/96 84,815 87,103 San Mateo, California Redevelopment Agency Certificates of Participation Revenue Refunding Bonds (Bridge & Water Pumping Station)/(Escrowed to Maturity with Government Securities) 3.67%, 08/01/96 9,305 9,525 ------ TOTAL CERTIFICATES OF PARTICIPATION (Cost $96,628) 96,628 ------ MANDATORY PUT BONDS--1.37%(b) California Housing Finance Agency Home Mortgage Revenue Bonds Series 1995E 3.50%, 02/01/97 12,500 12,500
81 84 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- California Housing Finance Agency Home Mortgage Revenue Bonds Series 1996D/(FGIC Insurance) 3.54%, 04/01/97 $11,500 $11,500 Redlands, California Revenue Refunding Certificates of Participation (Water Treatment Facilities Project)/ (FGIC Insurance) 3.60%, 11/01/96 4,000 4,011 ------ TOTAL MANDATORY PUT BONDS (Cost $28,011) 28,011 ------ REVENUE BONDS--0.88%(b) California Health Facilities Financing Authority Revenue Bonds (Catholic Health Care) Series 1996A/ (MBIA Insurance) 3.75%, 07/01/97 4,450 4,504 Northern California Power Agency Public Power Revenue Refunding Bonds (Geothermal Project #3) Series 1996B/(AMBAC Insurance) 3.62%, 07/01/97 6,525 6,611 Northern California Power Agency Public Power Revenue Refunding Bonds (Hydroelectric Project #1) Series 1986A/(Escrowed to Maturity with Government Securities) 3.40%, 07/01/96 1,800 1,836 Sacramento, California Municipal Utility District Electric Revenue Bonds Series R/(Escrowed to Maturity with Government Securities & FGIC Insurance) 3.37%, 02/01/97 1,000 1,041 Sacramento, California Municipal Utility District Electric Revenue Bonds Series S/(Escrowed to Maturity with Government Securities & FGIC Insurance) 3.37%, 02/01/97 1,970 2,051 University of California Unified School District Revenue Bonds (Medical Center Satellite Medical Facilities)/(Escrowed to Maturity with Government Securities) 2.14%, 12/01/96 2,050 2,089 ------ TOTAL REVENUE BONDS (Cost $18,132) 18,132 ------ TAX ALLOCATION BONDS--0.07%(b) Brea, California Redevelopment Agency Tax Allocation Bonds (Redevelopment Project Area AB)/ (Escrowed to Maturity with Government Securities) 3.45%, 09/15/96 1,350 1,397 ------ TOTAL TAX ALLOCATION BONDS (Cost $1,397) 1,397 ------
82 85 - ------------------------------------------------------------------------------
Par Value ------- ---------- TAX AND REVENUE ANTICIPATION NOTES--16.95%(b) Acalanes, California Unified High School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 $ 5,700 $ 5,731 Berkeley, California Tax & Revenue Anticipation Notes Series 1995-96 3.95%, 07/17/96 10,500 10,503 Berkeley, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.85%, 07/01/97 9,400 9,447 California School Cash Reserve Program Authority Pooled Tax & Revenue Anticipation Notes Series 1996-97/(MBIA Insurance)(d) 3.85%, 07/02/97 70,000 70,605 Desert Sands, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/05/96 10,000 10,001 Desert Sands, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/02/97 4,500 4,530 East Side Unified High School District, Santa Clara County California Tax & Revenue Anticipation Notes 4.00%, 10/10/96 8,000 8,011 Elk Grove, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/31/96 10,400 10,404 Fontana, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.95%, 07/11/97 10,000 10,053 Fremont, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 3.95%, 07/11/96 13,000 13,002 Livermore, California Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/10/96 4,600 4,601 Los Angeles, California Tax & Revenue Anticipation Notes Series 1996-97(d) 3.85%, 06/19/97 35,000 35,207 3.84%, 06/19/97 27,000 27,167 Marin County, California Tax & Revenue Anticipation Notes Series 1995-96 3.85%, 07/03/96 37,000 37,002 Mountain View, California School District Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/05/96 2,000 2,000
83 86 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Mountain View/Los Altos, California Unified High School District Tax & Revenue Anticipation Notes Series 1995-96 4.00%, 07/05/96 $ 4,200 $ 4,200 Oxnard, California Unified High School District (Ventura County) Tax & Revenue Anticipation Notes Series 1995-96 3.90%, 10/11/96 5,500 5,513 Pleasanton, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 5,400 5,430 San Diego County, California Tax & Revenue Anticipation Notes 3.50%, 09/30/96 2,600 2,605 San Francisco, California Unified School District Tax & Revenue Anticipation Notes Series 1995-96 3.89%, 07/25/96 40,000 40,015 San Leandro, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/01/97 5,000 5,028 Santa Rosa, California High School District Tax & Revenue Anticipation Notes Series 1995-96 3.95%, 09/27/96 10,000 10,018 Sutter County, California Office of Education Tax & Revenue Anticipation Notes Series 1995-96 4.05%, 09/14/96 10,000 10,009 Temecula Valley, California Unified School District Tax & Revenue Anticipation Notes Series 1996-97(d) 3.80%, 07/02/97 7,000 7,046 ------- TOTAL TAX AND REVENUE ANTICIPATION NOTES (Cost $348,128) 348,128 ------- TAX-EXEMPT COMMERCIAL PAPER--19.17%(b) California Pollution Control Financing Authority Pollution Control Revenue Bonds (Pacific Gas & Electric) Series 1988A/(Swiss Bank LOC) 3.45%, 07/25/96 5,000 5,000 3.35%, 07/25/96 3,975 3,975 3.40%, 08/01/96 7,000 7,000 3.35%, 08/01/96 5,000 5,000 3.40%, 08/08/96 6,200 6,200 California Pollution Control Financing Authority Pollution Control Revenue Bonds (Pacific Gas & Electric) Series 1988B/(Sumitomo Bank LOC) 3.90%, 07/25/96 83,400 83,400
84 87 - ------------------------------------------------------------------------------
Par Value ------- ---------- California Pollution Control Financing Authority Pollution Control Revenue Bonds (Pacific Gas & Electric) Series 1988C/(Credit Suisse LOC) 3.40%, 07/25/96 $10,505 $10,505 3.25%, 07/25/96 13,380 13,380 3.20%, 07/25/96 5,500 5,500 3.30%, 08/01/96 2,000 2,000 3.25%, 08/01/96 2,000 2,000 California Pollution Control Financing Authority Pollution Control Revenue Bonds (Pacific Gas & Electric) Series 1988D/(Bank of Tokyo-Mitsubishi LOC) 3.35%, 07/25/96 4,550 4,550 California Pollution Control Financing Authority Pollution Control Revenue Bonds (Pacific Gas & Electric) Series 1988F/(Banque Nationale de Paris LOC) 3.45%, 07/25/96 10,000 10,000 California Pollution Control Financing Authority Pollution Control Revenue Bonds (Southern California Edison) Series 1985A 3.35%, 08/08/96 1,000 1,000 3.35%, 08/19/96 12,000 12,000 3.20%, 08/28/96 2,300 2,300 California Pollution Control Financing Authority Pollution Control Revenue Bonds (Southern California Edison) Series 1985B 3.35%, 08/08/96 2,000 2,000 3.35%, 08/19/96 14,000 14,000 3.20%, 08/28/96 2,200 2,200 California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds (Thermal Energy Development LP) Series 1988A/(National Westminster Bank LOC) 3.60%, 08/19/96 30,000 30,000 East Bay Municipal Utility District, California (Wastewater Systems) Tax-Exempt Commercial Paper Program/(National Westminster Bank LOC) 3.40%, 08/14/96 10,700 10,700 Long Beach, California Harbor Revenue Commercial Paper Notes Series 1994A/(Multiple Credit Enhancements) 3.65%, 08/08/96 23,600 23,600 3.65%, 09/11/96 4,000 4,000 Los Angeles County, California Department of Water & Power Electric Plant Short Term Revenue Certificates 3.45%, 07/08/96 5,000 5,000 Los Angeles County, California Transportation Commission Second Subordinate Sales Tax Revenue Bonds Series A/(Multiple Credit Enhancements) 3.40%, 09/19/96 6,100 6,100
85 88 SCHWAB CALIFORNIA TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- ---------- Los Angeles, California Wastewater System Tax-Exempt Commercial Paper 3.45%, 07/08/96 $13,650 $ 13,650 3.35%, 08/09/96 2,700 2,700 3.45%, 08/14/96 12,000 12,000 Metropolitan Water District of Southern California Tax-Exempt Commercial Paper 3.10%, 08/12/96 10,000 10,000 Orange County, California Local Transportation Authority Sales Tax-Exempt Commercial Paper Notes/ (Industrial Bank of Japan LOC) 3.60%, 09/09/96 47,500 47,500 West & Central Basin Financing Authority, California West Basin Municipal Water District Tax-Exempt Commercial Paper/(Toronto-Dominion Bank LOC) 3.20%, 08/07/96 9,000 9,000 3.35%, 08/19/96 19,000 19,000 3.20%, 08/28/96 8,500 8,500 ---------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $393,760) 393,760 ---------- TENDER OPTION BONDS--0.10%(b) Southern California Rapid Transit District Tender Option Bonds (BT-9)/(MBIA Insurance & Bankers Trust Tender Option) 3.75%, 10/03/96 2,000 2,000 ---------- TOTAL TENDER OPTION BONDS (Cost $2,000) 2,000 ---------- TOTAL INVESTMENTS--100.0% (Cost $2,053,781) $2,053,781 ==========
See accompanying Notes to Schedules of Investments. 86 89 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- -------- VARIABLE RATE OBLIGATIONS--68.28%(a) Albany, New York Industrial Development Agency Adjustable Rate Revenue Bonds (Newkirk Products, Inc.) Series 1995A/(Fleet Bank of New York LOC) 3.35%, 07/07/96 $1,000 $1,000 Babylon, New York General Obligation Bonds Series B/ (Bank of Nova Scotia SBPA & AMBAC Insurance) 3.10%, 07/07/96 5,600 5,600 Babylon, New York Industrial Development Agency Revenue Bonds (General Microwave)/(National Westminster Bank LOC) 3.15%, 07/07/96 2,000 2,000 Cortland County, New York Industrial Development Agency Revenue Bonds (General Signal Corp. Project) Series 1983/(Wachovia Bank LOC) 3.15%, 07/07/96 1,750 1,750 Erie County, New York Water Authority Revenue Bonds Series 1993B/(Industrial Bank of Japan SBPA & AMBAC Insurance) 3.10%, 07/07/96 1,400 1,400 Franklin County, New York Industrial Development Agency Revenue Bonds (Kes Chateaugay LP Project) Series A/ (Bank of Tokyo-Mitsubishi LOC) 3.40%, 07/07/96 3,000 3,000 Geneva, New York Industrial Development Agency Civic Facility Revenue Bonds (Colleges of The Seneca) Series 1993A/(Sumitomo Bank LOC) 3.50%, 07/07/96 2,410 2,410 Monroe County, New York Industrial Development Agency Revenue Bonds (ENBI Corp. Lease Rent Project) Series 1988/(ABN-AMRO Bank LOC) 3.20%, 07/07/96 2,000 2,000 New Rochelle, New York Industrial Development Agency Revenue Bonds (Chas Sadek Import Corp.)/ (Bank of New York LOC) 3.20%, 07/07/96 5,500 5,500 New York City, New York Cultural Trust Resource Revenue Adjustable Bonds (American Museum of Natural History) Series 1991B/(MBIA Insurance & Credit Suisse SBPA) 3.10%, 07/07/96 800 800 New York City, New York General Obligation Bonds Series 1993 Subseries A-8B/(Sanwa Bank LOC) 3.65%, 07/01/96 1,415 1,415
87 90 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- -------- New York City, New York General Obligation Bonds Series 1994B Subseries B-4/(MBIA Insurance & National Westminster Bank SBPA) 3.60%, 07/07/96 $ 1,000 $ 1,000 New York City, New York General Obligation Bonds Series 1995B Subseries B-2/(Bank of Austria SBPA & MBIA Insurance) 3.60%, 07/01/96 300 300 New York City, New York General Obligation Bonds Series 1995B Subseries B-8/(Bank of Tokyo-Mitsubishi LOC) 3.25%, 07/07/96 1,500 1,500 New York City, New York Housing Development Corp. Multi Family Housing Mortgage Revenue Bonds (Columbus Gardens Project) Series 1993A/(Citibank LOC) 3.10%, 07/07/96 3,465 3,465 New York City, New York Housing Development Corp. Multi Family Housing Mortgage Revenue Bonds (Parkgate Tower Project)/(Citibank LOC) 3.15%, 07/07/96 3,000 3,000 New York City, New York Housing Development Corp. Multi Family Housing Mortgage Revenue Bonds (Tribeca Towers Project) Series 1994A/(FNMA Collateral Investment Agreement) 3.20%, 07/07/96 4,100 4,100 New York City, New York Housing Development Corp. Variable Rate Demand Special Obligation Revenue Bonds (East 96th Street Project) Series 1990A/(Bank of Tokyo-Mitsubishi LOC) 3.30%, 07/07/96 10,300 10,300 New York City, New York Industrial Development Agency Revenue Bonds (White Plains Auto)/(Societe Generale LOC) 3.25%, 07/07/96 300 300 New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series 1994C/(FGIC Insurance & FGIC SPA) 3.60%, 07/01/96 1,600 1,600 New York City, New York Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series 1995A/(FGIC Insurance & FGIC SPA) 3.75%, 07/01/96 2,000 2,000 New York State Dormitory Authority Revenue Bonds (Cornell University) Series 1990B/(Morgan Guaranty Trust LOC) 3.45%, 07/07/96 2,900 2,900
88 91 - ------------------------------------------------------------------------------
Par Value ------- -------- New York State Dormitory Authority Revenue Bonds (Masonic Hall Asylum)/(AMBAC Insurance & Credit Local de France SBPA) 3.10%, 07/07/96 $ 9,700 $ 9,700 New York State Dormitory Authority Revenue Bonds (New York Public Library) Series 1992B/ (Canadian Imperial Bank of Commerce LOC) 3.00%, 07/07/96 1,500 1,500 New York State Energy Research & Development Authority Electric Facilities Revenue Bonds (Long Island Lighting Co. Project) Series 1993B/(Toronto-Dominion Bank LOC) 3.05%, 07/07/96 6,000 6,000 New York State Energy Research & Development Authority Electric Facilities Revenue Bonds (Long Island Lighting Co. Project) Series 1994A/(Union Bank of Switzerland LOC) 3.00%, 07/07/96 1,500 1,500 New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (New York Electric & Gas) Series 1994C/(Morgan Guaranty Trust LOC) 3.55%, 07/01/96 3,200 3,200 New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (Orange & Rockland Utilities, Inc. Project) Series 1994A/ (FGIC Insurance & Societe Generale SBPA) 3.10%, 07/07/96 8,100 8,100 New York State Energy Research & Development Authority Pollution Control Revenue Bonds (Central Hudson Gas & Electric Corp. Project) Series 1985A/(J.P. Morgan Delaware LOC) 3.05%, 07/07/96 10,000 10,000 New York State Energy Research & Development Authority Pollution Control Revenue Bonds (Niagara Mohawk Power) Series 1985A/(Toronto-Dominion Bank LOC) 3.70%, 07/01/96 2,900 2,900 New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (New York Energy & Gas) Series B/(Union Bank of Switzerland LOC) 3.45%, 07/01/96 400 400 New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (Niagara Mohawk Power) Series 1987/(Morgan Guaranty Trust LOC) 3.80%, 07/07/96 300 300
89 92 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- -------- New York State Housing Finance Agency Multi Family Housing Revenue Bonds (Normandie Court II) Series 1987A/(Fleet Bank of New York LOC) 3.30%, 07/07/96 $ 4,900 $ 4,900 New York State Housing Finance Agency Revenue Bonds (East 84th Street Project) Series 1995A/(Fleet Bank of New York LOC) 3.30%, 07/07/96 5,000 5,000 New York State Housing Finance Agency Revenue Bonds (Mount Sinai School of Medicine) Series 1984A/ (Sanwa Bank LOC) 3.00%, 07/07/96 5,900 5,900 New York State Local Government Assistance Corp. Revenue Bonds Series 1993A/(Credit Suisse, Swiss Bank & Union Bank of Switzerland LOC) 3.10%, 07/07/96 6,100 6,100 New York State Local Government Assistance Corp. Revenue Bonds Series 1994B/(Credit Suisse & Swiss Bank LOC) 3.00%, 07/07/96 14,200 14,200 New York State Local Government Assistance Corp. Revenue Bonds Series 1995B/(Bank of Nova Scotia LOC) 3.10%, 07/07/96 1,200 1,200 New York State Local Government Assistance Corp. Revenue Bonds Series 1995F/(Toronto-Dominion Bank LOC) 3.05%, 07/07/96 1,800 1,800 New York State Local Government Assistance Corp. Revenue Bonds Series 1995G/(National Westminster Bank LOC) 3.10%, 07/07/96 4,000 4,000 New York State Medical Care Facilities Financing Agency Revenue Bonds (Pooled Equipment Loan Program) Series 1/(Chemical Bank LOC) 3.40%, 07/07/96 2,200 2,200 Niagara County, New York Industrial Development Agency Revenue Bonds (Allegheny Ludlum Steel Co.) Series 1984/(PNC Bank LOC) 3.05%, 07/07/96 3,500 3,500 Niagara Falls, New York Bridge Commission Revenue Bonds Series 1993A/(FGIC Insurance & Industrial Bank of Japan SBPA) 3.10%, 07/07/96 6,400 6,400 Port Authority of New York & New Jersey Special Obligation Revenue Bonds Series 1993/(Deutsche Bank LOC) 3.10%, 07/07/96 4,000 4,000
90 93 - ------------------------------------------------------------------------------
Par Value ------- -------- Port Authority of New York & New Jersey Special Obligation Versatile Structure Obligation Revenue Bonds Series 2/ (Morgan Guaranty Trust LOC) 3.50%, 07/07/96 $1,300 $ 1,300 Puerto Rico--Puerto Rico Government Development Bank Revenue Refunding Bonds Series 1985/(Credit Suisse LOC) 3.00%, 07/07/96 5,000 5,000 Schenectady, New York Industrial Development Agency Revenue Bonds (Fortitech Holding Corp. Project) Series A/(Fleet Bank of New York LOC) 3.35%, 07/07/96 1,500 1,500 St. Lawrence County, New York Industrial Development Agency Environmental Improvement Revenue Bonds (Reynolds Metals Project) Series 1995/(Royal Bank of Canada LOC) 3.35%, 07/07/96 4,000 4,000 Yonkers, New York Industrial Development Agency Civic Facilities Revenue Bonds (Consumers Union Facility Project) Series 1989/(Industrial Bank of Japan LOC) 3.55%, 07/07/96 1,500 1,500 Yonkers, New York Industrial Development Agency Civic Facilities Revenue Bonds (Consumers Union Facility Project) Series 1991/(Industrial Bank of Japan LOC) 3.55%, 07/07/96 700 700 Yonkers, New York Industrial Development Agency Civic Facilities Revenue Bonds (Consumers Union Facility Project) Series 1994/(AMBAC Insurance & Credit Local de France SBPA) 3.20%, 07/07/96 1,700 1,700 -------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $175,840) 175,840 -------- VARIABLE RATE TENDER OPTION BONDS--1.59%(a) New York City, New York General Obligation Bonds (Citi-1I)/(AMBAC Insurance, Escrowed to Maturity with Government Securities & Citibank Tender Option) 3.45%, 07/07/96 4,100 4,100 ------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $4,100) 4,100 -------
91 94 SCHWAB NEW YORK TAX-EXEMPT MONEY FUND - ------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS (in thousands) June 30, 1996 (Unaudited)
Par Value ------- -------- VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS--2.09%(a)(c) New York State Dormitory Authority, New York University Insured Revenue Bonds (BTP-26)/(Automated Data Processing, Inc. Tender Option & MBIA Insurance) 3.45%, 07/07/96 $5,375 $ 5,375 ------ TOTAL VARIABLE RATE TENDER OPTION BOND PARTNERSHIPS (Cost $5,375) 5,375 ------ BOND ANTICIPATION NOTES--9.82%(b) Broome County, New York Bond Anticipation Notes Series 1996-97 3.75%, 04/17/97 7,500 7,521 Dutchess County, New York Bond Anticipation Notes Series 1995-96 3.75%, 08/02/96 2,825 2,826 Dutchess County, New York Bond Anticipation Notes Series 1996B 3.15%, 02/28/97 2,300 2,305 Monroe County, New York Bond Anticipation Notes Series 1996-97 3.65%, 06/06/97 7,560 7,618 Rochester, New York General Obligation Bond Anticipation Notes Series 1995I 3.80%, 10/31/96 5,000 5,007 ------ TOTAL BOND ANTICIPATION NOTES (Cost $25,277) 25,277 ------ GENERAL OBLIGATIONS--1.88%(b) Buffalo, New York Unlimited General Obligation Bonds/ (MBIA Insurance) 3.50%, 12/01/96 1,824 1,828 Erie County, New York General Obligation Revenue Anticipation Notes Series 1996A/(Union Bank of Switzerland LOC) 3.60%, 04/17/97 2,500 2,512 Williamsville, New York Consolidated School District Unlimited General Obligation Bonds/(FSA Insurance) 3.70%, 05/01/97 500 507 ------ TOTAL GENERAL OBLIGATIONS (Cost $4,847) 4,847 ------
92 95 - ------------------------------------------------------------------------------
Par Value ------- -------- MANDATORY PUT BONDS--3.37%(b) New York State Environmental Research & Development Agency Pollution Control Revenue Bonds (Long Island Lighting Co. Project) Series 1985B/(Deutsche Bank LOC) 3.25%, 03/01/97 $ 5,000 $ 5,000 New York State Mortgage Agency Revenue Put Bonds Series 1996-16th 3.25%, 07/01/96 3,680 3,680 -------- TOTAL MANDATORY PUT BONDS (Cost $8,680) 8,680 -------- REVENUE ANTICIPATION NOTES--3.90%(b) Rockland County, New York Revenue Anticipation Notes Series 1996 4.25%, 05/16/97 10,000 10,044 -------- TOTAL REVENUE ANTICIPATION NOTES (Cost $10,044) 10,044 -------- TAX ANTICIPATION NOTES--3.11%(b) Suffolk County, New York General Obligation Tax Anticipation Notes Series 1996I/(Multiple Credit Enhancements) 3.20%, 08/15/96 8,000 8,008 -------- TOTAL TAX ANTICIPATION NOTES (Cost $8,008) 8,008 -------- TAX-EXEMPT COMMERCIAL PAPER--5.96%(b) New York City, New York General Obligation Bonds Fiscal 1994 Series B-4/(AMBAC Insurance & Kredietbank SBPA) 3.20%, 08/13/96 1,500 1,500 New York City, New York Municipal Water Finance Authority Tax-Exempt Commercial Paper/(Credit Suisse LOC) 3.35%, 07/24/96 6,000 6,000 New York City, New York Municipal Water Finance Authority Tax-Exempt Commercial Paper Series 1995/(Canadian Imperial Bank of Commerce LOC) 3.70%, 08/08/96 1,850 1,850 New York State Dormitory Authority Revenue Bonds (Memorial Sloan Kettering Project) Series 1989C/(Chemical Bank LOC) 3.35%, 08/19/96 6,000 6,000 -------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $15,350) 15,350 -------- TOTAL INVESTMENTS--100.0% (Cost $257,521) $257,521 ========
See accompanying Notes to Schedules of Investments. 93 96 - ------------------------------------------------------------------------------ NOTES TO SCHEDULES OF INVESTMENTS June 30, 1996 (Unaudited) For each security, cost (for financial reporting and federal income tax purposes) and carrying value are the same. (a) Variable rate securities. Interest rates vary periodically based on current market rates. Rates shown are the effective rates on June 30, 1996. Dates shown represent the latter of the demand date or next interest rate change date, which is considered the maturity date for financial reporting purposes. For variable rate securities without demand features, the next interest reset date is shown. (b) Interest rates represent effective yield to put or call date at time of purchase. (c) Certain securities purchased by the Funds are private placement securities exempt from registration by Section 4(2) of the Securities Act of 1933. These securities generally are sold to institutional investors, such as the Schwab Tax-Exempt Money Fund, the Schwab California Tax-Exempt Money Fund and the Schwab New York Tax-Exempt Money Fund. Any resale by the Funds must be in an exempt transaction, normally to a qualified institutional buyer. At June 30, 1996, the aggregate values of private placement securities held by the Schwab Tax-Exempt Money Fund, the Schwab California Tax-Exempt Money Fund and the Schwab New York Tax-Exempt Money Fund were $139,017,000, $43,573,000 and $5,375,000, respectively, which represented 3.56%, 2.33% and 2.08%, respectively, of the net assets of each Fund. All of these private placement investments were determined by the Investment Manager to be liquid in accordance with a resolution adopted by the Board of Trustees relating to Rule 144A, promulgated under the Securities Act of 1933. (d) Security traded on a delayed-delivery basis. Payment and delivery is scheduled for a future time, generally within two weeks of entering into the transaction. The transaction is subject to market fluctuation and to the risk that the value may be more or less than the purchase price when the transaction was initiated. The Fund has set aside sufficient investment securities as collateral for securities purchased on a delayed-delivery basis. 94 97 - ------------------------------------------------------------------------------ NOTES TO SCHEDULES OF INVESTMENTS (continued) June 30, 1996 (Unaudited)
Abbreviations ------------------------------------------------------------ AMBAC AMBAC Indemnity Corporation FGIC Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FNB First National Bank FNMA Federal National Mortgage Association FSA Financial Security Assurance GNMA Government National Mortgage Association LOC Letter of Credit MBIA Municipal Bond Investors Assurance Corporation N.R.U.--C.F.C. National Rural Utilities Cooperative Financing Corporation SBPA Standby Purchase Agreement SLMA Student Loan Marketing Association SPA Securities Purchase Agreement
See accompanying Notes to Financial Statements. 95 98 - ------------------------------------------------------------------------------ STATEMENTS OF ASSETS AND LIABILITIES (in thousands) June 30, 1996 (Unaudited)
Schwab Schwab Schwab California New York Tax-Exempt Tax-Exempt Tax-Exempt Money Money Money Fund Fund Fund ---------- ---------- ---------- ASSETS Investments, at value (Cost: $3,879,427 $2,053,781 and $257,521, respectively) $3,879,427 $2,053,781 $257,521 Cash 253 82 13 Interest receivable 24,369 17,277 1,397 Receivable for investments sold 216,093 27,181 -- Receivable for Fund shares sold 5,738 2,198 769 Deferred organization costs -- -- 20 Prepaid expenses 199 65 66 ---------- --------- -------- Total assets 4,126,079 2,100,584 259,786 ---------- --------- -------- LIABILITIES Payable for: Dividends 4,043 1,861 247 Investments purchased 220,753 227,835 -- Fund shares redeemed 702 889 762 Investment advisory and administration fee 33 23 9 Transfer agency and shareholder service fees 326 152 18 Other 458 202 57 --------- --------- -------- Total liabilities 226,315 230,962 1,093 --------- --------- -------- Net assets applicable to outstanding shares $3,899,764 $1,869,622 $258,693 ========== ========== ======== NET ASSETS CONSIST OF: Capital paid in $3,901,967 $1,870,320 $258,709 Accumulated net realized loss on investments sold (2,203) (698) (16) ---------- ---------- -------- $3,899,764 $1,869,622 $258,693 ========== ========== ======== PRICING OF SHARES $0.00001 par value (unlimited shares authorized) Outstanding Sweep Shares 3,527,251 1,590,074 229,222 Outstanding Value Advantage Shares 374,716 280,246 29,487 ---------- ---------- -------- 3,901,967 1,870,320 258,709 Net asset value, offering and redemption price per each Sweep Share and Value Advantage Share $1.00 $1.00 $1.00
See accompanying Notes to Financial Statements. 96 99 - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS (in thousands) Six months ended June 30, 1996 (Unaudited)
Schwab Schwab Schwab California New York Tax-Exempt Tax-Exempt Tax-Exempt Money Money Money Fund Fund Fund ---------- ---------- ---------- Interest income $67,572 $30,658 $4,101 ------- ------- ------ Expenses: Investment advisory and administration fee 7,999 3,955 557 Transfer agency and shareholder service fees: Sweep Shares 8,003 3,605 495 Value Advantage Shares 335 256 28 Custodian fees 220 150 79 Registration fees 242 112 49 Professional fees 47 30 11 Shareholder reports 104 38 16 Trustees' fees 11 5 1 Amortization of deferred organization costs -- -- 3 Insurance and other expenses 40 19 2 ------- ------- ------ 17,001 8,170 1,241 Less expenses reduced and absorbed (4,660) (2,500) (432) ------- ------- ------ Total expenses incurred by Fund 12,341 5,670 809 ------- ------- ------ Net investment income 55,231 24,988 3,292 Net realized loss on investments sold (355) (34) (10) ------- ------- ------ Increase in net assets resulting from operations $54,876 $24,954 $3,282 ======= ======= ======
See accompanying Notes to Financial Statements. 97 100 - ------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
Schwab Schwab Schwab Tax-Exempt California Tax-Exempt New York Tax-Exempt Money Fund Money Fund Money Fund ------------------------- ------------------------- ------------------------- Six months Six months Six months ended Year ended Year ended Period June 30, ended June 30, ended June 30, ended 1996 December 31, 1996 December 31, 1996 December 31, (Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995* ----------- ------------ ----------- ------------ ----------- ------------ Operations: Net investment income $ 55,231 $ 105,737 $ 24,988 $ 45,734 $ 3,292 $ 5,167 Net realized gain (loss) on investments sold (355) (21) (34) 8 (10) (6) ---------- ---------- ---------- ---------- -------- -------- Increase in net assets resulting from operations 54,876 105,716 24,954 45,742 3,282 5,161 ---------- ---------- ---------- ---------- -------- -------- Dividends to shareholders from net investment income: Sweep Shares (51,089) (104,288) (21,964) (45,302) (2,966) (5,046) Value Advantage Shares (4,142) (1,449) (3,024) (432) (326) (121) ---------- ---------- ---------- ---------- -------- -------- Total dividends to shareholders (55,231) (105,737) (24,988) (45,734) (3,292) (5,167) ---------- ---------- ---------- ---------- -------- -------- Capital share transactions (at $1.00 per share): Proceeds from shares sold 7,001,930 10,148,323 3,127,686 4,383,313 472,559 692,976 Net asset value of shares issued in reinvestment of dividends 64,538 100,567 29,136 43,226 3,826 4,181 Less payments for shares redeemed (6,730,868) (9,700,301) (2,972,869) (4,034,727) (437,688) (477,145) ---------- ---------- ---------- ---------- -------- -------- Increase in net assets from capital share transactions 335,600 548,589 183,953 391,812 38,697 220,012 ---------- ---------- ---------- ---------- -------- -------- Total increase in net assets 335,245 548,568 183,919 391,820 38,687 220,006 Net assets: Beginning of period 3,564,519 3,015,951 1,685,703 1,293,883 220,006 -- ---------- ----------- ---------- ----------- --------- --------- End of period $3,899,764 $ 3,564,519 $1,869,622 $ 1,685,703 $ 258,693 $ 220,006 ========== =========== ========== =========== ========= =========
*For the period February 27, 1995 (commencement of operations) to December 31, 1995. See accompanying Notes to Financial Statements. 98 101 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) 1. DESCRIPTION OF THE FUND The Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund (the "Funds") are series of The Charles Schwab Family of Funds (the "Trust"), a no-load, open-end investment management company organized as a Massachusetts business trust on October 20, 1989 and registered under the Investment Company Act of 1940, as amended. The Funds offer multiple classes of shares -- the Sweep Shares ("Sweep Shares"), and the Value Advantage Shares ("Value Advantage Shares"). Both classes represent interests in the same portfolio of investments of the respective Fund and are substantially the same in all respects, except that the classes are subject to different transfer agency and shareholder service fees (see Note 3), investment minimums and certain other expenses. In addition to the three Funds described above, the Trust also offers -- Schwab Money Market Fund, Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Value Advantage Money Fund(R), Schwab Institutional Advantage Money Fund(R) and Schwab Retirement Money Fund(R). The assets of each series are segregated and accounted for separately. The Schwab Tax-Exempt Money Fund invests in a diversified portfolio of short-term high quality municipal securities. The Schwab California Tax-Exempt Money Fund, which is not a "diversified" investment company within the meaning of the Investment Company Act of 1940, as amended, invests in a portfolio of debt obligations issued by or on behalf of California and other states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities that generate interest exempt from federal income tax and State of California personal income tax. The Schwab New York Tax-Exempt Money Fund, which is not a "diversified" investment company within the meaning of the Investment Company Act of 1940, as amended, invests in a portfolio of debt obligations issued by or on behalf of New York and other states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities that generate interest exempt from federal income tax and State of New York and New York municipal personal income tax. 99 102 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) 2. SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies are in conformity with generally accepted accounting principles for investment companies. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Security valuation -- Investments are stated at amortized cost which approximates market value. Security transactions -- Security transactions are accounted for on a trade date basis (date the order to buy or sell is executed). Dividends to shareholders -- Each Fund declares a daily dividend, equal to its net investment income for that day, payable monthly. Dividends paid by a Fund with respect to each class of shares are calculated in the same manner, at the same time, and will be in the same amount except for the effect of expenses that may be applied differently, as described below. Deferred organization costs -- Costs incurred in connection with the organization of the Funds and its initial registration with the Securities and Exchange Commission and with various states are amortized on a straight-line basis over a five-year period from the Fund's commencement of operations. Expenses -- Expenses arising in connection with a Fund are charged directly to that Fund. Expenses common to all series of the Trust are allocated to each series in proportion to their relative net assets. Expenses attributable to both classes of shares of a Fund are allocated daily to each class of that Fund based on the value of settled shares outstanding of each respective class. Transfer agency, shareholder service fees and certain other expenses which are class specific, are calculated daily at the class level. Interest income and realized gains (losses) -- Interest income is recorded on the accrual basis and includes amortization of premium on investments. Realized gains and losses from security transactions are determined on an 100 103 - ------------------------------------------------------------------------------ identified cost basis. Income and realized gains (losses) are allocated daily to each class of shares of a Fund based on the value of settled shares outstanding of each respective class. Federal income taxes -- It is each Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and realized net capital gains, if any, to shareholders. Therefore, no federal income tax provision is required. Each Fund is considered a separate entity for tax purposes. 3. TRANSACTIONS WITH AFFILIATES Investment advisory and administration agreements -- The Trust has investment advisory and administration agreements with Charles Schwab Investment Management, Inc. (the "Investment Manager"). For advisory services and facilities furnished, each Fund pays an annual fee, payable monthly, of .46% of the first $1 billion of average daily net assets, .41% of such assets over $1 billion, and .40% of such assets in excess of $2 billion. Under these agreements, the Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund incurred investment advisory and administration fees of $7,999,000, $3,955,000, and $557,000, respectively, for the six months ended June 30, 1996, before the Investment Manager reduced its fee (see Note 4). Transfer agency and shareholder service agreements -- The Trust has transfer agency and shareholder service agreements with Charles Schwab & Co., Inc. ("Schwab"). For services provided under these agreements, Schwab receives an annual fee, payable monthly, of .45% and .25% of each Fund's average daily net assets of the Sweep Shares and Value Advantage Shares, respectively. For the six months ended June 30, 1996, the Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund incurred transfer agency and shareholder service fees of $8,003,000, $3,605,000 and $495,000, respectively, for the Sweep Shares and $335,000, $256,000, and $28,000, respectively, for the Value Advantage Shares, before Schwab reduced its fees (see Note 4). 101 104 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) Officers and trustees -- Certain officers and trustees of the Trust are also officers and/or directors of the Investment Manager and/or Schwab. During the six months ended June 30, 1996, the Trust made no direct payments to its officers or trustees who are "interested persons" within the meaning of the Investment Company Act of 1940, as amended. The Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund incurred fees of $11,000, $5,000 and $1,000, respectively, related to the Trust's unaffiliated trustees. 4. EXPENSES REDUCED AND ABSORBED BY THE INVESTMENT MANAGER AND SCHWAB The Investment Manager and Schwab reduced a portion of their fees and absorbed certain expenses in order to limit the ratio of operating expenses to average net assets. For the six months ended June 30, 1996, the total of such fees reduced and absorbed by the Investment Manger were $4,173,000, $2,237,000 and $316,000 for the Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund, respectively, and the total of such fees reduced by Schwab were $487,000, $263,000 and $116,000 for the Schwab Tax-Exempt Money Fund, Schwab California Tax-Exempt Money Fund and Schwab New York Tax-Exempt Money Fund, respectively. 5. INVESTMENT TRANSACTIONS Purchases, sales and maturities of investment securities during the six months ended June 30, 1996, were as follows (in thousands):
Schwab Schwab Schwab California New York Tax-Exempt Tax-Exempt Tax-Exempt Money Fund Money Fund Money Fund ---------- ---------- ---------- Purchases $4,294,184 $2,239,045 $262,542 Proceeds of sales and maturities $3,999,798 $1,857,952 $223,926
102 105 - ------------------------------------------------------------------------------ 6. CAPITAL SHARE TRANSACTIONS Each Fund offers two classes of shares: Sweep Shares and Value Advantage Shares. Shares of each class represent interests in the same portfolio of investments of the Fund. Transactions in capital shares were as follows (in thousands):
Schwab Schwab Schwab Tax-Exempt California Tax-Exempt New York Tax-Exempt Money Fund Money Fund Money Fund ------------------------- ------------------------- ------------------------ Six months Year Six months Year Six months Year ended ended ended ended ended ended June 30, December 31, June 30, December 31, June 30, December 31, 1996 1995(1) 1996 1995(2) 1996 1995(3) ----------- ------------ ----------- ------------ ---------- ------------ Proceeds from shares sold: Sweep Shares $ 6,538,676 $ 9,911,852 $ 2,791,832 $ 4,257,465 $ 430,106 $ 671,692 Value Advantage Shares 463,254 236,471 335,854 125,848 42,453 21,284 ----------- ----------- ----------- ----------- --------- --------- Total 7,001,930 10,148,323 3,127,686 4,383,313 472,559 692,976 Net asset value of shares issued in reinvestment of dividends: Sweep Shares 60,334 99,813 26,191 43,152 3,495 4,126 Value Advantage Shares 4,204 754 2,945 74 331 55 ----------- ----------- ----------- ----------- --------- --------- Total 64,538 100,567 29,136 43,226 3,826 4,181 Less payments for shares redeemed: Sweep Shares (6,477,443) (9,623,759) (2,806,308) (4,016,813) (409,248) (470,949) Value Advantage Shares (253,425) (76,542) (166,561) (17,914) (28,440) (6,196) ----------- ----------- ----------- ----------- --------- --------- Total (6,730,868) (9,700,301) (2,972,869) (4,034,727) (437,688) (477,145) Total increase in net assets from capital share transactions $ 335,600 $ 548,589 $ 183,953 $ 391,812 $ 38,697 $ 220,012 =========== =========== =========== =========== ========= =========
- --------------- (1)The Value Advantage Shares commenced operations on July 7, 1995. (2)The Value Advantage Shares commenced operations on October 3, 1995. (3)The Sweep Shares commenced operations on February 27, 1995, and the Value Advantage Shares commenced operations on July 7, 1995. 103 106 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) 7. FINANCIAL HIGHLIGHTS Per share income and capital changes for a share outstanding throughout the period:
Schwab Tax-Exempt Money Fund Sweep Shares ---------------------------------------------------------------------------- Six months ended June 30, ----------------For the year ended December 31,--------------- 1996 (Unaudited) 1995 1994 1993 1992 1991 ---------------------------------------------------------------------------- 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 .01 .03 .02 .02 .03 .04 Net realized and unrealized gain (loss) on investments -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .01 .03 .02 .02 .03 .04 Less distributions - ------------------ Dividends from net investment income (.01) (.03) (.02) (.02) (.03) (.04) Distributions from realized gain on investments -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total distributions (.01) (.03) (.02) (.02) (.03) (.04) ---------- ---------- ---------- ---------- ---------- ---------- Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ========== ========== Total return (%) 1.44 3.30 2.32 1.93 2.49 4.01 - ---------------- Ratios/Supplemental data - ------------------------ Net assets, end of period (000s) $3,525,077 $3,403,837 $3,015,951 $2,423,317 $1,744,903 $1,359,121 Ratio of expenses to average net assets (%) .66* .66 .65 .63 .63 .63 Ratio of net investment income to average net assets (%) 2.87* 3.25 2.31 1.92 2.45 3.91
The Investment Manager and Schwab have reduced a portion of their fees and absorbed certain expenses in order to limit the Schwab Tax-Exempt Money Fund's ratio of operating expenses to average net assets for the Sweep Shares. Had these fees and expenses not been reduced and absorbed, the ratio of expenses to average net assets for the periods ended June 30, 1996, December 31, 1995, 1994, 1993, 1992, and 1991 would have been .90%*, .91%, .91%, .93%, .94% and .95%, respectively, and the ratio of net investment income to average net assets would have been 2.63%*, 3.00%, 2.05%, 1.62%, 2.14%, and 3.59%, respectively. - --------------- * Annualized 104 107 - ------------------------------------------------------------------------------ 7. FINANCIAL HIGHLIGHTS (continued)
Schwab Tax-Exempt Money Fund Value Advantage Shares ------------------------------- Six months ended Period ended June 30, 1996 December 31, (Unaudited) 1995(1) ---------------- ------------ Net asset value at beginning of period $ 1.00 $ 1.00 Income from investment operations - --------------------------------- Net investment income .02 .02 Net realized and unrealized gain (loss) on investments -- -- -------- -------- Total from investment operations .02 .02 Less distributions - ------------------ Dividends from net investment income (.02) (.02) Distributions from realized gain on investments -- -- -------- -------- Total distributions (.02) (.02) -------- -------- Net asset value at end of period $ 1.00 $ 1.00 ======== ======== Total return (%) 1.54 1.68 - ---------------- Ratios/Supplemental data - ------------------------ Net assets, end of period (000s) $374,687 $160,682 Ratio of expenses to average net assets (%) .45* .45* Ratio of net investment income to average net assets (%) 3.09* 3.50*
The Investment Manager and Schwab have reduced a portion of their fees and absorbed certain expenses in order to limit the Schwab Tax-Exempt Money Fund's ratio of operating expenses to average net assets for the Value Advantage Shares. Had these fees and expenses not been reduced and absorbed the ratio of expenses to average net assets for the periods ended June 30, 1996 and December 31, 1995 would have been .75%* and .95%*, respectively, and the ratio of net investment income to average net assets would have been 2.79%*, and 3.00%*, respectively. - --------------- (1) For the period July 7, 1995 (commencement of operations) to December 31, 1995. * Annualized 105 108 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) 7. FINANCIAL HIGHLIGHTS (continued)
Schwab California Tax-Exempt Money Fund Sweep Shares ----------------------------------------------------------------------------- Six months ended June 30, -----------------Year ended December 31,------------------- 1996 (Unaudited) 1995 1994 1993 1992 1991 ----------------------------------------------------------------------------- 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 .01 .03 .02 .02 .02 .04 Net realized and unrealized gain (loss) on investments -- -- -- -- -- -- ---------- ---------- ---------- ---------- -------- -------- Total from investment operations .01 .03 .02 .02 .02 .04 Less distributions - ------------------ Dividends from net investment income (.01) (.03) (.02) (.02) (.02) (.04) Distributions from realized gain on investments -- -- -- -- -- -- ---------- ---------- ---------- ---------- -------- -------- Total distributions (.01) (.03) (.02) (.02) (.02) (.04) ---------- ---------- ---------- ---------- -------- -------- Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ======== ======== Total return (%) 1.37 3.20 2.26 1.91 2.35 3.77 - ---------------- Ratios/Supplemental data - ------------------------ Net assets, end of period (000s) $1,589,380 $1,577,695 $1,293,883 $1,062,042 $691,176 $494,214 Ratio of expenses to average net assets (%) .65* .65 .64 .63 .63 .61 Ratio of net investment income to average net assets (%) 2.74* 3.15 2.25 1.89 2.31 3.70
The Investment Manager and Schwab have reduced a portion of their fees and absorbed certain expenses in order to limit the Schwab California Tax-Exempt Money Fund's ratio of operating expenses to average net assets for the Sweep Shares. Had these fees and expenses not been reduced and absorbed, the ratio of expenses to average net assets for the periods ended June 30, 1996, December 31, 1995, 1994, 1993, 1992, and 1991 would have been .92%*, .94%, .94%, .96%, .97%, and .98%, respectively, and the ratio of net investment income to average net assets would have been 2.47%*, 2.86%, 1.95%, 1.56%, 1.97%, and 3.33%, respectively. - --------------- * Annualized 106 109 - ------------------------------------------------------------------------------ 7. FINANCIAL HIGHLIGHTS (continued)
Schwab California Tax-Exempt Money Fund Value Advantage Shares -------------------------------- Six months ended Period ended June 30, 1996 December 31, (Unaudited) 1995(1) ---------------- ------------ Net asset value at beginning of period $ 1.00 $ 1.00 Income from investment operations - --------------------------------- Net investment income .01 .01 Net realized and unrealized gain (loss) on investments -- -- -------- -------- Total from investment operations .01 .01 Less distributions - ------------------ Dividends from net investment income (.01) (.01) Distributions from realized gain on investments -- -- -------- -------- Total distributions (.01) (.01) -------- -------- Net asset value at end of period $ 1.00 $ 1.00 ======== ======== Total return (%) 1.47 .84 - ---------------- Ratios/Supplemental data - ------------------------ Net assets, end of period (000s) $280,242 $108,008 Ratio of expenses to average net assets (%) .45* .45* Ratio of net investment income to average net assets (%) 2.95* 3.48*
The Investment Manager and Schwab have reduced a portion of their fees and absorbed certain expenses in order to limit the Schwab California Tax-Exempt Money Fund's ratio of operating expenses to average net assets for the Value Advantage Shares. Had these fees and expenses not been reduced and absorbed, the ratio of expenses to average net assets for the periods ended June 30, 1996 and December 31, 1995 would have been .78%* and 1.04%*, respectively, and the ratio of net investment income to average net assets would have been 2.62%* and 2.89%*, respectively. - --------------- (1) For the period October 3, 1995 (commencement of operations) to December 31, 1995. * Annualized 107 110 - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS Six months ended June 30, 1996 (Unaudited) 7. FINANCIAL HIGHLIGHTS (continued)
Schwab New York Tax-Exempt Money Fund ------------------------------------------------------------- Sweep Shares Value Advantage Shares ---------------------------- ---------------------------- Six months Six months ended Period ended Period June 30, ended June 30, ended 1996 December 31, 1996 December 31, (Unaudited) 1995(1) (Unaudited) 1995(2) ---------------------------- ---------------------------- Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations - --------------------------------- Net investment income .01 .03 .01 .02 Net realized and unrealized gain (loss) on investments -- -- -- -- -------- -------- ------- -------- Total from investment operations .01 .03 .01 .02 Less distributions - ------------------ Dividends from net investment income (.01) (.03) (.01) (.02) Distributions from realized gain on investments -- -- -- -- -------- -------- ------- -------- Total distributions (.01) (.03) (.01) (.02) -------- -------- ------- -------- Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== Total return (%) 1.35 2.75 1.47 1.62 - ---------------- Ratios/Supplemental data - ------------------------ Net assets, end of period (000s) $ 229,208 $204,863 $29,485 $ 15,143 Ratio of expenses to average net assets (%) .69* .63* .45* .45* Ratio of net investment income to average net assets (%) 2.70* 3.20* 2.94* 3.42*
The Investment Manager and Schwab have reduced a portion of their fees and absorbed certain expenses in order to limit the Schwab New York Tax-Exempt Money Fund's ratio of operating expenses to average net assets for each class of shares. Had these fees and expenses not been reduced and absorbed, with respect to the Sweep Shares, the ratio of expenses to average net assets for the periods ended June 30, 1996 and December 31, 1995 would have been 1.03%* and 1.04%*, respectively, and the ratio of net investment income to average net assets would have been 2.36%* and 2.79%*, respectively. With respect to the Value Advantage Shares, the ratio of expenses to average net assets for the periods ended June 30, 1996 and December 31, 1995 would have been .96%* and 1.81%*, respectively, and the ratio of net investment income to average net assets would have been 2.43%* and 2.06%*, respectively. - --------------- (1) For the period February 27, 1995 (commencement of operations) to December 31, 1995. (2) For the period July 7, 1995 (commencement of operations) to December 31, 1995. * Annualized 108 111 SCHWABFUNDS FAMILY(R) The SchwabFunds Family includes a variety of funds to help meet your investment needs. You can diversify your portfolio with one investment in any of our three asset allocation funds, or choose from several equity markets with our equity funds. You can also select from different maturities with our bond fund choices, and take advantage of an array of money market funds. SCHWAB ASSET ALLOCATION FUNDS Schwab Asset Director(R)--High Growth Fund Schwab Asset Director--Balanced Growth Fund Schwab Asset Director--Conservative Growth Fund SCHWAB EQUITY FUNDS Schwab 1000 Fund(R) Schwab International Index Fund(TM) Schwab Small-Cap Index Fund(R) Schwab S&P 500 Fund Schwab Analytics Fund(TM) SCHWAB BOND FUNDS Schwab Government Bond Funds--Long-Term and Short/Intermediate Schwab Tax-Free Bond Funds--Long-Term and Short/Intermediate Schwab California Tax-Free Bond Funds--Long-Term and Short/Intermediate SCHWAB MONEY MARKET FUNDS Schwab offers an array of money market funds that seek high current income with safety and liquidity. Choose from taxable or tax-exempt 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(TM). 1 Please Call 1-800-2 NO-LOAD for a free prospectus and brochure for any of the SchwabFunds(R). Each prospectus provides more complete information, including charges and expenses. Please read it carefully before investing. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. 1. Investments in money market funds are neither insured nor guaranteed by the U.S. government, and there is no assurance that the Funds will be able to maintain a stable share price of $1. 112 ============== [SCHWABFUNDS BULK RATE FAMILY(R) LOGO] 101 Montgomery Street U.S. POSTAGE San Francisco, California 94104 PAID CHARLES SCHWAB ============== Investment Adviser Charles Schwab Investment Management, Inc. 101 Montgomery Street, San Francisco, CA 94104 Distributor Charles Schwab & Co., Inc. 101 Montgomery Street, San Francisco, CA 94104 This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. (C)1996 Charles Schwab & Co., Inc. All rights reserved. Member SIPC/NYSE. TF4220R(8/96) CRS 6795 Printed on recycled paper. -----END PRIVACY-ENHANCED MESSAGE-----