0001193125-15-340483.txt : 20151009 0001193125-15-340483.hdr.sgml : 20151009 20151008180335 ACCESSION NUMBER: 0001193125-15-340483 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20151009 DATE AS OF CHANGE: 20151008 EFFECTIVENESS DATE: 20151009 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHARLES SCHWAB FAMILY OF FUNDS CENTRAL INDEX KEY: 0000857156 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-31894 FILM NUMBER: 151151631 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 1-415-667-7000 MAIL ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: SCHWAB CHARLES FAMILY OF FUNDS DATE OF NAME CHANGE: 19920703 0000857156 S000004499 Schwab Money Market Fund C000012373 Schwab Money Market Fund SWMXX 0000857156 S000004500 Schwab AMT Tax-Free Money Fund C000012374 Sweep Shares SWFXX C000039063 Value Advantage Shares SWWXX 0000857156 S000004501 Schwab Massachusetts Municipal Money Fund C000012375 Sweep Shares SWDXX 0000857156 S000004502 Schwab Pennsylvania Municipal Money Fund C000012376 Sweep Shares SWEXX 0000857156 S000004503 Schwab New Jersey Municipal Money Fund C000012377 Sweep Shares SWJXX 0000857156 S000004504 Schwab Cash Reserves C000012378 Schwab Cash Reserves SWSXX 0000857156 S000004505 Schwab Advisor Cash Reserves C000012379 Sweep Shares SWQXX C000012380 Premier Sweep Shares SWZXX 0000857156 S000004506 Schwab Government Money Fund C000012381 Sweep Shares SWGXX C000151955 Purchased Shares SNVXX 0000857156 S000004507 Schwab U.S. Treasury Money Fund C000012382 Schwab U.S. Treasury Money Fund SWUXX 0000857156 S000004508 Schwab Value Advantage Money Fund C000012383 Investor Shares SWVXX C000012384 Select Shares SWBXX C000012385 Institutional Shares SWAXX C000038267 Institutional Prime Shares SNAXX 0000857156 S000004509 Schwab Retirement Advantage Money Fund C000012386 Schwab Retirement Advantage Money Fund SWIXX 0000857156 S000004510 Schwab Investor Money Fund C000012387 Schwab Investor Money Fund SWRXX 0000857156 S000004511 Schwab Municipal Money Fund C000012388 Sweep Shares SWXXX C000012389 Value Advantage Shares SWTXX C000012390 Select Shares SWLXX C000012391 Institutional Shares SWOXX 0000857156 S000004512 Schwab California Municipal Money Fund C000012392 Sweep Shares SWCXX C000012393 Value Advantage Shares SWKXX 0000857156 S000004513 Schwab New York Municipal Money Fund C000012394 Sweep Shares SWNXX C000012395 Value Advantage Shares SWYXX 0000857156 S000036659 Schwab Treasury Obligations Money Fund C000112046 Value Advantage Shares SNOXX C000112047 Sweep Shares SNTXX 497 1 d31146d497.htm 497 497

THE CHARLES SCHWAB FAMILY OF FUNDS

(the “Trust”)

 

Schwab Government Money Fund   Schwab Investor Money Fund
Schwab U.S. Treasury Money Fund   Schwab AMT Tax-Free Money Fund
Schwab Treasury Obligations Money Fund   Schwab Municipal Money Fund
Schwab Money Market Fund   Schwab California Municipal Money Fund
Schwab Value Advantage Money Fund   Schwab New York Municipal Money Fund
Schwab Retirement Advantage Money Fund   Schwab Pennsylvania Municipal Money Fund
Schwab Cash Reserves   Schwab New Jersey Municipal Money Fund
Schwab Advisor Cash Reserves   Schwab Massachusetts Municipal Money Fund

(the “Funds”)

Supplement dated October 9, 2015

 

 

This supplement provides information regarding certain changes the Funds will be making in connection with amendments adopted by the U.S. Securities and Exchange Commission (“SEC”) to Rule 2a-7 and other rules governing money market funds under the Investment Company Act of 1940, as amended (the “Amendments”).

Intention of Certain Funds to Qualify as Retail Funds

Under the Amendments, a “retail money market fund” is defined as a money market fund that has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons, which means that a retail money market fund’s shares can be held only by individual investors. A money market fund that meets this definition will be permitted to continue to use the amortized cost method and/or penny rounding pricing to value its portfolio securities and to transact at a constant net asset value. However, a retail money market fund will be subject to a liquidity fee and/or redemption gate if the fund’s weekly liquid assets fall below the regulatory threshold set forth in Rule 2a-7. Each of the following Funds currently intends to qualify as a retail money market fund by October 14, 2016:

 

Schwab Money Market Fund   Schwab Municipal Money Fund
Schwab Value Advantage Money Fund   Schwab California Municipal Money Fund
Schwab Retirement Advantage Money Fund   Schwab New York Municipal Money Fund
Schwab Cash Reserves   Schwab Pennsylvania Municipal Money Fund
Schwab Advisor Cash Reserves   Schwab New Jersey Municipal Money Fund
Schwab Investor Money Fund   Schwab Massachusetts Municipal Money Fund
Schwab AMT Tax-Free Money Fund  

Under the Amendments and pursuant to guidance provided by the SEC, a money market fund that has both natural and non-natural beneficial owners is permitted to reserve the right to involuntarily redeem shareholders who are non-natural persons in order for the fund to qualify as a retail money market fund. Accordingly, effective immediately, the Prospectuses and Statements of Additional Information of the Funds listed above are updated to reflect that the Funds reserve the right to do the following:

 

  ●  

Involuntarily redeem a shareholder’s shares after providing 60 days written notice if the shareholder does not satisfy the eligibility requirements for a retail money market fund (i.e., the shareholder is not a natural person)

 

  ●  

Deny purchase of Fund shares to investors who do not satisfy the eligibility requirements to invest in a retail money market fund (i.e., investor is not a natural person).

Name Change for Certain Share Classes of Certain Funds

The following share class name changes will take effect immediately:

 

Old Name   New Name

Schwab Value Advantage Money Fund — Institutional Shares

   Schwab Value Advantage Money Fund — Premier Shares

Schwab Value Advantage Money Fund — Institutional Prime Shares

   Schwab Value Advantage Money Fund — Ultra Shares

Schwab Municipal Money Fund — Institutional Shares

   Schwab Municipal Money Fund — Premier Shares

Intention of Certain Funds to Operate as Government Money Market Funds

Under the Amendments, a “government money market fund” is defined as a money market fund that invests 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully by cash and/or government securities. A money market fund that meets this definition will be permitted to continue to use the amortized cost method and/or penny rounding pricing to value its portfolio securities and to transact at a constant net asset value. In addition, a government money market fund will not be subject to a liquidity fee (up to 2%) on redemptions and/or a redemption gate (suspension of redemptions for up to 10 business days in any 90 day calendar period), unless the fund’s board of trustees determines to reserve the ability to do so. Effective April 14, 2016, each of the following Funds intends to operate as a “government money market fund”:

Schwab Government Money Fund

Schwab U.S. Treasury Money Fund

Schwab Treasury Obligations Money Fund

(each, a “Schwab Government Money Fund” and together, the “Schwab Government Money Funds”)

Accordingly, at a meeting held on September 22, 2015, the Board of Trustees of the Trust (the “Board”) approved the adoption of: (1) a non-fundamental investment policy requiring each of the Schwab Government Money Fund and Schwab Treasury Obligations Money Fund to invest 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully by cash and/or government securities; and (2) a non-fundamental investment policy requiring Schwab U.S. Treasury Money Fund to invest 99.5% or more of its total assets in cash and/or government securities. Each of the Schwab Government Money Funds will continue to remain subject to its existing non-fundamental investment policy to invest at least 80% of its net assets (plus the amount of any borrowing for investment purposes) solely in government securities (excluding cash). The addition of these new non-fundamental investment policies is not expected to materially impact the manner in which the Schwab Government Money Funds’ assets have historically been invested.

In addition, the Board has determined not to reserve the ability to subject the Schwab Government Money Funds to a liquidity fee and/or a redemption gate on Fund redemptions. Please note that the Board may determine to reserve this ability in the future, but only after providing appropriate prior notice to shareholders as required under the Amendments.

The Prospectuses and Statement of Additional Information of the Schwab Government Money Funds will be updated to reflect the addition of each Fund’s new non-fundamental investment policy on April 14, 2016.

 

For more information regarding Money Market Fund Reform, visit Schwab’s Money

Market Fund Reform Resource Center at www.csimfunds.com/mmfreformcenter

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

 

REG88170-00 (10/15) © 2015 All Rights Reserved
DST00154880		    LOGO
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