N-CSR

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the fund covered in this report.

Dear Shareholder,

Schwab Advisor Cash Reserves (the Fund) is designed to offer investors stability, liquidity, and yield. The Fund invests in high-quality, short-term money market securities issued by U.S. and foreign issuers. The Fund is also actively managed, benefiting from extensive credit research and professional money management.

For the 12-month reporting period ended December 31, 2015, yields on taxable money market securities remained at historically low levels. Short-term interest rates stayed near zero percent until December, when the Federal Reserve (the Fed) ended months of speculation by raising the target federal funds rate. It was the first time in nine years that the central bank moved to increase rates and it signaled confidence in the U.S. economic recovery. The Fed also signaled that it was likely to continue to raise rates, albeit slowly and at a tempered pace. Even with the low interest rates, money market funds appealed to many investors who wanted to steer clear of more volatile investments such as stocks.

In related industry matters, in July 2014, the Securities and Exchange Commission released final guidance regarding the rules which govern money market funds. We believe that these amendments strike the right balance of preserving an important cash management tool for investors, while protecting investors from the possibility of significant money market fund redemptions during a crisis. In response to this guidance, Charles Schwab Investment Management will continue to offer a variety of investment options and a strong product lineup that includes municipal and prime money market funds, constructed specifically for retail investors and featuring a constant net asset value (NAV).¹

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about Schwab Advisor Cash Reserves, please continue reading this report. You can also find further details about this fund by visiting our website at www.csimfunds.com, which now includes six months of daily historical data on fund liquidity, NAV, and asset flows. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For the 12-month reporting period ended December 31, 2015, yields on taxable money market securities remained at historically low levels.

A fund’s share price is its NAV, which is the fund’s net assets divided by the number of its shares outstanding. Under the new amendments, retail prime and municipal money market funds, as well as government money market funds, will continue to be permitted to transact at a constant NAV of $1.00. Note that a fund may seek to maintain a constant NAV, but there is no guarantee it will be able to do so.

2Schwab Advisor Cash Reserves

Fund Management

Linda Klingman, Vice President and Head of Taxable Money Market Strategies, leads the portfolio management team of Schwab’s prime and government taxable money funds. Ms. Klingman also has overall responsibility for all aspects of the management of the fund. Prior to joining CSIM in 1990, Ms. Klingman was a senior money market trader with AIM Management. She has managed money market funds since 1988.

Michael Lin, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Lin has been a portfolio manager with CSIM since 2006, and also worked in CSIM’s Fund Administration group for nearly four years, where he focused on security pricing and valuation of Schwab Funds. Prior to joining CSIM, he spent three years at American Century Investments, most recently as a senior trader of the taxable money market funds.

Jonathan Roman, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Roman has been a portfolio manager with CSIM since 2010, and has held a number of positions at the firm since beginning his tenure in 2005. In 2009, he joined the Portfolio Management group as a Trader, and prior to that he worked in the Portfolio Operations and Analytics group providing trading support to the taxable money market desk.

Jonathan Feske, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the fund. He previously was responsible for credit and investment research for global banks for CSIM’s taxable bond and money funds. Prior to joining CSIM in 2011, Mr. Feske was a high-yield bond analyst for more than two years at Miller Tabak Roberts Securities, a boutique corporate bond broker-dealer, which is now part of GMP Capital. He covered both U.S. and emerging market credits, focusing on distressed situations in various industrial sectors. Previously, Mr. Feske was employed in the securities industry as an equity trader for three years.

Schwab Advisor Cash Reserves3

Schwab Advisor Cash Reserves

Schwab Advisor Cash Reserves (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market instruments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, certificates of deposit, repurchase agreements, variable-rate debt securities, and obligations issued by the U.S. government or its agencies and instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Since December 2008, when the Federal Reserve (the Fed) first cut short-term interest rates to a target range of 0.00% to 0.25%, yields on money market securities have remained historically low—a trend that continued throughout most of the reporting period. As a result, and to help the fund maintain a non-negative net yield, the fund’s investment adviser and its affiliates voluntarily waived certain fees or expenses during the reporting period. For more information about the fund’s yield and other important characteristics, please review the charts and footnotes that follow this discussion.

Market Highlights. For the 12-month reporting period ended December 31, 2015, many markets saw heightened volatility. China’s economy continued to slow, commodities dropped sharply, and global economic growth remained weak, all contributing to investor uncertainty. Meanwhile, the Fed raised the target federal funds rate to a range of 0.25% to 0.50% at its last meeting of the year, ending months-long speculation about the timing of an increase. As part of the rate hike, the Fed’s overnight Reverse Repurchase Facility will now be used as a tool for policy implementation, the directive being maintenance of the new federal funds target range. Through the sale and repurchase of securities at a current market rate, the goal of the facility is to establish a floor for short-term interest rates.

Available supply of money market securities largely remains constrained as stricter regulatory mandates have increased the costs of selling short-term securities for many issuers. These higher costs and persistently low interest rates have instead encouraged the issuance of longer-term securities, most of which are not money market eligible.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved. In anticipation of the impending rate hike, the weighted average maturity (WAM) of the fund was generally reduced over the reporting period. Reflecting these strategies, the fund’s WAM started the reporting period at 44 days and ended at 36 days.

As of 12/31/15:

Portfolio Composition By Maturity¹
% of investments
1-7 Days	42.5%
8-30 Days	16.8%
31-60 Days	12.6%
61-90 Days	16.8%
91-180 Days	11.1%
More than 180 Days	0.2%
Total	100.0%

Statistics
Weighted Average Maturity²	36 Days
Credit Quality Of Holdings³ % of portfolio	100% Tier 1

Portfolio Composition by Security Type
% of investments
Commercial Paper
Asset-Backed	7.3%
Financial Company	11.4%
Other	1.3%
Certificate Of Deposit	37.7%
Treasury Debt	2.0%
Other Instrument	2.7%
Other Note	3.2%
Repurchase Agreement
Government Agency	4.3%
Treasury	25.2%
Other	4.9%
Total	100.0%

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

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

¹	As shown in the Portfolio Holdings section of the shareholder report.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	Tier 1 securities are rated in the highest short-term rating category by two nationally recognized statistical rating organizations (NRSROs), or by one if only one NRSRO has rated the securities, or, if unrated, determined to be of comparable quality by CSIM pursuant to guidelines adopted by the Board of Trustees. Money market fund shares and U.S. government securities are also Tier 1 securities. The fund uses NRSRO credit ratings from Standard & Poor’s Corp., Moody’s Investors Service, Fitch Ratings, and/or DBRS. The fund may use different ratings provided by other rating agencies for purposes of determining compliance with the fund’s investment policies. The fund itself has not been rated by an independent credit rating agency.

4Schwab Advisor Cash Reserves

Performance and Fund Facts as of 12/31/15

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

Seven-Day Average Yield Trend for previous 12 months*

Seven-Day Yields

The seven-day yield is the income generated by the fund’s portfolio holdings minus the fund’s operating expenses. The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.

	Schwab Advisor Cash Reserves
	Sweep Shares	Premier Sweep Shares
Ticker Symbol	SWQXX	SWZXX
Minimum Initial Investment	**	**
Seven-Day Yield¹	0.01%	0.01%
Seven-Day Yield–Without Contractual Expense Limitation²	-0.08%	-0.15%
Seven-Day Effective Yield¹	0.01%	0.01%

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

*	The seven-day average yield for the Sweep Shares and Premier Sweep Shares was 0.01% throughout the entire period.
**	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Yield reflects the effect of the fund’s agreement with the investment adviser and its affiliates to limit each share class’ total annual operating expenses to certain levels (contractual expense limitation). In addition, the investment adviser and its affiliates have voluntarily waived expenses in excess of the contractual expense limitation to maintain a positive net yield for each share class of the fund (voluntary yield waiver). Without the contractual expense limitation and the voluntary yield waiver, the fund’s yield would have been lower. For additional details, see financial note 4.
²	Yield does not reflect the effect of the contractual expense limitation, but does reflect the effect of the voluntary yield waiver. The voluntary yield waiver added 0.18% and 0.11% to the seven-day yields of the Sweep Shares and Premier Sweep Shares, respectively.

Schwab Advisor Cash Reserves5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning July 1, 2015 and held through December 31, 2015.

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

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Expense Ratio¹ (Annualized)	Beginning Account Value at 7/1/15	Ending Account Value (Net of Expenses) at 12/31/15	Expenses Paid During Period² 7/1/15–12/31/15
Schwab Advisor Cash Reserves
Sweep Shares
Actual Return	0.31%	$1,000.00	$1,000.10	$1.56
Hypothetical 5% Return	0.31%	$1,000.00	$1,023.64	$1.58
Premier Sweep Shares
Actual Return	0.31%	$1,000.00	$1,000.10	$1.56
Hypothetical 5% Return	0.31%	$1,000.00	$1,023.64	$1.58

¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
²	Expenses for each share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

6Schwab Advisor Cash Reserves

Schwab Advisor Cash Reserves

Financial Statements

Financial Highlights

Sweep Shares	1/1/15– 12/31/15	1/1/14– 12/31/14	1/1/13– 12/31/13	1/1/12– 12/31/12	1/1/11– 12/31/11
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.00 ¹^,²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	(0.00) ²	0.00 ²	0.00 ²	0.00 ²	(0.00) ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.01%	0.01%	0.01%	0.01%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.28% ³	0.21% ³	0.25% ³	0.28% ³^,⁴	0.26% ³
Gross operating expenses	0.72%	0.72%	0.72%	0.72% ⁴	0.73%
Net investment income (loss)	0.01%	0.01%	0.01%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$5,206	$6,027	$6,134	$6,207	$6,035

Premier Sweep Shares	1/1/15– 12/31/15	1/1/14– 12/31/14	1/1/13– 12/31/13	1/1/12– 12/31/12	1/1/11– 12/31/11
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income from investment operations:
Net investment income (loss)	0.00 ¹^,²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	(0.00) ²	0.00 ²	0.00 ²	0.00 ²	(0.00) ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return	0.01%	0.01%	0.01%	0.01%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.28% ³	0.21% ³	0.25% ³	0.28% ³^,⁴	0.26% ³
Gross operating expenses	0.72%	0.72%	0.72%	0.72% ⁴	0.73%
Net investment income (loss)	0.01%	0.01%	0.01%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$18,223	$17,952	$17,525	$17,575	$14,727

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁴

The ratio of gross operating expenses would have been 0.73%, if the State filing fee reimbursement had not been included. There was no impact on the ratio of net operating expenses.

See financial notes 7

Schwab Advisor Cash Reserves

Portfolio Holdings as of December 31, 2015

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

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also files a complete schedule of portfolio holdings with the SEC monthly on Form N-MFP which is available 60 days after the end of the month to which the information pertains. The fund also makes available its complete schedule of portfolio holdings 5 business days after month end on the fund's website at www.csimfunds.com/schwabfunds_prospectus along with a link to the fund's Form N-MFP filings on the SEC's website.

For fixed rate obligations, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security's structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Holdings by Category		Cost ($)	Value ($)
47.6%	Fixed-Rate Obligations	11,148,164,400	11,148,164,400
18.0%	Variable-Rate Obligations	4,222,423,039	4,222,423,039
34.4%	Repurchase Agreements	8,051,660,197	8,051,660,197
100.0%	Total Investments	23,422,247,636	23,422,247,636
0.0%	Other Assets and Liabilities, Net		6,038,422
100.0%	Net Assets		23,428,286,058

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 47.6% of net assets
Asset-Backed Commercial Paper 7.3%
BENNINGTON STARK CAPITAL COMPANY LLC	a,b	0.45%		01/11/16	14,000,000	13,998,250
CAFCO LLC	a,b	0.46%		02/03/16	74,000,000	73,968,797
	a,b	0.51%		03/08/16	63,000,000	62,940,202
	a,b	0.50%		05/04/16	38,000,000	37,934,556
CHARTA LLC	a,b	0.51%		03/08/16	36,000,000	35,965,830
CIESCO LLC	a,b	0.46%		02/02/16	25,000,000	24,989,778
COLLATERALIZED COMMERCIAL PAPER CO LLC	a	0.52%		04/01/16	50,000,000	49,934,278
CRC FUNDING LLC	a,b	0.46%		02/02/16	81,000,000	80,966,880
	a,b	0.46%		02/03/16	45,000,000	44,981,025
	a,b	0.47%		02/05/16	25,000,000	24,988,576
METLIFE SHORT TERM FUNDING LLC	a,b	0.40%		01/21/16	42,000,000	41,990,667
	a,b	0.40%		01/25/16	100,000,000	99,973,333
	a,b	0.55%		03/01/16	30,000,000	29,972,500
NIEUW AMSTERDAM RECEIVABLES CORP	a,b	0.52%		03/08/16	35,000,000	34,966,128
OLD LINE FUNDING LLC	a,b	0.50%		03/29/16	50,000,000	49,938,889
	a,b	0.47%		04/20/16	33,000,000	32,952,608
RIDGEFIELD FUNDING COMPANY LLC	a,b	0.42%		02/02/16	32,000,000	31,988,053
	a,b	0.60%		03/07/16	130,000,000	129,857,000

8 See financial notes

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SHEFFIELD RECEIVABLES CORP	a,b	0.40%		02/02/16	6,000,000	5,997,867
	a,b	0.41%		02/03/16	32,000,000	31,987,973
	a,b	0.42%		02/17/16	194,000,000	193,893,623
	a,b	0.42%		02/18/16	37,000,000	36,979,280
STARBIRD FUNDING CORP	a,b	0.68%		03/17/16	68,000,000	67,902,382
THUNDER BAY FUNDING LLC	a,b	0.50%		04/05/16	68,000,000	67,910,278
	a,b	0.70%		04/14/16	97,000,000	96,803,844
VERSAILLES COMMERCIAL PAPER LLC	a,b	0.39%		02/12/16	88,000,000	87,959,960
VICTORY RECEIVABLES CORP	a,b	0.43%		01/22/16	28,000,000	27,992,977
	a,b	0.47%		01/26/16	190,000,000	189,937,986
						1,709,673,520
Financial Company Commercial Paper 7.5%
ABN AMRO FUNDING USA LLC	a,b	0.63%		03/21/16	124,000,000	123,826,400
BANK OF NOVA SCOTIA	b	0.40%		02/22/16	15,000,000	14,991,333
	b	0.47%		04/21/16	73,000,000	72,894,211
	b	0.50%		05/16/16	168,000,000	167,682,667
BNP PARIBAS SA (DUBLIN BRANCH)	b	0.51%		04/05/16	91,000,000	90,877,529
BPCE SA	b	0.42%		02/03/16	92,000,000	91,964,580
	b	0.65%		03/31/16	92,000,000	91,850,500
HSBC USA INC	b	0.47%		04/26/16	103,000,000	102,844,012
ING US FUNDING LLC	a	0.43%		03/14/16	147,000,000	146,871,824
	a	0.44%		03/14/16	74,000,000	73,933,975
MACQUARIE BANK LTD	b	0.43%		02/22/16	86,000,000	85,946,584
	b	0.70%		03/17/16	27,000,000	26,960,100
NATIONWIDE BUILDING SOCIETY	b	0.47%		03/01/16	120,000,000	119,906,000
	b	0.63%		03/15/16	50,000,000	49,935,250
NRW BANK	b	0.37%		01/06/16	115,000,000	114,994,170
	b	0.35%		01/08/16	54,000,000	53,996,325
	b	0.37%		01/08/16	101,000,000	100,992,832
OVERSEA-CHINESE BANKING CORPORATION LIMITED		0.52%		03/03/16	29,428,000	29,401,646
UNITED OVERSEAS BANK LTD	b	0.39%		01/07/16	47,000,000	46,996,867
	b	0.47%		03/23/16	148,000,000	147,841,558
						1,754,708,363
Other Commercial Paper 1.4%
COCA-COLA CO	b	0.39%		01/21/16	32,000,000	31,993,067
TOYOTA MOTOR CREDIT CORP		0.37%		01/21/16	81,000,000	80,983,350
		0.40%		02/10/16	18,000,000	17,992,000
		0.40%		03/02/16	36,000,000	35,975,600
		0.57%		03/09/16	150,000,000	149,838,500
						316,782,517
Certificates of Deposit 27.7%
ABBEY NATIONAL TREASURY SERVICES PLC (STAMFORD BRANCH)	a	0.40%		02/16/16	76,000,000	76,000,000

See financial notes 9

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
BANK OF MONTREAL (CHICAGO BRANCH)		0.62%		03/21/16	50,000,000	50,000,000
		0.63%		03/24/16	49,000,000	49,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)		0.40%		02/08/16	99,000,000	99,000,000
		0.45%		02/10/16	56,000,000	56,000,000
BANK OF THE WEST		0.34%		02/08/16	41,000,000	41,000,000
BANK OF TOKYO-MITSUBISHI UFJ LTD (NEW YORK BRANCH)		0.51%		04/05/16	125,000,000	125,000,000
		0.51%		04/19/16	83,000,000	83,000,000
		0.65%		07/13/16	1,000,000	1,000,000
BARCLAYS BANK PLC (NEW YORK BRANCH)		0.60%		02/26/16	160,000,000	160,000,000
		0.92%		05/23/16	59,000,000	59,000,000
BNP PARIBAS FORTIS SA/NV (NEW YORK BRANCH)		0.61%		04/01/16	62,000,000	62,000,000
BNP PARIBAS SA (SAN FRANCISCO BRANCH)		0.52%		03/01/16	99,000,000	99,000,000
BRANCH BANKING AND TRUST COMPANY		0.33%		01/06/16	88,000,000	88,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		0.52%		03/04/16	64,000,000	64,000,000
		0.55%		03/14/16	7,000,000	7,000,000
CITIBANK NA (NEW YORK BRANCH)		0.38%		01/05/16	48,000,000	48,000,000
		0.40%		01/11/16	266,000,000	266,000,000
COMMONWEALTH BANK OF AUSTRALIA (LONDON BRANCH)		0.40%		03/01/16	50,000,000	50,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (NEW YORK BRANCH)		0.30%		01/07/16	20,000,000	20,000,000
		0.39%		02/10/16	206,000,000	206,000,000
		0.67%		03/29/16	1,000,000	1,000,000
CREDIT AGRICOLE SA (LONDON BRANCH)		0.40%		02/01/16	3,000,000	3,000,000
		0.46%		03/01/16	109,000,000	109,000,000
CREDIT SUISSE AG (NEW YORK BRANCH)		0.50%		02/01/16	34,000,000	34,000,000
		0.58%		02/18/16	84,000,000	84,000,000
		0.59%		03/08/16	77,000,000	77,000,000
		0.57%		03/29/16	84,000,000	84,000,000
ING BANK NV (AMSTERDAM BRANCH)		0.54%		05/02/16	192,000,000	192,000,000
LLOYDS BANK PLC (NEW YORK BRANCH)		0.52%		02/18/16	120,000,000	120,000,000
		0.52%		02/23/16	62,000,000	62,000,000
		0.66%		03/21/16	172,000,000	172,000,000
		0.50%		04/05/16	37,000,000	37,000,000
MITSUBISHI UFJ TRUST AND BANKING CORP (NEW YORK BRANCH)		0.42%		01/05/16	31,000,000	31,000,000
		0.40%		01/08/16	20,000,000	20,000,000
		0.42%		01/15/16	19,000,000	19,000,000
		0.40%		01/21/16	20,000,000	20,000,000
		0.40%		01/22/16	20,000,000	20,000,000
		0.40%		01/27/16	82,000,000	82,000,000
		0.43%		01/29/16	15,000,000	15,000,000
		0.42%		02/24/16	57,000,000	57,000,000
		0.50%		04/13/16	56,000,000	56,000,000

10 See financial notes

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
MIZUHO BANK LTD (NEW YORK BRANCH)		0.36%		02/12/16	186,000,000	186,000,000
		0.54%		03/16/16	15,000,000	15,000,000
		0.50%		03/17/16	214,000,000	214,000,000
NATIONAL AUSTRALIA BANK LIMITED (LONDON BRANCH)		0.30%		02/12/16	154,000,000	154,000,000
NATIONAL BANK OF CANADA (NEW YORK BRANCH)		0.45%		01/19/16	31,000,000	31,000,000
		0.55%		02/18/16	76,000,000	76,000,000
NATIXIS (NEW YORK BRANCH)		0.47%		03/07/16	71,000,000	71,000,000
NORDEA BANK FINLAND PLC (NEW YORK BRANCH)		0.39%		03/01/16	3,000,000	3,000,000
OVERSEA-CHINESE BANKING CORP LTD (NEW YORK BRANCH)		0.18%		01/05/16	5,000,000	5,000,000
		0.24%		01/06/16	112,000,000	112,000,000
		0.40%		01/11/16	44,000,000	44,000,000
		0.37%		02/18/16	22,000,000	22,000,000
RABOBANK NEDERLAND (NEW YORK BRANCH)		0.35%		01/04/16	10,000,000	10,000,000
		0.50%		02/19/16	104,000,000	104,000,000
		0.51%		03/24/16	72,000,000	72,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		0.48%		04/05/16	109,000,000	109,000,000
SOCIETE GENERALE (NEW YORK BRANCH)		0.35%		01/04/16	77,000,000	77,000,000
		0.35%		01/05/16	79,000,000	79,000,000
		0.39%		01/07/16	65,000,000	65,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		0.41%		01/07/16	14,000,000	14,000,000
		0.41%		01/12/16	19,000,000	19,000,000
		0.30%		01/26/16	35,000,000	35,000,000
		0.40%		02/19/16	47,000,000	47,000,000
		0.40%		03/01/16	1,000,000	1,000,000
		0.45%		03/03/16	12,000,000	12,000,000
		0.50%		03/17/16	1,000,000	1,000,000
		0.70%		03/22/16	2,000,000	2,000,000
		0.50%		03/24/16	136,000,000	136,000,000
		0.50%		03/29/16	66,000,000	66,000,000
		0.50%		04/04/16	83,000,000	83,000,000
		0.50%		04/05/16	51,000,000	51,000,000
		0.50%		04/27/16	12,000,000	12,000,000
		0.85%		06/09/16	178,000,000	178,000,000
SUMITOMO MITSUI TRUST BANK LIMITED (NEW YORK BRANCH)		0.33%		02/08/16	30,000,000	30,000,000
		0.38%		02/16/16	24,000,000	24,000,000
		0.43%		02/23/16	69,000,000	69,000,000
		0.65%		03/14/16	152,000,000	152,000,000
		0.65%		03/17/16	26,000,000	26,000,000
		0.68%		03/21/16	47,000,000	47,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)		0.40%		03/01/16	317,000,000	317,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		0.40%		03/01/16	151,000,000	151,000,000
		0.62%		04/25/16	41,000,000	41,000,000
		0.50%		05/20/16	24,000,000	24,000,000
		0.50%		06/01/16	95,000,000	95,000,000
		1.00%		11/07/16	50,000,000	50,000,000
UBS AG (STAMFORD BRANCH)		0.50%		02/03/16	51,000,000	51,000,000
		0.55%		03/01/16	31,000,000	31,000,000

See financial notes 11

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WELLS FARGO BANK NA		0.46%		04/22/16	160,000,000	160,000,000
WESTPAC BANKING CORP (NEW YORK BRANCH)		0.48%		02/08/16	120,000,000	120,000,000
						6,498,000,000
Other Instruments 2.7%
ABBEY NATIONAL TREASURY SERVICES PLC (CAYMAN ISLANDS BRANCH)	a	0.28%		01/04/16	50,000,000	50,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (CAYMAN ISLANDS BRANCH)	a	0.35%		01/05/16	253,000,000	253,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		0.28%		01/05/16	256,000,000	256,000,000
LLOYDS BANK PLC (NEW YORK BRANCH)		0.26%		01/04/16	76,000,000	76,000,000
						635,000,000
Other Notes 1.0%
BANK OF AMERICA NA		0.34%		01/19/16	163,000,000	163,000,000
		0.53%		02/22/16	46,000,000	46,000,000
		0.46%		04/07/16	25,000,000	25,000,000
						234,000,000
Total Fixed-Rate Obligations
(Cost $11,148,164,400)						11,148,164,400

Variable-Rate Obligations 18.0% of net assets
Financial Company Commercial Paper 3.9%
COMMONWEALTH BANK OF AUSTRALIA	b	0.45%	01/12/16	05/12/16	25,000,000	25,000,000
	b	0.63%	01/27/16	06/27/16	50,000,000	50,000,000
	b	0.63%	01/29/16	06/29/16	100,000,000	100,000,000
	b	0.49%	01/08/16	07/08/16	208,000,000	208,000,000
HSBC BANK PLC	b	0.39%		01/04/16	134,000,000	133,999,999
	b	0.42%	01/04/16	06/01/16	218,000,000	218,000,000
	b	0.46%	01/04/16	08/01/16	11,000,000	11,000,000
WESTPAC BANKING CORP	b	0.48%	01/05/16	07/05/16	166,000,000	166,000,000
						911,999,999
Certificates of Deposit 9.9%
BANK OF MONTREAL (CHICAGO BRANCH)		0.52%	01/13/16	05/13/16	88,000,000	88,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)		0.55%	01/14/16	07/14/16	123,000,000	123,000,000
BANK OF NOVA SCOTIA (NEW YORK BRANCH)		0.56%	01/15/16	07/15/16	7,000,000	7,000,000
BANK OF TOKYO-MITSUBISHI UFJ LTD (NEW YORK BRANCH)		0.64%	01/11/16	03/10/16	170,000,000	170,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		0.66%	01/26/16	05/26/16	60,000,000	60,000,000
		0.46%	01/11/16	06/10/16	182,000,000	182,000,000
		0.66%	01/28/16	06/28/16	77,000,000	77,000,000

12 See financial notes

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
ROYAL BANK OF CANADA (NEW YORK BRANCH)		0.53%	01/25/16	02/25/16	150,000,000	150,000,000
		0.45%	01/13/16	04/13/16	20,000,000	20,000,000
		0.45%	01/04/16	08/31/16	125,000,000	125,000,000
		0.48%	01/04/16	10/03/16	137,000,000	137,000,000
STATE STREET BANK AND TRUST COMPANY		0.61%	01/20/16	05/20/16	238,000,000	238,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		0.49%	01/19/16	03/16/16	123,000,000	123,000,000
		0.51%	01/20/16	03/21/16	115,000,000	115,000,000
		0.59%	01/12/16	08/12/16	210,000,000	210,000,000
WELLS FARGO BANK NA		0.41%	01/08/16	02/08/16	95,000,000	95,000,000
		0.42%	01/11/16	02/09/16	64,000,000	64,000,000
		0.45%	01/14/16	02/12/16	65,000,000	65,000,000
		0.56%	01/19/16	05/19/16	72,000,000	72,000,000
		0.67%	01/27/16	07/27/16	130,000,000	130,000,000
WESTPAC BANKING CORP (NEW YORK BRANCH)		0.41%	01/08/16	02/08/16	71,000,000	71,000,000
						2,322,000,000
Treasury Debt 2.0%
UNITED STATES TREASURY		0.31%	01/04/16	01/31/16	160,000,000	159,998,426
		0.33%	01/04/16	07/31/16	95,000,000	95,000,000
		0.34%	01/04/16	01/31/17	85,000,000	84,999,615
		0.43%	01/04/16	10/31/17	120,000,000	119,999,999
						459,998,040
Variable Rate Demand Notes 0.0%
BRECKENRIDGE TERRACE LLC
SERIES VRDN (LOC: BANK OF AMERICA NA)	a	0.47%		01/07/16	1,000,000	1,000,000
EAGLE CNTY COLO
REV MULTI FAM HOUSING (THE TARNES @ BC LLC) SERIES 1999 B (LOC: WELLS FARGO BANK NA)	a	0.47%		01/07/16	2,410,000	2,410,000
GFRE HOLDINGS LLC
(LOC: FEDERAL HOME LOAN BANKS)	a	0.42%		01/07/16	2,130,000	2,130,000
TENDERFOOT SEASONAL HSG LLC COLO HSG FACS
REV MULTI FAM HOUSING SERIES 2000B (LOC: WELLS FARGO BANK NA)	a	0.47%		01/07/16	2,885,000	2,885,000
						8,425,000
Other Notes 2.2%
BANK OF AMERICA NA		0.46%	01/04/16	04/04/16	60,000,000	60,000,000
JPMORGAN CHASE BANK NA		0.47%	01/19/16	09/16/16	90,000,000	90,000,000
		0.48%	01/22/16	10/21/16	30,000,000	30,000,000
ROYAL BANK OF CANADA	b	0.44%	01/07/16	09/06/16	60,000,000	60,000,000
WELLS FARGO BANK NA		0.63%	03/15/16	10/14/16	55,000,000	55,000,000
		0.77%	03/22/16	10/21/16	225,000,000	225,000,000
						520,000,000
Total Variable-Rate Obligations
(Cost $4,222,423,039)						4,222,423,039

See financial notes 13

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 34.4% of net assets
Government Agency Repurchase Agreements* 4.3%
BANK OF NOVA SCOTIA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $65,920,000, 3.00% - 4.00%, due 06/01/42 - 09/01/45)		0.32%		01/04/16	64,002,276	64,000,000
BNP PARIBAS SECURITIES CORP.
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $204,842,018, 0.50% - 7.00%, due 09/01/16 - 11/01/45)		0.31%		01/04/16	199,006,854	199,000,000
DEUTSCHE BANK SECURITIES INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $107,865,146, 4.00% - 4.50%, due 04/01/44 - 08/20/45)		0.36%		01/04/16	104,004,160	104,000,000
GOLDMAN SACHS & CO
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $36,720,000, 3.50% - 6.00%, due 04/01/19 - 11/01/45)		0.32%		01/04/16	36,001,280	36,000,000
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by U.S. Government Agency Securities valued at $76,500,001, 3.50% - 4.00%, due 03/20/45 - 04/20/45)		0.30%		01/06/16	75,004,375	75,000,000
JP MORGAN SECURITIES LLC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $42,230,000, 2.75% - 3.50%, due 01/16/38 - 02/01/43)		0.34%		01/04/16	41,001,549	41,000,000
MERRILL LYNCH PIERCE FENNER & SMITH INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $31,930,000, 0.55% - 3.00%, due 08/15/38 - 12/15/39)		0.31%		01/04/16	31,001,068	31,000,000
MIZUHO SECURITIES USA INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $59,160,382, 0.50% - 3.23%, due 04/21/17 - 04/30/31)		0.33%		01/04/16	58,002,127	58,000,000
WELLS FARGO BANK NA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $410,815,976, 2.50% - 3.50%, due 02/01/30 - 09/01/45)		0.35%		01/04/16	395,015,361	395,000,000
						1,003,000,000
Treasury Repurchase Agreements 25.2%
BARCLAYS CAPITAL INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $3,733,447, 6.13%, due 11/15/27)		0.31%		01/04/16	3,660,323	3,660,197
Issued 12/29/15, repurchase date 01/05/16 (Collateralized by U.S. Treasury Securities valued at $76,500,001, 0.00% - 6.88%, due 05/15/16 - 11/15/42)		0.28%		01/05/16	75,004,083	75,000,000

14 See financial notes

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
BNP PARIBAS SECURITIES CORP.
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $52,020,030, 0.00% - 2.75%, due 05/19/16 - 02/15/44)		0.29%		01/04/16	51,001,643	51,000,000
FEDERAL RESERVE BANK OF NEW YORK
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $5,595,155,523, 0.88% - 3.63%, due 03/31/18 - 02/15/22)		0.25%		01/04/16	5,595,155,417	5,595,000,000
JP MORGAN SECURITIES LLC
Issued 12/31/15, repurchase date 01/07/16 (Collateralized by U.S. Treasury Securities valued at $102,000,005, 2.00% - 5.13%, due 05/15/16 - 11/15/24)		0.31%		01/07/16	100,006,028	100,000,000
WELLS FARGO BANK NA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $73,442,781, 1.38%, due 03/31/20)		0.33%		01/04/16	72,002,640	72,000,000
						5,896,660,197
Other Repurchase Agreements** 4.9%
BNP PARIBAS SECURITIES CORP.
Issued 12/28/15, repurchase date 01/04/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $77,050,000, 2.17% - 5.12%, due 07/25/23 - 04/25/28)		0.45%		01/04/16	67,005,863	67,000,000
Issued 12/29/15, repurchase date 01/05/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $62,100,000, 1.42% - 5.05%, due 11/27/23 - 05/25/28)		0.45%		01/05/16	54,004,725	54,000,000
Issued 12/31/15, repurchase date 01/05/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $63,250,000, 2.22% - 7.37%, due 07/25/23 - 05/27/25)		0.45%		01/05/16	55,003,438	55,000,000
CREDIT SUISSE SECURITIES (USA) LLC
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $119,601,140, 0.26% - 6.67%, due 07/15/20 - 02/12/51)		0.60%		01/06/16	104,012,133	104,000,000
Issued 12/21/15, repurchase date 06/03/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $373,753,971, 0.08% - 8.00%, due 03/15/17 - 11/25/60)	c	1.20%		04/04/16	326,137,500	325,000,000
JP MORGAN SECURITIES LLC
Issued 12/04/15, repurchase date 06/01/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $115,078,589, 0.87% - 8.75%, due 03/01/17 - 11/15/67)	c	0.90%		03/30/16	100,292,500	100,000,000
Issued 12/23/15, repurchase date 06/20/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $175,991,450, 0.93% - 8.88%, due 09/27/16 - 06/15/68)	c	1.05%		03/30/16	153,437,325	153,000,000
MERRILL LYNCH PIERCE FENNER & SMITH INC
Issued 11/18/15, repurchase date 02/16/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $212,750,000, 3.45% - 7.05%, due 01/15/20 - 11/25/57)	c	0.66%		02/04/16	185,264,550	185,000,000

See financial notes 15

Schwab Advisor Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
WELLS FARGO SECURITIES LLC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $27,601,073, 0.83% - 5.95%, due 12/08/20 - 02/12/51)		0.35%		01/04/16	24,000,933	24,000,000
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $27,602,952, 2.62% - 5.52%, due 10/25/35 - 08/25/44)		0.55%		01/06/16	24,002,567	24,000,000
Issued 11/10/15, repurchase date 05/09/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $70,432,159, 0.00% - 5.18%, due 01/17/20 - 05/25/55)	c	0.80%		04/04/16	61,197,911	61,000,000
						1,152,000,000
Total Repurchase Agreements
(Cost $8,051,660,197)						8,051,660,197

End of Investments.

At 12/31/15, the tax basis cost of the fund's investments was $23,422,247,636.

a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $4,168,233,226 or 17.8% of net assets.
c	Illiquid security. At the period end, the value of these amounted to $824,000,000 or 3.5% of net assets.
*	Usually collateralized via U.S. Government Agency Securities or less frequently by U.S. Treasury Securities.
**	Usually collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by U.S. Government Agency Securities and/ or U.S. Treasury Securities.

ABS —	Asset-backed securities
ETF —	Exchange Traded Fund
FACS —	Facilities
LOC —	Letter of credit
REV —	Revenue
VRDN —	Variable rate demand note

At December 31, 2015, all of the fund's investment securities were classified as Level 2. The fund's policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended December 31, 2015. The breakdown of the fund's investments into major categories is disclosed on the Portfolio Holdings. (See financial note 2(a) for additional information)

16 See financial notes

Schwab Advisor Cash Reserves

Statement of

Changes in Net Assets

For the current and prior report periods

Operations
	1/1/15-12/31/15		1/1/14-12/31/14
Net investment income		$2,186,948	$2,300,347
Net realized gains (losses)	+	(102,935)	8,440
Increase in net assets from operations		2,084,013	2,308,787
Distributions to Shareholders
Distributions from net investment income
Sweep Shares		(538,737)	(580,822)
Premier Sweep Shares	+	(1,648,211)	(1,719,525)
Total distributions from net investment income		(2,186,948)	(2,300,347)
Transactions in Fund Shares*
Shares Sold
Sweep Shares		17,223,019,813	20,201,561,814
Premier Sweep Shares	+	62,893,508,743	73,314,241,632
Total shares sold		80,116,528,556	93,515,803,446
Shares Reinvested
Sweep Shares		469,437	508,597
Premier Sweep Shares	+	1,570,469	1,641,173
Total shares reinvested		2,039,906	2,149,770
Shares Redeemed
Sweep Shares		(18,044,718,047)	(20,309,183,858)
Premier Sweep Shares	+	(62,624,204,045)	(72,888,588,931)
Total shares redeemed		(80,668,922,092)	(93,197,772,789)
Net transactions in fund shares		(550,353,630)	320,180,427
Net Assets
Beginning of period		23,978,742,623	23,658,553,756
Total increase or decrease	+	(550,456,565)	320,188,867
End of period		$23,428,286,058	$23,978,742,623

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

See financial notes 19

Schwab Advisor Cash Reserves

Financial Notes

1. Business Structure of the Fund:

Schwab Advisor Cash Reserves is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:

The Charles Schwab Family of Funds (organized October 20, 1989)	Schwab Municipal Money Fund™
Schwab Money Market Fund™	Schwab AMT Tax-Free Money Fund™
Schwab Government Money Fund™	Schwab California Municipal Money Fund™
Schwab U.S. Treasury Money Fund™	Schwab New York Municipal Money Fund™
Schwab Treasury Obligations Money Fund™	(formerly Schwab New York AMT Tax-Free Money Fund)
Schwab Value Advantage Money Fund^®	Schwab New Jersey Municipal Money Fund™
Schwab Advisor Cash Reserves	(formerly Schwab New Jersey AMT Tax-Free Money Fund)
Schwab Cash Reserves™	Schwab Pennsylvania Municipal Money Fund™
Schwab Retirement Advantage Money Fund^®	Schwab Massachusetts Municipal Money Fund™
Schwab Investor Money Fund^®	(formerly Schwab Massachusetts AMT Tax-Free Money Fund)

Schwab Advisor Cash Reserves offers two share classes: Sweep Shares and Premier Sweep Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the fund. Each share has a par value of 1/1,000 of a cent, and the fund's Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities in the fund are valued at amortized cost (which approximates market value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate market value, securities may be fair valued as determined in accordance with procedures adopted by the Board. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

Schwab Advisor Cash Reserves

Financial Notes (continued)

2. Significant Accounting Policies (continued):

fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities.

• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. Securities held by money funds operating under Rule 2a-7 of the 1940 Act are valued at amortized cost which approximates current market value and are considered to be valued using Level 2 inputs.

• Level 3—significant unobservable inputs (including the fund's own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund's results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

(b) Accounting Policies for certain Portfolio Investments (if held):

Repurchase Agreements: In a repurchase agreement, a fund buys a security from another party (the counter-party), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counter-party risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The fund mitigates this risk by ensuring that a fund's repurchase agreements are collateralized by cash, U.S. government securities, fixed income securities, equity securities or other types of securities. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade. All collateral is held by the fund's custodian (or, with multi-party agreements, the agent's bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement. In the event of a default by the counter-party, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counter-party.

As of December 31, 2015, the fund had investments in repurchase agreements with a gross value of $8,051,660,197 as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities. The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Delayed-Delivery Transactions: The fund may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The fund will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to a fund until the security is delivered. The fund will earmark or segregate appropriate liquid assets to cover its delayed-delivery purchase obligations, if any.

Schwab Advisor Cash Reserves

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

(d) Investment Income:

Interest income is recorded as it accrues. If the fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. If the security is callable (meaning that the issuer has the option to pay it off before its maturity date), then the fund amortizes the premium and accretes discounts to the security’s call date and price, rather than the maturity date and price.

(e) Expenses:

Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

For funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The fund declares distributions from net investment income, if any, every day it is open for business. These distributions, which are substantially equal to the fund's net investment income for that day, are paid out to shareholders once a month. The fund makes distributions from net realized capital gains, if any, once a year.

(g) Custody Credit:

The fund has an arrangement with its custodian bank, State Street Bank and Trust Company (State Street), under which the fund may receive a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to the fund’s operating expenses.

(h) Accounting Estimates:

The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

(i) Federal Income Taxes:

The fund intends to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its respective shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.

(j) Indemnification:

Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.

3. Risk Factors:

Investment Risk. An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of a shareholder’s investment at $1 per share, it is possible to lose money by investing in the fund.

Schwab Advisor Cash Reserves

Financial Notes (continued)

3. Risk Factors (continued):

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, the fund’s yield will change over time. During periods when interest rates are low, the fund’s yield (and total return) also will be low. Because interest rates in the United States are at, or near, historically low levels, a change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. A sudden or unpredictable rise in interest rates may cause volatility in the market and may decrease liquidity in the money market securities markets, making it more difficult for the fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of the fund’s money market securities holdings. In addition, to the extent the fund makes any reimbursement payments to the investment adviser and/or its affiliates, the fund’s yield would be lower.

Repurchase Agreements Risk. When the fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counter-party) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when the fund buys a security from a counter-party that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counter-party will not repurchase the security. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade (Alternative Collateral). High yield securities that are used as Alternative Collateral are subject to greater levels of credit and liquidity risk, and are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Alternative Collateral may be subject to greater price volatility and may be more volatile or less liquid than other types of collateral, increasing the risk that the fund will be unable to recover fully in the event of a counter-party’s default.

Many of the U.S. government securities that the fund invests in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency since September 2008, Fannie Mae (FNMA) and Freddie Mac (FHLMC) maintain only lines of credit with the U.S. Treasury. The Federal Home Loan Banks (FHLB) maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation (FFCB), are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities a fund owns do not extend to the shares of the fund itself.

Credit and Liquidity Enhancements Risk. The fund may invest in securities with credit or liquidity enhancements provided by a bank or other financial institution, and the existence and nature of such enhancements may be a significant factor in the investment adviser’s decision-making process. Generally, these enhancements are employed by the issuers of the securities to reduce credit risk and provide enhanced or back-up liquidity for the purchaser, such as the fund. Adverse developments affecting these banks and financial institutions could therefore have a negative effect on the value of the fund’s holdings. For example, a rating agency downgrade of a credit or liquidity enhancement provider may adversely affect the value of securities held by the fund. Any decline in the value of the securities held by the fund could cause the fund’s share price or yield to fall. To the extent that a portion of the fund’s underlying investments are enhanced by the same bank or financial institution, these risks may be increased.

Schwab Advisor Cash Reserves

Financial Notes (continued)

3. Risk Factors (continued):

economic sanctions or other government restrictions; differing securities market structures; and higher transaction costs. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its objective. The fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect the fund’s yield, and in unusual circumstances potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, the fund’s yield at times could lag those of other money market funds.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase or sell. The market for certain investments may become illiquid due to specific adverse changes in the conditions of a particular issuer or under adverse market or economic conditions independent of the issuer, including, for example, during periods of rising interest rates. In addition, dealer inventories of certain securities—an indication of the ability of dealers to engage in “market making”—are at, or near, historic lows in relation to market size, which could potentially lead to decreased liquidity. The fund’s investments in illiquid securities may reduce the returns of the fund because it may be unable to sell the illiquid securities at an advantageous time or price. Further, transactions in illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Redemption Risk. The fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in the fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the fund, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Risk. The fund is not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund's investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust.

For its advisory and administrative services to the fund, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:

Average Daily Net Assets
First $1 billion	0.35%
More than $1 billion but not exceeding $10 billion	0.32%
More than $10 billion but not exceeding $20 billion	0.30%
More than $20 billion but not exceeding $40 billion	0.27%
Over $40 billion	0.25%

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, Schwab), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund. Schwab serves as the fund's paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab). All shareholder service fees paid by the fund to Schwab in its capacity as the fund's paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees. The Plan also enables the fund to pay Schwab for certain sweep administration services, such as processing of automatic purchases and redemptions it provides to fund shareholders invested in the fund.

Schwab Advisor Cash Reserves

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee of up to 0.25%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab (or, in the case of payments made to Schwab, pursuant to Schwab's written agreement with the fund), and the fund will pay no more than 0.25% of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. Pursuant to the Plan, the fund’s shares are subject to an annual sweep administration fee of up to 0.15%. The sweep administration fee paid to Schwab is based on the average daily net asset value of the fund's shares owned by shareholders holding shares through Schwab. Payments under the Plan are made as described above regardless of Schwab’s or the service provider's actual cost of providing the services. If the cost of providing the services under the Plan is less than the payment received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

Contractual Expense Limitation

CSIM and its affiliates have made an additional agreement with the fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (expense limitation), as follows:

Sweep Shares	0.66%
Premier Sweep Shares	0.59%

In addition, effective January 1, 2015 through December 31, 2015, CSIM and its affiliates agreed to waive an additional amount of the fund's expenses equal to 0.035% of the fund's average daily net assets.

During the period ended December 31, 2015, the fund waived $97,027,778 in expenses of which $32,355,839 was waived in accordance with the contractual expense limitation agreement noted above.

Voluntary Yield Waiver/Reimbursement

CSIM and its affiliates also may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for each share class of the fund. Effective November 9, 2015, the ability of CSIM and its affiliates to recapture from the fund for any fees waived under the voluntary yield waiver has been terminated.

Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds/portfolios. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.

During the period, the fund received a reimbursement payment of $166,939 related to state filing fees resulting from revised calculation methodologies being applied on sales of the fund's shares in prior periods.

During the periods under which the expense was incurred, the fund was operating above its expense limitation and waived fees including these state filing fees. As this amount was previously waived as part of an expense reduction by CSIM and its affiliates, it was reimbursed to the investment adviser. The fund's net expense ratio was not impacted during the periods the expense was incurred or during the current period.

5. Board of Trustees:

At a Special Meeting of Shareholders on December 11, 2015, twelve individuals were elected to serve as trustees of all trusts constituting the Schwab Funds, Laudus Funds and Schwab ETFs effective January 1, 2016. The twelve individuals elected to the Board of Trustees consist of current Schwab Funds and Laudus Funds trustees, current Schwab ETFs trustees and three new nominees. The trustees believe that combining the composition of the Board of Trustees and adding the new nominees will further align oversight of the Schwab Funds, Laudus Funds and Schwab ETFs, among other benefits.

Schwab Advisor Cash Reserves

Financial Notes (continued)

5. Board of Trustees (continued):

The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

Prior to October 8, 2015, the fund had access to a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A., and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The fund paid an annual fee to State Street for the committed line of credit. Effective October 8, 2015, the previous lines of credit were terminated and the fund became a participant with other U.S. registered investment companies managed by CSIM in a joint, syndicated, committed $530 million line of credit (the Credit Facility), with State Street as agent, which matures on October 6, 2016. Under the terms of the Credit Facility, in addition to the interest charged on any borrowings by a fund, the fund pays a commitment fee of 0.125% per annum on its proportionate share of the unused portion of the Credit Facility. There were no borrowings from any of the lines of credit during the period.

The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of December 31, 2015, the fund had no undistributed earnings on a tax basis.

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2015, the fund had capital loss carryforwards of $1,354,220 available to offset future net capital gains before the expiration date of December 31, 2017 and $102,935 with no expiration*.

*	As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss.

For tax purposes, net realized capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended December 31, 2015, the fund had no capital losses deferred and had no capital loss carryforwards utilized.

The tax-basis components of distributions paid during the current and prior fiscal years were as follows:

Current period distributions
Ordinary income	$2,186,948
Prior period distributions
Ordinary income	$2,300,347

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.

Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations. As of December 31, 2015, no such reclassifications were required.

As of December 31, 2015, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended December 31, 2015, the fund did not incur any interest or penalties.

Schwab Advisor Cash Reserves

Financial Notes (continued)

8. Money Market Fund Reform:

On July 23, 2014, the Securities and Exchange Commission (SEC) adopted changes to the rules that govern money market funds. These rule changes create new definitions for Government money market funds and Retail money market funds and require Institutional money market funds to operate with a floating NAV. Retail and Government money market funds will be permitted to continue to transact at a constant NAV. Additionally, non-Government money market funds are required to adopt policies and procedures to allow for a fund’s Board to impose liquidity fees and redemption gates if the fund’s weekly liquid assets fall below the regulatory threshold set by the SEC . The date for compliance with the floating NAV and liquidity fees and redemption gate requirements is no later than October 14, 2016.

Effective April 14, 2016, (i) Each of the Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, and Schwab Treasury Obligations Money Fund intends to qualify as a Government money market fund under the new regulatory definition; and (ii) Schwab Money Market Portfolio will change its name to Schwab Government Money Market Portfolio and intends to qualify as a Government money market fund under the new regulatory definition. These funds will continue to seek to maintain a constant NAV of $1.00 per share and do not plan to adopt a policy to implement liquidity fees or redemption gates. Additionally, each of the Schwab Prime and Municipal Money Market Funds intends to qualify as a Retail money market fund by October 14, 2016, will continue to seek to maintain a constant NAV of $1.00 per share and will be required to comply with the new liquidity fees and redemption gate requirements by no later than October 14, 2016.

9. Subsequent Events:

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Schwab Advisor Cash Reserves

In our opinion, the accompanying statement of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab Advisor Cash Reserves (one of the funds constituting The Charles Schwab Family of Funds, hereafter referred to as the “Fund”) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
February 16, 2016

Shareholder Vote Results (Unaudited)

A Special Meeting of Shareholders of The Charles Schwab Family of Funds (the “Trust”) was held on December 11, 2015, for the purpose of seeking shareholder approval to elect the following individuals as trustees of the Trust: Walter W. Bettinger II, Marie A. Chandoha, Joseph R. Martinetto, Robert W. Burns, John F. Cogan, Stephen T. Kochis, David L. Mahoney, Kiran M. Patel, Kimberly S. Patmore, Charles A. Ruffel, Gerald B. Smith, and Joseph H. Wender. The number of votes necessary to conduct the Special Meeting and approve the proposal was obtained. The results of the shareholder vote are listed below:

Proposal – To elect each of the following individuals as trustees of the Trust:	For	Withheld
Walter W. Bettinger II	114,958,848,042.874	28,369,951,694.105
Marie A. Chandoha	138,293,183,971.888	5,035,615,765.091
Joseph R. Martinetto	138,343,234,171.004	4,985,565,565.975
Robert W. Burns	138,801,166,597.632	4,527,633,139.347
John F. Cogan	135,183,710,424.042	8,145,089,312.937
Stephen T. Kochis	138,674,668,915.137	4,654,130,821.842
David L. Mahoney	138,421,149,206.830	4,907,650,530.149
Kiran M. Patel	138,545,135,567.241	4,783,664,169.738
Kimberly S. Patmore	138,722,452,525.210	4,606,347,211.769
Charles A. Ruffel	138,803,994,873.579	4,524,804,863.400
Gerald B. Smith	138,636,013,914.434	4,692,785,822.545
Joseph H. Wender	138,440,840,243.816	4,887,959,493.163

Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 96 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund's Statement of Additional Information, which is available free by calling 1-800-435-4000.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009;The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.	96	Director, PS Business Parks, Inc. (2005 – 2012).
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – 2015).	96	Director, Gilead Sciences, Inc. (2005 – present)
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – April 2012).	96	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	96	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	96	Director, KLA-Tencor Corporation (2008 – present)

Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Consultant, Patmore Management Consulting (management consulting) (2008 – present).	96	None
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015).	96	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present).	96	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	96	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) Lead Independent Director and Chair of Audit Committee, OUTFRONT Media Inc. (2014 – present)

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation (Oct. 2008 – present); President and Chief Executive Officer (Oct. 2008 – present), Director (May 2008 – present), Charles Schwab & Co., Inc.; Director, Charles Schwab Bank (Apr. 2006 – present); and Director, Schwab Holdings, Inc. (May 2008 – present).	96	Director, The Charles Schwab Corporation (2008 – present)

Interested Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Marie A. Chandoha² 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).	96	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Senior Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (July 2015 – present); Executive Vice President and Chief Financial Officer of The Charles Schwab Corporation and Charles Schwab & Co., Inc. (May 2007 – July 2015); Director, Charles Schwab & Co., Inc. (May 2007 – present); Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director, Executive Vice President and Chief Financial Officer, Schwab Holdings, Inc. (May 2007 – present).	96	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2013)	Treasurer and Chief Financial Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Jan. 2016 – present); Assistant Treasurer, Schwab Funds and Laudus Funds (Dec. 2013 – Dec. 2015), Schwab ETFs (Nov. 2013 – Dec. 2015); Vice President, Charles Schwab Investment Management, Inc. (Oct. 2013 – present); Executive Director, J.P. Morgan Investor Services (Apr. 2011 – Sept. 2013); Assistant Treasurer, Massachusetts Financial Service Investment Management (May 2005 – Mar. 2011).

Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – Dec. 2015); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – Dec. 2015) and Schwab ETFs (Oct. 2009 – Dec. 2015); Director, Charles Schwab Worldwide Funds, plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005; Schwab Strategic Trust since 2009)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Ms. Chandoha, and Mr. Martinetto are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.

asset-backed commercial paper A short-term investment that is typically issued by a bank or other financial institution. The notes represent an interest in financial assets such as trade receivables, credit card receivables, auto receivables, etc. and are generally used for the short-term financing needs of companies.

capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

collateralized mortgage obligation (CMO) A type of security that is collateralized by pools of mortgages backed by government agencies or private issuers (non-agency). The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests, known as tranches. Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates.

commercial paper Promissory notes issued by banks, corporations and other entities to finance short-term credit needs. These securities generally are structured on a discounted basis but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk.

corporate note An unsecured debt security issued by a corporation that is subject to the credit risk of the issuer.

credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly regulate the credit quality of the securities a money market fund can buy.

credit ratings Debt issuers, including corporations, states and municipalities, may arrange with a recognized independent rating organization, such as Standard & Poor’s, Fitch, Inc., Moody’s Investor Service, and DBRS, to rate their creditworthiness and/or the creditworthiness of their debt issues. For example, an issuer may obtain a long-term rating within the investment grade rating category, which is, from high to low, AAA, AA, A and BBB for Standard & Poor’s, Fitch, and DBRS; and Aaa, Aa, A and Baa for Moody’s.

credit risk The risk that a debt issuer may be unable to pay interest or repay principal to its debt holders.

dollar-weighted average maturity See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all interest income is reinvested in additional shares of the fund.

exchange-traded fund (ETF) An investment fund that tracks an index, a commodity or a basket of assets, and trades on an exchange.

expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

illiquid securities Securities are generally considered illiquid if they cannot be disposed of promptly (typically within seven days) and in the ordinary course of business at approximately the amount at which a fund has valued the instruments.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

liquidity-enhanced security The security’s structure includes a liquidity arrangement that requires an entity other than the issuer (such as a large financial institution) to provide funds to pay a tender under most circumstances. Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities for repayment within a specified time period (usually one day or one week) at any time prior to their final maturity.

maturity The date a debt security is scheduled to be “retired” and its principal amount repaid. The Maturity of an investment will generally reflect the security’s final maturity date unless the security’s structure includes a maturity-shortening provision such as an interest rate reset, demand feature or put feature (the “Effective Maturity Date”). For those securities with a maturity-shortening provision, including variable-rate demand securities, the Maturity is determined by using the Effective Maturity Date, as permitted by Rule 2a-7.

municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.

net asset value per share (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding. Certain money funds seek to maintain a steady NAV of $1.00.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

repurchase agreement (also known as a “repo”) The sale of a security combined with a simultaneous agreement to repurchase it at a predetermined date and price.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

Tier 1, Tier 2 Tier 1 is the highest category of credit quality, Tier 2 the second highest. A security’s tier can be established either by an independent rating organization or by a determination of the investment adviser. Money market fund shares and U.S. government securities are automatically considered Tier 1 securities.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

variable rate demand obligations (VRDOs) Securities that have long maturities but which, because of their structure, require them to repay principal plus accrued interest within a specified timeframe (usually one or seven days) upon the demand of the bond holder. Depending on their structure, the repayment may be made by the bond issuer or by a financial institution, such as a highly rated bank.

feature (when the fund is scheduled to receive payment of principal and interest after a demand). Money funds are required to maintain a weighted average life of no more than 120 days. Weighted average life for all Schwab money market funds is available in each fund’s monthly schedule of portfolio holdings at www.schwabfunds.com/prospectus and also available in each fund’s Form N-MFP on the SEC’s website at www.sec.gov 60 days after the end of the month to which the information pertains.

weighted average maturity (WAM) For money market mutual funds as per rule 2a-7, the maturity date or Effective Maturity Date (see definition of maturity) of all the debt securities in its portfolio, or the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand, calculated as a weighted average. As a rule, the longer a fund’s weighted average maturity, the greater its interest rate risk. Money funds are required to maintain a weighted average maturity of no more than 60 days.

yield The income paid out by an investment, expressed as a percentage of the investment’s market value.

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.

How We Collect Information About You

We collect personal information about you in a number of ways.

• APPLICATION AND REGISTRATION
INFORMATION.

We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.

• TRANSACTION AND EXPERIENCE
INFORMATION.

Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.

• WEBSITE USAGE.

When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These

tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:

• to help us process transactions for your account;

• when we use other companies to provide services for us, such as printing and mailing your account statements;

• when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Schwab Funds^® direct investors: 1-800-407-0256

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund™
Schwab Dividend Equity Fund™
Schwab Large-Cap Growth Fund™
Schwab Small-Cap Equity Fund™
Schwab Hedged Equity Fund™
Schwab Financial Services Fund™
Schwab Health Care Fund™
Schwab^® International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund™
Schwab^® S&P 500 Index Fund
Schwab 1000 Index^® Fund
Schwab Small-Cap Index Fund^®
Schwab Total Stock Market Index Fund^®
Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund™
Schwab MarketTrack All Equity Portfolio™
Schwab MarketTrack Growth Portfolio™
Schwab MarketTrack Balanced Portfolio™
Schwab MarketTrack Conservative Portfolio™
Schwab Target 2010 Fund
Schwab Target 2015 Fund
Schwab Target 2020 Fund
Schwab Target 2025 Fund
Schwab Target 2030 Fund
Schwab Target 2035 Fund
Schwab Target 2040 Fund
Schwab Target 2045 Fund
Schwab Target 2050 Fund
Schwab Target 2055 Fund
Schwab^® Monthly Income Fund – Moderate Payout
Schwab^® Monthly Income Fund – Enhanced Payout
Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund™
Schwab Intermediate-Term Bond Fund™
Schwab Total Bond Market Fund™
Schwab GNMA Fund™
Schwab^® Treasury Inflation Protected Securities Index Fund
Schwab Tax-Free Bond Fund™
Schwab California Tax-Free Bond Fund™

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹	Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although many seek to preserve the value of your investment at $1 per share, it is possible to lose money.

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the fund covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we aim to make investing straightforward for our investors. Our goal is to provide foundational products with consistent performance that enable investors to build diversified portfolios. The Schwab California Municipal Money Fund (the Fund) is designed to complement those foundational holdings in a diversified portfolio.

The Fund is constructed to offer stability of capital and liquidity, as well as income exempt from federal and California state income tax. The Fund invests in short-term municipal money market securities issued by the State of California and municipal agencies and is also actively managed, benefiting from extensive credit research and professional money management.

Yields on municipal money market securities remained very low in 2015 for several reasons. One reason was that interest rates remained historically low for much of the year. It was only in December of 2015 that the Federal Reserve (the Fed) ended months of speculation by raising short-term interest rates. It was the first Fed rate hike in nine years, and the central bank assured investors that any subsequent increases would be measured and gradual. Another reason was that there has been little increase in the supply of municipal securities, continuing a multi-year trend of contracted supply. An improving economy and strong tax receipts early in the year reduced the need for many municipalities to issue short-term debt. As a result of limited supply, demand for these tax-exempt securities was high and that bid up prices and kept yields low.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about the Fund, please continue reading this report. You can also find further details about this fund by visiting our website at www.csimfunds.com, which now includes six months of daily historical data on fund liquidity, NAV, and asset flows. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

It was the first Fed rate hike in nine years, and the central bank assured investors that any subsequent increases would be measured and gradual.

Schwab California Municipal Money Fund1

Fund Management

Kenneth Salinger, CFA, Vice President and Head of Tax-Exempt Strategies, leads the portfolio management team for Schwab’s national and state-specific tax-free bond funds and municipal money market funds. He also has overall responsibility for all aspects of the management of each of the tax-free bond funds. Prior to joining CSIM in 2008, Mr. Salinger was a senior portfolio manager at Wells Capital Management, working on a team that managed municipal bond assets. He worked at American Century Investments from 1992 to 2006, where he was a vice president and senior portfolio manager, responsible for daily management of a number of national and state specific municipal bond funds. Mr. Salinger has worked in fixed-income asset management since 1994.

Kevin Shaughnessy, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining CSIM in 2000, Mr. Shaughnessy spent four years as a portfolio manager at Wells Capital Management, where he was responsible for managing the firm’s California municipal money fund assets, as well as short duration private client assets.

Cameron Ullyatt, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining CSIM in 2008, Mr. Ullyatt was a vice president and portfolio manager at Oppenheimer Funds, where he was responsible for managing the firm’s municipal money fund assets. From 1999 to 2006, Mr. Ullyatt also worked as a credit analyst in Oppenheimer Funds’ municipal bond and money market departments.

2Schwab California Municipal Money Fund

State Investment Environment

California’s financial position has improved with the state’s economic rebound and higher tax revenues have been directed toward repayment of accumulated recession-era liabilities and building a rainy day fund.

California’s budget for fiscal 2016 (7/1/15-6/30/16) was balanced on strong revenue growth, especially income taxes derived from capital gains. The plan largely reflected the Governor’s on-going financial priorities, with much of the growth in revenues directed to paying down accumulated recession-era liabilities and other one-time spending. The budget also provided California’s school districts with $7.6 billion of additional appropriations in compliance with Proposition 98's minimum requirements.

Through December 2015, the state had collected about $1.1 billion more in revenues than had been projected. Personal income taxes collections were 3.9% above projections but were somewhat offset by sales and use taxes which were 2.1% below the forecast. Recently updated projections for fiscal 2016 anticipate general fund revenues to exceed the budget by about $3.5 billion, or 3.0%. The state expects to end fiscal 2016 with $9.6 billion in reserves, which is equal to 8.3% of annual spending.

On January 7, 2016, Governor Brown introduced his spending plan for fiscal 2017. The budget projects general fund revenues of $120.6 billion and expenditures totaling $122.6 billion, including a $3.6 billion addition to the budget stabilization account. This proposal is designed to position the state for the next economic recession, with much of the still strong revenue growth set aside for reserves and one-time spending. The budget also boosts spending on K-12 and community college education by $5.4 billion and for the University of California and California State University by $250 million. If the budget is adopted as proposed, the state projects ending fiscal 2017 with $11.2 billion of reserves, including $8.0 billion in the budget stabilization account, or 9.1% of annual spending.

As in other states, many of California’s cities, counties, school districts, as well as water and sewer systems, public and private universities, and non-profit health systems issue bonds. Though the current outlook for state funding is improved, California’s earlier budget cuts have had varying impacts on the credit quality of these issuers. Although California school districts and community college districts receive over 55% of their total funding from the state, their general obligation bonds are secured by dedicated local property tax levies and are not paid from state funds. The state projects that statewide assessed property values will grow by 5.6% for fiscal 2017, but the rate of growth varies significantly by district and some areas that experienced the most development just prior to the recession have not yet returned to their pre-recession levels.

Counties continue to rebuild their financial positions from growth in their property tax bases and other revenue streams and that growth has allowed them to restore some services that were cut in response to prior cuts in state aid. The outlook for many of California’s cities has improved, with stronger growth in sales and business taxes. However, they continue to face cost pressures especially in the areas of pensions and healthcare benefits. The City of Stockton formally exited bankruptcy protection in February 2015, while the City of San Bernardino continues to work toward a reorganization plan. Stockton and San Bernardino were both centers for the recent housing market boom and bust.

California’s essential service enterprises and healthcare providers, such as the Metropolitan Water District of Southern California, the East Bay Municipal Utility District, the Bay Area Toll Authority and Kaiser Permanente, have been generally insulated from the state’s earlier financial difficulties as they pay off their bonds with revenues received from the services they provide to customers. California has endured four consecutive years of drought. While the economic impact of the drought has primarily affected the state’s agricultural sector, which accounts for about 2.1% of the state’s gross domestic product, the state’s largest water agencies have responded through conservation measures, rate adjustments and draws on stored supply.

California’s economy has significantly rebounded from the recent recession and is growing at a moderate pace. The state gained 417,100 jobs from November 2014 to November 2015, a 2.6% increase, continuing on from the 461,800 jobs gained in calendar year 2014. California’s unemployment rate declined to 5.7% in November 2015, down from 7.2% in November 2014. It was tied with Illinois for the tenth highest rate in the country and above the national average of 5.0%.

With its diversified and recovering economy and finances, California’s credit quality has been on an upward trend after years of managing structural budget imbalances. At the end of the report period, the state’s general obligation ratings were Aa3 from Moody’s Investors Service, AA- from Standard & Poor’s Ratings Services, and A+ from Fitch Ratings, all with stable outlooks. S&P upgraded its rating from A+ in July 2015.

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

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

Schwab California Municipal Money Fund3

Schwab California Municipal Money Fund

The Schwab California Municipal Money Fund (the fund) seeks the highest current income that is consistent with stability of capital and liquidity, and is exempt from federal and California personal income tax. To pursue its goal, the fund invests in municipal (muni) money market securities from California issuers and muni agencies, as well as from U.S. territories and possessions. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

The fund’s investment adviser and its affiliates voluntarily waived certain fees or expenses for the 12 months ended December 31, 2015, to help the fund maintain a positive net yield. For more information about the fund’s yield and other important characteristics, please review the charts and footnotes that follow this discussion.

Market Highlights. During the 12-month reporting period ended December 31, 2015, securities typically held by muni money market funds experienced steady demand, while supply remained extremely limited. Anticipation of a potential rate increase by the Federal Reserve (the Fed) caused increased market volatility, and resulted in a steeper-than-normal yield curve. Heavy demand at the front of the curve kept rates low, while light demand in the one-year space allowed yields to rise. The Fed ended speculation at its December meeting and raised its target federal-funds rate to a range of 0.25% and 0.50%, a decision that demonstrated confidence in the economic recovery. Meanwhile, many municipalities issued less short-term debt over the reporting period. Rising tax revenues and improving overall credit conditions helped to increase cash flows, lessening the need for additional funding. These conditions were especially noticeable in California, where the state announced in June that it was not planning to issue Revenue Anticipation Notes this year. The absence of these notes eliminated a large portion of eligible new issue muni money market securities, and further exacerbated the already limited supply.

Reflecting this environment, the Securities Industry and Financial Markets Association Municipal Swap Index—a widely used benchmark for yields on floating-rate muni securities—ranged between approximately 0.01% and 0.11%, finishing the period at the bottom of this range.

Performance, Positioning, and Strategies. The investment adviser continued to focus on safety and high credit quality, while maintaining a longer weighted average maturity (WAM) than many of the fund’s peers for the reporting period for most of the year. As in previous years, the fund’s WAM generally declined from the beginning of the year through May, decreasing from approximately 46 to 22 days. As muni securities became available in June during the typical “note season,” the fund’s WAM was extended to 45 days as some of these securities were added to the portfolio. As supply waned again toward the end of the year, the fund’s WAM ended the reporting period at 31 days, intentionally shortening during the last quarter in anticipation of the Fed’s December rate hike. With supply remaining limited over the reporting period, the fund also ended the year with a higher-than-average cash balance.

As of 12/31/15:

Portfolio Composition By Maturity¹
% of investments
1-7 Days	70.6%
8-30 Days	5.4%
31-60 Days	8.7%
61-90 Days	3.4%
91-180 Days	3.4%
More than 180 Days	8.5%
Total	100.0%

Statistics
Weighted Average Maturity²	31 Days
Credit Quality Of Holdings³ % of portfolio	99% Tier 1
Credit Enhanced Securities % of portfolio	51%

Portfolio Composition by Security Type⁴
% of investments
Variable Rate Demand Obligations	36.9%
Commercial Paper	23.2%
Tender Option Bonds	22.1%
Fixed Rate Notes	10.6%
Put Bonds	4.5%
Variable Rate Demand Preferred Shares	2.7%
Total	100.0%

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

¹	As shown in the Portfolio Holdings section of the shareholder report.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	Tier 1 securities are rated in the highest short-term rating category by two nationally recognized statistical rating organizations (NRSROs), or by one if only one NRSRO has rated the securities, or, if unrated, determined to be of comparable quality by CSIM pursuant to guidelines adopted by the Board of Trustees. Money market fund shares and U.S. government securities are also Tier 1 securities. The fund uses NRSRO credit ratings from Standard & Poor’s Corp., Moody’s Investors Service, Fitch Ratings, and/or DBRS. The fund may use different ratings provided by other rating agencies for purposes of determining compliance with the fund’s investment policies. The fund itself has not been rated by an independent credit rating agency.
⁴	Portfolio Composition is calculated using the Par Value of Investments and excludes cash.

4Schwab California Municipal Money Fund

Performance and Fund Facts as of 12/31/15

Seven-Day Average Yield Trend for previous 12 months*

Seven-Day Yields

	Schwab California Municipal Money Fund
	Sweep Shares	Value Advantage Shares^®
Ticker Symbol	SWCXX	SWKXX
Minimum Initial Investment¹	**	$25,000 ²
Seven-Day Yield³	0.01%	0.01%
Seven-Day Yield–Without Contractual Expense Limitation⁴	-0.08%	-0.10%
Seven-Day Effective Yield³	0.01%	0.01%
Seven-Day Taxable Equivalent Effective Yield^3,5	0.02%	0.02%

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

*	The seven-day average yield for the Sweep Shares and Value Advantage Shares was 0.01% throughout the entire period.
**	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Please see prospectus for further detail and eligibility requirements.
²	Minimum initial investment for IRA and custodial accounts is $15,000. Municipal money funds are generally not appropriate investments for IRAs and other tax-deferred accounts. Please consult with your tax advisor about your situation.
³	Yield reflects the effect of the fund’s agreement with the investment adviser and its affiliates to limit each share class’ total annual operating expenses to certain levels (contractual expense limitation). In addition, the investment adviser and its affiliates have voluntarily waived expenses in excess of the contractual expense limitation to maintain a positive net yield for certain share classes of the fund (voluntary yield waiver). Without the contractual expense limitation and the voluntary yield waiver, the fund’s yield would have been lower. For additional details, see financial note 5.
⁴	Yield does not reflect the effect of the contractual expense limitation, but does reflect the effect of the voluntary yield waiver. The voluntary yield waiver added 0.54% and 0.39% to the seven-day yields of the Sweep Shares and Value Advantage Shares, respectively.
⁵	Taxable equivalent effective yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective California state personal income tax rate of 6.96%. Your tax rate may be different.

Schwab California Municipal Money Fund5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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

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

	Expense Ratio¹ (Annualized)	Beginning Account Value at 7/1/15	Ending Account Value (Net of Expenses) at 12/31/15	Expenses Paid During Period² 7/1/15–12/31/15
Schwab California Municipal Money Fund
Sweep Shares
Actual Return	0.06%	$1,000.00	$ 1,000.20	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.90	$ 0.31
Value Advantage Shares
Actual Return	0.06%	$1,000.00	$ 1,000.20	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.90	$ 0.31

¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

6Schwab California Municipal Money Fund

Schwab California Municipal Money Fund

Financial Statements

Financial Highlights

Sweep Shares	1/1/15– 12/31/15	1/1/14– 12/31/14	1/1/13– 12/31/13	1/1/12– 12/31/12	1/1/11– 12/31/11
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.00 ¹^,²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Total distributions	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.03%	0.01%	0.01%	0.02%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.07% ³	0.08% ³	0.13% ³	0.19% ³	0.25% ³
Gross operating expenses	0.69%	0.69%	0.69%	0.69%	0.69%
Net investment income (loss)	0.01%	0.01%	0.01%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$6,472	$6,439	$6,081	$6,137	$5,641

Value Advantage Shares	1/1/15– 12/31/15	1/1/14– 12/31/14	1/1/13– 12/31/13	1/1/12– 12/31/12	1/1/11– 12/31/11
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.00 ¹^,²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Total distributions	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.03%	0.01%	0.01%	0.02%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.07% ³	0.08% ³	0.13% ³	0.19% ³	0.26% ³
Gross operating expenses	0.56%	0.56%	0.56%	0.56%	0.56%
Net investment income (loss)	0.01%	0.01%	0.01%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$678	$771	$751	$853	$1,071

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 5)

See financial notes 7

Schwab California Municipal Money Fund

Portfolio Holdings as of December 31, 2015

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

Holdings by Category		Cost ($)	Value ($)
31.4%	Fixed-Rate Securities	2,243,841,372	2,243,841,372
64.4%	Variable-Rate Securities	4,605,661,156	4,605,661,156
95.8%	Total Investments	6,849,502,528	6,849,502,528
4.2%	Other Assets and Liabilities, Net		300,951,858
100.0%	Net Assets		7,150,454,386

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Securities 31.4% of net assets
California 31.4%
BAY AREA TOLL AUTHORITY
REV TRANSPORTATION SERIES 2006F (ESCROW)		5.00%		04/01/16	10,000,000	10,119,134
CALIFORNIA HEALTH FACS FING AUTH
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2006 E		0.07%		02/23/16	24,000,000	24,000,000
REV HOSPITAL (EL CAMINO HOSPITAL) SERIES 2015A		2.00%		02/01/16	5,425,000	5,433,023
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2014A		3.00%		10/01/16	490,000	499,519
REV HOSPITAL (SUTTER HEALTH) SERIES 2011B		5.00%		08/15/16	105,000	107,998
CALIFORNIA SCH CASH RESERVE PROG AUTH
REV SCHOOL TAX & REV ANTICIPATION NOTE SERIES 2015-16A		2.00%		06/30/16	13,325,000	13,435,255
REV SCHOOL TAX & REV ANTICIPATION NOTE SERIES 2015-16B		2.00%		06/30/16	2,745,000	2,767,713
CALIFORNIA ST
GO		6.00%		02/01/16	220,000	221,070
GO		5.00%		03/01/16	4,620,000	4,655,612
GO		4.25%		04/01/16	100,000	100,962
GO		5.00%		04/01/16	250,000	252,946
GO		1.00%		05/01/16	795,000	796,915
GO		5.00%		06/01/16	250,000	254,761
GO		2.00%		08/01/16	18,530,000	18,722,851
GO		3.00%		08/01/16	28,135,000	28,573,602
GO		5.00%		08/01/16	670,000	688,146
GO		5.00%		09/01/16	5,735,000	5,917,564
GO SERIES 1		5.00%		09/01/16	7,435,000	7,671,876
GO SERIES 2002		6.00%		02/01/16	930,000	934,481
GO SERIES 2002		6.00%		04/01/16	205,000	207,851

8 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
GO SERIES 2005 2		5.00%		03/01/16	1,200,000	1,209,191
GO SERIES 2010		4.00%		11/01/16	150,000	154,411
GO SERIES 2011 A		3.00%		09/01/16	1,000,000	1,018,134
GO SERIES 2011A-2 (LOC: ROYAL BANK OF CANADA)		0.04%		01/05/16	45,000,000	45,000,000
GO SERIES 2011A-2 (LOC: ROYAL BANK OF CANADA)		0.03%		01/12/16	22,165,000	22,165,000
GO SERIES 2011A-2 (LOC: ROYAL BANK OF CANADA)		0.04%		01/12/16	6,750,000	6,750,000
GO SERIES 2011A-2 (LOC: ROYAL BANK OF CANADA)		0.05%		01/12/16	17,940,000	17,940,000
GO SERIES 2012		2.00%		02/01/16	200,000	200,269
GO SERIES 2012		4.00%		02/01/16	1,875,000	1,880,922
GO SERIES 2012		5.00%		02/01/16	7,710,000	7,741,178
GO SERIES 2012		3.00%		04/01/16	1,390,000	1,399,335
GO SERIES 2012		5.00%		04/01/16	2,100,000	2,125,049
GO SERIES A		5.00%		04/01/16	1,530,000	1,548,011
GO SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.02%		01/04/16	25,000,000	25,000,000
GO SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.03%		01/08/16	22,500,000	22,500,000
GO SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.05%		01/29/16	3,450,000	3,450,000
GO SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.08%		02/11/16	30,000,000	30,000,000
GO SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.08%		03/08/16	16,000,000	16,000,000
GO SERIES A-7 (LOC: MIZUHO BANK LTD)		0.04%		01/05/16	19,000,000	19,000,000
CALIFORNIA ST DEPT WTR RES
REV POWER (CALIFORNIA ST DEPT WTR RES PWR SUPPLY REV) SERIES 2005G-4		4.75%		05/01/16	105,000	106,524
REV POWER (CALIFORNIA ST DEPT WTR RES PWR SUPPLY REV) SERIES 2010 L		5.00%		05/01/16	6,330,000	6,430,672
REV POWER (CALIFORNIA ST DEPT WTR RES PWR SUPPLY REV) SERIES 2010M		4.00%		05/01/16	8,855,000	8,965,214
CALIFORNIA ST DEPT WTR RES PWR SUPPLY REV
REV POWER SERIES 2005G-4		5.00%		05/01/16	6,070,000	6,165,123
REV POWER SERIES 2010M		5.00%		05/01/16	5,665,000	5,753,672
CALIFORNIA STATE PUB WKS BRD
REV (CALIFORNIA ST) SERIES 2011A		4.00%		10/01/16	2,000,000	2,054,800
CALIFORNIA STATEWIDE CMNTYS DEV AUTH
(KAISER PERMANENTE) SERIES 2004I		0.05%		02/02/16	7,000,000	7,000,000
(KAISER PERMANENTE) SERIES 2004I		0.22%		05/02/16	6,000,000	6,000,000
GO (KAISER PERMANENTE) SERIES 2008 B		0.20%		04/01/16	1,000,000	1,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004 E		0.22%		02/04/16	18,300,000	18,300,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004 E		0.22%		02/05/16	11,800,000	11,800,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004 E		0.23%		02/16/16	24,000,000	24,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004 I		0.24%		03/03/16	6,000,000	6,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004I		0.21%		02/03/16	10,000,000	10,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004K		0.26%		06/01/16	20,000,000	20,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2004K		0.28%		06/03/16	10,400,000	10,400,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2006D		0.28%		06/03/16	26,500,000	26,500,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2008 B		0.23%		01/06/16	9,000,000	9,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2008 B		0.22%		05/02/16	47,000,000	47,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2008B		0.20%		04/01/16	3,000,000	3,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2008C		0.23%		03/03/16	16,500,000	16,500,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2008C		0.24%		03/14/16	3,500,000	3,500,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2009 B-3		0.23%		01/07/16	3,500,000	3,500,000

See financial notes 9

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2009 B-3		0.24%		03/02/16	9,000,000	9,000,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2009 B-5		0.23%		01/05/16	2,500,000	2,500,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2009 B-6		0.22%		02/02/16	3,750,000	3,750,000
REV HEALTHCARE (KAISER PERMANENTE) SERIES 2009 B-6		0.22%		02/08/16	14,000,000	14,000,000
REV HEALTHCARE (SUTTER HEALTH) SERIES 2011A		5.00%		08/15/16	3,650,000	3,757,431
REV MULTI FAM HOUSING (PILGRIM TERRACE AFFORDABLE LP) SERIES 2015B (ESCROW)		0.30%		05/01/16	11,250,000	11,250,000
CONTRA COSTA WATER DISTRICT
REV WATER & SEWER SERIES B		4.00%		10/01/16	4,750,000	4,883,358
EAST BAY MUNICIPAL UTILITY DISTRICT WASTEWATER SYSTEM
REV WATER & SEWER SERIES 2014A		3.00%		06/01/16	100,000	101,094
EAST BAY MUNICIPAL UTILITY DISTRICT WATER SYSTEM REVENUE
REV WATER & SEWER SERIES 2013 A		5.00%		06/01/16	1,255,000	1,278,821
REV WATER & SEWER SERIES A-1 (LIQ: SUMITOMO MITSUI BANKING CORPORATION)		0.03%		01/19/16	25,000,000	25,000,000
REV WATER & SEWER SERIES A-1 (LIQ: SUMITOMO MITSUI BANKING CORPORATION)		0.07%		03/08/16	28,000,000	28,000,000
REV WATER & SEWER SERIES A-2 (LIQ: BANK OF AMERICA NA)		0.01%		01/05/16	20,000,000	20,000,000
REV WATER & SEWER SERIES A-2 (LIQ: BANK OF AMERICA NA)		0.04%		02/04/16	38,000,000	38,000,000
GOLDEN GATE BRDG & HWY DIST CALIF
REV TRANSPORTATION SERIES A		0.10%		02/04/16	30,500,000	30,500,000
KERN CNTY CALIF
REV COUNTY TAX & REV ANTICIPATION NOTE SERIES 2015-16		7.00%		06/30/16	25,000,000	25,824,715
LONG BEACH CALIF
REV TRANSPORTATION (LONG BEACH HARBOR DEPT PORT OF LONG BEACH) SERIES 1998A		6.00%		05/15/16	8,430,000	8,607,972
LOS ALTOS CALIF SCH DIST
REV SCHOOL TAX & REV ANTICIPATION NOTE SERIES 2015		2.00%		06/30/16	10,000,000	10,084,935
LOS ANGELES CA DEPARTMENT OF AIRPORTS
REV TRANSPORTATION SERIES 2008A		5.50%		05/15/16	455,000	463,634
REV TRANSPORTATION SERIES 2009E		4.50%		05/15/16	1,250,000	1,269,996
REV TRANSPORTATION SERIES 2010D		5.00%		05/15/16	205,000	208,449
REV TRANSPORTATION SERIES 2012A		4.00%		05/15/16	3,950,000	4,004,332
LOS ANGELES CALIF
GO SERIES 2012 A		5.00%		09/01/16	1,000,000	1,031,683
REV WASTE/POLLUTION (LOS ANGELES SOLID WASTE SYSTEM) SERIES 2013 B		5.00%		02/01/16	11,500,000	11,545,517
TAX & REV ANTICIPATION NOTE SERIES 2015		2.00%		06/30/16	75,400,000	76,025,634
LOS ANGELES CALIF CMNTY COLLEGE DIST
GO SERIES 2006E (ESCROW)		5.00%		08/01/16	2,715,000	2,789,822
LOS ANGELES CALIF DEPT PWR
GO SERIES POWER (LIQ: WELLS FARGO BANK NA)		0.08%		01/07/16	34,000,000	34,000,000
GO SERIES POWER (LIQ: WELLS FARGO BANK NA)		0.06%		02/04/16	61,000,000	61,000,000
REV POWER SERIES 2007A1		5.00%		07/01/16	1,500,000	1,535,289
LOS ANGELES CALIF HBR DEPT
REV TRANSPORTATION SERIES 2006B		5.00%		08/01/16	2,090,000	2,146,007
REV TRANSPORTATION SERIES 2011A		5.00%		08/01/16	2,000,000	2,054,066

10 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
LOS ANGELES CALIF MUN IMPT CORP
(LOS ANGELES CALIF) SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.05%		01/20/16	6,878,000	6,878,000
(LOS ANGELES CALIF) SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.07%		02/09/16	10,000,000	10,000,000
(LOS ANGELES CALIF) SERIES A-2 (LOC: JPMORGAN CHASE BANK NA)		0.08%		03/09/16	37,750,000	37,750,000
REV LEASE REV (LOS ANGELES CALIF) SERIES A-2 (LOC: JPMORGAN CHASE BANK NA)		0.05%		01/19/16	5,000,000	5,000,000
REV LEASE REV (LOS ANGELES CALIF) SERIES A-2 (LOC: JPMORGAN CHASE BANK NA)		0.04%		02/04/16	10,000,000	10,000,000
REV LEASE REV (LOS ANGELES CALIF) SERIES A-2 (LOC: JPMORGAN CHASE BANK NA)		0.09%		02/16/16	10,000,000	10,000,000
REV LEASE REV (LOS ANGELES CALIF) SERIES A-3 (LOC: BANK OF THE WEST)		0.05%		01/21/16	3,000,000	3,000,000
REV LEASE REV (LOS ANGELES CALIF) SERIES A1 (LOC: WELLS FARGO BANK NA)		0.07%		02/10/16	10,000,000	10,000,000
LOS ANGELES CALIF UNI SCH DIST
GO SERIES 2006B		5.00%		07/01/16	2,270,000	2,322,461
GO SERIES 2006C		5.00%		07/01/16	100,000	102,322
GO SERIES 2010KY		5.00%		07/01/16	125,000	127,780
GO SERIES A1		4.00%		07/01/16	4,640,000	4,725,727
GO SERIES MEASURE		5.00%		07/01/16	800,000	818,800
LOS ANGELES CNTY CALIF
REV COUNTY TAX & REV ANTICIPATION NOTE SERIES 2015-16		5.00%		06/30/16	119,025,000	121,789,708
LOS ANGELES CNTY CALIF CAP ASSET LEASG CORP
(LOS ANGELES CNTY CALIF) SERIES A (LOC: JPMORGAN CHASE BANK NA)		0.04%		02/19/16	24,000,000	24,000,000
(LOS ANGELES CNTY CALIF) SERIES A (LOC: JPMORGAN CHASE BANK NA)		0.06%		03/10/16	3,000,000	3,000,000
(LOS ANGELES CNTY CALIF) SERIES A (LOC: JPMORGAN CHASE BANK NA)		0.07%		03/10/16	39,240,000	39,240,000
(LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.03%		01/04/16	22,600,000	22,600,000
(LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.04%		01/08/16	18,400,000	18,400,000
(LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.04%		01/12/16	30,960,000	30,960,000
(LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.08%		03/01/16	43,000,000	43,000,000
GO (LOS ANGELES CNTY CALIF) SERIES A (LOC: JPMORGAN CHASE BANK NA)		0.09%		02/19/16	5,400,000	5,400,000
GO (LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.04%		01/04/16	1,875,000	1,875,000
GO (LOS ANGELES CNTY CALIF) SERIES C (LOC: WELLS FARGO BANK NA)		0.04%		01/13/16	8,000,000	8,000,000
LOS ANGELES CNTY CALIF MET TRANSN AUTH
REV SALES TAX (LOS ANGELES CNTY CALIF MET TRANSN AUTH PROP C) SERIES 2013-A		5.00%		07/01/16	11,275,000	11,545,662
REV SALES TAX (LOS ANGELES CNTY CALIF MET TRANSN AUTH PROP C) SERIES 2013-B		5.00%		07/01/16	2,300,000	2,354,762
METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
REV WATER & SEWER SERIES 2009 D		3.00%		07/01/16	250,000	253,301
REV WATER & SEWER SERIES 2011 B		4.00%		07/01/16	1,385,000	1,410,137

See financial notes 11

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
ORANGE CNTY CALIF FIRE AUTH
REV PUBLIC SERVICES TAX & REV ANTICIPATION NOTE SERIES 2015-16		2.00%		06/30/16	29,260,000	29,505,215
ORANGE COUNTY WATER DISTRICT
REV WATER & SEWER SERIES A (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.03%		01/14/16	12,613,000	12,613,000
RIVERSIDE CNTY CALIF
REV COUNTY TAX & REV ANTICIPATION NOTE SERIES 2015-201		2.00%		06/30/16	50,000,000	50,421,507
SACRAMENTO CALIF MUN UTIL DIST
REV POWER SERIES 2013C		5.00%		08/15/16	5,025,000	5,173,841
REV UTILITY SERIES K-1 (LOC: STATE STREET BANK AND TRUST COMPANY)		0.04%		02/03/16	30,000,000	30,000,000
SERIES L-1 (LOC: BARCLAYS BANK PLC)		0.04%		01/05/16	10,000,000	10,000,000
SERIES L-1 (LOC: BARCLAYS BANK PLC)		0.03%		01/07/16	40,000,000	40,000,000
SERIES L-1 (LOC: BARCLAYS BANK PLC)		0.04%		01/12/16	20,000,000	20,000,000
SAN DIEGO CALIF CMNTY COLLEGE DIST
GO SERIES 2012		4.00%		08/01/16	300,000	306,310
SAN DIEGO CALIF UNI SCH DIST
REV SCHOOL TAX & REV ANTICIPATION NOTE SERIES 2015-16A		2.00%		06/30/16	15,000,000	15,127,774
SAN DIEGO CNTY & SCH DIST
REV SCHOOL TAX & REV ANTICIPATION NOTE SERIES 2015		2.00%		06/30/16	15,000,000	15,131,261
SAN DIEGO CNTY CALIF WTR AUTH
REV UTILITY SERIES 7 (LIQ: JPMORGAN CHASE BANK NA)		0.05%		01/13/16	10,000,000	10,000,000
REV UTILITY SERIES 7 (LIQ: JPMORGAN CHASE BANK NA)		0.05%		01/14/16	6,250,000	6,250,000
REV WATER & SEWER SERIES 2011 S1		3.00%		07/01/16	250,000	252,975
REV WATER & SEWER SERIES 5 (LIQ: WELLS FARGO BANK NA)		0.05%		01/07/16	16,000,000	16,000,000
REV WATER & SEWER SERIES 5 (LIQ: WELLS FARGO BANK NA)		0.04%		01/15/16	20,900,000	20,900,000
REV WATER & SEWER SERIES 5 (LIQ: WELLS FARGO BANK NA)		0.06%		02/03/16	21,100,000	21,100,000
REV WATER & SEWER SERIES 7 (LIQ: JPMORGAN CHASE BANK NA)		0.05%		01/06/16	6,250,000	6,250,000
REV WATER & SEWER SERIES 7 (LIQ: JPMORGAN CHASE BANK NA)		0.04%		01/15/16	25,000,000	25,000,000
REV WATER & SEWER SERIES 7 (LIQ: JPMORGAN CHASE BANK NA)		0.06%		02/03/16	27,500,000	27,500,000
REV WATER & SEWER SERIES 8 (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.04%		01/13/16	5,000,000	5,000,000
REV WATER & SEWER SERIES 8 (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.04%		01/15/16	12,050,000	12,050,000
REV WATER & SEWER SERIES 8 (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.06%		02/03/16	9,500,000	9,500,000
SERIES 8 (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.04%		02/02/16	5,000,000	5,000,000
SERIES 8 (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.05%		02/09/16	5,000,000	5,000,000
SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION
REV SALES TAX SERIES 2012 A		5.00%		04/01/16	1,575,000	1,593,415
SAN FRANCISCO CALIF CITY & CNTY
GO SERIES 2011R1		5.00%		06/15/16	1,925,000	1,966,238
GO SERIES 2015B		2.00%		06/15/16	10,000,000	10,077,237
REV CITY SERIES 2013C		4.00%		03/01/16	1,020,000	1,026,033
REV COP SERIES 2015-R1		5.00%		09/01/16	2,305,000	2,378,096

12 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SAN FRANCISCO CALIF CITY & CNTY ARPTS COMMN
REV TRANSPORTATION SERIES A&B&C-3 (LOC: ROYAL BANK OF CANADA)		0.08%		02/16/16	33,350,000	33,350,000
REV TRANSPORTATION SERIES B-4 (LOC: WELLS FARGO BANK NA)		0.05%		02/03/16	20,000,000	20,000,000
REV TRANSPORTATION SERIES B-4 (LOC: WELLS FARGO BANK NA)		0.10%		02/23/16	10,000,000	10,000,000
SAN FRANCISCO CALIF CITY & CNTY PUB UTILS COMMN
REV CITY (SAN FRANCISCO CALIF CITY & CNTY PUB UTILS COMMN WTR REV) SERIES 2006A (ESCROW)		4.75%		05/01/16	1,215,000	1,232,857
SAN FRANCISCO CALIF CITY & CNTY PUB UTILS COMMN WSTEWTR REV
REV WATER & SEWER SERIES 2013A		3.00%		10/01/16	4,650,000	4,744,850
SERIES 2015 A-3 (LOC: BANK OF AMERICA NA)		0.05%		01/27/16	6,400,000	6,400,000
SERIES A-1 (LOC: WELLS FARGO BANK NA)		0.05%		01/27/16	12,500,000	12,500,000
SAN FRANCISCO CALIF UNIFIED SCHOOL DIST
GO TAX & REV ANTICIPATION NOTE SERIES 2015		5.00%		08/31/16	41,000,000	42,308,613
SAN JOSE CALIF REDEV AGY TAX ALLOCATION
GO SERIES 1996 A (LOC: JPMORGAN CHASE BANK NA)		0.17%		02/16/16	13,770,000	13,770,000
GO SERIES 2003-B (LOC: JPMORGAN CHASE BANK NA)		0.17%		02/16/16	7,500,000	7,500,000
SANTA CLARA VY CALIF WTR DIST
REV WATER & SEWER SERIES A (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.05%		02/04/16	5,660,000	5,660,000
REV WATER & SEWER SERIES A (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.06%		02/04/16	13,200,000	13,200,000
SANTA MONICA-MALIBU UNI SCH DIST CALIF
GO SERIES 2012B		2.00%		07/01/16	3,860,000	3,892,335
SEQUOIA CALIF UN HIGH SCH DIST
GO SERIES 2014		2.00%		07/01/16	3,065,000	3,092,295
TURLOCK IRRIGATION DISTRICT
SERIES A (LOC: BANK OF AMERICA NA)		0.05%		01/14/16	49,995,000	49,995,000
UNIVERSITY OF CALIFORNIA
REV HEALTHCARE (UNIVERSITY OF CALIF MEDICAL CENTER) SERIES 2013J		3.00%		05/15/16	200,000	201,871
REV UNIVERSITY SERIES 2007D		5.00%		05/15/16	460,000	467,856
REV UNIVERSITY SERIES 2007D (ESCROW)		5.00%		05/15/16	22,055,000	22,652,012
REV UNIVERSITY SERIES 2008L (ESCROW)		5.00%		05/15/16	8,000,000	8,217,546
REV UNIVERSITY SERIES 2009 O		5.00%		05/15/16	820,000	834,269
REV UNIVERSITY SERIES 2009P		4.00%		05/15/16	350,000	354,534
REV UNIVERSITY SERIES 2013 AF		3.00%		05/15/16	100,000	100,974
REV UNIVERSITY SERIES 2013 AF		5.00%		05/15/16	1,145,000	1,165,056
VENTURA CNTY CALIF
REV COUNTY TAX & REV ANTICIPATION NOTE SERIES 2015-16		2.00%		07/01/16	51,000,000	51,436,203
VENTURA CNTY CALIF PUB FING AUTH
REV LEASE REV (LOC: WELLS FARGO BANK NA)		0.03%		01/06/16	13,600,000	13,600,000
REV LEASE REV (LOC: WELLS FARGO BANK NA)		0.04%		01/07/16	3,000,000	3,000,000
WALNUT ENERGY CENTER AUTHORITY
REV POWER SERIES B (LOC: STATE STREET BANK AND TRUST COMPANY)		0.05%		02/04/16	26,457,000	26,457,000
Total Fixed-Rate Securities
(Cost $2,243,841,372)						2,243,841,372

See financial notes 13

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Variable-Rate Securities 64.4% of net assets
California 64.4%
ABAG FIN AUTH FOR NONPROFIT CORPS CALIF
REV MULTI FAM HOUSING (ACTON COURTYARD APARTMENTS LLC) SERIES 2010A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.02%		01/07/16	9,920,000	9,920,000
ABAG FIN CORP CALIF
REV MULTI FAM HOUSING (CROSSING APT ASSOCIATES NO 1 LLC) SERIES 2002 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	64,450,000	64,450,000
REV MULTI FAM HOUSING (GAIA ASSOCIATED LTD) SERIES 2000 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	12,165,000	12,165,000
REV MULTI FAM HOUSING (MP SHORELINE ASSOC LP) SERIES 1997A (LOC: COMERICA BANK)		0.10%		01/07/16	4,440,000	4,440,000
REV MULTI FAM HOUSING SERIES 2002 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	20,530,000	20,530,000
REV MULTI FAM HOUSING SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	8,295,000	8,295,000
REV MULTI FAM HOUSING SERIES 2003A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	5,790,000	5,790,000
ALAMEDA CNTY CALIF INDL DEV AUTH
REV IDB & PCR (BAT PROPERTIES LLC) SERIES 1998 A (LOC: BANK OF THE WEST)		0.11%		01/07/16	3,640,000	3,640,000
REV IDB & PCR (DALE HARDWARE INC) SERIES 2010 (LOC: COMERICA BANK)		0.04%		01/07/16	2,125,000	2,125,000
REV IDB & PCR (ETTORE PRODUCTS CO) SERIES 2005 A (LOC: COMERICA BANK)		0.08%		01/07/16	4,000,000	4,000,000
REV IDB & PCR (GOLDEN WEST PAPER CONVERTING CORP) SERIES 2008A (LOC: BANK OF THE WEST)		0.08%		01/07/16	3,315,000	3,315,000
REV IDB & PCR (KING FAMILY PROPERTIES LLC) SERIES 2014 (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	2,484,000	2,484,000
REV IDB & PCR (NEVADA HEAT TREATING INC) SERIES 2011 (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	2,770,000	2,770,000
REV IDB & PCR (PLASTIKON INDUSTRIAL INC) SERIES 2000 A (LOC: COMERICA BANK)		0.07%		01/07/16	2,700,000	2,700,000
ALAMEDA-CONTRA COSTA CALIF SCHS FING AUTH
REV LEASE REV SERIES N (LOC: FEDERAL HOME LOAN BANKS)		0.01%		01/07/16	1,980,000	1,980,000
ANAHEIM CALIF HSG AUTH
REV MULTI FAM HOUSING (SAGE PARK) SERIES 1998 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	5,500,000	5,500,000
ANAHEIM CALIF PUB FING AUTH
REV POWER (ANAHEIM ELEC SYS CA) SERIES 2007A (GTY: BERKSHIRE HATHAWAY ASSURANCE CORP) (LIQ: CITIBANK NA)	a	0.02%		01/07/16	19,030,000	19,030,000
REV POWER (ANAHEIM ELEC SYS CA) TAX ANTICIPATION NOTE SERIES 2009A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	7,500,000	7,500,000
BAKERSFIELD CALIF WASTEWTR REV
REV WATER & SEWER SERIES 2012 A (LIQ: JPMORGAN CHASE BANK NA)		0.03%		01/07/16	3,900,000	3,900,000

14 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
BAY AREA TOLL AUTHORITY
REV TRANSPORTATION SERIES 2006F (ESCROW) (LIQ: CITIBANK NA)	a	0.02%		01/07/16	16,985,000	16,985,000
REV TRANSPORTATION SERIES 2007C-2 (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	11,000,000	11,000,000
REV TRANSPORTATION SERIES 2007C1 (LIQ: BANK OF AMERICA NA)	a	0.04%		01/07/16	4,910,000	4,910,000
REV TRANSPORTATION SERIES 2007F (ESCROW) (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	7,245,000	7,245,000
REV TRANSPORTATION SERIES 2007F, 2008F1&2009F1 (ESCROW) (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	12,462,156	12,462,156
REV TRANSPORTATION SERIES 2008C-1 (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	3,000,000	3,000,000
REV TRANSPORTATION SERIES 2008F1 (ESCROW) (LIQ: CITIBANK NA)	a	0.02%		01/07/16	5,000,000	5,000,000
REV TRANSPORTATION SERIES 2009F1 (LIQ: BANK OF AMERICA NA)	a	0.05%		01/07/16	9,010,000	9,010,000
CALIFORNIA ALTERNATIVE ENERGY SOURCE FING AUTH
REV IDB & PCR (GENERAL ELECTRIC CO) SERIES 1993-B		0.02%		01/07/16	25,330,000	25,330,000
CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY
REV UNIVERSITY (CALIFORNIA INSTITUTE OF TECHNOLOGY) SERIES 2006B		0.01%		01/07/16	3,500,000	3,500,000
REV UNIVERSITY (CALIFORNIA INSTITUTE OF TECHNOLOGY) SERIES 2009 (LIQ: CITIBANK NA)	a	0.01%		01/07/16	9,900,000	9,900,000
REV UNIVERSITY (LIFE CHIROPRACTIC COLLEGE WEST) SERIES 1999 (LOC: BANK OF THE WEST)		0.03%		01/07/16	10,965,000	10,965,000
REV UNIVERSITY (PEPPERDINE UNIVERSITY) SERIES 2015 (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	6,995,000	6,995,000
REV UNIVERSITY (UNIVERSITY OF SOUTHERN CALIFORNIA) SERIES 2009A (LIQ: DEUTSCHE BANK AG)	a	0.07%		01/07/16	1,220,000	1,220,000
CALIFORNIA HEALTH FACS FING AUTH
REV (KAISER PERMANENTE) SERIES 2011A,B,C&D (LOC: ROYAL BANK OF CANADA)	a	0.02%		01/07/16	81,810,000	81,810,000
REV HOSPITAL (CHILDRENS HOSPITAL OF ORANGE COUNTY CA) SERIES 2009C (LOC: US BANK NATIONAL ASSOCIATION)		0.01%		01/07/16	10,275,000	10,275,000
REV HOSPITAL (CITY OF HOPE) SERIES 2012 B		0.01%		01/07/16	16,000,000	16,000,000
REV HOSPITAL (CITY OF HOPE) SERIES 2012 C		0.01%		01/07/16	9,700,000	9,700,000
REV HOSPITAL (DIGNITY HEALTH) SERIES 2004 K (LOC: MIZUHO BANK LTD)		0.01%		01/07/16	21,750,000	21,750,000
REV HOSPITAL (MEMORIAL HLTH SVCS CORP) SERIES 2013A		0.01%		01/07/16	9,045,000	9,045,000
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2008C (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,020,000	5,020,000
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2009B (LIQ: BANK OF AMERICA NA)	a	0.03%		01/07/16	9,200,000	9,200,000
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2009B, 2014A&2014B (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	26,780,000	26,780,000
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2014A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	4,000,000	4,000,000
REV HOSPITAL (PROVIDENCE HEALTH AND SERVICES) SERIES 2014B (LIQ: DEUTSCHE BANK AG)	a	0.12%		01/07/16	12,165,000	12,165,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2001 A (LOC: JPMORGAN CHASE BANK NA)		0.01%		01/07/16	5,815,000	5,815,000

See financial notes 15

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2008B (LOC: WELLS FARGO BANK NA)		0.01%		01/07/16	2,200,000	2,200,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2008C (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	9,150,000	9,150,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2008E (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	16,670,000	16,670,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2010B (LOC: JPMORGAN CHASE BANK NA)		0.01%		01/07/16	26,150,000	26,150,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2012 B		0.01%		01/07/16	13,225,000	13,225,000
REV HOSPITAL (SCRIPPS HEALTH) SERIES 2012 C		0.01%		01/07/16	15,300,000	15,300,000
REV HOSPITAL (ST JOSEPH HEALTH SYSTEM) SERIES 2009A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	11,565,000	11,565,000
REV HOSPITAL (ST JOSEPH HEALTH SYSTEM) SERIES 2009A (LIQ: ROYAL BANK OF CANADA)	a	0.01%		01/07/16	11,250,000	11,250,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2007A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	24,935,000	24,935,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2007A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	9,000,000	9,000,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2011A&B (LIQ: DEUTSCHE BANK AG)	a	0.16%		01/07/16	23,000,000	23,000,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2011B (LIQ: CITIBANK NA)	a	0.02%		01/07/16	9,565,000	9,565,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2011D (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	6,665,000	6,665,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2013A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	3,730,000	3,730,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2013A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	17,195,000	17,195,000
REV HOSPITAL (SUTTER HEALTH) SERIES 2015A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	12,470,000	12,470,000
REV HOSPITAL SERIES 2011 B (LOC: BANK OF MONTREAL)		0.01%		01/07/16	13,450,000	13,450,000
CALIFORNIA HFA HOME MORTGAGE
REV HOUS SINGL SERIES 2000N (LOC: BANK OF AMERICA NA)		0.01%		01/07/16	3,385,000	3,385,000
REV HOUS SINGL SERIES 2003 M (LOC: ROYAL BANK OF CANADA)		0.01%		01/07/16	4,270,000	4,270,000
REV HOUS SINGL SERIES 2005 A (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	4,600,000	4,600,000
REV HOUS SINGL SERIES 2005B (LOC: BANK OF AMERICA NA)		0.01%		01/07/16	1,825,000	1,825,000
REV HOUS SINGL SERIES 2005F (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	42,425,000	42,425,000
REV HOUS SINGL SERIES 2006C (LOC: BANK OF AMERICA NA)		0.01%		01/07/16	1,890,000	1,890,000
REV HOUS SINGL SERIES 2006F (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	2,000,000	2,000,000
REV HOUS SINGL SERIES 2007 H (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	4,400,000	4,400,000
REV HOUS SINGL SERIES 2007K (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	2,500,000	2,500,000
REV MULTI FAM HOUSING SERIES 2013B (LOC: FEDERAL HOME LOAN BANKS)		0.02%		01/07/16	12,840,000	12,840,000
CALIFORNIA HOUSING FINANCE AGENCY
REV MULTI FAM HOUSING SERIES 2008B (LOC: JPMORGAN CHASE BANK NA)		0.02%		01/07/16	11,155,000	11,155,000

16 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
REV IDB & PCR (ASIAN AMERICAN DRUG ABUSE PROGRAM INC) SERIES 2008 (LOC: BANK OF THE WEST)		0.06%		01/07/16	3,005,000	3,005,000
REV POWER (PACIFIC GAS & ELECTRIC CO) SERIES 2009A (LOC: MUFG UNION BANK NA)		0.01%		01/04/16	1,000,000	1,000,000
REV SCHOOL SERIES 2008 (LOC: FEDERAL HOME LOAN BANKS)		0.18%		01/07/16	11,060,000	11,060,000
REV UNIVERSITY (CASA LOMA COLLEGE) SERIES 2009 (LOC: COMERICA BANK)		0.05%		01/07/16	1,780,000	1,780,000
REV UTILITY (PACIFIC GAS & ELECTRIC CO) SERIES 2009B (LOC: MUFG UNION BANK NA)		0.01%		01/04/16	3,645,000	3,645,000
CALIFORNIA MUN FIN AUTH
REV IDB & PCR (CHEVRON CORP) SERIES 2010A		0.01%		01/04/16	11,180,000	11,180,000
REV IDB & PCR (CHEVRON CORP) SERIES 2010C		0.01%		01/04/16	8,205,000	8,205,000
REV UNIVERSITY (WESTMONT COLLEGE) SERIES 2010A (LOC: COMERICA BANK)		0.05%		01/07/16	12,440,000	12,440,000
CALIFORNIA POLLUTION CTL FING AUTH
REV IDB & PCR (PACIFIC GAS & ELECTRIC CO) SERIES 1996C (LOC: MIZUHO BANK LTD)		0.01%		01/04/16	10,000,000	10,000,000
REV IDB & PCR (PACIFIC GAS & ELECTRIC CO) SERIES 1996F (LOC: TD BANK NA)		0.01%		01/04/16	3,700,000	3,700,000
REV WASTE/POLLUTION (AG RESOURCES III INC) SERIES 2004 (LOC: COBANK ACB)		0.06%		01/07/16	5,570,000	5,570,000
REV WASTE/POLLUTION (ALAMEDA CNTY INDUSTRIES INC) SERIES 2000-A (LOC: BANK OF THE WEST)		0.08%		01/07/16	3,330,000	3,330,000
REV WASTE/POLLUTION (ALAMEDA CNTY INDUSTRIES INC) SERIES 2012 (LOC: BANK OF THE WEST)		0.08%		01/07/16	5,140,000	5,140,000
REV WASTE/POLLUTION (ATLAS DISPOSAL INDUSTRIES LLC) SERIES 1999A (LOC: US BANK NATIONAL ASSOCIATION)		0.06%		01/07/16	4,369,000	4,369,000
REV WASTE/POLLUTION (BAY COUNTIES SMART) SERIES 2014 (LOC: COMERICA BANK)		0.08%		01/07/16	4,210,000	4,210,000
REV WASTE/POLLUTION (BAY COUNTIES WASTE SVCS INC) SERIES 2011A (LOC: COMERICA BANK)		0.08%		01/07/16	6,560,000	6,560,000
REV WASTE/POLLUTION (BESTWAY DISPOSAL) SERIES 2012 (LOC: BANK OF THE WEST)		0.08%		01/07/16	14,695,000	14,695,000
REV WASTE/POLLUTION (BLT ENTERPRISES) SERIES 2010 (LOC: MUFG UNION BANK NA)		0.02%		01/07/16	4,665,000	4,665,000
REV WASTE/POLLUTION (BURRTEC WASTE & RECYCLING SERVICES LLC) SERIES 2006A (LOC: BANK OF AMERICA NA)		0.06%		01/07/16	8,705,000	8,705,000
REV WASTE/POLLUTION (BURRTEC WASTE GROUP) SERIES 2006A (LOC: US BANK NATIONAL ASSOCIATION)		0.06%		01/07/16	5,705,000	5,705,000
REV WASTE/POLLUTION (BURRTEC WASTE GROUP) SERIES 2008A (LOC: US BANK NATIONAL ASSOCIATION)		0.06%		01/07/16	7,505,000	7,505,000
REV WASTE/POLLUTION (CALIFORNIA WASTE RECOVERY SYSTEMS INC) SERIES 2012 (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	2,385,000	2,385,000
REV WASTE/POLLUTION (CR&R INC) SERIES 2006A (LOC: JPMORGAN CHASE BANK NA)		0.06%		01/07/16	19,600,000	19,600,000
REV WASTE/POLLUTION (CR&R INC) SERIES 2007A (LOC: JPMORGAN CHASE BANK NA)		0.06%		01/07/16	34,615,000	34,615,000
REV WASTE/POLLUTION (DESERT PROPERTIES LLC) SERIES 2006B (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	1,160,000	1,160,000
REV WASTE/POLLUTION (EDCO DISPOSAL CORP) SERIES 2004 A (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	1,395,000	1,395,000

See financial notes 17

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV WASTE/POLLUTION (EDCO DISPOSAL CORP) SERIES 2007A (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	5,790,000	5,790,000
REV WASTE/POLLUTION (GARAVENTA ENTERPRISES) SERIES 2006 A (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	5,970,000	5,970,000
REV WASTE/POLLUTION (GARAVENTA ENTERPRISES) SERIES 2008A (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	8,925,000	8,925,000
REV WASTE/POLLUTION (GARDEN CITY SANITATION) SERIES 2009A (LOC: MUFG UNION BANK NA)		0.02%		01/07/16	7,100,000	7,100,000
REV WASTE/POLLUTION (GARDEN CITY SANITATION) SERIES 2009B (LOC: MUFG UNION BANK NA)		0.02%		01/07/16	2,475,000	2,475,000
REV WASTE/POLLUTION (GARDEN CITY SANITATION) SERIES 2014 (LOC: MUFG UNION BANK NA)		0.07%		01/07/16	3,000,000	3,000,000
REV WASTE/POLLUTION (GEORGE BORBA & SON DAIRY) SERIES 2003 (LOC: WELLS FARGO BANK NA)		0.05%		01/07/16	3,800,000	3,800,000
REV WASTE/POLLUTION (GREENWASTE OF PALO ALTO CA) SERIES 2008-B (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	2,990,000	2,990,000
REV WASTE/POLLUTION (GREENWASTE RECOVERY INC) SERIES 2006A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	1,810,000	1,810,000
REV WASTE/POLLUTION (MARBORG INDUSTRIES) SERIES 2009A (LOC: MUFG UNION BANK NA)		0.02%		01/07/16	2,095,000	2,095,000
REV WASTE/POLLUTION (MARIN SANITARY SERVICES) SERIES 2006 A (LOC: COMERICA BANK)		0.08%		01/07/16	1,100,000	1,100,000
REV WASTE/POLLUTION (METROPOLITAN RECYCLING CORP) SERIES 2000 A (LOC: COMERICA BANK)		0.08%		01/07/16	1,370,000	1,370,000
REV WASTE/POLLUTION (METROPOLITAN RECYCLING LLC) SERIES 2012A (LOC: COMERICA BANK)		0.08%		01/07/16	2,630,000	2,630,000
REV WASTE/POLLUTION (MID VALLEY DISPOSAL) SERIES 2006A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	2,275,000	2,275,000
REV WASTE/POLLUTION (MILL VALLEY REFUSE SVC INC) SERIES 2014 (LOC: COMERICA BANK)		0.08%		01/07/16	1,170,000	1,170,000
REV WASTE/POLLUTION (MISSION TRAIL WASTE SYSTEM) SERIES 2010A (LOC: COMERICA BANK)		0.04%		01/07/16	1,690,000	1,690,000
REV WASTE/POLLUTION (NORTHERN RECYCLING AND WASTE SERVICES LLC) SERIES 2007A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	945,000	945,000
REV WASTE/POLLUTION (ORANGE AVE DISPOSAL INC) SERIES 2002A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	4,550,000	4,550,000
REV WASTE/POLLUTION (PLEASANTON GARBAGE SERVICE INC) SERIES 2008A (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	2,020,000	2,020,000
REV WASTE/POLLUTION (RATTO GROUP CO INC) SERIES 2007A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	27,800,000	27,800,000
REV WASTE/POLLUTION (RATTO GROUP CO INC) SERIES 2012 (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	11,000,000	11,000,000
REV WASTE/POLLUTION (RECYCLING INDUSTRIES INC) SERIES 2011 (LOC: COMERICA BANK)		0.08%		01/07/16	2,070,000	2,070,000
REV WASTE/POLLUTION (SANTA CLARA VALLEY INDUSTRIES) SERIES 1998 A (LOC: COMERICA BANK)		0.08%		01/07/16	315,000	315,000
REV WASTE/POLLUTION (SOUTH BAY RECYCLING LLC) SERIES 2010B (LOC: MUFG UNION BANK NA)		0.02%		01/07/16	1,840,000	1,840,000
REV WASTE/POLLUTION (TALCO PLASTICS INC) SERIES 1997A (LOC: US BANK NATIONAL ASSOCIATION)		0.04%		01/07/16	1,750,000	1,750,000
REV WASTE/POLLUTION (UPPER VALLEY DISPOSAL SERVICE) SERIES 2008A (LOC: MUFG UNION BANK NA)		0.06%		01/07/16	1,235,000	1,235,000
REV WASTE/POLLUTION (VALLEY VISTA SERVICES INC) SERIES 2007A (LOC: COMERICA BANK)		0.08%		01/07/16	2,205,000	2,205,000

18 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV WASTE/POLLUTION (VANDERHAM FAMILY TRUST-J&D WILSON & SONS DAIRY) SERIES 2004 (LOC: COBANK ACB)		0.05%		01/07/16	2,500,000	2,500,000
REV WASTE/POLLUTION (WASTE CONNECTIONS INC) SERIES 2007 (LOC: BANK OF AMERICA NA)		0.05%		01/07/16	5,400,000	5,400,000
REV WASTE/POLLUTION (ZEREP MANAGEMENT CORP) SERIES 2011 A (LOC: COMERICA BANK)		0.08%		01/07/16	2,810,000	2,810,000
REV WASTE/POLLUTION (ZEREP MANAGEMENT CORP) SERIES 2014 (LOC: COMERICA BANK)		0.08%		01/07/16	9,390,000	9,390,000
CALIFORNIA ST
GO SERIES 15XZ1041 (LIQ: DEUTSCHE BANK AG)	a	0.10%		01/07/16	11,220,000	11,220,000
GO SERIES 2003A-1 (LOC: JPMORGAN CHASE BANK NA)		0.01%		01/04/16	1,000,000	1,000,000
GO SERIES 2003B-1 (LOC: JPMORGAN CHASE BANK NA; CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM;)		0.01%		01/07/16	37,500,000	37,500,000
GO SERIES 2003B-2 (LOC: JPMORGAN CHASE BANK NA; CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM;)		0.01%		01/07/16	18,000,000	18,000,000
GO SERIES 2003B-3 (LOC: JPMORGAN CHASE BANK NA; CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM;)		0.01%		01/07/16	59,100,000	59,100,000
GO SERIES 2004 A1 (LOC: CITIBANK NA)		0.01%		01/04/16	600,000	600,000
GO SERIES 2004 A3 (LOC: STATE STREET BANK AND TRUST COMPANY)		0.01%		01/04/16	2,000,000	2,000,000
GO SERIES 2004 A5 (LOC: CITIBANK NA)		0.01%		01/04/16	3,800,000	3,800,000
GO SERIES 2004-B3 (LOC: CITIBANK NA)		0.01%		01/04/16	600,000	600,000
GO SERIES 2004B2 (LOC: CITIBANK NA)		0.01%		01/04/16	1,000,000	1,000,000
GO SERIES 2005 B-1 (LOC: MIZUHO BANK LTD)		0.01%		01/07/16	12,000,000	12,000,000
GO SERIES 2005 B-3 (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	6,140,000	6,140,000
GO SERIES 2005A1-2 (LOC: ROYAL BANK OF CANADA)		0.01%		01/07/16	39,000,000	39,000,000
GO SERIES 2005A2-1 (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	15,000,000	15,000,000
GO SERIES 2005A2-2 (LOC: ROYAL BANK OF CANADA)		0.01%		01/07/16	20,000,000	20,000,000
GO SERIES 2005A3 (LOC: MIZUHO BANK LTD)		0.01%		01/07/16	6,000,000	6,000,000
GO SERIES 2005B-4 (LOC: JPMORGAN CHASE BANK NA)		0.01%		01/07/16	18,100,000	18,100,000
GO SERIES 2005B5 (LOC: BARCLAYS BANK PLC)		0.01%		01/07/16	12,890,000	12,890,000
GO SERIES 2006 (LOC: WELLS FARGO & COMPANY)	a	0.02%		01/07/16	215,000	215,000
GO SERIES 2013 (LIQ: JPMORGAN CHASE BANK NA)	a	0.11%		01/07/16	5,000,000	5,000,000
GO SERIES 2014 (LIQ: CITIBANK NA)	a	0.01%		01/07/16	3,000,000	3,000,000
GO SERIES 2015 (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	7,020,000	7,020,000
CALIFORNIA ST DEPT WTR RES
REV WATER & SEWER SERIES AE (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	12,605,000	12,605,000
CALIFORNIA ST ENTERPRISE DEV AUTH
REV IDB & PCR (SCONZA CANDY CO) SERIES 2008A (LOC: COMERICA BANK)		0.08%		01/07/16	10,000,000	10,000,000
CALIFORNIA STATE UNIVERSITY
REV UNIVERSITY SERIES 2012A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,840,000	5,840,000
REV UNIVERSITY SERIES 2015A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,180,000	5,180,000
CALIFORNIA STATEWIDE CMNTYS DEV AUTH
REV HOSPITAL (KAISER PERMANENTE) SERIES 2006B (GTY: BERKSHIRE HATHAWAY ASSURANCE CORP) (LIQ: CITIBANK NA)	a	0.02%		01/07/16	4,950,000	4,950,000
REV HOSPITAL (RADY CHILDRENS HOSPITAL) SERIES 2008C (LOC: NORTHERN TRUST COMPANY (THE))		0.01%		01/07/16	6,575,000	6,575,000

See financial notes 19

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV HOSPITAL (SUTTER HEALTH) SERIES 2005C (LIQ: CITIBANK NA)	a	0.02%		01/07/16	6,300,000	6,300,000
REV HOSPITAL (TRINITY HEALTH CREDIT GROUP) SERIES 2011CA (LIQ: CITIBANK NA)	a	0.01%		01/07/16	2,175,000	2,175,000
REV HOUSING (DUBLIN RANCH SENIOR APTS) SERIES 2003 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	29,990,000	29,990,000
REV HOUSING (PLAN NINE PARTNERS LLC) SERIES 2005A (LOC: MUFG UNION BANK NA)		0.04%		01/07/16	5,300,000	5,300,000
REV HOUSING (THE KNOLLS AT GREEN VALLEY APARTMENTS CA) SERIES 2002 FF (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	13,205,000	13,205,000
REV HOUSING SERIES 2003 ZZ (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	6,420,000	6,420,000
REV IDB & PCR (RL GRP LLC) SERIES 1998 C (LOC: US BANK NATIONAL ASSOCIATION)		0.08%		01/07/16	1,260,000	1,260,000
REV MULTI FAM HOUSING (ALEXANDRIA HOUSING PARTNERS LP) SERIES 2013 A (LOC: FEDERAL HOME LOAN BANKS)		0.02%		01/07/16	16,775,000	16,775,000
REV MULTI FAM HOUSING (AVIAN GLEN APARTMENTS CA) SERIES 2004 CC (LOC: CITIBANK NA)		0.03%		01/07/16	4,590,000	4,590,000
REV MULTI FAM HOUSING (BRANDON PLACE PARTNERS LP) SERIES 2006D (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	6,070,000	6,070,000
REV MULTI FAM HOUSING (BRENTWOOD ARBOR RIDGE LP) SERIES 2008B (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	16,405,000	16,405,000
REV MULTI FAM HOUSING (CA STATEWIDE CDA AEGIS AT PLEASANT HILL) SERIES 1997 H (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	6,270,000	6,270,000
REV MULTI FAM HOUSING (CANYON COUNTRY CMNTY LP) SERIES 2002 M (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.02%		01/07/16	10,500,000	10,500,000
REV MULTI FAM HOUSING (CHARTER COURT SJC LP) SERIES 2008L (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	10,125,000	10,125,000
REV MULTI FAM HOUSING (CREEKSIDE AT MEADOW PARK LP) SERIES 2002 HH (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	8,295,000	8,295,000
REV MULTI FAM HOUSING (CROSSINGS WEST APARTMENTS CA) SERIES 2009E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.01%		01/07/16	15,000,000	15,000,000
REV MULTI FAM HOUSING (DUBLIN RANCH SENIOR APTS) SERIES 2006G (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	5,010,000	5,010,000
REV MULTI FAM HOUSING (FAIRFIELD SAGEWOOD L P) SERIES 2005CC (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	9,100,000	9,100,000
REV MULTI FAM HOUSING (FAIRWAY FAMILY COMMUNITY L P) SERIES 2003 PP (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	22,000,000	22,000,000
REV MULTI FAM HOUSING (FAIRWAY FAMILY COMMUNITY L P) SERIES 2006H (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	7,000,000	7,000,000
REV MULTI FAM HOUSING (GRANITE EMERALD GARDENS LLC) SERIES 2000 E (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	7,320,000	7,320,000

20 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV MULTI FAM HOUSING (HERITAGE II LP) SERIES 2014 G (LOC: FEDERAL HOME LOAN BANKS)		0.01%		01/07/16	7,100,000	7,100,000
REV MULTI FAM HOUSING (HERITAGE OAKS L P) SERIES 2004 YY (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.04%		01/07/16	6,900,000	6,900,000
REV MULTI FAM HOUSING (IH ALHAMBRA DAVIS LLC) SERIES 2014A (LOC: FEDERAL HOME LOAN BANKS)		0.01%		01/07/16	10,000,000	10,000,000
REV MULTI FAM HOUSING (KDF CYPRESS VILLA LP) SERIES 2000F (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.04%		01/07/16	4,725,000	4,725,000
REV MULTI FAM HOUSING (KDF LOS PADRES LP) SERIES 2003 E (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	10,750,000	10,750,000
REV MULTI FAM HOUSING (KELVIN COURT CA) SERIES 2012 B (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	12,750,000	12,750,000
REV MULTI FAM HOUSING (LAS FLORES VILLAGE PARTNERS LP) SERIES 2004 JJ (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.04%		01/07/16	13,500,000	13,500,000
REV MULTI FAM HOUSING (LAUREL PARK SENIOR APARTMENTS CA) SERIES 2002 H (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.02%		01/07/16	5,500,000	5,500,000
REV MULTI FAM HOUSING (MARTIN LUTHER TOWER L P) SERIES 2005D (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	7,050,000	7,050,000
REV MULTI FAM HOUSING (OAK CENTERS L P) SERIES 2005 L (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	3,420,000	3,420,000
REV MULTI FAM HOUSING (OAKMONT OF CONCORD CA) SERIES 2002 Q (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	16,650,000	16,650,000
REV MULTI FAM HOUSING (PALMILLA PRIMITIVO ASSOCIATES) SERIES 2008 J (LOC: FEDERAL HOME LOAN BANKS)		0.02%		01/07/16	12,100,000	12,100,000
REV MULTI FAM HOUSING (PLAZA CLUB APT LP) SERIES 1997 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	13,190,000	13,190,000
REV MULTI FAM HOUSING (RANCHO SANTA FE VILLAGE APTS CA) SERIES 2004EE (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.04%		01/07/16	12,300,000	12,300,000
REV MULTI FAM HOUSING (SAN JOAQUIN MARINERS ASSOC LP) SERIES 2006A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.01%		01/07/16	6,500,000	6,500,000
REV MULTI FAM HOUSING (STONERIDGE AT ELK GROVE CA) SERIES 2005Q (LOC: CITIBANK NA)		0.03%		01/07/16	6,340,000	6,340,000
REV POWER (ROYAL BANK OF CANADA) SERIES A (LOC: ROYAL BANK OF CANADA)		0.07%	01/07/16	03/01/16	50,000,000	50,000,000
REV POWER (ROYAL BANK OF CANADA) SERIES B (LOC: ROYAL BANK OF CANADA)		0.07%	01/07/16	05/02/16	50,000,000	50,000,000
CHULA VISTA CALIF
REV MULTI FAM HOUSING SERIES SERIES 2 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.01%		01/07/16	5,000,000	5,000,000
COAST CMNTY COLLEGE DIST CALIF
GO SERIES 2006B (LIQ: DEUTSCHE BANK AG)	a	0.06%		01/07/16	24,875,000	24,875,000
CONTRA COSTA CALIF CMNTY COLLEGE DIST
GO SERIES 2013 (LIQ: CITIBANK NA)	a	0.02%		01/07/16	7,800,000	7,800,000
GO SERIES 2013 (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.01%		01/07/16	7,500,000	7,500,000

See financial notes 21

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
CONTRA COSTA CNTY CALIF
REV MULTI FAM HOUSING (FAIRFIELD CREEKVIEW LP) SERIES 2003 B (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	32,200,000	32,200,000
CONTRA COSTA WATER DISTRICT
REV WATER & SEWER		0.10%	03/08/16	09/04/16	24,500,000	24,500,000
DUBLIN CALIF HSG AUTH
REV MULTI FAM HOUSING (PARK SIERRA LLC) SERIES 1998 A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.02%		01/07/16	28,700,000	28,700,000
EAST BAY MUNICIPAL UTILITY DISTRICT WASTEWATER SYSTEM
REV WATER & SEWER		0.05%	01/20/16	09/10/16	15,000,000	15,000,000
EAST BAY MUNICIPAL UTILITY DISTRICT WATER SYSTEM REVENUE
REV WATER & SEWER		0.08%	01/06/16	06/05/16	13,000,000	13,000,000
REV WATER & SEWER SERIES 2005A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	35,000,000	35,000,000
REV WATER & SEWER SERIES 2008-A4 (LIQ: WELLS FARGO BANK NA)		0.01%		01/07/16	19,765,000	19,765,000
REV WATER & SEWER SERIES 2012A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	49,500,000	49,500,000
REV WATER & SEWER SERIES 2014C (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	1,830,000	1,830,000
EASTERN MUN WTR DIST CALIF
REV WATER & SEWER SERIES 2012 A		0.05%	01/07/16	05/05/16	17,500,000	17,500,000
EL CAMINO CALIF HOSP DIST
GO SERIES 2006 (LIQ: DEUTSCHE BANK AG)	a	0.14%		01/07/16	8,835,000	8,835,000
ELSINORE VALLEY CALIF MUN WTR DIST
REV WATER & SEWER SERIES 2011A (LOC: MUFG UNION BANK NA)		0.03%		01/07/16	14,725,000	14,725,000
EMERYVILLE REDEVELOPMENT AGENCY SUCCESSOR AGENCY
REV MULTI FAM HOUSING SERIES A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	57,715,000	57,715,000
ESCONDIDO CALIF
REV MULTI FAM HOUSING (TRINITY ESCONDIDO I LP) SERIES A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	6,900,000	6,900,000
FOOTHILL-DE ANZA CALIF CMNTY COLLEGE DIST
GO SERIES B (LIQ: DEUTSCHE BANK AG)	a	0.06%		01/07/16	16,830,000	16,830,000
GO SERIES C (LIQ: CITIBANK NA)	a	0.01%		01/07/16	4,500,000	4,500,000
REV SCHOOL REVENUE ANTICIPATION NOTE SERIES C (LIQ: WELLS FARGO BANK NA)	a	0.03%		01/07/16	9,750,000	9,750,000
GROSSMONT CALIF HEALTHCARE DIST
GO SERIES 2011B (ESCROW) (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	8,200,000	8,200,000
HAYWARD CALIF
REV MULTI FAM HOUSING (LORD TENNYSON VOA AFFORDABLE HSG L P) SERIES 2005A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.04%		01/07/16	13,915,000	13,915,000
REV MULTI FAM HOUSING SERIES 1998A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	9,500,000	9,500,000
HUNTINGTON BEACH CALIF
REV MULTI FAM HOUSING (FIVE POINTS SRS L P) SERIES 1991A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	4,200,000	4,200,000
IRVINE RANCH CALIF WTR DIST
REV WATER & SEWER SERIES 2011A-1		0.04%	01/07/16	03/15/16	15,145,000	15,145,000
REV WATER & SEWER SERIES 2011A-2		0.04%	01/07/16	03/15/16	8,730,000	8,730,000
KINGS CNTY CALIF HSG AUTH
REV MULTI FAM HOUSING SERIES 2001A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.01%		01/07/16	12,775,000	12,775,000

22 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
LONG BEACH CALIF CMNTY COLLEGE DIST
GO SERIES 2007D (LIQ: WELLS FARGO & COMPANY)	a	0.03%		01/07/16	25,015,000	25,015,000
REV SCHOOL REVENUE ANTICIPATION NOTE SERIES 2008A (LIQ: DEUTSCHE BANK AG)	a	0.11%		01/07/16	11,351,000	11,351,000
LONG BEACH CALIF UNI SCH DIST
GO SERIES 2012 (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	7,750,000	7,750,000
GO SERIES A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	6,665,000	6,665,000
LOS ANGELES CA DEPARTMENT OF AIRPORTS
REV TRANSPORTATION SERIES 2008A (LIQ: JPMORGAN CHASE BANK NA)	a	0.05%		01/07/16	19,295,000	19,295,000
REV TRANSPORTATION SERIES 2008A (LIQ: MORGAN STANLEY BANK NA)	a	0.06%		01/07/16	13,475,000	13,475,000
REV TRANSPORTATION SERIES 2010A (LIQ: BANK OF AMERICA NA)	a	0.02%		01/07/16	10,095,000	10,095,000
REV TRANSPORTATION SERIES 2010A (LIQ: BARCLAYS BANK PLC)	a	0.02%		01/07/16	4,620,000	4,620,000
REV TRANSPORTATION SERIES 2010A (LIQ: ROYAL BANK OF CANADA)	a	0.01%		01/07/16	8,665,000	8,665,000
REV TRANSPORTATION SERIES 2010A&D (LIQ: BARCLAYS BANK PLC)	a	0.02%		01/07/16	6,630,000	6,630,000
REV TRANSPORTATION SERIES 2010D (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	6,665,000	6,665,000
REV TRANSPORTATION SERIES 2012B (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	4,165,000	4,165,000
REV TRANSPORTATION SERIES 2015A (LIQ: MORGAN STANLEY BANK NA)	a	0.06%		01/07/16	9,500,000	9,500,000
REV TRANSPORTATION SERIES 2015D (LIQ: BARCLAYS BANK PLC)	a	0.03%		01/07/16	4,685,000	4,685,000
REV TRANSPORTATION SERIES 2015D (LIQ: MORGAN STANLEY BANK NA)	a	0.06%		01/07/16	5,250,000	5,250,000
LOS ANGELES CALIF
REV MULTI FAM HOUSING (ASBURY APARTMENTS LP) SERIES 2003 A (LOC: CITIBANK NA)		0.07%		01/07/16	4,555,000	4,555,000
REV WATER & SEWER (LOS ANGELES CALIF WASTEWTR SYS) SERIES 2012B (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	6,665,000	6,665,000
REV WATER & SEWER (LOS ANGELES CALIF WASTEWTR SYS) SERIES 2015A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	2,510,000	2,510,000
LOS ANGELES CALIF CMNTY COLLEGE DIST
GO SERIES 2007A (ESCROW) (LIQ: JPMORGAN CHASE BANK NA)	a	0.03%		01/07/16	16,535,000	16,535,000
GO SERIES 2007A (ESCROW) (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	5,225,000	5,225,000
GO SERIES 2008F1 (ESCROW) (LIQ: JPMORGAN CHASE BANK NA)	a	0.03%		01/07/16	6,665,000	6,665,000
REV SCHOOL SERIES 2007A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	3,000,000	3,000,000
LOS ANGELES CALIF COMMUNITY REDEVELOPMENT AGENCY
REV HOUSING SERIES 1989A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.01%		01/07/16	13,800,000	13,800,000
REV MULTI FAM HOUSING (SECURITY BLDG LOFT PARTNERS L P) SERIES 2001A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	3,955,000	3,955,000
LOS ANGELES CALIF DEPT PWR
REV POWER SERIES 2001 B-5 (LIQ: BANK OF MONTREAL)		0.01%		01/07/16	24,500,000	24,500,000
REV POWER SERIES 2001B-8 (LIQ: BANK OF MONTREAL)		0.01%		01/07/16	6,000,000	6,000,000
REV POWER SERIES 2002 A-1 (LIQ: BANK OF AMERICA NA)		0.01%		01/07/16	10,000,000	10,000,000

See financial notes 23

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV POWER SERIES 2002 A-4 (LIQ: BANK OF AMERICA NA)		0.01%		01/07/16	18,150,000	18,150,000
REV POWER SERIES 2002 A-5 (LIQ: CITIBANK NA)		0.01%		01/07/16	5,000,000	5,000,000
REV POWER SERIES 2002 A-6 (LIQ: BANK OF AMERICA NA)		0.01%		01/07/16	12,600,000	12,600,000
REV POWER SERIES 2007A1 (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	7,980,000	7,980,000
REV POWER SERIES 2012B, 2014B&E (LIQ: MORGAN STANLEY BANK NA)	a	0.01%		01/07/16	15,360,000	15,360,000
REV POWER SERIES 2013B (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	2,500,000	2,500,000
LOS ANGELES CALIF DEPT WTR
REV WATER & SEWER SERIES 2006A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	35,110,000	35,110,000
REV WATER & SEWER SERIES 2006A1 (LIQ: CITIBANK NA)	a	0.02%		01/07/16	17,500,000	17,500,000
REV WATER & SEWER SERIES 2006A1&2007A2 (LIQ: WELLS FARGO & COMPANY)	a	0.03%		01/07/16	24,210,000	24,210,000
REV WATER & SEWER SERIES 2011A (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.01%		01/07/16	17,565,000	17,565,000
REV WATER & SEWER SERIES 2012A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	3,665,000	3,665,000
REV WATER & SEWER SERIES 2012A (LIQ: ROYAL BANK OF CANADA)	a	0.01%		01/07/16	12,000,000	12,000,000
REV WATER & SEWER SERIES 2012B (LIQ: CITIBANK NA)	a	0.02%		01/07/16	12,375,000	12,375,000
REV WATER & SEWER SERIES 2012B (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,000,000	5,000,000
REV WATER & SEWER SERIES 2012B (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	10,900,000	10,900,000
REV WATER & SEWER SERIES 2014A (LIQ: CITIBANK NA)	a	0.01%		01/07/16	1,140,000	1,140,000
REV WATER & SEWER SERIES 2014A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	4,000,000	4,000,000
LOS ANGELES CALIF HBR DEPT
REV TRANSPORTATION SERIES 2006B (LIQ: CITIBANK NA)	a	0.06%		01/07/16	16,120,000	16,120,000
REV TRANSPORTATION SERIES 2009B (LIQ: WELLS FARGO & COMPANY)	a	0.03%		01/07/16	9,725,000	9,725,000
LOS ANGELES CALIF INDL DEV AUTH
REV IDB & PCR (AAA PACKING & SHIPPING INC) SERIES 2000 (LOC: WELLS FARGO BANK NA)		0.06%		01/07/16	3,000,000	3,000,000
REV IDB & PCR (KH ENTERPRISES LLC) SERIES 2008 (LOC: BANK OF THE WEST)		0.11%		01/07/16	1,410,000	1,410,000
LOS ANGELES CALIF UNI SCH DIST
GO SERIES 2007A1 (LIQ: WELLS FARGO & COMPANY)	a	0.03%		01/07/16	24,775,000	24,775,000
GO SERIES 2007B&2007B (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.01%		01/07/16	7,290,000	7,290,000
GO SERIES 2009I (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	6,890,000	6,890,000
LOS ANGELES CNTY CALIF HSG AUTH
REV MULTI FAM HOUSING (CANYON SIERRA APARTMENTS) SERIES 2010B (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	14,200,000	14,200,000
REV MULTI FAM HOUSING (CASTAIC SENIOR COMMUNITIES LP) SERIES 2003C (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	9,300,000	9,300,000
REV MULTI FAM HOUSING (LINCOLN MALIBU MEADOWS L P) SERIES 1998 B (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.01%		01/07/16	14,550,000	14,550,000

24 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
REV MULTI FAM HOUSING (PALMER SAND CANYON LTD) SERIES 2003C (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	17,000,000	17,000,000
REV MULTI FAM HOUSING SERIES 1985-H (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.01%		01/07/16	11,000,000	11,000,000
METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
REV WATER & SEWER SERIES 2005C (LIQ: CITIBANK NA)	a	0.02%		01/07/16	24,750,000	24,750,000
REV WATER & SEWER SERIES 2006A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,590,000	5,590,000
REV WATER & SEWER SERIES 2009A-2		0.21%	01/07/16	08/30/16	48,000,000	48,000,000
REV WATER & SEWER SERIES 2011 A-3		0.03%	01/07/16	08/16/16	32,200,000	32,200,000
REV WATER & SEWER SERIES 2011A-1		0.21%	01/07/16	08/16/16	30,940,000	30,940,000
REV WATER & SEWER SERIES 2013E		0.08%	01/07/16	01/29/16	52,000,000	52,000,000
REV WATER & SEWER SERIES 2014D		0.01%		01/07/16	5,655,000	5,655,000
REV WATER & SEWER SERIES 2015 A-1		0.01%		01/07/16	11,500,000	11,500,000
REV WATER & SEWER SERIES 2015 A-2		0.01%		01/07/16	16,000,000	16,000,000
REV WATER & SEWER SERIES B-3 (LIQ: WELLS FARGO BANK NA)		0.01%		01/04/16	2,700,000	2,700,000
MONTEREY PENINSULA CALIF WTR MGMT DIST
REV WATER & SEWER SERIES 1992 (LOC: WELLS FARGO BANK NA)		0.03%		01/07/16	1,350,000	1,350,000
NUVEEN CA AMT-FREE MUNI INCOME FUND
SERIES 5 (LOC: MORGAN STANLEY BANK NA)	a	0.16%		01/07/16	50,300,000	50,300,000
NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND
REV SERIES 4 (LOC: ROYAL BANK OF CANADA)	a	0.09%		01/07/16	5,600,000	5,600,000
REV SERIES 6 (LOC: CITIBANK NA)	a	0.10%		01/07/16	19,300,000	19,300,000
SERIES 1 (LOC: MORGAN STANLEY BANK NA)	a	0.16%		01/07/16	55,000,000	55,000,000
NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
REV SERIES 1 (LOC: ROYAL BANK OF CANADA)	a	0.11%		01/07/16	38,000,000	38,000,000
NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND 3
REV SERIES 1 (LOC: BARCLAYS BANK PLC)	a	0.10%		01/07/16	15,900,000	15,900,000
ORANGE CNTY CALIF
REV TRANSPORTATION (ORANGE CNTY CA ARPT REVENUE) SERIES 2009B (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	6,520,000	6,520,000
ORANGE CNTY CALIF HSG AUTH
REV HOUSING SERIES 1998F (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.01%		01/07/16	9,900,000	9,900,000
ORANGE CNTY CALIF SANTN DIST
REV WATER & SEWER SERIES 2015A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	8,000,000	8,000,000
OXNARD CALIF FING AUTH
REV LEASE REV SERIES 2003 B (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	10,295,000	10,295,000
REV LEASE REV SERIES 2006 (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	19,675,000	19,675,000
REV WATER & SEWER SERIES 2004 B (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	17,745,000	17,745,000
PALOMAR CALIF CMNTY COLLEGE DIST
GO SERIES C (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	30,280,000	30,280,000
PASADENA CALIF
REV COP SERIES 2008A (LOC: BANK OF AMERICA NA)		0.02%		01/07/16	13,600,000	13,600,000
PETALUMA CALIF
REV MULTI FAM HOUSING SERIES 1996A (LOC: US BANK NATIONAL ASSOCIATION)		0.06%		01/07/16	2,450,000	2,450,000

See financial notes 25

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
PINOLE CALIF REDEV AGY
REV MULTI FAM HOUSING (EAST BLUFF ASSOC) SERIES 1998 A (LOC: COMERICA BANK)		0.10%		01/07/16	4,959,000	4,959,000
PITTSBURG CALIF PUB FING AUTH
REV WATER & SEWER SERIES 2008 (LOC: BANK OF THE WEST)		0.02%		01/07/16	7,445,000	7,445,000
PITTSBURG CALIF REDEV AGY
REV SPECIAL TAX REVENUE ANTICIPATION NOTE SERIES 2004A (LOC: CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM; STATE STREET BANK AND TRUST COMPANY;)		0.01%		01/04/16	9,855,000	9,855,000
PLACER CNTY CALIF WTR AGY
REV WATER & SEWER SERIES 2007 (LOC: WELLS FARGO & COMPANY)	a	0.03%		01/07/16	15,555,000	15,555,000
PLEASANTON CALIF
REV MULTI FAM HOUSING (BUSCH GARDEN INVS) SERIES 2003 A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	13,360,000	13,360,000
POMONA CALIF PUB FING AUTH
REV WATER & SEWER SERIES 2007AY (LOC: US BANK NATIONAL ASSOCIATION)	a	0.02%		01/07/16	8,825,000	8,825,000
POWAY CALIF UNI SCH DIST
GO SERIES 2008B (ESCROW) (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	10,000,000	10,000,000
REDONDO BEACH CALIF REDEV AGY
REV MULTI FAM HOUSING SERIES 2004A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	10,890,000	10,890,000
RICHMOND CALIF
REV WASTE/POLLUTION SERIES 2008A (LOC: MUFG UNION BANK NA)		0.01%		01/07/16	7,000,000	7,000,000
RIVERSIDE CALIF
REV POWER (RIVERSIDE ELECTRIC SYSTEM, CA) SERIES 2008A (LOC: BARCLAYS BANK PLC)		0.01%		01/07/16	40,000,000	40,000,000
RIVERSIDE CNTY CALIF TRANSN COMMN
REV SALES TAX SERIES 2009A (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	7,600,000	7,600,000
REV SALES TAX SERIES 2009C (LIQ: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	10,765,000	10,765,000
REV SALES TAX SERIES 2013A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	1,675,000	1,675,000
REV SALES TAX SERIES 2013A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	8,240,000	8,240,000
ROSEVILLE CALIF JT UN HIGH SCH DIST
GO SERIES C (LIQ: DEUTSCHE BANK AG)	a	0.11%		01/07/16	8,835,000	8,835,000
SACRAMENTO CALIF HSG AUTH
REV MULTI FAM HOUSING (HURLEY SACRAMENTO LP) SERIES 2006E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	10,265,000	10,265,000
REV MULTI FAM HOUSING (SACRAMENTO ATRIUM ASSOC) SERIES 2002 G (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	17,200,000	17,200,000
REV MULTI FAM HOUSING (ST ANTON BLDG LP) SERIES 2003I (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	8,000,000	8,000,000
REV MULTI FAM HOUSING (VALENCIA SACRAMENTO LP) SERIES 2006I (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	5,150,000	5,150,000
REV MULTI FAM HOUSING SERIES 2000-G (LOC: CITIBANK NA)		0.03%		01/07/16	9,300,000	9,300,000

26 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SACRAMENTO CALIF MUN UTIL DIST
REV POWER SERIES 2008J (LOC: BANK OF AMERICA NA)		0.01%		01/07/16	51,200,000	51,200,000
REV POWER SERIES 2012 M (LOC: STATE STREET BANK AND TRUST COMPANY)		0.01%		01/07/16	2,940,000	2,940,000
SACRAMENTO CALIF SUBN WTR DIST
REV WATER & SEWER SERIES 2009A (LOC: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	6,000,000	6,000,000
SACRAMENTO CALIF TRANSN AUTH SALES
REV SALES TAX SERIES 2015A (LIQ: MIZUHO BANK LTD)		0.01%		01/07/16	20,100,000	20,100,000
SACRAMENTO CNTY CALIF HSG AUTH
REV MULTI FAM HOUSING (ARLINGTON ANTELOPE LP) SERIES 2001-I (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	10,000,000	10,000,000
REV MULTI FAM HOUSING (HASTINGS AT ANTELOPE LP) SERIES 2004G (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	16,500,000	16,500,000
REV MULTI FAM HOUSING (NORMANDY PK LP) SERIES 2000-A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	6,000,000	6,000,000
REV MULTI FAM HOUSING (SACRAMENTO CNTY CALIF) SERIES 2006H (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	12,255,000	12,255,000
REV MULTI FAM HOUSING (SIERRA SUNRISE SENIOR APARTMENTS LP) SERIES 2004D (LOC: CITIBANK NA)		0.04%		01/07/16	4,456,000	4,456,000
REV MULTI FAM HOUSING SERIES 2001C (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	16,055,000	16,055,000
REV MULTI FAM HOUSING SERIES 2003E (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	14,000,000	14,000,000
REV MULTI FAM HOUSING SERIES 2007E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	41,800,000	41,800,000
SACRAMENTO CNTY CALIF SANTN DIST FING AUTH
REV WASTE/POLLUTION SERIES 2013A (LOC: ROYAL BANK OF CANADA)	a	0.02%		01/07/16	29,945,000	29,945,000
SAN BERNARDINO CALIF CMNTY COLLEGE DIST
GO SERIES 2013A (LIQ: CREDIT SUISSE AG)	a	0.01%		01/07/16	8,000,000	8,000,000
GO SERIES C (LIQ: CITIBANK NA)	a	0.21%		01/07/16	7,500,000	7,500,000
SAN BERNARDINO CNTY CALIF TRANSN AUTH
REV SALES TAX SERIES 2014A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	8,300,000	8,300,000
SAN DIEGO CALIF CMNTY COLLEGE DIST
REV SCHOOL SERIES 2009 (LIQ: CITIBANK NA)	a	0.02%		01/07/16	3,125,000	3,125,000
SAN DIEGO CALIF HSG AUTH
REV MULTI FAM HOUSING (CREEKSIDE HLDGS LTD) SERIES 1999 B (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	5,420,000	5,420,000
REV MULTI FAM HOUSING (HILLSIDE GARDEN APTS) SERIES 2004 B (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.03%		01/07/16	25,595,000	25,595,000
SAN DIEGO CNTY CALIF
REV COP SERIES 2003 (LOC: COMERICA BANK)		0.01%		01/07/16	3,530,000	3,530,000
SAN DIEGO CNTY CALIF WTR AUTH
REV WATER & SEWER REVENUE ANTICIPATION NOTE SERIES 2008A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,810,000	5,810,000
REV WATER & SEWER SERIES 1		0.06%	01/06/16	08/01/16	12,500,000	12,500,000
REV WATER & SEWER SERIES 1		0.04%	01/04/16	08/29/16	12,500,000	12,500,000
REV WATER & SEWER SERIES 2008A (LIQ: CITIBANK NA)	a	0.01%		01/07/16	33,580,000	33,580,000

See financial notes 27

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION
REV SALES TAX SERIES 2008A (LIQ: JPMORGAN CHASE BANK NA)		0.01%		01/07/16	17,100,000	17,100,000
REV SALES TAX SERIES 2008B (LIQ: JPMORGAN CHASE BANK NA)		0.01%		01/07/16	14,310,000	14,310,000
SAN FRANCISCO CALIF BAY AREA RAPID TRAN DIST
REV TRANSPORTATION SERIES 2006A (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	6,130,000	6,130,000
SAN FRANCISCO CALIF CITY & CNTY
REV LEASE REV SERIES 2010A (LIQ: MORGAN STANLEY BANK NA)	a	0.03%		01/07/16	3,325,000	3,325,000
SAN FRANCISCO CALIF CITY & CNTY ARPTS COMMN
REV TRANSPORTATION SERIES 36A (LOC: US BANK NATIONAL ASSOCIATION)		0.01%		01/07/16	25,000,000	25,000,000
REV TRANSPORTATION SERIES 36B (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	3,790,000	3,790,000
REV TRANSPORTATION SERIES 36C (LOC: BANK OF TOKYO-MITSUBISHI UFJ LTD)		0.01%		01/07/16	13,570,000	13,570,000
SAN FRANCISCO CALIF CITY & CNTY FIN CORP
REV LEASE REV (SAN FRANCISCO CALIF CITY & CNTY) SERIES 2008-1 (LOC: STATE STREET BANK AND TRUST COMPANY)		0.01%		01/07/16	10,750,000	10,750,000
REV LEASE REV SERIES 2008-2 (LOC: STATE STREET BANK AND TRUST COMPANY)		0.01%		01/07/16	7,775,000	7,775,000
SAN FRANCISCO CALIF CITY & CNTY HSG AUTH
REV MULTI FAM HOUSING (VALENCIA GARDENS HOUSING LP) SERIES 2004 (LOC: CITIBANK NA)		0.03%		01/07/16	6,370,000	6,370,000
SAN FRANCISCO CALIF CITY & CNTY PUB UTILS COMMN WTR REV
REV WATER & SEWER SERIES 2011 & 2012A (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.02%		01/07/16	4,555,000	4,555,000
REV WATER & SEWER SERIES 2012A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	6,665,000	6,665,000
SAN FRANCISCO CALIF CITY & CNTY REDEV AGY
REV MULTI FAM HOUSING SERIES 1992A-1 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.02%		01/07/16	30,100,000	30,100,000
REV MULTI FAM HOUSING SERIES 1992A-2 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	3,750,000	3,750,000
SAN FRANCISCO MUNICIPAL TRANSPORTATION AGENCY
REV TRANSPORTATION SERIES 2014 (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,000,000	5,000,000
SAN JOSE CALIF
REV MULTI FAM HOUSING (KDF VILLA MONTEREY L P) SERIES 2002 F (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)		0.02%		01/07/16	2,000,000	2,000,000
REV MULTI FAM HOUSING SERIES 2002 D (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	6,395,000	6,395,000
SAN JOSE EVERGREEN CALIF CMNTY COLLEGE DIST
GO SERIES A (LIQ: CITIBANK NA)	a	0.02%		01/07/16	3,980,000	3,980,000
SAN MARCOS CALIF REDEV AGY
REV MULTI FAM HOUSING (GRANDON VLG PARTNERS LP) SERIES 2002 A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)		0.03%		01/07/16	13,390,000	13,390,000
SAN MARCOS CALIF UNI SCH DIST
GO REVENUE ANTICIPATION NOTE SERIES C (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	6,665,000	6,665,000
SAN MATEO CALIF JT PWRS FING AUTH
REV LEASE REV (SAN MATEO CNTY CALIF) SERIES 2013A (LIQ: BARCLAYS BANK PLC)	a	0.02%		01/07/16	10,745,000	10,745,000

28 See financial notes

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SAN MATEO CNTY CALIF CMNTY COLLEGE DIST
GO SERIES 2005B (LIQ: WELLS FARGO & COMPANY)	a	0.02%		01/07/16	11,060,000	11,060,000
GO SERIES 2005B&2006A (LIQ: WELLS FARGO & COMPANY)	a	0.01%		01/07/16	19,240,000	19,240,000
GO SERIES 2015A (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	8,810,000	8,810,000
SANTA CLARA CNTY CALIF FING AUTH
REV COUNTY (SANTA CLARA CNTY CALIF) SERIES 2007K (LOC: US BANK NATIONAL ASSOCIATION)	a	0.02%		01/07/16	47,050,000	47,050,000
SANTA CLARA CNTY CALIF HSG AUTH
REV MULTI FAM HOUSING (MP MONTE VISTA ASSOC) SERIES 2005C (LOC: MUFG UNION BANK NA)		0.12%		01/07/16	8,427,000	8,427,000
REV MULTI FAM HOUSING SERIES 2005A (LOC: MUFG UNION BANK NA)		0.03%		01/07/16	3,948,000	3,948,000
SANTA CLARA VY CALIF TRANSN AUTH
REV SALES TAX SERIES 2008 A (LIQ: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	6,915,000	6,915,000
REV SALES TAX SERIES 2008C (LIQ: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	21,975,000	21,975,000
REV SALES TAX SERIES 2008D (LIQ: SUMITOMO MITSUI BANKING CORPORATION)		0.01%		01/07/16	8,000,000	8,000,000
SAUSALITO CALIF
REV MULTI FAM HOUSING (ROTARY HSG CORP) SERIES 2003 (LOC: BANK OF THE WEST)		0.05%		01/07/16	1,930,000	1,930,000
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
REV POWER (PALO VERDE) SERIES 2008A (LOC: BARCLAYS BANK PLC)		0.02%		01/07/16	8,800,000	8,800,000
REV POWER (PALO VERDE) SERIES 2008B (LOC: BARCLAYS BANK PLC)		0.02%		01/07/16	2,100,000	2,100,000
REV POWER SERIES 2009-2 (LOC: WELLS FARGO BANK NA)		0.01%		01/07/16	4,980,000	4,980,000
UNIVERSITY OF CALIFORNIA
REV HEALTHCARE (UNIVERSITY OF CALIF MEDICAL CENTER) SERIES 2007C2 (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.01%		01/07/16	20,750,000	20,750,000
REV HEALTHCARE (UNIVERSITY OF CALIF MEDICAL CENTER) SERIES 2013J (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	15,505,000	15,505,000
REV HOSPITAL (UNIVERSITY OF CALIF MEDICAL CENTER) SERIES 2013J (LIQ: BARCLAYS BANK PLC)	a	0.02%		01/07/16	20,850,000	20,850,000
REV SCHOOL SERIES 2009O (LIQ: CITIBANK NA)	a	0.01%		01/07/16	3,500,000	3,500,000
REV UNIVERSITY SERIES 2009Q (LIQ: BARCLAYS BANK PLC)	a	0.02%		01/07/16	6,665,000	6,665,000
REV UNIVERSITY SERIES 2012G (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	4,695,000	4,695,000
REV UNIVERSITY SERIES 2013AF (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	6,500,000	6,500,000
REV UNIVERSITY SERIES 2013AI (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	1,900,000	1,900,000
REV UNIVERSITY SERIES 2013AI (LIQ: STATE STREET BANK AND TRUST COMPANY)	a	0.01%		01/07/16	10,665,000	10,665,000
REV UNIVERSITY SERIES 2014AM (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	5,985,000	5,985,000
REV UNIVERSITY SERIES 2014AM (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	7,600,000	7,600,000
REV UNIVERSITY SERIES 2015I (LIQ: JPMORGAN CHASE BANK NA)	a	0.02%		01/07/16	9,600,000	9,600,000
WEST VY MISSION CMNTY COLLEGE DIST CALIF
GO SERIES 2015B (LIQ: MORGAN STANLEY BANK NA)	a	0.02%		01/07/16	8,500,000	8,500,000

See financial notes 29

Schwab California Municipal Money Fund

Portfolio Holdings continued

Issuer Type of Security, Series	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WESTMINSTER CALIF REDEV AGY
REV HEALTHCARE (BROOKHURST ROYALE LLC) SERIES 2000 A (LOC: MUFG UNION BANK NA)		0.10%		01/07/16	5,335,000	5,335,000
YOSEMITE CALIF CMNTY COLLEGE DIST
GO SERIES 2008C (LIQ: BANK OF AMERICA NA)	a	0.05%		01/07/16	8,000,000	8,000,000
Total Variable-Rate Securities
(Cost $4,605,661,156)						4,605,661,156

End of Investments.

At 12/31/15, the tax basis cost of the fund's investments was $6,849,502,528.

a	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $1,697,833,156 or 23.7% of net assets.

AGY —	Agency
APPR/TOB —	Tobacco appropriation
ARPT —	Airport
COP —	Certificate of participation
EDL —	Education
FACS —	Facilities
FING —	Financing
GO —	General obligation
GTY —	Guaranty agreement
HBR —	Harbor
HOUS SINGL —	Single-family housing
HSG —	Housing
IDB —	Industrial development bond
IMPT —	Improvement
INDL —	Industrial
INDPT —	Independent
LIQ —	Liquidity agreement
LOC —	Letter of credit
MTG —	Mortgage
MULTI FAM —	Multi-family
MUN —	Municipal
PCR —	Pollution control revenue
PFC —	Passenger facility charge
REV —	Revenue
SAN —	Sanitation
SCH DIST —	School district
SUBN —	Suburban
UN —	Union
UNI —	Unified

30 See financial notes

Schwab California Municipal Money Fund

Statement of

Changes in Net Assets

For the current and prior report periods

Operations
	1/1/15-12/31/15		1/1/14-12/31/14
Net investment income		$701,827	$683,187
Net realized gains	+	2,185,694	424,035
Increase in net assets from operations		2,887,521	1,107,222
Distributions to Shareholders
Distributions from net investment income
Sweep Shares		(629,344)	(611,463)
Value Advantage Shares	+	(72,483)	(71,724)
Total distributions from net investment income		(701,827)	(683,187)
Distributions from net realized gains
Sweep Shares		(1,136,983)	(178,767)
Value Advantage Shares	+	(119,090)	(21,417)
Total distributions from net realized gains		(1,256,073)	(200,184)
Total distributions		(1,957,900)	(883,371)
Transactions in Fund Shares
Shares Sold¹
Sweep Shares		15,052,744,828	15,749,270,794
Value Advantage Shares	+	146,760,892	128,382,254
Total shares sold		15,199,505,720	15,877,653,048
Shares issued in connection with merger²
Value Advantage Shares		—	108,254,918
Total shares issued in connection with merger		—	108,254,918
Shares Reinvested¹
Sweep Shares		1,751,066	777,917
Value Advantage Shares	+	172,266	84,015
Total shares reinvested		1,923,332	861,932
Shares Redeemed¹
Sweep Shares		(15,021,631,893)	(15,392,918,682)
Value Advantage Shares	+	(240,381,725)	(216,552,816)
Total shares redeemed		(15,262,013,618)	(15,609,471,498)
Net transactions in fund shares		(60,584,566)	377,298,400
Net Assets
Beginning of period		7,210,109,331	6,832,534,673
Total increase or decrease	+	(59,654,945)	377,574,658
End of period		$7,150,454,386	$7,210,109,331

¹	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
²	Effective September 26, 2014, all the assets and liabilities of the Schwab California AMT Tax-Free Money Fund (totaling a net value of $108,307,325) were transferred to the Schwab California Municipal Money Fund. (See financial note 9)

See financial notes 33

Schwab California Municipal Money Fund

Financial Notes

1. Business Structure of the Funds:

Schwab California Municipal Money Fund is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:

The Charles Schwab Family of Funds (organized October 20, 1989)	Schwab Municipal Money Fund™
Schwab Money Market Fund™	Schwab AMT Tax-Free Money Fund™
Schwab Government Money Fund™	Schwab California Municipal Money Fund
Schwab U.S. Treasury Money Fund™	Schwab New York Municipal Money Fund™
Schwab Treasury Obligations Money Fund™	(formerly Schwab New York AMT Tax-Free Money Fund)
Schwab Value Advantage Money Fund^®	Schwab New Jersey Municipal Money Fund™
Schwab Advisor Cash Reserves^®	(formerly Schwab New Jersey AMT Tax-Free Money Fund)
Schwab Cash Reserves™	Schwab Pennsylvania Municipal Money Fund™
Schwab Retirement Advantage Money Fund^®	Schwab Massachusetts Municipal Money Fund™
Schwab Investor Money Fund^®	(formerly Schwab Massachusetts AMT Tax-Free Money Fund)

Schwab California Municipal Money Fund offers two share classes: Sweep Shares and Value Advantage Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

2. Significant Accounting Policies:

(a) Security Valuation:

Schwab California Municipal Money Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

The three levels of the fair value hierarchy are as follows:

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

(b) Accounting Policies for certain Portfolio Investments (if held):

(d) Investment Income:

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

Schwab California Municipal Money Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(f) Distributions to Shareholders:

(g) Custody Credit:

(h) Accounting Estimates:

(i) Federal Income Taxes:

(j) Indemnification:

3. Credit and Liquidity Enhancements:

A substantial portion of the fund’s investments are in securities with credit enhancements and/or liquidity enhancements from financial institutions or corporations. These enhancements are employed by the issuers of the securities to reduce credit risk and provide liquidity for the purchaser. The following table provides detail on the approximate percentage of the fund’s investments in securities with these types of enhancements, as well as the name of the entity providing the largest proportion of enhancements in the fund.

% of investments in securities with credit enhancements or liquidity enhancements	79%
Largest % of investments in securities with credit enhancements or liquidity enhancements from a single institution	10% (JP Morgan Chase Group)

For additional information, please refer to the fund’s Portfolio Holdings. Investments with credit enhancements are tickmarked as letter of credit “LOC” and/or liquidity agreement “LIQ”, respectively, along with the institution providing the enhancement.

Schwab California Municipal Money Fund

Financial Notes (continued)

4. Risk Factors:

Investment Risk. An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of a shareholder’s investment at $1.00 per share, it is possible to lose money by investing in the fund.

Credit Risk. The fund is subject to the risk that a decline in the credit quality of a portfolio investment could cause the fund to lose money or underperform. The fund could lose money if the issuer of a portfolio investment fails to make timely principal or interest payments or if a guarantor or liquidity provider of a portfolio investment fails to honor its obligations. For fixed rate investments, negative perceptions of the ability of an issuer, guarantor or liquidity provider to make payments or otherwise honor its obligations, as applicable, could also cause the price of that investment to decline. The credit quality of the fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause the fund’s share price or yield to fall. The fund's investments in securities with credit or liquidity enhancements provided by foreign entities may involve certain risks that are greater than those associated with investments in securities with credit or liquidity enhancements provided by U.S. entities. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Credit and Liquidity Enhancements Risk. The fund may invest in securities with credit or liquidity enhancements provided by a bank or other financial institution, and the existence and nature of such enhancements may be a significant factor in the investment adviser’s decision-making process. Generally, these enhancements are employed by the issuers of the securities to reduce credit risk and provide enhanced or back-up liquidity for purchasers, such as the fund. Adverse developments affecting these banks and financial institutions could therefore have a negative effect on the value of the fund’s holdings. For example, a rating agency downgrade of a credit or liquidity enhancement provider may adversely affect the value of securities held by the fund. Any decline in the value of the securities held by the fund could cause the fund’s share price or yield to fall. To the extent that a portion of the fund’s underlying investments are enhanced by the same bank or financial institution, these risks may be increased.

State Risk. The fund invests primarily in securities issued by the State of California and its municipalities. Any reduction in the credit ratings of obligations of these issuers could adversely affect the market values and marketability of such securities, and, consequently, the value of the fund’s portfolio. Further, the fund’s share price and performance could be affected by local, state and regional factors, including erosion of the tax base and changes in the economic climate. Certain California constitutional amendments, legislative measures, executive orders, administrative regulations and voter initiatives could result in adverse consequences affecting the State of California and/or its municipalities. The possibility exists that a natural disaster, including an earthquake, could create a major dislocation of the California economy and significantly affect the ability of state and local

Schwab California Municipal Money Fund

Financial Notes (continued)

4. Risk Factors (continued):

governments to raise money to pay principal and interest on their municipal securities. National governmental actions, such as the elimination of tax-exempt status, also could affect performance. In addition, a municipality or municipal project that relies directly or indirectly on national governmental funding mechanisms may be negatively affected by the national government’s current budgetary constraints.

Investment Concentration Risk. To the extent that the fund invests a substantial portion of its assets in municipal securities financing similar projects, the fund may be more sensitive to adverse economic, business or political developments affecting those projects. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of materials needed for the project, or a declining need for the project, would likely affect all similar projects and the overall municipal securities market.

Taxable Determinations Risk. Some of the fund’s income could be taxable. If certain types of investments the fund buys as tax-exempt are later ruled to be taxable, a portion of the fund’s income could become taxable. This risk, although generally considered low, is somewhat higher for investments that have been structured as municipal money market securities than for investments in other types of municipal money market securities. Any defensive investments in taxable securities could generate taxable income. Also, some types of municipal securities produce income that is subject to the federal alternative minimum tax.

Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.

5. Affiliates and Affiliated Transactions:

For its advisory and administrative services to the fund, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:

Average Daily Net Assets
First $1 billion	0.35%
More than $1 billion but not exceeding $10 billion	0.32%
More than $10 billion but not exceeding $20 billion	0.30%
More than $20 billion but not exceeding $40 billion	0.27%
Over $40 billion	0.25%

Schwab California Municipal Money Fund

Financial Notes (continued)

5. Affiliates and Affiliated Transactions (continued):

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, Schwab), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund. Schwab serves as the fund’s paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab). All shareholder service fees paid by the fund to Schwab in its capacity as the fund’s paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees. The Plan also enables the Sweep Shares of the fund to pay Schwab for certain sweep administration services, such as processing of automatic purchases and redemptions it provides to fund shareholders invested in the fund.

Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the fund), and the fund will pay no more than the amounts listed in the table below of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. Sweep shares of the fund are also subject to an annual sweep administration fee of up to the amount set forth below. The sweep administration fee paid to Schwab is based on the average daily net asset value of the fund's shares owned by shareholders holding shares through Schwab. Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payments received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

	Shareholder Service Fees	Sweep Administration Fees
Sweep Shares	0.25%	0.10%
Value Advantage Shares	0.22%	n/a

Contractual Expense Limitation

Sweep Shares	0.60%
Value Advantage Shares	0.45%

In addition, effective January 1, 2015 through December 31, 2015, CSIM and its affiliates agreed to waive an additional amount of the fund's expenses equal to 0.005% of the fund's average daily net assets.

During the period ended December 31, 2015, the fund waived $42,526,844 in expenses of which $6,505,643 was waived in accordance with the contractual expense limitation agreement noted above.

Voluntary Yield Waiver/Reimbursement

CSIM and its affiliates also may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for the fund. Effective November 9, 2015, the ability of CSIM and its affiliates to recapture from the fund for any fees waived under the voluntary yield waiver has been terminated.

The fund may engage in direct transactions with certain other Schwab Funds when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended December 31, 2015, the fund's aggregate security transactions with other Schwab Funds were $97,250,000.

Schwab California Municipal Money Fund

Financial Notes (continued)

6. Board of Trustees:

7. Borrowing from Banks:

8. Federal Income Taxes:

As of December 31, 2015, the fund had distributable earnings on a tax-basis of $460 in undistributed ordinary income.

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2015, the fund had no capital loss carryforwards.

The tax-basis components of distributions paid during the current and prior fiscal years were as follows:

Current period distributions
Tax-exempt income	$701,827
Ordinary income	17,481
Long-term capital gains	1,238,592
Prior period distributions
Tax-exempt income	$683,187
Ordinary income	76,123
Long-term capital gains	124,061

Schwab California Municipal Money Fund

Financial Notes (continued)

8. Federal Income Taxes (continued):

Capital shares	$929,161
Net realized capital gains and losses	(929,161)

9. Reorganization:

Under a plan of reorganization adopted by the trust, all of the assets and liabilities of the Schwab California AMT Tax-Free Money Fund were transferred to the Schwab California Municipal Money Fund. The reorganization, which qualified as a tax-free exchange for federal income tax purposes, was completed at the close of business on September 26, 2014. The reorganization is intended to achieve economies of scale on the two funds, which have substantially the same investment objectives. The following is a summary of shares outstanding, net assets, net asset value per share issued and unrealized appreciation/depreciation immediately before and after the reorganization.

	Before Reorganization		After Reorganization
	Schwab California Municipal Money Fund	Schwab California AMT Tax-Free Money Fund	Schwab California Municipal Money Fund
Shares:
Sweep Shares	6,024,114,713	—	6,024,114,713
Value Advantage Shares	661,282,027	108,254,918	769,536,945
Net Assets:
Sweep Shares	$6,025,290,932	—	$6,025,290,932
Value Advantage Shares	$661,414,980	$108,307,325	$769,722,305
Net Assets Value:
Sweep Shares	$1.00	—	$1.00
Value Advantage Shares	$1.00	$1.00	$1.00
Net unrealized appreciation (depreciation)	—	—	—
Market value of investments	$6,684,594,163	$103,641,266	$6,788,235,429
Cost of investments	$6,684,594,163	$103,641,266	$6,788,235,429

Assuming the acquisition had been completed on January 1, 2014, the beginning of the fiscal year of Schwab California Municipal Money Fund, Schwab California Municipal Money Fund’s pro-forma results of operations for the period ended December 31, 2014, would have been as follows:

Net investment income	$722,394*
Net realized gains on investments	$435,483
Net unrealized appreciation (depreciation) on investments	—
Net increase in net assets resulting from operations	$1,157,877

*Amount includes $29,967 of pro-forma eliminated expenses.

Schwab California Municipal Money Fund

Financial Notes (continued)

9. Reorganization (continued):

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Schwab California AMT Tax-Free Money Fund that have been included in Schwab California Municipal Money Fund’s Statement of Operation since September 27, 2014.

10. Money Market Fund Reform:

11. Subsequent Events:

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Schwab California Municipal Money Fund

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab California Municipal Money Fund (one of the funds constituting The Charles Schwab Family of Funds, hereafter referred to as the “Fund”) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
February 16, 2016

Shareholder Vote Results (Unaudited)

Proposal – To elect each of the following individuals as trustees of the Trust:	For	Withheld
Walter W. Bettinger II	114,958,848,042.874	28,369,951,694.105
Marie A. Chandoha	138,293,183,971.888	5,035,615,765.091
Joseph R. Martinetto	138,343,234,171.004	4,985,565,565.975
Robert W. Burns	138,801,166,597.632	4,527,633,139.347
John F. Cogan	135,183,710,424.042	8,145,089,312.937
Stephen T. Kochis	138,674,668,915.137	4,654,130,821.842
David L. Mahoney	138,421,149,206.830	4,907,650,530.149
Kiran M. Patel	138,545,135,567.241	4,783,664,169.738
Kimberly S. Patmore	138,722,452,525.210	4,606,347,211.769
Charles A. Ruffel	138,803,994,873.579	4,524,804,863.400
Gerald B. Smith	138,636,013,914.434	4,692,785,822.545
Joseph H. Wender	138,440,840,243.816	4,887,959,493.163

Trustees and Officers

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009;The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.	96	Director, PS Business Parks, Inc. (2005 – 2012).
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – 2015).	96	Director, Gilead Sciences, Inc. (2005 – present)
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – April 2012).	96	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	96	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	96	Director, KLA-Tencor Corporation (2008 – present)

Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Consultant, Patmore Management Consulting (management consulting) (2008 – present).	96	None
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015).	96	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present).	96	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	96	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) Lead Independent Director and Chair of Audit Committee, OUTFRONT Media Inc. (2014 – present)

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation (Oct. 2008 – present); President and Chief Executive Officer (Oct. 2008 – present), Director (May 2008 – present), Charles Schwab & Co., Inc.; Director, Charles Schwab Bank (Apr. 2006 – present); and Director, Schwab Holdings, Inc. (May 2008 – present).	96	Director, The Charles Schwab Corporation (2008 – present)

Interested Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Marie A. Chandoha² 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).	96	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Senior Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (July 2015 – present); Executive Vice President and Chief Financial Officer of The Charles Schwab Corporation and Charles Schwab & Co., Inc. (May 2007 – July 2015); Director, Charles Schwab & Co., Inc. (May 2007 – present); Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director, Executive Vice President and Chief Financial Officer, Schwab Holdings, Inc. (May 2007 – present).	96	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2013)	Treasurer and Chief Financial Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Jan. 2016 – present); Assistant Treasurer, Schwab Funds and Laudus Funds (Dec. 2013 – Dec. 2015), Schwab ETFs (Nov. 2013 – Dec. 2015); Vice President, Charles Schwab Investment Management, Inc. (Oct. 2013 – present); Executive Director, J.P. Morgan Investor Services (Apr. 2011 – Sept. 2013); Assistant Treasurer, Massachusetts Financial Service Investment Management (May 2005 – Mar. 2011).

Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – Dec. 2015); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – Dec. 2015) and Schwab ETFs (Oct. 2009 – Dec. 2015); Director, Charles Schwab Worldwide Funds, plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005; Schwab Strategic Trust since 2009)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Ms. Chandoha, and Mr. Martinetto are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

Alternative Minimum Tax (AMT) A federal income tax designed to limit the extent to which high-income taxpayers (including individuals, estates, trusts and corporations) can benefit from certain deductions and exemptions. For example, some types of income that are exempt from regular federal income tax are not exempt from the AMT.

bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed income securities” or “debt securities.”

An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.

bond anticipation notes Obligations sold by a state or local government on a short-term basis in anticipation of the issuance of a longer-term bond in the future.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly regulate the credit quality of the securities a money market fund can buy.

credit risk The risk that a debt issuer may be unable to pay interest or repay principal to its debt holders.

dollar-weighted average maturity See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all interest income is reinvested in additional shares of the fund.

escrow The issuer of an escrowed bond deposits funds in a trust which are verified by a third party to be sufficient to pay the bond’s principal and interest at maturity or at a call date. The funds in the trust are invested in high quality investments, typically US Treasury and Agency obligations which mature at or prior to the bond’s maturity or call date.

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

fixed rate notes A security with a fixed rate or coupon and a short maturity (typically within thirteen months). For example, bond, revenue or tax anticipation notes.

Guaranty (GTY) An instrument issued by a financial institution to unconditionally guarantee the repayment of a security’s principal and interest at maturity. The security will typically carry the rating of the institution which provides the guaranty rather than that of the security’s issuer.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

Letter of Credit (LOC) An instrument issued by a financial institution which unconditionally guarantees the repayment of principal and interest at maturity and upon demand. Many securities known as variable-rate demand obligations (VRDOs) carry LOCs to provide a source of payment to allow the holder of the security to demand repayment after a pre-defined number of days, typically daily or weekly.

Liquidity (LIQ) A liquidity facility is issued by a financial institution to improve the ability of the issuer of the security to meet demands for payment. Many securities known as variable-rate demand obligations (VRDOs) carry liquidity facilities to provide a source of payment to allow the holder of the security to demand repayment after a pre-defined number of days, typically daily or weekly. The issuer of the security must maintain strong long-term ratings and credit characteristics while the liquidity facility is in effect. If the issuer fails to meet certain predetermined financial conditions, the financial institution may terminate its obligation without notice.

money market securities High-quality, short-term debt securities that may be issued by states and local governments and their agencies. Money market securities must have an effective maturity of no longer than 397 days. Examples include bond and tax anticipation notes, commercial paper, variable-rate demand obligations and tender option bonds.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

revenue anticipation notes Obligations that are issued in expectation of the receipt of revenue, such as income taxes, property taxes, etc.

taxable-equivalent yield The yield an investor would need to get from a taxable investment in order to match the yield paid by a given tax-exempt investment, once the effect of all applicable taxes is taken into account. For example, if your tax rate were 25%, a tax-exempt investment paying 4.5% would have a taxable-equivalent yield for you of 6.0%
(4.5% ÷ [1 – 0.25%] = 6.0%).

tax anticipation notes Notes that typically are sold to finance the cash flow needs of municipalities in anticipation of the receipt of taxes on a future date.

tender option bond A security which is created by a financial institution by combining a long-term municipal bond with a liquidity facility which converts the long-term bond into a money-market eligible security. Tender option bonds are issued as section 144A securities.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

variable rate demand preferred shares (VRDP) Variable rate demand securities that are issued by single state or national closed-end municipal bond funds, which, in turn, invest primarily in portfolios of tax-exempt municipal bonds. It is anticipated that the interest on VRDPs will be exempt from federal income tax. These securities are considered “municipal money market securities” for purposes of the fund’s investment policy as stated in the prospectus.

weighted average life (WAL) For money market mutual funds as per rule 2a-7, the weighted average life calculation takes into account either the final maturity date for each security held in the portfolio or, when relevant, the date of the next demand feature (when the fund is scheduled to receive payment of principal and interest after a demand). Money funds are required to maintain a weighted average life of no more than 120 days. Weighted average life for all Schwab money market funds is available in each fund’s monthly schedule of portfolio holdings at www.schwabfunds.com/prospectus and also available in each fund’s Form N-MFP on the SEC’s website at www.sec.gov 60 days after the end of the month to which the information pertains.

yield The income paid out by an investment, expressed as a percentage of the investment’s market value.

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

How We Collect Information About You

We collect personal information about you in a number of ways.

• APPLICATION AND REGISTRATION
INFORMATION.

• TRANSACTION AND EXPERIENCE
INFORMATION.

• WEBSITE USAGE.

When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These

tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:

• to help us process transactions for your account;

• when we use other companies to provide services for us, such as printing and mailing your account statements;

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Schwab Funds^® direct investors: 1-800-407-0256

Proxy Voting Policies, Procedures and Results

The Schwab Funds Family^®

Stock Funds

Asset Allocation Funds

Bond Funds

Schwab Money Funds

¹	Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although many seek to preserve the value of your investment at $1 per share, it is possible to lose money.

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the fund covered in this report.

Dear Shareholder,

Schwab Cash Reserves (the Fund) is designed to offer investors stability, liquidity, and yield. The Fund invests in high-quality, short-term money market securities issued by U.S. and foreign issuers. The Fund is also actively managed, benefiting from extensive credit research and professional money management.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about Schwab Cash Reserves, please continue reading this report. You can also find further details about this fund by visiting our website at www.csimfunds.com, which now includes six months of daily historical data on fund liquidity, NAV, and asset flows. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For the 12-month reporting period ended December 31, 2015, yields on taxable money market securities remained at historically low levels.

2Schwab Cash Reserves

Fund Management

Schwab Cash Reserves3

Schwab Cash Reserves

Schwab Cash Reserves (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market instruments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, certificates of deposit, repurchase agreements, variable-rate debt securities, and obligations issued by the U.S. government or its agencies and instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved. In anticipation of the impending rate hike, the weighted average maturity (WAM) of the fund was generally reduced over the reporting period. Reflecting these strategies, the fund’s WAM started the reporting period at 46 days and ended at 36 days.

As of 12/31/15:

Portfolio Composition By Maturity¹
% of investments
1-7 Days	42.2%
8-30 Days	19.0%
31-60 Days	9.3%
61-90 Days	16.0%
91-180 Days	13.2%
More than 180 Days	0.3%
Total	100.0%

Statistics
Weighted Average Maturity²	36 Days
Credit Quality Of Holdings³ % of portfolio	100% Tier 1

Portfolio Composition by Security Type
% of investments
Commercial Paper
Asset-Backed	4.4%
Financial Company	10.4%
Other	2.1%
Certificate Of Deposit	42.2%
Treasury Debt	2.0%
Other Instrument	2.6%
Variable Rate Demand Note	0.1%
Other Note	4.2%
Repurchase Agreement
Government Agency	4.8%
Treasury	22.2%
Other	5.0%
Total	100.0%

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

¹	As shown in the Portfolio Holdings section of the shareholder report.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	Tier 1 securities are rated in the highest short-term rating category by two nationally recognized statistical rating organizations (NRSROs), or by one if only one NRSRO has rated the securities, or, if unrated, determined to be of comparable quality by CSIM pursuant to guidelines adopted by the Board of Trustees. Money market fund shares and U.S. government securities are also Tier 1 securities. The fund uses NRSRO credit ratings from Standard & Poor’s Corp., Moody’s Investors Service, Fitch Ratings, and/or DBRS. The fund may use different ratings provided by other rating agencies for purposes of determining compliance with the fund’s investment policies. The fund itself has not been rated by an independent credit rating agency.

4Schwab Cash Reserves

Performance and Fund Facts as of 12/31/15

Seven-Day Average Yield Trend for previous 12 months

Seven-Day Yields

	Schwab Cash Reserves
	Sweep Shares
Ticker Symbol	SWSXX
Minimum Initial Investment	*
Seven-Day Yield¹	0.07%
Seven-Day Yield–Without Contractual Expense Limitation²	-0.01%
Seven-Day Effective Yield¹	0.07%

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

*	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Yield reflects the effect of the fund’s agreement with the investment adviser and its affiliates to limit the fund's total annual operating expenses to certain levels (contractual expense limitation). In addition, the investment adviser and its affiliates have voluntarily waived expenses in excess of the contractual expense limitation to maintain a positive net yield for the fund (voluntary yield waiver). Without the contractual expense limitation and the voluntary yield waiver, the fund’s yield would have been lower. For additional details, see financial note 4.
²	Yield does not reflect the effect of the contractual expense limitation, but does reflect the effect of the voluntary yield waiver. The voluntary yield waiver added 0.25% to the seven-day yield.

Schwab Cash Reserves5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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

	Expense Ratio¹ (Annualized)	Beginning Account Value at 7/1/15	Ending Account Value (Net of Expenses) at 12/31/15	Expenses Paid During Period² 7/1/15–12/31/15
Schwab Cash Reserves
Actual Return	0.25%	$1,000.00	$1,000.30	$1.26
Hypothetical 5% Return	0.25%	$1,000.00	$ 1,023.94	$1.28

¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
²	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

6Schwab Cash Reserves

Schwab Cash Reserves

Financial Statements

Financial Highlights

	1/1/15– 12/31/15	1/1/14– 12/31/14	1/1/13– 12/31/13	1/1/12– 12/31/12	1/1/11– 12/31/11
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.00 ¹^,²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	(0.00) ²	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.06%	0.06%	0.06%	0.06%	0.06%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.22% ³	0.16% ³	0.20% ³	0.23% ³^,⁴	0.20% ³
Gross operating expenses	0.70%	0.70%	0.70%	0.70% ⁴	0.71%
Net investment income (loss)	0.06%	0.06%	0.06%	0.06%	0.06%
Net assets, end of period (x 1,000,000)	$40,678	$39,326	$39,452	$37,498	$34,077

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁴

The ratio of gross operating expenses would have been 0.71%, if the State filing fee reimbursement had not been included. There was no impact on the ratio of net operating expenses.

See financial notes 7

Schwab Cash Reserves

Portfolio Holdings as of December 31, 2015

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

Holdings by Category		Cost ($)	Value ($)
47.7%	Fixed-Rate Obligations	19,392,245,550	19,392,245,550
20.3%	Variable-Rate Obligations	8,262,413,643	8,262,413,643
32.0%	Repurchase Agreements	13,010,539,209	13,010,539,209
100.0%	Total Investments	40,665,198,402	40,665,198,402
0.0%	Other Assets and Liabilities, Net		12,765,053
100.0%	Net Assets		40,677,963,455

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 47.7% of net assets
Asset-Backed Commercial Paper 4.4%
BENNINGTON STARK CAPITAL COMPANY LLC	a,b	0.45%		01/11/16	104,000,000	103,987,000
CAFCO LLC	a,b	0.50%		05/04/16	162,000,000	161,721,000
CHARTA LLC	a,b	0.35%		02/23/16	63,000,000	62,967,538
	a,b	0.41%		03/01/16	50,000,000	49,965,833
	a,b	0.51%		03/15/16	21,000,000	20,977,985
	a,b	0.47%		04/14/16	27,000,000	26,963,340
	a,b	0.45%		04/25/16	50,000,000	49,928,125
CIESCO LLC	a,b	0.46%		02/02/16	38,000,000	37,984,462
COLLATERALIZED COMMERCIAL PAPER CO LLC	a	0.52%		04/01/16	136,000,000	135,821,236
COLLATERALIZED COMMERCIAL PAPER II CO LLC	a,b	0.52%		04/01/16	102,000,000	101,865,927
CRC FUNDING LLC	a,b	0.46%		02/02/16	44,000,000	43,982,009
	a,b	0.51%		03/08/16	37,000,000	36,964,881
NIEUW AMSTERDAM RECEIVABLES CORP	a,b	0.30%		01/28/16	58,000,000	57,986,950
OLD LINE FUNDING LLC	a,b	0.47%		04/20/16	10,000,000	9,985,639
	a,b	0.51%		05/16/16	7,000,000	6,986,513
RIDGEFIELD FUNDING COMPANY LLC	a,b	0.42%		02/02/16	13,000,000	12,995,147
	a,b	0.45%		03/01/16	25,000,000	24,981,250
	a,b	0.60%		03/07/16	257,000,000	256,717,300
SHEFFIELD RECEIVABLES CORP	a,b	0.41%		02/03/16	101,000,000	100,962,041
	a,b	0.41%		02/04/16	63,000,000	62,975,605
	a,b	0.41%		02/08/16	110,000,000	109,952,394

8 See financial notes

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	a,b	0.42%		02/17/16	140,000,000	139,923,233
	a,b	0.42%		02/18/16	79,000,000	78,955,760
THUNDER BAY FUNDING LLC	a,b	0.46%		01/19/16	41,000,000	40,990,570
VERSAILLES COMMERCIAL PAPER LLC	a,b	0.39%		02/12/16	34,000,000	33,984,530
VICTORY RECEIVABLES CORP	a,b	0.43%		01/22/16	2,000,000	1,999,498
						1,772,525,766
Financial Company Commercial Paper 6.6%
BANK OF NOVA SCOTIA	b	0.40%		02/22/16	25,251,000	25,236,410
	b	0.50%		05/09/16	50,000,000	49,910,417
	b	0.50%		05/12/16	259,000,000	258,525,167
BNP PARIBAS SA (DUBLIN BRANCH)	b	0.51%		04/05/16	64,000,000	63,913,867
	b	0.51%		04/14/16	27,000,000	26,960,220
BPCE SA	b	0.41%		02/10/16	73,000,000	72,967,150
	b	0.65%		03/31/16	134,000,000	133,782,250
DBS BANK LTD	b	0.47%		03/24/16	32,000,000	31,965,324
HSBC USA INC	b	0.47%		04/26/16	140,000,000	139,787,978
ING US FUNDING LLC	a	0.43%		03/14/16	254,000,000	253,778,526
	a	0.44%		03/14/16	106,000,000	105,905,424
	a	0.61%		04/01/16	337,000,000	336,480,365
MACQUARIE BANK LTD	b	0.33%		01/22/16	18,000,000	17,996,535
	b	0.33%		01/25/16	11,750,000	11,747,415
	b	0.34%		02/01/16	25,000,000	24,992,680
	b	0.43%		02/22/16	6,000,000	5,996,273
	b	0.70%		03/17/16	138,000,000	137,796,067
NATIONWIDE BUILDING SOCIETY	b	0.63%		03/15/16	35,000,000	34,954,675
NRW BANK	b	0.37%		01/06/16	210,000,000	209,989,354
	b	0.35%		01/08/16	93,000,000	92,993,671
	b	0.37%		01/08/16	180,000,000	179,987,225
OVERSEA-CHINESE BANKING CORPORATION LIMITED		0.52%		03/03/16	6,000,000	5,994,627
SOCIETE GENERALE SA	b	0.33%		01/04/16	257,000,000	256,992,932
SWEDBANK AB		0.39%		01/26/16	60,000,000	59,983,750
UNITED OVERSEAS BANK LTD	b	0.39%		01/07/16	143,000,000	142,990,467
	b	0.39%		01/08/16	23,000,000	22,998,211
						2,704,626,980
Other Commercial Paper 2.1%
COCA-COLA CO	b	0.39%		01/21/16	94,650,000	94,629,493
	b	0.38%		01/22/16	21,000,000	20,995,345
	b	0.39%		01/22/16	100,000,000	99,977,250
	b	0.51%		03/17/16	210,000,000	209,773,900
	b	0.50%		05/18/16	50,000,000	49,904,167
	b	0.68%		06/02/16	27,000,000	26,921,970

See financial notes 9

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
TOYOTA MOTOR CREDIT CORP		0.37%		01/21/16	252,000,000	251,948,200
		0.38%		02/25/16	100,000,000	99,941,944
						854,092,269
Certificates of Deposit 29.6%
ABBEY NATIONAL TREASURY SERVICES PLC (STAMFORD BRANCH)	a	0.40%		02/16/16	392,000,000	392,000,000
BANK OF MONTREAL (CHICAGO BRANCH)		0.33%		01/22/16	35,000,000	35,000,000
		0.62%		03/21/16	100,000,000	100,000,000
		0.63%		03/24/16	37,000,000	37,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)		0.40%		02/08/16	47,000,000	47,000,000
BANK OF THE WEST		0.34%		02/08/16	149,000,000	149,000,000
BANK OF TOKYO-MITSUBISHI UFJ LTD (NEW YORK BRANCH)		0.30%		01/26/16	280,000,000	280,000,000
		0.50%		02/09/16	117,000,000	117,000,000
		0.51%		04/05/16	182,000,000	182,000,000
		0.51%		04/11/16	83,000,000	83,000,000
		0.51%		04/13/16	77,000,000	77,000,000
		0.51%		04/25/16	23,000,000	23,000,000
BARCLAYS BANK PLC (NEW YORK BRANCH)		0.60%		02/26/16	263,000,000	263,000,000
		0.60%		03/28/16	119,000,000	119,000,000
		0.92%		05/23/16	113,000,000	113,000,000
BNP PARIBAS FORTIS SA/NV (NEW YORK BRANCH)		0.61%		04/01/16	223,000,000	223,000,000
BNP PARIBAS SA (SAN FRANCISCO BRANCH)		0.52%		03/01/16	280,000,000	280,000,000
BRANCH BANKING AND TRUST COMPANY		0.33%		01/06/16	154,000,000	154,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		0.39%		01/08/16	27,000,000	27,000,000
		0.52%		03/04/16	108,000,000	108,000,000
		0.55%		03/14/16	50,000,000	50,000,000
CITIBANK NA (NEW YORK BRANCH)		0.38%		01/05/16	123,000,000	123,000,000
		0.40%		01/11/16	550,000,000	550,000,000
COMMONWEALTH BANK OF AUSTRALIA (LONDON BRANCH)		0.40%		03/01/16	351,000,000	351,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (NEW YORK BRANCH)		0.30%		01/07/16	21,000,000	21,000,000
		0.39%		02/10/16	6,000,000	6,000,000
		0.67%		03/29/16	92,000,000	92,000,000
CREDIT AGRICOLE SA (LONDON BRANCH)		0.40%		02/01/16	202,000,000	202,000,000
		0.46%		03/01/16	120,000,000	120,000,000
CREDIT SUISSE AG (NEW YORK BRANCH)		0.58%		02/18/16	92,000,000	92,000,000
		0.59%		03/08/16	108,000,000	108,000,000
		0.57%		03/29/16	158,000,000	158,000,000
		0.59%		04/01/16	209,000,000	209,000,000
ING BANK NV (AMSTERDAM BRANCH)		0.54%		05/02/16	108,000,000	108,000,000
LLOYDS BANK PLC (NEW YORK BRANCH)		0.52%		02/23/16	44,000,000	44,000,000
		0.65%		03/22/16	28,000,000	28,000,000
		0.50%		04/05/16	88,000,000	88,000,000

10 See financial notes

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
MITSUBISHI UFJ TRUST AND BANKING CORP (NEW YORK BRANCH)		0.42%		01/05/16	140,000,000	140,000,000
		0.40%		01/08/16	108,000,000	108,000,000
		0.42%		01/15/16	21,000,000	21,000,000
		0.40%		01/21/16	241,000,000	241,000,000
		0.40%		01/22/16	176,000,000	176,000,000
		0.40%		01/27/16	14,000,000	14,000,000
		0.42%		02/24/16	8,000,000	8,000,000
		0.50%		04/13/16	12,000,000	12,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		0.36%		02/12/16	5,000,000	5,000,000
		0.54%		03/16/16	181,000,000	181,000,000
		0.50%		03/17/16	393,000,000	393,000,000
NATIONAL AUSTRALIA BANK LIMITED (LONDON BRANCH)		0.30%		02/12/16	13,000,000	13,000,000
NATIONAL BANK OF CANADA (NEW YORK BRANCH)		0.40%		01/04/16	108,000,000	108,000,000
		0.44%		01/15/16	84,000,000	84,000,000
		0.45%		01/19/16	1,000,000	1,000,000
		0.55%		02/18/16	1,000,000	1,000,000
NATIXIS (NEW YORK BRANCH)		0.47%		03/07/16	360,000,000	360,000,000
NORDEA BANK FINLAND PLC (NEW YORK BRANCH)		0.39%		03/01/16	53,000,000	53,000,000
OVERSEA-CHINESE BANKING CORP LTD (NEW YORK BRANCH)		0.18%		01/04/16	190,000,000	190,000,000
		0.18%		01/05/16	8,000,000	8,000,000
		0.24%		01/06/16	70,000,000	70,000,000
		0.40%		01/11/16	76,000,000	76,000,000
		0.37%		02/18/16	134,000,000	134,000,000
		0.41%		03/03/16	19,000,000	19,000,000
RABOBANK NEDERLAND (NEW YORK BRANCH)		0.35%		01/04/16	160,000,000	160,000,000
		0.37%		01/08/16	66,000,000	66,000,000
		0.50%		02/19/16	108,000,000	108,000,000
		0.43%		03/16/16	259,000,000	259,000,000
		0.47%		04/04/16	468,000,000	468,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		0.48%		04/05/16	112,000,000	112,000,000
		0.47%		04/26/16	84,000,000	84,000,000
SOCIETE GENERALE (NEW YORK BRANCH)		0.49%		02/01/16	44,000,000	44,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		0.41%		01/07/16	8,000,000	8,000,000
		0.41%		01/12/16	19,000,000	19,000,000
		0.30%		01/26/16	20,000,000	20,000,000
		0.40%		02/01/16	6,000,000	6,000,102
		0.40%		02/19/16	100,000,000	100,000,000
		0.40%		02/22/16	30,000,000	30,000,433
		0.40%		03/01/16	129,000,000	129,000,000
		0.45%		03/03/16	19,000,000	19,000,000
		0.50%		03/17/16	47,000,000	47,000,000
		0.70%		03/22/16	1,000,000	1,000,000
		0.50%		03/24/16	147,000,000	147,000,000
		0.50%		03/29/16	88,000,000	88,000,000
		0.50%		04/04/16	34,000,000	34,000,000
		0.50%		04/25/16	100,000,000	100,000,000
		0.50%		04/27/16	75,000,000	75,000,000
		0.85%		06/09/16	292,000,000	292,000,000

See financial notes 11

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SUMITOMO MITSUI TRUST BANK LIMITED (NEW YORK BRANCH)		0.33%		02/08/16	12,000,000	12,000,000
		0.35%		02/10/16	53,000,000	53,000,000
		0.38%		02/16/16	316,000,000	316,000,000
		0.43%		02/23/16	5,000,000	5,000,000
		0.65%		03/14/16	295,000,000	295,000,000
		0.65%		03/17/16	40,000,000	40,000,000
		0.68%		03/21/16	22,000,000	22,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)		0.40%		03/01/16	189,000,000	189,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		0.40%		03/01/16	276,000,000	276,000,000
		0.45%		03/28/16	3,000,000	3,000,000
		0.62%		04/25/16	44,000,000	44,000,000
		0.50%		05/20/16	114,000,000	114,000,000
		0.50%		06/01/16	56,000,000	56,000,000
		1.00%		11/07/16	104,000,000	104,000,000
UBS AG (STAMFORD BRANCH)		0.50%		02/03/16	114,000,000	114,000,000
		0.55%		03/01/16	78,000,000	78,000,000
WELLS FARGO BANK NA		0.51%		03/07/16	161,000,000	161,000,000
		0.46%		04/22/16	165,000,000	165,000,000
WESTPAC BANKING CORP (NEW YORK BRANCH)		0.48%		02/08/16	16,000,000	16,000,000
						12,054,000,535
Other Instruments 2.6%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (CAYMAN ISLANDS BRANCH)		0.35%		01/05/16	437,000,000	437,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		0.28%		01/05/16	466,000,000	466,000,000
LLOYDS BANK PLC (NEW YORK BRANCH)		0.26%		01/04/16	138,000,000	138,000,000
						1,041,000,000
Other Notes 2.4%
BANK OF AMERICA NA		0.34%		01/19/16	100,000,000	100,000,000
		0.46%		02/01/16	186,000,000	186,000,000
		0.53%		02/22/16	123,000,000	123,000,000
		0.40%		03/16/16	132,000,000	132,000,000
		0.46%		04/07/16	226,000,000	226,000,000
		0.50%		05/05/16	199,000,000	199,000,000
						966,000,000
Total Fixed-Rate Obligations
(Cost $19,392,245,550)						19,392,245,550

Variable-Rate Obligations 20.3% of net assets
Financial Company Commercial Paper 3.7%
COMMONWEALTH BANK OF AUSTRALIA	b	0.45%	01/12/16	05/12/16	31,000,000	31,000,000
	b	0.63%	01/27/16	06/27/16	300,000,000	300,000,000
	b	0.63%	01/29/16	06/29/16	134,000,000	134,000,000
	b	0.49%	01/08/16	07/08/16	55,000,000	55,000,000

12 See financial notes

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
HSBC BANK PLC	b	0.39%		01/04/16	307,000,000	307,000,000
	b	0.66%	01/25/16	06/23/16	307,000,000	307,000,000
	b	0.63%	01/19/16	07/19/16	24,000,000	23,999,333
	b	0.46%	01/04/16	08/01/16	289,000,000	289,000,000
WESTPAC BANKING CORP	b	0.48%	01/05/16	07/05/16	74,000,000	73,992,873
						1,520,992,206
Certificates of Deposit 12.5%
BANK OF MONTREAL (CHICAGO BRANCH)		0.52%	01/13/16	05/13/16	271,000,000	271,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)		0.55%	01/14/16	07/14/16	189,000,000	189,000,000
BANK OF NOVA SCOTIA (NEW YORK BRANCH)		0.56%	01/15/16	07/15/16	292,000,000	292,000,000
BANK OF TOKYO-MITSUBISHI UFJ LTD (NEW YORK BRANCH)		0.64%	01/11/16	03/10/16	112,000,000	112,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		0.66%	01/26/16	05/26/16	113,000,000	113,000,000
		0.46%	01/11/16	06/10/16	312,000,000	312,000,000
		0.66%	01/28/16	06/28/16	116,000,000	116,000,000
CHASE BANK USA NA		0.68%	01/27/16	07/27/16	67,000,000	67,000,000
		0.50%	01/04/16	08/01/16	356,000,000	356,000,000
ROYAL BANK OF CANADA (NEW YORK BRANCH)		0.38%		01/06/16	236,000,000	236,000,000
		0.53%	01/25/16	02/25/16	75,000,000	75,000,000
		0.45%	01/13/16	04/13/16	414,000,000	414,000,000
		0.45%	01/04/16	08/31/16	125,000,000	125,000,000
		0.48%	01/04/16	10/03/16	243,000,000	243,000,000
STATE STREET BANK AND TRUST COMPANY		0.44%	01/11/16	03/11/16	163,000,000	163,000,000
		0.61%	01/20/16	05/20/16	57,000,000	57,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		0.49%	01/19/16	03/16/16	89,000,000	89,000,000
		0.50%	01/19/16	03/17/16	365,000,000	365,000,000
		0.51%	01/20/16	03/21/16	193,000,000	193,000,000
		0.57%	01/27/16	05/27/16	26,000,000	26,000,000
		0.59%	01/12/16	08/12/16	42,000,000	42,000,000
WELLS FARGO BANK NA		0.41%	01/08/16	02/08/16	54,000,000	54,000,000
		0.42%	01/11/16	02/09/16	82,000,000	82,000,000
		0.55%	01/27/16	02/26/16	150,000,000	150,000,000
		0.37%	01/13/16	05/05/16	43,000,000	43,000,000
		0.56%	01/19/16	05/19/16	28,000,000	28,000,000
		0.55%	01/21/16	05/23/16	2,000,000	2,000,000
		0.63%	01/26/16	05/26/16	250,000,000	250,000,000
WESTPAC BANKING CORP (NEW YORK BRANCH)		0.41%	01/08/16	02/08/16	174,000,000	174,000,000
		0.45%	01/12/16	02/12/16	110,000,000	110,000,000
		0.45%	01/04/16	08/03/16	350,000,000	350,000,000
						5,099,000,000
Treasury Debt 2.1%
UNITED STATES TREASURY		0.31%	01/04/16	01/31/16	264,000,000	263,997,428
		0.33%	01/04/16	07/31/16	170,000,000	170,000,000
		0.34%	01/04/16	01/31/17	200,000,000	199,999,010
		0.43%	01/04/16	10/31/17	200,000,000	199,999,999
						833,996,437

See financial notes 13

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Variable Rate Demand Notes 0.1%
3925 SEAPORT ASSOCIATES LLC
SERIES VRDN (LOC: WELLS FARGO BANK NA)	a	0.32%		01/07/16	6,260,000	6,260,000
GFRE HOLDINGS LLC
(LOC: FEDERAL HOME LOAN BANKS)	a	0.42%		01/07/16	3,665,000	3,665,000
SMITHSONIAN INSTITUTION
SERIES VRDN (LIQ: NORTHERN TRUST COMPANY (THE))	a	0.38%		01/07/16	27,500,000	27,500,000
TENDERFOOT SEASONAL HSG LLC COLO HSG FACS
REV MULTI FAM HOUSING SERIES 2000B (LOC: WELLS FARGO BANK NA)	a	0.47%		01/07/16	3,000,000	3,000,000
YAVAPAI CNTY ARIZ INDL DEV AUTH
REV IDB & PCR (DRAKE CEMENT LLC) SERIES 2015 (LOC: BANK OF NOVA SCOTIA)	a	0.25%		01/07/16	13,000,000	13,000,000
						53,425,000
Other Notes 1.9%
BANK OF AMERICA NA		0.46%	01/04/16	04/04/16	100,000,000	100,000,000
JPMORGAN CHASE BANK NA		0.47%	01/19/16	09/16/16	110,000,000	110,000,000
		0.48%	01/22/16	10/21/16	95,000,000	95,000,000
ROYAL BANK OF CANADA	b	0.44%	01/07/16	09/06/16	75,000,000	75,000,000
WELLS FARGO BANK NA		0.63%	03/15/16	10/14/16	100,000,000	100,000,000
		0.77%	03/22/16	10/21/16	275,000,000	275,000,000
						755,000,000
Total Variable-Rate Obligations
(Cost $8,262,413,643)						8,262,413,643
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 32.0% of net assets
Government Agency Repurchase Agreements* 4.8%
BANK OF NOVA SCOTIA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $114,330,000, 2.21% - 5.00%, due 07/01/26 - 05/15/45)		0.32%		01/04/16	111,003,947	111,000,000
BNP PARIBAS SECURITIES CORP.
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $356,734,690, 0.50% - 7.00%, due 06/01/19 - 12/01/45)		0.31%		01/04/16	346,011,918	346,000,000
DEUTSCHE BANK SECURITIES INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $185,400,001, 4.00%, due 08/20/45 - 11/20/45)		0.36%		01/04/16	180,007,200	180,000,000
GOLDMAN SACHS & CO
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $64,260,001, 3.00% - 4.00%, due 03/01/27 - 10/01/45)		0.32%		01/04/16	63,002,240	63,000,000

14 See financial notes

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by U.S. Government Agency Securities valued at $70,380,000, 3.50% - 4.50%, due 03/01/21 - 11/20/45)		0.30%		01/06/16	69,004,025	69,000,000
Issued 12/31/15, repurchase date 01/07/16 (Collateralized by U.S. Government Agency Securities valued at $24,480,000, 2.69% - 4.00%, due 04/20/44 - 10/01/45)		0.32%		01/07/16	24,001,493	24,000,000
JP MORGAN SECURITIES LLC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $73,130,000, 2.00% - 4.50%, due 01/16/38 - 04/15/49)		0.34%		01/04/16	71,002,682	71,000,000
MERRILL LYNCH PIERCE FENNER & SMITH INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $62,830,000, 3.00% - 4.00%, due 09/25/41 - 06/25/44)		0.31%		01/04/16	61,002,101	61,000,000
MIZUHO SECURITIES USA INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $104,030,001, 4.00% - 6.50%, due 10/01/39 - 12/20/45)		0.33%		01/04/16	101,003,703	101,000,000
WELLS FARGO BANK NA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Government Agency Securities valued at $713,467,745, 2.50% - 3.50%, due 04/01/30 - 07/01/45)		0.35%		01/04/16	686,026,678	686,000,000
WELLS FARGO SECURITIES LLC
Issued 12/29/15, repurchase date 01/05/16 (Collateralized by U.S. Government Agency Securities valued at $120,648,211, 3.50%, due 12/01/45)		0.35%		01/05/16	116,007,894	116,000,000
Issued 12/31/15, repurchase date 01/07/16 (Collateralized by U.S. Government Agency Securities valued at $117,528,227, 3.50%, due 12/01/45 - 01/01/46)		0.36%		01/07/16	113,007,910	113,000,000
						1,941,000,000
Treasury Repurchase Agreements 22.2%
BARCLAYS CAPITAL INC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $5,650,098, 3.75%, due 11/15/43)		0.31%		01/04/16	5,539,400	5,539,209
Issued 12/29/15, repurchase date 01/05/16 (Collateralized by U.S. Treasury Securities valued at $74,460,076, 0.00% - 8.75%, due 01/07/16 - 11/15/27)		0.28%		01/05/16	73,003,974	73,000,000
BNP PARIBAS SECURITIES CORP.
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $80,580,001, 0.00% - 8.88%, due 06/09/16 - 05/15/43)		0.29%		01/04/16	79,002,546	79,000,000
FEDERAL RESERVE BANK OF NEW YORK
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $8,757,243,282, 0.88% - 6.13%, due 03/31/18 - 11/15/27)		0.25%		01/04/16	8,757,243,250	8,757,000,000
JP MORGAN SECURITIES LLC
Issued 12/31/15, repurchase date 01/07/16 (Collateralized by U.S. Treasury Securities valued at $99,960,166, 2.25% - 5.13%, due 05/15/16 - 11/15/24)		0.31%		01/07/16	98,005,907	98,000,000

See financial notes 15

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
WELLS FARGO BANK NA
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by U.S. Treasury Securities valued at $14,280,541, 1.38%, due 03/31/20)		0.33%		01/04/16	14,000,513	14,000,000
						9,026,539,209
Other Repurchase Agreements** 5.0%
BNP PARIBAS SECURITIES CORP.
Issued 12/28/15, repurchase date 01/04/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $81,650,000, 0.92% - 5.22%, due 11/27/23 - 06/25/43)		0.45%		01/04/16	71,006,213	71,000,000
Issued 12/29/15, repurchase date 01/05/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $100,050,000, 1.82% - 5.22%, due 01/25/24 - 03/27/28)		0.45%		01/05/16	87,007,613	87,000,000
Issued 12/31/15, repurchase date 01/05/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $13,800,000, 4.72%, due 02/26/24)		0.45%		01/05/16	12,000,750	12,000,000
CREDIT SUISSE SECURITIES (USA) LLC
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $303,602,403, 0.74% - 6.85%, due 02/25/22 - 11/25/60)		0.60%		01/06/16	264,030,800	264,000,000
Issued 12/21/15, repurchase date 06/03/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $690,001,830, 0.35% - 9.16%, due 04/25/18 - 02/12/51)	c	1.20%		04/04/16	602,100,000	600,000,000
JP MORGAN SECURITIES LLC
Issued 12/04/15, repurchase date 06/01/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $314,162,800, 0.49% - 8.88%, due 05/09/16 - 12/31/99)	c	0.90%		03/30/16	273,798,525	273,000,000
Issued 12/23/15, repurchase date 06/20/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $271,463,367, 1.02% - 8.88%, due 06/15/16 - 06/15/68)	c	1.05%		03/30/16	236,674,567	236,000,000
MERRILL LYNCH PIERCE FENNER & SMITH INC
Issued 11/18/15, repurchase date 02/16/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $343,850,000, 0.00% - 3.69%, due 11/25/57 - 03/25/58)	c	0.66%		02/04/16	299,427,570	299,000,000
WELLS FARGO SECURITIES LLC
Issued 12/31/15, repurchase date 01/04/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $50,601,968, 1.42% - 5.87%, due 11/25/29 - 09/17/58)		0.35%		01/04/16	44,001,711	44,000,000
Issued 12/30/15, repurchase date 01/06/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $50,605,411, 3.13% - 6.00%, due 08/27/37 - 09/17/57)		0.55%		01/06/16	44,004,706	44,000,000

16 See financial notes

Schwab Cash Reserves

Portfolio Holdings continued

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 11/10/15, repurchase date 05/09/16 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $130,472,689, 0.00% - 4.62%, due 10/20/18 - 05/25/55)	c	0.80%		04/04/16	113,366,622	113,000,000
						2,043,000,000
Total Repurchase Agreements
(Cost $13,010,539,209)						13,010,539,209

End of Investments.

At 12/31/15, the tax basis cost of the fund's investments was $40,665,198,402.

a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $5,677,383,149 or 14.0% of net assets.
c	Illiquid security. At the period end, the value of these amounted to $1,521,000,000 or 3.7% of net assets.
*	Usually collateralized via U.S. Government Agency Securities or less frequently by U.S. Treasury Securities.
**	Usually collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by U.S. Government Agency Securities and/ or U.S. Treasury Securities.

ABS —	Asset-backed securities
ETF —	Exchange Traded Fund
FACS —	Facilities
IDB —	Industrial development bond
LIQ —	Liquidity agreement
LOC —	Letter of credit
PCR —	Pollution Control Revenue
VRDN —	Variable rate demand note

See financial notes 17

Schwab Cash Reserves

Financial Notes

1. Business Structure of the Fund:

Schwab Cash Reserves is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:

The Charles Schwab Family of Funds (organized October 20, 1989)	Schwab Municipal Money Fund™
Schwab Money Market Fund™	Schwab AMT Tax-Free Money Fund™
Schwab Government Money Fund™	Schwab California Municipal Money Fund™
Schwab U.S. Treasury Money Fund™	Schwab New York Municipal Money Fund™
Schwab Treasury Obligations Money Fund™	(formerly Schwab New York AMT Tax-Free Money Fund)
Schwab Value Advantage Money Fund^®	Schwab New Jersey Municipal Money Fund™
Schwab Advisor Cash Reserves^®	(formerly Schwab New Jersey AMT Tax-Free Money Fund)
Schwab Cash Reserves	Schwab Pennsylvania Municipal Money Fund™
Schwab Retirement Advantage Money Fund^®	Schwab Massachusetts Municipal Money Fund™
Schwab Investor Money Fund^®	(formerly Schwab Massachusetts AMT Tax-Free Money Fund)

Schwab Cash Reserves offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the fund's Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

2. Significant Accounting Policies:

(a) Security Valuation:

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

Schwab Cash Reserves

Financial Notes (continued)

2. Significant Accounting Policies (continued):

The three levels of the fair value hierarchy are as follows:

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

(b) Accounting Policies for certain Portfolio Investments (if held):

As of December 31, 2015, the fund had investments in repurchase agreements with a gross value of $13,010,539,209 as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities. The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Schwab Cash Reserves

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

(g) Custody Credit:

(h) Accounting Estimates:

(i) Federal Income Taxes:

(j) Indemnification:

3. Risk Factors:

Schwab Cash Reserves

Financial Notes (continued)

3. Risk Factors (continued):

difficult for the fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of the fund’s money market securities holdings. In addition, to the extent the fund makes any reimbursement payments to the investment adviser and/or its affiliates, the fund’s yield would be lower.

Foreign Investment Risk. Although the fund may invest only in U.S. dollar denominated securities, the fund’s investments in securities of foreign issuers or securities with credit or liquidity enhancements provided by foreign entities may involve certain risks that are greater than those associated with investments in securities of U.S. issuers or securities with credit or liquidity enhancements provided by U.S. entities. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; differing accounting, auditing, financial reporting and legal standards and practices; the imposition of economic sanctions or other government restrictions; differing securities market structures; and higher transaction costs. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Schwab Cash Reserves

Financial Notes (continued)

3. Risk Factors (continued):

Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.

4. Affiliates and Affiliated Transactions:

For its advisory and administrative services to the fund, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:

Average Daily Net Assets
First $1 billion	0.35%
More than $1 billion but not exceeding $10 billion	0.32%
More than $10 billion but not exceeding $20 billion	0.30%
More than $20 billion but not exceeding $40 billion	0.27%
Over $40 billion	0.25%

Schwab Cash Reserves

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. Pursuant to the Plan, the fund’s shares are subject to an annual sweep administration fee of up to 0.15%. The sweep administration fee paid to Schwab is based on the average daily net asset value of the fund's shares owned by shareholders holding shares through Schwab. Payments under the Plan are made as described above regardless of Schwab’s or the service provider's actual cost of providing the services. If the cost of providing the services under the Plan is less than the payment received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

Contractual Expense Limitation

CSIM and its affiliates have made an additional agreement with the fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation) to 0.66%.

During the period ended December 31, 2015, the fund waived $187,700,321 in expenses of which $29,624,882 was waived in accordance with the contractual expense limitation agreement noted above.

Voluntary Yield Waiver/Reimbursement

During the period, the fund received a reimbursement payment of $199,366 related to state filing fees resulting from revised calculation methodologies being applied on sales of the fund's shares in prior periods.

5. Board of Trustees:

Schwab Cash Reserves

Financial Notes (continued)

6. Borrowing from Banks:

7. Federal Income Taxes:

As of December 31, 2015, the fund had no undistributed earnings on a tax basis.

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2015, the fund had capital loss carryforwards of $1,488,912 available to offset future net capital gains before the expiration date of December 31, 2017.

The tax-basis components of distributions paid during the current and prior fiscal years were as follows:

Current period distributions
Ordinary income	$24,271,345
Prior period distributions
Ordinary income	$23,273,554

8. Money Market Fund Reform:

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Schwab Cash Reserves

In our opinion, the accompanying statement of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab Cash Reserves (one of the funds constituting The Charles Schwab Family of Funds, hereafter referred to as the “Fund”) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
February 16, 2016

Shareholder Vote Results (Unaudited)

Proposal – To elect each of the following individuals as trustees of the Trust:	For	Withheld
Walter W. Bettinger II	114,958,848,042.874	28,369,951,694.105
Marie A. Chandoha	138,293,183,971.888	5,035,615,765.091
Joseph R. Martinetto	138,343,234,171.004	4,985,565,565.975
Robert W. Burns	138,801,166,597.632	4,527,633,139.347
John F. Cogan	135,183,710,424.042	8,145,089,312.937
Stephen T. Kochis	138,674,668,915.137	4,654,130,821.842
David L. Mahoney	138,421,149,206.830	4,907,650,530.149
Kiran M. Patel	138,545,135,567.241	4,783,664,169.738
Kimberly S. Patmore	138,722,452,525.210	4,606,347,211.769
Charles A. Ruffel	138,803,994,873.579	4,524,804,863.400
Gerald B. Smith	138,636,013,914.434	4,692,785,822.545
Joseph H. Wender	138,440,840,243.816	4,887,959,493.163

Trustees and Officers

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009;The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.	96	Director, PS Business Parks, Inc. (2005 – 2012).
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – 2015).	96	Director, Gilead Sciences, Inc. (2005 – present)
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – April 2012).	96	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	96	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	96	Director, KLA-Tencor Corporation (2008 – present)

Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Consultant, Patmore Management Consulting (management consulting) (2008 – present).	96	None
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015).	96	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present).	96	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010; Schwab Strategic Trust since 2016)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	96	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) Lead Independent Director and Chair of Audit Committee, OUTFRONT Media Inc. (2014 – present)

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation (Oct. 2008 – present); President and Chief Executive Officer (Oct. 2008 – present), Director (May 2008 – present), Charles Schwab & Co., Inc.; Director, Charles Schwab Bank (Apr. 2006 – present); and Director, Schwab Holdings, Inc. (May 2008 – present).	96	Director, The Charles Schwab Corporation (2008 – present)

Interested Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Marie A. Chandoha² 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).	96	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016)	Senior Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (July 2015 – present); Executive Vice President and Chief Financial Officer of The Charles Schwab Corporation and Charles Schwab & Co., Inc. (May 2007 – July 2015); Director, Charles Schwab & Co., Inc. (May 2007 – present); Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director, Executive Vice President and Chief Financial Officer, Schwab Holdings, Inc. (May 2007 – present).	96	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – Aug. 2010).
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2013)	Treasurer and Chief Financial Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Jan. 2016 – present); Assistant Treasurer, Schwab Funds and Laudus Funds (Dec. 2013 – Dec. 2015), Schwab ETFs (Nov. 2013 – Dec. 2015); Vice President, Charles Schwab Investment Management, Inc. (Oct. 2013 – present); Executive Director, J.P. Morgan Investor Services (Apr. 2011 – Sept. 2013); Assistant Treasurer, Massachusetts Financial Service Investment Management (May 2005 – Mar. 2011).

Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – Dec. 2015); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – Dec. 2015) and Schwab ETFs (Oct. 2009 – Dec. 2015); Director, Charles Schwab Worldwide Funds, plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005; Schwab Strategic Trust since 2009)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Ms. Chandoha, and Mr. Martinetto are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.