UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07704
Schwab Capital Trust Schwab Fundamental Global Real Estate Index Fund
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Schwab Capital Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrants telephone number, including area code: (415) 636-7000
Date of fiscal year end: February 28
Date of reporting period: February 29, 2024
Item 1: Report(s) to Shareholders.
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess
and monitor their fund investments. Other information, including financial
statements, will not appear in the streamlined shareholder reports
but will available online and delivered free of charge upon
request. |
• If you already receive the full shareholder reports, you
will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder
report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
2 | |
3 | |
5 | |
6 | |
9 | |
10 | |
19 | |
30 | |
31 | |
32 | |
33 | |
36 |
Total Returns for the 12
Months Ended February 29, 2024 | |
Schwab Fundamental Global Real Estate Index Fund (Ticker
Symbol: SFREX) |
-3.09% |
Russell RAFITM Global Select Real Estate Index
(Net)1 |
-3.67% |
FTSE EPRA Nareit Global Index (Net)1
|
0.01% |
Fund Category: Morningstar Global Real
Estate2 |
1.69% |
Performance Details |
pages 6-8 |
![]() |
Christopher Bliss, CFA, Managing Director and Head of Passive Equity
Strategies for Schwab Asset Management, is responsible for overseeing the investment
process and portfolio management of investment strategies for passive equity Schwab Funds
and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts.
Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays
Global Investors) managing and leading institutional index teams, most recently as a managing director
and the head of the Americas institutional index team. In this role, Mr. Bliss was
responsible for overseeing a team of portfolio managers managing domestic, developed
international and emerging markets index strategies. Prior to BlackRock, he worked as an
equity analyst and portfolio manager for Harris Bretall and before that, as a research
analyst for JP Morgan. |
![]() |
David Rios, Portfolio Manager for Schwab Asset Management, is responsible
for the day-to-day co-management of the fund. Prior to this role, Mr. Rios was an
associate portfolio manager on the equity index strategies team for four years. His first
role with Schwab Asset Management was as a trade operations specialist. Prior to joining
Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust
(subsequently acquired by State Street Corporation). |
Fund and Inception Date |
1 Year |
5 Years |
Since Inception |
Fund: Schwab Fundamental Global Real Estate Index Fund (10/22/14) |
-3.09% |
-1.90% |
2.28% |
Russell RAFITM Global Select Real Estate Index
(Net)2 |
-3.67% |
-2.30% |
1.96% |
FTSE EPRA Nareit Global Index (Net)2
|
0.01% |
-0.85% |
2.03% |
Fund Category: Morningstar Global Real
Estate3 |
1.69% |
0.63% |
N/A |
Fund Expense Ratio4:
0.39% |
Number of Holdings |
359 |
Weighted Average Market Cap (millions) |
$19,079 |
Price/Earnings Ratio (P/E) |
16.5 |
Price/Book Ratio (P/B) |
0.7 |
Portfolio Turnover Rate |
16% |
|
EXPENSE RATIO
(ANNUALIZED) 1 |
BEGINNING ACCOUNT
VALUE AT 9/1/23 |
ENDING ACCOUNT
VALUE (NET OF EXPENSES)
AT 2/29/24 |
EXPENSES PAID DURING PERIOD
9/1/23-2/29/24 2 |
Schwab Fundamental Global Real Estate Index Fund |
|
|
|
|
Actual Return |
0.39% |
$1,000.00
|
$1,015.00
|
$1.95
|
Hypothetical 5% Return |
0.39% |
$1,000.00
|
$1,022.92
|
$1.96
|
1 |
Based on the most recent six-month expense ratio. |
2 |
Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the
period, multiplied by 182 days in the period, and divided by 366 days in the fiscal
year. |
|
3/1/23– 2/29/24 |
3/1/22– 2/28/23 |
3/1/21– 2/28/22 |
3/1/20– 2/28/21 |
3/1/19– 2/29/20 |
|
Per-Share Data | ||||||
Net asset value at beginning of period |
$9.35 |
$11.48 |
$11.05 |
$11.06 |
$11.43 |
|
Income (loss) from investment operations: |
|
|
|
|
|
|
Net investment income (loss)1
|
0.30 |
0.30 |
0.34 |
0.30 |
0.37 |
|
Net realized and unrealized gains (losses) |
(0.58 ) |
(2.16 ) |
0.44 |
0.05 |
(0.24 ) |
|
Total from investment operations |
(0.28 ) |
(1.86 ) |
0.78 |
0.35 |
0.13 |
|
Less distributions: |
|
|
|
|
|
|
Distributions from net investment income |
(0.33 ) |
(0.27 ) |
(0.35 ) |
(0.34 ) |
(0.47 ) |
|
Distributions from net realized gains |
— |
— |
— |
(0.02 ) |
(0.03 ) |
|
Total distributions |
(0.33 ) |
(0.27 ) |
(0.35 ) |
(0.36 ) |
(0.50 ) |
|
Net asset value at end of period |
$8.74 |
$9.35 |
$11.48 |
$11.05 |
$11.06 |
|
Total return |
(3.09 %) |
(16.30 %) |
7.02 % |
3.62 % |
0.91 % |
|
Ratios/Supplemental Data | ||||||
Ratios to average net assets: |
|
|
|
|
|
|
Total expenses |
0.39 % |
0.39
%2 |
0.39 % |
0.39 % |
0.39 % |
|
Net investment income (loss) |
3.46 % |
3.01 % |
2.86 % |
3.17 % |
3.16 % |
|
Portfolio turnover rate |
16 % |
32 % |
32 % |
25 % |
16 % |
|
Net assets, end of period (x 1,000) |
$79,215 |
$104,272 |
$134,050 |
$156,761 |
$195,717 |
|
1 |
Calculated based on the average shares outstanding during the period. |
2 |
Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
COMMON
STOCKS 99.5% OF NET ASSETS | ||
| ||
Australia 3.7% | ||
Charter Hall Group |
12,312 |
100,374 |
Charter Hall Retail REIT |
18,846 |
43,310 |
Cromwell Property Group |
126,551 |
32,895 |
Dexus |
42,766 |
204,799 |
Goodman Group |
24,576 |
478,435 |
GPT Group |
63,682 |
180,107 |
Mirvac Group |
244,195 |
346,355 |
National Storage REIT |
24,982 |
36,694 |
REA Group Ltd. |
595 |
75,249 |
Region RE Ltd. |
39,609 |
56,940 |
Scentre Group |
308,652 |
624,669 |
Stockland |
168,888 |
493,460 |
Vicinity Ltd. |
201,596 |
254,582 |
Waypoint REIT Ltd. |
24,550 |
37,534 |
|
|
2,965,403 |
| ||
Belgium 0.2% | ||
Aedifica SA |
713 |
40,720 |
Cofinimmo SA * |
1,313 |
82,021 |
Warehouses De Pauw CVA |
2,364 |
63,319 |
|
|
186,060 |
| ||
Brazil 0.2% | ||
Cyrela Brazil Realty SA Empreendimentos e Participacoes |
20,555 |
99,444 |
Multiplan Empreendimentos Imobiliarios SA |
8,051 |
42,773 |
|
|
142,217 |
| ||
Canada 2.6% | ||
Allied Properties Real Estate Investment Trust |
7,958 |
99,625 |
Altus Group Ltd. |
1,275 |
47,058 |
Artis Real Estate Investment Trust |
13,890 |
57,417 |
Boardwalk Real Estate Investment Trust |
1,204 |
67,450 |
Canadian Apartment Properties REIT |
5,438 |
190,770 |
Chartwell Retirement Residences |
13,486 |
120,834 |
Choice Properties Real Estate Investment Trust |
9,393 |
92,674 |
Colliers International Group, Inc. |
760 |
88,440 |
Crombie Real Estate Investment Trust |
7,971 |
81,346 |
Dream Industrial Real Estate Investment Trust |
4,721 |
44,213 |
Dream Office Real Estate Investment Trust |
2,795 |
30,892 |
First Capital Real Estate Investment Trust |
15,038 |
172,192 |
FirstService Corp. |
803 |
132,146 |
Granite Real Estate Investment Trust |
1,284 |
68,185 |
H&R Real Estate Investment Trust |
26,127 |
171,145 |
Killam Apartment Real Estate Investment Trust |
4,305 |
60,365 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
NorthWest Healthcare Properties Real Estate Investment Trust |
15,196 |
44,564 |
Primaris Real Estate Investment Trust |
3,981 |
39,571 |
RioCan Real Estate Investment Trust |
20,058 |
264,258 |
SmartCentres Real Estate Investment Trust |
7,461 |
127,598 |
Tricon Residential, Inc. |
7,353 |
81,757 |
|
|
2,082,500 |
| ||
China 8.5% | ||
Agile Group Holdings Ltd. * |
2,259,000 |
218,555 |
A-Living Smart City Services Co. Ltd. |
137,750 |
70,534 |
C&D International Investment Group Ltd. |
23,719 |
38,565 |
China Jinmao Holdings Group Ltd. |
2,231,000 |
181,294 |
China Merchants Shekou Industrial Zone Holdings Co. Ltd., A Shares |
48,500 |
63,282 |
China Overseas Grand Oceans Group Ltd. |
314,000 |
80,367 |
China Overseas Land & Investment Ltd. |
637,500 |
941,471 |
China Resources Land Ltd. |
284,500 |
868,964 |
China SCE Group Holdings Ltd. * |
2,763,000 |
54,344 |
China South City Holdings Ltd. |
1,430,000 |
30,378 |
China Vanke Co. Ltd., A Shares |
149,000 |
207,012 |
China Vanke Co. Ltd., H Shares |
476,900 |
367,682 |
Country Garden Holdings Co. Ltd. *(a) |
9,833,000 |
799,057 |
Country Garden Services Holdings Co. Ltd. |
131,900 |
100,400 |
Dexin China Holdings Co. Ltd. * |
1,549,000 |
18,399 |
Gemdale Corp., A Shares |
52,800 |
31,484 |
Gemdale Properties & Investment Corp. Ltd. |
1,938,000 |
65,398 |
Greentown China Holdings Ltd. |
147,000 |
117,540 |
Guangzhou R&F Properties Co. Ltd., H Shares * |
2,770,622 |
359,156 |
Hopson Development Holdings Ltd. * |
248,779 |
118,888 |
Jiayuan International Group Ltd. *(b) |
534,000 |
2,950 |
KE Holdings, Inc., ADR |
16,284 |
221,300 |
KWG Group Holdings Ltd. *(a) |
1,219,000 |
68,928 |
Longfor Group Holdings Ltd. |
323,000 |
404,559 |
Midea Real Estate Holding Ltd. |
68,800 |
38,329 |
Poly Developments & Holdings Group Co. Ltd., A Shares |
96,000 |
129,750 |
Poly Property Group Co. Ltd. |
803,000 |
147,538 |
Red Star Macalline Group Corp. Ltd., A Shares |
61,500 |
30,445 |
Redsun Properties Group Ltd. *(a) |
1,320,000 |
13,319 |
Seazen Group Ltd. * |
1,832,000 |
258,404 |
Seazen Holdings Co. Ltd., A Shares * |
30,900 |
44,409 |
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A Shares |
60,400 |
76,534 |
Shinsun Holdings Group Co. Ltd. *(b) |
1,290,000 |
18,742 |
Sino-Ocean Group Holding Ltd. *(a) |
3,717,500 |
158,761 |
Times China Holdings Ltd. *(a) |
2,538,498 |
80,767 |
Yuexiu Property Co. Ltd. |
185,359 |
123,267 |
Yuzhou Group Holdings Co. Ltd. *(a) |
3,860,963 |
41,916 |
Zhenro Properties Group Ltd. *(a) |
5,140,000 |
56,808 |
Zhongliang Holdings Group Co. Ltd. * |
1,405,000 |
50,859 |
|
|
6,700,355 |
|
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
France 1.8% | ||
Altarea SCA |
361 |
26,359 |
Carmila SA |
3,951 |
63,325 |
Covivio SA |
3,510 |
157,606 |
Gecina SA |
1,850 |
178,695 |
ICADE |
4,423 |
132,145 |
Klepierre SA |
12,469 |
316,754 |
Mercialys SA |
10,604 |
115,201 |
Unibail-Rodamco-Westfield * |
5,952 |
435,230 |
|
|
1,425,315 |
| ||
Germany 2.6% | ||
ADLER Group SA * |
155,943 |
38,091 |
Aroundtown SA * |
86,945 |
153,300 |
BRANICKS Group AG |
6,567 |
8,834 |
Deutsche Wohnen SE |
2,418 |
49,915 |
Grand City Properties SA * |
10,880 |
101,434 |
LEG Immobilien SE * |
3,205 |
236,078 |
TAG Immobilien AG * |
15,380 |
188,030 |
Vonovia SE |
44,688 |
1,247,204 |
|
|
2,022,886 |
| ||
Hong Kong 6.3% | ||
CK Asset Holdings Ltd. |
182,450 |
839,273 |
Fortune Real Estate Investment Trust |
81,000 |
46,613 |
Hang Lung Properties Ltd. |
107,000 |
114,844 |
Henderson Land Development Co. Ltd. |
89,866 |
258,572 |
Hongkong Land Holdings Ltd. |
91,827 |
310,906 |
Hysan Development Co. Ltd. |
38,500 |
62,943 |
Kerry Properties Ltd. |
129,500 |
212,802 |
Link REIT |
82,500 |
409,085 |
New World Development Co. Ltd. |
313,460 |
393,826 |
Powerlong Real Estate Holdings Ltd. *(a) |
1,495,000 |
123,697 |
Sino Land Co. Ltd. |
234,204 |
252,223 |
Sun Hung Kai Properties Ltd. |
120,342 |
1,210,914 |
Swire Properties Ltd. |
54,000 |
111,076 |
Wharf Holdings Ltd. |
92,000 |
339,107 |
Wharf Real Estate Investment Co. Ltd. |
83,400 |
277,733 |
|
|
4,963,614 |
| ||
Japan 12.6% | ||
Activia Properties, Inc. |
26 |
67,639 |
Advance Residence Investment Corp. |
37 |
75,573 |
Aeon Mall Co. Ltd. |
14,500 |
169,292 |
AEON REIT Investment Corp. |
78 |
68,454 |
Comforia Residential REIT, Inc. |
19 |
36,369 |
Daito Trust Construction Co. Ltd. |
8,970 |
1,064,119 |
Daiwa House REIT Investment Corp. |
63 |
102,734 |
Daiwa Office Investment Corp. |
10 |
38,918 |
Daiwa Securities Living Investments Corp. |
57 |
38,334 |
Frontier Real Estate Investment Corp. |
15 |
43,005 |
Fukuoka REIT Corp. |
42 |
46,457 |
GLP J-Reit |
100 |
79,339 |
Heiwa Real Estate Co. Ltd. |
2,000 |
52,382 |
Hulic Co. Ltd. |
25,400 |
253,440 |
Hulic Reit, Inc. |
38 |
37,131 |
Industrial & Infrastructure Fund Investment Corp. |
56 |
47,100 |
Invincible Investment Corp. |
113 |
46,397 |
Japan Excellent, Inc. |
64 |
50,434 |
Japan Hotel REIT Investment Corp. |
108 |
52,359 |
Japan Logistics Fund, Inc. |
23 |
39,292 |
Japan Metropolitan Fund Invest |
252 |
148,516 |
Japan Prime Realty Investment Corp. |
34 |
74,565 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Japan Real Estate Investment Corp. |
46 |
165,815 |
KDX Realty Investment Corp. |
145 |
145,144 |
LaSalle Logiport REIT |
36 |
33,844 |
Mirarth Holdings, Inc. |
18,000 |
58,664 |
Mitsubishi Estate Co. Ltd. |
95,900 |
1,467,889 |
Mitsui Fudosan Co. Ltd. |
74,100 |
2,011,582 |
Mori Hills REIT Investment Corp. |
45 |
39,366 |
Nippon Accommodations Fund, Inc. |
13 |
49,284 |
Nippon Building Fund, Inc. |
49 |
188,709 |
Nippon Kanzai Holdings Co. Ltd. |
2,200 |
37,771 |
Nippon Prologis REIT, Inc. |
51 |
85,326 |
NIPPON REIT Investment Corp. |
18 |
39,402 |
Nomura Real Estate Holdings, Inc. |
12,600 |
313,651 |
Nomura Real Estate Master Fund, Inc. |
167 |
165,979 |
NTT UD REIT Investment Corp. |
52 |
41,189 |
Open House Group Co. Ltd. |
6,300 |
198,964 |
Orix JREIT, Inc. |
99 |
104,461 |
Relo Group, Inc. |
5,100 |
41,082 |
SAMTY Co. Ltd. |
2,500 |
41,212 |
Sekisui House REIT, Inc. |
117 |
57,882 |
Starts Corp., Inc. |
4,600 |
93,018 |
Sumitomo Realty & Development Co. Ltd. |
32,200 |
955,122 |
Sun Frontier Fudousan Co. Ltd. |
4,000 |
44,372 |
Tokyo Tatemono Co. Ltd. |
19,900 |
288,660 |
Tokyu Fudosan Holdings Corp. |
76,400 |
501,698 |
Tokyu REIT, Inc. |
29 |
31,414 |
United Urban Investment Corp. |
119 |
112,420 |
|
|
9,945,769 |
| ||
Mexico 0.6% | ||
Corp. Inmobiliaria Vesta SAB de CV |
12,140 |
42,558 |
FIBRA Macquarie Mexico |
33,727 |
66,349 |
Fibra Uno Administracion SA de CV |
149,113 |
269,456 |
TF Administradora Industrial S de Real de CV |
34,703 |
82,908 |
|
|
461,271 |
| ||
Netherlands 0.2% | ||
Eurocommercial Properties NV |
3,470 |
74,363 |
Wereldhave NV |
4,075 |
58,910 |
|
|
133,273 |
| ||
Philippines 0.8% | ||
Ayala Corp. |
16,930 |
204,316 |
Ayala Land, Inc. |
335,532 |
209,125 |
Robinsons Land Corp. |
169,900 |
49,485 |
SM Prime Holdings, Inc. |
238,100 |
133,842 |
|
|
596,768 |
| ||
Singapore 1.4% | ||
CapitaLand Ascendas REIT |
89,788 |
182,983 |
CapitaLand Ascott Trust |
77,680 |
51,751 |
CapitaLand China Trust |
58,600 |
32,223 |
CapitaLand Integrated Commercial Trust |
107,805 |
157,248 |
CapitaLand Investment Ltd. |
67,238 |
139,096 |
City Developments Ltd. |
24,500 |
103,266 |
Frasers Logistics & Commercial Trust |
57,900 |
44,317 |
Manulife U.S. Real Estate Investment Trust * |
390,100 |
21,513 |
Mapletree Industrial Trust |
43,144 |
73,474 |
Mapletree Logistics Trust |
67,031 |
73,841 |
Mapletree Pan Asia Commercial Trust |
44,327 |
44,538 |
Suntec Real Estate Investment Trust |
64,400 |
55,621 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
UOL Group Ltd. |
29,380 |
128,711 |
|
|
1,108,582 |
| ||
South Africa 1.1% | ||
Fortress Real Estate Investments Ltd., Class B * |
91,650 |
79,417 |
Growthpoint Properties Ltd. |
397,204 |
242,506 |
Hyprop Investments Ltd. |
44,194 |
72,205 |
NEPI Rockcastle NV |
22,911 |
163,471 |
Redefine Properties Ltd. |
890,306 |
185,826 |
Resilient REIT Ltd. |
26,680 |
65,573 |
Vukile Property Fund Ltd. |
92,982 |
71,603 |
|
|
880,601 |
| ||
Sweden 0.7% | ||
Castellum AB * |
14,067 |
168,713 |
Fabege AB |
8,638 |
70,662 |
Fastighets AB Balder, B Shares * |
16,024 |
99,660 |
Pandox AB |
4,225 |
63,697 |
Sagax AB, B Shares |
1,803 |
42,646 |
Samhallsbyggnadsbolaget i Norden AB |
125,645 |
44,508 |
Samhallsbyggnadsbolaget i Norden AB, D Shares * |
434 |
187 |
Wihlborgs Fastigheter AB |
10,361 |
83,493 |
|
|
573,566 |
| ||
Switzerland 0.8% | ||
Allreal Holding AG |
755 |
129,846 |
Mobimo Holding AG |
280 |
81,950 |
PSP Swiss Property AG |
941 |
119,642 |
Swiss Prime Site AG |
3,384 |
323,413 |
|
|
654,851 |
| ||
Taiwan 0.4% | ||
Farglory Land Development Co. Ltd. |
26,000 |
46,229 |
Highwealth Construction Corp. |
82,986 |
104,234 |
Huaku Development Co. Ltd. |
19,000 |
59,395 |
Kindom Development Co. Ltd. |
41,000 |
51,226 |
Ruentex Development Co. Ltd. |
58,273 |
67,059 |
|
|
328,143 |
| ||
Thailand 0.7% | ||
AP Thailand PCL NVDR |
230,961 |
67,672 |
Central Pattana PCL NVDR |
64,500 |
116,441 |
Digital Telecommunications Infrastructure Fund, Class F |
200,600 |
44,928 |
Land & Houses PCL NVDR |
622,111 |
131,715 |
Sansiri PCL NVDR |
1,473,283 |
75,649 |
Supalai PCL NVDR |
142,182 |
83,248 |
|
|
519,653 |
| ||
United Arab Emirates 1.4% | ||
Aldar Properties PJSC |
130,270 |
196,135 |
Emaar Development PJSC |
55,102 |
118,666 |
Emaar Properties PJSC |
377,457 |
834,466 |
|
|
1,149,267 |
| ||
United Kingdom 2.1% | ||
Assura PLC |
76,689 |
40,324 |
Big Yellow Group PLC |
4,064 |
51,574 |
British Land Co. PLC |
49,994 |
219,977 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Derwent London PLC |
3,759 |
91,293 |
Grainger PLC |
24,377 |
76,682 |
Great Portland Estates PLC |
9,017 |
41,216 |
Hammerson PLC |
171,985 |
55,359 |
Land Securities Group PLC |
34,496 |
270,256 |
LondonMetric Property PLC |
19,335 |
44,243 |
Primary Health Properties PLC |
38,835 |
43,923 |
Rightmove PLC |
13,906 |
99,799 |
Safestore Holdings PLC |
5,451 |
52,848 |
Savills PLC |
13,634 |
158,764 |
Segro PLC |
19,288 |
206,295 |
Sirius Real Estate Ltd. |
45,084 |
49,227 |
Tritax Big Box REIT PLC |
39,069 |
72,463 |
UNITE Group PLC |
5,350 |
64,963 |
Workspace Group PLC |
7,155 |
44,164 |
|
|
1,683,370 |
| ||
United States 50.8% | ||
Acadia Realty Trust |
5,040 |
82,606 |
Agree Realty Corp. |
955 |
52,477 |
Alexander & Baldwin, Inc. |
6,465 |
105,121 |
Alexandria Real Estate Equities, Inc. |
3,865 |
482,081 |
American Assets Trust, Inc. |
3,248 |
70,059 |
American Homes 4 Rent, Class A |
5,962 |
220,654 |
American Tower Corp. |
9,365 |
1,862,324 |
Americold Realty Trust, Inc. |
7,887 |
199,541 |
Anywhere Real Estate, Inc. * |
56,628 |
355,058 |
Apartment Income REIT Corp. |
6,483 |
196,565 |
Apple Hospitality REIT, Inc. |
13,765 |
221,479 |
Ashford Hospitality Trust, Inc. * |
23,185 |
44,747 |
AvalonBay Communities, Inc. |
4,088 |
723,699 |
Boston Properties, Inc. |
11,536 |
746,610 |
Brandywine Realty Trust |
34,399 |
147,916 |
Brixmor Property Group, Inc. |
14,991 |
338,947 |
Broadstone Net Lease, Inc. |
3,378 |
50,366 |
Camden Property Trust |
2,997 |
283,157 |
CBRE Group, Inc., Class A * |
16,925 |
1,555,238 |
Centerspace |
727 |
40,414 |
Chatham Lodging Trust |
4,469 |
45,584 |
COPT Defense Properties |
6,223 |
150,783 |
CoStar Group, Inc. * |
2,740 |
238,462 |
Cousins Properties, Inc. |
8,371 |
190,943 |
Crown Castle, Inc. |
13,928 |
1,531,244 |
CubeSmart |
4,731 |
206,319 |
Cushman & Wakefield PLC * |
16,901 |
168,841 |
DiamondRock Hospitality Co. |
18,855 |
177,237 |
Digital Realty Trust, Inc. |
8,856 |
1,300,149 |
DigitalBridge Group, Inc. |
23,398 |
429,821 |
Diversified Healthcare Trust |
163,239 |
535,424 |
Douglas Elliman, Inc. |
18,648 |
34,312 |
Douglas Emmett, Inc. |
16,303 |
215,526 |
Easterly Government Properties, Inc. |
4,679 |
55,212 |
EastGroup Properties, Inc. |
565 |
99,265 |
Elme Communities |
5,188 |
66,821 |
Empire State Realty Trust, Inc., Class A |
13,500 |
134,595 |
EPR Properties |
3,807 |
156,392 |
Equinix, Inc. |
1,600 |
1,422,112 |
Equity Commonwealth * |
2,240 |
42,179 |
Equity LifeStyle Properties, Inc. |
3,673 |
247,266 |
Equity Residential |
12,917 |
777,733 |
Essential Properties Realty Trust, Inc. |
1,855 |
44,316 |
Essex Property Trust, Inc. |
1,953 |
451,924 |
eXp World Holdings, Inc. |
3,453 |
45,234 |
Extra Space Storage, Inc. |
4,082 |
575,440 |
Federal Realty Investment Trust |
2,724 |
274,715 |
First Industrial Realty Trust, Inc. |
2,606 |
138,118 |
Four Corners Property Trust, Inc. |
1,939 |
46,885 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Gaming & Leisure Properties, Inc. |
6,534 |
297,166 |
GEO Group, Inc. * |
26,189 |
321,339 |
Getty Realty Corp. |
1,290 |
34,004 |
Global Net Lease, Inc. |
14,577 |
105,100 |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. |
1,576 |
39,668 |
Healthcare Realty Trust, Inc. |
12,425 |
171,217 |
Healthpeak Properties, Inc. |
23,812 |
398,851 |
Highwoods Properties, Inc. |
9,530 |
233,009 |
Host Hotels & Resorts, Inc. |
39,761 |
824,643 |
Howard Hughes Holdings, Inc. * |
1,021 |
78,004 |
Hudson Pacific Properties, Inc. |
31,036 |
196,768 |
Independence Realty Trust, Inc. |
3,621 |
53,011 |
Industrial Logistics Properties Trust |
21,822 |
83,578 |
Invitation Homes, Inc. |
12,611 |
429,657 |
Iron Mountain, Inc. |
12,166 |
956,734 |
JBG SMITH Properties |
9,652 |
160,030 |
Jones Lang LaSalle, Inc. * |
6,029 |
1,146,957 |
Kennedy-Wilson Holdings, Inc. |
8,699 |
76,377 |
Kilroy Realty Corp. |
6,942 |
263,032 |
Kimco Realty Corp. |
22,142 |
437,526 |
Kite Realty Group Trust |
4,644 |
99,428 |
Lamar Advertising Co., Class A |
3,289 |
363,599 |
LTC Properties, Inc. |
1,493 |
46,970 |
LXP Industrial Trust |
11,495 |
99,547 |
Macerich Co. |
23,359 |
383,321 |
Marcus & Millichap, Inc. |
1,911 |
70,115 |
Medical Properties Trust, Inc. (a) |
42,025 |
176,925 |
Mid-America Apartment Communities, Inc. |
3,452 |
433,847 |
National Health Investors, Inc. |
1,723 |
99,021 |
National Storage Affiliates Trust |
1,818 |
65,103 |
NET Lease Office Properties |
332 |
8,097 |
Newmark Group, Inc., Class A |
12,974 |
139,989 |
NNN REIT, Inc. |
4,897 |
199,259 |
Office Properties Income Trust |
17,263 |
46,092 |
Omega Healthcare Investors, Inc. |
9,509 |
295,920 |
Opendoor Technologies, Inc. * |
35,943 |
110,704 |
Outfront Media, Inc. |
12,002 |
172,469 |
Paramount Group, Inc. |
33,805 |
149,756 |
Park Hotels & Resorts, Inc. |
30,994 |
514,500 |
Pebblebrook Hotel Trust |
8,188 |
129,698 |
Phillips Edison & Co., Inc. |
3,586 |
128,092 |
Physicians Realty Trust |
9,952 |
111,761 |
Piedmont Office Realty Trust, Inc., Class A |
23,921 |
149,985 |
Prologis, Inc. |
9,534 |
1,270,596 |
Public Storage |
2,761 |
783,765 |
Realty Income Corp. |
11,292 |
588,426 |
Regency Centers Corp. |
5,575 |
345,371 |
Retail Opportunity Investments Corp. |
5,883 |
76,067 |
Rexford Industrial Realty, Inc. |
1,599 |
81,357 |
RLJ Lodging Trust |
17,420 |
206,775 |
RMR Group, Inc., Class A |
1,531 |
37,464 |
Ryman Hospitality Properties, Inc. |
1,254 |
148,574 |
Sabra Health Care REIT, Inc. |
14,620 |
202,926 |
SBA Communications Corp. |
1,250 |
261,538 |
Service Properties Trust |
39,077 |
265,724 |
Simon Property Group, Inc. |
12,339 |
1,827,899 |
SITE Centers Corp. |
11,266 |
152,992 |
SL Green Realty Corp. |
10,530 |
510,494 |
STAG Industrial, Inc. |
3,850 |
142,989 |
Sun Communities, Inc. |
2,705 |
361,821 |
Sunstone Hotel Investors, Inc. |
14,495 |
162,199 |
Tanger, Inc. |
5,045 |
145,346 |
Terreno Realty Corp. |
989 |
63,593 |
UDR, Inc. |
8,682 |
308,211 |
Uniti Group, Inc. |
47,100 |
276,006 |
Urban Edge Properties |
6,549 |
111,399 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Ventas, Inc. |
23,310 |
985,780 |
Veris Residential, Inc. |
4,400 |
64,240 |
VICI Properties, Inc. |
9,212 |
275,715 |
Vornado Realty Trust |
23,955 |
630,017 |
Welltower, Inc. |
15,603 |
1,437,973 |
WP Carey, Inc. |
5,023 |
282,946 |
Xenia Hotels & Resorts, Inc. |
10,631 |
163,080 |
Zillow Group, Inc., Class A * |
1,048 |
56,655 |
Zillow Group, Inc., Class C * |
2,927 |
164,351 |
|
|
40,275,069 |
Total Common Stocks
(Cost $73,702,558) |
78,798,533 | |
| ||
INVESTMENT COMPANIES 0.0% OF NET ASSETS | ||
| ||
United States 0.0% | ||
iShares Core U.S. REIT ETF |
329 |
17,427 |
Total Investment Companies
(Cost $17,300) |
17,427 |
|
|
|
SHORT-TERM INVESTMENTS 1.5% OF NET ASSETS | ||
| ||
Money Market Funds 1.5% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.28% (c)(d) |
1,223,269 |
1,223,269 |
Total Short-Term Investments
(Cost $1,223,269) |
1,223,269 | |
Total Investments in Securities
(Cost $74,943,127) |
80,039,229 |
|
NUMBER OF CONTRACTS |
NOTIONAL AMOUNT
($) |
CURRENT VALUE/ UNREALIZED
APPRECIATION (DEPRECIATION) ($) |
FUTURES CONTRACTS | |||
Long |
|
|
|
Dow Jones U.S. Real Estate Index, expires 03/15/24 |
6 |
205,320 |
1,217 |
MSCI EAFE Index, expires 03/15/24 |
1 |
114,395 |
(502
) |
MSCI Emerging Markets Index, expires 03/15/24 |
1 |
50,840 |
(236 ) |
|
|
|
479 |
* |
Non-income producing security. |
(a) |
All or a portion of this security is on loan. Securities on loan were valued at $1,014,138. |
(b) |
Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
(c) |
The rate shown is the annualized 7-day yield. |
(d) |
Security purchased with cash collateral received for securities on loan. |
ADR — |
American Depositary Receipt |
CVA — |
Dutch Certificate |
ETF — |
Exchange-Traded Fund |
NVDR — |
Non-Voting Depositary Receipt |
REIT — |
Real Estate Investment Trust |
DESCRIPTION |
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) |
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) |
TOTAL |
Assets |
|
|
|
|
Common Stocks1
|
$44,110,324 |
$— |
$— |
$44,110,324
|
Australia |
— |
2,965,403 |
— |
2,965,403 |
Belgium |
— |
186,060 |
— |
186,060 |
China |
294,934 |
6,383,729 |
21,692 |
6,700,355 |
France |
— |
1,425,315 |
— |
1,425,315 |
Germany |
38,091 |
1,984,795 |
— |
2,022,886 |
Hong Kong |
— |
4,963,614 |
— |
4,963,614 |
Japan |
— |
9,945,769 |
— |
9,945,769 |
Netherlands |
— |
133,273 |
— |
133,273 |
Philippines |
133,842 |
462,926 |
— |
596,768 |
Singapore |
— |
1,108,582 |
— |
1,108,582 |
South Africa |
622,570 |
258,031 |
— |
880,601 |
Sweden |
187 |
573,379 |
— |
573,566 |
Switzerland |
— |
654,851 |
— |
654,851 |
Taiwan |
— |
328,143 |
— |
328,143 |
Thailand |
— |
519,653 |
— |
519,653 |
United Kingdom |
375,966 |
1,307,404 |
— |
1,683,370 |
Investment Companies1
|
17,427 |
— |
— |
17,427 |
Short-Term Investments1
|
1,223,269 |
— |
— |
1,223,269 |
Futures Contracts2
|
1,217 |
— |
— |
1,217 |
Liabilities |
|
|
|
|
Futures Contracts2
|
(738 ) |
— |
— |
(738 ) |
Total |
$46,817,089 |
$33,200,927 |
$21,692 |
$80,039,708 |
1 |
As categorized in the Portfolio Holdings.
|
2 |
Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $74,943,127) including securities on loan of $1,014,138 |
|
$80,039,229
|
Foreign currency, at value (cost $111,697) |
|
111,565 |
Deposit with broker for futures contracts |
|
18,218 |
Receivables: |
|
|
Investments sold |
|
273,146 |
Dividends |
|
132,348 |
Foreign tax reclaims |
|
58,190 |
Fund shares sold |
|
28,151 |
Income from securities on loan |
|
21,270 |
Variation margin on future contracts |
|
1,113 |
Prepaid expenses |
+ |
16,150 |
Total assets |
|
80,699,380 |
| ||
Liabilities | ||
Collateral held for securities on loan |
|
1,223,269 |
Payables: |
|
|
Due to custodian |
|
120,788 |
Fund shares redeemed |
|
106,525 |
Investment adviser fees |
|
24,638 |
Investments bought |
+ |
9,536 |
Total liabilities |
|
1,484,756 |
Net assets |
|
$79,214,624 |
| ||
Net Assets by Source | ||
Capital received from investors |
|
$106,924,102
|
Total distributable loss |
+ |
(27,709,478
) |
Net assets |
|
$79,214,624 |
Net Asset Value (NAV)
| ||||
Net Assets
|
÷ |
Shares Outstanding |
= |
NAV |
$79,214,624 |
|
9,061,588 |
|
$8.74 |
|
|
|
|
|
|
|
|
|
|
For the period March 1, 2023 through February 29, 2024 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $167,844) |
|
$3,220,000
|
Interest received from securities - unaffiliated |
|
2,049 |
Securities on loan, net |
+ |
198,080 |
Total investment income
|
|
3,420,129 |
| ||
Expenses | ||
Investment adviser fees |
|
346,191 |
Total expenses |
– |
346,191 |
Net investment income |
|
3,073,938 |
| ||
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated |
|
(6,780,342 ) |
Net realized losses on futures contracts |
|
(38,192 ) |
Net realized losses on foreign currency transactions |
+ |
(1,834 ) |
Net realized losses |
|
(6,820,368 ) |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated |
|
(172,896 ) |
Net change in unrealized appreciation (depreciation) on futures contracts |
|
14,408 |
Net change in unrealized appreciation (depreciation) on foreign currency translations |
+ |
4,758 |
Net change in unrealized appreciation (depreciation) |
+ |
(153,730
) |
Net realized and unrealized losses |
|
(6,974,098 ) |
Decrease in net assets resulting from operations |
|
($3,900,160 ) |
OPERATIONS | |||
|
3/1/23-2/29/24 |
3/1/22-2/28/23 | |
Net investment income |
|
$3,073,938 |
$3,574,007
|
Net realized losses |
|
(6,820,368 ) |
(6,071,023 ) |
Net change in unrealized appreciation (depreciation) |
+ |
(153,730 ) |
(20,074,678 ) |
Decrease in net assets from operations |
|
($3,900,160
) |
($22,571,694 ) |
| |||
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions |
|
($3,225,879
) |
($3,154,839 ) |
TRANSACTIONS IN FUND SHARES | |||||
|
3/1/23-2/29/24 |
3/1/22-2/28/23 | |||
|
|
SHARES |
VALUE |
SHARES |
VALUE |
Shares sold |
|
1,591,908 |
$13,942,158 |
3,601,848 |
$35,951,779
|
Shares reinvested |
|
259,725 |
2,328,187 |
224,488 |
2,169,157 |
Shares redeemed |
+ |
(3,937,424 ) |
(34,201,396 ) |
(4,360,523 ) |
(42,173,011 ) |
Net transactions in fund shares |
|
(2,085,791
) |
($17,931,051
) |
(534,187
) |
($4,052,075 ) |
| |||||
SHARES OUTSTANDING AND NET ASSETS | |||||
|
3/1/23-2/29/24 |
3/1/22-2/28/23 | |||
|
|
SHARES |
NET ASSETS |
SHARES |
NET ASSETS |
Beginning of period |
|
11,147,379 |
$104,271,714 |
11,681,566 |
$134,050,322
|
Total decrease |
+ |
(2,085,791 ) |
(25,057,090 ) |
(534,187 ) |
(29,778,608 ) |
End of period |
|
9,061,588 |
$79,214,624 |
11,147,379 |
$104,271,714 |
SCHWAB CAPITAL TRUST | |
Schwab Fundamental Global Real Estate Index Fund |
Schwab Target 2015 Fund |
Schwab Fundamental US Large Company Index Fund |
Schwab Target 2020 Fund |
Schwab Fundamental US Small Company Index Fund |
Schwab Target 2025 Fund |
Schwab Fundamental International Large Company Index Fund |
Schwab Target 2030 Fund |
Schwab Fundamental International Small Company Index Fund |
Schwab Target 2035 Fund |
Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab Target 2040 Fund |
Schwab S&P 500 Index Fund |
Schwab Target 2045 Fund |
Schwab Small-Cap Index Fund® |
Schwab Target 2050 Fund |
Schwab Total Stock Market Index Fund®
|
Schwab Target 2055 Fund |
Schwab U.S. Large-Cap Growth Index Fund |
Schwab Target 2060 Fund |
Schwab U.S. Large-Cap Value Index Fund |
Schwab Target 2065 Fund |
Schwab U.S. Mid-Cap Index Fund |
Schwab Monthly Income Fund — Target Payout |
Schwab International Index Fund® |
Schwab Monthly Income Fund — Flexible Payout |
Schwab MarketTrack All Equity Portfolio™ |
Schwab Monthly Income Fund — Income Payout |
Schwab MarketTrack Growth Portfolio™ |
Schwab Target 2010 Index Fund |
Schwab MarketTrack Balanced Portfolio™ |
Schwab Target 2015 Index Fund |
Schwab MarketTrack Conservative Portfolio™ |
Schwab Target 2020 Index Fund |
Schwab International Opportunities Fund™ |
Schwab Target 2025 Index Fund |
Schwab Balanced Fund |
Schwab Target 2030 Index Fund |
Schwab Core Equity Fund |
Schwab Target 2035 Index Fund |
Schwab Dividend Equity Fund |
Schwab Target 2040 Index Fund |
Schwab Large-Cap Growth Fund |
Schwab Target 2045 Index Fund |
Schwab Small-Cap Equity Fund |
Schwab Target 2050 Index Fund |
Schwab Health Care Fund |
Schwab Target 2055 Index Fund |
Schwab International Core Equity Fund |
Schwab Target 2060 Index Fund |
Schwab Target 2010 Fund |
Schwab Target 2065 Index Fund |
|
EQUITY CONTRACTS |
TOTAL |
Asset Derivatives |
|
|
Futures Contracts1
|
$1,217 |
$1,217 |
Liability Derivatives |
|
|
Futures Contracts2
|
($738 ) |
($738 ) |
|
|
1 |
Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Holdings. Only current day’s variation margin on futures contracts
is reported within the Statement of Assets and Liabilities. |
2 |
Includes cumulative unrealized depreciation of futures contracts as reported in the fund’s Holdings. Only current day’s variation margin on futures contracts
is reported within the Statement of Assets and Liabilities. |
|
EQUITY CONTRACTS |
TOTAL |
Net Realized Gains (Losses) |
|
|
Futures Contracts1
|
($38,192 ) |
($38,192 ) |
Net Change in Unrealized Appreciation (Depreciation) |
|
|
Futures Contracts2
|
$14,408 |
$14,408 |
|
|
1 |
Statement of Operations location: Net realized gains (losses) on futures contracts. |
2 |
Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
Notional Amount |
Number of Contracts |
$508,478 |
11 |
|
|
PURCHASES
OF SECURITIES |
SALES
OF SECURITIES |
$13,981,180 |
$31,540,549 |
|
TAX COST |
GROSS UNREALIZED
APPRECIATION |
GROSS UNREALIZED
DEPRECIATION |
NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
|
$88,453,679 |
$18,464,131 |
($26,878,102 ) |
($8,413,971 ) |
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED
ORDINARY
INCOME |
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS |
NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) |
CAPITAL LOSS
CARRYFORWARDS AND OTHER LOSSES |
TOTAL |
$559,955 |
($8,413,971 ) |
($2,415 ) |
($19,853,047 ) |
($27,709,478 ) |
|
CURRENT FISCAL YEAR END DISTRIBUTIONS |
PRIOR FISCAL YEAR END DISTRIBUTIONS |
|
ORDINARY
INCOME |
ORDINARY
INCOME
|
|
$3,225,879 |
$3,154,839 |
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 |
Michael J. Beer 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 2022) |
Retired. Director, President and Chief Executive Officer
(Dec. 2016 – Sept. 2019), Principal Funds (investment
management). |
106 |
Director (2016 – 2019), Principal Funds, Inc. |
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. |
106 |
None |
Nancy F. Heller 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 2018) |
Retired. |
106 |
None |
David L. Mahoney 1954
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) |
Private Investor. |
106 |
Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – 2021),
Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 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 2019) |
Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). |
106 |
None |
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 (2008 – present), Patmore Management Consulting
(management consulting). |
106 |
None |
J. Derek Penn 1957
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) |
Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial
services). |
106 |
None |
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 since 2010) |
Co-Chairman of the Board (July 2022 – present), Director and Chief
Executive Officer (Oct. 2008 – present) and President
(Feb. 2007 – Oct. 2021), The Charles Schwab Corporation;
President and Chief Executive Officer (Oct. 2008 – Oct. 2021)
and Director (May 2008 – Oct. 2021), Charles Schwab &
Co., Inc.; Co-Chairman of the Board (July 2022 – present) and
Director (Apr. 2006 – present), Charles Schwab Bank, SSB;
Co-Chairman of the Board (July 2022 – present) and Director
(Nov. 2017 – present), Charles Schwab Premier Bank, SSB;
Co-Chairman of the Board (July 2022 – present) and Director
(July 2019 – present), Charles Schwab Trust Bank; Director
(May 2008 – present), Chief Executive Officer (Aug. 2017 – present)
and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.;
Manager (Sept. 2023 – present), TD Ameritrade Holding LLC;
Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding
Corporation; Director (July 2016 – Oct. 2021), Charles Schwab
Investment Management, Inc. |
106 |
Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) |
President (Oct. 2021 – present) and Executive Vice President – Schwab
Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles
Schwab Corporation; President, Director (Oct. 2021 –
present), Executive Vice President – Schwab Asset Management
Solutions (July 2019 – Oct. 2021) and Senior Vice President
– Advisory (May 2016 – July 2019), Charles Schwab &
Co., Inc.; President (Nov. 2021 – present), Schwab Holdings,
Inc.; Director (Oct. 2021 – present) and Chief Executive
Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment
Management, Inc.; Director, Chief Executive Officer and President
(Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory,
Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and
President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive
Officer (July 2016 – Apr. 2018), Windhaven Investment
Management, Inc. |
106 |
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 |
Omar Aguilar 1970
Chief Executive Officer, President and Chief Investment
Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) |
Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief
Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan.
2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer
and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.;
Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 –
present), Chief Investment Officer (June 2011 – present) and Vice President
(June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab
ETFs. |
Mark Fischer 1970
Chief Operating Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2013) |
Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer
(Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial
Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 –
present), Managing Director (Mar. 2023 – present) and Vice President (Oct.
2013 – Mar. 2023), Charles Schwab Investment Management, Inc.
|
Dana Smith 1965
Treasurer and Chief Financial Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2023) |
Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director
(Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director
(Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing
Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022),
Charles Schwab & Co., Inc. |
Patrick Cassidy 1964
Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2018) |
Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present),
Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present),
Chief Investment Officer (Oct. 2023 – present), and Senior Vice President
(Oct. 2012 – Mar. 2023), Charles Schwab Investment Management,
Inc. |
William P. McMahon, Jr. 1972
Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2021) |
Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and
Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment
Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present),
Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief
Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019),
Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment
Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964
Chief Legal Officer and Secretary, Schwab Funds and
Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) |
Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice
President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.;
Managing Director (May 2022 – present) and Vice President (Aug. 2005 –
May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 –
present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus
Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President
(Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021),
Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and
Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Item 2: Code of Ethics.
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
(f)(1) Registrant has filed this code of ethics as an exhibit pursuant to Item 19(a)(1) of Form N-CSR.
Item 3: Audit Committee Financial Expert.
Registrants Board of Trustees has determined that Kimberly S. Patmore, Michael J. Beer and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an audit committee financial expert, as such term is defined in Item 3 of Form N-CSR. Each member of Registrants audit, compliance and valuation committee is independent under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Ms. Patmore, Mr. Beer and Mr. Penn as an audit committee financial expert pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrants audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrants audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of fifty-two operational series. One series has a fiscal year-end of the last day of February, whose annual financial statements are reported in Item 1, twelve series have a fiscal year-end of March 31, thirty-six series have a fiscal year-end of October 31, and three series have a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to the fifty-two operational series during 2023/2024 and 2022/2023, based on their respective 2023/2024 and 2022/2023 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
(a)Audit Fees1 |
(b)Audit-Related Fees2 |
(c) Tax Fees3 |
(d) All Other Fees | |||||||||||
Fiscal Year |
Fiscal Year |
Fiscal Year |
Fiscal Year |
Fiscal Year |
Fiscal Year |
Fiscal Year |
Fiscal Year | |||||||
$1,272,477 | $1,195,825 | $95,400 | $90,000 | $170,820 | $161,200 | $0 | $0 |
1 | The nature of the services includes audit of the registrants annual financial statements and normally provided services in connection with regulatory filings for those fiscal years. |
2 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
3 | The nature of the services includes tax compliance, tax advice and tax planning. |
(e) (1) | Registrants audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
(2) | There were no services described in each of paragraphs (b) through (d) above that were approved by Registrants audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrants principal accountant for services rendered to Registrant, to Registrants investment adviser, and to any entity controlling, controlled by, or under common control with Registrants investment adviser that provides ongoing services to Registrant. |
2023/2024: $4,105,914 |
2022/2023: $ | 2,859,315 |
(h) | During the past fiscal year, all non-audit services provided by Registrants principal accountant to either Registrants investment adviser or to any entity controlling, controlled by, or under common control with Registrants investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committees pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountants independence. |
(i) | Not applicable. |
(j) | Not applicable. |
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
The financial statements and financial highlights are included as part of the report to shareholders filed under Item 1 of this Form.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The remuneration paid to directors, officers and others are included as part of the report to shareholders filed under Item 1 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: Controls and Procedures.
(a) | Based on their evaluation of Registrants disclosure controls and procedures, as of a date within 90 days of the filing date, Registrants Principal Executive Officer, Omar Aguilar and Registrants Principal Financial Officer, Dana Smith, have concluded that Registrants disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrants officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrants internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrants internal control over financial reporting. |
Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19: Exhibits.
(a) (1) |
(2) | Not applicable. |
(3) |
(b) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust Schwab Fundamental Global Real Estate Index Fund
By: | /s/ Omar Aguilar | |
Omar Aguilar Principal Executive Officer | ||
Date: | April 16, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Omar Aguilar | |
Omar Aguilar Principal Executive Officer | ||
Date: | April 16, 2024 |
By: | /s/ Dana Smith | |
Dana Smith Principal Financial Officer | ||
Date: | April 16, 2024 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
CODE OF BUSINESS CONDUCT AND ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
SCHWAB FUNDS:
THE CHARLES SCHWAB FAMILY OF FUNDS
SCHWAB INVESTMENTS
SCHWAB CAPITAL TRUST
SCHWAB ANNUITY PORTFOLIOS
LAUDUS TRUST
SCHWAB ETFS:
SCHWAB STRATEGIC TRUST
I. SCOPE
This Code of Business Conduct and Ethics (the Code) for the Schwab Funds and Schwab ETFs (the Funds) covers the Principal Executive Officer and Principal Financial Officer and any other officers who serve a similar function (each an Officer) of all of the investment companies within the Funds complex and applies to their service to the Funds.
II. INTRODUCTION
The Funds are committed to the highest standards of ethical conduct. The Code consists of an outline of policies regarding conduct pertaining to legal compliance, personal conflicts of interest, confidentiality and privacy, and certain business practices. You are responsible for reviewing the Code and for acting in compliance with the Code in your daily activities.
The Code is not exhaustive; it provides guidance for carrying out your responsibilities on behalf of the Funds and observing the highest standards of ethical conduct. Because the Code does not address every possible situation that may arise, you are responsible for exercising good judgment, applying ethical principles, and raising questions when in doubt. Your integrity and good judgment reflect on the Funds brand and reputation, and are the foundation of trust for our shareholder and business relationships.
If you are unsure of what to do in any situation or how to interpret the provisions of the Code, seek guidance before you act. Use the Funds resources, including the Chief Legal Officer or the Chief Compliance Officer. If you feel that it is not appropriate to discuss a matter with the Chief Legal Officer or the Chief Compliance Officer, you may contact the Ombudsperson for The Charles Schwab Corporation.
CONTACT INFORMATION |
||||
Title |
Name |
Phone Number | ||
Chief Compliance Officer | Jessica Seidlitz | 720-418-2406 | ||
Chief Legal Officer of Schwab Funds and Schwab ETFs | Catherine MacGregor | 415-667-0650 | ||
The Charles Schwab Corporation Ombudsperson | Amy Pimentel, Esq, McDermott Will & Emery LLP | 617-535-3948 |
III. POLICIES
In executing your responsibilities on behalf of the Funds, your conduct should reflect positively on the Funds. A strong personal sense of ethics should always play a significant role in guiding you towards a proper course of action. The appearance of impropriety can be as harmful to the Funds reputation as improper conduct.
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 1 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
The Funds business is subject to various laws, rules and regulations, including federal securities and state and local laws. Although you are not expected to know the details of the myriad of laws governing our business, you are expected to be familiar with and comply with policies and procedures that apply to your business unit and complete any required training that applies to you (e.g., training regarding privacy or anti-money laundering).
A. PERSONAL CONFLICTS OF INTEREST
It is important that you do not place yourself in a position that would cloud your judgment in carrying out the business affairs of the Funds. A personal conflict of interest occurs when your private interest interferes in any way or even appears to interfere with the interests of the Funds. You have a duty to report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected to be or to create a conflict of interest with the Funds.
Officers, in addition to their obligation to the Funds, may also be an officer or employee of CSIM or a CSIM affiliate. As a result, this Code recognizes that the Officers will, in the normal course of their duties (whether formally for the Funds, for CSIM, for CSIMs affiliate or for more than one entity), be involved in establishing policies and implementing decisions that will have different effects on CSIM, CSIMs affiliates and the Funds. The participation of the Officers in such activities is inherent in the contractual relationship between the Funds and CSIM and is consistent with the performance by the Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act of 1940, as amended (the 1940 Act), and the Investment Advisers Act of 1940, as amended (the Advisers Act), such activities will be deemed under the Code to have been handled ethically. In addition, it is recognized by the Trustees that the Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
B. INSIDE INFORMATION
Do not trade on inside information or disclose inside information to anyone except those who have a need to know it in order to fulfill their responsibilities for the Funds and in accordance with the Funds policy. This applies to information regarding the Funds, The Charles Schwab Corporation and its subsidiaries, and any other publicly traded company.
Generally, material information is any information that an investor would likely consider important in deciding whether to buy, sell or hold securities or that could affect the market price of the securities. Examples include actual or estimated financial results or change in dividends; significant discoveries or product developments; possible mergers, acquisitions or divestitures; major changes in business strategies; obtaining or losing significant contracts; and threatened major litigation or related developments. If you have or receive information and are unsure whether it is within the definition of inside information or whether its release might be contrary to a fiduciary or other obligation, contact the Chief Compliance Officer prior to disclosing any such information.
You must not use the Funds non-public holdings or transactions information in any way to influence your trades or the trades of other shareholders, including those of other employees, officers and directors. Trading ahead of shareholder or the Funds transactions (frontrunning) and following shareholder or the Funds transactions (piggybacking or shadowing) is prohibited.
C. ACCEPTANCE OF GIFTS OR ENTERTAINMENT
You must not accept gifts or entertainment from shareholders, vendors, suppliers, competitors or other employees where they present a conflict of interest or create the appearance of impropriety. You must adhere to the CSIM and The Charles Schwab Corporation policies regarding gifts and entertainment, and apply the more stringent restrictions. In addition, if you are an employee of another CSIM affiliate you must also adhere to that affiliates policies regarding gifts and entertainment, and apply the more stringent restrictions.
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 2 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
D. CONFIDENTIALITY OF INFORMATION AND PRIVACY
Information concerning the identity of the Funds underlying shareholders and their transactions and accounts is confidential. Such information may not be disclosed to persons working on behalf of the Funds except as they may need to know it in order to fulfill their responsibilities to the Funds. You may not disclose such information to anyone or any firm outside the Funds unless (i) the outside firm needs to know the information in order to perform services for the Funds and is bound to maintain its confidentiality; (ii) when the shareholder has consented or been given an opportunity to request that the information not be shared; (iii) as required by law; or (iv) as authorized by the Chief Legal Officer or Chief Compliance Officer.
The Funds are committed to safeguarding their customers privacy. We do not sell any personally identifiable customer information. Sharing of such information with third parties is limited to situations related to the processing and servicing of customer accounts, and to specifically delineated exceptions in the federal privacy law. We share information with our affiliates to the extent permitted by federal law. You must be familiar with the procedural and systemic safeguards we maintain to protect this information.
You have the responsibility to safeguard the Funds proprietary information. Proprietary information includes intellectual property (copyrights, trademarks or patents or trade secrets), particular know-how (business or organizational designs, or business, marketing or service plans or ideas) and sensitive information about the Funds (databases, records, salary information or unpublished financial reports).
E. PROTECTION AND USE OF FUNDS ASSETS
You are obligated to protect the Funds assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Funds. The Funds equipment should not be used for non-Funds business, though incidental personal use may be permitted.
F. FINANCIAL DISCLOSURES
The Funds are committed to providing full, fair, accurate, timely and understandable disclosure in reports and documents that the Funds file with, or submit to, the Securities and Exchange Commission and other regulatory agencies and in other public communications made by the Funds. You are required to comply with the Funds policies and procedures to provide such full, fair, accurate, timely and understandable disclosure.
G. CONDUCT OF AUDITS
Neither you nor any other person acting under your direction shall directly or indirectly take any action to fraudulently influence, coerce, manipulate, or mislead any independent public or certified public accountant engaged in the performance of an audit or review of the Funds financial statements.
Types of conduct that constitute improper influence include, but are not limited to, directly or indirectly:
| Offering or paying bribes or other financial incentives, including offering future employment or contracts for non-audit services |
| Providing an auditor with inaccurate or misleading legal analysis |
| Threatening to cancel or canceling existing non-audit or audit engagements if the auditor objects to the issuers accounting |
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 3 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
| Seeking to have a partner removed from the audit engagement because the partner objects to the Funds accounting |
| Blackmailing |
| Making physical threats |
H. RECORDKEEPING
You must be familiar with the Funds record retention policies and always retain or destroy records according to them. In the event of litigation, governmental investigation or the threat of such action, you should consult the Chief Legal Officer or the Chief Compliance Officer regarding record retention.
The Funds books, records and accounts must conform both to applicable legal requirements and to the Funds internal controls and policies.
Unrecorded or off-the-books funds or assets are prohibited unless permitted by applicable law or regulation. Business records must not contain exaggeration, derogatory remarks, guesswork, or inappropriate characterizations of people and companies. This applies equally to email, internal memoranda, formal reports, and all other forms of business records.
I. SALES PRACTICES
If you transact business for shareholders, you are required to know and observe the Funds specific policies and procedures for shareholder sales and transactions, such as the content and use of sales materials, documentation for transactions, quotations and suitability. Likewise, if you transact business with third parties (such as vendors or suppliers), you will be required to know and observe the Funds policies and procedures for such transactions, such as marketing policies, procedures for performing due diligence on third parties, and obtaining proper authorizations for any agreements. You must be familiar with any enumerated policies and procedures governing your sales activities and use good judgment in complying with them.
J. COMPETITION AND FAIR DEALING
We operate our business fairly and honestly. We seek competitive advantage through performance and never through unethical or illegal business practices. It is our policy to comply with anti-trust laws. These laws are complex and not easily summarized, but at a minimum require that there be no agreement or understanding between the Funds and their competitors that affect prices, terms or conditions of sale or that unreasonably restrain full and fair competition. You must always respect the rights of and deal fairly with the Funds shareholders and competitors. You must never take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice.
K. PROHIBITION OF BRIBERY AND KICKBACKS
Our policies prohibit bribery or kickbacks of any kind and to anyone in the conduct of our business. The U.S. government has a number of laws and regulations applicable specifically to business gratuities that may be offered to or accepted by U.S. and foreign government personnel. The promise, offer or delivery to an official or employee of the U.S. government or an official, employee or candidate of a foreign government of a gift, favor, payment or other gratuity in violation of these rules would not only violate the Funds policy but could also be a criminal offense. Similarly, federal law, as well as the laws of many states, prohibits engaging in commercial bribery. Commercial bribery involves soliciting, demanding or agreeing to accept anything of value from any person intending to influence or be rewarded in connection with any business or transaction, and prohibits all such behavior, for example, with respect to vendors, competitors, shareholders, and government employees.
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 4 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
L. WAIVERS
Waivers of the Code may be made only by the Trustees and will be promptly disclosed publicly as required by law.
M. CODE AMENDMENTS
This Code may not be amended except in written form, which is specifically approved or ratified by a majority of the Trustees including a majority of the independent Trustees. Any amendments will, to the extent required, be disclosed in accordance with law.
N. CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees, CSIM, The Charles Schwab Corporation and their respective counsel. However, nothing contained in this Code or in any applicable employment or severance agreement(s) should be interpreted as prohibiting employees or former employees from voluntarily communicating with the Securities and Exchange Commission or other authorities regarding possible violations of law or from recovering a whistleblower award.
IV. ESCALATION AND PROHIBITION AGAINST RETALIATION
If you know of, or reasonably believe there is, a violation of this Code, you must report that information immediately to the Funds Chief Compliance Officer. Depending on the possible violation, you may also be required to report it pursuant to The Charles Schwab Corporation Code of Business Conduct and CSIM and/or CSIMs affiliates compliance policies and procedures. You should not conduct preliminary investigations unless authorized to do so by the Compliance Department.
No Officer will be retaliated against for making a good faith complaint or for bringing inappropriate conduct to the attention of the Funds personnel, Ombudsperson of The Charles Schwab Corporation or Trustees, for assisting another employee or applicant in making a good faith report, for cooperating in an investigation, or for filing an administrative claim with a state or federal governmental agency. Any Officer who in good faith raises an issue regarding a possible violation of law, regulation or company policy or any suspected illegal or unethical behavior will be protected from retaliation.
If you have violated the Code, however, making a report will not protect you from the consequences of your actions. You can be subject to discipline up to and including termination of employment if you violate the Code or fail to report violations that come to your attention.
Any employee who engages in retaliatory conduct in violation of our policies will be subject to disciplinary action, up to and including termination of employment. If you reasonably believe retaliatory conduct has occurred, you must report such conduct to the Funds Chief Compliance Officer.
V. PROCEDURES
A. OFFICERS
| Read and be familiar with conduct rules outlined in the Code, and periodically review them. |
| Affirm in writing to the Trustees that you have received, read and understand the Code. |
| Annually affirm to the Trustees that you have complied with the requirements of the Code. |
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 5 |
F.II.1.B. | CODE OF BUSINESS CONDUCT AND ETHICS |
| Comply with the conduct standards outlined in this Code in all dealings and actions, including those with shareholders, the public, and vendors. |
| Report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected to be or to create a personal conflict of interest with the Funds. |
| Report in a timely manner to the Chief Compliance Officer any conduct that may constitute a violation of the Code, the Funds policies, or laws, rules and regulations. |
| Raise questions or concerns about conduct issues with your supervisor, the Chief Legal Officer or Chief Compliance Officer, and seek advice when in doubt. |
| Cooperate with management during fact-finding investigations and comply with any confidentiality rules imposed. |
B. CHIEF COMPLIANCE OFFICER
| The Chief Compliance Officer, upon becoming notified of potential violation of this Code, will conduct, facilitate or delegate a review of the matter and will report to the Chairperson of the affected Funds Audit, Compliance and Valuation Committee any violations of this Code that he or she believes to be material. |
| The Chief Compliance Officer, upon becoming notified of a personal conflict of interest between an Officer and the Funds that the Chief Compliance Officer deems to be material, will report the issue to the Chairperson of the affected Funds Audit, Compliance and Valuation Committee and will work with the Chief Legal Officer and other appropriate parties to ensure that any required disclosures are made. |
C. TRUSTEES
| The Board of Trustees will consider appropriate action to address any violations of the Code that they deem to be material, which may include review of and appropriate modification to applicable policies and procedures, notification to appropriate personnel of CSIM or its board of directors, notification to appropriate personnel of The Charles Schwab Corporation or its board of directors, or a recommendation to dismiss the Officer. |
VI. REGULATORY AUTHORITY
This Code constitutes the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, CSIM, CSIMs affiliates, The Charles Schwab Corporation or other Fund service providers govern or purport to govern the behavior or activities of an Officer who is subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. CSIMs, the Funds and Charles Schwab & Co. Inc.s (as distributor) joint code of ethics under Rule 17j-1 pursuant to the 1940 Act and Rule 204A-1 of the Advisers Act, and CSIMs, CSIMs affiliates, and The Charles Schwab Corporations policies and procedures set forth in their respective compliance manuals and elsewhere are separate requirements applying to the Officers and are not part of this Code.
VERSION HISTORY
Adopted Schwab and Laudus Funds: June 15, 2011, Schwab ETFs: August 4, 2011 Revised August 8, 2013; December 11, 2015; August 25, 2016; December 11, 2017; September 25, 2018 (no changes); December 12, 2019; November 3, 2020; October 7, 2021; December 13, 2022, December 11, 2023
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab without prior permission of the Mutual Funds Chief Compliance Officer or his/her designee. | 6 |
CERTIFICATIONS
I, Omar Aguilar, certify that:
1. I have reviewed this report on Form N-CSR for the following series of Schwab Capital Trust: Schwab Fundamental Global Real Estate Index Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosures and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants Board of Trustees (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: April 16, 2024 | /s/ Omar Aguilar | |||||
Omar Aguilar Principal Executive Officer |
CERTIFICATIONS
I, Dana Smith, certify that:
1. I have reviewed this report on Form N-CSR for the following series of Schwab Capital Trust: Schwab Fundamental Global Real Estate Index Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosures and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants Board of Trustees (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: April 16, 2024 | /s/ Dana Smith | |||||
Dana Smith Principal Financial Officer |
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report for the following series of Schwab Capital Trust: Schwab Fundamental Global Real Estate Index Fund (the Fund) on Form N-CSR for the period ended February 29, 2024 (periodic report), each of the undersigned, being the Principal Executive Officer and Principal Financial Officer, respectively, hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1) The periodic report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the Fund for the period presented therein.
/s/ Omar Aguilar | Date: April 16, 2024 | |||
Omar Aguilar | ||||
Principal Executive Officer | ||||
/s/ Dana Smith | Date: April 16, 2024 | |||
Dana Smith | ||||
Principal Financial Officer |
This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.
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