<PAGE>
SCHWAB MUNICIPAL MONEY FUNDS
We're pleased to bring you this semiannual report for the following funds (the
Funds) for the six-month period ended June 30, 1998:
- Schwab Municipal Money Fund
- Schwab California Municipal Money Fund
- Schwab New York Municipal Money Fund
- Schwab New Jersey Municipal Money Fund
- Schwab Pennsylvania Municipal Money Fund
- Schwab Florida Municipal Money Fund
During the reporting period, the Funds provided current tax-exempt income
combined with capital stability and liquidity.(1) Please remember that while
each Fund seeks to maintain a stable $1.00 share price to protect your
principal, as with all money funds there can be no assurance that the Fund will
be able to maintain a $1.00 net asset value. It is also important to understand
that investments in any of the Funds are neither insured nor guaranteed by the
U.S. government.
Three of the Funds--the Schwab Municipal Money Fund, the Schwab California
Municipal Money Fund and the Schwab New York Municipal Money Fund--offer two
classes of shares, Sweep Shares-TM- and Value Advantage Shares-TM-, both of
which are presented in this report. These two classes were designed for
different purposes, as explained on page 3. Depending on your cash needs and
investment profile, either or both classes of the Funds may have a place in your
investment plan.
CONTENTS
<TABLE>
<S> <C>
- ------------------------------------------------
A Message from the Chairman 1
- ------------------------------------------------
What Money Fund Investors Should Know 2
- ------------------------------------------------
Market Overview 4
- ------------------------------------------------
Portfolio Management 7
- ------------------------------------------------
Schwab Municipal Money Fund 8
- ------------------------------------------------
Schwab California Municipal Money
Fund 9
- ------------------------------------------------
Schwab New York Municipal Money Fund 10
- ------------------------------------------------
Schwab New Jersey Municipal Money
Fund 11
- ------------------------------------------------
Schwab Pennsylvania Municipal Money
Fund 12
- ------------------------------------------------
Schwab Florida Municipal Money Fund 13
- ------------------------------------------------
Fund Discussion 14
- ------------------------------------------------
Glossary of Terms 19
- ------------------------------------------------
Portfolio Highlights 20
- ------------------------------------------------
Financial Statements and Notes 23
- ------------------------------------------------
</TABLE>
(1)Income from all of the Funds may be subject to the federal alternative
minimum tax (AMT), and income from the Schwab Municipal Money Fund may be
subject to state and local income taxes.
<PAGE>
A MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
The U.S. stock market rallied strongly over most of the six-month period ended
June 30, 1998, as did many European markets. And despite investors' concerns
about Asia's financial crisis last autumn, economic conditions continued to
provide a solid underpinning for U.S. business activity. The U.S. economy, as
measured by gross domestic product (GDP), grew at a strong real rate in the
first half of 1998, and it appears poised for continued growth. Inflation has
remained in check despite the lowest unemployment levels in decades, and
short-term interest rates remained in a relatively narrow range due, in part, to
widespread expectations that the Federal Reserve would make no
[PHOTO] changes to interest rates in the near term. This combination
of strong growth and tight labor markets, offset by low
inflation and uncertainty generated by continued turmoil in
Asian markets, resulted in a relatively calm short-term interest rate
environment with no clear trend during the six-month reporting period.
Regardless of short-term market trends, however, our philosophy has always been
that REGULAR INVESTING is the best strategy over the long term.
Your investment in a money fund may play an important role in your asset
allocation. Because of this, we've included some guidelines in the following
pages about what to look for in a money market fund. You might find that more
than one kind of money fund may be appropriate for you, depending on your goals
and financial situation. As always, feel free to contact us if you have any
questions.
The support of investors like you has helped Charles Schwab Investment
Management, Inc. (CSIM) become one of the largest and fastest-growing mutual
fund families in the nation. CSIM now manages more than $66 billion in assets on
behalf of more than 3.5 million SchwabFunds-Registered Trademark- shareholders.
We offer a full spectrum of 35 mutual funds for investors with varying financial
situations and goals.
Once again, thank you for your investment in SchwabFunds. We continue to do
everything we can to warrant the trust you have placed in us.
Sincerely,
/s/ Charles R. Schwab
Charles R. Schwab
June 30, 1998
1
<PAGE>
WHAT MONEY FUND INVESTORS SHOULD KNOW
WHY ASSET ALLOCATION MATTERS
As most investors know, one of the most compelling reasons to invest in a mutual
fund is diversification. By allocating your assets across many different
securities, a fund helps to reduce the risk that you might otherwise encounter
by owning just a few stocks or bonds.
Don't forget, however, that diversification across your portfolio is just as
important as diversification within one of the mutual funds you own. As you
probably know, stocks have historically offered much higher returns over the
long term than other asset classes, such as bonds or cash, but those returns
have come at the price of higher volatility. To help mitigate some of that risk,
many investors often include at least some bonds and cash in their portfolio.
CHOOSING A MONEY MARKET FUND
Many investors may believe that there is no good reason to shop around for a
money market fund. This may be partially due to the fact that 20 years ago
practically the only feature that differentiated one money market fund from
another was whether it allowed investors to write checks against it. Things have
changed since then, and today investors can choose from a wide variety of
options and features offered by the more than 1,000 money market funds currently
available.(1)
You can help assure yourself that you've chosen the right money market fund by
considering how it will be used and what role it will play in your investment
portfolio. Here are some things to consider when making or reviewing your money
market fund choice.
EXPENSES: Because expenses are one of the key factors that determines a money
market mutual fund's performance, investors are wise to seek out funds with low
operating expense ratios. Also, beware of those that have temporary expense
waivers that waive expenses to zero, because expenses can't stay at zero
forever, and fees will undoubtedly eventually rise.
Also beware of 12b-1 fees, which some money market funds include in their
expense ratios to pay for marketing costs. These fees can reduce yield--in some
cases by a full percentage point. A recent survey by a money market trade
publication found that more than 40% of taxable money market funds available to
individual investors charge these fees. When comparing money market fund
choices, you may want to avoid funds that carry these unnecessary fees.
YIELDS: Look for competitive yields--but don't stop there. Many institutions
advertise their money market funds on the basis of yield.(2) Although getting a
competitive yield is important, other features--such as how you access your
investment--are also important considerations. Furthermore, stretching for an
additional 10 or 20 basis points in yield (0.10% to 0.20%) may not be worth the
time, effort or added risk. For example, a $10,000 investment in a money fund
that yields 0.10% more amounts to only an additional $10 over a year-long
period.
SWEEP FEATURES: If you're looking for a convenient way to link your money market
fund with your brokerage account, consider an account that has a "sweep"
feature. Money market funds with this feature "sweep" uninvested cash balances
into your money fund. The upshot: It keeps cash working. This convenience may be
well worth the small additional cost.
LARGER CASH BALANCES: You may earn a higher yield for larger cash balances. If
you don't need frequent access to the money in your money market fund, consider
one designed to pay higher yields for a higher cash balance. Because the account
balances are higher, these money market funds normally incur lower expenses and,
therefore, may be able to post higher yields, all else being equal.
TAXES: Don't forget to consider your tax situation. If you're in a high
tax-bracket, investing in tax-free or municipal money market funds may help take
a bite out of your tax bill.(3) And, if you live in a state with a high personal
state income or other personal tax, you may be best served by choosing a state
tax-free fund that provides income free from federal and state and, in some
cases, local income taxes.(3)
(1)Money market funds are managed to maintain a stable $1 share price.
Investments in these funds are neither insured nor guaranteed by the U.S.
government, and there can be no assurance that a fund will be able to
maintain a stable net asset value of $1 per share.
(2)Yields may vary.
(3)This may not be true for investors subject to the federal alternative minumum
tax (AMT); consult your tax advisor.
2
<PAGE>
MONEY FUNDS AT SCHWAB
Schwab offers two types of money funds--Sweep Investments-TM- and Value
Advantage Investments-Registered Trademark---both of which offer taxable and
tax-advantaged alternatives. Depending on the role that cash and cash-equivalent
investments play in your investment plan, either or both may have a place in
your investment plan.
SWEEP INVESTMENTS-TM- are designed for cash balances requiring frequent
access--such as your short-term and even daily cash needs. These shares can be
linked to your Schwab brokerage account and contain a feature that automatically
"sweeps" uninvested cash balances into the Sweep Shares class of the Fund you
designate, according to the terms and conditions of your Schwab account. Sweep
Shares also may be used to settle trades and automatically cover other
day-to-day transactions, such as margin calls.
VALUE ADVANTAGE INVESTMENTS-REGISTERED TRADEMARK- are designed to serve as
longer-term money market investment vehicles for larger balances that do not
require frequent access. These funds may help fill the cash-equivalent sector in
your asset allocation plan. With higher minimum investment and balance
requirements and other transaction restrictions designed to minimize fund
operating expenses, Value Advantage Investments can offer the potential of
higher yields to investors. It is important to note that, unlike Sweep
Investments, Value Advantage Investments are not designed to automatically cover
negative balances in your Schwab account.
TAXABLE MONEY MARKET FUNDS
Schwab offers the following taxable money market Sweep investments. If you are
selecting from among them, you should consider your attitude toward risk and
return, as well as your income-tax bracket.
SCHWAB MONEY MARKET FUND invests in high-quality money market securities,
including commercial paper and certificates of deposit.
SCHWAB GOVERNMENT MONEY FUND invests exclusively in obligations issued or
guaranteed by the U.S. government, its agencies and instrumentalities, and
repurchase agreements.
SCHWAB U.S. TREASURY MONEY FUND invests exclusively in U.S. Treasury notes,
bills or other direct obligations of the U.S. government and pays income free
from state and local taxes in the vast majority of states.
TAX-ADVANTAGED MONEY FUNDS
The SCHWAB MUNICIPAL MONEY FUNDS may provide you with higher returns after
taxes, especially if you're in a high tax bracket.(4) The SCHWAB MUNICIPAL MONEY
FUND Sweep Shares-TM- invests in municipal obligations that generate income free
from federal income tax. And for investors in California, New York, New Jersey,
Pennsylvania and Florida, Schwab offers Sweep Investments that can also provide
income free from state and, in some instances, local taxes. Consult your tax
advisor for specific guidance on your tax situation before investing.
If you would like more information on any of these funds, please call us
toll-free at 1-800-435-4000 and request a free prospectus that contains more
information, including fees and expenses. Please read the prospectus before
investing.
WE MAKE IT EASY TO INVEST
We try to make it easy and convenient for you to invest in our
SchwabFunds-Registered Trademark-. In addition to our automated methods that
allow you to invest or transfer money to your Schwab account on a regular basis,
you can also invest in person at any of our nationwide branches, through our Web
site at WWW.SCHWAB.COM and through our automated touch-tone telephone service,
TeleBroker-Registered Trademark-, by calling 1-800-272-4922.
KEEPING YOU INFORMED
One of our top priorities at Charles Schwab is to keep you informed about your
investments and potential opportunities in the marketplace. A wealth of
information about our investment philosophy and funds, as well as the market
and economic environment, can be found at our Web site:
WWW.SCHWAB.COM/SCHWABFUNDS
(4)Income from all of the Funds may be subject to the alternative minimum tax
(AMT), and income from the Schwab Municipal Money Fund may be subject to
state and local taxes.
3
<PAGE>
MARKET OVERVIEW
U.S. GROWTH RATE
Although somewhat dampened during the second quarter, THE U.S. ECONOMY, AS
MEASURED BY THE GROSS DOMESTIC PRODUCT (GDP), GREW AT A STRONG REAL RATE OF 3.5%
for the first half of 1998--well in excess of the Federal Reserve's estimated
noninflationary growth rate of 2.0% to 2.75%.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
REAL GDP GROWTH RATE
QUARTERLY PERCENTAGE CHANGE (ANNUALIZED
RATE)
<S> <C>
Q1 1990 3.9%
Q2 1990 1.2%
Q3 1990 -1.9%
Q4 1990 -4.0%
Q1 1991 -2.1%
Q2 1991 1.8%
Q3 1991 1.0%
Q4 1991 1.0%
Q1 1992 4.7%
Q2 1992 2.5%
Q3 1992 3.0%
Q4 1992 4.3%
Q1 1993 0.1%
Q2 1993 2.0%
Q3 1993 2.1%
Q4 1993 5.3%
Q1 1994 3.0%
Q2 1994 4.7%
Q3 1994 1.8%
Q4 1994 3.6%
Q1 1995 0.9%
Q2 1995 0.3%
Q3 1995 3.0%
Q4 1995 2.2%
Q1 1996 1.8%
Q2 1996 6.0%
Q3 1996 1.0%
Q4 1996 4.3%
Q1 1997 4.9%
Q2 1997 3.3%
Q3 1997 3.1%
Q4 1997 3.7%
Q1 1998 5.5%
Q2 1998 1.4%
Source: Bloomberg L.P.
</TABLE>
At the time of this writing, THE U.S. ECONOMY APPEARS POISED FOR CONTINUED
GROWTH, further extending the current economic expansion that began in 1991.
This expansion is fueled by high levels of consumer confidence, rising real
wages and strong year-to-date gains in stock prices. Although most economists
believe that the brunt of Asia's economic crisis will hit the United States in
the next six months, they feel that it is unlikely to cause even a temporary
pause in U.S. economic growth; it may help slow the GDP growth rate nearer to
the Federal Reserve's estimated non-inflationary levels, however.
UNEMPLOYMENT
THE U.S. UNEMPLOYMENT RATE STOOD AT 4.5% IN JUNE AFTER FALLING TO 4.3% IN APRIL
AND MAY--THE LOWEST LEVELS IN 28 YEARS. Labor markets have become extremely
tight; growth in the labor force has slowed, and wage increases are beginning to
put more pressure on labor costs (refer to Employment Cost Index at right).
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
U.S. UNEMPLOYMENT RATE
<S> <C>
Jan-90 5.4%
Feb-90 5.3%
Mar-90 5.2%
Apr-90 5.4%
May-90 5.4%
Jun-90 5.2%
Jul-90 5.5%
Aug-90 5.7%
Sep-90 5.9%
Oct-90 5.9%
Nov-90 6.2%
Dec-90 6.3%
Jan-91 6.4%
Feb-91 6.6%
Mar-91 6.8%
Apr-91 6.7%
May-91 6.9%
Jun-91 6.9%
Jul-91 6.8%
Aug-91 6.9%
Sep-91 6.9%
Oct-91 7.0%
Nov-91 7.0%
Dec-91 7.3%
Jan-92 7.3%
Feb-92 7.4%
Mar-92 7.4%
Apr-92 7.4%
May-92 7.6%
Jun-92 7.8%
Jul-92 7.7%
Aug-92 7.6%
Sep-92 7.6%
Oct-92 7.3%
Nov-92 7.4%
Dec-92 7.4%
Jan-93 7.3%
Feb-93 7.1%
Mar-93 7.0%
Apr-93 7.1%
May-93 7.1%
Jun-93 7.0%
Jul-93 6.9%
Aug-93 6.8%
Sep-93 6.7%
Oct-93 6.8%
Nov-93 6.6%
Dec-93 6.5%
Jan-94 6.6%
Feb-94 6.6%
Mar-94 6.5%
Apr-94 6.4%
May-94 6.0%
Jun-94 6.1%
Jul-94 6.1%
Aug-94 6.1%
Sep-94 5.9%
Oct-94 5.8%
Nov-94 5.6%
Dec-94 5.4%
Jan-95 5.6%
Feb-95 5.4%
Mar-95 5.4%
Apr-95 5.7%
May-95 5.6%
Jun-95 5.6%
Jul-95 5.7%
Aug-95 5.7%
Sep-95 5.7%
Oct-95 5.6%
Nov-95 5.6%
Dec-95 5.6%
Jan-96 5.7%
Feb-96 5.5%
Mar-96 5.5%
Apr-96 5.5%
May-96 5.5%
Jun-96 5.3%
Jul-96 5.5%
Aug-96 5.2%
Sep-96 5.2%
Oct-96 5.3%
Nov-96 5.4%
Dec-96 5.3%
Jan-97 5.3%
Feb-97 5.3%
Mar-97 5.2%
Apr-97 5.0%
May-97 4.8%
Jun-97 5.0%
Jul-97 4.9%
Aug-97 4.9%
Sep-97 4.9%
Oct-97 4.8%
Nov-97 4.6%
Dec-97 4.7%
Jan-98 4.7%
Feb-98 4.6%
Mar-98 4.7%
Apr-98 4.3%
May-98 4.3%
Jun-98 4.5%
Source: Bloomberg L.P.
</TABLE>
4
<PAGE>
INFLATION
BOTH THE EMPLOYMENT COST INDEX (ECI) AND CONSUMER PRICE INDEX (CPI) REMAINED IN
CHECK during the first half of 1998, reflecting continued low inflation.
THE CPI ROSE just 1.7% for the year ended June 1998-- reaching levels during the
reporting period that were the lowest since January 1987. Its core rate (which
excludes the more volatile food and energy components) rose 2.2%--the lowest
rate of increase since 1965. The Employment Cost Index includes two
components--BENEFITS, which has been well contained (up only 2.4% for the year
ended Q2 1998), and WAGES AND SALARIES, which has increased 3.8% for the same
period.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MEASURES OF INFLATION
MONTHLY CONSUMER PRICE INDEX QUARTERLY EMPLOYMENT COST INDEX
<S> <C> <C>
Jan-90 5.2% 5.5%
Feb-90 5.3% 5.5%
Mar-90 5.2% 5.5%
Apr-90 4.7% 5.4%
May-90 4.4% 5.4%
Jun-90 4.7% 5.4%
Jul-90 4.8% 5.2%
Aug-90 5.6% 5.2%
Sep-90 6.2% 5.2%
Oct-90 6.3% 4.9%
Nov-90 6.3% 4.9%
Dec-90 6.1% 4.9%
Jan-91 5.7% 4.6%
Feb-91 5.3% 4.6%
Mar-91 4.9% 4.6%
Apr-91 4.9% 4.6%
May-91 5.0% 4.6%
Jun-91 4.7% 4.6%
Jul-91 4.4% 4.3%
Aug-91 3.8% 4.3%
Sep-91 3.4% 4.3%
Oct-91 2.9% 4.3%
Nov-91 3.0% 4.3%
Dec-91 3.1% 4.3%
Jan-92 2.6% 4.0%
Feb-92 2.8% 4.0%
Mar-92 3.2% 4.0%
Apr-92 3.2% 3.6%
May-92 3.0% 3.6%
Jun-92 3.1% 3.6%
Jul-92 3.2% 3.5%
Aug-92 3.1% 3.5%
Sep-92 3.0% 3.5%
Oct-92 3.2% 3.5%
Nov-92 3.0% 3.5%
Dec-92 2.9% 3.5%
Jan-93 3.3% 3.5%
Feb-93 3.2% 3.5%
Mar-93 3.1% 3.5%
Apr-93 3.2% 3.6%
May-93 3.2% 3.6%
Jun-93 3.0% 3.6%
Jul-93 2.8% 3.6%
Aug-93 2.8% 3.6%
Sep-93 2.7% 3.6%
Oct-93 2.8% 3.5%
Nov-93 2.7% 3.5%
Dec-93 2.7% 3.5%
Jan-94 2.5% 3.2%
Feb-94 2.5% 3.2%
Mar-94 2.5% 3.2%
Apr-94 2.4% 3.2%
May-94 2.3% 3.2%
Jun-94 2.5% 3.2%
Jul-94 2.8% 3.2%
Aug-94 2.9% 3.2%
Sep-94 3.0% 3.2%
Oct-94 2.6% 3.0%
Nov-94 2.7% 3.0%
Dec-94 2.7% 3.0%
Jan-95 2.8% 2.9%
Feb-95 2.9% 2.9%
Mar-95 2.9% 2.9%
Apr-95 3.1% 2.9%
May-95 3.2% 2.9%
Jun-95 3.0% 2.9%
Jul-95 2.8% 2.7%
Aug-95 2.6% 2.7%
Sep-95 2.5% 2.7%
Oct-95 2.8% 2.7%
Nov-95 2.6% 2.7%
Dec-95 2.5% 2.7%
Jan-96 2.7% 2.8%
Feb-96 2.7% 2.8%
Mar-96 2.8% 2.8%
Apr-96 2.9% 2.9%
May-96 2.9% 2.9%
Jun-96 2.8% 2.9%
Jul-96 3.0% 2.8%
Aug-96 2.9% 2.8%
Sep-96 3.0% 2.8%
Oct-96 3.0% 2.9%
Nov-96 3.3% 2.9%
Dec-96 3.3% 2.9%
Jan-97 3.0% 2.9%
Feb-97 3.0% 2.9%
Mar-97 2.8% 2.9%
Apr-97 2.5% 2.8%
May-97 2.2% 2.8%
Jun-97 2.3% 2.8%
Jul-97 2.2% 3.0%
Aug-97 2.2% 3.0%
Sep-97 2.2% 3.0%
Oct-97 2.1% 3.3%
Nov-97 1.8% 3.3%
Dec-97 1.7% 3.3%
Jan-98 1.6% 3.3%
Feb-98 1.4% 3.3%
Mar-98 1.4% 3.3%
Apr-98 1.4% 3.5%
May-98 1.7% 3.5%
Jun-98 1.7% 3.5%
Source: Bloomberg L.P. and Bureau of Labor
Statistics
</TABLE>
Although inflation has been well contained, the combination of a tight labor
market (as evidenced by low unemployment rates) and strong economic growth
typically leads to inflationary pressures on wages and, ultimately, prices. In
this environment, productivity growth becomes particularly important. Strong
productivity gains, such as those achieved in 1997, allow manufacturers and
other businesses to limit price increases in the face of rising wages without
sacrificing profit margins.
SHORT-TERM INTEREST RATE ENVIRONMENT
SHORT-TERM INTEREST RATES REMAINED IN A NARROW RANGE throughout the reporting
period due to widespread expectations that there would be no changes to the
Federal Reserve's interest rate policy.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
YIELDS ON 90-DAY COMMERCIAL PAPER
AND THREE-MONTH TREASURY BILLS: 1/1/98 THROUGH
6/30/98
3-MONTH 90-DAY COMMERCIAL
TREASURY BILL PAPER
<S> <C> <C>
1/1/98 5.35% 5.54%
1/2/98 5.29% 5.54%
1/5/98 5.23% 5.56%
1/6/98 5.20% 5.47%
1/7/98 5.20% 5.45%
1/8/98 5.10% 5.44%
1/9/98 5.01% 5.42%
1/12/98 5.02% 5.36%
1/13/98 5.19% 5.38%
1/14/98 5.15% 5.37%
1/15/98 5.11% 5.37%
1/16/98 5.15% 5.41%
1/19/98 5.15% 5.41%
1/20/98 5.15% 5.41%
1/21/98 5.11% 5.39%
1/22/98 5.13% 5.40%
1/23/98 5.17% 5.40%
1/26/98 5.12% 5.40%
1/27/98 5.25% 5.40%
1/28/98 5.21% 5.39%
1/29/98 5.19% 5.40%
1/30/98 5.18% 5.42%
2/2/98 5.22% 5.40%
2/3/98 5.23% 5.40%
2/4/98 5.11% 5.42%
2/5/98 5.15% 5.38%
2/6/98 5.17% 5.43%
2/9/98 5.13% 5.41%
2/10/98 5.21% 5.42%
2/11/98 5.20% 5.42%
2/12/98 5.21% 5.43%
2/13/98 5.15% 5.39%
2/16/98 5.21% 5.39%
2/17/98 5.18% 5.40%
2/18/98 5.17% 5.41%
2/19/98 5.19% 5.43%
2/20/98 5.20% 5.44%
2/23/98 5.24% 5.43%
2/24/98 5.32% 5.44%
2/25/98 5.30% 5.42%
2/26/98 5.34% 5.45%
2/27/98 5.31% 5.48%
3/2/98 5.30% 5.42%
3/3/98 5.17% 5.45%
3/4/98 5.15% 5.47%
3/5/98 5.16% 5.47%
3/6/98 5.15% 5.47%
3/9/98 5.09% 5.49%
3/10/98 5.08% 5.47%
3/11/98 5.08% 5.45%
3/12/98 5.08% 5.46%
3/13/98 5.09% 5.48%
3/16/98 5.10% 5.49%
3/17/98 5.14% 5.45%
3/18/98 5.15% 5.46%
3/19/98 5.17% 5.46%
3/20/98 5.17% 5.46%
3/23/98 5.14% 5.45%
3/24/98 5.14% 5.47%
3/25/98 5.17% 5.45%
3/26/98 5.20% 5.45%
3/27/98 5.21% 5.46%
3/30/98 5.21% 5.44%
3/31/98 5.12% 5.47%
4/1/98 5.11% 5.46%
4/2/98 5.09% 5.48%
4/3/98 5.08% 5.47%
4/6/98 5.08% 5.45%
4/7/98 5.04% 5.46%
4/8/98 5.05% 5.45%
4/9/98 5.05% 5.46%
4/10/98 5.05% 5.46%
4/13/98 5.16% 5.43%
4/14/98 5.11% 5.46%
4/15/98 5.07% 5.46%
4/16/98 5.05% 5.47%
4/17/98 5.04% 5.45%
4/20/98 5.02% 5.47%
4/21/98 5.07% 5.44%
4/22/98 5.08% 5.46%
4/23/98 5.08% 5.44%
4/24/98 5.06% 5.45%
4/27/98 5.05% 5.51%
4/28/98 5.06% 5.49%
4/29/98 5.06% 5.49%
4/30/98 4.97% 5.49%
5/1/98 5.00% 5.46%
5/4/98 5.02% 5.47%
5/5/98 5.11% 5.46%
5/6/98 5.10% 5.49%
5/7/98 5.10% 5.46%
5/8/98 5.12% 5.47%
5/11/98 5.12% 5.48%
5/12/98 5.13% 5.47%
5/13/98 5.12% 5.48%
5/14/98 5.16% 5.49%
5/15/98 5.16% 5.49%
5/18/98 5.17% 5.50%
5/19/98 5.20% 5.50%
5/20/98 5.18% 5.48%
5/21/98 5.23% 5.48%
5/22/98 5.21% 5.48%
5/25/98 5.21% 5.48%
5/26/98 5.10% 5.48%
5/27/98 5.09% 5.49%
5/28/98 5.05% 5.48%
5/29/98 5.01% 5.47%
6/1/98 4.97% 5.49%
6/2/98 5.20% 5.46%
6/3/98 5.11% 5.48%
6/4/98 5.11% 5.48%
6/5/98 5.11% 5.48%
6/8/98 5.12% 5.49%
6/9/98 5.14% 5.48%
6/10/98 5.13% 5.49%
6/11/98 5.09% 5.48%
6/12/98 5.11% 5.49%
6/15/98 5.11% 5.47%
6/16/98 5.16% 5.47%
6/17/98 5.21% 5.48%
6/18/98 5.18% 5.49%
6/19/98 5.15% 5.48%
6/22/98 5.12% 5.49%
6/23/98 5.07% 5.48%
6/24/98 5.04% 5.50%
6/25/98 5.00% 5.48%
6/26/98 4.99% 5.49%
6/29/98 5.00% 5.50%
6/30/98 4.99% 5.47%
</TABLE>
The combination of strong first-quarter growth and tight labor markets, offset
by continued low inflation and uncertainty regarding Asia, resulted in a
relatively calm short-term interest rate environment with no clear direction
over the period.
5
<PAGE>
MARKET OVERVIEW (continued)
SHORT-TERM MUNICIPAL RATES
SHORT-TERM MUNICIPAL COMMERCIAL PAPER RATES exhibited a pattern similar to those
of taxable commercial paper yields, demonstrating relatively minimal volatility
and no clear direction during the period.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
90-DAY MUNICIPAL
COMMERCIAL PAPER
YIELD
<S> <C>
1/7/98 3.50%
1/14/98 3.40%
1/21/98 3.50%
1/28/98 3.55%
2/4/98 3.45%
2/11/98 3.25%
2/18/98 3.40%
2/25/98 3.45%
3/4/98 3.40%
3/11/98 3.35%
3/18/98 3.50%
3/25/98 3.60%
4/1/98 3.60%
4/8/98 3.60%
4/15/98 3.70%
4/22/98 3.80%
4/29/98 3.70%
5/6/98 3.75%
5/13/98 3.70%
5/20/98 3.70%
5/27/98 3.65%
6/3/98 3.60%
6/10/98 3.60%
6/17/98 3.55%
6/24/98 3.55%
7/1/98 3.40%
</TABLE>
As Federal Reserve Chairman Alan Greenspan said in his February congressional
testimony, "The key question going forward is whether the restraint building
from the turmoil in Asia will be sufficient to check inflationary tendencies
that might otherwise result from the strength of domestic spending and
tightening labor markets." Although many economists believe that the Federal
Reserve has a longer-term bias toward more-restrictive monetary policy, they
also anticipate a slowing of the GDP growth rate for the remainder of the year.
Therefore, they do not expect that the Federal Reserve will, over the near term,
implement any restrictive policy changes (increases to the federal funds rate)
unless more-meaningful signs of inflation appear.
Since the last federal funds rate increase to 5.5% in March 1997, the rate of
inflation--as measured by the year-over-year change in the CPI--has dropped from
2.8% to 1.7%. Thus the real (inflation-adjusted) federal funds rate has
increased from 2.7% in March 1997 to 3.8% in June 1998. In his June 1998
testimony to Congress, Chairman Greenspan commented on the following statement
by Senator Paul S. Sarbanes: "By holding the federal funds rate constant at a
time when inflation has been dropping, in effect the Federal Reserve has raised
real interest rates. Monetary policy has tightened even though you have not
raised the rate." Chairman Greenspan's response: "That is correct."
NOTE: THIS MARKET OVERVIEW HAS BEEN PROVIDED BY THE PORTFOLIO MANAGEMENT TEAM.
6
<PAGE>
PORTFOLIO MANAGEMENT
THE PORTFOLIO MANAGEMENT TEAM
STEPHEN B. WARD, Senior Vice President and Chief Investment Officer, has
overall responsibility for the management of the Funds' portfolios. Steve
joined Charles Schwab Investment Management, Inc. (CSIM) as Vice President and
Portfolio Manager in April 1991 and was promoted to his current position in
August 1993. Prior to joining CSIM, Steve was Vice President and Portfolio
Manager at Federated Investors.
WALTER BEVERIDGE, Portfolio Manager, has managed the Schwab Municipal Money
Fund since April 1992, when he joined CSIM; the Schwab Pennsylvania Municipal
Money Fund since its inception in February 1998; and the Schwab Florida
Municipal Money Fund since its inception in March 1998. Walter also managed
the Schwab California Municipal Money Fund from April 1992 through November
1997 and the Schwab New York Municipal Money Fund from its inception in
February 1995 through November 1997. Prior to joining CSIM, Walter was
Portfolio Manager for the Benham Group.
CHARLES SOULIS, Portfolio Manager, has managed the Schwab California Municipal
Money Fund and the Schwab New York Municipal Money Fund since he joined CSIM
in December 1997, and the Schwab New Jersey Municipal Money Fund since its
inception in February 1998. Prior to joining CSIM, Charles was Portfolio
Manager for Wells Capital Management.
7
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep Value Advantage
Shares-TM- Shares-TM-
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Seven-Day Yield 2.95% 3.16%
- ---------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.99% 3.21%
- ---------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 4.96% 5.32%
- ---------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal tax-exempt income paid by the
Schwab Municipal Money Fund may provide you with higher yields than those of
taxable money funds on a taxable-equivalent basis.(3) The figures below
illustrate the yield differential on a taxable-equivalent basis of both classes
of the Fund's shares compared with the average seven-day effective yield as of
6/30/98 for first-tier taxable money funds of 5.06%(4):
<TABLE>
<CAPTION>
Sweep Shares Value Advantage Shares
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Yield differential over average taxable money fund: (0.10%) 0.26%
- ---------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.73%, 2.77% and
4.59%, respectively, for the Sweep Shares, and 2.93%, 2.97% and 4.92%,
respectively, for the Value Advantage Shares.
(2)Taxable-equivalent effective yield assumes a 1998 maximum federal income tax
rate of 39.60%.
(3)Income may be subject to state and local taxes and the alternative minimum
tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab Municipal Money Fund invests in a diversified portfolio of
high-quality, short-term municipal securities issued by or on behalf of a state,
including its counties, municipalities and other subdivisions, or the
territories and possessions of the United States and the District of Columbia,
including their political subdivisions, agencies and instrumentalities. The
chart at the right illustrates the composition of the Fund's portfolio as of
6/30/98 and is not indicative of its holdings after that date. A complete list
of the securities in the Fund's portfolio as of 6/30/98 is provided in the
Statement of Net Assets later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 62.5%
Tax-Exempt Commercial Paper 10.2%
Anticipation Notes 8.7%
Variable and Fixed-Rate Tender Option
Bonds 5.9%
Mandatory Put Bonds 5.6%
Revenue Bonds 4.5%
General Obligations 1.3%
Optional Put Bonds 1.2%
Certificates of Participation 0.1%
</TABLE>
8
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep Value Advantage
Shares-TM- Shares-TM-
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Seven-Day Yield 2.77% 2.97%
- ---------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.81% 3.01%
- ---------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 5.13% 5.50%
- ---------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and California state tax-exempt
income paid by the Schwab California Municipal Money Fund may provide you with
higher yields than those of taxable money funds on a taxable-equivalent
basis.(3) The figures below illustrate the yield advantage on a
taxable-equivalent basis of both classes of these shares compared with the
average seven-day effective yield as of 6/30/98 for first-tier taxable money
funds of 5.06%(4):
<TABLE>
<CAPTION>
Sweep Shares Value Advantage Shares
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Yield advantage over average taxable money fund: 0.07% 0.44%
- ---------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.53%, 2.56% and
4.67%, respectively, for the Sweep Shares, and 2.73%, 2.77% and 5.06%,
respectively, for the Value Advantage Shares.
(2)Taxable-equivalent effective yield assumes a 1998 maximum combined federal
regular income tax and California state personal income tax rate of 45.22%.
(3)Income may be subject to the alternative minimum tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab California Municipal Money Fund invests in a portfolio of
high-quality, short-term municipal securities issued by the State of California,
including its counties, municipalities and other subdivisions. The chart at
right illustrates the composition of the Fund's portfolio as of 6/30/98 and is
not indicative of its holdings after that date. A complete list of the
securities in the Fund's portfolio as of 6/30/98 is provided in the Statement of
Net Assets later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 54.9%
Tax-Exempt Commercial Paper 24.8%
Anticipation Notes 11.4%
Variable and Fixed-Rate Tender Option
Bonds 4.8%
Mandatory Put Bonds 1.8%
Revenue Bonds 1.1%
General Obligations 1.1%
Certificates of Participation 0.1%
</TABLE>
9
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep Value Advantage
Shares-TM- Shares-TM-
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Seven-Day Yield 2.86% 3.10%
- ---------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.90% 3.15%
- ---------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 5.42% 5.88%
- ---------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal, New York state and New York local
tax-exempt income paid by the Schwab New York Municipal Money Fund may provide
you with higher yields than those of taxable money funds on a taxable-equivalent
basis.(3) The figures below illustrate the yield advantage on a
taxable-equivalent basis of both classes of the Fund's shares compared with the
average seven-day effective yield as of 6/30/98 for first-tier taxable money
funds of 5.06%(4):
<TABLE>
<CAPTION>
Sweep Shares Value Advantage Shares
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
Yield advantage over average taxable money fund: 0.36% 0.82%
- ---------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.57%, 2.60% and
4.85%, respectively, for the Sweep Shares, and 2.76%, 2.80% and 5.23%,
respectively, for the Value Advantage Shares.
(2)Taxable equivalent effective yield assumes a 1998 maximum combined federal
income tax and New York state and New York City personal income tax rate of
46.43%.
(3)Income may be subject to the alternative minimum tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab New York Municipal Money Fund invests in a portfolio of high-quality,
short-term municipal securities issued by the State of New York, including its
counties, municipalities and other subdivisions. The chart at right illustrates
the composition of the Fund's portfolio as of 6/30/98 and is not indicative of
its holdings after that date. A complete list of the securities in the Fund's
portfolio as of 6/30/98 is provided in the Statement of Net Assets later in this
report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 49.4%
Tax-Exempt Commercial Paper 21.7%
Anticipation Notes 15.6%
Variable-Rate Tender Option Bonds 10.7%
Revenue Bonds 1.4%
General Obligations 1.2%
</TABLE>
10
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep
Shares-TM-
<S> <C>
- ----------------------------------------------------------------------------------------------
Seven-Day Yield 2.89%
- ----------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.93%
- ----------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 5.18%
- ----------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and New Jersey state tax-exempt
income paid by the Schwab New Jersey Municipal Money Fund may provide you with
higher yields than those of taxable money funds on a taxable-equivalent
basis.(3) The figures below illustrate the yield advantage on a
taxable-equivalent basis of the Fund's shares compared with the average
seven-day effective yield as of 6/30/98 for first-tier taxable money funds of
5.06%(4):
<TABLE>
<CAPTION>
Sweep Shares
<S> <C>
- ----------------------------------------------------------------------------------------------
Yield advantage over average taxable money fund: 0.12%
- ----------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.37%, 2.40% and
4.24%, respectively, for the Sweep Shares.
(2)Taxable-equivalent effective yield assumes a 1998 maximum combined federal
regular income tax and New Jersey personal income tax rate of 43.45%.
(3)Income may be subject to the alternative minimum tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab New Jersey Municipal Money Fund invests in a portfolio of
high-quality, short-term municipal securities issued by the State of New Jersey,
including its counties, municipalities and other subdivisions. The chart at
right illustrates the composition of the Fund's portfolio as of 6/30/98 and is
not indicative of its holdings after that date. A complete list of the
securities in the Fund's portfolio as of 6/30/98 is provided in the Statement of
Net Assets later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 39.2%
Anticipation Notes 20.2%
Revenue Bonds 13.6%
Variable-Rate Tender Option Bonds 11.1%
Tax-Exempt Commercial Paper 6.3%
Mandatory Put Bonds 4.7%
General Obligations 4.4%
Certificates of Participation 0.5%
</TABLE>
11
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep
Shares-TM-
<S> <C>
- ----------------------------------------------------------------------------------------------
Seven-Day Yield 2.99%
- ----------------------------------------------------------------------------------------------
Seven-Day Effective Yield 3.03%
- ----------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 5.16%
- ----------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and Pennsylvania state tax-exempt
income paid by the Schwab Pennsylvania Municipal Money Fund may provide you with
higher yields than those of taxable money funds on a taxable-equivalent
basis.(3) The figures below illustrate the yield advantage on a taxable-
equivalent basis of the Fund's shares compared with the average seven-day
effective yield as of 6/30/98 for first-tier taxable money funds of 5.06%(4):
<TABLE>
<CAPTION>
Sweep Shares
<S> <C>
- ----------------------------------------------------------------------------------------------
Yield advantage over average taxable money fund: 0.10%
- ----------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.43%, 2.46% and
4.19%, respectively, for the Sweep Shares.
(2)Taxable-equivalent effective yield assumes a 1998 maximum combined federal
income tax and Pennsylvania personal income tax rate of 41.29%.
(3)Income may be subject to the alternative minimum tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab Pennsylvania Municipal Money Fund invests in a portfolio of
high-quality, short-term municipal securities issued by the Commonwealth of
Pennsylvania, including its counties, municipalities and other subdivisions. The
chart at right illustrates the composition of the Fund's portfolio as of 6/30/98
and is not indicative of its holdings after that date. A complete list of the
securities in the Fund's portfolio as of 6/30/98 is provided in the Statement of
Net Assets later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 57.8%
Revenue Bonds 13.6%
Variable-Rate Tender Option Bonds 11.4%
General Obligations 5.3%
Tax-Exempt Commercial Paper 5.1%
Tax and Revenue Anticipation
Notes 5.0%
Certificates of Participation 1.5%
Option Put Bonds 0.3%
</TABLE>
12
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
FUND PERFORMANCE AND PORTFOLIO COMPOSITION
YIELD SUMMARY AS OF 6/30/98(1)
<TABLE>
<CAPTION>
Sweep Shares
<S> <C>
- -----------------------------------------------------------------------------------------------
Seven-Day Yield 3.02%
- -----------------------------------------------------------------------------------------------
Seven-Day Effective Yield 3.07%
- -----------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Effective Yield(2) 5.07%
- -----------------------------------------------------------------------------------------------
</TABLE>
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the tax-exempt income paid by the Schwab
Florida Municipal Money Fund may provide you with higher yields than those of
taxable money funds on a taxable-equivalent basis.(3) The figures below
illustrate the yield advantage on a taxable-equivalent basis of the Fund's
shares compared with the average seven-day effective yield as of 6/30/98 for
first-tier taxable money funds of 5.06%(4). The Fund also seeks to invest so
that its shares are exempt from the Florida intangible tax.
<TABLE>
<CAPTION>
Sweep Shares
<S> <C>
- -----------------------------------------------------------------------------------------------
Yield advantage over average taxable money fund: 0.01%
- -----------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/30/98. This relationship was not consistent
throughout the reporting period.
(1)A portion of the Fund's expenses were reduced during the reporting period.
Without these reductions, as of 6/30/98, the seven-day, seven-day effective
and seven-day taxable-equivalent yields would have been 2.57%, 2.60% and
4.30%, respectively, for the Sweep Shares.
(2)Taxable-equivalent effective yield assumes a 1998 maximum federal income tax
rate of 39.6%.
(3)Income may be subject to the alternative minimum tax (AMT).
(4)Source: IBC Financial Data, Inc.'s weekly average seven-day effective yield
for the 286 funds in the first-tier category of taxable money funds, as of
6/30/98. Past performance is no guarantee of future results.
(5)These percentages do not take into account other assets and liabilities.
PORTFOLIO COMPOSITION
The Schwab Florida Municipal Money Fund invests in a portfolio of high-quality,
short-term municipal securities issued by the State of Florida, including its
counties, municipalities and other subdivisions. The chart at right illustrates
the composition of the Fund's portfolio as of 6/30/98, and is not indicative of
its holdings after that date. A complete list of the securities in the Fund's
portfolio as of 6/30/98, is provided in the Statement of Net Assets later in
this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS(5)
as of 6/30/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable-Rate Obligations 60.6%
Variable-Rate Tender Option Bonds 13.7%
Anticipation Notes 11.9%
Revenue Bonds 5.6%
Tax-Exempt Commercial Paper 3.6%
General Obligation Bonds 3.5%
Mandatory Put Bonds 0.8%
Special Assessment Bonds 0.3%
</TABLE>
13
<PAGE>
FUND DISCUSSION
QUESTIONS TO THE
PORTFOLIO MANAGEMENT TEAM
Q. HOW HAS THE PORTFOLIO MANAGEMENT TEAM
ADJUSTED EACH FUND'S PORTFOLIO TO RESPOND TO
THE INTEREST RATE ENVIRONMENT?
A. We managed the dollar-weighted average maturity (DWAM) for the portfolios of
all six Funds to capitalize on the seasonal cycles typical of short-term
municipal securities markets. In anticipation of lower rates for demand notes
issued in early 1998, the portfolio managers took the opportunity to extend the
maturities of the Funds at the end of December 1997.
This allowed the Funds to lock in higher rates and to be insulated from the
lower rates typical of notes issued in January. Due to the relatively stable
interest rate and supply/demand environment in the municipal securities market
throughout much of the reporting period, the Funds maintained a somewhat neutral
strategy, with DWAMs comparable to those of other funds with similar investment
objectives.
The following table shows the DWAM for each Fund at the beginning and end of the
reporting period (or since a Fund's inception, if less than six months old).
<TABLE>
<CAPTION>
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
12/31/97 48 days 51 days 63 days
- ----------------------------------------------------------------------------------
6/30/98 56 days 44 days 35 days
- ----------------------------------------------------------------------------------
<CAPTION>
NEW JERSEY PENNSYLVANIA FLORIDA
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
At inception* 49 days 43 days 27 days
- ----------------------------------------------------------------------------------
6/30/98 42 days 60 days 52 days
- ----------------------------------------------------------------------------------
</TABLE>
*Inception for the New Jersey and Pennsylvania Funds was 2/2/98. The inception
date for the Florida Fund was 3/18/98.
Q. WHAT IMPACT HAVE THE ECONOMIC PROBLEMS IN THE PACIFIC RIM HAD ON THE
MANAGEMENT OF THE FUNDS' PORTFOLIOS?
A. Beginning in the fourth quarter of 1997, many Asian economies experienced
economic problems and severe currency devaluations--collectively referred to as
the "Asian Flu." These problems are expected by many to continue through 1998.
Although it is a serious global problem that will no doubt have a credit impact
on issuers of securities in those countries and their economies, it has not had
a significant effect on issuers of what typically are considered money
market-eligible securities. Nevertheless, we continue as always to carefully
monitor the creditworthiness of any issuers of securities considered for
investment.
As we have discussed in previous reports, all of the Schwab Municipal Money
Funds frequently own municipal securities that are insured or backed by a letter
of credit issued by a first-tier financial institution, which may be
foreign-based. These arrangements are referred to as "credit enhancements"
because they provide incremental levels of
14
<PAGE>
creditworthiness. During the reporting period, the Schwab Municipal Money Funds
reduced their exposure to Japanese issuers of credit enhancements. The following
table shows the Funds' holdings of securities with Japanese credit enhancements
as of June 30, 1998 (expressed as a percentage of each Fund's net assets). As
part of our regular credit review process, we continuously monitor the credit
quality of both the enhancement providers and the issuers of the Funds'
portfolio securities.
<TABLE>
<S> <C>
- -------------------------------------------------
Schwab Municipal Money Fund 0.17%
- -------------------------------------------------
Schwab California Municipal Money Fund 1.62%
- -------------------------------------------------
Schwab New York Municipal Money Fund 2.50%
- -------------------------------------------------
Schwab New Jersey Municipal Money Fund 0.00%
- -------------------------------------------------
Schwab Pennsylvania Municipal
Money Fund 0.00%
- -------------------------------------------------
Schwab Florida Municipal Money Fund 0.00%
- -------------------------------------------------
</TABLE>
EACH OF THE FOLLOWING QUESTIONS IS SPECIFIC TO A SINGLE-STATE FUND:
CALIFORNIA MUNICIPAL MONEY FUND
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN CALIFORNIA?
A. California is embarking on its fifth year of economic recovery. As noted in
the Governor's Budget Highlights, 1997 was the best year in this decade for the
state's economy, with employment growth exceeding 3%, personal income up by more
than 7% and a seven-year low for the unemployment rate. Looking forward, it is
anticipated that California will see continued moderate growth across most
industry sectors, with some growing at a much slower pace, such as those heavily
dependent on exporting goods and services to Asia. As noted in the Governor's
1998/99 Budget Proposal, the effect on California of the economic weakness in
Asia is expected to be somewhat offset by the effects of California's strong
export growth to Mexico and increasing exports to Europe.
The continued economic improvement in the state has allowed for a buildup of
budget reserves and an easing of some of the spending restrictions imposed
during the last recession. At the end of the 1997/98 budget year, the state had
a budget surplus of approximately $1 billion. While the budget surplus was a
welcomed event, it has delayed the adoption of the final 1998/99 budget as
lawmakers try to reach a consensus on how to handle the surplus. Even after the
final 1998/99 budget is adopted, as in prior years, budget adjustments may be
necessary to keep spending in line with revenues. Lawmakers will continue to
address the challenge of balancing mandated spending requirements for education
and public safety against the need for maintaining and upgrading public
infrastructure. As a result, the state's financial position may be somewhat
static over the next 12 months.
We are satisfied that the California securities held by the Fund represent
minimal credit risk and we will, as always, continue to closely monitor the
state's economic situation. California's current credit ratings are A1 from
Moody's Investor Service, A+ from Standard & Poor's Corporation and AA- from
Fitch IBCA, Inc., three well-known rating agencies.
15
<PAGE>
FUND DISCUSSION (continued)
NEW YORK MUNICIPAL MONEY FUND
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN NEW YORK?
A. A diverse economic base and the central role New York City continues to play
in international finance, tourism and other service-related businesses continue
to support New York State's satisfactory credit quality. The state entered the
1990 recession earlier than others, and its recovery has been slower and less
robust. For the 1997/98 fiscal year, the state predicted a 1.4% increase in
employment, which marked the highest level of job growth since 1988, the year
prior to the last recession. Economic growth may continue to be constrained by
ongoing structural changes in the economy, such as corporate downsizing and
relocation and cutbacks in defense spending.
In spite of budgetary surpluses in five of the past six years, New York still
faces the challenge of resolving longstanding general fund imbalances. The 1999
budget, adopted in May 1998 with a focus on educational spending, maintained
previously enacted tax reductions. As in prior years, spending is projected to
be higher, with economic growth covering the 7% increase in expenditures.
Therefore, although the state may see higher revenues over the next 12 months,
it may not be able to make a significant improvement in its general fund
reserves. Further, while the state's economic projections are reasonable and in
line with those of independent institutions, much of the growth is reliant on
continued strength in the financial services sector. This reliance is viewed as
a potential weakness given the uncertainty of the financial services sector's
ability to perform as strongly as it has over the past three years.
We are satisfied that the New York securities held by the Fund represent minimal
credit risk and we will continue to monitor the state's economic situation
closely. New York's current credit ratings are A2 from Moody's Investor Service,
A from Standard & Poor's Corporation and A+ from Fitch IBCA, Inc., three well-
known rating agencies.
NEW JERSEY MUNICIPAL MONEY FUND
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN NEW JERSEY?
A. New Jersey's above-average credit quality is derived from its diversified
economy, high personal income levels (second only to Connecticut) and strong
control of its finances. Just like much of the Northeast region, New Jersey was
severely impacted by the recession of the early 1990s. Recovery came slowly,
with annual increases in non-farm employment from 1991 to 1996 registering less
than half the national rate. A spike in job growth in 1997 finally returned the
state to its pre-recession level of total employment. Continued economic growth
may, however, be constrained by ongoing structural changes in the economy, such
as corporate downsizing and relocation.
Over the past few years, increasing tax revenues, use of non recurring financial
resources and spending controls have resulted in excess revenues or lower
expenses that provided the state a financial cushion equal to approximately 6%
of its annual expenditures. The state's 1999 budget was adopted on June 30,
1998, and generally follows the track of prior years with no new taxes and a
focus on educational and environmental spending. As in prior years, higher
spending is expected to be offset by a 4.2% increase in total
16
<PAGE>
revenue. Therefore, although the state may see higher revenues over the next 12
months, it may not be able to make a significant improvement in its general fund
reserves. Further, while the state's economic projections are reasonable and in
line with those of independent institutions, much of the growth is reliant on
continued strength in the financial services sector. This reliance is viewed as
a potential weakness given the uncertainty of the financial services sector's
ability to perform as strongly as it has over the past three years.
We are satisfied that the New Jersey securities held by the Fund represent
minimal credit risk and we will continue to monitor the state's economic
situation closely. New Jersey's current credit ratings are Aa1 from Moody's
Investor Service, AA+ from Standard & Poor's Corporation and AA+ from Fitch
IBCA, Inc., three well-known rating agencies.
PENNSYLVANIA MUNICIPAL MONEY FUND
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN PENNSYLVANIA?
A. Pennsylvania's above-average credit quality is derived from its conservative
financial management, slow-but-improving job growth, economic diversification
and moderate debt levels. Just like much of the region, Pennsylvania was
severely impacted by the recession of the early 1990s. Recovery came slowly,
with annual increases in non-farm employment from 1991 to 1996 registering less
than half the national rate. This slow-but-steady pace of job growth from 1991
to 1996 coupled with a somewhat higher rate in 1997 brought the state's total
employment to 7% above the prerecession peak. Continued economic growth may,
however, be constrained by ongoing structural changes in the economy, especially
in the manufacturing sector.
In each of the past six years, Pennsylvania has generated operating surpluses.
This has allowed the state to make contributions to its budget reserve, which
now totals more than $400 million, or approximately 2.4% of 1998 revenues. The
state's 1999 budget was adopted prior to the start of its new fiscal year on
July 1, 1997. It generally follows the governor's proposal of additional tax
relief for both corporations and individuals and, as expected, uses most of the
accumulated general fund surplus. Given its historically conservative revenue
growth projections, the state is not expected to make a significant draw on its
reserves in fiscal 1999. However, it is possible that future economic growth
will be slower than projected and cause budgetary constraints leading to
spending reductions and possible depletions of accumulated reserves.
We are satisfied that the Pennsylvania securities held by the Fund represent
minimal credit risk and we will continue to monitor the state's economic
situation closely. Pennsylvania's current credit ratings are Aa3 from Moody's
Investor Service, AA- from Standard & Poor's Corporation and AA from Fitch IBCA,
Inc., three well-known rating agencies.
FLORIDA MUNICIPAL MONEY FUND
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN FLORIDA?
A. Sustained rapid growth has helped Florida become the fourth-largest state in
the nation. The state continues to see its economy diversify into trade,
services, finance and exports, greatly reducing its
17
<PAGE>
FUND DISCUSSION (continued)
previous dependence on agriculture and tourism. This economic diversification,
along with moderate debt levels and successful financial operations, has
contributed to Florida's above-average credit quality. As the state has grown,
it has successfully met the challenges of funding the growth and maintaining a
balanced budget during periods of economic weakness using a combination of
budgetary control and management restraint. With sales tax revenues accounting
for approximately 70% of total revenues, Florida has taken steps to increase its
financial reserves by adding the Budget Stabilization Fund. In fact, through the
end of fiscal 1997, this fund has grown to about 2.8% of general fund revenues
and seems to be on track to reach the state's goal of 5% by the end of 1999.
Because of the state's significant dependence on sales tax revenues, which are
inherently volatile, however, it may not reach its reserve goal even with
continued growth in the economy.
We are satisfied that the Florida securities held by the Fund represent minimal
credit risk and we will continue to monitor the state's economic situation
closely. Florida's current credit ratings are Aa2 from Moody's Investor Service,
AA+ from Standard & Poor's Corporation and AA from Fitch IBCA, Inc., three
well-known rating agencies.
18
<PAGE>
GLOSSARY OF TERMS
ALTERNATIVE MINIMUM TAX (AMT)--A federal tax on income, in addition to regular
income taxes, designed to ensure that corporations and very wealthy individuals
pay at least some income tax each year.
COMMERCIAL PAPER--Short-term, interest-paying obligations issued by banks,
corporations and other borrowers.
CREDIT ENHANCEMENTS--A bank letter of credit, purchase agreement, insurance,
line of credit or other instrument that provides an additional level of
financial strength for debt securities to supplement the creditworthiness of the
issuer.
DOLLAR-WEIGHTED AVERAGE MATURITY (DWAM)--A measure of the average maturity of a
mutual fund's entire portfolio, weighted by the value of its individual
holdings.
FEDERAL FUNDS RATE--A key interest rate charged by banks when lending money to
other banks overnight.
FEDERAL RESERVE--The central bank of the United States, which establishes
policies on bank reserves
and regulations, determines the discount rate and the federal funds rate, and
tightens or loosens the availability of credit.
FIRST-TIER SECURITY--A security rated in the highest credit-rating category by a
requisite number of nationally recognized statistical rating organizations such
as Moody's, Standard & Poor's-Registered Trademark-, Duff or Fitch.
MATURITY--The length of time remaining until the issuer of a debt security must
repay the principal amount.
REAL GDP--The national gross domestic product (GDP)--the total value of all
goods and services produced in the United States over a specific period
of time--adjusted for the rate of inflation to allow meaningful year-to-year
comparisons.
TAXABLE-EQUIVALENT YIELD--The return an individual would have to realize on a
fully taxable investment in order to equal a specified tax-exempt yield; this
hypothetical yield varies according to an individual's income-tax bracket.
YIELD--The actual annualized income earned on an investment over a stated period
of time (assumed to be generated over a one-year period). An EFFECTIVE YIELD
assumes that the income earned is reinvested.
19
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES-REGISTERED TRADEMARK- SHARES-REGISTERED TRADEMARK-
<S> <C> <C>
- -------------------------------------------------------------------------------
Last seven days: 2.95% 3.16%
- -------------------------------------------------------------------------------
Last three months: 3.17% 3.38%
- -------------------------------------------------------------------------------
Last 12 months: 3.05% 3.26%
- -------------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- -----------------------------------------------------
0-15 days 76.1% 74.6%
- -----------------------------------------------------
16-30 days 0.0% 2.0%
- -----------------------------------------------------
31-60 days 4.7% 4.5%
- -----------------------------------------------------
61-90 days 5.9% 1.1%
- -----------------------------------------------------
91-120 days 4.7% 1.8%
- -----------------------------------------------------
More than 120 days 8.6% 16.0%
- -----------------------------------------------------
Weighted average 35 days 56 days
- -----------------------------------------------------
</TABLE>
(1)A portion of the Fund's expenses was reduced during the periods. Had these
expenses not been reduced, yields would have been lower.
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- -----------------------------------------------------
Last seven days: 2.77% 2.97%
- -----------------------------------------------------
Last three months: 3.01% 3.21%
- -----------------------------------------------------
Last 12 months: 2.87% 3.07%
- -----------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- -----------------------------------------------------
0-15 days 67.9% 66.2%
- -----------------------------------------------------
16-30 days 2.4% 5.5%
- -----------------------------------------------------
31-60 days 3.7% 12.7%
- -----------------------------------------------------
61-90 days 6.3% 3.3%
- -----------------------------------------------------
91-120 days 14.1% 3.8%
- -----------------------------------------------------
More than 120 days 5.6% 8.5%
- -----------------------------------------------------
Weighted average 37 days 44 days
- -----------------------------------------------------
</TABLE>
20
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB NEW YORK MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES-REGISTERED TRADEMARK- SHARES-REGISTERED TRADEMARK-
<S> <C> <C>
- -------------------------------------------------------------------------------
Last seven days: 2.86% 3.10%
- -------------------------------------------------------------------------------
Last three months: 3.07% 3.31%
- -------------------------------------------------------------------------------
Last 12 months: 2.93% 3.17%
- -------------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- ----------------------------------------------------------
0-15 days 72.4% 70.3%
- ----------------------------------------------------------
16-30 days 1.1% 1.2%
- ----------------------------------------------------------
31-60 days 3.6% 18.6%
- ----------------------------------------------------------
61-90 days 3.1% 2.8%
- ----------------------------------------------------------
91-120 days 6.5% 0.0%
- ----------------------------------------------------------
More than 120 days 13.3% 7.1%
- ----------------------------------------------------------
Weighted average 36 days 34 days
- ----------------------------------------------------------
</TABLE>
(1)A portion of the Fund's expenses was reduced during the periods. Had these
expenses not been reduced, yields would have been lower.
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- -----------------------------------------------------------
Last seven days: 2.89%
- -----------------------------------------------------------
Last three months: 3.00%
- -----------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- ----------------------------------------------------------
0-15 days 51.8% 65.1%
- ----------------------------------------------------------
16-30 days 4.5% 4.3%
- ----------------------------------------------------------
31-60 days 4.3% 7.0%
- ----------------------------------------------------------
61-90 days 9.9% 8.5%
- ----------------------------------------------------------
91-120 days 13.5% 3.3%
- ----------------------------------------------------------
More than 120 days 16.0% 11.8%
- ----------------------------------------------------------
Weighted average 49 days 41 days
- ----------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB PENNSYLVANIA
MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP SHARES-REGISTERED TRADEMARK-
<S> <C>
- -------------------------------------------------------------
Last seven days: 2.99%
- -------------------------------------------------------------
Last three months: 2.58%
- -------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- -----------------------------------------------------
0-15 days 70.4% 72.5%
- -----------------------------------------------------
16-30 days 29.0% 0.8%
- -----------------------------------------------------
31-60 days 0.0% 3.0%
- -----------------------------------------------------
61-90 days 4.7% 1.4%
- -----------------------------------------------------
91-120 days 1.8% 0.8%
- -----------------------------------------------------
More than 120 days 20.2% 21.5%
- -----------------------------------------------------
Weighted average 56 days 60 days
- -----------------------------------------------------
</TABLE>
(1)A portion of the Fund's expenses was reduced during the periods. Had these
expenses not been reduced, yields would have been lower.
SCHWAB FLORIDA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE SIX-MONTH PERIOD ENDED 6/30/98(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- -----------------------------------------
Last seven days: 3.02%
- -----------------------------------------
Last three months: 3.24%
- -----------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/98 6/30/98
<S> <C> <C>
- -----------------------------------------------------
0-15 days 88.8% 75.9%
- -----------------------------------------------------
16-30 days 0.6% 2.6%
- -----------------------------------------------------
31-60 days 0.0% 0.0%
- -----------------------------------------------------
61-90 days 0.7% 2.7%
- -----------------------------------------------------
91-120 days 0.0% 2.8%
- -----------------------------------------------------
More than 120 days 9.9% 16.0%
- -----------------------------------------------------
Weighted average 27 days 52 days
- -----------------------------------------------------
</TABLE>
22
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------- --------
VARIABLE RATE OBLIGATIONS -- 63.3% (a)
ALABAMA -- 1.0%
Alabama State IDA (Cash Value
Project) / (Regions Bank LOC)
3.50%, 07/07/98 $ 3,150 $ 3,150
Birmingham, Alabama GO Series
1992A / (Regions Bank LOC)
3.55%, 07/07/98 5,600 5,600
Birmingham, Alabama Unlimited GO
Refunding Bonds Series 1995 /
(First Alabama Bank LOC)
3.50%, 07/07/98 4,000 4,000
Citronelle, Alabama IDB Pollution
Control Revenue Refunding Bonds
(AKZO Chemicals, Inc. Project) /
(Wachovia Bank LOC)
3.55%, 07/07/98 1,100 1,100
Decatur, Alabama IDB Solid Waste
Disposal RB (Trico Steel Project)
Series 1997 / (Chase Manhattan
LOC)
3.65%, 07/07/98 5,700 5,700
Dothan, Alabama IDB RB (Baxley
Blowpipe Project) / (Regions Bank
LOC)
3.70%, 07/07/98 900 900
Mcintoch, Alabama IDB Solid Waste
Bonds (Ciba-Geigy Corp. Project) /
(Union Bank of Switzerland LOC)
3.60%, 07/07/98 24,500 24,500
Mobile County, Alabama IDB Pollution
Control Revenue Refunding Bonds
(Ultraform Co. Project)
Series 1995A / (Bayerische
Landesbank Girozentrale LOC)
3.63%, 07/07/98 7,480 7,480
Mobile County, Alabama IDB RB
(Ultraform Co. Project) Series B /
(Bayerische Landesbank Girozentrale
LOC)
3.63%, 07/07/98 1,000 1,000
Montgomery, Alabama Special Care
Facility Financing Authority RB
(Baptist Medical Center VHA) Series
1985C / (AMBAC Insurance & Mellon
Bank SBPA)
3.50%, 07/07/98 2,000 2,000
Par Value
------- --------
Scottsboro, Alabama GO Bonds /
(Regions Bank LOC)
3.55%, 07/07/98 $ 5,000 $ 5,000
Tuscaloosa, Alabama IDRB (Knight
Special Project) / (Regions Bank LOC)
3.70%, 07/07/98 1,200 1,200
--------
61,630
--------
ALASKA -- 0.4%
Alaska Industrial Development &
Export Authority (Revolving Fund)
Series 1996B / (Bank of America NT
& SA LOC)
3.45%, 07/07/98 17,600 17,600
Valdez, Alaska Marine Terminal
Revenue Refunding Bonds (Exxon
Pipeline Co. Project) Series 1993A /
(Exxon Corp. LOC)
3.70%, 07/01/98 800 800
Valdez, Alaska Marine Terminal
Revenue Refunding Bonds (Exxon
Pipeline Co. Project) Series 1993C /
(Exxon Corp. LOC)
3.70%, 07/01/98 6,600 6,600
--------
25,000
--------
ARIZONA -- 1.4%
Arizona Educational Loan Marketing
Corp. Education Loan RB Series A /
(MBIA Insurance & State Street Bank
& Trust LOC)
3.65%, 07/07/98 12,605 12,605
Arizona Health Facilities Authority
Hospital System RB (Northern
Arizona Health Care) Series 1996B /
(MBIA Insurance)
3.55%, 07/07/98 17,650 17,650
Arizona Health Facilities Authority
Revenue Adjustable Rate Notes
(Arizona Volunteer Hospital
Federation) Series 1985A /
(FGIC Insurance)
3.55%, 07/07/98 3,170 3,170
Arizona Health Facilities Authority
Revenue Adjustable Rate Notes
(Arizona Volunteer Hospital
Federation) Series 1985B /
(FGIC Insurance)
3.55%, 07/07/98 7,940 7,940
23
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Arizona Health Facilities RB (Samcor
Project) 1986 Loan Pool / (FGIC
Insurance & Chase Manhattan SPA)
3.55%, 07/07/98 $10,540 $ 10,540
Phoenix, Arizona Civic Improvement
Excise Tax RB (Airport
Improvements) / (Landesbank
Hessen-Thuringen Girozentrale LOC)
3.65%, 07/07/98 1,000 1,000
Phoenix, Arizona IDA M/F Housing RB
(Crossroads Apartments) Series 1984
(FNMA LOC)
3.65%, 07/07/98 6,000 6,000
Phoenix, Arizona IDA RB (Vaw
America Inc. Project) / (NationsBank
NA South LOC)
3.75%, 07/07/98 3,000 3,000
Pima County, Arizona IDA M/F
Housing RB (Housing Surgauro Crest
Apartments) Series 1995A /
(FNMA LOC)
3.65%, 07/07/98 6,000 6,000
Yavapai County, Arizona IDRB
(Yavapai Regional Medical Center) /
(Credit Local de France SBPA & FSA
Insurance)
3.55%, 07/07/98 12,600 12,600
Yuma, Arizona IDA M/F Housing RB
(El Encanto Apartments) Series A /
(Citibank LOC)
3.60%, 07/07/98 2,915 2,915
Yuma County, Arizona IDA RB
(Meadowcraft, Inc. Project)
Series 1997 / (NationsBank NA LOC)
3.75%, 07/02/98 1,000 1,000
--------
84,420
--------
ARKANSAS -- 0.3%
Independence County, Arkansas IDRB
(Ideal Baking Project) / (NationsBank
NA LOC)
3.75%, 07/07/98 7,000 7,000
Independance County, Arkansas IDRB
(Townsends of Arkansas, Inc.
Project) / (Rabobank Nederland
N.V. SPA)
3.65%, 07/07/98 9,000 9,000
Par Value
------- --------
Warren Park, Arizona Solid Waste
Disposal RB (Potlatch Corp. Project) /
(Credit Suisse LOC)
3.60%, 07/07/98 $ 1,000 $ 1,000
--------
17,000
--------
CALIFORNIA -- 0.5%
California Health Facilities Financing
Authority RB (Scripps Memorial
Hospital Project) Series 1985A /
(MBIA Insurance & Morgan
Guaranty Trust Co. SBPA)
3.20%, 07/07/98 700 700
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series 1987C1 /
(SLMA LOC)
3.65%, 07/07/98 13,900 13,900
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series 1987 E1 /
(SLMA LOC)
3.50%, 07/07/98 5,000 5,000
California Pollution Control Finance
Authority RB (Pacific Gas & Electric
Company) / (Bank of America LOC)
3.35%, 07/01/98 600 600
California Pollution Control Financing
Authority RB (Pacific Gas & Electric)
Series 1997C / (Kredietbank N.V.
LOC)
3.60%, 07/01/98 200 200
Chula Vista, California IDRB
(San Diego Gas & Electric Co.
Project) Series A
3.35%, 07/01/98 1,100 1,100
Irvine Ranch, California Improvement
Board RB (District Number
97-16) / (Societe Generale LOC)
3.30%, 07/01/98 200 200
Irvine Ranch, California Water District
COP (Capital Improvement Project) /
(Toronto Dominion LOC)
3.50%, 07/01/98 100 100
Irvine Ranch, California Water District
Consolidated Refunding Bonds Series
1993A / (Bank of America LOC)
3.25%, 07/01/98 40 40
24
<PAGE>
Par Value
------- --------
Kern County, California COP (Kern
Public Facilities Project) Series A /
(Union Bank of Switzerland LOC)
3.00%, 07/07/98 $ 5,200 $ 5,200
Orange County, California COP
(Florence Crittenton Project) /
(Union Bank of Switzerland LOC)
3.20%, 07/07/98 2,000 2,000
Orange County, California Sanitation
District COP (Sanitation Districts #1,
2, 3) / (AMBAC Insurance & Barclays
Bank, New York Liquidity)
3.00%, 07/07/98 2,400 2,400
--------
31,440
--------
COLORADO -- 4.2%
Adams County, Colorado Economic
Development Authority Tax
Increment RB (Westminster Plaza
Urban Renewal Project) / (Union
Bank of California LOC)
3.55%, 07/07/98 4,445 4,445
Adams County, Colorado IDRB (City View
Park Project) Series 1985 /
(Barclays Bank LOC)
3.60%, 07/07/98 5,700 5,700
Arapahoe County, Colorado Industrial
Development Revenue Refunding Bonds
(Denver Jet Center Project)
Series 1997 / (U.S. Bank NA LOC)
3.90%, 07/07/98 1,000 1,000
Central City, Colorado M/F Housing RB
(Gold Mountain Apartment Project) /
(PNC Bank NA LOC)
3.75%, 07/07/98 8,250 8,250
Colorado Health Facilities Authority RB
(National Benevolent Assoc.)
3.55%, 07/07/98 2,400 2,400
Colorado Health Facilities Authority RB
(North Colorado Medical Center
Project) / (MBIA Insurance /
Credit Suisse SPA)
3.40%, 07/07/98 3,400 3,400
Colorado Student Obligation Bond
Authority Student Loan RB (Colorado
University) Series 1993B / (SLMA LOC)
3.50%, 07/07/98 10,700 10,700
Par Value
------- --------
Colorado Student Obligation Bond
Authority Student Loan RB Series
1989A / (SLMA LOC)
3.50%, 07/07/98 $26,000 $ 26,000
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1997D / (SLMA LOC)
3.10%, 07/07/98 18,100 18,100
Denver, Colorado City & County
Airport System RB (Robinson Dairy
Project) / (Wells Fargo Bank LOC)
3.65%, 07/07/98 4,435 4,435
Denver, Colorado City & County Airport
System RB Series 1992D / (Morgan
Guaranty Trust Co.-New York LOC)
3.65%, 07/07/98 49,400 49,400
Denver, Colorado City & County Airport
System RB Series 1992E / (Morgan
Guaranty LOC)
3.65%, 07/07/98 16,100 16,100
Denver, Colorado City & County Airport
System RB Series 1992F / (Credit
Local de France LOC)
3.65%, 07/07/98 16,000 16,000
Denver, Colorado City & County Airport
System RB Series 1992G / (Credit
Local de France LOC)
3.65%, 07/07/98 20,000 20,000
Denver, Colorado City & County Airport
System RB Series 1997B / (Westdeutsche
Landesbank LOC)
3.50%, 07/07/98 6,700 6,700
Denver, Colorado City & County Airport
System RB Series 1997C / (Credit Local
de France LOC)
3.55%, 07/07/98 44,000 44,000
El Paso County, Colorado Adjustable
Rate RB (Colorado Springs World
Arena) / (Bank One LOC)
3.60%, 07/07/98 7,900 7,900
Smith Creek, Colorado Metropolitan
District RB Series 1997 /
(NationsBank of Texas NA LOC)
3.60%, 07/07/98 2,250 2,250
Wheatridge County, Colorado IDRB
(Leaf Inc. Project) / (Wachovia
Bank NA LOC)
3.65%, 07/07/98 4,000 4,000
--------
250,780
--------
25
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
CONNECTICUT -- 0.4%
Connecticut Development Authority
Pollution Control RB (Connecticut
Light & Power) Series 1985 / (AMBAC
Insurance & Societe Generale LOC)
3.45%, 07/07/98 $16,200 $ 16,200
Connecticut Development Authority
Pollution Control RB (Connecticut
Light & Power) Series 1993B /
(Union Bank of Switzerland LOC)
3.45%, 07/07/98 6,900 6,900
--------
23,100
--------
DELAWARE -- 0.0%
Sussex County, Delaware RB (Baywood
LLC Project) Series A / (Wilmington
Trust Co. LOC)
4.05%, 07/07/98 2,400 2,400
--------
DISTRICT OF COLUMBIA -- 0.7%
Metropolitan Washington District of
Columbia Airports Authority System
Revenue Refunding Bonds Series 1997C /
(Union Bank of Switzerland SBPA)
3.45%, 07/07/98 43,300 43,300
--------
FLORIDA -- 5.8%
Bradford County, Florida Health
Facilities Authority RB (Shands
Teaching Hospital Clinic Project)
Series 1996 / (MBIA Insurance &
Suntrust Bank Central Florida LOC)
3.50%, 07/07/98 6,500 6,500
Broward County, Florida HFA M/F Housing
RB (Harbour Town of Jacaranda Project)
Series 1995B / (Southtrust Bank NA LOC)
3.60%, 07/07/98 5,400 5,400
Broward County, Florida Port Facilities
Revenue Refunding Bonds (Sub Port
Everglades Project) / (AMBAC Insurance
& Bank of Nova Scotia LOC)
3.45%, 07/07/98 22,000 22,000
Citrus Park, Florida Community
Development District Capital
Improvement Bonds Series 1996 /
(Dresdner Bank AG LOC)
3.50%, 07/07/98 1,300 1,300
Par Value
------- --------
Collier County, Florida HFA M/F
Housing RB (River Beach Project)
Series 1985 / (Morgan Guaranty
Trust Co. - New York SBPA)
3.55%, 07/07/98 $ 4,000 $ 4,000
Dade County, Florida Aviation
Series 1984A / (Morgan Guaranty
Trust Co. - New York LOC)
3.50%, 07/07/98 1,100 1,100
Dade County, Florida IDA RB Series
1997 (Micheal-Ann Russell Jewish
Community Center Project) /
(Suntrust Bank LOC)
3.60%, 07/07/98 4,500 4,500
Duval County, Florida HFA M/F Housing
RB Lakes Mayport Apartment
Series 1985 / (Suntrust Banks Inc.
LOC)
3.60%, 07/07/98 1,800 1,800
Florida Capital Financing Authority
RB (Capital Project Loan Program
Project) Series 1997A
3.55%, 07/07/98 47,260 47,260
Florida Housing Facility Agency M/F
Housing RB (Cornerstone Imaging
Project) Series 1985B / (NationsBank
NA LOC)
3.35%, 07/07/98 13,400 13,400
Florida Municipal Power Agency Revenue
Refunding Bonds (Stanton II Project)
Series 1997 / (AMBAC Insurance &
First Union National Bank South LOC)
3.50%, 07/07/98 18,000 18,000
Florida State Capital Projects Finance
Authority (Florida Hospital
Association - Capital Projects Loan
Program) Series 1998A / (Credit
Suisse SBPA & FSA Insurance)
4.00%, 07/07/98 7,500 7,500
Gulf Breeze, Florida RB (Local
Government Loan Program) Series C /
(FGIC Insurance & Credit Local
de France)
3.55%, 07/07/98 265 265
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985B / (Credit
Local de France SBPA & FGIC Insurance)
3.55%, 07/07/98 15,360 15,360
26
<PAGE>
Par Value
------- --------
Highlands County, Florida Health
Facilities Authority RB (Adventist
Health Systems Project) Series
1996B / (Canadian Imperial Bank of
Commerce & MBIA Insurance)
3.55%, 07/07/98 $ 4,300 $ 4,300
Highlands County, Florida Health
Facilities Authority RB (Adventist
Health Systems Project) Series 1997A /
(Suntrust Bank Central Florida NA LOC)
3.55%, 07/07/98 13,650 13,650
Hillsborough County, Florida M/F
Housing RB (Brandon Crossing) /
(Amsouth Bank of Alabama LOC)
3.75%, 07/07/98 500 500
Indian Trace, Florida Community
Development District (Broward County
Florida Basin 1 Water) / (MBIA
Insurance & Swiss Bank SBPA)
3.40%, 07/07/98 1,950 1,950
Jacksonville, Florida RB (Capital
Project) / (Multiple Credit
Enhancements & AMBAC Insurance)
3.35%, 07/07/98 9,000 9,000
Lake Shore, Florida Hospital Authority
Health Facilities RB (Lakeshore
Hospital Project) Series 1991 /
(Kredietbank, N.V. LOC)
3.50%, 07/07/98 3,700 3,700
Marion County, Florida HFA M/F
Housing RB (Paddock Project)
Series 1985F / (Suntrust Bank Atlanta
LOC)
3.60%, 07/07/98 1,100 1,100
Miami-Dade County, Florida IDRB
(Airbus Service Co. Project) Series
1998A / (First Union National
Bank of North Carolina LOC)
3.65%, 07/07/98 300 300
Orange County, Florida Health Facilites
Authority RB (Mayflower Retirement
Community Project) / (Rabobank
Nederland N.V. LOC)
3.50%, 07/07/98 9,805 9,805
Orange County, Florida HFA M/F Housing
RB (Andover Place Apartments) /
(NationsBank NA LOC)
3.55%, 07/07/98 3,400 3,400
Par Value
------- --------
Orange County, Florida HFA M/F Housing
RB (Rio Vista Project) / (First Union
Bank of North Carolina
LOC)
3.60%, 07/07/98 $ 2,750 $ 2,750
Orlando Special Assessment RB, Republic
Drive Interchange / (Morgan
Guaranty LOC)
3.35%, 07/07/98 16,600 16,600
Palm Beach County, Florida Health
Facilities Authority Revenue Refunding
Bonds (Boca Raton Community Hospital
Project) / (First Union National
Bank LOC)
3.50%, 07/07/98 15,000 15,000
Palm Beach County, Florida Health
Facilities Authority Revenue
Refunding Bonds (Joseph L. Morse
Geriatric Center) / (Sun Bank LOC)
3.55%, 07/07/98 12,155 12,155
Pasco County, Florida COP /
(AMBAC Insurance & Landesbank SBPA)
3.55%, 07/07/98 55,370 55,370
Plant City, Florida Hospital RB
(Southern Florida Baptist Hospital
Project) / (Barnett Bank NA LOC)
3.60%, 07/07/98 8,600 8,600
Polk County, Florida IDA RB (Pavermodule
Inc. Project) / (Suntrust Bank South
Florida NA LOC)
3.70%, 07/07/98 1,510 1,510
SouthEast Volusia, Florida Hospital
District RB (Bert Fish Medical Center
Project) Series 1995 / (Southtrust
Bank NA LOC)
3.55%, 07/07/98 11,305 11,305
St. Petersburg, Florida Capital
Improvement RB (Airport & Golf
Course) Series B / (Suntrust Bank
Miami NA LOC)
3.60%, 07/07/98 2,000 2,000
Suwannee County, Florida Health
Facilities Authority RB (Shands
Teaching Hospital Clinic Project)
Series 1996 / (MBIA Insurance &
Suntrust Bank Central Florida LOC)
3.50%, 07/07/98 4,500 4,500
27
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Tallahassee-Leon County, Florida Civic
Center Authority Capital Improvement
RB Series A / (Suntrust Bank
Central Florida NA LOC)
3.60%, 07/07/98 $ 6,000 $ 6,000
Tampa, Florida Health Care Facilities
RB (Lifelink Foundation Inc.,
Project) / (Suntrust Bank Atlanta
LOC)
3.60%, 07/07/98 5,500 5,500
Tampa, Florida Occupational License
Tax RB Series 1996A / (FGIC Insurance)
3.50%, 07/07/98 10,600 10,600
--------
347,980
--------
GEORGIA -- 3.7%
Athens-Clarke Jackson Morgan Counties,
Georgia IDRB (Mayfield Dairy) /
(Wachovia Bank LOC)
3.65%, 07/07/98 6,850 6,850
Bartow County Georgia IDRB (Bartow
Paving Co. Project) / (Wachovia
Bank NA LOC)
3.65%, 07/07/98 3,000 3,000
Bartow County, Georgia IDRB (Matthew
Contracting Project) / (NationsBank
NA LOC)
3.70%, 07/07/98 5,600 5,600
Cherokee County, Georgia IDRB
(Universal Alloy) / (Wachovia Bank LOC)
3.65%, 07/07/98 5,500 5,500
Cobb County, Georgia HFA M/F Housing RB
(Walton Green Project) / (Wachovia Bank
NA LOC)
3.65%, 07/07/98 3,500 3,500
Cobb County, Georgia HFA M/F Housing
RB (Williamstown Apartment Project) /
(Wachovia Bank NA LOC)
3.65%, 07/07/98 2,000 2,000
Decatur, Georgia IDRB (Alabama Farmers
Corp.) / (NationsBank NA LOC)
3.75%, 07/07/98 2,900 2,900
Dekalb County, Georgia Development
Authority IDRB (Park North Business
Center Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 5,140 5,140
Par Value
------- --------
Dekalb County, Georgia Development
Authority IDRB (Siemens Energy, Inc.
Project) / (Siemens AG Guaranty LOC)
3.60%, 07/07/98 $ 3,750 $ 3,750
Dekalb County, Georgia Development
Authority IDRB (Truman Properties Ltd.
Liability Corp. Project) / (Wachovia
Bank LOC)
3.65%, 07/07/98 3,000 3,000
Dekalb County, Georgia Development
Authority RB (Arbor Montessori
School Project) / (Suntrust Bank
Atlanta LOC)
3.60%, 07/07/98 1,100 1,100
Dekalb County, Georgia HFA M/F Housing RB
(Wood Hills Apartment Project) /
(Bank of Montreal LOC)
3.60%, 07/07/98 5,250 5,250
Douglas County, Georgia Authority
Industrial Development Revenue
Refunding Bonds (Mima Inc. Project) /
(Wachovia Bank LOC)
3.65%, 07/07/98 4,300 4,300
Douglas County, Georgia IDA RB
(Blue Circle Project) / (Den Danske
Bank LOC)
3.70%, 07/07/98 3,800 3,800
Fayette County, Georgia IDRB
(Norman W. Paschell Co. Project) /
(Suntrust Bank Atlanta LOC)
3.65%, 07/07/98 1,200 1,200
Fulton County, Georgia Development
Authority RB (Atlanta International
School Project) / (Suntrust Bank
Atlanta LOC)
3.60%, 07/07/98 3,000 3,000
Fulton County, Georgia Development
Authority RB (Woodruff Arts Center
Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 10,000 10,000
Georgia Municipal Gas Authority RB
(Gas Portfolio II Project) Series B
3.40%, 07/07/98 2,000 2,000
Gwinnett County, Georgia HFA M/F
Housing RB / (Suntrust Bank Atlanta LOC)
3.60%, 07/07/98 5,000 5,000
28
<PAGE>
Par Value
------- --------
Hart County, Georgia Industrial Building
Authority RB (Dundee Mills Project) /
(Suntrust Bank Atlanta LOC)
3.70%, 07/07/98 $ 1,800 $ 1,800
Jefferson County, Georgia Development
Authority IDRB (Grove River Mills
Project) Series 1997 / (Wachovia
Bank LOC)
3.65%, 07/07/98 3,500 3,500
Lafayette, Georgia Development
Authority RB (Dixie Group Project) /
(Suntrust Bank Atlanta LOC)
3.70%, 07/07/98 2,000 2,000
Laurens County, Georgia Development
Authority Solid Waste Disposal RB
(Southeast Paper Manufacturing
Co. Project) / (Wachovia Bank LOC)
3.65%, 07/07/98 51,000 51,000
Richmond County, Georgia IDA RB
(BOK Group Project) / (Wachovia
Bank LOC)
3.55%, 07/07/98 5,000 5,000
Roswell, Georgia HFA M/F Housing RB
(Gables Realty Wood Crossing Project) /
(Wachovia Bank LOC)
3.55%, 07/07/98 11,650 11,650
Savannah, Georgia Economic Development
Authority RB (Georgia Kaolin Inc.) /
(NationsBank LOC)
3.70%, 07/07/98 11,000 11,000
Savannah, Georgia Economic Development
Authority RB (Home Depot Project)
Series 1995B / (Trust Co. Bank LOC)
3.65%, 07/07/98 5,000 5,000
Savannah, Georgia HFA M/F Housing RB
(Chatham Gardens Project) Series 1997 /
(Sun Trust Bank Atlanta LOC)
3.70%, 07/07/98 2,995 2,995
Smyrna, Georgia HFA M/F Housing RB
(Walton Park LP) / (Wachovia Bank LOC)
3.65%, 07/07/98 8,000 8,000
Smyrna, Georgia HFA M/F Housing RB
(Walton Park Phase 2 Project) /
(Wachovia Bank LOC)
3.65%, 07/07/98 13,500 13,500
Par Value
------- --------
Sugar Hill, Georgia HFA M/F Housing
RB (Level Creek Apartments Project) /
(Amsouth Bank of Alabama LOC)
3.75%, 07/07/98 $12,790 $ 12,790
Summerville, Georgia Development
Authority RB (Image Industry Project)
Series 1997 / (First Union National
Bank LOC)
3.70%, 07/07/98 9,000 9,000
Villa Rica, Georgia IDRB (Lowes Home
Centers, Inc. Project) / (Wachovia
Bank LOC)
3.55%, 07/07/98 500 500
Winder-Barrow, Georgia Industrial
Building Authority, Georgia IDRB
(The Concrete Co.)
3.80%, 07/07/98 4,800 4,800
Worth County, Georgia IDA Revenue
Refunding Bonds (Seabrook Project)
Series 1996B / (Sun Bank LOC)
3.70%, 07/07/98 1,400 1,400
--------
220,825
--------
HAWAII -- 0.5%
Hawaii Department of Budget & Finance
Special Purpose Mortgage RB (Adventist
Health System West) / (Union Bank
of California LOC)
3.50%, 07/07/98 7,600 7,600
Hawaii Student Loan RB (Secondary Market
Services Corp.) Series 1995-II /
(National Westminster Bank PLC LOC)
3.50%, 07/07/98 8,100 8,100
Honolulu, Hawaii City & County M/F
Housing RB (HaleKua Gardens Project)
Series A (Bank of Tokyo-Mitsubishi
Ltd. LOC)
4.20%, 07/07/98 4,984 4,984
Honolulu, Hawaii City & County M/F
Housing RB (Iolani Regents Project)
Series 1990A / (Bank of Hawaii LOC)
3.75%, 07/07/98 9,050 9,050
--------
29,734
--------
29
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
IDAHO -- 0.4%
Idaho HFA Housing RB (Assisted Living
Concepts Project) / (U.S. Bank NA LOC)
3.65%, 07/07/98 $ 1,875 $ 1,875
Idaho Student Loan RB Series A / (First
Security Bank of Utah NA LOC)
3.80%, 07/07/98 19,200 19,200
--------
21,075
--------
ILLINOIS -- 6.7%
Aurora, Kane, & Dupage Counties,
Illinois IDRB (North American Plastics
Corp. Project) / (First of
America Bank Illinois NA LOC)
3.70%, 07/07/98 5,400 5,400
Bartlett, Illinois M/F Housing RB
(Bartlett Square Apartments) Series
1995A / (LaSalle National Bank LOC)
3.60%, 07/07/98 2,100 2,100
Batavia, Illinois Development RB
(American Industrial Technologies) /
(Northern Trust LOC)
3.80%, 07/07/98 2,200 2,200
Carol Stream, Illinois M/F Housing
Revenue Refunding Bonds (St. Charles
Square Project) / (FNMA LOC)
3.65%, 07/07/98 4,415 4,415
Centralia, Illinois IDA RB (Consolidated
Foods Corp. Hollywood Brands, Inc.
Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 4,500 4,500
Chicago, Illinois IDRB (Morse Automotive)
Series 1995 / (American National Bank
& Trust Co. LOC)
3.75%, 07/07/98 2,600 2,600
Chicago, Illinois O'Hare International
Airport RB (ACES General Airport Second
Lien) Series B1 / (Bayerische Landesbank
Girozentrale LOC)
3.65%, 07/07/98 25,600 25,600
Chicago, Illinois O'Hare International
Airport RB (ACES General Airport
Second Lien) Series B2 / (Bayerische
Landesbank Girozentrale LOC)
3.65%, 07/07/98 9,400 9,400
Par Value
------- --------
Chicago, Illinois O'Hare International
Airport Special Facility RB / (Societe
Generale LOC)
3.65%, 07/07/98 $25,300 $ 25,300
East Dundee, Kane and Cook Counties,
Illinois IDRB (Otto Engine Project) /
(Lasalle National Bank LOC)
3.70%, 07/07/98 2,500 2,500
Elmhurst, Illinois IDRB (ELM Machining
Corp. Project) / (American National
Bank & Trust Co. LOC)
3.80%, 07/07/98 3,500 3,500
Hampshire, Illinois IDRB (Poli-Film
America Project) Series 1998A /
(Bank of America NT & SA LOC)
3.60%, 07/07/98 615 615
Illinois Development Authority IDRB
(Camcraft Inc. Project) / (American
National Bank & Trust Co. LOC)
3.75%, 07/07/98 2,600 2,600
Illinois Development Authority RB
(Cloverhill Pastry) / (American
National Bank & Trust Co. LOC)
3.75%, 07/07/98 5,970 5,970
Illinois Development Finance Authority
Hospital RB (Palos Community Hospital)
Series 1994-1 / (Credit Suisse SBPA)
3.50%, 07/07/98 33,700 33,700
Illinois Development Finance Authority
Hospital RB (Palos Community Hospital)
Series 1994-2 / (Credit Suisse SBPA)
3.50%, 07/07/98 13,900 13,900
Illinois Development Finance Authority
IDRB (Catholic Charities) / (Allied
Irish Bank PLC LOC)
3.55%, 07/07/98 2,655 2,655
Illinois Development Finance Authority
IDRB (Chicago Corrugated Box Company)
Series 6 / (American National Bank &
Trust Co. LOC)
3.80%, 07/07/98 1,150 1,150
Illinois Development Finance Authority
IDRB (Knead Dough Baking Co.) / (Bank
of America LOC)
3.55%, 07/07/98 7,295 7,295
30
<PAGE>
Par Value
------- --------
Illinois Development Finance Authority
IDRB (MCL Inc. Project) / (American
National Bank & Trust Co. LOC)
3.80%, 07/07/98 $ 2,050 $ 2,050
Illinois Development Finance Authority
IDRB (Molding Project) / (Northern
Trust LOC)
3.70%, 07/07/98 1,950 1,950
Illinois Development Finance Authority
IDRB (Perkin Paperboard Co. LP)
Series 1994 / (Northern Trust LOC)
3.70%, 07/07/98 5,500 5,500
Illinois Development Finance Authority
IDRB (Presbyterian Home Lake) Series
1996A / (LaSalle National Bank LOC)
3.55%, 07/07/98 48,400 48,400
Illinois Development Finance Authority
IDRB (Radiological Society Project)
Series 1997 / (American National Bank
& Trust Co. LOC)
3.60%, 07/07/98 4,900 4,900
Illinois Development Finance Authority
IDRB (River Graphics Corp. Project)
Series 1996 / (American National
Bank & Trust Co. LOC)
3.80%, 07/07/98 3,200 3,200
Illinois Development Finance Authority
IDRB (SMF Inc. Project) Series A /
(First of America LOC)
3.70%, 07/07/98 2,170 2,170
Illinois Development Finance Authority
RB (Catholic Charities Housing Project)
Series 1993A / (Allied Irish Banks
PLC LOC)
3.60%, 07/07/98 10,060 10,060
Illinois Development Finance Authority
RB (Chicago Academy of Science
Project) / (American National
Bank & Trust Co. LOC)
3.55%, 07/07/98 4,715 4,715
Illinois Development Finance Authority
RB (Korex Corp. Project) / (Lasalle
National Bank LOC)
3.70%, 07/07/98 4,000 4,000
Par Value
------- --------
Illinois Development Finance Authority
RB (Profile Plastics Project)
Series 1994 / (American National Bank
& Trust Co. LOC)
3.75%, 07/07/98 $ 2,665 $ 2,665
Illinois Development Finance Authority
RB (St. Ignatius College Prep
Project) / (Northern Trust LOC)
3.55%, 07/07/98 2,200 2,200
Illinois Development Finance Authority
RB (Variable Rest Haven Illiana
Christian) / (FHLB LOC)
4.05%, 07/07/98 10,030 10,030
Illinois Development Finance Authority
RB (Village Oak Park Residence) /
(First Star Bank NA LOC)
3.65%, 07/07/98 2,165 2,165
Illinois Development Finance Authority
Residential Rental RB (F.C. Harris
Pavillion Project) Series 1994 /
(FNMA Collateral Agreement)
3.50%, 07/07/98 27,510 27,510
Illinois Development Finance Authority
Residential Rental RB (River Oak
Project) / (Swiss Bank LOC)
3.65%, 07/07/98 22,000 22,000
Illinois Development Finance Authority
Revenue Refunding Bonds (Rich Products
Corp. Project) / (Suntrust Bank
Atlanta LOC)
3.70%, 07/07/98 1,525 1,525
Illinois Educational Facility Authority
RB (Chicago Historical Society) /
(Northern Trust LOC)
3.50%, 07/07/98 8,200 8,200
Illinois Educational Facility Authority
RB (Chicago Zoological Society
Brookfield Zoo) Series B / (Chemical
Bank LOC)
3.55%, 07/07/98 2,600 2,600
Illinois Health Facility Authority RB
(Bensenville Home Society Project)
Series 1989A / (American National
Bank & Trust Co. LOC)
3.50%, 07/07/98 2,350 2,350
31
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Illinois Health Facility Authority RB
(Ingalls Memorial Hospital) Series
1985C / (Lasalle National Bank LOC)
3.60%, 07/07/98 $ 1,100 $ 1,100
Illinois Health Facility Authority RB
(Washington & Jane Smith Home)
Series 1991 / (Comerica Bank LOC)
3.55%, 07/07/98 2,800 2,800
Illinois HFA M/F Housing RB (Camelot
Project) Series 1997 / (FNB of
Chicago SPA & MBIA Insurance)
3.65%, 07/07/98 14,170 14,170
Illinois Student Assistance Commission
Student Loan RB Series 1996A /
(Bank of America LOC)
3.65%, 07/07/98 8,400 8,400
Lombard, Illinois Industrial Development
Revenue Refunding Bonds/(B & H
Partnership Project) / (Comerica
Bank LOC)
3.85%, 07/07/98 1,850 1,850
McHenry County, Illinois IDA Revenue
Refunding Bonds (Dean Foods Co.
Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 2,675 2,675
New Lenox, Illinois IDRB (Panduit Corp.
Project) / (Commerzbank AG LOC)
3.60%, 07/07/98 4,400 4,400
Richton Park, Illinois IDRB (Avatar Corp.
Project) / (American National Bank &
Trust Co. LOC)
3.70%, 07/07/98 2,000 2,000
Rockford, Illinois IDRB (Industrial
Welding Supply, Inc. Project) /
(American National Bank & Trust
Co. LOC)
3.80%, 07/07/98 2,000 2,000
Rockford, Illinois IDRB (Ring Can Corp.
Project) / (Suntrust Bank Nashville
NA LOC)
3.75%, 07/07/98 2,000 2,000
Tinley Park, Illinois IDA RB (Beverly
Manufacturing Co. Project)
Series 1997A / (NationsBank NA
South LOC)
3.70%, 07/02/98 2,640 2,640
Par Value
------- --------
Tremont, Illinois IDRB (Hanna Steel
Project) / (NationsBank NA LOC)
4.00%, 07/07/98 $ 9,500 $ 9,500
Upper Illinois River Valley Development
Authority Bonds (Exolon Esk Co.
Project) Series A / (Chemical Bank LOC)
3.70%, 07/07/98 4,405 4,405
Wheeling, Illinois Manufacturing
Revenue Refunding Bonds (Woodland
Creek II Housing Project) Series
1990 / (FSA Insurance)
3.60%, 07/07/98 17,655 17,655
Woodstock, Illinois M/F Housing RB
(Prairie Trail) Series 1996A /
(LaSalle National Bank LOC)
3.70%, 07/07/98 3,425 3,425
Woodstock, Illinois M/F Housing RB
(Prairie View Ltd.) / (American
National Bank & Trust Co. LOC)
3.70%, 07/07/98 2,035 2,035
Yorkville, Illinois IDRB (F.E. Wheaton
& Co. Inc. Project) Series 1996 /
(American National Bank & Trust Co. LOC)
3.80%, 07/07/98 1,600 1,600
--------
406,245
--------
INDIANA -- 1.0%
Crawfordsville, Indiana IDRB (National
Service Industries, Inc. Project) /
(Wachovia Bank LOC)
3.55%, 07/07/98 4,000 4,000
Gary, Indiana Economic Development
Authority Revenue Refunding Bonds
(Miller Partners Home
Improvement Project) Series 1996A /
(Royal Bank of Scotland PLC LOC)
3.60%, 07/07/98 10,540 10,540
Gary, Indiana Economic Development
Authority Revenue Refunding Bonds
(Tinplate Partnership Project )
Series 1997A / (LaSalle National
Bank LOC)
3.65%, 07/07/98 3,500 3,500
Hammond, Indiana Economic Development
RB (Lear Seating Corp. Project)
Series 1994 / (Chemical Bank LOC)
4.05%, 07/07/98 9,200 9,200
32
<PAGE>
Par Value
------- --------
Indiana Secondary Market Educational
Loans Inc. Student Loan RB Series B /
(AMBAC Insurance & SLMA LOC)
3.50%, 07/07/98 $27,000 $ 27,000
Indianapolis, Indiana Economic
Development Authority RB (Herff-Jones,
Inc. Project) / (Wachovia Bank LOC)
3.70%, 07/07/98 4,100 4,100
St. Joseph College, Indiana Economic
Development RB Series 1997B / (FHLB LOC)
3.65%, 07/07/98 3,675 3,675
--------
62,015
--------
IOWA -- 0.5%
Iowa Student Loan Liquidity Corp. Student
Loan RB Series B / (AMBAC Insurance
& Norwest Bank NA LOC)
3.55%, 07/07/98 28,000 28,000
--------
KANSAS -- 0.2%
Kansas City, Kansas IDRB (Owen Industries,
Inc. Project) Series 1987 / (Mellon
Bank LOC)
3.75%, 07/07/98 600 600
Kansas State HFA M/F Housing RB (First
Kansas State Partnership) Series
1995A / (Boatmen's First National Bank
of Kansas City LOC)
3.90%, 07/07/98 2,000 2,000
Kansas State HFA M/F Housing RB (First
Kansas State Partnership) Series
1995C2 / (Boatmen's First National
Bank of Kansas City LOC)
3.90%, 07/07/98 650 650
Olathe, Kansas IDRB (Garmin
International Inc. Project) Series
1995 / (Boatmen's First National Bank
of Kansas City LOC)
3.90%, 07/07/98 1,700 1,700
Wichita, Kansas Airport Facilities
Revenue Refunding Bonds (Cessna Service
Center Project) / (Westdeutsche
Landesbank LOC)
3.80%, 07/07/98 4,985 4,985
Par Value
------- --------
Wichita, Kansas Airport Facilities
Revenue Refunding Bonds (Flightsafety
International, Inc.) / (Wachovia Bank LOC)
3.65%, 07/07/98 $ 3,000 $ 3,000
--------
12,935
--------
KENTUCKY -- 1.4%
Elizabethtown, Kentucky IDRB (Aztec
Project) / (Wachovia Bank NA LOC)
3.65%, 07/07/98 3,000 3,000
Henderson County, Kentucky Solid Waste
Disposal RB (Hudson Foods, Inc.
Project) / (Rabobank Nederland N.V. LOC)
3.60%, 07/07/98 10,300 10,300
Jefferson County, Kentucky Sports
Stadium Revenue Adjusting Bonds
(University of Louisville Athletic
Department) / (Bank One Kentucky NA LOC)
3.60%, 07/07/98 10,000 10,000
Kentucky Higher Education Student
Loan Corp. Insured Student Loan RB
Series 1991E / (AMBAC Insurance
& Credit Suisse LOC)
3.45%, 07/07/98 20,450 20,450
Kentucky Higher Education Student
Loan Corp. Insured Student Loan RB
Series 1996A / (MBIA Insurance
& Landesbank Hessen-Thuringen
Girozentrale SPA)
3.45%, 07/07/98 14,900 14,900
Lebanon, Kentucky IDRB (Wallace
Computer Services, Inc.) / (Wachovia
Bank LOC)
3.65%, 07/07/98 5,000 5,000
Murray, Kentucky IDA Revenue Refunding
Bonds (Dean Foods Co. Project) /
(Wachovia Bank LOC)
3.65%, 07/07/98 6,000 6,000
Owensboro, Kentucky Limited Obligation
RB (Dart Polymers, Inc. Project)
Series 1985A / (National Westminster
Bank PLC LOC)
4.00%, 07/07/98 1,900 1,900
Richmond, Kentucky IDRB (Mikron
Project) / (Bank of America LOC)
3.75%, 07/07/98 9,500 9,500
33
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Wilson County, Kentucky IDB RB (Perma
Pipe Project) / (Harris Trust &
Savings Bank LOC)
3.85%, 07/07/98 $ 3,150 $ 3,150
--------
84,200
--------
LOUISIANA -- 0.6%
Lafayette Parish, Louisiana IDRB (Westwood
Village Project) / (Texas Commerce
Bank NA LOC)
3.60%, 07/07/98 1,800 1,800
Louisiana Public Facilities Authority
Hospital RB (Willis-Knighton Medical
Center Project) Series 1993 /
(AMBAC Insurance & Credit Local de
France SPA)
3.50%, 07/07/98 12,370 12,370
Louisiana State Public Facilities
Authority Hospital RB (Willis-
Knighton Medical Center Project /
(AMBAC Insurance & Credit Local de
France SPA)
3.50%, 07/07/98 8,000 8,000
New Orleans, Louisiana Aviation Board
RB (Passenger Facility Charge
Projects) / (Banque Paribas & Canadian
Imperial Bank of Commerce LOC)
4.25%, 07/07/98 5,100 5,100
Parish of Desota, Louisiana Pollution
Control RB (Central Louisiana Electric
Company Project) / (West Deutsche
Landesbank LOC)
3.35%, 07/07/98 400 400
South Louisianna, Port Commission RB
(Holnam Project) / (ABN-Amro Bank
N.V. LOC)
3.65%, 07/07/98 7,500 7,500
--------
35,170
--------
MAINE -- 1.4%
Maine Education Loan Marketing Corp.
Student Loan RB Series 1997A1 /
(AMBAC Insurance)
3.55%, 07/07/98 37,500 37,500
Maine Education Loan Marketing Corp.
Student Loan RB Series 1997A2 /
(AMBAC Insurance)
3.55%, 07/01/98 15,500 15,500
Par Value
------- --------
Maine Regional Waste System Solid Waste
Recovery RB Series 1990K /
(Midland Bank LOC)
3.65%, 07/07/98 $17,550 $ 17,550
Maine Regional Waste System Solid Waste
Recovery RB Series 1993M / (Midland
Bank LOC)
3.65%, 07/07/98 4,075 4,075
Maine Regional Waste System Solid Waste
Recovery RB Series 1995O / (Midland
Bank LOC)
3.65%, 07/07/98 5,000 5,000
Maine State HFA M/F Housing RB (Park
Village Apartments Project) /
(General Electric Capital Corp. LOC)
3.55%, 07/07/98 6,000 6,000
--------
85,625
--------
MARYLAND -- 0.6%
Howard County, Maryland M/F Housing RB
(Avalon Meadows Project) / (FNMA LOC)
3.35%, 07/07/98 4,900 4,900
Maryland State Economic Development Corp.
IDRB (Dixon Valve Project) / (CoreStates
Bank NA LOC)
3.80%, 07/07/98 4,000 4,000
Maryland State Health & Higher Education
Facility Authority Pooled RB (Kennedy
Krieger Project) Series 1993D /
(First National Bank Maryland LOC)
3.65%, 07/07/98 2,000 2,000
Maryland State Health & Higher Education
Facility Authority Pooled RB (Pooled
Loan Program) Series 1985A /
(FNB Chicago LOC)
3.50%, 07/07/98 9,700 9,700
Montgomery County, Maryland Housing
Opportunity Commission RB (Draper
Lane Project) Series 1991I / (FGIC
Insurance & Barclays Bank PLC SPA)
3.65%, 07/07/98 16,600 16,600
--------
37,200
--------
34
<PAGE>
Par Value
------- --------
MASSACHUSETTS -- 0.0%
Massachusetts State Industrial Finance
Agency Resource Recovery Authority RB
(Ogden Haverhill Project) Series 1992A /
(Union Bank of Switzerland LOC)
3.40%, 07/07/98 $ 500 $ 500
--------
MICHIGAN -- 1.3%
Michigan Higher Education Student
Loan RB Series XII
3.55%, 07/07/98 5,000 5,000
Michigan State Hospital Finance Authority
RB (Martin Luther Memorial Home Inc.
Project) / (Bank One Indiana NA LOC)
4.05%, 07/07/98 8,520 8,520
Michigan State Strategic Fund Ltd.
Obligation RB (Autocam Corp. Project) /
(Comerica Bank LOC)
3.70%, 07/07/98 2,500 2,500
Michigan State Strategic Fund Ltd.
Obligation RB (Dean Foods Co. Project) /
(Wachovia Bank LOC)
3.65%, 07/07/98 3,500 3,500
Michigan State Strategic Fund Ltd.
Obligation RB (EPI Printers Inc.
Project) / (Comerica Bank LOC)
3.70%, 07/07/98 5,200 5,200
Michigan State Strategic Fund Ltd.
Obligation RB (John Widdicomb Co.
Project) / (Michigan National
Bank LOC)
3.70%, 07/07/98 2,735 2,735
Michigan State Strategic Fund Ltd.
Obligation RB (Manufacturer's Project)
Series 1991 / (Comerica Bank LOC)
3.70%, 07/07/98 1,885 1,885
Michigan State Strategic Fund Ltd.
Obligation RB Series 1998 / (Comerica
Bank LOC)
3.70%, 07/07/98 4,600 4,600
Michigan State Strategic Fund Ltd.
Obligation RB Series B / (Comerica
Bank LOC)
4.00%, 07/07/98 2,000 2,000
Par Value
------- --------
Wayne Charter County, Michigan Airport
RB (Detroit Metropolitan County Project)
Series 1996A / (Bayerische Landesbank
Girozentrale LOC)
3.60%, 07/07/98 $ 6,500 $ 6,500
Wayne Charter County, Michigan Airport
RB (Detroit Metropolitan County Project)
Series B / (Bayerische Landesbank
Girozentrale LOC)
3.50%, 07/07/98 31,810 31,810
--------
74,250
--------
MINNESOTA -- 0.5%
Bloomington, Minnesota Port Authority
Special Tax RB (Mall of America Project)
Series 1996B / (FSA Insurance & Credit
Local de France SBPA)
3.60%, 07/07/98 6,200 6,200
Bloomington, Minnesota Port Authority
Tax Increment Revenue Refunding Bonds
(Mall of America Project) Series 1995A /
(Credit Local de France SBPA &
FSA Insurance)
3.60%, 07/07/98 6,000 6,000
Hennepin County, Minnesota Unlimited
GO Series 1995C
3.55%, 07/07/98 2,400 2,400
Hennepin County, Minnesota Unlimited
GO Series 1996C
3.70%, 07/07/98 5,350 5,350
Minnesota Agriculture & Economic
Development RB (Evangelical Lutheran
Project) / (Rabobank Nederland N.V. LOC)
3.60%, 07/07/98 5,500 5,500
Minnesota State Higher Education
Facilities Authority RB (University
of St. Thomas Project) / (Allied Irish
Banks PLC LOC)
3.55%, 07/07/98 4,500 4,500
--------
29,950
--------
MISSISSIPPI -- 0.2%
Canton, Mississippi IDRB (McCarty Farms
Inc. Project) / (Suntrust Bank
Atlanta LOC)
3.70%, 07/07/98 2,000 2,000
35
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Jackson County, Mississippi Pollution
Control RB (Chevron Project)
3.75%, 07/01/98 $ 2,200 $ 2,200
Mississippi Business Financial Corp.
IDRB (Omega Motion Project) Series
1996 / (Wachovia Bank LOC)
3.65%, 07/07/98 6,800 6,800
--------
11,000
--------
MISSOURI -- 0.7%
Missouri Higher Education Loan Authority
Student Loan RB Series 1988A / (National
Westminster Bank PLC LOC)
3.50%, 07/07/98 19,900 19,900
Missouri State Development Finance
Board IDRB (H.R. Williams Mill Supply
Project) Series 1995 / (Union Bank of
Switzerland LOC)
3.65%, 07/07/98 3,100 3,100
Missouri State Development Finance
Board IDRB (Milbank Manufacturing Co.
Project) / (Boatmen's First
National Bank of Kansas City LOC)
3.90%, 07/07/98 3,000 3,000
St. Charles, Missouri IDA RB (Land
Development Co. Project) / (Commerce
Bank of St. Louis LOC)
3.90%, 07/07/98 3,550 3,550
St. Clair, Missouri IDA RB (Private
Dynaquip) / (NationsBank NA LOC)
3.60%, 07/02/98 2,300 2,300
St. Joseph, Missouri IDRB (Altec
Industries Inc. Project) / (Wachovia
Bank LOC)
3.65%, 07/07/98 4,000 4,000
St. Louis, Missouri IDA RB (Kessler
Container Project) / (NationsBank
NA LOC)
3.70%, 07/02/98 2,500 2,500
Washington, Missouri IDA RB (Pauwels
Transformer Project) / (Societe
Generale LOC)
3.90%, 07/07/98 3,700 3,700
--------
42,050
--------
Par Value
------- --------
MONTANA -- 0.0%
Montana State Health Facility Authority
RB (Health Care Pooled Loan Program
Project) Series 1985A / (FGIC Insurance
& Norwest Bank of Minnesota NA LOC)
3.50%, 07/07/98 $ 1,500 $ 1,500
--------
NEBRASKA -- 0.7%
Dodge County, Nebraska IDRB (Oilgear
Project) / (Marshall & Ilsley Bank LOC)
3.70%, 07/07/98 2,000 2,000
Nebraska Higher Education Loan Program
RB (Nebhelp Inc. Student Loan Project)
Series 1988C / (SLMA LOC)
3.65%, 07/01/98 31,150 31,150
Stanton County, Nebraska IDRB
(Nucor Corp. Project) Series 1996
3.65%, 07/07/98 10,500 10,500
--------
43,650
--------
NEVADA -- 0.1%
Clark County, Nevada Airport Improvement
RB (System Subordinate Lien) Series
1995A2 / (Union Bank of Switzerland
LOC)
3.65%, 07/07/98 1,330 1,330
Nevada Housing Division M/F Housing RB
Series 1989A / (FNMA LOC)
3.45%, 07/07/98 5,800 5,800
--------
7,130
--------
NEW HAMPSHIRE -- 0.1%
New Hampshire Health Facilities Authority
RB (VHA New England) / (AMBAC Insurance)
3.60%, 07/07/98 1,000 1,000
New Hampshire State HFA M/F Housing RB
(Fairways PJ-1) / (General Electric
Corp. LOC)
3.65%, 07/07/98 7,000 7,000
--------
8,000
--------
36
<PAGE>
Par Value
------- --------
NEW JERSEY -- 0.6%
Essex County Public Improvement Authority
RB (County Asset Sale Project) Series
1995 / (Morgan Guaranty Trust Co. -
New York LOC & AMBAC Insurance)
3.45%, 07/07/98 $ 5,550 $ 5,550
New Jersey Economic Development
Authority Natural Gas Facilities RB
(New Jersey Natural Gas Co.) / (AMBAC
Insurance & Bank of New York LOC)
3.50%, 07/07/98 1,400 1,400
New Jersey Economic Development Authority
Natural Gas Facilities RB (New Jersey
Natural Gas Co.) Series 1998B /
(Bank of New York LOC & AMBAC Insurance)
3.35%, 07/07/98 1,500 1,500
New Jersey Economic Development Authority
Natural Gas Facilities RB (New Jersey
Natural Gas Co.) Series 1998C / (Bank
of New York LOC & AMBAC Insurance)
3.35%, 07/07/98 1,000 1,000
New Jersey Economic Development Authority
Natural Gas Facilitites RB (Nui Corp.
Project) / (AMBAC Insurance & Bank of
New York LOC)
3.75%, 07/01/98 2,000 2,000
New Jersey Economic Development Authority
RB (Job Haines Home Project) /
(PNC Bank LOC)
3.10%, 07/07/98 1,300 1,300
New Jersey Economic Development Authority
RB (Public Service Electric & Gas
Company Project) Series 1995A (Swiss
Bank LOC)
3.15%, 07/07/98 4,100 4,100
New Jersey Economic Development Authority
RB (Toys R Us Inc. Project) Series
1984 / Chase Manhattan Bank LOC)
3.60%, 07/07/98 3,000 3,000
New Jersey Economic Development Authority
Thermal Energy Facilities RB (Thermal
Energy Ltd. Partnership I Project)
Series 1997 / (First National Bank of
Chicago LOC)
3.45%, 07/07/98 10,050 10,050
Par Value
------- --------
New Jersey Health Care Facility Financing
Authority Revenue Refunding Bonds
(Christian Health Project) Series
1998B / (Valley National Bank LOC)
3.25%, 07/07/98 $ 800 $ 800
New Jersey Sports & Exposition Authority
RB Series 1992C (Barclays Bank LOC)
3.15%, 07/07/98 3,400 3,400
New Jersey State Economic Development
Authority Revenue Refunding Bonds
(Stolthaven Project) Series
1998A / (Citibank LOC)
4.00%, 07/01/98 600 600
New Jersey State Turnpike Authority RB
Series 1991D / (Societe Generale LOC)
3.30%, 07/07/98 1,425 1,425
Union City, New Jersey Industrial
Pollution Control Financing Authority
RB (Exxon Project)
3.30%, 07/01/98 300 300
--------
36,425
--------
NEW MEXICO -- 1.5%
Albuquerque, New Mexico Airport RB
(Subordinated Lien) Series 1996A /
(Bayerische Landesbank Girozentrale LOC)
3.55%, 07/07/98 11,100 11,100
Albuquerque, New Mexico Gross Receipts
Tax GO Bonds / (Canadian Imperial
Bank of Commerce LOC)
3.55%, 07/07/98 3,000 3,000
Albuquerque, New Mexico (Karsten
Project A) / (Bank One Milwaukee LOC)
3.90%, 07/01/98 1,550 1,550
Albuquerque, New Mexico (Karsten
Project B) / (Bank One Milwaukee LOC)
3.90%, 07/01/98 780 780
Belen, New Mexico IDRB (Solo Cup, Inc.
Project) / (Wachovia Bank LOC)
3.65%, 07/07/98 3,250 3,250
37
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Farmington, New Mexico Pollution Control
Revenue Refunding Bonds (Arizona
Public Service Company) Series 1994A /
(Barclays Bank New York LOC)
3.80%, 07/01/98 $ 1,200 $ 1,200
New Mexico State Highway Commission
RB (Subordinate Lein) / (FSA Insurance)
3.55%, 07/07/98 65,750 65,750
Sandoval County, New Mexico M/F RB
(Arrowhead Ridge Apartments Project) /
(Union Bank of California LOC)
4.50%, 07/07/98 5,715 5,715
--------
92,345
--------
NEW YORK -- 2.1%
Albany-Dougherty County, New York Hospital
Authority RB (Phoebe Putney Memorial
Hospital Project) Series 1996 /
(AMBAC Insurance)
3.60%, 07/07/98 11,400 11,400
Babylon, New York IDA Resource Recovery
(Ogden Martin Project) Series 1998 /
(FSA Insurance)
3.25%, 07/07/98 1,400 1,400
New York City, New York GO Series 1993
Subseries A8 / (Morgan Guaranty Trust
Co. - New York LOC)
4.00%, 07/01/98 15 15
New York City, New York GO
Series B Subseries B-7
4.00%, 07/01/98 1,000 1,000
New York City, New York Health &
Hospitals Health System RB Series 1997A /
(Morgan Guaranty Trust Co. - New York LOC)
3.20%, 07/07/98 100 100
New York City, New York Housing Development
Corp. Mortgage RB (Parkgate Tower
Project) / (Citibank LOC)
3.20%, 07/07/98 9,470 9,470
New York City, New York IDA Special
Facility RB (Korean Airlines Co.
Project) Series 1997B / (Bankers
Trust LOC)
3.50%, 07/07/98 9,100 9,100
Par Value
------- --------
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997C / (Bankers Trust LOC)
3.60%, 07/07/98 $ 3,700 $ 3,700
New York City, New York M/F Rental
Housing RB (Tribeca Tower Project)
Series 1997A / (FNMA LOC)
3.25%, 07/07/98 22,100 22,100
New York City, New York Special Facility
RB (Korean Airlines Co. Project)
Series 1997A / (Bankers Trust LOC)
3.35%, 07/07/98 6,100 6,100
New York State Energy Research &
Development Authority Electric
Facilities Adjustable Rate RB (Long
Island Lighting Co. Project) Series
1994A / (Union Bank of Switzerland LOC)
3.55%, 07/07/98 4,000 4,000
New York State Energy Research &
Development Authority Pollution
Control Revenue Refunding Bonds (Orange
& Rockland Utilities, Inc. Project)
Series 1994A / (FGIC Insurance &
Societe Generale LOC)
3.25%, 07/07/98 900 900
New York State HFA (Mount Sinai School
Of Medicine) Series A / (Chase
Manhattan Bank LOC)
3.40%, 07/07/98 5,600 5,600
New York State HFA M/F RB (Tribeca
Park Housing Project) Series A /
(Bayerische Landesbank Girozentrale LOC)
3.30%, 07/07/98 16,700 16,700
New York State HFA RB (East 84th Street
Housing) Series 1995A / (Fleet Bank LOC)
3.30%, 07/07/98 1,100 1,100
New York State HFA RB (West 50th Street
Project) Series 1997A / (Fleet Bank LOC)
3.30%, 07/07/98 23,700 23,700
New York State Local Government
Assistance Corp. RB / (Toronto
Dominion LOC)
3.15%, 07/07/98 600 600
38
<PAGE>
Par Value
------- --------
New York State Local Government
Assistance Corp. RB / (Union Bank
of Switzerland LOC)
3.20%, 07/07/98 $ 4,795 $ 4,795
New York State Local Government
Assistance Corp. RB Series 1994B /
(Kredietbank LOC)
3.15%, 07/07/98 4,415 4,415
Triborough Bridge & Tunnel
Authority / (FGIC Insurance)
3.20%, 07/07/98 2,000 2,000
Yonkers, New York IDA Civic Facilities
RB (Consumers Union Facility Project) /
(AMBAC Insurance & Credit Local de
France SBPA)
3.45%, 07/07/98 500 500
--------
128,695
--------
NORTH CAROLINA -- 0.6%
Charlotte, North Carolina Airport
Revenue Refunding Bonds
Series 1993A / (Commerzbank SPA)
3.40%, 07/07/98 7,450 7,450
Forsyth County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Plymouth Printing
Project) / (CoreStates Bank NA LOC)
3.75%, 07/07/98 2,550 2,550
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Camco Manufacturing Project)
Series 1996 / (Wachovia Bank LOC)
3.60%, 07/07/98 2,400 2,400
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Culp Inc. Project) /
(Wachovia Bank LOC)
3.60%, 07/07/98 3,825 3,825
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Neal Manufacturing
Project) / (NationsBank NA LOC)
3.75%, 07/07/98 3,000 3,000
Par Value
------- --------
Johnston County, North Carolina Industrial
Facilities & Pollution Control
Financing Authority RB(Flanders Corp.
Project) / (Suntrust Bank Tampa Bay LOC)
3.70%, 07/07/98 $ 4,500 $ 4,500
North Carolina Educational Facilities
Finance Agency RB (High Point University
Project) / (Wachovia Bank LOC)
3.50%, 07/07/98 4,900 4,900
North Carolina Medical Care Commission
Hospital RB (Pooled Equipment Financing
Project) Series 1985 / (Kredietbank LOC)
3.25%, 07/07/98 4,250 4,250
Union County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Rock-Tenn Converting
County Project) Series 1997 / (Suntrust
Bank LOC)
3.70%, 07/07/98 1,750 1,750
--------
34,625
--------
NORTH DAKOTA -- 0.3%
Mercer County, North Dakota National Rural
Utility Pollution Control RB (Basin
Electric Power Cooperative Antelope
Project) Series 1984C / (N.R.U. - C.F.C.
Guaranty LOC)
3.65%, 07/07/98 7,800 7,800
Richland County, North Dakota IDRB
(Minn-Dak Farmers Co-Op) Series 1986B /
(Norwest Bank LOC)
3.90%, 07/07/98 1,000 1,000
Richland County, North Dakota Solid Waste
Disposal RB (Minn-Dak Farmers Co-Op)
Series 1996A / (Norwest Bank LOC)
3.90%, 07/07/98 11,000 11,000
--------
19,800
--------
39
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
OHIO -- 0.7%
Cleveland, Ohio Airport System RB
Series 1997D / (Toronto Dominion
Bank LOC)
3.60%, 07/07/98 $13,530 $ 13,530
Columbus, Ohio Electric System RB
Series 1984 / (Union Bank of
Switzerland LOC)
3.60%, 07/07/98 6,380 6,380
Ohio Air Quality Development Authority
RB (JMG Funding, LP) Series 1994A /
(Societe Generale LOC)
3.60%, 07/07/98 2,900 2,900
Ohio Air Quality Development Authority
RB (Ltd. Partnership Project)
Series 1994B / (Societe Generale LOC)
3.65%, 07/07/98 14,400 14,400
Ohio HFA M/F Housing RB (Kenwood
Congregate Retirement Community Project)
Series 1985 / (Morgan Guaranty Trust
Co.-New York LOC)
3.75%, 07/07/98 2,000 2,000
--------
39,210
--------
OKLAHOMA -- 0.9%
Creek County, Oklahoma Industrial Authority
Tax-Exempt IDRB (Henry Vogt Mach Project)
Series 1990 / (Wachovia Bank LOC)
3.70%, 07/07/98 2,000 2,000
Garfield County, Oklahoma IDRB (Bank of
Commerce Group Inc. Project) /
(Wachovia Bank LOC)
3.55%, 07/07/98 7,265 7,265
Muldrow, Oklahoma Public Works Authority
IDRB (Oklahoma Foods Project) /
(Rabobank Nederland N.V. LOC)
4.05%, 07/07/98 8,000 8,000
Oklahoma Development Finance Authority
RB (Shawnee Funding Ltd.) / (Bank of
Nova Scotia LOC)
3.70%, 07/07/98 4,000 4,000
Oklahoma State Student Loan Authority
RB Student Loan Series 1996A /
(SLMA LOC)
3.65%, 07/07/98 20,000 20,000
Par Value
------- --------
Oklahoma State Student Loan Authority RB
Student Loan Series A / (MBIA Insurance
& SLMA LOC)
3.65%, 07/07/98 $15,100 $ 15,100
Tulsa, Oklahoma IDA RB (Thomas & Betts
Project) Series 1991 / (Wachovia
Bank LOC)
3.65%, 07/07/98 700 700
--------
57,065
--------
OREGON -- 0.8%
Oregon State Economic Development Authority
RB (Pendleton Flour Mills Project)
Series 1982 / (Bank of America NT &
SA LOC)
3.75%, 07/07/98 7,500 7,500
Oregon State Economic Development
Commission Economic & IDRB / (Wachovia
Bank LOC)
3.55%, 07/07/98 4,100 4,100
Oregon State Health Housing Educational
& Cultural Facilities Authority RB
(Quatama Crossing Housing Project) /
(U.S. Bank NA LOC)
3.55%, 07/07/98 13,000 13,000
Port of Portland, Oregon IDRB (Schnitzer
Steel Project) / (Comerica Bank LOC)
3.20%, 07/07/98 5,000 5,000
Port of Portland, Oregon Special
Obligation RB (Portland Bulk Terminals
Limited Liability Corp. Project) /
(Canadian Imperial Bank of
Commerce LOC)
3.60%, 07/07/98 18,100 18,100
--------
47,700
--------
PENNSYLVANIA -- 4.8%
Allegheny County, Pennsylvania IDA
Economic Development RB (Saureisen
Project) / (Mellon Bank LOC)
3.80%, 07/07/98 485 485
Allegheny County, Pennsylvania IDA RB
(Longwood at Oakmont) / (Dresdner
Bank LOC)
4.00%, 07/01/98 425 425
40
<PAGE>
Par Value
------- --------
Bucks County, Pennsylvania IDA (Klearfold
Project) / (Mellon Bank LOC) 3.80%,
07/07/98 $ 2,250 $ 2,250
Bucks County, Pennsylvania IDA RB
(Schuman and Sons Project) / (CoreStates
Bank NA LOC)
3.65%, 07/07/98 3,405 3,405
Bucks County, Pennsylvania St. Mary
Hospital Authority RB (Catholic
Healthcare Project) Series 1997B
3.30%, 07/07/98 8,205 8,205
Cambria County, Pennsylvania IDA Resource
Recovery RB (Cambria Cogen Co. Project)
Series 1989V-2 / (ABN-Amro LOC)
3.65%, 07/07/98 3,400 3,400
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault
Project) / (CoreStates Bank NA LOC)
3.85%, 07/07/98 1,100 1,100
Dauphin County, Pennsylvania General
Authority RB (All Health Pooled
Financing Program) / (FSA Insurance
& Credit Suisse LOC)
3.60%, 07/07/98 9,270 9,270
Emmaus, Pennsylvania General Authority
RB Pooled Loan Series 1996 / (FSA
Insurance & Credit Suisse LOC)
3.55%, 07/07/98 8,550 8,550
Montgomery County, Pennsylvania IDA RB
(Seton Medical Co.) / (First Union
National Bank LOC)
3.30%, 07/07/98 3,100 3,100
Montgomery County, Pennsylvania
Redevelopment Authority M/F Housing
Revenue Refunding Bonds
(Glenmore Assoc. Project)
Series A / (FNMA LOC)
3.65%, 07/07/98 1,345 1,345
Northampton County, Pennsylvania IDA RB
(Binney & Smith) Series A / (First
National Bank of Chicago LOC)
3.80%, 07/07/98 670 670
Northampton County, Pennsylvania IDA RB
(Binney & Smith) Series B / (First
National Bank of Chicago LOC)
3.80%, 07/07/98 1,000 1,000
Par Value
------- --------
Pennsylvania Economic Development Finance
Authority Tax Exempt Facility RB
(National Gypsum Co. Shipping Port
Project) Series 1997A / (Nationsbank
LOC)
3.65%, 07/07/98 $ 8,400 $ 8,400
Pennsylvania Economic Development Finance
Authority Tax Exempt Facility RB
(National Gypsum Co.) Series 1997B /
(Nationsbank LOC)
3.65%, 07/07/98 16,715 16,715
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1986 / (Swiss Bank LOC)
3.55%, 07/07/98 19,975 19,975
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988A /
(SLMA LOC)
3.50%, 07/07/98 15,100 15,100
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B /
(SLMA LOC)
3.50%, 07/07/98 54,430 54,430
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988C /
(SLMA LOC)
3.50%, 07/07/98 40,215 40,215
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1994A /
(SLMA LOC)
3.50%, 07/07/98 21,000 21,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1995A /
(SLMA LOC)
3.50%, 07/07/98 2,000 2,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1997A /
(SLMA LOC)
3.70%, 07/07/98 37,625 37,625
Pennsylvania State Higher Education
Facilities RB (University of
Pennsylvania Health Services Project)
Series C / (Credit Suisse First
Boston LOC )
3.50%, 07/07/98 10,000 10,000
41
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Sayre, Pennsylvania Health Care
Facilities Authority RB (VHA Capital
Financing Project) Series 1985F
(AMBAC Insurance)
3.50%, 07/07/98 $ 4,100 $ 4,100
Washington County, Pennsylvania Authority
Lease Revenue Municipal Facilities
Series B1 / (CoreStates LOC)
3.75%, 07/07/98 6,700 6,700
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon Valley
Crethren) / (CoreStates Bank NA LOC)
3.70%, 07/07/98 745 745
York, Pennsylvania General Authority
Pooled Financing RB Series 1996 / (First
Union Bank of North Carolina LOC)
3.60%, 07/07/98 6,715 6,715
--------
286,925
--------
PUERTO RICO -- 0.0%
Puerto Rico Commonwealth Highway &
Transportation Authority Highway
Series 1998A / (AMBAC Insurance
& Bank of Nova Scotia SPA)
3.50%, 07/07/98 2,000 2,000
--------
RHODE ISLAND -- 0.5%
Rhode Island State Student Loan Authority
Higher Education Loan RB Series
1995-1 / (National Westminster Bank
PLC LOC)
3.55%, 07/07/98 12,300 12,300
Rhode Island State Student Loan
Authority Higher Education Loan RB
Series 1996-2 / (National Westminster
Bank PLC LOC)
3.55%, 07/07/98 5,000 5,000
Rhode Island State Student Loan Authority
Higher Education Loan RB Series 1996-3 /
(National Westminster Bank PLC LOC)
3.55%, 07/07/98 15,400 15,400
--------
32,700
--------
Par Value
------- --------
SOUTH CAROLINA -- 0.5%
Dorchester County, South Carolina
Pollution Control RB (BOC Group Inc.
Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 $ 2,000 $ 2,000
Greenville, South Carolina County & City
IDRB (Stevens Aviation Technologty
Services Project) / (First Union
National Bank LOC)
3.70%, 07/07/98 3,000 3,000
South Carolina Economic Development
Authority Hospital Facility RB (Sanders
Brothers Construction Project) /
(Wachovia Bank LOC)
3.65%, 07/07/98 2,800 2,800
South Carolina Economical Development
Authority RB (Advanced Automation
Project) Series 1998 / (Wachovia Bank
NA LOC)
3.65%, 07/07/98 4,000 4,000
South Carolina Jobs Economic Development
Authority IDRB (Electric City Printing
Project) / (Wachovia Bank LOC)
3.65%, 07/07/98 3,000 3,000
South Carolina Jobs Economic Development
Authority RB / (Bank of Tokyo-Mitsubishi
Ltd. LOC)
4.30%, 07/07/98 5,500 5,500
South Carolina Jobs Economic Development
Authority RB (Thomas & Betts Corp.
Project) / (Wachovia Bank LOC)
3.65%, 07/07/98 2,100 2,100
South Carolina State Port Authority RB
(Junior Lien) / (South Carolina National
Bank LOC)
3.75%, 07/07/98 3,300 3,300
Spartanburg County, South Carolina IDA RB
(Bemis, Inc.) / (Wachovia Bank LOC)
3.55%, 07/07/98 4,750 4,750
--------
30,450
--------
42
<PAGE>
Par Value
------- --------
SOUTH DAKOTA -- 0.3%
South Dakota State Health & Educational
Facilities Authority RB (Mckenna
Hospital) Series 1994 / (MBIA Insurance
& Banque Paribas SBPA)
3.60%, 07/07/98 $15,930 $ 15,930
--------
TENNESSEE -- 1.8%
Chattanooga, Tennessee Health Education &
Housing Facility Board RB (Baylor
School Project) / (Suntrust Bank
Nashville LOC)
3.60%, 07/07/98 2,195 2,195
Chattanooga, Tennesse IDB RB (National
Print Group Inc. Project) / (Suntrust
Bank Nashville NA LOC)
3.65%, 07/07/98 2,500 2,500
Franklin County, Tennessee IDB RB
(Hi-Tech Project) Series 1997 /
(Regions Bank LOC)
3.65%, 07/07/98 7,000 7,000
Jackson County, Tennessee IDB Solid
Waste Facilities RB (Ameristeel Corp.) /
(NationsBank NA LOC)
3.70%, 07/07/98 5,000 5,000
Knox County, Tennesse Health Education
& Housing Facilities RB (Web School of
Knoxville Project) Series 1997 /
(Trust Co. Bank of Atlanta LOC)
3.60%, 07/07/98 5,000 5,000
Metropolitan Nashville & Davidson County,
Tennessee Health & Education Facility
Board RB Series A / (FGIC Insurance &
Barclays Bank PLC LOC)
3.50%, 07/07/98 1,200 1,200
Metropolitan Nashville & Davidson County,
Tennessee IDRB (Bind Technologies Inc.) /
(NationsBank of Tennessee NA LOC)
3.75%, 07/07/98 3,750 3,750
Metropolitan Nashville & Davidson County,
Tennessee M/F Housing IDRB (Arbor Crest)
Series 1985B / (Wachovia Bank LOC)
3.55%, 07/07/98 4,000 4,000
Par Value
------- --------
Metropolitan Nashville & Davidson County,
Tennessee M/F Housing IDRB (Arbor Knoll)
Series 1985A / (Wachovia Bank LOC)
3.55%, 07/07/98 $ 1,000 $ 1,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995C1 /
(AMBAC Insurance & Kredietbank,
N.V. SPA)
3.55%, 07/07/98 5,750 5,750
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995C2 / (AMBAC
Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 4,180 4,180
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995C3 /
(AMBAC Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 10,000 10,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995E3 / (AMBAC
Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 3,000 3,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996A / (AMBAC
Insurance & Kredietbank N.V. SPA)
3.55%, 07/07/98 7,000 7,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series
1996D1 / (AMBAC Insurance & Kredietbank
N.V. SPA)
3.55%, 07/07/98 3,215 3,215
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996E1 / (AMBAC
Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 6,505 6,505
43
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996E4 /
(AMBAC Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 $ 3,000 $ 3,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996F1 /
(AMBAC Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 9,000 9,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996F2 /
(AMBAC Insurance & Kredietbank, N.V. SPA)
3.55%, 07/07/98 9,000 9,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996G /
(AMBAC Insurance & Kredietbank N.V. SPA)
3.55%, 07/07/98 6,775 6,775
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series II-C /
(AMBAC Insurance & Kredietbank N.V. SPA)
3.55%, 07/07/98 1,065 1,065
Volunteer State Student Loan Funding Bonds
Series 1987 / (Hong Kong & Shang Hai
Bank LOC & Marine Midland LOC)
3.95%, 07/07/98 10,600 10,600
--------
110,735
--------
TEXAS -- 6.3%
Amarillo, Texas Health Facilities Corp.
Hospital RB (High Plains Baptist Hospital)
Series 1985 / (Banque Paribas LOC)
3.75%, 07/07/98 3,100 3,100
Amarillo, Texas Health Facilities Corp.
Revenue Refunding Bonds / (Rabobank
Nederland N.V. LOC)
3.60%, 07/07/98 3,155 3,155
Par Value
------- --------
Bexar County, Texas Health Facilities
Development Corp. RB (Chandler Memorial
Home Project) Series 1995 / (Bank One LOC)
3.60%, 07/07/98 $ 4,990 $ 4,990
Brazos River, Texas Higher Education
Authority RB Series 1993B1 / (SLMA LOC)
3.50%, 07/07/98 32,800 32,800
Brownsville County, Texas Industrial
Development Corp. Revenue Refunding Bonds
(Rich Seapak Corp. Project) / (Suntrust
Bank Atlanta LOC)
3.70%, 07/07/98 1,250 1,250
Capital Health Facilities Development Corp.
RB (Island On Lake Travis Ltd. Project) /
(Credit Suisse First Boston LOC)
3.55%, 07/07/98 8,500 8,500
Central Waco, Texas Development Corp. IDRB
(H.E. Butt Grocery) / (Texas Commerce
Bank, N.A. LOC)
3.55%, 07/07/98 3,050 3,050
Collin County, Texas HFA M/F Housing RB
(Huntington Apartments Project) /
(Fleet Bank, N.A. LOC)
3.73%, 07/07/98 6,150 6,150
Euless, Texas IDA RB (Ferguson Enterprises,
Inc. Project) / (Wachovia Bank LOC)
3.55%, 07/07/98 4,850 4,850
Grand Prairie, Texas IDA IDRB (NTA Leasing
Co. Project) Series 1994 /
(Texas Commerce Bank, N.A. LOC)
3.70%, 07/07/98 2,040 2,040
Hays, Texas Memorial Health Facilities
Development Corp. Hospital RB (AHS Sunbelt
Central Texas Medical Center Project)
Series 1990A / (Swiss Bank LOC)
3.65%, 07/07/98 8,500 8,500
Hays, Texas Memorial Health Facilities
Development Corp. Hospital RB (AHS
Sunbelt Central Texas Medical Center
Project) Series 1990B / (Swiss Bank LOC)
3.65%, 07/07/98 15,300 15,300
44
<PAGE>
Par Value
------- --------
Lavaca-Navidad River Authority, Texas
Water Supply System Contract RB (Formosa
Plastics Corp. Project) /
(Canadian Imperial Bank of Commerce LOC)
3.70%, 07/07/98 $13,600 $ 13,600
North Texas Higher Education Authority
Income Tax Student Loan Revenue Refunding
Bonds (Texas Student Loan Project) /
(Credit Communal de Belgique LOC)
3.45%, 07/07/98 12,300 12,300
North Texas Higher Education Authority
Income Tax Student Loan Revenue Refunding
Bonds Series 1987A / (Credit Communal de
Belgique LOC)
3.50%, 07/07/98 87,750 87,750
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds Series 1996B /
(AMBAC Insurance & SLMA SBPA)
3.50%, 07/07/98 4,000 4,000
North Texas Higher Education Authority
Income Tax Student Loan Revenue Refunding
Bonds Series 1996D / (AMBAC Insurance
& SLMA SBPA)
3.50%, 07/07/98 4,000 4,000
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1991A /
(SLMA LOC)
3.50%, 07/07/98 11,500 11,500
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1992A1 /
(SLMA LOC)
3.50%, 07/07/98 2,400 2,400
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1993A /
(SLMA LOC)
3.50%, 07/07/98 13,300 13,300
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1995A /
(SLMA LOC)
3.50%, 07/07/98 18,300 18,300
Par Value
------- --------
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1997X /
(SLMA LOC)
3.50%, 07/07/98 $14,000 $ 14,000
Robertson County, Texas Industrial
Development Corp. IDRB (Sanderson Farms
Project) Series 1995 /
(Harris Trust & Savings Bank LOC)
3.80%, 07/07/98 4,300 4,300
Silsbee, Texas Health Facilities
Development RB (Silsbee Doctor's
Hospital) / (Citibank LOC)
3.55%, 07/07/98 6,000 6,000
South Texas Higher Education Authority
Student Loan RB / (MBIA Insurance)
3.55%, 07/07/98 65,300 65,300
South Texas Higher Education Authority
Student Loan RB Series 1997Z / (MBIA
Insurance & SLMA SBPA LOC)
3.55%, 07/07/98 7,000 7,000
Tarrant County, Texas IDRB (Mortex Products
Inc. Project) / (Comerica Bank LOC)
3.80%, 07/07/98 4,000 4,000
Texas Health Facilities Development Corp.
ACES RB (North Texas Pooled Health)
Series 1985B / (Banque Paribas LOC)
3.85%, 07/07/98 18,200 18,200
Trinity River Authority, Texas Pollution
Control RB (Lafarge Corp. Project) /
(Banque Nationale de Paris LOC)
3.75%, 07/07/98 3,100 3,100
--------
382,735
--------
UTAH -- 0.9%
Salt Lake City, Utah Airport RB Series
1996A / (Union Bank of Switzerland LOC)
3.55%, 07/07/98 2,000 2,000
Utah State Board of Regents Student Loan
RB Series 1995L / (AMBAC Insurance &
Barclays Bank PLC LOC)
3.50%, 07/07/98 7,975 7,975
45
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Utah State Board of Regents Student Loan
RB Series 1996Q / (AMBAC Insurance &
Barclays Bank PLC LOC)
3.50%, 07/07/98 $ 8,000 $ 8,000
Utah State Board of Regents Student Loan
RB Series 1997R / (AMBAC Insurance &
Barclays Bank PLC LOC)
3.50%, 07/07/98 34,255 34,255
--------
52,230
--------
VERMONT -- 0.1%
Vermont Education & Health Buildings
Financing Agency (VHA New England)
Series 1985G / (AMBAC
Insurance & FNB Chicago SBPA)
3.60%, 07/07/98 4,240 4,240
--------
VIRGINIA -- 0.2%
Chesterfield County, Virginia IDA IDRB
(Erni Components Inc. Project) /
(First Union National Bank LOC)
3.70%, 07/07/98 3,000 3,000
King George County, Virgina IDA Solid Waste
Disposal Facility (Garnet of Virginia
Project) Series 1996 (Morgan Guaranty
Trust Co.-New York LOC)
3.55%, 07/07/98 3,700 3,700
Lynchburg, Virginia IDA Hospital Facility
RB (First Mortgage VHA Mid-Atlantic
States, Inc.) Series 1985A / (AMBAC
Insurance & Mellon Bank SBPA)
3.60%, 07/07/98 500 500
Lynchburg, Virgina IDA Hospital Facilities
RB (First Mortgage VHA Mid-Atlantic
States, Inc.) Series 1985B /
(AMBAC Insurance)
3.60%, 07/07/98 400 400
Lynchburg, Virgina IDA Hospital Facilities
RB (First Mortgage VHA Mid-Atlantic
States, Inc.) Series 1985C /
(AMBAC Insurance)
3.60%, 07/07/98 600 600
Staunton, Virginia IDA RB (Diebold Inc.-
Staunton Project) Series 1997
3.60%, 07/07/98 2,500 2,500
--------
10,700
--------
Par Value
------- --------
WASHINGTON -- 3.9%
Algona, Washington Economic Development
Corp. IDRB (Aitchison Family Partnership
Project) / (Wells Fargo Bank LOC)
3.65%, 07/07/98 $ 2,650 $ 2,650
Everett, Washington IDA RB Series 1996
(Partners Trust/Synsor Project) /
(Bank of America LOC)
3.75%, 07/07/98 5,000 5,000
King County, Washington Economic
Enterprise Corp. RB (Pacific System
Project) / (Bank of America NT &
SA LOC)
3.65%, 07/07/98 5,000 5,000
King County, Washington Economic
Enterprise Corp. RB (Sunrise Project)
Series 1997 / (Bank of America NT &
SA LOC)
3.75%, 07/07/98 4,100 4,100
King County, Washington HFA M/F Housing RB
(Auburn County Apartments) /
(U.S. Bank N.A. LOC)
3.80%, 07/01/98 9,150 9,150
Pierce County, Washington Economic
Development Corp. RB (Flex-A-Lite
Consolidated Project) / (Bank
of America LOC)
3.75%, 07/07/98 3,000 3,000
Pierce County, Washington Economic
Development Corp. RB (K & M
Holdings II Project) Series 1997 /
(Wells Fargo Bank LOC)
4.00%, 07/07/98 1,820 1,820
Pierce County, Washington Economic
Development Corp. RB (McFarland
Cascade Project) / (U.S. Bank of
Washington LOC)
3.75%, 07/07/98 2,000 2,000
Port Moses Lake, Washington Public Corp.
RB (Moses Lake Industrial Project)
Series 1995 / (Bank of America LOC)
3.75%, 07/07/98 3,000 3,000
Port Moses Lake, Washington Public Corp. RB
(National Frozen Foods Corporation) /
(Bank of America NT & SA LOC)
3.65%, 07/07/98 7,500 7,500
46
<PAGE>
Par Value
------- --------
Port of Seattle, Washington Subordinate
Lien RB Series 1997 / (Canadian Imperial
Bank of Commerce LOC)
3.65%, 07/07/98 $81,530 $ 81,530
Seattle, Washington HDA RB (Capitol Hill
Housing Improvement & HRG Project) /
(Bank of America NT & SA LOC)
3.75%, 07/07/98 6,420 6,420
Seattle, Washington HDA RB (Casa Pacifica
Apartments Project) Series 1997 /
(Bank of America NT & SA LOC)
3.75%, 07/07/98 3,350 3,350
Seattle, Washington HDA RB (Holly Park
Project) / (Bank of America NT & SA LOC)
3.75%, 07/07/98 7,000 7,000
Spokane County, Washington Industrial
Development Corp. (Metal Sales
Manufacturing Corp. Project) /
(Star Bank LOC)
3.70%, 07/07/98 2,835 2,835
Tacoma, Washington HDA (Keybank Location) /
(Key Bank NA LOC)
3.75%, 07/07/98 3,400 3,400
Washington Health Care Facilities Authority
RB (Yakima Valley Farm Workers Clinic)
Series 1997 / (Bank of America NT &
SA LOC)
3.75%, 07/07/98 3,800 3,800
Washington State Economic Development
Finance Authority IDRB (Tonkin Building)
Series 1997A / (U.S. Bank of Washington
LOC)
3.75%, 07/07/98 1,000 1,000
Washington State Economic Development
Finance Authority RB (Hamilton Materials
Project) / (Bank of America NT & SA LOC)
3.75%, 07/07/98 5,000 5,000
Washington State Economic Development
Finance Authority RB (Hunter Douglas
Project) Series 1997A /
(ABN-Amro Bank N.V. LOC)
3.70%, 07/07/98 3,500 3,500
Par Value
------- --------
Washington State Health Care Facilities
Authority Revenue Refunding Bonds
(Sisters of St. Joseph of Peace)
Series 1993 / (MBIA Insurance & U.S.
Bank of Washington SBPA)
3.55%, 07/07/98 $13,200 $ 13,200
Washington State HFA M/F Housing Mortgage
RB (Canyon Lake II) Series 1993A /
(U.S. Bank of Washington LOC)
3.75%, 07/07/98 4,565 4,565
Washington State HFA M/F Housing Mortgage
RB (Lake Washington Apartments Project)
Series 1996 / (Bank of America LOC)
3.75%, 07/07/98 8,750 8,750
Washington State HFA M/F Housing Mortgage
RB (Meridian Court Apartments)
Series 1996 / (Bank of America LOC)
3.75%, 07/07/98 7,000 7,000
Washington State HFA M/F Housing Mortgage
RB (Merrill Gardens Project)
Series 1997A / (U.S. Bank of
Washington LOC)
3.75%, 07/07/98 2,600 2,600
Washington State HFA M/F Housing Mortgage
RB (Rosecreek Apartments Project) /
(U.S. Bank NA LOC)
3.75%, 07/07/98 3,570 3,570
Washington State Public Power Supply
System Nuclear Project #2 Electric RB /
(Credit Suisse First Boston & MBIA
Insurance )
3.50%, 07/07/98 13,735 13,735
Yakama Indian Nation, Washington
Confederated Tribes & Bands Demand
Obligation (Yakama Forests
Products Project) / (Bank of America
NT & SA LOC)
3.75%, 07/07/98 9,300 9,300
Yakima County, Washington Public Corp.
RB (Hi-Country Foods Project) /
(Bank of America LOC)
3.75%, 07/07/98 6,700 6,700
47
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Yakima County, Washington Public Corp. RB
(Michaelson Packaging Project) /
(Bank of America NT & SA LOC)
3.75%, 07/07/98 $ 4,200 $ 4,200
Yakima County, Washington Public Corp.
RB (Printing Press Project) /
(Bank of America LOC)
3.75%, 07/07/98 2,700 2,700
--------
237,375
--------
WEST VIRGINIA -- 0.3%
Marion County, West Virginia Solid Waste
Disposal Facilities RB (Grant Town
Project) Series B / (National
Westminster Bank PLC LOC)
3.50%, 07/07/98 11,000 11,000
Marion County, West Virginia Solid Waste
Disposal Facilities RB (Grant Town
Project) Series D / (National Westminster
Bank PLC LOC)
3.50%, 07/07/98 4,300 4,300
West Virginia State Hospital Finance
Authority RB (St. Joseph's Hospital
Project) Series 1987 / (Bank of West
Virginia LOC)
3.60%, 07/07/98 2,000 2,000
--------
17,300
--------
WISCONSIN -- 0.9%
Carlton, Wisconsin Pollution Control RB
(Power & Light Co.)
3.65%, 07/07/98 5,800 5,800
Chilton, Wisconsin IDRB (Kaytee Products,
Inc. Project) Series 1995 / (Bank One
Milwaukee LOC)
3.70%, 07/07/98 1,485 1,485
Colburn, Wisconsin IDRB (Heartland Farms
Project) Series 1994 / (Marshall &
Ilsley Bank LOC)
3.70%, 07/07/98 6,900 6,900
Fairwater, Wisconsin IDRB (Dean Foods Co.
Project) Series 1990 / (Wachovia Bank LOC)
3.55%, 07/07/98 1,450 1,450
Grafton, Wisconsin IDRB (Milwaukee Sign
Co. Project) / (Marshall & Ilsley Bank
LOC)
3.70%, 07/07/98 1,975 1,975
Par Value
------- --------
Kenosha, Wisconsin IDRB (Asyst Tech. Ltd.
Liability Corp. Project) / (LaSalle
National Bank LOC)
3.70%, 07/07/98 $ 5,000 $ 5,000
Lac Du Flambeau, Band of Lake Superior,
Wisconsin Chippewa Indians Special
Obligation Bonds (Simpson
Electric Co. Project) Series 1985 /
(Barclays Bank PLC)
3.50%, 07/07/98 4,400 4,400
Milwaukee, Wisconsin Redevelopment
Authority IDRB (Field Container Corp.
LP) Series 1994 / (Northern Trust LOC)
3.70%, 07/07/98 5,000 5,000
Prentice, Wisconsin Industrial Development
Revenue Refunding Bonds (Blount, Inc.)
Series 1992 / (Morgan Guaranty Trust Co.
New York LOC)
3.68%, 07/07/98 1,688 1,688
Rhinelander, Wisconsin IDRB (Lake Shore Inc.
Project) / (Australia & New Zealand Bank
Group LOC)
3.75%, 07/07/98 2,290 2,290
Wisconsin Housing & Economic Development
Authority RB (Ultratec Inc. Project)
Series 7 / (Marshall & Ilsley Bank LOC)
3.70%, 07/02/98 3,520 3,520
Wisconsin State Health & Education
Facilities Authority RB (Sinai Samaritan)
Series 1994A / (Marshall & Ilsley Bank
LOC)
3.60%, 07/07/98 12,950 12,950
----------
52,458
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $3,819,747) 3,819,747
----------
TAX-EXEMPT COMMERCIAL PAPER -- 10.3% (b)
ARIZONA -- 1.1%
Maricopa County, Arizona Pollution Control
Authority Revenue Refunding Bonds TECP
(Southern California Palo Alto Verde
Project) Series 1985G
3.40%, 07/07/98 7,250 7,250
3.60%, 07/08/98 4,000 4,000
3.70%, 07/13/98 33,150 33,150
48
<PAGE>
Par Value
------- --------
Maricopa County, Arizona Pollution Control
Revenue Refunding Bonds TECP (Southern
California Edison Palo Alto Verde
Project) Series D
3.65%, 08/11/98 $ 7,550 $ 7,550
Maricopa County, Arizona Pollution Control
Revenue Refunding Bonds TECP (Southern
California Edison Palo Alto Verde
Project) Series E
3.65%, 08/11/98 12,030 12,030
--------
63,980
--------
FLORIDA -- 0.6%
Florida Local Government Finance
Commission Pooled TECP Series A /
(First Union National Bank LOC)
3.60%, 07/09/98 5,292 5,292
Orange County, Florida HFA Pooled
Hospital Loan TECP / (MBIA Insurance &
Suntrust Bank SBPA) Put Bond
3.60%, 07/13/98 6,800 6,800
Pinellas County, Florida Educational
Facilities / (MBIA Insurance &
Credit Suisse SBPA)
3.60%, 07/13/98 12,700 12,700
Sunshine State Governmental Finance
Commission TECP / (Multiple Credit
Enhancements)
3.60%, 08/10/98 10,000 10,000
--------
34,792
--------
KANSAS -- 0.2%
Burlington, Kansas Pollution Control
Revenue Refunding Bonds TECP (Kansas
Power & Light Co. Project) Series 1987A /
(Toronto-Dominion Bank LOC)
3.70%, 07/13/98 6,100 6,100
Burlington, Kansas Pollution Control
Revenue Refunding Bonds TECP (Kansas
Power & Light Co. Project)
Series 1987B / (Deutsche Bank LOC)
3.40%, 07/07/98 1,200 1,200
3.70%, 07/13/98 5,000 5,000
--------
12,300
--------
Par Value
------- --------
KENTUCKY -- 0.2%
Trimble County, Kentucky Pollution Control
Revenue TECP (Louisville G&E Project)
Series 1997A
3.65%, 07/09/98 $15,000 $ 15,000
--------
LOUISIANA -- 1.7%
Louisiana Adjustable Tender GO Refunding
Bonds TECP Series 1991A / (Credit Local
de France LOC)
3.85%, 07/01/98 7,530 7,530
3.70%, 07/13/98 10,150 10,150
3.65%, 07/23/98 4,000 4,000
3.70%, 08/11/98 8,420 8,420
Louisiana State Pollution Control Revenue
Refunding Bonds TECP (St. James Parish /
Texaco Project) Series 1988A
3.50%, 07/21/98 10,000 10,000
Louisiana State Pollution Control Revenue
Refunding Bonds TECP (St. James Parish /
Texaco Project) Series 1988B
3.50%, 07/21/98 61,030 61,030
--------
101,130
--------
MINNESOTA -- 0.2%
Rochester, Minnesota Health Care Facilities
RB TECP (Mayo Foundation / Mayo Medical
Center) Series 1992A
3.40%, 07/07/98 2,000 2,000
3.70%, 07/13/98 3,500 3,500
Rochester, Minnesota Health Care Facilities
RB TECP (Mayo Foundation / Mayo Medical
Center) Series 1992B
3.40%, 07/07/98 3,100 3,100
3.70%, 07/07/98 1,300 1,300
Rochester, Minnesota Health Care Facilities
RB TECP (Mayo Foundation / Mayo Medical
Center) Series 1992C
3.40%, 07/07/98 4,800 4,800
--------
14,700
--------
49
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
NEW YORK -- 2.1%
New York City, New York Municipal
Assistance Corp. TECP Series
1997K-3 / (Landesbank Hessen-Thuringen
Girozentrale LOC)
3.70%, 08/26/98 $ 1,000 $ 1,000
New York State Dormitory Authority RB TECP
(Memorial Sloan Kettering Project)
Series 1989C / (Chase Manhattan LOC)
3.55%, 07/09/98 11,435 11,435
New York State Environmental TECP /
(Multiple Credit Enhancements)
3.65%, 07/07/98 41,100 41,100
3.65%, 07/20/98 20,000 20,000
3.60%, 09/03/98 13,400 13,400
New York State Power Authority TECP
Series 2 / (Multiple Credit Enhancements)
3.60%, 08/13/98 5,000 5,000
3.65%, 08/19/98 2,300 2,300
New York State Short Term Series TECP /
(Westdeutsche Landesbank LOC)
3.55%, 07/09/98 30,000 30,000
--------
124,235
--------
NORTH CAROLINA -- 0.4%
North Carolina Eastern Municipal Power
Agency TECP / (Canadian Imperial
Bank of Commerce LOC)
3.50%, 07/14/98 4,700 4,700
North Carolina Eastern Municipal Power
Agency System RB / (Multiple Credit
Enhancements)
3.50%, 07/15/98 18,400 18,400
3.70%, 08/18/98 2,900 2,900
--------
26,000
--------
OKLAHOMA -- 0.2%
Oklahoma City Industrial & Cultural Trust
RB TECP (SSM Health Care) Series B /
(MBIA Insurance & Nationsbank LOC)
3.70%, 08/25/98 13,495 13,495
--------
Par Value
------- --------
PENNSYLVANIA -- 0.3%
Commonwealth of Pennsylvania GO BAN TECP
Series 1997A / (Bayerische Landesbank
Girozentrale LOC)
3.65%, 08/20/98 $ 1,600 $ 1,600
Commonwealth of Pennsylvania TECP
Series 1997A / (Bayerische Landesbank
Girozentrale LOC)
3.55%, 07/13/98 5,500 5,500
Montgomery County, Pennsylvania IDA
Pollution Control RB / (Deutsche Bank LOC)
3.70%, 07/08/98 13,010 13,010
--------
20,110
--------
PUERTO RICO -- 0.3%
Goverment Development Bank for Puerto
Rico TECP
3.75%, 07/14/98 836 836
3.65%, 07/16/98 15,694 15,694
--------
16,530
--------
TEXAS -- 2.2%
Corpus Christi, Texas Utility System
TECP / (Westdeutsche Landesbank LOC)
3.75%, 08/13/98 5,055 5,055
Houston, Texas Water & Sewer TECP
Series A / (Swiss Bank & Westdeutsche
Landesbank Revolving Credit
Agreement)
3.60%, 07/09/98 22,000 22,000
3.65%, 07/15/98 20,800 20,800
3.75%, 07/16/98 11,000 11,000
3.70%, 08/11/98 15,000 15,000
Texas State TECP Series 1997B
3.50%, 08/12/98 21,000 21,000
3.55%, 08/12/98 15,000 15,000
Texas State TRAN TECP Series 1997B
3.65%, 08/12/98 20,000 20,000
--------
129,855
--------
50
<PAGE>
Par Value
------- --------
UTAH -- 0.8%
Utah State GO Highway TECP
Series 1998B / (Toronto-Dominion
Bank Liquidity)
3.65%, 08/06/98 $50,000 $ 50,000
--------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $622,127) 622,127
--------
MANDATORY PUT BONDS -- 5.7% (b)
DISTRICT OF COLUMBIA -- 0.3%
Washington D.C. HFA S/F Put Bond /
(AIG Financial Products
Corp. LOC)
3.80%, 06/23/99 16,500 16,500
--------
OHIO -- 0.2%
Butler County, Ohio M/F RB Put Bond
(Wyndtree Apartments Project) /
(FGIC Insurance)
3.90%, 01/01/99 5,000 5,000
Franklin County, Ohio M/F Put Bond
(Jefferson Place Apartments
Project) / (FGIC Insurance &
Fifth 3rd Bank LOC)
3.85%, 12/01/98 4,500 4,500
--------
9,500
--------
RHODE ISLAND -- 0.3%
Rhode Island State Student Loan Authority
RB Put Bond / (National Westminster LOC)
3.80%, 05/31/99 19,000 19,000
--------
TENNESSEE -- 1.6%
Metropolitan Nashville & Davidson County,
Tennessee IDRB Put Bonds (Insurance Co.
America Project)
3.80%, 11/01/98 5,700 5,700
Tennessee HDA RB Put Bonds (Homeownership
Program) Series 1997
3.74%, 06/17/99 40,000 40,000
Tennessee HDA RB Put Bonds (Homeownership
Program) Series 1997-2
3.69%, 03/04/99 50,000 50,000
--------
95,700
--------
Par Value
------- --------
TEXAS -- 2.9%
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1992A / (SLMA LOC)
3.90%, 09/01/98 $32,500 $ 32,500
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1992B / (SLMA LOC)
4.00%, 07/01/98 14,000 14,000
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1993A / (SLMA LOC)
3.80%, 05/01/99 48,150 48,150
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1993B2 / (SLMA LOC)
3.80%, 06/01/99 6,500 6,500
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1995 / (SLMA LOC)
3.80%, 05/01/99 27,500 27,500
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1995A / (SLMA LOC)
3.80%, 05/01/99 46,700 46,700
--------
175,350
--------
WASHINGTON -- 0.1%
Washington State Housing Finance Committee
S/F Program Put Bonds Series 5A-S /
(Bayerische Landesbank Girozentrale LOC)
3.90%, 07/01/98 7,515 7,515
--------
WYOMING -- 0.3%
Wyoming Community HDA RB Put Bonds
3.74%, 08/27/98 8,000 8,005
3.78%, 08/27/98 13,500 13,507
--------
21,512
--------
TOTAL MANDATORY PUT BONDS
(Cost $345,077) 345,077
--------
51
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- --------
TAX AND REVENUE ANTICIPATION NOTES -- 5.6% (b)
CALIFORNIA -- 5.1%
California School Cash Reserve Program
Authority Pooled TRAN / (10% AMBAC
Insurance)
3.74%, 07/02/98 $ 90 $ 90
3.80%, 07/02/98 31,000 31,001
3.81%, 07/02/98 20,000 20,000
3.85%, 07/02/98 2,410 2,410
California School Cash Reserve Program
Authority Pooled TRAN Series 1997A /
(10% AMBAC Insurance (d)
2.98%, 07/02/99 250,000 251,830
--------
305,331
--------
PENNSYLVANIA -- 0.0%
Philadelphia Transportation TRAN
Series 1998B (d)
3.63%, 06/30/99 2,500 2,515
--------
DISTRICT OF COLUMBIA -- 0.5%
District of Columbia TRAN Series B /
(Multiple Credit Enhancements)
3.87%, 09/30/98 30,000 30,045
--------
TOTAL TAX AND REVENUE ANTICIPATION NOTES
(Cost $337,891) 337,891
--------
REVENUE BONDS -- 4.5% (b)
ALABAMA -- 0.1%
Alabama State Public Schools College
Authority Capital Improvement RB
3.26%, 11/01/98 5,000 5,014
--------
ARIZONA -- 0.3%
Phoenix, Arizona IDA S/F Mortgage
RB / (FGIC Insurance LOC)
3.75%, 10/01/98 18,000 18,000
--------
CALIFORNIA -- 0.2%
California Higher Education Loan
Authority Student Loan RB
Series 1995E5 / (SLMA LOC)
3.80%, 06/01/99 10,000 10,000
--------
Par Value
-------- --------
DELAWARE -- 0.1%
Delaware Transportation Authority
System RB / (AMBAC Insurance)
3.84%, 07/01/98 $ 3,645 $ 3,645
--------
FLORIDA -- 0.5%
Dade County, Florida Aviation RB /
(FSA Insurance)
3.60%, 10/01/98 1,000 1,002
Dade County, Florida Solid Waste
System RB / (AMBAC Insurance)
3.72%, 10/01/98 3,000 3,006
Hillsborough County, Florida School Board
Sales Tax RB / (AMBAC Insurance)
3.48%, 10/01/98 4,975 4,994
Inland Protection Financing Corp.,
Florida Special Obligation RB /
(FSA Insurance)
3.56%, 07/01/98 9,250 9,250
Orange County, Florida IDA RB (General
Accident Insurance Co. of America Project)
3.73%, 11/01/98 3,500 3,500
Osceola County, Florida Capital
Improvement RB / (MBIA Insurance)
3.45%, 09/01/98 4,765 4,767
Pinellas County, Florida Resolution
Recovery RB Series A / (MBIA Insurance)
3.55%, 10/01/98 1,900 1,913
St. Petersburg, Florida Excise Tax
Revenue Refunding Bonds Series 1993 /
(FGIC Insurance)
3.50%, 10/01/98 1,300 1,301
Village Center Community Development
District Florida Recreational Revenue
Refunding Bonds Series
1998A / (MBIA Insurance)
4.00%, 11/01/98 1,910 1,912
--------
31,645
--------
52
<PAGE>
Par Value
-------- --------
GEORGIA -- 0.1%
Fulton County, Georgia Revenue
Refunding Bonds
3.83%, 01/01/99 $ 2,160 $ 2,165
Georgia Municipal Electric Authority
Power RB Series S
3.73%, 01/01/99 1,000 1,011
--------
3,176
--------
HAWAII -- 0.1%
Hawaii State Housing Financing &
Development Corp. M/F Housing RB
(Nani Mauna Loa Project) Series
1995A / (Citibank LOC)
3.70%, 07/01/98 3,900 3,900
--------
IDAHO -- 0.2%
Custer County, Idaho Pollution Control
RB (Amoco Project) Series 1983
3.60%, 10/01/98 12,000 12,000
--------
ILLINOIS -- 0.2%
Illinois Development Financing Authority RB
3.55%, 09/02/98 6,800 6,800
Illinois Municipal Electric Agency Power
Supply System RB / (FSA Insurance)
3.64%, 02/01/99 5,065 5,082
--------
11,882
--------
IOWA -- 0.0%
Iowa Finance Authority Health Care
Facilities RB (Genesis Medical
Center) / (MBIA Insurance)
3.84%, 07/01/98 375 375
Iowa Finance Authority Health Care
Facilities Revenue Refunding Bonds
(Nebraska Methodist Health System
Project) / (MBIA Insurance)
3.90%, 11/01/98 510 511
--------
886
--------
KENTUCKY -- 0.1%
Maysville, Kentucky Industrial Building RB
(Green Tokai Building) / (Bank of
America LOC)
3.70%, 07/07/98 5,740 5,740
--------
Par Value
-------- --------
LOUISIANA -- 0.0%
Baton Rouge, Louisiana Sales & Use Tax
Public Improvement RB / (FGIC Insurance)
3.85%, 08/01/98 $ 1,370 $ 1,375
--------
MARYLAND -- 0.0%
Maryland State Department of
Transportation Authority Construction
Transportation Revenue Refunding Bonds
3.67%, 09/01/98 1,520 1,522
--------
MISSOURI -- 0.4%
Missouri State Environmental Improvement
& Energy Resources Authority Pollution
Control RB (Union Electric Co.)
Series 1985A / (Swiss Bank LOC)
3.75%, 06/01/99 23,570 23,570
--------
NEBRASKA -- 0.0%
Nebraska Investment Finance Authority
Health Care Facilities Revenue
Refunding Bonds (Nebraska Methodist
Health System Project) / (MBIA
Insurance)
3.90%, 11/01/98 1,475 1,477
--------
NEW HAMPSHIRE -- 0.0%
New Hampshire Municipal Bond
Bank RB Series 1995A / (AMBAC Insurance)
3.80%, 08/15/98 2,500 2,504
--------
NEW JERSEY -- 0.2%
New Jersey Economic Development Authority
RB (Newark Recycling Center Project)
3.95%, 12/15/98 4,600 4,600
New Jersey Health Care Facilities
Financing Authority RB (Community
Medical Center/Kimball) / (FSA Insurance)
3.50%, 07/01/98 2,445 2,445
3.62%, 07/01/99 1,000 1,008
New Jersey State HFA M/F Housing RB
Series 1996A / (AMBAC Insurance)
3.75%, 05/01/99 1,275 1,284
53
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- --------
New Jersey State Transportation
Authority RB Series A
3.70%, 12/15/98 $ 2,425 $ 2,439
Port Authority of New York & New Jersey
RB Series 106
3.50%, 07/01/98 660 660
Sussex County, New Jersey Municipal
Utilities Solid Waste Disposal RB /
(MBIA Insurance)
3.68%, 12/01/98 1,000 1,037
--------
13,473
--------
NEW MEXICO -- 0.4%
New Mexico State Severence Tax Revenue
Refunding Bonds Series 1997A
3.90%, 07/01/98 22,178 22,178
Sandoval County, New Mexico M/F Housing
RB (Meadowlank Apartment Project)
Series 1997A / (FGIC Insurance)
3.90%, 08/01/98 1,500 1,500
--------
23,678
--------
NORTH CAROLINA -- 0.2%
North Carolina Eastern Municipal Power
Agency System RB
3.80%, 01/01/99 7,830 8,130
--------
OHIO -- 0.1%
Cuyahoga County, Ohio Hospital RB (Metro
Health System Project) /
(MBIA Insurance)
3.70%, 02/15/99 500 504
Ohio State Public Facilities Commission
RB (Higher Education Capital Facilities
Project) Series II-B
3.50%, 11/01/98 5,200 5,226
--------
5,730
--------
OREGON -- 0.3%
Oregon State Housing & Community Services
Department Mortgage RB (S/F Mortgage
Program) Series 1997K
3.87%, 12/03/98 18,950 18,950
--------
Par Value
-------- --------
PENNSYLVANIA -- 0.3%
Allegheny County, Pennsylvania Airport
Revenue Refunding Bonds (Pittsburgh
International Airport Project)
Series 1997A / (MBIA Insurance)
3.65%, 01/01/99 $ 4,150 $ 4,174
Pennsylvania State IDA RB (Economic
Development Project) / (AMBAC Insurance)
3.78%, 07/01/98 1,130 1,130
3.82%, 01/01/99 3,000 3,032
Pennsylvania Turnpike RB Series O /
(FGIC Insurance)
3.78%, 12/01/98 700 703
Philadelphia, Pennsylvania Parking
Authority RB / (AMBAC Insurance)
3.49%, 09/01/98 1,000 1,001
Philadelphia, Pennsylvania Water &
Waste RB Series 1997B
3.82%, 08/05/98 3,800 3,800
Philadelphia, Pennsylvania Water & Sewer
Revenue Refunding Bonds 15th Series /
(MBIA Insurance)
3.83%, 10/01/98 800 806
Union County, Pennsylvania Higher Education
Facility Financing Authortiy RB
(Bucknell University Project) /
(MBIA Insurance)
3.75%, 04/01/99 450 456
University of Pittsburgh, Pennsylvania
Revenue Refunding Bonds Series 1997B /
(MBIA Insurance)
3.85%, 06/01/99 800 800
--------
15,902
--------
SOUTH CAROLINA -- 0.0%
Piedmont, South Carolina Municipal Power
Agency Electric RB Series 1985B /
(FGIC Insurance)
3.80%, 01/01/99 2,570 2,595
--------
SOUTH DAKOTA -- 0.0%
South Dakota Health & Education Facilty
Authority Revenue Refunding Bonds
(Rapid City Health & Education
Project) / (MBIA Insurance)
3.66%, 09/01/98 1,000 1,001
--------
54
<PAGE>
Par Value
-------- --------
TEXAS -- 0.1%
San Antonia, Texas Water RB / (Escrowed
to Maturity with Government Securities)
3.70%, 05/01/99 $ 4,000 $ 4,169
Texas State Public Finance Authority
Building RB / (MBIA Insurance)
3.70%, 02/01/99 2,975 3,022
--------
7,191
--------
VIRGINIA -- 0.1%
Virginia College Building Authority,
Virginia Educational Facilities RB
(Equipment Leasing Program)
3.75%, 02/01/99 5,950 5,958
Virginia College Building Authority,
Virginia Educational Facilities RB
(Equipment Leasing Program)
Series 1995
3.80%, 08/01/98 2,000 2,002
--------
7,960
--------
WASHINGTON -- 0.4%
Grays Harbor County, Washington Public
Utility #001 Electric Revenue Refunding
Bonds / (AMBAC Insurance)
3.83%, 01/01/99 1,030 1,033
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series 1997A
3.90%, 07/01/98 14,005 14,005
3.70%, 07/01/99 2,500 2,526
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series A
4.00%, 07/01/98 3,000 3,000
3.70%, 07/01/99 1,000 1,024
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series B
3.90%, 07/01/98 2,275 2,275
--------
23,863
--------
Par Value
-------- --------
WYOMING -- 0.1%
Uinta County, Wyoming Hospital Facilities
RB (IHC Hospitals Project)
3.70%, 02/15/99 $ 7,350 $ 7,652
--------
TOTAL REVENUE BONDS
(Cost $272,461) 272,461
--------
VARIABLE RATE TENDER OPTION BONDS -- 4.2% (a) (c)
FLORIDA -- 0.0%
Escambia County, Florida HFA S/F Housing
TOB / (Merrill Lynch Capital
Services LOC)
3.75%, 07/07/98 2,245 2,245
--------
GEORGIA -- 0.1%
State of Georgia TOB/(Bankers Trust LOC)
3.67%, 07/07/98 4,000 4,000
--------
HAWAII -- 0.5%
Hawaii State Housing Finance & Development
Corp. TOBP / (Bank of America LOC)
3.68%, 07/07/98 22,980 22,980
State of Hawaii GO TOB / (Bankers Trust
LOC)
3.70%, 07/07/98 7,400 7,400
--------
30,380
--------
ILLINOIS -- 0.2%
Chicago, Illinois Metropolitan Water
Reclamation District Greater Chicago
GO TOBP (Cook County) (BTP-71) /
(Automatic Data Processing, Inc.
Tender Offer)
3.70%, 07/07/98 9,870 9,870
--------
MASSACHUSETTS -- 0.3%
Massachusetts Water Resources Authority
General Revenue Refunding TOB Series
1998B / (CoreStates Bank NA & FSA
Insurance)
3.65%, 07/07/98 20,045 20,045
--------
55
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- --------
MICHIGAN -- 0.1%
Monroe County, Michigan Pollution Control
TOB (Detroit Edison Co. Project) /
(FGIC Insurance & Merrill Lynch
Capital Services LOC)
3.73%, 07/07/98 $ 7,455 $ 7,455
--------
MINNESOTA -- 0.1%
Minnesota State Various Purpose GO
(Sports Health Club Tax) TOBP (BTP-65) /
(Automatic Data Processing Inc. LOC)
3.70%, 07/07/98 4,455 4,455
--------
MISSISSIPPI -- 0.2%
Mississippi S/F TOB (Home Corp.)
Series 1997G / (Bank of America LOC)
3.68%, 07/07/98 12,495 12,495
--------
NEW HAMPSHIRE -- 0.3%
New Hampshire State Housing Financing
Authority S/F Revenue TOB Series G /
(AMBAC Insurance & Bank of America NT
& SA LOC)
3.65%, 07/07/98 20,865 20,865
--------
NEW JERSEY -- 0.2%
New Jersey Building Authority TOBP (PA-320
Project) / (Merrill Lynch Capital
Services LOC)
3.58%, 07/07/98 845 845
New Jersey State GO TOB / (Merrill Lynch
Capital Services LOC)
3.58%, 07/07/98 605 605
New Jersey State Transportation Authority
TOB / (MBIA Insurance)
3.58%, 07/07/98 4,495 4,495
New Jersey Transportation Authority TOBP
(PT-200) / (Bayerische Vereinsbank LOC)
3.58%, 07/07/98 3,675 3,675
--------
9,620
--------
NEW YORK -- 1.0%
New York City, New York GO TOBP (CoreStates
Merlot Program) Series 1997C /
(CoreStates Bank NA & MBIA Insurance)
3.56%, 07/07/98 28,825 28,825
Par Value
-------- --------
New York City, New York Municipal
Assistance Corp. TOB / (Merrill Lynch
Capital Services LOC)
3.68%, 07/07/98 $ 10,000 $ 10,000
New York City, New York Municipal
Assistance Corp. TOBP (BTP-225)
3.60%, 07/07/98 19,800 19,800
--------
58,625
--------
PENNSYLVANIA -- 0.3%
Allegheny County, Pennsylvania Airport
TOBP / (MBIA Insurance)
3.68%, 07/07/98 3,645 3,645
Allegheny County, Pennsylvania Airport
TOBP (PT-176) / (Bayerische Hypotheken
Und Wechsel Bank & MBIA Insurance)
3.68%, 07/07/98 2,930 2,930
Chester County, Pennsylvania Health and
Education TOB / (AMBAC Insurance)
3.68%, 07/07/98 1,305 1,305
Philadelphia, Pennsylvania Water & Waste
Revenue TOBP (PT-151)
Series 1993 / (FSA Insurance)
3.68%, 07/07/98 8,190 8,190
--------
16,070
--------
PUERTO RICO -- 0.2%
Puerto Rico Commonwealth TOB / (FSA
Insurance & Merrill Lynch Capital
Services LOC)
3.58%, 07/07/98 4,645 4,645
Puerto Rico Commonwealth TOBP
(PT 181) / (Bayerische Hypotheken Und
Wechsel Bank & MBIA Insurance)
3.58%, 07/07/98 7,325 7,325
--------
11,970
--------
TEXAS -- 0.6%
El Paso Water & Sewer Revenue TOB
Series 9 / (Multiple Credit
Enhancements LOC)
3.68%, 07/07/98 15,450 15,450
State of Texas GO TOB / (Bankers
Trust LOC)
3.70%, 07/07/98 12,205 12,205
56
<PAGE>
Par Value
-------- --------
Texas State GO General Purpose Public
Improvement TOBP (BTP-116)
Series 1993B / (Bankers Trust
Tender Option LOC)
3.66%, 07/07/98 $10,170 $ 10,170
--------
37,825
--------
WASHINGTON -- 0.1%
Washington State Public Power Supply
System Nuclear Project Number 2
Revenue Refunding TOBP
(BTP-137) Series 1993B / (Bankers
Trust Tender Option LOC)
3.73%, 07/07/98 6,685 6,685
--------
TOTAL VARIABLE RATE TENDER OPTION BONDS
(Cost $252,605) 252,605
--------
BOND ANTICIPATION NOTES -- 1.9% (b)
KANSAS -- 0.1%
Shawnee County, Kansas BAN
3.98%, 05/01/99 2,305 2,307
--------
MASSACHUSETTS -- 0.0%
Massachusetts State Turnpike BAN /
(Escrowed To Maturity With
Government Securities)
3.75%, 06/01/99 2,000 2,022
--------
NEW JERSEY -- 1.7%
Atlantic City, New Jersey BAN
3.89%, 08/27/98 9,350 9,355
Delanco Township, New Jersey BAN
3.90%, 12/09/98 900 901
Florence Township, New Jersey BAN
Series B
3.85%, 02/12/99 1,618 1,618
Jersey City, New Jersey BAN
3.79%, 01/15/99 10,000 10,011
3.63%, 03/05/99 2,000 2,005
Jersey City, New Jersey School BAN
3.60%, 03/05/99 17,000 17,033
Peapack Gladstone, New Jersey BAN
3.75%, 05/13/99 2,300 2,307
Princeton, New Jersey Borough BAN
3.75%, 08/07/98 4,082 4,084
Rahway Township, New Jersey BAN
3.80%, 12/23/98 3,195 3,202
Par Value
-------- --------
Roxbury Township, New Jersey BAN
3.48%, 08/13/98 $15,752 $ 15,757
Seaside Heights, New Jersey BAN Series A
3.75%, 02/19/99 2,330 2,337
Trenton, New Jersey School District BAN
3.90%, 10/01/98 16,849 16,863
Vernon Township, New Jersey Board
of Education BAN
3.68%, 12/04/98 8,000 8,011
Vernon Township, New Jersey School
District BAN
3.85%, 12/04/98 5,000 5,008
Vineland, New Jersey BAN
Series 1997-1998
3.82%, 08/14/98 2,455 2,456
West Windsor-Plainsboro, New Jersey
Regional School District BAN
3.58%, 01/27/99 2,000 2,005
--------
102,953
--------
OHIO -- 0.1%
Ottawa Hills, Ohio Local School District
BAN
3.80%, 08/05/98 5,000 5,002
--------
SOUTH CAROLINA -- 0.0%
Spartanburg, South Carolina County School
District BAN
3.75%, 06/22/99 1,400 1,403
--------
TOTAL BOND ANTICIPATION NOTES
(Cost $113,687) 113,687
--------
FIXED RATE TENDER OPTION BONDS -- 1.8% (b) (e)
CONNECTICUT -- 0.1%
Connecticut State GO TOBP Series 1991A
(BTP-151) / (Bankers Trust Tender Option)
3.60%, 03/17/99 7,365 7,365
--------
GEORGIA -- 0.3%
Georgia State Public Improvement GO TOBP
Series 1993B & 1993C (BTP-135) /
(Bankers Trust Tender Option)
3.62%, 03/17/99 3,865 3,865
57
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- --------
Georgia State Public Improvement GO TOBP
Series 1993B & 1993C (BTP-140) /
(Bankers Trust Tender
Option)
3.62%, 03/17/99 $ 4,575 $ 4,575
Georgia State Public Improvement GO TOBP
Series 1994B (BTP-148) / (Bankers Trust
Tender Option & Escrowed to Maturity
with Government Securities)
3.62%, 03/17/99 7,100 7,100
--------
15,540
--------
PENNSYLVANIA -- 0.0%
Pennsylvania State University Revenue
Refunding Bonds TOB Series 2 /
(Rabobank Nederland N.V. LOC)
3.75%, 01/14/99 3,245 3,245
--------
SOUTH CAROLINA -- 0.1%
South Carolina State Capital Improvement
Revenue Refunding TOBP (BTP-147)
Series 1992B / (Bankers Trust Tender
Option)
3.62%, 03/17/99 5,370 5,370
--------
TEXAS -- 0.7%
Regents of the University of Texas
(Permanent University Fund) Revenue
TOBP (BTP-143) Series 1993A /
(Escrowed to Maturity with Government
Securities)
3.65%, 03/17/99 10,685 10,685
Southeast Texas Housing Finance Corp.
TOBP (PT-193) / (Banco Santander SA LOC)
3.85%, 05/13/99 13,270 13,270
Texas State Public Finance Authority
GO TOBP Series 1994A (BTP-127) /
(Bankers Trust Tender Option)
3.62%, 03/17/99 14,980 14,980
--------
38,935
--------
VIRGINIA -- 0.3%
Virginia State Public School Authority
School Equipment Financing Notes TOB
Series 5 / (Bankers Trust LOC)
3.64%, 02/10/99 19,685 19,685
--------
Par Value
-------- --------
WISCONSIN -- 0.3%
Wisconsin Housing & Economic Development
Authority Home Ownership TOBP (PT-194) /
(Banco Santander SA LOC)
3.84%, 05/13/99 $ 15,610 $ 15,610
--------
TOTAL FIXED RATE TENDER OPTION BONDS
(Cost $105,750) 105,750
--------
GENERAL OBLIGATIONS -- 1.3% (b)
ALABAMA -- 0.1%
Alabama State GO
3.58%, 03/01/99 3,000 3,045
--------
ARIZONA -- 0.1%
Maricopa County, Arizona GO (School
District 210) Series 1995B
3.85%, 07/01/98 3,500 3,500
Pima County Arizona GO / (MBIA Insurance)
3.73%, 07/01/99 3,380 3,414
--------
6,914
--------
CONNECTICUT -- 0.0%
Connecticut State GO
3.78%, 12/15/98 1,500 1,508
--------
DELAWARE -- 0.1%
Wilmington, Delaware GO /
(MBIA Insurance)
3.54%, 10/01/98 4,455 4,471
--------
FLORIDA -- 0.1%
Dade County, Florida School District GO /
(MBIA Insurance)
3.50%, 08/01/98 3,985 3,993
--------
GEORGIA -- 0.2%
Cherokee County, Georgia School System GO
3.78%, 02/01/99 7,330 7,330
Georgia State GO Series D
3.55%, 11/01/98 1,175 1,188
--------
8,518
--------
HAWAII -- 0.0%
Hawaii County, Hawaii GO Series A /
(Escrowed To Maturity & FGIC Insurance)
3.80%, 06/01/99 1,000 1,028
--------
58
<PAGE>
Par Value
-------- --------
ILLINOIS -- 0.1%
Arlington Heights, Illinois Parking
District GO (FGIC Insurance)
3.65%, 12/01/98 $ 1,430 $ 1,432
Bolingbrook Park District, Illinois GO /
(MBIA Insurance)
3.80%, 01/01/99 1,650 1,652
Chicago Park, Illinois District GO
Refunding Bonds / (FGIC Insurance)
3.83%, 01/01/99 2,000 2,016
Chicago, Illinois School Financing
Authority Refunding GO Series 1992A /
(FGIC Insurance)
3.75%, 06/01/99 500 509
--------
5,609
--------
IOWA -- 0.0%
Cedar Rapids, Iowa GO
3.80%, 06/01/99 1,445 1,450
--------
MARYLAND -- 0.0%
Anne Arundel County, Maryland GO
3.55%, 09/01/98 2,110 2,113
--------
NEVADA -- 0.1%
Washoe County, Nevada School District GO /
(MBIA Insurance)
3.65%, 08/01/98 3,270 3,273
--------
NEW JERSEY -- 0.0%
Hamilton Township, New Jersey GO /
(MBIA Insurance)
3.75%, 08/01/98 1,500 1,501
Middletown Township, New Jersey Board of
Education GO / (MBIA Insurance)
3.51%, 08/01/98 500 501
--------
2,002
--------
NEW MEXICO -- 0.1%
Albequerque, New Mexico GO
Series 1992B
3.65%, 07/01/98 4,000 4,000
--------
NEW YORK -- 0.0%
Islip, New York GO / (MBIA Insurance)
3.55%, 08/15/98 1,000 1,002
--------
Par Value
-------- --------
OKLAHOMA -- 0.0%
Tulsa, Oklahoma GO Refunding Bonds
Series 1992B
3.70%, 12/01/98 $ 2,390 $ 2,410
--------
PENNSYLVANIA -- 0.2%
Berks County, Pennsylvania GO /
(FGIC Insurance)
3.70%, 11/15/98 1,000 1,015
Pennsylvania State GO / (FGIC Insurance)
3.75%, 11/15/98 7,675 7,717
Philadelphia, Pennsylvania School
District Refunding GO Series 1993A /
(MBIA Insurance)
3.82%, 07/01/98 5,000 5,000
--------
13,732
--------
SOUTH CAROLINA -- 0.0%
Chester County, South Carolina School
District GO Refunding Bonds /
(AMBAC Insurance)
3.78%, 02/01/99 1,010 1,026
--------
TENNESSEE -- 0.0%
Shelby County, Tennessee GO Revenue
Refunding Bonds Series A
4.00%, 08/01/98 655 656
--------
TEXAS -- 0.1%
Port Neches-Groves, Texas Independent
School District GO / (Texas Permanent
School Fund LOC)
3.70%, 02/15/99 1,000 1,020
Texas State GO
3.77%, 10/01/98 3,000 3,031
--------
4,051
--------
WASHINGTON -- 0.1%
Thurston County, Washington GO Refunding
Bonds / (MBIA Insurance)
3.70%, 08/01/98 2,260 2,262
Washington State Motor Vehicle Tax GO /
(Escrowed To Maturity With Government
Securities LOC)
3.77%, 03/01/99 1,975 2,016
--------
4,278
--------
59
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- --------
WISCONSIN -- 0.0%
Wisconsin State GO
3.75%, 05/01/99 $ 2,000 $ 2,016
----------
TOTAL GENERAL OBLIGATIONS
(Cost $77,095) 77,095
----------
REVENUE ANTICIPATION NOTES -- 1.2% (b)
MASSACHUSETTS -- 1.2%
Massachusetts Bay Transportation
Authority RAN Series 1998S
3.60%, 02/26/99 75,000 75,309
----------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $75,309) 75,309
----------
OPTIONAL PUT BONDS -- 1.2% (b)
ILLINOIS -- 0.2%
Chicago, Illinois GO Put Bond
3.51%, 10/29/98 13,100 13,100
Illinois State GO Put Bond
3.77%, 02/01/99 1,305 1,310
----------
14,410
----------
TEXAS -- 0.8%
Grapevine, Texas Industrial Development
Corp. Airport RB Put Bonds (Singer
County Project) / (Bank of Montreal LOC)
3.90%, 04/01/99 18,975 18,975
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1992B / (SLMA LOC)
3.95%, 09/01/98 6,000 6,000
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1993B-1 / (SLMA LOC)
3.70%, 07/01/98 11,000 11,000
Greater East Texas Higher Education
Authority Student Loan RB Put Bonds
Series 1995B / (SLMA LOC)
4.00%, 07/01/98 10,000 10,000
----------
45,975
----------
Par Value
-------- ----------
WYOMING -- 0.2%
Lincoln County, Wyoming Pollution Control
RB (Amoco Project) Series 1983
3.59%, 10/01/98 $14,350 $ 14,353
----------
TOTAL OPTIONAL PUT BONDS
(Cost $74,738) 74,738
----------
CERTIFICATES OF PARTICIPATION -- 0.2% (b)
FLORIDA -- 0.0%
Seminole County, Florida School Board
COP / (MBIA Insurance)
3.53%, 07/01/98 2,315 2,315
----------
GEORGIA -- 0.0%
Atlanta, Georgia COP (Atlanta Pretrial
Detention Center Project) /
(MBIA Insurance)
3.70%, 12/01/98 1,630 1,639
----------
OREGON -- 0.2%
Multnomah County, Oregon COP
3.55%, 08/01/98 3,840 3,841
----------
PENNSYLVANIA -- 0.0%
Pennsylvania State COP /
(FSA Insurance)
3.78%, 05/01/99 1,080 1,099
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $8,894) 8,894
----------
TAX ANTICIPATION NOTES -- 0.1% (b)
KANSAS -- 0.1%
Hutchinson, Kansas GO
3.78%, 04/01/99 3,160 3,160
Wichita, Kansas TAN
3.70%, 04/29/99 3,655 3,664
----------
6,824
----------
TOTAL TAX ANTICIPATION NOTES
(Cost $6,824) 6,824
----------
TOTAL INVESTMENTS -- 101.3%
(Cost $6,112,205) 6,112,205
----------
OTHER ASSETS AND LIABILITIES -- (1.3%)
Other Assets 212,216
Liabilities (289,709)
----------
(77,493)
----------
NET ASSETS -- 100.0% $6,034,712
==========
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
60
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------- --------
VARIABLE RATE OBLIGATIONS -- 56.8% (a)
CALIFORNIA -- 56.8%
ABAG Financing Authority for Non-Profit
Organizations COP (Bentley School) /
(Banque Nationale de Paris LOC)
3.70%, 07/07/98 $ 5,230 $ 5,230
ABAG Financing Authority for Non-Profit
Organizations COP (Harker School
Project) / (First Trust NA LOC)
3.15%, 07/07/98 5,630 5,630
ABAG Financing Authority M/F Housing RB
(Mountain View Apartments)
Series 1997A / (Comerica Bank LOC)
3.60%, 07/07/98 3,500 3,500
Alameda-Contra Costa, California School
Financial Authority COP (Capital
Improvement Finance Project) /
(Canadian Imperial Bank of Commerce LOC)
3.20%, 07/07/98 850 850
Alameda County, California IDRB (Aitchison
Family Project) Series 1993A /
(Wells Fargo Bank LOC)
3.55%, 07/07/98 2,840 2,840
Alameda County, California IDRB
(Association Heat & Control
Project) / (Wells Fargo Bank LOC)
3.55%, 07/07/98 845 845
Alameda County, California IDRB
(JMS Family Partners) Series A /
(Wells Fargo Bank LOC)
3.55%, 07/01/98 1,400 1,400
Alameda County, California IDRB
(Scientific Technology Project)
Series 1994A / (Banque Nationale
de Paris LOC)
3.55%, 07/07/98 2,840 2,840
Anaheim, California COP (Anaheim Memorial
Hospital Assoc. Project) / (AMBAC
Insurance & ABN-Amro SPA)
3.10%, 07/07/98 1,070 1,070
Anaheim, California COP (Police Facility
Financing Project) / (AMBAC Insurance &
ABN AMRO SPA)
3.10%, 07/07/98 750 750
Par Value
-------- ----------
Anaheim, California Housing Authority M/F
Housing RB (Casa Grande Apartments)
Series 1997A / (FNMA
Collateral Agreement)
3.40%, 07/07/98 $ 3,795 $ 3,795
Anaheim, California Housing
Authority M/F Housing RB (Heritage
Village Apartments Project)
Series 1992A / (Multiple Credit
Enhancements)
3.25%, 07/07/98 3,185 3,185
Anaheim, California Housing Authority
M/F Housing RB (Port Trinidad Apartments)
Series 1997C / (FNMA Collateral Agreement)
3.40%, 07/07/98 2,140 2,140
Auburn, California Unified School
District COP / (Banque Nationale
Paris LOC)
3.15%, 07/07/98 10,750 10,750
Avalon, California Community Improvement
Agency Tax Allocation RB / (Union Bank
of California LOC)
3.90%, 07/07/98 10,225 10,225
Basset, California COP (Union School
District Capital Improvement Project) /
(Union Bank of California LOC)
4.10%, 07/02/98 6,435 6,435
Big Bear Lake, California IDRB COP
(Southwest Gas Corp. Project)
Series A / (Union Bank of
Switzerland LOC)
3.15%, 07/07/98 27,800 27,800
Burbank, California Redevelopment Agency
M/F Housing RB / (FHLB Collateral
Agreement)
2.75%, 07/07/98 6,800 6,800
California Alternative Energy Source
Financing Authority (GE Capital Corp.
Arroyo) Series 1993B
3.05%, 07/07/98 4,860 4,860
California Eastern Water Municipal
District Water & Sewer Revenue COP
Series 1993B / (FGIC Insurance
& Rabobank SPA)
3.00%, 07/07/98 17,000 17,000
California Economic Development Financing
Authority (Lion Raisin Project) /
(Bank of America NT & SA LOC)
3.60%, 07/07/98 1,000 1,000
61
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- ---------
California Finance Authority Pollution
Control RB (Pacific Gas & Electric
Company) / (Bank of America LOC)
3.35%, 07/01/98 $ 4,000 $ 4,000
California Health Facilities Financing
Authority RB (Adventist Health)
Series A / (MBIA Insurance &
California State Teacher Retirement SPA)
3.50%, 07/07/98 4,000 4,000
California Health Facilities Financing
Authority RB (Catholic Health Care) /
(MBIA Insurance & Rabobank Nederland
Liquidity)
3.00%, 07/07/98 12,400 12,400
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1988C / (MBIA Insurance &
Morgan Guaranty Trust SPA)
3.00%, 07/07/98 1,100 1,100
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1996B / (MBIA Insurance &
Rabobank Nederland SPA)
3.00%, 07/07/98 10,600 10,600
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1996D / (MBIA Insurance &
Rabobank Nederland N.V. SPA)
3.00%, 07/07/98 2,400 2,400
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series A / (MBIA Insurance & Morgan
Guaranty Trust SPA)
3.00%, 07/07/98 1,400 1,400
California Health Facilities Financing
Authority RB (Children's Hospital
Project) Series 1991 /
(MBIA Insurance & Swiss Bank SBPA)
3.00%, 07/07/98 10,150 10,150
California Health Facilities Financing
Authority RB (Kaiser Permanente
Medical Center) Series 1993A
3.50%, 07/07/98 18,400 18,400
California Health Facilities Financing
Authority RB (Kaiser Permanente
Medical Center) Series 1993B
3.50%, 07/07/98 19,900 19,900
Par Value
-------- ----------
California Health Facilities Financing
Authority RB (M/F Housing III)
Series 1997B / (Multiple Credit
Enhancements)
3.25%, 07/07/98 $ 14,600 $ 14,600
California Health Facilities Financing
Authority RB (Scripps Memorial Hospital)
Series 1985B / (MBIA Insurance &
Morgan Guaranty Trust Co.-New York LOC)
3.20%, 07/07/98 15,120 15,120
California Health Facilities Financing
Authority RB (Scripps Memorial Hospital)
Series 1991A / (MBIA Insurance &
Morgan Guaranty Trust Co.-New York LOC)
3.20%, 07/07/98 1,200 1,200
California Health Facilities Financing
Authority RB (Scripps Memorial Hospital)
Series 1991B / (MBIA Insurance & Swiss
Bank SBPA)
3.20%, 07/07/98 400 400
California Health Facilities Financing
Authority RB (St. Francis Hospital)
Series 1995E / (MBIA Insurance &
Rabobank Nederland N.V. SBPA)
3.00%, 07/07/98 4,800 4,800
California Health Facilities Financing
Authority RB (St. Francis Hospital)
Series 1995F / (MBIA Insurance &
Rabobank Nederland N.V. SBPA)
3.15%, 07/07/98 30,000 30,000
California Health Facilities Financing
Authority RB (Sutter Health Project)
Series 1990A / (Morgan Guaranty Trust
Co.-New York LOC)
3.30%, 07/01/98 1,700 1,700
California Pollution Control Financing
Authority RB(Green Team of San Jose
Project) / (Wells Fargo Bank LOC)
3.25%, 07/07/98 5,000 5,000
California Pollution Control Financing
Authority RB (Pacific Gas & Electric Co.
Project) Series 1996B / (Rabobank
Nederland N.V. LOC)
3.25%, 07/07/98 119,700 119,700
62
<PAGE>
Par Value
-------- ----------
California Pollution Control Financing
Authority RB (Pacific Gas & Electric)
Series A / (Swiss Bank LOC)
3.15%, 07/07/98 $143,000 $ 143,000
California Pollution Control Financing
Authority RB (Pacific Gas & Electric)
Series B / (Deutsche Bank LOC)
3.40%, 07/01/98 1,000 1,000
California Pollution Control Financing
Authority RB (Pacific Gas & Electric)
Series C / (North Kredietbank LOC)
3.60%, 07/01/98 7,500 7,500
California Pollution Control Financing
Authority RB (Pacific Gas & Electric)
Series D
3.35%, 07/01/98 11,400 11,400
California Pollution Control Financing
Authority RB (Reynolds Metals Co.
Project) Series 1985 / (National
Westminster Bank PLC LOC)
3.30%, 07/07/98 1,300 1,300
California Pollution Control Financing
Authority RB (Shell Oil Project)
Series 1991C
3.25%, 07/01/98 300 300
California Pollution Control Financing
Authority RB (Southern California Edison)
Series 1986A
3.45%, 07/01/98 6,200 6,200
California Pollution Control Financing
Authority RB (Southern California Edison)
Series D
3.45%, 07/01/98 400 400
California Pollution Control Financing
Authority Resource Recovery RB (Sanger
Project) Series 1990A / (Credit
Suisse LOC)
3.15%, 07/07/98 2,800 2,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(West Valley Project) Series 1997A /
(Union Bank of California LOC)
3.25%, 07/07/98 9,400 9,400
California Pollution Control Financing
Authority Solid Waste Disposal RB /
(Union Bank of California LOC)
3.25%, 07/07/98 13,670 13,670
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Athens Disposal Co. Project) Series
1995A / (Wells Fargo Bank LOC)
3.25%, 07/07/98 $ 19,335 $ 19,335
California Pollution Control Financing
Authority Solid Waste Disposal RB
(BLT Enterprises Project) Series
1995A / (Wells Fargo Bank LOC)
3.25%, 07/01/98 4,200 4,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Burrtec Waste Industries Project)
Series 1995A / (Union Bank of
California LOC)
3.25%, 07/07/98 5,010 5,010
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990A /
(Swiss Bank LOC)
3.15%, 07/07/98 12,900 12,900
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990B /
(Swiss Bank LOC)
3.15%, 07/07/98 11,590 11,590
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990C /
(Swiss Bank LOC)
3.15%, 07/07/98 2,490 2,490
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Contra Costa Services) Series 1995A /
(Bank of America LOC)
3.20%, 07/07/98 4,200 4,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Edco Disposal Corp. Project)
Series 1996A / (Wells Fargo Bank LOC)
3.25%, 07/01/98 17,400 17,400
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Equity Stanislaus Project) / (Swiss
Bank LOC)
3.70%, 07/01/98 7,000 7,000
63
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Madera Disposable) Series A / (Bank
Boston LOC)
3.35%, 07/07/98 $ 1,800 $ 1,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(New United Motor Manufacturing)
Series A / (Bank of Tokyo LOC)
4.15%, 07/07/98 4,500 4,500
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Santa Clara) / (Comerica Bank LOC)
3.20%, 07/07/98 4,495 4,495
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Santa Clara) / (Wells Fargo Bank LOC)
3.25%, 07/07/98 11,700 11,700
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Martinez Refining) Series A
3.40%, 07/07/98 10,100 10,100
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Co. Project) Series 1994A
3.35%, 07/01/98 5,600 5,600
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Co. Project) Series 1994B
3.35%, 07/01/98 7,800 7,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Co. Martinez Project)
Series 1996B / (Shell Corp. Guaranty)
3.35%, 07/01/98 47,800 47,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Solag Disposal Project) Series 1997A /
(Wells Fargo Bank LOC)
3.25%, 07/07/98 4,000 4,000
California Pollution Control Financing
Authority Solid Waste Disposal RB (Sun
Valley Paper) / (Bank of America NT &
SA LOC)
3.20%, 07/07/98 1,500 1,500
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Talco Plastics) Series 1997A /
(Wells Fargo Bank LOC)
3.55%, 07/07/98 $ 4,300 $ 4,300
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Tri Community Recycle) / (Comerica
Bank LOC)
3.55%, 07/07/98 2,455 2,455
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Various California Waste Recovery)
Series 1996A / (Wells Fargo Bank LOC)
3.25%, 07/07/98 1,810 1,810
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Western Waste Industrial) Series
1994A / (Union Bank of California LOC)
3.70%, 07/07/98 6,000 6,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
Series A / (Texas Commerce Bank NA LOC)
3.25%, 07/07/98 10,000 10,000
California State Economic Development
Financing Authority (Mannesmann Dematic
Corp.) / (Bayerische Landesbank
Girozentrale LOC)
3.55%, 07/07/98 3,200 3,200
California State Economic Development
Financing Authority IDRB (Calco
Project) / (Wells Fargo LOC)
3.85%, 07/07/98 995 995
California State Economic Development
Financing Authority IDRB (Gaiser Tool
Project) / (Bank of America LOC)
3.55%, 07/07/98 3,270 3,270
California State Economic Development
Financing Authority IDRB (Mercury Air
Group) / (Bank Boston LOC)
3.30%, 07/02/98 5,000 5,000
California State Economic Development
Financing Authority IDRB (Serra
Microchassis Project)
3.35%, 07/01/98 1,800 1,800
64
<PAGE>
Par Value
-------- ----------
California State Economic Development
Financing Authority IDRB (Serra
Microchassis Project) Series
1997A / (Dresdner Bank AG LOC)
3.35%, 07/01/98 $ 1,900 $ 1,900
California State Economic Development
Financing Authority RB (Boyd
Furniture) / (Chemical Bank LOC)
3.50%, 07/07/98 8,000 8,000
California State Economic Development
Financing Authority RB (Bucks Center
for Aging Project) / (California State
Teachers Retirement & Canadian Imperial
Bank of Commerce LOC)
3.10%, 07/07/98 43,500 43,500
California State Economic Development
Financing Authority RB (Costa Macoroni
Project) / (Wells Fargo Bank LOC)
3.55%, 07/07/98 3,710 3,710
California State Economic Development
Financing Authority RB (Killion
Industry's Project) / (Union Bank of
California LOC)
4.10%, 07/07/98 6,500 6,500
California Statewide Community Development
Authority COP / (Union Bank of
California LOC)
4.00%, 07/07/98 2,485 2,485
California Statewide Community Development
Authority IDRB (Biocol Investments LP)
Series 1997B / (Union Bank LOC)
3.75%, 07/07/98 1,500 1,500
California Statewide Community Development
Authority M/F Housing RB (Brookhollow
Project) Series H / (Chase Bank of
Texas NA LOC)
3.65%, 07/02/98 5,000 5,000
California Statewide Community Development
Authority M/F Housing RB (Casa la Palma
Project) Series G / (Chase Bank of
Texas NA LOC)
3.65%, 07/02/98 7,000 7,000
California Statewide Community Development
Authority M/F Housing RB / (Key Bank
NA LOC)
3.35%, 07/01/98 2,450 2,450
Par Value
-------- ----------
California Statewide Community
Development Authority M/F Housing RB
(Kimberly Woods Project) Series
1995B / (FNMA Collateral Agreement)
3.35%, 07/07/98 $ 11,400 $ 11,400
California Statewide Community
Development Authority M/F Housing RB
(Plaza Club Apartments) Series
1997A / (Comerica Bank LOC)
3.75%, 07/07/98 9,000 9,000
California Statewide Community
Development Authority RB COP (Kaiser
Foundation Hospitals) / Guaranty
Agreement Kaiser Foundation Health
Plan, Inc.)
3.50%, 07/07/98 19,000 19,000
California Statewide Community
Development Authority Revenue Refunding
COP (St. Joseph Health System)
3.20%, 07/07/98 8,200 8,200
California Statewide Community
Development Corp. IDRB / (California
State Teachers Retirement System LOC)
3.55%, 07/07/98 1,000 1,000
California Statewide Community
Development Corp. IDRB Series 1998C /
(Mellon Bank LOC)
3.55%, 07/07/98 2,250 2,250
California Statewide Community
Development Corp. IDRB (13th I
Associates Project) / (Union Bank LOC)
3.70%, 07/07/98 5,185 5,185
California Statewide Community
Development Corp. IDRB (Aerostar
Properties Project) / (Union Bank of
California LOC)
3.40%, 07/07/98 4,395 4,395
California Statewide Community
Development Corp. IDRB (Agricultural
Products, Inc. Project) / (Union Bank
of California LOC)
3.75%, 07/07/98 1,400 1,400
65
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
California Statewide Community
Development Corp. IDRB (Arm Inc.
Project) Series 1994A / (Bank of
Tokyo-Mitsubishi Ltd. LOC)
3.85%, 07/07/98 $ 900 $ 900
California Statewide Community
Development Corp. IDRB (Cowden Metal
Stamping) / (Union Bank of California
LOC)
3.75%, 07/07/98 2,055 2,055
California Statewide Community
Development Corp. IDRB (Drip In
Irrigation Co.) / (Bank of America NT
& SA LOC)
3.55%, 07/07/98 3,600 3,600
California Statewide Community
Development Corp. IDRB (D.V. Industries)
Series 1994A / (Bank of Tokyo-Mitsubishi
Ltd. LOC)
3.85%, 07/07/98 1,315 1,315
California Statewide Community
Development Corp. IDRB (Flambeau
Airmold Project) / (Norwest Bank
Minnesota NA LOC)
3.55%, 07/07/98 2,700 2,700
California Statewide Community
Development Corp. IDRB (Industrial
Dynamics, Co. Project) / (Union
Bank of California LOC)
3.75%, 07/07/98 4,380 4,380
California Statewide Community
Development Corp. IDRB (Pacific
Handy Cutter Products Project) /
(Union Bank of California LOC)
3.75%, 07/07/98 900 900
California Statewide Community
Development Corp. IDRB (Packaging
Innovation Project) Series 1994A /
(Bank of Tokyo-Mitsubishi Ltd. LOC)
3.85%, 07/07/98 2,775 2,775
California Statewide Community
Development Corp. IDRB (The Diamond
Foods Project) Series 1991 /
(Union Bank of California LOC)
3.75%, 07/07/98 1,415 1,415
California Statewide Community
Development M/F Housing RB (Rio Vista
Apartment Project) Series F /
(Chase Bank of Texas NA LOC)
3.65%, 07/07/98 4,000 4,000
Par Value
-------- ----------
California Statewide Community Industrial
Development Revenue Refunding Bonds
(Golden Valley Project) Series A /
(Bank of America NT & SA LOC)
3.55%, 07/07/98 $ 2,100 $ 2,100
California Statewide M/F Housing
Authority (Sunrise of Moraga) Series
1997G / (Heller Financial Inc. LOC)
3.45%, 07/07/98 3,600 3,600
California Statewide M/F Housing
Authority RB (Woodsong Apartments)
Series 1997B / (FNMA LOC)
3.40%, 07/07/98 3,427 3,427
California Water Resource Finance
Authority / (Credit Suisse First
Boston & FSA Insurance)
3.40%, 07/01/98 26,600 26,600
Carlsbad, California M/F Housing Revenue
Refunding Bonds COP (La Costa Apartment
Project) Series 1993A / (Bank of
America LOC)
3.05%, 07/07/98 11,720 11,720
Chula Vista, California IDRB (San Diego
Gas & Electric Project) Series 1993A /
(Bank of America LOC)
3.25%, 07/07/98 11,800 11,800
Concord, California M/F Housing Mortgage
RB (Bel Air Apartments Project) Series
1986A / (Bank of America LOC)
3.30%, 07/07/98 3,000 3,000
Concord, California M/F Housing Authority
RB (California Hill Apartments) Series
1989A / (U.S. Bank of Washington LOC)
3.85%, 07/07/98 5,450 5,450
Contra Costa County, California M/F
Housing Mortgage RB (El Cerrito Project)
Series A / (Bank of America LOC)
3.30%, 07/07/98 980 980
Duarte, California Redevelopment Agency
COP (Johnson Duarte Partners Project)
Series 1984B / (Bank of America LOC)
3.15%, 07/07/98 1,600 1,600
66
<PAGE>
Par Value
-------- ----------
Duarte, California Redevelopment Agency
COP (Piken Duarte Partners Project)
Series 1984A / (Bank of America LOC)
3.15%, 07/07/98 $ 4,250 $ 4,250
Dublin, California Housing Authority M/F
Housing RB (Park Siera) Series A /
(Kredietbank N.V. LOC)
3.15%, 07/01/98 5,800 5,800
El Cajon, California M/F Housing RB
(Pinewood Apartments) / (FHLB LOC)
3.35%, 07/07/98 1,450 1,450
El Cajon, California Redevelopment Bonds
M/F Housing RB (Mollison & Madison) /
(FHLB LOC)
3.35%, 07/02/98 5,400 5,400
Encinitas, California M/F Housing Revenue
Refunding Bonds (Torrey Pines Project)
Series A / (Bank of America LOC)
3.00%, 07/07/98 8,100 8,100
Foothill, California Eastern
Transportation Corridor Agency Toll
Road RB Series 1995B / (Morgan
Guaranty Trust Co.-New York LOC)
3.00%, 07/07/98 15,600 15,600
Foothill, California Eastern
Transportation Corridor Agency Toll
Road RB Series 1995C / (Credit
Suisse LOC)
3.10%, 07/07/98 1,500 1,500
Fremont, California M/F Housing Revenue
Refunding COP (Amber Court Apartments
Project) Series 1990A / (U.S. Bank of
California LOC)
3.60%, 07/07/98 10,000 10,000
Fresno, California IDA (Keiser Corp.) /
(Comerica Bank LOC)
3.55%, 07/07/98 2,295 2,295
Hayward, California M/F Housing RB
(Timbers Apartments) Series A / (Chase
Manhattan Bank LOC)
3.10%, 07/01/98 3,700 3,700
Par Value
-------- ----------
Indio, California M/F Redevelopment Bonds
Refunding Housing Mortgages (Carreon
Apartments ) Series 1996A / (Redlands
Bank & FHLB LOC)
3.25%, 07/07/98 $ 3,950 $ 3,950
Irvine Ranch, California Improvement
Bond Act 1915 RB (Assessment
District) / (Canadian Imperial Bank of
Commerce LOC)
3.20%, 07/07/98 2,000 2,000
Irvine Ranch, California Improvement Bond
Act 1915 RB(Assessment District) /
(Canadian Imperial Bank of
Commerce LOC)
3.30%, 07/01/98 500 500
Irvine Ranch, California Improvement Bond
Act 1915 RB (Assessment District) /
(Societe Generale LOC)
3.30%, 07/01/98 9,000 9,000
Irvine Ranch, California Public
Facilities & Infrastructure Authority
Lease Revenue Capital Improvement Bonds
Series 1987 / (National Westminster
Bank PLC LOC)
3.20%, 07/07/98 1,600 1,600
Irvine Ranch, California Water District
Consolidated District Numbers 140, 240,
105, 250 RB Series 1985B / (Bank of
America LOC)
3.30%, 07/01/98 4,900 4,900
Irvine Ranch, California Water District
Consolidated Revenue Refunding Bonds
Series 1985A1 / (Landesbank Hessen LOC)
3.30%, 07/01/98 400 400
Irvine Ranch, California Water District
Consolidated Revenue Refunding Bonds
Series 1993A / (Bank of America LOC)
3.25%, 07/01/98 2,500 2,500
Irvine Ranch, California Water District
Improvement Bond Limited Obligation
No. 97-17 / (Bayerische Vereinsbank LOC)
3.30%, 07/01/98 11,900 11,900
Lancaster, California Redevelopment
Agency M/F RB (Woodcreek Garden
Apartments Project) Series 1985J /
(Bank of Tokyo-Mitsubishi Ltd. LOC)
3.70%, 07/07/98 9,800 9,800
67
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
Livermore, California COP (Reverse
Osmosis Project) / (National
Westminster Bank PLC LOC)
3.45%, 07/01/98 $ 1,900 $ 1,900
Livermore, California M/F Housing
Revenue Refunding Bonds (Arbors
Apartment Project) Series 1991A /
(U.S. Bank of Washington LOC)
3.55%, 07/07/98 9,005 9,005
Livermore, California M/F Housing
Revenue Refunding Bonds (Diablo Vista
Apartments Project) Series 1990A /
(Union Bank LOC)
3.55%, 07/07/98 6,950 6,950
Long Beach, California Housing Authority
M/F Housing RB (Channel Point
Apartments) / (FNMA Collateral
Agreement)
3.20%, 07/07/98 6,250 6,250
Los Angeles, California Community
Redevelopment Agency (Grand Promenade
Project) / (Bank of America LOC)
3.00%, 07/07/98 26,700 26,700
Los Angeles, California Community
Redevelopment Agency COP (Baldwin Hills
Public Parking Project) Series B /
(Wells Fargo Bank LOC)
3.30%, 07/07/98 20,600 20,600
Los Angeles, California Community
Redevelopment Agency COP (Broadway
Springs Center Project) Series 1987 /
(Bank of America LOC)
3.15%, 07/07/98 10,200 10,200
Los Angeles, California M/F Housing RB
(Beverly Park Apartments) / (Chemical
Bank LOC)
3.15%, 07/07/98 23,100 23,100
Los Angeles, California M/F Housing RB
(Lucas Studios Project) Series 1991D /
(Bank of America LOC)
3.40%, 07/07/98 3,000 3,000
Los Angeles County, California COP ACES
(Los Angeles County Museum of Art
Project) Series 1985A / (Bank of
America LOC)
3.00%, 07/07/98 3,300 3,300
Par Value
-------- ----------
Los Angeles County, California COP ACES
(Los Angeles County Museum of Art
Project) Series 1985B / (Bank of
America LOC)
3.00%, 07/07/98 $ 3,500 $ 3,500
Los Angeles County, California Housing
Authority M/F Mortgage RB / (Coast
Federal Bank LOC)
3.05%, 07/06/98 1,100 1,100
Los Angeles County, California Housing
Authority M/F Housing RB (Malibu Canyon
Apartments Project) Series B / (FHLB LOC)
3.05%, 07/07/98 43,600 43,600
Los Angeles County, California Housing
Authority M/F Housing RB (Park Sierra
Project) / (Citibank LOC)
3.25%, 07/07/98 30,500 30,500
Los Angeles County, California
Metropolitan Transportation Authority
Revenue Refunding Bonds Series 1993A /
(MBIA Insurance & Credit Local de
France SPA)
3.00%, 07/07/98 15,000 15,000
Los Angeles County, California M/F
Mortgage Revenue Refunding Bonds
(Casden Community Complex) Series
1991C / (FHLB LOC)
2.90%, 07/07/98 3,200 3,200
Los Angeles County, California Pension
Revenue Refunding Bond Series 1996A /
(AMBAC Insurance & Natwest Bank NA SBPA)
3.10%, 07/07/98 4,900 4,900
Los Angeles County, California Pension
Revenue Refunding Bonds Series 1996A /
(AMBAC Insurance & Bank of Nova
Scotia SPA)
3.10%, 07/07/98 1,200 1,200
Madera, California Public Financing
Municipal Golf Course Revenue
Refinancing Authority / (Union
Bank of California LOC)
3.90%, 07/07/98 1,950 1,950
68
<PAGE>
Par Value
-------- ----------
Metropolitan Water District of Southern
California Revenue Refunding Bonds
Series 1996A / (ABN-Amro Bank N.V.
SBPA & AMBAC Insurance)
3.00%, 07/07/98 $ 7,430 $ 7,430
Metropolitan Water District of Southern
California Revenue Refunding Bonds
Series 1997C / (Bank of America NT &
SA LOC)
2.90%, 07/07/98 5,000 5,000
Modesto, California High School District
& Modesto City School District COP
(Capital Facilities Project) Series
1991 / (Bank of Tokyo-Mitsubishi
Ltd. LOC)
3.15%, 07/07/98 4,775 4,775
Moorpark, California M/F Housing Revenue
Refunding Bonds (Le Club Apartments
Project) Series A / (Citibank LOC)
3.05%, 07/07/98 6,000 6,000
MSR Public Power Agency Subordinate Lien
(San Juan Project) Series 1997D /
(MBIA Insurance & NatWest LOC)
3.15%, 07/07/98 1,500 1,500
Northern California Power Agency Public
Power Revenue Refunding Bonds
(Geothermal Project 3A) / (AMBAC
Insurance & Bank of Nova Scotia LOC)
3.10%, 07/07/98 9,945 9,945
Orange County, California Apartment
Development RB Series 1985U /
(Chemical Bank LOC)
3.20%, 07/07/98 9,200 9,200
Orange County, California Apartment
Development RB Series 1985V /
(Metropolitan Life Insurance Co.
Guarantee)
3.10%, 07/07/98 15,150 15,150
Orange County, California Apartment
Development RB Series 1985V / (Wells
Fargo Bank LOC)
3.50%, 07/07/98 12,050 12,050
Orange County, California Apartment
Development Revenue Refunding Bonds
(Jess L. Frost Project) Series 1985B /
(Wells Fargo Bank LOC)
3.40%, 07/07/98 8,200 8,200
Par Value
-------- ----------
Orange County, California Apartment
Development Revenue Refunding Bonds
(The Lakes Project #185) Series 1991A /
(Citibank LOC)
3.40%, 07/07/98 $ 32,050 $ 32,050
Orange County, California COP (Florence
Crittenton Services Project)
Series 1990 / (Swiss Bank LOC)
3.20%, 07/07/98 4,300 4,300
Orange County, California M/F Housing RB
(Lantern Pines) / (Bank of America NT &
SA LOC)
3.00%, 07/07/98 3,500 3,500
Orange County, California Sanitation
District COP (Sanitation Districts
1, 2, 3, 5, 6, 7 & 11) Series 1992C /
(AMBAC Insurance & Industrial Bank of
Japan SBPA)
3.00%, 07/07/98 12,270 12,270
Orange County, California Sanitation
District COP (Sanitation Districts
1, 2, 3, 5, 6, 7 & 11) Series C /
(FGIC Insurance & FGIC SPA)
3.50%, 07/01/98 3,800 3,800
Panama Buena Vista, California Unified
School District COP (1994 Capital
Improvement Financing Project) /
(Union Bank of California LOC)
4.10%, 07/07/98 4,000 4,000
Petaluma, California Community M/F
Housing Authority (Oakmont At
Petaluma) / (U.S. Bank NA LOC)
3.55%, 07/07/98 2,550 2,550
Pinole, California Redevelopment Agency
M/F Housing RB (East Bluff Apartments
Project) / (Comerica Bank LOC)
3.60%, 07/07/98 2,559 2,559
Pleasant Hill, California M/F Housing RB
(Brookside Apartments Project) /
(FNMA LOC)
3.00%, 07/07/98 5,300 5,300
Pleasant Hill, California Redevelopment
Agency M/F Housing (Chateau III Project)
Series A / (Commerzbank AG LOC)
3.45%, 07/07/98 1,060 1,060
69
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
Riverside County, California Community
Facilities District #88-4 (Winchester
Ranch) / (Kredietbank N.V. LOC)
3.05%, 07/07/98 $ 18,100 $ 18,100
Riverside County, California Housing
Authority M/F Housing RB (Briarwood
Apartment Project) Series 1985C /
(FHLB LOC)
3.40%, 07/07/98 4,500 4,500
Riverside County, California Housing
Authority M/F Housing RB (Victoria
Springs Apartments Project) / (Bank of
America NT & SA LOC)
3.40%, 07/07/98 9,300 9,300
Riverside County, California IDA RB
(Calmold Inc Project) / (Union Bank of
California LOC)
3.45%, 07/07/98 2,800 2,800
Riverside County, California IDA RB
(Cryogenic Project) Series B /
(Rabobank Nederland LOC)
3.15%, 07/07/98 4,100 4,100
Riverside County, California M/F
Housing RB (Ambergate Apartments)
Series 1992A / (Union Bank of
California LOC)
3.25%, 07/07/98 3,000 3,000
Riverside County, California M/F
Housing RB (Tyler Village Project) /
(Chase Manhattan LOC)
3.40%, 07/07/98 7,860 7,860
Sacramento County, California COP
(Administration Center & Court House
Project) / (Union Bank of Switzerland
LOC)
3.15%, 07/07/98 18,100 18,100
Sacramento County, California Housing
Authority M/F Housing RB (Chesapeake
Commons) Series 1997A / (Bank One LOC)
3.35%, 07/07/98 20,000 20,000
Salinas, California Apartment Development
M/F Housing RB (Mariner Villa Project)
Series 1985B / (Bank of America LOC)
3.00%, 07/07/98 2,725 2,725
Par Value
-------- ----------
San Bernardino County, California COP
(Glen Helen Blockbuster Pavilion
Project) Series 1994C / (Bank of
Tokyo-Mitsubishi Bank LOC)
3.90%, 07/07/98 $ 6,845 $ 6,845
San Bernardino County, California
Housing Authority M/F Housing RB
(Montclair Heritage) Series 1993A /
(FHLB LOC)
3.30%, 07/07/98 4,620 4,620
San Bernardino County, California
Housing Authority M/F Housing RB
(Rialto Heritage) Series 1993A /
(FHLB LOC)
3.30%, 07/02/98 4,330 4,330
San Bernardino County, California M/F
Housing RB (Western Properties Project
IV) Series 1985 / (Bank of America LOC)
3.00%, 07/07/98 4,100 4,100
San Diego, California Housing Authority
M/F Housing RB (La Cima) Series 1985K /
(Citibank LOC)
3.05%, 07/07/98 4,005 4,005
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(Fillmore Center Project) Series A1 /
(Citibank LOC)
3.40%, 07/07/98 26,500 26,500
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(Fillmore Center Project) Series A2 /
(Citibank LOC)
3.45%, 07/07/98 3,750 3,750
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(Rincon Center Apartments) Series
1985B / (Citibank LOC)
3.20%, 07/07/98 8,805 8,805
San Francisco, California Housing
Authority M/F Housing RB (Magnolia
Plaza) Series A / (Wells Fargo Bank LOC)
3.40%, 07/07/98 4,500 4,500
70
<PAGE>
Par Value
-------- ----------
San Jose, California M/F Housing RB
(Carlton Plaza) Series A /
(Commerzbank AG LOC)
3.50%, 07/02/98 $ 5,000 $ 5,000
San Jose, California M/F Housing Revenue
Authority (Almaden Lake Apartments)
Series 1997A / (Bank of America LOC)
3.40%, 07/07/98 6,500 6,500
San Jose, California M/F Housing RB
(Seinna at Renaissance Project)
Series 1996A / (Key Bank NA LOC)
3.40%, 07/07/98 12,500 12,500
San Jose, California Redevelopment Agency
RB (Merged Area Redevelopment Project) /
(Morgan Guaranty Trust Co.-New York LOC)
3.00%, 07/01/98 5,000 5,000
San Jose, California Redevelopment Agency
RB (Merged Area Redevelopment Project)
Series 1996A / (Morgan Guaranty
Trust Co.-New York LOC)
3.20%, 07/07/98 10,600 10,600
San Jose, California Redevelopment M/F
Housing (101 San Fernando Apartments)
Series A / (Bank One LOC)
3.30%, 07/01/98 28,000 28,000
San Leandro, California M/F Housing RB
(Carlton Plaza Project) Series A /
(Commerzbank AG LOC)
3.45%, 07/02/98 1,900 1,900
San Lorenzo, California Unified School
District COP (Capital Improvement
Financing Project) / (Banque Nationale
de Paris LOC)
3.60%, 07/07/98 17,000 17,000
Santa Ana, California Unified School
District COP (Land Acquisition
Project) / (Banque Nationale de
Paris LOC)
3.10%, 07/07/98 4,400 4,400
Santa Clara County, California Hospital
Facility Authority RB (El Camino
Hospital District-Valley Medical Center
Project) Series 1985B / (Bayerische
Vereinsbank LOC)
3.00%, 07/07/98 7,800 7,800
Par Value
-------- ----------
Santa Clara County, California M/F
Housing Revenue Refunding Bonds
(Brairwood Apartments) Series 1996B /
(FNMA LOC)
3.20%, 07/07/98 $ 7,800 $ 7,800
Santa Clara County, California M/F
Housing Revenue Refunding Bonds (Grove
Garden Apartments) Series 1997A /
(FNMA LOC)
3.20%, 07/07/98 14,000 14,000
Santa Cruz County, California Housing
Authority M/F Housing RB (Paloma Del
Mar Apartments Project) Series 1992A /
(Bank of Tokyo-Mitsubishi Ltd. LOC)
4.15%, 07/07/98 7,700 7,700
Santa Fe Springs, California IDA RB /
(Wells Fargo Bank LOC)
3.85%, 07/30/98 4,000 4,000
Santa Rosa, California M/F Housing RB
(Quail Run Apartments) Series 1997A /
(U.S. Bank of Washington LOC)
3.55%, 07/07/98 4,850 4,850
Southern California Pubic Power Authority
RB (Southern Transmission Project)
Series 1991 / (AMBAC Insurance &
Barclays LOC)
3.10%, 07/07/98 6,100 6,100
Southern California Pubic Power Authority
Revenue Refunding Bonds (Palos Verdes
Project) Series 1996B / (AMBAC Insurance
& Morgan Guaranty SPA)
3.10%, 07/07/98 1,800 1,800
Southern California Pubic Power Authority
Revenue Refunding Bonds Series C /
(AMBAC Insurance/Morgan Guaranty SPA)
3.10%, 07/07/98 5,400 5,400
Turlock, California Irrigation District
COP (Transmission Project, Municipal
Utilities - Water & Sewer) Series
1996A / (Societe Generale LOC)
3.20%, 07/07/98 2,100 2,100
Union City, California M/F Housing RB
(Greenhaven Apartments) Series 1997A /
(FNMA LOC)
3.20%, 07/07/98 10,975 10,975
71
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
Vallecitos, California Water District
(Twin Oaks Reservoir Project) / (Credit
Local de France LOC)
3.00%, 07/07/98 $ 2,700 $ 2,700
Victor Valley, California Community
College District COP / (Multiple Credit
Enhancements)
3.10%, 07/07/98 45,450 45,450
West Sacramento, California Special
Class Tax Community Facilities
District #6 / (Union Bank of California
LOC)
3.20%, 07/07/98 4,250 4,250
West Sacramento, California Special
Tax RB / (Wells Fargo Bank LOC)
3.20%, 07/07/98 3,500 3,500
Westminster, California Redevelopment
Agency Tax Allocation Community
Redevelopment Project / (AMBAC Insurance
& Landesbank Hessan SPA)
3.35%, 07/07/98 8,250 8,250
Windsor, California M/F (Oakmont At
Windsor) / (Banque Paribas LOC)
3.75%, 07/01/98 700 700
----------
1,910,681
----------
PUERTO RICO -- 0.0%
Puerto Rico Commonwealth Highway &
Transportation Authority Highway
Series 1998A / (AMBAC Insurance &
Bank of Nova Scotia SPA)
3.00%, 07/07/98 1,500 1,500
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $1,912,181) 1,912,181
----------
TAX-EXEMPT COMMERCIAL PAPER -- 25.7% (b)
Anaheim, California Electric Revenue
TECP / (Bank of America & Morgan
Guaranty Trust Co.-New York LOC)
3.40%, 07/31/98 8,500 8,500
California Pollution Control Financing
Authority RB TECP (California Edison)
Series 1996D / (Union Bank of
Switzerland LOC)
3.55%, 08/11/98 7,000 7,000
3.65%, 08/12/98 17,000 17,000
Par Value
-------- ----------
California Pollution Control Financing
Authority RB TECP (Southern California
Edison) Series 1985A
3.55%, 08/19/98 $ 5,400 $ 5,400
3.50%, 08/24/98 12,000 12,000
California Pollution Control Financing
Authority RB TECP (Southern California
Edison) Series 1985B
3.55%, 08/19/98 2,100 2,100
California Pollution Control Financing
Authority Solid Waste Disposal RB TECP
(Thermal Energy Development) Series
1988A / (National Westminster Bank
PLC LOC)
3.35%, 07/08/98 24,700 24,700
California State GO TECP
3.85%, 07/15/98 40,000 40,000
California State GO TECP / (Multiple
Credit Enhancements)
3.60%, 07/07/98 10,000 10,000
3.85%, 07/17/98 47,400 47,400
3.50%, 07/23/98 33,900 33,900
3.50%, 08/10/98 17,500 17,500
East Bay, California Municipal Utility
District TECP / (Deutsche Bank LOC)
3.60%, 07/09/98 12,500 12,500
East Bay, California Municipal Utility
District TECP / (Westdeutsche
Landesbank LOC)
3.65%, 08/12/98 16,700 16,700
3.65%, 09/01/98 34,350 34,350
Long Beach, California Harbor TECP
Series 1994A / (Multiple Credit
Enhancements)
3.55%, 07/07/98 4,500 4,500
3.65%, 09/01/98 36,350 36,350
Los Angeles, California Waste Water System
TECP / (Morgan Guaranty Trust Co.-
New York LOC)
3.50%, 07/06/98 34,500 34,500
Los Angeles, California Waste Water System
TECP / (Union Bank of Switzerland LOC)
3.60%, 10/07/98 11,900 11,900
72
<PAGE>
Par Value
-------- ----------
Los Angeles County, California Capital
Asset Leasing Corp. Lease Revenue
TECP / (Multiple Credit Enhancements)
3.50%, 07/23/98 $ 5,000 $ 5,000
3.55%, 07/31/98 10,250 10,250
Metropolitan Water District of Southern
California TECP
3.35%, 07/29/98 10,000 10,000
Orange County, California Local
Transportation Authority TECP / (Union
Bank of Switzerland LOC)
3.65%, 08/12/98 51,000 51,000
3.60%, 08/25/98 4,600 4,600
Riverside County, California TECP (Teeter
Obligation) Series B
3.50%, 08/24/98 28,537 28,537
Sacramento, California Municipal Utility
District Electric RB TECP / (Bayerische
Landesbank Girozentrale LOC)
3.35%, 08/03/98 55,237 55,237
San Diego County, California TECP
(Teeter Obligation) Series B
3.35%, 07/31/98 13,500 13,500
San Francisco, California City & County
International Airport TECP Series A /
(Bayerische Landesbank Girozentrale LOC)
3.85%, 07/07/98 10,365 10,365
3.50%, 08/25/98 5,170 5,170
San Joaquin County Transportation
Authority RB TECP / (Westdeutsche
Landesbank LOC)
3.50%, 07/06/98 6,000 6,000
State of California GO TECP / (Multiple
Credit Enhancements)
3.35%, 07/31/98 8,000 8,000
3.40%, 07/31/98 15,475 15,475
3.40%, 08/03/98 112,900 112,900
3.45%, 08/03/98 14,900 14,900
3.50%, 08/19/98 20,000 20,000
3.45%, 08/21/98 9,600 9,600
Par Value
-------- ----------
University of California Board of Regents
TECP Series 1996A / (Multiple Credit
Enhancements)
3.25%, 07/08/98 $ 24,000 $ 24,000
3.65%, 09/01/98 35,555 35,555
3.45%, 10/01/98 47,000 47,000
----------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $863,389) 863,389
----------
TAX AND REVENUE ANTICIPATION NOTES -- 11.9% (b)
CALIFORNIA -- 10.7%
Alameda County, California TRAN
3.50%, 07/22/98 5,000 5,002
3.76%, 07/22/98 20,000 20,007
3.90%, 07/23/98 25,000 25,009
Alameda County, California Transportation
Authority TRAN (d)
3.60%, 07/07/99 15,000 15,130
California HFA S/F TRAN / (FSA Insurance)
3.60%, 04/01/99 13,500 13,500
California School Cash Reserve Program
Authority Pooled TRAN / (AMBAC
Insurance)
3.76%, 07/02/98 8,100 8,100
3.77%, 07/02/98 300 300
3.81%, 07/02/98 20,000 20,000
3.85%, 07/02/98 40,000 40,001
3.86%, 07/02/98 11,400 11,400
3.74%, 07/02/99 (d) 75,000 75,549
Contra Costa County, California Board of
Education RB TRANS
3.60%, 06/30/99 (d) 28,358 29,013
Contra Costa County, California TRAN
Series A
3.77%, 07/01/98 2,425 2,425
Desert Sands, California Unified School
District TRAN
3.80%, 07/07/98 9,200 9,200
Hunting Beach, California TRAN
3.83%, 09/30/98 18,325 18,354
Los Angeles County, California
TRAN (d)
3.67%, 06/30/99 30,000 30,239
Orange County, California Fire Authority
TRAN Series 1997-1998
3.90%, 09/17/98 4,500 4,503
73
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
-------- ----------
Sacramento County, California TRAN
1997-1998
3.84%, 09/30/98 $ 2,500 $ 2,504
San Diego County, California TRAN
Series 1997-1998 / (Multiple Credit
Enhancements)
4.49%, 09/30/98 8,500 8,517
San Francisco, California Unified School
District TRAN
3.65%, 10/30/98 4,000 4,010
San Joaquin County, California
Transportation TRAN
3.40%, 01/15/99 7,000 7,038
Santa Cruz County, California Office of
Education TRAN
3.54%, 07/30/98 2,000 2,001
Sutter County, California Office of
Education TRAN
3.83%, 10/29/98 7,120 7,135
----------
358,937
----------
PUERTO RICO -- 1.2%
Puerto Rico Commonwealth TRAN Series 1997A
3.70%, 07/30/98 5,000 5,003
3.75%, 07/30/98 35,000 35,020
----------
40,023
----------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $398,960) 398,960
----------
VARIABLE RATE TENDER OPTION BONDS -- 3.8% (a) (c)
California State GO TOB / (MBIA Insurance
& Merrill Lynch Capital Services
Liquidity)
3.60%, 07/07/98 40,105 40,105
California State GO TOBP (PT-153) /
(Banco Santander SA & FSA Insurance)
3.60%, 07/07/98 12,840 12,840
Central Coast, California Water Authority
TOBP (PA-326) / (AMBAC Insurance &
Merrill Lynch Capital Services
Liquidity)
3.58%, 07/07/98 2,250 2,250
Par Value
-------- ----------
Contra Costa County, California Public
Facilities TOB (Merrithew Memorial
Hospital) / (Banco Santander SA LOC)
3.63%, 07/07/98 $ 13,680 $ 13,680
Los Angeles, California Department Water
& Power Electric Plant Revenue
Refunding Bonds Series 1994 TOBP
(BTP-68) / (Automatic Data Processing,
Inc. Tender Opion)
3.65%, 07/07/98 5,195 5,195
Los Angeles County, California
Metropolitan Transit Authority TOB /
(CoreStates Bank NA LOC)
3.60%, 07/07/98 23,830 23,830
Los Angeles, California TOB (Dwap Electric
Power Plant) Series 1 / (Multiple
Credit Enhancements)
3.60%, 07/07/98 19,995 19,995
Metropolitan Water District of Southern
California Revenue Refunding Bonds TOB
Series 1996A / (Morgan Guaranty
Trust Co. - New York LOC)
3.55%, 07/07/98 3,000 3,000
San Francisco, California Public
Utilities Water TOB / (Bayerische
Hypotheken Und Wechsel Bank LOC)
3.58%, 07/02/98 7,265 7,265
----------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $128,160) 128,160
----------
MANDATORY PUT BONDS -- 1.9% (b)
California HFA RB Put Bond Series C /
(FGIC Insurance)
3.55%, 02/01/99 5,430 5,430
California HFA RB Put Bond Series E
3.55%, 03/12/99 50,000 49,982
California Pollution Control Financing
Authority RB Put Bond
3.65%, 05/15/99 7,515 7,515
California Statewide Community Development
Authority M/F Housing RB Put Bond
(Octillo Apartments) / (FGIC GIC)
3.90%, 06/01/99 1,000 1,000
----------
TOTAL MANDATORY PUT BONDS
(Cost $63,927) 63,927
----------
74
<PAGE>
Par Value
-------- ----------
FIXED RATE TENDER OPTION BONDS -- 1.1% (b) (e)
California State Department Water
Resources RB TOBP (BTP-141) (Central
Valley Project) Series J3 / (Bankers
Trust Tender Option)
3.18%, 06/10/99 $ 5,155 $ 5,155
Los Angeles County, California
Transportation Commission Sales Tax RB
TOBP (BTP-146) / (Bankers Trust Tender
Option & Escrowed to Maturity with
Government Securities)
3.60%, 06/10/99 23,078 23,078
Metropolitan Water District Southern
California GO Revenue Refunding Bonds
TOBP (BTP-115) Series 1993A-1 & 1993A-2 /
(Bankers Trust Tender Option)
3.60%, 06/10/99 10,145 10,145
----------
TOTAL FIXED RATE TENDER OPTION
BONDS
(Cost $38,378) 38,378
----------
REVENUE BONDS -- 1.1% (b)
CALIFORNIA -- 1.0%
California Health Facilities Financing
Authority Pre-Refunding RB / (AMBAC
Insurance/Escrowed to maturity with
Government Securities)
3.50%, 10/01/98 4,000 4,120
California State Public Works RB (Various
California State University Projects)
2.62%, 09/01/98 2,000 2,007
Los Angeles, California Airport RB (LAX)
Series A
3.69%, 05/15/99 10,000 10,026
Metropolitan Water District of Southern
California RB Series 1997A
3.78%, 07/01/98 7,440 7,440
Modesto, California Irrigation District
RB Series A / (MBIA Insurance)
3.58%, 10/01/98 4,305 4,310
Orange County, California Apartment RB /
(MBIA Insurance)
3.88%, 07/01/98 1,500 1,500
Sacramento, California Municipal Utility
District Electric RB Series 1988V /
(Escrowed to Maturity with U.S.
Treasuries)
3.75%, 08/15/98 2,000 2,050
Par Value
-------- ----------
Sacramento, California Municipal Utility
District Electric RB Series V /
(Escrowed to Maturity with Government
Securities)
3.80%, 08/15/98 $ 2,000 $ 2,009
Santa Rosa, California Waste Water
Project A / (FGIC Insurance)
3.54%, 09/01/98 1,065 1,065
----------
34,527
----------
PUERTO RICO -- 0.1%
Puerto Rico Commonwealth Aqueduct &
Sewer RB / (Escrowed to Maturity with
U.S. Treasuries)
3.50%, 07/01/98 2,190 2,234
Puerto Rico Commonwealth Highway Authority
RB Series P / (Escrowed to Maturity
with Government Securities)
3.40%, 07/01/98 550 561
----------
2,795
----------
TOTAL REVENUE BONDS
(Cost $37,322) 37,322
----------
GENERAL OBLIGATIONS -- 1.1% (b)
California State GO Series 1997
3.76%, 10/01/98 36,570 36,636
----------
TOTAL GENERAL OBLIGATIONS
(Cost $36,636) 36,636
----------
CERTIFICATES OF PARTICIPATION -- 0.1% (b)
Elsinore Valley, California Municipal
Water District COP / (MBIA Insurance)
4.24%, 08/01/98 4,000 4,093
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $4,093) 4,093
----------
TOTAL INVESTMENTS -- 103.5%
(Cost $3,483,046) 3,483,046
----------
OTHER ASSETS AND LIABILITIES -- (3.5%)
Other Assets 40,979
Liabilities (160,260)
----------
(119,281)
----------
NET ASSETS -- 100.0% $3,363,765
==========
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
75
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------- --------
VARIABLE RATE OBLIGATIONS -- 48.9% (a)
Albany, New York IDA Adjustable Rate RB
(Newkirk Products, Inc.) Series 1995A /
(Fleet Bank of New York LOC)
3.55%, 07/07/98 $ 1,000 $ 1,000
Babylon, New York IDA RB (General
Microwave) / (National Westminster Bank
PLC LOC)
3.45%, 07/07/98 1,100 1,100
Babylon, New York IDA Resource Recovery
(Ogden Martin Project) Series 1998 /
(FSA Insurance & Chase SBPA)
3.25%, 07/07/98 4,000 4,000
Cortland County, New York IDA RB (General
Signal Corp. Project) Series 1983 /
(Wachovia Bank LOC)
3.45%, 07/07/98 1,750 1,750
Dutchess County, New York IDA (Trinity
Pawling School Corp.) / (Allied Irish
Bank PLC LOC)
3.60%, 07/07/98 5,800 5,800
Erie County, New York IDA (Episcopal Life
Care Facilities) / (Banque Paribas LOC)
3.35%, 07/07/98 5,000 5,000
Erie County, New York Water Authority
Series B / (AMBAC Insurance & National
Australia Bank SPA)
3.25%, 07/07/98 3,500 3,500
Franklin County, New York IDA RB
(Kes Chateaugay LP Project) Series A /
(Bank of Tokyo-Mitsubishi Ltd. LOC)
4.05%, 07/07/98 14,300 14,300
Monroe County, New York IDA RB (ENBI Corp.
Lease Rent Project) Series 1988 /
(ABN-Amro Bank N.V. LOC)
3.35%, 07/07/98 2,000 2,000
New York City, New York GO Series 1993A9 /
(Morgan Guaranty Trust Co.-New York LOC)
3.45%, 07/07/98 1,000 1,000
New York City, New York Health & Hospitals
Health System RB Series 1997A / (Morgan
Guaranty Trust Co.-New York LOC)
3.20%, 07/07/98 9,100 9,100
Par Value
------- --------
New York City, New York Health & Hospitals
Health System RB Series 1997C /
(Toronto-Dominion Bank LOC)
3.30%, 07/07/98 $ 5,900 $ 5,900
New York City, New York Housing
Development Corp. Series A2 /
(Bayerische Hypotheken Und Wechsel
Bank LOC)
3.50%, 07/07/98 14,000 14,000
New York City, New York Housing Development
Corp. M/F Housing Mortgage RB (Columbus
Gardens Project) Series 1993A /
(Citibank LOC)
3.35%, 07/07/98 3,165 3,165
New York City, New York Housing
Development Corp. M/F Housing Mortgage
RB (Parkgate Tower Project) /
(Citibank LOC)
3.20%, 07/07/98 8,770 8,770
New York City, New York IDA RB (Allway
Tools Inc. Project) / (Citibank LOC)
3.55%, 07/07/98 1,970 1,970
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997A / (Bankers Trust Co. LOC)
3.35%, 07/07/98 19,100 19,100
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997C / (Bankers Trust Co. LOC)
3.60%, 07/07/98 5,700 5,700
New York City, New York M/F Rental Housing
RB (Tribeca Tower Project) Series
1997A / (FNMA Collateral Agreement)
3.25%, 07/07/98 18,600 18,600
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series 1992C / (FGIC Insurance &
FGIC SPA)
4.00%, 07/01/98 600 600
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series C / (FGIC Insurance & FGIC SPA)
4.00%, 07/06/98 4,550 4,550
76
<PAGE>
Par Value
------- --------
New York State Dormitory Authority RB
(New York Foundling Charitable) /
(Allied Irish Bank PLC LOC)
3.35%, 07/07/98 $ 1,000 $ 1,000
New York State Dormitory Authority RB
(New York Public Library) Series 1992B /
(Canadian Imperial Bank of Commerce LOC)
3.20%, 07/07/98 1,500 1,500
New York State Economic Development
Authority / (MBIA Insurance & Credit
Suisse SPA)
3.20%, 07/07/98 4,200 4,200
New York State Energy Research &
Development Authority Electric Facilities
Adjustable Rate RB (Long Island Lighting
Co. Project) Series 1993A / (Toronto-
Dominion Bank LOC)
3.60%, 07/07/98 3,000 3,000
New York State Energy Research &
Development Authority Electric Facilities
Adjustable Rate RB (Long Island Lighting
Co. Project) Series 1993B / (Toronto
Dominion LOC)
3.60%, 07/07/98 6,000 6,000
New York State Energy Research &
Development Authority Electric Facilities
Adjustable Rate RB (Long Island
Lighting Co. Project) Series 1994A /
(Union Bank of Switzerland LOC)
3.55%, 07/07/98 1,000 1,000
New York State Energy Research &
Development Authority Pollution Control
RB (Central Hudson Gas & Electric)
Series 1985A / (JP Morgan, Delaware LOC)
3.40%, 07/07/98 10,000 10,000
New York State Energy Research &
Development Authority Pollution Control
Revenue Refunding Bonds (Orange &
Rockland Utilities, Inc. Project)
Series 1994A / (FGIC Insurance & Societe
Generale LOC)
3.25%, 07/07/98 2,500 2,500
Par Value
------- --------
New York State HFA Housing RB (East 84th
Street Project) Series 1995A / (Fleet
Bank of New York LOC)
3.30%, 07/07/98 $ 2,600 $ 2,600
New York State HFA Housing RB (Mount
Sinai School Of Medicine) Series 1984A /
(Chase Bank LOC)
3.40%, 07/07/98 3,600 3,600
New York State HFA Housing RB (Normandie
Court II) Series 1987A / (Fleet Bank LOC)
3.20%, 07/07/98 14,400 14,400
New York State HFA Housing RB (Tribeca
Landing Project) Series A / (Fleet Bank
of New York LOC)
3.25%, 07/07/98 14,000 14,000
New York State HFA M/F Housing RB (Tribeca
Park Housing Project) Series 1997A /
(Bayerische Hypotheneken Und Wechsel
Bank LOC)
3.30%, 07/07/98 12,300 12,300
New York State HFA Housing RB (Union
Square South Housing) / (Bayerische
Hypotheken Und Wechsel Bank LOC)
3.30%, 07/07/98 18,000 18,000
New York State HFA Housing RB (West
50th Street Project) Series 1997A /
(Fleet Bank of New York LOC)
3.30%, 07/07/98 14,800 14,800
New York State Local Government Assistance
Corp. RB Series 1993A / (Union Bank of
Switzerland LOC & Credit Suisse LOC)
3.20%, 07/07/98 1,795 1,795
New York State Local Government Assistance
Corp. RB Series 1994B / (Kredictbank LOC)
3.15%, 07/07/98 1,685 1,685
New York State Local Government Assistance
Corp. RB Series 1995B / (Bank of Nova
Scotia LOC)
3.15%, 07/07/98 6,800 6,800
New York State Local Government Assistance
Corp. RB Series 1995F / (Toronto
Dominion LOC)
3.15%, 07/07/98 2,800 2,800
77
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
New York State Medical Care Facilities
Financing Agency Revenue Pooled
Equipment Loan Program Series 1 /
(Chase Bank LOC)
3.10%, 07/07/98 $ 2,200 $ 2,200
Niagara Falls, New York Bridge Commission
RB Series 1993A / (FGIC Insurance &
Credit Local de France LOC)
3.25%, 07/07/98 1,400 1,400
Schenectady, New York IDA RB (Fortitech
Holding Corp. Project) Series A /
(Fleet Bank of New York LOC)
3.55%, 07/07/98 1,300 1,300
St. Lawrence County, New York IDA
Environmental Improvement RB (Reynolds
Metals Project) / (Royal Bank of
Canada LOC)
3.50%, 07/07/98 4,000 4,000
Suffolk County, New York IDA (Episcopal
Health Services) Series 1998A / (Banque
Paribas LOC)
3.40%, 07/07/98 5,000 5,000
Suffolk County, New York IDA Adjustable
Rate IDRB (Nissequogue Cogen) Series
1994 / (Toronto Dominion LOC)
3.40%, 07/07/98 4,600 4,600
Town of Islip, New York Industrial Revenue
Magnum Realty (Creative Bath Products) /
(Chase Bank LOC)
3.25%, 07/07/98 2,650 2,650
Triborough Bridge & Tunnel Authority,
New York Special Obligation Bridge RB
Series 1994 / (FGIC Insurance &
FGIC SPA)
3.20%, 07/07/98 800 800
Yonkers, New York IDA Civic Facilities RB
(Consumers Union Facility Project)
Series 1989 / (Credit Local de
France LOC)
3.45%, 07/07/98 1,500 1,500
Yonkers, New York IDA Civic Facilities RB
(Consumers Union Facility Project)
Series 1991 / (Credit Local de
France LOC)
3.45%, 07/07/98 700 700
Par Value
------- --------
Yonkers, New York IDA Civic Facilities RB
(Consumers Union Facility Project)
Series 1994 / (AMBAC Insurance & Credit
Local de France SBPA)
3.45%, 07/07/98 $ 1,900 $ 1,900
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $278,935) 278,935
--------
TAX-EXEMPT COMMERCIAL PAPER -- 21.5% (b)
Long Island, New York Power Authority
Electric Systems TECP / (Bayerische
Landbank Girozole & Westdeutsche
Landesbank LOC)
3.30%, 07/31/98 8,000 8,000
Long Island, New York Power Authority
Electric Systems TECP Series 3 /
(Bayerische Landesbank Girozentrale &
Westdeutsche Landesbank LOC)
3.75%, 08/19/98 14,000 14,000
New York City, New York GO Bonds TECP
Series 1994H3 / (FSA LOC & State Street
SPA)
3.45%, 07/16/98 1,500 1,500
New York City, New York Municipal
Acceptance Corp. TECP Series 1997K3 /
(Landesbank Hessen-Thuringen
Girozentrale LOC)
3.65%, 08/19/98 3,800 3,800
3.65%, 08/26/98 18,300 18,300
New York City, New York Municipal Water
Finance Authority TECP / (Credit Suisse
First Boston LOC)
3.60%, 07/15/98 4,000 4,000
New York City, New York Municipal Water
Financing Authority TECP Series 3 /
(Bank of Nova Scotia LOC)
3.60%, 07/15/98 2,000 2,000
New York State, Enviromental Quality 86
GO TECP Series 1997A / (Bayerische
Landesbank & Landesbank Hessen-Thurigen
Giro LOC)
3.60%, 07/15/98 5,000 5,000
78
<PAGE>
Par Value
------- --------
New York State Environmental Quality 86
Variable Rate GO TECP Series 1997A /
(Bayerische Landesbank & Landesbank
Hessen-Thurigen Girozentrale LOC)
3.75%, 07/09/98 $ 7,400 $ 7,400
New York State Environmental TECP
3.55%, 07/07/98 12,500 12,500
New York State Power Authority TECP /
(Multiple Credit Enhancements)
3.75%, 07/07/98 10,900 10,900
New York State Power Authority TECP
Series 2 / (Multiple Credit
Enhancements LOC)
3.65%, 08/19/98 17,300 17,300
State of New York Short Term Series GO
BAN TECP / (Westdeutsche Landesbank LOC)
3.70%, 07/08/98 7,000 7,000
3.75%, 07/08/98 2,000 2,000
3.75%, 08/07/98 2,200 2,200
New York State Short Term Series TECP /
(Westdeutsche Landesbank LOC)
3.55%, 07/09/98 6,700 6,700
--------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $122,600) 122,600
--------
VARIABLE RATE TENDER OPTION BONDS -- 10.6% (a) (c)
Metropolitain Transportation Authority,
New York TOBP (PT-177) / (AMBAC Insurance
& Bayerische Hypotheken Und Wechsel
Bank LOC)
3.68%, 07/07/98 9,265 9,265
New York City, New York GO TOBP
(CoreStates Merlot Program) Series
1997C / (CoreStates Bank NA LOC &
MBIA Insurance)
3.65%, 07/07/98 15,000 15,000
New York City, New York Municipal
Acceptance Corp. TOB / (Merrill Lynch
Capital Services Liquidity &
Merrill Lynch & Co. Guarantee)
3.68%, 07/07/98 10,700 10,700
Par Value
------- --------
New York City, New York Municipal Water
Financing Authority Water & Sewer
System Revenue TOB / (Merrill Lynch
Capital Services Liquidity &
MBIA Insurance)
3.70%, 07/07/98 $ 4,995 $ 4,995
New York City, New York TOBP (BTP-234) /
(Bankers Trust Co. Liquidity)
3.60%, 07/07/98 9,590 9,590
New York State Dormitory Authority TOB /
(MBIA Insurance / Merrill Lynch Capital
Services Liquidity)
3.68%, 07/07/98 2,820 2,820
New York State Medical Care Facility TOB
(PT-154) / (FSA Insurance & Banco
Santander Liquidity)
3.68%, 07/02/98 3,175 3,175
New York State Metropolitian
Transportation Authority TOBP (PT-356) /
(MBIA Insurance / Merrill Lynch Capital
Services Liquidity)
3.68%, 07/07/98 5,000 5,000
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $60,545) 60,545
--------
BOND ANTICIPATION NOTES -- 9.2% (b)
Broome County, New York BAN
3.60%, 04/14/99 15,988 16,037
Campbell-Savona, New York Consolidated
BAN Series 1997-98
3.95%, 09/03/98 9,000 9,005
Islip, New York BAN Series 1997-1998
3.85%, 07/24/98 5,350 5,351
Niagara-Wheatfield, New York Central
School District BAN
3.80%, 12/30/98 5,000 5,011
Oswego County, New York BAN
3.82%, 05/06/99 5,000 5,007
Queensbury, New York Unified School
District (Warren County) BAN
3.85%, 08/07/98 8,000 8,003
Union-Endicott County, New York School
District BAN
3.80%, 12/29/98 4,300 4,309
--------
TOTAL BOND ANTICIPATION NOTES
(Cost $52,723) 52,723
--------
79
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
TAX ANTICIPATION NOTES -- 6.2% (b)
Nassau County, New York TAN Series B
3.78%, 08/31/98 $ 7,000 $ 7,005
Suffolk County, New York TAN Series
1998I / (Multiple Credit Enhancements)
3.64%, 08/13/98 18,000 18,013
3.65%, 08/13/98 10,000 10,007
--------
TOTAL TAX ANTICIPATION NOTES
(Cost $35,025) 35,025
--------
REVENUE BONDS -- 1.4% (b)
New York City, New York Municipal
Assistance Corp RB Series J
3.70%, 07/01/99 7,000 7,122
New York State Thruway Highway Authority
RB (Construction & Reconstruction)
Series A / (FSA Insurance)
3.71%, 03/01/99 500 507
--------
TOTAL REVENUE BONDS
(Cost $7,629) 7,629
--------
GENERAL OBLIGATIONS -- 1.2% (b)
Long Beach County, New York School
District GO / (FGIC Insurance)
3.84%, 11/15/98 430 431
Nassau County, New York General
Improvement GO Series 1995Q /
(FGIC Insurance)
3.37%, 08/01/98 3,990 3,994
Rush-Hennrietta New York Central School
District GO / (FSA Insurance)
3.67%, 06/15/99 650 654
Spencerport County, New York School
District GO / (FSA Insurance)
3.84%, 11/15/98 545 547
Suffolk County, New York Public Improvement
GO Series 1996D / (FGIC Insurance)
3.57%, 08/01/98 1,425 1,426
--------
TOTAL GENERAL OBLIGATIONS
(Cost $7,052) 7,052
--------
Value
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $564,509) $564,509
--------
OTHER ASSETS AND LIABILITIES -- 1.0%
Other Assets 7,813
Liabilities (1,998)
--------
5,815
--------
NET ASSETS -- 100.0% $570,324
========
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
80
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------ -------
VARIABLE RATE OBLIGATIONS -- 38.7% (a)
Essex County, New Jersey Public Improvement
Authority RB (County Asset Sale Project)
Series 1995 / (Morgan Guaranty Trust SPA
& AMBAC Insurance)
3.45%, 07/07/98 $2,450 $ 2,450
New Jersey Economic Development Authority
(Natural Gas Co. Project) / (AMBAC
Insurance)
3.50%, 07/07/98 600 600
New Jersey Economic Development Authority
(St. James Prep & Social Service Project)
Series 1998 / (First Union National Bank
of North Carolina LOC)
3.40%, 07/07/98 590 590
New Jersey Economic Development Authority
(Wechsler Coffee Corp. Project) Series
1998 / (First Union National Bank of
North Carolina LOC)
3.50%, 07/07/98 1,580 1,580
New Jersey Economic Development Authority
Natural Gas Facilities RB (New Jersey
Natural Gas Company) Series 1998C /
(AMBAC Insurance & Bank of New York SPA)
3.35%, 07/07/98 1,000 1,000
New Jersey Economic Development Authority
RB (Hoffman Laroche Inc. Project)
Series 1993 / (Bayerische Landesbank
Girozentrale LOC)
4.00%, 07/07/98 400 400
New Jersey Economic Development Authority RB
(Job Haines Home Project) / (PNC Bank LOC)
3.10%, 07/07/98 2,700 2,700
New Jersey Economic Development Authority RB
(Public Service Electric & Gas Company
Project) Series 1995A / (Swiss Bank LOC &
MBIA Insurance)
3.15%, 07/07/98 400 400
New Jersey Economic Development Authority
Thermal Energy Facilities RB (Thermal
Energy Ltd. Partnership I Project)
Series 1997 / (FNB of Chicago LOC)
3.45%, 07/07/98 2,850 2,850
Par Value
------ -------
New Jersey Health Care Facilities Authority
(Carrier Foundation) Series C / (Banque
Paribas & FGIC Insurance)
3.65%, 07/07/98 $1,340 $ 1,340
New Jersey Health Care Facility Financing
Authority Revenue Refunding Bonds
(Christian Health Project) Series 1998B /
(Valley National Bank LOC)
3.25%, 07/07/98 2,900 2,900
New Jersey State Economic Development
Authority Revenue Refunding Bonds
(Stolthaven Project) Series 1998A /
(Citibank LOC)
4.00%, 07/01/98 2,000 2,000
New Jersey Turnpike Authority RB Series
1991D / (Societe Generale LOC &
FGIC Insurance)
3.30%, 07/07/98 1,575 1,575
Salem County, New Jersey Pollution Control
Financing Authority RB (Public Service
Electric & Gas Project) Series 1997 /
(MBIA Insurance & Swiss Bank SPA)
3.30%, 07/07/98 2,000 2,000
Union City, New Jersey Industrial Pollution
Control Financing Authority RB /
(Exxon Corp. LOC)
3.30%, 07/01/98 1,700 1,700
-------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $24,085) 24,085
-------
BOND ANTICIPATION NOTES -- 19.2% (b)
Atlantic City, New Jersey BAN
3.77%, 08/27/98 2,000 2,002
Bridgeton, New Jersey BAN
4.13%, 09/11/98 2,234 2,236
Monroe Township, New Jersey Middlesex
County BAN Series 1997-1998
3.54%, 07/30/98 800 801
3.83%, 07/30/98 1,420 1,420
Trenton, New Jersey BAN
3.80%, 10/01/98 2,000 2,002
Vernon Township, New Jersey Board
of Education BAN
3.87%, 12/04/98 2,000 2,001
81
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------ -------
Vineland, New Jersey BAN Series 1997-1998
3.66%, 08/14/98 $1,500 $ 1,501
-------
TOTAL BOND ANTICIPATION NOTES
(Cost $11,963) 11,963
-------
REVENUE BONDS -- 13.4% (b)
NEW JERSEY -- 7.7%
New Jersey Health Care Facilities Financing
Authority (Community Medical Center/
Kimball) / (FSA Insurance)
4.02%, 07/01/98 1,700 1,700
3.62%, 07/01/99 1,000 1,009
New Jersey State Education Facilities
Authority Higher Education Series A /
(AMBAC Insurance)
3.70%, 09/01/98 500 501
Port Authority of New York & New Jersey
RB Series 106
3.50%, 07/01/98 850 850
Rutgers State University New Jersey
Pre-Refunded / (Escrowed with Government
Securities)
6.70%, 05/01/99 685 715
-------
4,775
-------
PUERTO RICO -- 5.7%
Puerto Rico Commonwealth Aqueduct & Sewer
RB / (Escrowed in U.S. Treasuries)
3.48%, 07/01/98 2,300 2,346
Puerto Rico Commonwealth Highway Authority
RB Series P / (Escrowed with Government
Securities)
3.63%, 07/01/98 1,200 1,224
-------
3,570
-------
TOTAL REVENUE BONDS
(Cost $8,345) 8,345
-------
Par Value
------ -------
VARIABLE RATE TENDER OPTION BONDS -- 10.9% (a) (c)
New Jersey Building Authority TOB
(PA-320) / (Merrill Lynch Capital
Services Liquidity & Merrill Lynch & Co.
Guarantee)
3.58%, 07/02/98 $1,400 $ 1,400
New Jersey State Transportation Authority
TOB / (MBIA Insurance & Merrill Lynch
Capital Services Liquidity)
3.58%, 07/07/98 2,400 2,400
New Jersey Transportation Authority TOB
(PT-200) / (Bayerische Vereinsbank AG
Liquidity)
3.58%, 07/02/98 3,000 3,000
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $6,800) 6,800
-------
TAX-EXEMPT COMMERCIAL PAPER -- 6.2% (b)
NEW JERSEY -- 3.8%
New Jersey Education Facilities Authority
(Princeton University) TECP Series 1997
3.60%, 07/09/98 1,500 1,500
Port Authority of New York & New Jersey
TECP / (Bank of Nova Scotia Revolving
Credit Agreement)
3.50%, 09/01/98 890 890
-------
2,390
-------
PUERTO RICO -- 2.4%
Goverment Development Bank for Puerto
Rico TECP
3.75%, 07/14/98 1,500 1,500
-------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $3,890) 3,890
-------
MANDATORY PUT BONDS -- 4.7% (b)
New Jersey Economic Development Authority
RB (Newark Recycling Center Project)
3.70%, 12/15/98 2,900 2,902
-------
TOTAL MANDATORY PUT BONDS
(Cost $2,902) 2,902
-------
82
<PAGE>
Par Value
------ -------
GENERAL OBLIGATIONS -- 4.3% (b)
Lower Township, New Jersey GO Bonds
3.65%, 02/01/99 $ 340 $ 341
Middletown Township, New Jersey Board of
Education GO / (MBIA Insurance)
3.50%, 08/01/98 500 501
Ocean County, New Jersey GO
3.04%, 09/01/98 500 501
Paterson, New Jersey GO Bonds /
(FSA Insurance)
3.55%, 08/15/98 300 300
Somerset County, New Jersey GO Bonds
3.59%, 09/01/98 1,065 1,067
-------
TOTAL GENERAL OBLIGATIONS
(Cost $2,710) 2,710
-------
TAX AND REVENUE ANTICIPATION NOTES -- 0.7% (b)
PUERTO RICO -- 0.7%
Puerto Rico Commonwealth TRAN Series 1997A
3.83%, 07/30/98 450 450
-------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $450) 450
-------
CERTIFICATES OF PARTICIPATION -- 0.5% (b)
Absecon, New Jersey Board of Education
COP / (MBIA Insurance & Escrowed to
Maturity in Government Securities)
3.75%, 12/15/98 305 309
-------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $309) 309
-------
TOTAL INVESTMENTS -- 98.6%
(Cost $61,454) 61,454
-------
OTHER ASSETS AND LIABILITIES -- 1.4%
Other Assets 965
Liabilities (117)
-------
848
-------
NET ASSETS -- 100.0% $62,302
=======
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
83
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------- -------
VARIABLE RATE OBLIGATIONS -- 60.3% (a)
Allegheny County, Pennsylvania IDA RB
(Longwood at Oakmont) / (Dresdner Bank
LOC)
4.00%, 07/01/98 $ 275 $ 275
Allegheny County, Pennsylvania IDA RB
(Saureisen Project) / (Mellon Bank LOC)
3.80%, 07/07/98 1,115 1,115
Bucks County, Pennsylvania IDA (Klearfold
Project) / (Mellon Bank LOC)
3.80%, 07/07/98 1,750 1,750
Bucks County, Pennsylvania,
St. Mary Hospital Authority RB, (Catholic
Healthcare) Series 1997B / (Morgan
Guaranty SPA)
3.00%, 07/07/98 1,795 1,795
Cambria County, Pennsylvania IDA Resource
Recovery RB (Cambria Cogen Co. Project)
Series 1989V-2 / (ABN-Amro LOC)
3.65%, 07/07/98 2,600 2,600
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault
Project) / (CoreStates Bank NA LOC)
3.85%, 07/07/98 1,500 1,500
Dauphin County, Pennsylvania RB (All Health
Pooled Financing Project) / (FSA
Insurance & Credit Suisse SPA)
3.60%, 07/07/98 1,030 1,030
Emmaus General Authority RB Pooled Loan
Series 1996 / (FSA Insurance & Credit
Suisse SPA)
3.55%, 07/07/98 1,140 1,140
Montgomery County, Pennsylvania IDA (Seton
Medical Co.) / (First Union National
Bank LOC)
3.30%, 07/07/98 2,400 2,400
Montgomery County, Pennsylvania M/F Housing
RB (Glenmore Assoc.) Series A / (FNMA LOC)
3.65%, 07/07/98 2,605 2,605
North Hampton County, Pennsylvania IDA RB
(Binney & Smith) Series A / (FNB of
Chicago LOC)
3.80%, 07/07/98 2,580 2,580
Par Value
------- -------
Pennsylvania Economic Development Finance
Authority Exempt Facility RB (National
Gypsum Co.) Series 1997B /
(Nationsbank LOC)
3.65%, 07/07/98 $ 1,285 $ 1,285
Pennsylvania Economic Development Financing
Authority RB (National Gypsum Co.,
Shippingport Project) Series 1997A /
(NationsBank LOC)
3.65%, 07/07/98 1,600 1,600
Pennsylvania Energy Development Authority
RB (B&W Ebensburg Project) Series 1986 /
(Swiss Bank LOC)
3.55%, 07/07/98 2,500 2,500
Pennsylvania Energy Development Authority RB
(Piney Creek Project) Series 1986C /
(Landesbank Hessen - Thuringen
Girozentrale LOC)
3.60%, 07/07/98 1,155 1,155
Pennsylvania Higher Education Assistance
Agency Student Loan Adjustable Rate RB
Series 1997A / (SLMA LOC)
3.70%, 07/07/98 1,175 1,175
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B /
(SLMA LOC)
3.50%, 07/07/98 2,070 2,070
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988C /
(SLMA LOC)
3.50%, 07/07/98 1,885 1,885
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon Valley
Crethren) / (CoreStates Bank NA LOC)
3.70%, 07/07/98 1,200 1,200
York County, Pennsylvania General Authority
Pooled Financing RB Series 1996 / (First
Union National Bank of North Carolina LOC)
3.60%, 07/07/98 2,600 2,600
-------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $34,260) 34,260
-------
84
<PAGE>
Par Value
------- -------
REVENUE BONDS -- 14.2% (b)
Allegheny County, Pennsylvania Airport
Revenue Refunding Bonds (Pittsburgh
International Airport
Project) Series 1997A / (MBIA Insurance)
4.10%, 01/01/99 $ 2,050 $ 2,062
Dover Township, Pennsylvania Sewer
Authority RB / (MBIA Insurance)
3.70%, 11/01/98 110 110
Gettysburg, Pennsylvania Municipal
Authority Guaranteed Hospital RB
(Gettysburg Hospital Project)
Series 1994 / (MBIA Insurance)
3.69%, 01/01/99 250 250
Lehigh County, Pennsylvania General Purpose
Authority Revenue Refunding Bonds (Good
Shephard Rehabilitation Hospital
Project) / (AMBAC Insurance)
3.68%, 11/15/98 150 150
Pennsylvania State HFA S/F & M/F Housing RB
Series 49
4.11%, 10/01/98 300 300
Pennsylvania State Higher Education
Facility RB (Medical College Project) /
(Escrowed with Government Securities)
3.68%, 03/01/99 1,000 1,050
Pennsylvania State IDA RB (Economic
Development Project) / (AMBAC Insurance)
4.06%, 07/01/98 100 100
3.75%, 01/01/99 500 506
Pennsylvania Turnpike RB Series C /
(Escrowed with Government Securities &
FGIC Insurance)
3.65%, 12/01/98 1,500 1,554
Pennsylvania Turnpike RB Series O /
(FGIC Insurance)
3.63%, 12/01/98 1,300 1,306
Philadelphia, Pennsylvania Water & Sewer
Revenue Refunding Bonds 15th Series /
(MBIA Insurance)
3.65%, 10/01/98 200 202
Par Value
------- -------
Pittsburgh & Allegheny County, Pennsylvania
Revenue Refunding Bonds Series 1991A /
(AMBAC Insurance)
4.09%, 07/15/98 $ 500 $ 500
-------
TOTAL REVENUE BONDS
(Cost $8,090) 8,090
-------
VARIABLE RATE TENDER OPTION BONDS -- 11.8% (a) (c)
Allegheny County, Pennsylvania Airport
Revenue TOBP (PA-329) / (MBIA Insurance &
Merrill Lynch Capital Services Liquidity)
3.68%, 07/07/98 1,850 1,850
Altoona, Pennsylvania Water Authority
Revenue TOBP (PA-321) / (Merrill Lynch
Capital Services Liquidity & FGIC
Insurance)
3.68%, 07/07/98 1,700 1,700
Chester County, Pennsylvania Health &
Education Revenue TOBP (PA-327) / (AMBAC
Insurance & Merrill Lynch Capital
Services Liquidity)
3.68%, 07/07/98 1,700 1,700
Philadelphia, Pennsylvania Water & Waste
Revenue TOBP (PT-151) Series 1993 /
(FSA Insurance & Merrill Lynch Capital
Services Liquidity)
3.68%, 07/07/98 1,480 1,480
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $6,730) 6,730
-------
GENERAL OBLIGATIONS -- 5.5% (b)
Allegheny County, Pennsylvania Unlimited GO
Series C-43 / (MBIA Insurance)
3.58%, 09/15/98 600 601
Central Dauphin School District GO
2.77%, 06/01/99 1,000 1,018
Donegal, Pennsylvania School District /
(FSA Insurance)(d)
3.79%, 04/01/99 250 250
Pennsylvania State GO / (FGIC Insurance)
3.75%, 11/15/98 1,000 1,005
85
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- -------
Pennsylvania State GO Third Series
3.13%, 09/01/98 $ 250 $ 250
-------
TOTAL GENERAL OBLIGATIONS
(Cost $3,124) 3,124
-------
TAX-EXEMPT COMMERCIAL PAPER -- 5.4% (b)
PENNSYLVANIA -- 3.7%
Commonwealth of Pennsylvania TECP Series
1997A (Bayerische Landesbank Revolving
Credit Agreement)
3.65%, 08/20/98 1,600 1,600
Montgomery County, Pennsylvania IDA
Pollution Control RB TECP / (Deutsche
Bank LOC)
3.70%, 07/08/98 500 500
-------
2,100
-------
PUERTO RICO -- 1.7%
Government Development Bank for Puerto
Rico TECP
3.75%, 07/14/98 940 940
-------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $3,040) 3,040
-------
TAX AND REVENUE ANTICIPATION NOTES -- 5.2% (b)
PENNSYLVANIA -- 4.4%
Philadelphia, Pennsylvania TRAN Series A (d)
3.64%, 06/30/99 2,500 2,515
-------
PUERTO RICO -- 0.8%
Puerto Rico Commonwealth TRAN Series 1997A
3.48%, 07/30/98 450 450
-------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $2,965) 2,965
-------
Par Value
------- -------
CERTIFICATES OF PARTICIPATION -- 1.6% (b)
Pennsylvania State COP Series A (AMBAC
Insurance / Commerzbank SBPA)
3.73%, 07/01/99 $ 900 $ 906
-------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $906) 906
-------
OPTIONAL PUT BONDS -- 0.4% (b)
Philadelphia, Pennsylvania Water & Waste
Variable Rate RB Series 1997B /
(AMBAC Insurance & Commerzbank SPA)
3.74%, 08/05/98 200 203
-------
TOTAL OPTIONAL PUT BONDS
(Cost $203) 203
-------
TOTAL INVESTMENTS -- 104.4%
(Cost $59,318) 59,318
-------
OTHER ASSETS AND LIABILITIES -- (4.4%)
Other Assets 404
Liabilities (2,880)
-------
(2,476)
-------
NET ASSETS -- 100.0% $56,842
=======
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
86
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands)
June 30, 1998 (Unaudited)
Par Value
------- --------
VARIABLE RATE OBLIGATIONS -- 60.4% (a)
FLORIDA -- 39.9%
Alachua County, Florida Health Facilities
Authority RB (Shands Teaching Hospital
Clinic Project) Series 1996 / (MBIA
Insurance / Suntrust Bank Central
Florida LOC)
3.50%, 07/07/98 $ 5,900 $ 5,900
Arcadia, Florida Hospital RB (Desoto
Memorial Hospital Project) / (First
Union National Bank LOC)
3.60%, 07/07/98 3,775 3,775
Broward County, Florida HFA M/F Housing RB
(Harbor Town of Jacaranda Project)
Series 1995B / (Southtrust Bank NA LOC)
3.60%, 07/07/98 3,000 3,000
Broward County, Florida Indian Trace
Community Development (Basin 1 Water
Project) / (MBIA Insurance & Swiss Bank
Corp. LOC)
3.40%, 07/07/98 2,400 2,400
Broward County, Florida Suburban Port
Facilities Series 1998 (Port
Everglades) / (AMBAC Insurance /
Bank of Nova Scotia LOC)
3.45%, 07/07/98 10,000 10,000
Citrus Park, Florida Community Development
District Capital Improvement Bonds
Series 1996 / (Dresdner Bank AG LOC)
3.50%, 07/07/98 1,700 1,700
Collier County, Florida HFA M/F Housing RB
(River Beach Project) Series 1985 /
(Morgan Guaranty Trust Co.-New York LOC)
3.55%, 07/07/98 300 300
Dade County, Florida Aviation Series 1984A /
(Morgan Guaranty Trust Co.-New York LOC)
3.50%, 07/07/98 2,240 2,240
Dade County, Florida Health Facilities
Authority Hospital RB (Miami Children's
Hospital) Series 1995 / (AMBAC Insurance /
Suntrust Bank Central Florida SBPA)
3.40%, 07/07/98 450 450
Par Value
------- --------
Dade County, Florida IDA RB (Dolphins
Stadium Project) Series 1985C / (Societe
Generale LOC)
3.55%, 07/07/98 $ 1,050 $ 1,050
Dade County, Florida IDA RB (June Leasing
Corp.) Series 1995 / (First Union
National Bank LOC)
3.70%, 07/07/98 1,175 1,175
Dade County, Florida IDA RB (Micheal-Ann
Russell Jewish Community Center Project)
Series 1997
3.60%, 07/07/98 300 300
Duval County, Florida HFA M/F Housing RB
(Lakes Mayport Apartment) Series 1985 /
(Suntrust Banks Inc. LOC)
3.60%, 07/07/98 1,200 1,200
Florida Capital Financing Authority RB
(Capital Project Loan Program Project)
Series 1997A / (FSA Insurance)
3.55%, 07/07/98 5,700 5,700
Florida Development Finance Corp. IDRB
(Pioneer Ram Project) Series 1998A3 /
(Suntrust Bank Central Florida NA LOC)
3.65%, 07/07/98 1,500 1,500
Florida HFA Housing RB (Ashley Lake II
Project) Series 1989J / (Barclays
Bank LOC)
3.65%, 07/07/98 10,700 10,700
Florida HFA Housing RB (Heron Park Project)
Series 1996U / (NationsBank LOC)
3.65%, 07/07/98 3,300 3,300
Florida HFA Housing RB (Tiffany Club
Project) Series 1996P / (NationsBank LOC)
3.65%, 07/07/98 2,875 2,875
Florida HFA M/F Housing RB (Cornerstone
Imaging) Series 1985BB / (NationsBank LOC)
3.35%, 07/07/98 535 535
Florida Municipal Power Agency Revenue
Refunding Bonds (Stanton II Project)
Series 1997 / (AMBAC Insurance)
3.50%, 07/07/98 200 200
87
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
Florida Ocean Highway & Port Authority RB
Series 1990 / (ABN-Amro Bank N.V. LOC)
3.55%, 07/07/98 $ 9,000 $ 9,000
Gainesville, Florida IDA (Exactech Inc.
Project) / (Suntrust Bank Atlanta LOC)
3.70%, 07/07/98 1,900 1,900
Gulf Breeze, Florida Local Government
Loan Program Series 1985C / (Credit
Local de France & FGIC Insurance)
3.55%, 07/07/98 11,210 11,210
Highlands County, Florida Health Facility
Authority RB (Adventist Health Systems)
Series 1996B / (Canadian Imperial Bank of
Commerce & MBIA Insurance)
3.55%, 07/07/98 9,500 9,500
Highlands County, Florida Health Facility
Authority RB (Adventist Health Systems)
Series 1997A / (Suntrust Bank Central
Florida NA LOC)
3.55%, 07/07/98 7,185 7,185
Hillsborough County, Florida Housing M/F
(Brandon Crossing) / (AmSouth Bank of
Alabama LOC)
3.75%, 07/07/98 2,300 2,300
Jacksonville, Florida Health Facility
Authority RB (River Garden Project)
Series 1994 / (First Union National Bank
LOC)
3.55%, 07/07/98 2,805 2,805
Jacksonville, Florida Industrial
Development Revenue Refunding Bonds
(Pavilion Associates) / (Barnett Bank
NA LOC)
3.60%, 07/07/98 5,250 5,250
Jacksonville, Florida Industrial Development
Revenue Refunding Bonds (St. John's
Medical Investors Ltd. Project) /
(Barnett Bank NA LOC)
3.60%, 07/07/98 2,030 2,030
Manatee County, Florida HFA M/F Housing RB
(Hampton McGuire) Series 1989A / (First
Union National Bank LOC)
3.55%, 07/07/98 6,065 6,065
Par Value
------- --------
Manatee County, Florida IDRB (Trilectron
Industries Project) Series 1997 A /
(First Union National Bank LOC)
3.70%, 07/07/98 $ 2,000 $ 2,000
Marion County, Florida HFA M/F Housing RB
(Paddock Place Project) Series 1985F /
(Suntrust Bank Atlanta LOC)
3.60%, 07/07/98 1,000 1,000
Miami & Dade County, Florida IDRB (Airbus
Service Co. Project) Series 1998A /
(First Union National Bank of North
Carolina LOC)
3.65%, 07/07/98 4,700 4,700
Miami, Florida Health Facilities Authority
RB (Jewish Home for the Aged, Inc.
Project) Series 1996 / (Suntrust Bank of
Miami / Bank of Atlanta LOC)
3.60%, 07/07/98 3,000 3,000
Orange County, Florida HFA Housing
(Rio Vista Project) Series A / (First
Union National Bank LOC)
3.60%, 07/07/98 1,025 1,025
Orange County, Florida M/F Housing RB
(Smokewood Project) Series A #207 /
(Citibank LOC)
3.55%, 07/07/98 6,000 6,000
Orlando, Florida Special Assessment RB
(Republic Drive Interchange) / (Morgan
Guaranty Trust Co.-New York LOC)
3.35%, 07/07/98 1,000 1,000
Palm Beach County, Florida HDA Corp. M/F
Revenue Refunding Bonds (Spinnaker Landing
Project) / (FNMA LOC)
3.70%, 07/07/98 3,145 3,145
Palm Beach County, Florida HFA M/F Housing
RB (Lake Crystal Apartments Project,
Phase 11) Series 1998 / (Citibank LOC)
3.60%, 07/07/98 1,750 1,750
Palm Beach County, Florida RB (Norton
Gallery Art School Project) Series 1995 /
(Northern Trust Co. LOC)
3.45%, 07/07/98 2,300 2,300
88
<PAGE>
Par Value
------- --------
Polk County, Florida IDA RB (Young Florida
Project) Series 1996 / (First Union
National Bank LOC)
3.65%, 07/07/98 $ 1,000 $ 1,000
Riviera Beach, Florida IDRB (Sunshine Farms
Poultry Project) / (Suntrust Bank
Atlanta LOC)
3.70%, 07/07/98 2,600 2,600
SouthEast Volusia, Florida Hospital
District RB (Bert Fish Medical
Centerproject) Series 1995 /
(Southtrust Bank NA LOC)
3.55%, 07/07/98 1,785 1,785
St. Petersburg, Florida Capital Improvement
RB (Airport & Golf Course Project)
Series B / (Suntrust Bank Atlanta LOC)
3.60%, 07/07/98 1,000 1,000
Volusia County, Florida Health Facilities
Authority RB (South West Volusia Health
Project) Series 1994A / (First Union
National Bank of North Carolina LOC)
3.50%, 07/07/98 4,655 4,655
--------
152,505
--------
ALABAMA -- 0.5%
Fort Payne, Alabama IDA Base Tax Exempt
Adjustable Mode IDRB (Charleston Hosiery
Project) Series 1997 / (Wachovia Bank LOC)
3.65%, 07/07/98 2,000 2,000
--------
COLORADO -- 3.6%
Denver, Colorado Airport System Subordinate
RB Series 1992E / (Morgan Guaranty LOC)
3.65%, 07/07/98 13,900 13,900
--------
GEORGIA -- 2.6%
Cobb County, Georgia HFA M/F Housing RB
(Walton Green Project) / (Wachovia
Bank LOC)
3.65%, 07/07/98 10,000 10,000
--------
Par Value
------- --------
IDAHO -- 1.2%
Custer County, Idaho IDRB Solid Waste
Disposal (Hecla Mining Co. Project) /
(NationsBank of Texas LOC)
3.75%, 07/07/98 $ 4,500 $ 4,500
--------
ILLINOIS -- 7.6%
Chicago, Illinois O'Hare International
Airport Special Facility RB / (Societe
Generale LOC)
3.65%, 07/07/98 12,600 12,600
Hampshire, Illinois IDRB (Poli-Film America
Project) Series 1998A / (Bank of
America LOC)
3.60%, 07/07/98 6,385 6,385
Illinois Development Finance Authority
Adjusting Rate RB (Residential Rental
River Oak Project) / (Bancone LOC)
3.65%, 07/07/98 10,000 10,000
--------
28,985
--------
INDIANA -- 2.6%
Gary, Indiana Economical Development Revenue
Refunding Bonds (Miller Partners) Series
1996A / (Royal Bank of Scotland LOC)
3.60%, 07/07/98 10,000 10,000
--------
NEW MEXICO -- 2.4%
Albuquerque, New Mexico Airport RB
Subordinate Lien Series 1996A /
(Bayerische Landesbank Girozentrale LOC)
3.55%, 07/07/98 9,000 9,000
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $230,890) 230,890
--------
89
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS (in thousands) (continued)
June 30, 1998 (Unaudited)
Par Value
------- --------
VARIABLE RATE TENDER OPTION BONDS -- 13.7% (a) (c)
Escambia County, Florida HFA S/F Housing
TOBP (PT-1017) / (Merrill Lynch Capital
Services LOC)
3.75%, 07/02/98 $ 5,500 $ 5,500
Florida Department of Environmental
Protection TOBP (PT-166) / (FSA Insurance)
3.68%, 07/02/98 13,230 13,230
Florida State Educational Capital Outlay
TOBP (PT-339) / (Merrill Lynch Capital
Services LOC)
3.68%, 07/02/98 9,850 9,850
Florida State GO Short Mode TOB / (Bankers
Trust Co. LOC)
3.63%, 07/02/98 19,185 19,185
Jacksonville, Florida Electric Authority
RB TOBP (PT-317)
3.68%, 07/02/98 4,500 4,500
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $52,265) 52,265
--------
REVENUE ANTICIPATION NOTES -- 7.9% (b)
Brevard County, Florida School Board RAN
Series 98
3.69%, 05/06/99 16,000 16,040
Broward County, Florida School District
RAN Series B
3.68%, 04/20/99 3,655 3,664
Broward County, Florida School District
RAN Series C
3.68%, 04/20/99 10,540 10,567
--------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $30,271) 30,271
--------
REVENUE BONDS -- 5.5% (b)
FLORIDA -- 5.4%
Dade County, Florida Aviation Revenue
Refunding Bonds Series 1995D / (AMBAC
Insurance)
3.28%, 10/01/98 500 501
Escambia County, Florida Sales
Tax RB / (FGIC Insurance)
3.60%, 01/01/99 1,960 1,992
Par Value
------- --------
Fort Lauderdale, Florida Water & Sewer RB /
(Escrowed To Maturity With Government
Securities)
3.70%, 09/01/98 $ 2,645 $ 2,655
Hillsborough County, Florida School Board
Sales Tax RB / (AMBAC Insurance)
3.50%, 10/01/98 1,000 1,004
Kissimmee, Florida Utility Authority
Electric System RB / (AMBAC Insurance)
3.65%, 10/01/98 1,040 1,040
Pasco County, Florida Solid Waste Disposal
Resource Recovery System RB /
(AMBAC Insurance)
3.92%, 04/01/99 4,200 4,233
Pinellas County, Florida Resolution
Recovery RB Series A / (MBIA Insurance)
3.68%, 10/01/98 2,565 2,582
Tampa, Florida Health Systems RB Catholic
Health Services 1998A1 / (MBIA Insurance)
3.60%, 11/15/98 6,660 6,682
--------
20,689
--------
UTAH -- 0.1%
Utah Water Finance Agency RB /
(MBIA Insurance)
3.85%, 10/01/98 500 500
--------
TOTAL REVENUE BONDS
(Cost $21,189) 21,189
--------
TAX-EXEMPT COMMERCIAL PAPER -- 3.6% (b)
Florida Local Government Finance Commission
Pooled TECP Series A / (First Union
National Bank LOC)
3.55%, 09/08/98 7,768 7,768
Orange County, Florida TECP Series A
3.50%, 07/07/98 4,509 4,509
Puerto Rico Government Development Bank TECP
3.75%, 07/14/98 1,500 1,500
--------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $13,777) 13,777
--------
90
<PAGE>
Par Value
------- --------
GENERAL OBLIGATIONS -- 3.6% (b)
Broward County, Florida School District GO
3.62%, 01/01/99 $ 1,620 $ 1,633
3.68%, 02/15/99 4,500 4,682
Florida Board of Education Capital Outlay
RB Series 1998A
3.58%, 01/01/99 7,175 7,190
--------
TOTAL GENERAL OBLIGATIONS
(Cost $13,505) 13,505
--------
TAX AND REVENUE ANTICIPATION NOTES -- 2.6% (b)
Puerto Rico Commonwealth TRAN Series 1997A
3.57%, 07/30/98 10,000 10,007
--------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $10,007) 10,007
--------
TAX ANTICIPATION NOTES -- 1.3% (b)
Palm Beach County, Florida TAN
3.50%, 10/13/98 5,000 5,013
--------
TOTAL TAX ANTICIPATION NOTES
(Cost $5,013) 5,013
--------
Par Value
------- --------
MANDATORY PUT BONDS -- 0.8% (b)
Palm Beach County, Florida HFA Put Bond /
(FGIC Insurance)
3.75%, 07/01/99 $ 3,000 $ 3,000
--------
TOTAL MANDATORY PUT BONDS
(Cost $3,000) 3,000
--------
SPECIAL ASSESSMENT BONDS -- 0.3% (b)
Cape Coral, Florida Special Obligation
Revenue Refunding Bonds Waste Water
(Assignment Green Area) / (FSA Insurance)
2.73%, 07/01/99 1,000 1,018
--------
TOTAL SPECIAL ASSESSMENT BONDS
(Cost $1,018) 1,018
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $380,935) 380,935
--------
OTHER ASSETS AND LIABILITIES -- 0.3%
Other Assets 2,736
Liabilities (1,600)
--------
1,136
--------
NET ASSETS -- 100.0% $382,071
========
SEE ACCOMPANYING NOTES TO STATEMENTS OF NET ASSETS AND NOTES TO
FINANCIAL STATEMENTS.
91
<PAGE>
NOTES TO STATEMENTS OF NET ASSETS
June 30, 1998 (Unaudited)
For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
(a) Variable rate obligations -- Interest rates vary periodically based on
current market rates. Rates shown are the effective rates as of the report
date. Dates shown for securities with scheduled maturities within 397 days
or less represent the earlier of the demand date or next interest rate
change date. Dates shown for securities with scheduled maturities greater
than 397 days represent the later of the demand date or next interest rate
change date. For variable rate obligations without demand features, the next
interest reset date is shown. All dates shown are considered the maturity
date for financial reporting purposes.
(b) Interest rates represent effective yield to put or call date at time of
purchase.
(c) Certain securities purchased by the Fund are private placement securities
exempt from registration by Section 4(2) of the Securities Act of 1933.
These securities generally are issued to institutional investors, such as
the Schwab Municipal Money Fund, Schwab California Municipal Money Fund,
Schwab New York Municipal Money Fund, Schwab New Jersey MunicipalMoney
Fund,Schwab Pennsylvania Municipal Money Fund, and Schwab Florida Municipal
Money Fund. Any resale by the Fund must be in an exempt transaction,
normally to a qualified institutional buyer. At June 30, 1998, the aggregate
values of private placement securities held by the Schwab Municipal Money
Fund, Schwab California Municipal Money Fund, Schwab New York Municipal
Money Fund, Schwab New Jersey MunicipalMoney Fund,Schwab Pennsylvania
Municipal Money Fund, and Schwab Florida Municipal Money Fund were
$252,605,000, $128,160,000, $60,545,000, $6,800,000, $6,730,000 and
$52,265,000, respectively, which represented 4.2%, 3.8%, 10.6%, 10.9%, 11.8%
and 13.7% respectively, of the net assets of each Fund. All of these private
placement investments were determined by the Investment Manager to be liquid
in accordance with procedures adopted by the Board of Trustees.
(d) Security traded on a delayed-delivery basis. Payment and delivery is
scheduled for a future time, generally within two weeks of entering into the
transaction. The transaction is subject to market fluctuation and to the
risk that the value may be more or less than the purchase price when the
transaction was initiated. The Fund has set aside sufficient investment
securities as collateral for securities purchased on a delayed-delivery
basis.
(e) Certain securities cannot be resold to the general public without prior
registration under the Securities Act of 1933. If the security is
subsequently registered and resold, the issuers would typically bear the
expense of all registrations at no cost to the fund. At June 30, 1998, the
aggregate value of the restricted securities held by Schwab Municipal Money
Fund and Schwab California Municipal Money Fund were $105,750,000 and
$38,378,000, respectively, which represented 1.8% and 1.1%, respectively, of
the net assets of each Fund. All of these restricted investments were
determined by the Investment Manager to be illiquid in accordance with
procedures adopted by the Board of Trustees.
92
<PAGE>
Portfolio Abbreviations
- -----------------------
ACES Adjustable Convertible Extendable Securities
AMBAC American Municipal Bond Assurance Company
BAN Bond Anticipation Note
CP Commercial Paper
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FHLB Federal Home Loan Bank
FNMA Federal National Mortgage Association
FNB First National Bank
FSA Financial Security Assurance
GIC Guaranteed Investment Contract
GNMA Government National Mortgage Association
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corporation
M/F Multi-Family
NCNB North Carolina NationsBank
N.R.U.-C.F.C. National Rural Utilities Cooperative Financing Corporation
RAN Revenue Anticipation Note
RB Revenue Bond
SBPA Standby Purchase Agreement
S/F Single Family
SLMA Student Loan Marketing Association
SPA Securities Purchase Agreement
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TOB Tender Option Bond
TOBP Tender Option Bond Partnership
TRAN Tax and Revenue Anticipation Notes
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Schwab Schwab
Schwab California New York
Municipal Municipal Municipal
Money Fund Money Fund Money Fund
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments, at value (Cost: $6,112,205, $3,483,046 and
$564,509 respectively) $6,112,205 $3,483,046 $564,509
Cash 285 245 57
Receivables:
Interest 37,226 21,923 4,328
Investments sold 162,564 12,208 2,401
Fund shares sold 11,746 6,403 979
Prepaid expenses 395 200 48
---------- ---------- --------
Total assets 6,324,421 3,524,025 572,322
---------- ---------- --------
LIABILITIES
Payables:
Dividends 7,632 3,979 700
Investments purchased 267,381 149,931 --
Fund shares redeemed 13,810 5,833 1,124
Investment advisory and administration fees 188 101 16
Transfer agency and shareholder service fees 371 210 35
Other liabilities 327 206 123
---------- ---------- --------
Total liabilities 289,709 160,260 1,998
---------- ---------- --------
Net assets applicable to outstanding shares $6,034,712 $3,363,765 $570,324
========== ========== ========
NET ASSETS CONSIST OF:
Paid-in-capital $6,037,468 $3,364,621 $570,343
Accumulated net realized loss on investments sold (2,756) (856) (19)
---------- ---------- --------
$6,034,712 $3,363,765 $570,324
========== ========== ========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 4,447,208 2,181,913 390,170
Outstanding Value Advantage Shares(TRADE MARK) 1,590,529 1,182,807 180,236
---------- ---------- --------
6,037,737 3,364,720 570,406
Net asset value, offering and redemption price per each Sweep
and Value Advantage Share(TRADE MARK) $1.00 $1.00 $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Schwab Schwab Schwab
New Jersey Pennsylvania Florida
Municipal Municipal Municipal
Money Fund Money Fund Money Fund
---------- ------------ ----------
<S> <C> <C> <C>
ASSETS
Investments, at value (Cost: $61,454, $59,318 and
$380,935 respectively) $61,454 $59,318 $380,935
Cash 76 13 45
Receivables:
Interest 862 365 2,673
Prepaid expenses 27 26 18
------- ------- --------
Total assets 62,419 59,722 383,671
------- ------- --------
LIABILITIES
Payables:
Dividends 74 71 486
Investments purchased -- 2,765 1,000
Investment advisory and administration fees -- -- 1
Transfer agency and shareholder service fees 4 3 28
Other liabilities 39 41 85
------- ------- --------
Total liabilities 117 2,880 1,600
------- ------- --------
Net assets applicable to outstanding shares $62,302 $56,842 $382,071
======= ======= ========
NET ASSETS CONSIST OF:
Paid-in-capital $62,302 $56,844 $382,071
Accumulated net realized loss on investments sold -- (2) --
------- ------- --------
$62,302 $56,842 $382,071
======= ======= ========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 62,302 56,844 382,071
Net asset value, offering and redemption price per share $1.00 $1.00 $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
95
<PAGE>
STATEMENTS OF OPERATIONS (in thousands)
For the six months ended June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Schwab Schwab Schwab Schwab Schwab
Schwab California New York New Jersey Pennsylvania Florida
Municipal Municipal Municipal Municipal Municipal Municipal
Money Fund Money Fund Money Fund Money Fund 1 Money Fund 1 Money Fund 2
---------- ---------- ---------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Interest income $106,625 $55,711 $9,753 $ 663 $ 554 $4,223
-------- ------- ------ ----- ----- ------
Expenses:
Investment advisory and
administration fees 12,036 6,803 1,259 86 69 513
Transfer agency and shareholder
service fees:
Sweep Shares 10,215 4,904 882 84 67 501
Value Advantage Shares(TRADE MARK) 1,630 1,311 194 -- -- --
Custodian and portfolio
accounting fees 245 165 88 7 5 6
Registration fees 3 4 10 17 20 64
Professional fees 64 42 16 9 9 8
Shareholder reports 138 64 32 4 5 5
Trustees' fees 13 11 9 5 5 5
Offering fees -- -- -- 11 11 9
Insurance and other expenses 212 53 49 2 2 3
-------- ------- ------ ----- ----- ------
24,556 13,357 2,539 225 193 1,114
Less: expenses reduced (see Note 4) (6,639) (3,915) (837) (104) (96) (457)
-------- ------- ------ ----- ----- ------
Total expenses incurred by Fund 17,917 9,442 1,702 121 97 657
-------- ------- ------ ----- ----- ------
Net investment income 88,708 46,269 8,051 542 457 3,566
Net realized gain (loss)
on investments sold 84 (80) (5) -- (2) --
-------- ------- ------ ----- ----- ------
Increase in net assets resulting
from operations $ 88,792 $46,189 $8,046 $ 542 $ 455 $3,566
======== ======= ====== ===== ===== ======
<FN>
1 For the period from February 2, 1998 (commencement of operations) to June 30, 1998.
2 For the period from March 18, 1998 (commencement of operations) to June 30, 1998.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
96
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
<TABLE>
<CAPTION>
Schwab Schwab California Schwab New York
Municipal Money Fund Municipal Money Fund Municipal Money Fund
---------------------------- ---------------------------- ----------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 1998 December 31, June 30, 1998 December 31, June 30, 1998 December 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 88,708 $ 151,940 $ 46,269 $ 79,137 $ 8,051 $ 12,130
Net realized gain (loss) on
investments sold 84 (515) (80) (44) (5) 1
------------ ------------ ----------- ----------- --------- -----------
Increase in net assets
resulting from operations 88,792 151,425 46,189 79,093 8,046 12,131
------------ ------------ ----------- ----------- --------- -----------
Dividends to shareholders
from net investment income
(See Note 2):
Sweep Shares (68,036) (125,666) (30,601) (56,234) (5,664) (9,121)
Value Advantage Shares(TRADE MARK) (20,941) (26,274) (15,767) (22,903) (2,438) (3,009)
------------ ------------ ----------- ----------- --------- -----------
(88,977) (151,940) (46,368) (79,137) (8,102) (12,130)
Capital share transactions
(at $1.00 per share):
Proceeds from shares sold 11,710,126 17,267,233 5,512,716 8,685,116 1,026,822 1,365,492
Net asset value of shares
issued in reinvestment
of dividends 98,937 143,585 52,148 74,380 8,945 11,240
Less payments for shares
redeemed (11,283,236) (16,378,232) (5,292,257) (7,991,713) (948,145) (1,231,270)
------------ ------------ ----------- ----------- --------- -----------
Increase in net assets
from capital share
transactions 525,827 1,032,586 272,607 767,783 87,622 145,462
------------ ------------ ----------- ----------- --------- -----------
Total increase in net
assets 525,642 1,032,071 272,428 767,739 87,566 145,463
Net assets:
Beginning of period 5,509,070 4,476,999 3,091,337 2,323,598 482,758 337,295
------------ ------------ ----------- ----------- --------- -----------
End of period $ 6,034,712 $ 5,509,070 $ 3,363,765 $ 3,091,337 $ 570,324 $ 482,758
============ ============ =========== =========== ========= ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
97
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
<TABLE>
<CAPTION>
Schwab New Jersey Schwab Pennsylvania Schwab Florida
Municipal Money Fund Municipal Money Fund Municipal Money Fund
-------------------- -------------------- --------------------
Period ended Period ended Period ended
June 30, 1998 1 June 30, 1998 1 June 30, 1998 2
(Unaudited) (Unaudited) (Unaudited)
--------------- --------------- ---------------
<S> <C> <C> <C>
Operations:
Net investment income $ 542 $ 457 $ 3,566
Net realized loss on investments sold -- (2) --
-------- -------- ---------
Increase in net assets resulting
from operations 542 455 3,566
-------- -------- ---------
Dividends to shareholders from net
investment income:
Sweep Shares (542) (457) (3,566)
-------- -------- ---------
Capital share transactions
(at $1.00 per share):
Proceeds from shares sold 140,895 121,144 778,449
Net asset value of shares issued in
reinvestment of dividends 460 378 3,016
Less payments for shares redeemed (79,053) (64,678) (399,394)
-------- -------- ---------
Increase in net assets from capital share
transactions 62,302 56,844 382,071
-------- -------- ---------
Total increase in net assets 62,302 56,842 382,071
Net assets:
Beginning of period -- -- --
-------- -------- ---------
End of period $ 62,302 $ 56,842 $ 382,071
======== ======== =========
<FN>
1 For the period from February 2, 1998 (commencement of operations) to June 30, 1998.
2 For the period from March 18, 1998 (commencement of operations) to June 30, 1998.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
98
<PAGE>
THIS SPACE RESERVED FOR YOUR COMMENTS AND QUESTIONS.
A SCHWAB REPRESENTATIVE WILL BE HAPPY TO ASSIST YOU.
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
--------------------------------------- --------------------------
Net
Fiscal Net Asset Realized & Total Dividends Net Asset
Period Value At Net Unrealized from from Net Value at
Ended Beginning Investment Gain (Loss) on Investment Investment Total End of
December 31, of Period Income Investments Operations Income Distributions Period
- ------------ --------- ---------- -------------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
SCHWAB MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1994 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
1993 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
SCHWAB MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 2 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1994 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
1993 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 3 $1.00 $0.01 $-- $0.01 $(0.01) $(0.01) $1.00
<FN>
(DAGGER) The information contained in the above table is based on actual
expenses for the periods, after giving effect to the portion of
expenses reduced by the Investment Manager and Schwab. Had these
expenses not been reduced, the Fund's expense and net investment income
ratios would have been:
SCHWAB MUNICIPAL MONEY FUND -- SWEEP SHARES
- -------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.88* 2.76*
1997 0.90 2.83
1996 0.90 2.65
1995 0.91 3.00
1994 0.91 2.05
1993 0.93 1.62
SCHWAB MUNICIPAL MONEY FUND -- VALUE ADVANTAGE SHARES(TRADE MARK)
- -----------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.69* 2.96*
1997 0.72 3.03
1996 0.75 2.80
1995 2 0.95* 3.00*
1 For the six months ended June 30, 1998 (Unaudited).
2 For the period from July 7, 1995 (commencement of operations) to December 31,
1995.
3 For the period from October 3, 1995 (commencement of operations) to December
31, 1995.
4 The amounts shown include certain reclassifications related to book to tax
differences (see Note 2 of Notes to Financial Statements).
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
100
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------
Ratio of Net
Ratio of Investment
Fiscal Total Expenses Income
Period Return Net Assets to Average to Average
Ended (not annualized) End of Period Net Assets(DAGGER) Net Assets(DAGGER)
December 31, (%) (000's) (%) (%)
- ------------ ---------------- ------------- ------------------ ------------------
SCHWAB MUNICIPAL MONEY FUND--SWEEP SHARES
<S> <C> <C> <C> <C>
1998 1 1.50 $4,444,340 0.66* 2.99*
1997 3.11 $4,423,841 0.66 5 3.06
1996 2.92 $3,868,919 0.66 2.89
1995 3.30 $3,403,837 0.66 3.25
1994 2.32 $3,015,951 0.65 2.31
1993 1.93 $2,423,317 0.63 1.92
SCHWAB MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 1.60 $1,590,372 0.45* 3.20*
1997 3.32 $1,085,229 0.45 6 3.29
1996 3.14 $ 608,080 0.45 3.10
1995 2 1.68 $ 160,682 0.45* 3.50*
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 1.40 $2,181,039 0.65* 2.80*
1997 2.95 $2,154,522 0.65 7 2.91
1996 2.80 $1,816,112 0.65 2.77
1995 3.20 $1,577,695 0.65 3.15
1994 2.26 $1,293,883 0.64 2.25
1993 1.91 $1,062,042 0.63 1.89
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 1.50 $1,182,726 0.45* 3.00*
1997 3.15 $ 936,815 0.45 6 3.12
1996 3.01 $ 507,486 0.45 2.98
1995 3 0.84 $ 108,008 0.45* 3.48*
<FN>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- SWEEP SHARES
- -------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.89* 2.56*
1997 0.91 2.66
1996 0.92 2.50
1995 0.94 2.86
1994 0.94 1.95
1993 0.96 1.56
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND -- VALUE ADVANTAGE SHARES(TRADE MARK)
- ----------------------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.69* 2.76*
1997 0.72 2.86
1996 0.77 2.66
1995 3 1.04* 2.89*
5 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.67%.
6 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.46%.
7 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.66%.
* Annualized.
</FN>
</TABLE>
101
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
--------------------------------------- --------------------------
Net
Fiscal Net Asset Realized & Total Dividends Net Asset
Period Value At Net Unrealized from from Net Value at
Ended Beginning Investment Gain (Loss) on Investment Investment Total End of
December 31, of Period Income Investments Operations Income Distributions Period
- ------------ --------- ---------- -------------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
SCHWAB NEW YORK MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 2 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
SCHWAB NEW YORK MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 $1.00 $0.02 $-- $0.02 $(0.02)4 $(0.02) $1.00
1997 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1996 $1.00 $0.03 $-- $0.03 $(0.03) $(0.03) $1.00
1995 3 $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
<FN>
(DAGGER) The information contained in the above table is based on actual
expenses for the periods, after giving effect to the portion of
expenses reduced by the Investment Manager and Schwab. Had these
expenses not been reduced, the Fund's expense and net investment income
ratios would have been:
SCHWAB NEW YORK MUNICIPAL MONEY FUND -- SWEEP SHARES
- -------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.98* 2.58*
1997 1.02 2.62
1996 1.04 2.36
1995 4 1.04* 2.79*
SCHWAB NEW YORK MUNICIPAL MONEY FUND -- VALUE ADVANTAGE SHARES(TRADE MARK)
- --------------------------------------------------------------------------
Ratio of Net
Fiscal Period Ratio of Expenses Investment Income
Ended to Average Net Assets to Average Net Assets
December 31, (%) (%)
- ------------- --------------------- ---------------------
1998 1 0.79* 2.78*
1997 0.85 2.80
1996 1.01 2.42
1995 2 1.81* 2.06*
1 For the six months ended June 30, 1998 (Unaudited).
2 For the period from February 27, 1995 (commencement of operations) to December
31, 1995.
3 For the period from July 7, 1995 (commencement of operations) to
December 31, 1995.
4 The amounts shown include certain reclassifications related to book to tax
differences (see Note 2 of Notes to Financial Statements).
5 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.70%.
6 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.46%.
* Annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
102
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------
Ratio of Net
Ratio of Investment
Fiscal Total Expenses Income
Period Return Net Assets to Average to Average
Ended (not annualized) End of Period Net Assets(DAGGER) Net Assets(DAGGER)
December 31, (%) (000's) (%) (%)
- ------------ ---------------- ------------- ------------------ ------------------
<S> <C> <C> <C> <C>
SCHWAB NEW YORK MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 1.44 $ 390,104 0.69* 2.87*
1997 2.96 $ 357,221 0.69 5 2.93
1996 2.74 $ 270,612 0.69 2.71
1995 2 2.75 $ 204,863 0.63* 3.20*
SCHWAB NEW YORK MUNICIPAL MONEY FUND--VALUE ADVANTAGE SHARES(TRADE MARK)
1998 1 1.56 $ 180,220 0.45* 3.12*
1997 3.21 $ 125,537 0.45 6 3.18
1996 2.99 $ 66,683 0.45 2.98
1995 3 1.62 $ 15,143 0.45* 3.42*
</TABLE>
103
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
--------------------------------------- --------------------------
Net
Fiscal Net Asset Realized & Total Dividends Net Asset
Period Value At Net Unrealized from from Net Value at
Ended Beginning Investment Gain (Loss) on Investment Investment Total End of
December 31, of Period Income Investments Operations Income Distributions Period
- ------------ --------- ---------- -------------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 $1.00 $0.01 $-- $0.01 $(0.01) $(0.01) $1.00
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 $1.00 $0.01 $-- $0.01 $(0.01) $(0.01) $1.00
SCHWAB FLORIDA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 2 $1.00 $0.01 $-- $0.01 $(0.01) $(0.01) $1.00
<FN>
(DAGGER) The information contained in the above table is based on actual
expenses for the periods, after giving effect to the portion of
expenses reduced by the Investment Manager and Schwab. Had these
expenses not been reduced, the Fund's expense and net investment income
ratios would have been:
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
SWEEP SHARES SWEEP SHARES
- --------------------------------------- ----------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
Fiscal Period to Average Average Fiscal Period to Average Average
Ended Net Assets Net Assets Ended Net Assets Net Assets
December 31, (%) (%) December 31, (%) (%)
- ------------- ---------- ------------ ------------- ----------- -----------
1998 1 1.24* 2.32* 1998 1 1.33* 2.38*
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SWEEP SHARES
- ------------------------------------------
Ratio of Net
Ratio of Investment
Expenses Income to
Fiscal Period to Average Average
Ended Net Assets Net Assets
December 31, (%) (%)
- ------------- ----------- ------------
1998 2 1.03* 2.76*
1 For the period from February 2, 1998 (commencement of operations) to June 30,
1998 (Unaudited).
2 For the period from March 18, 1998 (commencement of operations) to June 30,
1998 (Unaudited).
* Annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
104
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------
Ratio of Net
Ratio of Investment
Fiscal Total Expenses Income
Period Return Net Assets to Average to Average
Ended (not annualized) End of Period Net Assets(DAGGER) Net Assets(DAGGER)
December 31, (%) (000's) (%) (%)
- ------------ ---------------- ------------- ------------------ ------------------
<S> <C> <C> <C> <C>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 1.18 $ 62,302 0.65* 2.91*
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 1 1.24 $ 56,842 0.65* 3.06*
SCHWAB FLORIDA MUNICIPAL MONEY FUND--SWEEP SHARES
1998 2 0.92 $382,071 0.59* 3.20*
</TABLE>
105
<PAGE>
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1998 (Unaudited)
1. DESCRIPTION OF THE FUNDS
The Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab
New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab
Pennsylvania Municipal Money Fund and Schwab Florida Municipal Money Fund (the
"Funds"), are series of The Charles Schwab Family of Funds (the "Trust"), a
no-load, open-end investment management company organized as a Massachusetts
business trust on October 20, 1989 and registered under the Investment Company
Act of 1940, as amended.
All Funds offer Sweep shares, and the Schwab Municipal Money Fund, Schwab
California Municipal Money Fund and Schwab New York Municipal Money Fund offer
an additional class of shares -- Value Advantage Shares(TRADE MARK). Both
classes represent interests in the same portfolio of investments of the
respective Fund and are substantially the same in all respects, except that the
classes are subject to different transfer agency and shareholder service fees
(see Note 3), investment minimums and certain other expenses.
In addition to the six Funds described above, the Trust also offers-Schwab Money
Market Fund, Schwab Government Money Fund, Schwab U.S. Treasury Money Fund,
Schwab Value Advantage Money Fund(REGISTRATION MARK), Schwab Institutional
Advantage Money Fund(REGISTRATION MARK), Schwab Retirement Money
Fund(REGISTRATION MARK) and Schwab Government Cash Reserves. The assets of each
series are segregated and accounted for separately.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in conformity with generally
accepted accounting principles for investment companies. The preparation of
financial statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
SECURITY VALUATION -- Investments are stated at amortized cost, which
approximates market value.
SECURITY TRANSACTIONS, INTEREST INCOME AND REALIZED GAINS (LOSSES) -- Security
transactions are accounted for on a trade date basis (date the order to buy or
sell is executed). Interest income is accrued daily and includes amortization of
premium on investments. Realized gains and losses from security transactions are
determined on an identified cost basis. Income and realized gains (losses) are
allocated daily to each class of shares of a Fund based on the value of settled
shares outstanding of each respective class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Each Fund declares a daily
dividend, equal to its net investment income for that day, payable monthly. Net
realized capital gains, if any, are normally distributed annually. Dividends
paid by a Fund with respect to each class of shares are calculated in the same
manner, at the same time, and will be in the same amount except for the effect
of expenses that may be applied differently, as described below.
106
<PAGE>
EXPENSES -- Expenses arising in connection with a Fund are charged directly to
that Fund. Expenses common to all series of the Trust are generally allocated to
each series in proportion to their relative net assets. Expenses attributable to
both classes of shares of a Fund are allocated daily to each class of that Fund
based on the value of settled shares outstanding of each respective class.
Transfer agency, shareholder service fees and certain other expenses which are
class specific are calculated daily at the class level.
FEDERAL INCOME TAXES -- It is each Fund's policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net investment income and realized net capital gains, if
any, to shareholders. Therefore, no federal income tax provision is required.
Each Fund is considered a separate entity for tax purposes.
All distributions paid by the Funds for the six months ended June 30, 1998
qualify as exempt interest dividends for federal tax purposes.
As of December 31, 1997, the unused capital loss carryforwards, for federal
income tax purposes with expiration dates, were as follows:
Schwab Schwab
Schwab California New York
Municipal Municipal Municipal
Expiring in: Money Fund Money Fund Money Fund
----------- ---------- ---------- ----------
12/31/99 $ 13,000 $ -- $ --
12/31/00 -- 1,000 --
12/31/01 220,000 56,000 --
12/31/02 1,580,000 583,000 --
12/31/03 36,000 -- 6,000
12/31/04 465,000 93,000 9,000
12/31/05 523,000 35,000 --
---------- -------- -------
Total capital loss
carryforwards $2,837,000 $768,000 $15,000
========== ======== =======
RECLASSIFICATION -- Generally accepted accounting principles require that
certain components of net assets be reclassified to reflect permanent
differences between financial and tax reporting. Accordingly, permanent book/tax
differences of $269,000, $99,000, $51,000 for the Schwab Municipal Money Fund,
Schwab California Money Fund and Schwab New York Municipal Money Fund,
respectively, were reclassified from paid-in-capital to undistributed net
investment income. These reclassifications have no effect on net assets or net
asset values per share.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS -- The Trust has investment
advisory and administration agreements with Charles Schwab Investment
Management, Inc. (the "Investment Manager"). For advisory services and
facilities furnished, each Fund pays an annual fee, payable monthly, of 0.46% of
the first $1 billion of average daily net assets, 0.41% of the next $1 billion
and 0.40% of such assets in excess of $2 billion. The Investment Manager has
reduced a portion of its fee for the six months ended June 30, 1998 (see Note
4).
107
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
TRANSFER AGENCY AND SHAREHOLDER SERVICE AGREEMENTS -- The Trust has transfer
agency and shareholder service agreements with Charles Schwab & Co., Inc.
("Schwab"). For transfer agency services provided, Schwab receives an annual
fee, payable monthly, of 0.25% of average daily net assets of the Sweep Shares
and 0.05% for Value AdvantageShares. For shareholder services provided, Schwab
receives 0.20% of each Fund's average daily net assets. Schwab has reduced a
portion of its fee for the six months ended June 30, 1998 (see Note 4).
OFFICERS AND TRUSTEES -- Certain officers and trustees of the Trust are also
officers and/or directors of the Investment Manager and/or Schwab. During the
six months ended June 30, 1998, the Trust made no direct payments to its
officers or trustees who are "interested persons" within the meaning of the
Investment Company Act of 1940, as amended. The Funds incurred fees aggregating
$48,000, related to the Trust's unaffiliated trustees.
4. EXPENSES REDUCED BY THE INVESTMENT MANAGER AND SCHWAB
The Investment Manager and Schwab guarantee that, through at least April 30,
1999, for Schwab Municipal MoneyFund, Schwab California Municipal MoneyFund and
New York Municipal Money Fund, and through at least February 28, 1999 for New
Jersey Municipal Money Fund,Pennsylvania Municipal Money Fund and Florida
Municipal Money Fund, respectively, total operating expenses of each class of
shares will not exceed certain percentages of average daily net assets of that
class shares, after reductions, as shown below. For purposes of this guarantee,
operating expenses do not include interest expenses, extraordinary expenses and
taxes.
Sweep Value Advantage
Shares Shares(TRADE MARK)
- --------------------------------------------------------------------------------
Schwab Municipal Money Fund 0.66% 0.45%
- --------------------------------------------------------------------------------
Schwab California Municipal Money Fund 0.65% 0.45%
- --------------------------------------------------------------------------------
Schwab New York Municipal Money Fund 0.69% 0.45%
- --------------------------------------------------------------------------------
Schwab New Jersey Municipal Money Fund 0.65% --
- --------------------------------------------------------------------------------
Schwab Pennsylvania Municipal Money Fund 0.65% --
- --------------------------------------------------------------------------------
Schwab Florida Municipal Money Fund 0.59% --
- --------------------------------------------------------------------------------
For the six months ended June 30, 1998, the total of such fees reduced by the
Investment Manager and Schwab were:
Fees Reduced by the Fees Reduced by
Investment Manager Schwab
- --------------------------------------------------------------------------------
Schwab Municipal Money Fund $6,532,000 $107,000
- --------------------------------------------------------------------------------
Schwab California Municipal Money Fund $3,901,000 $ 14,000
- --------------------------------------------------------------------------------
Schwab New York Municipal Money Fund $ 796,000 $ 41,000
- --------------------------------------------------------------------------------
Schwab New Jersey Municipal Money Fund $ 86,000 $ 18,000
- --------------------------------------------------------------------------------
Schwab Pennsylvania Municipal Money Fund $ 70,000 $ 26,000
- --------------------------------------------------------------------------------
Schwab Florida Municipal Money Fund $ 457,000 --
- --------------------------------------------------------------------------------
108
<PAGE>
5. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares, for the six-month period ended June 30, 1998 and
the year ended December 31, 1997 (at $1.00 per share), were as follows, (in
thousands):
<TABLE>
<CAPTION>
Schwab Municipal Schwab California Municipal Schwab New York Municipal
Money Fund Money Fund Money Fund
----------------------------- ---------------------------- -----------------------------
Six months For the Six months For the Six months For the
ended Year ended ended Year ended ended Year ended
June 30, 1998 December 31, June 30, 1998 December 31, June 30, 1998 December 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
shares sold:
Sweep Shares $ 10,021,986 $ 15,493,142 $ 4,517,313 $ 7,203,514 $ 867,263 $ 1,167,590
Value Advantage Shares(TRADE MARK) 1,688,140 1,774,091 995,403 1,481,602 159,559 197,902
------------ ------------ ----------- ----------- ---------- -----------
Total 11,710,126 17,267,233 5,512,716 8,685,116 1,026,822 1,365,492
------------ ------------ ----------- ----------- ---------- -----------
Net asset value of shares issued
in reinvestment of dividends:
Sweep Shares 77,240 120,622 35,009 53,926 6,343 8,549
Value Advantage Shares(TRADE MARK) 21,697 22,963 17,139 20,454 2,602 2,691
------------ ------------ ----------- ----------- ---------- -----------
Total 98,937 143,585 52,148 74,380 8,945 11,240
------------ ------------ ----------- ----------- ---------- -----------
Less payments for shares
redeemed:
Sweep Shares (10,078,582) (15,058,403) (4,525,685) (6,918,999) (840,681) (1,089,531)
Value Advantage Shares(TRADE MARK) (1,204,654) (1,319,829) (766,572) (1,072,714) (107,464) (141,739)
------------ ------------ ----------- ----------- ---------- -----------
Total (11,283,236) (16,378,232) (5,292,257) (7,991,713) (948,145) (1,231,270)
------------ ------------ ----------- ----------- ---------- -----------
Total increase in net
assets from capital
share transactions $ 525,827 $ 1,032,586 $ 272,607 $ 767,783 $ 87,622 $ 145,462
============ ============ =========== =========== ========== ===========
</TABLE>
109
<PAGE>
THIS SPACE RESERVED FOR YOUR COMMENTS AND QUESTIONS.
A SCHWAB REPRESENTATIVE WILL BE HAPPY TO ASSIST YOU.
<PAGE>
THIS SPACE RESERVED FOR YOUR COMMENTS AND QUESTIONS.
A SCHWAB REPRESENTATIVE WILL BE HAPPY TO ASSIST YOU.
<PAGE>
THE SCHWABFUNDS FAMILY-REGISTERED TRADEMARK-
The SchwabFunds Family includes a variety of funds to help you meet your
investment goals. You can diversify your portfolio in a single step with our
asset allocation funds. Or you can customize your portfolio with a combination
of our stock funds as well as our taxable and tax-advantaged bond and money
market funds.
Please call 1-800-435-4000 for a free prospectus and brochure for any of these
SchwabFunds.
This report must be preceded or accompanied by a current prospectus.
SCHWAB ASSET ALLOCATION FUNDS
Schwab MarketTrack All Equity Portfolio(1)
Schwab MarketTrack Growth Portfolio(1)
Schwab MarketTrack Balanced Portfolio(1)
Schwab MarketTrack Conservative Portfolio(1)
Schwab MarketManager Growth Portfolio(2)
Schwab MarketManager Balanced Portfolio(2)
SCHWAB STOCK FUNDS
Schwab 1000 Fund-Registered Trademark-
Schwab S&P 500 Fund
Schwab Analytics Fund-Registered Trademark-
Schwab Small-Cap Index Fund-Registered Trademark-
Schwab MarketManager Small Cap Portfolio(2)
Schwab International Index Fund-Registered Trademark-
Schwab MarketManager International Portfolio(2)
SCHWAB BOND FUNDS
Schwab Total Bond Market Index Fund(3)
Schwab Short-Term Bond Market Index Fund(3)
Schwab Long-Term Tax-Free Bond Fund
Schwab Short/Intermediate Tax-Free Bond Fund
Schwab California Long-Term Tax-Free Bond Fund
Schwab California Short/Intermediate
Tax-Free Fund
SCHWAB MONEY MARKET FUNDS
Schwab offers an array of money market funds(4) that seek high current income
with safety and liquidity. Choose from taxable or tax-advantaged alternatives.
Many can be linked to your Schwab account to "sweep" cash balances automatically
when you're between investments. Or, for your larger cash reserves, choose one
of our Value Advantage Investments-Registered Trademark-.
(1)Formerly the Schwab Asset Director Funds.
(2)Formerly the Schwab OneSource-TM- Portfolios.
(3)Formerly the Schwab Government Bond Funds.
(4)Investments in money market funds are neither insured nor guaranteed by the
U.S. government, and there is no assurance that the funds will be able to
maintain a stable share price of $1.
