SCHWABFUNDS-Registered Trademark-
SCHWAB
MUNICIPAL MONEY FUNDS
- 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
Semiannual Report
June 30, 1999
<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, 1999:
- 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 continued to provide competitive money
market returns, combined with stability of capital and liquidity.(1) Please
remember that an investment in the funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency and,
although the funds seek to preserve the value of your investment at $1 per
share, it is possible to lose money by investing in the funds.
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 and Value Advantage Shares, which are both
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 5
- ----------------------------------------------------
Portfolio Management 9
- ----------------------------------------------------
Schwab Municipal Money Fund 10
- ----------------------------------------------------
Schwab California Municipal Money Fund 11
- ----------------------------------------------------
Schwab New York Municipal Money Fund 12
- ----------------------------------------------------
Schwab New Jersey Municipal Money Fund 13
- ----------------------------------------------------
Schwab Pennsylvania Municipal Money Fund 14
- ----------------------------------------------------
Schwab Florida Municipal Money Fund 15
- ----------------------------------------------------
Fund Discussion 16
- ----------------------------------------------------
Glossary of Terms 20
- ----------------------------------------------------
Portfolio Highlights 21
- ----------------------------------------------------
Financial Statements and Notes 24
- ----------------------------------------------------
</TABLE>
(1)Income 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,
[PHOTO]
During the past several years, the benefits of investing have been readily
apparent, while the risks have been somewhat less obvious. Over the past six
months, however, investors have witnessed sharp drops and big recoveries,
sometimes within the same day. After enjoying favorable market conditions for
years, investors have had to adjust to significant economic and political
developments, both here and abroad, that have contributed to rapid sentiment
swings and market turbulence. These developments have been accentuated by the
lingering expectation that stock prices are long overdue for a correction
according to several traditional, widely followed indicators. In spite of the
recent volatility, however, the markets continue to flourish, boosted by low
inflation, solid economic growth, low interest rates, a strong dollar and an
influx of money from investors.
All these trends serve to remind us that although the market's extreme ups and
downs can be harrowing, they are a natural part of market dynamics. That's why
we think it's a good time to reaffirm one of our primary investment principles:
Regardless of short-term market trends, our philosophy has always been that
REGULAR INVESTING is the best strategy over the long run. On the following
pages, we've provided guidelines to help insure that you can reach your goals by
establishing--or maintaining--an ongoing investment program.
The support of investors like you has helped Charles Schwab Investment
Management, Inc.-Registered Trademark- (CSIM) become one of the largest and
fastest growing mutual fund families in the nation. CSIM now manages more than
$94 billion in assets on behalf of approximately 3.9 million SchwabFunds
shareholders. We offer a broad spectrum of 39 mutual funds for investors with
varying financial situations and goals.
Thank you for your investment in SchwabFunds. We continue to do everything we
can to warrant the trust you have placed in us.
Please contact us toll free at 800-435-4000 with your questions or comments. As
always, we look forward to serving your investment needs.
Sincerely,
/s/ Charles R. Schwab
Charles R. Schwab
June 30, 1999
YEAR 2000 ISSUES
One issue with the potential to disrupt fund operations and affect
performance is the inability of some computers to recognize the year 2000.
The investment adviser is taking steps to enable its systems to handle this
issue. The investment adviser also is seeking assurances that its service
providers and business partners are taking similiar steps as well. However,
it is impossible to know in advance exactly how this issue will affect fund
adminstration, fund performance or securities markets in general.
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 historically have 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
Some 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. 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 that you've chosen the right money market fund by
considering the role it will play in your investment portfolio. Here are some
factors to consider when making or reviewing your money market fund choice.
EXPENSES: Because expenses are one of the key determining factors in a money
market 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 consider 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. 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 convenient access to
your investment, also are 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 one-year
period.
SWEEP FEATURES: If you're looking for a convenient way to link your money market
fund with your account, consider an account that has a "sweep" feature. Accounts
with this feature automatically "sweep" uninvested cash into the fund you select
as your primary money fund. The upshot: It keeps cash working. In addition,
shares of your fund will be redeemed automatically to cover investment purchases
and other debits in your account. This convenience may be well worth the small
additional cost.
LARGER CASH BALANCES: You may earn higher yields 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 larger cash balances. These funds
typically have higher minimum balance requirements and transaction policies
designed to minimize fund operating expenses, and 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. And, if you live in a state with a high personal
state income tax, you may be best served by choosing a state-specific tax-free
fund that provides income free from federal, state and, in some cases, local
income taxes.(3)
(1) An investment in a money market fund is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency
and, although money funds seek to preserve the value of your investment at
$1 per share, it is possible to lose money by investing in a money fund.
(2) Yields may vary.
(3) This may not be true for investors subject to the federal alternative
minimum tax (AMT); consult your tax advisor.
2
<PAGE>
SCHWAB MONEY FUNDS
Schwab offers two types of money funds--Sweep Investments-TM- and Value
Advantage Investments.-Registered Trademark- Both include funds that offer
taxable and tax-free income. 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 are designed for your day-to-day cash needs. These shares can
be linked to your Schwab account to serve as a primary sweep money fund. That
means uninvested cash in your Schwab brokerage account is automatically swept in
and out of the fund, based on transactions in your account and the terms and
conditions of your account agreement.
VALUE ADVANTAGE INVESTMENTS are designed for your larger cash balances that
don't require frequent access. Value Advantage Investments have higher minimum
initial and ongoing balance requirements than Sweep Investments. These
requirements, along with policies designed to discourage frequent transactions,
can help minimize fund expenses--which in turn can mean higher returns for
investors. Please remember that Value Advantage Investments cannot be linked to
your Schwab account to serve as your primary sweep fund.
Schwab currently offers a variety of money funds. If you are selecting from
among them, you should consider your attitude toward risk and return, as well as
your income tax bracket.
SCHWAB TAXABLE MONEY FUNDS
SCHWAB MONEY MARKET FUND A high-quality money fund for investors interested in
the potential for high money market yields.
SCHWAB GOVERNMENT MONEY FUND Designed for investors who want current money
market yields along with the added margin of safety provided by a portfolio of
U.S. government securities and repurchase agreements.
SCHWAB U.S. TREASURY MONEY FUND Of all the money funds offered by Schwab, this
one seeks to provide the highest degree of safety. The fund invests exclusively
in U.S. Treasury securities and other investments that are backed by the full
faith and credit of the U.S. government. What's more, income from the fund is
generally free from state and local income tax.
SCHWAB VALUE ADVANTAGE MONEY FUND-REGISTERED TRADEMARK- A high-quality money
fund designed for investors interested in the potential for higher money market
yields.
SCHWAB MUNICIPAL MONEY FUNDS
SCHWAB MUNICIPAL MONEY FUND A high-quality municipal money fund that seeks to
provide income that is free from federal income tax.
SCHWAB STATE-SPECIFIC MUNICIPAL MONEY FUNDS Each of these funds is designed for
taxpayers of a particular state and seeks to provide income that is exempt from
federal, state and, in some cases, local income taxes. The Schwab Florida
Municipal Money Fund also seeks to have its shares exempt from the Florida
Intangible Tax.
- Schwab California Municipal Money Fund
- Schwab Florida Municipal Money Fund
- Schwab New Jersey Municipal Money Fund
- Schwab New York Municipal Money Fund
- Schwab Pennsylvania Municipal Money Fund
3
<PAGE>
WHAT MONEY FUND INVESTORS SHOULD KNOW (continued)
The table below presents the various money fund choices available at Schwab.
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
TAXABLE MONEY FUNDS INVESTMENTS-TM- INVESTMENTS-REGISTERED TRADEMARK-
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Schwab Money Market Fund -
- -------------------------------------------------------------------------------------------------
Schwab Government Money Fund -
- -------------------------------------------------------------------------------------------------
Schwab U.S. Treasury Money Fund -
- -------------------------------------------------------------------------------------------------
Schwab Value Advantage Money Fund--Investor Shares -
- -------------------------------------------------------------------------------------------------
<CAPTION>
MUNICIPAL MONEY FUNDS
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Schwab Municipal Money Fund - -
- -------------------------------------------------------------------------------------------------
Schwab California Municipal Money Fund - -
- -------------------------------------------------------------------------------------------------
Schwab Florida Municipal Money Fund -
- -------------------------------------------------------------------------------------------------
Schwab New Jersey Municipal Money Fund -
- -------------------------------------------------------------------------------------------------
Schwab New York Municipal Money Fund - -
- -------------------------------------------------------------------------------------------------
Schwab Pennsylvania Municipal Money Fund -
- -------------------------------------------------------------------------------------------------
</TABLE>
If you would like more information on any of these funds, please call us toll
free at 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 to invest in
SchwabFunds-Registered Trademark-. With Schwab MoneyLink-Registered Trademark-,
Schwab's electronic transfer service, you can have money automatically
transferred into your Schwab account on a regular basis. You also can invest in
person at any of our more than 300 nationwide branches, through our Web site at
www.schwab.com and through our automated touch-tone telephone service,
TeleBroker-Registered Trademark-, by calling 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
current 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
<PAGE>
MARKET OVERVIEW
U.S. ECONOMIC GROWTH
The U.S. economy, as measured by gross domestic product (GDP), continued its
remarkable expansion as indicated by the 3.3% real growth rate for the first six
months of 1999.
The second quarter growth rate of 2.3% marks the 33rd consecutive quarter of
positive growth--the longest peacetime expansion ever. Strong consumer spending,
coupled with record domestic stock market levels and its associated wealth
effect, continued to provide momentum for this historic expansion.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
REAL GROSS DOMESTIC PRODUCT
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 1.7%
Q2 1995 0.4%
Q3 1995 3.3%
Q4 1995 2.8%
Q1 1996 3.3%
Q2 1996 6.1%
Q3 1996 2.1%
Q4 1996 4.2%
Q1 1997 4.2%
Q2 1997 4.0%
Q3 1997 4.2%
Q4 1997 3.0%
Q1 1998 5.5%
Q2 1998 1.8%
Q3 1998 3.7%
Q4 1998 6.0%
Q1 1999 4.3%
Q2 1999 2.3%
Source: BLOOMBERG L.P.
</TABLE>
The consensus of most economists is that the U.S. economy appears poised for
continued growth, but at a more moderate pace than the 4.3% rate experienced
during 1998. High levels of consumer confidence and spending, low interest
rates, rising real wages and strong gains in stock prices have been the
principal factors fueling this lengthy expansion.
Last year's concerns over the impact of international economic problems have
been displaced by concerns about imbalances in the domestic economy, namely the
surging current account (trade) deficit, record high stock valuations and the
negative savings rate. Going forward, consumers' behavior in response to
continued stock market volatility may also be a key determinant of whether the
economy continues on its current course or softens throughout the remainder of
1999.
UNEMPLOYMENT
Labor markets continue to be extremely tight in many areas of the country. After
declining to 4.2% in May-- the lowest level in 28 years--the U.S. unemployment
rate stood at 4.3% in June. While the pace of growth in the labor force slowed
during the first six months of 1999 there continues to be concern that wage and
benefits increases may begin to put more pressure on labor costs (refer to
Employment Cost Index on the following page).
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 6.8%
Feb-94 6.6%
Mar-94 6.5%
Apr-94 6.4%
May-94 6.1%
Jun-94 6.1%
Jul-94 6.3%
Aug-94 6.0%
Sep-94 5.8%
Oct-94 5.8%
Nov-94 5.6%
Dec-94 5.5%
Jan-95 5.6%
Feb-95 5.4%
Mar-95 5.3%
Apr-95 5.8%
May-95 5.8%
Jun-95 5.6%
Jul-95 5.6%
Aug-95 5.7%
Sep-95 5.6%
Oct-95 5.5%
Nov-95 5.7%
Dec-95 5.6%
Jan-96 5.6%
Feb-96 5.5%
Mar-96 5.6%
Apr-96 5.5%
May-96 5.6%
Jun-96 5.3%
Jul-96 5.5%
Aug-96 5.1%
Sep-96 5.2%
Oct-96 5.2%
Nov-96 5.3%
Dec-96 5.4%
Jan-97 5.3%
Feb-97 5.3%
Mar-97 5.1%
Apr-97 5.0%
May-97 4.7%
Jun-97 5.0%
Jul-97 4.7%
Aug-97 4.9%
Sep-97 4.7%
Oct-97 4.7%
Nov-97 4.6%
Dec-97 4.7%
Jan-98 4.5%
Feb-98 4.6%
Mar-98 4.6%
Apr-98 4.3%
May-98 4.3%
Jun-98 4.5%
Jul-98 4.5%
Aug-98 4.5%
Sep-98 4.5%
Oct-98 4.5%
Nov-98 4.4%
Dec-98 4.3%
Jan-99 4.3%
Feb-99 4.4%
Mar-99 4.2%
Apr-99 4.3%
May-99 4.2%
Jun-99 4.3%
Source: BLOOMBERG L.P.
</TABLE>
5
<PAGE>
MARKET OVERVIEW (continued)
INFLATION
Price inflation continued to remain well contained during the first six months
of 1999. The Consumer Price Index rose just 2.0% for the year ended June 30,
1999 while its core rate (which excludes the more volatile food and energy
components) rose just 2.1%. The GDP price deflator, the broadest measure of
inflation, showed prices rising at an annual rate of 2.1% during the second
quarter. The Employment Cost Index, which measures inflation in wages, salaries
and benefits, was also well contained, increasing just 3.2% for the year ended
June 1999.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MEASURES OF INFLATION
<S> <C> <C>
Quarterly Employment Cost Index Monthly Consumer Price Index
Jan-90 5.5% 5.2%
Feb-90 5.5% 5.3%
Mar-90 5.5% 5.2%
Apr-90 5.4% 4.7%
May-90 5.4% 4.4%
Jun-90 5.4% 4.7%
Jul-90 5.2% 4.8%
Aug-90 5.2% 5.6%
Sep-90 5.2% 6.2%
Oct-90 4.9% 6.3%
Nov-90 4.9% 6.3%
Dec-90 4.9% 6.1%
Jan-91 4.6% 5.7%
Feb-91 4.6% 5.3%
Mar-91 4.6% 4.9%
Apr-91 4.6% 4.9%
May-91 4.6% 5.0%
Jun-91 4.6% 4.7%
Jul-91 4.3% 4.4%
Aug-91 4.3% 3.8%
Sep-91 4.3% 3.4%
Oct-91 4.3% 2.9%
Nov-91 4.3% 3.0%
Dec-91 4.3% 3.1%
Jan-92 4.0% 2.6%
Feb-92 4.0% 2.8%
Mar-92 4.0% 3.2%
Apr-92 3.6% 3.2%
May-92 3.6% 3.0%
Jun-92 3.6% 3.1%
Jul-92 3.5% 3.2%
Aug-92 3.5% 3.1%
Sep-92 3.5% 3.0%
Oct-92 3.5% 3.2%
Nov-92 3.5% 3.0%
Dec-92 3.5% 2.9%
Jan-93 3.5% 3.3%
Feb-93 3.5% 3.2%
Mar-93 3.5% 3.1%
Apr-93 3.6% 3.2%
May-93 3.6% 3.2%
Jun-93 3.6% 3.0%
Jul-93 3.6% 2.8%
Aug-93 3.6% 2.8%
Sep-93 3.6% 2.7%
Oct-93 3.5% 2.8%
Nov-93 3.5% 2.7%
Dec-93 3.5% 2.7%
Jan-94 3.2% 2.5%
Feb-94 3.2% 2.5%
Mar-94 3.2% 2.5%
Apr-94 3.2% 2.4%
May-94 3.2% 2.3%
Jun-94 3.2% 2.5%
Jul-94 3.2% 2.8%
Aug-94 3.2% 2.9%
Sep-94 3.2% 3.0%
Oct-94 3.0% 2.6%
Nov-94 3.0% 2.7%
Dec-94 3.0% 2.7%
Jan-95 2.9% 2.8%
Feb-95 2.9% 2.9%
Mar-95 2.9% 2.9%
Apr-95 2.9% 3.1%
May-95 2.9% 3.2%
Jun-95 2.9% 3.0%
Jul-95 2.7% 2.8%
Aug-95 2.7% 2.6%
Sep-95 2.7% 2.5%
Oct-95 2.7% 2.8%
Nov-95 2.7% 2.6%
Dec-95 2.7% 2.5%
Jan-96 2.8% 2.7%
Feb-96 2.8% 2.7%
Mar-96 2.8% 2.8%
Apr-96 2.9% 2.9%
May-96 2.9% 2.9%
Jun-96 2.9% 2.8%
Jul-96 2.8% 3.0%
Aug-96 2.8% 2.9%
Sep-96 2.8% 3.0%
Oct-96 2.9% 3.0%
Nov-96 2.9% 3.3%
Dec-96 2.9% 3.3%
Jan-97 2.9% 3.0%
Feb-97 2.9% 3.0%
Mar-97 2.9% 2.8%
Apr-97 2.8% 2.5%
May-97 2.8% 2.2%
Jun-97 2.8% 2.3%
Jul-97 3.0% 2.2%
Aug-97 3.0% 2.2%
Sep-97 3.0% 2.2%
Oct-97 3.3% 2.1%
Nov-97 3.3% 1.8%
Dec-97 3.3% 1.7%
Jan-98 3.3% 1.6%
Feb-98 3.3% 1.4%
Mar-98 3.3% 1.4%
Apr-98 3.5% 1.4%
May-98 3.5% 1.7%
Jun-98 3.5% 1.7%
Jul-98 3.7% 1.7%
Aug-98 3.7% 1.6%
Sep-98 3.7% 1.5%
Oct-98 3.4% 1.5%
Nov-98 3.4% 1.5%
Dec-98 3.4% 1.6%
Jan-99 3.0% 1.7%
Feb-99 3.0% 1.6%
Mar-99 3.0% 1.7%
Apr-99 3.2% 2.3%
May-99 3.2% 2.1%
Jun-99 3.2% 2.0%
Source: BLOOMBERG L.P. AND BUREAU OF LABOR STATISTICS
</TABLE>
Although there is little evidence of acceleration in core inflation, the Federal
Reserve has expressed concern that should labor markets continue to tighten,
increases in wages may outpace productivity growth. In that environment,
productivity growth becomes particularly critical, as it enables companies to
pay higher wages without raising prices. Non-farm productivity grew 2.2% in 1998
and has grown at a very strong 2.4% annualized rate for the first half of 1999,
continuing a healthy trend that began in 1996.
ASSET CLASS PERFORMANCE
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOTAL RETURN PERFORMANCE
GROWTH OF A HYPOTHETICAL $1
INVESTMENT
<S> <C> <C> <C> <C>
MSCE-EAFE Russell 2000 Lehman Aggregate
Index S&P 500 Index Index Bond Index
Dec-98 $1.00 $1.00 $1.00 $1.00
Jan-99 1 1.04 1.01 1.01
Feb-99 0.97 1.01 0.93 0.99
Mar-99 1.01 1.05 0.95 0.99
Apr-99 1.05 1.09 1.03 1
May-99 1 1.06 1.04 0.99
Jun-99 1.04 1.12 1.09 0.99
COMPILED BY CHARLES SCHWAB & CO.,
INC.
</TABLE>
Large-cap domestic stocks, as represented by the S&P 500-Registered Trademark-
Index, continued to be the strongest performing asset class, achieving a total
return of 12.4% for the six-month period ended June 30, 1999. Within the S&P
500, value stocks displaced growth stocks as the strongest performing style for
the period. Small-cap stocks, as represented by the Russell
2000-Registered Trademark- Index, produced a 9.3% return for the six-month
reporting period.
Assisted by the rebound in Asian markets, international stocks, as represented
by the MSCI-EAFE-Registered Trademark- Index, produced a 4.0% total return for
the six-month reporting period.
6
<PAGE>
Fixed income returns were generally weak for the reporting period, reflecting
the moderate rise in intermediate- and long-term interest rates. Bonds, as
represented by the Lehman Brothers Aggregate Bond Index, had a negative return
of 1.4% for the six-month reporting period.
TREASURY BOND YIELDS
Following a trend that began in October 1998, both long-term and
intermediate-term yields continued to climb during the reporting period. Scaled
back concerns about the impact of international economic problems and the
continued strong growth of the domestic economy were the primary drivers of this
upward trend in yields.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
30-YEAR AND FIVE-YEAR TREASURY BOND YIELDS
<S> <C> <C>
30-Year Treasury Five-Year Treasury
Bond Yield Note Yield
01/01/99 5.10% 4.54%
01/04/99 5.15% 4.56%
01/05/99 5.21% 4.62%
01/06/99 5.16% 4.57%
01/07/99 5.22% 4.63%
01/08/99 5.27% 4.73%
01/11/99 5.31% 4.79%
01/12/99 5.22% 4.67%
01/13/99 5.13% 4.56%
01/14/99 5.06% 4.46%
01/15/99 5.11% 4.55%
01/18/99 5.12% 4.55%
01/19/99 5.15% 4.61%
01/20/99 5.17% 4.64%
01/21/99 5.13% 4.56%
01/22/99 5.08% 4.52%
01/25/99 5.12% 4.55%
01/26/99 5.13% 4.58%
01/27/99 5.13% 4.55%
01/28/99 5.11% 4.56%
01/29/99 5.09% 4.55%
02/01/99 5.18% 4.64%
02/02/99 5.24% 4.70%
02/03/99 5.25% 4.73%
02/04/99 5.29% 4.79%
02/05/99 5.35% 4.86%
02/08/99 5.34% 4.84%
02/09/99 5.30% 4.80%
02/10/99 5.37% 4.82%
02/11/99 5.37% 4.84%
02/12/99 5.42% 4.96%
02/15/99 5.43% 4.98%
02/16/99 5.34% 4.94%
02/17/99 5.31% 4.90%
02/18/99 5.38% 4.97%
02/19/99 5.39% 4.99%
02/22/99 5.36% 4.94%
02/23/99 5.43% 5.04%
02/24/99 5.51% 5.12%
02/25/99 5.65% 5.29%
02/26/99 5.58% 5.22%
03/01/99 5.67% 5.31%
03/02/99 5.61% 5.23%
03/03/99 5.70% 5.29%
03/04/99 5.70% 5.31%
03/05/99 5.60% 5.22%
03/08/99 5.59% 5.19%
03/09/99 5.53% 5.10%
03/10/99 5.55% 5.12%
03/11/99 5.56% 5.12%
03/12/99 5.53% 5.06%
03/15/99 5.52% 5.06%
03/16/99 5.48% 5.02%
03/17/99 5.51% 5.04%
03/18/99 5.49% 5.01%
03/19/99 5.56% 5.08%
03/22/99 5.57% 5.12%
03/23/99 5.54% 5.05%
03/24/99 5.53% 5.06%
03/25/99 5.59% 5.10%
03/26/99 5.59% 5.08%
03/29/99 5.64% 5.13%
03/30/99 5.58% 5.05%
03/31/99 5.63% 5.10%
04/01/99 5.67% 5.14%
04/02/99 5.60% 5.05%
04/05/99 5.59% 5.05%
04/06/99 5.52% 4.99%
04/07/99 5.50% 5.01%
04/08/99 5.44% 4.94%
04/09/99 5.46% 4.96%
04/12/99 5.45% 4.96%
04/13/99 5.49% 5.00%
04/14/99 5.51% 5.03%
04/15/99 5.53% 5.06%
04/16/99 5.57% 5.11%
04/19/99 5.52% 5.03%
04/20/99 5.51% 5.03%
04/21/99 5.52% 5.08%
04/22/99 5.60% 5.13%
04/23/99 5.60% 5.14%
04/26/99 5.58% 5.11%
04/27/99 5.54% 5.10%
04/28/99 5.58% 5.14%
04/29/99 5.53% 5.08%
04/30/99 5.66% 5.21%
05/03/99 5.66% 5.21%
05/04/99 5.71% 5.26%
05/05/99 5.71% 5.25%
05/06/99 5.79% 5.36%
05/07/99 5.81% 5.37%
05/10/99 5.79% 5.36%
05/11/99 5.83% 5.41%
05/12/99 5.83% 5.37%
05/13/99 5.75% 5.29%
05/14/99 5.92% 5.50%
05/17/99 5.89% 5.50%
05/18/99 5.89% 5.56%
05/19/99 5.80% 5.53%
05/20/99 5.83% 5.53%
05/21/99 5.75% 5.43%
05/24/99 5.76% 5.42%
05/25/99 5.75% 5.41%
05/26/99 5.80% 5.51%
05/27/99 5.85% 5.59%
05/28/99 5.83% 5.58%
05/31/99 5.83% 5.58%
06/01/99 5.92% 5.72%
06/02/99 5.93% 5.72%
06/03/99 5.96% 5.74%
06/04/99 5.96% 5.73%
06/07/99 5.97% 5.71%
06/08/99 5.99% 5.73%
06/09/99 6.03% 5.80%
06/10/99 6.06% 5.85%
06/11/99 6.16% 5.91%
06/14/99 6.10% 5.87%
06/15/99 6.11% 5.86%
06/16/99 6.07% 5.80%
06/17/99 5.96% 5.66%
06/18/99 5.97% 5.73%
06/21/99 6.02% 5.79%
06/22/99 6.06% 5.82%
06/23/99 6.15% 5.91%
06/24/99 6.16% 5.90%
06/25/99 6.15% 5.89%
06/28/99 6.09% 5.83%
06/29/99 6.07% 5.81%
06/30/99 5.96% 5.64%
Source: BLOOMBERG L.P.
</TABLE>
SHORT-TERM INTEREST RATE ENVIRONMENT
Short-term interest rates increased marginally, but remained within a narrow
range throughout most of the reporting period. Until the April CPI report
release, the economy had demonstrated continued signs of growth with no
significant evidence of accelerating inflation or indications of potential
Federal Reserve action. After April's unexpectedly high CPI report, the Federal
Reserve adopted a "tightening" bias in May, and then, in June, announced a 0.25%
increase in the Federal Funds Rate and a return to a "neutral" bias. The Federal
Reserve has expressed concern that a potential buildup of inflationary
imbalances could undermine the favorable performance of the economy.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
1999 YIELDS ON 90-DAY COMMERCIAL PAPER
AND THREE-MONTH TREASURY BILLS
<S> <C> <C>
Three-Month 90-Day
Treasury Bill Commercial Paper
01/04/99 4.47% 4.80%
01/05/99 4.49% 4.80%
01/06/99 4.45% 4.75%
01/07/99 4.43% 4.79%
01/08/99 4.47% 4.78%
01/11/99 4.50% 4.80%
01/12/99 4.48% 4.79%
01/13/99 4.42% 4.80%
01/14/99 4.42% 4.79%
01/15/99 4.43% 4.78%
01/19/99 4.38% 4.77%
01/20/99 4.37% 4.76%
01/21/99 4.28% 4.76%
01/22/99 4.34% 4.75%
01/25/99 4.42% 4.74%
01/26/99 4.47% 4.75%
01/27/99 4.42% 4.75%
01/28/99 4.49% 4.75%
01/29/99 4.45% 4.74%
02/01/99 4.52% 4.75%
02/02/99 4.53% 4.76%
02/03/99 4.48% 4.75%
02/04/99 4.47% 4.76%
02/05/99 4.49% 4.76%
02/08/99 4.50% 4.78%
02/09/99 4.51% 4.79%
02/10/99 4.46% 4.78%
02/11/99 4.51% 4.78%
02/12/99 4.52% 4.79%
02/16/99 4.51% 4.80%
02/17/99 4.52% 4.79%
02/18/99 4.54% 4.81%
02/19/99 4.56% 4.80%
02/22/99 4.60% 4.79%
02/23/99 4.66% 4.81%
02/24/99 4.65% 4.81%
02/25/99 4.63% 4.81%
02/26/99 4.67% 4.82%
03/01/99 4.69% 4.83%
03/02/99 4.64% 4.83%
03/03/99 4.59% 4.83%
03/04/99 4.60% 4.82%
03/05/99 4.60% 4.84%
03/08/99 4.61% 4.82%
03/09/99 4.58% 4.80%
03/10/99 4.58% 4.81%
03/11/99 4.59% 4.82%
03/12/99 4.59% 4.81%
03/15/99 4.58% 4.81%
03/16/99 4.53% 4.81%
03/17/99 4.51% 4.80%
03/18/99 4.49% 4.81%
03/19/99 4.49% 4.81%
03/22/99 4.50% 4.82%
03/23/99 4.48% 4.81%
03/24/99 4.48% 4.81%
03/25/99 4.50% 4.80%
03/26/99 4.49% 4.81%
03/29/99 4.49% 4.80%
03/30/99 4.47% 4.82%
03/31/99 4.48% 4.82%
04/01/99 4.41% 4.80%
04/02/99 4.39% 4.84%
04/05/99 4.39% 4.81%
04/06/99 4.39% 4.82%
04/07/99 4.41% 4.80%
04/08/99 4.39% 4.80%
04/09/99 4.35% 4.79%
04/12/99 4.32% 4.79%
04/13/99 4.27% 4.79%
04/14/99 4.28% 4.80%
04/15/99 4.32% 4.80%
04/16/99 4.31% 4.77%
04/19/99 4.32% 4.79%
04/20/99 4.38% 4.78%
04/21/99 4.34% 4.80%
04/22/99 4.38% 4.78%
04/23/99 4.41% 4.76%
04/26/99 4.45% 4.77%
04/27/99 4.48% 4.73%
04/28/99 4.36% 4.78%
04/29/99 4.50% 4.79%
04/30/99 4.54% 4.78%
05/03/99 4.58% 4.78%
05/04/99 4.60% 4.79%
05/05/99 4.59% 4.80%
05/06/99 4.60% 4.79%
05/07/99 4.60% 4.79%
05/10/99 4.58% 4.78%
05/11/99 4.58% 4.79%
05/12/99 4.58% 4.79%
05/13/99 4.57% 4.79%
05/14/99 4.65% 4.80%
05/17/99 4.64% 4.83%
05/18/99 4.65% 4.81%
05/19/99 4.60% 4.85%
05/20/99 4.59% 4.83%
05/21/99 4.58% 4.84%
05/24/99 4.61% 4.84%
05/25/99 4.64% 4.83%
05/26/99 4.63% 4.83%
05/27/99 4.63% 4.85%
05/28/99 4.64% 4.86%
06/01/99 4.66% 4.86%
06/02/99 4.73% 4.86%
06/03/99 4.61% 4.89%
06/04/99 4.54% 4.86%
06/07/99 4.50% 4.91%
06/08/99 4.61% 4.89%
06/09/99 4.59% 4.90%
06/10/99 4.68% 4.90%
06/11/99 4.73% 4.91%
06/14/99 4.66% 5.00%
06/15/99 4.72% 5.00%
06/16/99 4.64% 5.01%
06/17/99 4.62% 4.99%
06/18/99 4.65% 5.00%
06/21/99 4.67% 5.00%
06/22/99 4.74% 5.01%
06/23/99 4.72% 5.03%
06/24/99 4.72% 5.03%
06/25/99 4.79% 5.06%
06/28/99 4.79% 5.13%
06/29/99 4.82% 5.12%
06/30/99 4.78% 5.17%
Source: BLOOMBERG L.P.
</TABLE>
Municipal short-term rates declined slowly during the first two months of the
year due to low issuance of short-term municipal securities coupled with strong
investor demand. As the April tax deadline approached and investors liquidated
their investments to pay taxes, reduced demand for short-term municipal
securities then caused yields to rise. This increase in yields gained momentum
in June as the Federal Reserve indicated a bias towards raising the
7
<PAGE>
MARKET OVERVIEW (continued)
Federal Funds Rate, which coincided with an increased supply of municipal
securities.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
90-DAY MUNICIPAL COMMERCIAL PAPER YIELD (WEEKLY)
<S> <C>
1/1/99 2.95%
1/8/99 2.85%
1/15/99 2.90%
1/22/99 2.85%
1/29/99 2.80%
2/5/99 2.70%
2/12/99 2.70%
2/19/99 2.70%
2/26/99 2.85%
3/5/99 3.00%
3/12/99 3.15%
3/19/99 3.15%
3/26/99 3.10%
4/2/99 3.10%
4/9/99 3.00%
4/16/99 3.15%
4/23/99 3.20%
4/30/99 3.20%
5/7/99 3.20%
5/14/99 3.15%
5/21/99 3.12%
5/28/99 3.10%
6/4/99 2.95%
6/11/99 3.10%
6/18/99 3.30%
6/25/99 3.50%
Source: BLOOMBERG L.P.
</TABLE>
NOTE: THIS MARKET OVERVIEW HAS BEEN PROVIDED BY THE PORTFOLIO MANAGEMENT
TEAM.
8
<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 a 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 a portfolio
manager for Wells Capital Management.
9
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 2.87% 3.08%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.91% 3.13%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 4.82% 5.18%
- --------------------------------------------------------------------------------------------
</TABLE>
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 taxable
money funds on a taxable-equivalent basis.(3) The figures below illustrate the
yield advantage on a taxable-equivalent basis for both classes of the fund's
shares compared to the average seven-day effective yield of 4.36% as of 6/29/99
for first-tier taxable money funds.(4)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Yield advantage over the average taxable money
fund 0.46% 0.82%
- --------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's expenses was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.70%,
2.74% and 4.54%, respectively, for Sweep Shares, and 2.90%, 2.94% and 4.87%,
respectively, for Value Advantage Shares.
(2) Taxable-equivalent yield assumes a 1999 maximum federal income tax rate of
39.60%.
(3) Income may be subject to state and local taxes and the federal alternative
minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of taxable money funds as of 6/29/99.
PORTFOLIO COMPOSITION
The Schwab Municipal Money Fund invests in high-quality, municipal money market
securities from state issuers around the country and from municipal agencies,
U.S. territories and possessions. The chart to the right illustrates the
composition of the fund's portfolio as of June 30, 1999, and is not indicative
of its holdings after that date. A complete list of the securities in the fund's
portfolio as of June 30, 1999 is provided in the Schedule of Investments later
in this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 53.9%
Tender Option Bonds 13.2%
Tax-Exempt Commercial Paper 10.0%
Put Bonds 9.0%
Anticipation Notes 8.5%
Revenue Bonds 3.5%
General Obligations & Certificates of
Participation 1.9%
</TABLE>
10
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 2.69% 2.89%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.73% 2.93%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 4.98% 5.35%
- --------------------------------------------------------------------------------------------
</TABLE>
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and California tax-exempt income
paid by the Schwab California Municipal Money Fund may provide you with higher
yields than taxable money funds on a taxable-equivalent basis.(3) The figures
below illustrate the yield advantage on a taxable-equivalent basis for both
classes of the fund's shares compared to the average seven-day effective yield
of 4.36% as of 6/29/99 for first-tier taxable money funds.(4)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Yield advantage over the average taxable money
fund 0.62% 0.99%
- --------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's expenses was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.51%,
2.54% and 4.64%, respectively, for Sweep Shares, and 2.71%, 2.75% and 5.02%,
respectively, for Value Advantage Shares.
(2) Taxable-equivalent yield assumes a 1999 maximum combined federal regular
income tax and California state personal rate of 45.22%.
(3) Income may be subject to the federal alternative minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of the taxable money funds as of
6/29/99.
PORTFOLIO COMPOSITION
The Schwab California Municipal Money Fund invests in high-quality money market
securities from California issuers and from municipal agencies, U.S. territories
and possessions. The chart to the right illustrates the composition of the
fund's portfolio as of June 30, 1999, and is not indicative of its holdings
after that date. A complete list of the securities in the fund's portfolio as of
June 30, 1999 is provided in the Schedule of Investments later in this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 49.1%
Anticipation Notes 19.6%
Tax-Exempt Commercial Paper 17.3%
Tender Option Bonds 8.8%
Other 5.2%
</TABLE>
11
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 2.79% 3.03%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 2.83% 3.07%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 5.25% 5.69%
- --------------------------------------------------------------------------------------------
</TABLE>
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and 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 taxable money funds on a taxable-equivalent
basis.(3) The figures below illustrate the yield advantage on a
taxable-equivalent basis for both classes of the fund's shares compared to the
average seven-day effective yield of 4.36% as of 6/29/99 for first-tier taxable
money funds.(4)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Yield advantage over the average taxable money
fund 0.89% 1.35%
- --------------------------------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's expenses was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.59%,
2.62% and 4.86%, respectively, for Sweep Shares, and 2.79%, 2.83% and 5.25%,
respectively, for Value Advantage Shares.
(2) Taxable-equivalent yield assumes a 1999 maximum combined federal income tax
and New York state and New York City personal rate of 46.05%.
(3) Income may be subject to the federal alternative minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of the taxable money funds as of
6/29/99.
PORTFOLIO COMPOSITION
The Schwab New York Municipal Money Fund invests in high-quality money market
securities from New York issuers and from municipal agencies, U.S. territories
and possessions. The chart to the right illustrates the composition of the
fund's portfolio as of June 30, 1999 and is not indicative of its holdings after
that date. A complete list of the securities in the fund's portfolio as of June
30, 1999 is provided in the Schedule of Investments later in this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 40.7%
Tender Option Bonds 22.8%
Anticipation Notes 14.2%
Tax-Exempt Commercial Paper 13.5%
General Obligations 5.5%
Revenue Bonds 3.3%
</TABLE>
12
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- --------------------------------------------------------------------
Seven-Day Yield 2.78%
- --------------------------------------------------------------------
Seven-Day Effective Yield 2.82%
- --------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 4.99%
- --------------------------------------------------------------------
</TABLE>
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and New Jersey 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
figure below illustrates the yield advantage on a taxable-equivalent basis of
the fund's shares compared to the average seven-day effective yield of 4.36% as
of 6/29/99 for first-tier taxable money funds.(4)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- --------------------------------------------------------------------
Yield advantage over the average taxable money
fund 0.63%
- --------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's fees was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.52%,
2.55% and 4.51%, respectively.
(2) Taxable-equivalent yield assumes a 1999 maximum combined federal regular
income and New Jersey state personal income tax rate of 43.45%.
(3) Income may be subject to the federal alternative minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of the taxable money funds as of
6/29/99.
PORTFOLIO COMPOSITION
The Schwab New Jersey Municipal Money Fund invests in high-quality money market
securities from New Jersey issuers and from municipal agencies, U.S. territories
and possessions. The chart to the right illustrates the composition of the
fund's portfolio as of June 30, 1999 and is not indicative of its holdings after
that date. A complete list of the securities in the fund's portfolio as of June
30, 1999 is provided in the Schedule of Investments later in this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 47.6%
Anticipation Notes 23.7%
Tender Option Bonds 11.5%
Revenue Bonds 7.3%
General Obligations 5.2%
Tax-Exempt Commercial Paper 4.7%
</TABLE>
13
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- --------------------------------------------------------------------
Seven-Day Yield 2.86%
- --------------------------------------------------------------------
Seven-Day Effective Yield 2.90%
- --------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 4.94%
- --------------------------------------------------------------------
</TABLE>
THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS
If you're in a high tax bracket, the federal and Pennsylvania tax-exempt income
paid by the Schwab Pennsylvania Municipal Money Fund may provide you with higher
yields than taxable money funds on a taxable-equivalent basis.(3) The figure
below illustrates the yield advantage on a taxable-equivalent basis of the
fund's shares compared to the average seven-day effective yield of 4.36% as of
6/29/99 for first-tier taxable money funds:(4)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- --------------------------------------------------------------------
Yield advantage over the average taxable money
fund 0.56%
- --------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's expenses was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.61%,
2.64% and 4.50%, respectively.
(2) Taxable-equivalent yield assumes a 1999 maximum combined federal regular
income and Pennsylvania state personal income tax rate of 41.29%.
(3) Income may be subject to the federal alternative minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of the taxable money funds as of
6/29/99.
PORTFOLIO COMPOSITION
The Schwab Pennsylvania Municipal Money Fund invests in high-quality money
market securities from Pennsylvania issuers and from municipal agencies, U.S.
territories and possessions. The chart to the right illustrates the composition
of the fund's portfolio as of June 30, 1999 and is not indicative of its
holdings after that date. A complete list of the securities in the fund's
portfolio as of June 30,1999 is provided in the Schedule of Investments later in
this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 59.2%
Tender Option Bonds 11.3%
Revenue Bonds 8.8%
Anticipation Notes 7.3%
Tax-Exempt Commercial Paper 4.0%
General Obligations and Put Bonds 6.5%
Other 2.9%
</TABLE>
14
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- --------------------------------------------------------------------
Seven-Day Yield 2.97%
- --------------------------------------------------------------------
Seven-Day Effective Yield 3.02%
- --------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 5.00%
- --------------------------------------------------------------------
</TABLE>
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 taxable
money funds on a taxable-equivalent basis.(3) The figure below illustrates the
yield advantage on a taxable-equivalent basis of the fund's shares compared to
the average seven-day effective yield of 4.36% as of 6/29/99 for first-tier
taxable money funds.(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 the average taxable money
fund 0.64%
- --------------------------------------------------------------------
</TABLE>
Represents seven-day period ended 6/29/99, the last day of the reporting period
for which IBC data was available. This relationship was not consistent
throughout the reporting period.
Please remember that money market fund yields fluctuate and that past
performance is no guarantee of future results.
(1) A portion of the fund's expenses was reduced during the reporting period.
Without this reduction, as of 6/30/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 2.65%,
2.68% and 4.44%, respectively.
(2) Taxable-equivalent yield assumes a 1999 maximum federal income tax rate of
39.6%.
(3) Income may be subject to the federal alternative minimum tax (AMT).
(4) Source: IBC Financial Data, Inc.'s weekly average seven-day yield for the
296 funds in the first-tier category of the taxable money funds as of
6/29/99.
PORTFOLIO COMPOSITION
The Schwab Florida Municipal Money Fund invests in high-quality money market
securities from Florida issuers and from municipal agencies, U.S. territories
and possessions. The chart to the right illustrates the composition of the
fund's portfolio as of June 30, 1999 and is not indicative of its holdings after
that date. A complete list of the securities in the fund's portfolio as of June
30, 1999 is provided in the Schedule of Investments later in this report.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 6/30/99
<S> <C>
Variable Rate Obligations 59.5%
Tax-Exempt Commercial Paper 13.2%
Tender Option Bonds 9.4%
Revenue Bonds 8.9%
Anticipation Notes 5.2%
Other 3.8%
</TABLE>
15
<PAGE>
FUND DISCUSSION
QUESTIONS TO THE
PORTFOLIO MANAGEMENT TEAM
Q. CAN YOU DESCRIBE THE SHORT-TERM INTEREST RATE ENVIRONMENT DURING THE
SIX-MONTH REPORTING PERIOD?
A. Short-term interest rates increased marginally, but remained within a narrow
range throughout most of the reporting period. The economy demonstrated
continued signs of growth, in part due to the accommodating financial conditions
resulting from the three Federal Funds Rate cuts in late 1998.
Until the April CPI report release, there had been no significant evidence of
accelerating inflation or any indication of potential Federal Reserve action.
Following the unexpectedly high April CPI report, the Federal Reserve adopted a
"tightening" bias in May and then, in June, announced an 0.25% increase in the
Federal Funds Rate and a return to a "neutral" bias. These developments caused
short-term rates to edge upward towards the end of the reporting period. The
Federal Reserve has expressed concern that a potential buildup of inflationary
imbalances could undermine the favorable performance of the economy. Although
not universally anticipated, many market observers expect there will be at least
one additional 0.25% increase in the Federal Funds Rate
by year-end.
Short-term municipal yields declined slowly during the first part of the year as
a result of low issuance of short-term municipal securities by municipalities
coupled with strong investor demand. As the April tax deadline approached and
investors liquidated their investments, lower demand for short-term municipal
securities then caused yields to rise. The increase in yields gained momentum as
the Federal Reserve first indicated a bias towards raising rates, and then
subsequently did raise rates at the end of June. The additional supply created
by the beginning of note season in early June also contributed to the increasing
yield environment.
Q. HOW HAS THE PORTFOLIO MANAGEMENT TEAM ADJUSTED EACH FUND'S PORTFOLIO TO
RESPOND TO CHANGES IN INTEREST RATES?
A. We managed the dollar weighted average maturity (DWAM) for the portfolios in
order to capitalize on the seasonal cycles typical of short-term municipal
securities markets. In anticipation of lower rates for demand notes in January
1999, we took the opportunity to extend the maturities of the funds at the end
of December 1998. This strategy enabled the funds to lock in higher rates and to
be insulated from the lower rates typical of demand notes issued in January.
Due to the uncertainty related to a possible change in interest rates by the
Federal Reserve and decreased short-term municipal securities issuance (down 20%
January-May vs. same period in 1998), the funds maintained a somewhat neutral
strategy throughout most of the reporting period, with DWAMs comparable to other
funds with similar investment objectives. The portfolio managers then began
extending the DWAMs in June to take advantage of the increased seasonal note
supply.
<TABLE>
<CAPTION>
DATE MUNICIPAL CALIFORNIA NEW YORK NEW JERSEY PENNSYLVANIA FLORIDA
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
12/31/98 39 days 49 days 45 days 49 days 50 days 53 days
- ------------------------------------------------------------------------------------
06/30/99 66 days 72 days 59 days 71 days 62 days 43 days
- ------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN CALIFORNIA?
A. California continues to enjoy a sustained economic recovery with employment
and income growth continuing to exceed expectations. Employment growth in 1998
was 3.5% compared to the 3.0% achieved in 1997, and well above the national rate
of 2.6%. Looking forward, it is anticipated that California will see continued
moderate growth across most industry sectors with some, such as those heavily
dependent on exporting goods and services to Asia, growing at a much slower
pace. However, the impact of the economic weakness in Asia should be somewhat
offset by strong export growth to Mexico and increasing exports to Europe,
Canada and the Middle East.
The continued state economic improvement has allowed budget reserves to
accumulate as well as an easing of some of the spending restrictions imposed
during the last recession. By the end of the 1998-99 budget fiscal year, the
state is expected to have a budget surplus of approximately $2.4 billion. As a
result, the state budget will be adopted on time for the first time in many
years. 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.
We are satisfied that the California securities held by the funds represent
minimal credit risk and we will, as always, continue to monitor the state's
economic situation closely. California's current credit ratings are Aa3 from
Moody's Investor Service, A+ from Standard & Poor's Corporation, and AA- from
Fitch IBCA, Inc., three well-known rating agencies.
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 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
but actually experienced a 1.9% increase, the highest level during the last 10
years. Economic growth may continue to be constrained by ongoing structural
changes in the economy such as corporate downsizing or relocation and cutbacks
in defense spending.
In spite of budgetary surpluses in seven of the last eight years, New York still
faces the challenge of resolving longstanding general fund imbalances. Receipts
in fiscal 1999 were revised at mid-year but still exceeded projections by $750
million. The total surplus of $1.78 billion has been earmarked to offset tax
cuts enacted in the last three years which total $3.5 billion. The difference
between the surplus and the tax cuts is expected to be met by continued strong
revenue growth and spending at levels below inflation. Although 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 on the financial services sector is a
weakness, given it is unlikely the sector will continue to produce the
outstanding results of the last three years.
17
<PAGE>
FUND DISCUSSION (continued)
We are satisfied that the New York securities held by the funds represent
minimal credit risk and we will continue to monitor that 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.
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 the state's 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 between 1991 to 1996
registering less than half the national rate. A spike in job growth in 1997
allowed the state to return to its pre-recession level of total employment;
however, continued economic growth may be constrained by ongoing structural
changes in the economy such as corporate downsizing or relocation.
Over the last few years, increasing tax revenues, use of non-recurring financial
resources and spending controls have generated excess revenues that provide the
state with a financial cushion of approximately 9% of its annual expenditures.
With no new taxes and a focus on educational and environmental spending, the
state's 1999 budget generally follows the pattern of prior years. Also as in
prior years, higher spending is expected to be offset by a 5% increase in total
revenue. Therefore, while the state may see higher revenues over the next twelve
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 on the
financial services sector is a weakness, given it is unlikely the sector will
continue to produce the outstanding results of the last three years.
We are satisfied that the New Jersey securities held by the funds represent
minimal credit risk and we will continue to monitor that 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.
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 between 1991 to 1996 registering less
than half the national rate. This slow but steady pace of job growth, coupled
with a somewhat better showing in 1997, brought the state's total employment to
7% above its pre-recession peak. Continued economic growth may be constrained by
ongoing structural changes in the economy, especially within the manufacturing
sector.
Pennsylvania has generated operating surpluses in each of the last seven years
allowing the state to make contributions to its Rainy Day Fund, which now totals
more than $982 million or approximately 5% of 1999 revenues. The state's 2000
budget was adopted prior to
18
<PAGE>
the start of the new fiscal year on July 1, and generally follows the governor's
proposal of additional tax relief for both corporations and individuals and an
expected use of most of the accumulated General Fund surplus. Given the
historically conservative revenue growth projections, the state is not expected
to make a significant draw on its reserves in fiscal 2000. However, future
economic growth may be slower than projected and, therefore, may cause budgetary
constraints leading to spending reductions and possible depletion of accumulated
reserves.
We are satisfied that the Pennsylvania securities held by the funds represent
minimal credit risk and we will continue to monitor that 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.
Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN FLORIDA?
A. Sustained rapid growth has led to Florida becoming the fourth largest state
in the nation. The state's economy continues to diversify into trade, services,
finance and exports, thus greatly reducing a 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. Florida continues to successfully meet the challenge of funding
growth while maintaining a balanced budget through a combination of budgetary
control and management restraint during periods of economic weakness. With sales
tax revenues accounting for approximately 70% of total revenues, Florida has
taken steps to increase its financial reserves by adding to the Budget
Stabilization Fund. Through the 1999 fiscal year, the Budget Stabilization Fund
has grown to about 5% of General Fund revenues, bringing the state to its
target.
We are satisfied that the Florida securities held by the funds represent minimal
credit risk and we will continue to monitor that 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.
19
<PAGE>
GLOSSARY OF TERMS
COMMERCIAL PAPER--Short-term 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 values 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--Generally, 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) is 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.
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.
20
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- ------------------------------------------------------------------------------
Last seven days 2.87% 3.08%
- ------------------------------------------------------------------------------
Last three months 2.68% 2.89%
- ------------------------------------------------------------------------------
Last 12 months 2.65% 2.86%
- ------------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 72.4% 69.5%
- -----------------------------------------------------------
16-30 days 0.2% 2.3%
- -----------------------------------------------------------
31-60 days 7.0% 4.8%
- -----------------------------------------------------------
61-90 days 6.2% 3.1%
- -----------------------------------------------------------
91-120 days 6.5% 2.7%
- -----------------------------------------------------------
More than 120 days 7.7% 17.6%
- -----------------------------------------------------------
Weighted average 35 days 66 days
- -----------------------------------------------------------
</TABLE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- ------------------------------------------------------------------------------
Last seven days 2.69% 2.89%
- ------------------------------------------------------------------------------
Last three months 2.48% 2.68%
- ------------------------------------------------------------------------------
Last 12 months 2.34% 2.55%
- ------------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 68.3% 64.9%
- -----------------------------------------------------------
16-30 days 0.3% 3.8%
- -----------------------------------------------------------
31-60 days 5.0% 5.8%
- -----------------------------------------------------------
61-90 days 8.0% 5.5%
- -----------------------------------------------------------
91-120 days 9.7% 3.2%
- -----------------------------------------------------------
More than 120 days 8.7% 16.8%
- -----------------------------------------------------------
Weighted average 36 days 72 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.
21
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB NEW YORK MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- ------------------------------------------------------------------------------
Last seven days 2.79% 3.03%
- ------------------------------------------------------------------------------
Last three months 2.57% 2.81%
- ------------------------------------------------------------------------------
Last 12 months 2.50% 2.74%
- ------------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 70.0% 67.2%
- -----------------------------------------------------------
16-30 days 1.0% 0.0%
- -----------------------------------------------------------
31-60 days 7.3% 10.4%
- -----------------------------------------------------------
61-90 days 5.9% 5.1%
- -----------------------------------------------------------
91-120 days 3.3% 2.9%
- -----------------------------------------------------------
More than 120 days 12.5% 14.4%
- -----------------------------------------------------------
Weighted average 44 days 59 days
- -----------------------------------------------------------
</TABLE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- ------------------------------------------------------------
Last seven days 2.78%
- ------------------------------------------------------------
Last three months 2.53%
- ------------------------------------------------------------
Last 12 months 2.59%
- ------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 60.7% 65.0%
- -----------------------------------------------------------
16-30 days 0.0% 3.4%
- -----------------------------------------------------------
31-60 days 11.9% 1.1%
- -----------------------------------------------------------
61-90 days 8.0% 5.7%
- -----------------------------------------------------------
91-120 days 3.0% 1.8%
- -----------------------------------------------------------
More than 120 days 16.4% 23.0%
- -----------------------------------------------------------
Weighted average 60 days 71 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.
22
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- ------------------------------------------------------------
Last seven days 2.86%
- ------------------------------------------------------------
Last three months 2.68%
- ------------------------------------------------------------
Last 12 months 2.71%
- ------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 74.1% 71.8%
- -----------------------------------------------------------
16-30 days 2.1% 2.2%
- -----------------------------------------------------------
31-60 days 0.1% 2.0%
- -----------------------------------------------------------
61-90 days 5.3% 1.6%
- -----------------------------------------------------------
91-120 days 4.6% 1.8%
- -----------------------------------------------------------
More than 120 days 13.8% 20.6%
- -----------------------------------------------------------
Weighted average 42 days 62 days
- -----------------------------------------------------------
</TABLE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 6/30/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- ------------------------------------------------------------
Last seven days 2.97%
- ------------------------------------------------------------
Last three months 2.74%
- ------------------------------------------------------------
Last 12 months 2.70%
- ------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99
<S> <C> <C>
- -----------------------------------------------------------
0-15 days 69.2% 74.0%
- -----------------------------------------------------------
16-30 days 2.5% 4.1%
- -----------------------------------------------------------
31-60 days 14.4% 3.2%
- -----------------------------------------------------------
61-90 days 4.1% 5.4%
- -----------------------------------------------------------
91-120 days 3.1% 2.2%
- -----------------------------------------------------------
More than 120 days 6.7% 11.1%
- -----------------------------------------------------------
Weighted average 31 days 43 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.
23
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------- -------
VARIABLE RATE OBLIGATIONS -- 55.9% (b)(f)
ALABAMA -- 0.6%
Alabama State IDA (Scientific Project)
4.05%, 07/07/99 $3,235 $3,235
Alabama State IDA RB (Cash Value
Project)
3.75%, 07/07/99 3,050 3,050
Birmingham, Alabama GO
Series 1992A
3.55%, 07/07/99 5,600 5,600
Birmingham, Alabama Unlimited GO
Refunding Bonds Series 1995
3.65%, 07/07/99 3,900 3,900
Citronelle, Alabama IDB Pollution
Control Revenue Refunding Bonds
(AKZO Chemicals, Inc. Project)
3.75%, 07/07/99 1,100 1,100
Decatur, Alabama IDB Solid Waste
Disposal RB (Trico Steel Project)
Series 1997
3.55%, 07/07/99 5,700 5,700
Decatur, Alabama IDRB (Alabama
Farmers Corp.)
3.65%, 07/07/99 2,900 2,900
Dothan, Alabama IDB RB (Baxley
Blowpipe Project)
3.80%, 07/07/99 800 800
Fort Payne, Alabama IDA Base Tax
Exempt Adjustable Mode IDRB
(Charleston Hosiery Project)
Series 1997
3.55%, 07/07/99 2,000 2,000
Headland, Alabama IDA (Golden
Peanut Project)
3.80%, 07/07/99 4,000 4,000
Indian Springs Village, Alabama
Additional Building Authority RB
(Jbruno Academy Project)
3.60%, 07/07/99 1,600 1,600
Mobile, Alabama IDB IDRB (Holman
Inc. Project)
3.85%, 07/07/99 1,000 1,000
Mobile County, Alabama IDB Pollution
Control Revenue Refunding Bonds
(Ultraform Co. Project) Series 1995A
3.65%, 07/07/99 7,480 7,480
Par Value
------- -------
Mobile County, Alabama IDB RB
(Ultraform Co. Project) Series B
3.65%, 07/07/99 $ 1,000 $ 1,000
Scottsboro, Alabama GO
3.65%, 07/07/99 4,830 4,830
Tuscaloosa, Alabama IDRB (Knight
Special Project)
3.70%, 07/07/99 1,180 1,180
-------
49,375
-------
ARIZONA -- 1.2%
Arizona Educational Loan Marketing
Corp. RB Series A
3.55%, 07/07/99 12,605 12,605
Arizona Health Facilities Authority
Hospital System RB (Arizona
Volunteer Hospital Federation)
Series 1985A
3.60%, 07/07/99 11,270 11,270
Arizona Health Facilities Authority
Hospital System RB (Arizona
Volunteer Hospital Federation)
Series 1985B
3.60%, 07/07/99 8,940 8,940
Arizona Health Facilities Authority
Hospital System RB (Northern
Arizona Health Care) Series 1996B
3.60%, 07/07/99 26,500 26,500
Arizona Health Facilities Authority
Hospital System RB (Samcor Project)
1986 Loan Pool
3.60%, 07/07/99 6,240 6,240
Phoenix, Arizona Civic Improvement
Excise Tax RB (Airport
Improvements)
3.50%, 07/07/99 1,000 1,000
Phoenix, Arizona IDA RB (Vaw
America Inc. Project)
3.95%, 07/07/99 3,000 3,000
Tempe, Arizona Excise Tax RB
3.55%, 07/01/99 300 300
Warren Park, Arizona Solid Waste
Disposal RB (Potlatch Corp. Project)
3.85%, 07/07/99 1,000 1,000
Yavapai County, Arizona IDRB
(Yavapai Regional Medical Center)
3.60%, 07/07/99 14,100 14,100
24
<PAGE>
Par Value
------- -------
Yuma County, Arizona IDA M/F
Housing RB (El Encanto Apartments)
Series A
3.65%, 07/07/99 $2,915 $ 2,915
Yuma County, Arizona IDA RB
(Meadowcraft, Inc. Project)
Series 1997
3.95%, 07/01/99 1,000 1,000
-------
88,870
-------
ARKANSAS -- 0.2%
Arkansas Development Finance
Authority IDRB (C&C Holding Co.
Project) Series 1998
3.95%, 07/07/99 1,600 1,600
Independance County, Arkansas IDRB
(Townsends of Arkansas, Inc. Project)
3.75%, 07/07/99 9,000 9,000
Independence County, Arkansas IDRB
(Ideal Baking Project)
3.95%, 07/07/99 6,200 6,200
------
16,800
------
CALIFORNIA -- 0.7%
California Health Facilities Financing
Authority RB (Catholic Healthcare
West) Series 1997B
3.00%, 07/07/99 200 200
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series 1987C1
3.40%, 07/07/99 48,700 48,700
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series E1
3.60%, 07/07/99 5,000 5,000
California Statewide Community
Development Authority COP
3.20%, 07/01/99 30 30
------
53,930
------
COLORADO -- 2.9%
Adams County, Colorado Economic
Development Authority Tax Increment
RB (Westminster Plaza Urban
Renewal Project)
3.80%, 07/07/99 6,460 6,460
Par Value
------- -------
Adams County, Colorado IDRB
(City View Park Project) Series 1985
3.65%, 07/07/99 $ 5,700 $ 5,700
Arapahoe County, Colorado Industrial
Development Revenue Refunding
Bonds (Denver Jet Center Project)
Series 1997
3.55%, 07/01/99 1,000 1,000
Central City, Colorado M/F Housing
RB (Gold Mountain Apartment
Project)
3.60%, 07/07/99 8,250 8,250
Colorado Health Facilities Authority
RB (National Benevolent Assoc.
Project)
3.65%, 07/07/99 1,650 1,650
Colorado Health Facilities Authority
RB (North Colorado Medical Center
Project)
3.70%, 07/07/99 3,300 3,300
Colorado Student Obligation Bond
Authority Student Loan RB
(Colorado University) Series 1990A
3.55%, 07/07/99 14,400 14,400
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1989A
3.55%, 07/07/99 29,400 29,400
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1999A2
3.55%, 07/07/99 10,000 10,000
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1999A3
3.55%, 07/07/99 15,000 15,000
Denver, Colorado City & County
Airport System RB (Robinson Dairy
Project)
3.75%, 07/07/99 4,275 4,275
Denver, Colorado City & County
Airport System RB Series 1992D
3.55%, 07/07/99 49,400 49,400
Denver, Colorado City & County
Airport System RB Series 1992F
3.55%, 07/07/99 16,000 16,000
25
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- --------
Denver, Colorado City & County
Airport System RB Series 1992G
3.55%, 07/07/99 $20,000 $ 20,000
Douglas County, Colorado M/F
Housing RB (Autumn Chase Project)
3.75%, 07/07/99 1,400 1,400
El Paso County, Colorado RB
(Colorado Springs World Arena)
3.62%, 07/07/99 4,500 4,500
Lowry, Colorado Economic
Redevelopment Authority RB
Series A
3.45%, 07/07/99 8,900 8,900
Pueblo County, Colorado IDRB
(Kaiser Aerospace & Electric)
3.90%, 07/07/99 5,600 5,600
Smith Creek, Colorado Metropolitan
District RB Series 1997
3.80%, 07/07/99 2,250 2,250
Wheatridge County, Colorado IDRB
(Leaf Inc. Project)
3.75%, 07/07/99 5,000 5,000
--------
212,485
--------
DELAWARE -- 0.2%
Delaware State Economic Development
Authority RB (Hospital Billing
Collection Project) Series C
3.55%, 07/07/99 10,000 10,000
Sussex County, Delaware RB
(Baywood LLC Project) Series A
3.75%, 07/07/99 2,400 2,400
-------
12,400
-------
FLORIDA -- 6.3%
Alachua County, Florida Health
Facilities Authority RB (Shands
Teaching Hospital Clinic Project)
Series 1996
3.30%, 07/07/99 5,900 5,900
Arcadia, Florida Hospital RB (Desoto
Memorial Hospital Project)
3.65%, 07/07/99 1,920 1,920
Bradford County, Florida Health
Facilities Authority RB (Shands
Teaching Hospital Clinic Project)
Series 1996
3.30%, 07/07/99 4,300 4,300
Par Value
-------- --------
Broward County, Florida Port
Facilities Revenue Refunding Bonds
(Sub Port Everglades Project)
3.75%, 07/07/99 $30,300 $30,300
Collier County, Florida HFA M/F
Housing RB (River Beach Project)
Series 1985
3.50%, 07/07/99 4,000 4,000
Dade County, Florida Health Facilities
Authority Hospital RB (Miami
Children's Hospital Project)
3.30%, 07/07/99 450 450
Dade County, Florida IDA RB
(Dolphins Stadium Project)
Series 1985C
3.50%, 07/07/99 600 600
Dade County, Florida IDA RB (June
Leasing Corp. Project) Series 1995
3.90%, 07/07/99 1,120 1,120
Dade County, Florida IDA RB
(Micheal-Ann Russell Jewish
Community Center Project)
Series 1997
3.75%, 07/07/99 4,900 4,900
Dade County, Florida Water & Sewer
System Series 1994
3.30%, 07/07/99 8,300 8,300
Escambia County, Florida Health
Facilities Authority Hospital RB
(Charity Obligation Group Project)
3.35%, 07/07/99 5,500 5,500
Eustis, Florida Multi-Purpose RB
3.75%, 07/07/99 3,610 3,610
Florida Capital Financing Authority RB
(Capital Project Loan Program
Project) Series 1997A
3.65%, 07/07/99 22,610 22,610
Florida HFA Housing RB (Tiffany
Club Project) Series 1996P
3.55%, 07/07/99 1,875 1,875
Florida HFA M/F Housing RB
(Cornerstone Imaging Project)
Series 1985B
3.50%, 07/07/99 8,760 8,760
Florida Municipal Power Agency
Revenue Refunding Bonds
(Stanton II Project) Series 1997
3.25%, 07/07/99 18,200 18,200
26
<PAGE>
Par Value
-------- --------
Florida Ocean Highway & Port
Authority RB Series 1990
3.75%, 07/07/99 $ 2,400 $ 2,400
Florida State Finance Authority
(Florida Hospital Association -
Capital Projects Loan Program)
Series 1998A
3.50%, 07/07/99 28,800 28,800
Gulf Breeze, Florida RB (Local
Government Loan Program)
Series 1985B
3.65%, 07/07/99 10,950 10,950
Highlands County, Florida Health
Facilities Authority RB (Adventist
Health Systems Project) Series 1996B
3.75%, 07/07/99 19,600 19,600
Highlands County, Florida Health
Facilities Authority RB (Adventist
Health Systems Project) Series 1997A
3.75%, 07/07/99 20,000 20,000
Hillsborough County, Florida M/F
Housing RB (Brandon Crossing)
3.85%, 07/07/99 100 100
Indian Trace, Florida Community
Development District (Broward
County Florida Basin 1 Water)
3.30%, 07/07/99 2,200 2,200
Jacksonville, Florida Health Facilities
Authority RB (River Garden Project)
Series 1994
3.45%, 07/07/99 1,045 1,045
Jacksonville, Florida Industrial
Development Revenue Refunding
Bonds (Pavilion Associates Project)
3.45%, 07/07/99 3,400 3,400
Jacksonville, Florida Industrial
Development Revenue Refunding
Bonds (St. John's Medical Investors
Ltd. Project)
3.45%, 07/07/99 140 140
Jacksonville, Florida RB (Capital
Project)
3.45%, 07/07/99 19,900 19,900
Lee County, Florida HFA M/F Housing
RB (Cape Coral Apartments Project)
Series 1999A
3.71%, 07/07/99 6,160 6,160
Par Value
-------- --------
Lee County, Florida IDA Educational
Facilities RB (Canterbury School
Project) Series 1998
3.75%, 07/07/99 $ 4,500 $ 4,500
Manatee County, Florida HFA M/F
Housing RB (Hampton McGuire
Project) Series 1989A
3.25%, 07/01/99 85 85
Marion County, Florida HFA M/F
Housing RB (Paddock Project)
Series 1985F
3.75%, 07/07/99 1,000 1,000
Miami, Florida HFA RB (Jewish Home
for the Aged, Inc. Project) Series 1996
3.75%, 07/07/99 7,650 7,650
Miami-Dade County, Florida IDA IDRB
(Arctic Partners Project)
3.85%, 07/07/99 3,000 3,000
Miami-Dade County, Florida IDRB
(Airbus Service Co. Project)
Series 1998A
3.60%, 07/07/99 300 300
Nassua County, Florida Pollution
Control RB (Rayonier Project)
Series 1999
3.45%, 07/07/99 5,200 5,200
Orange County, Florida Educational
Facilities Authority Educational
Facilities RB (Rollins College Project)
Series 1999
3.75%, 07/07/99 8,200 8,200
Orange County, Florida HFA M/F
Housing RB (Andover Place
Apartments)
3.60%, 07/07/99 4,370 4,370
Orange County, Florida HFA M/F
Housing RB (Smokewood Project)
Series 1992A
3.75%, 07/07/99 2,200 2,200
Orange County, Florida IDA (Center
For Drug Free Living Project)
3.75%, 07/07/99 10,300 10,300
Orlando, Florida Special Assessment
RB (Republic Drive Interchange
Project)
3.45%, 07/07/99 24,550 24,550
27
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- -------
Palm Beach County, Florida HDA M/F
Revenue Refunding Bonds
(Spinnaker Landing Project)
3.80%, 07/07/99 $ 3,145 $ 3,145
Palm Beach County, Florida HFA M/F
Housing Facilities (Haverhill Project)
Series 1997A
3.75%, 07/07/99 7,500 7,500
Palm Beach County, Florida HFA
Revenue Refunding Bonds (Joseph
L. Morse Geriatric Center Project)
3.55%, 07/07/99 8,500 8,500
Palm Beach County, Florida RB
(Benjamin Private School Project)
3.75%, 07/07/99 6,000 6,000
Palm Beach County, Florida RB
(Norton Gallery Art School Project)
Series 1995
3.60%, 07/07/99 200 200
Pasco County, Florida School Board
COP
3.60%, 07/07/99 59,870 59,870
Pinellas County, Florida Independent
Council RB (Operation Par, Inc.
Project) Series 1999
3.50%, 07/07/99 7,000 7,000
Plant City, Florida Hospital RB
(Southern Florida Baptist Hospital
Project)
3.65%, 07/07/99 1,720 1,720
Polk County, Florida IDA RB
(Pavermodule Inc. Project)
3.80%, 07/07/99 1,000 1,000
Polk County, Florida IDA RB (Young
Florida Project) Series 1996
3.85%, 07/07/99 290 290
SouthEast Volusia, Florida Hospital
District RB (Bert Fish Medical Center
Project) Series 1995
3.55%, 07/07/99 11,700 11,700
Suwannee County, Florida Health
Facilities Authority RB (Shands
Teaching Hospital Clinic Project)
Series 1996
3.30%, 07/07/99 4,500 4,500
Tampa, Florida Health Care Facilities
RB (Lifelink Foundation Inc., Project)
3.75%, 07/07/99 5,500 5,500
Par Value
-------- --------
Tampa, Florida Occupational License
Tax RB Series 1996A
3.30%, 07/07/99 $ 9,500 $ 9,500
University of South Florida
Foundation COP
3.30%, 07/07/99 23,100 23,100
Volusia County, Florida Health
Finance Authority RB (South West
Volusia Health Project) Series 1994A
3.65%, 07/07/99 8,600 8,600
--------
466,520
--------
GEORGIA -- 3.8%
Athens-Clarke, Jackson & Morgan
County, Georgia IDRB (Mayfield
Dairy Farms Inc. Project)
3.75%, 07/07/99 7,350 7,350
Bartow County, Georgia IDRB
(Bartow Paving Co. Project)
3.75%, 07/07/99 2,800 2,800
Bartow County, Georgia IDRB
(Matthew Contracting Project)
3.90%, 07/07/99 4,800 4,800
Cartersville, Georgia Development
Authority IDRB (Cartersville
Facilities Project)
3.75%, 07/07/99 2,960 2,960
Cherokee County, Georgia IDRB
(Universal Alloy)
3.75%, 07/07/99 4,900 4,900
Clayton County, Georgia IDRB
(Wilson Holdings Project)
3.80%, 07/07/99 1,700 1,700
Cobb County, Georgia HFA M/F
Housing RB (Walton Green Project)
3.75%, 07/07/99 6,300 6,300
Cobb County, Georgia HFA M/F
Housing RB (Williamstown
Apartment Project)
3.55%, 07/07/99 2,200 2,200
Crisp County, Georgia Solid Waste
Management
3.80%, 07/07/99 20,000 20,000
Dekalb County, Georgia Development
Authority IDRB (Arbor Montessori
School Project)
3.75%, 07/07/99 1,100 1,100
28
<PAGE>
Par Value
-------- -------
Dekalb County, Georgia Development
Authority IDRB (Siemens Energy,
Inc. Project)
3.70%, 07/07/99 $ 3,750 $ 3,750
Dekalb County, Georgia Development
Authority IDRB (Truman Properties
Limited Liability Corp. Project)
3.75%, 07/07/99 2,700 2,700
Dekalb County, Georgia Development
Authority IDRB (Vimco Project)
3.80%, 07/07/99 1,625 1,625
Dekalb County, Georgia HFA M/F
Housing RB (Wood Hills Apartment
Project)
3.50%, 07/07/99 5,250 5,250
Douglas County, Georgia IDA RB
(Blue Circle Project)
3.90%, 07/07/99 3,800 3,800
Douglas County, Georgia IDA Revenue
Refunding Bonds (Mima Inc. Project)
3.75%, 07/07/99 4,300 4,300
Fayette County, Georgia IDRB
(Norman W. Paschell Co. Project)
3.85%, 07/07/99 1,100 1,100
Fulton County, Georgia Development
Authority RB (Atlanta International
School Project)
3.75%, 07/07/99 3,000 3,000
Fulton County, Georgia Development
Authority RB (Woodruff Arts Center
Project)
3.65%, 07/07/99 10,000 10,000
Georgia Municipal Gas Authority RB
(Gas Portfolio II Project) Series B
3.30%, 07/07/99 1,900 1,900
Gwinnett County, Georgia HFA M/F
Housing RB
3.35%, 07/07/99 5,000 5,000
Hart County, Georgia Industrial
Building Authority IDRB (AWH
Corp. Project)
3.75%, 07/07/99 6,000 6,000
Hart County, Georgia Industrial
Building Authority RB (Dundee
Mills Project)
3.80%, 07/07/99 2,865 2,865
Par Value
------- -------
Jefferson County, Georgia
Development Authority IDRB
(Grove River Mills Project)
Series 1997
3.75%, 07/07/99 $ 3,500 $ 3,500
Lafayette, Georgia Development
Authority RB (Dixie Group Project)
3.80%, 07/07/99 3,000 3,000
Laurens County, Georgia Development
Authority Solid Waste Disposal RB
(Southeast Paper Manufacturing
Co. Project)
3.75%, 07/07/99 51,000 51,000
Macon-Bibb County, Georgia Hospital
Authority RB (The Medical Center
of Central Georgia Project)
Series 1998
3.75%, 07/07/99 4,000 4,000
Richmond County, Georgia
Development Authority Solid Waste
Disposal RB (South Evergreen Nylon
Recycling Project) Series 1999
3.45%, 07/07/99 5,900 5,900
Richmond County, Georgia IDA RB
(BOK Group Project)
3.65%, 07/07/99 5,000 5,000
Roswell, Georgia HFA M/F Housing
RB (Gables Realty Wood Crossing
Project)
3.65%, 07/07/99 11,650 11,650
Savannah, Georgia Economic
Development Authority RB
(Georgia Kaolin Inc.)
3.90%, 07/07/99 11,000 11,000
Savannah, Georgia Economic
Development Authority RB (Home
Depot Project) Series 1995B
3.75%, 07/07/99 5,000 5,000
Savannah, Georgia HFA M/F Housing
RB (Chatham Gardens Project)
Series 1997
3.80%, 07/07/99 2,995 2,995
Smyrna, Georgia HFA M/F Housing
RB (Walton Park Project)
3.75%, 07/07/99 8,000 8,000
Smyrna, Georgia HFA M/F Housing RB
(Walton Park Project Phase 2)
3.75%, 07/07/99 13,100 13,100
29
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- --------
Sugar Hill, Georgia HFA M/F Housing
RB (Level Creek Apartments Project)
3.90%, 07/07/99 $12,790 $ 12,790
Summerville, Georgia Development
Authority RB (Image Industry
Project) Series 1997
3.90%, 07/07/99 9,000 9,000
Thomaston-Upson County, Georgia
IDA IDRB (Southern Mills Project)
Series 1999
3.80%, 07/07/99 4,940 4,940
Thomasville, Georgia Payroll
Development Authority (Brit Corp.
Project)
3.95%, 07/01/99 3,000 3,000
Webster County, Georgia IDA IDRB
(Tolleson Lumber Co., Inc. Project)
3.75%, 07/01/99 8,000 8,000
Winder-Barrow, Georgia Industrial
Building Authority IDRB
(Concrete Co. Project)
4.05%, 07/07/99 4,800 4,800
Worth County, Georgia IDA Revenue
Refunding Bonds (Seabrook Project)
Series 1996B
3.80%, 07/07/99 1,400 1,400
--------
273,475
--------
HAWAII -- 0.3%
Hawaii Department of Budget &
Finance Special Purpose Mortgage RB
(Adventist Health System West)
3.40%, 07/07/99 7,600 7,600
Hawaii Student Loan RB (Secondary
Market Services Corp.) Series 1995-II
3.60%, 07/07/99 8,100 8,100
Honolulu, Hawaii City & County M/F
Housing RB (Iolani Regents Project)
Series 1990A
3.55%, 07/07/99 8,950 8,950
--------
24,650
--------
IDAHO -- 0.3%
Custer County, Idaho IDRB Solid Waste
Disposal (Hecla Mining Co. Project)
3.95%, 07/07/99 4,500 4,500
Par Value
------- -------
Idaho HFA Housing RB (Assisted
Living Concepts Project)
3.70%, 07/07/99 $ 875 $ 875
Idaho Student Loan RB Series A
3.60%, 07/07/99 16,800 16,800
-------
22,175
-------
ILLINOIS -- 5.7%
Aurora, Kane, & Dupage Counties,
Illinois IDRB (North American
Plastics Corp. Project)
3.80%, 07/07/99 5,400 5,400
Bartlett, Illinois M/F Housing RB
(Bartlett Square Apartments)
Series 1995A
3.75%, 07/07/99 3,725 3,725
Batavia, Illinois Development RB
(American Industrial Technologies)
3.75%, 07/07/99 2,200 2,200
Carol Stream, Illinois M/F Housing
Revenue Refunding Bonds
(St. Charles Square Project)
3.65%, 07/07/99 4,415 4,415
Centralia, Illinois IDA RB
(Consolidated Foods Corp. &
Hollywood Brands, Inc. Project)
3.65%, 07/07/99 4,500 4,500
Chicago, Illinois IDRB (Morse
Automotive Project) Series 1995
3.65%, 07/07/99 2,400 2,400
Chicago, Illinois O'Hare International
Airport RB ACES (General Airport
Second Lien) Series B1
3.40%, 07/07/99 14,100 14,100
Chicago, Illinois O'Hare International
Airport RB ACES (General Airport
Second Lien) Series B2
3.40%, 07/07/99 14,100 14,100
Chicago, Illinois O'Hare International
Airport Special Facility RB
3.60%, 07/07/99 30,500 30,500
East Dundee, Kane & Cook Counties,
Illinois IDRB (Otto Engine Project)
3.75%, 07/07/99 2,375 2,375
Elmhurst, Illinois IDRB (ELM
Machining Corp. Project)
3.65%, 07/07/99 3,290 3,290
30
<PAGE>
Par Value
------- -------
Glendale Heights, Illinois IDRB (York
Corrugated Container Project)
3.80%, 07/07/99 $ 1,600 $ 1,600
Hampshire, Illinois IDRB (Poli-Film
America Project) Series 1998A
3.95%, 07/07/99 6,700 6,700
Huntley, Illinois IDRB (Colony Inc.
Project)
3.80%, 07/07/99 3,500 3,500
Illinois Development Finance Authority
(Anatol Enterprises)
3.65%, 07/07/99 4,000 4,000
Illinois Development Finance Authority
(Chicago Academy of Science Project)
Series 1998
3.55%, 07/07/99 5,700 5,700
Illinois Development Finance Authority
(Palos Common Hospital Project)
Series 1998
3.62%, 07/07/99 10,000 10,000
Illinois Development Finance Authority
(Roll Service Inc. Project)
3.65%, 07/07/99 2,230 2,230
Illinois Development Finance Authority
(Wheaton Academy Project)
3.55%, 07/07/99 8,000 8,000
Illinois Development Finance Authority
IDRB (Arc Tronics Inc. Project)
3.65%, 07/07/99 2,800 2,800
Illinois Development Finance Authority
IDRB (Camcraft Inc. Project)
3.75%, 07/07/99 3,000 3,000
Illinois Development Finance Authority
IDRB (Catholic Charities)
3.55%, 07/07/99 10,480 10,480
Illinois Development Finance Authority
IDRB (Chicago Corrugated Box
Company) Series 6
3.65%, 07/07/99 950 950
Illinois Development Finance Authority
IDRB (Knead Dough Baking Co.)
3.90%, 07/07/99 6,665 6,665
Illinois Development Finance
Authority IDRB (MCL Inc. Project)
3.65%, 07/07/99 1,945 1,945
Illinois Development Finance
Authority IDRB (Molding Project)
3.75%, 07/07/99 2,150 2,150
Par Value
------- -------
Illinois Development Finance
Authority IDRB (Perkin Paperboard
Co. L.P.) Series 1994
3.65%, 07/07/99 $ 5,500 $ 5,500
Illinois Development Finance
Authority IDRB (Presbyterian Home
Lake) Series 1996A
3.95%, 07/07/99 40,000 40,000
Illinois Development Finance
Authority IDRB (Radiological
Society Project) Series 1997
3.55%, 07/07/99 4,900 4,900
Illinois Development Finance
Authority IDRB (River Graphics
Corp. Project) Series 1996
3.65%, 07/07/99 3,200 3,200
Illinois Development Finance
Authority IDRB (SMF Inc. Project)
Series A
3.80%, 07/07/99 2,080 2,080
Illinois Development Finance
Authority RB (Catholic Charities
Housing Project) Series 1993A
3.55%, 07/07/99 16,060 16,060
Illinois Development Finance
Authority RB (Chicago Academy
of Science Project)
3.75%, 07/07/99 4,715 4,715
Illinois Development Finance
Authority RB (Cloverhill Pastry
Project)
3.75%, 07/07/99 5,390 5,390
Illinois Development Finance
Authority RB (Korex Corp. Project)
3.80%, 07/07/99 4,000 4,000
Illinois Development Finance
Authority RB (Lake Forest Academy
Project)
3.55%, 07/07/99 2,000 2,000
Illinois Development Finance
Authority RB (St. Ignatius College
Prep Project)
3.55%, 07/07/99 2,200 2,200
Illinois Development Finance
Authority RB (Haven Illiana
Christian)
3.55%, 07/07/99 9,975 9,975
31
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- -------
Illinois Development Finance
Authority RB (Village Oak Park
Residence)
3.65%, 07/07/99 $ 2,145 $ 2,145
Illinois Development Finance
Authority Residential Rental RB
(F.C. Harris Pavillion Project)
Series 1994
3.50%, 07/07/99 27,510 27,510
Illinois Development Finance
Authority Residential Rental RB
(River Oak Project)
3.60%, 07/07/99 32,000 32,000
Illinois Development Finance
Authority Revenue Refunding Bonds
(Francis W. Parker Project)
3.50%, 07/07/99 2,500 2,500
Illinois Development Finance
Authority Revenue Refunding Bonds
(Rich Products Corp. Project)
3.80%, 07/07/99 1,525 1,525
Illinois Educational Facility Authority
RB (Chicago Historical Society)
3.65%, 07/07/99 8,100 8,100
Illinois Educational Facility Authority
RB (Chicago Zoological Society
Brookfield Zoo) Series B
3.55%, 07/07/99 2,800 2,800
Illinois Health Facility Authority RB
(Bensenville Home Society Project)
Series 1989A
3.35%, 07/07/99 2,325 2,325
Illinois Health Facility Authority RB
(Ingalls Memorial Hospital)
Series 1985C
3.55%, 07/07/99 1,100 1,100
Illinois Health Facility Authority RB
(Washington & Jane Smith Home)
Series 1991
3.70%, 07/07/99 2,800 2,800
Illinois Student Assistance Commission
Student Loan RB Series 1996A
3.60%, 07/07/99 8,400 8,400
Lombard, Illinois Industrial
Development Revenue Refunding
Bonds (B & H Partnership Project)
4.05%, 07/07/99 1,850 1,850
Par Value
------- --------
New Lenox, Illinois IDRB (Panduit
Corp. Project)
3.75%, 07/07/99 $ 4,400 $ 4,400
Oak Forest, IL Development RB
(Homewood Pool-South Suburban
Mayors & Managers Assoc. Project)
3.65%, 07/07/99 24,900 24,900
Palatine, Illinois Special Facilities
Limited Obligation RB (Little City
Community Development Project)
3.55%, 07/07/99 4,000 4,000
Richton Park, Illinois IDRB (Avatar
Corp. Project)
3.85%, 07/07/99 1,900 1,900
Rockford, Illinois IDRB (Industrial
Welding Supply, Inc. Project)
3.65%, 07/07/99 2,000 2,000
Rockford, Illinois IDRB (Ring Can
Corp. Project)
3.80%, 07/07/99 2,700 2,700
Tinley Park, Illinois IDA RB (Beverly
Manufacturing Co. Project)
Series 1997A
3.75%, 07/07/99 2,640 2,640
Tremont, Illinois IDRB (Hanna Steel
Project)
3.72%, 07/07/99 9,500 9,500
Upper Illinois River Valley
Development Authority Bonds
(Exolon Esk Co. Project) Series A
3.80%, 07/07/99 4,405 4,405
Village of Huntley, McHenry Kane
County, Illinois Special Civic Area # 9
Special Tax Boards Series 1998B
3.55%, 07/07/99 9,250 9,250
Woodstock, Illinois M/F Housing RB
(Prairie Trail) Series 1996A
3.75%, 07/07/99 3,425 3,425
Woodstock, Illinois M/F Housing RB
(Prairie View Ltd.)
3.75%, 07/07/99 2,035 2,035
Yorkville, Illinois IDRB (F.E. Wheaton
& Co. Inc. Project) Series 1996
3.65%, 07/07/99 1,600 1,600
--------
422,555
--------
32
<PAGE>
Par Value
------- --------
INDIANA -- 1.2%
Crawfordsville, Indiana IDRB
(National Service Industries, Inc.
Project)
3.65%, 07/07/99 $ 4,000 $ 4,000
Gary, Indiana Economic Development
Authority Revenue Refunding Bonds
(Miller Partners Home Improvement
Project) Series 1996A
3.70%, 07/07/99 20,540 20,540
Gary, Indiana Economic Development
Authority Revenue Refunding Bonds
(Tinplate Partnership Project)
Series 1997A
3.75%, 07/07/99 3,500 3,500
Hammond, Indiana Economic
Development RB (Lear Seating
Corp. Project) Series 1994
3.60%, 07/07/99 9,200 9,200
Indiana State Development Finance
Authority (Big Sky Park Project)
3.75%, 07/07/99 6,000 6,000
Indiana State Development Finance
Authority IDRB (Cives Corp.
Project) Series 1998
3.75%, 07/07/99 2,550 2,550
Indiana State Development Finance
Authority RB (Mid-America Energy
Resources Inc. Project)
3.60%, 07/07/99 8,800 8,800
Indiana State Secondary Market Educational
Loans Inc. Student Loan RB Series B
3.60%, 07/07/99 27,000 27,000
St. Joseph College, Indiana Economic
Development RB Series 1997B
3.65%, 07/07/99 3,675 3,675
--------
85,265
--------
IOWA -- 0.4%
Iowa Student Loan Liquidity Corp.
RB Series B
3.40%, 07/07/99 28,200 28,200
Saint Joseph County, Iowa
Economical Development Authority
(Western Manor)
3.65%, 07/07/99 2,130 2,130
-------
30,330
-------
Par Value
------- -------
KANSAS -- 0.4%
Kansas State Development Finance
Authority M/F Housing RB (Bluffs
Olathe Apartments) Series 1998X
4.00%, 07/07/99 $ 9,500 $ 9,500
Olathe, Kansas IDRB (Garmin
International Inc. Project) Series 1995
3.75%, 07/07/99 1,700 1,700
Wichita, Kansas Airport Facilities
Revenue Refunding Bonds (Cessna
Service Center Project)
3.95%, 07/07/99 4,985 4,985
Wichita, Kansas Airport Facilities
Revenue Refunding Bonds (Flight
Safety International, Inc. Project)
3.75%, 07/07/99 16,170 16,170
-------
32,355
-------
KENTUCKY -- 1.6%
Elizabethtown, Kentucky IDRB
(Aztec Project)
3.65%, 07/07/99 3,000 3,000
Henderson County, Kentucky Solid
Waste Disposal RB (Hudson Foods,
Inc. Project)
3.70%, 07/07/99 14,300 14,300
Jefferson County, Kentucky Sports
Stadium RB (University of Louisville
Athletic Department)
3.62%, 07/07/99 8,800 8,800
Kentucky Higher Education Student
Loan Corp. Insured Student Loan RB
Series 1991E
3.55%, 07/07/99 42,900 42,900
Kentucky Higher Education Student
Loan Corp. Insured Student Loan RB
Series 1996A
3.55%, 07/07/99 18,200 18,200
Lebanon, Kentucky IDRB (Wallace
Computer Services, Inc.)
3.75%, 07/07/99 5,000 5,000
Maysville, Kentucky Industrial
Building RB (Green Tokai Building)
3.72%, 07/07/99 5,740 5,740
Murray, Kentucky IDA Revenue
Refunding Bonds (Dean Foods Co.
Project)
3.75%, 07/07/99 6,000 6,000
33
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------ --------
Owensboro, Kentucky Limited
Obligation RB (Dart Polymers, Inc.
Project) Series 1985A
3.40%, 07/07/99 $1,900 $ 1,900
Richmond, Kentucky IDRB (Mikron
Project)
3.65%, 07/07/99 9,500 9,500
Wilson County, Kentucky IDB RB
(Perma Pipe Project)
3.90%, 07/07/99 3,150 3,150
--------
118,490
--------
LOUISIANA -- 1.2%
Calcasieu Parish, Lousiana IDB
(Weingarten Realty Project)
3.75%, 07/07/99 1,990 1,990
Lafayette Parish, Louisiana IDRB
(Westwood Village Project)
3.75%, 07/07/99 3,435 3,435
Lake Charles, Louisiana Harbor
Improvement RB (Port Improvement
Global Industries Project)
3.55%, 07/07/99 7,400 7,400
New Orleans, Louisiana Aviation
Board RB (Passenger Facility Charge
Projects)
3.70%, 07/07/99 5,100 5,100
New Orleans, Louisiana Aviation
Board RB Series 1993B
3.60%, 07/07/99 69,395 69,395
Parish of Desota, Louisiana Pollution
Control RB (Central Louisiana
Electric Co. Project)
3.45%, 07/07/99 400 400
--------
87,720
--------
MAINE -- 0.4%
Maine Educational Loan Marketing
Corp. (Student Loan Project)
Series 1997A2
3.40%, 07/07/99 8,400 8,400
Maine Educational Loan Marketing
Corp. (Student Loan Project)
Series 1999A1
3.40%, 07/07/99 14,600 14,600
Par Value
------ ------
Maine Educational Loan Marketing
Corp. (Student Loan Project)
Series 1999A2
3.40%, 07/07/99 $1,600 $1,600
Maine Educational Loan Marketing
Corp. Student Loan RB Series 1997A1
3.40%, 07/07/99 6,200 6,200
------
30,800
------
MARYLAND -- 0.2%
Howard County, Maryland M/F
Housing RB (Avalon Meadows
Project)
3.40%, 07/07/99 4,900 4,900
Maryland State Economic
Development Corp. IDRB (Dixon
Valve Project)
3.65%, 07/07/99 4,000 4,000
Maryland State Health & Higher
Education Facility Authority Pooled
RB (Kennedy Krieger Project)
Series 1993D
3.45%, 07/07/99 2,000 2,000
Montgomery County, Maryland
Housing Opportunity Commission
Housing RB (Draper Lane Project)
Series 1991I
3.40%, 07/07/99 6,700 6,700
------
17,600
------
MASSACHUSETTS -- 0.1%
Massachussets Industrial Finance
Authority (Arkansas Electronic
Products Corp. Project)
3.95%, 07/07/99 3,600 3,600
------
MICHIGAN -- 1.1%
Grand Rapids, Michigan Economic
Development Corp. RB (Amway
Hotel Corp. Project) Series A
3.60%, 07/07/99 7,205 7,205
Michigan State Hospital Finance
Authority RB (Martin Luther
Memorial Home Inc. Project)
3.55%, 07/07/99 8,520 8,520
Michigan State Strategic Fund Ltd.
Obligation RB (Advance Plastics Corp.)
3.85%, 07/07/99 1,750 1,750
34
<PAGE>
Par Value
------- -------
Michigan State Strategic Fund Ltd.
Obligation RB (EPI Printers Inc.
Project)
3.85%, 07/07/99 $ 4,400 $ 4,400
Michigan State Strategic Fund Ltd.
Obligation RB (John Widdicomb Co.
Project)
3.70%, 07/07/99 2,365 2,365
Michigan State Strategic Fund Ltd.
Obligation RB (Manufacturer's
Project) Series 1991
3.70%, 07/07/99 1,675 1,675
Michigan State Strategic Fund Ltd.
Obligation RB (Mechanics Uniform
Rental Project)
3.85%, 07/07/99 1,000 1,000
Michigan State Strategic Fund Ltd.
Obligation RB (United Machining
Project) Series 1998
3.85%, 07/07/99 7,000 7,000
Michigan State Strategic Fund Ltd.
Obligation RB Series 1998
3.85%, 07/07/99 4,435 4,435
Michigan State Strategic Fund Ltd.
Obligation RB Series B
3.55%, 07/07/99 2,000 2,000
Oakland County, Michigan Economic
Development Corp. (Husky Envelope
Products Inc. Project)
3.55%, 07/07/99 2,000 2,000
Wayne Charter County, Michigan
Airport RB (Detroit Metropolitan
County Project) Series 1996A
3.50%, 07/07/99 6,300 6,300
Wayne Charter County, Michigan
Airport RB (Detroit Metropolitan
County Project) Series B
3.40%, 07/07/99 30,910 30,910
-------
79,560
-------
MINNESOTA -- 0.3%
Bloomington, Minnesota Port
Authority Special Tax RB (Mall of
America Project) Series 1996B
3.70%, 07/07/99 900 900
Par Value
------- -------
Bloomington, Minnesota Port
Authority Tax Increment Revenue
Refunding Bonds (Mall of America
Project) Series 1995A
3.70%, 07/07/99 $ 6,000 $ 6,000
Hennepin County, Minnesota
Unlimited GO Series 1995C
3.65%, 07/07/99 1,900 1,900
Hennepin County, Minnesota
Unlimited GO Series 1996C
3.80%, 07/07/99 4,950 4,950
Minnesota Agriculture & Economic
Development RB (Evangelical
Lutheran Project)
3.90%, 07/07/99 5,500 5,500
Minnesota State Higher Education
Facilities Authority RB (University
of St. Thomas Project)
3.45%, 07/07/99 5,700 5,700
-------
24,950
-------
MISSISSIPPI -- 0.2%
Mississippi Business Financial Corp.
IDRB (Electric Mills Wood Project)
3.75%, 07/07/99 5,000 5,000
Mississippi Business Financial Corp.
IDRB (Omega Motion Project)
Series 1996
3.75%, 07/07/99 6,800 6,800
-------
11,800
-------
MISSOURI -- 0.6%
Missouri Higher Education Loan
Authority Student Loan RB
Series 1988A
3.60%, 07/07/99 22,900 22,900
Missouri State Development Finance
Board IDRB (H.R. Williams Mill
Supply Project) Series 1995
3.70%, 07/07/99 3,100 3,100
Missouri State Development Finance
Board IDRB (Milbank
Manufacturing Co. Project)
3.75%, 07/07/99 3,000 3,000
Missouri State Health & Educational
Facilities Authority RB (National
Benevolent Association Project)
3.55%, 07/07/99 2,860 2,860
35
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
St. Clair, Missouri IDA RB (Private
Dynaquip)
3.90%, 07/07/99 $ 2,000 $ 2,000
St. Joseph, Missouri IDRB (Altec
Industries Inc. Project)
3.65%, 07/07/99 4,000 4,000
St. Louis, Missouri IDA RB (Kessler
Container Project)
3.90%, 07/01/99 2,500 2,500
Washington, Missouri IDA RB
(Pauwels Transformer Project)
4.10%, 07/07/99 3,700 3,700
-------
44,060
-------
NEBRASKA -- 0.1%
Dodge County, Nebraska IDRB
(Oilgear Project)
3.75%, 07/07/99 2,510 2,510
Nebraska Higher Education Loan
Program RB (Nebhelp Inc. Student
Loan Project) Series 1988C
3.65%, 07/07/99 4,150 4,150
-------
6,660
-------
NEVADA -- 0.2%
Clark County, Nevada Airport
Improvement RB (System Subordinate
Lien) Series 1995A2
3.40%, 07/07/99 1,310 1,310
Nevada Housing Division M/F Housing
RB Series 1989A
3.50%, 07/07/99 5,700 5,700
Stanton County, Nebraska IDRB
(Nucor Corp. Project) Series 1996
3.55%, 07/07/99 10,500 10,500
-------
17,510
-------
NEW HAMPSHIRE -- 0.1%
New Hampshire State HFA M/F
Housing RB (Fairways Project-1)
3.40%, 07/07/99 7,000 7,000
-------
NEW JERSEY -- 0.7%
Essex County, New Jersey Public
Improvement Authority RB (County
Asset Sale Project) Series 1995
3.40%, 07/07/99 4,900 4,900
Par Value
------ ------
Monmouth County, New Jersey
Improvement Authority Pooled
Government Loan Progam
3.20%, 07/07/99 $2,000 $2,000
New Jersey Economic Development
Authority Natural Gas Facilities RB
(New Jersey Natural Gas Co.)
3.30%, 07/07/99 2,400 2,400
New Jersey Economic Development
Authority Natural Gas Facilities RB
(New Jersey Natural Gas Co.)
Series 1998B
3.15%, 07/07/99 1,500 1,500
New Jersey Economic Development
Authority Natural Gas Facilities RB
(New Jersey Natural Gas Co.)
Series 1998C
3.15%, 07/07/99 2,000 2,000
New Jersey Economic Development
Authority RB (500 International
Partners Project)
3.60%, 07/07/99 700 700
New Jersey Economic Development
Authority RB (Graphic Management
Income Project)
3.30%, 07/07/99 2,660 2,660
New Jersey Economic Development
Authority RB (Job Haines Home
Project)
3.25%, 07/07/99 500 500
New Jersey Economic Development
Authority RB (New Jersey Foreign
Trade Venture Project) Series 1998
3.25%, 07/01/99 1,300 1,300
New Jersey Economic Development
Authority RB (Public Service Electric
& Gas Co. Project) Series 1995A
3.05%, 07/07/99 4,200 4,200
New Jersey Economic Development
Authority Revenue Refunding Bonds
(Airis Newark LLC Project)
3.70%, 07/07/99 8,000 8,000
New Jersey Economic Development
Authority Thermal Energy Facilities
RB (Thermal Energy Ltd.
Partnership I Project) Series 1997
3.30%, 07/07/99 150 150
36
<PAGE>
Par Value
------- -------
New Jersey Health Care Facility
Financing Authority Revenue
Refunding Bonds (Christian Health
Project) Series 1998B
3.20%, 07/07/99 $ 100 $ 100
New Jersey Sports & Exposition
Authority RB Series 1992C
3.65%, 07/07/99 10,600 10,600
New Jersey State Educational
Development Authority RB
(Hamilton Industrial Development
Project) Series 1998
3.40%, 07/07/99 1,865 1,865
New Jersey State Turnpike Authority
RB Series 1991D
3.10%, 07/07/99 2,750 2,750
Salem County, New Jersey Pollution
Control Financing Authority RB
(Public Service Electric & Gas
Project) Series 1997
3.25%, 07/07/99 800 800
Union City, New Jersey Industrial
Pollution Control Financing
Authority RB (Exxon Project)
3.15%, 07/01/99 2,400 2,400
-------
48,825
-------
NEW MEXICO -- 0.9%
Albuquerque, New Mexico Airport RB
(Subordinated Lien) Series 1996A
3.40%, 07/07/99 19,400 19,400
Albuquerque, New Mexico IDRB
(Karsten Project B)
4.00%, 07/07/99 670 670
Albuquerque, New Mexico IDRB
(Karsten Project A)
4.00%, 07/07/99 1,545 1,545
Belen, New Mexico IDRB (Solo Cup,
Inc. Project)
3.75%, 07/07/99 3,250 3,250
New Mexico State Highway
Commission RB (Subordinate Lein)
3.45%, 07/07/99 42,540 42,540
-------
67,405
-------
Par Value
------- -------
NEW YORK -- 0.8%
Albany-Dougherty County, New York
Hospital Authority RB (Phoebe
Putney Memorial Hospital Project)
Series 1996
3.50%, 07/07/99 $11,200 $11,200
New York City, New York Housing
Development Corp. M/F RB (One
Columbus Project) Series A
3.35%, 07/07/99 100 100
New York City, New York Housing
Development Corp. M/F RB (Related
Broadway Development) Series A
3.30%, 07/07/99 5,700 5,700
New York City, New York IDA Special
Facility RB (Korean Airlines Co.
Project) Series 1997C
3.45%, 07/07/99 1,500 1,500
New York City, New York M/F Rental
Housing RB (Tribeca Tower Project)
Series 1997A
3.25%, 07/07/99 8,300 8,300
New York City, New York Transit
Cultural Resource Revenue Refunding
Bonds (American Museum of Natural
History) Series 1993A
3.10%, 07/07/99 2,700 2,700
New York State Energy Research &
Development Authority Pollution
Control Revenue Refunding Bonds
(Orange & Rockland Utilities, Inc.
Project) Series 1994A
3.10%, 07/07/99 900 900
New York State HFA (70 Battery
Place Project) Series A
3.30%, 07/07/99 9,700 9,700
New York State HFA (Mount Sinai
School Of Medicine) Series A
3.50%, 07/07/99 400 400
New York State HFA Housing RB
(Union Square South Housing
Project)
3.30%, 07/07/99 3,200 3,200
New York State HFA M/F RB (Tribeca
Park Housing Project) Series A
3.30%, 07/07/99 3,800 3,800
37
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
New York State HFA RB (101 West
End Avenue Project) Series 1999A
3.30%, 07/07/99 $ 1,200 $ 1,200
New York State HFA RB (Chelsea
Arms Housing Project) Series A
3.50%, 07/07/99 4,000 4,000
New York State HFA RB
3.30%, 07/07/99 2,100 2,100
Yonkers, New York IDA Civic Facilities
RB (Consumers Union Facility
Project)
3.40%, 07/07/99 500 500
-------
55,300
-------
NORTH CAROLINA -- 0.9%
Burke County, North Carolina
Industrial Facilities
Pollution Control Financing
Authority RB (Bauer Industries
Inc. Project)
3.30%, 07/07/99 3,455 3,455
Concord, North Carolina COP
(Concord Project) Series A (a)
3.60%, 07/07/99 9,000 9,000
Forsyth County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Plymouth Printing Project)
3.65%, 07/07/99 2,340 2,340
Gates County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority IDRB
(Coxe-Lewis Project)
3.85%, 07/07/99 2,145 2,145
Guilford County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Camco Manufacturing Project)
Series 1996
3.70%, 07/07/99 2,400 2,400
Guilford County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Culp Inc. Project)
3.70%, 07/07/99 3,825 3,825
Guilford County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Neal Manufacturing Project)
3.90%, 07/07/99 2,900 2,900
Par Value
------- -------
Guilford County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Vitafoam Inc. Project)
3.70%, 07/07/99 $ 5,500 $ 5,500
Johnston County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Flanders Corp. Project)
3.80%, 07/07/99 4,500 4,500
North Carolina Educational Facilities
Finance Agency RB (Cannon School
Project)
3.60%, 07/07/99 6,500 6,500
North Carolina Educational Facilities
Finance Agency RB (High Point
University Project)
3.60%, 07/07/99 5,600 5,600
North Carolina Medical Care
Community Hospital Health Care
Facilities (Presbyterian Home)
3.60%, 07/07/99 8,500 8,500
Rowan County, North Carolina
Industrial Facilities Pollution Control
Financing Authority (Taylor-Clay
Products Project)
3.70%, 07/07/99 5,000 5,000
Sampson County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority IDRB
(Crumpler Plastic Project)
3.70%, 07/07/99 4,100 4,100
Union County, North Carolina
Industrial Facilities & Pollution
Control Financing Authority RB
(Rock-Tenn Converting County
Project) Series 1997
3.80%, 07/07/99 1,750 1,750
-------
67,515
-------
38
<PAGE>
Par Value
------- -------
NORTH DAKOTA -- 0.2%
Richland County, North Dakota IDRB
(Minn-Dak Farmers Co-op Project)
Series 1986B
3.90%, 07/07/99 $ 1,000 $ 1,000
Richland County, North Dakota Solid
Waste Disposal RB (Minn-Dak
Farmers Co-op Project) Series 1996A
3.90%, 07/07/99 11,000 11,000
-------
12,000
-------
OHIO -- 0.5%
Cleveland, Ohio Airport System RB
Series 1997D
3.40%, 07/07/99 13,530 13,530
Columbus, Ohio Electric System RB
Series 1984
3.00%, 07/07/99 6,080 6,080
Ohio Air Quality Development
Authority RB (JMG Funding, LP)
Series 1994A
3.35%, 07/07/99 2,900 2,900
Ohio Air Quality Development
Authority RB (Ltd. Partnership
Project) Series 1994B
3.45%, 07/07/99 14,400 14,400
Ohio HFA M/F Housing RB
(Kenwood Congregate Retirement
Community Project) Series 1985
3.15%, 07/07/99 2,000 2,000
-------
38,910
-------
OKLAHOMA -- 1.1%
Creek County, Oklahoma Industrial
Authority IDRB (Henry Vogt Mach
Project) Series 1990
3.80%, 07/07/99 2,000 2,000
Garfield County, Oklahoma IDRB
(Bank of Commerce Group Inc.
Project)
3.65%, 07/07/99 7,265 7,265
Muldrow, Oklahoma Public Works
Authority IDRB (Oklahoma Foods
Project)
3.85%, 07/07/99 7,500 7,500
Par Value
------- -------
Oklahoma County, Oklahoma
Industrial Authority RB (National
Cowboy Hall of Fame Project)
Series 1999
3.80%, 07/07/99 $ 2,500 $ 2,500
Oklahoma Development Finance
Authority RB (Shawnee Funding Ltd.)
3.80%, 07/07/99 4,000 4,000
Oklahoma State Student Loan
Authority RB
3.50%, 07/07/99 9,100 9,100
Oklahoma State Student Loan
Authority RB Series 1996A
3.55%, 07/07/99 31,980 31,980
Oklahoma State Student Loan
Authority RB Series A
3.50%, 07/07/99 15,100 15,100
Tulsa, Oklahoma IDA RB (Thomas &
Betts Project) Series 1991
3.75%, 07/07/99 700 700
Tulsa, Oklahoma Industrial Authority
Hospital RB (YMCA of Greater Tulsa
Project) Series 1999
3.80%, 07/07/99 3,000 3,000
-------
83,145
-------
OREGON -- 0.5%
Oregon State Economic Development
Authority RB (Kettle Foods Project)
Series 186 (a)
3.60%, 07/07/99 2,000 2,000
Oregon State Economic Development
Authority RB (Pendleton Flour Mills
Project) Series 1982
3.65%, 07/07/99 6,900 6,900
Oregon State Economic Development
Commission IDRB
3.65%, 07/07/99 4,100 4,100
Oregon State Health Housing
Educational & Cultural Facilities
Authority RB (Quatama Crossing
Housing Project)
3.55%, 07/07/99 2,440 2,440
Port of Portland, Oregon IDRB
(Schnitzer Steel Project)
3.60%, 07/07/99 5,000 5,000
39
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
Port of Portland, Oregon Special
Obligation RB (Portland Bulk
Terminals Limited Liability Corp.
Project)
3.70%, 07/07/99 $18,100 $18,100
-------
38,540
-------
PENNSYLVANIA -- 5.0%
Allegheny County, Pennsylvania IDA
(USX Corp. Project)
3.60%, 07/01/99 7,900 7,900
Berks County, Pennsylvania IDA
(Street Desserts Project)
3.60%, 07/07/99 6,700 6,700
Bucks County, Pennsylvania St. Mary
Hospital Authority RB (Catholic
Healthcare Project) Series 1997B
3.50%, 07/07/99 5,100 5,100
Cambria County, Pennsylvania IDA
Resource Recovery RB (Cambria
Cogen Co. Project)
3.55%, 07/07/99 8,195 8,195
Cambria County, Pennsylvania IDA
Resource Recovery RB (Cambria
Cogen Co. Project) Series 1998A1
3.55%, 07/07/99 53,200 53,200
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault
Project)
3.65%, 07/07/99 220 220
Dauphin County, Pennsylvania General
Authority RB (All Health Pooled
Financing Program)
3.50%, 07/07/99 9,070 9,070
Dauphin County, Pennsylvania General
Authority RB (Education & Health
Loan Program) Series 1997
3.70%, 07/07/99 7,000 7,000
Delaware County, Pennsylvania IDA RB
(YMCA of Philadelphia Project)
Series 1999
3.50%, 07/07/99 2,435 2,435
Easton, Pennsylvania City School
District GO
3.70%, 07/07/99 3,000 3,000
Emmaus, Pennsylvania General
Authority RB Pooled Loan
Series 1996
3.45%, 07/07/99 18,150 18,150
Par Value
------- -------
Montgomery County, Pennsylvania
IDA RB (Seton Medical Co.)
3.50%, 07/07/99 $ 3,900 $ 3,900
Montgomery County, Pennsylvania
Redevelopment Authority M/F
Housing Revenue Refunding Bonds
(Glenmore Assoc. Project) Series A
3.65%, 07/07/99 1,850 1,850
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1986
3.40%, 07/07/99 24,375 24,375
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988A
3.60%, 07/07/99 9,100 9,100
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988B
3.60%, 07/07/99 44,830 44,830
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988C
3.60%, 07/07/99 39,430 39,430
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1994A
3.60%, 07/07/99 21,000 21,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1995A
3.60%, 07/07/99 2,000 2,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1997A
3.85%, 07/07/99 42,025 42,025
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1999A
3.95%, 07/07/99 7,000 7,000
Philadelphia, Pennsylvania IDA RB
(30th Street Station Project)
Series 1987
3.25%, 07/07/99 8,500 8,500
Philadelphia, Pennsylvania IDA RB
(City Line Holiday Inn Project)
Series 1996
3.60%, 07/07/99 2,300 2,300
40
<PAGE>
Par Value
-------- --------
Philadelphia, Pennsylvania Water &
Waste RB Series 1997B
3.30%, 07/07/99 $ 2,100 $ 2,100
Quakertown, Pennsylvania General
Authority Pooled Financing
Program Series A
3.55%, 07/07/99 3,004 3,004
Quakertown, Pennsylvania General
Authority Series 1998A
3.55%, 07/07/99 7,300 7,300
Schuylkill County, Pennsylvania IDA
Resource Recovery RB (Gilberton
Power Project) Series 1985
3.35%, 07/07/99 950 950
Washington County, Pennsylvania
Authority Lease RB (Girard Estate
Refunding Project) Series 1999
3.70%, 07/07/99 20,000 20,000
Washington County, Pennsylvania
Authority Lease RB Municipal
Facilities Series B1
3.65%, 07/07/99 7,022 7,022
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon
Valley Crethren)
3.50%, 07/07/99 610 610
York, Pennsylvania General Authority
Pooled Financing RB Series 1996
3.70%, 07/07/99 475 475
--------
368,741
--------
PUERTO RICO -- 0.0%
Puerto Rico Commonwealth Highway
& Transportation Authority Highway
Series 1998A
3.10%, 07/07/99 1,700 1,700
--------
RHODE ISLAND -- 0.5%
Rhode Island State Student Loan
Authority Higher Education RB
Series 1995-1
3.45%, 07/07/99 12,300 12,300
Rhode Island State Student Loan
Authority Higher Education RB
Series 1996-2
3.45%, 07/07/99 5,000 5,000
Par Value
------- --------
Rhode Island State Student Loan
Authority Higher Education RB
Series 1996-3
3.45%, 07/07/99 $18,100 $ 18,100
--------
35,400
--------
SOUTH CAROLINA -- 0.5%
Dorchester County, South Carolina
Pollution Control Facilities RB
(BOC Group Inc. Project)
3.65%, 07/07/99 2,000 2,000
Greenville, South Carolina County &
City IDRB (Stevens Aviation
Technology Services Project)
3.90%, 07/07/99 3,500 3,500
South Carolina Economic Development
Authority Hospital Facility RB
(Sanders Brothers Construction
Project)
3.75%, 07/07/99 2,450 2,450
South Carolina Economic Development
Authority RB (Advanced Automation
Project) Series 1998
3.55%, 07/07/99 3,800 3,800
South Carolina Jobs Economic
Development Authority IDRB (Electric
City Printing Project)
3.75%, 07/07/99 2,800 2,800
South Carolina Jobs Economic
Development Authority RB (Brown
Packaging Co. Project)
3.75%, 07/07/99 3,300 3,300
South Carolina Jobs Economic
Development Authority RB (Specialty
Minerals Project)
3.80%, 07/07/99 3,600 3,600
South Carolina Jobs Economic
Development Authority RB (Thomas
& Betts Corp. Project)
3.75%, 07/07/99 3,100 3,100
South Carolina State Housing Finance
& Development Authority M/F
Housing RB (Ashley Apartments
Project) Series 1999
3.80%, 07/07/99 4,300 4,300
41
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
Spartanburg County, South Carolina
IDA RB (Bemis, Inc.)
3.65%, 07/07/99 $ 4,750 $ 4,750
-------
33,600
-------
SOUTH DAKOTA -- 0.2%
South Dakota State Health &
Educational Facilities Authority RB
(Mckenna Hospital) Series 1994
3.70%, 07/07/99 15,930 15,930
-------
TENNESSEE -- 2.4%
Chattanooga, Tennesse IDRB (National
Print Group Inc. Project)
3.85%, 07/07/99 2,400 2,400
Chattanooga, Tennessee Health
Education & Housing Facility
Board RB (Baylor School Project)
3.75%, 07/07/99 2,625 2,625
Franklin County, Tennessee IDRB
(Hi-Tech Project) Series 1997
3.65%, 07/07/99 6,500 6,500
Jackson County, Tennessee IDRB
Solid Waste Facilities (Ameristeel
Corp. Project)
3.90%, 07/01/99 5,000 5,000
Knox County, Tennessee Health,
Education, & Housing Facilities
Board RB (THA Solutions Group,
Inc. Project)
3.50%, 07/07/99 25,000 25,000
Metropolitan Nashville & Davidson
County, Tennessee Health & Education
Facility Board RB Series A
3.30%, 07/07/99 1,200 1,200
Metropolitan Nashville & Davidson
County, Tennessee IDRB (Bind
Technologies Inc.)
3.90%, 07/07/99 3,750 3,750
Metropolitan Nashville & Davidson
County, Tennessee M/F Housing
IDRB (Arbor Crest) Series 1985B
3.65%, 07/07/99 7,550 7,550
Metropolitan Nashville & Davidson
County, Tennessee M/F Housing
IDRB (Arbor Knoll) Series 1985A
3.65%, 07/07/99 1,000 1,000
Par Value
------- -------
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1995C1
3.65%, 07/07/99 $ 5,530 $ 5,530
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1995C3
3.65%, 07/07/99 10,000 10,000
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1995E3
3.65%, 07/07/99 2,810 2,810
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996A
3.65%, 07/07/99 7,000 7,000
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996D1
3.65%, 07/07/99 2,990 2,990
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996E1
3.65%, 07/07/99 6,160 6,160
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996E4
3.65%, 07/07/99 3,000 3,000
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996F1
3.65%, 07/07/99 9,000 9,000
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996F2
3.65%, 07/07/99 8,690 8,690
42
<PAGE>
Par Value
-------- --------
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 1996G
3.65%, 07/07/99 $ 6,540 $ 6,540
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds
Series 3C-1
3.65%, 07/07/99 11,500 11,500
Sevier County, Tennessee Public
Building Authority Local Government
Public Improvement Bonds Series II-C
3.65%, 07/07/99 1,025 1,025
Sumner County, Tennessee Health
Educational & Housing Facilities
Board RB (Hospital Alliance Pooled
Program) Series 1999A
3.77%, 07/01/99 30,000 30,000
Tennessee State Student Funding Corp.
Student Loan RB Series 1997A-3
3.55%, 07/07/99 14,900 14,900
--------
174,170
--------
TEXAS -- 6.2%
Amarillo, Texas Health Facilities Corp.
Hospital RB (High Plains Baptist
Hospital) Series 1985
3.60%, 07/07/99 3,100 3,100
Amarillo, Texas Health Facilities Corp.
Revenue Refunding Bonds
3.90%, 07/07/99 3,155 3,155
Bexar County, Texas Health Facilities
Development Corp. RB (Chandler
Memorial Home Project) Series 1995
3.62%, 07/07/99 4,800 4,800
Brazos River, Texas Higher Education
Authority RB Series 1993B1
3.40%, 07/07/99 25,200 25,200
Brownsville County, Texas Industrial
Development Corp. Revenue
Refunding Bonds (Rich Seapak Corp.
Project)
3.80%, 07/07/99 3,750 3,750
Central Waco, Texas Development
Corp. IDRB (H.E. Butt Grocery Project)
3.45%, 07/07/99 3,150 3,150
Par Value
------- --------
Collin County, Texas HFA M/F Housing
RB (Huntington Apartments Project)
3.77%, 07/07/99 $ 6,150 $ 6,150
Euless, Texas IDA RB (Ferguson
Enterprises, Inc. Project)
3.65%, 07/07/99 4,950 4,950
Grand Prairie, Texas IDA IDRB (NTA
Leasing Co. Project) Series 1994
3.60%, 07/07/99 1,940 1,940
Hays, Texas Memorial Health Facilities
Development Corp. Hospital RB (AHS
Sunbelt Central Texas Medical Center
Project) Series 1990A
3.85%, 07/07/99 8,200 8,200
Lavaca-Navidad River Authority, Texas
Water Supply System Contract RB
(Formosa Plastics Corp. Project) (a)
3.55%, 07/07/99 13,600 13,600
Lubbock, Texas Educational Facilities
Authority RB (Lubbock Christian
University Project)
3.75%, 07/07/99 6,600 6,600
North Texas Higher Education
Authority Income Tax Student Loan
Revenue Refunding Bonds (Texas
Student Loan Project)
3.55%, 07/07/99 9,000 9,000
North Texas Higher Education
Authority Income Tax Student Loan
Revenue Refunding Bonds
Series 1987A
3.40%, 07/07/99 87,750 87,750
North Texas Higher Education
Authority Income Tax Student Loan
Revenue Refunding Bonds
Series 1996A
3.60%, 07/07/99 6,100 6,100
North Texas Higher Education
Authority Income Tax Student Loan
Revenue Refunding Bonds
Series 1996B
3.60%, 07/07/99 4,000 4,000
North Texas Higher Education
Authority Income Tax Student Loan
Revenue Refunding Bonds
Series 1996D
3.60%, 07/07/99 4,000 4,000
43
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- --------
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1991A
3.40%, 07/07/99 $ 21,800 $ 21,800
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1992A
3.40%, 07/07/99 5,500 5,500
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1992A1
3.40%, 07/07/99 2,400 2,400
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1993A
3.40%, 07/07/99 13,300 13,300
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1995A
3.40%, 07/07/99 18,300 18,300
Panhandle Plains, Texas Higher
Education Authority Student Loan RB
Series 1997X
3.40%, 07/07/99 18,300 18,300
Robertson County, Texas Industrial
Development Corp. IDRB (Sanderson
Farms Project) Series 1995
3.65%, 07/07/99 3,700 3,700
South Texas Higher Education
Authority Student Loan RB
3.40%, 07/07/99 70,500 70,500
South Texas Higher Education
Authority Student Loan RB
Series 1997Z
3.40%, 07/07/99 7,000 7,000
Tarrant County, Texas IDRB (Mortex
Products Inc. Project)
3.95%, 07/07/99 4,000 4,000
Texas Capital Health Facilities
Development Corp. RB (Island On
Lake Travis Ltd. Project)
3.40%, 07/07/99 8,500 8,500
Texas Health Facilities Development
Corp. ACES RB (North Texas Pooled
Health) Series 1985B
3.65%, 07/07/99 14,800 14,800
Par Value
-------- --------
Texas Municipal Gas Corp. Gas Reserve
RB Weekly Senior Lien
3.45%, 07/07/99 $ 65,935 $ 65,935
Trinity River Authority, Texas Pollution
Control RB (Lafarge Corp. Project)
3.85%, 07/07/99 4,100 4,100
--------
453,580
--------
UTAH -- 0.7%
Utah State Board of Regents Student
Loan RB Series 1995L
3.60%, 07/07/99 7,975 7,975
Utah State Board of Regents Student
Loan RB Series 1996Q
3.60%, 07/07/99 9,000 9,000
Utah State Board of Regents Student
Loan RB Series 1997R
3.60%, 07/07/99 32,955 32,955
Woods Cross City, Utah M/F RB
(Spring Wood Apartments)
3.62%, 07/07/99 3,605 3,605
--------
53,535
--------
VIRGINIA -- 0.2%
King George County, Virgina IDA Solid
Waste Disposal Facility (Garnet of
Virginia Project) Series 1996
3.90%, 07/07/99 3,700 3,700
Loudoun County, Virginia IDRB
(Electronic Instrumentation Project)
3.45%, 07/07/99 2,760 2,760
Staunton, Virginia IDRB (Diebold Inc.-
Staunton Project) Series 1997
3.70%, 07/07/99 2,835 2,835
Virginia Beach, Virginia Development
Authority M/F Housing RB (Silver Hill
at Thalia LLC Project) Series 1999
3.80%, 07/07/99 4,400 4,400
--------
13,695
--------
WASHINGTON -- 3.4%
Algona, Washington Economic
Development Corp. IDRB (Aitchison
Family Partnership Project)
3.55%, 07/07/99 2,620 2,620
Douglas County, Washington Water
Economic Development RB
3.95%, 07/07/99 6,500 6,500
44
<PAGE>
Par Value
------- -------
Everett, Washington IDA RB Series
1996 (Partners Trust/Synsor Project)
3.65%, 07/07/99 $ 4,400 $ 4,400
King County, Washington Economic
Enterprise Corp. RB (Sunrise Project)
Series 1997
3.65%, 07/07/99 4,000 4,000
King County, Washington HFA M/F
Housing RB (Auburn County
Apartments)
3.70%, 07/07/99 9,150 9,150
Olympia, Washington Economic
Development Authority (Solid
Waste Lemay Enterprises Project)
3.75%, 07/07/99 5,160 5,160
Pierce County, Washington Economic
Development Corp. RB (Flex-A-Lite
Consolidated Project)
3.65%, 07/07/99 3,000 3,000
Pierce County, Washington Economic
Development Corp. RB (K & M
Holdings II Project) Series 1997
3.70%, 07/07/99 1,820 1,820
Pierce County, Washington Economic
Development Corp. RB (McFarland
Cascade Project)
3.80%, 07/07/99 2,000 2,000
Pierce County, Washington Economic
Development Corp. RB (Solid Waste
Lemay Enterprises Project)
3.75%, 07/07/99 3,500 3,500
Pilchuck, Washington Water
Development Corp. IDRB (Romac
Industrial Inc. Project)
4.00%, 07/07/99 7,425 7,425
Port Centralia, Washington IDB (Solid
Waste Lemay Enterprises Project)
3.75%, 07/07/99 2,200 2,200
Port Moses Lake, Washington Public
Corp. RB (Moses Lake Industrial
Project) Series 1995
3.65%, 07/07/99 3,000 3,000
Port Moses Lake, Washington Public
Corp. RB (National Frozen Foods
Corp.)
3.55%, 07/07/99 6,800 6,800
Port of Seattle, Washington
Subordinate Lien RB Series 1997
3.55%, 07/07/99 81,530 81,530
Par Value
------- -------
Seattle, Washington HDA RB (Capitol
Hill Housing Improvement &
HRG Project)
3.65%, 07/07/99 $ 6,420 $ 6,420
Seattle, Washington HDA RB (Casa
Pacifica Apartments Project)
Series 1997
3.65%, 07/07/99 3,350 3,350
Seattle, Washington HDA RB (Holly
Park Project)
3.65%, 07/07/99 18,500 18,500
Spokane County, Washington
Industrial Development Corp. (Metal
Sales Manufacturing Corp. Project)
3.72%, 07/07/99 2,520 2,520
Washington Health Care Facilities
Authority RB (Yakima Valley Farm
Workers Clinic) Series 1997
3.57%, 07/07/99 3,700 3,700
Washington State Economic
Development Finance Authority
(Skills Inc. Project) (a)
3.60%, 07/07/99 3,450 3,450
Washington State Economic
Development Finance Authority ACES
(Tank Project) Series 1998B
3.80%, 07/07/99 1,400 1,400
Washington State Economic
Development Finance Authority IDRB
(Tonkin Building) Series 1997A
3.80%, 07/07/99 1,000 1,000
Washington State Economic
Development Finance Authority RB
(Hamilton Materials Project)
3.95%, 07/07/99 5,000 5,000
Washington State Economic
Development Finance Authority RB
(Hunter Douglas Project) Series 1997A
3.80%, 07/07/99 3,500 3,500
Washington State HFA M/F Housing
Mortgage RB (Brittany Park Phase 3
Project)
3.80%, 07/07/99 3,480 3,480
Washington State HFA M/F Housing
Mortgage RB (Canyon Lake II)
Series 1993A
3.85%, 07/07/99 4,565 4,565
45
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- --------
Washington State HFA M/F Housing
Mortgage RB (Lake Washington
Apartments Project) Series 1996
3.75%, 07/07/99 $ 8,750 $ 8,750
Washington State HFA M/F Housing
Mortgage RB (Meridian Court
Apartments) Series 1996
3.65%, 07/07/99 6,900 6,900
Washington State HFA M/F Housing
Mortgage RB (Merrill Gardens Project)
Series 1997A
3.80%, 07/07/99 2,600 2,600
Washington State HFA M/F Housing
Mortgage RB (Rosecreek Apartments
Project)
3.85%, 07/07/99 3,570 3,570
Yakama Indian Nation, Washington
Confederated Tribes & Bands
(Yakama Forests Products Project)
3.65%, 07/07/99 8,600 8,600
Yakima County, Washington Public
Corp. IDRB (Cowiche Growers
Project)
3.95%, 07/07/99 3,800 3,800
Yakima County, Washington Public
Corp. RB (Hi-Country Foods Project)
3.65%, 07/07/99 7,300 7,300
Yakima County, Washington Public
Corp. RB (Michaelson Packaging
Project)
3.65%, 07/07/99 3,800 3,800
Yakima County, Washington Public
Corp. RB (Printing Press Project)
3.65%, 07/07/99 2,400 2,400
--------
247,710
--------
WEST VIRGINIA -- 0.3%
Fayette County, West Virginia Solid
Waste Disposal Facilities RB (Georgia-
Pacific Corp. Project) Series 1995
3.80%, 07/07/99 9,200 9,200
Marion County, West Virginia Solid
Waste Disposal Facilities RB (Grant
Town Project) Series B
3.60%, 07/07/99 10,800 10,800
Par Value
-------- --------
Marion County, West Virginia Solid
Waste Disposal Facilities RB (Grant
Town Project) Series D
3.60%, 07/07/99 $ 4,200 $ 4,200
West Virginia State Hospital Finance
Authority RB (St. Joseph's Hospital
Project) Series 1987
3.57%, 07/07/99 1,900 1,900
--------
26,100
--------
WISCONSIN -- 0.6%
Carlton, Wisconsin Pollution Control
RB (Wisconsin Power & Light Co.
Project)
3.55%, 07/07/99 5,800 5,800
Chilton, Wisconsin IDRB (Kaytee
Products, Inc. Project) Series 1995
3.72%, 07/07/99 1,295 1,295
Colburn, Wisconsin IDRB (Heartland
Farms Project) Series 1994
3.75%, 07/07/99 6,900 6,900
Grafton, Wisconsin IDRB (Milwaukee
Sign Co. Project)
3.75%, 07/07/99 1,900 1,900
Kenosha, Wisconsin IDRB (Asyst
Technologies Limited Liability Corp.
Project)
3.75%, 07/07/99 5,000 5,000
Lac Du Flambeau, Band of Lake
Superior, Wisconsin Chippewa Indians
Special Obligation Bonds (Simpson
Electric Co. Project) Series 1985
3.60%, 07/07/99 4,200 4,200
Prentice, Wisconsin Industrial
Development Revenue Refunding
Bonds (Blount, Inc.) Series 1992
3.75%, 07/07/99 1,350 1,350
Rapids City, Wisconsin IDRB (Theile
Kaolin of Wisconsin, Inc. Project)
Series 1998
3.80%, 07/07/99 2,250 2,250
Rhinelander, Wisconsin IDRB (Lake
Shore Inc. Project)
3.80%, 07/07/99 2,420 2,420
46
<PAGE>
Par Value
-------- ----------
Wisconsin Housing & Economic
Development Authority RB (Ultratec
Inc. Project) Series 7
3.75%, 07/07/99 $ 3,730 $ 3,730
Wisconsin State Health & Education
Facilities Authority RB (Sinai
Samaritan) Series 1994A
3.70%, 07/07/99 12,560 12,560
----------
47,405
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $4,124,141) 4,124,141
----------
VARIABLE RATE TENDER OPTION BONDS -- 10.7% (a)(b)(f)
COLORADO -- 0.4%
Colorado HFA S/F Mortgage TOB
Series 1999M
3.77%, 07/07/99 12,010 12,010
Denver, Colorado GO Refunding TOB
Series 1998A
3.90%, 07/07/99 13,870 13,870
----------
25,880
----------
CONNECTICUT -- 0.7%
Connecticut State GO General Purpose
Public Improvement TOBP
Series 1991A (BTP-151)
3.85%, 07/07/99 7,365 7,365
Connecticut State TOBP (BTP-292)
3.90%, 07/07/99 7,920 7,920
Connecticut State Transportation
TOBP (BTP-262)
3.90%, 07/07/99 16,650 16,650
Macon, Connecticut HFA TOB
Series 1999D
3.79%, 07/07/99 19,995 19,995
----------
51,930
----------
FLORIDA -- 0.2%
Eagle Dade County, Florida Water &
Sewer TOB Series 1993S
3.69%, 07/07/99 14,000 14,000
----------
GEORGIA -- 0.4%
Georgia State Public Improvement
GO TOBP Series 1993B & 1993C
(BTP-135)
3.90%, 07/07/99 3,865 3,865
Par Value
-------- -------
Georgia State Public Improvement
GO TOBP Series 1993B & 1993C
(BTP-140)
3.90%, 07/07/99 $ 4,575 $ 4,575
Georgia State Public Improvement
GO TOBP Series 1994B (BTP-148)
3.90%, 07/07/99 7,100 7,100
Georgia State TOBP (BTP-79)
3.90%, 07/07/99 13,145 13,145
-------
28,685
-------
HAWAII -- 1.1%
Hawaii GO TOB
3.90%, 07/07/99 9,900 9,900
Hawaii State GO TOB
3.90%, 07/07/99 7,750 7,750
Hawaii State Housing Finance &
Development Corp. TOB
3.72%, 07/07/99 17,075 17,075
Hawaii State TOB
3.90%, 07/07/99 24,750 24,750
Hawaii State TOBP (BTP-220)
3.90%, 07/07/99 8,245 8,245
Hawaii State TOBP (BTP-222)
3.90%, 07/07/99 5,275 5,275
Honolulu, Hawaii City & County TOB
3.72%, 07/07/99 9,015 9,015
-------
82,010
-------
ILLINOIS -- 0.8%
Chicago, Illinois S/F Mortgage RB
Series 1999N TOB
3.77%, 07/07/99 9,995 9,995
Eagle Chicago, Illinois Midway
Airport RB TOB
3.69%, 07/07/99 24,480 24,480
Eagle, Illinois 981304 Metropolitan
Pier & Expo Authority McCormick
Place TOB
3.69%, 07/07/99 14,355 14,355
Illinois Educational Facilities TOB
(Merlot Program) Series 1997V
3.60%, 07/07/99 2,000 2,000
Illinois State GO TOB
3.90%, 07/07/99 7,440 7,440
-------
58,270
-------
47
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
KENTUCKY -- 0.3%
Kentucky Housing Corporate RB
Series 1998W TOB
3.77%, 07/07/99 $19,320 $19,320
-------
LOUISIANA -- 0.1%
Louisiana State TOBP (BTP-300)
Series 1998A
3.90%, 07/07/99 7,920 7,920
-------
MARYLAND -- 0.4%
Maryland State Community
Development Adminstration
Department TOB Series 1999G
3.78%, 07/07/99 32,335 32,335
-------
MASSACHUSETTS -- 0.2%
Massachusetts GO TOBP (BTP-214)
3.90%, 07/07/99 18,115 18,115
-------
MICHIGAN -- 0.1%
Monroe County, Michigan Pollution
Control TOB (Detroit Edison Co. Project)
3.82%, 07/07/99 10,060 10,060
-------
MINNESOTA -- 0.1%
Minnesota State GO TOB
3.90%, 07/07/99 7,710 7,710
-------
MISSISSIPPI -- 0.2%
Mississippi S/F HFA TOB Series 1997G
3.77%, 07/07/99 12,330 12,330
-------
MISSOURI -- 0.1%
Sikeston, Missouri Electric System
TOBP (BTP-186) Series 1992
3.90%, 07/07/99 10,098 10,098
-------
NEBRASKA -- 0.2%
Nebraska Investment Finance
Authority S/F Housing RB Series TOB
Series 1998X
3.77%, 07/07/99 10,825 10,825
-------
NEW HAMPSHIRE -- 0.3%
New Hampshire State HFA S/F RB TOB
Series 1998U
3.67%, 07/07/99 9,995 9,995
Par Value
------- -------
New Hampshire State HFA S/F RB TOB
Series G
3.77%, 07/07/99 $14,915 $14,915
-------
24,910
-------
NEW JERSEY -- 0.3%
New Jersey Health Care TOBP (PA-504)
Series 1998B
3.70%, 07/07/99 15,975 15,975
New Jersey State Transportation
Authority TOBP (PT-200)
3.72%, 07/07/99 1,875 1,875
New Jersey State Turnpike Authority
TOBP (PA-440)
3.70%, 07/07/99 2,695 2,695
New Jersey Transportation Authority
TOBP (PA-505)
3.72%, 07/07/99 3,915 3,915
-------
24,460
-------
NEW YORK -- 1.7%
Macon, New York State Management
Agency RB TOB Series 1999H
3.72%, 07/07/99 14,995 14,995
New York City, New York GO TOB
(Merlot Program) Series 1997C
3.55%, 07/07/99 28,825 28,825
New York City, New York Municipal
Assistance Corp. TOB
3.77%, 07/07/99 10,000 10,000
New York City, New York Transitional
Finance Authority Future Tax Secured
TOB Series 1999B
3.55%, 07/07/99 20,670 20,670
New York City, New York Waste
Management Facilities Water Sewer
Systems RB TOBP (PA-523)
Series 1998B
3.77%, 07/07/99 18,235 18,235
New York Local Government
Assistance Corp. TOBP (PT-1055)
Series 1997B
3.77%, 07/07/99 1,615 1,615
New York State Mortgage Agency
Revenue TOB Series 1999F
3.74%, 07/01/99 5,700 5,700
48
<PAGE>
Par Value
-------- --------
New York State Urban Development
Corp. TOBP (BTP-113)
3.90%, 07/07/99 $ 20,196 $ 20,196
New York Triborough Bridge & Tunnel
Authority TOB
3.85%, 07/07/99 4,420 4,420
Port Authority of New York &
New Jersey TOBP (PT-518)
3.77%, 07/07/99 3,390 3,390
--------
128,046
--------
NORTH CAROLINA -- 0.3%
North Carolina State TOB
3.85%, 07/07/99 18,315 18,315
--------
PENNSYLVANIA -- 0.4%
Allegheny County, Pennsylvania
Airport TOBP (PT-176)
3.77%, 07/07/99 1,930 1,930
Chester County, Pennsylvania Health
& Education TOB
3.77%, 07/07/99 1,305 1,305
Philadelphia, Pennsylvania Airport
RB TOBP (PA-387)
3.77%, 07/07/99 1,920 1,920
Philadelphia, Pennsylvania Water &
Waste RB TOBP (PT-151) Series 1993
3.77%, 07/07/99 8,190 8,190
Pittsburgh, Pennsylvania GO TOB
3.90%, 07/07/99 19,290 19,290
--------
32,635
--------
PUERTO RICO -- 0.0%
Puerto Rico Commonwealth TOBP
(PT 181)
3.54%, 07/07/99 500 500
--------
RHODE ISLAND -- 0.3%
Rhode Island Housing & Mortgage
Finance Corp. TOB Series 1999E
3.79%, 07/01/99 19,020 19,020
--------
SOUTH CAROLINA -- 0.1%
South Carolina State Capital
Improvement Revenue Refunding
TOBP (BTP-147)
3.90%, 07/07/99 5,370 5,370
--------
Par Value
-------- --------
TEXAS -- 1.4%
Austin, Texas Independant School
District TOB
3.72%, 07/07/99 $ 5,700 $ 5,700
Eagle, Texas Texas A&M Board of
Regents Permanent University
Fund TOB
3.69%, 07/07/99 28,445 28,445
El Paso, Texas Water & Sewer RB TOB
Series 1999
3.77%, 07/07/99 14,825 14,825
Regents of The University of Texas
Permanent University Fund Revenue
TOBP (BTP-143) Series 1992A
3.90%, 07/07/99 10,685 10,685
Southeast Texas Housing Finance Corp.
TOBP (PT-193)
3.82%, 07/07/99 13,270 13,270
Texas State GO TOB
3.90%, 07/07/99 12,205 12,205
Texas State Public Financing Authority
GO TOBP (BTP-127) Series 1994
3.90%, 07/07/99 14,980 14,980
--------
100,110
--------
WASHINGTON -- 0.3%
Washington State GO TOB
3.90%, 07/07/99 18,805 18,805
Washington State Public Power Supply
System Revenue Refunding TOBP
(BTP-137) (Nuclear Project Number 2)
Series 1993B
3.95%, 07/07/99 6,685 6,685
--------
25,490
--------
WISCONSIN -- 0.2%
Wisconsin Housing & Economic
Development Authority Home
Ownership TOBP (PT-194)
3.82%, 07/07/99 15,335 15,335
--------
WYOMING -- 0.1%
Wyoming Community Development
Authority Housing RB TOB
3.82%, 07/07/99 4,820 4,820
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $788,499) 788,499
--------
49
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
TAX-EXEMPT COMMERCIAL PAPER -- 10.4% (c)
ARIZONA -- 0.5%
Maricopa County, Arizona Pollution
Control Authority Revenue Refunding
Bonds TECP (Southern California
Edison Palo Alto Verde Project)
Series 1985G
3.20%, 07/07/99 $16,900 $16,900
3.15%, 10/06/99 13,000 13,000
Salt River, Arizona TECP (Argicultural
Improvement Program Project) (f)
3.30%, 07/12/99 9,515 9,515
-------
39,415
-------
COLORADO -- 0.6% (f)
Lower Colorado River Authority TECP
3.20%, 08/05/99 25,000 25,000
3.15%, 09/08/99 18,200 18,200
-------
43,200
-------
FLORIDA -- 1.3% (f)
Florida Local Government Community
Pooled TECP Series 1999A
3.20%, 08/05/99 14,336 14,336
Florida Local Government Community
Pooled TECP Series 1999B
2.95%, 08/03/99 3,000 3,000
Florida Local Government Community
Pooled TECP Series A
3.30%, 09/01/99 7,185 7,185
Orange County, Florida HFA Pooled
Hospital Loan TECP
3.25%, 07/19/99 13,200 13,200
Pinellas County, Florida Education
Facilities TECP
3.25%, 07/19/99 6,600 6,600
3.15%, 08/24/99 5,700 5,700
Sunshine State Governmental Finance
Community TECP
3.30%, 07/12/99 20,500 20,500
3.15%, 10/05/99 9,995 9,995
3.30%, 10/06/99 17,178 17,178
-------
97,694
-------
Par Value
------- -------
GEORGIA -- 0.0% (f)
Athens Clarke, Georgia IDA IDRB
TECP (Rhone Merieux Inc. Project)
Series 1988
3.30%, 08/05/99 $ 1,500 $ 1,500
-------
KENTUCKY -- 0.5%
Trimble County, Kentucky Pollution
Control TECP (Louisville G & E
Project) Series 1997
3.25%, 08/05/99 35,000 35,000
-------
LOUISIANA -- 1.0%
Louisiana GO Refunding Bonds TECP
Series 1991A (f)
2.70%, 07/15/99 8,420 8,420
Louisiana State Pollution Control
Revenue Refunding Bonds TECP
(St. James Parish/Texaco Project)
Series 1988A
3.25%, 07/29/99 21,000 21,000
Louisiana State Pollution Control
Revenue Refunding Bonds TECP
(St. James Parish/Texaco Project)
Series 1988B
3.25%, 07/29/99 40,530 40,530
-------
69,950
-------
MICHIGAN -- 0.5% (f)
Michigan State Building Authority
TECP Series 2
3.15%, 08/05/99 34,000 34,000
------
MINNESOTA -- 0.1%
Rochester, Minnesota Health Care
Facilities RB TECP (Mayo Foundation
Clinic Project) Series 1992
3.20%, 07/08/99 6,600 6,600
------
NEVADA -- 0.8% (f)
Las Vegas Valley, Nevada Water District
GO TECP Series A
3.25%, 07/09/99 5,000 5,000
3.30%, 07/09/99 16,000 16,000
3.10%, 09/07/99 40,000 40,000
------
61,000
------
50
<PAGE>
Par Value
------- --------
NEW YORK -- 1.6% (f)
New York State Environmental Quality
TECP
3.15%, 09/02/99 $55,400 $ 55,400
New York State Power Authority TECP
Series 2
3.15%, 07/27/99 27,800 27,800
3.20%, 08/05/99 25,900 25,900
3.13%, 09/13/99 11,700 11,700
--------
120,800
--------
NORTH CAROLINA -- 0.3% (f)
North Carolina Eastern Municipal
Power Agency Power System RB
TECP
3.20%, 07/07/99 11,000 11,000
3.20%, 08/05/99 4,500 4,500
3.20%, 09/13/99 6,300 6,300
--------
21,800
--------
OKLAHOMA -- 0.3% (f)
Oklahoma City, Oklahoma Industrial
Cultural Facilities Trust Health Care
Series TECP Series 1998B
3.25%, 07/21/99 15,495 15,495
3.10%, 09/10/99 10,000 10,000
--------
25,495
--------
PENNSYLVANIA -- 0.4%(f)
Montgomery County, Pennsylvania IDA
Pollution Control RB TECP
3.20%, 07/07/99 11,810 11,810
2.70%, 07/15/99 14,900 14,900
3.25%, 08/05/99 3,500 3,500
--------
30,210
--------
TEXAS -- 0.9%
Corpus Christi, Texas Utility System
TECP Series A (f)
3.25%, 07/21/99 9,650 9,650
Houston, Texas Water & Sewer TECP
Series A (f)
3.20%, 07/13/99 7,000 7,000
Texas State TRAN TECP Series 1997B
2.95%, 07/13/99 14,000 14,000
2.95%, 07/14/99 35,000 35,000
--------
65,650
--------
Par Value
-------- --------
UTAH -- 1.3% (f)
Utah State GO Highway TECP
Series 1998B
3.20%, 08/16/99 $ 13,300 $ 13,300
3.25%, 08/16/99 80,300 80,300
--------
93,600
--------
WYOMING -- 0.3% (f)
Lincoln County, Wyoming Pollution
Control RB (Pacificorp Project)
TECP
3.25%, 07/21/99 18,150 18,150
--------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $764,064) 764,064
--------
MANDATORY PUT BONDS -- 7.9% (c)
ARKANSAS -- 0.3%
Arkansas State S/F HFA Housing
Mortgage RB Series C
3.00%, 03/01/00 18,835 18,835
--------
CALIFORNIA -- 1.8% (f)
California Higher Education Loan
Authority Student Loan RB
Series 1987C
3.20%, 06/01/00 70,000 70,000
California Higher Education Loan
Authority Student Loan RB
Series 1992A2
3.18%, 04/01/00 49,300 49,300
California Higher Education Loan
Authority Student Loan RB
Series 1995E5
3.20%, 06/01/00 14,000 14,000
--------
133,300
--------
IDAHO -- 0.3%
Custer County, Idaho Pollution
Control RB (Amoco Project)
Series 1983
3.05%, 10/01/99 23,000 23,000
--------
ILLINOIS -- 1.4%
Chicago, Illinois GO (f)
2.96%, 11/04/99 5,000 5,000
Chicago, Illinois RB (f)
2.85%, 10/28/99 90,035 90,035
51
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
Illinois Development Financing
Authority RB
3.10%, 03/01/00 $ 6,900 $ 6,900
Orland Park, Illinois IDRB (Orland
Properties Project) (f)
3.40%, 07/07/99 1,040 1,040
-------
102,975
-------
MINNESOTA -- 0.2% (f)
Minnesota State S/F HFA
3.70%, 08/09/99 13,600 13,600
-------
NEW JERSEY -- 0.1% (f)
New Jersey State Higher Education
Assistance Authority Student Loan RB
Series 1999B
3.10%, 06/01/00 6,000 6,000
-------
PENNSYLVANIA -- 0.2%
Beaver County, Pennsylvania IDA
Pollution Control Refunding RB
(Ohio Edison County) Series 1992A
3.05%, 04/01/00 15,500 15,500
-------
RHODE ISLAND -- 0.3% (f)
Rhode Island State Student Loan
Authority RB
3.21%, 07/19/99 19,000 19,000
-------
TENNESSEE -- 0.3%
Metropolitan Nashville & Davidson
County, Tennessee IDRB (Insurance
Co. America Project)
3.25%, 11/01/99 5,700 5,700
Tennessee Housing Development
Agency (Homeownership Program)
Series 1999-1B
3.25%, 06/01/00 20,000 20,000
-------
25,700
-------
TEXAS -- 3.0% (f)
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992A
3.55%, 09/01/99 32,500 32,500
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992B
4.00%, 07/01/99 14,000 14,000
Par Value
-------- --------
Greater East Texas Higher Education
Authority Student Loan RB
Series 1993A
3.15%, 05/01/00 $ 48,150 $ 48,150
Greater East Texas Higher Education
Authority Student Loan RB
Series 1993B2
3.20%, 06/01/00 6,500 6,500
Greater East Texas Higher Education
Authority Student Loan RB
Series 1995
3.15%, 05/01/00 40,000 40,000
Greater East Texas Higher Education
Authority Student Loan RB
Series 1995A
3.20%, 05/01/00 22,700 22,700
Greater East Texas Student Loan Corp.
RB Series 1996A
3.00%, 03/01/00 55,670 55,670
Greater East Texas Student Loan Corp.
RB Series 1996B
3.20%, 06/01/00 2,125 2,125
--------
221,645
--------
TOTAL MANDATORY PUT BONDS
(Cost $579,555) 579,555
--------
TAX AND REVENUE ANTICIPATION NOTES -- 6.1% (c)
CALIFORNIA -- 3.6% (f)
California School Cash Reserve
Program Authority Pooled TRAN
Series 1997A
3.37%, 07/02/99 48,000 48,001
3.42%, 07/02/99 3,000 3,000
3.48%, 07/02/99 9,700 9,700
3.62%, 07/02/99 40,000 40,001
4.31%, 07/02/99 10,000 10,000
California School Cash Reserve
Program Authority Pooled TRAN
Series 1999A (d)
3.11%, 07/03/00 150,000 151,313
--------
262,015
--------
52
<PAGE>
Par Value
-------- --------
NEW MEXICO -- 2.1% (d)
New Mexico State TRAN
3.23%, 06/30/00 $150,000 $151,114
3.28%, 06/30/00 6,000 6,042
--------
157,156
--------
PENNSYLVANIA -- 0.4%
Philadelphia, Pennsylvania School
District TRAN Series 1999C (d)(f)
3.45%, 06/30/00 15,000 15,080
Philadelphia, Pennsylvania TRAN
Series 1999A
3.50%, 06/30/00 17,000 17,123
--------
32,203
--------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $451,374) 451,374
-------
REVENUE BONDS -- 3.6% (c)
ARIZONA -- 0.0%
Maricopa County, Arizona Unified
School District #93 RB (Cave Creek
Project) Series 1997A (f)
3.30%, 07/01/99 1,500 1,500
Phoenix, Arizona Civic Improvement
Corp. Wastewater Systems Lease RB
Series 1993
3.00%, 07/01/99 1,005 1,005
-------
2,505
-------
COLORADO -- 0.1%
Denver, Colorado City & County S/F
Metro Mayors Caucus RB
3.20%, 05/01/00 7,300 7,300
-------
FLORIDA -- 0.4%
Dade County, Florida Residential
Facility Refunding RB (f)
3.47%, 10/01/99 5,000 5,031
Dade County, Florida Sales Tax RB (f)
3.03%, 10/01/99 2,010 2,020
Dade County, Florida Water & Sewer
System RB Series 1997 (f)
2.85%, 10/01/99 1,750 1,759
Par Value
- ----- -------
Florida Gas Utility RB
(Gas Project #1) (f)
3.00%, 12/01/99 $ 2,250 $ 2,262
Florida State Board of Education
Lottery RB Series 1999C (f)
2.90%, 07/01/99 8,355 8,355
Florida State Division Board Financial
Department General Services
Environmental Preservation 2000 RB
Series A (f)
3.55%, 07/01/99 6,765 6,765
Florida State Division Board Financial
Department General Services RB
Series A (f)
3.54%, 07/01/99 1,735 1,735
Florida State Turnpike Authority RB (f)
2.85%, 07/01/99 1,225 1,249
Jacksonville, Florida Electric Water &
Sewer RB Series 1997B
2.98%, 10/01/99 1,000 1,004
Miami Dade County, Florida Public
Services RB (f)
2.98%, 10/01/99 1,645 1,653
-------
31,833
-------
HAWAII -- 0.0% (f)
Hawaii State Airports System RB 2nd
Series
3.60%, 07/01/00 1,680 1,722
-------
ILLINOIS -- 0.1% (f)
Hoffman Estates, Illinois Tax Incremental
Revenue Tax Allocation Bond
2.95%, 11/15/99 2,280 2,297
Illinois Municipal Electric Agency
Power Supply RB
3.05%, 02/01/00 1,850 1,865
Winnebago & Boone Counties, Illinois
School District No.205 RB
3.25%, 02/01/00 1,200 1,227
-------
5,389
-------
INDIANA -- 0.1%
Indiana Bond Backed Common School
Fund Advanced Purchase Funding RB
3.08%, 08/01/99 4,000 4,005
-------
53
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
IOWA -- 0.0% (f)
Iowa Student Loan Corp. RB
Series 1996F
3.10%, 12/01/99 $ 1,000 $ 1,004
-------
KENTUCKY -- 0.0% (f)
Jefferson County, Kentucky Health
System RB
3.15%, 10/01/99 2,545 2,550
Marion County, Kentucky Health
System RB
3.15%, 10/01/99 1,050 1,052
-------
3,602
-------
MARYLAND -- 0.1%
Maryland Department of
Transportation RB
3.25%, 06/15/00 3,935 3,958
-------
MASSACHUSETTS -- 0.3%
Massachusettes HFA S/F Housing RB
Series 1999B1
3.05%, 11/15/99 5,300 5,300
Massachusettes HFA S/F Housing RB
Series 1999B2
3.00%, 11/15/99 12,515 12,515
Massachusetts Health & Education
Facilities Authority RB (St. Elizabeth
Hospital Boston Project) Series C (f)
3.65%, 08/15/99 695 697
-------
18,512
-------
MICHIGAN -- 0.1%
Michigan Municipal Bond Authority
State Revolving Fund RB (f)
3.43%, 10/01/99 1,000 1,005
Michigan State HDA S/F Housing RB
Series 1999A
3.20%, 06/01/00 3,835 3,835
-------
4,840
-------
MINNESOTA -- 0.1%
Dakota County, Minnesota Housing &
Redevelopment Authority S/F
Housing Refunding RB Series 1999C
3.20%, 04/25/00 6,250 6,250
Par Value
------- -------
Minnesota State HFA S/F Mortgage RB
Series 1999F (f)
3.20%, 06/01/00 $ 3,750 $ 3,750
-------
10,000
-------
MONTANA -- 0.1%
Montana State Higher Education
Assistance Corp. Student Loan RB
Series 1993B
3.28%, 12/01/99 7,000 7,046
-------
NEVADA -- 0.1% (f)
Clark County, Nevada Highway
Improvement RB Motor Vehicle
Fuel Tax
3.35%, 07/01/99 4,000 4,000
-------
NEW JERSEY -- 0.0%
New Jersey State Transportation
Authority RB Series 1992A
3.30%, 06/15/00 1,000 1,025
-------
NEW YORK -- 0.0%
New York City, New York Municipal
Assistance Corp. RB Series 68
3.00%, 07/01/99 2,100 2,100
-------
OHIO -- 0.1% (f)
Cuyahoga County, Ohio Hospital RB
(Fairview General Hospital Project)
3.10%, 08/01/99 4,000 4,094
-------
OREGON -- 0.2%
Oregon State Housing & Community
Services Department Management
RB Series1999C
3.15%, 04/13/00 5,000 5,000
Oregon State Housing & Community
Services Department Management
RB Series1999D
3.20%, 04/13/00 1,900 1,900
Oregon State Housing & Community
Services Department S/F Mortgage
RB Series 1999H (d)
3.48%, 06/29/00 6,000 6,000
-------
12,900
-------
54
<PAGE>
Par Value
------- -------
PENNSYLVANIA -- 0.3% (f)
Montgomery County, Pennsylvania
Higher Education & Health Authority
RB Series 1989B (United Hospital
Project)
3.20%, 11/01/99 $ 3,030 $ 3,073
Pennsylvania Intergovernmental
Cooperative Authority Special Tax
Revenue Refunding Bonds
(Philadelphia Funding Program)
3.25%, 06/15/00 2,695 2,758
3.40%, 06/15/00 2,170 2,222
Pennsylvania State Higher Educational
Facilities Authority Higher
Education RB Series 1999R
3.25%, 06/15/00 1,290 1,311
Pennsylvania State Turnpike
Commission RB Series 1986K
3.20%, 12/01/99 2,000 2,076
Pennsylvania State Turnpike
Commission RB Series 1989K
3.20%, 12/01/99 1,150 1,193
3.40%, 12/01/99 1,000 1,036
Philadelphia, Pennsylvania Hospital &
Higher Education Facilities Authority
RB (Northwestern Corp. Project)
Series 1991A
3.25%, 06/01/00 5,200 5,546
-------
19,215
-------
RHODE ISLAND -- 0.2% (f)
Rhode Island Health & Education
Building Corp. Hospital Funding RB
(Johnson & Wales University Project)
3.16%, 04/01/00 4,460 4,717
Rhode Island Health & Education
Building Corp. Hospital Funding RB
(Land-Mark Medical Center Project)
2.85%, 07/01/99 7,520 7,670
-------
12,387
-------
Par Value
------- -------
SOUTH CAROLINA -- 0.0%
Clemson University, South Carolina
University RB Series 1998A (f)
3.25%, 05/01/00 $ 2,340 $ 2,366
South Carolina Public Services
Authority Refunding RB Series 1992A
3.30%, 07/01/99 1,000 1,000
-------
3,366
-------
SOUTH DAKOTA -- 0.6%
South Dakota HDA Homeownership
Mortgage RB Series 1998H
3.20%, 12/02/99 3,145 3,145
South Dakota HDA Homeownership
Mortgage RB Series 1998I
3.20%, 12/02/99 16,105 16,105
South Dakota HDA Homeownership
Mortgage RB Series 1999F (d)
3.45%, 07/07/00 22,000 22,000
-------
41,250
-------
TEXAS -- 0.1%
Austin, Texas Utilities System RB
Series 1985A (f)
3.50%, 05/15/00 1,350 1,419
Dallas Fort Worth, Texas Regional &
International Airport Refunding
RB (f)
3.35%, 11/01/99 1,000 1,004
Fort Worth, Texas Water & Sewer
Refunding Improvement RB
3.05%, 02/15/00 2,110 2,135
San Antonio, Texas Water Revenue
Refunding Bonds (f)
3.25%, 05/15/00 2,575 2,633
Texas Tech University, Texas Board
of Regents (f)
3.07%, 08/15/99 1,860 1,862
3.13%, 02/15/00 1,740 1,749
-------
10,802
-------
55
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------ -------
UTAH -- 0.1%
Intermountain, Utah Power Agency
Power Supply RB Series 1989A (f)
2.85%, 07/01/99 $4,400 $ 4,488
Intermountain, Utah Power Agency
Power Supply Revenue Refunding
Bonds Series 1996C (f)
2.90%, 07/01/99 2,000 2,000
Utah State Board of Regents Student
Loan RB Series 1998H
3.60%, 05/01/00 4,000 4,010
-------
10,498
-------
VERMONT -- 0.0% (f)
Vermont Student Assistance Corp.
Education Loan Financing Program
RB Series 1992A3
3.07%, 12/15/99 2,000 2,025
-------
VIRGINIA -- 0.0%
Virginia State Public School Authority
RB Series 1994A
2.85%, 08/01/99 2,885 2,893
-------
WASHINGTON -- 0.5%
Franklin County, Washington Public
Utility District #001 RB (f)
3.60%, 09/01/99 1,200 1,201
Spokane County, Washington
International Airport Revenue
Refunding Bonds Series 1999B (f)
3.25%, 10/01/99 2,160 2,160
Washington State Housing Finance
Commission S/F Housing Program
RB Series 1A-S
3.00%, 02/01/00 5,000 5,000
Washington State Housing Finance
Commission S/F Housing Program
RB Series 1999-2A-S
3.15%, 05/01/00 8,825 8,825
Washington State Housing Finance
Commission S/F Housing Program
RB Notes Series 1N-S
2.95%, 02/01/00 6,000 6,000
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series 1992A
2.90%, 07/01/99 4,500 4,500
Par Value
------- -------
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series 1997A
3.70%, 07/01/99 $ 8,000 $ 8,000
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series A
2.95%, 07/01/99 2,000 2,000
-------
37,686
-------
WEST VIRGINIA -- 0.0% (f)
West Virginia State Building
Commission RB
3.00%, 07/01/99 2,500 2,500
-------
TOTAL REVENUE BONDS
(Cost $268,457) 268,457
-------
FIXED RATE TENDER OPTION BONDS -- 3.1% (c)(e)(f)
CONNECTICUT -- 0.2%
Connecticut HFA Mortgage Program
TOB Series 1998T
3.55%, 09/15/99 12,995 12,995
-------
GEORGIA -- 0.1%
Cherokee County, Georgia Water &
Sewer Authority TOBP (PT-266)
3.30%, 05/11/00 8,455 8,455
-------
HAWAII -- 0.3%
Hawaii State Airport System RB TOB
Series 1991-2
3.55%, 06/01/00 14,765 14,765
Hawaii State COP Series 1998A TOBP
(BTP-322)
3.32%, 09/15/99 9,900 9,900
--------
24,665
-------
ILLINOIS -- 0.2%
State of Illinois GO TOBP (BTP-313)
3.20%, 08/17/99 11,880 11,880
-------
INDIANA -- 0.1%
Indiana State Housing TOB 1999A
3.15%, 12/02/99 9,995 9,995
-------
56
<PAGE>
Par Value
-------- -------
MICHIGAN -- 0.2%
Wayne County, Michigan Airport RB
TOBP (BTP-314) (Detroit Airport
Project)
3.35%, 08/02/99 $ 14,850 $14,850
-------
PENNSYLVANIA -- 0.8%
Pennsylvania HFA S/F Mortgage RB
TOBP (PT-119A) Series 1997
3.45%, 03/09/00 23,000 23,000
Pennsylvania HFA TOB Series 1998Y
3.06%, 11/16/99 12,395 12,395
Pennsylvania State University Revenue
Refunding Bonds TOB Series 2
3.05%, 10/07/99 7,730 7,730
Philadelphia, Pennsylvania IDA
Airport RB TOB Series 1998A
3.75%, 08/04/99 15,000 15,000
-------
58,125
-------
TEXAS -- 0.5%
Houston, Texas GO TOB
2.95%, 08/02/99 21,655 21,655
Texas Department of Housing &
Community Affairs Residential
Meeting RB TOB Series 1999C
3.05%, 12/16/99 14,995 14,995
-------
36,650
-------
UTAH -- 0.6%
Utah Board of Regents TOB
3.25%, 02/08/00 30,060 30,060
Utah Building RB TOB
3.15%, 10/01/99 9,695 9,695
-------
39,755
-------
VIRGINIA -- 0.1%
Virginia State Public School Authority
School Equipment Financing TOB
Series 5 (BTP-275)
3.30%, 09/01/99 6,190 6,190
-------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $223,560) 223,560
-------
Par Value
------ -------
GENERAL OBLIGATIONS -- 1.8% (c)
ALABAMA -- 0.0% (f)
Talladega County, Alabama GO
3.10%, 03/01/00 $1,100 $ 1,103
-------
ALASKA -- 0.0% (f)
Anchorage, Alaska Refunding School
GO Series 1993A
3.10%, 08/01/99 1,145 1,147
-------
ARIZONA -- 0.1% (f)
Glendale, Arizona Refunding GO Bonds
3.25%, 07/01/00 4,000 4,060
-------
DISTRICT OF COLUMBIA -- 0.0% (f)
District of Columbia Refunding GO
Series 1993D
3.15%, 12/01/99 3,450 3,472
-------
GEORGIA -- 0.1%
Dougherty County, Georgia School
District Sales Tax GO
3.40%, 09/01/99 3,275 3,281
Georgia State GO Series 1989B
3.10%, 07/01/99 1,000 1,000
Georgia State GO Series 1991D
2.98%, 11/01/99 2,500 2,533
Georgia State GO Series 1993C
2.85%, 07/01/99 3,000 3,000
Georgia State GO Series 1995C
3.43%, 07/01/99 1,000 1,000
-------
10,814
-------
ILLINOIS -- 0.0% (f)
Berwyn, Illinois GO Series 1999
3.00%, 12/01/99 1,955 1,955
Cook County, Illinois Housing
Development GO (204 Lyons
Township Project)
3.00%, 12/01/99 1,505 1,517
-------
3,472
-------
MAINE -- 0.1%
Maine State General Purpose GO
3.22%, 06/15/00 5,855 5,925
Maine State Highway Improvement GO
3.22%, 06/15/00 1,690 1,710
-------
7,635
-------
57
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
MARYLAND -- 0.0%
Washington, Maryland Suburban
Sanitation District Sewage Disposal
Revenue Refunding Bonds GO
(Montgomery & Prince George
County Project)
3.10%, 11/01/99 $ 3,000 $ 3,029
-------
MASSACHUSETTS -- 0.1% (f)
Palmer, Massachusettes GO
3.20%, 03/01/00 4,500 4,708
-------
MICHIGAN -- 0.3%
Detroit, Michigan City School
District GO
3.20%, 06/01/00 20,000 20,142
-------
MINNESOTA -- 0.1%
Minnesota GO
3.43%, 08/01/99 1,000 1,003
Minnesota State Various Purpose GO
3.25%, 06/01/00 5,500 5,561
-------
6,564
-------
NEVADA -- 0.0% (f)
Washoe County, Nevada Improvement
Refunding GO
3.40%, 07/01/99 2,750 2,750
-------
NEW YORK -- 0.2% (f)
Nassau County, New York General
Improvement GO Series 1999A
3.18%, 06/01/00 10,846 10,877
-------
OREGON -- 0.0%
Washington County, Oregon School
District No. 48J Beaverton GO
2.85%, 08/01/99 2,570 2,574
-------
SOUTH CAROLINA -- 0.2%
Greenville, South Carolina School
District GO
3.10%, 03/01/00 11,000 11,080
South Carolina State Highway GO
Series 1999A
3.10%, 05/01/00 2,000 2,023
-------
13,103
-------
Par Value
------- --------
TEXAS -- 0.3%
Garland, Texas Refunding GO
3.10%, 08/15/99 $ 3,000 $ 3,009
Plano, Texas Revenue Refunding GO
Improvement Bond
3.15%, 09/01/99 1,690 1,693
Port of Houston, Texas Authority GO (f)
3.10%, 10/01/99 2,000 2,012
Texas State College Student Loan GO
3.68%, 08/01/99 2,000 2,002
Texas State GO (Veterans Land
Refunding Project) (f)
3.20%, 12/01/99 7,435 7,592
Texas State Public Finance Authority
GO Series 1996B
2.90%, 10/01/99 2,000 2,008
Zapata County, Texas Industrial
School District GO (f)
3.65%, 08/15/99 1,090 1,093
--------
19,409
--------
UTAH -- 0.1%
Davis County, Utah School District GO
3.25%, 06/01/00 1,425 1,438
Utah State GO
3.17%, 07/01/99 3,200 3,200
--------
4,638
--------
WASHINGTON -- 0.2%
King County, Washington Limited
Tax GO & Refunding Bonds
Series 1999A
3.14%, 12/01/99 4,260 4,275
Seattle, Washington GO
3.12%, 03/01/00 2,705 2,729
Washington State GO Series 1992B
3.40%, 06/01/00 2,000 2,038
Washington State GO Series 1994A
3.50%, 09/01/99 2,000 2,013
Washington State GO Series 1995C
2.90%, 07/01/99 1,000 1,000
--------
12,055
--------
TOTAL GENERAL OBLIGATIONS
(Cost $131,552) 131,552
--------
58
<PAGE>
Par Value
-------- -------
OPTIONAL PUT BONDS -- 1.5% (c)
CALIFORNIA -- 0.1% (f)
California Higher Education Loan
Authority Student Loan RB
Series 1992D1
3.51%, 08/01/99 $ 10,000 $ 10,008
--------
MONTANA -- 0.5% (f)
Montana State Board of Investments
Resource Recovery RB (Colstrip
Project)
3.25%, 05/31/00 35,000 35,000
--------
TEXAS -- 0.7% (f)
Grapevine, Texas Industrial
Development Corp. Airport RB
(Singer County Project)
3.25%, 04/03/00 18,975 18,975
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992B
3.60%, 09/01/99 14,400 14,400
Greater East Texas Higher Education
Authority Student Loan RB
Series 1993B1
3.00%, 02/01/00 11,000 11,000
Greater East Texas Higher Education
Authority Student Loan RB
Series 1995B
3.65%, 07/01/99 10,000 10,000
--------
54,375
--------
WYOMING -- 0.2%
Lincoln County, Wyoming Pollution
Control RB (Amoco Project)
Series 1983
3.00%, 10/01/99 14,350 14,350
--------
TOTAL OPTIONAL PUT BONDS
(Cost $113,733) 113,733
--------
Par Value
-------- -------
BOND ANTICIPATION NOTES -- 1.2% (c)
KANSAS -- 0.3%
Olathe, Kansas Temporary BAN
Series 1999A
3.15%, 06/01/00 $ 20,475 $20,539
-------
MASSACHUSETTS -- 0.2%
Kingston, Massachusetts BAN
2.98%, 11/24/99 17,970 17,989
-------
NEW JERSEY -- 0.4%
East Brunswick Township, New Jersey
BAN
3.25%, 06/15/00 8,000 8,037
Jersey City, New Jersey School
Promissory BAN
3.00%, 03/03/00 13,000 13,042
Passaic County, New Jersey BAN
3.24%, 06/15/00 8,600 8,621
-------
29,700
-------
NEW YORK -- 0.1%
West Seneca, New York BAN
3.10%, 04/06/00 4,990 5,001
-------
RHODE ISLAND -- 0.1%
Barrington, Rhode Island BAN
3.60%, 08/26/99 11,300 11,307
-------
WISCONSIN -- 0.1%
Oregon, Wisconsin BAN
3.46%, 03/15/00 1,250 1,252
Oshkosh, Wisconsin Area School
District BAN
3.21%, 12/15/99 3,850 3,852
-------
5,104
-------
TOTAL BOND ANTICIPATION NOTES
(Cost $89,640) 89,640
-------
59
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
TAX ANTICIPATION NOTES -- 0.8% (c)
IDAHO -- 0.7% (d)
Idaho State TAN
3.40%, 06/30/00 $50,000 $50,410
-------
WASHINGTON -- 0.1%
King County, Washington Limited Tax
GO & Refunding Bonds TAN
Series 1999
3.20%, 06/01/00 9,000 9,023
-------
TOTAL TAX ANTICIPATION NOTES
(Cost $59,433) 59,433
-------
REVENUE ANTICIPATION NOTES -- 0.6% (c)
FLORIDA -- 0.1%
Brevard County, Florida School Board
RAN
3.10%, 05/06/00 5,000 5,016
-------
IOWA -- 0.5% (f)
Iowa State School Cash Anticipation
Program Corporate Warrant
Certificates RAN Series 1999A
3.23%, 06/23/00 40,000 40,292
3.41%, 06/23/00 1,320 1,327
-------
41,619
-------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $46,635) 46,635
-------
CERTIFICATES OF PARTICIPATION -- 0.2% (c)(f)
PENNSYLVANIA -- 0.2%
Pennsylvania State COP Series A
3.20%, 07/01/99 10,000 10,000
------
SOUTH CAROLINA -- 0.0%
Florence County, South Carolina
Public Facilities Corp. COP (Law
Enforcement Civic Center Project)
2.98%, 03/01/00 1,500 1,560
-------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $11,560) 11,560
-------
Par Value
-------- --------
GRANT ANTICIPATION NOTES -- 0.0% (c)
New Jersey State Transportation Corp.
Capital GAN Series A
3.90%, 09/01/99 $ 2,500 $ 2,503
--------
TOTAL GRANT ANTICIPATION NOTES
(Cost $2,503) 2,503
--------
Shares
------
OTHER INVESTMENT COMPANIES -- 0.0% (g)
Provident Institutional Funds -
Muni Fund Portfolio
2.88% 219 219
----------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $219) 219
----------
TOTAL INVESTMENTS -- 103.8%
(Cost $7,654,925) 7,654,925
----------
OTHER ASSETS AND LIABILITIES-- (3.8%)
Other assets 165,094
Liabilities (446,779)
----------
(281,685)
-----------
TOTAL NET ASSETS-- 100.0% $7,373,240
==========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
60
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------- -------
VARIABLE RATE OBLIGATIONS -- 52.7% (b)(f)
CALIFORNIA -- 52.3%
ABAG Financing Authority for
Non-Profit Corporations M/F RB
(Architect Building Project)
3.70%, 07/07/99 $ 3,200 $ 3,200
ABAG Financing Authority for
Non-Profit Organizations COP
(Bentley School)
3.30%, 07/07/99 5,230 5,230
ABAG Financing Authority for
Non-Profit Organizations COP
(Harker School Project)
3.40%, 07/07/99 5,500 5,500
ABAG Financing Authority for
Non-Profit Organizations COP
(Lucile Salter Packard Project)
3.15%, 07/07/99 5,000 5,000
ABAG Financing Authority M/F
Housing (Vintage Chateau)
4.00%, 07/07/99 11,000 11,000
ABAG Financing Authority M/F
Housing RB (Mountain View
Apartments) Series 1997A
3.75%, 07/07/99 3,445 3,445
Alameda County, Calidfornia IDA RB
(Malmberg Engineering, Inc. Project)
3.75%, 07/07/99 3,000 3,000
Alameda County, California IDRB
(Aitchison Family Project)
Series 1993A
3.40%, 07/07/99 2,800 2,800
Alameda County, California IDRB
(Association Heat & Control Project)
3.40%, 07/07/99 810 810
Alameda County, California IDRB
(JMS Family Partners) Series A
3.40%, 07/07/99 1,400 1,400
Alameda County, California IDRB
(Scientific Technology Project)
Series 1994A
3.45%, 07/07/99 2,780 2,780
Alameda-Contra Costa, California
School Financial Authority COP
(Capital Improvement Finance Project)
3.70%, 07/07/99 745 745
Anaheim, California COP (Anaheim
Memorial Hospital Assoc. Project)
3.25%, 07/07/99 2,070 2,070
Par Value
------- -------
Anaheim, California COP (Police
Facility Financing Project)
3.25%, 07/07/99 $ 700 $ 700
Anaheim, California Housing Authority
M/F Housing RB (Casa Grande
Apartments) Series 1997A
3.40%, 07/07/99 3,795 3,795
Anaheim, California Housing Authority
M/F Housing RB (Port Trinidad
Apartments) Series 1997C
3.40%, 07/07/99 2,140 2,140
Anaheim, California Housing Authority
M/F Housing RB (Sage Park Project)
Series A
3.75%, 07/07/99 2,000 2,000
Auburn, California Unified School
District COP
3.25%, 07/07/99 10,750 10,750
Avalon, California Community
Improvement Agency Tax Allocation RB
3.85%, 07/07/99 9,975 9,975
Big Bear Lake, California IDRB COP
(Southwest Gas Corp. Project) Series A
3.35%, 07/07/99 38,400 38,400
Burbank, California Redevelopment
Agency M/F Housing RB
3.40%, 07/06/99 10,700 10,700
California Alternative Energy Source
Financing Authority (GE Capital Corp.
Arroyo Project) Series A
3.35%, 07/07/99 25,330 25,330
California Alternative Energy Source
Financing Authority (GE Capital Corp.
Arroyo Project) Series 1993B
3.05%, 07/07/99 12,260 12,260
California Eastern Water Municipal
District Water & Sewer RB COP
Series 1993B
3.35%, 07/07/99 28,850 28,850
California Economic Development
Financing Authority (Lion Raisin
Project)
3.65%, 07/07/99 2,000 2,000
California Education Facilities Authority
(Life Chiropractic College West)
3.35%, 07/07/99 5,000 5,000
California Education Facilities Authority
(Stanford University Project) Series L6
3.05%, 07/07/99 9,315 9,315
61
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
California Education Facilities
Authority (University of Judaism
Project) Series A
3.85%, 07/07/99 $ 5,500 $ 5,500
California Finance Authority
Pollution Control RB (Pacific Gas &
Electric Company)
3.00%, 07/01/99 17,000 17,000
California Health Facilities Financing
Authority RB (California Prebyterian
Homes) Series 1998
3.25%, 07/07/99 32,065 32,065
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1988C
3.00%, 07/07/99 3,100 3,100
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1995C
3.00%, 07/07/99 5,000 5,000
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1996C
3.00%, 07/07/99 3,000 3,000
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1996D
3.00%, 07/07/99 3,000 3,000
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1997B
3.00%, 07/07/99 4,800 4,800
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series A
3.00%, 07/07/99 1,400 1,400
California Health Facilities Financing
Authority RB (Catholic Healthcare West)
Series 1988B
3.00%, 07/07/99 14,900 14,900
California Health Facilities Financing
Authority RB (Children's Hospital
Project) Series 1991
3.35%, 07/07/99 17,700 17,700
California Health Facilities Financing
Authority RB (Scripps Memorial
Hospital) Series 1991B
3.00%, 07/07/99 400 400
Par Value
------- -------
California Health Facilities Financing
Authority RB (St. Francis Hospital)
Series 1995E
3.35%, 07/07/99 $ 3,800 $ 3,800
California Health Facilities Financing
Authority RB (St. Joseph Health System
Project) Series 1985A
2.85%, 07/01/99 1,000 1,000
California Housing Finance Agency
Home Mortgage RB Series 1999J1
3.00%, 07/07/99 16,300 16,300
California Housing Financing Agency
Home Mortage RB Series 1999J2
3.00%, 07/07/99 15,000 15,000
California Infrastructure & Economic
Development Bank IDRB (American
Derosa-Lamparts)
3.35%, 07/07/99 4,950 4,950
California Infrastructure & Economic
Development Bank IDRB (Bonded
Motors Inc. Project)
3.45%, 07/07/99 5,130 5,130
California Infrastructure & Economic
Development Bank IDRB (Lafayette
Textile Industries Project)
3.40%, 07/07/99 4,000 4,000
California Infrastructure & Economic
Development Bank IDRB (Nelson
Name Plate Co. Project)
3.20%, 07/07/99 3,950 3,950
California Infrastructure & Economic
Development Bank IDRB (Roller
Bearing Co. of America Santa Ana
Project)
3.25%, 07/07/99 2,400 2,400
California Pollution Control Financing
Authority RB (Green Team of San Jose
Project)
3.45%, 07/07/99 4,400 4,400
California Pollution Control Financing
Authority RB (Pacific Gas & Electric
Co. Project) Series 1996B
3.20%, 07/07/99 94,700 94,700
California Pollution Control Financing
Authority RB (Pacific Gas & Electric
Co. Project) Series 1996E
3.30%, 07/01/99 2,500 2,500
62
<PAGE>
Par Value
------- -------
California Pollution Control Financing
Authority RB (Pacific Gas & Electric
Co. Project) Series A
3.10%, 07/07/99 $68,500 $68,500
California Pollution Control Financing
Authority RB (Pacific Gas & Electric
Co. Project) Series D
3.30%, 07/07/99 11,400 11,400
California Pollution Control Financing
Authority RB (Reynolds Metals Co.
Project) Series 1985
3.40%, 07/07/99 1,300 1,300
California Pollution Control Financing
Authority RB (Southern California
Edison Project) Series 1986C
3.35%, 07/01/99 1,800 1,800
California Pollution Control Financing
Authority RB (Southern California
Edison) Series D
3.35%, 07/01/99 7,300 7,300
California Pollution Control Financing
Authority Resource Recovery RB
(Sanger Project) Series 1990A
3.35%, 07/07/99 2,800 2,800
California Pollution Control Financing
Authority Resource Recovery Solid
Waste Disposal RB (Atlas Disposal
Industrial Project) Series 1999A
3.10%, 07/07/99 3,000 3,000
California Pollution Control Financing
Authority Resource Recovery Solid
Waste Disposal RB (Bay Leasing, Inc.
Project) Series 1999A
3.45%, 07/07/99 10,000 10,000
California Pollution Control Financing
Authority Revenue Refunding Bonds
(Pacific Gas & Electric Co. Project)
Series 1996D
4.60%, 07/01/99 2,000 2,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Allan Co. Project)
3.45%, 07/07/99 1,100 1,100
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Athens Disposal Co. Project)
Series 1995A
3.45%, 07/07/99 18,260 18,260
Par Value
------- -------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(BLT Enterprises Project) Series 1995A
3.45%, 07/07/99 $ 4,200 $ 4,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(BLT Enterprises) Series 1999A
3.45%, 07/07/99 9,000 9,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Burrtec Waste Industries Project)
Series 1995A
3.50%, 07/07/99 2,470 2,470
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Burrtec Waste Industries Project)
Series 1995B
3.50%, 07/07/99 1,770 1,770
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Cold Cyn Landfill Project)
3.45%, 07/07/99 7,200 7,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990A
3.35%, 07/07/99 32,700 32,700
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990C
3.35%, 07/07/99 2,190 2,190
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Contra Costa Services) Series 1995A
3.40%, 07/07/99 3,900 3,900
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Edco Disposal Corp. Project)
Series 1996A
3.45%, 07/01/99 17,100 17,100
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Madera Disposable Project) Series A
3.50%, 07/07/99 1,800 1,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Santa Clara Project)
3.45%, 07/07/99 11,100 11,100
3.50%, 07/07/99 4,300 4,300
63
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Company Martinez Project)
Series 1996B
3.00%, 07/07/99 $ 200 $ 200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Solag Disposal Project) Series 1997A
3.45%, 07/07/99 3,735 3,735
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Sun Valley Paper Project)
3.45%, 07/07/99 1,350 1,350
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Talco Plastics Project) Series 1997A
3.40%, 07/07/99 4,300 4,300
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Taormina Industries, Inc. Project)
Series 1994B
3.35%, 07/07/99 2,225 2,225
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Tri Community Recycle Project)
3.45%, 07/07/99 2,455 2,455
California Pollution Control Financing
Authority Solid Waste Disposal RB
(West Valley Project) Series 1997A
3.50%, 07/07/99 9,200 9,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Western Waste Industrial)
Series 1994A
3.95%, 07/07/99 6,000 6,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
3.45%, 07/07/99 5,235 5,235
3.50%, 07/07/99 4,025 4,025
California Pollution Control Financing
Authority Solid Waste Disposal RB
Series A
3.20%, 07/07/99 10,000 10,000
California Public Power Agency
Subordinate Lien (San Juan Project)
Series 1997D
3.25%, 07/07/99 2,500 2,500
Par Value
------- -------
California School Facilities Financing
Corp. COP (Capital Improvement
Financing Project) Series 1999D
3.50%, 07/07/99 $11,215 $11,215
California State Economic Development
Financing Authority (Mannesmann
Dematic Corp.)
3.65%, 07/01/99 3,200 3,200
California State Economic Development
Financing Authority IDRB
(Calco Project)
3.70%, 07/07/99 885 885
California State Economic Development
Financing Authority IDRB (Gaiser
Tool Project)
3.40%, 07/07/99 3,040 3,040
California State Economic Development
Financing Authority IDRB (Mercury
Air Group)
3.65%, 07/01/99 17,300 17,300
California State Economic Development
Financing Authority RB (Boyd
Furniture)
3.40%, 07/07/99 8,000 8,000
California State Economic Development
Financing Authority RB (Buck Center
for Aging Project)
3.15%, 07/07/99 50,300 50,300
California State Economic Development
Financing Authority RB (Costa
Macoroni Project)
3.40%, 07/07/99 3,710 3,710
California State Economic Development
Financing Authority RB (Killion
Industry's Project)
3.95%, 07/07/99 6,500 6,500
California Statewide Community
Development Authority (Davis
Retirement Care)
3.10%, 07/01/99 500 500
California Statewide Community
Development Authority (Dr. Nichols
Pistachio) Series C
3.70%, 07/01/99 1,000 1,000
California Statewide Community
Development Authority COP (Northern
California Retired Police Officers)
3.20%, 07/01/99 12,660 12,660
64
<PAGE>
Par Value
------- -------
California Statewide Community
Development Authority COP
3.30%, 07/07/99 $ 2,485 $ 2,485
California Statewide Community
Development Authority IDRB (Biocol
Investments LP) Series 1997B
4.40%, 07/07/99 1,500 1,500
California Statewide Community
Development Authority IDRB
(Integrated Rolling Co. Project)
Series 1999A
3.25%, 07/07/99 2,900 2,900
California Statewide Community
Development Authority M/F Housing
RB (Aegis of Aptos Project)
3.30%, 07/01/99 1,850 1,850
California Statewide Community
Development Authority M/F Housing
RB (Brookhollow Project) Series H
3.75%, 07/07/99 5,000 5,000
California Statewide Community
Development Authority M/F Housing
RB (Casa la Palma Project) Series G
3.75%, 07/07/99 7,000 7,000
California Statewide Community
Development Authority M/F Housing
RB (Kimberly Woods Project)
Series 1995
3.35%, 07/01/99 11,400 11,400
California Statewide Community
Development Authority M/F Housing
RB (Park David Senior Apartments
Project) Series 1999D
3.75%, 07/01/99 8,220 8,220
California Statewide Community
Development Authority M/F Housing
RB (Plaza Club Apartments)
Series 1997A
3.70%, 07/07/99 9,000 9,000
California Statewide Community
Development Authority Revenue
Refunding COP (St. Joseph Health
System)
3.10%, 07/01/99 8,950 8,950
California Statewide Community
Development Corp. IDRB (13th I
Associates Project)
4.35%, 07/07/99 5,040 5,040
Par Value
------ -------
California Statewide Community
Development Corp. IDRB (Aerostar
Properties Project)
3.30%, 07/07/99 $4,095 $4,095
California Statewide Community
Development Corp. IDRB (Agricultural
Products, Inc. Project)
4.40%, 07/07/99 1,380 1,380
California Statewide Community
Development Corp. IDRB (Cowden
Metal Stamping Project)
4.40%, 07/07/99 1,940 1,940
California Statewide Community
Development Corp. IDRB (Drip In
Irrigation Co. Project)
3.35%, 07/07/99 3,600 3,600
California Statewide Community
Development Corp. IDRB (Flambeau
Airmold Project)
3.35%, 07/07/99 2,550 2,550
California Statewide Community
Development Corp. IDRB (Industrial
Dynamics Co. Project)
4.40%, 07/07/99 4,110 4,110
California Statewide Community
Development Corp. IDRB (Pacific
Handy Cutter Products Project)
4.45%, 07/07/99 745 745
California Statewide Community
Development Corp. IDRB (The
Diamond Foods Project) Series 1991
4.40%, 07/07/99 1,290 1,290
California Statewide Community
Development Corp. IDRB Series 1998C
3.35%, 07/07/99 2,175 2,175
California Statewide Community
Development M/F Housing RB (Rio
Vista Apartment Project) Series F
3.75%, 07/07/99 4,000 4,000
California Statewide Community
Industrial Development Revenue
Refunding Bonds (Golden Valley
Project) Series A
3.35%, 07/07/99 1,890 1,890
California Statewide M/F Housing
Authority (Sunrise of Moraga)
Series 1997G
3.50%, 07/07/99 3,600 3,600
65
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
California Statewide M/F Housing
Authority RB (Woodsong Apartments)
Series 1997B
3.40%, 07/07/99 $ 3,427 $ 3,427
Carlsbad, California M/F Housing
Revenue Refunding Bonds COP (La
Costa Apartment Project) Series 1993A
3.05%, 07/07/99 11,720 11,720
Chula Vista, California IDRB (San
Diego Gas & Electric Co. Project)
Series 1993A
3.20%, 07/07/99 11,800 11,800
Concord, California M/F Housing
Authority RB (California Hill
Apartments) Series 1989A
3.75%, 07/07/99 6,750 6,750
Concord, California M/F Housing
Mortgage RB (Bel Air Apartments
Project) Series 1986A
3.65%, 07/07/99 3,000 3,000
Contra Costa County, California M/F
Housing Mortgage RB (El Cerrito
Project) Series A
3.65%, 07/07/99 980 980
Duarte, California Redevelopment
Agency COP (Johnson Duarte
Partners Project) Series 1984B
3.65%, 07/07/99 1,600 1,600
Duarte, California Redevelopment
Agency COP (Piken Duarte Partners
Project) Series 1984A
3.65%, 07/07/99 4,250 4,250
Dublin, California Housing Authority
M/F Housing RB (Park Siera Project)
Series A
3.40%, 07/07/99 12,700 12,700
El Cajon, California M/F Housing RB
(Pinewood Apartments Project)
3.52%, 07/07/99 1,450 1,450
El Cajon, California Redevelopment
Bonds M/F Housing RB (Mollison &
Madison Project)
3.52%, 07/01/99 5,400 5,400
Encinitas, California M/F Housing
Revenue Refunding Bonds (Torrey
Pines Project) Series A
3.70%, 07/07/99 8,100 8,100
Par Value
------- -------
Foothill, California Eastern
Transportation Corridor Agency Toll
Road RB Series 1995B
3.35%, 07/07/99 $16,700 $16,700
Foothill, California Eastern
Transportation Corridor Agency Toll
Road RB Series 1995C
3.30%, 07/07/99 1,500 1,500
Foothill, California Eastern
Transportation Corridor Agency Toll
Road RB Series B
3.40%, 07/07/99 17,700 17,700
Fremont, California M/F Housing
Revenue Refunding COP (Amber Court
Apartments Project) Series 1990A
3.20%, 07/07/99 10,000 10,000
Fresno, California IDA (Keiser Corp.)
3.45%, 07/07/99 2,295 2,295
Fresno, California M/F Housing
Revenue Refunding Bonds (Heron
Pointe Apartments) Series 1996A
3.10%, 07/07/99 10,225 10,225
Hayward, California Housing Authority
M/F RB (Huntwood Terrace
Apartments)
3.10%, 07/07/99 5,565 5,565
Hayward, California M/F Housing RB
(Timbers Apartments Project) Series A
3.10%, 07/07/99 3,700 3,700
Hillsborough, California COP (Water &
Sewer System Project) Series 1995A
3.45%, 07/30/99 955 955
Indio, California M/F Redevelopment
Bonds Refunding Housing Mortgages
(Carreon Apartments Project)
Series 1996A
3.45%, 07/07/99 3,950 3,950
Irvine Ranch, California Improvement
Bond Act 1915 RB (Assessment
District No. 87-8)
2.90%, 07/01/99 22,800 22,800
Irvine Ranch, California Improvement
Bond Act 1915 RB (Assessment
District No. 89-10)
2.90%, 07/01/99 3,900 3,900
Irvine Ranch, California Improvement
Board Act 1915 RB (Assessment
District No. 94-15)
2.90%, 07/01/99 500 500
66
<PAGE>
Par Value
------ ------
Irvine Ranch, California Improvement
Bond Act 1915 RB (Assessment
District 85-7-I)
2.90%, 07/01/99 $1,188 $1,188
3.10%, 07/07/99 1,900 1,900
Irvine Ranch, California Water District
Consolidated GO Revenue Refunding
Bonds Series 1985B
3.15%, 07/01/99 6,100 6,100
Irvine Ranch, California Water District
Consolidated Refunding Bonds
Series 1993A
3.15%, 07/01/99 8,000 8,000
Irvine Ranch, California Water District
Consolidated RB (Districts 140, 240,
105, 250)
2.90%, 07/01/99 6,600 6,600
Irvine Ranch, California Water District
Consolidated RB Series 1985
2.90%, 07/01/99 1,100 1,100
Irvine Ranch, California Water District
GO (Construction Improvement
Districts)
3.15%, 07/01/99 8,675 8,675
Irvine Ranch, California Water District
GO (Districts 105, 140, 240 & 250)
Series 1995
2.90%, 07/01/99 8,000 8,000
Irvine Ranch, California Water District
GO (Improvement District Number 182)
Series 1988A
3.15%, 07/01/99 3,100 3,100
Irvine Ranch, California Water District
Improvement Bond GO (District 284)
Series 1988A
3.15%, 07/01/99 4,500 4,500
Irvine Ranch, California Water District
Improvement Bond Limited
Obligation No. 97-17
2.90%, 07/01/99 2,600 2,600
Kern County, California COP (Kern
Public Facilities Project) Series A
3.00%, 07/07/99 4,800 4,800
Livermore, California M/F Housing
Revenue Refunding Bonds (Arbors
Apartment Project) Series 1991A
3.20%, 07/07/99 9,005 9,005
Par Value
------- -------
Long Beach, California Housing
Authority M/F Housing RB (Channel
Point Apartments Project)
3.60%, 07/07/99 $ 6,250 $ 6,250
Los Angeles County, California
COP ACES (Los Angeles
County Museum of Art Project)
Series 1985A
3.35%, 07/07/99 3,000 3,000
Los Angeles County, California
COP ACES (Los Angeles
County Museum of Art Project)
Series 1985B
3.35%, 07/07/99 3,300 3,300
Los Angeles County, California Housing
Authority M/F RB (Malibu Canyon
Apartments Project) Series B
3.35%, 07/07/99 43,400 43,400
Los Angeles County, California Housing
Authority M/F RB (Park Sierra Project)
4.30%, 07/07/99 30,500 30,500
Los Angeles County, California
Metropolitan Transportation
Authority Revenue Refunding Bonds
Series 1993A
3.35%, 07/07/99 58,170 58,170
Los Angeles County, California Pension
Revenue Refunding Bond Series 1996A
3.25%, 07/07/99 17,300 17,300
Los Angeles County, California
Transportation Commission
Sales Tax RB Series 1992A
3.25%, 07/07/99 2,600 2,600
Los Angeles, California Community
Redevelopment Agency (Grand
Promenade Project)
3.55%, 07/07/99 100 100
Los Angeles, California Community
Redevelopment Agency COP
(Broadway Springs Center Project)
Series 1987
3.35%, 07/07/99 21,700 21,700
Los Angeles, California M/F
Housing RB (Beverly Park
Apartments)
3.75%, 07/07/99 24,400 24,400
67
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
Los Angeles, California M/F
Housing RB (Lucas Studios Project)
Series 1991D
3.80%, 07/07/99 $ 3,000 $ 3,000
Los Angeles, California M/F
Housing RB (Studio Colony)
Series 1985C
3.50%, 07/01/99 15,960 15,960
Los Angeles, California M/F
Housing RB Series 1985K
3.30%, 07/06/99 31,990 31,990
Madera, California Public Financing
Municipal Golf Course Revenue
Refinancing Authority
3.55%, 07/07/99 1,950 1,950
Metropolitan Water District of
Southern California Revenue
Refunding Bonds Series 1996A
3.35%, 07/07/99 31,665 31,665
Moorpark, California M/F Housing
Revenue Refunding Bonds (Le Club
Apartments Project) Series A
3.40%, 07/07/99 6,000 6,000
Mount San Jacinto, California Winter
Park Authority (Palm Springs Aerial
Project)
3.40%, 07/01/99 8,700 8,700
Oakland, California Financing
Authority Lease RB (JT Powers Project)
Series A2
3.50%, 07/07/99 28,800 28,800
Orange County, California Apartment
Development RB (Villas Aliento)
Series 1998E
3.60%, 07/07/99 6,500 6,500
Orange County, California Apartment
Development RB Series 1985U
3.35%, 07/07/99 9,000 9,000
Orange County, California Apartment
Development RB Series 1985V
3.80%, 07/07/99 18,000 18,000
Orange County, California Apartment
Development RB Series 1998G
3.60%, 07/07/99 5,000 5,000
Orange County, California Apartment
Development RB Series F
3.60%, 07/01/99 11,000 11,000
Par Value
------- -------
Orange County, California Apartment
Development RB Series G3
3.60%, 07/01/99 $28,000 $28,000
Orange County, California Apartment
Development Revenue Refunding
Bonds (Jess L. Frost Project)
Series 1985B
3.35%, 07/07/99 10,000 10,000
Orange County, California Apartment
Development Revenue Refunding
Bonds (The Lakes Project #185)
Series 1991A
3.60%, 07/07/99 41,300 41,300
Orange County, California COP
(Florence Crittenton Services Project)
Series 1990
3.00%, 07/07/99 6,100 6,100
Orange County, California
Housing M/F RB (Lantern Pines
Project)
3.15%, 07/07/99 2,200 2,200
Orange County, California Sanitation
District Authority
2.90%, 07/01/99 4,100 4,100
Orange County, California Sanitation
District COP (Sanitation Districts
1, 2, 3, 6, 7 & 11) Series 1992C
3.05%, 07/01/99 11,900 11,900
Orange County, California Sanitation
District COP (Sanitation Districts
1, 2, 3, 5, 6, 7 & 11) Series 1992C
3.35%, 07/07/99 22,270 22,270
Orange County, California Special
Assessment Improvement Bonds
(District 88-1)
3.10%, 07/01/99 8,745 8,745
Panama Buena Vista, California Unified
School District COP (1994 Capital
Improvement Financing Project)
4.00%, 07/07/99 4,000 4,000
Petaluma, California Community M/F
Housing Authority (Oakmont At
Petaluma Project)
3.50%, 07/07/99 3,550 3,550
Pinole, California Redevelopment
Agency M/F Housing RB (East Bluff
Apartments Project)
3.75%, 07/07/99 2,559 2,559
68
<PAGE>
Par Value
------- -------
Pleasant Hill, California M/F
Housing RB (Brookside Apartments
Project)
3.00%, 07/07/99 $ 5,200 $ 5,200
Pleasant Hill, California Redevelopment
Agency M/F Housing (Chateau III
Project) Series A
3.50%, 07/07/99 2,360 2,360
Redwood City, California COP (City
Hall Project)
3.45%, 07/07/99 2,400 2,400
Riverside County, California
Community Facilities District #88-4
(Winchester Ranch)
3.05%, 07/07/99 18,100 18,100
Riverside County, California COP ACES
Public Facilities Series 1985B
3.00%, 07/07/99 13,800 13,800
Riverside County, California Housing
Authority M/F Housing RB
(Briarwood Apartment Project)
Series 1985C
3.40%, 07/07/99 4,500 4,500
Riverside County, California Housing
Authority M/F Housing RB (Victoria
Springs Apartments Project)
3.50%, 07/07/99 9,600 9,600
Riverside County, California IDA RB
(Calmold Inc. Project)
3.40%, 07/07/99 3,650 3,650
Riverside County, California IDA RB
(Cryogenic Project) Series B
3.70%, 07/07/99 4,100 4,100
Riverside County, California M/F
Housing RB (Ambergate Apartments)
Series 1992A
3.55%, 07/07/99 3,000 3,000
Riverside County, California M/F
Housing RB (Tyler Village Project)
3.50%, 07/07/99 7,860 7,860
Sacramento County, California COP
(Administration Center & Court House
Project)
3.35%, 07/07/99 8,500 8,500
Sacramento County, California Housing
Authority (Oakland Valley Apartments
Project) Series E
3.52%, 07/07/99 4,000 4,000
Par Value
------- -------
Sacramento County, California Housing
Authority (Sun Valley Apartments
Project) Series F
3.52%, 07/07/99 $ 3,750 $ 3,750
Sacramento County, California Housing
Authority M/F Housing RB
(Chesapeake Commons Project)
Series 1997A
3.52%, 07/07/99 28,000 28,000
Sacramento County, California Housing
Authority M/F Housing RB (Hidden
Oaks Apartments) Series 1999C
3.75%, 07/07/99 6,300 6,300
Sacramento County, California Special
Facilities RB (Cessna Aircraft Corp.
Project)
3.55%, 07/07/99 3,700 3,700
Salinas, California Apartment
Development M/F Housing RB
(Mariner Villa Project) Series 1985B
3.55%, 07/07/99 2,825 2,825
San Bernardino County, California COP
(Glen Helen Blockbuster Pavilion
Project) Series 1994C
3.45%, 07/07/99 6,695 6,695
San Bernardino County, California COP
(Medical Center Financing Project)
3.00%, 07/07/99 15,910 15,910
San Bernardino County, California M/F
Housing (Nova Park Project) Series A
3.75%, 07/07/99 5,520 5,520
San Diego, California Housing
Authority M/F Mortgage RB
(Creekside Villa) Series 1999B
3.55%, 07/07/99 6,000 6,000
San Francisco, California City & County
Redevelopment Agency M/F
Housing RB (Fillmore Center Project)
Series A1
3.00%, 07/07/99 29,000 29,000
San Francisco, California City & County
Redevelopment Agency M/F
Housing RB (Fillmore Center Project)
Series A2
3.05%, 07/07/99 3,750 3,750
69
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
San Francisco, California City & County
Redevelopment Agency M/F
Housing RB (Rincon Center
Apartments) Series 1985B
3.35%, 07/07/99 $ 8,555 $ 8,555
San Francisco, California Housing
Authority M/F Housing RB
(Magnolia Plaza Project) Series A
3.45%, 07/07/99 5,500 5,500
San Jose, California M/F Housing RB
(Almeden Lake Apartments Project)
Series 1997A
3.35%, 07/07/99 6,500 6,500
San Jose, California M/F Housing RB
(Carlton Plaza Project) Series A
3.67%, 07/07/99 5,000 5,000
San Jose, California M/F Housing RB
(Seinna at Renaissance Project)
Series 1996A
3.35%, 07/07/99 12,500 12,500
San Jose, California Redevelopment
Agency RB (Merged Area
Redevelopment Project)
3.10%, 07/07/99 5,000 5,000
San Jose, California Redevelopment M/F
Housing (101 San Fernando
Apartments Project) Series A
3.35%, 07/07/99 28,000 28,000
San Leandro, California M/F
Housing RB (Carlton Plaza Project)
Series A
3.50%, 07/07/99 1,900 1,900
San Lorenzo, California Unified School
District COP (Capital Improvement
Financing Project)
3.65%, 07/07/99 17,000 17,000
Santa Ana, California Unified School
District COP (Land Acquisition Project)
3.10%, 07/07/99 5,100 5,100
Santa Clara County, California Electric
Authority RB, Series C
3.10%, 07/07/99 1,190 1,190
Santa Clara County, California M/F
Housing Revenue Refunding Bonds
(Brairwood Apartments Project)
Series 1996B
3.60%, 07/07/99 9,400 9,400
Par Value
------- -------
Santa Clara County, California M/F
Housing Revenue Refunding Bonds
(Grove Garden Apartments)
Series 1997A
3.60%, 07/07/99 $14,000 $14,000
Santa Fe Springs, California IDA RB
3.30%, 07/07/99 4,000 4,000
Santa Paula, California Public Financing
Authority Lease Water System
(Aquis Project)
3.25%, 07/07/99 4,900 4,900
Santa Rosa, California M/F Housing RB
(Quail Run Apartments) Series 1997A
3.50%, 07/07/99 5,150 5,150
Southern California Public Power
Authority RB (Southern Transmission
Project) Series 1991
3.25%, 07/07/99 10,300 10,300
Southern California Public Power
Authority Revenue Refunding Bonds
(Palos Verdes Project) Series 1996B
3.25%, 07/07/99 19,100 19,100
Tulare Porterville, California School
Financing Authority
4.00%, 07/07/99 7,025 7,025
Union City, California M/F Housing
RB (Greenhaven Apartments Project)
Series1997A
3.60%, 07/07/99 10,975 10,975
Vallecitos, California Water District
(Twin Oaks Reservoir Project)
3.00%, 07/07/99 11,265 11,265
Victor Valley, California Community
College District COP
3.40%, 07/07/99 53,450 53,450
Vista, California IDA IDRB
(Desalination System Inc. Project)
3.40%, 07/07/99 5,770 5,770
West Basin, California Municipal Water
District RB COP (Phase III Recycled
Water) Series 1999A
3.20%, 07/07/99 5,000 5,000
West Sacramento, California Special
Tax RB (Community Facilities
District #6)
3.75%, 07/07/99 4,250 4,250
70
<PAGE>
Par Value
-------- ----------
Westminster, California Agency Tax
Allocation (Community Redevelopment
Project)
3.45%, 07/07/99 $ 7,950 $ 7,950
Westminster, California COP (Civic
Center Project) Series A
3.45%, 07/07/99 4,380 4,380
Windsor, California M/F (Oakmont At
Windsor Project)
3.90%, 07/07/99 700 700
----------
2,205,559
----------
PUERTO RICO -- 0.4%
Puerto Rico Commonwealth Highway &
Transportation Authority RB
Series 1998A
3.10%, 07/07/99 16,000 16,000
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $2,221,559) 2,221,559
----------
TAX AND REVENUE ANTICIPATION NOTES -- 21.0% (c)
CALIFORNIA -- 18.4%
Alameda County, California Board of
Education TRAN (d)
3.12%, 06/30/00 23,500 23,586
Alameda County, California
COP TRAN (d)
3.32%, 07/07/00 28,000 28,184
Alameda County, California
Transportation Authority TRAN
3.41%, 07/07/99 3,000 3,001
3.60%, 07/07/99 15,000 15,002
Berkeley, California Transportation
Authority TRAN (f)
3.03%, 10/01/99 12,750 12,765
Berkeley, California Unified School
District TRAN (d)
3.13%, 06/30/00 8,250 8,269
California School Cash Reserve Program
Authority Pooled TRAN (f)
2.80%, 07/02/99 1,500 1,500
2.97%, 07/02/99 9,000 9,000
3.30%, 07/02/99 10,000 10,000
3.35%, 07/02/99 54,000 54,001
3.40%, 07/02/99 25,000 25,001
3.60%, 07/02/99 20,000 20,000
3.74%, 07/02/99 75,000 75,002
Par Value
-------- --------
California School Cash Reserve
Program Authority Pooled TRAN
Series 1999A (d) (f)
3.11%, 07/03/00 $200,000 $201,750
Contra Costa County, California Board of
Education GO TRAN (d)
3.18%, 06/30/00 20,450 20,562
Los Angeles County, California Schools
Pooled Financing Program COP TRAN
Series 1999 A (d) (f)
3.13%, 06/30/00 18,245 18,398
Los Angeles County, California
TRAN (d)
3.32%, 06/30/00 77,000 77,505
Los Angeles, California City TRAN (d)
3.32%, 06/30/00 25,000 25,224
3.35%, 06/30/00 40,000 40,251
Los Angeles, California Community
College District TRAN
3.62%, 07/29/99 5,500 5,503
Orange County, California Fire
Authority Transportation TRAN
3.65%, 07/13/99 7,215 7,216
Riverside County, California TRAN
2.83%, 09/30/99 4,500 4,518
2.90%, 09/30/99 22,500 22,585
3.15%, 09/30/99 2,000 2,006
San Bernardino County,
California TRAN Series 1998
3.10%, 09/30/99 44,300 44,460
San Francisco, California City &
County School District TRAN
3.40%, 09/22/99 11,000 11,027
San Mateo, California Un High School
District TRAN (d)
3.13%, 06/30/00 10,000 10,024
Yolo County, California Transportation
TRAN
2.88%, 10/01/99 2,000 2,006
3.07%, 10/01/99 1,835 1,839
--------
780,185
--------
71
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- --------
PUERTO RICO -- 2.6%
Commonwealth of Puerto Rico TRAN
Series 1998A
2.74%, 07/30/99 $37,300 $ 37,318
2.82%, 07/30/99 10,000 10,005
2.85%, 07/30/99 60,500 60,531
--------
107,854
--------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $888,039) 888,039
--------
TAX-EXEMPT COMMERCIAL PAPER -- 18.6% (c)
CALIFORNIA -- 16.8%
California Pollution Control Financing
Authority RB TECP (Southern
California Edison) Series 1985A
3.05%, 08/17/99 2,100 2,100
3.10%, 08/17/99 400 400
California Pollution Control Financing
Authority Solid Waste Disposal RB
TECP (Thermal Energy Development)
Series 1988A (f)
3.05%, 08/16/99 17,600 17,600
California State GO TECP (f)
2.95%, 07/01/99 39,000 39,000
3.05%, 07/28/99 4,000 4,000
3.05%, 08/06/99 33,000 33,000
3.10%, 08/09/99 10,000 10,000
3.05%, 08/10/99 2,900 2,900
3.15%, 09/09/99 41,000 41,000
East Bay, California Municipal Utilities
District TECP (f)
3.00%, 07/27/99 2,900 2,900
3.05%, 08/11/99 16,700 16,700
3.10%, 08/12/99 16,900 16,900
Long Beach, California Harbor TECP
Series 1994A (f)
3.00%, 09/02/99 44,850 44,850
Los Angeles County, California Capital
Asset Leasing Corp. Lease Revenue
TECP (f)
3.10%, 07/30/99 4,000 4,000
3.10%, 08/04/99 43,700 43,700
Los Angeles, California Wastewater
System TECP (f)
3.05%, 07/28/99 11,900 11,900
3.20%, 10/06/99 34,500 34,500
Par Value
------- -------
Metro Water District of Southern
California TECP
2.90%, 09/03/99 $19,100 $19,100
2.90%, 09/07/99 10,000 10,000
Orange County, California Local
Transportation Authority TECP (f)
3.35%, 07/08/99 30,000 30,000
Orange County, California Local
Transportation Authority Sales
TECP (f)
2.90%, 07/09/99 6,600 6,600
Sacramento, California Municipal
Utilities District TECP (f)
3.00%, 07/09/99 25,000 25,000
3.10%, 07/09/99 35,237 35,237
3.05%, 08/16/99 16,300 16,300
San Diego County, California Teeter
TECP (f)
3.30%, 07/09/99 4,000 4,000
3.10%, 03/01/00 12,400 12,400
San Diego County, California Teeter
TECP Series B (f)
3.05%, 08/16/99 8,000 8,000
San Francisco City & County, California
TECP (f)
3.10%, 07/15/99 43,720 43,720
3.25%, 10/06/99 6,565 6,565
San Francisco, California International
Airport TECP Series A
3.20%, 09/16/99 10,050 10,050
State of California GO TECP (f)
2.95%, 09/09/99 27,250 27,250
University of California Board of
Regents TECP
2.95%, 07/01/99 22,000 22,000
3.15%, 07/09/99 25,000 25,000
University of California Board of
Regents TECP (f)
3.10%, 08/12/99 25,000 25,000
University of California Board of
Regents TECP Series 1996A (f)
2.90%, 07/22/99 15,421 15,421
3.10%, 08/11/99 4,000 4,000
3.05%, 08/17/99 3,000 3,000
3.10%, 08/19/99 10,555 10,555
2.95%, 09/01/99 10,000 10,000
72
<PAGE>
Par Value
-------- --------
Ventura County, California Public
Financing TRAN TECP
Series 1997A (f)
2.85%, 07/01/99 $ 12,000 $ 12,000
--------
706,648
--------
PUERTO RICO -- 1.8%
Puerto Rico Government
Development Bank TECP
3.00%, 07/01/99 25,789 25,789
3.05%, 07/20/99 13,000 13,000
3.15%, 07/28/99 3,404 3,404
3.00%, 09/01/99 25,100 25,100
3.00%, 09/08/99 10,839 10,839
--------
78,132
--------
TOTAL TAX-EXEMPT
COMMERCIAL PAPER
(Cost $784,780) 784,780
--------
VARIABLE RATE TENDER OPTION BONDS -- 5.3% (a)(b)(f)
CALIFORNIA -- 3.4%
California HFA Home Mortgage RB TOB
3.57%, 07/01/99 6,815 6,815
California Housing Financing Agency
Home Mortgage TOPB (BTP-249)
3.85%, 07/01/99 4,580 4,580
California State GO TOBP (PT-1148)
3.62%, 07/07/99 13,140 13,140
California State GO TOPB (PT-1072)
3.62%, 07/01/99 8,965 8,965
California State GO TOPB (PT-153)
3.64%, 07/07/99 4,995 4,995
Los Angeles County, California
Metropolitan Transit Authority TOB
3.50%, 07/07/99 23,830 23,830
Los Angeles, California Unified School
District TOB (PA 514) Series 1999
3.57%, 07/07/99 4,720 4,720
Los Angeles, California TOB (Dwap
Electric Power Plant) Series 1
3.50%, 07/07/99 19,995 19,995
Palo Alto, California Unified School
District (Merlot Project) TOB Series R
3.50%, 07/07/99 6,000 6,000
Par Value
-------- --------
San Diego County, California
Transportation TOB
3.85%, 07/07/99 $ 7,920 $ 7,920
Southern California Public Power
Authority TOPB (BTP-90) (San Juan
Power Project) Series A
3.85%, 07/07/99 8,290 8,290
University of California Board of
Regents TOBP (PT-1057)
3.57%, 07/01/99 34,505 34,505
--------
143,755
--------
PUERTO RICO -- 1.9%
Puerto Rico Commonwealth Highway &
Transportation Authority RB TOB
(PA-494) Series A
3.54%, 07/07/99 1,875 1,875
Puerto Rico Commonwealth Highway &
Transportation Authority TOB
3.54%, 07/01/99 15,840 15,840
Puerto Rico Commonwealth
Infrastructure Financing Authority TOB
(PA-498)
3.54%, 07/07/99 3,930 3,930
Puerto Rico Commonwealth
Infrastructure Financing Authority TOB
(PT-1086)
3.54%, 07/01/99 25,650 25,650
Puerto Rico Commonwealth
Infrastructure Financing Authority TOB
3.54%, 07/01/99 24,000 24,000
Puerto Rico Commonwealth TOB
3.54%, 07/07/99 4,645 4,645
Puerto Rico Commonwealth TOBP
(PT 181)
3.54%, 07/07/99 5,625 5,625
-------
81,565
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $225,320) 225,320
-------
73
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- --------
FIXED RATE TENDER OPTION BONDS -- 4.1% (c)(e)(f)
CALIFORNIA -- 3.9%
California State Department Water
Resources RB TOBP (BTP-141)
(Central Valley Project) Series J3
3.10%, 08/25/99 $ 5,155 $ 5,155
Los Angeles County, California
Transportation Commission Sales
Tax RB TOBP (BTP-146)
3.10%, 08/25/99 23,078 23,077
Metropolitan Water District Southern
California GO Revenue Refunding
Bonds TOBP (BTP-115)
Series 1993A1 & 1993A2
3.10%, 08/25/99 10,145 10,145
San Bernardino County, California
TRAN Roc TOB Series 1999-1 (d)
3.38%, 07/03/00 50,000 50,000
San Diego County, California
TOB (PT-273) (d)
3.20%, 06/30/00 20,000 20,000
San Diego County, California
TRAN TOB (PT-274) (d)
3.20%, 06/30/00 25,000 25,000
San Diego County, California
TRAN TOB (PT-276) (d)
3.30%, 06/30/00 28,840 28,840
--------
162,217
--------
PUERTO RICO -- 0.2%
Puerto Rico Housing Finance
Corporation RB TOB Series J
3.15%, 04/13/00 9,900 9,900
--------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $172,117) 172,117
--------
REVENUE BONDS -- 1.9% (c)
California State Department of Water
Resource RB (Central Valley Project)
Series T
2.88%, 12/01/99 8,000 8,069
Central Valley, California Financing
Authoriy RB (Carson Ice Cogeneration
Project) (f)
3.33%, 07/01/00 19,425 19,646
Par Value
------- -------
Eden Township, California Hospital
District Pre-Refunded RB (f)
3.00%, 11/01/99 $ 5,000 $ 5,172
Long Beach Harbor, California RB
Series 1998A
3.07%, 05/15/00 4,835 4,914
Los Angeles, California Wastewater
System RB Series A (f)
4.10%, 02/01/00 2,045 2,074
Modesto, Sacramento & Reading,
California Public Power Agency RB
(San Juan Project) Series G (f)
2.78%, 07/01/99 2,950 2,950
Northern California Power Agency
Refunding RB (Hydroelectric
Project #1)
3.64%, 07/01/99 4,690 4,690
Oakland, California Local
Government RB (f)
2.77%, 09/01/99 2,500 2,516
Orange County, California
Airport RB (f)
3.43%, 07/01/99 3,165 3,165
Orange County, California Local
Transportation Authority Sales
Tax RB (f)
2.82%, 02/15/00 2,780 2,824
Sacramento, California Municipal
Utility District Electrical RB
Series 1990X (f)
3.13%, 07/01/00 10,000 10,571
San Diego California Regional
Transportation Common Sales
Tax RB (f)
2.85%, 04/01/00 1,850 1,870
San Francisco, California City &
County Sewer RB (f)
2.90%, 10/01/99 2,000 2,057
Southern California Public Power
Authority RB (Southern Transmission
Project) Series 1998A (f)
3.13%, 07/01/00 10,095 10,230
-------
TOTAL REVENUE BONDS
(Cost $80,748) 80,748
-------
74
<PAGE>
Par Value
------- -------
GENERAL OBLIGATIONS -- 1.2% (c)
California State GO
2.90%, 10/01/99 $ 2,000 $ 2,018
3.10%, 10/01/99 7,295 7,320
2.88%, 12/01/99 22,230 22,332
2.71%, 02/01/00 15,235 15,281
2.72%, 02/01/00 4,100 4,175
-------
TOTAL GENERAL OBLIGATIONS
(Cost $51,126) 51,126
-------
MANDATORY PUT BONDS -- 1.1% (c)
California HFA Home Mortgage RB
Series 1999D (f)
3.02%, 04/30/00 5,000 5,000
California Pollution Control
Financing Authority RB
3.00%, 05/15/00 3,795 3,798
California State GO Series 1997BJ
3.20%, 06/01/00 34,200 34,200
San Bernardino County,
California S/F Mortgage RB
Series 1999A2 (f)
3.20%, 06/01/00 1,850 1,883
-------
TOTAL MANDATORY PUT BONDS
(Cost $44,881) 44,881
-------
CERTIFICATES OF PARTICIPATION -- 0.6% (c)
Alameda County, California COP
(Capital Project) (f)
2.90%, 12/01/99 2,155 2,165
Fresno, California COP (City Hall
Refinancing Project) (f)
2.92%, 08/01/99 1,000 1,003
Los Angeles County, California COP
(Correctional Facilities Project) (f)
3.03%, 09/01/99 4,000 4,020
Los Angeles, California Convention &
Exhibition Center Authority COP
Series A
3.00%, 08/15/99 13,650 13,929
Los Angeles, California COP Series A (f)
2.96%, 11/01/99 2,285 2,293
Santa Clara County, California COP
(Capital Project 1) (f)
2.73%, 10/01/99 1,230 1,240
-------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $24,650) 24,650
-------
Par Value
------ ----------
TAX ALLOCATION BONDS -- 0.2% (c)
Poway, California Redevelopment Agency
Tax Allocation Bond (Paguay
Revelopment Project) Series A
2.85%, 12/15/99 $ 1,000 $ 1,041
Santa Cruz County, California Public
Financing Authority RB
Series 1990B (f)
2.98%, 09/01/99 2,135 2,205
South Gate, California Public Financing
Authority Tax Allocation RB
(Redevelopment Project)
Series 1989A2 (f)
2.90%, 09/01/99 4,750 4,880
----------
TOTAL TAX ALLOCATION BONDS
(Cost $8,126) 8,126
----------
SPECIAL TAX BONDS -- 0.2% (c)
South Orange County, California
Public Financing Authority Special
Tax RB Jr Lien Series 1998B (f)
2.91%, 09/01/99 4,020 4,029
Tehachapi, California Community
Facilities District Special Tax No. 89-1
1.25%, 10/01/99 2,000 2,071
----------
TOTAL SPECIAL TAX BONDS
(Cost $6,100) 6,100
----------
Shares
-------
OTHER INVESTMENT COMPANIES -- 0.4% (g)
Provident Institutional Funds -
California Money Fund Portfolio
18,409 18,409
----------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $18,409) 18,409
----------
TOTAL INVESTMENTS -- 107.3%
(Cost $4,525,855) 4,525,855
----------
OTHER ASSETS AND LIABILITIES-- (7.3%)
Other assets 292,762
Liabilities (599,510)
----------
(306,748)
----------
TOTAL NET ASSETS-- 100.0% $4,219,107
==========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
75
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------ ------
VARIABLE RATE OBLIGATIONS -- 42.4% (b)(f)
Albany, New York IDRB (Newkirk
Products Project) Series 1995A
3.55%, 07/07/99 $1,000 $1,000
Babylon, New York IDA Resource
Recovery (Ogden Martin Project)
Series 1998
3.10%, 07/07/99 4,400 4,400
Duchess County, New York IDA IDRB
(Mechtroncis Corp. Project) Series 1998
3.50%, 07/07/99 3,825 3,825
Dutchess County, New York IDA (Trinity
Pawling School Corp. Project)
3.45%, 07/07/99 5,600 5,600
Erie County, New York IDA (Episcopal
Life Care Facilities Project)
3.25%, 07/07/99 7,500 7,500
Erie County, New York Water Authority
Series 1993B
3.10%, 07/07/99 3,500 3,500
Long Island, New York Power Authority
Electrical System Subordinated RB
3.40%, 07/01/99 1,000 1,000
Monroe County, New York IDRB (ENBI
Corp. Lease Rent Project) Series 1988
3.80%, 07/07/99 2,000 2,000
New York City, New York GO
Series 1993 Subseries A8
3.70%, 07/01/99 15 15
New York City, New York GO
Series 1994B Subseries B2
3.70%, 07/01/99 1,200 1,200
New York City, New York Health &
Hospitals Health System RB Series 1997A
3.30%, 07/07/99 6,400 6,400
New York City, New York Health &
Hospitals Health System RB Series 1997C
3.35%, 07/07/99 7,875 7,875
New York City, New York Housing
Development Corp. M/F Housing RB
(100 Jane Street Development Project)
Series A
3.35%, 07/07/99 6,525 6,525
New York City, New York Housing
Development Corp. M/F Housing RB
(One Columbus Project) Series A
3.35%, 07/07/99 3,000 3,000
Par Value
------- -------
New York City, New York Housing
Development Corp. M/F Housing RB
(Related Broadway Development)
Series A
3.30%, 07/07/99 $19,800 $19,800
New York City, New York IDA IDRB
(Allway Tools Inc. Project)
3.65%, 07/07/99 1,910 1,910
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997A
3.30%, 07/07/99 23,400 23,400
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997C
3.45%, 07/07/99 7,200 7,200
New York City, New York M/F Rental
Housing RB (Tribeca Tower Project)
Series 1997A
3.25%, 07/07/99 25,200 25,200
New York City, New York Transit Cultural
Resource (American Museum of
Natural History) Series 1993A
3.10%, 07/07/99 1,870 1,870
New York City, New York Transitional
Finance Authority RB Series 1998A-1
3.50%, 07/07/99 10,000 10,000
New York State Dormitory Authority RB
(New York Foundling Charitable Project)
3.15%, 07/07/99 900 900
New York State Economic Development
Authority
3.30%, 07/01/99 4,200 4,200
New York State Energy Research &
Development Authority Pollution
Control RB (Central Hudson Gas &
Electric) Series 1985A
3.55%, 07/07/99 10,000 10,000
New York State Energy Research &
Development Authority Pollution Control
Revenue Refunding Bonds (Orange &
Rockland Utilities, Inc. Project)
Series 1994A
3.10%, 07/07/99 3,600 3,600
New York State HFA Housing RB (101 West
End Avenue Project) Series 1999A
3.30%, 07/07/99 7,800 7,800
76
<PAGE>
Par Value
------- -------
New York State HFA Housing RB
(345 East 94th Street Housing Project)
3.30%, 07/07/99 $10,900 $10,900
New York State HFA Housing RB
(70 Battery Place Project) Series 1999A
3.30%, 07/07/99 600 600
New York State HFA Housing RB (Chelsea
Arms Housing Project) Series 1998A
3.50%, 07/07/99 14,000 14,000
New York State HFA Housing RB (East 84th
Street Project) Series 1995A
3.30%, 07/07/99 1,000 1,000
New York State HFA Housing RB
(Mount Sinai School Of Medicine Project)
Series 1984A
3.50%, 07/07/99 4,400 4,400
New York State HFA Housing RB
(Normandie Court II Project)
Series 1987A
3.55%, 07/07/99 14,100 14,100
New York State HFA Housing RB (Tribeca
Landing Project) Series 1997A
3.45%, 07/07/99 14,000 14,000
New York State HFA Housing RB
(Union Square South Housing Project)
3.30%, 07/07/99 14,800 14,800
New York State HFA Housing RB
(West 50th Street Project) Series 1997A
3.35%, 07/07/99 20,300 20,300
New York State HFA M/F Housing RB
(Tribeca Park Housing Project)
Series 1997A
3.30%, 07/07/99 22,000 22,000
New York State Local Government
Assistance Corporation Series 1995G
3.00%, 07/07/99 3,600 3,600
New York State Medical Care Facilities
Financing Agency RB (Pooled Equipment
Loan Program 1)
3.35%, 07/07/99 500 500
Niagara County, New York IDRB (Allegheny
Ludlum Steel Co. Project) Series 1984
3.60%, 07/07/99 10,000 10,000
Niagara Falls, New York Bridge
Commission RB Series 1993A
3.10%, 07/07/99 1,400 1,400
Schenectady, New York IDRB (Fortitech
Holding Corp. Project) Series 1995A
3.55%, 07/07/99 1,200 1,200
Par Value
------ --------
St. Lawrence County, New York IDRB
Environmental Improvement
(Reynolds Metals Project)
3.20%, 07/07/99 $4,000 $ 4,000
Suffolk County, New York IDA
(Episcopal Health Services Project)
Series 1998A
3.75%, 07/07/99 600 600
Town of Islip, New York IDRB
(Magnum Realty Creative Bath
Products Project)
3.20%, 07/07/99 1,980 1,980
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1989
3.40%, 07/07/99 1,500 1,500
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1991
3.40%, 07/07/99 700 700
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1994
3.40%, 07/07/99 1,900 1,900
--------
313,200
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $313,200) 313,200
--------
VARIABLE RATE TENDER OPTION BONDS -- 22.9% (a)(b)(f)
Long Island, New York Power Authority
Electric System RB TOB (PA-522)
3.80%, 07/07/99 21,000 21,000
New York City, New York GO TOBP
(CoreStates Merlot Program Project)
Series 1997C
3.55%, 07/07/99 15,000 15,000
New York City, New York Municipal
Financing Authority Water & Sewer
System RB TOB
3.77%, 07/07/99 4,995 4,995
New York City, New York Municipal
Acceptance Corp. TOB
3.77%, 07/07/99 13,445 13,445
New York City, New York TOBP (BTP-234)
3.85%, 07/07/99 10,090 10,090
New York Local Government Assistance
Corp. TOBP (PT-1055) Series 1997B
3.77%, 07/07/99 8,000 8,000
77
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
-------- -------
New York Metropolitan Transportation
Authority TOBP (PT-177)
3.77%, 07/07/99 $ 9,265 $ 9,265
New York Metropolitan Transportation
Authority TOBP (PA-426)
3.77%, 07/07/99 5,695 5,695
New York State Dormitory Authority TOB
3.77%, 07/07/99 2,820 2,820
New York State Dormitory Authority
TOBP (PA-425)
3.77%, 07/07/99 9,130 9,130
New York State Energy Research &
Development Authority (Eagle Trust)
TOB Series 1994A
3.65%, 07/07/99 14,850 14,850
New York State Environmental Pollution
Control RB TOB (96-C3202) Series 1994D
3.65%, 07/07/99 17,050 17,050
New York State Medical Care Facility
TOB (PT-154)
3.77%, 07/01/99 3,175 3,175
New York State Mortgage Agency TOB
Series 1999F
3.74%, 07/01/99 29,795 29,795
New York Triborough Bridge & Tunnel
Authority TOBP (BTP-162)
3.85%, 07/07/99 5,049 5,049
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $169,359) 169,359
-------
TAX EXEMPT COMMERCIAL PAPER -- 14.1% (c)(f)
Long Island, New York Power Authority
Electrical System TECP Series 1993
3.35%, 07/12/99 12,700 12,700
3.30%, 10/05/99 15,000 15,000
New York City, New York GO TECP
Series 1994H Subseries H2
3.20%, 08/09/99 6,600 6,600
New York City, New York GO TECP
Series 1994H Subseries H3
3.20%, 08/09/99 5,400 5,400
New York State Environmental TECP
3.15%, 08/20/99 7,400 7,400
3.10%, 09/01/99 5,000 5,000
3.10%, 09/02/99 15,600 15,600
New York State Power Authority TECP
3.20%, 08/05/99 20,000 20,000
Par Value
-------- -------
New York State Power Authority TECP
Series 1992
3.13%, 09/13/99 $ 4,000 $ 4,000
New York State Power Authority TECP
Series 1994
3.20%, 07/09/99 12,400 12,400
-------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $104,100) 104,100
-------
BOND ANTICIPATION NOTES -- 7.7% (c)
Broome County, New York BAN
3.08%, 04/05/00 11,900 11,915
Colonie New York BAN Series 1999A
3.05%, 04/15/00 5,770 5,779
Irondequoit, New York BAN
3.30%, 05/26/00 2,015 2,018
Ithaca, New York BAN
3.00%, 01/21/00 12,361 12,395
Levittown, New York United States
Free School District BAN
3.30%, 08/02/99 1,775 1,776
Livingston County, New York BAN
3.60%, 08/26/99 3,670 3,672
Oyster Bay, New York BAN
3.23%, 08/27/99 10,300 10,312
3.25%, 10/01/99 5,640 5,647
Taconic Hills, New York Centennial
School District At Craryville BAN
3.10%, 04/14/00 2,950 2,959
-------
TOTAL BOND ANTICIPATION NOTES
(Cost $56,473) 56,473
-------
TAX ANTICIPATION NOTES -- 7.2% (c)
Brentwood, New York Union Free
School District TAN (d)
3.40%, 06/30/00 15,000 15,085
Chautauqua County, New York TAN
3.02%, 12/23/99 9,770 9,792
Levittown, New York Union Free
School District TAN
3.35%, 06/21/00 400 402
Massapequa, New York Union Free
School District TAN (d)
3.40%, 06/29/00 8,500 8,548
Oceanside, New York Union Free
School District TAN (d)
3.40%, 06/27/00 12,000 12,068
78
<PAGE>
Par Value
------- -------
Port Washington, New York Union Free
School District TAN (d)
3.38%, 06/29/00 $ 7,000 $ 7,041
-------
TOTAL TAX ANTICIPATION NOTES
(Cost $52,936) 52,936
-------
GENERAL OBLIGATIONS -- 5.7% (c)
Albany, New York IDRB GO (Newkirk
Products, Inc.) Series 1995A (f)
1.88%, 10/01/99 1,000 1,010
Nassau County, New York GO (f)
3.10%, 10/01/99 1,000 1,002
Nassau County, New York GO
Series 1998Z (f)
3.65%, 09/01/99 14,562 14,570
New York City, New York GO
Series 1990A (f )
3.07%, 03/15/00 1,200 1,256
New York City, New York GO Series 1999E
3.08%, 08/01/99 3,735 3,738
New York City, New York GO Series 1999F
3.50%, 08/01/99 8,785 8,788
New York City, New York GO Series 1999K
3.43%, 08/01/99 10,095 10,098
Suffolk County, New York GO
Series 1998B (f)
3.60%, 08/15/99 1,595 1,597
-------
TOTAL GENERAL OBLIGATIONS
(Cost $42,059) 42,059
-------
REVENUE BONDS -- 3.4% (c)
Allegany County, New York IDA Civic
Facilities RB (Alfred University Project) (f)
3.65%, 08/01/99 815 815
Nassau County, New York IDA Civic
Facilities RB (Hofstra University
Project) (f)
3.65%, 07/01/99 1,420 1,420
New York City, New York Municipal
Assistance Corp. RB Series 68
3.30%, 07/01/99 1,000 1,000
New York City, New York Municipal
Assistance Corp. RB Series 1997J
3.70%, 07/01/99 7,000 7,000
New York Metropolitan Transportation
Authority Sevice Contract Facilities RB
Series 4 (f)
3.40%, 07/01/00 3,645 3,857
Par Value
------- --------
New York State Dormitory Authority RB
(City University Construction Project)
Series 1995A (f)
3.28%, 07/01/00 $ 1,000 $ 1,022
New York State Dormitory Authority RB
(Mental Health Services Facilities Project)
Series 1997B
3.45%, 02/15/00 1,500 1,514
New York State Dormitory Authority RB
(New York University Project) (f)
3.45%, 07/01/00 1,000 1,026
New York State Dormitory Authority RB
(State University Project) Series 1990C
3.20%, 05/15/00 4,010 4,218
New York State Dormitory Authority RB
(State University Project) Series 1990C (f)
3.40%, 05/15/00 1,805 1,895
New York State Urban Development RB
(Correctional Capital Facilities) Series 1
3.10%, 01/01/00 1,250 1,303
--------
TOTAL REVENUE BONDS
(Cost $25,070) 25,070
--------
FIXED RATE TENDER OPTION BONDS -- 0.9% (c)(e)(f)
New York State Mortgage Agency Revenue
TOBP (PT-260)
3.55%, 06/01/00 6,325 6,325
--------
TOTAL FIXED RATE TENDER OPTION BONDS
(Cost $6,325) 6,325
--------
Shares
-------
OTHER INVESTMENT COMPANIES -- 0.0% (g)
Provident Institutional Funds - Muni Fund
4.61% 157 157
--------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $157) 157
--------
TOTAL INVESTMENTS -- 104.3%
(Cost $769,679) 769,679
--------
OTHER ASSETS AND LIABILITIES-- (4.3%)
Other Assets 16,538
Liabilities (48,134)
--------
(31,596)
--------
TOTAL NET ASSETS-- 100.0% $738,083
=======
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
79
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------ ------
VARIABLE RATE OBLIGATIONS -- 49.2% (b)(f)
Essex County, New Jersey Public
Improvement Authority RB (County
Asset Sale Project) Series 1995
3.40%, 07/07/99 $3,100 $3,100
New Jersey Economic Development
Authority RB (500 International Partners
Project)
3.60%, 07/07/99 2,300 2,300
New Jersey Economic Development
Authority RB (Graphic Management, Inc.
Project)
3.30%, 07/07/99 3,500 3,500
New Jersey Economic Development
Authority RB (Hamilton Industrial
Development Project) Series 1998
3.40%, 07/07/99 5,100 5,100
New Jersey Economic Development
Authority RB (Hoffman Laroche Inc.
Project) Series 1993
3.65%, 07/07/99 300 300
New Jersey Economic Development
Authority RB (Job Haines Home Project)
3.25%, 07/07/99 3,500 3,500
New Jersey Economic Development
Authority RB (Natural Gas Co. Project)
3.30%, 07/07/99 1,600 1,600
New Jersey Economic Development
Authority RB (New Jersey Foreign Trade
Zone Project) Series 1998
3.25%, 07/01/99 1,400 1,400
New Jersey Economic Development
Authority RB (Public Service Electric &
Gas Company Project) Series 1995A
3.05%, 07/07/99 300 300
New Jersey Economic Development
Authority RB (St. James Prep & Social
Service Project) Series 1998
3.50%, 07/07/99 590 590
New Jersey Economic Development
Authority RB (Toys R Us Inc. Project)
Series 1984
3.55%, 07/07/99 3,000 3,000
New Jersey Economic Development
Authority RB (Wechsler Coffee Corp.
Project) Series 1998
3.40%, 07/07/99 1,450 1,450
Par Value
------- ------
New Jersey Economic Development
Authority Revenue Refunding Bonds
(Airis Newark LLC Project)
3.70%, 07/07/99 $ 5,000 $5,000
New Jersey Economic Development
Authority Thermal Energy Facilities RB
(Thermal Energy Ltd. Partnership I
Project) Series 1997
3.30%, 07/07/99 4,750 4,750
New Jersey Health Care Facilities Authority
(Carrier Foundation) Series C
3.30%, 07/07/99 2,790 2,790
New Jersey Health Care Facility Financing
Authority Revenue Refunding Bonds
(Christian Health Project) Series 1998B
3.20%, 07/07/99 6,000 6,000
New Jersey Sports & Exposition
Authority RB Series 1992C
3.65%, 07/07/99 3,700 3,700
New Jersey State Economic Development
Authority Revenue Refunding Bonds
(Stolthaven Project) Series 1998A
3.60%, 07/01/99 100 100
New Jersey State Turnpike Authority RB
Series 1991D
3.10%, 07/07/99 5,700 5,700
Salem County, New Jersey Pollution Control
Financing Authority RB (Public Service
Electric & Gas Project) Series 1997
3.25%, 07/07/99 5,800 5,800
Union City, New Jersey Industrial Pollution
Control Financing Authority RB
3.15%, 07/01/99 2,600 2,600
------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $62,580) 62,580
------
BOND ANTICIPATION NOTES -- 18.0% (c)
Bloomingdale, New Jersey BAN
3.10%, 03/10/00 1,566 1,569
East Hanover Township, New Jersey BAN
3.60%, 08/11/99 1,492 1,492
Highland Park, New Jersey BAN
3.25%, 04/28/00 2,400 2,407
Jersey City, New Jersey School Promissory
BAN
3.23%, 03/03/00 2,000 2,003
80
<PAGE>
Par Value
------- -------
Passaic County, New Jersey BAN
3.24%, 06/15/00 $ 2,000 $ 2,005
Rahway Township, New Jersey BAN
3.13%, 12/23/99 3,000 3,002
3.21%, 12/23/99 3,000 3,000
Raritan Township New Jersey BAN
3.20%, 09/16/99 4,555 4,558
Secaucus, New Jersey BAN
3.05%, 01/20/00 2,830 2,836
-------
TOTAL BOND ANTICIPATION NOTES
(Cost $22,872) 22,872
-------
VARIABLE RATE TENDER OPTION BONDS -- 11.9% (a)(b)(f)
NEW JERSEY -- 11.0%
New Jersey Health Care
Series 1998B TOBP (PA-504)
3.70%, 07/07/99 1,300 1,300
New Jersey State Building Authority
Series 1997 TOB
3.70%, 07/07/99 6,395 6,395
New Jersey State Transportation Authority
TOBP (PT-200)
3.72%, 07/01/99 4,800 4,800
New Jersey Transportation Authority
TOBP (PA-505)
3.72%, 07/07/99 1,500 1,500
-------
13,995
-------
PUERTO RICO -- 0.9%
Puerto Rico Commonwealth TOBP (PT 181)
3.54%, 07/07/99 1,200 1,200
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $15,195) 15,195
-------
REVENUE BONDS -- 7.5% (c)(f)
Essex County, New Jersey Improvement
Lease RB
3.50%, 10/01/99 1,300 1,302
New Jersey Health Care Facilities Financing
Authority RB (Community Medical
Center/Kimball Project)
3.63%, 07/01/99 2,000 2,000
New Jersey Health Care Facilities Financing
Authority RB (Virtual Health Project)
3.52%, 07/01/00 4,865 4,888
Par Value
------ ------
New Jersey State Education Facilities
Authority (Trenton State College Project)
Series C
3.00%, 07/01/99 $1,350 $1,377
------
TOTAL REVENUE BONDS
(Cost $9,567) 9,567
------
GENERAL OBLIGATIONS -- 5.3% (c)
Maple Shade Township, New Jersey GO
Series 1998
3.10%, 12/01/99 200 201
Monmouth County, New Jersey GO
2.79%, 10/01/99 1,000 1,004
Monroe Township & Middlesex County,
New Jersey GO
3.04%, 02/01/00 490 493
New Jersey State GO Series B
3.20%, 01/15/00 1,000 1,016
Ocean County, New Jersey General
Improvement GO
3.20%, 06/01/00 2,000 2,023
Union County, New Jersey GO
2.92%, 12/15/99 1,025 1,032
Union County, New Jersey GO Series 1995
3.40%, 09/01/99 1,000 1,002
------
TOTAL GENERAL OBLIGATIONS
(Cost $6,771) 6,771
------
TAX EXEMPT COMMERCIAL PAPER -- 4.9% (c)
NEW JERSEY -- 3.4% (f)
Port of New York & New Jersey TECP
3.20%, 07/02/99 4,300 4,300
------
PUERTO RICO -- 1.5%
Puerto Rico Government Development
Bank TECP
3.00%, 09/03/99 1,900 1,900
------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $6,200) 6,200
------
81
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- --------
TAX AND REVENUE ANTICIPATION NOTES -- 3.5% (c)
Puerto Rico Commonwealth RB TRAN
Series 1998
3.02%, 07/30/99 $ 4,500 $ 4,502
--------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $4,502) 4,502
--------
TAX ANTICIPATION NOTES -- 2.9% (C)
Morristown, New Jersey TAN
3.25%, 02/11/00 3,700 3,708
--------
TOTAL TAX ANTICIPATION NOTES
(Cost $3,708) 3,708
--------
TOTAL INVESTMENTS -- 103.2%
(Cost $131,395) 131,395
--------
OTHER ASSETS AND LIABILITIES-- (3.2%)
Other assets 937
Liabilities (5,066)
--------
(4,129)
--------
TOTAL NET ASSETS-- 100.0% $127,266
========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
82
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------ -------
VARIABLE RATE OBLIGATIONS -- 61.2% (b)(f)
Allegheny County, Pennsylvania IDA
(USX Corporation Project)
3.40%, 07/07/99 $3,300 $3,300
Allegheny County, Pennsylvania IDA RB
(Saureisen Project)
3.80%, 07/07/99 1,500 1,500
Berks County, Pennsylvania IDA RB
(Beacon Container Project)
3.65%, 07/07/99 1,800 1,800
Bucks County, Pennsylvania IDA RB
(Klearfold Project)
3.80%, 07/07/99 4,000 4,000
Bucks County, Pennsylvania IDA RB
(Schuman & Sons Project)
3.55%, 07/07/99 3,230 3,230
Bucks County, Pennsylvania St. Mary
Hospital Authority RB (Catholic
Healthcare Project) Series 1997B
3.50%, 07/07/99 4,900 4,900
Cambria County, Pennsylvania IDA
Resource Recovery RB (Cambria Cogen
Co. Project)
3.55%, 07/07/99 6,700 6,700
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault Project)
3.65%, 07/07/99 2,220 2,220
Dauphin County, Pennsylvania General
Authority RB (Education & Health Loan
Program Project) Series 1997
3.70%, 07/07/99 2,000 2,000
Dauphin County, Pennsylvania RB
(All Health Pooled Financing Project)
3.50%, 07/07/99 1,230 1,230
Delaware County, Pennsylvania IDA RB
(YMCA of Philadelphia Project) Series 1999
3.50%, 07/07/99 2,100 2,100
Delaware Valley, Pennsylvania Regional
Finance Authority Local Government RB
Series 1986
3.35%, 07/07/99 1,700 1,700
Easton City, Pennsylvania School District GO
3.70%, 07/07/99 1,800 1,800
Emmaus, Pennsylvania General Authority
RB Pooled Loan Series 1996
3.45%, 07/07/99 940 940
Par Value
------ ------
Montgomery County, Pennsylvania IDA RB
(Seton Medical Co.)
3.50%, 07/07/99 $1,600 $1,600
Montgomery County, Pennsylvania M/F
Housing RB (Glenmore Association)
Series A
3.20%, 07/07/99 2,000 2,000
North Hampton County, Pennsylvania
IDA RB (Binney & Smith) Series A
3.60%, 07/07/99 3,250 3,250
Northampton County, Pennsylvania
IDA RB (Binney & Smith) Series B
3.60%, 07/07/99 985 985
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1986
3.40%, 07/07/99 6,800 6,800
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986C
3.40%, 07/07/99 1,155 1,155
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B
3.60%, 07/07/99 5,570 5,570
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988C
3.60%, 07/07/99 4,170 4,170
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1997A
3.85%, 07/07/99 3,275 3,275
Philadelphia, Pennsylvania IDA RB (30th
Street Station Project) Series 1987
3.25%, 07/30/99 3,000 3,000
Philadelphia, Pennsylvania IDA RB
(City Line Holiday Inn Project) Series 1996
3.60%, 07/07/99 2,000 2,000
Quakertown, Pennsylvania General
Authority Pooled Financing Program RB
Series 1996A
3.55%, 07/07/99 45 45
Quakertown, Pennsylvania General
Authority Pooled Financing Program RB
Series 1998A
3.55%, 07/07/99 1,800 1,800
Schuylkill County, Pennsylvania IDA
Resource Recovery RB (Gilberton Power
Project) Series 1985
3.35%, 07/07/99 1,000 1,000
83
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- ------
Washington County, Pennsylvania
Authority RB (Girard Estate Refunding
Project) Series 1999J
3.70%, 07/07/99 $ 5,000 $5,000
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon Valley
Crethren Project)
3.50%, 07/07/99 1,140 1,140
York County, Pennsylvania General
Authority Pooled Financing RB
Series 1996
3.70%, 07/07/99 1,350 1,350
------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $81,560) 81,560
------
REVENUE BONDS -- 9.1% (c)
Lancaster County, Pennsylvania Solid
Waste Management Authority Resource
Systems RB Series 1998A (f)
3.10%, 12/15/99 2,600 2,616
Northampton County, Pennsylvania
Higher Education Authority RB
(Lehigh University Project) (f)
3.05%, 11/15/99 1,000 1,014
Pennsylvania HFA S/F Mortgage Revenue
Refunding Bonds Series 61A
3.60%, 10/01/99 425 425
Pennsylvania State Turnpike Commission
RB Series 1986E (f)
3.00%, 12/01/99 4,500 4,673
Pennsylvania State Turnpike Commission
RB Series K (f)
3.00%, 12/01/99 1,700 1,764
Pittsburgh, Pennsylvania Water & Sewer
Authority Systems Refunding RB
Series 1991A (f)
3.00%, 09/01/99 1,655 1,664
------
TOTAL REVENUE BONDS
(Cost $12,156) 12,156
------
Par Value
------- ------
TAX AND REVENUE ANTICIPATION NOTES -- 7.6% (c)
Philadelphia, Pennsylvania School District
TRAN Series 1999C (d) (f)
3.45%, 06/30/00 $ 5,000 $5,027
Philadelphia, Pennsylvania TRAN
Series 1999A
3.50%, 06/30/00 5,000 5,036
------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $10,063) 10,063
------
FIXED RATE TENDER OPTION BONDS -- 5.9% (c)(e)(f)
Pennsylvania HFA RB TOB
Series 1998Y
3.32%, 07/01/99 3,100 3,100
Pennsylvania State University Revenue
Refunding Bonds TOB Series 2
3.05%, 10/07/99 2,000 2,000
Philadelphia, Pennsylvania IDRB TOBP
(PA-982) (Philadelphia Airport)
Series 1998A
3.75%, 08/04/99 2,710 2,710
------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $7,810) 7,810
------
VARIABLE RATE TENDER OPTION BONDS -- 5.9% (a)(b)(c)
Allegheny County, Pennsylvania
Airport RB TOBP (PT-176)
3.77%, 07/07/99 1,000 1,000
Chester County, Pennsylvania Health &
Education RB TOBP (PA-327)
3.77%, 07/07/99 1,700 1,700
Philadelphia, Pennsylvania Airport RB
TOB (PA-387)
3.77%, 07/07/99 3,600 3,600
Philadelphia, Pennsylvania Water &
Waste RB TOBP (PT-151) Series 1993
3.77%, 07/07/99 1,480 1,480
------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $7,780) 7,780
------
84
<PAGE>
Par Value
--------- -------
MANDATORY PUT BONDS -- 4.9% (c)(f)
Beaver County, Pennsylvania IDA Pollution
Control Revenue Refunding Bonds (Ohio
Edison Co. Project) Series 1992A
3.05%, 04/01/00 $ 6,500 $ 6,500
---------
TOTAL MANDATORY PUT BONDS
($ 6,500) 6,500
---------
TAX EXEMPT COMMERCIAL PAPER -- 4.1% (c)
Montgomery County, Pennsylvania IDA RB
Pollution Control Revenue Refunding
Bond TECP
3.20%, 07/07/99 5,500 5,500
---------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $5,500) 5,500
---------
CERTIFICATES OF PARTICIPATION -- 2.9% (c)(f)
Pennsylvania State COP Series A
3.73%, 07/01/99 3,900 3,900
---------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $3,900) 3,900
---------
GENERAL OBLIGATION BONDS -- 1.8% (c)(f)
East Stroudsburg, Pennsylvania Area
School District GO Series 1998A
3.00%, 11/15/99 1,585 1,594
Palmerton, Pennsylvania Area School
District GO
3.05%, 09/15/99 580 580
Upper Moreland Township,
Pennsylvania GO
3.00%, 11/15/99 265 265
---------
TOTAL GENERAL OBLIGATION BONDS
(Cost $2,439) 2,439
---------
TOTAL INVESTMENTS -- 103.4%
(Cost $137,708) 137,708
---------
OTHER ASSETS AND LIABILITIES-- (3.4%)
Other assets 5,711
Liabilities (10,256)
---------
(4,545)
---------
TOTAL NET ASSETS-- 100.0% $ 133,163
=========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
85
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
June 30, 1999 (unaudited)
Par Value
------- -------
VARIABLE RATE OBLIGATIONS -- 60.6% (b)f)
FLORIDA -- 43.0%
Arcadia, Florida Hospital RB (Desoto
Memorial Hospital Project)
3.65%, 07/07/99 $ 1,400 $ 1,400
Bradford County, Florida Health Facilities
Authority RB (Shands Teaching Hospital
Clinic Project) Series 1996
3.30%, 07/07/99 2,200 2,200
Broward County, Florida Indian Trace
Community Development (Basin 1
Water Project)
3.30%, 07/07/99 1,955 1,955
Broward County, Florida Suburban Port
Facilities (Port Everglades Project)
Series 1998
3.75%, 07/07/99 11,400 11,400
Citrus Park, Florida Community
Development District Capital
Improvement Bonds Series 1996
3.30%, 07/07/99 3,000 3,000
Collier County, Florida HFA M/F
Housing RB (River Beach Project)
Series 1985
3.50%, 07/07/99 300 300
Dade County, Florida Aviation Series 1984A
3.30%, 07/07/99 3,200 3,200
Dade County, Florida IDA RB (Dolphins
Stadium Project) Series 1985C
3.50%, 07/07/99 450 450
Dade County, Florida IDA RB (Micheal-Ann
Russell Jewish Community Center Project)
Series 1997
3.75%, 07/07/99 195 195
Duval County, Florida HFA M/F Housing RB
(Lakes Mayport Apartment Project)
Series 1985
3.75%, 07/07/99 3,000 3,000
Escambia County, Florida Health Facilities
Authority Hospital RB (Charity Obligation
Group Project)
3.35%, 07/07/99 1,100 1,100
Florida Development Finance Corp. IDRB
(Pioneer Ram Project) Series 1998A3
3.85%, 07/07/99 1,420 1,420
Florida HFA Housing RB (Ashley Lake II
Project) Series 1989J
3.40%, 07/07/99 10,700 10,700
Par Value
------- -------
Florida HFA Housing RB (Heron Park
Project) Series 1996U
3.40%, 07/07/99 $ 3,300 $ 3,300
Florida HFA Housing RB (Tiffany Club
Project) Series 1996P
3.55%, 07/07/99 2,875 2,875
Florida Housing Finance Corporation M/F
Housing RB (Buchanan Bay Townhomes
Project) Series 1998S
3.75%, 07/07/99 6,725 6,725
Florida Ocean Highway & Port
Authority RB Series 1990
3.75%, 07/07/99 8,700 8,700
Florida State Finance Authority (Florida
Hospital Association - Capital Projects
Loan Program) Series 1998A
3.50%, 07/07/99 6,800 6,800
Gainesville, Florida IDA (Exactech Inc.
Project)
3.80%, 07/07/99 3,900 3,900
Gulf Breeze, Florida RB (Local
Government Loan Program) Series 1985B
3.65%, 07/07/99 14,990 14,990
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985C
3.65%, 07/07/99 9,425 9,425
Halifax, Florida Health Care Facilities
Hospital Medical Center RB (Health
Care Plan Inc. Project)
3.45%, 07/07/99 3,000 3,000
Highlands County, Florida Health Facility
Authority RB (Adventist Health Systems
Project) Series 1997A
3.75%, 07/07/99 9,455 9,455
Hillsborough County, Florida Housing M/F
(Brandon Crossing Project)
3.85%, 07/07/99 2,700 2,700
Jacksonville, Florida Health Facility
Authority RB (River Garden Project)
Series 1994
3.75%, 07/07/99 2,705 2,705
Jacksonville, Florida Industrial
Development Revenue Refunding Bonds
(Pavilion Associates Project)
3.45%, 07/07/99 1,700 1,700
Jacksonville, Florida Industrial
Development Revenue Refunding Bonds
(St. John's Medical Investors Ltd. Project)
3.45%, 07/07/99 3,830 3,830
86
<PAGE>
Par Value
------- -------
Jacksonville, Florida RB (Capital Project)
3.45%, 07/07/99 $ 900 $ 900
Lake Shore, Florida Hospital Authority
Health Facilities RB (Lakeshore Hospital
Project) Series 1991
3.50%, 07/07/99 3,600 3,600
Manatee County, Florida IDRB (Trilectron
Industries Project) Series 1997A
3.95%, 07/07/99 2,000 2,000
Marion County, Florida HFA M/F
Housing RB (Paddock Place Project)
Series 1985F
3.75%, 07/07/99 2,100 2,100
Miami & Dade County, Florida IDA IDRB
(Airbus Service Co. Project) Series 1998A
3.60%, 07/07/99 4,700 4,700
Miami & Dade County, Florida IDA IDRB
(Badia Spices Inc. Project)
3.80%, 07/07/99 4,700 4,700
Miami & Dade County, Florida IDA IDRB
(Edron Fixtures Project) Series A
3.80%, 07/07/99 1,860 1,860
Miami & Dade County, Florida IDA IDRB
(Edron Fixtures Project) Series B
3.80%, 07/07/99 2,000 2,000
Miami & Dade County, Florida IDA IDRB
(Fine Arts Lamps Project) Series 1998
3.80%, 07/07/99 2,000 2,000
Miami, Florida Health Facilities
Authority RB (Jewish Home for the Aged,
Inc. Project) Series 1996
3.75%, 07/07/99 2,950 2,950
Nassua County, Florida Pollution
Control RB (Rayonier Project) Series 1999
3.45%, 07/07/99 15,600 15,600
Orange County, Florida HFA (Highland
Pointe Apartments Project) Series 1988J
3.70%, 07/07/99 7,855 7,855
Orange County, Florida HFA M/F
Housing RB (Andover Place Apartments)
3.60%, 07/07/99 3,400 3,400
Orange County, Florida M/F Housing RB
(Smokewood Project) Series A
3.75%, 07/07/99 3,800 3,800
Orlando, Florida Special Assessment RB
(Republic Drive Interchange Project)
3.45%, 07/07/99 2,000 2,000
Par Value
------ -------
Palm Beach County, Florida Health
Facilities Authority Revenue Refunding
Bonds (Joseph L. Morse Geriatric Center)
3.55%, 07/07/99 $3,455 $3,455
Palm Beach County, Florida IDRB
(Benjamin Private School Project)
3.75%, 07/07/99 3,000 3,000
Palm Beach County, Florida RB (Norton
Gallery Art School Project) Series 1995
3.60%, 07/07/99 2,300 2,300
Pasco County, Florida COP
3.60%, 07/01/99 2,000 2,000
Pinellas County, Florida Industry Council
IDRB (Better Business Forms Inc. Project)
Series 1997
3.80%, 07/07/99 1,800 1,800
Plant City, Florida Hospital RB (Southern
Florida Baptist Hospital Project)
3.65%, 07/07/99 8,700 8,700
Polk County, Florida IDA RB (Farmland
Hydro Project)
3.75%, 07/07/99 4,000 4,000
Polk County, Florida IDA RB
(Pavermodule Inc. Project)
3.80%, 07/07/99 3,510 3,510
Polk County, Florida IDA RB
(Young Florida Project) Series 1996
3.85%, 07/07/99 2,000 2,000
Riviera Beach, Florida IDRB (Sunshine
Farms Poultry Project)
3.80%, 07/07/99 2,600 2,600
SouthEast Volusia, Florida Hospital
District RB (Bert Fish Medical Center
Project) Series 1995
3.55%, 07/07/99 1,060 1,060
St. Petersburg, Florida Capital
Improvement RB (Airport & Golf Course
Project) Series 1997C
3.80%, 07/07/99 1,000 1,000
St. Petersburg, Florida Capital
Improvement RB (Airport & Golf Course
Project) Series B
3.75%, 07/07/99 3,000 3,000
Sumter County, Florida IDA RB (Robbins
Manufacturing Project) Series 1997
3.60%, 07/07/99 1,880 1,880
87
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- --------
Tallahassee & Leon County, Florida Civic
Center Authority Capital Improvement RB
Series A
3.75%, 07/07/99 $ 7,000 $ 7,000
Tampa, Florida Occupational License Tax RB
Series 1996A
3.30%, 07/07/99 1,000 1,000
--------
228,195
--------
GEORGIA -- 1.5%
Cobb County, Georgia HFA M/F Housing RB
(Walton Green Project)
3.75%, 07/07/99 7,200 7,200
Hapeville, Georgia Development Authority
IDRB (Hapeville Hotel Ltd. Project)
3.70%, 07/01/99 500 500
--------
7,700
--------
IDAHO -- 1.0%
Idaho HFA Housing RB (Assisted Living
Concepts Project)
3.70%, 07/07/99 3,000 3,000
Idaho Student Loan RB Series 1997A
3.75%, 07/07/99 2,400 2,400
--------
5,400
--------
ILLINOIS -- 3.3%
Chicago, Illinois O'Hare International
Airport RB ACES (General Airport
Second Lien) Series B1
3.40%, 07/07/99 11,000 11,000
Chicago, Illinois O'Hare International
Airport Special Facility RB
3.60%, 07/07/99 6,400 6,400
--------
17,400
--------
KANSAS -- 1.9%
Wichita, Kansas Airport Facilities Revenue
Refunding Bond (Flight Safety
International Project)
3.75%, 07/07/99 10,000 10,000
--------
LOUISIANA -- 1.4%
Lake Charles, Louisiana Harbor
Improvement RB (Port Improvement
Global Industries Project)
3.55%, 07/07/99 7,600 7,600
--------
Par Value
-------- -------
MARYLAND -- 1.9%
Montgomery County, Maryland Housing
Opportunity Commission Housing RB
(Draper Lane Project) Series 1991I
3.40%, 07/07/99 $ 9,900 $ 9,900
-------
NEW YORK -- 0.1%
New York City, New York GO
Series B Subseries B7
3.70%, 07/01/99 400 400
-------
PENNSYLVANIA -- 1.9%
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1986
3.40%, 07/07/99 4,100 4,100
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B
3.60%, 07/07/99 6,100 6,100
-------
10,200
-------
TEXAS -- 3.6%
Brazos River, Texas Higher Education
Authority RB Series 1993B1
3.40%, 07/07/99 10,200 10,200
South Texas Higher Education Authority
Student Loan RB
3.40%, 07/07/99 1,000 1,000
Trinity River Authority, Texas Solid Waste
Disposal RB (Community Waste Project)
4.00%, 07/07/99 8,000 8,000
-------
19,200
-------
UTAH -- 1.0%
Utah State Board of Regents Student
Loan RB Series 1997R
3.60%, 07/07/99 5,300 5,300
-------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $321,295) 321,295
-------
88
<PAGE>
Par Value
------- -------
TAX EXEMPT COMMERCIAL PAPER -- 13.4% (c)(f)
Florida Local Government Finance
Common Pooled TECP Series A
3.20%, 08/05/99 $10,000 $10,000
3.25%, 09/01/99 25,000 25,000
3.20%, 09/03/99 4,133 4,133
Orange County, Florida HFA Pooled
Hospital Loan TECP
3.25%, 07/19/99 8,400 8,400
3.15%, 08/24/99 7,100 7,100
Orange County, Florida TECP Series A
3.20%, 07/15/99 2,614 2,614
Pinellas County, Florida Educational
Facilities TECP
3.25%, 07/19/99 14,000 14,000
-------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $71,247) 71,247
-------
VARIABLE RATE TENDER OPTION BONDS -- 9.6% (a)(b)(f)
Dade County, Florida TOB
3.72%, 07/07/99 6,345 6,345
Eagle Dade County, Florida Water &
Sewer TOB Series 1993S
3.69%, 07/07/99 10,000 10,000
Escambia County, Florida HFA S/F
Housing TOBP (PT-1017)
3.82%, 07/01/99 7,745 7,745
Florida Department of Environmental
Protection TOB
3.90%, 07/07/99 15,465 15,465
Florida State Board of Finance Department
General Services RB TOBP (BTP-270)
3.90%, 07/07/99 9,745 9,745
Sunrise, Florida Utility Systems Revenue
Refunding Bond
3.77%, 07/07/99 1,565 1,565
-------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $50,865) 50,865
-------
Par Value
------- -------
REVENUE BONDS -- 9.1% (c)
FLORIDA -- 6.6%
Dade County, Florida Aviation
Refunding RB Series 1994A (f)
3.05%, 10/01/99 $ 1,000 $ 1,007
Florida Gas Utility RB (Gas Project #1) (f)
3.00%, 12/01/99 4,515 4,538
Florida Ports Financing Commission
Revenue Refunding Bond (State
Transportation Trust Fund) (f)
3.07%, 06/01/00 500 504
Florida State Division Bond Finance
Department General Services RB
(Department of Natural Resources)
Preservation 2000 (f)
2.33%, 07/01/99 4,000 4,000
3.60%, 07/01/99 1,010 1,010
Florida State Turnpike Authority RB (f)
3.25%, 07/01/99 1,200 1,224
Greater Orlando, Florida Aviation
Authority Airport Facilities RB (f)
3.65%, 10/01/99 3,070 3,073
Okeechobee, Florida Utility Authority
Utility System Capital Improvement
Revenue Refunding Bond Series 1999
3.20%, 10/01/99 300 300
Orange County, Florida Capital
Improvement Revenue Refunding Bond (f)
3.15%, 10/01/99 2,665 2,671
Orange County, Florida HFA
Homeowner RB Series 1999A3 (d)
3.40%, 06/01/00 4,000 4,000
Orlando & Orange County, Florida
Expressway Authority Florida Expressway
Revenue Refunding Bonds (f)
3.28%, 07/01/00 1,620 1,706
Pinellas County, Florida HFA S/F RB
(Short-Term Multi-County)
Series 1999B3 (d)
3.45%, 07/21/00 6,455 6,455
Sarasota County, Florida School Financing
Corp. Lease RB (f)
3.00%, 07/01/99 2,000 2,000
Tampa, Florida Guaranteed Entitlement
Revenue Refunding Bond
2.07%, 10/01/99 2,205 2,223
-------
34,711
-------
89
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
June 30, 1999 (unaudited)
Par Value
------- -------
PUERTO RICO (f) -- 0.6%
Puerto Rico Electric Power Authority
Revenue Refunding Bonds Series 1989
2.92%, 07/01/99 $ 3,170 $ 3,218
-------
WASHINGTON -- 1.9%
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project #2) Series 1997A
3.33%, 07/01/99 10,000 10,000
-------
TOTAL REVENUE BONDS
(Cost $47,929) 47,929
-------
REVENUE ANTICIPATION NOTES -- 5.3% (c)
Brevard County, Florida School Board RAN
3.10%, 05/06/00 10,000 10,033
3.38%, 05/06/00 10,000 10,009
Broward County, Florida School
District RAN Series 1999C
3.05%, 04/13/00 7,950 7,977
-------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $28,019) 28,019
-------
MANDATORY PUT BONDS -- 2.7% (c)
Florida Health Facility Authority
Series MM (Buena Vista Project) (f)
3.00%, 11/01/99 7,000 7,000
Miami & Dade County, Florida
Housing S/F Series B (f)
3.45%, 10/01/99 2,905 2,905
Orange County, Florida IDA RB (General
Accident Insurance Co. of America Project)
3.25%, 12/01/99 3,500 3,500
Palm Beach County, Florida HFA (f)
3.75%, 07/01/99 1,025 1,025
-------
TOTAL MANDATORY PUT BONDS
(Cost $14,430) 14,430
-------
Par Value
--------- -------
GENERAL OBLIGATION BONDS -- 0.9% (c)
Cape Coral, Florida Special Obligation
Revenue Refunding Bonds Waste &
Water GO (Assignment Green Area
Project) (f)
2.73%, 07/01/99 $ 780 $ 780
Florida State Board of Education Capital
Outlay Public Education GO
Series 1989A (f)
1.40%, 06/01/00 1,085 1,142
Florida State Board of Education Capital
Outlay Public Education GO
Series 1996A (d)
2.90%, 06/01/00 1,555 1,604
Florida State Board of Education Capital
Outlay Public Education GO Series 1997B
3.30%, 06/01/00 1,180 1,214
---------
TOTAL GENERAL OBLIGATION BONDS
(Cost $4,740) 4,740
---------
CERTIFICATES OF PARTICIPATION -- 0.2% (c)(f)
Broward County, Florida School Board
COP Series 1997C
3.12%, 07/01/99 1,330 1,330
---------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $1,330) 1,330
---------
TOTAL INVESTMENTS -- 101.8%
(Cost $539,855) 539,855
---------
OTHER ASSETS AND LIABILITIES-- (1.8%)
Other assets 3,263
Liabilities (12,780)
---------
(9,517)
---------
TOTAL NET ASSETS-- 100.0% $ 530,338
=========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
90
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS
June 30, 1999 (unaudited)
(All dollar amounts are in thousands unless otherwise noted)
For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
(a) 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
each fund. Any resale by the fund must be in an exempt transaction, normally
to a qualified institutional buyer. At June 30, 1999, 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 Municipal Money Fund, Schwab Pennsylvania Municipal
Money Fund, and Schwab Florida Municipal Money Fund was $816,549, $225,320,
$169,359, $15,159, $7,780 and $50,865, respectively, which represented
11.07%, 5.34%, 22.95%, 11.91%, 5.84% and 9.59% of the net assets of each
fund, respectively. All of these private placement investments were
determined by the investment adviser to be liquid in accordance with
procedures adopted by the Board of Trustees.
(b) 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 of 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.
(c) Interest rates represent effective yield to put or call date at time of
purchase.
(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) Security 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, 1999, the aggregate value
of the restricted securities held by Schwab Municipal Money Fund, Schwab
California Municipal Money Fund, Schwab New York Municipal Money Fund and
Schwab Pennsylvania Municipal Money Fund was $223,560, $172,117, $6,325 and
$7,810, respectively, which represented 3.03%, 4.08%, 0.86% and 5.86%,
respectively, of the net assets of each fund. All of these restricted
investments were determined by the investment adviser to be illiquid in
accordance with procedures adopted by the Board of Trustees.
(f) Security has one or more third party credit enhancements.
(g) Rate shown is the yield as of the report date.
91
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (continued)
PORTFOLIO ABBREVIATIONS
ACES Adjustable Convertible Extendable Securities
BAN Bond Anticipation Note
COP Certificates of Participation
GAN Grant Anticipation Notes
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDRB Industrial Development Revenue Bond
M/F Multi-Family
RAN Revenue Anticipation Note
RB Revenue Bond
S/F Single Family
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.
92
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
June 30, 1999 (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: $7,654,925, $4,525,855 and
$769,679 respectively) $7,654,925 $4,525,855 $769,679
Cash -- 10,811 --
Receivables:
Interest 43,733 30,088 5,115
Investments sold 87,218 240,394 10,019
Fund shares sold 33,372 11,364 1,373
Prepaid expenses 771 105 31
---------- ---------- --------
Total assets 7,820,019 4,818,617 786,217
---------- ---------- --------
LIABILITIES
Payables:
Dividends 8,587 4,608 848
Investments purchased 427,336 588,594 45,679
Fund shares redeemed 9,841 5,687 1,477
Investment advisory and administration fees 253 140 26
Transfer agency and shareholder service fees 551 331 52
Other liabilities 211 150 52
---------- ---------- --------
TOTAL LIABILITIES 446,779 599,510 48,134
---------- ---------- --------
Net assets applicable to outstanding shares $7,373,240 $4,219,107 $738,083
========== ========== ========
NET ASSETS CONSIST OF
Paid-in capital $7,375,739 $4,219,974 $738,114
Accumulated net realized loss on investments sold (2,499) (867) (31)
---------- ---------- --------
$7,373,240 $4,219,107 $738,083
========== ========== ========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 5,241,321 2,754,711 486,914
Outstanding Value Advantage Shares 2,134,687 1,465,362 251,263
---------- ---------- --------
7,376,008 4,220,073 738,177
========== ========== ========
Net asset value, offering and redemption price per each Sweep
and Value Advantage Share $1.00 $1.00 $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
June 30, 1999 (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: $131,395, $137,708 and
$539,855 respectively) $131,395 $137,708 $539,855
Cash 43 97 81
Receivables:
Interest 883 644 3,072
Investments sold -- 4,955 --
Prepaid expenses 11 15 110
-------- -------- --------
Total assets 132,332 143,419 543,118
-------- -------- --------
LIABILITIES
Payables:
Dividends 139 145 632
Investments purchased 4,888 10,063 12,068
Investment advisory fees and administration fees 3 3 6
Transfer agency and shareholder service fees 11 12 46
Other liabilities 25 33 28
-------- -------- --------
Total Liabilities 5,066 10,256 12,780
-------- -------- --------
Net assets applicable to outstanding shares $127,266 $133,163 $530,338
======== ======== ========
NET ASSETS CONSIST OF
Paid-in capital $127,269 $133,168 $530,254
Accumulated net realized gain (loss) on investments sold (3) (5) 84
-------- ------- --------
$127,266 $133,163 $530,338
======== ======== ========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 127,305 133,205 530,277
Net asset value, offering and redemption price per share $1.00 $1.00 $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
STATEMENTS OF OPERATIONS (in thousands)
For the six months ended June 30, 1999 (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 Money Fund Money Fund
---------- ---------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 115,594 $ 59,684 $ 11,391 $ 1,745 $ 2,055 $9,243
--------- -------- -------- ------- ------- ------
Expenses:
Investment advisory and
administration fees 14,224 8,096 1,603 245 282 1,272
Transfer agency and shareholder
service fees:
Sweep Shares 12,303 6,114 1,126 256 291 1,315
Value Advantage Shares 2,259 1,703 299 -- -- --
Custodian and portfolio
accounting fees 313 217 119 35 37 83
Registration fees 500 231 41 3 6 53
Professional fees 54 33 14 9 8 11
Shareholder reports 135 48 19 3 4 5
Trustees' fees 11 8 6 5 4 7
Insurance and other expenses 23 17 7 2 2 3
--------- -------- -------- ------- ------- ------
29,822 16,467 3,234 558 634 2,749
Less: expenses reduced (see Note 4) (7,710) (4,569) (969) (188) (213) (1,025)
--------- -------- -------- ------- ------- ------
Total expenses incurred by fund 22,112 11,898 2,265 370 421 1,724
--------- -------- -------- ------- ------- ------
Net investment income 93,482 47,786 9,126 1,375 1,634 7,519
Net realized gain (loss) on
investments sold 4 (57) (10) (3) -- 84
--------- -------- -------- ------- ------- ------
Increase in net assets resulting
from operations $ 93,486 $ 47,729 $ 9,116 $ 1,372 $ 1,634 $7,603
========= ======== ======== ======= ======= ======
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
95
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
<TABLE>
<CAPTION>
Schwab Schwab California
Municipal Money Fund Municipal Money Fund
----------------------------- -----------------------------
Six months Six months
ended Year ended ended Year ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 93,482 $ 180,308 $ 47,786 $ 92,312
Net realized gain (loss) on
investments sold 4 337 (57) (34)
---------- ---------- ---------- ----------
Increase in net assets
resulting from operations 93,486 180,645 47,729 92,278
---------- ---------- ---------- ----------
Dividends to shareholders
from net investment income
(See Note 2):
Sweep Shares (68,776) (135,406) (30,939) (59,906)
Value Advantage Shares (24,706) (45,171) (16,847) (32,505)
---------- ---------- ---------- ----------
Total dividends to
shareholders (93,482) (180,577) (47,786) (92,411)
---------- ---------- ---------- ----------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 15,044,703 23,318,964 7,129,852 11,624,728
Net asset value of shares
issued in reinvestment
of dividends 104,474 172,257 53,352 88,948
Less payments for shares
redeemed (14,642,710) (22,133,590) (6,933,819) (10,835,101)
---------- ---------- ---------- ----------
Increase in net assets
from capital share
transactions 506,467 1,357,631 249,385 878,575
---------- ---------- ---------- ----------
Total increase in net
assets 506,471 1,357,699 249,328 878,442
Net assets:
Beginning of period 6,866,769 5,509,070 3,969,779 3,091,337
---------- ---------- ---------- ----------
End of period $7,373,240 $6,866,769 $4,219,107 $3,969,779
========== ========== ========== ==========
</TABLE>
Schwab New York
Municipal Money Fund
-----------------------------
Six months
ended Year ended
June 30, 1999 December 31,
(unaudited) 1998
------------- -------------
Operations:
Net investment income $ 9,126 $ 16,747
Net realized gain (loss) on
investments sold (10) (7)
---------- ---------
Increase in net assets
resulting from operations 9,116 16,740
---------- ---------
Dividends to shareholders
from net investment income
(See Note 2):
Sweep Shares (5,972) (11,347)
Value Advantage Shares (3,154) (5,451)
---------- ---------
Total dividends to
shareholders (9,126) (16,798)
---------- ---------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 1,250,932 2,031,062
Net asset value of shares
issued in reinvestment
of dividends 10,204 15,938
Less payments for shares
redeemed (1,228,980) (1,823,763)
---------- ---------
Increase in net assets
from capital share
transactions 32,156 223,237
---------- ---------
Total increase in net
assets 32,146 223,179
Net assets:
Beginning of period 705,937 482,758
---------- ---------
End of period $ 738,083 $ 705,937
========== =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
96
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
<TABLE>
<CAPTION>
Schwab New Jersey Schwab Pennsylvania
Municipal Money Fund Municipal Money Fund
----------------------------- -----------------------------
Six months Six months
ended Year ended ended Year ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 1 (unaudited) 1998 1
---------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 1,375 $ 1,604 $ 1,634 $ 1,682
Net realized gain (loss) on
investments sold (3) -- -- (5)
-------- --------- --------- ---------
Increase in net assets resulting
from operations 1,372 1,604 1,634 1,677
-------- --------- --------- ---------
Dividends to shareholders from net
investment income
(See Note 2):
Sweep Shares (1,375) (1,640) (1,634) (1,719)
-------- --------- --------- ---------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 295,158 330,574 278,272 335,122
Net asset value of shares issued
in reinvestment of dividends 1,507 1,305 1,835 1,300
Less payments for shares
redeemed (267,311) (233,928) (268,660) (214,664)
-------- --------- --------- ---------
Increase (decrease) in net
assets from capital share
transactions 29,354 97,951 11,447 121,758
-------- --------- --------- ---------
Total increase (decrease)
in net assets 29,351 97,915 11,447 121,716
Net assets:
Beginning of period 97,915 -- 121,716 --
-------- --------- --------- ---------
End of period $127,266 $ 97,915 $ 133,163 $ 121,716
======== ========= ========= =========
</TABLE>
Schwab Florida
Municipal Money Fund
-----------------------------
Six months
ended Year ended
June 30, 1999 December 31,
(unaudited) 1998 2
------------- -------------
Operations:
Net investment income $ 7,519 $ 9,768
Net realized gain (loss) on
investments sold 84 --
----------- -----------
Increase in net assets resulting
from operations 7,603 9,768
----------- -----------
Dividends to shareholders from net
investment income
(See Note 2):
Sweep Shares (7,519) (9,791)
----------- -----------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 295,158 983,931
Net asset value of shares issued
in reinvestment of dividends 8,343 7,864
Less payments for shares
redeemed (1,478,512) (1,066,681)
----------- -----------
Increase (decrease) in net
assets from capital share
transactions (486,238) 1,016,515
----------- -----------
Total increase (decrease)
in net assets (486,154) 1,016,492
Net assets:
Beginning of period 1,016,492 --
----------- -----------
End of period $ 530,338 $ 1,016,492
=========== ===========
1 For the period from February 2, 1998 (commencement of operations) to December
31, 1998.
2 For the period from March 18, 1998 (commencement of operations) to December
31, 1998.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
97
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab Municipal Money Fund
---------------------------------------------------------------------------
SWEEP SHARES 1999 1 1998 1997 1996 1995 1994
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.03 0.02
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.01 0.03 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.03) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.03) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total return (%) 1.26** 2.92 3.11 2.92 3.30 2.32
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.66* 0.66 0.66 3 0.66 0.66 0.65
Reductions reflected in above expense ratio 0.21* 0.22 0.24 0.24 0.25 0.26
Ratio of net investment income to
average net assets 2.52* 2.87 3.06 2.89 3.25 2.31
Net assets, end of period (000s) $5,238,648 $5,246,638 $4,423,841 $3,868,919 $3,403,837 $3,015,951
</TABLE>
<TABLE>
<CAPTION>
VALUE ADVANTAGE SHARES 1999 1 1998 1997 1996 1995
- ------------------------------------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- --------- -------- --------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.02
-------- -------- --------- -------- --------
Total income from investment operations 0.01 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.02)
-------- -------- --------- -------- --------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.02)
-------- -------- --------- -------- --------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ========= ======== ========
Total return (%) 1.36** 3.14 3.32 3.14 1.68**
RATIOS/SUPPLEMENTAL DATA (%)
- -------------------------------------------
Ratio of net operating expenses to
average net assets 0.45* 0.45 0.45 4 0.45 0.45*
Reductions reflected in above expense ratio 0.22* 0.24 0.27 0.30 0.50*
Ratio of net investment income to
average net assets 2.73* 3.08 3.29 3.10 3.50*
Net assets, end of period (000s) $2,134,592 $1,620,131 $1,085,229 $ 608,080 $160,682
<FN>
1 For the six months ended June 30, 1999 (unaudited).
2 For the period from July 7, 1995 (commencement of operations) to December 31,
1995.
3 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.67%.
4 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.46%.
* Annualized.
** Not annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
98
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab California Municipal Money Fund
--------------------------------------------------------------
SWEEP SHARES 1999 1 1998 1997 1996 1995 1994
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- --------- -------- -------- --------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.03 0.02
---------- -------- --------- -------- -------- --------
Total from investment operations 0.01 0.03 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.03) (0.02)
---------- -------- --------- -------- -------- --------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.03) (0.02)
---------- -------- --------- -------- -------- --------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ========= ======== ======== ========
Total return (%) 1.14** 2.64 2.95 2.80 3.20 2.26
RATIOS/SUPPLEMENTAL DATA (%)
- -------------------------------------------
Ratio of net operating expenses to
average net assets 0.65* 0.65 0.65 3 0.65 0.65 0.64
Reductions reflected in above expense ratio 0.22* 0.24 0.26 0.27 0.29 0.30
Ratio of net investment income to
average net assets 2.28* 2.60 2.91 2.77 3.15 2.25
Net assets, end of period (000s) $2,753,827 $2,610,821 $2,154,522 $1,816,112 $1,577,695 $1,293,883
</TABLE>
<TABLE>
<CAPTION>
VALUE ADVANTAGE SHARES 1999 1 1998 1997 1996 1995 2
- ------------------------------------------ ---------- ---------- ---------- ---------- ----------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- --------- -------- ---------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.01
---------- ---------- --------- -------- ---------
Total income from investment operations 0.01 0.03 0.03 0.03 0.01
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.01)
---------- ---------- --------- -------- ---------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.01)
---------- ---------- --------- -------- ---------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ======== =========
Total return (%) 1.23** 2.84 3.15 3.01 0.84**
RATIOS/SUPPLEMENTAL DATA (%)
- -------------------------------------------
Ratio of net operating expenses to
average net assets 0.45* 0.45 0.45 4 0.45 0.45*
Reductions reflected in above expense ratio 0.22* 0.25 0.27 0.32 0.59*
Ratio of net investment income to
average net assets 2.47* 2.79 3.12 2.98 3.48*
Net assets, end of period (000s) $1,465,280 $1,358,958 $936,815 $507,486 $108,008
<FN>
1 For the six months ended June 30, 1999 (unaudited).
2 For the period from October 3, 1995 (commencement of operations) to December
31, 1995.
3 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.66%.
4 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.46%.
* Annualized
** Not annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
99
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Schwab New York Municipal Money Fund
----------------------------------------------------
SWEEP SHARES 1999 1 1998 1997 1996 1995 2
- ------------------------------------------ ---------- ---------- ---------- ---------- ----------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ------------ ---------- -----------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.03
----------- ----------- ------------ ---------- -----------
Total from investment operations 0.01 0.03 0.03 0.03 0.03
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.03)
----------- ----------- ------------ ---------- -----------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.03)
----------- ----------- ------------ ---------- -----------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ========== ===========
Total return (%) 1.19** 2.78 2.96 2.74 2.75**
RATIOS/SUPPLEMENTAL DATA (%)
- -------------------------------------------
Ratio of net operating expenses to average net assets 0.69* 0.69 0.69 4 0.69 0.63*
Reductions reflected in above expense ratio 0.25* 0.28 0.33 0.35 0.41*
Ratio of net investment income to average net assets 2.39* 2.73 2.93 2.71 3.20*
Net assets, end of period (000s) $ 486,841 $ 467,750 $ 357,221 $ 270,612 $ 204,863
</TABLE>
<TABLE>
<CAPTION>
VALUE ADVANTAGE SHARES 1999 1 1998 1997 1996 1995 3
- ------------------------------------------ -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------- -------
From investment operations:
Net investment income 0.01 0.03 0.03 0.03 0.02
-------- -------- -------- ------- -------
Total income from investment operations 0.01 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.03) (0.03) (0.02)
-------- -------- -------- ------- -------
Total distributions (0.01) (0.03) (0.03) (0.03) (0.02)
-------- -------- -------- ------- -------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= =======
Total return (%) 1.31** 3.03 3.21 2.99 1.62**
RATIOS/SUPPLEMENTAL DATA (%)
- -------------------------------------------
Ratio of net operating expenses to average net assets 0.45* 0.45 0.45 5 0.45 0.45*
Reductions reflected in above expense ratio 0.29* 0.33 0.40 0.56 1.36*
Ratio of net investment income to average net assets 2.63* 2.96 3.18 2.98 3.42*
Net assets, end of period (000s) $251,242 $238,187 $125,537 $66,683 $15,143
<FN>
1 For the six months ended June 30, 1999 (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 This expense ratio excludes extraordinary expenses. Had these expenses been
included, the expense ratio would have been 0.70%. 5 This expense ratio
excludes extraordinary expenses. Had these expenses been included, the
expense ratio would have been 0.46%.
* Annualized
** Not annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
100
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab New Jersey Schwab Pennsylvania Schwab Florida
Municipal Money Fund Municipal Money Fund Municipal Money Fund
-------------------- ------------------- --------------------
SWEEP SHARES 1999 1 1998 2 1999 1 1998 2 1999 1 1998 3
- ------------------------------------------ -------- ------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- -------- -------- ---------
From investment operations:
Net investment income 0.01 0.03 0.01 0.03 0.01 0.02
-------- ------- ------- -------- -------- ---------
Total from investment operations 0.01 0.03 0.01 0.03 0.01 0.02
Less distributions:
Dividends from net investment income (0.01) (0.03) (0.01) (0.03) (0.01) (0.02)
-------- ------- ------- -------- -------- ---------
Total distributions (0.01) (0.03) (0.01) (0.03) (0.01) (0.02)
-------- ------- ------- -------- -------- ---------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======== ======== =========
Total return (%) 1.20** 2.60** 1.26** 2.72** 1.28** 2.37**
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to average net assets 0.65* 0.65* 0.65* 0.65* 0.59* 0.59*
Reductions reflected in above expense ratio 0.33* 0.48* 0.33* 0.51* 0.35* 0.41*
Ratio of net investment income to average net assets 2.42* 2.75* 2.52* 2.85* 2.57* 2.95*
Net assets, end of period (000s) $127,266 $97,915 $133,163 $121,716 $530,338 $1,016,492
<FN>
1 For the six months ended June 30, 1999 (unaudited).
2 For the period from February 2, 1998 (commencement of operations) to December
31, 1998.
3 For the period from March 18, 1998 (commencement of operations) to December
31, 1998.
* Annualized.
** Not annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
101
<PAGE>
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1999 (unaudited) (All dollar amounts are in
thousands unless otherwise noted)
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 (the "Act"), 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 known as Value Advantage Shares. Both classes
represent interests in the same portfolio of investments of the respective fund
and are substantially the same in all respects, except that the classes are
subject to different transfer agency 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. 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.
102
<PAGE>
EXPENSES -- Expenses arising in connection with a fund or class of a fund are
charged directly to that fund or that class. 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.
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 federal income tax purposes.
As of December 31, 1998, the unused capital loss carryforwards, for federal
income tax purposes with expiration dates, were as follows:
Schwab Schwab Schwab
Schwab California New York Pennsylvania
Municipal Municipal Municipal Municipal
Expiring in: Money Fund Money Fund Money Fund Money Fund
---------- ---------- ---------- ---------- -----------
12/31/00 $ -- $ 1 $-- $--
12/31/01 -- 56 -- --
12/31/02 1,454 583 -- --
12/31/03 36 -- 6 --
12/31/04 465 93 9 --
12/31/05 523 35 -- --
12/31/06 -- 55 6 5
------ ---- --- ---
Total capital
loss carryforwards $2,478 $823 $21 $ 5
====== ==== === ===
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 adviser"). For advisory services and
facilities furnished, each fund pays an annual fee, payable monthly, of 0.38% on
the first $1 billion of average daily net assets, 0.35% on such assets in excess
of $1 billion to $10 billion, 0.32% on such assets in excess of $10 billion to
$20 billion, and 0.30% on such assets in excess of $20 billion. Prior to May 1,
1999, the funds paid an annual fee, payable monthly, of 0.46% on the first $1
billion of average daily net assets, 0.41% on the next $1 billion, and 0.40% on
such net assets in excess of $2 billion. The investment adviser has reduced a
portion of its fee for the six months ended June 30, 1999 (see Note 4).
TRANSFER AGENCY AND SHAREHOLDER SERVICE AGREEMENTS -- The Trust has transfer
agency and shareholder service agreements with Charles Schwab & Co., Inc.
("Schwab"). For 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 Advantage Shares. 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, 1999 (see Note 4).
103
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
OFFICERS AND TRUSTEES -- Certain officers and trustees of the Trust are also
officers and/or directors of the investment adviser and/or Schwab. During the
six months ended June 30, 1999, the Trust made no direct payments to its
officers or trustees who are "interested persons" within the meaning of the Act,
as amended. The funds incurred fees totaling $41 related to the Trust's
unaffiliated trustees.
INTERFUND TRANSACTIONS -- During the six months ended June 30, 1999, the funds
engaged in purchase and sale transactions with funds that have a common
investment adviser, common trustees, and common officers. These transactions,
made at current market value pursuant to Rule 17a-7 under the Act, as amended,
totaled the following dollar amounts as seen below.
Schwab Municipal Money Fund $1,622,988
- --------------------------------------------------------------------
Schwab California Municipal Money Fund $ 446,590
- --------------------------------------------------------------------
Schwab New York Municipal Money Fund $ 221,980
- --------------------------------------------------------------------
Schwab New Jersey Municipal Money Fund $ 221,943
- --------------------------------------------------------------------
Schwab Pennsylvania Municipal Money Fund $ 201,919
- --------------------------------------------------------------------
Schwab Florida Municipal Money Fund $ 741,067
- --------------------------------------------------------------------
4. EXPENSES REDUCED BY THE INVESTMENT ADVISER AND SCHWAB
The investment adviser and Schwab guarantee that, through at least April 30,
2000, the funds total operating expenses of each class of shares will not exceed
certain percentages of average daily net assets of that class of 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
- ----------------------------------------------------------------------
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% --
- ----------------------------------------------------------------------
104
<PAGE>
For the six months ended June 30, 1999, the total of such fees reduced by the
investment adviser and Schwab were:
Fees Reduced by the Fees Reduced by
investment adviser Schwab
- ------------------------------------------------------------------------------
Schwab Municipal Money Fund $7,602 $108
- ------------------------------------------------------------------------------
Schwab California Municipal Money Fund $4,566 $ 3
- ------------------------------------------------------------------------------
Schwab New York Municipal Money Fund $ 918 $ 51
- ------------------------------------------------------------------------------
Schwab New Jersey Municipal Money Fund $ 188 --
- ------------------------------------------------------------------------------
Schwab Pennsylvania Municipal Money Fund $ 213 --
- ------------------------------------------------------------------------------
Schwab Florida Municipal Money Fund $1,025 --
- ------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares, for the six months ended June 30, 1999 and the
year ended December 31, 1998 (at $1.00 per share), were as follows:
<TABLE>
<CAPTION>
Schwab Municipal Schwab California Municipal
Money Fund Money Fund
---------------------------- ---------------------------
Six months For the Six months For the
ended Year ended ended Year ended
June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Proceeds from shares sold:
Sweep Shares $12,974,396 $20,195,590 $ 6,135,933 $ 9,633,080
Value Advantage Shares 2,070,307 3,123,374 993,919 1,991,648
----------- ----------- ------------ -----------
Total 15,044,703 23,318,964 7,129,852 11,624,728
----------- ----------- ------------ -----------
Net asset value of shares issued in reinvestment of dividends:
Sweep Shares 78,069 131,573 34,831 58,632
Value Advantage Shares 26,405 40,684 18,521 30,316
----------- ----------- ------------ -----------
Total 104,474 172,257 53,352 88,948
----------- ----------- ------------ -----------
Less payments for shares redeemed:
Sweep Shares (13,060,460) (19,504,411) (6,027,719) (9,235,322)
Value Advantage Shares (1,582,250) (2,629,179) (906,100) (1,599,779)
----------- ----------- ------------ -----------
Total (14,642,710) (22,133,590) (6,933,819) (10,835,101)
----------- ----------- ------------ -----------
Total increase in net
assets from capital
share transactions $ 506,467 $ 1,357,631 $ 249,385 $ 878,575
=========== =========== ============ ===========
</TABLE>
Schwab New York Municipal
Money Fund
---------------------------
Six months For the
ended Year ended
June 30, 1999 December 31,
(Unaudited) 1998
----------- ------------
Proceeds from shares sold:
Sweep Shares $ 1,079,648 $ 1,718,551
Value Advantage Shares 171,284 312,511
----------- -----------
Total 1,250,932 2,031,062
----------- -----------
Net asset value of shares issued
in reinvestment of dividends:
Sweep Shares 6,687 10,945
Value Advantage Shares 3,517 4,993
----------- -----------
Total 10,204 15,938
----------- -----------
Less payments for shares redeemed:
Sweep Shares (1,067,238) (1,618,924)
Value Advantage Shares (161,742) (204,839)
----------- -----------
Total (1,228,980) (1,823,763)
----------- -----------
Total increase in net
assets from capital
share transactions $ 32,156 $ 223,237
=========== ===========
105
<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>
THIS SPACE RESERVED FOR YOUR COMMENTS AND QUESTIONS.
A SCHWAB REPRESENTATIVE WILL BE HAPPY TO ASSIST YOU.
<PAGE>
THE SCHWAB FUNDS FAMILY-REGISTERED TRADEMARK-
The Schwab Funds Family includes a variety of funds to help meet your investment
needs. 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 800-435-4000 for a free prospectus and brochure for any of these
SchwabFunds.-Registered Trademark-
This report must be preceded or accompanied by a current prospectus.
METHODS FOR PLACING ORDERS
The information below outlines how Schwab brokerage account investors can place
orders. If you are investing through a third-party investment provider, methods
for placing orders may be different.
PHONE
Call 800-435-4000, day or night (for TDD service, call 800-345-2550).
INTERNET
www.schwab.com/schwabfunds
MAIL
Write to SchwabFunds at:
P. O. Box 7575, San Francisco, CA 94120-7575
When selling or exchanging shares, be sure to include the signatures of at least
one of the persons whose name is on the account.
IN PERSON
Visit the nearest Charles Schwab office.
SCHWAB ASSET ALLOCATION FUNDS
Schwab MarketTrack All Equity Portfolio
Schwab MarketTrack Growth Portfolio
Schwab MarketTrack Balanced Portfolio
Schwab MarketTrack Conservative Portfolio
Schwab MarketManager Growth Portfolio
Schwab MarketManager Balanced Portfolio
SCHWAB STOCK FUNDS
Schwab S&P 500-Registered Trademark- Fund
Schwab 1000 Fund-Registered Trademark-
Schwab Analytics Fund-Registered Trademark-
Schwab Small-Cap Index Fund-Registered Trademark-
Schwab MarketManager Small Cap Portfolio
Schwab International Index Fund-Registered Trademark-
Schwab MarketManager International Portfolio
Schwab Total Stock Market Index Fund-TM-
SCHWAB BOND FUNDS
Schwab Total Bond Market Index Fund
Schwab Short-Term Bond Market Index Fund
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 Bond Fund
SCHWAB MONEY FUNDS
Schwab offers an array of money funds that seek high current income consistent
with stability of capital and liquidity.(1) 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)Investments in money funds are neither insured nor guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other government agency and,
although money funds seek to preserve the value of your investment at $1 per
share, it is possible to lose money.
<PAGE>
[LOGO]
INVESTMENT ADVISER
Charles Schwab Investment Management, Inc.
101 Montgomery, San Francisco, CA 94104
DISTRIBUTOR
Charles Schwab & Co., Inc.
101 Montgomery Street, San Francisco, CA 94104
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.
- -C-1999 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC/NYSE.
Printed on recycled paper. (0099-2264) MKT3603-1 (7/99)
