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
ANNUAL REPORT
AND
AN IMPORTANT NOTICE REGARDING
DELIVERY OF SHAREHOLDER
DOCUMENTS
Annual Report
December 31, 1999
<PAGE>
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission has adopted a rule permitting mutual
funds to deliver only one copy of shareholder documents, including prospectuses
and shareholder reports to fund investors with multiple accounts at the same
residential or post office box address. This practice is commonly called
"householding" and is intended to eliminate duplicate mailings of shareholder
documents.
As permitted by the rule, Schwab may begin indefinitely householding
prospectuses and shareholder reports for SchwabFunds.-Registered Trademark-
ADDITIONAL COPIES OF SHAREHOLDER DOCUMENTS
ALL SCHWABFUNDS PROSPECTUSES AND SHAREHOLDER REPORTS ARE AVAILABLE FREE OF
CHARGE, AND MAY BE REQUESTED AT ANY TIME BY CALLING SCHWAB AS INDICATED BELOW.
SCHWABFUNDS PROSPECTUSES ARE ALSO AVAILABLE ON OUR WEB SITE AT www.schwab.com.
If you would otherwise fall under our householding policy, but for any reason
prefer to receive multiple SchwabFunds prospectuses and shareholder reports,
please contact:
- - SCHWAB SIGNATURE SERVICES-TM- CLIENTS: Schwab Signature Services.
- - INVESTMENT MANAGER CLIENTS: Schwab at 1-800-515-2157, or your investment
manager.
- - ALL OTHER CLIENTS: Schwab at 1-800-435-4000.
Your instructions that householding not apply to your accounts holding
SchwabFunds will be effective within 30 days of receipt by Schwab.
<PAGE>
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
Annual Report
December 31, 1999
<PAGE>
SCHWAB MUNICIPAL MONEY FUNDS
We're pleased to bring you this annual report for the following funds (the
funds) for the one-year period ended December 31, 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)
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.
Please remember that an investment in the funds is neither insured nor
guaranteed by the Federal Deposit Insurance Corporation (FDIC) 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.
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
[PHOTO]
Dear Shareholder,
As we begin a new year, I'd like to take this opportunity to reflect on last
year's milestones at Charles Schwab Investment Management, Inc. (CSIM), the
investment adviser for the SchwabFunds-Registered Trademark- Family.
First of all, SchwabFunds assets topped the $100 billion mark in September. With
the support of investors like you, SchwabFunds continue to be among the largest
and fastest growing fund families in the nation.
Secondly, we added two new products to our SchwabFunds offering in 1999:
- - SCHWAB TOTAL STOCK MARKET INDEX FUND-TM- seeks to track the total return of
the entire U.S. stock market, as measured by the Wilshire 5000 Total Market
Index, the broadest measure of U.S. stock market performance. In one single,
low-cost investment, fund investors can benefit from exposure to U.S.
companies of all types and sizes.
- - SCHWAB YIELDPLUS FUND-TM- The fund seeks high current income with minimal
changes in share price. It is designed to provide the potential for higher
yields than a money fund and lower risk than a longer-term bond fund through a
management strategy designed to minimize price fluctuation. Intended for your
long-term (over one-year) cash needs, the fund seeks to increase the overall
yield potential of the cash portion of your portfolio.
For more information on either of these funds, please call 1-800-435-4000 and
request a free prospectus. The prospectus contains more information on fund fees
and expenses. Please read it carefully before investing.
I encourage you to take a moment to read this annual report as it is designed to
provide timely information about your SchwabFunds investments. You will find
information on each fund's total returns and performance, as well as commentary
on market conditions provided by the portfolio management team. In the section
"What Money Fund Investors Should Know," we've also provided guidelines that can
help you reach your goals by establishing--or maintaining--an ongoing investment
program.
As a leader in online brokerage, we recognize the value of the web as a means of
communicating timely, relevant information to investors. Regular updates on all
of the SchwabFunds, including performance data, are available on our Web site at
www.schwab.com/schwabfunds. We encourage you to take advantage of this valuable
resource which can help you keep track of your funds' performance.
At Schwab our philosophy has always been that a combination of regular investing
and diversification is the best strategy over the long term. By investing in
SchwabFunds, you've already taken an important step in building a portfolio that
can help you meet your future goals. Thank you for your investment in
SchwabFunds.
Sincerely,
/s/ Charles R. Schwab
Charles R. Schwab
December 31, 1999
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, money market securities or
funds, 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 brokerage 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.(3) 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 portfolio.
SWEEP INVESTMENTS are designed for your cash balances requiring frequent access.
These funds 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
* Income from all of the Schwab Municipal Money Funds may be subject to the
Federal Alternative Minimum Tax (AMT).
3
<PAGE>
WHAT MONEY FUND INVESTORS SHOULD KNOW (continued)
The table below presents the various money fund choices available at Schwab.
<TABLE>
<CAPTION>
VALUE ADVANTAGE
TAXABLE MONEY FUNDS SWEEP 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 -
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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 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 340
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 real (inflation adjusted) growth in gross
domestic product (GDP), continued its lengthy expansion with a strong growth
rate of 4.0%--the third consecutive year at 4% or higher. This rate is
considered by many economists to be in excess of what the economy can absorb
without experiencing inflationary pressures. High levels of consumer spending
and business capital investment, as well as rising real wages and strong gains
in stock prices, have been the principal factors continuing this lengthy
expansion.
The Commerce Department, after revising the GDP benchmark data for the past four
decades, has reported stronger growth, higher personal savings and lower
inflation than were previously calculated for the 1990s.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
REAL GROSS DOMESTIC PRODUCT
QUARTERLY PERCENTAGE CHANGE (ANNUALIZED RATE)
<S> <C>
Q1 1990 5.0%
Q2 1990 1.0%
Q3 1990 -0.6%
Q4 1990 -3.0%
Q1 1991 -1.7%
Q2 1991 2.6%
Q3 1991 1.3%
Q4 1991 2.5%
Q1 1992 4.3%
Q2 1992 4.0%
Q3 1992 3.1%
Q4 1992 5.2%
Q1 1993 -0.7%
Q2 1993 2.1%
Q3 1993 1.5%
Q4 1993 6.0%
Q1 1994 3.6%
Q2 1994 5.7%
Q3 1994 2.2%
Q4 1994 5.1%
Q1 1995 1.5%
Q2 1995 0.8%
Q3 1995 3.2%
Q4 1995 3.3%
Q1 1996 2.9%
Q2 1996 6.9%
Q3 1996 2.2%
Q4 1996 4.9%
Q1 1997 4.9%
Q2 1997 5.1%
Q3 1997 4.0%
Q4 1997 3.1%
Q1 1998 6.7%
Q2 1998 2.1%
Q3 1998 3.8%
Q4 1998 5.9%
Q1 1999 3.7%
Q2 1999 1.9%
Q3 1999 5.7%
Q4 1999 5.8%
Source: BLOOMBERG L.P.
</TABLE>
Concerns in 1998 over the impact of international economic problems were
displaced in 1999 by concerns over imbalances in the domestic economy, namely
the surging current account (trade) deficit, record high stock valuations and
the low savings rate.
Looking ahead, the availability of increasingly scarce labor resources and the
behavior of domestic consumers in response to continued stock market volatility
may be key determinants of whether the economy continues on its current course
or softens throughout 2000. The consensus of most economists is that the U.S.
economy appears poised for continued growth, but at a more moderate pace than
the last four years.
UNEMPLOYMENT
December's unemployment rate of 4.1% was the lowest in 29 years. Labor markets
continue to be extremely tight in many areas of the country. Growth in the labor
force has slowed, and 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 next 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%
Jul-99 4.3%
Aug-99 4.2%
Sep-99 4.2%
Oct-99 4.1%
Nov-99 4.1%
Dec-99 4.1%
Source: BLOOMBERG L.P.
</TABLE>
5
<PAGE>
MARKET OVERVIEW (continued)
INFLATION
Price inflation continued to remain well contained. The Consumer Price Index
(CPI) rose a modest 2.7% during 1999. Its core rate (which excludes the more
volatile food and energy components) rose just 1.9%. The GDP price deflator, the
broadest measure of inflation, indicated prices rising at an annual rate of 1.5%
for 1999. The Employment Cost Index, which measures inflation in wages, salaries
and benefits, was also well contained, increasing just 3.4% for the year.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MEASURES OF INFLATION MONTHLY EMPLOYMENT MONTHLY CONSUMER
COST INDEX PRICE INDEX
<S> <C> <C>
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%
Jul-99 3.1% 2.1%
Aug-99 3.1% 2.3%
Sep-99 3.1% 2.6%
Oct-99 3.4% 2.6%
Nov-99 3.4% 2.6%
Dec-99 3.4% 2.7%
Source: BLOOMBERG L.P. AND BUREAU OF LABOR STATISTICS
</TABLE>
Although there is little evidence of accelerating core inflation, the Federal
Reserve (the Fed) has expressed concern that if labor markets continue to
tighten, increases in wages could outpace productivity growth. In such an
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 at 2.9% during 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 MSCE-EAFE INDEX S&P 500 INDEX RUSSELL 2000 INDEX LEHMAN AGGREGATE BOND INDEX
GROWTH OF A HYPOTHETICAL $1 INVESTMENT
<S> <C> <C> <C> <C>
Dec-98 $1.0000 $1.0000 $1.0000 $1.0000
Jan-99 $0.9970 $1.0418 $1.0133 $1.0071
Feb-99 $0.9733 $1.0094 $0.9312 $0.9895
Mar-99 $1.0139 $1.0498 $0.9457 $0.9949
Apr-99 $1.0549 $1.0904 $1.0305 $0.9981
May-99 $1.0006 $1.0647 $1.0455 $0.9893
Jun-99 $1.0396 $1.1238 $1.0928 $0.9862
Jul-99 $1.0705 $1.0887 $1.0628 $0.9820
Aug-99 $1.0710 $1.0833 $1.0235 $0.9815
Sep-99 $1.0818 $1.0536 $1.0237 $0.9929
Oct-99 $1.1224 $1.1203 $1.0279 $0.9966
Nov-99 $1.1614 $1.1430 $1.0893 $0.9965
Dec-99 $1.2656 $1.2104 $1.2126 $0.9917
</TABLE>
COMPILED BY CHARLES SCHWAB & CO., INC.
For the first time since 1994, international stocks outperformed domestic
large-cap stocks. Assisted by the rebound in Asian markets, international
stocks, as represented by the MSCI EAFE Index, achieved a total return of 26.96%
for 1999 versus 21.04% for the S&P 500 Index. Within the S&P 500, growth stocks
in general, and technology growth stocks in particular, continued to be the
strongest performing style for the period. Small-cap stocks, as represented by
the Russell 2000 Index, also experienced a positive return of 21.26% for the
year.
Reflecting the rise in intermediate and long-term interest rates, fixed income
returns were generally weak for the period. Bond returns, as represented by the
Lehman Brothers Aggregate Bond Index, were (0.82)% for the year.
6
<PAGE>
TREASURY BOND YIELDS
Continuing a trend which began in October 1998, both long-term and
intermediate-term rates continued to climb upward during the reporting period.
The primary drivers of this upward trend were scaled back concerns about the
impact of international economic problems and continued strong growth of the
domestic economy, which shows no immediate signs of slowing.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
30-YEAR AND FIVE-YEAR TREASURY BOND YIELDS 30-YEAR TREASURY BOND YIELD FIVE-YEAR TREASURY NOTE YIELD
<S> <C> <C>
1/1/1999 5.10% 4.54%
1/8/1999 5.27% 4.73%
1/15/1999 5.11% 4.55%
1/22/1999 5.08% 4.52%
1/29/1999 5.09% 4.55%
2/5/1999 5.35% 4.86%
2/12/1999 5.42% 4.96%
2/19/1999 5.39% 4.99%
2/26/1999 5.58% 5.22%
3/5/1999 5.60% 5.22%
3/12/1999 5.53% 5.06%
3/19/1999 5.56% 5.08%
3/26/1999 5.59% 5.08%
4/2/1999 5.46% 4.96%
4/9/1999 5.46% 4.96%
4/16/1999 5.57% 5.11%
4/23/1999 5.60% 5.14%
4/30/1999 5.66% 5.21%
5/7/1999 5.81% 5.37%
5/14/1999 5.92% 5.50%
5/21/1999 5.75% 5.43%
5/28/1999 5.83% 5.58%
6/4/1999 5.96% 5.73%
6/11/1999 6.16% 5.91%
6/18/1999 5.97% 5.73%
6/25/1999 6.15% 5.89%
7/2/1999 6.00% 5.69%
7/9/1999 6.00% 5.69%
7/16/1999 5.88% 5.55%
7/23/1999 6.03% 5.69%
7/30/1999 6.10% 5.79%
8/6/1999 6.18% 5.91%
8/13/1999 6.10% 5.86%
8/20/1999 5.99% 5.77%
8/27/1999 5.98% 5.77%
9/3/1999 6.02% 5.77%
9/10/1999 6.04% 5.78%
9/17/1999 6.06% 5.75%
9/24/1999 5.97% 5.66%
10/1/1999 6.13% 5.86%
10/8/1999 6.20% 5.95%
10/15/1999 6.26% 5.97%
10/22/1999 6.35% 6.10%
10/29/1999 6.16% 5.95%
11/5/1999 6.06% 5.86%
11/12/1999 6.04% 5.86%
11/19/1999 6.16% 5.99%
11/26/1999 6.23% 6.05%
12/3/1999 6.25% 6.07%
12/10/1999 6.17% 5.98%
12/17/1999 6.37% 6.19%
12/24/1999 6.49% 6.31%
12/31/1999 6.48% 6.34%
Source: BLOOMBERG L.P.
</TABLE>
SHORT-TERM INTEREST RATE ENVIRONMENT
Short-term interest rates increased approximately 1% during 1999. Until the
April CPI report, the economy demonstrated continued signs of growth with no
significant evidence of accelerating inflation or indications that the Fed would
move to change short-term rates. Following the unexpectedly high April CPI
report, the Fed adopted a "tightening" bias in May, followed by a 0.25% increase
in the Federal Funds Rate at the June meeting.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
1999 YIELDS ON 90-DAY COMMERCIAL PAPER
AND THREE-MONTH TREASURY BILLS
THREE-MONTH TREASURY BILL 90-DAY COMMERCIAL PAPER
<S> <C> <C>
1/1/1999 4.46% 4.78%
1/8/1999 4.48% 4.75%
1/15/1999 4.43% 4.76%
1/22/1999 4.34% 4.76%
1/29/1999 4.45% 4.75%
2/5/1999 4.49% 4.76%
2/12/1999 4.52% 4.78%
2/19/1999 4.56% 4.80%
2/26/1999 4.67% 4.81%
3/5/1999 4.60% 4.83%
3/12/1999 4.59% 4.81%
3/19/1999 4.49% 4.81%
3/26/1999 4.49% 4.81%
4/2/1999 4.39% 4.82%
4/9/1999 4.35% 4.80%
4/16/1999 4.31% 4.79%
4/23/1999 4.41% 4.78%
4/30/1999 4.54% 4.77%
5/7/1999 4.60% 4.79%
5/14/1999 4.65% 4.79%
5/21/1999 4.58% 4.83%
5/28/1999 4.64% 4.84%
6/4/1999 4.54% 4.87%
6/11/1999 4.73% 4.90%
6/18/1999 4.65% 5.00%
6/25/1999 4.79% 5.03%
7/2/1999 4.67% 5.13%
7/9/1999 4.68% 5.11%
7/16/1999 4.66% 5.10%
7/23/1999 4.66% 5.11%
7/30/1999 4.75% 5.12%
8/6/1999 4.80% 5.18%
8/13/1999 4.71% 5.24%
8/20/1999 4.83% 5.27%
8/27/1999 4.99% 5.30%
9/3/1999 4.91% 5.31%
9/10/1999 4.73% 5.31%
9/17/1999 4.65% 5.33%
9/24/1999 4.78% 5.33%
10/1/1999 4.86% 5.30%
10/8/1999 4.79% 5.90%
10/15/1999 5.05% 5.87%
10/22/1999 5.05% 5.96%
10/29/1999 5.09% 5.90%
11/5/1999 5.12% 5.88%
11/12/1999 5.22% 5.78%
11/19/1999 5.22% 5.79%
11/26/1999 5.29% 5.78%
12/3/1999 5.25% 5.83%
12/10/1999 5.28% 5.84%
12/17/1999 5.44% 5.89%
12/24/1999 5.45% 6.00%
12/31/1999 5.33% 5.78%
Source: BLOOMBERG L.P.
</TABLE>
Throughout the remainder of the year, the Fed continued to express concern about
the potential for a buildup of inflationary imbalances that could undermine the
favorable performance of the economy. The Fed raised the Federal Funds Rate by
0.25% two additional times in August and November. The target Federal Funds Rate
was 5.50% at the end of the reporting period and there was a widespread
expectation by most economists that the Fed may adopt further rate increases
during 2000.
SHORT-TERM MUNICIPAL INTEREST RATES
During the first part of the year, strong demand coupled with low issuance
caused short-term municipal rates to slowly decline. As the April tax deadline
approached, demand for short-term municipal securities decreased, causing
municipal short-term interest rates to rise. The onset of the municipal note
season in early June, which saw an increase in their supply, coincided with the
Fed's
7
<PAGE>
MARKET OVERVIEW (continued)
continued bias toward raising rates. This resulted in higher short-term
municipal rates.
During the second half of the year, short-term municipal rates rose in step with
taxable rates, and maintained a relatively stable position relative to taxable
commercial paper yields.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
90-DAY MUNICIPAL COMMERCIAL PAPER YIELD
<S> <C>
01/01/1999 2.95%
01/08/1999 2.85%
01/15/1999 2.90%
01/22/1999 2.85%
01/29/1999 2.80%
02/05/1999 2.70%
02/12/1999 2.70%
02/19/1999 2.70%
02/26/1999 2.85%
03/05/1999 3.00%
03/12/1999 3.15%
03/19/1999 3.15%
03/26/1999 3.10%
04/02/1999 3.10%
04/09/1999 3.00%
04/16/1999 3.15%
04/23/1999 3.20%
04/30/1999 3.20%
05/07/1999 3.20%
05/14/1999 3.15%
05/21/1999 3.12%
05/28/1999 3.10%
06/04/1999 2.95%
06/11/1999 3.10%
06/18/1999 3.30%
06/25/1999 3.50%
07/02/1999 3.25%
07/09/1999 3.20%
07/16/1999 3.30%
07/23/1999 3.35%
07/30/1999 3.35%
08/06/1999 3.25%
08/13/1999 3.40%
08/20/1999 3.40%
08/27/1999 3.45%
09/03/1999 3.45%
09/10/1999 3.50%
09/17/1999 3.50%
09/24/1999 3.55%
10/01/1999 3.75%
10/08/1999 3.70%
10/15/1999 3.75%
10/22/1999 3.80%
10/29/1999 3.80%
11/05/1999 3.75%
11/12/1999 3.75%
11/19/1999 3.85%
11/26/1999 3.85%
12/03/1999 3.85%
12/10/1999 3.80%
12/17/1999 3.85%
12/24/1999 3.90%
12/31/1999 3.90%
Source: BLOOMBERG L.P.
</TABLE>
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 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 3.83% 4.04%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 3.90% 4.12%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.46% 6.82%
- --------------------------------------------------------------------------------------------
</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 5.29% as of 12/28/99
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(5) 0.82% 1.17%
- --------------------------------------------------------------------------------------------
</TABLE>
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 December 31, 1999, and is not
indicative of its holdings after that date. A complete list of the securities in
the fund's portfolio as of December 31, 1999 is provided in the Schedule of
Investments later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 56.4%
Tender Option Bonds 13.7%
Tax-Exempt Commercial Paper 8.5%
Put Bonds 7.5%
Anticipation Notes 8.8%
Revenue Bonds 3.8%
Other 0.1%
General Obligations & Certificate of Participation 1.2%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.65%,
3.72% and 6.16%, respectively, for Sweep Shares, and 3.85%, 3.92% and 6.49%,
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
305 funds in the first-tier category of taxable money funds as of 12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This yield advantage relationship
was not consistent throughout the reporting period.
10
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 3.37% 3.57%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 3.43% 3.63%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.26% 6.63%
- --------------------------------------------------------------------------------------------
</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 5.29% as of 12/28/99 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(5) 0.62% 1.03%
- --------------------------------------------------------------------------------------------
</TABLE>
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 December 31, 1999, and is not indicative of its holdings
after that date. A complete list of the securities in the fund's portfolio as of
December 31, 1999 is provided in the Schedule of Investments later in this
report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 42.1%
Anticipation Notes 21.4%
Tax-Exempt Commercial Paper 20.5%
Tender Option Bonds 11.9%
Other 4.1%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.18%,
3.23% and 5.90%, respectively, for Sweep Shares, and 3.39%, 3.45% and 6.30%,
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
305 funds in the first-tier category of the taxable money funds as of
12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This relationship was not
consistent throughout the reporting period.
11
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES VALUE ADVANTAGE SHARES
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Seven-Day Yield 3.64% 3.88%
- --------------------------------------------------------------------------------------------
Seven-Day Effective Yield 3.71% 3.95%
- --------------------------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.88% 7.32%
- --------------------------------------------------------------------------------------------
</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 5.29% as of 12/28/99 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(5) 1.20% 1.66%
- --------------------------------------------------------------------------------------------
</TABLE>
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 December 31, 1999 and is not indicative of its holdings
after that date. A complete list of the securities in the fund's portfolio as of
December 31, 1999 is provided in the Schedule of Investments later in this
report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 35.9%
Tender Option Bonds 20.8%
Anticipation Notes 19.2%
Tax-Exempt Commercial Paper 16.6%
General Obligations 3.3%
Revenue Bonds 4.2%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.44%,
3.50% and 6.49%, respectively, for Sweep Shares, and 3.64%, 3.71% and 6.88%,
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
305 funds in the first-tier category of the taxable money funds as of
12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This relationship was not
consistent throughout the reporting period.
12
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- ------------------------------------------------------------------------
Seven-Day Yield 3.66%
- ------------------------------------------------------------------------
Seven-Day Effective Yield 3.73%
- ------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.60%
- ------------------------------------------------------------------------
</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 5.29% as
of 12/28/99 for first-tier taxable money funds.(4)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- ------------------------------------------------------------------------
Yield advantage over the average taxable money
fund(5) 0.95%
- ------------------------------------------------------------------------
</TABLE>
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 December 31, 1999 and is not indicative of its holdings
after that date. A complete list of the securities in the fund's portfolio as of
December 31, 1999 is provided in the Schedule of Investments later in
this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 41.4%
Anticipation Notes 20.1%
Tender Option Bonds 20.1%
Revenue Bonds 7.1%
General Obligations 1.7%
Tax-Exempt Commercial Paper 9.6%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.38%,
3.44% and 6.08%, 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
305 funds in the first-tier category of the taxable money funds as of
12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This relationship was not
consistent throughout the reporting period.
13
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- ------------------------------------------------------------------------
Seven-Day Yield 3.81%
- ------------------------------------------------------------------------
Seven-Day Effective Yield 3.88%
- ------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.61%
- ------------------------------------------------------------------------
</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 5.29% as of
12/28/99 for first-tier taxable money funds:(4)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- ------------------------------------------------------------------------
Yield advantage over the average taxable money
fund(5) 0.91%
- ------------------------------------------------------------------------
</TABLE>
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 December 31, 1999 and is not indicative of its
holdings after that date. A complete list of the securities in the fund's
portfolio as of December 31, 1999 is provided in the Schedule of Investments
later in this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 50.0%
Tender Option Bonds 15.0%
Revenue Bonds 8.8%
Anticipation Notes 7.1%
Tax-Exempt Commercial Paper 12.9%
General Obligations and Put Bonds 6.2%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.54%,
3.60% and 6.13%, 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
305 funds in the first-tier category of the taxable money funds as of
12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This relationship was not
consistent throughout the reporting period.
14
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
YIELD SUMMARY AS OF 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP SHARES
<S> <C>
- ------------------------------------------------------------------------
Seven-Day Yield 3.82%
- ------------------------------------------------------------------------
Seven-Day Effective Yield 3.89%
- ------------------------------------------------------------------------
Seven-Day Taxable-Equivalent Yield(2) 6.44%
- ------------------------------------------------------------------------
</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 5.29% as of 12/28/99 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(5) 0.79%
- ------------------------------------------------------------------------
</TABLE>
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 December 31, 1999 and is not indicative of its holdings
after that date. A complete list of the securities in the fund's portfolio as of
December 31, 1999 is provided in the Schedule of Investments later in
this report.
PORTFOLIO COMPOSITION AS A PERCENTAGE
OF FUND INVESTMENTS
as of 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Obligations 65.9%
Tax-Exempt Commercial Paper 11.0%
Tender Option Bonds 5.0%
Revenue Bonds 4.5%
Anticipation Notes 7.8%
General Obligations and Certificates of Participation 3.2%
Mandatory Put Bonds 2.6%
</TABLE>
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 12/31/99, the seven-day, seven-day effective
and seven-day taxable equivalent yields for the fund would have been 3.55%,
3.61% and 5.98%, 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
305 funds in the first-tier category of the taxable money funds as of
12/28/99.
(5) Represents seven-day period ended 12/28/99, the last day of the reporting
period for which IBC data was available. This relationship was not
consistent throughout the reporting period.
15
<PAGE>
FUND DISCUSSION
QUESTIONS TO THE
PORTFOLIO MANAGEMENT TEAM
Q. CAN YOU DESCRIBE THE SHORT-TERM INTEREST RATE ENVIRONMENT DURING THE ONE-YEAR
REPORTING PERIOD?
A. Short-term interest rates remained relatively stable during the first half of
the reporting period as the economy demonstrated continued signs of growth. The
unexpectedly high April Consumer Price Index (CPI) report, however, renewed
inflation fears and increased the possibility of potential action by the Federal
Reserve (the Fed). In May, the Fed gave its first indication that they were
concerned about increasing inflationary pressure by adopting a "tightening"
bias, causing short-term rates to edge upward toward the end of the first half
of the reporting period.
The Fed maintained its vigilant stance as the economy continued to grow at a
robust pace and the labor markets remained very tight. Concerned that
inflationary imbalances could undermine the favorable performance of the
economy, the Fed took steps to slow growth by raising short-term interest rates
by 0.25% on June 30th. This rate increase was followed by two additional
increases of 0.25%, in August and November, bringing the Federal Funds Rate to
5.50% as of the end of the reporting period.
During much of the year there was a great deal of concern about the potential
effect of Y2K on short-term interest rates. These concerns were largely
controlled by the Fed's willingness to provide liquidity and the positive
reports about Y2K preparations. As a result, there was very little pressure on
short-term rates toward the close of the reporting period.
Municipal short-term rates slowly declined during the first part of the year due
to low issuance and strong demand for short-term municipal securities. As the
April tax deadline approached, lower demand for short-term municipal securities
caused interest rates to rise. The increase in rates gained momentum as the Fed
indicated a bias toward raising rates, which coincided with the additional
supply created by the beginning of municipal note season in early June. During
the second half of the year, short-term municipal rates rose in step with
taxable rates and settled into a narrow range as a percentage of short-term
taxable securities.
Q. HOW HAS THE PORTFOLIO MANAGEMENT TEAM ADJUSTED THE FUNDS' PORTFOLIOS TO
RESPOND TO CHANGES IN INTEREST RATES?
A. During the first half of the reporting period we managed the portfolios in
order to capitalize on the seasonal cycles typical of demand notes, a type of
variable rate short-term municipal security. 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 allowed the funds to lock in
higher rates and to be insulated from the lower rates typical of demand notes in
January.
Due to the uncertainty related to a possible change in interest rates by the Fed
and decreased issuance of short-term municipal securities (down 20% January-May
vs. same period in 1998), the funds maintained a somewhat neutral strategy
throughout most of the first half of the year, with dollar-weighted average
maturities (DWAMs) comparable to other funds with similar investment objectives.
The portfolio managers began extending the DWAMs in June to take advantage
16
<PAGE>
of the seasonal note supply. As the year came to a close we began to further
extend the portfolios, DWAMs to take advantage of higher rates offered on
fixed-rate short-term securities. By investing in these instruments, we were
able to insulate the funds from exposure to lower yielding securities that
typically are offered at the beginning of every year.
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. During 1999, California's
non-farm employment gains were 3.3%, 50% higher than the nation's growth rate
and continuing a several-year trend of surpassing the national trend. Looking
forward, non-farm employment is estimated to grow by 2.9% in 2000, adding over
400,000 new jobs, then up again 2.5% in 2001. It is anticipated that California
will see continued moderate growth across most industry sectors. California
should also benefit from increased economic vibrancy in Asia as well as
continued strong export growth to Mexico and increasing exports to Europe,
Canada and Middle East.
The continued state economic improvement has allowed for an accumulation of
budget reserves and an easing of some of the spending restrictions imposed
during the last recession. At fiscal year end June 30, 1999, the state had a
budget surplus of approximately $2.4 billion. Due to continued strong revenue
growth during the first half of the current fiscal year, the state now projects
an approximate $3 billion budget reserve at fiscal year end June 30, 2000. 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. Therefore, the state's
financial position may be somewhat static over the next 12 months.
We are satisfied that the California securities held by the California Municipal
Money Fund 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, 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 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 long-standing general fund imbalances. Receipts
in fiscal 1999 were revised at mid-year but still exceeded projections by $750
million. The total surplus of $1.79
17
<PAGE>
FUND DISCUSSION (continued)
billion has been earmarked to offset tax cuts enacted in the last three years
that total $3.5 billion. The difference is expected to be met by revenue growth
and spending at levels below inflation. Although the state's economic
projections are reasonable and in line with independent institutions, much of
the growth is reliant on continued strength in the financial services sector.
This reliance is a weakness given the unlikely event that the financial services
sector will continue to produce the outstanding results of the last three years.
We are satisfied that the New York securities held by the New York Municipal
Money Fund represent minimal credit risk and we will continue to monitor the
state's economic situation closely. New York's current credit ratings are A2
from Moody's Investor Service, A+ from Standard & Poor's Corporation and A+ from
Fitch IBCA, Inc., three well-known rating agencies.
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. Although
recovery came slowly; a spike in job growth in 1997 that continued in 1998
allowed the state to return to its pre-recession level of total employment and
register the best two year period of growth since 1987-1988. Near-term 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 a financial cushion of approximately 5.5% of its annual
expenditures. The state's 2000 budget generally follows the track of prior
years with no new taxes and a focus on educational and environmental spending.
As in prior years, higher spending is expected to be offset by a 4.3% increase
in total revenue. Therefore, while the state may see higher revenues over the
next 12 months, it may not be able to make a significant improvement in its
general fund reserves. Further, while the state's economic projections are
reasonable and in line with independent institutions, much of the growth is
reliant on continued strength in the financial services sector. This reliance is
a weakness given the unlikely event that the financial services sector will
continue to produce the outstanding results of the last three years.
We are satisfied that the New Jersey securities held by the New Jersey Municipal
Money Fund represent minimal credit risk and we will continue to monitor the
state's economic situation closely. New Jersey's current credit ratings are Aa1
from Moody's Investor Service, AA+ from Standard & Poor's Corporation and AA+
from Fitch IBCA, Inc., three well-known rating agencies.
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
18
<PAGE>
region, Pennsylvania was severely impacted by the recession of the early 1990s.
Recovery came slowly with annual increases in non-farm payroll from 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 the pre-recession peak. Continued economic growth
may be constrained by ongoing structural changes in the economy, especially in
the manufacturing sector.
In each of the last seven years Pennsylvania has generated operating surpluses.
This has allowed the state to make contributions to its Rainy Day Fund that now
totals more than $982 million or approximately 5% of 1999 revenues. The state's
2000 budget was adopted prior to the start of the new 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 may cause budgetary constraints, leading to spending reductions
and possible depletion of accumulated reserves.
We are satisfied that the Pennsylvania securities held by the Pennsylvania
Municipal Money Fund represent minimal credit risk and we will continue to
monitor the state's economic situation closely. Pennsylvania's current credit
ratings are Aa3 from Moody's Investor Service, AA from Standard & Poor's
Corporation and AA from Fitch IBCA, Inc., three well-known rating agencies.
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 continues to see its economy diversify into trade,
services, finance and exports, thus greatly reducing its previous dependence on
agriculture and tourism. This economic diversification, along with moderate debt
levels and successful financial operations, has contributed to Florida's above
average credit quality. As the state has grown, it has successfully met the
challenge of funding its 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
establishing the Budget Stabilization Fund. Through the end of fiscal 1999, this
fund has grown to about 5% of General Fund revenues, meeting the
state's target.
We are satisfied that the Florida securities held by the Florida Municipal Money
Fund 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 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- -----------------------------------------------------------------------------
Last seven days 3.83% 4.04%
- -----------------------------------------------------------------------------
Last three months 3.00% 3.21%
- -----------------------------------------------------------------------------
Last 12 months 2.66% 2.87%
- -----------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 72.4% 69.5% 71.5% 68.4%
- ----------------------------------------------------------------
16-30 days 0.2% 2.3% 1.8% 4.3%
- ----------------------------------------------------------------
31-60 days 7.0% 4.8% 2.1% 3.5%
- ----------------------------------------------------------------
61-90 days 6.2% 3.1% 1.5% 3.4%
- ----------------------------------------------------------------
91-120 days 6.5% 2.7% 1.3% 2.3%
- ----------------------------------------------------------------
More than 120 days 7.7% 17.6% 21.8% 18.1%
- ----------------------------------------------------------------
Weighted average 35 days 66 days 62 days 48 days
- ----------------------------------------------------------------
</TABLE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- -----------------------------------------------------------------------------
Last seven days 3.37% 3.57%
- -----------------------------------------------------------------------------
Last three months 2.70% 2.90%
- -----------------------------------------------------------------------------
Last 12 months 2.39% 2.59%
- -----------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 68.3% 64.9% 65.8% 53.3%
- ----------------------------------------------------------------
16-30 days 0.3% 3.8% 2.1% 4.8%
- ----------------------------------------------------------------
31-60 days 5.0% 5.8% 5.3% 1.3%
- ----------------------------------------------------------------
61-90 days 8.0% 5.5% 1.3% 8.9%
- ----------------------------------------------------------------
91-120 days 9.7% 3.2% 0.0% 4.8%
- ----------------------------------------------------------------
More than 120 days 8.7% 16.8% 25.5% 26.9%
- ----------------------------------------------------------------
Weighted average 36 days 72 days 78 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.
21
<PAGE>
PORTFOLIO HIGHLIGHTS
SCHWAB NEW YORK MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP VALUE ADVANTAGE
SHARES SHARES
<S> <C> <C>
- -----------------------------------------------------------------------------
Last seven days 3.64% 3.88%
- -----------------------------------------------------------------------------
Last three months 2.91% 3.15%
- -----------------------------------------------------------------------------
Last 12 months 2.56% 2.80%
- -----------------------------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 70.0% 67.2% 71.7% 56.0%
- ----------------------------------------------------------------
16-30 days 1.0% 0.0% 0.6% 1.3%
- ----------------------------------------------------------------
31-60 days 7.3% 10.4% 1.8% 3.0%
- ----------------------------------------------------------------
61-90 days 5.9% 5.1% 4.3% 14.0%
- ----------------------------------------------------------------
91-120 days 3.3% 2.9% 3.0% 2.4%
- ----------------------------------------------------------------
More than 120 days 12.5% 14.4% 18.6% 23.3%
- ----------------------------------------------------------------
Weighted average 44 days 59 days 59 days 71 days
- ----------------------------------------------------------------
</TABLE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- -----------------------------------------------------------
Last seven days 3.66%
- -----------------------------------------------------------
Last three months 2.90%
- -----------------------------------------------------------
Last 12 months 2.55%
- -----------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 60.7% 65.0% 67.8% 56.8%
- ----------------------------------------------------------------
16-30 days 0.0% 3.4% 0.0% 4.7%
- ----------------------------------------------------------------
31-60 days 11.9% 1.1% 0.0% 7.5%
- ----------------------------------------------------------------
61-90 days 8.0% 5.7% 4.4% 8.2%
- ----------------------------------------------------------------
91-120 days 3.0% 1.8% 2.4% 1.2%
- ----------------------------------------------------------------
More than 120 days 16.4% 23.0% 25.4% 21.6%
- ----------------------------------------------------------------
Weighted average 60 days 71 days 68 days 68 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 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- -----------------------------------------------------------
Last seven days 3.81%
- -----------------------------------------------------------
Last three months 3.00%
- -----------------------------------------------------------
Last 12 months 2.67%
- -----------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 74.1% 71.8% 68.5% 61.0%
- ----------------------------------------------------------------
16-30 days 2.1% 2.2% 0.7% 12.3%
- ----------------------------------------------------------------
31-60 days 0.1% 2.0% 5.6% 0.0%
- ----------------------------------------------------------------
61-90 days 5.3% 1.6% 6.4% 0.0%
- ----------------------------------------------------------------
91-120 days 4.6% 1.8% 0.0% 6.3%
- ----------------------------------------------------------------
More than 120 days 13.8% 20.6% 18.8% 20.4%
- ----------------------------------------------------------------
Weighted average 42 days 62 days 59 days 58 days
- ----------------------------------------------------------------
</TABLE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
AVERAGE YIELDS FOR THE PERIOD ENDED 12/31/99(1)
<TABLE>
<CAPTION>
SWEEP
SHARES
<S> <C>
- -----------------------------------------------------------
Last seven days 3.82%
- -----------------------------------------------------------
Last three months 3.10%
- -----------------------------------------------------------
Last 12 months 2.74%
- -----------------------------------------------------------
</TABLE>
MATURITY SCHEDULE: PERCENTAGE OF TOTAL INVESTMENTS
<TABLE>
<CAPTION>
MATURITY RANGE 3/31/99 6/30/99 9/30/99 12/31/99
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
0-15 days 69.2% 74.0% 72.5% 70.5%
- ----------------------------------------------------------------
16-30 days 2.5% 4.1% 1.0% 3.4%
- ----------------------------------------------------------------
31-60 days 14.4% 3.2% 5.1% 3.0%
- ----------------------------------------------------------------
61-90 days 4.1% 5.4% 0.6% 2.5%
- ----------------------------------------------------------------
91-120 days 3.1% 2.2% 0.0% 2.1%
- ----------------------------------------------------------------
More than 120 days 6.7% 11.1% 20.8% 18.5%
- ----------------------------------------------------------------
Weighted average 31 days 43 days 66 days 48 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)
December 31, 1999
Par Value
------- ----------
VARIABLE RATE OBLIGATIONS -- 56.0% (b)(f)
ALABAMA -- 0.6%
Alabama State IDA RB (Cash
Value Project)
5.50%, 01/07/00 $3,050 $ 3,050
Alabama State IDA RB (Scientific Project)
5.70%, 01/07/00 3,235 3,235
Birmingham, Alabama GO Series 1992A
5.35%, 01/07/00 5,600 5,600
Birmingham, Alabama Unlimited GO
Refunding Bonds Series 1995
5.45%, 01/07/00 3,900 3,900
Citronelle, Alabama IDB Pollution Control
Revenue Refunding Bonds (AKZO
Chemicals, Inc. Project)
5.60%, 01/07/00 1,100 1,100
Decatur, Alabama IDB Solid Waste
Disposal RB (Trico Steel Project)
Series 1997
5.60%, 01/07/00 5,700 5,700
Decatur, Alabama IDRB (Alabama
Farmers Corp.)
5.55%, 01/07/00 2,900 2,900
Dothan, Alabama IDB RB (Baxley
Blowpipe Project)
5.50%, 01/07/00 700 700
Fort Payne, Alabama IDA Base Tax Exempt
Adjustable Mode IDRB (Charleston
Hosiery Project) Series 1997
5.60%, 01/07/00 2,000 2,000
Headland, Alabama IDB RB
(Golden Peanut Project)
5.70%, 01/07/00 4,000 4,000
Indian Springs Village, Alabama Additional
Building Authority RB (Jbruno
Academy Project)
5.40%, 01/07/00 1,600 1,600
Mobile, Alabama IDB IDRB (Holman Inc.
Project)
5.30%, 01/05/00 1,000 1,000
Mobile County, Alabama IDB Pollution
Control Revenue Refunding Bonds
(Ultraform Co. Project) Series 1995A
5.50%, 01/07/00 7,480 7,480
Mobile County, Alabama IDB RB
(Ultraform Co. Project) Series 1995B
5.50%, 01/07/00 1,000 1,000
Par Value
------- ----------
Scottsboro, Alabama GO
5.45%, 01/07/00 $ 4,650 $ 4,650
Tuscaloosa, Alabama IDRB (Knight
Special Project)
5.50%, 01/07/00 1,180 1,180
----------
49,095
----------
ARIZONA -- 1.1%
Arizona Educational Loan Marketing
Corp. RB Series A
5.45%, 01/07/00 12,605 12,605
Arizona Health Facilities Authority
Hospital System RB (Arizona Volunteer
Hospital Federation) Series 1985A
5.40%, 01/07/00 11,240 11,240
Arizona Health Facilities Authority
Hospital System RB (Arizona Volunteer
Hospital Federation) Series 1985B
5.40%, 01/07/00 8,855 8,855
Arizona Health Facilities Authority
Hospital System RB (Northern Arizona
Health Care ) Series 1996B
5.40%, 01/07/00 26,100 26,100
Arizona Health Facilities Authority
Hospital System RB (Samcor Project)
1986 Loan Pool
5.40%, 01/07/00 5,640 5,640
Chandler, Arizona IDA IDRB (South Bay
Circuits Project) Series 1999A
5.70%, 01/06/00 2,000 2,000
Phoenix, Arizona Civic Improvement
Excise Tax RB (Airport Improvements)
5.80%, 01/07/00 1,000 1,000
Phoenix, Arizona IDA RB (Vaw America
Inc. Project)
5.55%, 01/07/00 3,000 3,000
Yavapai County, Arizona IDRB (Yavapai
Regional Medical Center)
5.40%, 01/07/00 14,000 14,000
Yuma County, Arizona IDA M/F Housing
RB (El Encanto Apartments) Series A
4.85%, 01/07/00 2,915 2,915
Yuma County, Arizona IDA RB
(Meadowcraft, Inc. Project) Series 1997
5.55%, 01/06/00 1,000 1,000
----------
88,355
----------
24
<PAGE>
Par Value
------- ----------
ARKANSAS -- 0.3%
Arkansas Development Finance Authority
IDRB (C&C Holding Co. Project) Series 1998
5.55%, 01/07/00 $1,490 $ 1,490
Arkansas State Development Finance
Authority Higher Education Capitial
RB Series 1985A
5.40%, 01/06/00 7,600 7,600
Fayetteville, Arkansas Public Facilities
Board RB
4.70%, 01/01/00 4,000 4,000
Independence County, Arkansas IDRB
(Ideal Baking Project)
5.55%, 01/07/00 5,300 5,300
Independance County, Arkansas IDRB
(Townsends of Arkansas, Inc. Project)
5.60%, 01/07/00 9,000 9,000
----------
27,390
----------
CALIFORNIA -- 1.2%
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series 1992E-1
5.65%, 01/07/00 5,000 5,000
California Pollution Control Financing
Authority Pollution Control RB
(Southern California Edison)
Series 1986C
4.10%, 01/01/00 1,200 1,200
California Pollution Control Financing
Authority Pollution Control Revenue
Refunding Bonds (Pacific Gas &
Electric Co.) Series 1996C
4.40%, 01/01/00 6,000 6,000
California Pollution Control Financing
Authority Pollution Control Revenue
Refunding Bonds (Pacific Gas &
Electric Co. ) Series 1996D
4.40%, 01/01/00 2,000 2,000
California Pollution Control Financing
Authority Pollution Control Revenue
Refunding Bonds (Pacific Gas &
Electric Co.) Series 1996E
4.05%, 01/01/00 3,000 3,000
California Pollution Control Financing
Authority Pollution Control Revenue
Refunding Bonds (Pacific Gas &
Electric Co. ) Series 1997B
4.45%, 01/01/00 9,100 9,100
Par Value
------- ----------
California Pollution Control Financing
Authority Pollution Control Revenue
Refunding Bonds (Shell Oil Co. Project)
Series 1991A
4.20%, 01/01/00 $ 6,300 $ 6,300
Irvine Ranch, California Improvement
Bond Act 1915 Special Assessment Bonds
(District No. 87-8)
4.20%, 01/01/00 14,000 14,000
Irvine Ranch, California Improvement
Bond Act 1915 Special Assessment Bonds
(District No. 97-17)
4.20%, 01/01/00 12,100 12,100
Irvine Ranch, California Improvement
Bond Act 1915 Special Assessment Bonds
(District No. 89-10)
4.20%, 01/01/00 1,000 1,000
Los Angeles County, California
Metropolitan Transportation Authority
Revenue Refunding Bonds Series 1993A
4.90%, 01/07/00 9,980 9,980
Metropolitan Water District of Southern
California Water Works Revenue
Refunding Bonds Series 1996A
4.90%, 01/07/00 15,675 15,675
Orange County, California Sanitation
District Authority
4.20%, 01/01/00 2,200 2,200
San Jose, California M/F Housing RB
(Almaden Lake Village Apartments
Project) Series 1997A
5.10%, 01/07/00 7,000 7,000
Vallecitos District, California Water
Revenue COP (Twin Oaks Reservoir
Project)
5.00%, 01/07/00 2,100 2,100
West Basin, California Municipal Water
District RB COP (Phase III Recycled
Water) Series 1999A
4.80%, 01/07/00 2,600 2,600
----------
99,255
----------
COLORADO -- 2.6%
Adams County, Colorado Economic
Development Authority Tax Increment
RB (Westminster Plaza Urban Renewal
Project)
5.70%, 01/07/00 6,460 6,460
25
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Adams County, Colorado IDRB (City View
Park Project) Series 1985
5.55%, 01/07/00 $ 5,700 $ 5,700
Arapahoe County, Colorado Industrial
Development Revenue Refunding Bonds
(Denver Jet Center Project) Series 1997
4.00%, 01/01/00 1,000 1,000
Central City, Colorado M/F Housing RB
(Gold Mountain Apartment Project)
5.65%, 01/07/00 8,250 8,250
Colorado Health Facilities Authority RB
(National Benevolent Assoc. Project)
5.50%, 01/07/00 1,550 1,550
Colorado Health Facilities Authority RB
(North Colorado Medical Center Project)
5.40%, 01/07/00 9,300 9,300
Colorado Student Obligation Bond
Authority Student Loan RB (Colorado
University) Series 1990A
5.35%, 01/07/00 14,400 14,400
Colorado Student Obligation Bond
Authority Student Loan RB (Colorado
University) Series 1989A
5.35%, 01/07/00 29,400 29,400
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1999A-2
5.35%, 01/07/00 11,000 11,000
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1999A-3
5.35%, 01/07/00 15,000 15,000
Denver, Colorado City & County Airport
System RB Series 1992D
5.45%, 01/07/00 49,400 49,400
Denver, Colorado City & County Airport
System RB Series 1992F
5.45%, 01/07/00 16,000 16,000
Denver, Colorado City & County Airport
System RB Series 1992G
5.45%, 01/07/00 20,000 20,000
El Paso County, Colorado RB (Colorado
Springs World Arena)
5.50%, 01/07/00 2,750 2,750
Lowry, Colorado Economic Redevelopment
Authority Revenue Bonds Series 1998A
5.35%, 01/07/00 8,900 8,900
Par Value
------- ----------
Pueblo County, Colorado IDRB (Kaiser
Aerospace & Electric)
5.55%, 01/07/00 $ 5,100 $ 5,100
Smith Creek, Colorado Metropolitan
District RB Series 1997
5.00%, 01/07/00 2,250 2,250
Wheatridge County, Colorado IDRB
(Leaf Inc. Project)
5.00%, 01/07/00 7,000 7,000
----------
213,460
----------
DELAWARE -- 0.0%
Sussex County, Delaware RB (Baywood
LLC Project) Series 1997A
5.75%, 01/05/00 2,400 2,400
----------
DISTRICT OF COLUMBIA -- 0.0%
District of Columbia RB (Arnold & Porter
Project)
5.65%, 01/06/00 4,000 4,000
----------
FLORIDA -- 2.3%
Arcadia, Florida Hospital RB (Desoto
Memorial Hospital Project)
5.45%, 01/07/00 1,920 1,920
Dade County, Florida IDA RB (June
Leasing Corp. Project) Series 1995
5.15%, 01/06/00 1,085 1,085
Dade County, Florida IDA RB
(Michael-Ann Russell Jewish Community
Center Project) Series 1997
5.55%, 01/06/00 100 100
Dade County, Florida Water & Sewer
System Series 1994
4.75%, 01/07/00 8,440 8,440
Florida Capital Financing Authority RB
(Capital Project Loan Program Project)
Series 1997A
5.45%, 01/07/00 22,500 22,500
Florida Ocean Highway & Port Authority
RB Series 1990
5.50%, 01/07/00 2,300 2,300
Florida State Board of Education Capital
Outlay (Putters) Series 137
5.52%, 01/06/00 6,800 6,800
Florida State Finance Authority (Florida
Hospital Association - Capital Projects
Loan Program) Series 1998A
4.90%, 01/07/00 4,000 4,000
26
<PAGE>
Par Value
------- ----------
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985B
5.20%, 01/07/00 $ 2,055 $ 2,055
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985C
5.20%, 01/07/00 2,255 2,255
Highlands County, Florida Health Facilities
Authority RB (Adventist Health Systems
Project) Series 1997A
5.40%, 01/07/00 4,700 4,700
Hillsborough County, Florida M/F Housing
RB (Brandon Crossing)
4.95%, 01/07/00 100 100
Jacksonville, Flordia Economic
Development Community RB (Bolles
School Project) Series 1999A
5.00%, 01/06/00 3,485 3,485
Jacksonville, Florida Health Facilities
Authority RB (River Garden Project)
Series 1994
5.00%, 01/06/00 1,040 1,040
Jacksonville, Florida Industrial
Development Revenue Refunding Bonds
(Pavilion Associates Project)
4.90%, 01/07/00 900 900
Lakeland, Florida Educational Facilities RB
(Florida Southern College Project)
Series 1999
5.50%, 01/07/00 17,000 17,000
Lake Shore, Florida Hospital Authority
Health Facilities RB (Lakeshore Hospital
Project) Series 1991
3.95%, 01/07/00 3,600 3,600
Manatee County, Florida HFA M/F Housing
RB (Hampton McGuire Project)
Series 1989A
5.00%, 01/06/00 85 85
Miami-Dade County, Florida IDA IDRB
(Arctic Partners Project)
5.70%, 01/07/00 700 700
Miami-Dade County, Florida IDRB
(Airbus Service Co. Project) Series 1998A
5.15%, 01/07/00 1,200 1,200
Miami, Florida HFA RB (Jewish Home for
the Aged, Inc. Project) Series 1996
5.55%, 01/07/00 7,250 7,250
Par Value
------- ----------
Nassua County, Florida Pollution Control
RB (Rayonier Project) Series 1999
4.50%, 01/07/00 $ 1,100 $ 1,100
Orange County, Florida IDA (Center For
Drug Free Living Project)
5.00%, 01/06/00 10,300 10,300
Palm Beach County, Florida HDA M/F
Revenue Refunding Bonds (Spinnaker
Landing Project)
5.50%, 01/07/00 3,145 3,145
Palm Beach County, Florida IDRB (Palm
Beach Day Care School Project)
Series 1999
5.55%, 01/05/00 4,000 4,000
Palm Beach County, Florida RB (Norton
Gallery Art School Project) Series 1995
5.30%, 01/05/00 200 200
Pasco County, Florida School Board COP
5.40%, 01/07/00 50,370 50,370
Pinellas County, Florida Independent
Council RB (Operation Par, Inc. Project)
Series 1999
5.05%, 01/06/00 6,815 6,815
Polk County, Florida IDA RB (Pavermodule
Inc. Project)
5.65%, 01/07/00 1,000 1,000
Polk County, Florida IDA RB (Young
Florida Project) Series 1996
5.10%, 01/07/00 290 290
Sarasota County, Florida RB (Sarasota
County Family YMCA Project)
5.00%, 01/05/00 3,600 3,600
Suwannee County, Florida Health
Facilities Authority RB (Shands Teaching
Hospital Clinic Project) Series 1996
5.25%, 01/07/00 4,500 4,500
Tallahassee & Leon County, Florida Civic
Center Authority Capital Improvement
RB Series 1998A
5.55%, 01/07/00 2,000 2,000
Tampa, Florida Health Care Facilities RB
(Lifelink Foundation Inc., Project)
5.55%, 01/07/00 5,500 5,500
Tampa, Florida Occupational License Tax
RB Series 1996A
5.25%, 01/07/00 9,340 9,340
----------
193,675
----------
27
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
GEORGIA -- 3.6%
Athens-Clarke, Jackson & Morgan County,
Georgia IDRB (Mayfield Dairy Farms
Inc. Project)
5.60%, 01/07/00 $ 7,350 $ 7,350
Atlanta, Georgia Urban Residential
Finance Authority M/F Housing RB
(Brentwood Creek Apartments Project)
5.65%, 01/05/00 4,720 4,720
Atlanta, Georgia Urban Residential
Finance Authority M/F Housing RB
(Brentwood Meadows Apartments
Project)
5.65%, 01/05/00 3,065 3,065
Atlanta, Georgia Urban Residential
Finance Authority M/F Housing RB
(Brentwood Village Apartments Project)
5.65%, 01/05/00 6,195 6,195
Bartow County, Georgia IDRB (Bartow
Paving Co. Project)
5.60%, 01/07/00 2,800 2,800
Bartow County, Georgia IDRB (Matthew
Contracting Project)
5.50%, 01/07/00 4,000 4,000
Cartersville, Georgia Development
Authority IDRB (Cartersville Facilities
Project)
5.50%, 01/06/00 2,800 2,800
Cherokee County, Georgia IDRB
(Universal Alloy)
5.60%, 01/07/00 4,300 4,300
Clayton County, Georgia IDRB (Wilson
Holdings Project)
5.65%, 01/07/00 1,400 1,400
Cobb County, Georgia HFA M/F Housing
RB (Walton Green Project)
5.60%, 01/07/00 6,300 6,300
Cobb County, Georgia HFA M/F Housing
RB (Williamstown Apartment Project)
5.60%, 01/07/00 2,200 2,200
Crisp County, Georgia Solid Waste
Management Authority RB
5.80%, 01/07/00 20,000 20,000
Dekalb County, Georgia Development
Authority IDRB (Arbor Montessori
School Project)
5.55%, 01/07/00 1,100 1,100
Par Value
------- ----------
Dekalb County, Georgia Development
Authority IDRB (Siemens Energy, Inc.
Project)
5.55%, 01/07/00 $ 3,750 $ 3,750
Dekalb County, Georgia Development
Authority IDRB (Truman Properties Ltd.
Liability Corp. Project)
5.60%, 01/07/00 2,700 2,700
Dekalb County, Georgia Development
Authority IDRB (Vimco Project)
5.65%, 01/06/00 1,625 1,625
Dekalb County, Georgia HFA M/F Housing
RB (Wood Hills Apartment Project)
5.40%, 01/07/00 7,250 7,250
Douglas County, Georgia IDA RB (Blue
Circle Project)
5.50%, 01/07/00 3,800 3,800
Douglas County, Georgia IDA Revenue
Refunding Bonds (Mima Inc. Project)
5.00%, 01/07/00 4,300 4,300
Fayette County, Georgia IDRB (Norman
W. Paschell Co. Project)
5.70%, 01/07/00 1,100 1,100
Fulton County, Georgia Development
Authority RB (Atlanta International
School Project)
5.55%, 01/07/00 3,000 3,000
Fulton County, Georgia Development
Authority RB (Woodruff Arts Center
Project)
5.50%, 01/07/00 10,000 10,000
Fulton County, Georgia Residential Care
Facilities Revenue Refunding Bonds
(Lenbrook Square Foundation)
4.70%, 01/01/00 8,800 8,800
Gwinnett County, Georgia HFA M/F
Housing RB
5.50%, 01/07/00 5,000 5,000
Hapeville, Georgia IDA (Hapeville Hotel
Ltd. Project)
5.00%, 01/01/00 1,600 1,600
Hart County, Georgia Industrial Building
Authority IDRB (Awh Corp. Project)
5.60%, 01/07/00 6,000 6,000
Hart County, Georgia Industrial Building
Authority IDRB (Dundee Mills Project)
5.65%, 01/07/00 2,865 2,865
28
<PAGE>
Par Value
------- ----------
Jefferson County, Georgia Development
Authority IDRB (Grove River Mills
Project) Series 1997
5.60%, 01/07/00 $ 3,200 $ 3,200
Lafayette, Georgia Development Authority
RB (Dixie Group Project)
5.65%, 01/07/00 4,000 4,000
Laurens County, Georgia Development
Authority Solid Waste Disposal RB
(Southeast Paper Manufacturing Co.
Project)
5.60%, 01/07/00 51,000 51,000
Lowndes County, Georgia Development
Authority M/F Housing RB (FMPH
Valdosta, LTD. Partnership Project)
5.65%, 01/05/00 5,045 5,045
Macon-Bibb County, Georgia Hospital
Authority RB (The Medical Center of
Central Georgia Project) Series 1998
5.55%, 01/07/00 4,000 4,000
Richmond County, Georgia Development
Authority Solid Waste Disposal RB
(South Evergreen Nylon Recycling
Project) Series 1999
5.30%, 01/05/00 5,900 5,900
Richmond County, Georgia IDA RB (BOK
Group Project)
5.50%, 01/07/00 5,000 5,000
Roswell, Georgia HFA M/F Housing RB
(Gables Realty Wood Crossing Project)
5.50%, 01/07/00 11,650 11,650
Savannah, Georgia Economic Development
Authority RB (Georgia Kaolin Inc.)
5.50%, 01/07/00 11,000 11,000
Savannah, Georgia Economic Development
Authority RB (Home Depot Project)
Series 1995B
5.60%, 01/07/00 5,000 5,000
Savannah, Georgia HFA M/F Housing RB
(Chatham Gardens Project) Series 1997
5.65%, 01/05/00 2,995 2,995
Smyrna, Georgia HFA M/F Housing RB
(Walton Park Phase 2 Project)
5.60%, 01/07/00 13,100 13,100
Smyrna, Georgia HFA M/F Housing RB
(Walton Park Project)
5.60%, 01/07/00 8,000 8,000
Par Value
------- ----------
Sugar Hill, Georgia HFA M/F Housing RB
(Level Creek Apartments Project)
5.70%, 01/07/00 $ 12,790 $ 12,790
Summerville, Georgia Development
Authority RB (Image Industry Project)
Series 1997
5.50%, 01/06/00 9,000 9,000
Thomaston-Upson County, Georgia IDA
IDRB (Southern Mills Project)
Series 1999
5.65%, 01/05/00 4,940 4,940
Thomasville, Georgia Payroll Development
Authority (Brit Corp. Project)
5.75%, 01/06/00 2,900 2,900
Webster County, Georgia IDA IDRB
(Tolleson Lumber Co., Inc. Project)
5.60%, 01/06/00 8,000 8,000
Winder-Barrow, Georgia Industrial
Building Authority IDRB (The
Concrete Co.)
5.70%, 01/07/00 4,430 4,430
Worth County, Georgia IDA Revenue
Refunding Bonds (Seabrook Project)
Series 1996B
5.65%, 01/07/00 1,400 1,400
----------
301,370
----------
HAWAII -- 0.3%
Hawaii Department of Budget & Finance
Special Purpose Mortgage RB (Adventist
Health System West)
5.30%, 01/07/00 7,600 7,600
Hawaii Student Loan RB (Secondary
Market Services Corp.) Series 1995-II
5.65%, 01/07/00 8,100 8,100
Honolulu, Hawaii City & County M/F
Housing RB (Iolani Regents Project)
Series 1990A
5.05%, 01/07/00 8,950 8,950
----------
24,650
----------
IDAHO -- 0.3%
Custer County, Idaho IDRB Solid Waste
Disposal (Hecla Mining Co. Project)
5.55%, 01/07/00 4,500 4,500
29
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Idaho HFA Housing RB (Assisted Living
Concepts Project)
5.55%, 01/07/00 $ 845 $ 845
Idaho Student Loan RB Series 1997A
5.50%, 01/07/00 16,800 16,800
----------
22,145
----------
ILLINOIS -- 6.8%
Aurora, Illinois M/F Housing RB
(Apartments at Fox VY-A)
5.35%, 01/07/00 9,445 9,445
Aurora, Kane, & Dupage Counties, Illinois
IDRB (North American Plastics Corp.
Project)
5.70%, 01/07/00 5,400 5,400
Bartlett, Illinois M/F Housing RB (Bartlett
Square Apartments) Series 1995A
5.45%, 01/07/00 3,725 3,725
Batavia, Illinois Development RB
(American Industrial Technologies)
5.70%, 01/07/00 2,200 2,200
Carol Stream, Illinois M/F Housing
Revenue Refunding Bonds (St. Charles
Square Project)
5.65%, 01/07/00 4,415 4,415
Centralia, Illinois IDA RB (Consolidated
Foods Corp. & Hollywood Brands, Inc.
Project)
5.50%, 01/07/00 4,500 4,500
Chicago, Illinois IDRB (Morse Automotive
Project) Series 1995
5.50%, 01/07/00 2,200 2,200
Chicago, Illinois Midway Airport Special
Facility RB (American Trans Air Project)
5.25%, 01/05/00 5,000 5,000
Chicago, Illinois O'Hare International
Airport RB (ACES General Airport
Second Lien) Series B1
5.60%, 01/07/00 15,700 15,700
Chicago, Illinois O'Hare International
Airport RB (ACES General Airport
Second Lien) Series B2
5.60%, 01/07/00 14,100 14,100
Chicago, Illinois O'Hare International
Airport Special Facility RB
5.50%, 01/07/00 34,400 34,400
Chicago, Illinois Water Second Lien RB
4.40%, 01/05/00 25,000 25,000
Par Value
------- ----------
Cook County, Illinois RB (Catholic
Charities Project) Series A-1
5.55%, 01/07/00 $ 2,000 $ 2,000
Dupage County, Illinois RB (Benedictine
University Building Project)
5.65%, 01/06/00 16,000 16,000
East Dundee, Kane & Cook Counties,
Illinois IDRB (Otto Engine Project)
5.67%, 01/07/00 2,375 2,375
Elmhurst, Illinois IDRB (ELM Machining
Corp. Project)
5.60%, 01/07/00 3,080 3,080
Glendale Heights, Illinois IDRB (York
Corrugated Container Project)
5.55%, 01/06/00 1,500 1,500
Hampshire, Illinois IDRB (Poli-Film
America Project) Series 1998A
5.55%, 01/07/00 6,700 6,700
Illinois Development Finance Authority
(Anatol Enterprises)
5.60%, 01/07/00 4,000 4,000
Illinois Development Finance Authority
(Chicago Academy of Science Project)
Series 1998
5.55%, 01/07/00 5,700 5,700
Illinois Development Finance Authority
(Chicago Horticultural Society Project)
5.55%, 01/05/00 20,000 20,000
Illinois Development Finance Authority
(Palos Common Hospital Project)
Series 1998
5.65%, 01/07/00 10,000 10,000
Illinois Development Finance Authority
(Roll Service Inc. Project)
5.65%, 01/05/00 2,230 2,230
Illinois Development Finance Authority
(Wheaton Academy Project)
5.55%, 01/07/00 8,000 8,000
Illinois Development Finance Authority
IDRB (Arc Tronics Inc. Project)
3.95%, 01/07/00 2,800 2,800
Illinois Development Finance Authority
IDRB (Camcraft Inc. Project)
5.75%, 01/07/00 2,800 2,800
Illinois Development Finance Authority
IDRB (Catholic Charities)
5.55%, 01/07/00 10,480 10,480
30
<PAGE>
Par Value
------- ----------
Illinois Development Finance Authority
IDRB (Chicago Corrugated Box
Company) Series 6
5.60%, 01/07/00 $ 950 $ 950
Illinois Development Finance Authority
IDRB (Knead Dough Baking Co.)
5.50%, 01/07/00 6,350 6,350
Illinois Development Finance Authority
IDRB (MCL Inc. Project)
5.60%, 01/07/00 1,945 1,945
Illinois Development Finance Authority
IDRB (Molding Project)
5.40%, 01/07/00 2,250 2,250
Illinois Development Finance Authority
IDRB (Perkin Paperboard Co. LP)
Series 1994
5.60%, 01/07/00 5,500 5,500
Illinois Development Finance Authority
IDRB (Presbyterian Home Lake)
Series 1996A
4.90%, 01/06/00 45,000 45,000
Illinois Development Finance Authority
IDRB (Radiological Society Project)
Series 1997
5.35%, 01/07/00 4,900 4,900
Illinois Development Finance Authority
IDRB (River Graphics Corp. Project)
Series 1996
5.60%, 01/07/00 3,200 3,200
Illinois Development Finance Authority
IDRB (SMF Inc. Project) Series A
5.70%, 01/07/00 2,080 2,080
Illinois Development Finance Authority
RB (Catholic Charities Housing Project)
Series 1993A
5.55%, 01/07/00 16,060 16,060
Illinois Development Finance Authority
RB (Chicago Academy of Science
Project)
5.55%, 01/07/00 4,715 4,715
Illinois Development Finance Authority
RB (Chicago Symphony Orchestra
Project)
5.40%, 01/07/00 26,900 26,900
Illinois Development Finance Authority
RB (Cloverhill Pastry Project)
5.75%, 01/07/00 5,100 5,100
Illinois Development Finance Authority
RB (Korex Corp. Project)
5.60%, 01/07/00 4,000 4,000
Par Value
------- ----------
Illinois Development Finance Authority
RB (Lake Forest Academy Project)
5.55%, 01/07/00 $ 2,000 $ 2,000
Illinois Development Finance Authority
RB (St. Ignatius College Prep Project)
5.55%, 01/07/00 2,200 2,200
Illinois Development Finance Authority
RB (Variable Rest Haven Illiana
Christian)
5.55%, 01/07/00 9,895 9,895
Illinois Development Finance Authority
RB (Village Oak Park Residence)
5.65%, 01/07/00 2,135 2,135
Illinois Development Finance Authority
Residential Rental RB (F.C. Harris
Pavillion Project) Series 1994
5.60%, 01/07/00 27,510 27,510
Illinois Development Finance Authority
Residential Rental RB (River Oak
Project)
5.50%, 01/07/00 32,000 32,000
Illinois Development Finance Authority
Revenue Refunding Bonds (Francis W.
Parker Project)
5.40%, 01/07/00 2,500 2,500
Illinois Development Finance Authority
Revenue Refunding Bonds (Rich
Products Corp. Project)
5.65%, 01/07/00 1,525 1,525
Illinois Educational Facility Authority RB
(Chicago Historical Society)
5.35%, 01/07/00 8,100 8,100
Illinois Educational Facility Authority RB
(Chicago Zoological Society Brookfield
Zoo) Series B
5.55%, 01/07/00 2,800 2,800
Illinois Educational Facility Authority RB
(National Loius University) Series 1999B
5.35%, 01/07/00 18,000 18,000
Illinois Health Facility Authority RB
(Bensenville Home Society Project)
Series 1989A
5.20%, 01/07/00 2,325 2,325
Illinois Health Facility Authority RB
(Ingalls Memorial Hospital) Series 1985C
5.50%, 01/07/00 1,100 1,100
31
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Illinois Health Facility Authority RB
(Washington & Jane Smith Home)
Series 1991
5.40%, 01/07/00 $ 2,800 $ 2,800
Illinois State Toll Highway Authority Toll
Highway Priority Revenue Refunding
Bonds Series 1993B
5.15%, 01/07/00 19,000 19,000
Illinois Student Assistance Commission
Student Loan RB Series 1996A
5.75%, 01/07/00 8,400 8,400
Lombard, Illinois Industrial Development
Revenue Refunding Bonds / (B & H
Partnership Project)
5.35%, 01/07/00 1,850 1,850
Melrose Park, Illinois IDRB (Ninos
Enterprises, Inc. Project)
4.00%, 01/06/00 3,000 3,000
New Lenox, Illinois IDRB (Panduit Corp.
Project)
5.50%, 01/07/00 4,400 4,400
Oak Forest, Illinois Development RB
(Homewood Pool-South Suburban
Mayors & Managers Association Project)
5.35%, 01/07/00 24,900 24,900
Palatine, Illinois Special Facilities Limited
Obligation RB (Little City Community
Development Project)
5.55%, 01/07/00 4,000 4,000
Richton Park, Illinois IDRB (Avatar Corp.
Project)
5.60%, 01/07/00 1,900 1,900
Rockford, Illinois IDRB (Industrial
Welding Supply, Inc. Project)
5.60%, 01/07/00 2,000 2,000
Rockford, Illinois IDRB (Ring Can Corp.
Project)
5.65%, 01/07/00 2,700 2,700
Tinley Park, Illinois IDA RB (Beverly
Manufacturing Co. Project) Series 1997A
5.70%, 01/06/00 2,555 2,555
Tremont, Illinois IDRB (Hanna Steel
Project)
4.76%, 01/07/00 9,500 9,500
Upper Illinois River Valley Development
Authority Bonds (Exolon Esk Co. Project)
Series A
5.70%, 01/07/00 4,405 4,405
Par Value
------- ----------
Village of Huntley, McHenry Kane County,
Illinois Special Civic Area # 9 Special Tax
Boards Series 1998B
5.55%, 01/06/00 $ 8,422 $ 8,422
Woodstock, Illinois M/F Housing RB
(Prairie Trail) Series 1996A
5.70%, 01/07/00 3,425 3,425
Woodstock, Illinois M/F Housing RB
(Prairie View Ltd.)
5.70%, 01/07/00 2,935 2,935
Yorkville, Illinois IDRB (F.E. Wheaton &
Co. Inc. Project) Series 1996
5.60%, 01/07/00 1,500 1,500
----------
572,482
----------
INDIANA -- 0.9%
Crawfordsville, Indiana IDRB (National
Service Industries, Inc. Project)
5.50%, 01/07/00 4,000 4,000
Gary, Indiana Economic Development
Authority Revenue Refunding Bonds
(Tinplate Partnership Project )
Series 1997A
5.70%, 01/07/00 4,500 4,500
Hammond, Indiana Economic
Development RB (Lear Seating Corp.
Project) Series 1994
4.10%, 01/07/00 9,200 9,200
Indiana Development Finance Authority
IDRB (Cives Corp. Project) Series 1998
5.60%, 01/07/00 2,550 2,550
Indiana Secondary Market Educational
Loans Inc. Student Loan RB Series 1988B
5.65%, 01/07/00 27,000 27,000
Indiana State Develpopement Finance
Authority IDRB (Big Sky Park Project)
5.75%, 01/07/00 6,000 6,000
Indiana State Development Finance
Authority RB (Mid America Energy
Resources Inc. Project)
5.35%, 01/07/00 8,800 8,800
Indianapolis, Indiana Resource Recovery
Bonds (Ogden Martin Systems Inc.
Project) Series 1987
5.10%, 01/01/00 6,400 6,400
32
<PAGE>
Par Value
------- ----------
St. Joseph College, Indiana Economic
Development RB Series 1997B
5.65%, 01/05/00 $ 3,430 $ 3,430
----------
71,880
----------
IOWA -- 0.5%
Iowa Finance Authority Solid Waste
Disposal RB (Cedar River Paper Co.
Project) Series 1994A
5.20%, 01/01/00 9,000 9,000
Iowa Finance Authority Solid Waste
Disposal RB (Cedar River Paper Co.
Project) Series 1995A
5.20%, 01/01/00 3,200 3,200
Iowa Student Loan Liquidity Corp. Student
Loan RB Series 1988B
5.25%, 01/07/00 28,200 28,200
Saint Joseph County, Iowa Economical
Development Authority (Western Manor)
5.65%, 01/07/00 2,130 2,130
----------
42,530
----------
KANSAS -- 0.4%
Kansas State Development Finance
Authority M/F Housing RB (Bluffs
Olathe Apartments) Series 1998X
5.80%, 01/07/00 9,500 9,500
Olathe, Kansas IDRB (Garmin
International Inc. Project) Series 1995
5.20%, 01/07/00 1,700 1,700
Wichita, Kansas Airport Facilities Revenue
Refunding Bonds (Cessna Service Center
Project)
5.60%, 01/07/00 4,985 4,985
Wichita, Kansas Airport Facilities Revenue
Refunding Bonds (Flight Safety
International, Inc. Project)
5.60%, 01/07/00 16,170 16,170
----------
32,355
----------
KENTUCKY -- 1.4%
Elizabethtown, Kentucky IDRB (Aztec
Project)
5.50%, 01/07/00 3,000 3,000
Henderson County, Kentucky Solid Waste
Disposal RB (Hudson Foods, Inc. Project)
5.75%, 01/07/00 14,300 14,300
Par Value
------- ----------
Jefferson County, Kentucky Sports
Stadium RB (University of Louisville
Athletic Department)
5.50%, 01/07/00 $ 7,900 $ 7,900
Kentucky Higher Education Student Loan
Corp. Insured Student Loan RB
Series 1991E
5.60%, 01/07/00 42,900 42,900
Kentucky Higher Education Student Loan
Corp. Insured Student Loan RB
Series 1996A
5.60%, 01/07/00 18,800 18,800
Lebanon, Kentucky IDRB (Wallace
Computer Services, Inc.)
5.50%, 01/07/00 5,000 5,000
Maysville, Kentucky Industrial Building
RB (Green Tokai Building)
5.60%, 01/07/00 5,740 5,740
Murray, Kentucky IDA Revenue Refunding
Bonds (Dean Foods Co. Project)
5.60%, 01/07/00 6,000 6,000
Owensboro, Kentucky Limited Obligation
RB (Dart Polymers, Inc. Project)
Series 1985A
4.05%, 01/07/00 1,900 1,900
Richmond, Kentucky IDRB
(Mikron Project)
5.25%, 01/07/00 9,500 9,500
Wilson County, Kentucky IDB RB
(Perma Pipe Project)
5.65%, 01/07/00 3,150 3,150
----------
118,190
----------
LOUISIANA -- 0.7%
Calcasieu Parish, Lousiana IDB
(Weingarten Realty Project)
5.60%, 01/07/00 1,990 1,990
Lafayette Parish, Louisiana IDRB
(Westwood Village Project)
5.60%, 01/07/00 3,535 3,535
Lake Charles, Louisiana Harbor
Improvement RB (Port Improvement
Global Industries Project)
5.50%, 01/07/00 15,000 15,000
New Orleans, Louisiana Aviation Board
RB Series 1993B
5.40%, 01/07/00 41,935 41,935
----------
62,460
----------
33
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
MARYLAND -- 0.3%
Howard County, Maryland M/F Housing
RB (Avalon Meadows Project)
5.50%, 01/07/00 $ 4,900 $ 4,900
Maryland State Economic Development
Corp. IDRB (Dixon Valve Project)
5.55%, 01/07/00 4,000 4,000
Maryland State Health & Higher Education
Facility Authority Pooled RB (Kennedy
Krieger Project) Series 1993D
3.30%, 01/07/00 2,000 2,000
Montgomery County, Maryland Housing
Opportunity Commission Housing RB
(Draper Lane Project) Series 1991I
5.60%, 01/07/00 16,600 16,600
----------
27,500
----------
MASSACHUSETTS -- 0.0%
Massachussets Industrial Finance
Authority (Arkansas Electronic Products
Corp. Project)
5.55%, 01/07/00 3,600 3,600
----------
MICHIGAN -- 1.0%
Grand Rapids, Michigan Economic
Development Corp. RB (Amway Hotel
Corp. Project) Series 1991A
4.25%, 01/07/00 9,835 9,835
Michigan State Building Authority Special
Sinking Fund Revenue Refunding Bond
5.56%, 01/06/00 3,260 3,260
Michigan State Hospital Finance Authority
RB (Martin Luther Memorial Home Inc.
Project)
5.55%, 01/07/00 8,380 8,380
Michigan State HDA M/F Housing RB
(Oakbrook Village Project) Series 1999A
5.70%, 01/06/00 4,250 4,250
Michigan State Strategic Fund Ltd.
Obligation RB (Advance Plastics Corp.)
5.65%, 01/07/00 1,730 1,730
Michigan State Strategic Fund Ltd.
Obligation RB (EPI Printers Inc. Project)
5.65%, 01/07/00 3,600 3,600
Michigan State Strategic Fund Ltd.
Obligation RB (John Widdicomb Co. Project)
5.70%, 01/07/00 2,170 2,170
Par Value
------- ----------
Michigan State Strategic Fund Ltd.
Obligation RB (Manufacturer's Project)
Series 1991
5.70%, 01/07/00 $ 1,465 $ 1,465
Michigan State Strategic Fund Ltd.
Obligation RB (Mechanics Uniform
Rental Project)
5.65%, 01/07/00 1,000 1,000
Michigan State Strategic Fund Ltd.
Obligation RB Series 1998
5.65%, 01/07/00 4,435 4,435
Michigan State Strategic Fund Ltd.
Obligation RB Series 1998B
5.65%, 01/07/00 1,895 1,895
Michigan State Strategic Fund Ltd.
Obligation RB (United Machining
Project) Series 1998
5.65%, 01/07/00 6,000 6,000
Oakland County, Michigan Economic
Development Corp. (Husky Envelope
Products Inc. Project)
5.55%, 01/07/00 2,000 2,000
Wayne Charter County, Michigan Airport
RB (Detroit Metropolitan County
Project) Series 1996A
5.50%, 01/07/00 6,100 6,100
Wayne Charter County, Michigan Airport
RB (Detroit Metropolitan County Project)
Series 1996B
5.25%, 01/07/00 29,910 29,910
----------
86,030
----------
MINNESOTA -- 0.4%
Bloomington, Minnesota Port Authority
Special Tax Revenue Refunding Bond
(Mall of America Project) Series 1999B
5.45%, 01/06/00 5,000 5,000
Cohasset, Minnesota Revenue Refunding
Bonds (Minnesota Power & Light Co.
Project) Series 1997B
4.70%, 01/03/00 4,200 4,200
Hennepin County, Minnesota Unlimited
GO Series 1995C
4.00%, 01/07/00 1,000 1,000
Hennepin County, Minnesota Unlimited
GO Series 1996C
4.15%, 01/07/00 4,350 4,350
34
<PAGE>
Par Value
------- ----------
Minnesota Agriculture & Economic
Development RB (Evangelical Lutheran
Project)
4.00%, 01/07/00 $ 7,500 $ 7,500
Minnesota State Higher Education
Facilities Authority RB (University of St.
Thomas Project)
5.35%, 01/07/00 7,500 7,500
----------
29,550
----------
MISSISSIPPI -- 0.2%
Mississippi Business Finance Authority
IDRB (Clopay Building Products Co.
Project) Series 1999
5.65%, 01/05/00 3,300 3,300
Mississippi Business Financial Corp. IDRB
(Electric Mills Wood Project)
4.90%, 01/07/00 5,000 5,000
Mississippi Business Financial Corp. IDRB
(Omega Motion Project) Series 1996
5.60%, 01/07/00 6,500 6,500
----------
14,800
----------
MISSOURI -- 0.7%
Missouri Higher Education Loan Authority
Student Loan RB Series 1988A
5.65%, 01/07/00 23,600 23,600
Missouri Higher Education Loan Authority
Student Loan RB Series 1990A
5.65%, 01/07/00 8,200 8,200
Missouri State Development Finance Board
IDRB (H.R. Williams Mill Supply Project)
Series 1995
5.60%, 01/07/00 3,100 3,100
Missouri State Development Finance Board
IDRB (Milbank Manufacturing Co. Project)
5.35%, 01/07/00 3,000 3,000
Missouri State Health & Educational
Facilities Authority Health Facilities RB
(National Benevolent Association Project)
5.40%, 01/06/00 2,860 2,860
Missouri State Health & Educational
Facilities Authority Health Facilities RB
(St. Francis Medical Center) Series 1996A
4.70%, 01/01/00 7,060 7,060
St. Clair, Missouri IDA RB (Private
Dynaquip)
5.50%, 01/07/00 1,700 1,700
Par Value
------- ----------
St. Louis, Missouri IDA RB (Kessler
Container Project)
5.50%, 01/06/00 $ 2,500 $ 2,500
Washington, Missouri IDA RB (Pauwels
Transformer Project)
5.40%, 01/07/00 3,600 3,600
----------
55,620
----------
MONTANA -- 0.2%
Clay County, Montana IDRB (KC Salad Real
Estate Project)
5.60%, 01/06/00 2,000 2,000
Montana State Health Facility Authority RB
(Health Care Pooled Loan Program
Project) Series 1985A
5.40%, 01/07/00 11,695 11,695
-----------
13,695
-----------
NEBRASKA -- 0.2%
Dodge County, Nebraska IDRB (Oilgear
Project)
5.70%, 01/07/00 2,230 2,230
Nebraska Higher Education Loan Program
RB (Nebhelp Inc. Student Loan Project)
Series 1988C
5.70%, 01/05/00 4,150 4,150
Stanton County, Nebraska IDRB (Nucor
Corp. Project) Series 1996
5.80%, 01/07/00 10,500 10,500
----------
16,880
----------
NEVADA -- 0.3%
Clark County, Nevada Airport
Improvement RB Series 1993A
5.20%, 01/07/00 6,095 6,095
Clark County, Nevada Airport
Improvement RB (System Subordinate
Lien) Series 1995A2
5.60%, 01/07/00 1,300 1,300
Clark County, Nevada Economic
Development RB (University of Nevada
Las Vegas Project)
5.60%, 01/06/00 1,545 1,545
Nevada Housing Division M/F Housing
RB (Apache Pines Apartments Project)
Series 1999A
5.65%, 01/06/00 7,415 7,415
35
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Nevada Housing Division M/F Housing
RB Series 1989A
5.55%, 01/07/00 $ 5,600 $ 5,600
----------
21,955
----------
NEW HAMPSHIRE -- 0.1%
New Hampshire State HFA M/F Housing
RB (Fairways Project-1)
5.60%, 01/07/00 7,000 7,000
----------
NEW JERSEY -- 0.6%
Camden County, New Jersey Improvement
Authority RB (Harvest Village Project)
Series 1999A
4.85%, 01/01/00 2,400 2,400
Essex County, New Jersey Public
Improvement Authority RB (County
Asset Sale Project) Series 1995
5.55%, 01/07/00 1,000 1,000
New Jersey Economic Development
Authority Natural Gas Facilities RB
(New Jersey Natural Gas Co.)
5.20%, 01/07/00 3,100 3,100
New Jersey Economic Development
Authority Natural Gas Facilities RB (New
Jersey Natural Gas Co.) Series 1998B
5.70%, 01/07/00 1,500 1,500
New Jersey Economic Development
Authority Natural Gas Facilities RB (New
Jersey Natural Gas Co.) Series 1998C
5.70%, 01/07/00 1,300 1,300
New Jersey Economic Development
Authority RB (Job Haines Home Project)
5.35%, 01/07/00 1,300 1,300
New Jersey Economic Development
Authority RB (New Jersey Foreign Trade
Venture Project) Series 1998
4.95%, 01/01/00 1,300 1,300
New Jersey Economic Development
Authority RB (Public Service Electric &
Gas Co. Project) Series 1995A
5.10%, 01/07/00 8,200 8,200
New Jersey Economic Development
Authority Revenue Refunding Bonds
(Airis Newark LLC Project)
5.50%, 01/07/00 7,100 7,100
New Jersey Economic Development
Authority Thermal Energy Facilities RB
(Thermal Energy Ltd. Partnership I
Project) Series 1997
5.20%, 01/07/00 150 150
Par Value
------- ----------
New Jersey Health Care Facility Financing
Authority Revenue Refunding Bonds
(Christian Health Project) Series 1998B
6.85%, 01/07/00 $ 500 $ 500
New Jersey Sports & Exposition Authority
RB Series 1992C
5.40%, 01/07/00 4,125 4,125
New Jersey State Turnpike Authority RB
Series 1991D
5.00%, 01/07/00 7,350 7,350
Salem County, New Jersey Pollution Control
Financing Authority RB (Public Service
Electric & Gas Project) Series 1997
5.50%, 01/07/00 6,600 6,600
Union City, New Jersey Industrial Pollution
Control Financing Authority RB
(Exxon Project)
4.10%, 01/01/00 2,000 2,000
----------
47,925
----------
NEW MEXICO -- 0.9%
Albuquerque, New Mexico Airport RB
(Subordinated Lien) Series 1996A
5.25%, 01/07/00 19,400 19,400
Albuquerque, New Mexico IDRB (Karsten
Project) Series 1997A
5.65%, 01/05/00 1,470 1,470
Albuquerque, New Mexico IDRB (Karsten
Project) Series 1997B
5.65%, 01/05/00 560 560
Belen, New Mexico IDRB (Solo Cup, Inc.
Project)
5.60%, 01/07/00 3,250 3,250
Farmington, New Mexico Pollution Control
Revenue Refunding Bonds (Arizona
Public Service Company) Series 1994A
4.70%, 01/01/00 3,000 3,000
New Mexico State Highway Commission
RB (Subordinate Lein)
5.35%, 01/07/00 42,540 42,540
Santa Fe, New Mexico Gross Receipts Tax
RB (Wastewater Systems) Series 1997B
5.50%, 01/05/00 7,300 7,300
----------
77,520
----------
36
<PAGE>
Par Value
------- ----------
NEW YORK -- 3.7%
Albany-Dougherty County, New York
Hospital Authority RB (Phoebe Putney
Memorial Hospital Project) Series 1996
5.60%, 01/07/00 $11,000 $ 11,000
Dutchess County, New York IDA Civic
Facilities RB (Trinity Pawling School
Corp. Project)
5.35%, 01/06/00 4,000 4,000
Erie County, New York IDA Life Care
Community RB (Episcopal Church
Home Project) Series 1998B
5.25%, 01/05/00 1,205 1,205
Long Island Power Authority, New York
Electric System RB SubSeries 7B
5.50%, 01/07/00 12,500 12,500
Long Island Power Authority, New York
Electric System Subordinated RB
4.70%, 01/01/00 32,200 32,200
New York City, New York GO Series 1994B
Subseries B6
4.75%, 01/01/00 1,850 1,850
New York City, New York GO Subseries
1993A-8
5.00%, 01/01/00 200 200
New York City, New York Housing
Development Corp. M/F RB (One
Columbus Project) Series A
5.50%, 01/07/00 16,000 16,000
New York City, New York Housing
Development Corp. M/F RB (Related
Broadway Development) Series 1998A
5.60%, 01/07/00 10,500 10,500
New York City, New York IDA Special
Facility RB (Korean Airlines Co. Project)
Series 1997C
5.85%, 01/07/00 1,500 1,500
New York City, New York M/F Rental
Housing RB (Tribeca Tower Project)
Series 1997A
5.60%, 01/07/00 10,200 10,200
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series 1992C
5.00%, 01/01/00 20,050 20,050
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series 1994G
4.70%, 01/01/00 47,150 47,150
Par Value
------- ----------
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series 1995A
4.50%, 01/01/00 $ 950 $ 950
New York City, New York Transit Cultural
Resource Revenue Refunding Bonds
(American Museum of Natural History)
Series 1993A
5.05%, 01/07/00 2,700 2,700
New York City, New York Transitional
Finance Authority RB Series 1998A-1
5.50%, 01/07/00 2,500 2,500
New York State Energy Research &
Development Authority Pollution
Control Revenue Refunding Bonds
(Niagara Mohawk Power) Series A
4.50%, 01/01/00 28,550 28,550
New York State Energy Research &
Development Authority Pollution
Control Revenue Refunding Bonds
(Orange & Rockland Utilities, Inc.
Project) Series 1994A
5.05%, 01/07/00 900 900
New York State HFA RB
5.20%, 01/05/00 2,100 2,100
New York State HFA RB (101 West End
Avenue Project) Series 1999A
5.20%, 01/07/00 1,200 1,200
New York State HFA RB (Chelsea Arms
Housing Project) Series A
5.50%, 01/05/00 4,000 4,000
New York State HFA RB (Mount Sinai
School Of Medicine) Series A
4.75%, 01/07/00 330 330
New York State HFA RB Series 1997A
5.50%, 01/05/00 36,400 36,400
New York State Local Government
Assistance Corp. RB Series 1994B
5.40%, 01/07/00 36,500 36,500
New York State Local Government
Assistance Corp. RB Series 1995D
5.20%, 01/07/00 6,900 6,900
New York State Local Government
Assistance Corp. RB Series 1995E
5.20%, 01/07/00 15,350 15,350
New York State Local Government
Assistance Corp. RB Series 1995F
5.40%, 01/07/00 700 700
37
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Niagara County, New York IDA IDRB
(Allegheny Ludlum Steel Co. Project)
Series 1984
5.60%, 01/07/00 $ 1,600 $ 1,600
Yonkers, New York IDA Civic Facilities
RB (Consumers Union Facility Project)
5.65%, 01/07/00 500 500
----------
309,535
----------
NORTH CAROLINA -- 1.0%
Burke County, North Carolina Industrial
Facilities Pollution Control Financing
Authority Industrial RB (Bauer
Industries Inc. Project)
5.65%, 01/07/00 3,455 3,455
Charlotte, North Carolina Airport Revenue
Refunding Bonds Series 1997A
5.25%, 01/07/00 5,000 5,000
Concord, North Carolina COP (Concord
Project) Series A (a)
5.45%, 01/07/00 8,200 8,200
Forsyth County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Plymouth Printing Project)
5.60%, 01/07/00 2,340 2,340
Gates County, North Carolina Industrial
Facilities & Pollution Control Financing
Authorty Revenue IDRB (Coxe-Lewis
Project)
5.50%, 01/06/00 2,035 2,035
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Camco Manufacturing
Project) Series 1996
5.55%, 01/07/00 2,400 2,400
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Crescent Sleep Project)
5.65%, 01/06/00 5,900 5,900
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Culp Inc. Project)
5.55%, 01/07/00 3,825 3,825
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Neal Manufacturing
Project)
5.50%, 01/07/00 2,700 2,700
Par Value
------- ----------
Guilford County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Vitafoam Inc. Project)
5.55%, 01/07/00 $ 5,500 $ 5,500
Johnston County, North Carolina Industrial
Facilites & Pollution Control Financing
Authority RB (Flanders Corp. Project)
5.65%, 01/07/00 4,500 4,500
North Carolina Educational Facilities
Finance Agency RB (Cannon School
Project)
5.45%, 01/07/00 6,500 6,500
North Carolina Educational Facilities
Finance Agency RB (High Point
University Project)
5.45%, 01/07/00 5,510 5,510
North Carolina Medical Care Community
Hospital Health Care Facilities
(Presbyterian Home)
5.45%, 01/07/00 8,500 8,500
Rowan County, North Carolina Industrial
Facilities Pollution Control Financing
Authority (Taylor-Clay Products Project)
5.55%, 01/07/00 5,000 5,000
Sampson County, North Carolina
Industrial Facilities & Pollution Control
Financing Authority IDRB (Crumpler
Plastic Project)
5.55%, 01/06/00 4,100 4,100
Union County, North Carolina Industrial
Facilities & Pollution Control Financing
Authority RB (Rock-Tenn Converting
County Project) Series 1997
5.65%, 01/07/00 1,750 1,750
Wilmington, North Carolina Housing
Authority M/F Housing RB (Garden
Lake Estates Project) Series 1999
5.65%, 01/05/00 7,280 7,280
----------
84,495
----------
NORTH DAKOTA -- 0.1%
Richland County, North Dakota IDRB
(Minn-Dak Farmers Co-Op Project)
Series 1986B
5.70%, 01/07/00 1,000 1,000
38
<PAGE>
Par Value
------- ----------
Richland County, North Dakota Solid
Waste Disposal RB (Minn-Dak Farmers
Co-Op Project) Series 1996A
5.70%, 01/07/00 $ 11,000 $ 11,000
----------
12,000
----------
OHIO -- 0.7%
Cleveland, Ohio Airport System RB
Series 1997D
5.25%, 01/07/00 13,530 13,530
Clinton County, Ohio Hospital RB (Ohio
Hospital Capital, Inc. Project)
5.60%, 01/05/00 5,000 5,000
Columbus, Ohio Electric System RB
Series 1984
3.65%, 01/07/00 5,780 5,780
Cuyahoga County, Ohio Economic
Development RB (Hathaway Brown
School Project) Series 1999
5.50%, 01/06/00 14,650 14,650
Ohio Air Quality Development Authority
RB (JMG Funding, LP) Series 1994A
5.55%, 01/07/00 2,900 2,900
Ohio Air Quality Development Authority
RB (Ltd. Partnership Project)
Series 1994B
5.75%, 01/07/00 14,400 14,400
Ohio HFA M/F Housing RB (Kenwood
Congregate Retirement Community
Project) Series 1985
4.10%, 01/07/00 2,000 2,000
----------
58,260
----------
OKLAHOMA -- 1.3%
Creek County, Oklahoma Industrial
Authority IDRB (Henry Vogt Mach
Project) Series 1990
5.65%, 01/07/00 2,000 2,000
Garfield County, Oklahoma IDRB
(Bank of Commerce Group Inc. Project)
5.50%, 01/07/00 7,265 7,265
Muldrow, Oklahoma Public Works
Authority IDRB (Oklahoma Foods
Project)
3.60%, 01/07/00 7,500 7,500
Oklahoma County, Oklahoma Industrial
Authority RB (National Cowboy Hall of
Fame Project) Series 1999
5.40%, 01/07/00 2,500 2,500
Par Value
------- ----------
Oklahoma Development Finance Authority
RB (Shawnee Funding Ltd.)
5.65%, 01/07/00 $ 4,000 $ 4,000
Oklahoma State Student Loan Authority
RB Series 1996A
5.50%, 01/07/00 31,980 31,980
Oklahoma State Student Loan Authority
RB Series 1997A
5.45%, 01/07/00 33,000 33,000
Oklahoma State Student Loan Authority
RB Series 1998A
5.45%, 01/07/00 17,100 17,100
Tulsa, Oklahoma IDA RB (Thomas & Betts
Project) Series 1991
5.60%, 01/07/00 700 700
Tulsa, Oklahoma Industrial Authority
Hospital RB (YMCA of Greater Tulsa
Project) Series 1999
5.40%, 01/07/00 3,000 3,000
----------
109,045
----------
OREGON -- 0.6%
Oregon State Economic Development
Authority RB (Kettle Foods Project)
Series 186 (a)
5.60%, 01/05/00 1,900 1,900
Oregon State Economic Development
Authority RB (Pendleton Flour Mills
Project) Series 1982
5.25%, 01/07/00 6,300 6,300
Oregon State Economic Development
Commission Economic & IDRB
5.50%, 01/07/00 4,100 4,100
Oregon State Health, Housing, Educational
& Cultural Facilities Authority RB
(Quatama Crossing Housing Project)
5.40%, 01/07/00 2,440 2,440
Port of Portland, Oregon IDRB (Schnitzer
Steel Project)
4.50%, 01/07/00 5,000 5,000
Port of Portland, Oregon Special Obligation
RB (Portland Bulk Terminals Limited
Liability Corp. Project)
5.30%, 01/07/00 18,100 18,100
Port of Portland, Oregon Special Obligation
RB (Portland Bulk Terminals Limited
Liability Corp. Project) Series 1999
4.00%, 01/06/00 6,000 6,000
39
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Portland, Oregon M/F Housing RB (Village
of Lovejoy Fountain)
5.60%, 01/07/00 $ 7,000 $ 7,000
----------
50,840
----------
PENNSYLVANIA -- 6.5%
Allegheny County, Pennsylvania IDA RB
4.70%, 01/01/00 1,000 1,000
Allegheny County, Pennsylvania IDA RB
(Longwood at Oakmont)
4.70%, 01/01/00 1,400 1,400
Allegheny County, Pennsylvania IDA RB
(USX Corp. Project)
5.40%, 01/06/00 6,800 6,800
Allegheny County, Pennsylvania IDA RB
Series 1997C
4.70%, 01/01/00 5,000 5,000
Berks County, Pennsylvania IDA
(Street Desserts Project)
5.50%, 01/07/00 6,700 6,700
Cambria County, Pennsylvania IDA
Resource Recovery RB (Cambria Cogen
Co. Project)
5.50%, 01/07/00 8,195 8,195
Cambria County, Pennsylvania IDA
Resource Recovery RB (Cambria Cogen
Co. Project) Series 1998A1
5.50%, 01/07/00 53,400 53,400
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault Project)
5.60%, 01/05/00 205 205
Dauphin County, Pennsylvania General
Authority RB (All Health Pooled
Financing Program)
5.60%, 01/07/00 9,070 9,070
Dauphin County, Pennsylvania General
Authority RB (Education & Health Loan
Program) Series 1997
5.75%, 01/07/00 8,930 8,930
Delaware County, Pennsylvania IDA RB
(YMCA of Philadelphia Project)
Series 1999
5.40%, 01/05/00 2,435 2,435
Delaware Valley, Pennsylvania Regional
Finance Authority Local Government
RB Series 1986
5.20%, 01/05/00 1,700 1,700
Par Value
------- ----------
Easton, Pennsylvania City School
District GO
5.75%, 01/07/00 $ 2,800 $ 2,800
Montgomery County, Pennsylvania
IDA RB (Seton Medical Co.)
5.15%, 01/07/00 5,000 5,000
Montgomery County, Pennsylvania
Redevelopment Authority M/F Housing
Revenue Refunding Bonds (Glenmore
Assoc. Project) Series A
5.55%, 01/07/00 350 350
Pennsylvania Energy Development
Authority RB (B&W Ebensburg Project)
Series 1986
5.25%, 01/07/00 27,875 27,875
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988A
5.90%, 01/07/00 28,800 28,800
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B
5.90%, 01/07/00 51,230 51,230
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988C
5.90%, 01/07/00 39,430 39,430
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1994A
5.90%, 01/07/00 72,550 72,550
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1995A
5.90%, 01/07/00 23,000 23,000
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1997A
6.05%, 01/07/00 45,025 45,025
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1999A
5.25%, 01/05/00 48,200 48,200
Philadelphia, Pennsylvania IDA RB (30th
Street Station Project) Series 1987
4.00%, 01/07/00 10,500 10,500
Philadelphia, Pennsylvania IDA RB (City
Line Holiday Inn Project) Series 1996
5.65%, 01/07/00 2,000 2,000
Philadelphia, Pennsylvania Water & Waste
RB Series 1997B
5.15%, 01/07/00 12,510 12,510
Quakertown, Pennsylvania General
Authority Pooled Financing Program
Series A
5.75%, 01/04/00 14,907 14,907
40
<PAGE>
Par Value
------- ----------
Schuylkill County, Pennsylvania IDA
Resource Recovery RB (Gilberton Power
Project) Series 1985
5.20%, 01/07/00 $ 1,750 $ 1,750
State Public School Building Authority,
Pennsylvania School RB (Parkland
School Distict) Series 1999D
5.75%, 01/07/00 4,700 4,700
Washington County, Pennsylvania
Authority Lease RB (Girard Estate
Refunding Project) Series 1999
5.55%, 01/07/00 36,500 36,500
Washington County, Pennsylvania
Authority Lease RB Municipal Facilities
Series 1995B-1
5.60%, 01/07/00 6,822 6,822
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon Valley
Crethren)
5.40%, 01/07/00 610 610
York, Pennsylvania General Authority
Pooled Financing RB Series 1996
5.40%, 01/07/00 475 475
----------
539,869
----------
RHODE ISLAND -- 0.5%
Rhode Island State Student Loan Authority
Higher Education Loan RB Series 1995-1
5.30%, 01/07/00 12,300 12,300
Rhode Island State Student Loan Authority
Higher Education Loan RB Series 1996-2
5.30%, 01/07/00 10,000 10,000
Rhode Island State Student Loan Authority
Higher Education Loan RB Series 1996-3
5.30%, 01/07/00 18,000 18,000
----------
40,300
----------
SOUTH CAROLINA -- 0.4%
Dorchester County, South Carolina
Pollution Control Facilities RB (BOC
Group Inc. Project)
5.50%, 01/07/00 3,000 3,000
Greenville, South Carolina County & City
IDRB (Stevens Aviation Technology
Services Project)
5.50%, 01/07/00 3,500 3,500
Par Value
------- ----------
South Carolina Economic Development
Authority Hospital Facility RB (Sanders
Brothers Construction Project)
5.60%, 01/07/00 $ 2,450 $ 2,450
South Carolina Jobs Economic
Development Authority IDRB (Electric
City Printing Project)
5.60%, 01/07/00 2,600 2,600
South Carolina Jobs Economic
Development Authority RB (Brown
Packaging Co. Project)
5.60%, 01/07/00 3,300 3,300
South Carolina Jobs Economic
Development Authority RB (Specialty
Minerals Project)
5.65%, 01/07/00 4,600 4,600
South Carolina Jobs Economic
Development Authority RB (Thomas &
Betts Corp. Project)
5.60%, 01/07/00 3,100 3,100
South Carolina State Housing Finance &
Development Authority M/F Housing RB
(Ashley Apartments Project) Series 1999
5.65%, 01/07/00 4,300 4,300
Spartanburg County, South Carolina
IDA RB (Bemis, Inc.)
5.50%, 01/07/00 4,750 4,750
----------
31,600
----------
SOUTH DAKOTA -- 0.3%
South Dakota State Health & Educational
Facilities Authority RB (Mckenna
Hospital) Series 1994
5.50%, 01/07/00 15,930 15,930
South Dakota State Health & Educational
Facilities Authority RB (Sioux Valley
Hospital) Series 1992A
4.00%, 01/06/00 4,900 4,900
----------
20,830
----------
TENNESSEE -- 1.9%
Chattanooga, Tennessee Health Education
& Housing Facility Board RB (Baylor
School Project)
5.55%, 01/07/00 2,625 2,625
Chattanooga, Tennessee IDRB (National
Print Group Inc. Project)
5.70%, 01/07/00 2,400 2,400
41
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Franklin County, Tennessee IDRB
(Hi-Tech Project) Series 1997
5.50%, 01/07/00 $ 6,000 $ 6,000
Huntingdon, Tennessee IDB
IDRB (Associated Rubber Co. Project)
Series 1999
5.65%, 01/05/00 2,500 2,500
Jackson County, Tennessee IDRB Solid
Waste Facilities (Ameristeel Corp.
Project)
5.50%, 01/06/00 3,800 3,800
McMinn County, Tennessee IDB Solid
Waste Disposal RB (Bowater, Inc. Project)
5.60%, 01/06/00 13,500 13,500
Metropolitan Nashville & Davidson
County, Tennessee IDRB (Bind
Technologies Inc.)
5.50%, 01/07/00 3,750 3,750
Metropolitan Nashville & Davidson
County, Tennessee M/F Housing IDRB
(Arbor Crest) Series 1985B
5.50%, 01/07/00 7,550 7,550
Metropolitan Nashville & Davidson
County, Tennessee M/F Housing IDRB
(Arbor Knoll) Series 1985A
5.50%, 01/07/00 1,000 1,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995C1
5.50%, 01/07/00 5,530 5,530
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995C3
5.50%, 01/07/00 10,000 10,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1995E3
5.50%, 01/07/00 2,810 2,810
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996A
5.50%, 01/07/00 7,000 7,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996D1
5.50%, 01/07/00 2,990 2,990
Par Value
------- ----------
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996E1
5.50%, 01/07/00 $ 6,160 $ 6,160
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996E4
5.50%, 01/07/00 3,000 3,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996F1
5.50%, 01/07/00 9,000 9,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996F2
5.50%, 01/07/00 8,690 8,690
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1996G
5.50%, 01/07/00 6,540 6,540
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series 1997I-A1
5.50%, 01/06/00 10,000 10,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series II-C
5.50%, 01/07/00 1,025 1,025
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series III-B1
5.55%, 01/07/00 10,000 10,000
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series III -C1
5.50%, 01/07/00 11,500 11,500
Sevier County, Tennessee Public Building
Authority Local Government Public
Improvement Bonds Series IV-A1
4.90%, 01/01/00 5,000 5,000
Sumner County, Tennessee Health,
Education, & Housing Facilities Board
RB (Hospital Alliance Pooled Program)
Series 1999A
5.61%, 01/06/00 15,000 15,000
----------
157,370
----------
42
<PAGE>
Par Value
------- ----------
TEXAS -- 6.3%
Amarillo, Texas Health Facilities Corp.
Hospital RB (High Plains Baptist
Hospital) Series 1985
5.70%, 01/07/00 $ 3,100 $ 3,100
Amarillo, Texas Health Facilities Corp.
Revenue Refunding Bonds
5.45%, 01/07/00 3,155 3,155
Bexar County, Texas Health Facilities
Development Corp. RB (Chandler
Memorial Home Project) Series 1995
5.47%, 01/07/00 4,800 4,800
Brazos River, Texas Higher Education
Authority RB Series 1993B1
5.25%, 01/07/00 35,400 35,400
Brazos River, Texas River Authority
Pollution Control Revenue Refunding
Bonds (Utilities Electric Co. Project)
Series 1996B
4.65%, 01/01/00 14,400 14,400
Brownsville County, Texas Industrial
Development Corp. Revenue Refunding
Bonds (Rich Seapak Corp. Project)
5.65%, 01/07/00 3,750 3,750
Central Waco, Texas Development Corp.
IDRB (H.E. Butt Grocery Project)
5.35%, 01/07/00 3,150 3,150
Collin County, Texas HFA M/F Housing RB
(Huntington Apartments Project)
5.61%, 01/07/00 6,150 6,150
Euless, Texas IDA RB (Ferguson
Enterprises, Inc. Project)
5.50%, 01/07/00 4,950 4,950
Grand Prairie, Texas IDA IDRB (NTA
Leasing Co. Project) Series 1994
5.50%, 01/07/00 1,940 1,940
Hays, Texas Memorial Health Facilities
Development Corp. Hospital RB (AHS
Sunbelt Central Texas Medical Center
Project) Series 1990A
5.45%, 01/07/00 7,900 7,900
Lavaca-Navidad River Authority, Texas
Water Supply System Contract RB
(Formosa Plastics Corp. Project) (a)
5.40%, 01/07/00 13,600 13,600
Par Value
------- ----------
Lubbock, Texas Educational Facilities
Authority RB (Lubbock Christian
University Project)
5.30%, 01/07/00 $ 6,600 $ 6,600
North Texas Higher Education Authority,
Inc. Student Loan RB Series 1996C
5.65%, 01/06/00 3,500 3,500
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds (Texas Student Loan
Project)
5.60%, 01/07/00 9,000 9,000
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds Series 1987A
5.20%, 01/07/00 87,750 87,750
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds Series 1996A
5.65%, 01/07/00 7,400 7,400
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds Series 1996B
5.65%, 01/07/00 4,000 4,000
North Texas Higher Education Authority
Income Tax Student Loan Revenue
Refunding Bonds Series 1996D
5.65%, 01/07/00 4,000 4,000
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1991A
5.25%, 01/07/00 23,000 23,000
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1992A
5.25%, 01/07/00 5,500 5,500
Panhandle Plains, Texas Higher Education
Authority Student Loan RB
Series 1992A1
5.25%, 01/07/00 2,400 2,400
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1993A
5.25%, 01/07/00 13,300 13,300
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1995A
5.25%, 01/07/00 18,300 18,300
Panhandle Plains, Texas Higher Education
Authority Student Loan RB Series 1997X
5.25%, 01/07/00 18,300 18,300
43
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Robertson County, Texas Industrial
Development Corp. IDRB (Sanderson
Farms Project) Series 1995
5.65%, 01/07/00 $ 3,700 $ 3,700
South Texas Higher Education Authority
Student Loan RB
5.25%, 01/07/00 116,100 116,100
South Texas Higher Education Authority
Student Loan RB Series 1997Z
5.25%, 01/07/00 7,000 7,000
Tarrant County, Texas IDRB (Mortex
Products Inc. Project)
5.75%, 01/07/00 4,000 4,000
Texas Capital Health Facilities
Development Corp. RB (Island On Lake
Travis Ltd. Project)
5.25%, 01/07/00 8,500 8,500
Texas Health Facilities Development Corp.
ACES RB (North Texas Pooled Health)
Series 1985B
5.70%, 01/07/00 14,000 14,000
Texas Municipal Gas Corp. Gas Reserve
RB Weekly Senior Lien
5.40%, 01/07/00 65,935 65,935
Trinity River Authority, Texas Pollution
Control RB (Lafarge Corp. Project)
5.10%, 01/07/00 4,100 4,100
----------
528,680
----------
UTAH -- 0.7%
Utah State Board of Regents Student Loan
RB Series 1995L
5.65%, 01/07/00 13,750 13,750
Utah State Board of Regents Student Loan
RB Series 1996Q
5.65%, 01/07/00 9,000 9,000
Utah State Board of Regents Student Loan
RB Series 1997R
5.65%, 01/07/00 34,155 34,155
Woods Cross City, Utah M/F RB (Spring
Wood Apartments)
5.47%, 01/07/00 3,605 3,605
----------
60,510
----------
Par Value
------- ----------
VERMONT -- 0.2%
Vermont Economic Development
Authority IDRB (AGRI Mark, Inc. Project)
Series 1999A
4.80%, 01/06/00 $17,000 $ 17,000
Vermont Economic Development
Authority IDRB (AGRI Mark, Inc.
Project) Series 1999B
4.80%, 01/06/00 1,000 1,000
----------
18,000
----------
VIRGINIA -- 0.2%
Alexandria, Virginia IDA Resource
Recovery RB (Alexandria Arlington
Waste-to-Energy Facility Project)
Series 1986A
5.10%, 01/01/00 5,000 5,000
King George County, Virgina IDA Solid
Waste Disposal Facility (Garnet of
Virginia Project) Series 1996
5.50%, 01/07/00 3,700 3,700
Loudoun County, Virginia IDRB
(Electronic Instrumentation Project)
5.60%, 01/07/00 2,560 2,560
Portsmouth, Virginia Redevelopment &
Housing Authority M/F Housing RB
(Churchland North Apartments Project)
5.65%, 01/07/00 1,500 1,500
Staunton, Virginia IDRB (Diebold Inc.-
Staunton Project) Series 1997
5.45%, 01/07/00 2,835 2,835
Virginia Beach, Virginia Development
Authority M/F Housing RB (Silver Hill at
Thalia LLC Project) Series 1999
5.65%, 01/07/00 4,400 4,400
----------
19,995
----------
WASHINGTON -- 2.5%
Algona, Washington Economic
Development Corp. IDRB (Aitchison
Family Partnership Project)
5.45%, 01/07/00 2,590 2,590
Douglas County, Washington Water
Economic Development RB
5.55%, 01/07/00 6,500 6,500
44
<PAGE>
Par Value
------- ----------
Everett, Washington IDA RB Series 1996
(Partners Trust/Synsor Project)
5.25%, 01/07/00 $ 4,300 $ 4,300
King County, Washington Economic
Enterprise Corp. RB (Sunrise Project)
Series 1997
5.25%, 01/07/00 3,900 3,900
King County, Washington HFA M/F
Housing RB (Auburn County Apartments)
5.55%, 01/06/00 9,150 9,150
Olympia, Washington Economic
Development Corp. Solid Waste RB
(Lemay Enterprises Project)
5.60%, 01/07/00 8,160 8,160
Pierce County, Washington Economic
Development Corp. RB (Flex-A-Lite
Consolidated Project)
5.25%, 01/07/00 3,000 3,000
Pierce County, Washington Economic
Development Corp. RB (K & M
Holdings II Project) Series 1997
4.25%, 01/07/00 1,820 1,820
Pierce County, Washington Economic
Development Corp. RB (McFarland
Cascade Project)
5.65%, 01/07/00 2,000 2,000
Pierce County, Washington Economic
Development Corp. RB (Solid Waste
Lemay Enterprises Project)
5.60%, 01/07/00 3,500 3,500
Pilchuck, Washington Water Development
Corp. IDRB (Romac Industrial Inc.
Project)
6.00%, 01/07/00 6,850 6,850
Port Benton, Washington Economic
Development Corp. Solid Waste RB
(ATG, Inc. Project)
5.60%, 01/05/00 23,500 23,500
Port Centralia, Washington IDB (Solid
Waste Lemay Enterprises Project)
5.60%, 01/07/00 2,200 2,200
Port Moses Lake, Washington Public Corp.
RB (Moses Lake Industrial Project)
Series 1995
5.25%, 01/07/00 3,000 3,000
Port Moses Lake, Washington Public Corp.
RB (National Frozen Foods Corp.)
5.15%, 01/07/00 6,800 6,800
Par Value
------- ----------
Port Townsend, Washington IDRB (Port
Townsend Paper Corp.)
5.55%, 01/06/00 $ 1,000 $ 1,000
Seattle, Washington HDA RB (Capitol Hill
Housing Improvement & HRG Project)
5.25%, 01/07/00 6,355 6,355
Seattle, Washington HDA RB (Casa Pacifica
Apartments Project) Series 1997
5.25%, 01/07/00 3,350 3,350
Seattle, Washington HDA RB (Holly Park
Project)
5.25%, 01/07/00 18,500 18,500
Spokane County, Washington Industrial
Development Corp. (Metal Sales
Manufacturing Corp. Project)
5.60%, 01/07/00 2,205 2,205
Tacoma, Washington Housing Authority
RB (Crown Assisted Living Project)
4.70%, 01/07/00 3,400 3,400
Washington Health Care Facilities
Authority RB (Yakima Valley Farm
Workers Clinic) Series 1997
5.15%, 01/07/00 3,700 3,700
Washington State Economic Development
Finance Authority (Skills Inc Project) (a)
5.60%, 01/07/00 3,400 3,400
Washington State Economic Development
Finance Authority ACES (Tank Project)
Series 1998B
5.70%, 01/07/00 1,400 1,400
Washington State Economic Development
Finance Authority IDRB (Tonkin
Building) Series 1997A
5.65%, 01/07/00 1,000 1,000
Washington State Economic Development
Finance Authority RB (Hamilton
Materials Project)
5.55%, 01/07/00 5,000 5,000
Washington State Economic Development
Finance Authority RB (Hunter Douglas
Project) Series 1997A
5.65%, 01/07/00 3,500 3,500
Washington State HFA M/F Housing
Mortgage RB (Brittany Park Phase 3
Project)
5.65%, 01/07/00 3,480 3,480
45
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
Washington State HFA M/F Housing
Mortgage RB (Canyon Lake II)
Series 1993A
5.55%, 01/07/00 $ 4,565 $ 4,565
Washington State HFA M/F Housing
Mortgage RB (Lake Washington
Apartments Project) Series 1996
5.25%, 01/07/00 8,750 8,750
Washington State HFA M/F Housing
Mortgage RB (Meridian Court
Apartments) Series 1996
5.25%, 01/07/00 6,900 6,900
Washington State HFA M/F Housing
Mortgage RB (Merrill Gardens Project)
Series 1997A
5.55%, 01/07/00 2,600 2,600
Washington State HFA M/F Housing
Mortgage RB (Rosecreek Apartments
Project)
5.55%, 01/07/00 3,570 3,570
Washington State Housing Finance
Commission M/F Housing RB (Mill
Pointe Apartments Project) Series 1999A
4.70%, 01/01/00 9,425 9,425
Washington State Housing Finance
Commission M/F Housing RB (Woodrose
Apartment Project) Series 1999A
5.50%, 01/06/00 6,750 6,750
Yakama Indian Nation, Washington
Confederated Tribes & Bands (Yakama
Forests Products Project)
5.25%, 01/07/00 8,600 8,600
Yakima County, Washington Public Corp.
IDRB (Cowiche Growers Project)
5.55%, 01/07/00 3,800 3,800
Yakima County, Washington Public Corp.
RB (Hi-Country Foods Project)
5.25%, 01/07/00 7,300 7,300
Yakima County, Washington Public Corp.
RB (Michaelson Packaging Project)
5.25%, 01/07/00 3,400 3,400
Yakima County, Washington Public Corp.
RB (Printing Press Project)
5.25%, 01/07/00 2,400 2,400
----------
211,620
----------
Par Value
------- ----------
WEST VIRGINIA -- 0.4%
Fayette County, West Virgina Solid Waste
Disposal Facilities RB (Georgia-Pacific
Corp. Project) Series 1995
5.65%, 01/07/00 $11,100 $ 11,100
Marion County, West Virginia Solid Waste
Disposal Facilities RB (Grant Town
Project) Series 1990B
5.65%, 01/07/00 13,725 13,725
Marion County, West Virginia Solid Waste
Disposal Facilities RB (Grant Town
Project) Series 1990D
5.65%, 01/07/00 4,100 4,100
West Virginia State Hospital Finance
Authority RB (St. Joseph's Hospital
Project) Series 1987
3.40%, 01/07/00 1,800 1,800
----------
30,725
----------
WISCONSIN -- 0.5%
Carlton, Wisconsin Pollution Control RB
(Wisconsin Power & Light Co. Project)
5.60%, 01/07/00 5,800 5,800
Chilton, Wisconsin IDRB (Kaytee Products,
Inc. Project) Series 1995
5.60%, 01/07/00 1,105 1,105
Colburn, Wisconsin IDRB (Heartland
Farms Project) Series 1994
5.70%, 01/07/00 6,900 6,900
Grafton, Wisconsin IDRB (Milwaukee
Sign Co. Project)
5.70%, 01/07/00 780 780
Kenosha, Wisconsin IDRB (Asyst Tech.
Ltd. Liability Corp. Project)
5.67%, 01/07/00 5,000 5,000
Lac Du Flambeau, Band of Lake Superior,
Wisconsin Chippewa Indians Special
Obligation Bonds (Simpson Electric Co.
Project) Series 1985
5.50%, 01/07/00 4,000 4,000
Rapids City, Wisconsin IDRB (Theile
Kaolin of Wisconsin, Inc. Project)
Series 1998
5.65%, 01/07/00 2,250 2,250
Rhinelander, Wisconsin IDRB (Lake
Shore Inc. Project)
5.70%, 01/07/00 2,820 2,820
46
<PAGE>
Par Value
------- ----------
Wisconsin Housing & Economic
Development Authority RB (Ultratec Inc.
Project ) Series 7
5.70%, 01/06/00 $ 3,440 $ 3,440
Wisconsin State Health & Education
Facilities Authority RB (Sinai Samaritan)
Series 1994A
5.45%, 01/07/00 12,153 12,153
----------
44,248
----------
WYOMING -- 0.3%
Lincoln County, Wyoming Pollution
Control RB (Exxon Corp. Project)
Series 1987B
5.05%, 01/01/00 5,100 5,100
Lincoln County, Wyoming Pollution
Control RB (Exxon Corp. Project)
Series A
5.05%, 01/01/00 12,450 12,450
Unita County, Wyoming Pollution
Control RB (Chevron USA Inc. Project)
Series. 1992 E17
4.70%, 01/01/00 5,200 5,200
----------
22,750
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $4,678,439) 4,678,439
----------
VARIABLE RATE TENDER OPTION
BONDS -- 10.5% (a)(b)(f)
ALABAMA -- 0.0%
Jefferson County, Alabama Sewer RB TOB
Series 124
5.56%, 01/06/00 2,600 2,600
----------
ALASKA -- 0.3%
Alaska State Housing Finance Corp. TOB
Series 1999D
5.50%, 01/05/00 21,805 21,805
----------
COLORADO -- 0.2%
Colorado HFA S/F Mortgage TOB
Series 1999M
5.61%, 01/06/00 10,725 10,725
Lower Colorado River Authority TOB
5.56%, 01/07/00 6,000 6,000
----------
16,725
----------
Par Value
------- ----------
CONNECTICUT -- 0.2%
Macon, Connecticut HFA TOB Series 1999D
5.63%, 01/06/00 $19,995 $ 19,995
----------
FLORIDA -- 0.1%
Eagle Dade County, Florida Water &
Sewer TOB Series 1993S
5.56%, 01/07/00 11,500 11,500
----------
HAWAII -- 0.2%
Hawaii State Housing Finance &
Development Corp. TOB
4.76%, 01/06/00 14,930 14,930
Hawaii State TOBP (PA-601)
5.56%, 01/07/00 3,500 3,500
----------
18,430
----------
ILLINOIS -- 0.9%
Chicago, Illinois Midway Airport RB TOB
5.56%, 01/07/00 24,480 24,480
Chicago, Illinois S/F Mortgage RB
Series 1999N TOB
5.61%, 01/06/00 9,995 9,995
Illinois Educational Facilities TOB
5.50%, 01/07/00 2,000 2,000
Illinois Metropolitan Pier & Expo
Authority Mccormick Place TOB
5.56%, 01/07/00 14,355 14,355
Illinois Regional Transportation
Authority TOB
5.56%, 01/06/00 9,730 9,730
Illinois Various Counties GO TOB
5.56%, 01/06/00 12,055 12,055
----------
72,615
----------
KANSAS -- 0.5%
Kansas Department of Transportation
Highway RB TOB Series 1999
5.56%, 01/06/00 37,500 37,500
----------
KENTUCKY -- 0.3%
Kentucky Housing Corporate Housing RB
Series 1998W TOB
4.76%, 01/06/00 19,320 19,320
Louisville & Jefferson Counties, Kentucky
Metro Sewer District TOB Series A
5.58%, 01/06/00 6,115 6,115
----------
25,435
----------
47
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
LOUISIANA -- 0.2%
Jefferson Parish, Louisiana Hospital
Services District #2 Hospital RB TOB
Series 183
5.58%, 01/06/00 $ 14,995 $ 14,995
----------
MARYLAND -- 0.4%
Maryland State Community Housing
Development Adminstration
Department TOB Series 1999G
4.88%, 01/07/00 32,335 32,335
----------
MASSACHUSETTS -- 0.3%
Massachusetts State GO TOB
3.99%, 01/06/00 12,150 12,150
Massachusetts State Water Pollution
Abatement Trust Water Pollution
TOB Series 1999N
5.45%, 01/05/00 16,500 16,500
----------
28,650
----------
MICHIGAN -- 0.2%
Detroit, Michigan Water Supply TOB
5.56%, 01/06/00 10,680 10,680
Monroe County, Michigan Pollution
Control TOB (Detroit Edison Co. Project)
5.61%, 01/07/00 9,920 9,920
----------
20,600
----------
MINNESOTA -- 0.1%
Rochester, Minnesota Health Care
Facilities RB TOB Series 177
5.56%, 01/06/00 7,130 7,130
----------
MISSISSIPPI -- 0.2%
Mississippi S/F HFA TOB Series 1997G
5.61%, 01/07/00 12,330 12,330
----------
NEBRASKA -- 0.1%
Nebraska Investment Finance Authority
S/F Housing RB Series TOB Series 1998X
4.86%, 01/06/00 10,825 10,825
----------
NEW HAMPSHIRE -- 0.3%
New Hampshire State HFA S/F Revenue
TOB Series 1998G
5.55%, 01/07/00 12,920 12,920
Par Value
-------- ----------
New Hampshire State HFA S/F Revenue
TOB Series 1998U
5.00%, 01/07/00 $ 9,995 $ 9,995
----------
22,915
----------
NEW JERSEY -- 0.5%
New Jersey Health Care TOBP (PA-504)
Series 1998B /
5.46%, 01/07/00 10,275 10,275
New Jersey State Housing & Mortgage
Financing Agency TOBP (PT-287)
5.36%, 01/01/00 24,985 24,985
New Jersey State Transportation Trust
Fund Authority TOBP (PT-298)
5.46%, 01/07/00 3,100 3,100
----------
38,360
----------
NEW YORK -- 1.8%
Long Island Power Authority, New York
Electric System RB TOBP (PA-544)
5.55%, 01/06/00 8,250 8,250
Long Island Power Authority, New York
Electric System RB TOBP (PA-565)
5.55%, 01/07/00 15,000 15,000
Macon, New York State Managment
Agency RB TOB Series 1999H
5.01%, 01/07/00 14,995 14,995
New York City, New York GO TOB
(CoreStates Merlot Program)
Series 1997C
5.45%, 01/07/00 28,825 28,825
New York City, New York Municipal
Assistance Corp. TOB
5.55%, 01/07/00 11,000 11,000
New York City, New York Municipal Water
Finance Authority Water & Sewer
Systems RB TOB Series 158
5.56%, 01/06/00 9,995 9,995
New York City, New York Transitional
Finance Authority Future Tax Secured
TOB Series 1999B
5.45%, 01/05/00 20,660 20,660
New York City, New York Waste
Management Facilities Water Sewer
Systems RB TOBP (PA-523) Series 1998B
5.55%, 01/07/00 18,235 18,235
New York Local Government Assistance
Corp. TOBP (PT-1055) Series 1997B
5.55%, 01/07/00 1,615 1,615
48
<PAGE>
Par Value
-------- ----------
New York State Dormitory Authority RB
(Montefiore Medical Center Project) TOB
Series 156
5.56%, 01/06/00 $ 7,950 $ 7,950
New York State Mortgage Agency Revenue
TOB Series 1999F
4.91%, 01/06/00 10,700 10,700
----------
147,225
----------
NORTH CAROLINA -- 0.0%
North Carolina Municipal Power
Agency #1 RB (Catawba Electric) TOB
Series 1999Q
4.50%, 01/06/00 2,875 2,875
----------
OHIO -- 0.4%
Ohio State Turnpike Commission Turnpike
RB TOB Series 163
5.54%, 01/06/00 33,030 33,030
----------
PENNSYLVANIA -- 0.4%
Pennsylvania HFA TOB Series 1999U
5.31%, 01/06/00 28,405 28,405
Philadelphia, Pennsylvania Airport RB
TOBP (PA-387)
5.56%, 01/07/00 1,920 1,920
Philadelphia, Pennsylvania School District
TOBP (PA-559)
5.56%, 01/07/00 1,500 1,500
Philadelphia, Pennsylvania Water & Waste
RB TOBP (PT-151) Series 1993
4.91%, 01/07/00 3,090 3,090
----------
34,915
----------
PUERTO RICO -- 0.1%
Puerto Rico Commonwealth Highway &
Transportation Authority Highway RB
TOBP (PA-605)
5.16%, 01/07/00 3,210 3,210
Puerto Rico Commonwealth TOBP (PT 181)
5.16%, 01/07/00 1,700 1,700
----------
4,910
----------
RHODE ISLAND -- 0.2%
Rhode Island Housing & Mortgage Finance
Corp. TOB Series 1999E
4.86%, 01/06/00 19,020 19,020
----------
Par Value
-------- ----------
TEXAS -- 1.1%
Austin, Texas Independant School
District TOB
5.56%, 01/07/00 $ 5,700 $ 5,700
Eagle, Texas Texas A&M Board of Regents
Permanent University Fund TOB
5.56%, 01/07/00 28,445 28,445
El Paso, Texas Water & Sewer Revenue TOB
Series 1999
5.11%, 01/07/00 14,825 14,825
Harris County, Texas Health Facility
Development Corp. TOB
5.56%, 01/06/00 14,850 14,850
Lower Colorado River Authority, Texas
Revenue Refunding Bonds TOB
Series 185
5.56%, 01/06/00 10,135 10,135
Mansfield, Texas Industrial Development
Corp. Revenue TOB (Southern
Champion Tray Project) Series 1999
5.65%, 01/05/00 3,400 3,400
Southeast Texas Housing Finance Corp.
TOBP (PT-193)
5.15%, 01/07/00 13,270 13,270
Texas A & M University TOBP (PA-556)
5.00%, 01/07/00 2,500 2,500
----------
93,125
----------
UTAH -- 0.1%
Intermountain Power Agency, Utah Power
Supply TOB Series 1997B
5.56%, 01/06/00 10,995 10,995
----------
WASHINGTON -- 0.6%
Port of Seattle, Washington Special
Facilities RB TOB Series 1999J
5.55%, 01/05/00 49,795 49,795
----------
WISCONSIN -- 0.6%
Wisconsin Housing & Economic
Development Authority Home Ownership
RB TOB Series 1999R
5.26%, 01/07/00 19,995 19,995
Wisconsin Housing & Economic
Development Authority Home Ownership
RB TOB Series 1999S
5.56%, 01/07/00 13,240 13,240
49
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Wisconsin Housing & Economic
Development Authority Home
Ownership TOBP (PT-194)
5.15%, 01/07/00 $ 15,005 $ 15,005
----------
48,240
----------
WYOMING -- 0.2%
Wyoming Community Development
Authority Housing RB TOB
5.61%, 01/07/00 15,360 15,360
----------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $874,235) 874,235
----------
TAX-EXEMPT COMMERCIAL PAPER -- 8.4% (c)
ARIZONA -- 0.6%
Maricopa County, Arizona Pollution
Control Authority Revenue Refunding
Bonds TECP (Southern California
Edison Palo Alto Verde Project)
Series 1985G
3.60%, 01/25/00 16,100 16,100
3.85%, 03/09/00 16,900 16,900
3.75%, 04/12/00 5,000 5,000
Salt River Project, Arizona Argicultural
Improvement Program TECP (f)
3.85%, 01/19/00 9,515 9,515
----------
47,515
----------
CALIFORNIA -- 0.1% (f)
Orange County, Florida TECP Series A
3.75%, 01/25/00 12,863 12,863
----------
COLORADO -- 0.2% (f)
Lower Colorado, River Authority TECP
3.70%, 01/31/00 18,200 18,200
----------
FLORIDA -- 0.9% (f)
Florida Local Government Finance
Commission Pooled TECP Series A
3.75%, 01/31/00 10,936 10,936
3.70%, 03/03/00 5,263 5,263
Florida Local Government Finance
Commission Pooled TECP Series B
3.80%, 01/31/00 3,000 3,000
Orange County, Florida HFA Pooled
Hospital Loan TECP
3.85%, 03/02/00 6,600 6,600
Par Value
-------- ----------
Pinellas County, Florida Education
Facilities TECP
3.70%, 02/03/00 $ 17,900 $ 17,900
Sunshine State of Florida Governmental
Finance Community TECP
3.60%, 01/18/00 16,000 16,000
3.70%, 04/11/00 20,495 20,495
----------
80,194
----------
INDIANA -- 0.6%
Indiana Health Facilities Financing
Authority (Acension Health) TECP
3.80%, 02/09/00 50,000 50,000
----------
KENTUCKY -- 0.7%
Kentucky Asset Liability Community
General Fund RB TECP Series A (f)
3.63%, 03/20/00 20,280 20,280
Trimble County, Kentucky Pollution
Control Revenue Bonds TECP
(Louisville G & E Project) Series 1997A
3.85%, 01/28/00 35,000 35,000
----------
55,280
----------
LOUISIANA -- 1.1%
Louisiana Adjustable Tender GO
Refunding Bonds TECP Series 1991A (f)
3.60%, 01/25/00 8,420 8,420
Louisiana Adjustable Tender GO
Refunding Bonds TECP
3.80%, 01/25/00 1,395 1,395
Louisiana State Pollution Control Revenue
Refunding Bonds TECP (St. James
Parish/Texaco Project) Series 1988A
3.50%, 01/19/00 37,500 37,500
Louisiana State Pollution Control Revenue
Refunding Bonds TECP (St. James
Parish/Texaco Project) Series 1988B
3.50%, 01/19/00 43,030 43,030
----------
90,345
----------
MICHIGAN -- 0.8% (f)
Michigan State Building Authority TECP
Series 1992
3.90%, 01/12/00 65,055 65,055
----------
50
<PAGE>
Par Value
-------- ----------
MINNESOTA -- 0.3%
Rochester, Minnesota Health Care
Facilities RB TECP (Mayo Foundation
Mayo Clinic Project) Series 1992
3.70%, 03/09/00 $ 20,900 $ 20,900
3.75%, 03/09/00 3,200 3,200
----------
24,100
----------
NEVADA -- 0.5% (f)
Las Vegas Valley, Nevada Water District
GO TECP Series A
3.65%, 02/08/00 40,000 40,000
----------
NEW JERSEY -- 0.2% (f)
New Jersey Transportation TECP
Series 2000A
3.65%, 02/03/00 21,000 21,000
----------
NEW YORK -- 0.1%
New York State Power Authority TECP
Series 2
3.80%, 03/08/00 1,000 1,000
Port of New York & New Jersey TECP
5.03%, 01/10/00 7,050 7,048
----------
8,048
----------
OKLAHOMA -- 0.4% (f)
Oklahoma City, Oklahoma Industrial
Cultural Facilities Trust Health Care
TECP Series 1998B
3.70%, 01/20/00 15,495 15,495
3.65%, 01/25/00 17,000 17,000
----------
32,495
----------
PENNSYLVANIA -- 0.5% (f)
Carbon County, Pennsylvania IDA
Resources Recovery RB TECP
3.80%, 01/20/00 15,045 15,045
Montgomery County, Pennsylvania IDA
Pollution Control Revenue Refunding
TECP
3.60%, 01/25/00 14,400 14,400
3.65%, 01/25/00 11,760 11,760
----------
41,205
----------
Par Value
-------- ----------
PUERTO RICO -- 0.4%
Goverment Development Bank For Puerto
Rico TECP
3.55%, 01/26/00 $ 8,298 $ 8,298
3.70%, 03/14/00 23,000 23,000
3.70%, 04/11/00 6,713 6,713
----------
38,011
----------
WASHINGTON -- 1.0% (f)
Port of Seattle, Washington Subordinate
Lien RB TECP Series 1997
3.70%, 01/20/00 81,000 81,000
----------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $705,311) 705,311
----------
TAX & REVENUE ANTICIPATION NOTES -- 7.1% (c)
NEW MEXICO -- 1.5%
New Mexico State TRAN
3.23%, 06/30/00 124,000 124,457
3.28%, 06/30/00 6,000 6,021
----------
130,478
----------
PENNSYLVANIA -- 0.5%
Philadelphia, Pennsylvania School District
TRAN Series 1999C (f)
3.45%, 06/30/00 15,000 15,039
Philadelphia, Pennsylvania TRAN
Series 1999A
3.50%, 06/30/00 17,000 17,061
3.90%, 06/30/00 10,000 10,013
----------
42,113
----------
TEXAS -- 4.9%
Texas State TRAN Series 1999A
3.69%, 08/31/00 51,000 51,260
3.70%, 08/31/00 200,000 201,026
3.77%, 08/31/00 30,300 30,437
3.78%, 08/31/00 14,400 14,464
3.80%, 08/31/00 7,000 7,030
3.81%, 08/31/00 5,900 5,925
3.82%, 08/31/00 10,000 10,041
3.85%, 08/31/00 47,900 48,084
3.86%, 08/31/00 34,900 35,033
3.90%, 08/31/00 3,500 3,512
----------
406,812
----------
51
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
WISCONSIN -- 0.2%
Eau Claire, Wisconsin Area School
District TRAN
3.92%, 10/20/00 $ 17,592 $ 17,671
----------
TOTAL TAX & REVENUE ANTICIPATION NOTES
(Cost $597,074) 597,074
----------
MANDATORY PUT BONDS -- 6.1% (c)
ARKANSAS -- 0.1%
Arkansas State S/F HFA Housing Mortgage
RB Series C
3.00%, 03/01/00 10,280 10,280
----------
CALIFORNIA -- 1.6% (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
1992A-2
3.18%, 04/01/00 49,300 49,300
California Higher Education Loan
Authority Student Loan RB Series
1995E-5
3.20%, 06/01/00 14,000 14,000
----------
133,300
----------
FLORIDA -- 0.3%
University of South Florida
Foundation COP
3.90%, 02/15/00 23,100 23,100
----------
IDAHO -- 0.2%
Custer County, Idaho Pollution Control
RB (Amoco Project) Series 1983
3.70%, 04/01/00 19,000 19,000
----------
ILLINOIS -- 0.1%
Illinois Development Financing
Authority RB
3.70%, 03/01/00 6,900 6,900
Orland Park, Illinois IDRB (Orland
Properties Project) (f)
3.70%, 01/07/00 1,035 1,035
----------
7,935
----------
Par Value
-------- ----------
NEVADA -- 0.4% (f)
Clark County, Nevada Airport Revenue
Systems Sub Lien RB Series 1999B1
3.73%, 03/01/00 $ 33,160 $ 33,160
----------
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 -- 0.2% (f)
Rhode Island State Student Loan
Authority RB
3.60%, 06/01/00 19,000 19,000
----------
TENNESSEE -- 0.3%
Metropolitan Nashville & Davidson
County, Tennessee IDRB (Insurance Co.
America Project)
3.90%, 05/01/00 5,700 5,700
Tennessee HDA (Homeownership
Program) Series 1999-1B
3.25%, 06/01/00 20,000 20,000
----------
25,700
----------
TEXAS -- 2.3% (f)
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992A
3.80%, 09/01/00 7,500 7,500
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992B
3.50%, 07/01/00 14,000 14,000
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
52
<PAGE>
Par Value
-------- ----------
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.
Student Loan RB Series 1996A
3.00%, 03/01/00 55,670 55,670
Greater East Texas Student Loan Corp.
Student Loan RB Series 1996B
3.20%, 06/01/00 2,125 2,125
----------
196,645
----------
WYOMING -- 0.3%
Jackson County, Wyoming Pollution
Control RB (Chevron Project)
3.85%, 05/01/00 25,000 25,000
----------
TOTAL MANDATORY PUT BONDS
(Cost $514,620) 514,620
----------
REVENUE BONDS -- 3.8% (c)
ARIZONA -- 0.0% (F)
Pima County, Arizona Street &
Highway RB
4.00%, 07/01/00 2,500 2,512
----------
CALIFORNIA -- 0.6% (f)
California Higher Education Loan
Authority Student Loan Revenue
Refunding Bonds Series 1987C-1
3.55%, 07/01/00 50,000 50,000
----------
COLORADO -- 0.1%
Denver, Colorado City & County S/F Metro
Mayors Caucus RB
3.20%, 05/01/00 7,300 7,300
----------
DELAWARE -- 0.0% (f)
Delaware Transportation Authority
Transportation System RB
3.60%, 07/01/00 775 804
----------
Par Value
-------- ----------
FLORIDA -- 0.1% (f)
Osceola County, Florida Capital Imports RB
3.70%, 09/01/00 $ 4,195 $ 4,216
----------
HAWAII -- 0.1% (f)
Hawaii State Airport System Revenue
Refunding Bonds 2nd Series 1991
3.60%, 07/01/00 1,680 1,701
Hawaii State Airport System Revenue
Refunding Bonds 2nd Series 1994
4.10%, 07/01/00 2,500 2,516
----------
4,217
----------
ILLINOIS -- 0.0% (f)
Illinois Municipal Electric Agency Power
Supply RB
3.05%, 02/01/00 1,850 1,852
Winnebago & Boone Counties, Illinois
School District No.205 RB
3.25%, 02/01/00 1,200 1,204
----------
3,056
----------
INDIANA -- 0.3% (f)
Indiana Secondary Market For Educational
Loans, Inc. Educational Loan RB
Series 1999G
3.80%, 06/01/00 13,000 13,000
Indiana University Student Fee RB
Series 1990G
3.60%, 08/01/00 9,500 9,869
----------
22,869
----------
KENTUCKY -- 0.0% (f)
Kentucky Housing Corp. Housing RB
Series 1993B
4.10%, 07/01/00 1,000 1,002
----------
MARYLAND -- 0.0%
Maryland Department of
Transportation RB
3.25%, 06/15/00 3,935 3,946
----------
MICHIGAN -- 0.0%
Michigan State HDA S/F Housing RB
Series 1999A
3.20%, 06/01/00 3,835 3,835
----------
53
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
MINNESOTA -- 0.2%
Dakota County, Minnesota Housing &
Redevelopment Authority S/F Housing
Refunding RB Series 1999C
3.20%, 04/25/00 $ 6,250 $ 6,250
Minneapolis St. Paul, Minnesota Housing
Finance Board Revenue Refunding
Bond (S/F Mortgage Project)
Series 1999A3 (f)
3.60%, 08/01/00 10,500 10,500
Minnesota State HFA S/F Mortgage
RB Series 1999F (f)
3.20%, 06/01/00 3,750 3,750
----------
20,500
----------
NEVADA -- 0.2% (f)
Clark County, Nevada Airport RB
Series B-2
3.68%, 03/01/00 16,000 16,000
Clark County, Nevada Passenger Facilities
Charge RB (Las Vegas Macarran
International Airport) Series 1995A
4.30%, 07/01/00 1,000 1,003
----------
17,003
----------
NEW JERSEY -- 0.2%
New Jersey Economic Development
Authority Market Transition Facility RB
Series 1994A (f)
3.50%, 07/01/00 3,900 3,930
New Jersey State Transportation Authority
RB Series 1992A
3.30%, 06/15/00 1,000 1,012
Port Authority New York & New Jersey
RB 119th Series (f)
3.75%, 09/15/00 8,600 8,644
----------
13,586
----------
OKLAHOMA -- 0.0%
Grand River Dam Authority, Oklahoma
Revenue Refunding Bond
3.65%, 06/01/00 3,355 3,376
----------
OREGON -- 0.3%
Oregon State Housing & Community
Services Department Management RB
Series1999C
3.15%, 04/13/00 5,000 5,000
Par Value
-------- ----------
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
3.48%, 06/29/00 6,000 6,000
Oregon State Housing & Community
Services Department S/F Mortgage RB
Series 1999N
3.85%, 11/02/00 10,000 10,000
Oregon State Housing & Community
Services Department S/F Mortgage RB
Series 1999O
3.95%, 11/02/00 1,210 1,210
----------
24,110
----------
PENNSYLVANIA -- 0.0% (f)
Philadelphia, Pennsylvania Hospital &
Higher Education Facilities Authority RB
(Northwestern Corp. Project)
Series 1991A
3.25%, 06/01/00 2,200 2,290
----------
RHODE ISLAND -- 0.1% (f)
Rhode Island Health & Education Building
Corp. Hospital Funding RB (Johnson &
Wales University Project)
3.16%, 04/01/00 4,460 4,605
----------
SOUTH CAROLINA -- 0.1% (f)
Clemson University, South Carolina
University RB Series 1998A
3.25%, 05/01/00 2,340 2,350
South Carolina Transportation
Infrastructure RB Series 1998A
3.82%, 10/01/00 5,255 5,291
----------
7,641
----------
SOUTH DAKOTA -- 0.4%
South Dakota HDA Homeownership
Mortgage RB Series 1999F
3.45%, 07/07/00 23,000 23,000
South Dakota HDA Homeownership
Mortgage RB Series 1999I
3.85%, 09/28/00 11,500 11,500
----------
34,500
----------
54
<PAGE>
Par Value
-------- ----------
TEXAS -- 0.1%
Austin, Texas Utilities System RB
Series 1985A (f)
3.50%, 05/15/00 $ 1,350 $ 1,379
Fort Worth, Texas Water & Sewer
Refunding Improvement RB
3.05%, 02/15/00 2,110 2,115
Houston, Texas Community College
System Student Fee RB (f)
3.41%, 04/15/00 1,590 1,597
San Antonio, Texas Water Revenue
Refunding Bonds (f)
3.25%, 05/15/00 2,575 2,600
Texas Tech University, Texas Board of
Regents (f)
3.13%, 02/15/00 1,740 1,742
University of Texas University Revenue
Refunding Bonds Series 1991A
3.50%, 08/15/00 2,000 2,035
----------
11,468
----------
UTAH -- 0.1%
Utah State Board of Regents Student Loan
RB Series 1998H
3.60%, 05/01/00 4,000 4,004
----------
VIRGINIA -- 0.1%
Chesapeake Bay Bridge & Tunnel
Commission, Virginia District RB (f)
4.00%, 07/01/00 2,000 2,011
Hampton Roads Sanitation District,
Virginia Wastewater Capital
Improvement Revenue Refunding Bonds
3.95%, 10/01/00 5,000 5,012
----------
7,023
----------
WASHINGTON -- 0.7%
Washington State Housing Finance
Commission S/F Housing Program RB
Series 1A-S
3.00%, 02/01/00 1,645 1,645
Washington State Housing Finance
Commission S/F Housing Program RB
Series 1N-S
2.95%, 02/01/00 5,130 5,130
Par Value
-------- ----------
Washington State Housing Finance
Commission S/F Housing Program RB
Series 2A-S
3.15%, 05/01/00 $ 8,825 $ 8,825
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project No. 2) Series 1990B (f)
1.20%, 07/01/00 31,240 32,334
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project No. 2) Series 1990C
4.20%, 07/01/00 5,610 5,695
Washington State Public Power Supply
System Revenue Refunding Bonds
(Nuclear Project No. 2) Series 1997A
4.00%, 07/01/00 2,000 2,010
----------
55,639
----------
WISCONSIN -- 0.1%
Wisconsin Housing & Economic
Development Authority Home
Ownership RB Series 1999I
3.55%, 08/15/00 6,000 6,000
----------
TOTAL REVENUE BONDS
(Cost $315,502) 315,502
----------
FIXED RATE TENDER OPTION BONDS -- 3.1% (c)(e)
CONNECTICUT -- 0.2% (f)
Connecticut HFA Housing Mortgage
Finance Program TOB Series 1998T
3.65%, 03/16/00 12,995 12,995
----------
GEORGIA -- 0.1% (f)
Cherokee County, Georgia Water & Sewer
Authority TOBP (PT-266)
3.30%, 05/11/00 8,395 8,395
----------
HAWAII -- 0.2% (f)
Hawaii State Airport System RB TOB
Series 1991-2
3.55%, 06/01/00 14,765 14,765
----------
INDIANA -- 0.1% (f)
Indiana State Housing TOB Series 1999A
5.01%, 01/06/00 9,995 9,995
----------
55
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
MARYLAND -- 0.1% (f)
Maryland State Administration
Department Housing &
Community Development TOBP
(PA-478R)
3.65%, 02/24/00 $ 9,290 $ 9,290
----------
NEBRASKA -- 0.1%
Nebraska Public Power District RB TOBP
(PT-1176) Series 1998B
3.60%, 02/10/00 9,050 9,050
----------
NEW JERSEY -- 0.4% (f)
New Jersey State Building Authority TOB
Series 1997
3.65%, 02/03/00 1,000 1,000
New Jersey State Housing & Mortgage
Finance Agency Revenue TOBP
(PT-285)
3.80%, 08/10/00 6,895 6,895
New Jersey State Housing & Mortgage
Finance Agency Revenue TOBP
(PT-1182) Series 1999
3.75%, 09/14/00 22,745 22,745
----------
30,640
----------
NEW YORK -- 0.2% (f)
Long Island, New York Power Authority
Electrical Systems RB TOB
Series 1998A
3.47%, 02/07/00 12,870 12,870
----------
PENNSYLVANIA -- 0.7% (f)
Pennsylvania HFA S/F Mortgage RB TOBP
( PT-119A) Series 1997
3.45%, 03/09/00 19,090 19,090
Pennsylvania HFA S/F Mortgage RB TOBP
(PT-278) Series 1999-66A
3.59%, 04/06/00 14,355 14,355
Pennsylvania HFA TOB Series 1998Y
4.86%, 01/06/00 12,395 12,395
Philadelphia, Pennsylvania IDA Airport RB
TOB Series 1998A
3.62%, 07/20/00 15,000 15,000
----------
60,840
----------
Par Value
-------- ----------
TEXAS -- 0.4% (f)
Houston, Texas GO TOB
3.45%, 02/01/00 $ 21,655 $ 21,655
Texas Department of Housing &
Community Affairs Residential Meeting
RB TOB Series 1999C
5.01%, 01/06/00 14,995 14,995
----------
36,650
----------
UTAH -- 0.5% (f)
Intermountain Power Agency, Utah Power
Supply TOB Series 1996C
3.85%, 07/01/00 5,000 5,052
Utah Board of Regents TOB
3.25%, 02/08/00 30,060 30,060
Utah Building RB TOB
3.75%, 01/26/00 9,695 9,695
----------
44,807
----------
WASHINGTON -- 0.1% (f)
Seattle Washington TOBP (PT-1167)
3.60%, 07/20/00 6,740 6,740
----------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $257,037) 257,037
----------
OPTIONAL PUT BONDS -- 1.3% (c)(f)
CALIFORNIA -- 0.2%
California Higher Education Loan
Authority Student Loan RB Put Bond
Series 1992D1
3.45%, 04/01/00 18,100 18,100
----------
MONTANA -- 0.4%
Montana State Board of Investments
Resource Recovery RB
(Colstrip Project)
3.25%, 05/31/00 35,000 35,000
----------
TEXAS -- 0.7%
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
3.85%, 09/01/00 14,400 14,400
56
<PAGE>
Par Value
-------- ----------
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
3.50%, 07/01/00 10,000 10,000
----------
54,375
----------
TOTAL OPTIONAL PUT BONDS
(Cost $107,475) 107,475
----------
GENERAL OBLIGATIONS -- 1.2% (c)
ALABAMA -- 0.1%
Alabama State GO Series 1999A
3.90%, 10/01/00 9,000 9,100
Talladega County, Alabama GO (f)
3.10%, 03/01/00 1,100 1,101
----------
10,201
----------
ARIZONA -- 0.1% (f)
Glendale, Arizona Refunding GO Bonds
3.25%, 07/01/00 4,000 4,030
----------
CALIFORNIA -- 0.2%
California State GO
3.45%, 10/01/00 15,130 15,301
----------
FLORIDA -- 0.1%
Dade County, Florida GO Series 1979I
3.80%, 07/01/00 2,000 2,030
Florida State Board of Education Capital
Outlay GO Series 1989A (f)
3.41%, 06/01/00 2,095 2,169
----------
4,199
----------
MAINE -- 0.0%
Maine State Highway Improvement GO
3.22%, 06/15/00 1,690 1,700
----------
MASSACHUSETTS -- 0.1% (f)
Palmer, Massachusettes GO
3.20%, 03/01/00 4,500 4,619
----------
MICHIGAN -- 0.2%
Detroit, Michigan City School District GO
3.20%, 06/01/00 20,000 20,064
----------
Par Value
-------- ----------
NEW JERSEY -- 0.0%
Bergen County, New Jersey GO
3.45%, 08/01/00 $ 1,500 $ 1,509
Passaic Valley, New Jersey Sewer System
GO Series 1999E (f)
3.93%, 12/01/00 2,070 2,080
----------
3,589
----------
NEW YORK -- 0.1% (f)
Nassau County, New York General
Improvement GO Series 1999A
3.18%, 06/01/00 10,846 10,860
----------
SOUTH CAROLINA -- 0.2%
Greenville, South Carolina School
District GO
3.10%, 03/01/00 11,000 11,020
South Carolina State Highway Series
1999A GO
3.10%, 05/01/00 2,000 2,009
----------
13,029
----------
UTAH -- 0.0%
Davis County, Utah School District GO
3.25%, 06/01/00 1,425 1,431
----------
VIRGINIA -- 0.0%
Fairfax County, Virginia Public
Improvement GO Series 1999B
4.00%, 12/01/00 2,330 2,340
----------
WASHINGTON -- 0.1%
Seattle, Washington GO
3.12%, 03/01/00 2,705 2,711
Washington State GO Series 1992B
3.40%, 06/01/00 2,000 2,017
----------
4,728
----------
TOTAL GENERAL OBLIGATIONS
(Cost $96,091) 96,091
----------
BOND ANTICIPATION NOTES -- 1.1% (c)
KANSAS -- 0.2%
Olathe, Kansas Temporary BAN
Series 1999A
3.15%, 06/01/00 20,475 20,504
----------
57
<PAGE>
SCHWAB MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
NEW JERSEY -- 0.8%
East Brunswick Township, New Jersey BAN
3.25%, 06/15/00 $ 4,400 $ 4,410
East Brunswick Township, New
Jersey BAN (d)
3.87%, 01/05/01 16,800 16,869
Jersey City, New Jersey BAN
3.80%, 09/15/00 8,370 8,396
Jersey City, New Jersey School
Promissory BAN
3.00%, 03/03/00 10,000 10,008
Passaic County, New Jersey BAN
3.24%, 06/15/00 8,600 8,610
3.80%, 09/22/00 15,903 15,939
Trenton, New Jersey Temporary BAN
3.79%, 10/20/00 3,800 3,813
----------
68,045
----------
NEW YORK -- 0.1%
West Seneca, New York BAN
3.10%, 04/06/00 4,990 4,994
----------
TOTAL BOND ANTICIPATION NOTES
(Cost $93,543) 93,543
----------
TAX ANTICIPATION NOTES -- 0.4% (c)
IDAHO -- 0.3%
Idaho State TAN
3.40%, 06/30/00 25,000 25,101
----------
WASHINGTON -- 0.1%
King County, Washington Limited Tax
GO & Refunding Bonds TAN
Series 1999
3.20%, 06/01/00 9,000 9,011
----------
TOTAL TAX ANTICIPATION NOTES
(Cost $34,112) 34,112
----------
TAX ALLOCATION BONDS -- 0.1% (c)(f)
CALIFORNIA -- 0.1%
Santa Ana, California Community
Redevelopment Agency Tax
Allocation Bond (Santa Ana
Redevelopment Project Area)
Series 1985B
3.92%, 12/15/00 6,060 6,321
----------
TOTAL TAX ALLOCATION BONDS
(Cost $6,321) 6,321
----------
Par Value
-------- ----------
REVENUE ANTICIPATION NOTES -- 0.1% (c)
FLORIDA -- 0.1%
Brevard County, Florida School
Board RAN
3.10%, 05/06/00 $ 5,000 $ 5,007
----------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $5,007) 5,007
----------
CERTIFICATES OF PARTICIPATION -- 0.0% (c)(f)
SOUTH CAROLINA -- 0.0%
Florence County, South Carolina Public
Facilities Corp. COP (Law Enforcement
Civic Center Project)
2.98%, 03/01/00 1,500 1,526
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $1,526) 1,526
----------
OTHER INVESTMENT COMPANIES -- 0.0% (g)
Provident Institutional Funds - Muni
Fund Portfolio
3.87% 3,749 3,749
----------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $3,749) 3,749
----------
TOTAL INVESTMENTS -- 99.2%
(Cost $8,290,042) 8,290,042
----------
OTHER ASSETS AND LIABILITIES-- 0.8%
Other assets 111,592
Liabilities (40,771)
----------
70,821
----------
TOTAL NET ASSETS-- 100.0% $8,360,863
==========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
58
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
December 31, 1999
Par Value
-------- ----------
VARIABLE RATE OBLIGATIONS -- 42.8% (b)(f)
CALIFORNIA -- 42.6%
ABAG Financing Authority for Non-Profit
Corporations M/F RB (Architect Building
Project)
5.25%, 01/07/00 $ 3,200 $ 3,200
ABAG Financing Authority for Non-Profit
Organizations COP (Bentley School)
4.50%, 01/07/00 5,230 5,230
ABAG Financing Authority for Non-Profit
Organizations COP (Harker School Project)
5.05%, 01/07/00 5,500 5,500
ABAG Financing Authority for Non-Profit
Organizations COP (Lucile Salter
Packard Project)
5.00%, 01/07/00 4,900 4,900
ABAG Financing Authority M/F Housing
(Vintage Chateau)
5.40%, 01/05/00 11,000 11,000
ABAG Financing Authority M/F Housing RB
(Mountain View Apartments) Series 1997A
5.00%, 01/07/00 3,370 3,370
Alameda County, California IDA RB
(Malmberg Engineering, Inc. Project)
5.30%, 01/07/00 3,000 3,000
Alameda County, California IDRB
(Aitchison Family Project) Series 1993A
5.25%, 01/07/00 2,760 2,760
Alameda County, California IDRB
(Association Heat & Control Project)
5.25%, 01/07/00 810 810
Alameda County, California IDRB
(JMS Family Partners) Series A
5.25%, 01/05/00 1,400 1,400
Alameda County, California IDRB
(Scientific Technology Project)
Series 1994A
5.30%, 01/07/00 2,640 2,640
Alameda-Contra Costa, California School
Financial Authority COP (Capital
Improvement Finance Project)
4.70%, 01/07/00 215 215
Anaheim, California COP (Anaheim
Memorial Hospital Assoc. Project)
4.85%, 01/07/00 1,970 1,970
Par Value
-------- ----------
Anaheim, California COP (Police Facility
Financing Project)
4.85%, 01/07/00 $ 700 $ 700
Anaheim, California Housing Authority
M/F Housing RB (Casa Grande
Apartments) Series 1997A
4.95%, 01/07/00 3,795 3,795
Anaheim, California Housing Authority
M/F Housing RB (Port Trinidad
Apartments) Series 1997C
4.95%, 01/07/00 2,140 2,140
Anaheim, California Housing Authority
M/F Housing RB (Sage Park Project)
Series A
5.00%, 01/06/00 2,000 2,000
Anaheim, California Union High School
District COP
5.00%, 01/07/00 5,500 5,500
Auburn, California Unified School
District COP
5.10%, 01/07/00 10,750 10,750
Avalon, California Community
Improvement Agency Tax Allocation RB
5.30%, 01/07/00 9,805 9,805
Burbank, California Redevelopment Agency
M/F Housing RB
3.90%, 01/04/00 6,800 6,800
California Alternative Energy Source
Financing Authority (GE Capital Corp.
Arroyo Project) Series A
4.95%, 01/05/00 25,330 25,330
California Alternative Energy Source
Financing Authority (GE Capital Corp.
Arroyo Project) Series 1993B
5.05%, 01/07/00 12,260 12,260
California Eastern Water Municipal District
Water & Sewer RB COP Series 1993B
4.90%, 01/07/00 41,485 41,485
California Economic Development
Financing Authority (Lion Raisin Project)
4.50%, 01/06/00 2,000 2,000
California Education Facilities Authority
(Life Chiropractic College West)
5.10%, 01/07/00 5,000 5,000
California Education Facilities Authority
(Stanford University Project) Series L-6
4.90%, 01/07/00 9,315 9,315
59
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
California Education Facilities Authority
(University of Judaism Project) Series A
4.80%, 01/07/00 $ 5,500 $ 5,500
California Finance Authority Pollution
Control RB (Pacific Gas & Electric
Company)
4.40%, 01/01/00 4,000 4,000
California Health Facilities Financing
Authority RB (California Prebyterian
Homes) Series 1998
5.05%, 01/07/00 31,515 31,515
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1988B
5.00%, 01/07/00 14,900 14,900
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series 1988C
5.00%, 01/07/00 18,300 18,300
California Health Facilities Financing
Authority RB (Catholic Health Care)
Series A
5.00%, 01/07/00 26,000 26,000
California Health Facilities Financing
Authority RB (Children's Hospital Project)
Series 1991
4.90%, 01/07/00 17,700 17,700
California Health Facilities Financing
Authority RB (Scripps Memorial Hospital)
Series 1991B
4.95%, 01/07/00 400 400
California HFA Home Mortgage RB
Series 1999J-1
5.00%, 01/07/00 16,300 16,300
California HFA Home Mortgage RB
Series 1999J-2
5.00%, 01/07/00 31,000 31,000
California Infrastructure & Economic
Development Bank IDRB (American
Derosa-Lamparts)
5.30%, 01/07/00 4,950 4,950
California Infrastructure & Economic
Development Bank IDRB (Bonded
Motors Inc. Project)
5.30%, 01/07/00 5,130 5,130
Par Value
-------- ----------
California Infrastructure & Economic
Development Bank IDRB (Lafayette
Textile Industries Project)
5.25%, 01/07/00 $ 4,000 $ 4,000
California Infrastructure & Economic
Development Bank IDRB (Nelson Name
Plate Co. Project)
4.55%, 01/07/00 3,950 3,950
California Infrastructure & Economic
Development Bank IDRB (Roller Bearing
Co. of America Santa Ana Project)
5.30%, 01/07/00 2,400 2,400
California Pollution Control Financing
Authority RB (Green Team of San Jose
Project)
5.10%, 01/07/00 3,600 3,600
California Pollution Control Financing
Authority RB (Pacific Gas & Electric Co.
Project) Series 1996B
5.25%, 01/07/00 61,200 61,200
California Pollution Control Financing
Authority RB (Pacific Gas & Electric Co.
Project) Series 1996E
4.05%, 01/01/00 5,000 5,000
California Pollution Control Financing
Authority RB (Pacific Gas & Electric Co.
Project) Series A
5.00%, 01/07/00 68,500 68,500
California Pollution Control Financing
Authority RB (Pacific Gas & Electric Co.
Project) Series D
5.15%, 01/05/00 11,400 11,400
California Pollution Control Financing
Authority RB (Reynolds Metals Co. Project)
Series 1985
4.50%, 01/07/00 1,300 1,300
California Pollution Control Financing
Authority RB (Shell Oil Co. Project)
Series 1991A
4.20%, 01/01/00 1,000 1,000
California Pollution Control Financing
Authority Resource Recovery RB (Sanger
Project) Series 1990A
4.95%, 01/07/00 2,800 2,800
60
<PAGE>
Par Value
-------- ----------
California Pollution Control Financing
Authority Resource Recovery Solid Waste
Disposal RB (Atlas Disposal Industrial
Project) Series 1999A
5.15%, 01/07/00 $ 3,000 $ 3,000
California Pollution Control Financing
Authority Resource Recovery Solid Waste
Disposal RB (Bay Leasing, Inc. Project)
Series 1999A
5.10%, 01/07/00 10,000 10,000
California Pollution Control Financing
Authority Revenue Refunding Bonds
(Shell Oil Co. Project) Series 1991A
4.20%, 01/01/00 600 600
California Pollution Control Financing
Authority Revenue Refunding Bonds
(Shell Oil Co. Project) Series 1991B
4.20%, 01/01/00 1,000 1,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Allan Co. Project)
5.10%, 01/07/00 1,100 1,100
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Athens Disposal Co. Project) Series 1995A
5.10%, 01/07/00 18,260 18,260
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Athens Disposal Co. Project) Series 1999A
5.10%, 01/07/00 8,000 8,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(BLT Enterprises Project) Series 1995A
5.10%, 01/05/00 4,200 4,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(BLT Enterprises Project) Series 1999A
5.10%, 01/07/00 9,000 9,000
California Pollution Control Financing
Authority Solid Waste Disposal RB (Blue
Line Transfer Inc. Project)
5.10%, 01/07/00 5,000 5,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Burrtec Waste Industries Project)
Series 1995A
5.15%, 01/05/00 1,770 1,770
5.15%, 01/07/00 1,930 1,930
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Cold Cyn Landfill Project)
5.10%, 01/05/00 $ 7,200 $ 7,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Colmac Energy Project) Series 1990A
4.95%, 01/07/00 26,000 26,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Contra Costa Services) Series 1995A
5.10%, 01/07/00 3,600 3,600
California Pollution Control Financing
Authority Solid Waste Disposal RB (Edco
Disposal Corp. Project) Series 1996A
5.10%, 01/01/00 17,100 17,100
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Madera Disposable Project) Series A
5.15%, 01/05/00 1,800 1,800
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Santa Clara Project)
5.10%, 01/05/00 11,100 11,100
5.15%, 01/07/00 4,300 4,300
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Co. Martinez Project)
Series 1994A
4.40%, 01/01/00 5,000 5,000
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Shell Oil Co. Martinez Project)
Series 1996B
4.40%, 01/07/00 7,600 7,600
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Solag Disposal Project) Series 1997A
5.10%, 01/07/00 3,470 3,470
California Pollution Control Financing
Authority Solid Waste Disposal RB (Sun
Valley Paper Project)
5.10%, 01/05/00 1,350 1,350
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Talco Plastics Project) Series 1997A
5.25%, 01/07/00 4,225 4,225
61
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Taormina Industries, Inc. Project)
Series 1994B
4.50%, 01/07/00 $ 2,225 $ 2,225
California Pollution Control Financing
Authority Solid Waste Disposal RB
(Tri Community Recycle Project)
5.30%, 01/05/00 2,455 2,455
California Pollution Control Financing
Authority Solid Waste Disposal RB
(West Valley Project) Series 1997A
5.15%, 01/07/00 9,200 9,200
California Pollution Control Financing
Authority Solid Waste Disposal RB
5.10%, 01/07/00 5,235 5,235
6.10%, 01/07/00 3,970 3,970
California Pollution Control Financing
Authority Solid Waste Disposal RB Series A
5.10%, 01/05/00 10,000 10,000
California Public Power Agency Subordinate
Lien (San Juan Project) Series 1997D
5.10%, 01/07/00 2,500 2,500
California School Faciliities Financing
Corp. COP (Capital Improvement
Financing Project) Series 1999D
4.35%, 01/07/00 11,215 11,215
California State Economic Development
Financing Authority (Mannesmann
Dematic Corp.)
5.50%, 01/06/00 3,200 3,200
California State Economic Development
Financing Authority IDRB (Calco Project)
5.30%, 01/07/00 885 885
California State Economic Development
Financing Authority IDRB (Gaiser Tool
Project)
5.25%, 01/07/00 2,925 2,925
California State Economic Development
Financing Authority IDRB (Mercury
Air Group)
4.50%, 01/06/00 16,800 16,800
California State Economic Development
Financing Authority RB (Buck Center for
Aging Project)
4.90%, 01/07/00 50,300 50,300
Par Value
-------- ----------
California State Economic Development
Financing Authority RB (Costa
Macoroni Project)
5.25%, 01/07/00 $ 3,495 $ 3,495
California State Economic Development
Financing Authority RB (Killion
Industry's Project)
5.80%, 01/07/00 6,500 6,500
California Statewide Community
Development Authority (Davis
Retirement Care)
4.25%, 01/01/00 500 500
California Statewide Community
Development Authority (Dr. Nichols
Pistachio) Series C
4.55%, 01/06/00 900 900
California Statewide Community
Development Authority COP (Northern
California Retired Officers)
4.35%, 01/01/00 2,700 2,700
California Statewide Community
Development Authority COP
5.15%, 01/07/00 2,485 2,485
California Statewide Community
Development Authority IDRB (Biocol
Investments LP) Series 1997B
5.05%, 01/07/00 1,500 1,500
California Statewide Community
Development Authority IDRB (Integrated
Rolling Co. Project) Series 1999A
4.55%, 01/07/00 2,900 2,900
California Statewide Community
Development Authority M/F Housing RB
(Kimberly Woods Project) Series 1995B
5.05%, 01/07/00 11,400 11,400
California Statewide Community
Development Authority M/F Housing RB
(One Park Place)
5.25%, 01/07/00 2,038 2,038
California Statewide Community
Development Authority M/F Housing RB
(Park David Senior Apartments Project)
Series 1999D
5.00%, 01/06/00 8,220 8,220
California Statewide Community
Development Authority M/F Housing RB
(Plaza Club Apartments) Series 1997A
5.00%, 01/07/00 9,790 9,790
62
<PAGE>
Par Value
-------- ----------
California Statewide Community
Development Authority Revenue
Refunding COP (St. Joseph Health System)
5.00%, 01/01/00 $ 8,950 $ 8,950
California Statewide Community
Development Corp. IDRB (13th I
Associates Project)
5.05%, 01/07/00 5,040 5,040
California Statewide Community
Development Corp. IDRB (Agricultural
Products, Inc. Project)
5.05%, 01/07/00 1,360 1,360
California Statewide Community
Development Corp. IDRB (Cowden Metal
Stamping Project)
5.05%, 01/07/00 1,940 1,940
California Statewide Community
Development Corp. IDRB (Drip In
Irrigation Co. Project)
5.50%, 01/05/00 3,600 3,600
California Statewide Community
Development Corp. IDRB (Flambeau
Airmold Project)
5.50%, 01/07/00 2,550 2,550
California Statewide Community
Development Corp. IDRB (Industrial
Dynamics Co. Project)
5.05%, 01/07/00 4,110 4,110
California Statewide Community
Development Corp. IDRB (Pacific Handy
Cutter Products Project)
5.05%, 01/07/00 590 590
California Statewide Community
Development Corp. IDRB (The Diamond
Foods Project) Series 1991
5.05%, 01/07/00 1,165 1,165
California Statewide Community
Development Corp. IDRB Series 1998C
5.50%, 01/05/00 2,175 2,175
California Statewide Community Industrial
Development Revenue Refunding Bonds
(Golden Valley Project) Series A
5.50%, 01/05/00 1,890 1,890
California Statewide M/F Housing Authority
RB (Woodsong Apartments) Series 1997B
4.95%, 01/07/00 3,427 3,427
Par Value
-------- ----------
Carlsbad, California M/F Housing Revenue
Refunding Bonds COP (La Costa
Apartment Project) Series 1993A
5.05%, 01/07/00 $11,720 $ 11,720
Chula Vista, California IDRB (San Diego
Gas & Electric Co.) Series 1993A
5.10%, 01/05/00 11,800 11,800
Concord, California M/F Housing Authority
RB (California Hill Apartments)
Series 1989A
5.40%, 01/07/00 6,750 6,750
Concord, California M/F Housing Mortgage
RB (Bel Air Apartments Project)
Series 1986A
4.50%, 01/07/00 3,000 3,000
Contra Costa County, California M/F
Housing Mortgage RB (El Cerrito Project)
Series A
4.50%, 01/07/00 980 980
Duarte, California Redevelopment Agency
COP (Johnson Duarte Partners Project)
Series 1984B
4.90%, 01/07/00 1,500 1,500
Duarte, California Redevelopment Agency
COP (Piken Duarte Partners Project)
Series 1984A
4.90%, 01/07/00 4,050 4,050
Dublin, California Housing Authority M/F
Housing RB (Park Siera Project) Series A
5.00%, 01/05/00 12,700 12,700
El Cajon, California M/F Housing RB
(Pinewood Apartments Project)
5.00%, 01/07/00 1,450 1,450
El Cajon, California Redevelopment
M/F Housing RB (Mollison & Madison
Project)
5.00%, 01/06/00 5,400 5,400
Encinitas, California M/F Housing Revenue
Refunding Bonds (Torrey Pines Project)
Series A
5.00%, 01/07/00 8,100 8,100
Fremont, California M/F Housing Revenue
Refunding COP (Amber Court Apartments
Project) Series 1990A
5.00%, 01/07/00 10,000 10,000
Fresno, California IDA (Keiser Corp.)
5.30%, 01/07/00 2,215 2,215
63
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
Hayward, California Housing Authority M/F
RB (Huntwood Terrace Apartments)
5.00%, 01/07/00 $ 5,565 $ 5,565
Hayward, California M/F Housing RB
(Shorewood Apartment Project) Series A
4.90%, 01/07/00 9,100 9,100
Hayward, California M/F Housing RB
(Timbers Apartments Project) Series A
5.10%, 01/05/00 7,500 7,500
Hillsborough, California COP (Water & Sewer
System Project) Series 1995A
4.15%, 01/30/00 955 955
Huntington Beach, California M/F Housing
RB (Five Points Project)
5.00%, 01/07/00 6,400 6,400
Huntington Park, California Redevelopment
Agency M/F RB (Casa Rita Apartments)
Series 1994A
5.00%, 01/07/00 4,100 4,100
Indio, California M/F Redevelopment Bonds
Refunding Housing Mortgages (Carreon
Apartments Project ) Series 1996A
4.90%, 01/07/00 3,950 3,950
Irvine Ranch, California Improvement Bond
Act 1915 RB (Assesment District No. 87-8)
4.20%, 01/01/00 7,000 7,000
Irvine Ranch, California Improvement
Bond Act 1915 RB (Assessment District)
4.20%, 01/01/00 3,100 3,100
5.15%, 01/07/00 1,900 1,900
Irvine Ranch, California Water District
Consolidated GO Revenue Refunding
Bonds Series 1985B
4.00%, 01/01/00 1,200 1,200
Irvine Ranch, California Water District
Consolidated RB (Districts 140, 240,
105, 250)
4.20%, 01/01/00 3,600 3,600
Irvine Ranch, California Water District GO
(Districts 105, 140, 240 & 250) Series1995
4.30%, 01/01/00 100 100
Irvine Ranch, California Water District
Improvement Bond Limited
Obligation No. 97-17
4.20%, 01/01/00 3,869 3,869
Kern County, California COP (Kern Public
Facilities Project) Series A
5.00%, 01/07/00 4,400 4,400
Par Value
-------- ----------
Livermore, California M/F Housing Revenue
Refunding Bonds (Arbors Apartment
Project) Series 1991A
4.75%, 01/07/00 $ 9,005 $ 9,005
Long Beach, California Housing Authority
M/F Housing RB (Channel Point
Apartments Project)
4.90%, 01/07/00 6,250 6,250
Los Angeles, California Community
Redevelopment Agency (Grand
Promenade Project)
4.40%, 01/07/00 100 100
Los Angeles, California Community
Redevelopment Agency COP (Broadway
Springs Center Project) Series 1987
5.05%, 01/07/00 11,100 11,100
Los Angeles, California M/F Housing RB
(Beverly Park Apartments)
4.35%, 01/07/00 24,400 24,400
Los Angeles, California M/F Housing RB
(Lucas Studios Project) Series 1991D
5.30%, 01/07/00 6,655 6,655
Los Angeles, California M/F Housing RB
(Studio Colony) Series 1985C
4.95%, 01/06/00 17,060 17,060
Los Angeles, California M/F Housing RB
Series 1985K
3.75%, 01/07/00 32,685 32,685
Los Angeles County, California COP ACES
(Los Angeles County Museum of Art
Project) Series 1985A
4.75%, 01/07/00 2,600 2,600
Los Angeles County, California COP ACES
(Los Angeles County Museum of Art
Project) Series 1985B
4.75%, 01/07/00 3,000 3,000
Los Angeles County, California Housing
Authority M/F RB (Malibu Canyon
Apartments Project) Series B
3.70%, 01/07/00 43,400 43,400
Los Angeles County, California Housing
Authority M/F RB (Park Sierra Project)
4.85%, 01/07/00 30,500 30,500
Los Angeles County, California M/F Housing
RB (Channel Gateway Apartments)
4.50%, 01/07/00 55,000 55,000
64
<PAGE>
Par Value
-------- ----------
Los Angeles County, California Metropolitan
Transportation Authority Revenue
Refunding Bonds Series 1993A
4.90%, 01/07/00 $ 30,490 $ 30,490
Los Angeles County, California Pension
Revenue Refunding Bond Series 1996A
4.85%, 01/07/00 17,300 17,300
Los Angeles County, California
Transportation Commission Sales Tax RB
Series 1992A
4.85%, 01/07/00 16,300 16,300
Madera, California Public Financing
Municipal Golf Course Revenue
Refinancing Authority
5.15%, 01/07/00 1,950 1,950
Metropolitan Water District of Southern
California Revenue Refunding Bonds
Series 1996A
4.90%, 01/07/00 54,765 54,765
Mount San Jacinto, California Winter Park
Authority (Palm Springs Aerial Project)
4.80%, 01/06/00 8,700 8,700
Oakland, California Financing Authority
Lease RB (JT Powers Project) Series A-2
4.70%, 01/07/00 28,800 28,800
Orange County, California Apartment
Development RB ( Villas Aliento)
Series 1998E
4.90%, 01/07/00 6,500 6,500
Orange County, California Apartment
Development RB Series 1985V
5.05%, 01/07/00 18,000 18,000
Orange County, California Apartment
Development RB Series 1998G
4.90%, 01/07/00 5,000 5,000
Orange County, California Apartment
Development RB Series F
4.90%, 01/06/00 11,000 11,000
Orange County, California Apartment
Development RB Series G-3
4.90%, 01/06/00 28,000 28,000
Orange County, California Apartment
Development Revenue Refunding Bonds
(Jess L. Frost Project) Series 1985B
4.95%, 01/07/00 10,200 10,200
Par Value
-------- ----------
Orange County, California Apartment
Development Revenue Refunding Bonds
(The Lakes Project #185) Series 1991A
4.90%, 01/07/00 $ 41,300 $ 41,300
Orange County, California COP (Florence
Crittenton Services Project) Series 1990
5.25%, 01/07/00 6,100 6,100
Orange County, California Housing M/F RB
(Lantern Pines Project)
4.40%, 01/05/00 2,200 2,200
Orange County, California Sanitation
District COP (Districts 1, 2, 3, 5,
6, 7, 11, 13 & 14)
4.20%, 01/01/00 1,400 1,400
Orange County, California Sanitation
District COP (Sanitation Districts
1, 2, 3, 5, 6, 7 & 11) Series 1992C
4.90%, 01/07/00 43,860 43,860
Panama Buena Vista, California Unified
School District COP (1994 Capital
Improvement Financing Project)
5.75%, 01/07/00 4,000 4,000
Petaluma, California Community M/F
Housing Authority (Oakmont At
Petaluma Project)
5.35%, 01/07/00 3,550 3,550
Pinole, California Redevelopment Agency
M/F Housing RB (East Bluff Apartments
Project)
5.00%, 01/06/00 2,559 2,559
Pleasant Hill, California M/F Housing RB
(Brookside Apartments Project)
5.00%, 01/07/00 5,100 5,100
Pleasant Hill, California Redevelopment
Agency M/F Housing (Chateau III Project)
Series A
5.25%, 01/06/00 2,360 2,360
Redwood City, California COP (City Hall
Project)
4.75%, 01/06/00 2,400 2,400
Riverside County, California Community
Facilities District #88-4 (Winchester Ranch)
5.05%, 01/07/00 18,100 18,100
Riverside County, California COP ACES
Public Facilities Series 1985B
3.75%, 01/07/00 13,500 13,500
65
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
Riverside County, California Housing
Authority M/F RB (Tyler Springs
Apartments) Series 1999C
4.90%, 01/07/00 $ 4,750 $ 4,750
Riverside County, California Housing
Authority M/F RB (Briarwood Apartment
Project) Series 1985C
4.95%, 01/07/00 4,500 4,500
Riverside County, California Housing
Authority M/F RB (Victoria Springs
Apartments Project)
5.00%, 01/05/00 9,600 9,600
Riverside County, California IDA RB
(Calmold Inc. Project)
5.40%, 01/07/00 3,650 3,650
Riverside County, California IDA RB
(Cryogenic Project) Series B
4.95%, 01/07/00 4,100 4,100
Riverside County, California M/F Housing
RB (Ambergate Apartments) Series1992A
4.15%, 01/07/00 2,900 2,900
Sacramento County, California COP
(Administration Center & Court House
Project)
4.70%, 01/07/00 8,500 8,500
Sacramento County, California Housing
Authority (Oakland Valley Apartments
Project) Series E
5.00%, 01/06/00 4,000 4,000
Sacramento County, California Housing
Authority (Sun Valley Apartments Project)
Series F
5.00%, 01/06/00 3,750 3,750
Sacramento County, California Housing
Authority M/F Housing RB (Chesapeake
Commons Project) Series 1997A
5.00%, 01/07/00 28,000 28,000
Sacramento County, California Housing
Authority M/F Housing RB (Hidden Oaks
Apartments) Series 1999C
5.00%, 01/07/00 6,300 6,300
Sacramento County, California Special
Facilities (Recessna Aircraft Corp. Project)
5.30%, 01/06/00 3,700 3,700
Salinas, California Apartment Development
M/F Housing RB (Mariner Villa Project)
Series 1985B
4.40%, 01/07/00 2,825 2,825
Par Value
-------- ----------
San Bernardino County, California COP
(Glen Helen Blockbuster Pavilion Project)
Series 1994C
5.05%, 01/07/00 $ 6,695 $ 6,695
San Bernardino County, California COP
(Medical Center Financing Project)
4.95%, 01/05/00 15,910 15,910
San Diego, California Housing Authority
M/F Mortgage RB (Creekside Villa)
Series 1999B
5.00%, 01/07/00 6,000 6,000
San Diego, California Housing Authority
M/F Mortgage RB (La Cima) Series 1999K
4.85%, 01/07/00 33,640 33,640
San Diego, California Housing Authority
M/F Mortgage RB (Nobel Courts)
Series 1999L
4.85%, 01/07/00 33,915 33,915
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(3rd & Mission) Series 1999C
5.05%, 01/07/00 28,000 28,000
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(Fillmore Center Project) Series A1
4.95%, 01/07/00 29,000 29,000
San Francisco, California City & County
Redevelopment Agency M/F Housing RB
(Fillmore Center Project) Series A2
5.00%, 01/07/00 3,750 3,750
San Francisco, California Housing Authority
M/F Housing RB (Magnolia Plaza Project)
Series A
5.05%, 01/07/00 5,500 5,500
San Jose, California M/F Housing RB
(Almaden Lake Apartments Project)
Series 1997A
5.10%, 01/07/00 6,500 6,500
San Jose, California M/F Housing RB
(Carlton Plaza Project) Series A
5.15%, 01/06/00 5,000 5,000
San Jose, California M/F Housing RB
(Seinna at Renaissance Project)
Series 1996A
5.10%, 01/07/00 20,000 20,000
San Jose, California Redevelopment Agency
RB (Merged Area Redevelopment Project)
4.20%, 01/07/00 5,000 5,000
66
<PAGE>
Par Value
-------- ----------
San Jose, California Redevelopment M/F
Housing (101 San Fernando Apartments
Project) Series A
4.50%, 01/05/00 $ 28,000 $ 28,000
San Leandro, California M/F Housing RB
(Carlton Plaza Project) Series A
5.25%, 01/06/00 1,900 1,900
Santa Ana, California Unified School
District COP (Land Acquisition Project)
5.00%, 01/07/00 4,939 4,940
Santa Clara County, California Electric
Authority RB, Series C
3.30%, 01/07/00 21,400 21,400
Santa Clara County, California M/F Housing
Revenue Refunding Bonds (Brairwood
Apartments Project) Series 1996B
4.90%, 01/07/00 9,400 9,400
Santa Clara County, California M/F Housing
Revenue Refunding Bonds (Grove Garden
Apartments) Series 1997A
4.90%, 01/07/00 14,000 14,000
Santa Fe Springs, California IDA RB
3.65%, 01/30/00 4,000 4,000
Santa Paula, California Public Financing
Authority Lease Water System (Aquis
Project)
5.00%, 01/05/00 4,900 4,900
Santa Rosa, California M/F Housing RB
(Quail Run Apartments) Series 1997A
5.25%, 01/07/00 5,150 5,150
Southern California Public Power Authority
Revenue Refunding Bonds (Palos Verdes
Project) Series 1996B
4.85%, 01/05/00 4,470 4,470
Stockton, California Community Facility
District RB
5.05%, 01/07/00 2,085 2,085
Tulare Porterville, California School
Financing Authority
5.75%, 01/06/00 7,025 7,025
Union City, California M/F Housing RB
(Greenhaven Apartments Project)
Series1997A
4.90%, 01/07/00 10,975 10,975
Vallecitos, California Water District (Twin
Oaks Reservoir Project)
5.00%, 01/07/00 11,265 11,265
Par Value
-------- ----------
Victor Valley, California Community College
District COP
5.00%, 01/07/00 $ 53,450 $ 53,450
Vista, California IDA IDRB (Desalination
System Inc. Project)
5.25%, 01/07/00 6,950 6,950
West Basin, California Municipal Water
District RB COP (Phase III Recycled
Water) Series 1999A
4.80%, 01/05/00 5,000 5,000
West Sacramento, California Special Tax RB
(Community Facilities District #6)
5.05%, 01/07/00 4,250 4,250
Western Riverside County, California
Regional Wastewater Authority RB
(Regulatory Wastewater Treatment)
4.20%, 01/01/00 500 500
Westminster, California Agency Tax
Allocation (Community Redevelopment
Project)
4.75%, 01/07/00 9,710 9,710
Westminster, California COP (Civic Center
Project) Series A
4.75%, 01/07/00 4,380 4,380
Windsor, California M/F Housing RB
(Oakmont At Windsor Project)
5.65%, 01/06/00 600 600
----------
2,157,888
----------
PUERTO RICO -- 0.2%
Puerto Rico Commonwealth Highway &
Transportation Authority RB Series 1998A
5.00%, 01/07/00 7,600 7,600
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $2,165,488) 2,165,488
----------
TAX-EXEMPT COMMERCIAL PAPER -- 20.8% (c)
CALIFORNIA -- 16.8%
California Communtity College Financing
Authority TECP Series B
3.87%, 07/28/00 10,000 10,007
California Pollution Control Financing
Authority RB TECP (Southern California
Edison) Series 1985A
3.40%, 03/01/00 4,500 4,500
67
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
California Pollution Control Financing
Authority Solid Waste Disposal RB TECP
(Thermal Energy Development)
Series 1988A (f)
3.60%, 03/07/00 $ 15,070 $ 15,070
California State Department of Water
Resources TECP
3.55%, 04/13/00 5,000 5,000
California State GO TECP (f)
3.60%, 01/19/00 27,600 27,600
3.65%, 01/20/00 7,000 7,000
3.55%, 01/21/00 35,000 35,000
3.55%, 01/24/00 34,050 34,050
3.40%, 02/11/00 20,000 20,000
3.55%, 03/01/00 25,000 25,000
3.50%, 03/03/00 10,000 10,000
3.50%, 03/07/00 34,500 34,500
3.55%, 03/07/00 7,100 7,100
3.55%, 03/09/00 15,000 15,000
3.60%, 04/06/00 30,080 30,080
3.45%, 04/07/00 20,000 20,000
3.55%, 04/11/00 50,000 50,000
East Bay, California Municipal Utilities
District TECP
3.40%, 03/07/00 19,800 19,800
Long Beach, California Harbor TECP
Series 1994A (f)
3.65%, 03/06/00 44,850 44,850
Los Angeles, California Department of
Water & Power Electric Plant TECP (f)
3.35%, 03/10/00 26,500 26,500
Los Angeles, California Department of
Water & Power TECP
3.50%, 05/02/00 8,000 8,000
Los Angeles, California Waste Water
System TECP (f)
3.35%, 03/01/00 34,500 34,500
3.55%, 05/02/00 13,000 13,000
Los Angeles County, California Capital Asset
Leasing Corp. Lease Revenue TECP (f)
3.55%, 01/19/00 4,000 4,000
3.30%, 02/03/00 43,700 43,700
Los Angeles Metropolitan Transportation
TECP (f)
3.45%, 04/03/00 12,105 12,105
Par Value
-------- ----------
Metro Water District of Southern
California TECP
3.30%, 03/01/00 $ 19,100 $ 19,100
3.60%, 04/06/00 10,000 10,000
Orange County, California Local
Transportation Authority TECP
3.20%, 01/21/00 40,000 40,000
Sacramento, California Municipal Utilities
District TECP (f)
3.25%, 03/08/00 33,000 33,000
3.55%, 03/09/00 30,237 30,237
San Diego County, California
TECP (f)
3.10%, 03/01/00 12,400 12,400
San Francisco, California International
Airport TECP Series A
3.50%, 02/07/00 3,260 3,260
San Joaquin Hills, California TECP (f)
3.50%, 05/02/00 32,000 32,000
University of California Board of
Regents TECP (f)
3.40%, 03/07/00 8,500 8,500
3.60%, 03/07/00 6,900 6,900
3.30%, 03/08/00 10,555 10,555
3.55%, 03/09/00 25,000 25,000
3.40%, 04/11/00 25,000 25,000
3.50%, 04/12/00 32,000 32,000
University of California Board of Regents
TECP Series 1996A
3.55%, 05/02/00 5,000 5,000
----------
849,314
----------
PUERTO RICO -- 4.0%
Puerto Rico Goverment Development
Bank TECP
3.60%, 01/20/00 20,000 20,000
3.35%, 01/25/00 20,450 20,450
3.30%, 01/26/00 31,866 31,866
3.35%, 01/27/00 19,890 19,890
3.60%, 03/01/00 5,656 5,656
3.60%, 03/06/00 10,555 10,555
3.60%, 03/07/00 15,000 15,000
3.45%, 03/08/00 20,000 20,000
68
<PAGE>
Par Value
-------- ----------
3.60%, 03/08/00 $ 8,000 $ 8,000
3.60%, 03/14/00 7,500 7,500
3.70%, 04/12/00 45,114 45,114
----------
204,031
----------
TOTAL TAX-EXEMPT COMMERCIAL PAPER
(Cost $1,053,345) 1,053,345
----------
TAX & REVENUE ANTICIPATION NOTES -- 18.1%(c)
CALIFORNIA -- 16.0%
Alameda County, California COP TRAN
3.32%, 07/07/00 28,000 28,095
Berkeley, California Unified School
District TRAN
3.13%, 06/30/00 8,250 8,260
California School Cash Reserve Program
Authority Pooled TRAN Series 1999A (f)
3.11%, 07/03/00 313,280 314,493
California Statewide Community
Development Authority RB TRAN
Series 1999C-2
3.69%, 09/29/00 43,600 43,697
Fairfield, California TRAN
3.98%, 09/28/00 2,500 2,508
Los Angeles, California TRAN
3.24%, 06/30/00 25,000 25,111
3.35%, 06/30/00 40,000 40,124
Los Angeles County, California TRAN
3.32%, 06/30/00 77,000 77,251
3.38%, 06/30/00 7,400 7,421
3.39%, 06/30/00 30,000 30,085
3.40%, 06/30/00 30,000 30,084
3.50%, 06/30/00 1,500 1,503
3.75%, 06/30/00 5,000 5,004
San Bernardino County, California TRAN
3.41%, 09/29/00 60,025 60,157
San Diego, California Area Local
Government COP TRAN Series 1999B
4.00%, 07/28/00 12,000 12,041
San Diego, California Unified School
District TRAN Series 1999A
3.65%, 09/29/00 6,110 6,134
San Diego County, California TRAN (f)
3.40%, 09/29/00 82,850 83,810
San Joaquin County, California TRAN (d)
3.74%, 01/01/01 16,420 16,500
Par Value
-------- ----------
San Mateo, California Union High School
District TRAN
3.13%, 06/30/00 $ 10,000 $ 10,012
Santa Cruz County, California TRAN
3.48%, 10/06/00 3,860 3,889
Val Verde, California Unified School
District TRAN
3.50%, 10/31/00 2,900 2,918
----------
809,097
----------
PUERTO RICO -- 2.1%
Puerto Rico Commonwealth TRAN (d)
3.75%, 07/30/00 104,100 104,521
----------
TOTAL TAX & REVENUE
ANTICIPATION NOTES
(Cost $913,618) 913,618
----------
VARIABLE RATE TENDER OPTION BONDS -- 11.4% (a)(b)(f)
CALIFORNIA -- 9.8%
Big Bear Lake, California Water Revenue
TOBP (PA- 597)
5.15%, 01/07/00 8,445 8,445
California HFA Home Mortgage RB TOB
5.15%, 01/06/00 6,100 6,100
California HFA Revenue TOB Series 1997E
5.15%, 01/06/00 9,845 9,845
California HFA Revenue TOB Series R
5.06%, 01/07/00 9,995 9,995
California State GO TOB Series 194
4.30%, 01/01/00 4,120 4,120
California State GO TOB Series 195
4.30%, 01/01/00 4,000 4,000
California State GO TOB Series 1999M
5.30%, 01/07/00 46,000 46,000
California State GO TOBP (PT-1148)
5.15%, 01/07/00 13,120 13,120
California State GO TOBP (PT-1072)
5.15%, 01/06/00 9,165 9,165
California State GO TOBP (PT-153)
4.85%, 01/07/00 4,995 4,995
California State Public Works Board Lease
Revenue TOB Series 196
4.30%, 01/01/00 4,460 4,460
California State Public Works Board Lease
Revenue TOB Series 1999F
5.30%, 01/07/00 11,100 11,100
69
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
California State Putters TOB Series 132
5.20%, 01/07/00 $ 47,000 $ 47,000
California Statewide Community
Developement Authority COP TOB
Series 1999E
5.30%, 01/07/00 5,000 5,000
Los Angeles, California Department of
Water & Power Revenue TOB Series L
5.30%, 01/07/00 20,390 20,390
Los Angeles, California TOB (Dwap Electric
Power Plant) Series 1
5.30%, 01/05/00 19,995 19,995
Los Angeles, California TOBP (PA-554)
5.15%, 01/07/00 3,150 3,150
Los Angeles, California Unified School
District TOB Series 1999A-19
5.75%, 01/07/00 16,000 16,000
Los Angeles County, California Metropolitan
Transit Authority TOB
5.30%, 01/07/00 23,830 23,830
Metropolitan Water District of Southern
California Water Works Revenue
TOBP (PA-546)
5.15%, 01/07/00 4,750 4,750
Metropolitan Water District of Southern
California Water Works Revenue TOB
Series 154
5.15%, 01/07/00 10,000 10,000
Metropolitan Water District of Southern
California Water Works Revenue TOB
Series 1999O
5.30%, 01/07/00 16,000 16,000
Palo Alto, California Unified School District
(Merlot Project) Series R
5.30%, 01/05/00 6,000 6,000
Sacramento County, California Trust
Receipts GO TOB Series 1999A-21
5.75%, 01/07/00 90,900 90,900
Santa Clara County, California TOB
Series 1999A-18
5.75%, 01/07/00 66,940 66,940
University of California Board of Regents
TOBP (PT-1057)
5.15%, 01/06/00 34,505 34,505
----------
495,805
----------
Par Value
-------- ----------
PUERTO RICO -- 1.6%
Puerto Rico Commonwealth Highway &
Transportation Authority RB TOBP
(PA-494) Series A
5.16%, 01/07/00 $ 1,875 $ 1,875
Puerto Rico Commonwealth Highway &
Transportation Authority TOB
5.16%, 01/06/00 18,435 18,435
Puerto Rico Commonwealth Infrastructure
Financing Authority TOBP (PA-498 )
5.16%, 01/07/00 3,930 3,930
Puerto Rico Commonwealth Infrastructure
Financing Authority TOBP (PT-1086)
5.16%, 01/06/00 25,650 25,650
Puerto Rico Commonwealth Infrastructure
Financing Authority TOB
5.16%, 01/06/00 24,000 24,000
Puerto Rico Commonwealth TOBP (PT 181)
5.16%, 01/07/00 5,625 5,625
----------
79,515
----------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $575,320) 575,320
----------
REVENUE ANTICIPATION NOTES -- 3.7% (c)
California State RAN Series 1999A
3.29%, 06/30/00 11,740 11,780
3.30%, 06/30/00 162,480 163,029
3.33%, 06/30/00 3,800 3,812
3.44%, 06/30/00 1,000 1,003
3.45%, 06/30/00 7,000 7,019
----------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $186,643) 186,643
----------
REVENUE BONDS -- 2.7% (c)
CALIFORNIA -- 2.5%
California HFA S/F Mortgage RB
Series 1999E
3.45%, 08/01/00 57,000 57,000
California State Department Water
Resources RB (Central Valley Project)
Series 1991I
3.68%, 06/01/00 4,695 4,818
California State Public Works Board Lease
RB (Regents of The University of
California)
3.77%, 09/01/00 20,690 21,526
70
<PAGE>
Par Value
-------- ----------
California State Public Works Board Lease
Revenue Refunding Bonds (Department
of Corrections State Prisons)
Series 1993A (f)
3.89%, 12/01/00 $ 1,865 $ 1,878
California State Public Works Board Lease
Revenue Refunding Bonds (Department
of Corrections) Series 1997C
3.78%, 09/01/00 7,000 7,044
Central Valley, California Financing
Authority RB (Carson Ice Cogeneration
Project) (f)
3.33%, 07/01/00 19,425 19,535
Los Angeles, California Wastewater System
RB Series D
3.66%, 12/01/00 1,805 1,889
Northern California Power Agency RB
(Combustion Turbine #1-A) (f)
3.40%, 08/15/00 1,535 1,543
Orange County, California Airport RB (f)
3.45%, 07/01/00 2,200 2,219
San Diego California Regional Transportation
Common Sales Tax RB (f)
2.85%, 04/01/00 1,850 1,857
Southern California Public Power Authority
RB (Palo Verde Project) Series1999A (f)
3.35%, 07/01/00 3,300 3,326
Southern California Public Power Authority
RB (San Juan Unit 3 Project) Series A (f)
3.35%, 07/01/00 2,465 2,491
Southern California Public Power Authority
Revenue Refunding Bonds Series 1989
3.68%, 07/01/00 3,020 3,055
----------
128,181
----------
PUERTO RICO -- 0.2% (f)
Puerto Rico Commonwealth Highway
Authority RB Series 1990Q
3.50%, 07/01/00 3,000 3,122
3.75%, 07/01/00 6,500 6,753
----------
9,875
----------
TOTAL REVENUE BONDS
(Cost $138,056) 138,056
----------
Par Value
-------- ----------
FIXED RATE TENDER OPTION BONDS -- 0.7% (c)(e)(f)
CALIFORNIA -- 0.4%
California State HFA RB TOBP (PA-540R)
3.50%, 03/09/00 $ 4,995 $ 4,995
California State TOBP (PT-1170)
3.45%, 07/20/00 4,785 4,785
Los Angeles, California Unified School
District TOPP (PT-1178)
3.50%, 08/10/00 9,635 9,635
----------
19,415
----------
PUERTO RICO -- 0.3%
Puerto Rico Commonwealth Public
Improvement TOBP (PA-550)
3.40%, 03/09/00 4,655 4,655
Puerto Rico Housing Finance Corporation
RB TOB Series J
3.15%, 04/13/00 9,900 9,900
----------
14,555
----------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $33,970) 33,970
----------
MANDATORY PUT BONDS -- 0.6% (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 3,796
California State GO Series 1997BJ
3.20%, 06/01/00 13,680 13,680
San Bernardino County, California S/F
Mortgage RB Series 1999A-2 (f)
3.20%, 06/01/00 1,850 1,865
Vallejo City, California Unified School
District COP (Various Capital Improvement
Financing Projects) Series 1999E
3.57%, 04/05/00 5,000 5,000
----------
TOTAL MANDATORY PUT BONDS
(Cost $29,341) 29,341
----------
71
<PAGE>
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
CERTIFICATES OF PARTICIPATION -- 0.5% (c)(f)
Los Angeles, California Convention &
Exhibit Center Authority COP
3.35%, 08/15/00 $ 3,150 $ 3,281
Los Angeles County, California COP
(Correctional Facilities Project)
3.48%, 09/01/00 9,000 9,352
Los Angeles County, California Schools
Pooled Financing Program COP
Series 1999B
3.87%, 09/29/00 14,000 14,011
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $26,644) 26,644
----------
GENERAL OBLIGATIONS -- 0.2% (c)
CALIFORNIA -- 0.2%
California State GO
3.35%, 08/01/00 8,300 8,354
Fontana, California Unified School District
GO Series A (f)
3.55%, 07/01/00 500 503
----------
8,857
----------
PUERTO RICO -- 0.0%
Commonwealth of Puerto Rico GO
3.78%, 07/01/00 2,025 2,104
----------
TOTAL GENERAL OBLIGATIONS
(Cost $10,961) 10,961
----------
Par Value
-------- ----------
TAX ALLOCATION BONDS -- 0.0% (c)(f)
San Jose, California Redevelopment
Agency Tax Allocation (Merged Area
Project) Series 1992A
3.50%, 08/01/00 $ 1,650 $ 1,671
----------
TOTAL TAX ALLOCATION BONDS
(Cost $1,671) 1,671
----------
OTHER INVESTMENTS COMPANIES -- 0.1% (g)
Provident Institutional Funds - California
Money Fund Portfolio
3.87% 4,711 4,711
----------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $4,711) 4,711
----------
TOTAL INVESTMENTS -- 101.6%
(Cost $5,139,768) 5,139,768
----------
OTHER ASSETS AND LIABILITIES-- (1.6%)
Other assets 59,466
Liabilities (138,613)
----------
(79,147)
----------
TOTAL NET ASSETS-- 100.0% $5,060,621
==========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
72
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
December 31, 1999
Par Value
-------- ----------
VARIABLE RATE OBLIGATIONS -- 35.8% (b)(f)
Albany, New York IDRB (Newkirk Products
Project) Series 1995A
5.55%, 01/07/00 $ 1,000 $ 1,000
Duchess County, New York IDA IDRB
(Mechtroncis Corp. Project) Series 1998
5.40%, 01/07/00 3,725 3,725
Dutchess County, New York IDA (Trinity
Pawling School Corp. Project)
5.35%, 01/06/00 1,600 1,600
Erie County, New York IDA (Episcopal Life
Care Facilities Project)
5.25%, 01/07/00 3,095 3,095
Monroe County, New York IDRB (ENBI Corp.
Lease Rent Project) Series 1988
5.95%, 01/07/00 2,000 2,000
New York City, New York GO Series 1993A-5
5.00%, 01/01/00 3,100 3,100
New York City, New York Health & Hospitals
Health System RB Series 1997C
5.40%, 01/07/00 7,875 7,875
New York City, New York Housing
Development Corp. M/F Housing RB
(100 Jane Street Development Project)
Series A
5.50%, 01/07/00 6,525 6,525
New York City, New York Housing
Development Corp. M/F Housing RB
(One Columbus Project) Series A
5.50%, 01/07/00 2,000 2,000
New York City, New York Housing
Development Corp. M/F Housing RB
(Related Broadway Development) Series A
5.60%, 01/07/00 5,000 5,000
New York City, New York IDA IDRB (Allway
Tools Inc. Project)
5.55%, 01/07/00 1,845 1,845
New York City, New York IDA Special Facility
RB (Korean Airlines Co. Project)
Series 1997A
5.25%, 01/07/00 23,400 23,400
New York City, New York IDA Special Facility
RB (Korean Airlines Co. Project)
Series 1997C
5.85%, 01/07/00 7,200 7,200
New York City, New York M/F Rental Housing
RB (Tribeca Tower Project) Series 1997A
5.60%, 01/07/00 31,200 31,200
New York City, New York Municipal Water
Finance Authority Water & Sewer System
RB Series 1994G
4.70%, 01/01/00 6,100 6,100
Par Value
-------- ----------
New York City, New York Transit Cultural
Resource RB (American Museum of
Natural History Project) Series 1993A
5.05%, 01/07/00 $ 3,870 $ 3,870
New York City, New York Transit Finance
Authority RB Series 1998A-1
5.50%, 01/07/00 7,500 7,500
New York State Dormitory Authority RB
(New York Foundling Charitable Project)
5.35%, 01/07/00 800 800
New York State Economic Development
Authority
5.40%, 01/07/00 4,200 4,200
New York State HFA Housing RB (101 West
End Avenue Project) Series 1999A
5.20%, 01/07/00 7,800 7,800
New York State HFA Housing RB
(345 East 94th Street Housing Project)
5.20%, 01/07/00 10,900 10,900
New York State HFA Housing RB (Chelsea
Arms Housing Project) Series 1998A
5.50%, 01/07/00 14,000 14,000
New York State HFA Housing RB (East 84th
Street Project) Series 1995A
5.60%, 01/07/00 1,500 1,500
New York State HFA Housing RB (Mount
Sinai School of Medicine Project)
Series 1984A
4.75%, 01/07/00 4,280 4,280
New York State HFA Housing RB
(Normandie Court II Project) Series 1987A
5.45%, 01/07/00 13,840 13,840
New York State HFA Housing RB (Union
Square South Housing Project)
5.50%, 01/07/00 2,000 2,000
New York State HFA M/F Housing RB
(Tribeca Park Housing Project)
Series 1997A
5.60%, 01/07/00 30,800 30,800
New York State HFA RB (70 Battery Place
Project) Series 1999A
5.50%, 01/07/00 8,500 8,500
New York State HFA RB (Normandie Court
Project) Series 1991
5.20%, 01/07/00 9,500 9,500
New York State HFA RB (Tribeca Landing)
Series 1997A
5.50%, 01/05/00 13,000 13,000
New York State HFA RB Series 1997A
5.50%, 01/07/00 20,300 20,300
73
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
New York State Local Government
Assistance Corp. RB Series 1994B
5.40%, 01/07/00 $ 12,100 $ 12,100
New York State Local Government
Assistance Corp. RB Series 1995E
5.20%, 01/07/00 5,400 5,400
New York State Local Government
Assistance Corp. RB Series 1995F
5.40%, 01/07/00 6,000 6,000
New York State Medical Care Facilities
Financing Agency RB (Pooled Equipment
Loan Program 1)
4.90%, 01/07/00 5,500 5,500
New York State Triborough Bridge &
Tunnel Authority RB Series 1999C
5.50%, 01/05/00 10,000 10,000
Newburgh, New York IDA IDRB (Bourne
and Kenney Project) Series 1999B
5.60%, 01/07/00 4,000 4,000
Niagara County, New York IDRB
(Allegheny Ludlum Steel Co. Project)
Series 1984
5.60%, 01/07/00 8,400 8,400
Niagara Falls, New York Bridge
Commission RB Series 1993A
5.05%, 01/07/00 1,200 1,200
Schenectady, New York IDRB (Fortitech
Holding Corp. Project) Series 1995A
5.45%, 01/07/00 1,200 1,200
St. Lawrence County, New York IDRB
Environmental Improvement (Reynolds
Metals Project)
5.40%, 01/07/00 4,000 4,000
Town of Islip, New York IDRB (Magnum
Realty Creative Bath Products Project)
5.65%, 01/07/00 1,980 1,980
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1989
5.65%, 01/07/00 1,500 1,500
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1991
5.65%, 01/07/00 700 700
Yonkers, New York IDRB Civic Facilities
(Consumers Union Facility Project)
Series 1994
5.65%, 01/07/00 1,900 1,900
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $322,335) 322,335
--------
Par Value
-------- ----------
VARIABLE RATE TENDER OPTION BONDS -- 20.0%(a)(c)(f)
Long Island, New York Power Authority
Electric System RB TOBP (PA-522)
5.55%, 01/07/00 $ 21,000 $ 21,000
New York City, New York GO TOB
(CoreStates Merlot Program Project)
Series 1997C
5.45%, 01/07/00 15,000 15,000
New York City, New York Health &
Hospital Corp. RB TOBP (PA-555)
5.55%, 01/07/00 17,620 17,620
New York City, New York Municipal
Acceptance Corp. TOB
5.55%, 01/07/00 12,445 12,445
New York City, New York Municipal
Financing Authority Water & Sewer
System RB TOB
5.55%, 01/07/00 4,995 4,995
New York Local Government Assistance
Corp. TOBP (PT-1055) Series 1997B
5.55%, 01/07/00 8,000 8,000
New York Metropolitan Transportation
Authority TOBP (PA-426)
5.55%, 01/07/00 5,695 5,695
New York State Dormitory Authority
(Montefiore Medical Center Project)
Revenue TOB Series 156
5.56%, 01/07/00 10,325 10,325
New York State Dormitory Authority
Revenue TOBP (PA-341)
5.55%, 01/07/00 405 405
New York State Dormitory Authority
Revenue TOBP (PA-425)
5.55%, 01/07/00 9,130 9,130
New York State Energy Research &
Development Authority (Eagle Trust)
TOB Series 1994A
5.53%, 01/07/00 14,850 14,850
New York State Environmental Pollution
Control RB TOB (96-C3202)
Series 1994D
5.53%, 01/07/00 17,050 17,050
New York State Medical Care Facility TOBP
(PT-154)
5.55%, 01/06/00 3,175 3,175
New York State Mortgage Agency RB
(Homewowners Mortgage) TOB
Series 77-A
4.91%, 01/07/00 15,995 15,995
74
<PAGE>
Par Value
-------- ----------
New York State Mortgage Agency TOB
Series 1999F
4.91%, 01/06/00 $ 24,795 $ 24,795
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $180,480) 180,480
--------
TAX EXEMPT COMMERCIAL PAPER -- 16.5% (c)
NEW YORK -- 15.6%
Long Island, New York Power Authority
Electrical Power System TECP (f)
3.65%, 03/06/00 8,700 8,700
Long Island, New York Power Authority
Electrical Power System TECP
Series 1993 (f)
3.65%, 03/06/00 5,000 5,000
Long Island, New York Power Authority
Electrical Power System TECP Series 3 (f)
3.55%, 03/06/00 15,000 15,000
New York City, New York GO Fiscal TECP
Series 1994H-3 (f)
3.40%, 01/24/00 12,000 12,000
New York State Environmental
Quality TECP
3.65%, 03/08/00 7,400 7,400
New York State Environmental TECP
Series 1998A (f)
3.65%, 02/01/00 5,000 5,000
3.75%, 03/08/00 35,000 35,000
New York State GO BAN TECP Series W
3.70%, 02/16/00 11,000 11,000
New York State Power Authority TECP
3.70%, 02/01/00 9,300 9,300
New York State Power Authority TECP
Series 2
3.60%, 03/01/00 5,900 5,900
3.80%, 03/08/00 25,900 25,900
--------
140,200
--------
PUERTO RICO -- 0.9%
Puerto Rico Government Development
Bank TECP
3.68%, 03/01/00 8,800 8,800
--------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $149,000) 149,000
--------
Par Value
-------- ----------
TAX ANTICIPATION NOTES -- 9.8% (c)
Brentwood, New York Union Free School
District TAN
3.40%, 06/30/00 $ 15,000 $ 15,043
Levittown, New York Union Free School
District TAN
3.35%, 06/21/00 400 401
Massapequa, New York Union Free School
District TAN
3.40%, 06/29/00 8,500 8,524
Nassau County, New York TAN Series 1999B
4.00%, 08/31/00 20,000 20,097
North Shore, New York Central School
District TAN
3.50%, 06/27/00 8,000 8,019
Oceanside, New York Union Free School
District TAN
3.40%, 06/27/00 12,000 12,034
Port Washington, New York Union Free
School District TAN
3.38%, 06/29/00 7,000 7,021
West Islip, New York Union Free School
District TAN
3.50%, 06/30/00 17,000 17,040
--------
TOTAL TAX ANTICIPATION NOTES
(Cost $88,179) 88,179
--------
BOND ANTICIPATION NOTES -- 7.8% (c)
Bronxville, New York Unified Free School
District BAN Series 1999
3.85%, 10/30/00 9,400 9,430
Broome County, New York BAN
3.08%, 04/05/00 11,900 11,905
Campbell-Savona, New York Central School
District BAN
3.90%, 10/27/00 4,000 4,019
Chautauqua County, New York BAN
Series 1999
3.50%, 07/14/00 8,000 8,021
3.93%, 12/08/00 5,600 5,616
Colonie New York BAN Series 1999A
3.05%, 04/15/00 5,770 5,773
Gowanda, New York Central School
District BAN
3.85%, 10/27/00 9,950 9,991
Irondequoit, New York BAN
3.30%, 05/26/00 2,015 2,017
Livingston County, New York BAN
3.65%, 08/18/00 4,370 4,379
75
<PAGE>
SCHWAB NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
New Rochelle, New York BAN Series A
3.70%, 10/13/00 $ 5,235 $ 5,247
New Rochelle, New York BAN Series B
3.68%, 04/13/00 1,150 1,151
Taconic Hills, New York Centennial School
District at Craryville BAN
3.10%, 04/14/00 2,950 2,953
--------
TOTAL BOND ANTICIPATION NOTES
(Cost $70,502) 70,502
--------
REVENUE BONDS -- 4.2% (c)
Greenwich, New York Central School
District RB
3.90%, 06/15/00 1,000 1,004
Metropolitan Transportation Authority,
New York RB (Service Contract Commuter
Facilities Project) Series 1990-3 (f)
3.58%, 07/01/00 2,800 2,908
New York City, New York Transit Cultural
Resource RB (American Museum of
Natural History Project) Series 1999B (f)
3.70%, 07/01/00 6,500 6,500
New York State Dormitory Authority RB
(City University Sytem) Series F (f)
3.73%, 07/01/00 5,750 5,979
New York State Dormitory Authority RB
(Mental Health Services Facilities Project)
Series 1997B
3.45%, 02/15/00 1,500 1,503
New York State Dormitory Authority RB
(New York Methodist Hospital Project) (f)
3.78%, 07/01/00 3,000 3,003
New York State Energy Research &
Development Authority Pollution Control
RB (New York State Electric & Gas Project)
Series B (f)
3.70%, 10/15/00 5,615 5,615
New York State Thruway Authority Service
Contract RB (Local Highway & Bridge)
4.10%, 01/01/01 11,275 11,482
--------
TOTAL REVENUE BONDS
(Cost $37,994) 37,994
--------
GENERAL OBLIGATIONS -- 3.3% (c)
Middletown, New York School
District GO (f)
3.70%, 11/01/00 3,735 3,767
Nassau County, New York Improvement GO
Series 1998Z (f)
3.63%, 09/01/00 10,020 10,052
Par Value
-------- ----------
Nassau County, New York General
Improvement GO Series 1995Q (f)
3.79%, 08/01/00 $ 2,705 $ 2,723
Nassau County, New York General
Improvement GO Series 1997X
3.89%, 11/01/00 3,000 3,027
New York City, New York GO Series 1990H (f)
3.70%, 08/01/00 1,500 1,535
New York State GO Series 1998F
3.95%, 09/15/00 1,600 1,606
Suffolk County, New York Public
Improvement GO Series 1998C (f)
3.75%, 10/15/00 2,115 2,121
Suffolk County, New York Public
Improvement GO (f)
3.50%, 08/15/00 2,445 2,464
Taconic Hills, New York Central School
District at Craryville GO (f)
3.75%, 06/15/00 2,190 2,195
--------
TOTAL GENERAL OBLIGATIONS
(Cost $29,490) 29,490
--------
REVENUE ANTICIPATION NOTES -- 1.6% (c)(f)
Nassau County, New York RAN
3.60%, 03/15/00 14,000 14,018
--------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $14,018) 14,018
--------
FIXED RATE TENDER OPTION BONDS -- 0.7% (c)(e)(f)
New York State Mortgage Agency Revenue
TOBP (PT-260)
3.55%, 06/01/00 6,060 6,060
--------
TOTAL FIXED RATE TENDER OPTION BONDS
(Cost $6,060) 6,060
--------
OTHER INVESTMENT COMPANIES -- 0.1% (g)
Provident Institutional Funds - New York
Money Portfolio
4.54% 555 555
--------
TOTAL OTHER INVESTMENT COMPANIES
(Cost $555) 555
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $898,613) 898,613
--------
OTHER ASSETS AND LIABILITIES-- 0.2%
Other assets 8,118
Liabilities (6,767)
--------
1,351
--------
TOTAL NET ASSETS-- 100.0% $899,964
========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
76
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
December 31, 1999
Par Value
-------- ----------
VARIABLE RATE OBLIGATIONS -- 41.1% (b)(f)
NEW JERSEY -- 40.8%
Camden County, New Jersey Improvement
Authority RB (Harvest Village Project)
Series 1999A
4.85%, 01/01/00 $ 600 $ 600
Essex County, New Jersey Public
Improvement Authority RB (County Asset
Sale Project) Series 1995
5.55%, 01/07/00 6,900 6,900
Monmouth County, New Jersey Improvement
Authority Pooled Government Loan
Progam
5.25%, 01/07/00 1,700 1,700
New Jersey Economic Development Authority
Natural Gas Facilities RB (New Jersey
Natural Gas Co.) Series 1998C
5.70%, 01/07/00 700 700
New Jersey Economic Development Authority
RB (500 International Partners Project)
5.45%, 01/07/00 5,800 5,800
New Jersey Economic Development Authority
RB (Graphic Management, Inc. Project)
5.15%, 01/07/00 6,160 6,160
New Jersey Economic Development Authority
RB (Hamilton Industrial Development
Project) Series 1998
5.30%, 01/07/00 6,965 6,965
New Jersey Economic Development Authority
RB (Hoffman Laroche Inc. Project)
Series 1993
5.00%, 01/07/00 100 100
New Jersey Economic Development Authority
RB (Jewish Home Rockleigh Project)
Series 1998A
5.40%, 01/07/00 5,000 5,000
New Jersey Economic Development Authority
RB (Job Haines Home Project)
5.35%, 01/07/00 2,700 2,700
New Jersey Economic Development Authority
RB (Natural Gas Co. Project)
5.20%, 01/07/00 900 900
New Jersey Economic Development Authority
RB (New Jersey Foreign Trade Venture
Project) Series 1998DN
4.95%, 01/01/00 4,300 4,300
Par Value
------- ----------
New Jersey Economic Development Authority
RB (St. James Prep & Social Service Project)
Series 1998
5.20%, 01/07/00 $ 590 $ 590
New Jersey Economic Development Authority
RB (Toys R Us Inc. Project) Series 1984
4.90%, 01/07/00 3,000 3,000
New Jersey Economic Development Authority
RB (Wechsler Coffee Corp. Project)
Series 1998
5.30%, 01/05/00 1,450 1,450
New Jersey Economic Development Authority
Revenue Refunding Bonds (Airis Newark
L.L.C. Project)
5.50%, 01/07/00 9,600 9,600
New Jersey Economic Development Authority
Thermal Energy Facilities RB (Thermal
Energy Ltd. Partnership I Project)
Series 1997
5.20%, 01/07/00 4,750 4,750
New Jersey Health Care Facilities Authority
(Carrier Foundation) Series C
5.45%, 01/05/00 2,490 2,490
New Jersey Health Care Facilities Financing
Authority RB (Princeton Medical Center
Project) Series 1999A-3
5.25%, 01/07/00 5,000 5,000
New Jersey Health Care Facilities Financing
Authority Revenue Refunding Bonds
(Christian Health Project) Series 1998B
6.85%, 01/07/00 5,600 5,600
New Jersey Sports & Exposition Authority
RB Series 1992C
5.40%, 01/07/00 100 100
New Jersey State Economic Development
Authority Revenue Refunding Bonds
(Stolthaven Project) Series 1998A
4.90%, 01/01/00 100 100
New Jersey State Turnpike Authority RB
Series 1991D
5.00%, 01/07/00 9,600 9,600
--------
84,105
--------
77
<PAGE>
SCHWAB NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
------- ----------
PUERTO RICO -- 0.3%
Puerto Rico Commonwealth Highway &
Transportation Authority Series 1998A
5.00%, 01/07/00 $ 700 $ 700
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $84,805) 84,805
--------
BOND ANTICIPATION NOTES -- 18.2% (c)
Bloomingdale, New Jersey BAN
3.10%, 03/10/00 1,566 1,567
East Brunswick Township, New Jersey BAN
3.52%, 06/15/00 1,600 1,601
3.56%, 06/15/00 2,000 2,001
3.87%, 01/05/01 (d) 1,000 1,004
Highland Park, New Jersey BAN
3.25%, 04/28/00 2,400 2,403
Hopewell Township, New Jersey General
Improvement BAN
3.40%, 03/22/00 2,270 2,272
Jersey City, New Jersey BAN
3.80%, 09/15/00 2,500 2,508
3.95%, 09/15/00 2,000 2,004
Jersey City, New Jersey School
Promissory BAN
3.23%, 03/03/00 2,000 2,001
3.46%, 03/03/00 3,000 3,000
Monroe Township, New Jersey Middlesex
County BAN
3.50%, 07/26/00 2,000 2,005
3.83%, 07/26/00 2,533 2,535
Passaic County, New Jersey BAN
3.84%, 09/22/00 1,700 1,703
3.85%, 09/22/00 3,000 3,006
3.94%, 09/22/00 1,500 1,502
Secaucus, New Jersey BAN
3.05%, 01/20/00 2,830 2,831
Trenton, New Jersey BAN
3.90%, 10/20/00 2,600 2,607
3.92%, 10/20/00 1,000 1,002
--------
TOTAL BOND ANTICIPATION NOTES
(Cost $37,552) 37,552
--------
Par Value
------- ----------
VARIABLE RATE TENDER OPTION BONDS -- 15.4%(a)(b)(f)
NEW JERSEY -- 15.2%
New Jersey Economic Development
Authority Natural Gas Facilities RB TOB
(Nui Corp. Project) Series 161
5.51%, 01/07/00 $5,130 $ 5,130
New Jersey Health Care Facilities Financing
Authority RB TOBP (PA-504)
5.46%, 01/07/00 7,000 7,000
New Jersey State Housing & Mortgage
Finance Agency RB TOBP (PT-287)
5.36%, 01/07/00 3,300 3,300
New Jersey State TOB
5.56%, 01/07/00 2,370 2,370
New Jersey State Transportation Trust Fund
Authority TOBP (PA-499)
5.46%, 01/07/00 2,500 2,500
New Jersey State Transportation Trust Fund
Authority TOBP (PT-200)
5.46%, 01/06/00 4,800 4,800
New Jersey State Transportation Trust Fund
Authority TOBP (PT-298)
5.46%, 01/07/00 2,900 2,900
Port Authority of New York & New Jersey
TOBP (PA-518)
5.46%, 01/07/00 3,390 3,390
--------
31,390
--------
PUERTO RICO -- 0.2%
Puerto Rico Commonwealth Highway &
Transportation Authority Highway RB
TOBP (PT-183)
5.16%, 01/07/00 400 400
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $31,790) 31,790
--------
TAX EXEMPT COMMERCIAL PAPER -- 9.6% (c)
NEW JERSEY -- 6.2% (F)
New Jersey State Transportation TECP
Series 2000A
3.85%, 02/09/00 5,800 5,800
3.65%, 03/06/00 4,000 4,000
3.80%, 03/10/00 3,000 3,000
--------
12,800
--------
78
<PAGE>
Par Value
------- ----------
PUERTO RICO -- 3.4%
Government Development Bank For Puerto
Rico TECP
3.35%, 01/20/00 $1,900 $ 1,900
3.30%, 01/28/00 5,000 5,000
--------
6,900
--------
TOTAL TAX EXEMPT
COMMERCIAL PAPER
(Cost $19,700) 19,700
--------
REVENUE BONDS -- 7.1% (c)
Middlesex County, New Jersey Improvement
Authority Lease RB (Raritan Center
Overpass Project)
3.65%, 08/01/00 3,595 3,619
Monmouth County, New Jersey Improvement
Authority Capital Equipment Pooled
Lease RB
5.00%, 10/01/00 1,120 1,130
Monmouth County, New Jersey Improvement
Authority Government Loan RB (f)
3.90%, 12/01/00 1,025 1,025
New Jersey Health Care Facilities Financing
Authority RB (Virtual Health Project) (f)
3.52%, 07/01/00 4,865 4,876
New Jersey State Highway Authority Revenue
Refunding Bonds (Garden State
Parkway Project)
4.20%, 01/01/01 420 420
New Jersey State Transit Corp. GAN RB
Series 1997A (f)
3.97%, 03/01/00 1,000 1,002
Ocean County, New Jersey Utilities Authority
Wastewater Revenue Refunding Bonds
3.95%, 01/01/01 2,500 2,525
--------
TOTAL REVENUE BONDS
(Cost $14,597) 14,597
--------
FIXED RATE TENDER OPTION BONDS -- 4.6% (C)(E)(F)
New Jersey State Building Authority
Series 1997 TOB
3.65%, 02/03/00 5,395 5,395
Par Value
------- ----------
New Jersey State Housing & Mortgage
Finance Agency Revenue TOBP (PT-285)
3.80%, 08/10/00 $4,100 $ 4,100
--------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $9,495) 9,495
--------
TAX ANTICIPATION NOTES -- 1.8% (C)
Morristown, New Jersey TAN
3.25%, 02/11/00 3,700 3,702
--------
TOTAL TAX ANTICIPATION NOTES
(Cost $3,702) 3,702
--------
GENERAL OBLIGATIONS -- 1.7% (C)
Essex County, New Jersey GO
Series 1996A1 (f)
3.95%, 11/15/00 1,500 1,513
Monroe Township & Middlesex County, New
Jersey GO (f)
3.04%, 02/01/00 490 490
Morris County, New Jersey GO
3.80%, 07/15/00 1,005 1,017
New Jersey State Governmental GO
4.00%, 08/01/00 500 505
--------
TOTAL GENERAL OBLIGATIONS
(Cost $3,525) 3,525
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $205,166) 205,166
--------
OTHER ASSETS AND LIABILITIES-- 0.5%
Other assets 2,016
Liabilities (1,079)
--------
937
--------
TOTAL NET ASSETS-- 100.0% $206,103
========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
79
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
December 31, 1999
Par Value
------- ----------
VARIABLE RATE OBLIGATIONS -- 49.6%(b)(f)
Allegheny County, Pennsylvania IDA
(USX Corporation Project)
5.40%, 01/07/00 $4,900 $ 4,900
Allegheny County, Pennsylvania IDA RB
(Saureisen Project)
6.20%, 01/07/00 1,500 1,500
Allegheny County, Pennsylvania IDA RB
Series 1997C
4.70%, 01/01/00 1,000 1,000
Allegheny County, Pennsylvania IDA RB
(Longwood at Oakmont Project) Series D
4.70%, 01/01/00 100 100
Berks County, Pennsylvania IDA RB (Beacon
Container Project)
5.60%, 01/05/00 1,800 1,800
Bucks County, Pennsylvania IDA RB
(Klearfold Project)
6.20%, 01/06/00 4,000 4,000
Bucks County, Pennsylvania IDA RB
(Schuman & Sons Project)
5.45%, 01/07/00 3,230 3,230
Cambria County, Pennsylvania IDA Resource
Recovery RB (Cambria Cogen Co. Project)
5.50%, 01/07/00 6,500 6,500
Chester County, Pennsylvania IDA RB
(Manufacturing Facilities Devault Project)
5.60%, 01/05/00 2,070 2,070
Dauphin County, Pennsylvania RB (All
Health Pooled Financing Project)
5.60%, 01/07/00 1,230 1,230
Delaware County, Pennsylvania IDA RB
(YMCA of Philadelphia Project)
Series 1999
5.40%, 01/05/00 2,100 2,100
Easton City, Pennsylvania School District GO
5.75%, 01/06/00 1,800 1,800
Montgomery County, Pennsylvania IDA RB
(Seton Medical Co.)
5.15%, 01/07/00 500 500
Montgomery County, Pennsylvania M/F
Housing RB (Glenmore Association)
Series A
5.55%, 01/07/00 3,500 3,500
Northampton County, Pennsylvania
IDA RB (Binney & Smith) Series A
5.50%, 01/07/00 3,250 3,250
Par Value
-------- ----------
Northampton County, Pennsylvania IDA RB
(Binney & Smith) Series B
5.50%, 01/07/00 $ 960 $ 960
Pennsylvania Energy Development Authority
RB (B&W Ebensburg Project) Series 1986
5.25%, 01/07/00 7,600 7,600
Pennsylvania Energy Development Authority
RB (Piney Creek Project) Series 1986C
5.25%, 01/07/00 1,155 1,155
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988B
5.90%, 01/05/00 5,570 5,570
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1988C
5.90%, 01/07/00 4,170 4,170
Pennsylvania Higher Education Assistance
Agency Student Loan RB Series 1997A
6.05%, 01/07/00 3,275 3,275
Pennsylvania State Public School Building
Authority RB Series 1999D
5.75%, 01/07/00 3,300 3,300
Philadelphia, Pennsylvania IDA RB (30th
Street Station Project) Series 1987
4.00%, 01/30/00 1,000 1,000
Philadelphia, Pennsylvania IDA RB (City Line
Holiday Inn Project) Series 1996
5.65%, 01/07/00 3,900 3,900
Quakertown, Pennsylvania General Authority
Pooled Financing Program RB Series 1998A
5.75%, 01/07/00 1,500 1,500
Quakertown, Pennsylvania General Authority
Pooled Financing Program RB Series A
5.75%, 01/04/00 1,400 1,400
Washington County, Pennsylvania Authority
RB (Girard Estate Refunding Project)
Series 1999J
5.55%, 01/07/00 7,000 7,000
West Cornwall Township, Pennsylvania
Municipal Authority RB (Lebanon Valley
Crethren Project)
5.40%, 01/07/00 1,140 1,140
York County, Pennsylvania General Authority
Pooled Financing RB Series 1996
5.40%, 01/07/00 1,835 1,835
--------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $81,285) 81,285
--------
80
<PAGE>
Par Value
-------- ----------
TAX EXEMPT COMMERCIAL PAPER -- 12.8% (c)
Carbon County, Pennsylvania IDA Resources
Recovery RB TECP (f)
3.80%, 01/20/00 $5,000 $ 5,000
Hatboro Horsham, Pennsylvania School
District TECP
3.74%, 09/15/00 1,950 1,953
Montgomery County, Pennsylvania IDA
Pollution Control Revenue Refunding
TECP (f)
3.65%, 01/25/00 14,000 14,000
--------
TOTAL TAX EXEMPT COMMERCIAL
PAPER
(Cost $20,953) 20,953
--------
VARIABLE RATE TENDER OPTION BONDS -- 9.7% (a)(b)(f)
Allegheny County, Pennsylvania Airport RB
TOBP (PT-176)
5.56%, 01/07/00 2,930 2,930
Pennsylvania HFA TOB Series 1999U
5.31%, 01/06/00 1,200 1,200
Philadelphia, Pennsylvania Airport RB
TOBP (PA-387)
5.56%, 01/07/00 3,600 3,600
Philadelphia, Pennsylvania School
District GO TOBP (PA-559) Series 1997
5.56%, 01/07/00 1,580 1,580
Philadelphia, Pennsylvania Water &
Waste RB TOBP (PT-151) Series 1993
4.91%, 01/07/00 6,580 6,580
--------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $15,890) 15,890
--------
REVENUE BONDS -- 8.8% (c)
Allegheny County, Pennsylvania Airport
Authority RB (f)
4.00%, 01/01/01 4,125 4,165
Pennslyvania Infrastructure Investment
Authority RB (Pennvest Loan Pool)
4.00%, 09/01/00 1,000 1,007
Pennsylvania Intergovernmental
Cooperative Authority Special Tax Revenue
Refunding Bonds (Philadelphia Funding
Program) (f)
3.90%, 06/15/00 2,000 2,017
Par Value
-------- ----------
Philadelphia, Pennsylvania Hospital & Higher
Education Facilities Authority RB
(Northwestern Corp. Project)
Series 1991A (f)
8.50%, 06/01/00 $3,000 $ 3,115
Pittsburgh, Pennsylvania Urban
Redevelopment Authority Mortgage RB
Series 1999E
3.65%, 08/15/00 1,955 1,955
Pittsburgh, Pennsylvania Urban
Redevelopment Authority Mortgage RB
Series 1999F
3.55%, 08/15/00 1,000 1,000
Schuylkill County, Pennsylvania
Redevelopment Authority Lease RB
2.53%, 06/01/00 1,105 1,117
--------
TOTAL REVENUE BONDS
(Cost $14,376) 14,376
--------
TAX AND REVENUE ANTICIPATION NOTES -- 7.0% (c)
Philadelphia, Pennsylvania School
District TRAN (f)
3.45%, 06/30/00 5,000 5,013
Philadelphia, Pennsylvania TRAN
3.50%, 06/30/00 5,000 5,018
3.86%, 06/30/00 1,500 1,502
--------
TOTAL TAX AND REVENUE
ANTICIPATION NOTES
(Cost $11,533) 11,533
--------
FIXED RATE TENDER OPTION BONDS -- 5.2% (c)(e)(f)
Pennsylvania HFA RB TOB
Series1998Y
4.86%, 01/06/00 3,100 3,100
Pennsylvania HFA S/F Mortgage RB TOBP
(PT-278) Series 1999-66A
3.59%, 04/06/00 2,800 2,800
Philadelphia, Pennsylvania IDRB TOBP
(PA-982) (Philadelphia Airport)
Series 1998A
3.62%, 07/20/00 2,710 2,710
--------
TOTAL FIXED RATE TENDER
OPTION BONDS
(Cost $8,610) 8,610
--------
81
<PAGE>
SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
MANDATORY PUT BONDS -- 4.0% (c)(f)
Beaver County, Pennsylvania IDA Pollution
Control Revenue Refunding Bonds (Ohio
Edison Co. Project) Series 1992A
3.10%, 04/01/00 $6,500 $ 6,500
--------
TOTAL MANDATORY PUT BONDS
(Cost $6,500) 6,500
--------
GENERAL OBLIGATION BONDS -- 2.1% (c)
Allegheny County, Pennsylvania GO
Series 18 (f)
3.70%, 04/01/00 1,000 1,008
Montgomery County, Pennsylvania GO
Series 1995A
3.98%, 10/15/00 2,500 2,540
--------
TOTAL GENERAL OBLIGATION BONDS
(Cost $3,548) 3,548
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $162,695) 162,695
--------
OTHER ASSETS ANDLIABILITIES-- 0.8%
Other assets 1,295
Liabilities (63)
--------
1,232
--------
TOTAL NET ASSETS-- 100.0% $163,927
========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
82
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands)
December 31, 1999
Par Value
-------- ----------
VARIABLE RATE OBLIGATIONS -- 63.5% (b)(f)
FLORIDA -- 58.2%
Alachua County, Florida Health Facilities
Authority RB (Shands Teaching Hospital
Clinic Project) Series 1996
5.25%, 01/05/00 $12,300 $ 12,300
Arcadia, Florida Hospital RB (Desoto
Memorial Hospital Project)
5.45%, 01/07/00 1,400 1,400
Bradford County, Florida Health Facilities
Authority RB (Shands Teaching Hospital
Clinic Project) Series 1996
5.25%, 01/07/00 6,500 6,500
Broward County, Florida HFA M/F Housing
RB (Landings Inverrary Apartments
Project) Series 1985
4.70%, 01/07/00 7,300 7,300
Broward County, Florida HFA M/F Housing
RB (Reflections Airport Project)
Series 1999
4.70%, 01/07/00 5,000 5,000
Broward County, Florida HFA M/F Housing
RB (Sanctuary Apartments Project)
Series 1985
4.70%, 01/07/00 22,000 22,000
Broward County, Florida Suburban Port
Facilities (Port Everglades Project)
Series 1998
5.50%, 01/07/00 16,300 16,300
Citrus Park, Florida Community
Development District Capital Improvement
Bonds Series 1996
5.25%, 01/07/00 3,000 3,000
Collier County, Florida HFA M/F Housing
RB (River Beach Project) Series 1985
5.65%, 01/07/00 4,300 4,300
Dade County, Florida Aviation Series 1984A
5.25%, 01/07/00 3,000 3,000
Dade County, Florida Health Facilities
Authority RB (Miami Children's Hospital)
Series 1995
5.30%, 01/05/00 4,100 4,100
Dade County, Florida IDA RB (Dolphins
Stadium Project) Series 1985C
5.35%, 01/07/00 1,050 1,050
Par Value
-------- ----------
Dade County, Florida IDA RB (Michael-Ann
Russell Jewish Community Center Project)
Series 1997
5.55%, 01/07/00 $ 4,795 $ 4,795
Dade County, Florida Water & Sewer System
Series 1994
4.75%, 01/07/00 13,600 13,600
Eustis, Florida Multi-Purpose RB
5.55%, 01/07/00 3,310 3,310
Florida Development Finance Corp. IDRB
(Central Farms LTD. Project)
Series 1999A4
5.70%, 01/07/00 1,750 1,750
Florida Development Finance Corp. IDRB
(Pioneer Ram Project) Series 1998A3
5.70%, 01/07/00 1,420 1,420
Florida Development Finance Corp. IDRB
(Schmitt Family Project) Series 1999A2
5.70%, 01/07/00 2,500 2,500
Florida Development Finance Corp. IDRB
(Sunshine State Project) Series 1999A3
5.60%, 01/07/00 1,580 1,580
Florida Development Finance Corp. IDRB
(Vutec Corp. Project) Series 1999A1
5.70%, 01/07/00 2,000 2,000
Florida Health Facility Authority
Series MM (Buena Vista Project)
5.25%, 01/07/00 10,000 10,000
Florida HFA Housing RB (Ashley Lake II
Project) Series 1989J
5.40%, 01/07/00 10,800 10,800
Florida HFA Housing RB (Caribbean Key
Apartments) Series 1996F
5.35%, 01/07/00 2,500 2,500
Florida HFA Housing RB (Heron Park
Project) Series 1996U
5.40%, 01/07/00 3,300 3,300
Florida HFA Housing RB (Tiffany Club
Project) Series 1996P
5.35%, 01/07/00 4,750 4,750
Florida HFA M/F Housing RB Series 1983J
3.60%, 01/07/00 7,370 7,370
Florida Housing Finance Corp. Housing RB
(Heritage Pointe Project) Series 1999I-1
4.95%, 01/07/00 4,750 4,750
Florida Housing Finance Corp. Housing RB
(Timberline Apartments) Series 1999P
5.60%, 01/07/00 2,500 2,500
83
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
Florida Housing Finance Corp. Housing RB
(Valencia Village Apartments Project)
Series 1999G-1
4.95%, 01/07/00 $ 5,875 $ 5,875
Florida Housing Finance Corp. M/F Housing
RB (Buchanan Bay Townhomes Project)
Series 1998S
5.60%, 01/07/00 6,725 6,725
Florida Municipal Power Agency Revenue
Refunding Bonds (Stanton II Project)
Series 1997
4.45%, 01/05/00 18,200 18,200
Florida Ocean Highway & Port Authority RB
Series 1990
5.50%, 01/07/00 8,300 8,300
Florida State Board of Education Capital
Outlay (Putters) Series 137 (a)
5.52%, 01/07/00 11,200 11,200
Florida State Finance Authority (Florida
Hospital Association - Capital Projects
Loan Program) Series 1998A
4.90%, 01/07/00 41,600 41,600
Florida State Municipal Power Agency
Revenue Refunding Bonds (Stanton
Project) Series 1984
4.50%, 01/07/00 12,000 12,000
Gainesville, Florida IDA (Exactech Inc.
Project)
5.65%, 01/07/00 3,900 3,900
Gainesville, Florida IDRB (Lifes Community
Blood Centers, Inc.) Series 1999
5.55%, 01/07/00 3,200 3,200
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985B
5.20%, 01/07/00 16,855 16,855
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985C
5.20%, 01/07/00 5,050 5,050
Gulf Breeze, Florida RB (Local Government
Loan Program) Series 1985E
5.25%, 01/07/00 30,000 30,000
Halifax, Florida Health Care Facilities
Hospital Medical Center RB (Health Care
Plan Inc. Project)
4.90%, 01/07/00 3,000 3,000
Par Value
-------- ----------
Highlands County, Florida Health Facility
Authority RB (Adventist Health Systems
Project) Series 1997A
5.40%, 01/07/00 $24,385 $ 24,385
Hillsborough County, Florida HFA M/F Housing
RB (Brandon Crossing Project)
4.95%, 01/07/00 2,700 2,700
Hillsborough County, Florida IDA Education
Facilities RB (Berkeley Preparatory School)
Series 1999
4.05%, 01/07/00 2,550 2,550
Indian River County, Florida RB (Saint
Edward's School Project)
5.00%, 01/07/00 10,000 10,000
Jacksonville, Florida Health Facility
Authority RB (River Garden Project)
Series 1994
5.00%, 01/07/00 2,795 2,795
Jacksonville, Florida Industrial Development
Revenue Refunding Bonds (Pavilion
Associates Project)
4.90%, 01/07/00 4,200 4,200
Jacksonville, Florida RB (Capital Project)
5.00%, 01/07/00 7,600 7,600
Lakeland, Florida Educational Facilities RB
(Florida Southern College Project)
Series 1999
5.50%, 01/07/00 13,000 13,000
Lee County, Florida HFA M/F Housing RB
(Cape Coral Apartments Project)
Series 1999A
4.75%, 01/07/00 6,160 6,160
Lee County, Florida IDA Educational
Facilities RB (Canterbury School, Inc
Project)
4.05%, 01/07/00 5,000 5,000
Manatee County, Florida HFA M/F Housing
RB (Hampton McGuire Project)
Series 1989A
5.00%, 01/07/00 1,500 1,500
Manatee County, Florida IDRB (Trilectron
Industries Project) Series 1997A
4.65%, 01/07/00 2,000 2,000
Miami & Dade County, Florida IDA Airport
Facilities RB (Flight Safety Project)
Series 1999A
5.65%, 01/07/00 21,500 21,500
84
<PAGE>
Par Value
-------- ----------
Miami & Dade County, Florida IDA IDRB
(Airbus Service Co. Project) Series 1998A
5.15%, 01/07/00 $ 8,800 $ 8,800
Miami & Dade County, Florida IDA IDRB
(Airis Miami LLC Project) Series 1999A
5.80%, 01/07/00 15,000 15,000
Miami & Dade County, Florida IDA IDRB
(Arctic Partners LTD. Project)
5.70%, 01/07/00 2,300 2,300
Miami & Dade County, Florida IDA IDRB
(Badia Spices Inc. Project)
5.65%, 01/07/00 4,700 4,700
Miami & Dade County, Florida IDA IDRB
(Belen Jesuit Preparatory School Project)
Series 1999
5.55%, 01/07/00 8,000 8,000
Miami & Dade County, Florida IDA IDRB
(Edron Fixtures Project) Series A
5.65%, 01/07/00 1,860 1,860
Miami & Dade County, Florida IDA IDRB
(Edron Fixtures Project) Series B
5.65%, 01/07/00 2,000 2,000
Miami & Dade County, Florida IDA IDRB
(Fine Arts Lamps Project) Series 1998
5.65%, 01/07/00 2,000 2,000
Miami, Florida Health Facilities Authority
RB (Jewish Home for the Aged, Inc. Project)
Series 1996
5.55%, 01/07/00 2,850 2,850
Nassua County, Florida Pollution Control RB
(Rayonier Project) Series 1999
4.50%, 01/07/00 19,700 19,700
Okeechobee County, Florida Exempt Facility
RB (Okeechobee Landfill, Inc. Project)
Series 1999
5.60%, 01/07/00 15,000 15,000
Orange County, Florida Educational Facilities
Authority Educational Facilities RB
(Rollins College Project) Series 1999
5.55%, 01/07/00 7,900 7,900
Orange County, Florida HFA (Highland
Pointe Apartments Project) Series 1988J
4.90%, 01/07/00 7,855 7,855
Orange County, Florida HFA M/F Housing
RB (Andover Place Apartments)
5.40%, 01/07/00 7,770 7,770
Par Value
-------- ----------
Orange County, Florida IDA IDRB (Goodwill
Industries, Inc. Project)
5.55%, 01/07/00 $ 6,000 $ 6,000
Orange County, Florida M/F Housing RB
(Smokewood Project) Series A
5.20%, 01/07/00 10,225 10,225
Orlando, Florida Special Assessment RB
(Republic Drive Interchange Project)
5.00%, 01/07/00 36,950 36,950
Palm Beach County, Florida Health Facilities
Authority Revenue Refunding Bonds
(Joseph L. Morse Geriatric Center)
5.40%, 01/07/00 10,755 10,755
Palm Beach County, Florida HFA M/F
Housing RB (Azalea Place Apartments
Project) Series 1999A
4.75%, 01/07/00 2,600 2,600
Palm Beach County, Florida IDRB
(Benjamin Private School Project)
5.55%, 01/07/00 9,000 9,000
Palm Beach County, Florida RB (Norton
Gallery Art School Project) Series 1995
5.30%, 01/07/00 2,300 2,300
Pasco County, Florida COP
5.40%, 01/07/00 20,000 20,000
Pasco County, Florida Education Facility
Authority RB (St. Leo University Project)
3.99%, 01/07/00 2,650 2,650
Pinellas County, Florida Industry Council
IDRB (Better Business Forms Inc. Project)
Series 1997
5.65%, 01/07/00 2,800 2,800
Plant City, Florida Hospital RB (Southern
Florida Baptist Hospital Project)
5.45%, 01/07/00 10,420 10,420
Polk County, Florida IDA RB (Farmland
Hydro Project)
5.30%, 01/07/00 4,000 4,000
Polk County, Florida IDA RB (Pavermodule
Inc. Project)
5.65%, 01/07/00 3,510 3,510
Polk County, Florida IDA RB (Young Florida
Project) Series 1996
5.10%, 01/07/00 2,000 2,000
Riviera Beach, Florida IDRB (Sunshine
Farms Poultry Project)
5.65%, 01/07/00 2,600 2,600
85
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
SouthEast Volusia, Florida Hospital District
RB (Bert Fish Medical Center Project)
Series 1995
5.70%, 01/07/00 $12,760 $ 12,760
St. Petersburg, Florida Capital Improvement
RB (Airport & Golf Course Project)
Series 1997C
5.65%, 01/07/00 910 910
St. Petersburg, Florida Capital Improvement
RB (Airport & Golf Course Project)
Series B
5.50%, 01/07/00 2,955 2,955
Sumter County, Florida IDA RB (Robbins
Manufacturing Project) Series 1997
5.20%, 01/07/00 1,980 1,980
Tallahassee & Leon County, Florida Civic
Center Authority Capital Improvement RB
Series A
5.55%, 01/07/00 7,000 7,000
Tampa, Florida Occupational License Tax
RB Series 1996A
5.25%, 01/07/00 985 985
Volusia County, Florida Health Facilities
Authority RB (South West Volusia Health
Project) Series 1994A
5.00%, 01/06/00 9,170 9,170
West Orange Healthcare District, Florida
RB Series 1999B
5.40%, 01/07/00 7,900 7,900
----------
707,675
----------
GEORGIA -- 0.8%
Cobb County, Georgia HFA M/F Housing RB
(Walton Green Project)
5.60%, 01/07/00 7,200 7,200
Walton County, Georgia Development
Authority RB (Walton Partners L.P. Project
5.70%, 01/07/00 3,050 3,050
----------
10,250
----------
IDAHO -- 0.4%
Idaho HFA RB (Assisted Living
Concepts Project)
5.55%, 01/07/00 2,910 2,910
Par Value
-------- ----------
Idaho Student Loan RB Series 1997A
5.50%, 01/07/00 $ 2,400 $ 2,400
----------
5,310
----------
ILLINOIS -- 1.0%
Chicago, Illinois O'Hare International
Airport RB ACES (General Airport Second
Lien) Series B1
5.60%, 01/07/00 9,400 9,400
Chicago, Illinois O'Hare International
Airport Special Facility RB
5.50%, 01/07/00 2,500 2,500
----------
11,900
----------
KANSAS -- 0.8%
Wichita, Kansas Airport Facilities Revenue
Refunding Bond (Flight Safety
International Project)
5.00%, 01/07/00 10,000 10,000
----------
PUERTO RICO -- 0.8%
Puerto Rico Commonwealth Highway &
Transportation Authority Series 1998A
5.00%, 01/07/00 9,300 9,300
----------
RHODE ISLAND -- 0.2%
Rhode Island State Student Loan Authority
Student Loan RB Series 1996-3
5.30%, 01/07/00 2,400 2,400
----------
TEXAS -- 0.7%
Trinity River Authority, Texas Solid Waste
Disposal RB (Community Waste Project)
5.65%, 01/07/00 8,000 8,000
----------
UTAH -- 0.3%
Utah State Board of Regents Student Loan
RB Series 1997R
5.65%, 01/07/00 4,100 4,100
----------
VIRGINIA -- 0.3%
Portsmouth, Virginia Redevelopment &
Housing Authority M/F Housing
RB (Churchland North Apartments Project)
5.65%, 01/07/00 3,000 3,000
----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $771,935) 771,935
----------
86
<PAGE>
Par Value
-------- ----------
TAX EXEMPT COMMERCIAL PAPER -- 10.6% (c)
FLORIDA -- 6.4%
Florida Local Government Finance
Commission Pooled TECP Series A
3.74%, 01/31/00 $15,000 $ 15,000
3.80%, 03/06/00 2,500 2,500
3.95%, 03/14/00 2,500 2,500
Florida Local Government Finance
Commission Pooled TECP Series B
4.00%, 03/14/00 3,000 3,000
Orange County, Florida HFA Pooled Hospital
Loan TECP (f)
3.55%, 02/18/00 8,500 8,500
3.85%, 03/02/00 15,000 15,000
Orange County, Florida TECP Series A (f)
3.60%, 01/25/00 2,614 2,614
Pinellas County, Florida Educational
Facilities TECP (f)
3.85%, 01/27/00 5,700 5,700
3.70%, 02/03/00 12,000 12,000
Sunshine State Governmental Finance
Community TECP (f)
3.60%, 01/18/00 1,178 1,178
3.70%, 04/11/00 10,000 10,000
----------
77,992
----------
PUERTO RICO -- 4.2%
Goverment Development Bank For Puerto
Rico TECP
3.75%, 01/18/00 10,000 10,000
3.54%, 01/26/00 15,000 15,000
3.55%, 01/26/00 5,000 5,000
3.60%, 03/02/00 1,830 1,830
3.60%, 03/06/00 5,000 5,000
3.70%, 04/11/00 14,000 14,000
----------
50,830
----------
TOTAL TAX EXEMPT COMMERCIAL PAPER
(Cost $128,822) 128,822
----------
TAX ANTICIPATION NOTES -- 7.2% (c)
Brevard County, Florida School District TAN
3.85%, 06/30/00 11,100 11,105
Par Value
-------- ----------
Miami Dade County, Florida School
District TAN
3.84%, 06/28/00 $20,000 $ 20,009
3.88%, 06/28/00 1,000 1,000
Pinellas County, Florida School District TAN
3.67%, 06/30/00 10,000 10,028
3.92%, 06/30/00 35,000 35,049
4.22%, 06/30/00 10,000 10,028
----------
TOTAL TAX ANTICIPATION NOTES
(Cost $87,219) 87,219
----------
VARIABLE RATE TENDER OPTION BONDS -- 4.4% (a)(b)(f)
Dade County, Florida TOB
5.56%, 01/07/00 6,345 6,345
Eagle Dade County, Florida Water and Sewer
TOB Series 1993S
5.56%, 01/07/00 12,500 12,500
Escambia County, Florida HFA S/F Housing
TOBP (PT-1017)
5.61%, 01/06/00 7,545 7,545
Florida State Board of Education Capital
Outlay TOB Series 190
3.37%, 01/07/00 1,175 1,175
Fort Meyers , Florida Utility Revenue
Refunding TOB Series 1999A
3.44%, 01/07/00 2,495 2,495
Jacksonville, Florida Port Authority TOB
5.58%, 01/07/00 10,100 10,100
Palm Beach County, Florida Criminal Justice
Facilities TOB Series 191
2.25%, 01/07/00 4,495 4,495
Sunrise, Florida Utility Systems Revenue
Refunding Bond TOBP (PA-492)
5.56%, 01/07/00 1,565 1,565
Tampa, Florida Sports Authority TOB
Series 1999
3.90%, 01/07/00 7,120 7,120
----------
TOTAL VARIABLE RATE TENDER
OPTION BONDS
(Cost $53,340) 53,340
----------
87
<PAGE>
SCHWAB FLORIDA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS (in thousands) (continued)
December 31, 1999
Par Value
-------- ----------
REVENUE BONDS -- 4.3% (c)
FLORIDA -- 2.7%
Florida Ports Financing Commission
Revenue Refunding Bond (State
Transportation Trust Fund) (f)
3.07%, 06/01/00 $ 500 $ 502
Florida State Inland Protection Financing
Corp. Special Obligation (f)
3.70%, 07/01/00 3,265 3,286
Hillsborough County, Florida Capital
Improvement Program RB (Criminal
Justice Facilities Project) (f)
3.48%, 08/01/00 4,100 4,129
Jacksonville, Florida Electric Authority RB
(Bulk Power Supply Scherer)
Series 1991-4-1A (f)
3.70%, 10/01/00 2,500 2,591
Lakeland, Florida Electric & Water
Revenue Refunding Bonds
Series 1999B (f)
3.79%, 10/01/00 9,175 9,343
Orange County, Florida HFA Homeowner
RB Series 1999A-3
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 1,679
Pinellas County, Florida HFA S/F RB
(Short-Term Multi-County) Series 1999B3
3.45%, 07/21/00 6,455 6,455
----------
31,985
----------
NEVADA -- 0.0% (f)
Las Vegas Valley, Nevada Water District
Refunding & Improvement Water RB
4.15%, 09/01/00 200 201
----------
TENNESSE -- 1.0%
Tennessee HDA (Home Ownership Program)
Series 1999-2C
3.57%, 08/15/00 12,500 12,500
----------
TEXAS -- 0.2% (f)
Houston, Texas Airport System Special
Facilities RB Series 1997A
3.60%, 07/01/00 2,230 2,248
----------
Par Value
-------- ----------
WASHINGTON -- 0.4%
Washington State Public Power Supply
Systems Revenue Refunding Bonds
(Nuke Project #2) Series 1992A
3.60%, 07/01/00 $ 2,000 $ 2,018
Washington State Public Power Supply
Systems Revenue Refunding Bonds (Nuke
Project #2) Series 1993B
3.60%, 07/01/00 3,170 3,192
----------
5,210
----------
TOTAL REVENUE BONDS
(Cost $52,144) 52,144
----------
GENERAL OBLIGATION BONDS -- 2.7% (c)
Florida State Board of Education Capital
Outlay GO
3.42%, 06/01/00 4,300 4,354
Florida State Board of Education Capital
Outlay GO Series 1989A (f)
1.40%, 06/01/00 1,085 1,111
Florida State Board of Education Capital
Outlay Public Education GO Series 1996A
3.47%, 06/01/00 1,555 1,577
Florida State Board of Education Capital
Outlay Public Education GO Series 1997B
3.30%, 06/01/00 1,180 1,195
Hillsborough County, Florida School
District GO (f)
3.95%, 08/15/00 23,665 24,577
----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $32,814) 32,814
----------
MANDATORY PUT BONDS -- 2.6% (c)
FLORIDA -- 0.3%
Orange County, Florida IDA RB (General
Accident Insurance Co. of America Project)
3.95%, 06/01/00 3,500 3,500
----------
TEXAS -- 2.1% (f)
Greater East Texas Higher Education
Authority Student Loan RB
Series 1992A
3.80%, 09/01/00 25,000 25,000
----------
88
<PAGE>
Par Value
-------- ----------
VIRGINIA -- 0.2% (f)
Arlington County, Virginia IDA M/F
Housing RB (Arna Valley View
Apartments Project)
3.60%, 08/01/00 $ 2,500 $ 2,500
----------
TOTAL MANDATORY PUT BONDS
(Cost $31,000) 31,000
----------
CERTIFICATES OF PARTICIPATION -- 0.4% (c)(f)
Miami & Dade County, Florida School Board
COP Series 1998C
3.45%, 08/01/00 5,000 5,023
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $5,023) 5,023
----------
FIXED RATE TENDER OPTION BONDS -- 0.4% (c)(e)(f)
Puerto Rico Public Financing Corp. TOBP
(PT-293)
3.55%, 10/12/00 4,925 4,925
----------
TOTAL FIXED RATE TENDER OPTION BONDS
(Cost $4,925) 4,925
----------
REVENUE ANTICIPATION NOTES -- 0.3% (c)
Brevard County, Florida School Board RAN
3.38%, 05/06/00 4,000 4,001
----------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $4,001) 4,001
----------
TOTAL INVESTMENTS -- 96.4%
(Cost $1,171,223) 1,171,223
----------
OTHER ASSETS AND LIABILITIES-- 3.6%
Other assets 44,157
Liabilities (208)
----------
43,949
----------
TOTAL NET ASSETS-- 100.0% $1,215,172
==========
SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL
STATEMENTS.
89
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS
December 31, 1999
(All dollar amounts are in thousands unless otherwise noted)
For each security, cost and carrying value for financial reporting and federal
income tax purposes are the same.
(a) These securities can be resold to qualified institutional buyers within
seven business days. Such securities are deemed liquid in accordance with
procedures adopted by the Board of Trustees. At December 31, 1999, the
aggregate value of such 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 $901,335, $575,320,
$180,480, $31,790, $15,890 and $64,540, respectively, which represented
10.78%, 11.37%, 20.05%, 15.42%, 9.69% and 5.31% of the net assets of each
fund, respectively.
(b) Variable rate obligations have interest rates that 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) These securities have legal or contractual restrictions on resale. Such
securities are deemed illiquid in accordance with procedures adopted by the
Board of Trustees. At December 31, 1999, the aggregate value of such
securities held by 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 $257,037, $33,970, $6,060, $9,495, $8,610
and $4,925, respectively, which represented 3.07%, 0.67%, 0.67%, 4.61%,
5.25% and 0.41%, respectively, of the net assets of each fund.
(f) Security has one or more third party credit enhancements.
(g) Rate shown is the yield as of the report date.
90
<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.
91
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
December 31, 1999
<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: $8,290,042, $5,139,768 and
$898,613, respectively) $ 8,290,042 $ 5,139,768 $ 898,613
Cash 7,624 -- --
Receivables:
Interest 60,110 44,595 7,702
Investments sold 36,821 -- --
Fund shares sold 6,279 14,759 376
Prepaid expenses 758 112 40
----------- ----------- ---------
Total assets 8,401,634 5,199,234 906,731
----------- ----------- ---------
LIABILITIES
Payables:
Dividends 1,807 605 125
Investments purchased 17,869 131,089 5,000
Fund shares redeemed 19,655 6,049 1,447
Investment advisory and administration fees 286 166 33
Transfer agency and shareholder service fees 632 374 66
Other liabilities 522 330 96
----------- ----------- ---------
Total liabilities 40,771 138,613 6,767
----------- ----------- ---------
Net assets applicable to outstanding shares $ 8,360,863 $ 5,060,621 $ 899,964
=========== =========== =========
NET ASSETS CONSIST OF
Paid-in capital $ 8,364,124 $ 5,061,701 $ 900,038
Accumulated net realized loss on investments sold (3,261) (1,080) (74)
----------- ----------- ---------
$ 8,360,863 $ 5,060,621 $ 899,964
=========== =========== =========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 6,093,633 3,458,122 604,217
Outstanding Value Advantage Shares 2,270,760 1,603,678 295,884
----------- ----------- ---------
8,364,393 5,061,800 900,101
=========== =========== =========
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.
92
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (in thousands)
December 31, 1999
<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: $205,166, $162,695 and
$1,171,223, respectively) $205,166 $162,695 $1,171,223
Cash 14 57 6,648
Receivables:
Interest 1,983 1,211 7,464
Investments sold -- -- 30,009
Prepaid expenses 19 27 36
-------- -------- ----------
Total assets 207,182 163,990 1,215,380
-------- -------- ----------
LIABILITIES
Payables:
Dividends 16 9 73
Investments purchased 1,004 -- --
Investment advisory fees and administration fees 4 4 20
Transfer agency and shareholder service fees 17 14 79
Other liabilities 38 36 36
-------- -------- ----------
Total liabilities 1,079 63 208
-------- -------- ----------
Net assets applicable to outstanding shares $206,103 $163,927 $1,215,172
======== ======== ==========
NET ASSETS CONSIST OF
Paid-in capital $206,119 $163,936 $1,215,186
Accumulated net realized loss on investments sold (16) (9) (14)
-------- -------- ----------
$206,103 $163,927 $1,215,172
======== ======== ==========
PRICING OF SHARES
$0.00001 par value (unlimited shares authorized)
Outstanding Sweep Shares 206,155 163,973 1,215,209
Net asset value, offering and redemption price per share $1.00 $1.00 $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
STATEMENTS OF OPERATIONS (in thousands)
For the year ended December 31, 1999
<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 $ 252,220 $ 134,044 $ 25,460 $ 4,530 $ 4,566 $19,539
--------- --------- -------- ------- ------- -------
Expenses:
Investment advisory and
administration fees 28,152 16,455 3,166 559 556 2,381
Transfer agency and shareholder
service fees:
Sweep Shares 25,168 13,218 2,354 628 616 2,629
Value Advantage Shares 4,953 3,620 645 -- -- --
Custodian and portfolio
accounting fees 634 450 241 78 77 168
Registration fees 1,062 439 90 13 10 145
Professional fees 92 58 32 18 17 22
Shareholder reports 421 115 29 4 4 13
Trustees' fees 25 23 14 6 4 9
Other expenses 67 51 13 5 5 11
--------- --------- -------- ------- ------- -------
60,574 34,429 6,584 1,311 1,289 5,378
Less: expenses reduced (see Note 4) (14,745) (8,820) (1,814) (404) (399) (1,931)
--------- --------- -------- ------- ------- -------
Net expenses incurred by fund 45,829 25,609 4,770 907 890 3,447
--------- --------- -------- ------- ------- -------
Net investment income 206,391 108,435 20,690 3,623 3,676 16,092
Net realized loss on investments sold (758) (270) (53) (16) (4) (14)
--------- --------- -------- ------- ------- -------
Increase in net assets resulting
from operations $ 205,633 $ 108,165 $ 20,637 $ 3,607 $ 3,672 $16,078
========= ========= ======== ======= ======= =======
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended December 31,
<TABLE>
<CAPTION>
Schwab Schwab California Schwab New York
Municipal Money Fund Municipal Money Fund Municipal Money Fund
-------------------------- ------------------------- ------------------------
1999 1998 1999 1998 1999 1998
------------- ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 206,391 $ 180,308 $ 108,435 $ 92,312 $ 20,690 $ 16,747
Net realized gain (loss) on
investments sold (758) 337 (270) (34) (53) (7)
------------- ------------- ------------ ------------ ----------- -----------
Increase in net assets
resulting from operations 205,633 180,645 108,165 92,278 20,637 16,740
------------- ------------- ------------ ------------ ----------- -----------
Dividends to shareholders
from net investment income
(See Note 2):
Sweep Shares (149,157) (135,406) (70,760) (59,906) (13,429) (11,347)
Value Advantage Shares (57,234) (45,171) (37,675) (32,505) (7,261) (5,451)
------------- ------------- ------------ ------------ ----------- -----------
Total dividends to
shareholders (206,391) (180,577) (108,435) (92,411) (20,690) (16,798)
------------- ------------- ------------ ------------ ----------- -----------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 29,207,646 23,318,964 15,044,804 11,624,728 2,685,061 2,031,062
Net asset value of shares
issued in reinvestment
of dividends 220,975 172,257 116,671 88,948 22,245 15,938
Payments for shares
redeemed (27,933,769) (22,133,590) (14,070,363) (10,835,101) (2,513,226) (1,823,763)
------------- ------------- ------------ ------------ ----------- -----------
Increase in net assets
from capital share
transactions 1,494,852 1,357,631 1,091,112 878,575 194,080 223,237
------------- ------------- ------------ ------------ ----------- -----------
Total increase in net assets 1,494,094 1,357,699 1,090,842 878,442 194,027 223,179
Net assets:
Beginning of period 6,866,769 5,509,070 3,969,779 3,091,337 705,937 482,758
------------- ------------- ------------ ------------ ----------- -----------
End of period $ 8,360,863 $ 6,866,769 $ 5,060,621 $ 3,969,779 $ 899,964 $ 705,937
============= ============= ============ ============ =========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
95
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended December 31,
<TABLE>
<CAPTION>
Schwab New Jersey Schwab Pennsylvania Schwab Florida
Municipal Money Fund Municipal Money Fund Municipal Money Fund
---------------------- ---------------------- --------------------------
1999 1998 1 1999 1998 1 1999 1998 2
--------- --------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 3,623 $ 1,604 $ 3,676 $ 1,682 $ 16,092 $ 9,768
Net realized loss on
investments sold (16) -- (4) (5) (14) --
--------- --------- --------- --------- ----------- -----------
Increase in net assets resulting
from operations 3,607 1,604 3,672 1,677 16,078 9,768
--------- --------- --------- --------- ----------- -----------
Dividends to shareholders from net
investment income
(See Note 2): (3,623) (1,640) (3,676) (1,719) (16,092) (9,791)
--------- --------- --------- --------- ----------- -----------
Capital share transactions (at $1.00 per share):
Proceeds from shares sold 686,811 330,574 571,748 335,122 2,586,830 2,075,332
Net asset value of shares issued
in reinvestment of dividends 3,855 1,305 3,991 1,300 17,378 7,864
Payments for shares
redeemed (582,462) (233,928) (533,524) (214,664) (2,405,514) (1,066,681)
--------- --------- --------- --------- ----------- -----------
Increase in net assets from
capital share transactions 108,204 97,951 42,215 121,758 198,694 1,016,515
--------- --------- --------- --------- ----------- -----------
Total increase in net assets 108,188 97,915 42,211 121,716 198,680 1,016,492
Net assets:
Beginning of period 97,915 -- 121,716 -- 1,016,492 --
--------- --------- --------- --------- ----------- -----------
End of period $ 206,103 $ 97,915 $ 163,927 $ 121,716 $ 1,215,172 $ 1,016,492
========= ========= ========= ========= =========== ===========
<FN>
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.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
96
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab Municipal Money Fund
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED 12/31 1999 1998 1997 1996 1995
SWEEP SHARES
PER SHARE DATA ($)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
-----------------------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.03
-----------------------------------------------------------------
Total from investment operations 0.03 0.03 0.03 0.03 0.03
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03)
-----------------------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.03)
-----------------------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
=================================================================
Total return (%) 2.70 2.92 3.11 2.92 3.30
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.66 0.66 0.66 3 0.66 0.66
Reductions reflected in above expense ratio 0.19 0.22 0.24 0.24 0.25
Ratio of net investment income to
average net assets 2.67 2.87 3.06 2.89 3.25
Net assets, end of period ($ X 1,000) 6,090,404 5,246,638 4,423,841 3,868,919 3,403,837
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
1/1/99- 1/1/98- 1/1/97- 1/1/96- 7/7/95-
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
VALUE ADVANTAGE SHARES
PER SHARE DATA ($)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
-----------------------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.02
-----------------------------------------------------------------
Total income from investment operations 0.03 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.02)
-----------------------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.02)
-----------------------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
=================================================================
Total return (%) 2.91 3.14 3.32 3.14 1.68 1
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.45 0.45 0.45 4 0.45 0.45 2
Reductions reflected in above expense ratio 0.20 0.24 0.27 0.30 0.50 2
Ratio of net investment income to
average net assets 2.89 3.08 3.29 3.10 3.50 2
Net assets, end of period ($ X 1,000) 2,270,459 1,620,131 1,085,229 608,080 160,682
<FN>
1 Not annualized.
2 Annualized.
3 Would have been 0.67% if certain extraordinary expenses had been included.
4 Would have been 0.46% if certain extraordinary expenses had been included.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
97
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab California Municipal Money Fund
- ----------------------------------------------------------------------------------------------------------
YEAR ENDED 12/31 1999 1998 1997 1996 1995
SWEEP SHARES
PER SHARE DATA ($)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------
From investment operations:
Net investment income 0.02 0.03 0.03 0.03 0.03
------------------------------------------------------------
Total from investment operations 0.02 0.03 0.03 0.03 0.03
Less distributions:
Dividends from net investment income (0.02) (0.03) (0.03) (0.03) (0.03)
------------------------------------------------------------
Total distributions (0.02) (0.03) (0.03) (0.03) (0.03)
------------------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
============================================================
Total return (%) 2.42 2.64 2.95 2.80 3.20
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.65 0.65 0.65 3 0.65 0.65
Reductions reflected in above expense ratio 0.20 0.24 0.26 0.27 0.29
Ratio of net investment income to
average net assets 2.41 2.60 2.91 2.77 3.15
Net assets, end of period ($ X 1,000) 3,457,094 2,610,821 2,154,522 1,816,112 1,577,695
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
1/1/99- 1/1/98- 1/1/97- 1/1/96- 10/3/95-
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
VALUE ADVANTAGE SHARES
PER SHARE DATA ($)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.01
------------------------------------------------------------
Total income from investment operations 0.03 0.03 0.03 0.03 0.01
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.01)
------------------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.01)
------------------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
============================================================
Total return (%) 2.62 2.84 3.15 3.01 0.84 1
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.45 0.45 0.45 4 0.45 0.45 2
Reductions reflected in above expense ratio 0.20 0.25 0.27 0.32 0.59 2
Ratio of net investment income to
average net assets 2.60 2.79 3.12 2.98 3.48 2
Net assets, end of period ($ X 1,000) 1,603,527 1,358,958 936,815 507,486 108,008
<FN>
1 Not annualized.
2 Annualized.
3 Would have been 0.66% if certain extraordinary expenses had been included.
4 Would have been 0.46% if certain extraordinary expenses had been included.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
98
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab New York Municipal Money Fund
- -------------------------------------------------------------------------------------------------------------
1/1/99- 1/1/98- 1/1/97- 1/1/96- 2/27/95-
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
SWEEP SHARES
PER SHARE DATA ($)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
-----------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.03
-----------------------------------------------------
Total from investment operations 0.03 0.03 0.03 0.03 0.03
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03)
-----------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.03)
-----------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
=====================================================
Total return (%) 2.59 2.78 2.96 2.74 2.75 1
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.69 0.69 0.69 3 0.69 0.63 2
Reductions reflected in above expense ratio 0.22 0.28 0.33 0.35 0.41 2
Ratio of net investment income to
average net assets 2.57 2.73 2.93 2.71 3.20 2
Net assets, end of period ($ X 1,000) 604,116 467,750 357,221 270,612 204,863
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
1/1/99- 1/1/98- 1/1/97- 1/1/96- 7/7/95-
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
VALUE ADVANTAGE SHARES
PER SHARE DATA ($)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00
-----------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.02
-----------------------------------------------------
Total income from investment operations 0.03 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.02)
-----------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.02)
-----------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00
=====================================================
Total return (%) 2.83 3.03 3.21 2.99 1.62 1
RATIOS/SUPPLEMENTAL DATA (%)
- ----------------------------------------------------
Ratio of net operating expenses to average net assets 0.45 0.45 0.45 4 0.45 0.45 2
Reductions reflected in above expense ratio 0.26 0.33 0.40 0.56 1.36 2
Ratio of net investment income to average net assets 2.81 2.96 3.18 2.98 3.42 2
Net assets, end of period ($ X 1,000) 295,848 238,187 125,537 66,683 15,143
<FN>
1 Not annualized.
2 Annualized.
3 Would have been 0.70% if certain extraordinary expenses had been included.
4 Would have been 0.46% if certain extraordinary expenses had been included.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
99
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Schwab New Jersey Schwab Pennsylvania Schwab Florida
Municipal Money Fund Municipal Money Fund Municipal Money Fund
- ----------------------------------------------------------------------------------------------------------------
1/1/99- 2/2/98- 1/1/99- 2/2/98- 1/1/99- 3/18/98-
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
PER SHARE DATA ($)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
----------------------------------------------------------------
From investment operations:
Net investment income 0.03 0.03 0.03 0.03 0.03 0.02
----------------------------------------------------------------
Total from investment operations 0.03 0.03 0.03 0.03 0.03 0.02
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03) (0.02)
----------------------------------------------------------------
Total distributions (0.03) (0.03) (0.03) (0.03) (0.03) (0.02)
----------------------------------------------------------------
NET ASSET VALUE AT END OF PERIOD 1.00 1.00 1.00 1.00 1.00 1.00
================================================================
Total return (%) 2.58 2.60 1 2.71 2.72 1 2.78 2.37 1
RATIOS/SUPPLEMENTAL DATA (%)
- ------------------------------------------
Ratio of net operating expenses to
average net assets 0.65 0.65 2 0.65 0.65 2 0.59 0.59 2
Reductions reflected in above expense ratio 0.29 0.48 2 0.29 0.51 2 0.33 0.41 2
Ratio of net investment income to
average net assets 2.60 2.75 2 2.68 2.85 2 2.75 2.95 2
Net assets, end of period ($ X 1,000) 206,103 97,915 163,927 121,716 1,215,172 1,016,492
<FN>
1 Not annualized.
2 Annualized.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
100
<PAGE>
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 1999
(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)
and investment minimums.
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 and original issue discount 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.
101
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
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, 1999, the unused capital loss carryforwards, for federal
income tax purposes with expiration dates, were as follows:
<TABLE>
<CAPTION>
Schwab Schwab Schwab Schwab Schwab
Schwab California New York New Jersey Pennsylvania Florida
Municipal Municipal Municipal Municipal Municipal Municipal
Expiring in: Money Fund Money Fund Money Fund Money Fund Money Fund Money Fund
---------- ---------- ---------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
12/31/00 $ -- $ 1 $-- $-- $-- $--
12/31/01 -- 56 -- -- -- --
12/31/02 1,436 582 -- -- -- --
12/31/03 36 -- 6 -- -- --
12/31/04 465 93 9 -- -- --
12/31/05 523 35 -- -- -- --
12/31/06 -- 42 6 -- 5 1
12/31/07 775 274 53 16 5 14
------ ------ --- --- --- ---
Total capital loss carryforwards $3,235 $1,083 $74 $16 $10 $15
====== ====== === === === ===
</TABLE>
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS -- The funds have 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 net assets in
excess of $1 billion to $10 billion, 0.32% on such net assets in excess of $10
billion to $20 billion, and 0.30% on such net assets in excess of $20 billion.
Prior to April 30, 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 year ended December 31, 1999
(see Note 4).
102
<PAGE>
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 year ended December 31, 1999 (see Note 4).
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
year ended December 31, 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 $81 related to the Trust's
unaffiliated trustees.
INTERFUND TRANSACTIONS -- During the year ended December 31, 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 $3,341,625
Schwab California Municipal Money Fund $ 575,885
Schwab New York Municipal Money Fund $ 449,395
Schwab New Jersey Municipal Money Fund $ 483,122
Schwab Pennsylvania Municipal Money Fund $ 407,704
Schwab Florida Municipal Money Fund $1,725,150
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% --
103
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
For the year ended December 31, 1999, the total of such fees reduced by the
investment adviser and Schwab was as follows:
Fees Reduced by the Fees Reduced by
investment adviser Schwab
------------------- ---------------
Schwab Municipal Money Fund $14,529 $216
Schwab California Municipal Money Fund $ 8,816 $ 4
Schwab New York Municipal Money Fund $ 1,708 $106
Schwab New Jersey Municipal Money Fund $ 404 --
Schwab Pennsylvania Municipal Money Fund $ 399 --
Schwab Florida Municipal Money Fund $ 1,931 --
5. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares, for the years ended December 31, 1999 and
December 31, 1998 (at $1.00 per share), were as follows:
<TABLE>
<CAPTION>
Schwab Municipal Schwab California Municipal Schwab New York Municipal
Money Fund Money Fund Money Fund
----------------------------- ---------------------------- --------------------------
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from shares sold:
Sweep Shares $ 25,547,075 $ 20,195,590 $ 13,072,679 $ 9,633,080 $ 2,312,453 $ 1,718,551
Value Advantage Shares 3,660,571 3,123,374 1,972,125 1,991,648 372,608 312,511
------------ ------------ ------------ ------------ ----------- -----------
Total 29,207,646 23,318,964 15,044,804 11,624,728 2,685,061 2,031,062
------------ ------------ ------------ ------------ ----------- -----------
Net asset value of shares issued
in reinvestment of dividends:
Sweep Shares 162,369 131,573 76,680 58,632 14,494 10,945
Value Advantage Shares 58,606 40,684 39,991 30,316 7,751 4,993
------------ ------------ ------------ ------------ ----------- -----------
Total 220,975 172,257 116,671 88,948 22,245 15,938
------------ ------------ ------------ ------------ ----------- -----------
Payments for shares
redeemed:
Sweep Shares (24,865,127) (19,504,411) (12,302,903) (9,235,322) (2,190,547) (1,618,924)
Value Advantage Shares (3,068,642) (2,629,179) (1,767,460) (1,599,779) (322,679) (204,839)
------------ ------------ ------------ ------------ ----------- -----------
Total (27,933,769) (22,133,590) (14,070,363) (10,835,101) (2,513,226) (1,823,763)
------------ ------------ ------------ ------------ ----------- -----------
Increase in net assets
from capital share
transactions $ 1,494,852 $ 1,357,631 $ 1,091,112 $ 878,575 $ 194,080 $ 223,237
============ ============ ============ ============ =========== ===========
</TABLE>
104
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of:
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
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Schwab 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 (six of the portfolios constituting The
Charles Schwab Family of Funds, hereafter referred to as the "Funds") at
December 31, 1999, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
San Francisco, California
February 4, 2000
105
<PAGE>
TAX DESIGNATIONS (Unaudited)
Pursuant to Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby
designate 100% of the dividends paid for the year ended December 31, 1999 as
exempt-interest dividends.
106
<PAGE>
THE SCHWABFUNDS FAMILY-REGISTERED TRADEMARK-
The SchwabFunds 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 YieldPlus Fund-TM-
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.
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INVESTMENT ADVISER
Charles Schwab Investment Management, Inc.
101 Montgomery Street, 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-2000 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC/NYSE.
Printed on recycled paper. MKT3603-2 (2/00)
