Treasury's Temporary Guarantee Program for Money Market Funds Expired on September 18, 2009
The U.S. Department of the Treasury's Temporary Guarantee Program (the "Program") for Money Market Funds expired on September 18, 2009. The Treasury established the Program on September 19, 2008 and it was extended twice to reach the maximum one year duration that was allowed when the Program was initially introduced. Market liquidity has improved since the introduction of the Program and no money fund has experienced an event which triggered the Guarantee.
Under the Program, the U.S. Treasury guaranteed to investors that they would receive $1 for each money market fund share held as of the close of business on September 19, 2008. All Schwab money funds participated in the Temporary Guarantee Program. The Schwab U.S. Treasury Money Fund (SWUXX) and the Schwab Government Money Fund (SWGXX) did not participate in the program’s extension from April 30, 2009 to September 18, 2009.
Schwab’s investment philosophy continues to emphasize credit quality, safety and liquidity when purchasing securities for Money Market Funds.
An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.