Statement Regarding Schwab U.S. Treasury Money Fund™
Due to the unprecedented conditions in the U.S. Treasury securities market, the Schwab U.S. Treasury Money Fund is closed to new accounts effective Monday, December 22, 2008 at 12:01 a.m. PT. The Fund will continue to accept additional investments from existing account holders who have selected the Fund as their sweep feature. Schwab believes this closure is in the best interests of the shareholders in the fund since it reduces the amount of assets that the Fund needs to invest at historically low yields. In addition, given the unusual Treasury market conditions, the Fund may elect to invest up to 20 percent of its net assets in non-Treasury investments. These non-Treasury investments will be limited to U.S. government agency securities and securities that are guaranteed under the FDIC’s Temporary Liquidity Guarantee Program. Please refer to the fund prospectus for further details on investment objectives, risks, charges, tax implications and expenses. We anticipate re-opening the Fund when market conditions stabilize.
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.