A strategy designed to provide monthly income while preserving growth potential for future income needs

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can view, download and print a prospectus by going to Prospectus & Reports or calling 800-435-4000. Please read the prospectus carefully before investing. Investment value and return will fluctuate, such that shares, when redeemed, may be worth more or less than original cost.

Bond funds are subject to credit risk and loss of principal during periods of rising interest rates.

1.In the funds’ early months of operation as assets are accumulating to build the portfolios, monthly dividends may be lower than the typical dividend paid in later months. There is no guarantee that a fund will make monthly income payments or that the amount of such payments will remain fixed throughout the year. The dollar amount of a fund’s monthly income payments could vary substantially from one year to the next and over time depending on several factors, including the interest rate environment, the performance of the financial markets in which the fund invests, the allocation of fund assets across different asset classes and investments, and the amount and timing of prior distributions by the fund. The funds’ monthly income payments will be made from fund assets and will reduce the amount of assets available for investment by a fund. Any income payments made during periods when fund assets are decreasing due to market conditions or shareholder redemptions will further decrease the fund’s assets.
2. Yield targets are based on anticipated market returns. Actual returns may vary based on market conditions. Payout ranges mentioned are not actual rates of return or yields, but simply a target payout percentage set by the advisor, based on historic yield environments over a ten year period.
3. Schwab and the investment adviser have agreed to maintain the “net operating expenses” of each of the Funds at 0.00% for so long as the investment adviser serves as adviser to the Funds. This agreement is limited to each Fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by a Fund through its investments in the underlying funds. This net operating expense agreement may only be amended or terminated with the approval of the Funds' Board of Trustees.