Starting in August and ending in October, 2009, clients who hold certain Schwab mutual fund symbols will have their holdings converted to another symbol for the same fund.  All symbols affected and the dates the changes are expected to occur are shown in the chart below.  Answers to some frequently-asked questions are shown below the chart. See FAQs now.

Schwab Funds Mutual Fund Consolidations
Change Date	Fund	Old Symbol(s)	New Symbol
08/10/2009	Schwab GNMA Fund™	SWGIX	SWGSX
	Schwab YieldPlus Fund®	SWYPX	SWYSX
	Schwab Inflation Protected Fund™	SWRIX	SWRSX
	Schwab Premier Income Fund	SWIPX and SWILX	SWIIX
Cell 23:1
08/21/2009	Schwab International Index Fund®	SWINX	SWISX
	Schwab Small-Cap Index Fund®	SWSMX	SWSSX
Cell 24:1
09/09/2009	Schwab S&P 500 Index Fund	SWPEX, SWPIX and ISLCX	SWPPX
Cell 19:1
09/18/2009	Schwab Total Stock Market Index Fund®	SWTIX	SWTSX
	Schwab 1000 Index® Fund	SNXSX	SNXFX
Cell 29:1
09/28/2009	Schwab Global Real Estate Fund™	SWAIX	SWASX
	Schwab Small-Cap Equity Fund™	SWSIX	SWSCX
	Schwab Hedged Equity Fund™	SWHIX	SWHEX
	Schwab Premier Equity Fund®	SWPNX	SWPSX
Cell 14:1
10/07/2009	Schwab International Core Equity Fund®	SICVX and SICSX	SICNX
	Schwab Dividend Equity Fund™	SWDIX	SWDSX
	Schwab Large-Cap Growth Fund™	SWLNX	SWLSX
Cell 11:1
10/19/2009	Schwab Fundamental International1 Large Company Index Fund	SFNVX and SFNSX	SFNNX
	Schwab Fundamental Emerging Markets1 Index Fund	SFEMX and SFESX	SFENX
	Schwab Fundamental International1 Small-Mid Company Index Fund	SFIVX and SFSMX	SFILX
Cell 3:1
10/27/2009	Schwab Fundamental U.S. Small-Mid Company1 Index Fund	SFSVX and SFSSX	SFSNX
	Schwab Fundamental U.S. Large Company1 Index Fund	SFLVX and SFLSX	SFLNX

FAQs

Q: Do I need to take any action/How does this affect me?

A: For most clients, no action is required on your part and the changes will occur automatically according to the schedule shown above.  You will begin to see the new symbol in your portfolio once conversions are completed, and will see merger transactions out of the old symbol and into the new one in the activity section of your monthly or quarterly statement.
 
If you have AIP instructions in any fund listed in the chart above (except for the Institutional Select S&P 500 Fund (ISLCX), you will have received a notification letter that your instructions will be moved to the surviving symbol for the fund you are invested in.  Your AIP purchases will go to the new symbol beginning with the first scheduled purchase after the date the share classes for your fund are consolidated.  However, if your instructions are in the Institutional Select S&P 500 Fund (ISLCX), your instructions cannot be automatically moved and you will be contacted by phone to update them.

Q:  If my symbol is changing, do I own the same fund?

A:  Yes! Many Schwab Funds used to have multiple share classes with tiered fees—share classes with higher minimum investment amounts offered a lower OER.  When we eliminated tiered fees and made funds available with a $100 minimum investment, we ended up with more than one symbol for a fund with identical features and expenses, so we are eliminating the extra symbols.  The underlying portfolios in the collapsing and surviving symbols for a fund are identical.

Q: When are symbol changes occurring?

A: Symbols are changing on 8 dates, starting in August and finishing at the end of October.  The chart above shows when symbols for particular funds are changing.

Q: What will happen to the cost basis for my holdings when my symbol changes?

A: Your cost basis will be preserved under the new symbol you own.

Q:  Will there be any tax implications for me when my shares are converted to the new symbol?

A:  No. These symbol changes are part of share class collapses that are considered to be tax-free for U.S. Federal income tax purposes.

Q: What will happen to the Morningstar rating for my fund?

A: Comprehensive Morningstar ratings will be available immediately for all surviving symbols, based upon that symbol’s historic performance.  It is unlikely but possible that your new symbol may have a different rating than your old symbol due to subtle performance calculation differences, resulting from different fund inception dates and historic share class expense differences.

Q:  Is there up-to-date performance information for the fund?

A:  Yes, the performance for your fund can be found using the surviving symbol for that fund.


1. SCHWAB is a registered trademark of Charles Schwab & Co., Inc.  Fundamental Index, Fundamental U.S. Large Company, Fundamental U.S. Small-Mid Company, Fundamental Emerging Markets and Fundamental International are trademarks of Research Affiliates, LLC.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
 
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