Schwab® Monthly Income Funds

A fund's actual annual payout may vary from one year to the next and over time due to several factors, including, without limitation, 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. Although a fund has its own distinct asset allocation strategy that is designed to accommodate the fund's targeted annual payout percentage while taking into account the fund's specific risk tolerances and desired level of capital appreciation, the fund's actual annual payout could be higher or lower.

The funds intend to allocate investments among various asset classes such as equity, fixed income and cash and cash equivalents (including money market funds). Each fund's target asset allocation is not fixed, and each fund has the flexibility to move within its asset allocation ranges (under normal market conditions) at the discretion of the investment adviser. Market appreciation or depreciation may cause a fund to temporarily be outside their ranges.

The Schwab Monthly Income Funds with a higher percent of equity investments generally have the greatest opportunity for potential growth. With this opportunity comes increased risk and the likelihood for fluctuation in net asset value. Actual asset allocation may vary over time depending on market conditions.

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. For distribution information, please visit www.schwab.com/monthlyincome or call 800-548-5589.