0 Schwab Monthly Income Fund - Income Payout 
(SWLRX)
 		Schwab Monthly Income Fund - Flexible Payout 
(SWKRX)
1 Managed Payout Policy
 Designed to offer an annual payout based on underlying fund yields and the market environment Designed to offer a targeted annual payout during most market environments and seeks to maximize annual payout while maintaining or growing the level of original investment over the long term
2 Target Annual Payout
0%–3% low-rate environment
3%–5% normal-rate environment
5%+ high-rate environment
 4%–6%
3 Payout Source
  • Interest
  • Dividends
  • Capital gains
  • Interest
  • Dividends
  • Return of capital†
  • Capital gains

Schwab Monthly Income Funds are a suite of three all-in-one mutual funds designed to help meet investors' retirement or other income needs. Schwab Asset Management allocates asset classes according to the payout policy of each Fund.

†A return of capital is a distribution from the shareholder’s investment principal, rather than net profits from the Fund’s returns. Shareholders who receive periodic distributions consisting of a return of capital may be under the impression that they are receiving net profits when they are not. Return of capital reduces your cost basis in the Fund’s shares and is not taxable to you until your cost basis has been reduced to zero.