UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06200
Schwab Investments – Schwab Global Real Estate Fund
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Schwab Investments – Schwab Global Real Estate Fund
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: February 28
Date of reporting period: August 31, 2023
Item 1: Report(s) to Shareholders.
Total Returns for the 6 Months Ended August 31, 2023 | |
Schwab Global Real Estate Fund (Ticker Symbol: SWASX) | -2.14% |
FTSE EPRA Nareit Global Index (Net)* | -2.87% |
Fund Category: Morningstar Global Real Estate1 | -1.96% |
Performance Details | pages 4-5 |
Iain Clayton, CFA, Senior Portfolio Manager and Head of Quantitative Portfolio Management for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Mr. Clayton also leads Schwab Asset Management’s quantitative investment management team. Prior to joining Schwab in 2013, Mr. Clayton spent more than five years at SSI Investment Management where he was a portfolio manager and the director of quantitative research. In these roles, Mr. Clayton co-managed multiple investment strategies and developed quantitative models and valuation approaches. From 2004 to 2008, he worked as a portfolio manager and director at RCM Capital Management (now known as Allianz Global Investors) and helped manage various equity portfolios and developed fundamental-based stock selection models. Prior to that, he was a vice president at Eureka Investment Advisors for almost three years and also served as a senior quantitative analyst and assistant portfolio manager. He has also worked as a quantitative research analyst at RCM Capital Management. |
Wei Li, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2012, Ms. Li spent more than 10 years at Barclays Global Investors (now known as BlackRock), where she held a number of positions. From 2001 to 2009, she worked in various roles in the global advanced active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years. |
Holly Emerson, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2014, Ms. Emerson spent nearly 10 years at Algert Coldiron Investors LLC (now known as Algert Global), a quantitative market-neutral hedge fund manager. She held a number of positions at Algert, including assistant portfolio manager and director of operations. In her various roles, she acted as the lead portfolio manager for the Canadian fund, conducted macroeconomic research, and managed relationships with prime brokerage investment banks. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab Global Real Estate Fund (5/31/07) | -2.14% | -4.33% | -0.33% | 3.96% |
FTSE EPRA Nareit Global Index (Net)2 | -2.87% | -5.12% | -0.97% | 2.93% |
Fund Category: Morningstar Global Real Estate3 | -1.96% | -4.34% | 0.23% | 3.46% |
Fund Expense Ratio4: 0.75% |
Number of Holdings | 115 |
Weighted Average Market Cap (millions) | $23,916 |
Price/Earnings Ratio (P/E) | 17.4 |
Price/Book Ratio (P/B) | 1.3 |
Portfolio Turnover Rate | 47% 1 |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 3/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 8/31/23 | EXPENSES PAID DURING PERIOD 3/1/23-8/31/23 2 | |
Schwab Global Real Estate Fund | ||||
Actual Return | 0.71% | $1,000.00 | $978.60 | $3.53 |
Hypothetical 5% Return | 0.71% | $1,000.00 | $1,021.57 | $3.61 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days in the period, and divided by 366 days in the fiscal year. |
3/1/23– 8/31/23* | 3/1/22– 2/28/23 | 3/1/21– 2/28/22 | 3/1/20– 2/28/21 | 3/1/19– 2/29/20 | 3/1/18– 2/28/19 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $6.36 | $7.66 | $7.13 | $7.53 | $7.70 | $7.28 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.19 | 0.16 | 0.15 | 0.19 | 0.20 |
Net realized and unrealized gains (losses) | (0.25 ) | (1.31 ) | 0.68 | (0.34 ) | 0.24 | 0.51 |
Total from investment operations | (0.14 ) | (1.12 ) | 0.84 | (0.19 ) | 0.43 | 0.71 |
Less distributions: | ||||||
Distributions from net investment income | (0.12 ) | (0.18 ) | (0.31 ) | (0.08 ) | (0.55 ) | (0.29 ) |
Distributions from net realized gains | — | — | — | (0.13 ) | (0.05 ) | — |
Total distributions | (0.12 ) | (0.18 ) | (0.31 ) | (0.21 ) | (0.60 ) | (0.29 ) |
Net asset value at end of period | $6.10 | $6.36 | $7.66 | $7.13 | $7.53 | $7.70 |
Total return | (2.14 %)2 | (14.66 %) | 11.82 % | (2.41 %) | 5.34 % | 10.01 % |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.71 %3 | 0.85 %4,5 | 1.05 % | 1.05 % | 1.05 % | 1.05 % |
Gross operating expenses | 0.71 %3 | 0.88 %5 | 1.10 % | 1.11 % | 1.12 % | 1.12 % |
Net investment income (loss) | 3.70 %3 | 2.91 % | 2.01 % | 2.24 % | 2.36 % | 2.68 % |
Portfolio turnover rate | 47 %2 | 88 % | 75 % | 72 % | 96 % | 90 % |
Net assets, end of period (x 1,000) | $288,367 | $299,811 | $362,805 | $281,229 | $304,251 | $295,752 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Annualized. |
4 | Effective June 27, 2022, the net operating expense limitation was lowered from 1.05% to 0.75%. The ratio presented for the period ended February 28, 2023 is a blended ratio. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.6% OF NET ASSETS | ||
Australia 4.3% | ||
Charter Hall Retail REIT | 620,470 | 1,396,137 |
Goodman Group | 87,185 | 1,313,638 |
HomeCo Daily Needs REIT | 2,393,447 | 1,891,095 |
National Storage REIT | 1,371,169 | 2,051,981 |
Scentre Group | 889,867 | 1,577,342 |
Vicinity Ltd. | 3,476,568 | 4,193,613 |
12,423,806 | ||
Belgium 2.0% | ||
Warehouses De Pauw CVA | 203,644 | 5,819,444 |
Brazil 0.3% | ||
Direcional Engenharia S.A. | 100,491 | 410,930 |
Multiplan Empreendimentos Imobiliarios S.A. | 104,346 | 521,303 |
932,233 | ||
Canada 2.8% | ||
Choice Properties Real Estate Investment Trust | 146,557 | 1,421,967 |
First Capital Real Estate Investment Trust | 25,177 | 256,018 |
H&R Real Estate Investment Trust | 601,412 | 4,602,280 |
Primaris Real Estate Investment Trust | 174,506 | 1,726,721 |
8,006,986 | ||
China 3.7% | ||
China Overseas Property Holdings Ltd. | 3,880,000 | 4,632,633 |
China Resources Land Ltd. | 556,000 | 2,350,044 |
Longfor Group Holdings Ltd. | 780,083 | 1,646,443 |
Yuexiu Property Co., Ltd. | 1,775,599 | 2,199,922 |
10,829,042 | ||
France 2.3% | ||
Covivio S.A. | 29,525 | 1,439,607 |
ICADE | 88,003 | 3,317,903 |
Unibail-Rodamco-Westfield * | 33,204 | 1,772,255 |
6,529,765 | ||
Germany 1.8% | ||
Grand City Properties S.A. * | 166,806 | 1,488,753 |
Sirius Real Estate Ltd. | 1,139,958 | 1,256,450 |
TAG Immobilien AG * | 137,167 | 1,554,935 |
Vonovia SE | 41,117 | 986,532 |
5,286,670 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Hong Kong 2.6% | ||
CK Asset Holdings Ltd. | 738,296 | 4,073,744 |
Fortune Real Estate Investment Trust | 707,000 | 438,946 |
K Wah International Holdings Ltd. | 501,000 | 150,731 |
Sun Hung Kai Properties Ltd. | 109,000 | 1,226,977 |
Wharf Real Estate Investment Co., Ltd. | 376,000 | 1,567,010 |
7,457,408 | ||
Indonesia 0.4% | ||
Ciputra Development Tbk PT | 14,483,360 | 1,084,112 |
Japan 8.9% | ||
CRE Logistics REIT, Inc. * | 153 | 177,629 |
Daiwa House Industry Co., Ltd. | 70,200 | 1,949,859 |
Daiwa Office Investment Corp. | 66 | 310,055 |
Hulic Co., Ltd. | 266,900 | 2,395,119 |
Hulic REIT, Inc. | 1,173 | 1,308,477 |
Ichigo Office REIT Investment Corp. | 3,211 | 1,974,476 |
Invincible Investment Corp. | 6,246 | 2,594,800 |
Japan Real Estate Investment Corp. | 459 | 1,907,513 |
Mitsui Fudosan Co., Ltd. | 52,700 | 1,153,767 |
Nippon Building Fund, Inc. | 338 | 1,427,453 |
NTT UD REIT Investment Corp. | 2,008 | 1,911,929 |
Sekisui House Ltd. | 120,200 | 2,449,603 |
Takara Leben Real Estate Investment Corp. | 240 | 158,584 |
Tokyu Fudosan Holdings Corp. | 498,200 | 3,096,790 |
Tokyu REIT, Inc. | 2,208 | 2,829,015 |
25,645,069 | ||
Malaysia 0.2% | ||
Sime Darby Property Bhd | 3,500,000 | 554,629 |
Mexico 1.1% | ||
Fibra Uno Administracion S.A. de C.V. | 2,259,424 | 3,291,639 |
Philippines 0.3% | ||
Robinsons Land Corp. | 3,330,500 | 859,411 |
Singapore 3.4% | ||
AIMS APAC REIT | 1,430,000 | 1,332,992 |
CapitaLand Ascendas REIT | 1,095,100 | 2,242,883 |
CapitaLand Ascott Trust | 2,331,300 | 1,672,600 |
CapitaLand China Trust | 336,300 | 225,026 |
CDL Hospitality Trusts | 1,062,200 | 809,478 |
Lendlease Global Commercial REIT | 4,555,013 | 1,937,070 |
Mapletree Industrial Trust | 877,100 | 1,491,613 |
9,711,662 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Spain 0.8% | ||
Merlin Properties Socimi S.A. | 271,084 | 2,428,172 |
Sweden 1.2% | ||
Fastighets AB Balder, B Shares * | 72,756 | 347,746 |
Nyfosa AB | 46,927 | 294,654 |
Pandox AB | 245,952 | 2,731,313 |
3,373,713 | ||
Switzerland 0.3% | ||
Swiss Prime Site AG | 8,079 | 775,777 |
United Arab Emirates 2.3% | ||
Emaar Development PJSC | 679,246 | 1,211,626 |
Emaar Properties PJSC | 2,833,957 | 5,446,184 |
6,657,810 | ||
United Kingdom 3.1% | ||
Grainger plc | 426,543 | 1,274,490 |
Land Securities Group plc | 235,029 | 1,790,896 |
Safestore Holdings plc | 146,678 | 1,606,341 |
Target Healthcare REIT plc | 472,197 | 435,474 |
The British Land Co., plc | 350,120 | 1,432,537 |
Tritax Big Box REIT plc | 1,287,587 | 2,299,760 |
8,839,498 | ||
United States 57.8% | ||
Alexandria Real Estate Equities, Inc. | 21,474 | 2,498,285 |
American Assets Trust, Inc. | 51,270 | 1,097,691 |
Apartment Income REIT Corp. | 50,094 | 1,706,202 |
Armada Hoffler Properties, Inc. | 289,566 | 3,298,157 |
AvalonBay Communities, Inc. | 11,459 | 2,106,393 |
Brandywine Realty Trust | 73,473 | 367,365 |
Brixmor Property Group, Inc. | 214,024 | 4,704,248 |
Camden Property Trust | 16,138 | 1,736,772 |
CareTrust REIT, Inc. | 175,448 | 3,535,277 |
Corporate Office Properties Trust | 68,533 | 1,773,634 |
Crown Castle, Inc. | 36,889 | 3,707,345 |
CubeSmart | 70,236 | 2,929,544 |
Digital Realty Trust, Inc. | 9,859 | 1,298,627 |
EastGroup Properties, Inc. | 18,758 | 3,369,500 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Empire State Realty Trust, Inc., Class A | 171,911 | 1,500,783 |
EPR Properties | 131,617 | 5,893,809 |
Equinix, Inc. | 18,134 | 14,169,545 |
Equity LifeStyle Properties, Inc. | 4,490 | 300,650 |
Equity Residential | 147,478 | 9,560,999 |
Essential Properties Realty Trust, Inc. | 60,194 | 1,445,860 |
Essex Property Trust, Inc. | 8,924 | 2,127,392 |
Extra Space Storage, Inc. | 9,827 | 1,264,538 |
Gaming & Leisure Properties, Inc. | 139,607 | 6,617,372 |
Healthpeak Properties, Inc. | 116,409 | 2,395,697 |
Host Hotels & Resorts, Inc. | 113,489 | 1,791,991 |
Invitation Homes, Inc. | 50,226 | 1,712,204 |
Kilroy Realty Corp. | 66,537 | 2,458,542 |
Kite Realty Group Trust | 38,925 | 878,537 |
Mid-America Apartment Communities, Inc. | 54,227 | 7,875,387 |
National Health Investors, Inc. | 55,494 | 2,837,408 |
NNN REIT, Inc. | 98,656 | 3,886,060 |
Omega Healthcare Investors, Inc. | 74,700 | 2,376,954 |
Prologis, Inc. | 188,352 | 23,393,318 |
Public Storage | 36,473 | 10,080,408 |
Realty Income Corp. | 55,826 | 3,128,489 |
Regency Centers Corp. | 17,592 | 1,094,222 |
Ryman Hospitality Properties, Inc. | 65,366 | 5,558,071 |
Sabra Health Care REIT, Inc. | 18,387 | 230,389 |
SBA Communications Corp. | 1,144 | 256,862 |
Simon Property Group, Inc. | 42,024 | 4,769,304 |
Tanger Factory Outlet Centers, Inc. | 43,903 | 1,020,745 |
UDR, Inc. | 109,745 | 4,378,826 |
Urban Edge Properties | 10,400 | 170,144 |
Ventas, Inc. | 65,128 | 2,844,791 |
VICI Properties, Inc. | 58,734 | 1,811,357 |
Welltower, Inc. | 19,984 | 1,656,274 |
WP Carey, Inc. | 47,666 | 3,100,673 |
166,716,641 | ||
Total Common Stocks (Cost $280,082,072) | 287,223,487 | |
Total Investments in Securities (Cost $280,082,072) | 287,223,487 |
* | Non-income producing security. |
CVA — | Dutch Certificate |
REIT — | Real Estate Investment Trust |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $180,031,611 | $— | $— | $180,031,611 |
Australia | — | 12,423,806 | — | 12,423,806 |
Belgium | — | 5,819,444 | — | 5,819,444 |
China | — | 10,829,042 | — | 10,829,042 |
France | — | 6,529,765 | — | 6,529,765 |
Germany | — | 5,286,670 | — | 5,286,670 |
Hong Kong | — | 7,457,408 | — | 7,457,408 |
Japan | — | 25,645,069 | — | 25,645,069 |
Malaysia | — | 554,629 | — | 554,629 |
Philippines | — | 859,411 | — | 859,411 |
Singapore | — | 9,711,662 | — | 9,711,662 |
Spain | — | 2,428,172 | — | 2,428,172 |
Sweden | — | 3,373,713 | — | 3,373,713 |
Switzerland | — | 775,777 | — | 775,777 |
United Arab Emirates | — | 6,657,810 | — | 6,657,810 |
United Kingdom | 2,041,815 | 6,797,683 | — | 8,839,498 |
Total | $182,073,426 | $105,150,061 | $— | $287,223,487 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $280,082,072) | $287,223,487 | |
Cash | 726,235 | |
Foreign currency, at value (cost $218,987) | 218,882 | |
Receivables: | ||
Investments sold | 7,098,543 | |
Dividends | 725,551 | |
Foreign tax reclaims | 205,710 | |
Fund shares sold | 4,523 | |
Prepaid expenses | + | 15,135 |
Total assets | 296,218,066 | |
Liabilities | ||
Payables: | ||
Investments bought | 7,527,762 | |
Investment adviser and administrator fees | 122,047 | |
Fund shares redeemed | 68,320 | |
Shareholder service fees | 30,522 | |
Independent trustees’ fees | 224 | |
Accrued expenses | + | 102,178 |
Total liabilities | 7,851,053 | |
Net assets | $288,367,013 | |
Net Assets by Source | ||
Capital received from investors | $348,144,587 | |
Total distributable loss | + | (59,777,574 ) |
Net assets | $288,367,013 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$288,367,013 | 47,306,567 | $6.10 | ||
For the period March 1, 2023 through August 31, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $340,857) | $6,435,882 | |
Securities on loan, net | + | 955 |
Total investment income | 6,436,837 | |
Expenses | ||
Investment adviser and administrator fees | 730,029 | |
Shareholder service fees | 209,858 | |
Professional fees | 32,069 | |
Portfolio accounting fees | 26,191 | |
Registration fees | 13,560 | |
Shareholder reports | 11,816 | |
Independent trustees’ fees | 5,479 | |
Custodian fees | 5,185 | |
Transfer agent fees | 1,139 | |
Other expenses | + | 4,077 |
Total expenses | 1,039,403 | |
Expense reduction | – | 1,139 |
Net expenses | – | 1,038,264 |
Net investment income | 5,398,573 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (16,488,633 ) | |
Net realized losses on foreign currency transactions | + | (5,248 ) |
Net realized losses | (16,493,881 ) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | 4,295,331 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 8,128 |
Net change in unrealized appreciation (depreciation) | + | 4,303,459 |
Net realized and unrealized losses | (12,190,422 ) | |
Decrease in net assets resulting from operations | ($6,791,849 ) |
OPERATIONS | |||
3/1/23-8/31/23 | 3/1/22-2/28/23 | ||
Net investment income | $5,398,573 | $9,083,416 | |
Net realized losses | (16,493,881 ) | (44,136,004 ) | |
Net change in unrealized appreciation (depreciation) | + | 4,303,459 | (14,017,238 ) |
Decrease in net assets from operations | ($6,791,849 ) | ($49,069,826 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($5,853,786 ) | ($8,541,748 ) |
TRANSACTIONS IN FUND SHARES | |||||
3/1/23-8/31/23 | 3/1/22-2/28/23 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,410,226 | $8,636,837 | 4,432,137 | $28,665,001 | |
Shares reinvested | 880,357 | 5,395,350 | 1,167,310 | 7,743,523 | |
Shares redeemed | + | (2,097,597 ) | (12,830,729 ) | (5,879,283 ) | (41,790,483 ) |
Net transactions in fund shares | 192,986 | $1,201,458 | (279,836 ) | ($5,381,959 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
3/1/23-8/31/23 | 3/1/22-2/28/23 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 47,113,581 | $299,811,190 | 47,393,417 | $362,804,723 | |
Total increase (decrease) | + | 192,986 | (11,444,177 ) | (279,836 ) | (62,993,533 ) |
End of period | 47,306,567 | $288,367,013 | 47,113,581 | $299,811,190 |
SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990) | |
Schwab Global Real Estate Fund | Schwab Tax-Free Bond Fund |
Schwab Treasury Inflation Protected Securities Index Fund | Schwab California Tax-Free Bond Fund |
Schwab U.S. Aggregate Bond Index Fund | Schwab Opportunistic Municipal Bond Fund |
Schwab Short-Term Bond Index Fund | Schwab 1000 Index® Fund |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
Schwab Monthly Income Fund - Flexible Payout | 2.2 % |
Schwab Monthly Income Fund - Income Payout | 1.3 % |
Schwab Monthly Income Fund - Target Payout | 1.2 % |
Schwab Target 2010 Fund | 0.4 % |
Schwab Target 2015 Fund | 0.5 % |
Schwab Target 2020 Fund | 3.6 % |
Schwab Target 2025 Fund | 5.7 % |
Schwab Target 2030 Fund | 13.8 % |
Schwab Target 2035 Fund | 8.7 % |
Schwab Target 2040 Fund | 18.9 % |
Schwab Target 2045 Fund | 4.9 % |
Schwab Target 2050 Fund | 5.2 % |
Schwab Target 2055 Fund | 3.9 % |
Schwab Target 2060 Fund | 1.3 % |
Schwab Target 2065 Fund | 0.3 % |
Interfund Borrowing and Lending
5. Board of Trustees:
6. Borrowing from Banks:
7. Purchases and Sales of Investment Securities:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$137,452,782 | $135,829,563 |
8. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) | |
$282,167,158 | $20,986,290 | ($15,929,961 ) | $5,056,329 | |
PRIOR FISCAL YEAR END DISTRIBUTIONS | |
ORDINARY INCOME | |
$8,541,748 |
9. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Jonathan de St. Paer 1973 President (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; President (Nov. 2018 – present), Chief Executive Officer (Apr. 2019 – Sept. 2023) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Schwab Funds
Member SIPC®
Printed on recycled paper.
Item 2: | Code of Ethics. |
Not applicable to this semi-annual report.
Item 3: | Audit Committee Financial Expert. |
Not applicable to this semi-annual report.
Item 4: | Principal Accountant Fees and Services. |
Not applicable to this semi-annual report.
Item 5: | Audit Committee of Listed Registrants. |
Not applicable to this semi-annual report.
Item 6: | Schedule of Investments. |
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8: | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9: | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10: | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11: | Controls and Procedures. |
(a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Omar Aguilar and Registrant’s Chief Financial Officer, Dana Smith, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13: | Exhibits. |
(a) (1) Code of ethics – not applicable to this semi-annual report.
(2) |
(b) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Investments – Schwab Global Real Estate Fund
By: | /s/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: | October 17, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: | October 17, 2023 | |
By: | /s/ Dana Smith | |
Dana Smith Chief Financial Officer | ||
Date: | October 17, 2023 |