Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07704
Schwab Capital Trust – Schwab Fundamental Global Real Estate Index Fund
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Marie Chandoha
Schwab Capital Trust
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: February 28, 2015
Item 1: Report(s) to Shareholders.
Table of Contents
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Total Returns From Inception (October 22, 2014) to February 28, 2015 | |
Schwab Fundamental Global Real Estate Index Fund (Ticker Symbol: SFREX) | 8.47%* |
Russell Fundamental Global Select Real Estate Index (Net)** | 8.66% |
Fund Category: Morningstar Global Real Estate | 8.38% |
Performance Details | pages 6-7 |
Minimum Initial Investment1 | $100 |
* | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports. |
** | The total return cited for the index is calculated net of foreign withholding taxes. |
1 | Please see the fund's prospectus for further detail and eligibility requirements. |
1 | The total return cited is calculated net of foreign withholding taxes. |
Agnes Hong, CFA, Vice President and Head of Passive Equity Strategies, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the fund. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients. |
Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California. |
Statistics | |
Number of Holdings | 228 |
Weighted Average Market Cap (millions) | $14,412 |
Price/Earnings Ratio (P/E) | 16.9 |
Price/Book Ratio (P/B) | 1.5 |
Portfolio Turnover Rate | 4% |
Industry Weightings % of Investments | |
Real Estate Management & Development | 30.3% |
Retail REITs | 19.5% |
Specialized REITs | 14.1% |
Office REITs | 12.3% |
Diversified REITs | 12.0% |
Residential REITs | 7.1% |
Industrial REITs | 2.9% |
Homebuilding | 1.0% |
Short-Term Investments | 0.8% |
Total | 100.0% |
Top Holdings % of Net Assets2 | |
Simon Property Group, Inc. | 3.0% |
Westfield Corp. | 2.5% |
Mitsui Fudosan Co., Ltd. | 2.1% |
Mitsubishi Estate Co., Ltd. | 2.1% |
Equity Residential | 1.8% |
Vornado Realty Trust | 1.7% |
Cheung Kong (Holdings) Ltd. | 1.7% |
Unibail-Rodamco SE | 1.6% |
Daito Trust Construction Co., Ltd. | 1.6% |
Public Storage | 1.6% |
Total | 19.7% |
1 | The total return cited for the index is calculated net of foreign withholding taxes. |
2 | This list is not a recommendation of any security by the investment adviser. |
Performance of Hypothetical
$10,000 Investment1
Fund and Inception Date | Since Inception |
Fund: Schwab Fundamental Global Real Estate Index Fund (10/22/14) | 8.47%* |
Russell Fundamental Global Select Real Estate Index (Net) | 8.66% |
FTSE EPRA/NAREIT Global Index (Net) | 8.71% |
Fund Category: Morningstar Global Real Estate | 8.38% |
United States | 44.8% |
Japan | 12.0% |
Hong Kong | 9.0% |
Australia | 8.9% |
China | 5.8% |
France | 4.4% |
United Kingdom | 4.2% |
Other Countries | 10.9% |
Total | 100.0% |
* | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports. |
1 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns may have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
2 | Source for category information: Morningstar, Inc. |
3 | As stated in the fund's prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the reporting period, refer to the Financial Highlights section of the financial statements. |
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and, (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
�� | Expense Ratio1 (Annualized) | Beginning Account Value | Ending Account Value (Net of Expenses) at 2/28/15 | Expenses Paid During Period2,3 |
Schwab Fundamental Global Real Estate Index Fund | ||||
Actual Return | 0.13% | $1,000.00 | $ 1,085.70 | $0.48 |
Hypothetical 5% Return | 0.13% | $1,000.00 | $1,024.15 | $ 0.65 |
1 | The expense ratio provided is for the period from 10/22/14 (commencement of operations) through 2/28/15 and is a blended ratio. See financial note 4. |
2 | Actual expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 130 days of the period from commencement of operations on 10/22/14 through 2/28/15, and divided by 365 days of the fiscal year. |
3 | Hypothetical expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by 365 days of the fiscal year. |
10/22/14 1– 2/28/15 | ||||||
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 10.00 | |||||
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 0.10 | |||||
Net realized and unrealized gains (losses) | 0.75 | |||||
Total from investment operations | 0.85 | |||||
Less distributions: | ||||||
Distributions from net investment income | (0.11) | |||||
Distributions from net realized gains | (0.00) 3 | |||||
Net asset value at end of period | 10.74 | |||||
Total return (%) | 8.57 4 | |||||
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.13 5,6 | |||||
Gross operating expenses | 2.58 5 | |||||
Net investment income (loss) | 2.62 5 | |||||
Portfolio turnover rate | 4 4 | |||||
Net assets, end of period ($ x 1,000,000) | 105 | |||||
Holdings by Category | Cost ($) | Value ($) | |
99.3% | Common Stock | 99,173,816 | 104,488,108 |
0.8% | Short-Term Investments | 856,511 | 856,511 |
100.1% | Total Investments | 100,030,327 | 105,344,619 |
(0.1)% | Other Assets and Liabilities, Net | (66,545) | |
100.0% | Net Assets | 105,278,074 |
Security | Number of Shares | Value ($) |
Common Stock 99.3% of net assets | ||
Australia 8.8% | ||
Real Estate 8.8% | ||
Charter Hall Retail REIT | 37,930 | 135,006 |
Cromwell Property Group | 112,869 | 103,060 |
Dexus Property Group | 106,982 | 658,779 |
Goodman Group | 121,512 | 591,568 |
Investa Office Fund | 62,954 | 197,437 |
Lend Lease Group | 104,749 | 1,417,513 |
Mirvac Group | 505,085 | 819,505 |
Novion Property Group | 238,978 | 459,904 |
Stockland | 449,547 | 1,645,465 |
The GPT Group | 160,445 | 588,767 |
Westfield Corp. | 344,589 | 2,638,942 |
9,255,946 | ||
Austria 0.3% | ||
Real Estate 0.3% | ||
IMMOFINANZ AG * | 104,794 | 318,855 |
Belgium 0.4% | ||
Real Estate 0.4% | ||
Befimmo S.A. | 1,842 | 133,091 |
Cofinimmo S.A. | 2,160 | 266,893 |
399,984 |
Security | Number of Shares | Value ($) |
Brazil 1.0% | ||
Consumer Durables & Apparel 0.6% | ||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 62,320 | 254,219 |
Even Construtora e Incorporadora S.A. | 83,842 | 135,565 |
Gafisa S.A. | 137,699 | 101,865 |
PDG Realty S.A. Empreendimentos e Participacoes * | 710,661 | 117,661 |
609,310 | ||
Real Estate 0.4% | ||
BR Malls Participacoes S.A. | 30,354 | 180,814 |
BR Properties S.A. | 20,130 | 82,186 |
Multiplan Empreendimentos Imobiliarios S.A. | 8,360 | 160,648 |
423,648 | ||
1,032,958 | ||
Canada 1.6% | ||
Real Estate 1.6% | ||
Boardwalk Real Estate Investment Trust | 2,665 | 126,311 |
Calloway Real Estate Investment Trust | 7,530 | 183,235 |
Canadian Real Estate Investment Trust | 3,603 | 134,885 |
Cominar Real Estate Investment Trust | 6,162 | 97,204 |
Dream Office Real Estate Investment Trust | 3,823 | 83,824 |
First Capital Realty, Inc. | 10,258 | 161,161 |
FirstService Corp. | 1,833 | 111,174 |
Granite Real Estate Investment Trust | 5,923 | 214,727 |
H&R Real Estate Investment Trust | 11,773 | 227,719 |
RioCan Real Estate Investment Trust | 15,961 | 373,713 |
1,713,953 | ||
China 5.8% | ||
Real Estate 5.8% | ||
Agile Property Holdings Ltd. | 606,000 | 359,893 |
China Overseas Land & Investment Ltd. | 374,000 | 1,140,633 |
China Resources Land Ltd. | 172,000 | 456,756 |
China Vanke Co., Ltd., Class H * | 148,100 | 340,109 |
Country Garden Holdings Co., Ltd. | 775,000 | 308,429 |
Evergrande Real Estate Group Ltd. | 891,000 | 393,179 |
Franshion Properties China Ltd. | 406,000 | 119,229 |
Greentown China Holdings Ltd. | 117,000 | 103,336 |
Guangzhou R&F Properties Co., Ltd., Class H | 327,200 | 381,141 |
Kerry Properties Ltd. | 125,000 | 417,260 |
Security | Number of Shares | Value ($) |
KWG Property Holding Ltd. | 218,500 | 141,913 |
Longfor Properties Co., Ltd. | 102,000 | 134,076 |
Poly Property Group Co., Ltd. | 338,000 | 165,112 |
Shenzhen Investment Ltd. | 424,000 | 133,882 |
Shimao Property Holdings Ltd. | 172,500 | 366,340 |
Shui On Land Ltd. | 487,500 | 113,120 |
Sino-Ocean Land Holdings Ltd. | 565,500 | 353,953 |
SOHO China Ltd. | 412,000 | 294,454 |
Sunac China Holdings Ltd. | 248,000 | 229,186 |
Yuexiu Property Co., Ltd. | 904,000 | 181,835 |
6,133,836 | ||
France 4.4% | ||
Real Estate 4.4% | ||
Fonciere Des Regions | 5,780 | 596,944 |
Gecina S.A. | 3,276 | 430,037 |
ICADE | 5,698 | 510,236 |
Klepierre | 14,159 | 691,430 |
Mercialys S.A. | 8,418 | 207,177 |
Nexity S.A. | 11,874 | 488,546 |
Unibail-Rodamco SE | 5,930 | 1,706,015 |
4,630,385 | ||
Germany 0.5% | ||
Real Estate 0.5% | ||
Deutsche Euroshop AG | 3,670 | 187,512 |
GAGFAH S.A. * | 12,035 | 278,617 |
466,129 | ||
Hong Kong 9.0% | ||
Real Estate 9.0% | ||
Cheung Kong (Holdings) Ltd. | 90,000 | 1,781,443 |
Great Eagle Holdings Ltd. | 43,000 | 148,650 |
Hang Lung Group Ltd. | 81,000 | 377,949 |
Hang Lung Properties Ltd. | 168,000 | 476,416 |
Henderson Land Development Co., Ltd. | 58,000 | 396,408 |
Hongkong Land Holdings Ltd. | 96,000 | 724,800 |
Hysan Development Co., Ltd. | 32,000 | 153,680 |
New World Development Co., Ltd. | 642,000 | 756,745 |
Sino Land Co., Ltd. | 308,000 | 503,930 |
Sun Hung Kai Properties Ltd. | 88,000 | 1,378,922 |
Swire Properties Ltd. | 78,200 | 259,516 |
The Link REIT | 132,500 | 846,574 |
The Wharf Holdings Ltd. | 137,000 | 998,769 |
Wheelock & Co., Ltd. | 129,000 | 692,555 |
9,496,357 | ||
Italy 0.1% | ||
Real Estate 0.1% | ||
Beni Stabili S.p.A | 183,339 | 150,001 |
Security | Number of Shares | Value ($) |
Japan 12.0% | ||
Real Estate 12.0% | ||
Advance Residence Investment Corp. | 110 | 275,842 |
Aeon Mall Co., Ltd. | 13,900 | 269,807 |
Daito Trust Construction Co., Ltd. | 15,600 | 1,691,074 |
Frontier Real Estate Investment Corp. | 22 | 103,696 |
Japan Excellent, Inc. | 131 | 171,823 |
Japan Prime Realty Investment Corp. | 65 | 234,045 |
Japan Real Estate Investment Corp. | 93 | 464,653 |
Japan Retail Fund Investment Corp. | 213 | 457,757 |
Kenedix Office Investment Corp. | 37 | 211,483 |
Leopalace21 Corp. * | 61,600 | 338,180 |
MID REIT, Inc. | 40 | 101,000 |
Mitsubishi Estate Co., Ltd. | 93,000 | 2,172,950 |
Mitsui Fudosan Co., Ltd. | 80,000 | 2,198,367 |
Mori Trust Sogo REIT, Inc. | 60 | 129,695 |
Nippon Accommodations Fund, Inc. | 26 | 99,758 |
Nippon Building Fund, Inc. | 115 | 578,391 |
Nomura Real Estate Holdings, Inc. | 28,800 | 509,846 |
Nomura Real Estate Office Fund, Inc. | 60 | 299,038 |
NTT Urban Development Corp. | 16,300 | 167,507 |
Orix JREIT, Inc. | 173 | 247,838 |
Relo Holdings, Inc. | 1,500 | 120,996 |
Sumitomo Realty & Development Co., Ltd. | 33,000 | 1,137,005 |
Tokyo Tatemono Co., Ltd. | 40,000 | 297,115 |
Top REIT, Inc. | 21 | 89,906 |
United Urban Investment Corp. | 165 | 268,797 |
12,636,569 | ||
Netherlands 1.2% | ||
Real Estate 1.2% | ||
Corio N.V. | 10,274 | 569,956 |
Eurocommercial Properties N.V. CVA | 4,384 | 203,699 |
Vastned Retail N.V. | 3,915 | 203,937 |
Wereldhave N.V. | 3,531 | 242,591 |
1,220,183 | ||
Singapore 2.3% | ||
Real Estate 2.3% | ||
Ascendas Real Estate Investment Trust | 165,000 | 299,043 |
CapitaCommercial Trust | 146,000 | 189,082 |
CapitaLand Ltd. | 256,000 | 673,989 |
CapitaMall Trust | 195,000 | 302,003 |
Global Logistic Properties Ltd. | 88,000 | 167,123 |
Keppel Land Ltd. | 80,000 | 266,899 |
Security | Number of Shares | Value ($) |
Suntec Real Estate Investment Trust | 145,000 | 207,606 |
UOL Group Ltd. | 55,000 | 316,426 |
2,422,171 | ||
South Africa 1.0% | ||
Real Estate 1.0% | ||
Capital Property Fund | 102,787 | 123,814 |
Emira Property Fund | 69,067 | 108,482 |
Growthpoint Properties Ltd. | 175,770 | 447,111 |
Redefine Properties Ltd. | 218,101 | 221,386 |
SA Corporate Real Estate Fund Nominees Pty Ltd. | 415,068 | 181,447 |
1,082,240 | ||
Sweden 0.9% | ||
Diversified Financials 0.3% | ||
LE Lundbergfortagen AB, B Shares | 5,375 | 259,147 |
Real Estate 0.6% | ||
Castellum AB | 15,215 | 260,566 |
Fabege AB | 13,995 | 212,497 |
Kungsleden AB | 23,321 | 191,684 |
664,747 | ||
923,894 | ||
Switzerland 0.4% | ||
Real Estate 0.4% | ||
Allreal Holding AG - Reg'd * | 1,205 | 184,901 |
Swiss Prime Site AG - Reg'd * | 3,024 | 275,574 |
460,475 | ||
Taiwan 0.7% | ||
Real Estate 0.7% | ||
Chong Hong Construction Co., Ltd. | 37,000 | 76,361 |
Farglory Land Development Co., Ltd. | 112,000 | 133,540 |
Highwealth Construction Corp. | 171,000 | 363,565 |
Huaku Development Co., Ltd. | 66,000 | 124,787 |
Ruentex Development Co., Ltd. | 51,000 | 76,128 |
774,381 | ||
United Arab Emirates 0.4% | ||
Real Estate 0.4% | ||
Emaar Properties PJSC | 209,005 | 423,557 |
United Kingdom 4.3% | ||
Real Estate 4.3% | ||
Derwent London plc | 4,139 | 213,770 |
Hammerson plc | 65,155 | 678,766 |
Intu Properties plc | 86,307 | 470,239 |
Land Securities Group plc | 72,456 | 1,402,188 |
Savills plc | 20,643 | 232,510 |
Segro plc | 92,541 | 614,193 |
Security | Number of Shares | Value ($) |
Shaftesbury plc | 8,060 | 100,992 |
The British Land Co., plc | 59,149 | 755,161 |
4,467,819 | ||
United States 44.2% | ||
Diversified Financials 0.2% | ||
WisdomTree India Earnings Fund | 8,049 | 194,705 |
Real Estate 44.0% | ||
Alexandria Real Estate Equities, Inc. | 5,012 | 480,701 |
American Campus Communities, Inc. | 6,331 | 261,280 |
American Tower Corp. | 14,458 | 1,433,366 |
Apartment Investment & Management Co., Class A | 22,614 | 852,096 |
Ashford Hospitality Trust, Inc. | 12,794 | 136,256 |
AvalonBay Communities, Inc. | 5,974 | 1,005,663 |
BioMed Realty Trust, Inc. | 15,603 | 347,011 |
Boston Properties, Inc. | 9,707 | 1,333,839 |
Brandywine Realty Trust | 23,203 | 367,768 |
Camden Property Trust | 6,723 | 489,367 |
CBL & Associates Properties, Inc. | 22,861 | 457,677 |
CBRE Group, Inc., Class A * | 15,972 | 547,201 |
Columbia Property Trust, Inc. | 13,748 | 355,936 |
Corporate Office Properties Trust | 12,149 | 357,181 |
Corrections Corp. of America | 19,047 | 759,785 |
Cousins Properties, Inc. | 10,063 | 107,976 |
Crown Castle International Corp. | 11,963 | 1,032,527 |
DCT Industrial Trust, Inc. | 6,565 | 236,865 |
DDR Corp. | 20,956 | 396,907 |
DiamondRock Hospitality Co. | 19,129 | 276,988 |
Digital Realty Trust, Inc. | 10,155 | 674,089 |
Douglas Emmett, Inc. | 10,925 | 315,405 |
Duke Realty Corp. | 33,318 | 711,672 |
EastGroup Properties, Inc. | 2,506 | 157,878 |
EPR Properties | 5,046 | 307,856 |
Equity Commonwealth * | 18,240 | 482,448 |
Equity LifeStyle Properties, Inc. | 4,127 | 222,321 |
Equity One, Inc. | 3,854 | 103,210 |
Equity Residential | 24,527 | 1,889,315 |
Essex Property Trust, Inc. | 2,480 | 551,626 |
Extra Space Storage, Inc. | 3,714 | 244,307 |
Federal Realty Investment Trust | 4,183 | 594,111 |
Franklin Street Properties Corp. | 7,748 | 97,857 |
General Growth Properties, Inc. | 34,774 | 1,008,794 |
Government Properties Income Trust | 4,281 | 100,133 |
HCP, Inc. | 34,073 | 1,443,332 |
Health Care REIT, Inc. | 13,585 | 1,047,539 |
Healthcare Realty Trust, Inc. | 9,172 | 261,769 |
Healthcare Trust of America, Inc., Class A | 4,322 | 119,935 |
Hersha Hospitality Trust | 15,021 | 100,791 |
Highwoods Properties, Inc. | 8,655 | 394,755 |
Home Properties, Inc. | 5,260 | 351,210 |
Hospitality Properties Trust | 26,906 | 828,974 |
Host Hotels & Resorts, Inc. | 59,783 | 1,255,443 |
Security | Number of Shares | Value ($) |
Inland Real Estate Corp. | 12,301 | 131,621 |
Investors Real Estate Trust | 10,931 | 83,731 |
Jones Lang LaSalle, Inc. | 4,669 | 752,876 |
Kilroy Realty Corp. | 4,220 | 312,153 |
Kimco Realty Corp. | 34,540 | 907,711 |
LaSalle Hotel Properties | 6,999 | 272,401 |
Lexington Realty Trust | 23,180 | 251,039 |
Liberty Property Trust | 16,742 | 623,137 |
Mack-Cali Realty Corp. | 26,339 | 495,437 |
Medical Properties Trust, Inc. | 7,700 | 116,578 |
Mid-America Apartment Communities, Inc. | 3,977 | 288,213 |
National Retail Properties, Inc. | 6,973 | 280,594 |
Omega Healthcare Investors, Inc. | 6,745 | 270,205 |
Pennsylvania Real Estate Investment Trust | 9,404 | 214,223 |
Piedmont Office Realty Trust, Inc., Class A | 31,410 | 575,745 |
Post Properties, Inc. | 3,379 | 192,164 |
Prologis, Inc. | 22,881 | 977,248 |
PS Business Parks, Inc. | 1,700 | 141,406 |
Public Storage | 8,460 | 1,668,481 |
Realty Income Corp. | 8,270 | 413,996 |
Regency Centers Corp. | 8,026 | 526,746 |
Retail Properties of America, Inc., Class A | 21,966 | 347,722 |
RLJ Lodging Trust | 7,819 | 248,722 |
Ryman Hospitality Properties, Inc. | 3,377 | 202,958 |
Sabra Health Care REIT, Inc. | 7,530 | 246,156 |
Senior Housing Properties Trust | 16,844 | 376,463 |
Simon Property Group, Inc. | 16,466 | 3,134,468 |
SL Green Realty Corp. | 4,251 | 539,579 |
Sovran Self Storage, Inc. | 2,093 | 192,598 |
Sun Communities, Inc. | 2,851 | 192,699 |
Sunstone Hotel Investors, Inc. | 12,241 | 213,605 |
Tanger Factory Outlet Centers, Inc. | 5,735 | 203,306 |
Taubman Centers, Inc. | 4,358 | 315,258 |
The Geo Group, Inc. | 7,439 | 320,993 |
The Macerich Co. | 9,771 | 817,344 |
UDR, Inc. | 19,520 | 623,469 |
Ventas, Inc. | 19,876 | 1,480,166 |
Vornado Realty Trust | 16,299 | 1,793,542 |
Washington Real Estate Investment Trust | 9,990 | 283,117 |
Weingarten Realty Investors | 13,747 | 497,916 |
WP Carey, Inc. | 3,744 | 256,764 |
46,283,710 | ||
46,478,415 | ||
Total Common Stock | ||
(Cost $99,173,816) | 104,488,108 |
Security Rate, Maturity Date | Face Amount Local Currency | Value ($) |
Short-Term Investments 0.8% of net assets | ||
Time Deposits 0.7% | ||
Brown Brothers Harriman | ||
Australian Dollar | ||
1.19%, 03/02/15 | 144,167 | 112,653 |
Canadian Dollar | ||
0.10%, 03/02/15 | 1,132 | 906 |
Singapore Dollar | ||
0.01%, 03/02/15 | 4,912 | 3,604 |
DNB | ||
US Dollar | ||
0.03%, 03/02/15 | 679,349 | 679,349 |
796,512 | ||
U.S. Treasury Obligations 0.1% | ||
U.S. Treasury Bills | ||
0.00%, 03/19/15 (a)(b) | 30,000 | 30,000 |
0.01%, 03/19/15 (a)(b) | 10,000 | 10,000 |
0.02%, 03/19/15 (a)(b) | 10,000 | 10,000 |
0.05%, 03/19/15 (a)(b) | 10,000 | 9,999 |
59,999 | ||
Total Short-Term Investments | ||
(Cost $856,511) | 856,511 |
* | Non-income producing security. |
(a) | The rate shown is the purchase yield. |
(b) | All or a portion of this security is held as collateral for open futures contracts. |
CVA – | Dutch Certificate |
Reg'd – | Registered |
REIT – | Real Estate Investment Trust |
Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
Futures Contracts | ||||||
S&P 500 Index, e-mini, Long, expires 03/20/15 | 6 | 630,840 | (1,334) |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Common Stock1 | $— | $36,128,178 | $— | $36,128,178 | |||||
Brazil 1 | 1,032,958 | — | — | 1,032,958 | |||||
Canada 1 | 1,713,953 | — | — | 1,713,953 | |||||
China | |||||||||
Real Estate | 103,336 | 6,030,500 | — | 6,133,836 | |||||
Hong Kong | |||||||||
Real Estate | 724,800 | 8,771,557 | — | 9,496,357 | |||||
Singapore | |||||||||
Real Estate | 488,125 | 1,934,046 | — | 2,422,171 | |||||
South Africa | |||||||||
Real Estate | 181,447 | 900,793 | — | 1,082,240 | |||||
United States1 | 46,478,415 | — | — | 46,478,415 | |||||
Short-Term Investments1 | — | 856,511 | — | 856,511 | |||||
Total | $50,723,034 | $54,621,585 | $— | $105,344,619 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Futures Contracts2 | ($1,334) | $— | $— | ($1,334) |
1 | As categorized in Portfolio Holdings. |
2 | Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation. |
Assets | ||
Investments, at value (cost $100,030,327) | $105,344,619 | |
Foreign currency, at value (cost $13,574) | 13,575 | |
Receivables: | ||
Investments sold | 197 | |
Fund shares sold | 410,097 | |
Dividends | 95,387 | |
Foreign tax reclaims | 1,197 | |
Prepaid offering costs | + | 65,847 |
Total assets | 105,930,919 | |
Liabilities | ||
Payables: | ||
Investments bought | 395,277 | |
Investment adviser and administrator fees | 4,448 | |
Shareholder service fees | 1,744 | |
Offering costs | 65,847 | |
Fund shares redeemed | 43,104 | |
Variation margin on futures contracts | 1,394 | |
Accrued expenses | + | 141,031 |
Total liabilities | 652,845 | |
Net Assets | ||
Total assets | 105,930,919 | |
Total liabilities | – | 652,845 |
Net assets | $105,278,074 | |
Net Assets by Source | ||
Capital received from investors | 100,018,918 | |
Net investment income not yet distributed | 17,433 | |
Net realized capital losses | (72,854) | |
Net unrealized capital appreciation | 5,314,577 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$105,278,074 | 9,806,970 | $10.74 | ||
Investment Income | ||
Dividends (net of foreign withholding taxes of $40,935) | $840,632 | |
Interest | + | 205 |
Total investment income | 840,837 | |
Expenses | ||
Investment adviser and administrator fees | 122,608 | |
Shareholder service fees | 30,652 | |
Registration fees | 418,445 | |
Custodian fees | 101,867 | |
Offering costs | 36,425 | |
Professional fees | 32,758 | |
Shareholder reports | 26,250 | |
Index fee | 23,449 | |
Transfer agent fees | 10,076 | |
Portfolio accounting fees | 5,731 | |
Independent trustees' fees | 1,714 | |
Other expenses | + | 3,959 |
Total expenses | 813,934 | |
Expense reduction by CSIM and its affiliates | – | 775,150 |
Net expenses | – | 38,784 |
Net investment income | 802,053 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 85,982 | |
Net realized losses on futures contracts | (28,279) | |
Net realized gains on foreign currency transactions | + | 4,406 |
Net realized gains | 62,109 | |
Net change in unrealized appreciation (depreciation) on investments | 5,314,292 | |
Net change in unrealized appreciation (depreciation) on futures contracts | (1,334) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 1,619 |
Net change in unrealized appreciation (depreciation) | + | 5,314,577 |
Net realized and unrealized gains | 5,376,686 | |
Increase in net assets resulting from operations | $6,178,739 |
* | Commencement of operations. |
Operations | ||
10/22/14*-2/28/15 | ||
Net investment income | $802,053 | |
Net realized gains | 62,109 | |
Net change in unrealized appreciation (depreciation) | + | 5,314,577 |
Increase in net assets from operations | 6,178,739 | |
Distributions to Shareholders | ||
Distributions from net investment income | (916,331) | |
Distributions from net realized gains | + | (3,252) |
Total distributions | ($919,583) |
Transactions in Fund Shares | |||
10/22/14*-2/28/15 | |||
SHARES | VALUE | ||
Shares sold | 10,123,658 | $103,354,738 | |
Shares reinvested | 69,163 | 719,990 | |
Shares redeemed | + | (385,851) | (4,055,810) |
Net transactions in fund shares | 9,806,970 | $100,018,918 | |
Shares Outstanding and Net Assets | |||
10/22/14*-2/28/15 | |||
SHARES | NET ASSETS | ||
Beginning of period | — | $— | |
Total increase | + | 9,806,970 | 105,278,074 |
End of period | 9,806,970 | $105,278,074 | |
Net investment income not yet distributed | $17,433 |
* | Commencement of operations. |
Schwab Capital Trust (organized May 7, 1993) | Schwab Large-Cap Growth Fund |
Schwab Fundamental Global Real Estate Index Fund | Schwab Small-Cap Equity Fund |
Schwab Fundamental US Large Company Index Fund | Schwab Hedged Equity Fund |
Schwab Fundamental US Small Company Index Fund | Schwab Financial Services Fund |
Schwab Fundamental International Large Company Index Fund | Schwab Health Care Fund |
Schwab Fundamental International Small Company Index Fund | Schwab International Core Equity Fund |
Schwab Fundamental Emerging Markets Large Company Index Fund | Schwab Target 2010 Fund |
Schwab S&P 500 Index Fund | Schwab Target 2015 Fund |
Schwab Small-Cap Index Fund | Schwab Target 2020 Fund |
Schwab Total Stock Market Index Fund | Schwab Target 2025 Fund |
Schwab International Index Fund | Schwab Target 2030 Fund |
Schwab MarketTrack All Equity Portfolio | Schwab Target 2035 Fund |
Schwab MarketTrack Growth Portfolio | Schwab Target 2040 Fund |
Schwab MarketTrack Balanced Portfolio | Schwab Target 2045 Fund |
Schwab MarketTrack Conservative Portfolio | Schwab Target 2050 Fund |
Laudus Small-Cap MarketMasters Fund | Schwab Target 2055 Fund |
Laudus International MarketMasters Fund | Schwab Monthly Income Fund - Moderate Payout |
Schwab Balanced Fund | Schwab Monthly Income Fund - Enhanced Payout |
Schwab Core Equity Fund | Schwab Monthly Income Fund - Maximum Payout |
Schwab Dividend Equity Fund |
% of Average Daily Net Assets | |
First $500 million | 0.40% |
$500 million to $5 billion | 0.38% |
$5 billion to $10 billion | 0.36% |
Over $10 billion | 0.34% |
Purchases of Securities | Sales/Maturities of Securities | |
$102,325,167 | $3,130,626 |
Current Period (10/22/14*-2/28/15) |
$5,119 |
* | Commencement of operations. |
Undistributed ordinary income | $1,098,971 |
Undistributed long-term capital gains | — |
Unrealized appreciation on investments | 5,231,216 |
Unrealized depreciation on investments | (1,072,842) |
Other unrealized appreciation (depreciation) | 1,811 |
Net unrealized appreciation (depreciation) | $4,160,185 |
Current period distributions | |
Ordinary income | $915,589 |
Long-term capital gains | 3,994 |
Return of capital | — |
Capital shares | $— |
Undistributed net investment income | 131,711 |
Net realized capital gains (losses) | (131,711) |
Schwab Fundamental Global Real Estate Index Fund
San Francisco, California
April 16, 2015
The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
1. | the nature, extent and quality of the services to be provided to the Fund under the Agreement, including the resources CSIM and its affiliates will dedicate to the Fund; |
2. | CSIM’s investment performance in managing other funds having relevant investment objectives and strategies; |
3. | the Fund’s estimated expenses and how those expenses compare to those of certain other comparable mutual funds; |
4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to management of other similar funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and |
5. | the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement relating to the Fund reflects those economies of scale for the benefit of Fund investors. |
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 |
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present). | 74 | Director, Gilead Sciences, Inc. (2005 – present) |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Private Investor. | 74 | Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present) |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013) | 74 | Director, KLA-Tencor Corporation (2008 – present) |
Charles A. Ruffel 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015) | Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014). | 95 | 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 |
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present). | 74 | Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012) |
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present). | 74 | Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present). | 74 | Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present) |
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present). | 95 | Director, The Charles Schwab Corporation (2008 – present) |
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 |
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010). |
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006) | Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present). |
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009). |
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008). |
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs. |
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005) | Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present). |
1 | Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board |
2 | Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Boards. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
INFORMATION.
Schwab Dividend Equity Fund™
Schwab Large-Cap Growth Fund™
Schwab Small-Cap Equity Fund™
Schwab Hedged Equity Fund™
Schwab Financial Services Fund™
Schwab Health Care Fund™
Schwab® International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund™
Schwab® S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab International Index Fund®
Schwab MarketTrack All Equity Portfolio™
Schwab MarketTrack Growth Portfolio™
Schwab MarketTrack Balanced Portfolio™
Schwab MarketTrack Conservative Portfolio™
Schwab Target 2010 Fund
Schwab Target 2015 Fund
Schwab Target 2020 Fund
Schwab Target 2025 Fund
Schwab Target 2030 Fund
Schwab Target 2035 Fund
Schwab Target 2040 Fund
Schwab Target 2045 Fund
Schwab Target 2050 Fund
Schwab Target 2055 Fund
Schwab® Monthly Income Fund – Moderate Payout
Schwab® Monthly Income Fund – Enhanced Payout
Schwab® Monthly Income Fund – Maximum Payout
Schwab Intermediate-Term Bond Fund™
Schwab Total Bond Market Fund™
Schwab GNMA Fund™
Schwab® Treasury Inflation Protected Securities Index Fund
Schwab Tax-Free Bond Fund™
Schwab California Tax-Free Bond Fund™
1 | Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money. |
211 Main Street, San Francisco, CA 94105
P.O. Box 3812, Englewood, CO 80155-3812
© 2015 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
00137728
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Item 2: Code of Ethics.
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
(f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Gerald Smith and Kiran Patel, each currently serving on its audit committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Mr. Smith and Mr. Patel as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of thirty-eight series. One series has a fiscal year-end of February 28, whose annual financial statements are reported in Item 1, thirty-four series have a fiscal year-end of October 31, and three series have a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to the thirty-eight series live during 2015 and 2014, based on their respective 2015 and 2014 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||||||||||||||||
Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||||||
$ | 1,419,234 | $ | 1,390,778 | $ | 0 | $ | 0 | $ | 101,456 | $ | 99,131 | $ | 19,357 | $ | 19,357 |
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1 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
2 | The nature of the services includes tax compliance, tax advice and tax planning. |
3 | The nature of the services include agreed upon procedures relating to Charles Schwab Investment Management., Inc.’s, (“CSIM”) expenses for purposes of Section 15(c) of the Investment Company Act of 1940. |
(e) | (1) | Registrant’s audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. | ||
(2) | There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. | |||
(f) | Not applicable. | |||
(g) | Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant. | |||
2015: $120,813 2014: $118,488 |
Although not required to be included in the amounts disclosed under this paragraph (g) or any other paragraph of this Item 4, below are the aggregate fees billed in each of the last two fiscal years by Registrant’s principal accountant for tax compliance services rendered to U.S. Trust, an entity under common control with Registrant’s investment adviser that does not provide services to Registrant.
(h) | During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence. |
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
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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, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, 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 second fiscal quarter of 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: Exhibits.
(a) (1) | Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. |
(2) | Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. |
(3) | Not applicable. |
(b) | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being |
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furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
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 Capital Trust | ||
By: | /s/ Marie Chandoha | |
Marie Chandoha | ||
Chief Executive Officer |
Date: 4/14/15
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/ Marie Chandoha | |
Marie Chandoha | ||
Chief Executive Officer |
Date: 4/14/15
By: | /s/ George Pereira | |
George Pereira | ||
Principal Financial Officer |
Date: 4/14/15