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: 811-07704
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)
Jonathan de St. Paer
Schwab Capital Trust – Schwab Fundamental Global Real Estate Index 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, 2022
Item 1: Report(s) to Shareholders.
Total Returns for the 6 Months Ended August 31, 2022 | |
Schwab Fundamental Global Real Estate Index Fund (Ticker Symbol: SFREX) | -13.98% 1 |
Russell RAFITM Global Select Real Estate Index (Net)2 | -14.97% |
FTSE EPRA Nareit Global Index (Net)2 | -13.17% |
Fund Category: Morningstar Global Real Estate3 | -13.59% |
Performance Details | pages 6-7 |
1 | 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 net asset value (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 semiannual reports. |
2 | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date. |
* | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
Chuck Craig, CFA, Senior Portfolio Manager, is responsible for the oversight and day-to-day co-management of the fund. Prior to joining Schwab in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent more than five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc. |
David Rios, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Fund: Schwab Fundamental Global Real Estate Index Fund (10/22/14) | -13.98% 2 | -16.88% | 0.43% | 3.48% |
Russell RAFITM Global Select Real Estate Index (Net)3 | -14.97% | -17.88% | 0.00% | 3.11% |
FTSE EPRA Nareit Global Index (Net)3 | -13.17% | -17.25% | 1.02% | 2.73% |
Fund Category: Morningstar Global Real Estate4 | -13.59% | -18.20% | 2.16% | N/A |
Fund Expense Ratio5: 0.39% |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
2 | 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 net asset value (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 semiannual reports. |
3 | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
4 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date. |
5 | As stated in the prospectus. |
Number of Holdings | 386 |
Weighted Average Market Cap (millions) | $19,085 |
Price/Earnings Ratio (P/E) | 11.6 |
Price/Book Ratio (P/B) | 0.8 |
Portfolio Turnover Rate | 14% 2 |
1 | Excludes derivatives. |
2 | Not annualized. |
3 | Represents an aggregate of industry weightings, none of which represent more than 1.0% of investments. |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 3/1/22 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 8/31/22 | EXPENSES PAID DURING PERIOD 3/1/22-8/31/22 2 | |
Schwab Fundamental Global Real Estate Index Fund | ||||
Actual Return | 0.39% | $1,000.00 | $ 859.50 | $1.83 |
Hypothetical 5% Return | 0.39% | $1,000.00 | $1,023.24 | $1.99 |
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 of the period, and divided by 365 days of the fiscal year. |
3/1/22– 8/31/22* | 3/1/21– 2/28/22 | 3/1/20– 2/28/21 | 3/1/19– 2/29/20 | 3/1/18– 2/28/19 | 3/1/17– 2/28/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $11.48 | $11.05 | $11.06 | $11.43 | $11.24 | $10.73 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.20 | 0.34 | 0.30 | 0.37 | 0.37 | 0.34 |
Net realized and unrealized gains (losses) | (1.81) | 0.44 | 0.05 | (0.24) | 0.38 | 0.59 |
Total from investment operations | (1.61) | 0.78 | 0.35 | 0.13 | 0.75 | 0.93 |
Less distributions: | ||||||
Distributions from net investment income | (0.09) | (0.35) | (0.34) | (0.47) | (0.44) | (0.39) |
Distributions from net realized gains | — | — | (0.02) | (0.03) | (0.12) | (0.03) |
Total distributions | (0.09) | (0.35) | (0.36) | (0.50) | (0.56) | (0.42) |
Net asset value at end of period | $9.78 | $11.48 | $11.05 | $11.06 | $11.43 | $11.24 |
Total return | (14.05%) 2 | 7.02% | 3.62% | 0.91% | 7.00% | 8.69% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.39% 3,4 | 0.39% | 0.39% | 0.39% | 0.39% | 0.43% 5 |
Net operating expenses | N/A | N/A | N/A | N/A | N/A 6 | 0.41% 5 |
Net investment income (loss) | 3.69% 3 | 2.86% | 3.17% | 3.16% | 3.32% | 3.01% |
Portfolio turnover rate | 14% 2 | 32% | 25% | 16% | 16% | 13% |
Net assets, end of period (x 1,000,000) | $120 | $134 | $157 | $196 | $190 | $158 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Annualized (except for proxy expenses). |
4 | Ratio includes less than 0.005% of non-routine proxy expenses. |
5 | Effective June 1, 2017, the annual operating expense ratio was reduced. The ratio presented for the period ended 2/28/18 is a blended ratio. |
6 | Effective June 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.8% OF NET ASSETS | ||
Australia 3.6% | ||
Charter Hall Group | 10,431 | 95,130 |
Charter Hall Retail REIT | 27,525 | 76,529 |
Cromwell Property Group | 123,693 | 67,251 |
Dexus | 52,643 | 311,382 |
Goodman Group | 39,149 | 520,603 |
Mirvac Group | 366,741 | 522,287 |
REA Group Ltd. | 1,000 | 86,238 |
Scentre Group | 540,501 | 1,074,135 |
Shopping Centres Australasia Property Group | 47,997 | 88,649 |
Stockland | 286,419 | 704,552 |
The GPT Group | 95,473 | 272,051 |
Vicinity Centres | 383,378 | 501,922 |
Waypoint REIT Ltd. | 16,885 | 30,208 |
4,350,937 | ||
Austria 0.1% | ||
CA Immobilien Anlagen AG | 2,669 | 85,006 |
IMMOFINANZ AG * | 1,681 | 25,002 |
S IMMO AG | 824 | 18,829 |
128,837 | ||
Belgium 0.2% | ||
Aedifica S.A. | 327 | 30,939 |
Befimmo S.A. | 440 | 20,922 |
Cofinimmo S.A. | 1,282 | 130,053 |
Warehouses De Pauw CVA | 2,369 | 72,082 |
253,996 | ||
Brazil 0.3% | ||
BR Malls Participacoes S.A. | 84,922 | 134,670 |
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 44,489 | 121,091 |
Multiplan Empreendimentos Imobiliarios S.A. | 18,400 | 85,238 |
340,999 | ||
Canada 2.6% | ||
Allied Properties Real Estate Investment Trust | 6,301 | 150,550 |
Altus Group Ltd. | 1,818 | 71,012 |
Artis Real Estate Investment Trust | 17,746 | 149,173 |
Boardwalk Real Estate Investment Trust | 3,078 | 113,197 |
Canadian Apartment Properties REIT | 7,253 | 246,691 |
Chartwell Retirement Residences | 18,546 | 146,719 |
Choice Properties Real Estate Investment Trust | 12,846 | 132,925 |
Colliers International Group, Inc. | 1,151 | 134,078 |
Crombie Real Estate Investment Trust | 6,921 | 81,944 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Dream Industrial Real Estate Investment Trust | 3,055 | 28,379 |
Dream Office Real Estate Investment Trust | 7,372 | 102,552 |
First Capital Real Estate Investment Trust | 21,588 | 248,533 |
FirstService Corp. | 900 | 112,583 |
Granite Real Estate Investment Trust | 1,554 | 88,269 |
H&R Real Estate Investment Trust | 39,599 | 382,316 |
Killam Apartment Real Estate Investment Trust | 5,451 | 69,977 |
NorthWest Healthcare Properties Real Estate Investment Trust | 10,785 | 102,976 |
RioCan Real Estate Investment Trust | 30,762 | 471,496 |
SmartCentres Real Estate Investment Trust | 10,565 | 225,000 |
Tricon Residential, Inc. | 6,127 | 63,959 |
3,122,329 | ||
China 10.5% | ||
Agile Group Holdings Ltd. * | 1,017,000 | 356,153 |
C&D International Investment Group Ltd. | 17,719 | 35,437 |
China Aoyuan Group Ltd. *(a) | 729,127 | 82,215 |
China Evergrande Group *(a) | 4,094,000 | 645,499 |
China Jinmao Holdings Group Ltd. * | 1,731,000 | 364,499 |
China Merchants Shekou Industrial Zone Holdings Co., Ltd., A Shares | 80,700 | 170,285 |
China Overseas Grand Oceans Group Ltd. | 268,000 | 126,527 |
China Overseas Land & Investment Ltd. | 841,500 | 2,261,507 |
China Resources Land Ltd. | 418,000 | 1,711,395 |
China SCE Group Holdings Ltd. | 882,000 | 73,841 |
China South City Holdings Ltd. | 1,364,000 | 85,757 |
China Vanke Co., Ltd., A Shares | 149,700 | 359,883 |
China Vanke Co., Ltd., H Shares | 421,200 | 822,279 |
CIFI Holdings Group Co., Ltd. | 679,440 | 171,963 |
Country Garden Holdings Co., Ltd. | 2,359,000 | 696,367 |
Country Garden Services Holdings Co., Ltd. | 19,400 | 38,124 |
Evergrande Property Services Group Ltd. *(a) | 51,000 | 11,209 |
Fantasia Holdings Group Co., Ltd. *(a) | 2,614,500 | 49,967 |
Gemdale Corp., A Shares | 50,500 | 85,095 |
Gemdale Properties & Investment Corp., Ltd. | 1,258,000 | 107,193 |
Greentown China Holdings Ltd. | 131,500 | 248,112 |
Guangzhou R&F Properties Co., Ltd., H Shares | 2,045,400 | 423,068 |
Hopson Development Holdings Ltd. | 109,039 | 149,927 |
Jinmao Property Services Co., Ltd. * | 22,341 | 11,475 |
Kaisa Group Holdings Ltd. *(a) | 1,271,000 | 102,021 |
KE Holdings, Inc., ADR * | 2,950 | 53,218 |
KWG Group Holdings Ltd. * | 432,500 | 77,811 |
Longfor Group Holdings Ltd. | 191,500 | 621,564 |
Midea Real Estate Holding Ltd. | 45,800 | 48,867 |
Poly Developments and Holdings Group Co., Ltd., A Shares | 123,100 | 307,593 |
Poly Property Group Co., Ltd | 1,113,000 | 226,224 |
RiseSun Real Estate Development Co., Ltd., A Shares * | 67,800 | 27,377 |
Ronshine China Holdings Ltd. * | 406,000 | 38,796 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Seazen Group Ltd. * | 666,000 | 221,074 |
Seazen Holdings Co., Ltd., A Shares * | 17,600 | 52,876 |
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., A Shares | 77,000 | 110,649 |
Shenzhen Investment Ltd. | 943,563 | 172,787 |
Shimao Group Holdings Ltd. (a) | 695,000 | 293,542 |
Shinsun Holdings Group Co., Ltd. * | 486,000 | 24,660 |
Sino-Ocean Group Holding Ltd. | 1,893,000 | 276,298 |
Sunac China Holdings Ltd. *(a) | 617,000 | 270,031 |
Times China Holdings Ltd. | 540,498 | 80,221 |
Yuexiu Property Co., Ltd. | 314,000 | 392,742 |
Yuzhou Group Holdings Co., Ltd. | 2,266,963 | 97,920 |
Zhenro Properties Group Ltd. * | 974,000 | 45,093 |
Zhongliang Holdings Group Co., Ltd. * | 232,500 | 19,551 |
12,648,692 | ||
France 1.3% | ||
Altarea S.C.A. | 225 | 29,470 |
Carmila S.A. | 1,960 | 31,215 |
Covivio | 4,080 | 227,777 |
Gecina S.A. | 2,697 | 240,027 |
ICADE | 4,206 | 185,257 |
Klepierre S.A. * | 23,496 | 481,956 |
Mercialys S.A. | 12,328 | 97,087 |
Nexity S.A. | 9,942 | 222,610 |
1,515,399 | ||
Germany 1.4% | ||
ADLER Group S.A. * | 7,060 | 19,803 |
Aroundtown S.A. | 51,283 | 149,571 |
Deutsche Euroshop AG | 1,057 | 25,279 |
Deutsche Wohnen SE | 5,304 | 120,479 |
DIC Asset AG | 2,011 | 20,586 |
Grand City Properties S.A. | 7,702 | 91,380 |
LEG Immobilien SE | 2,813 | 212,589 |
PATRIZIA SE | 2,191 | 27,743 |
TAG Immobilien AG | 9,685 | 89,349 |
Vonovia SE | 34,942 | 945,933 |
1,702,712 | ||
Hong Kong 8.8% | ||
CK Asset Holdings Ltd. | 314,250 | 2,121,113 |
Fortune Real Estate Investment Trust | 108,000 | 87,809 |
Hang Lung Properties Ltd. | 175,000 | 291,027 |
Henderson Land Development Co., Ltd. | 120,866 | 404,311 |
Hongkong Land Holdings Ltd. | 127,927 | 618,411 |
Hysan Development Co., Ltd. | 55,500 | 156,412 |
Kerry Properties Ltd. | 150,000 | 345,831 |
Link REIT | 92,400 | 715,086 |
New World Development Co., Ltd. | 340,460 | 1,109,416 |
Powerlong Real Estate Holdings Ltd. | 585,000 | 73,362 |
Sino Land Co., Ltd. | 346,583 | 506,817 |
Sun Hung Kai Properties Ltd. | 205,500 | 2,414,259 |
Swire Properties Ltd. | 89,800 | 206,964 |
The Wharf Holdings Ltd. | 222,000 | 836,044 |
Wharf Real Estate Investment Co., Ltd. | 154,200 | 701,638 |
10,588,500 | ||
Japan 10.5% | ||
Activia Properties, Inc. | 20 | 62,128 |
Advance Residence Investment Corp. | 41 | 108,415 |
Aeon Mall Co., Ltd. | 22,900 | 273,136 |
AEON REIT Investment Corp. | 54 | 60,970 |
Comforia Residential REIT, Inc. | 13 | 31,900 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Daito Trust Construction Co., Ltd. | 15,670 | 1,541,576 |
Daiwa House REIT Investment Corp. | 51 | 117,902 |
Daiwa Office Investment Corp. | 7 | 35,371 |
Daiwa Securities Living Investments Corp. | 46 | 41,077 |
Frontier Real Estate Investment Corp. | 12 | 45,932 |
Fukuoka REIT Corp. | 30 | 36,698 |
GLP J-REIT | 83 | 101,110 |
Heiwa Real Estate Co., Ltd. | 2,700 | 76,136 |
Hulic Co., Ltd. | 34,700 | 262,955 |
Hulic REIT, Inc. | 26 | 31,005 |
Industrial & Infrastructure Fund Investment Corp. | 33 | 43,547 |
Invincible Investment Corp. | 144 | 44,283 |
Japan Excellent, Inc. | 48 | 45,255 |
Japan Hotel REIT Investment Corp. | 118 | 58,174 |
Japan Logistics Fund, Inc. | 17 | 40,347 |
Japan Metropolitan Fund Invest | 283 | 224,752 |
Japan Prime Realty Investment Corp. | 33 | 97,743 |
Japan Real Estate Investment Corp. | 46 | 213,052 |
Kenedix Office Investment Corp. | 13 | 67,161 |
Kenedix Residential Next Investment Corp. | 21 | 34,113 |
Kenedix Retail REIT Corp. | 17 | 34,805 |
Mitsubishi Estate Co., Ltd. | 133,500 | 1,797,826 |
Mitsui Fudosan Co., Ltd. | 119,400 | 2,416,729 |
Mori Hills Reit Investment Corp. | 34 | 38,197 |
Mori Trust Sogo REIT, Inc. | 29 | 30,247 |
Nippon Accommodations Fund, Inc. | 11 | 53,992 |
Nippon Building Fund, Inc. | 47 | 234,105 |
Nippon Kanzai Co., Ltd. | 1,600 | 30,513 |
Nippon Prologis REIT, Inc. | 41 | 103,145 |
NIPPON REIT Investment Corp. | 12 | 32,904 |
Nomura Real Estate Holdings, Inc. | 22,000 | 540,493 |
Nomura Real Estate Master Fund, Inc. | 188 | 229,936 |
NTT UD REIT Investment Corp. | 37 | 39,995 |
Open House Group Co., Ltd. | 5,600 | 219,173 |
Orix JREIT, Inc. | 101 | 138,906 |
Pressance Corp. | 2,400 | 25,951 |
Relo Group, Inc. | 8,100 | 130,204 |
SAMTY Co., Ltd. | 3,900 | 61,759 |
Sekisui House REIT, Inc. | 82 | 49,694 |
Starts Corp., Inc. | 6,800 | 130,633 |
Sumitomo Realty & Development Co., Ltd. | 44,400 | 1,085,842 |
Sun Frontier Fudousan Co., Ltd. | 3,100 | 26,744 |
Takara Leben Co., Ltd. | 32,900 | 89,492 |
Tokyo Tatemono Co., Ltd. | 28,500 | 427,208 |
Tokyu Fudosan Holdings Corp. | 135,800 | 729,760 |
Tokyu REIT, Inc. | 22 | 31,365 |
United Urban Investment Corp. | 146 | 155,335 |
12,579,691 | ||
Mexico 0.5% | ||
Corp. Inmobiliaria Vesta S.A.B. de C.V. | 18,600 | 34,271 |
FIBRA Macquarie Mexico | 92,400 | 116,449 |
Fibra Uno Administracion S.A. de C.V. | 370,300 | 387,642 |
PLA Administradora Industrial S. de R.L de C.V. | 81,500 | 109,103 |
647,465 | ||
Netherlands 1.0% | ||
Eurocommercial Properties N.V. | 5,701 | 119,314 |
Unibail-Rodamco-Westfield * | 19,264 | 990,352 |
Wereldhave N.V. | 8,397 | 113,649 |
1,223,315 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Philippines 1.0% | ||
AC Energy Corp. | 84,210 | 11,214 |
Ayala Corp. | 29,450 | 366,991 |
Ayala Land, Inc. | 556,832 | 282,666 |
GT Capital Holdings, Inc. | 22,080 | 189,113 |
Megaworld Corp. | 988,000 | 43,859 |
Robinsons Land Corp. | 217,400 | 72,591 |
SM Prime Holdings, Inc. | 325,700 | 218,943 |
1,185,377 | ||
Singapore 2.3% | ||
Ascendas Real Estate Investment Trust | 143,388 | 288,985 |
Ascott Residence Trust | 146,400 | 114,071 |
CapitaLand China Trust | 37,800 | 29,709 |
CapitaLand Integrated Commercial Trust | 153,105 | 226,446 |
Capitaland Investment Ltd. | 355,838 | 936,842 |
City Developments Ltd. | 60,100 | 348,953 |
Cromwell European Real Estate Investment Trust | 14,600 | 30,225 |
Frasers Logistics & Commercial Trust | 36,600 | 35,560 |
Manulife US Real Estate Investment Trust | 50,400 | 24,166 |
Mapletree Industrial Trust | 62,144 | 112,330 |
Mapletree Logistics Trust | 91,131 | 108,705 |
Mapletree Pan Asia Commercial Trust | 87,827 | 115,492 |
Suntec Real Estate Investment Trust | 96,300 | 108,650 |
UOL Group Ltd. | 45,480 | 225,025 |
2,705,159 | ||
South Africa 1.0% | ||
Fortress REIT Ltd., Class A * | 129,877 | 79,009 |
Growthpoint Properties Ltd. | 499,547 | 371,552 |
Hyprop Investments Ltd. * | 64,163 | 133,168 |
NEPI Rockcastle S.A. | 35,837 | 190,959 |
Redefine Properties Ltd. | 1,148,511 | 254,796 |
Resilient REIT Ltd. | 30,625 | 96,566 |
Vukile Property Fund Ltd. | 134,254 | 105,365 |
1,231,415 | ||
Sweden 0.6% | ||
Castellum AB | 13,717 | 192,510 |
Fabege AB | 8,492 | 75,057 |
Fastighets AB Balder, B Shares * | 11,528 | 63,660 |
Hufvudstaden AB, A Shares | 2,403 | 28,627 |
JM AB | 10,234 | 175,948 |
Pandox AB * | 7,206 | 89,087 |
Samhallsbyggnadsbolaget i Norden AB | 11,995 | 19,259 |
Wallenstam AB, B Shares | 10,279 | 46,128 |
Wihlborgs Fastigheter AB | 11,767 | 84,296 |
774,572 | ||
Switzerland 0.8% | ||
Allreal Holding AG | 1,161 | 182,021 |
Mobimo Holding AG | 431 | 105,807 |
PSP Swiss Property AG | 1,538 | 173,998 |
Swiss Prime Site AG * | 5,786 | 497,608 |
959,434 | ||
Taiwan 0.4% | ||
Chong Hong Construction Co., Ltd. | 29,000 | 70,608 |
Farglory Land Development Co. Ltd | 36,000 | 75,259 |
Highwealth Construction Corp. | 113,470 | 179,918 |
Huaku Development Co., Ltd | 30,000 | 91,345 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Ruentex Development Co., Ltd | 41,388 | 85,344 |
502,474 | ||
Thailand 0.8% | ||
AP Thailand PCL NVDR | 374,361 | 102,503 |
Bangkok Land PCL | 1,161,500 | 32,138 |
Central Pattana PCL NVDR | 140,500 | 266,446 |
Land & Houses PCL NVDR | 981,211 | 239,377 |
LPN Development PCL | 255,200 | 31,611 |
Quality Houses PCL NVDR | 1,122,200 | 66,438 |
Sansiri PCL NVDR | 3,250,383 | 97,933 |
Supalai PCL NVDR | 213,582 | 114,153 |
950,599 | ||
United Arab Emirates 1.4% | ||
Aldar Properties PJSC | 296,388 | 388,157 |
Emaar Development PJSC * | 110,486 | 144,202 |
Emaar Properties PJSC | 641,401 | 1,090,037 |
1,622,396 | ||
United Kingdom 1.8% | ||
Assura plc | 39,398 | 29,818 |
Big Yellow Group plc | 5,004 | 77,082 |
Derwent London plc | 3,696 | 104,270 |
Grainger plc | 32,252 | 100,487 |
Great Portland Estates plc | 13,887 | 80,146 |
Hammerson plc | 294,793 | 74,473 |
Intu Properties plc *(a) | 184,056 | 0 |
Land Securities Group plc | 56,924 | 429,344 |
LondonMetric Property plc | 10,137 | 25,578 |
LSL Property Services plc | 7,453 | 29,265 |
NewRiver REIT plc | 77,716 | 74,781 |
Primary Health Properties plc | 20,963 | 33,221 |
Rightmove plc | 18,826 | 132,328 |
Safestore Holdings plc | 6,060 | 77,578 |
Savills plc | 14,151 | 155,413 |
Segro plc | 17,837 | 194,655 |
Sirius Real Estate Ltd. | 20,745 | 19,593 |
The British Land Co., plc | 64,350 | 320,991 |
The Unite Group plc | 6,070 | 74,006 |
Tritax Big Box REIT plc | 32,872 | 63,418 |
Workspace Group plc | 7,708 | 46,664 |
2,143,111 | ||
United States 48.9% | ||
Acadia Realty Trust | 6,579 | 104,803 |
Agree Realty Corp. | 665 | 50,088 |
Alexander & Baldwin, Inc. | 10,539 | 197,395 |
Alexandria Real Estate Equities, Inc. | 3,732 | 572,489 |
American Assets Trust, Inc. | 3,375 | 93,690 |
American Homes 4 Rent, Class A | 7,954 | 282,844 |
American Tower Corp. | 11,502 | 2,922,083 |
Americold Realty Trust, Inc. | 9,760 | 287,139 |
Anywhere Real Estate, Inc. * | 46,834 | 457,568 |
Apartment Income REIT Corp. | 9,294 | 379,660 |
Apartment Investment & Management Co., Class A * | 5,487 | 48,505 |
Apple Hospitality REIT, Inc. | 31,640 | 503,392 |
Ashford Hospitality Trust, Inc. * | 6,046 | 55,502 |
AvalonBay Communities, Inc. | 5,834 | 1,172,109 |
Boston Properties, Inc. | 10,690 | 849,107 |
Brandywine Realty Trust | 22,948 | 184,272 |
Brixmor Property Group, Inc. | 27,416 | 588,896 |
Broadstone Net Lease, Inc. | 1,926 | 36,864 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Camden Property Trust | 3,593 | 461,736 |
CareTrust REIT, Inc. | 4,337 | 93,419 |
CBRE Group, Inc., Class A | 22,589 | 1,783,627 |
Centerspace | 967 | 72,892 |
Chatham Lodging Trust * | 8,667 | 105,391 |
Corporate Office Properties Trust | 9,821 | 253,775 |
CoStar Group, Inc. * | 4,576 | 318,673 |
Cousins Properties, Inc. | 6,818 | 183,063 |
Crown Castle, Inc. | 14,275 | 2,438,598 |
CubeSmart | 6,792 | 312,772 |
Cushman & Wakefield plc * | 9,484 | 141,881 |
DiamondRock Hospitality Co. * | 29,220 | 255,091 |
Digital Realty Trust, Inc. | 9,603 | 1,187,219 |
DigitalBridge Group, Inc. * | 25,398 | 452,080 |
Diversified Healthcare Trust | 189,366 | 276,474 |
Douglas Emmett, Inc. | 11,503 | 224,539 |
Duke Realty Corp. | 10,038 | 590,736 |
Easterly Government Properties, Inc. | 4,456 | 79,985 |
EastGroup Properties, Inc. | 921 | 151,993 |
Empire State Realty Trust, Inc., Class A | 22,421 | 156,274 |
EPR Properties | 6,516 | 283,381 |
Equinix, Inc. | 2,550 | 1,676,293 |
Equity Commonwealth * | 6,560 | 172,594 |
Equity LifeStyle Properties, Inc. | 5,321 | 373,002 |
Equity Residential | 18,188 | 1,330,998 |
Essential Properties Realty Trust, Inc. | 1,408 | 31,877 |
Essex Property Trust, Inc. | 2,536 | 672,192 |
Extra Space Storage, Inc. | 3,312 | 658,194 |
Federal Realty Investment Trust | 4,063 | 411,460 |
First Industrial Realty Trust, Inc. | 3,862 | 195,726 |
Four Corners Property Trust, Inc. | 1,494 | 40,174 |
Gaming & Leisure Properties, Inc. | 11,041 | 532,949 |
Getty Realty Corp. | 1,224 | 36,818 |
Global Net Lease, Inc. | 10,117 | 139,311 |
Healthcare Realty Trust, Inc., Class A | 20,118 | 489,270 |
Healthpeak Properties, Inc. | 31,326 | 822,307 |
Hersha Hospitality Trust * | 10,886 | 105,594 |
Highwoods Properties, Inc. | 9,141 | 277,978 |
Host Hotels & Resorts, Inc. | 105,471 | 1,874,220 |
Hudson Pacific Properties, Inc. | 12,609 | 166,565 |
Industrial Logistics Properties Trust | 5,006 | 37,495 |
Invitation Homes, Inc. | 16,048 | 582,221 |
Iron Mountain, Inc. | 25,647 | 1,349,289 |
JBG SMITH Properties | 8,681 | 190,722 |
Jones Lang LaSalle, Inc. * | 5,896 | 1,020,008 |
Kennedy-Wilson Holdings, Inc. | 10,033 | 176,179 |
Kilroy Realty Corp. | 6,096 | 297,302 |
Kimco Realty Corp. | 33,401 | 704,093 |
Kite Realty Group Trust | 16,880 | 326,797 |
Lamar Advertising Co., Class A | 5,294 | 497,054 |
Life Storage, Inc. | 2,515 | 320,034 |
LTC Properties, Inc. | 2,756 | 123,717 |
LXP Industrial Trust | 16,273 | 163,706 |
Marcus & Millichap, Inc. | 2,087 | 78,012 |
Medical Properties Trust, Inc. | 21,964 | 320,894 |
Mid-America Apartment Communities, Inc. | 4,198 | 695,483 |
National Health Investors, Inc. | 2,843 | 186,245 |
National Retail Properties, Inc. | 7,909 | 355,114 |
National Storage Affiliates Trust | 833 | 42,083 |
Newmark Group, Inc., Class A | 8,682 | 88,990 |
Office Properties Income Trust | 9,313 | 163,629 |
Omega Healthcare Investors, Inc. | 17,253 | 563,483 |
Outfront Media, Inc. | 17,475 | 309,307 |
Paramount Group, Inc. | 32,650 | 226,264 |
Park Hotels & Resorts, Inc. | 45,440 | 636,160 |
Pebblebrook Hotel Trust | 13,864 | 244,284 |
Physicians Realty Trust | 11,619 | 193,573 |
Piedmont Office Realty Trust, Inc., Class A | 18,579 | 218,861 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Prologis, Inc. | 12,953 | 1,612,778 |
Public Storage | 4,032 | 1,333,907 |
Realty Income Corp. | 16,168 | 1,103,951 |
Regency Centers Corp. | 8,347 | 507,831 |
Retail Opportunity Investments Corp. | 8,139 | 136,328 |
Rexford Industrial Realty, Inc. | 1,680 | 104,513 |
RLJ Lodging Trust | 36,130 | 435,728 |
RPT Realty | 10,152 | 97,764 |
Ryman Hospitality Properties, Inc. * | 3,418 | 281,028 |
Sabra Health Care REIT, Inc. | 20,042 | 300,029 |
SBA Communications Corp. | 1,411 | 458,928 |
Service Properties Trust | 84,259 | 576,332 |
Simon Property Group, Inc. | 20,852 | 2,126,487 |
SITE Centers Corp. | 19,033 | 246,668 |
SL Green Realty Corp. | 9,912 | 437,813 |
Spirit Realty Capital, Inc. | 6,004 | 245,263 |
STAG Industrial, Inc. | 4,993 | 153,784 |
STORE Capital Corp. | 8,881 | 239,609 |
Summit Hotel Properties, Inc. | 16,426 | 129,108 |
Sun Communities, Inc. | 2,856 | 438,996 |
Sunstone Hotel Investors, Inc. * | 34,328 | 373,832 |
Tanger Factory Outlet Centers, Inc. | 13,677 | 210,899 |
Terreno Realty Corp. | 1,281 | 78,128 |
The GEO Group, Inc. * | 60,508 | 494,955 |
The Howard Hughes Corp. * | 1,574 | 100,154 |
The Macerich Co. | 35,173 | 336,606 |
The Necessity Retail REIT, Inc. | 11,855 | 88,438 |
UDR, Inc. | 11,187 | 501,961 |
Uniti Group, Inc. | 31,718 | 297,832 |
Urban Edge Properties | 10,433 | 164,111 |
Ventas, Inc. | 40,014 | 1,915,070 |
Veris Residential, Inc. * | 10,315 | 138,634 |
VICI Properties, Inc. | 15,549 | 512,961 |
Vornado Realty Trust | 21,443 | 562,235 |
Washington Real Estate Investment Trust | 7,437 | 145,840 |
Welltower, Inc. | 28,632 | 2,194,643 |
WP Carey, Inc. | 7,418 | 623,335 |
Xenia Hotels & Resorts, Inc. * | 17,895 | 283,815 |
Zillow Group, Inc., Class A * | 539 | 18,003 |
Zillow Group, Inc., Class C * | 1,676 | 56,079 |
58,792,902 | ||
Total Common Stocks (Cost $114,919,745) | 119,970,311 | |
INVESTMENT COMPANIES 0.0% OF NET ASSETS | ||
United States 0.0% | ||
iShares Core US REIT ETF | 200 | 10,956 |
Total Investment Companies (Cost $11,162) | 10,956 | |
Total Investments in Securities (Cost $114,930,907) | 119,981,267 |
NUMBER OF CONTRACTS | NOTIONAL AMOUNT ($) | CURRENT VALUE/ UNREALIZED DEPRECIATION ($) | |
FUTURES CONTRACTS | |||
Long | |||
Dow Jones U.S. Real Estate Index, expires 09/16/22 | 2 | 72,940 | (2,464) |
MSCI EAFE Index, expires 09/16/22 | 1 | 91,355 | (2,432) |
Net Unrealized Depreciation | (4,896) |
* | Non-income producing security. |
(a) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
ADR — | American Depositary Receipt |
CVA — | Dutch Certificate |
ETF — | Exchange traded fund |
NVDR — | Non-Voting Depositary Receipt |
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 | $62,903,695 | $— | $— | $62,903,695 |
Australia | — | 4,350,937 | — | 4,350,937 |
Austria | 25,002 | 103,835 | — | 128,837 |
Belgium | — | 253,996 | — | 253,996 |
China | 111,565 | 11,082,643 | 1,454,484 | 12,648,692 |
France | — | 1,515,399 | — | 1,515,399 |
Germany | 27,743 | 1,674,969 | — | 1,702,712 |
Hong Kong | — | 10,588,500 | — | 10,588,500 |
Japan | — | 12,579,691 | — | 12,579,691 |
Netherlands | — | 1,223,315 | — | 1,223,315 |
Philippines | — | 1,185,377 | — | 1,185,377 |
Singapore | 30,225 | 2,674,934 | — | 2,705,159 |
South Africa | 935,091 | 296,324 | — | 1,231,415 |
Sweden | — | 774,572 | — | 774,572 |
Switzerland | — | 959,434 | — | 959,434 |
Taiwan | — | 502,474 | — | 502,474 |
Thailand | — | 950,599 | — | 950,599 |
United Arab Emirates | — | 1,622,396 | — | 1,622,396 |
United Kingdom | 204,741 | 1,938,370 | 0* | 2,143,111 |
Investment Companies1 | 10,956 | — | — | 10,956 |
Liabilities | ||||
Futures Contracts2 | (4,896) | — | — | (4,896) |
Total | $64,244,122 | $54,277,765 | $1,454,484 | $119,976,371 |
* | Level 3 amount shown includes securities determined to have no value at August 31, 2022. |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
INVESTMENT IN SECURITIES | VALUE AT February 28, 2022 | GROSS TRANSFERS IN | GROSS TRANSFERS OUT | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT August 31, 2022 |
Common Stock | ||||||||
China | $22,385 | $1,188,101 | ($22,385) | $952,476 | $— | $— | ($686,093) | $1,454,484 |
United Kingdom | 0 | — | — | — | 0 | (642,035) | 642,035 | 0 |
Total | $22,385 | $1,188,101 | ($22,385) | $952,476 | $0 | ($642,035) | ($44,058) | $1,454,484 |
Assets | ||
Investments in securities, at value - unaffiliated (cost $114,930,907) | $119,981,267 | |
Cash collateral held for securities on loan | 221,979 | |
Foreign currency, at value (cost $102,293) | 102,774 | |
Deposit with broker for futures contracts | 25,314 | |
Receivables: | ||
Fund shares sold | 256,927 | |
Dividends | 201,297 | |
Foreign tax reclaims | 61,480 | |
Investments sold | 36,474 | |
Income from securities on loan | 783 | |
Prepaid expenses | + | 16,151 |
Total assets | 120,904,446 | |
Liabilities | ||
Collateral held for securities on loan | 221,979 | |
Payables: | ||
Fund shares redeemed | 333,914 | |
Due to custodian | 97,196 | |
Investment adviser fees | 42,053 | |
Investments bought | 11,162 | |
Variation margin on futures contracts | + | 1,010 |
Total liabilities | 707,314 | |
Net assets | $120,197,132 | |
Net Assets by Source | ||
Capital received from investors | $135,232,738 | |
Total distributable loss | + | (15,035,606) |
Net assets | $120,197,132 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$120,197,132 | 12,287,377 | $9.78 | ||
For the period March 1, 2022 through August 31, 2022; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $201,693) | $2,636,056 | |
Interest received from securities - unaffiliated | 99 | |
Securities on loan, net | + | 8,453 |
Total investment income | 2,644,608 | |
Expenses | ||
Investment adviser fees | 252,738 | |
Proxy fees1 | + | 5,799 |
Total expenses | – | 258,537 |
Net investment income | 2,386,071 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (1,242,457) | |
Net realized gains on futures contracts | 52,851 | |
Net realized losses on foreign currency transactions | + | (13,468) |
Net realized losses | (1,203,074) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | (20,282,067) | |
Net change in unrealized appreciation (depreciation) on futures contracts | 10,171 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (12,932) |
Net change in unrealized appreciation (depreciation) | + | (20,284,828) |
Net realized and unrealized losses | (21,487,902) | |
Decrease in net assets resulting from operations | ($19,101,831) |
1 | Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
OPERATIONS | |||
3/1/22-8/31/22 | 3/1/21-2/28/22 | ||
Net investment income | $2,386,071 | $4,133,334 | |
Net realized losses | (1,203,074) | (643,444) | |
Net change in unrealized appreciation (depreciation) | + | (20,284,828) | 7,331,577 |
Increase (decrease) in net assets resulting from operations | ($19,101,831) | $10,821,467 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($1,073,471) | ($4,151,292) |
TRANSACTIONS IN FUND SHARES | |||||
3/1/22-8/31/22 | 3/1/21-2/28/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 2,124,108 | $22,417,146 | 2,976,893 | $35,250,664 | |
Shares reinvested | 73,301 | 742,345 | 252,264 | 2,954,749 | |
Shares redeemed | + | (1,591,598) | (16,837,379) | (5,736,493) | (67,586,304) |
Net transactions in fund shares | 605,811 | $6,322,112 | (2,507,336) | ($29,380,891) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
3/1/22-8/31/22 | 3/1/21-2/28/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 11,681,566 | $134,050,322 | 14,188,902 | $156,761,038 | |
Total increase (decrease) | + | 605,811 | (13,853,190) | (2,507,336) | (22,710,716) |
End of period | 12,287,377 | $120,197,132 | 11,681,566 | $134,050,322 |
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) | |
Schwab Fundamental Global Real Estate Index Fund | Schwab Target 2015 Fund |
Schwab Fundamental US Large Company Index Fund | Schwab Target 2020 Fund |
Schwab Fundamental US Small Company Index Fund | Schwab Target 2025 Fund |
Schwab Fundamental International Large Company Index Fund | Schwab Target 2030 Fund |
Schwab Fundamental International Small Company Index Fund | Schwab Target 2035 Fund |
Schwab Fundamental Emerging Markets Large Company Index Fund | Schwab Target 2040 Fund |
Schwab S&P 500 Index Fund | Schwab Target 2045 Fund |
Schwab Small-Cap Index Fund® | Schwab Target 2050 Fund |
Schwab Total Stock Market Index Fund® | Schwab Target 2055 Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2060 Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2065 Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Monthly Income Fund — Moderate Payout |
Schwab International Index Fund® | Schwab Monthly Income Fund — Enhanced Payout |
Schwab MarketTrack All Equity Portfolio™ | Schwab Monthly Income Fund — Maximum Payout |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2010 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2015 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2020 Index Fund |
Schwab International Opportunities Fund™ | Schwab Target 2025 Index Fund |
Schwab Balanced Fund | Schwab Target 2030 Index Fund |
Schwab Core Equity Fund | Schwab Target 2035 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2040 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2045 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2050 Index Fund |
Schwab Health Care Fund | Schwab Target 2055 Index Fund |
Schwab International Core Equity Fund | Schwab Target 2060 Index Fund |
Schwab Target 2010 Fund | Schwab Target 2065 Index Fund |
DESCRIPTION | FAIR VALUE AT End of Period | VALUATION TECHNIQUE | UNOBSERVABLE INPUTS | AMOUNT | IMPACT TO FAIR VALUE IF INPUT INCREASES1 |
Assets: | |||||
Investments in Securities: | |||||
Common Stocks: | |||||
China | $1,454,484 | Discount to last traded price | Discount | 0.0% to 25.0% | Decrease 2 |
All Other Investments3 | 0 | ||||
Total | $1,454,484 |
1 | Represents the directional change in the fair value that would result from a significant and reasonable increase in the corresponding input. A significant and reasonable decrease in the input would have the opposite effect. Significant impacts, if any, to fair value and/or net assets have been indicated. |
2 | Represents a significant impact to fair value but not net assets. |
3 | Includes securities determined to have no value at August 31, 2022. |
5. Board of Trustees: |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$27,321,712 | $17,853,069 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$126,788,447 | $8,857,158 | ($15,669,234) | ($6,812,076) |
PRIOR FISCAL YEAR END DISTRIBUTIONS | |
ORDINARY INCOME | |
$4,151,292 |
Proposal – To elect each of the following individuals as trustees of the Trust: | For | Withheld |
Walter W. Bettinger II | 1,095,577,106.505 | 115,838,980.968 |
Richard A. Wurster | 1,117,598,789.555 | 93,817,297.918 |
Michael J. Beer | 1,116,890,447.505 | 94,525,639.968 |
Robert W. Burns | 1,117,915,860.110 | 93,500,227.363 |
Nancy F. Heller | 1,119,878,732.134 | 91,537,355.339 |
David L. Mahoney | 1,069,125,022.434 | 142,291,065.039 |
Jane P. Moncreiff | 1,120,187,927.838 | 91,228,159.635 |
Kiran M. Patel | 1,116,689,111.571 | 94,726,975.902 |
Kimberly S. Patmore | 1,119,941,056.059 | 91,475,031.414 |
J. Derek Penn | 1,117,666,014.121 | 93,750,073.352 |
1. | the nature, extent and quality of the services provided to the Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Fund; |
2. | the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data; |
3. | the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds; |
4. | the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to the investment adviser 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 reflect 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 |
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). | 105 | 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. | 105 | 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. | 105 | 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. | 105 | 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). | 105 | 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 |
Kiran M. Patel 1948 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) | Retired. | 105 | Director (2008 – present), KLA-Tencor Corporation |
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). | 105 | 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). | 105 | 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. | 105 | Director (2008 – present), The Charles Schwab Corporation |
Interested 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 |
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 – present), 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. | 105 | 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 |
Jonathan de St. Paer 1973 President and Chief Executive Officer (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.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Mar. 2019 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; 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 Treasurer, Chief Financial Officer and 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) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Director (July 2020 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited. |
Omar Aguilar 1970 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) | 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.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
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) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), 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) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), 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. |
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 |
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) | Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – present), 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. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Wurster are Interested Trustees. Each of Mr. Bettinger and Mr. Wurster is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. |
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 Board. |
Schwab Funds
Member SIPC®
Printed on recycled paper.
¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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 schedules of investments are 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, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Mark Fischer, 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 Capital Trust – Schwab Fundamental Global Real Estate Index Fund
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | October 17, 2022 |
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/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | October 17, 2022 |
By: | /s/ Mark Fischer | |
Mark Fischer Chief Financial Officer | ||
Date: | October 17, 2022 |