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 Monthly Income Funds
(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 Monthly Income Funds
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: December 31
Date of reporting period: June 30, 2023
Item 1: Report(s) to Shareholders.
Target Payout
Moderate Payout)
Flexible Payout
Enhanced Payout)
Income Payout
Maximum Payout)
2 | |
3 | |
4 | |
6 | |
8 | |
10 | |
11 | |
17 | |
23 | |
29 | |
39 | |
42 | |
46 |
Total Returns for the 6 Months Ended June 30, 2023 | |
Schwab Monthly Income Fund – Target Payout (Ticker Symbol: SWJRX) | 3.02% |
Target Payout Composite Index1 | 3.12% |
Fund Category: Morningstar Moderately Conservative Allocation2 | 5.32% |
Performance Details | pages 4-5 |
Schwab Monthly Income Fund – Flexible Payout (Ticker Symbol: SWKRX) | 2.95% |
Flexible Payout Composite Index3 | 3.12% |
Fund Category: Morningstar Moderately Conservative Allocation2 | 5.32% |
Performance Details | pages 6-7 |
Schwab Monthly Income Fund – Income Payout (Ticker Symbol: SWLRX) | 2.72% |
Income Payout Composite Index4 | 2.92% |
Fund Category: Morningstar Conservative Allocation2 | 3.46% |
Performance Details | pages 8-9 |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab Monthly Income Fund – Target Payout (3/28/08) | 3.02% | 3.64% | 2.72% | 3.93% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
Target Payout Composite Index2 | 3.12% | 5.03% | 4.32% | 5.23% |
Fund Category: Morningstar Moderately Conservative Allocation3 | 5.32% | 5.41% | 3.59% | 4.33% |
Fund Expense Ratios4: Net 0.25%; Gross 0.46% |
Number of Holdings | 11 |
Portfolio Turnover Rate | 4% 1 |
12-Month Distribution Yield | 4.59% 2,3 |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab Monthly Income Fund – Flexible Payout (3/28/08) | 2.95% | 2.70% | 2.25% | 3.18% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
Flexible Payout Composite Index2 | 3.12% | 3.83% | 3.39% | 4.12% |
Fund Category: Morningstar Moderately Conservative Allocation3 | 5.32% | 5.41% | 3.59% | 4.33% |
Fund Expense Ratios4: Net 0.25%; Gross 0.40% |
Number of Holdings | 11 |
Portfolio Turnover Rate | 4% 1 |
12-Month Distribution Yield | 4.36% 2,3 |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab Monthly Income Fund – Income Payout (3/28/08) | 2.72% | 1.34% | 1.63% | 2.33% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
Income Payout Composite Index2 | 2.92% | 2.14% | 2.31% | 2.94% |
Fund Category: Morningstar Conservative Allocation3 | 3.46% | 2.88% | 2.08% | 2.90% |
Fund Expense Ratios4: Net 0.21%; Gross 0.35% |
Number of Holdings | 12 |
Portfolio Turnover Rate | 3% 1 |
12-Month Distribution Yield | 3.31% 2,3 |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/232 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/232,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 1/1/23-6/30/234,5 | |
Schwab Monthly Income Fund – Target Payout | ||||||
Actual Return | 0.00% | 0.27% | $1,000.00 | $1,030.20 | $0.00 | $1.36 |
Hypothetical 5% Return | 0.00% | 0.27% | $1,000.00 | $1,024.79 | $0.00 | $1.36 |
Schwab Monthly Income Fund – Flexible Payout | ||||||
Actual Return | 0.00% | 0.27% | $1,000.00 | $1,029.50 | $0.00 | $1.36 |
Hypothetical 5% Return | 0.00% | 0.27% | $1,000.00 | $1,024.79 | $0.00 | $1.36 |
Schwab Monthly Income Fund – Income Payout | ||||||
Actual Return | 0.00% | 0.22% | $1,000.00 | $1,027.20 | $0.00 | $1.11 |
Hypothetical 5% Return | 0.00% | 0.22% | $1,000.00 | $1,024.79 | $0.00 | $1.10 |
1 | Based on the most recent six-month expense ratio. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $9.62 | $11.99 | $11.38 | $11.09 | $10.05 | $11.09 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.19 | 0.30 | 0.24 | 0.21 | 0.29 | 0.23 |
Net realized and unrealized gains (losses) | 0.10 | (1.83 ) | 0.81 | 0.36 | 1.34 | (0.92 ) |
Total from investment operations | 0.29 | (1.53 ) | 1.05 | 0.57 | 1.63 | (0.69 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.24 ) | (0.30 ) | (0.37 ) | (0.21 ) | (0.29 ) | (0.24 ) |
Distributions from net realized gains | — | (0.54 ) | (0.07 ) | (0.07 ) | (0.30 ) | (0.11 ) |
Total distributions | (0.24 ) | (0.84 ) | (0.44 ) | (0.28 ) | (0.59 ) | (0.35 ) |
Net asset value at end of period | $9.67 | $9.62 | $11.99 | $11.38 | $11.09 | $10.05 |
Total return | 3.02 %2 | (12.85 %) | 9.23 % | 5.32 % | 16.41 % | (6.31 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.00 %4 | 0.00 %5 | 0.00 % | 0.00 % | 0.00 % | 0.00 % |
Gross operating expenses3 | 0.26 %4 | 0.21 %5 | 0.18 % | 0.21 % | 0.24 % | 0.19 % |
Net investment income (loss) | 3.87 %4 | 2.79 % | 1.99 % | 1.93 % | 2.68 % | 2.17 % |
Portfolio turnover rate | 4 %2 | 82 % | 11 % | 30 % | 30 % | 20 % |
Net assets, end of period (x 1,000) | $37,656 | $40,127 | $53,397 | $44,663 | $46,606 | $41,358 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 78.4% OF NET ASSETS | ||||||||
U.S. Stocks 20.2% | ||||||||
Large-Cap 20.2% | ||||||||
Schwab U.S. Dividend Equity ETF | $8,086,633 | $460,065 | ($637,748) | ($21,910) | ($288,083) | $7,598,957 | 104,640 | $133,033 |
International Stocks 20.1% | ||||||||
Developed Markets 20.1% | ||||||||
Schwab International Dividend Equity ETF | 7,933,765 | 236,594 | (1,109,072) | 40,589 | 480,760 | 7,582,636 | 316,735 | 93,776 |
Real Estate 10.1% | ||||||||
Global Real Estate 10.1% | ||||||||
Schwab Global Real Estate Fund | 3,956,444 | 202,161 | (391,845) | (26,402) | 42,085 | 3,782,443 | 620,073 | 76,232 |
Fixed Income 26.6% | ||||||||
Intermediate-Term Bond 19.6% | ||||||||
Schwab 5-10 Year Corporate Bond ETF | 1,214,989 | 115,912 | (226,880) | (10,302) | 34,578 | 1,128,297 | 25,614 | 16,781 |
Schwab U.S. Aggregate Bond Index Fund | 6,970,822 | 101,618 | (882,289) | (76,738) | 133,453 | 6,246,866 | 703,476 | 101,654 |
7,375,163 | ||||||||
Long-Term Government Bond 7.0% | ||||||||
Schwab Long-Term U.S. Treasury ETF | 2,810,637 | 38,657 | (305,070) | (3,963) | 96,062 | 2,636,323 | 72,646 | 40,737 |
10,011,486 | ||||||||
Money Market Funds 1.4% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 432,443 | 109,786 | — | — | (44) | 542,185 | 542,076 | 11,109 |
Total Affiliated Underlying Funds (Cost $29,778,514) | $31,405,733 | $1,264,793 | ($3,552,904 ) | ($98,726 ) | $498,811 | $29,517,707 | $473,322 | |
UNAFFILIATED UNDERLYING FUNDS 21.4% OF NET ASSETS | ||||||||
Fixed Income 21.1% | ||||||||
Floating Rate Loan 3.0% | ||||||||
T Rowe Price Institutional Floating Rate Fund, Investor Class | $1,137,628 | 122,063 | ||||||
High-Yield Bond 11.1% | ||||||||
BlackRock High Yield Bond Portfolio, Class K | 4,157,167 | 612,248 | ||||||
Preferred 7.0% | ||||||||
Cohen & Steers Preferred Securities & Income Fund, Inc., Class I | 2,627,688 | 233,572 | ||||||
7,922,483 | ||||||||
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
Money Market Funds 0.3% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.03% (b) | $124,377 | 124,377 | ||||||
Total Unaffiliated Underlying Funds (Cost $8,301,184) | $8,046,860 | |||||||
Total Investments in Securities (Cost $38,079,698) | $37,564,567 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(c) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
Assets | ||
Investments in securities, at value - affiliated (cost $29,778,514) | $29,517,707 | |
Investments in securities, at value - unaffiliated (cost $8,301,184) | 8,046,860 | |
Receivables: | ||
Investments sold | 203,424 | |
Dividends | 111,165 | |
Fund shares sold | 10,701 | |
Due from investment adviser | 10,588 | |
Prepaid expenses | + | 11,914 |
Total assets | 37,912,359 | |
Liabilities | ||
Payables: | ||
Investments bought | 220,634 | |
Fund shares redeemed | 12,508 | |
Independent trustees’ fees | 57 | |
Accrued expenses | + | 23,306 |
Total liabilities | 256,505 | |
Net assets | $37,655,854 | |
Net Assets by Source | ||
Capital received from investors | $41,084,222 | |
Total distributable loss | + | (3,428,368 ) |
Net assets | $37,655,854 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$37,655,854 | 3,894,351 | $9.67 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $473,322 | |
Dividends received from securities - unaffiliated | + | 281,052 |
Total investment income | 754,374 | |
Expenses | ||
Professional fees | 18,915 | |
Registration fees | 11,273 | |
Portfolio accounting fees | 8,389 | |
Shareholder reports | 6,359 | |
Independent trustees’ fees | 3,114 | |
Custodian fees | 947 | |
Transfer agent fees | 820 | |
Other expenses | + | 645 |
Total expenses | 50,462 | |
Expense reduction | – | 50,462 |
Net expenses | – | — |
Net investment income | 754,374 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - affiliated | (98,726 ) | |
Net realized losses on sales of securities - unaffiliated | + | (19,333 ) |
Net realized losses | (118,059 ) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | 498,811 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 24,963 |
Net change in unrealized appreciation (depreciation) | + | 523,774 |
Net realized and unrealized gains | 405,715 | |
Increase in net assets resulting from operations | $1,160,089 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $754,374 | $1,256,312 | |
Net realized losses | (118,059 ) | (1,341,975 ) | |
Net change in unrealized appreciation (depreciation) | + | 523,774 | (6,623,044 ) |
Increase (decrease) in net assets resulting from operations | $1,160,089 | ($6,708,707 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($961,751 ) | ($3,427,395 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 221,027 | $2,144,534 | 580,941 | $6,318,541 | |
Shares reinvested | 51,025 | 496,692 | 198,651 | 1,964,259 | |
Shares redeemed | + | (548,454 ) | (5,310,623 ) | (1,063,647 ) | (11,416,732 ) |
Net transactions in fund shares | (276,402 ) | ($2,669,397 ) | (284,055 ) | ($3,133,932 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 4,170,753 | $40,126,913 | 4,454,808 | $53,396,947 | |
Total decrease | + | (276,402 ) | (2,471,059 ) | (284,055 ) | (13,270,034 ) |
End of period | 3,894,351 | $37,655,854 | 4,170,753 | $40,126,913 |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $9.79 | $12.02 | $11.82 | $11.49 | $10.58 | $11.38 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.19 | 0.31 | 0.24 | 0.23 | 0.31 | 0.25 |
Net realized and unrealized gains (losses) | 0.10 | (1.81 ) | 0.44 | 0.45 | 1.13 | (0.72 ) |
Total from investment operations | 0.29 | (1.50 ) | 0.68 | 0.68 | 1.44 | (0.47 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.24 ) | (0.29 ) | (0.34 ) | (0.23 ) | (0.31 ) | (0.26 ) |
Distributions from net realized gains | — | (0.44 ) | (0.14 ) | (0.12 ) | (0.22 ) | (0.07 ) |
Total distributions | (0.24 ) | (0.73 ) | (0.48 ) | (0.35 ) | (0.53 ) | (0.33 ) |
Net asset value at end of period | $9.84 | $9.79 | $12.02 | $11.82 | $11.49 | $10.58 |
Total return | 2.95 %2 | (12.50 %) | 5.73 % | 6.11 % | 13.79 % | (4.20 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.00 %4 | 0.00 %5 | 0.00 % | 0.00 % | 0.00 % | 0.00 % |
Gross operating expenses3 | 0.18 %4 | 0.15 %5 | 0.10 % | 0.12 % | 0.14 % | 0.12 % |
Net investment income (loss) | 3.90 %4 | 2.88 % | 1.99 % | 2.06 % | 2.75 % | 2.28 % |
Portfolio turnover rate | 4 %2 | 78 % | 20 % | 28 % | 31 % | 9 % |
Net assets, end of period (x 1,000) | $66,037 | $67,701 | $100,081 | $89,691 | $85,595 | $76,552 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 78.4% OF NET ASSETS | ||||||||
U.S. Stocks 20.2% | ||||||||
Large-Cap 20.2% | ||||||||
Schwab U.S. Dividend Equity ETF | $13,593,952 | $923,917 | ($680,222) | ($11,779) | ($499,154) | $13,326,714 | 183,513 | $233,534 |
International Stocks 20.1% | ||||||||
Developed Markets 20.1% | ||||||||
Schwab International Dividend Equity ETF | 13,337,658 | 267,313 | (1,195,580) | 44,977 | 843,416 | 13,297,784 | 555,463 | 165,995 |
Real Estate 10.0% | ||||||||
Global Real Estate 10.0% | ||||||||
Schwab Global Real Estate Fund | 6,671,380 | 427,294 | (474,791) | (41,882) | 51,323 | 6,633,324 | 1,087,430 | 132,700 |
Fixed Income 26.6% | ||||||||
Intermediate-Term Bond 19.6% | ||||||||
Schwab 5-10 Year Corporate Bond ETF | 2,032,639 | 75,030 | (162,428) | (7,395) | 51,055 | 1,988,901 | 45,151 | 29,314 |
Schwab U.S. Aggregate Bond Index Fund | 11,809,540 | 251,730 | (1,208,114) | (107,572) | 200,823 | 10,946,407 | 1,232,703 | 174,994 |
12,935,308 | ||||||||
Long-Term Government Bond 7.0% | ||||||||
Schwab Long-Term U.S. Treasury ETF | 4,677,053 | 50,889 | (237,968) | (5,599) | 149,060 | 4,633,435 | 127,678 | 70,913 |
17,568,743 | ||||||||
Money Market Funds 1.5% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 943,394 | 20,286 | — | — | (95) | 963,585 | 963,392 | 22,624 |
Total Affiliated Underlying Funds (Cost $51,957,427) | $53,065,616 | $2,016,459 | ($3,959,103 ) | ($129,250 ) | $796,428 | $51,790,150 | $830,074 | |
UNAFFILIATED UNDERLYING FUNDS 21.2% OF NET ASSETS | ||||||||
Fixed Income 21.0% | ||||||||
Floating Rate Loan 3.0% | ||||||||
T Rowe Price Institutional Floating Rate Fund, Investor Class | $2,007,655 | 215,414 | ||||||
High-Yield Bond 11.1% | ||||||||
BlackRock High Yield Bond Portfolio, Class K | 7,329,794 | 1,079,498 | ||||||
Preferred 6.9% | ||||||||
Cohen & Steers Preferred Securities & Income Fund, Inc., Class I | 4,543,364 | 403,855 | ||||||
13,880,813 | ||||||||
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
Money Market Funds 0.2% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.03% (b) | $110,329 | 110,329 | ||||||
Total Unaffiliated Underlying Funds (Cost $14,436,580) | $13,991,142 | |||||||
Total Investments in Securities (Cost $66,394,007) | $65,781,292 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(c) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
Assets | ||
Investments in securities, at value - affiliated (cost $51,957,427) | $51,790,150 | |
Investments in securities, at value - unaffiliated (cost $14,436,580) | 13,991,142 | |
Receivables: | ||
Investments sold | 430,163 | |
Dividends | 194,570 | |
Due from investment adviser | 12,869 | |
Fund shares sold | 486 | |
Prepaid expenses | + | 11,251 |
Total assets | 66,430,631 | |
Liabilities | ||
Payables: | ||
Investments bought | 307,627 | |
Fund shares redeemed | 57,949 | |
Independent trustees’ fees | 60 | |
Accrued expenses | + | 28,483 |
Total liabilities | 394,119 | |
Net assets | $66,036,512 | |
Net Assets by Source | ||
Capital received from investors | $71,020,134 | |
Total distributable loss | + | (4,983,622 ) |
Net assets | $66,036,512 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$66,036,512 | 6,711,952 | $9.84 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $830,074 | |
Dividends received from securities - unaffiliated | + | 482,023 |
Total investment income | 1,312,097 | |
Expenses | ||
Professional fees | 25,020 | |
Registration fees | 11,142 | |
Shareholder reports | 8,775 | |
Portfolio accounting fees | 8,504 | |
Independent trustees’ fees | 3,153 | |
Transfer agent fees | 1,006 | |
Custodian fees | 968 | |
Other expenses | + | 745 |
Total expenses | 59,313 | |
Expense reduction | – | 59,313 |
Net expenses | – | — |
Net investment income | 1,312,097 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - affiliated | (129,250 ) | |
Net realized losses on sales of securities - unaffiliated | + | (21,844 ) |
Net realized losses | (151,094 ) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | 796,428 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 20,149 |
Net change in unrealized appreciation (depreciation) | + | 816,577 |
Net realized and unrealized gains | 665,483 | |
Increase in net assets resulting from operations | $1,977,580 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $1,312,097 | $2,298,882 | |
Net realized losses | (151,094 ) | (2,820,870 ) | |
Net change in unrealized appreciation (depreciation) | + | 816,577 | (11,416,743 ) |
Increase (decrease) in net assets resulting from operations | $1,977,580 | ($11,938,731 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($1,625,448 ) | ($5,096,634 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 290,686 | $2,869,593 | 472,202 | $5,252,310 | |
Shares reinvested | 97,612 | 966,410 | 319,785 | 3,221,892 | |
Shares redeemed | + | (594,293 ) | (5,853,042 ) | (2,201,237 ) | (23,818,158 ) |
Net transactions in fund shares | (205,995 ) | ($2,017,039 ) | (1,409,250 ) | ($15,343,956 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 6,917,947 | $67,701,419 | 8,327,197 | $100,080,740 | |
Total decrease | + | (205,995 ) | (1,664,907 ) | (1,409,250 ) | (32,379,321 ) |
End of period | 6,711,952 | $66,036,512 | 6,917,947 | $67,701,419 |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $8.97 | $10.72 | $10.80 | $10.33 | $9.60 | $10.15 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.17 | 0.26 | 0.22 | 0.23 | 0.29 | 0.24 |
Net realized and unrealized gains (losses) | 0.07 | (1.59 ) | 0.03 | 0.47 | 0.77 | (0.48 ) |
Total from investment operations | 0.24 | (1.33 ) | 0.25 | 0.70 | 1.06 | (0.24 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.17 ) | (0.22 ) | (0.26 ) | (0.22 ) | (0.28 ) | (0.24 ) |
Distributions from net realized gains | — | (0.20 ) | (0.07 ) | (0.01 ) | (0.05 ) | (0.07 ) |
Total distributions | (0.17 ) | (0.42 ) | (0.33 ) | (0.23 ) | (0.33 ) | (0.31 ) |
Net asset value at end of period | $9.04 | $8.97 | $10.72 | $10.80 | $10.33 | $9.60 |
Total return | 2.72 %2 | (12.50 %) | 2.33 % | 6.93 % | 11.18 % | (2.31 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.00 %4 | 0.00 %5 | 0.00 % | 0.00 % | 0.00 % | 0.00 % |
Gross operating expenses3 | 0.17 %4 | 0.14 %5 | 0.11 % | 0.14 % | 0.23 % | 0.20 % |
Net investment income (loss) | 3.72 %4 | 2.74 % | 1.99 % | 2.17 % | 2.85 % | 2.42 % |
Portfolio turnover rate | 3 %2 | 68 % | 25 % | 23 % | 31 % | 11 % |
Net assets, end of period (x 1,000) | $66,463 | $71,382 | $112,619 | $112,043 | $62,526 | $40,213 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 80.6% OF NET ASSETS | ||||||||
U.S. Stocks 13.2% | ||||||||
Large-Cap 13.2% | ||||||||
Schwab U.S. Dividend Equity ETF | $9,515,245 | $308,454 | ($705,617) | ($2,049) | ($345,280) | $8,770,753 | 120,776 | $153,187 |
International Stocks 11.2% | ||||||||
Developed Markets 11.2% | ||||||||
Schwab International Dividend Equity ETF | 7,442,857 | 349,134 | (875,825) | 42,121 | 466,776 | 7,425,063 | 310,153 | 91,688 |
Real Estate 6.0% | ||||||||
Global Real Estate 6.0% | ||||||||
Schwab Global Real Estate Fund | 4,236,358 | 322,113 | (575,505) | (35,522) | 61,433 | 4,008,877 | 657,193 | 80,902 |
Fixed Income 48.7% | ||||||||
Intermediate-Term Bond 34.7% | ||||||||
Schwab 5-10 Year Corporate Bond ETF | 6,462,629 | 132,966 | (762,794) | (25,492) | 171,509 | 5,978,818 | 135,728 | 90,028 |
Schwab U.S. Aggregate Bond Index Fund | 18,777,306 | 274,088 | (2,159,489) | (260,795) | 406,010 | 17,037,120 | 1,918,595 | 274,181 |
23,015,938 | ||||||||
Long-Term Government Bond 6.0% | ||||||||
Schwab Long-Term U.S. Treasury ETF | 4,255,723 | 55,209 | (442,075) | (12,440) | 144,918 | 4,001,335 | 110,260 | 62,058 |
Short-Term Bond 8.0% | ||||||||
Schwab 1-5 Year Corporate Bond ETF | 5,692,024 | 96,682 | (528,808) | (1,264) | 47,093 | 5,305,727 | 112,243 | 63,804 |
32,323,000 | ||||||||
Money Market Funds 1.5% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 993,642 | 21,367 | — | — | (101) | 1,014,908 | 1,014,705 | 23,829 |
Total Affiliated Underlying Funds (Cost $55,220,493) | $57,375,784 | $1,560,013 | ($6,050,113 ) | ($295,441 ) | $952,358 | $53,542,601 | $839,677 | |
UNAFFILIATED UNDERLYING FUNDS 19.3% OF NET ASSETS | ||||||||
Fixed Income 19.0% | ||||||||
Floating Rate Loan 3.0% | ||||||||
T Rowe Price Institutional Floating Rate Fund, Investor Class | $2,016,225 | 216,333 | ||||||
High-Yield Bond 9.0% | ||||||||
BlackRock High Yield Bond Portfolio, Class K | 5,972,786 | 879,644 | ||||||
Preferred 7.0% | ||||||||
Cohen & Steers Preferred Securities & Income Fund, Inc., Class I | 4,640,647 | 412,502 | ||||||
12,629,658 | ||||||||
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
Money Market Funds 0.3% | ||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.03% (b) | $204,504 | 204,504 | ||||||
Total Unaffiliated Underlying Funds (Cost $13,285,920) | $12,834,162 | |||||||
Total Investments in Securities (Cost $68,506,413) | $66,376,763 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(c) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
Assets | ||
Investments in securities, at value - affiliated (cost $55,220,493) | $53,542,601 | |
Investments in securities, at value - unaffiliated (cost $13,285,920) | 12,834,162 | |
Receivables: | ||
Investments sold | 401,428 | |
Dividends | 176,975 | |
Due from investment adviser | 12,146 | |
Fund shares sold | 5,169 | |
Prepaid expenses | + | 11,335 |
Total assets | 66,983,816 | |
Liabilities | ||
Payables: | ||
Investments bought | 449,990 | |
Fund shares redeemed | 35,340 | |
Independent trustees’ fees | 61 | |
Accrued expenses | + | 35,394 |
Total liabilities | 520,785 | |
Net assets | $66,463,031 | |
Net Assets by Source | ||
Capital received from investors | $77,253,201 | |
Total distributable loss | + | (10,790,170 ) |
Net assets | $66,463,031 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$66,463,031 | 7,352,263 | $9.04 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $839,677 | |
Dividends received from securities - unaffiliated | + | 442,495 |
Total investment income | 1,282,172 | |
Expenses | ||
Professional fees | 26,089 | |
Registration fees | 11,321 | |
Portfolio accounting fees | 8,527 | |
Shareholder reports | 8,237 | |
Independent trustees’ fees | 3,158 | |
Transfer agent fees | 889 | |
Custodian fees | 843 | |
Other expenses | + | 761 |
Total expenses | 59,825 | |
Expense reduction | – | 59,825 |
Net expenses | – | — |
Net investment income | 1,282,172 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - affiliated | (295,441 ) | |
Net realized losses on sales of securities - unaffiliated | + | (12,361 ) |
Net realized losses | (307,802 ) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | 952,358 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 3,891 |
Net change in unrealized appreciation (depreciation) | + | 956,249 |
Net realized and unrealized gains | 648,447 | |
Increase in net assets resulting from operations | $1,930,619 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $1,282,172 | $2,364,813 | |
Net realized losses | (307,802 ) | (7,746,533 ) | |
Net change in unrealized appreciation (depreciation) | + | 956,249 | (7,565,397 ) |
Increase (decrease) in net assets resulting from operations | $1,930,619 | ($12,947,117 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($1,323,494 ) | ($3,491,475 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 238,942 | $2,179,193 | 1,055,280 | $10,635,381 | |
Shares reinvested | 74,054 | 673,508 | 230,261 | 2,129,699 | |
Shares redeemed | + | (920,457 ) | (8,378,363 ) | (3,835,880 ) | (37,563,734 ) |
Net transactions in fund shares | (607,461 ) | ($5,525,662 ) | (2,550,339 ) | ($24,798,654 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 7,959,724 | $71,381,568 | 10,510,063 | $112,618,814 | |
Total decrease | + | (607,461 ) | (4,918,537 ) | (2,550,339 ) | (41,237,246 ) |
End of period | 7,352,263 | $66,463,031 | 7,959,724 | $71,381,568 |
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) | |
Schwab Monthly Income Fund - Target Payout | Schwab International Opportunities Fund |
Schwab Monthly Income Fund - Flexible Payout | Schwab Balanced Fund |
Schwab Monthly Income Fund - Income Payout | Schwab Core Equity Fund |
Schwab Target 2010 Fund | Schwab Dividend Equity Fund |
Schwab Target 2015 Fund | Schwab Large-Cap Growth Fund |
Schwab Target 2020 Fund | Schwab Small-Cap Equity Fund |
Schwab Target 2025 Fund | Schwab Health Care Fund |
Schwab Target 2030 Fund | Schwab International Core Equity Fund |
Schwab Target 2035 Fund | Schwab Fundamental US Large Company Index Fund |
Schwab Target 2040 Fund | Schwab Fundamental US Small Company Index Fund |
Schwab Target 2045 Fund | Schwab Fundamental International Large Company Index Fund |
Schwab Target 2050 Fund | Schwab Fundamental International Small Company Index Fund |
Schwab Target 2055 Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab Target 2060 Fund | Schwab Fundamental Global Real Estate Index Fund |
Schwab Target 2065 Fund | Schwab Target 2010 Index Fund |
Schwab S&P 500 Index Fund | Schwab Target 2015 Index Fund |
Schwab Small-Cap Index Fund® | Schwab Target 2020 Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Target 2025 Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2030 Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2035 Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Target 2040 Index Fund |
Schwab International Index Fund® | Schwab Target 2045 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2050 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2055 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2060 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2065 Index Fund |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
UNDERLYING FUNDS | SCHWAB MONTHLY INCOME FUND – TARGET PAYOUT | SCHWAB MONTHLY INCOME FUND – FLEXIBLE PAYOUT | SCHWAB MONTHLY INCOME FUND – INCOME PAYOUT |
Schwab 1-5 Year Corporate Bond ETF | — % | — % | 1.5 % |
Schwab 5-10 Year Corporate Bond ETF | 0.0 %* | 0.0 %* | 0.1 % |
Schwab Global Real Estate Fund | 1.3 % | 2.3 % | 1.4 % |
Schwab International Equity ETF | 1.0 % | 1.8 % | 1.0 % |
Schwab Long-Term U.S. Treasury ETF | 0.9 % | 1.5 % | 1.3 % |
Schwab U.S. Aggregate Bond Index Fund | 0.1 % | 0.2 % | 0.4 % |
Schwab U.S. Dividend Equity ETF | 0.0 %* | 0.0 %* | 0.0 %* |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.0 %* | 0.0 %* | 0.0 %* |
* | Less than 0.05% |
PURCHASE COST | SALE PROCEEDS | REALIZED GAINS (LOSSES) | |
Schwab Monthly Income Fund – Target Payout | $40,239 | $— | $— |
Schwab Monthly Income Fund – Flexible Payout | — | — | — |
Schwab Monthly Income Fund – Income Payout | — | 40,239 | (741 ) |
5. Board of Trustees:
7. Purchases and Sales of Investment Securities:
PURCHASES OF SECURITIES | SALES OF SECURITIES | |
Schwab Monthly Income Fund – Target Payout | $1,715,361 | $4,592,256 |
Schwab Monthly Income Fund – Flexible Payout | 2,567,265 | 4,900,629 |
Schwab Monthly Income Fund – Income Payout | 2,071,163 | 7,492,264 |
8. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) | |
Schwab Monthly Income Fund – Target Payout | $38,422,900 | $272,691 | ($1,131,024) | ($858,333) |
Schwab Monthly Income Fund – Flexible Payout | 66,644,403 | 1,185,169 | (2,048,280 ) | (863,111 ) |
Schwab Monthly Income Fund – Income Payout | 68,860,653 | 150,210 | (2,634,100 ) | (2,483,890 ) |
Schwab Monthly Income Fund – Target Payout | $2,284,217 |
Schwab Monthly Income Fund – Flexible Payout | 3,912,765 |
Schwab Monthly Income Fund – Income Payout | 8,477,741 |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
Schwab Monthly Income Fund – Target Payout | $1,309,466 | $2,117,929 |
Schwab Monthly Income Fund – Flexible Payout | 2,244,284 | 2,852,350 |
Schwab Monthly Income Fund – Income Payout | 1,923,056 | 1,568,419 |
9. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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 |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Schwab Funds
Member SIPC®
Printed on recycled paper.
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to this semi-annual report.
Item 6: Schedule of Investments.
The 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, Dana Smith, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a) (1) | Code of ethics – not applicable to this semi-annual report. |
(2) |
(b) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust – Schwab Monthly Income Funds
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | August 16, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | August 16, 2023 | |
By: | /s/ Dana Smith | |
Dana Smith Chief Financial Officer | ||
Date: | August 16, 2023 |