Schwab Tax-Free Bond Fund™ SWNTX as of March 15, 2016

Charles Schwab & Co

Description

Schwab Mutual Fund Report Card™ Report generated on 03/15/2016 Important Information Regarding This Report This Mutual Fund Report Card is informational in nature and is not a recommendation or solicitation for any person to buy, sell or hold any particular security; nor is it intended to address any individual's investment objectives, financial situation or personal circumstances. We recommend that investors define their goals, risk tolerance, time horizon and investment objectives in addition to researching possible investment choices. Target date funds are built for investors who expect to start gradual withdrawals of fund assets on the target date, to begin covering expenses in retirement. The values of the funds will fluctuate up to and after the target dates. There is no guarantee the funds will provide adequate income at or through retirement. Fixed income securities are subject to increased loss of principal during periods of rising interest rates.

Lower rated securities are subject to greater credit risk, default risk, and liquidity risk. International investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. Small cap funds are subject to greater volatility than those in other asset categories.

Due to the limited focus of sector funds, they may experience greater volatility than funds with a broader investment strategy. Sector weightings for fund portfolios are determined using the Global Industry Classification Standard (GICS). GICS was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's.

GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. Data and rankings provided by Morningstar. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 02/29/16. These ratings are subject to change every month.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The top 10% of the funds in an investment category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The overall Morningstar Rating is a weighted average of the funds’ three-, five-, and 10-year (if applicable) Morningstar rating metrics.

To contact Morningstar, Inc. call 1-800-735-0700. All data provided by Morningstar, Inc. All rights reserved.

The information contained herein is the proprietary information of Morningstar, Inc., and may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. Morningstar, Inc., shall not be responsible for investment decisions, damages, or other losses resulting from use of the information. Morningstar, Inc., has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Mutual Fund OneSource® funds have no loads and generally have no transaction fees.

Funds appearing on the Mutual Fund OneSource® Select List are chosen based on a formula that combines risk-adjusted return, total return and expenses. They must be available through Schwab without loads and open to new investors. Charles Schwab receives remuneration from fund companies in the Mutual Fund OneSource® Service for record keeping, shareholder services, and other administrative services. Schwab may also receive remuneration from transaction fee fund companies for certain administrative services. Schwab’s short-term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab’s Mutual Fund OneSource® service (and certain other funds with no transaction fee) and held for 90 days or less.

Schwab reserves the right to exempt some funds from this fee, including certain Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short-term trading. Trades in no-load mutual funds available through Schwab’s Mutual Fund OneSource® service (including Schwab Funds®) as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies.

Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. The Laudus Group® of Funds includes the Laudus Mondrian and Laudus US Large Cap Growth Funds, which are part of the Laudus Trust and Laudus Institutional Trust and distributed by ALPS Distributors, Inc., and the Laudus MarketMasters Funds®, which are part of the Schwab Capital Trust and distributed by Charles Schwab & Co., Inc. ALPS Distributors, Inc. and Charles Schwab & Co., Inc.

are unaffiliated entities. Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM). Distributor: Charles Schwab & Co., Inc.

(Schwab). CSIM and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. The aggregate fees Schwab or its affiliates receive from Schwab Affiliate Funds are greater than the remuneration Schwab receives from other fund companies participating in the Mutual Fund OneSource Service. © 2016 Charles Schwab & Co., Inc.

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