Schwab Tax-Free Bond Funds
 
Investment Team & Strategy>Bond>Tax-Free Bond Funds

Our tax-free bond funds provide a convenient way to gain diversified exposure to value-priced products with low investment minimums and active professional investment management. Schwab's tax-free bond funds are designed to be effective vehicles to help investors manage their tax burden.

Investment Objective

Schwab's tax-free bond funds seek to provide high current income exempt from federal income tax, including income exempt from the Alternative Minimum Tax (AMT), by investing primarily in municipal bonds. In the case of the Schwab's California funds, income is also exempt from California personal income tax.

Schwab Tax-Free Bond Fund Line-Up

Schwab Tax-Free Bond FundTM

To pursue its goal, the fund primarily invests in investment grade municipal securities —those in the four highest credit rating categories (rated AAA to BBB– or the unrated equivalent as determined by the investment adviser). The fund normally invests at least 80% of its net assets in municipal securities the interest from which is exempt from federal income tax, including the federal alternative minimum tax (AMT). The fund does not currently intend to invest in municipal securities whose interest is subject to the AMT; however, this would not prevent the fund from investing in such securities as a temporary defensive measure discussed below. The fund seeks to maintain an average maturity in its portfolio between three years and ten years.

Schwab California Tax-Free Bond Fund™

To pursue its goal, the fund primarily invests in investment grade municipal securities —those in the four highest credit rating categories (rated AAA to BBB– or the unrated equivalent as determined by the investment adviser) from California issuers. The fund normally invests at least 80% of its net assets in municipal securities the interest from which is exempt from federal and California personal income tax and federal alternative minimum tax (AMT). The fund does not currently intend to invest in municipal securities whose interest is subject to the AMT; however, this would not prevent the fund from investing in such securities as a temporary defensive measure discussed below. The fund seeks to maintain an average maturity in its portfolio between three years and ten years.

Investment Management Team

Charles Schwab Investment Management, Inc. (CSIM) is the investment adviser for the Schwab Bond Funds. CSIM portfolio managers bring experience from a variety of backgrounds and seek to create quality bond funds designed to deliver current income and a cushion against potential stock volatility as part of a well diversified portfolio. CSIM portfolio managers are backed by a seasoned credit research team who perform checks on each portfolio's credit risks and help establish sector outlooks.

Schwab Tax-Free Bond Funds
Fund Name Ticker Net OER1 Min. Investment
Tax-Free Bond Fund SWNTX 0.49% $100
California Tax-Free Bond Fund SWCAX 0.49% $100
Cumulative Growth of a $10,000 Investment (pre-tax)
Growth of $10,000 Investment as of         
Fund
Category

Investment Management Team

Kenneth Salinger, CFA

Managing Director and Head of Tax Exempt Strategies
Full Bio>
 
Investment Management Bio

Kenneth Salinger, CFA

Managing Director and Head of Tax Exempt Strategies

Ken Salinger joined Schwab in March 2008 as a Managing Director and Portfolio Manager, leading the team responsible for daily trading and management of all national and state-specific tax-free bond funds. He is also responsible for overseeing the management of the Municipal Money Market Funds. Prior to joining Schwab, Ken was a Senior Portfolio Manager for Wells Capital Management, working on a team that managed over $5 billion in municipal bond assets. From 1992 until 2006, Ken worked at American Century, where he was a Vice President and Senior Portfolio Manager with responsibility for daily management of a number of national and state specific municipal bond funds. Ken holds a B.A. from the University of California at San Diego and has been a Chartered Financial Analyst since 1997.

 

John Shelton, CFA

Portfolio Manager
Full Bio>
 
Investment Management Bio

John Shelton, CFA

Portfolio Manager

John Shelton has day-to-day responsibility for the management of the Schwab Municipal Bond Funds. John joined the Municipal Portfolio Management team in August of 2000. Prior to joining the Portfolio Management Team, he was an associate in Schwab's management training program. John received a B.A. in Finance and a minor in Economics from Morehouse College. John is a member of the Association for Investment Management and Research, the California Society of Municipal Analysts and the Security Analysts of San Francisco and holds the CFA (Certified Financial Analyst) designation

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Contact Us

Call your Schwab Funds representative at 877-824-5615