Schwab to launch Treasury Obligations Money Fund

By Toni Weeks

San Diego, Jan. 17 - Schwab Funds announced in an N-1A filing with the Securities and Exchange Commission its plans to launch the Schwab Treasury Obligations Money Fund - Value Advantage Shares.

The fund will seek current income consistent with stability of capital and liquidity by investing typically in securities backed by the full faith and credit of the U.S. government and repurchase agreements backed by such investments.

Under normal conditions, the fund will invest at least 80% of its net assets in U.S. Treasury obligations and repurchase agreements. The fund may invest up to 20% of its net assets in obligations issued by the U.S. government but not guaranteed by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac and Federal Home Loan Banks, and in obligations issued by private issuers but guaranteed as to principal or interest by the U.S. government.

There will be no shareholder fees or management fees. Other fees and expenses have not yet been detailed.

The portfolio managers have not yet been selected.

The fund's investment adviser will be San Francisco-based Charles Schwab Investment Management, Inc.

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