Schwab launches Treasury Obligations Money Fund with two share classes

By Toni Weeks

San Diego, April 9 - Schwab Funds announced in an N-1A filing with the Securities and Exchange Commission it has launched the Schwab Treasury Obligations Money Fund.

The fund has launched with value advantage shares and sweep shares, which trade under the symbols SNOXX and SNTXX, respectively.

The fund seeks 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 invests 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 are no shareholder fees. Management fees are 0.34% for both share classes. Including other expenses and a fee waiver agreement with the adviser, total annual fund operating expenses will be limited to 0.45% for value advantage shares and 0.65% for sweep shares.

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

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