<Dana Jones>
<ABC Corporation>
<100 Main Street>
<Anytown, AnyState Zip>
<USA>
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Questions?
Please contact your advisor,
or call Schwab Alliance
at 1-800-515-2157.
<Date>
Money Market Fund Reform changes will affect your eligibility
to invest in some money market funds.
The U.S. Securities and Exchange Commission (SEC) has made changes to the regulations that govern
money market funds. These new rules are intended to increase fund liquidity and to protect investors. The
changes include new restrictions related to who will be permitted to invest in “retail” money market funds,
which are non-government money market funds that are allowed to maintain a constant net asset value
(CNAV). As a result, beginning later this year Schwab Prime Money Market Funds and Municipal Money
Market Funds will be required to limit shareholders to natural persons (i.e., individuals, as opposed to
businesses, defined benefit plans, or endowments).
Currently, the cash sweep feature in the account(s) noted at the end of this letter is a retail prime or municipal
money market fund and the beneficial owner(s) of the account(s) is not a natural person(s). Accordingly,
Schwab will soon change your cash sweep feature to another feature for which your account(s) is eligible.
What this means for your account(s).
Between September and October 2016, Schwab will update the cash feature on your account(s) from the
current retail prime or municipal money market fund sweep to the Schwab Government Money Fund™. You
can read the fund’s prospectus by visiting csimfunds.com and searching with the fund’s trading symbol,
SWGXX, or by calling us to request a copy. You’ll receive a confirmation from us when your funds are
moved to the Schwab Government Money Fund for the first time, and the transactions will also appear on
your account statement(s).
Through the Cash Features Program, Schwab automatically places (sweeps) the uninvested cash, or “free
credit balance,” in your account(s) into a sweep vehicle until the free credit balance is invested by you
or is otherwise needed to satisfy obligations arising in connection with your account(s). We’ve enclosed
Schwab’s Cash Features Disclosure Statement for your review. Please keep this document for your records.
Although Schwab is changing your cash feature, all other brokerage account features and access will stay
the same (e.g., checkwriting, debit card[s], and BillPay).
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No action is required on your part.
If you are in agreement with this change in your cash feature, no response is required from you. Schwab
will consider a non-response to this notice to be your authorization and instruction to change your cash
feature.
However, if you do not wish to have your free credit balance invested in the Schwab Government Money
Fund™, you also have the choice of the Bank Sweep feature or Schwab One®Interest feature. (See the
enclosed Cash Features Disclosure Statement for more information.) Please note that you also have the
right to close your brokerage account(s) without penalty at any time.1
We’re here to help.
Although you don’t need to take any action regarding this change, we understand that you may have
questions. If you’d like more information about your cash management choices at Schwab or have
additional questions, please contact your independent investment advisor directly or call Schwab
Alliance at 1-800-515-2157.
Thank you for the opportunity to serve you.
Account number(s) ending in:
<XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>,
<XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>,
<XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>,
<XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>,
<XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>, <XXXX>,
1. If you wish to close your brokerage account(s), please contact your independent investment advisor or call Schwab Alliance
at 1-800-515-2157.
Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value
Investors should consider carefully information contained in the prospectus, including investment
objectives, risks, charges, and expenses. You can request a prospectus by calling 1-800-435-4000.
Please read the prospectus carefully before investing.
An investment in a money market fund is neither insured nor guaranteed by the FDIC or any other
government agency. Yields will fluctuate, and, although the fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing in the fund. Compared to the total
return, the seven-day yield more closely reflects the current earnings of the fund.
Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary funds, and Charles Schwab
& Co., Inc. (“Schwab”), the distributor for Schwab Funds®
, are separate but affiliated companies and subsidiaries of The Charles
Schwab Corporation.
Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.
©2016 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. CC0545913 (0316-DHY6) ALC91968C-00 (07/16)
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