Exhibit (d)(xvii)
January 16, 2004
Xxxxxxx X. Xxxx,
President and Chief Executive Officer,
Schwab Capital Trust and Schwab Investments
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Funds of Schwab Capital Trust and Schwab 1000 Fund
Dear Xx. Xxxx:
This letter will confirm our agreement to limit net operating expenses of the
following funds, as noted in the table below and described in the funds'
registration statements filed with the Securities and Exchange Commission.
FUND NET GUARANTEED
OPERATING THROUGH:
EXPENSE LIMIT
SCHWAB MARKETTRACK 50 bps 2/28/05
PORTFOLIOS
SCHWAB U.S. MARKETMASTERS FUND 125 bps 2/28/05
SCHWAB BALANCED MARKETMASTERS 110 bps 2/28/05
FUND
SCHWAB SMALL-CAP MARKETMASTERS 155 bps 2/28/05
FUND
SCHWAB INTERNATIONAL 165 bps 2/28/05
MARKETMASTERS FUND
SCHWAB CORE EQUITY FUND 75 bps 2/28/05
SCHWAB S&P 500 FUND - 37 bps 2/28/05
INVESTOR SHARES
SCHWAB S&P 500 FUND - 19 bps 2/28/05
SELECT SHARES
SCHWAB S&P 500 FUND - 28 bps 2/28/05
E.SHARES
SCHWAB S&P 500 FUND - 28 bps 2/28/05
E.SHARES
SCHWAB 1000 FUND - 51 bps 2/28/05
INVESTOR SHARES
SCHWAB 1000 FUND - 36 bps 2/28/05
SELECT SHARES
SCHWAB SMALL-CAP 60 bps 2/28/05
INDEX FUND- INVESTOR SHARES
SCHWAB SMALL-CAP 42 bps 2/28/05
INDEX FUND- SELECT SHARES
SCHWAB TOTAL STOCK MARKET INDEX 58 bps 2/28/05
FUND- INVESTOR SHARES
SCHWAB TOTAL STOCK MARKET INDEX 39 bps 2/28/05
FUND- SELECT SHARES
SCHWAB INTERNATIONAL 69 bps 2/28/05
INDEX FUND- INVESTOR SHARES
SCHWAB INTERNATIONAL - 50 bps 2/28/05
INDEX FUND- SELECT SHARES
SCHWAB HEDGED EQUITY FUND 200 bps 2/28/05
SCHWAB FOCUS FUNDS 110 bps 2/28/05
INSTITUTIONAL SELECT 15 bps 2/28/05
S&P 500 FUND
INSTITUTIONAL SELECT 25 bps 2/28/05
LARGE-CAP VALUE INDEX FUND
INSTITUTIONAL SELECT 32 bps 2/28/05
SMALL-CAP VALUE INDEX FUND
SCHWAB SMALL-CAP EQUITY FUND- 130 bps 2/28/05
INVESTORS SHARES
SCHWAB SMALL-CAP EQUITY FUND- 112 bps 2/28/05
SELECT SHARES
SCHWAB DIVIDEND EQUITY FUND- 0 bps 5/3/04
INVESTORS SHARES 110 bps 5/4/04-2/28/05
SCHWAB DIVIDEND EQUITY FUND- 0 bps 5/3/04
SELECT SHARES 95 bps 5/4/04- 2/28/05
Sincerely,
----------------------------- -------------------------------------------
Xxxxxxx X. Xxxx, Xxxxxx Xxxxxxxx,
Senior Vice President and Senior Vice President, AMPS Development and
Chief Investment Officer, Distribution Xxxxxxx Xxxxxx & Co., Inc.
Xxxxxxx Xxxxxx Investment
Management, Inc.
cc:
Xxxxxxx Xxxxxxx-Xxxxxx
Xxxx Xxxxxx
Xxxxxx Xxxxxxxxx
Xxxxxx Xxxxxxxxx
Xxxxxxx Xxxxxxx
Xxxxxxxxx Xxxxxxx
Xxx-Xxxx Xxxx
Xxxxxxx Hand
Xxx-Xxx Xxx
