February 22, 2008 Exhibit (d)(xvi)
Xxxxxxx X. Xxxx,
President and Chief Executive Officer,
Schwab Capital Trust
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.
NET OPERATING GUARANTEED
FUND EXPENSE LIMIT THROUGH:
XXXXXX MARKETTRACK ALL EQUITY 50 bps 2/27/09
PORTFOLIO -- INVESTOR SHARES
XXXXXX MARKETTRACK CONSERVATIVE 50 bps 2/27/09
PORTFOLIO -- INVESTOR SHARES
XXXXXX MARKETTRACK BALANCED 50 bps 2/27/09
PORTFOLIO -- INVESTOR SHARES
XXXXXX MARKETTRACK GROWTH 50 bps 2/27/09
PORTFOLIO -- INVESTOR SHARES
XXXXXX MARKETTRACK CONSERVATIVE 35 bps 2/27/09
PORTFOLIO -- P SHARES
XXXXXX MARKETTRACK GROWTH 35 bps 2/27/09
PORTFOLIO -- P SHARES
LAUDUS U.S. MARKETMASTERS 125 bps 2/27/09
FUND- INVESTOR SHARES
LAUDUS U.S. MARKETMASTERS 107 bps 2/27/09
FUND- SELECT SHARES
LAUDUS SMALL-CAP MARKETMASTERS 155 bps 2/27/09
FUND- INVESTOR SHARES
LAUDUS SMALL-CAP MARKETMASTERS 137 bps 2/27/09
FUND -- SELECT SHARES
LAUDUS INTERNATIONAL MARKETMASTERS 165 bps 2/27/09
FUND -- INVESTOR SHARES
LAUDUS INTERNATIONAL MARKETMASTERS 147 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB LARGE-CAP GROWTH 120 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB LARGE-CAP GROWTH 99 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB CORE EQUITY FUND 75 bps 2/27/09
SCHWAB S&P 500 INDEX 37 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB S&P 500 INDEX 19 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB S&P 500 INDEX 28 bps 2/27/09
FUND -- E.SHARES
SCHWAB 1000 INDEX 51 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB 1000 INDEX 36 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB SMALL-CAP INDEX 60 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB SMALL-CAP INDEX 42 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB TOTAL STOCK MARKET INDEX 58 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB TOTAL STOCK MARKET INDEX 39 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB INTERNATIONAL INDEX 69 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB INTERNATIONAL -INDEX 50 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB DIVIDEND EQUITY 110 bps 2/27/09
FUND -- INVESTORS SHARES
SCHWAB DIVIDEND EQUITY 95 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB SMALL-CAP EQUITY 130 bps 2/27/09
FUND -- INVESTORSSHARES
SCHWAB SMALL-CAP EQUITY 112 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB HEDGED EQUITY 200 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB HEDGED EQUITY 177 bps 2/27/09
FUND- SELECT SHARES
SCHWAB FINANCIAL SERVICES FUND 110 bps 2/27/09
SCHWAB HEALTH CARE FUND 110 bps 2/27/09
SCHWAB INSTITUTIONAL SELECT S&P 500 FUND 10 bps 2/27/09
SCHWAB PREMIER EQUITY 130 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB PREMIER EQUITY 115 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB BALANCED FUND (FORMERLY, SCHWAB 0 bps 2/27/09
VIEWPOINTS FUND, LAUDUS BALANCED
MARKETMASTERS FUND- INVESTOR SHARES)
SCHWAB TARGET 2010 FUND 6 bps 2/27/09
SCHWAB TARGET 2015 FUND 5 bps 2/27/09
SCHWAB TARGET 2020 FUND 4 bps 2/27/09
SCHWAB TARGET 2025 FUND 4 bps 2/27/09
SCHWAB TARGET 2030 FUND 3 bps 2/27/09
SCHWAB TARGET 2035 FUND 2 bps 2/27/09
SCHWAB TARGET 2040 FUND 1 bps 2/27/09
SCHWAB RETIREMENT INCOME FUND 10 bps 2/27/09
SCHWAB FUNDAMENTAL US LARGE COMPANY INDEX 59 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL US LARGE COMPANY INDEX 44 bps 2/27/09
FUND -- SELECT SHARES
SCHWAB FUNDAMENTAL US LARGE COMPANY INDEX 35 bps 2/27/09
FUND -- INSTITUTIONAL SHARES
SCHWAB FUNDAMENTAL US SMALL-MID COMPANY 59 bps 2/27/09
INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL US SMALL-MID COMPANY 44 bps 2/27/09
INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL US SMALL-MID COMPANY 35 bps 2/27/09
INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL LARGE 59 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL LARGE 44 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL LARGE 35 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL SMALL-MID 79 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL SMALL-MID 64 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL INTERNATIONAL SMALL-MID 55 bps 2/27/09
COMPANY INDEX FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL EMERGING MARKETS INDEX 84 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL EMERGING MARKETS INDEX 69 bps 2/27/09
FUND -- INVESTOR SHARES
SCHWAB FUNDAMENTAL EMERGING MARKETS INDEX 60 bps 2/27/09
FUND -- INVESTOR SHARES
Sincerely,
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxx Xxxxxxxx
------------------ -------------------
Xxxxxx Xxxxxxx Xxxxxx Xxxxxxxx,
Chief Financial Xxxxxxx, Xxxxxxx Xxxxxx Vice President, Proprietary Funds
Investment Management, Inc. Xxxxxxx Xxxxxx & Co., Inc.
cc:
Xxxx Xxxxxx
Xxxxxxx Xxxxxxx
Xxxxxxx Xxxxxxx
Xx-Xxxxx Xx
Xxxxxxxx De St Paer
Xxxxxx Xxxxxxxxx
Xxxxxx Xxxxxxx
Xxxxxxx X. Hand
Zuogang Xxx
Xxxxx Xxxxxx
Xxxx Xxx
Mini Jande
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