0000950123-14-007427.txt : 20140725 0000950123-14-007427.hdr.sgml : 20140725 20140725130738 ACCESSION NUMBER: 0000950123-14-007427 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140531 FILED AS OF DATE: 20140725 DATE AS OF CHANGE: 20140725 EFFECTIVENESS DATE: 20140725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB INVESTMENTS CENTRAL INDEX KEY: 0000869365 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06200 FILM NUMBER: 14993580 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 1-800-648-5300 MAIL ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 0000869365 S000015878 Schwab Global Real Estate Fund C000043612 Schwab Global Real Estate Fund SWASX N-Q 1 f30236nvq.htm N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6200
Schwab Investments – Schwab Global Real Estate Fund
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Marie Chandoha
Schwab Investments
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: February 28
Date of reporting period: May 31, 2014
 
 
Item 1. Schedule of Investments.

 

 

Schwab Investments
Schwab Global Real Estate Fund™
 
Portfolio Holdings as of May 31, 2014 (Unaudited)
 
 
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  97 .0%   Common Stock     216,000,895       244,616,116  
  0 .8%   Short-Term Investments     2,000,110       2,000,110  
 
 
  97 .8%   Total Investments     218,001,005       246,616,226  
  2 .2%   Other Assets and Liabilities, Net             5,569,303  
 
 
  100 .0%   Net Assets             252,185,529  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 97.0% of net assets
 
Australia 5.4%
                 
 
Real Estate 5.4%
Abacus Property Group
    614,989       1,385,735  
Australand Property Group
    436,365       1,744,558  
CFS Retail Property Trust Group
    762,300       1,456,133  
Federation Centres Ltd.
    1,125,800       2,643,529  
GPT Group
    524,496       1,905,003  
Westfield Group
    171,224       1,707,494  
Westfield Retail Trust
    909,041       2,701,578  
                 
              13,544,030  
 
Austria 1.6%
                 
 
Real Estate 1.6%
Conwert Immobilien Invest SE *
    29,900       367,198  
IMMOFINANZ AG *
    1,024,200       3,641,128  
                 
              4,008,326  
 
Brazil 1.9%
                 
 
Consumer Durables & Apparel 0.4%
Gafisa S.A.
    256,700       378,123  
MRV Engenharia e Participacoes S.A.
    204,900       628,337  
                 
              1,006,460  
                 
 
Real Estate 1.5%
BR Properties S.A.
    489,600       3,911,905  
                 
              4,918,365  
 
Canada 2.7%
                 
 
Real Estate 2.7%
Boardwalk Real Estate Investment Trust
    9,979       591,028  
Calloway Real Estate Investment Trust
    9,200       227,815  
Canadian Apartment Properties Real Estate Investment Trust
    118,614       2,441,635  
Cominar Real Estate Investment Trust
    94,900       1,648,037  
Morguard Real Estate Investment Trust
    21,300       337,091  
RioCan Real Estate Investment Trust
    58,100       1,464,422  
                 
              6,710,028  
 
China 2.5%
                 
 
Real Estate 2.5%
Agile Property Holdings Ltd.
    366,900       284,430  
Beijing Capital Land Ltd., Class H
    2,513,300       834,435  
Guangzhou R&F Properties Co., Ltd., Class H
    933,400       1,287,306  
SOHO China Ltd.
    4,722,600       3,711,878  
Sunac China Holdings Ltd.
    374,700       193,786  
                 
              6,311,835  
 
France 2.2%
                 
 
Real Estate 2.2%
Fonciere des Regions
    19,000       1,901,824  
Unibail-Rodamco SE
    13,437       3,757,653  
                 
              5,659,477  
 
Germany 3.5%
                 
 
Real Estate 3.5%
Alstria Office REIT AG *
    155,639       2,085,102  
Deutsche Euroshop AG
    47,800       2,379,931  
DIC Asset AG
    155,600       1,669,565  
Patrizia Immobilien AG *
    47,800       605,973  
TAG Immobilien AG
    164,900       2,070,924  
                 
              8,811,495  
 
Hong Kong 5.9%
                 
 
Real Estate 5.9%
China Overseas Land & Investment Ltd.
    406,200       1,061,175  
China Resources Land Ltd.
    332,700       674,947  
Franshion Properties China Ltd.
    1,598,000       478,915  
Hysan Development Co., Ltd.
    549,100       2,692,408  
Shimao Property Holdings Ltd.
    398,300       804,860  
Sun Hung Kai Properties Ltd.
    363,900       4,985,404  
Swire Properties Ltd.
    860,700       2,691,238  
The Link REIT
    277,900       1,483,951  
                 
              14,872,898  
 
 
 
 1

 

 
 Schwab Global Real Estate Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
Indonesia 0.7%
                 
 
Real Estate 0.7%
PT Pakuwon Jati Tbk
    41,604,000       1,457,757  
PT Summarecon Agung Tbk
    2,385,000       256,917  
                 
              1,714,674  
 
Israel 0.8%
                 
 
Real Estate 0.8%
Azrieli Group
    59,006       1,918,238  
 
Japan 11.2%
                 
 
Real Estate 11.2%
Aeon Mall Co., Ltd.
    18,830       475,576  
Daiwa House Industry Co., Ltd.
    84,300       1,584,579  
Global One Real Estate Investment Corp.
    400       1,213,838  
Goldcrest Co., Ltd.
    74,600       1,531,950  
Hankyu REIT, Inc.
    283       1,531,631  
Japan Hotel REIT Investment Corp.
    4,343       2,028,723  
Japan Logistics Fund, Inc.
    1,045       2,337,945  
MID REIT, Inc.
    300       686,952  
Mitsubishi Estate Co., Ltd.
    262,321       6,406,989  
Mitsui Fudosan Co., Ltd.
    202,500       6,450,303  
Orix J-REIT, Inc.
    1,300       1,739,846  
Sumitomo Realty & Development Co., Ltd.
    33,500       1,446,904  
Top REIT, Inc.
    200       923,000  
                 
              28,358,236  
 
Netherlands 1.0%
                 
 
Real Estate 1.0%
Corio N.V.
    13,500       675,645  
Eurocommercial Properties N.V.
    37,100       1,788,126  
                 
              2,463,771  
 
Philippines 1.3%
                 
 
Real Estate 1.3%
Ayala Land, Inc.
    184,800       127,223  
Megaworld Corp.
    30,008,300       3,233,118  
                 
              3,360,341  
 
Singapore 3.7%
                 
 
Real Estate 3.7%
CapitaCommercial Trust
    1,889,000       2,546,490  
CapitaLand Ltd.
    505,000       1,285,896  
CDL Hospitality Trusts
    1,055,200       1,461,501  
UOL Group Ltd.
    451,400       2,376,786  
Wing Tai Holdings Ltd.
    641,400       997,740  
Yanlord Land Group Ltd.
    722,000       674,313  
                 
              9,342,726  
 
South Africa 0.2%
                 
 
Real Estate 0.2%
SA Corporate Real Estate Fund Nominees Pty Ltd.
    1,157,811       447,435  
 
Sweden 0.8%
                 
 
Real Estate 0.8%
Hufvudstaden AB, A Shares
    131,754       1,901,839  
 
Thailand 0.3%
                 
 
Real Estate 0.3%
Central Pattana PCL
    603,400       867,340  
 
Turkey 0.7%
                 
 
Real Estate 0.7%
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S
    1,256,999       1,602,522  
Is Gayrimenkul Yatirim Ortakligi A/S
    448,970       273,949  
                 
              1,876,471  
 
United Arab Emirates 1.3%
                 
 
Real Estate 1.3%
Emaar Properties PJSC
    1,118,220       3,190,148  
 
United Kingdom 6.0%
                 
 
Consumer Durables & Apparel 0.8%
Barratt Developments plc
    341,300       2,045,688  
                 
 
Consumer Services 0.2%
Millennium & Copthorne Hotels plc
    44,259       425,142  
                 
 
Real Estate 5.0%
British Land Co., plc
    138,840       1,665,931  
Grainger plc
    350,300       1,275,706  
Intu Properties plc
    99,400       525,178  
Land Securities Group plc
    409,102       7,333,286  
Safestore Holdings plc
    348,700       1,208,434  
Segro plc
    103,256       640,205  
                 
              12,648,740  
                 
              15,119,570  
 
United States 43.3%
                 
 
Real Estate 43.3%
American Assets Trust, Inc.
    90,900       3,117,870  
Aviv REIT, Inc.
    7,800       216,450  
BioMed Realty Trust, Inc.
    191,100       4,146,870  
Boston Properties, Inc.
    12,951       1,562,927  
Chambers Street Properties
    399,800       3,198,400  
Chesapeake Lodging Trust
    96,400       2,811,988  
DDR Corp.
    59,000       1,021,290  
Duke Realty Corp.
    117,680       2,082,936  
DuPont Fabros Technology, Inc.
    26,000       664,820  
Empire State Realty Trust, Inc., Class A
    83,800       1,373,482  
 
 
 
2 

 

 
 Schwab Global Real Estate Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
EPR Properties
    39,900       2,151,408  
Equity Lifestyle Properties, Inc.
    41,600       1,819,584  
Equity Residential
    107,300       6,631,140  
Essex Property Trust, Inc.
    14,866       2,690,151  
Excel Trust, Inc.
    183,800       2,426,160  
Extra Space Storage, Inc.
    57,100       2,989,185  
First Industrial Realty Trust, Inc.
    213,100       3,950,874  
General Growth Properties, Inc.
    52,100       1,241,543  
HCP, Inc.
    120,848       5,045,404  
Home Properties, Inc.
    27,800       1,728,604  
Host Hotels & Resorts, Inc.
    286,253       6,317,604  
Kimco Realty Corp.
    57,200       1,311,024  
Mack-Cali Realty Corp.
    70,300       1,529,025  
Prologis, Inc.
    19,671       816,543  
Public Storage
    12,600       2,171,988  
Retail Properties of America, Inc., Class A
    42,100       633,184  
Select Income REIT
    129,900       3,732,027  
Senior Housing Properties Trust
    19,400       465,212  
Simon Property Group, Inc.
    69,581       11,582,453  
SL Green Realty Corp.
    62,800       6,875,972  
Sovran Self Storage, Inc.
    3,500       268,800  
Taubman Centers, Inc.
    12,600       943,740  
The Macerich Co.
    60,400       3,988,816  
UDR, Inc.
    140,503       3,866,642  
Ventas, Inc.
    116,767       7,800,036  
Vornado Realty Trust
    20,122       2,154,664  
Washington Prime Group, Inc. *
    34,791       691,983  
Weingarten Realty Investors
    100,600       3,198,074  
                 
              109,218,873  
                 
Total Common Stock
(Cost $216,000,895)     244,616,116  
         
                 
                 
Security
 		  Face Amount
 		  Value
    Rate, Maturity Date   Local Currency   ($)
 
 Short-Term Investments 0.8% of net assets
 
Time Deposit 0.8%
DNB
0.03%, 06/02/14
    1,920,112       1,920,112  
 
U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.05%, 06/19/14 (a)(b)
    80,000       79,998  
                 
Total Short-Term Investments
(Cost $2,000,110)     2,000,110  
         
 
End of Investments.
 
At 05/31/14, the tax basis cost of the fund’s investments was $218,980,602 and the unrealized appreciation and depreciation were $32,393,191 and ($4,757,567), respectively, with a net unrealized appreciation of $27,635,624.
 
As of 05/31/14, the values of certain foreign securities held by the fund aggregating $116,386,751 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees.
 
* Non-income producing security.
(a) The rate shown is the purchase yield.
(b) All or a portion of this security is held as collateral for open futures contracts.
 
     
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 05/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
S&P 500 Index, e-mini, Long, expires 06/20/14
    62       5,956,650       18,669  
 
 
Under procedures approved by the fund’s Board of Trustees (the “Board”), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
 
The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:
 
  •  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
 
 
 
 3

 

 
 Schwab Global Real Estate Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  •  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.
 
  •  Foreign equity security fair valuation: The Board has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of the fund’s portfolio holdings and the Net Asset Value (“NAV”) of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of the fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the fund pursuant to these procedures.
 
  •  Futures contracts (“futures”) and forward foreign currency exchange contracts (“forwards”): Futures are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.
 
  •  Short-term securities (60 days or less to maturity): Short-term securities are valued at amortized cost, which approximates market value.
 
  •  Underlying funds: Mutual funds are valued at their respective NAVs.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America (GAAP), the fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
 
The three levels of the fair value hierarchy are as follows:
 
  •  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the funds
 
 
 
4 

 

 
 Schwab Global Real Estate Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
 
 
 5

 

 
 Schwab Global Real Estate Fund
 

 
Portfolio Holdings (Unaudited) continued
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of May 31, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $121,294,701       $—       $—       $121,294,701  
Australia1
    —       13,544,030       —       13,544,030  
Austria
                               
Real Estate
    3,641,128       367,198       —       4,008,326  
China1
    —       6,311,835       —       6,311,835  
France1
    —       5,659,477       —       5,659,477  
Germany
                               
Real Estate
    2,085,102       6,726,393       —       8,811,495  
Hong Kong1
    —       14,872,898       —       14,872,898  
Indonesia1
    —       1,714,674       —       1,714,674  
Israel1
    —       1,918,238       —       1,918,238  
Japan1
    —       28,358,236       —       28,358,236  
Netherlands1
    —       2,463,771       —       2,463,771  
Philippines1
    —       3,360,341       —       3,360,341  
Singapore1
    —       9,342,726       —       9,342,726  
Sweden1
    —       1,901,839       —       1,901,839  
Thailand1
    —       867,340       —       867,340  
Turkey1
    —       1,876,471       —       1,876,471  
United Arab Emirates1
    —       3,190,148       —       3,190,148  
United Kingdom
                               
Consumer Durables & Apparel
    —       2,045,688       —       2,045,688  
Consumer Services
    —       425,142       —       425,142  
Real Estate
    1,208,434       11,440,306       —       12,648,740  
Short-Term Investments1
    —       2,000,110       —       2,000,110  
                                 
Total
    $128,229,365       $118,386,861       $—       $246,616,226  
                                 
Other Financial Instruments
                               
Futures Contracts2
    $18,669       $—       $—       $18,669  
 
     
1
  As categorized in portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers in the amount of $2,188,895 from Level 1 to Level 2 and $7,218,759 from Level 2 to Level 1 for the period ended May 31, 2014. The transfers between Level 1 and Level 2 were primarily due to the use of international fair valuation by the fund. There were no transfers in or out of Level 3 securities during the period.
 
REG406025MAY14
 
 
 
6 

 

Item 2. Controls and Procedures.
(a)   Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
 
(b)   During Registrant’s last fiscal quarter, there have been no changes in Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.
Item 3. Exhibits.
Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Investments
         
  By:   /s/ Marie Chandoha    
    Marie Chandoha   
    Chief Executive Officer   
Date: July 22, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
  By:   /s/ Marie Chandoha    
    Marie Chandoha   
    Chief Executive Officer   
Date: July 22, 2014
         
  By:   /s/ George Pereira    
    George Pereira   
    Principal Financial Officer   
Date: July 22, 2014

 

EX-99.CERT 2 f30236exv99wcert.htm EX-99.CERT exv99wcert
CERTIFICATIONS
I, Marie Chandoha, certify that:
1.   I have reviewed this report on Form N-Q for the following series of Schwab Investments: Schwab Global Real Estate Fund;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
Date: July 22, 2014
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  President and Chief Executive Officer    

 

 

CERTIFICATIONS
I, George Pereira, certify that:
1.   I have reviewed this report on Form N-Q for the following series of Schwab Investments: Schwab Global Real Estate Fund;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
Date: July 22, 2014
  /s/ George Pereira
 
George Pereira 		   
 
  Treasurer and Principal Financial Officer