EX-99.(D)(XVI) 4 f38122ctexv99wxdyxxviy.txt EXHIBIT 99.(D)(XVI) February 22, 2008 Exhibit (d)(xvi) Randall W. Merk, President and Chief Executive Officer, Schwab Capital Trust Schwab Investments 101 Montgomery Street San Francisco, CA 94104 Re: Funds of Schwab Capital Trust and Schwab 1000 Fund Dear Mr. Merk: 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: SCHWAB MARKETTRACK ALL EQUITY 50 bps 2/27/09 PORTFOLIO -- INVESTOR SHARES SCHWAB MARKETTRACK CONSERVATIVE 50 bps 2/27/09 PORTFOLIO -- INVESTOR SHARES SCHWAB MARKETTRACK BALANCED 50 bps 2/27/09 PORTFOLIO -- INVESTOR SHARES SCHWAB MARKETTRACK GROWTH 50 bps 2/27/09 PORTFOLIO -- INVESTOR SHARES SCHWAB MARKETTRACK CONSERVATIVE 35 bps 2/27/09 PORTFOLIO -- P SHARES SCHWAB 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/ George Pereira /s/ Pamela Saunders ------------------ ------------------- George Pereira Pamela Saunders, Chief Financial Officer, Charles Schwab Vice President, Proprietary Funds Investment Management, Inc. Charles Schwab & Co., Inc. cc: Jody Stuart Shelley Harding Michael Bonardi Yi-Ching Wu Jonathan De St Paer Bessie Mitskaris George Pereira Gregory J. Hand Zuogang Gao James Pierce Anna Loh Mini Jande Donna Passaglia