Exhibit (d)(xvii)
February 25, 2005
Xxxxxx Xxxxxxxx,
President and Chief Executive Officer,
Schwab Capital Trust
000 Xxxxxxxxxx Xxxxxx
San Francisco, CA 94104
Re: Funds of Schwab Capital Trust and Schwab 1000 Fund
Dear Xx. Xxxxxxxx:
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 OPERATING GUARANTEED THROUGH:
EXPENSE LIMIT
SCHWAB MARKETTRACK PORTFOLIOS 50 bps 2/27/06
LAUDUS U.S. MARKETMASTERS FUND- INVESTOR 125 bps 2/28/06
SHARES
LAUDUS U.S. MARKETMASTERS FUND- SELECT 107 bps 2/28/06
SHARES
LAUDUS BALANCED MARKETMASTERS FUND- 110 bps 2/28/06
INVESTOR SHARES
LAUDUS BALANCED MARKETMASTERS FUND SELECT 95 bps 2/28/06
SHARES
LAUDUS SMALL-CAP MARKETMASTERS FUND- 155 bps 2/28/06
INVESTOR SHARES
LAUDUS SMALL-CAP MARKETMASTERS FUND- SELECT 137 bps 2/28/06
SHARES
LAUDUS INTERNATIONAL MARKETMASTERS FUND- 165 bps 2/28/06
INVESTOR SHARES
FUND NET OPERATING GUARANTEED THROUGH:
EXPENSE LIMIT
LAUDUS INTERNATIONAL MARKETMASTERS FUND- 147 bps 2/28/06
SELECT SHARES
SCHWAB CORE EQUITY FUND 75 bps 2/27/06
SCHWAB S&P 500 INDEX FUND - INVESTOR SHARES 37 bps 2/27/06
SCHWAB S&P 500 INDEX FUND - SELECT SHARES 19 bps 2/27/06
SCHWAB S&P 500 INDEX FUND - E.SHARES 28 bps 2/27/06
SCHWAB 1000 INDEX FUND - INVESTOR SHARES 51 bps 2/27/06
SCHWAB 1000 INDEX FUND - SELECT SHARES 36 bps 2/27/06
SCHWAB SMALL-CAP INDEX FUND- INVESTOR SHARES 60 bps 2/27/06
SCHWAB SMALL-CAP INDEX FUND- SELECT SHARES 42 bps 2/27/06
XXXXXX TOTAL STOCK MARKET INDEX FUND- 58 bps 2/27/06
INVESTOR SHARES
XXXXXX TOTAL STOCK MARKET INDEX FUND- 39 bps 2/27/06
SELECT SHARES
SCHWAB INTERNATIONAL INDEX FUND- INVESTOR 69 bps 2/27/06
SHARES
SCHWAB INTERNATIONAL -INDEX FUND- SELECT 50 bps 2/27/06
SHARES
SCHWAB DIVIDEND EQUITY FUND- INVESTORS 110 bps 2/27/06
SHARES
SCHWAB DIVIDEND EQUITY FUND- SELECT SHARES 95 bps 2/27/06
SCHWAB SMALL-CAP EQUITY FUND- INVESTORS 130 bps 2/27/06
SHARES
FUND NET OPERATING GUARANTEED THROUGH:
EXPENSE LIMIT
SCHWAB SMALL-CAP EQUITY FUND- SELECT SHARES 112 bps 2/27/06
SCHWAB HEDGED EQUITY FUND- INVESTOR SHARES 200 bps 2/27/06
SCHWAB HEDGED EQUITY FUND- SELECT SHARES 177 bps 2/27/06
SCHWAB FINANCIAL SERVICES FUND 110 bps 2/27/06
SCHWAB HEALTH CARE FUND 110 bps 2/27/06
SCHWAB TECHNOLOGY FUND 110 bps 2/27/06
SCHWAB INSTITUTIONAL SELECT S&P 500 FUND 10 bps 2/27/06
SCHWAB INSTITUTIONAL SELECT LARGE-CAP VALUE 25 bps 2/27/06
INDEX FUND
SCHWAB INSTITUTIONAL SELECT SMALL-CAP VALUE 32 bps 2/27/06
INDEX FUND
SCHWAB PREMIER EQUITY FUND - INVESTOR SHARES 130 bps 2/27/06
SCHWAB PREMIER EQUITY FUND - SELECT SHARES 115 bps 2/27/06
Sincerely,
----------------------------------------- ----------------------------------
Xxxxxxx X. Xxxx Xxxxxx Xxxxxxxx,
Senior Vice President and Vice President, Proprietary Funds
Chief Investment Xxxxxxx, Xxxxxxx Xxxxxx & Co., Inc.
Xxxxxxx Xxxxxx Investment Management, Inc.
cc:
Xxxx Xxxxxx
Xxxxxxx Xxxxxxx-Xxxxxx
Xxxxxxx Xxxxxxx
Xxxxxx Xxxxxxxxx
Xxxxxxxxx Xxxxxxx
Xxxxxx Xxxxxxx
Xxx-Xxx Xxx
Xxxxxxx X. Hand
