As always, HKFS remains committed to keeping our clients up to date on important information that affects our funds. In the coming weeks, shareholders of Schwab and Laudus funds will be receiving proxy packages asking for the election of nine trustees to serve on the combined board of trustees for these funds. We believe that this change will benefit shareholders by consolidating board oversight of all Schwab and Laudus Funds for more efficient oversight.

Shareholders will be notified of the election via email or hard copy mail. Shareholders must submit their votes by 11:59 pm Eastern on December 13, 2009. The Special Meeting of Shareholders will be held on December 14, 2009 at 8:30 am Pacific Time.

We encourage you to vote on the Schwab and Laudus Funds.  No matter how many shares you own, your voice is important. All votes should be received before the special shareholder meeting in December.

To learn more about this important proxy package and to review the proxy statement, please visit www.schwabfunds.com or www.laudusfunds.com.