UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08314
Schwab Annuity Portfolios
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Jonathan de St. Paer
Schwab Annuity Portfolios
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: December 31
Date of reporting period: June 30, 2023
Item 1: Report(s) to Shareholders.
Linda Klingman, Managing Director and Head of Money Market Strategies for Schwab Asset Management, leads the portfolio management teams for taxable and tax-exempt Schwab Money Funds and has overall responsibility for all aspects of the management of the fund. Prior to joining Schwab in 1990, she was a senior money market trader with AIM Management, Inc. She has managed money market funds since 1988. |
Lynn Paschen, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2011, Ms. Paschen held a number of positions at American Century Investments. She was most recently a portfolio manager and, from 2000 to 2003, worked as a fixed-income trader. She has managed money market funds since 2003. |
Nicole Perret-Gentil, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2016, Ms. Perret-Gentil worked at Freddie Mac for 15 years, most recently as a senior portfolio manager where she managed and executed trades for a fixed-income strategy. Prior to that role, she served as a portfolio manager performing fixed-income analysis, a senior research analyst for investor and dealer relations, a senior securities operations analyst in loan and securities operations, and a lead mortgage securities operations specialist. She also worked at Merrill Lynch for a year as a senior specialist in fixed-income global banking and investments. |
Weighted Average Maturity2 | 20 Days |
Schwab Government Money Market Portfolio | |
Ticker Symbol | SWPXX |
Seven-Day Yield (with waivers)2 | 4.86% |
Seven-Day Yield (without waivers)2 | 4.86% |
Seven-Day Effective Yield (with waivers)2 | 4.97% |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/23 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/23 2 | |
Schwab Government Money Market Portfolio | ||||
Actual Return | 0.26% | $1,000.00 | $1,022.40 | $1.30 |
Hypothetical 5% Return | 0.26% | $1,000.00 | $1,023.51 | $1.30 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.02 | 0.01 | 0.00 2 | 0.00 2 | 0.02 | 0.02 |
Net realized and unrealized gains (losses) | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | (0.00 )2 |
Total from investment operations | 0.02 | 0.01 | 0.00 2 | 0.00 2 | 0.02 | 0.02 |
Less distributions: | ||||||
Distributions from net investment income | (0.02 ) | (0.01 ) | (0.00 )2,3 | (0.00 )2 | (0.02 ) | (0.02 ) |
Distributions from net realized gains | (0.00 )2 | — | — | — | — | — |
Total distributions | (0.02 ) | (0.01 ) | (0.00 )2 | (0.00 )2 | (0.02 ) | (0.02 ) |
Net asset value at end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 2.24 %4 | 1.43 % | 0.06 %3 | 0.28 % | 1.91 % | 1.52 % |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.26 %5 | 0.23 %6,7 | 0.06 %6 | 0.26 %8,9 | 0.35 % | 0.35 % |
Gross operating expenses | 0.26 %5 | 0.26 %7 | 0.27 % | 0.41 % | 0.47 % | 0.48 % |
Net investment income (loss) | 4.47 %5 | 1.49 % | 0.06 % | 0.25 % | 1.88 % | 1.55 % |
Net assets, end of period (x 1,000) | $223,469 | $223,154 | $184,916 | $185,074 | $148,853 | $138,275 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Per-share amount was less than $0.005. |
3 | These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.05%. |
4 | Not annualized. |
5 | Annualized. |
6 | Reflects the effect of a voluntary yield waiver. |
7 | Ratio includes less than 0.005% of non-routine proxy expenses. |
8 | Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio. |
9 | Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
U.S. GOVERNMENT AGENCY DEBT 24.0% OF NET ASSETS | ||||||
FEDERAL FARM CREDIT BANKS FUNDING CORP | ||||||
(3 mo. US TBILL + 0.03%) | (a) | 5.27% | 07/05/23 | 07/13/23 | 300,000 | 300,000 |
(EFFR - 0.01%) | (a) | 5.06% | 07/03/23 | 07/21/23 | 900,000 | 900,000 |
(SOFR + 0.03%) | (a) | 5.09% | 07/03/23 | 08/28/23 | 300,000 | 300,000 |
4.88% | 09/25/23 | 600,000 | 599,997 | |||
(SOFR + 0.06%) | (a) | 5.12% | 07/03/23 | 11/07/23 | 200,000 | 200,000 |
(SOFR + 0.04%) | (a) | 5.10% | 07/03/23 | 11/28/23 | 500,000 | 500,000 |
(EFFR + 0.03%) | (a) | 5.10% | 07/03/23 | 12/08/23 | 100,000 | 100,000 |
(SOFR + 0.12%) | (a) | 5.18% | 07/03/23 | 12/08/23 | 300,000 | 300,079 |
(SOFR + 0.06%) | (a) | 5.12% | 07/03/23 | 12/13/23 | 200,000 | 200,000 |
(SOFR + 0.08%) | (a) | 5.14% | 07/03/23 | 04/26/24 | 300,000 | 300,000 |
(EFFR + 0.06%) | (a) | 5.13% | 07/03/23 | 06/24/24 | 300,000 | 300,000 |
(SOFR + 0.09%) | (a) | 5.15% | 07/03/23 | 07/01/24 | 500,000 | 500,000 |
(SOFR + 0.08%) | (a) | 5.14% | 07/03/23 | 07/22/24 | 300,000 | 299,901 |
(SOFR + 0.10%) | (a) | 5.16% | 07/03/23 | 08/08/24 | 100,000 | 100,000 |
(EFFR + 0.08%) | (a) | 5.15% | 07/03/23 | 08/12/24 | 400,000 | 400,042 |
(SOFR + 0.18%) | (a) | 5.24% | 07/03/23 | 10/16/24 | 800,000 | 800,217 |
(SOFR + 0.13%) | (a) | 5.19% | 07/03/23 | 11/01/24 | 700,000 | 700,000 |
(SOFR + 0.14%) | (a) | 5.20% | 07/03/23 | 11/07/24 | 300,000 | 300,000 |
(SOFR + 0.11%) | (a) | 5.17% | 07/03/23 | 12/26/24 | 600,000 | 599,656 |
(SOFR + 0.15%) | (a) | 5.21% | 07/03/23 | 01/03/25 | 300,000 | 300,000 |
(SOFR + 0.17%) | (a) | 5.23% | 07/03/23 | 01/23/25 | 200,000 | 200,000 |
(SOFR + 0.13%) | (a) | 5.19% | 07/03/23 | 03/07/25 | 400,000 | 400,000 |
(SOFR + 0.16%) | (a) | 5.22% | 07/03/23 | 05/02/25 | 1,100,000 | 1,100,000 |
(SOFR + 0.16%) | (a) | 5.22% | 07/03/23 | 05/15/25 | 100,000 | 100,000 |
(SOFR + 0.17%) | (a) | 5.23% | 07/03/23 | 06/02/25 | 700,000 | 700,000 |
(SOFR + 0.17%) | (a) | 5.23% | 07/03/23 | 06/30/25 | 600,000 | 600,000 |
(3 mo. US TBILL + 0.16%) | (a) | 5.41% | 07/03/23 | 06/30/25 | 700,000 | 700,000 |
FEDERAL HOME LOAN BANKS | ||||||
(SOFR + 0.09%) | (a) | 5.15% | 07/03/23 | 500,000 | 500,000 | |
(SOFR + 0.05%) | (a) | 5.11% | 07/03/23 | 07/13/23 | 700,000 | 700,000 |
(b) | 3.50% | 07/14/23 | 700,000 | 700,000 | ||
5.14% | 07/19/23 | 700,000 | 698,413 | |||
(SOFR + 0.11%) | (a) | 5.17% | 07/03/23 | 07/21/23 | 500,000 | 500,000 |
5.05% | 07/25/23 | 1,600,000 | 1,595,150 |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
3.15% | 07/27/23 | 400,000 | 400,000 | |||
5.11% | 07/27/23 | 2,400,000 | 2,391,904 | |||
(SOFR + 0.06%) | (a) | 5.12% | 07/03/23 | 07/27/23 | 600,000 | 600,000 |
3.30% | 07/28/23 | 400,000 | 400,000 | |||
3.36% | 08/01/23 | 300,000 | 299,212 | |||
(b) | 3.25% | 08/04/23 | 700,000 | 700,000 | ||
(SOFR + 0.11%) | (a) | 5.17% | 07/03/23 | 08/18/23 | 500,000 | 500,000 |
3.17% | 08/22/23 | 300,000 | 300,000 | |||
5.22% | 08/23/23 | 1,900,000 | 1,886,138 | |||
5.31% | 08/23/23 | 100,000 | 99,256 | |||
2.70% | 08/28/23 | 100,000 | 99,592 | |||
5.16% | 08/28/23 | 2,400,000 | 2,380,997 | |||
3.38% | 09/01/23 | 600,000 | 599,718 | |||
5.20% | 09/01/23 | 500,000 | 499,968 | |||
4.85% | 09/05/23 | 100,000 | 99,170 | |||
(SOFR + 0.12%) | (a) | 5.18% | 07/03/23 | 09/06/23 | 1,500,000 | 1,500,000 |
4.80% | 09/08/23 | 600,000 | 600,000 | |||
5.29% | 09/15/23 | 100,000 | 98,931 | |||
5.30% | 09/15/23 | 400,000 | 395,708 | |||
(SOFR + 0.12%) | (a) | 5.18% | 07/03/23 | 09/20/23 | 1,300,000 | 1,300,000 |
(SOFR + 0.10%) | (a) | 5.16% | 07/03/23 | 09/21/23 | 600,000 | 600,000 |
5.29% | 09/22/23 | 500,000 | 494,150 | |||
5.29% | 09/26/23 | 700,000 | 691,405 | |||
(SOFR + 0.03%) | (a) | 5.09% | 07/03/23 | 10/03/23 | 1,200,000 | 1,200,000 |
5.30% | 10/04/23 | 900,000 | 887,887 | |||
5.34% | 10/04/23 | 100,000 | 98,644 | |||
5.36% | 10/04/23 | 500,000 | 493,193 | |||
(SOFR + 0.04%) | (a) | 5.10% | 07/03/23 | 10/06/23 | 700,000 | 700,000 |
4.75% | 10/24/23 | 100,000 | 100,000 | |||
5.00% | 11/01/23 | 300,000 | 299,983 | |||
5.00% | 11/09/23 | 100,000 | 99,996 | |||
0.57% | 11/24/23 | 200,000 | 196,605 | |||
4.75% | 11/24/23 | 200,000 | 199,777 | |||
(SOFR + 0.07%) | (a) | 5.13% | 07/03/23 | 11/24/23 | 500,000 | 500,000 |
(SOFR + 0.03%) | (a) | 5.09% | 07/03/23 | 11/28/23 | 1,200,000 | 1,200,000 |
(SOFR + 0.06%) | (a) | 5.12% | 07/03/23 | 11/28/23 | 500,000 | 500,000 |
5.00% | 01/26/24 | 300,000 | 300,000 | |||
4.80% | 02/06/24 | 900,000 | 900,000 | |||
5.00% | 02/09/24 | 800,000 | 800,000 | |||
5.02% | 02/09/24 | 600,000 | 582,394 | |||
(SOFR + 0.06%) | (a) | 5.12% | 07/03/23 | 02/16/24 | 700,000 | 700,000 |
5.41% | 03/08/24 | 1,200,000 | 1,200,000 | |||
(b) | 5.25% | 09/20/23 | 03/20/24 | 100,000 | 100,000 | |
5.13% | 04/17/24 | 400,000 | 400,000 | |||
5.30% | 04/19/24 | 500,000 | 500,000 | |||
5.30% | 05/22/24 | 250,000 | 250,000 | |||
5.23% | 05/28/24 | 600,000 | 600,000 | |||
5.51% | 07/12/24 | 600,000 | 600,000 | |||
(SOFR + 0.10%) | (a) | 5.16% | 07/03/23 | 07/26/24 | 700,000 | 700,000 |
5.56% | 07/29/24 | 500,000 | 500,000 |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
(SOFR + 0.10%) | (a) | 5.16% | 07/03/23 | 09/04/24 | 500,000 | 500,000 |
(SOFR + 0.12%) | (a) | 5.18% | 07/03/23 | 11/18/24 | 400,000 | 400,000 |
(SOFR + 0.12%) | (a) | 5.18% | 07/03/23 | 05/01/25 | 400,000 | 400,000 |
(SOFR + 0.14%) | (a) | 5.20% | 07/03/23 | 05/19/25 | 1,200,000 | 1,200,000 |
FEDERAL HOME LOAN MORTGAGE CORPORATION | ||||||
0.25% | 09/08/23 | 1,700,000 | 1,684,640 | |||
FEDERAL NATIONAL MORTGAGE ASSOCIATION | ||||||
0.25% | 07/10/23 | 800,000 | 799,582 | |||
5.00% | 12/20/23 | 400,000 | 400,000 | |||
5.17% | 05/22/24 | 250,000 | 250,000 | |||
Total U.S. Government Agency Debt (Cost $53,672,305) | 53,672,305 | |||||
U.S. TREASURY DEBT 2.7% OF NET ASSETS | ||||||
UNITED STATES TREASURY | ||||||
5.14% | 07/27/23 | 400,000 | 398,637 | |||
5.15% | 08/08/23 | 400,000 | 397,956 | |||
5.16% | 08/08/23 | 500,000 | 497,440 | |||
5.30% | 10/24/23 | 800,000 | 786,917 | |||
2.25% | 04/30/24 | 500,000 | 487,606 | |||
2.50% | 04/30/24 | 500,000 | 488,603 | |||
0.25% | 06/15/24 | 800,000 | 762,118 | |||
(3 mo. US TBILL + 0.20%) | (a) | 5.45% | 07/03/23 | 01/31/25 | 1,800,000 | 1,802,857 |
(3 mo. US TBILL + 0.17%) | (a) | 5.42% | 07/03/23 | 04/30/25 | 500,000 | 500,189 |
Total U.S. Treasury Debt (Cost $6,122,323) | 6,122,323 | |||||
VARIABLE RATE DEMAND NOTES 0.3% OF NET ASSETS | ||||||
FARR LIFE LLC | ||||||
TAXABLE VARIABLE RATE DEMAND NOTES SERIES 2022 (LOC: FEDERAL HOME LOAN BANKS) | (c) | 5.20% | 07/07/23 | 600,000 | 600,000 | |
Total Variable Rate Demand Notes (Cost $600,000) | 600,000 | |||||
INVESTMENT COMPANIES 0.0% OF NET ASSETS | ||||||
MONEY MARKET FUNDS 0.0% | ||||||
STATE STREET INSTITUTIONAL U.S. GOVERNMENT MONEY MARKET FUND, PREMIER CLASS | (d) | 5.03% | 07/03/23 | 45,600 | 45,600 | |
Total Investment Companies (Cost $45,600) | 45,600 |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
REPURCHASE AGREEMENTS 73.7% OF NET ASSETS | ||||||
U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENTS* 63.1% | ||||||
BANCO SANTANDER SA | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 1,000,422 | 1,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $1,030,007, 4.50% - 5.50%, due 10/01/52 - 04/01/53) | ||||||
BANK OF MONTREAL | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 20,008,433 | 20,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $20,608,687, 3.50%, due 09/20/47 - 01/20/51) | ||||||
BOFA SECURITIES INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 1,000,422 | 1,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $1,020,038, 2.38%, due 03/31/29) | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 30,012,650 | 30,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $30,900,001, 3.53% - 3.88%, due 06/01/30 - 01/01/46) | ||||||
DAIWA CAPITAL MARKETS AMERICA INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 10,004,217 | 10,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $10,400,000, 2.00% - 7.00%, due 06/01/38 - 07/01/53) | ||||||
FICC - BANK OF NEW YORK | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.07% | 07/03/23 | 3,001,268 | 3,000,000 | ||
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $3,060,327, 0.00% - 7.00%, due 04/18/24 - 02/15/43) | ||||||
GOLDMAN SACHS & CO LLC | ||||||
Issued 06/28/23, repurchase date 07/05/23 | 5.06% | 07/05/23 | 1,000,984 | 1,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $1,020,000, 3.50%, due 08/01/46) | ||||||
Issued 06/30/23, repurchase date 07/07/23 | 5.07% | 07/07/23 | 1,000,986 | 1,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $1,020,000, 4.50% - 5.50%, due 07/01/31 - 11/20/52) | ||||||
JP MORGAN SECURITIES LLC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 20,008,433 | 20,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $20,600,001, 2.00% - 7.00%, due 07/01/24 - 07/01/53) | ||||||
MIZUHO SECURITIES USA LLC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 20,008,433 | 20,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $20,400,075, 2.88%, due 05/15/49) | ||||||
MUFG SECURITIES AMERICAS INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 10,004,217 | 10,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $10,400,000, 2.00% - 7.50%, due 01/01/24 - 11/01/51) |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
NOMURA SECURITIES INTERNATIONAL INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 10,004,217 | 10,000,000 | ||
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $10,271,141, 1.38% - 6.05%, due 03/31/29 - 06/20/53) | ||||||
RBC DOMINION SECURITIES INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 10,004,217 | 10,000,000 | ||
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $10,214,177, 0.00% - 7.50%, due 10/19/23 - 06/01/53) | ||||||
TRUIST BANK | ||||||
Issued 06/28/23, repurchase date 07/05/23 | 5.07% | 07/05/23 | 1,000,986 | 1,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $1,040,000, 1.00% - 1.50%, due 09/25/50 - 02/25/51) | ||||||
Issued 06/29/23, repurchase date 07/06/23 | 5.07% | 07/06/23 | 1,000,986 | 1,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $1,040,008, 1.00% - 3.00%, due 09/25/50 - 02/25/52) | ||||||
WELLS FARGO SECURITIES LLC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 2,000,843 | 2,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $2,080,878, 6.00%, due 06/01/53) | ||||||
141,000,000 | ||||||
U.S. TREASURY REPURCHASE AGREEMENTS 10.6% | ||||||
BARCLAYS BANK PLC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.05% | 07/03/23 | 1,703,493 | 1,702,776 | ||
(Collateralized by U.S. Treasury Securities valued at $1,737,659, 4.50%, due 05/15/38) | ||||||
CITIGROUP GLOBAL MARKETS INC | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.05% | 07/03/23 | 5,002,104 | 5,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $5,101,775, 0.25% - 4.00%, due 08/31/25 - 12/15/25) | ||||||
Issued 06/27/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 15,012,650 | 15,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $15,300,357, 1.63% - 3.88%, due 10/15/27 - 03/31/28) |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
FICC - BANK OF NEW YORK | ||||||
Issued 06/30/23, repurchase date 07/03/23 | 5.06% | 07/03/23 | 2,000,843 | 2,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $2,040,071, 1.50%, due 11/30/28) | ||||||
23,702,776 | ||||||
Total Repurchase Agreements (Cost $164,702,776) | 164,702,776 | |||||
Total Investments in Securities (Cost $225,143,004) | 225,143,004 |
* | Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities. |
(a) | Variable rate security; rate shown is effective rate at period end. |
(b) | Step up bond that pays an initial coupon rate for a set period and increased coupon rates at one or more preset intervals. Rate shown is as of period end. |
(c) | VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread are shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
(d) | The rate shown is the annualized 7-day yield. |
EFFR — | Effective Federal Funds Rate is published daily by the Federal Reserve Bank of New York and is based on the interest rate financial institutions charge each other for overnight funds. |
FICC — | Fixed Income Clearing Corp |
LOC — | Letter of credit |
SIFMA — | Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics. |
SOFR — | Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities. |
US TBILL — | The reference rate is the weekly auction stop for the U.S. Treasury Bill. |
VRDN — | Variable rate demand note |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
U.S. Government Agency Debt1 | $— | $53,672,305 | $— | $53,672,305 |
U.S. Treasury Debt1 | — | 6,122,323 | — | 6,122,323 |
Variable Rate Demand Notes1 | — | 600,000 | — | 600,000 |
Investment Companies1 | 45,600 | — | — | 45,600 |
Repurchase Agreements1 | — | 164,702,776 | — | 164,702,776 |
Total | $45,600 | $225,097,404 | $— | $225,143,004 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at cost and value - unaffiliated (Note 2a) | $60,440,228 | |
Repurchase agreements, at cost and value — unaffiliated (Note 2a) | 164,702,776 | |
Receivables: | ||
Fund shares sold | 853,142 | |
Interest | + | 414,934 |
Total assets | 226,411,080 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,600,000 | |
Fund shares redeemed | 740,346 | |
Distributions to shareholders | 504,827 | |
Investment adviser and administrator fees | 37,628 | |
Accrued expenses | + | 59,650 |
Total liabilities | 2,942,451 | |
Net assets | $223,468,629 | |
Net Assets by Source | ||
Capital received from investors | $223,420,770 | |
Total distributable earnings | + | 47,859 |
Net assets | $223,468,629 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$223,468,629 | 223,467,595 | $1.00 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Interest received from securities - unaffiliated | $5,284,982 | |
Expenses | ||
Investment adviser and administrator fees | 211,877 | |
Portfolio accounting fees | 36,106 | |
Professional fees | 15,850 | |
Custodian fees | 12,637 | |
Independent trustees’ fees | 6,839 | |
Shareholder reports | 3,283 | |
Transfer agent fees | 499 | |
Other expenses | + | 1,347 |
Total expenses | – | 288,438 |
Net investment income | 4,996,544 | |
REALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - unaffiliated | 2,259 | |
Increase in net assets resulting from operations | $4,998,803 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $4,996,544 | $3,179,851 | |
Net realized gains | + | 2,259 | 409 |
Increase in net assets from operations | $4,998,803 | $3,180,260 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($4,996,954 ) | ($3,180,846 ) | |
TRANSACTIONS IN FUND SHARES* | |||
Shares sold | 59,036,057 | 169,138,540 | |
Shares reinvested | 4,492,297 | 3,180,846 | |
Shares redeemed | + | (63,215,211 ) | (134,081,228 ) |
Net transactions in fund shares | 313,143 | 38,238,158 | |
NET ASSETS | |||
Beginning of period | $223,153,637 | $184,916,065 | |
Total increase | + | 314,992 | 38,237,572 |
End of period | $223,468,629 | $223,153,637 |
* | Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars. |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
5. Board of Trustees:
6. Borrowing from Banks
7. Federal Income Taxes:
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$3,180,746 | $100 |
8. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
Ferian Juwono, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight and day-to-day co-management of the fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
Agnes Zau, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2018, Ms. Zau was at BlackRock for three years, most recently as a multi-asset portfolio investment consultant where she advised institutional clients on asset allocation and strategy, constructed risk decomposition and portfolio optimization, and conducted scenario analyses for the core multi-asset target risk strategies. She spent the preceding three years as a derivatives specialist at Mellon Capital. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab S&P 500 Index Portfolio (11/01/96) | 16.85% | 19.52% | 12.26% | 12.74% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Fund Category: Morningstar Large-Cap Blend2 | 14.72% | 17.82% | 10.97% | 11.84% |
Fund Expense Ratio3: 0.03% |
Number of Holdings | 503 |
Weighted Average Market Cap ($ x 1,000,000) | $680,840 |
Price/Earnings Ratio (P/E) | 23.6 |
Price/Book Ratio (P/B) | 4.1 |
Portfolio Turnover Rate | 2% 2 |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/23 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/23 2 | |
Schwab S&P 500 Index Portfolio | ||||
Actual Return | 0.03% | $1,000.00 | $1,168.50 | $0.16 |
Hypothetical 5% Return | 0.03% | $1,000.00 | $1,024.65 | $0.15 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $56.38 | $70.41 | $55.41 | $47.48 | $37.10 | $39.51 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.50 | 0.95 | 0.85 | 0.96 | 0.91 | 0.82 |
Net realized and unrealized gains (losses) | 9.00 | (13.73 ) | 14.94 | 7.58 | 10.64 | (2.51 ) |
Total from investment operations | 9.50 | (12.78 ) | 15.79 | 8.54 | 11.55 | (1.69 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.90 ) | (0.77 ) | (0.79 ) | (0.53 ) | (0.78 ) | (0.68 ) |
Distributions from net realized gains | — | (0.48 ) | — | (0.08 ) | (0.39 ) | (0.04 ) |
Total distributions | (0.90 ) | (1.25 ) | (0.79 ) | (0.61 ) | (1.17 ) | (0.72 ) |
Net asset value at end of period | $64.98 | $56.38 | $70.41 | $55.41 | $47.48 | $37.10 |
Total return | 16.85 %2 | (18.12 %) | 28.67 % | 18.28 % | 31.48 % | (4.40 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.03 %3 | 0.03 %4 | 0.03 % | 0.03 % | 0.03 % | 0.03 % |
Net investment income (loss) | 1.68 %3 | 1.59 % | 1.35 % | 2.03 % | 2.13 % | 2.03 % |
Portfolio turnover rate | 2 %2 | 9 % | 13 % | 14 % | 6 % | 5 % |
Net assets, end of period (x 1,000,000) | $1,722 | $2,430 | $1,468 | $947 | $588 | $340 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Annualized. |
4 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.7% OF NET ASSETS | ||
Automobiles & Components 2.3% | ||
Aptiv plc * | 12,475 | 1,273,573 |
BorgWarner, Inc. | 10,812 | 528,815 |
Ford Motor Co. | 181,577 | 2,747,260 |
General Motors Co. | 64,223 | 2,476,439 |
Tesla, Inc. * | 124,472 | 32,583,035 |
39,609,122 | ||
Banks 3.0% | ||
Bank of America Corp. | 320,321 | 9,190,010 |
Citigroup, Inc. | 89,935 | 4,140,607 |
Citizens Financial Group, Inc. | 22,389 | 583,905 |
Comerica, Inc. | 6,053 | 256,405 |
Fifth Third Bancorp | 31,386 | 822,627 |
Huntington Bancshares, Inc. | 66,846 | 720,600 |
JPMorgan Chase & Co. | 135,014 | 19,636,436 |
KeyCorp | 43,137 | 398,586 |
M&T Bank Corp. | 7,680 | 950,477 |
Regions Financial Corp. | 43,442 | 774,136 |
The PNC Financial Services Group, Inc. | 18,435 | 2,321,888 |
Truist Financial Corp. | 61,505 | 1,866,677 |
U.S. Bancorp | 64,435 | 2,128,932 |
Wells Fargo & Co. | 173,351 | 7,398,621 |
Zions Bancorp NA | 6,916 | 185,764 |
51,375,671 | ||
Capital Goods 5.6% | ||
3M Co. | 25,487 | 2,550,994 |
A.O. Smith Corp. | 5,767 | 419,722 |
Allegion plc | 4,058 | 487,041 |
AMETEK, Inc. | 10,636 | 1,721,756 |
Axon Enterprise, Inc. * | 3,250 | 634,140 |
Carrier Global Corp. | 38,543 | 1,915,972 |
Caterpillar, Inc. | 23,812 | 5,858,943 |
Cummins, Inc. | 6,532 | 1,601,385 |
Deere & Co. | 12,460 | 5,048,667 |
Dover Corp. | 6,475 | 956,034 |
Eaton Corp. plc | 18,422 | 3,704,664 |
Emerson Electric Co. | 26,400 | 2,386,296 |
Fastenal Co. | 26,343 | 1,553,973 |
Fortive Corp. | 16,367 | 1,223,761 |
Generac Holdings, Inc. * | 2,880 | 429,494 |
General Dynamics Corp. | 10,388 | 2,234,978 |
General Electric Co. | 50,302 | 5,525,675 |
Honeywell International, Inc. | 30,742 | 6,378,965 |
Howmet Aerospace, Inc. | 17,032 | 844,106 |
Huntington Ingalls Industries, Inc. | 1,841 | 419,012 |
IDEX Corp. | 3,499 | 753,195 |
Illinois Tool Works, Inc. | 12,780 | 3,197,045 |
Ingersoll Rand, Inc. | 18,728 | 1,224,062 |
Johnson Controls International plc | 31,686 | 2,159,084 |
L3Harris Technologies, Inc. | 8,762 | 1,715,337 |
Lockheed Martin Corp. | 10,413 | 4,793,937 |
Masco Corp. | 10,424 | 598,129 |
Nordson Corp. | 2,482 | 615,983 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Northrop Grumman Corp. | 6,595 | 3,006,001 |
Otis Worldwide Corp. | 19,086 | 1,698,845 |
PACCAR, Inc. | 24,130 | 2,018,474 |
Parker-Hannifin Corp. | 5,926 | 2,311,377 |
Pentair plc | 7,598 | 490,831 |
Quanta Services, Inc. | 6,720 | 1,320,144 |
Raytheon Technologies Corp. | 67,500 | 6,612,300 |
Rockwell Automation, Inc. | 5,302 | 1,746,744 |
Snap-on, Inc. | 2,453 | 706,930 |
Stanley Black & Decker, Inc. | 7,092 | 664,591 |
Textron, Inc. | 9,343 | 631,867 |
The Boeing Co. * | 26,126 | 5,516,766 |
Trane Technologies plc | 10,541 | 2,016,072 |
TransDigm Group, Inc. | 2,410 | 2,154,950 |
United Rentals, Inc. | 3,179 | 1,415,831 |
W.W. Grainger, Inc. | 2,063 | 1,626,861 |
Westinghouse Air Brake Technologies Corp. | 8,298 | 910,042 |
Xylem, Inc. | 11,033 | 1,242,536 |
97,043,512 | ||
Commercial & Professional Services 1.3% | ||
Automatic Data Processing, Inc. | 19,093 | 4,196,451 |
Broadridge Financial Solutions, Inc. | 5,462 | 904,671 |
Ceridian HCM Holding, Inc. * | 7,186 | 481,246 |
Cintas Corp. | 3,992 | 1,984,343 |
Copart, Inc. * | 19,800 | 1,805,958 |
CoStar Group, Inc. * | 18,853 | 1,677,917 |
Equifax, Inc. | 5,656 | 1,330,857 |
Jacobs Solutions, Inc. | 5,874 | 698,360 |
Leidos Holdings, Inc. | 6,318 | 559,017 |
Paychex, Inc. | 14,809 | 1,656,683 |
Paycom Software, Inc. | 2,251 | 723,111 |
Republic Services, Inc. | 9,483 | 1,452,511 |
Robert Half International, Inc. | 4,975 | 374,220 |
Rollins, Inc. | 10,688 | 457,767 |
Verisk Analytics, Inc. | 6,681 | 1,510,106 |
Waste Management, Inc. | 17,109 | 2,967,043 |
22,780,261 | ||
Consumer Discretionary Distribution & Retail 5.5% | ||
Advance Auto Parts, Inc. | 2,739 | 192,552 |
Amazon.com, Inc. * | 412,424 | 53,763,592 |
AutoZone, Inc. * | 850 | 2,119,356 |
Bath & Body Works, Inc. | 10,553 | 395,737 |
Best Buy Co., Inc. | 8,965 | 734,682 |
CarMax, Inc. * | 7,327 | 613,270 |
eBay, Inc. | 24,643 | 1,101,296 |
Etsy, Inc. * | 5,712 | 483,292 |
Genuine Parts Co. | 6,482 | 1,096,949 |
LKQ Corp. | 11,724 | 683,157 |
Lowe’s Cos., Inc. | 27,556 | 6,219,389 |
O'Reilly Automotive, Inc. * | 2,813 | 2,687,259 |
Pool Corp. | 1,809 | 677,724 |
Ross Stores, Inc. | 15,799 | 1,771,542 |
The Home Depot, Inc. | 46,792 | 14,535,467 |
The TJX Cos., Inc. | 53,207 | 4,511,421 |
Tractor Supply Co. | 5,057 | 1,118,103 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Ulta Beauty, Inc. * | 2,319 | 1,091,310 |
93,796,098 | ||
Consumer Durables & Apparel 0.8% | ||
D.R. Horton, Inc. | 14,338 | 1,744,791 |
Garmin Ltd. | 7,084 | 738,790 |
Hasbro, Inc. | 5,999 | 388,555 |
Lennar Corp., Class A | 11,707 | 1,467,004 |
Mohawk Industries, Inc. * | 2,436 | 251,298 |
Newell Brands, Inc. | 17,400 | 151,380 |
NIKE, Inc., Class B | 56,929 | 6,283,254 |
NVR, Inc. * | 141 | 895,438 |
PulteGroup, Inc. | 10,282 | 798,706 |
Ralph Lauren Corp. | 1,898 | 234,024 |
Tapestry, Inc. | 10,739 | 459,629 |
VF Corp. | 15,268 | 291,466 |
Whirlpool Corp. | 2,518 | 374,653 |
14,078,988 | ||
Consumer Services 2.1% | ||
Booking Holdings, Inc. * | 1,706 | 4,606,763 |
Caesars Entertainment, Inc. * | 9,913 | 505,265 |
Carnival Corp. * | 46,501 | 875,614 |
Chipotle Mexican Grill, Inc. * | 1,274 | 2,725,086 |
Darden Restaurants, Inc. | 5,592 | 934,311 |
Domino’s Pizza, Inc. | 1,635 | 550,979 |
Expedia Group, Inc. * | 6,602 | 722,193 |
Hilton Worldwide Holdings, Inc. | 12,218 | 1,778,330 |
Las Vegas Sands Corp. * | 15,212 | 882,296 |
Marriott International, Inc., Class A | 11,907 | 2,187,197 |
McDonald’s Corp. | 33,734 | 10,066,563 |
MGM Resorts International | 13,976 | 613,826 |
Norwegian Cruise Line Holdings Ltd. * | 19,474 | 423,949 |
Royal Caribbean Cruises Ltd. * | 10,181 | 1,056,177 |
Starbucks Corp. | 52,965 | 5,246,713 |
Wynn Resorts Ltd. | 4,764 | 503,126 |
Yum! Brands, Inc. | 12,926 | 1,790,897 |
35,469,285 | ||
Consumer Staples Distribution & Retail 1.8% | ||
Costco Wholesale Corp. | 20,491 | 11,031,945 |
Dollar General Corp. | 10,114 | 1,717,155 |
Dollar Tree, Inc. * | 9,590 | 1,376,165 |
Sysco Corp. | 23,389 | 1,735,464 |
Target Corp. | 21,327 | 2,813,031 |
The Kroger Co. | 30,125 | 1,415,875 |
Walgreens Boots Alliance, Inc. | 33,157 | 944,643 |
Walmart, Inc. | 64,812 | 10,187,150 |
31,221,428 | ||
Energy 4.1% | ||
APA Corp. | 14,294 | 488,426 |
Baker Hughes Co. | 46,697 | 1,476,092 |
Chevron Corp. | 80,521 | 12,669,979 |
ConocoPhillips | 55,911 | 5,792,939 |
Coterra Energy, Inc. | 35,074 | 887,372 |
Devon Energy Corp. | 29,608 | 1,431,251 |
Diamondback Energy, Inc. | 8,385 | 1,101,454 |
EOG Resources, Inc. | 27,022 | 3,092,398 |
EQT Corp. | 16,691 | 686,501 |
Exxon Mobil Corp. | 186,801 | 20,034,407 |
Halliburton Co. | 41,770 | 1,377,992 |
Hess Corp. | 12,766 | 1,735,538 |
Kinder Morgan, Inc. | 91,014 | 1,567,261 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Marathon Oil Corp. | 28,602 | 658,418 |
Marathon Petroleum Corp. | 19,598 | 2,285,127 |
Occidental Petroleum Corp. | 33,176 | 1,950,749 |
ONEOK, Inc. | 20,627 | 1,273,098 |
Phillips 66 | 21,190 | 2,021,102 |
Pioneer Natural Resources Co. | 10,797 | 2,236,922 |
Schlumberger N.V. | 65,859 | 3,234,994 |
Targa Resources Corp. | 10,464 | 796,310 |
The Williams Cos., Inc. | 56,228 | 1,834,720 |
Valero Energy Corp. | 16,692 | 1,957,972 |
70,591,022 | ||
Equity Real Estate Investment Trusts (REITs) 2.3% | ||
Alexandria Real Estate Equities, Inc. | 7,291 | 827,456 |
American Tower Corp. | 21,529 | 4,175,334 |
AvalonBay Communities, Inc. | 6,575 | 1,244,450 |
Boston Properties, Inc. | 6,594 | 379,749 |
Camden Property Trust | 4,946 | 538,471 |
Crown Castle, Inc. | 20,030 | 2,282,218 |
Digital Realty Trust, Inc. | 13,442 | 1,530,641 |
Equinix, Inc. | 4,320 | 3,386,621 |
Equity Residential | 15,789 | 1,041,600 |
Essex Property Trust, Inc. | 2,963 | 694,231 |
Extra Space Storage, Inc. | 6,254 | 930,908 |
Federal Realty Investment Trust | 3,381 | 327,179 |
Healthpeak Properties, Inc. | 25,261 | 507,746 |
Host Hotels & Resorts, Inc. | 32,724 | 550,745 |
Invitation Homes, Inc. | 26,916 | 925,910 |
Iron Mountain, Inc. | 13,504 | 767,297 |
Kimco Realty Corp. | 28,527 | 562,552 |
Mid-America Apartment Communities, Inc. | 5,402 | 820,348 |
Prologis, Inc. | 42,654 | 5,230,660 |
Public Storage | 7,307 | 2,132,767 |
Realty Income Corp. | 31,057 | 1,856,898 |
Regency Centers Corp. | 7,112 | 439,308 |
SBA Communications Corp. | 5,017 | 1,162,740 |
Simon Property Group, Inc. | 15,094 | 1,743,055 |
UDR, Inc. | 14,285 | 613,684 |
Ventas, Inc. | 18,523 | 875,582 |
VICI Properties, Inc. | 46,325 | 1,455,995 |
Welltower, Inc. | 22,948 | 1,856,264 |
Weyerhaeuser Co. | 33,907 | 1,136,224 |
39,996,633 | ||
Financial Services 7.3% | ||
American Express Co. | 27,475 | 4,786,145 |
Ameriprise Financial, Inc. | 4,808 | 1,597,025 |
Berkshire Hathaway, Inc., Class B * | 82,395 | 28,096,695 |
BlackRock, Inc. | 6,921 | 4,783,380 |
Capital One Financial Corp. | 17,631 | 1,928,302 |
Cboe Global Markets, Inc. | 4,868 | 671,833 |
CME Group, Inc. | 16,625 | 3,080,446 |
Discover Financial Services | 11,713 | 1,368,664 |
FactSet Research Systems, Inc. | 1,775 | 711,154 |
Fidelity National Information Services, Inc. | 27,339 | 1,495,443 |
Fiserv, Inc. * | 28,517 | 3,597,420 |
FleetCor Technologies, Inc. * | 3,419 | 858,442 |
Franklin Resources, Inc. | 13,194 | 352,412 |
Global Payments, Inc. | 12,105 | 1,192,585 |
Intercontinental Exchange, Inc. | 25,877 | 2,926,171 |
Invesco Ltd. | 21,031 | 353,531 |
Jack Henry & Associates, Inc. | 3,373 | 564,404 |
MarketAxess Holdings, Inc. | 1,740 | 454,871 |
Mastercard, Inc., Class A | 38,661 | 15,205,371 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Moody's Corp. | 7,291 | 2,535,226 |
Morgan Stanley | 60,206 | 5,141,592 |
MSCI, Inc. | 3,696 | 1,734,496 |
Nasdaq, Inc. | 15,689 | 782,097 |
Northern Trust Corp. | 9,650 | 715,451 |
PayPal Holdings, Inc. * | 51,546 | 3,439,665 |
Raymond James Financial, Inc. | 8,832 | 916,497 |
S&P Global, Inc. | 15,158 | 6,076,691 |
State Street Corp. | 15,479 | 1,132,753 |
Synchrony Financial | 19,851 | 673,346 |
T. Rowe Price Group, Inc. | 10,399 | 1,164,896 |
The Bank of New York Mellon Corp. | 33,254 | 1,480,468 |
The Charles Schwab Corp. (a) | 68,166 | 3,863,649 |
The Goldman Sachs Group, Inc. | 15,364 | 4,955,505 |
Visa, Inc., Class A | 74,767 | 17,755,667 |
126,392,293 | ||
Food, Beverage & Tobacco 3.3% | ||
Altria Group, Inc. | 82,461 | 3,735,483 |
Archer-Daniels-Midland Co. | 25,158 | 1,900,939 |
Brown-Forman Corp., Class B | 8,448 | 564,157 |
Bunge Ltd. | 6,974 | 657,997 |
Campbell Soup Co. | 9,273 | 423,869 |
Conagra Brands, Inc. | 22,081 | 744,571 |
Constellation Brands, Inc., Class A | 7,448 | 1,833,176 |
General Mills, Inc. | 27,134 | 2,081,178 |
Hormel Foods Corp. | 13,377 | 538,023 |
Kellogg Co. | 11,900 | 802,060 |
Keurig Dr Pepper, Inc. | 38,931 | 1,217,372 |
Lamb Weston Holdings, Inc. | 6,746 | 775,453 |
McCormick & Co., Inc. Non Voting Shares | 11,558 | 1,008,204 |
Molson Coors Beverage Co., Class B | 8,686 | 571,886 |
Mondelez International, Inc., Class A | 62,909 | 4,588,582 |
Monster Beverage Corp. * | 35,282 | 2,026,598 |
PepsiCo, Inc. | 63,658 | 11,790,735 |
Philip Morris International, Inc. | 71,710 | 7,000,330 |
The Coca-Cola Co. | 179,839 | 10,829,905 |
The Hershey Co. | 6,798 | 1,697,461 |
The JM Smucker Co. | 4,937 | 729,047 |
The Kraft Heinz Co. | 36,793 | 1,306,152 |
Tyson Foods, Inc., Class A | 13,225 | 675,004 |
57,498,182 | ||
Health Care Equipment & Services 5.8% | ||
Abbott Laboratories | 80,343 | 8,758,994 |
Align Technology, Inc. * | 3,295 | 1,165,244 |
AmerisourceBergen Corp. | 7,472 | 1,437,837 |
Baxter International, Inc. | 23,425 | 1,067,243 |
Becton Dickinson & Co. | 13,121 | 3,464,075 |
Boston Scientific Corp. * | 66,415 | 3,592,387 |
Cardinal Health, Inc. | 11,784 | 1,114,413 |
Centene Corp. * | 25,343 | 1,709,385 |
CVS Health Corp. | 59,230 | 4,094,570 |
DaVita, Inc. * | 2,539 | 255,093 |
Dentsply Sirona, Inc. | 9,795 | 391,996 |
DexCom, Inc. * | 17,908 | 2,301,357 |
Edwards Lifesciences Corp. * | 28,005 | 2,641,711 |
Elevance Health, Inc. | 10,952 | 4,865,864 |
GE HealthCare Technologies, Inc. | 18,066 | 1,467,655 |
HCA Healthcare, Inc. | 9,530 | 2,892,164 |
Henry Schein, Inc. * | 6,067 | 492,034 |
Hologic, Inc. * | 11,397 | 922,815 |
Humana, Inc. | 5,772 | 2,580,834 |
IDEXX Laboratories, Inc. * | 3,832 | 1,924,545 |
Insulet Corp. * | 3,227 | 930,473 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Intuitive Surgical, Inc. * | 16,188 | 5,535,325 |
Laboratory Corp. of America Holdings | 4,102 | 989,936 |
McKesson Corp. | 6,264 | 2,676,670 |
Medtronic plc | 61,469 | 5,415,419 |
Molina Healthcare, Inc. * | 2,700 | 813,348 |
Quest Diagnostics, Inc. | 5,187 | 729,085 |
ResMed, Inc. | 6,780 | 1,481,430 |
STERIS plc | 4,597 | 1,034,233 |
Stryker Corp. | 15,608 | 4,761,845 |
Teleflex, Inc. | 2,167 | 524,479 |
The Cigna Group | 13,668 | 3,835,241 |
The Cooper Cos., Inc. | 2,290 | 878,055 |
UnitedHealth Group, Inc. | 43,016 | 20,675,210 |
Universal Health Services, Inc., Class B | 2,914 | 459,742 |
Zimmer Biomet Holdings, Inc. | 9,620 | 1,400,672 |
99,281,379 | ||
Household & Personal Products 1.5% | ||
Church & Dwight Co., Inc. | 11,308 | 1,133,401 |
Colgate-Palmolive Co. | 38,334 | 2,953,251 |
Kimberly-Clark Corp. | 15,583 | 2,151,389 |
The Clorox Co. | 5,724 | 910,345 |
The Estee Lauder Cos., Inc., Class A | 10,710 | 2,103,230 |
The Procter & Gamble Co. | 108,894 | 16,523,575 |
25,775,191 | ||
Insurance 2.1% | ||
Aflac, Inc. | 25,372 | 1,770,966 |
American International Group, Inc. | 33,416 | 1,922,757 |
Aon plc, Class A | 9,436 | 3,257,307 |
Arch Capital Group Ltd. * | 17,239 | 1,290,339 |
Arthur J. Gallagher & Co. | 9,890 | 2,171,547 |
Assurant, Inc. | 2,441 | 306,883 |
Brown & Brown, Inc. | 10,854 | 747,189 |
Chubb Ltd. | 19,139 | 3,685,406 |
Cincinnati Financial Corp. | 7,277 | 708,198 |
Everest Re Group Ltd. | 1,985 | 678,592 |
Globe Life, Inc. | 4,112 | 450,757 |
Lincoln National Corp. | 7,120 | 183,411 |
Loews Corp. | 8,753 | 519,753 |
Marsh & McLennan Cos., Inc. | 22,860 | 4,299,509 |
MetLife, Inc. | 29,690 | 1,678,376 |
Principal Financial Group, Inc. | 10,442 | 791,921 |
Prudential Financial, Inc. | 16,863 | 1,487,654 |
The Allstate Corp. | 12,169 | 1,326,908 |
The Hartford Financial Services Group, Inc. | 14,359 | 1,034,135 |
The Progressive Corp. | 27,046 | 3,580,079 |
The Travelers Cos., Inc. | 10,663 | 1,851,737 |
W.R. Berkley Corp. | 9,242 | 550,453 |
Willis Towers Watson plc | 4,909 | 1,156,069 |
35,449,946 | ||
Materials 2.5% | ||
Air Products and Chemicals, Inc. | 10,263 | 3,074,076 |
Albemarle Corp. | 5,433 | 1,212,048 |
Amcor plc | 68,133 | 679,967 |
Avery Dennison Corp. | 3,741 | 642,704 |
Ball Corp. | 14,559 | 847,479 |
Celanese Corp. | 4,606 | 533,375 |
CF Industries Holdings, Inc. | 8,991 | 624,155 |
Corteva, Inc. | 32,821 | 1,880,643 |
Dow, Inc. | 32,648 | 1,738,832 |
DuPont de Nemours, Inc. | 21,176 | 1,512,813 |
Eastman Chemical Co. | 5,487 | 459,372 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Ecolab, Inc. | 11,439 | 2,135,547 |
FMC Corp. | 5,770 | 602,042 |
Freeport-McMoRan, Inc. | 66,216 | 2,648,640 |
International Flavors & Fragrances, Inc. | 11,811 | 940,037 |
International Paper Co. | 16,063 | 510,964 |
Linde PLC | 22,621 | 8,620,411 |
LyondellBasell Industries N.V., Class A | 11,746 | 1,078,635 |
Martin Marietta Materials, Inc. | 2,868 | 1,324,127 |
Newmont Corp. | 36,671 | 1,564,385 |
Nucor Corp. | 11,606 | 1,903,152 |
Packaging Corp. of America | 4,162 | 550,050 |
PPG Industries, Inc. | 10,862 | 1,610,835 |
Sealed Air Corp. | 6,682 | 267,280 |
Steel Dynamics, Inc. | 7,432 | 809,568 |
The Mosaic Co. | 15,380 | 538,300 |
The Sherwin-Williams Co. | 10,844 | 2,879,299 |
Vulcan Materials Co. | 6,158 | 1,388,260 |
Westrock Co. | 11,759 | 341,834 |
42,918,830 | ||
Media & Entertainment 7.4% | ||
Activision Blizzard, Inc. * | 33,051 | 2,786,199 |
Alphabet, Inc., Class A * | 274,483 | 32,855,615 |
Alphabet, Inc., Class C * | 236,107 | 28,561,864 |
Charter Communications, Inc., Class A * | 4,796 | 1,761,906 |
Comcast Corp., Class A | 192,178 | 7,984,996 |
Electronic Arts, Inc. | 12,023 | 1,559,383 |
Fox Corp., Class A | 12,431 | 422,654 |
Fox Corp., Class B | 6,367 | 203,044 |
Live Nation Entertainment, Inc. * | 6,666 | 607,339 |
Match Group, Inc. * | 12,905 | 540,074 |
Meta Platforms, Inc., Class A * | 102,204 | 29,330,504 |
Netflix, Inc. * | 20,538 | 9,046,784 |
News Corp., Class A | 17,664 | 344,448 |
News Corp., Class B | 5,446 | 107,395 |
Omnicom Group, Inc. | 9,186 | 874,048 |
Paramount Global, Class B | 23,337 | 371,292 |
Take-Two Interactive Software, Inc. * | 7,342 | 1,080,449 |
The Interpublic Group of Cos., Inc. | 17,819 | 687,457 |
The Walt Disney Co. * | 84,427 | 7,537,642 |
Warner Bros Discovery, Inc. * | 102,227 | 1,281,927 |
127,945,020 | ||
Pharmaceuticals, Biotechnology & Life Sciences 7.6% | ||
AbbVie, Inc. | 81,515 | 10,982,516 |
Agilent Technologies, Inc. | 13,649 | 1,641,292 |
Amgen, Inc. | 24,688 | 5,481,230 |
Biogen, Inc. * | 6,685 | 1,904,222 |
Bio-Rad Laboratories, Inc., Class A * | 981 | 371,917 |
Bio-Techne Corp. | 7,266 | 593,124 |
Bristol-Myers Squibb Co. | 97,061 | 6,207,051 |
Catalent, Inc. * | 8,321 | 360,799 |
Charles River Laboratories International, Inc. * | 2,375 | 499,344 |
Danaher Corp. | 30,687 | 7,364,880 |
Eli Lilly & Co. | 36,402 | 17,071,810 |
Gilead Sciences, Inc. | 57,626 | 4,441,236 |
Illumina, Inc. * | 7,295 | 1,367,740 |
Incyte Corp. * | 8,550 | 532,238 |
IQVIA Holdings, Inc. * | 8,568 | 1,925,829 |
Johnson & Johnson | 120,068 | 19,873,655 |
Merck & Co., Inc. | 117,232 | 13,527,400 |
Mettler-Toledo International, Inc. * | 1,017 | 1,333,938 |
Moderna, Inc. * | 15,162 | 1,842,183 |
Organon & Co. | 11,747 | 244,455 |
Pfizer, Inc. | 260,821 | 9,566,914 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Regeneron Pharmaceuticals, Inc. * | 4,984 | 3,581,203 |
Revvity, Inc. | 5,792 | 688,032 |
Thermo Fisher Scientific, Inc. | 17,824 | 9,299,672 |
Vertex Pharmaceuticals, Inc. * | 11,898 | 4,187,025 |
Viatris, Inc. | 55,478 | 553,670 |
Waters Corp. * | 2,726 | 726,588 |
West Pharmaceutical Services, Inc. | 3,437 | 1,314,549 |
Zoetis, Inc. | 21,347 | 3,676,167 |
131,160,679 | ||
Real Estate Management & Development 0.1% | ||
CBRE Group, Inc., Class A * | 14,392 | 1,161,578 |
Semiconductors & Semiconductor Equipment 7.4% | ||
Advanced Micro Devices, Inc. * | 74,400 | 8,474,904 |
Analog Devices, Inc. | 23,369 | 4,552,515 |
Applied Materials, Inc. | 39,040 | 5,642,842 |
Broadcom, Inc. | 19,263 | 16,709,304 |
Enphase Energy, Inc. * | 6,345 | 1,062,661 |
First Solar, Inc. * | 4,600 | 874,414 |
Intel Corp. | 192,707 | 6,444,122 |
KLA Corp. | 6,338 | 3,074,057 |
Lam Research Corp. | 6,206 | 3,989,589 |
Microchip Technology, Inc. | 25,301 | 2,266,716 |
Micron Technology, Inc. | 50,561 | 3,190,905 |
Monolithic Power Systems, Inc. | 2,086 | 1,126,920 |
NVIDIA Corp. | 114,262 | 48,335,111 |
NXP Semiconductors N.V. | 11,997 | 2,455,546 |
ON Semiconductor Corp. * | 19,938 | 1,885,736 |
Qorvo, Inc. * | 4,614 | 470,766 |
QUALCOMM, Inc. | 51,468 | 6,126,751 |
Skyworks Solutions, Inc. | 7,368 | 815,564 |
SolarEdge Technologies, Inc. * | 2,609 | 701,951 |
Teradyne, Inc. | 7,145 | 795,453 |
Texas Instruments, Inc. | 41,935 | 7,549,139 |
126,544,966 | ||
Software & Services 11.4% | ||
Accenture plc, Class A | 29,177 | 9,003,439 |
Adobe, Inc. * | 21,193 | 10,363,165 |
Akamai Technologies, Inc. * | 7,049 | 633,494 |
ANSYS, Inc. * | 4,009 | 1,324,052 |
Autodesk, Inc. * | 9,881 | 2,021,751 |
Cadence Design Systems, Inc. * | 12,597 | 2,954,248 |
Cognizant Technology Solutions Corp., Class A | 23,428 | 1,529,380 |
DXC Technology Co. * | 10,517 | 281,014 |
EPAM Systems, Inc. * | 2,681 | 602,555 |
Fair Isaac Corp. * | 1,156 | 935,447 |
Fortinet, Inc. * | 30,105 | 2,275,637 |
Gartner, Inc. * | 3,646 | 1,277,230 |
Gen Digital, Inc. | 26,283 | 487,550 |
International Business Machines Corp. | 41,957 | 5,614,266 |
Intuit, Inc. | 12,961 | 5,938,601 |
Microsoft Corp. | 343,533 | 116,986,728 |
Oracle Corp. | 71,101 | 8,467,418 |
Palo Alto Networks, Inc. * | 13,981 | 3,572,285 |
PTC, Inc. * | 4,934 | 702,108 |
Roper Technologies, Inc. | 4,924 | 2,367,459 |
Salesforce, Inc. * | 45,232 | 9,555,712 |
ServiceNow, Inc. * | 9,413 | 5,289,824 |
Synopsys, Inc. * | 7,035 | 3,063,109 |
Tyler Technologies, Inc. * | 1,942 | 808,785 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
VeriSign, Inc. * | 4,185 | 945,685 |
197,000,942 | ||
Technology Hardware & Equipment 9.4% | ||
Amphenol Corp., Class A | 27,494 | 2,335,615 |
Apple Inc. | 683,093 | 132,499,549 |
Arista Networks, Inc. * | 11,527 | 1,868,066 |
CDW Corp. | 6,227 | 1,142,654 |
Cisco Systems, Inc. | 189,286 | 9,793,658 |
Corning, Inc. | 35,276 | 1,236,071 |
F5, Inc. * | 2,776 | 406,018 |
Hewlett Packard Enterprise Co. | 59,991 | 1,007,849 |
HP, Inc. | 40,128 | 1,232,331 |
Juniper Networks, Inc. | 14,803 | 463,778 |
Keysight Technologies, Inc. * | 8,216 | 1,375,769 |
Motorola Solutions, Inc. | 7,744 | 2,271,160 |
NetApp, Inc. | 9,888 | 755,443 |
Seagate Technology Holdings plc | 8,870 | 548,787 |
TE Connectivity Ltd. | 14,562 | 2,041,010 |
Teledyne Technologies, Inc. * | 2,178 | 895,398 |
Trimble, Inc. * | 11,393 | 603,145 |
Western Digital Corp. * | 14,812 | 561,819 |
Zebra Technologies Corp., Class A * | 2,385 | 705,555 |
161,743,675 | ||
Telecommunication Services 0.9% | ||
AT&T, Inc. | 330,315 | 5,268,524 |
T-Mobile US, Inc. * | 26,612 | 3,696,407 |
Verizon Communications, Inc. | 194,247 | 7,224,046 |
16,188,977 | ||
Transportation 1.6% | ||
Alaska Air Group, Inc. * | 5,886 | 313,017 |
American Airlines Group, Inc. * | 30,037 | 538,864 |
C.H. Robinson Worldwide, Inc. | 5,383 | 507,886 |
CSX Corp. | 93,911 | 3,202,365 |
Delta Air Lines, Inc. * | 29,748 | 1,414,220 |
Expeditors International of Washington, Inc. | 7,078 | 857,358 |
FedEx Corp. | 10,681 | 2,647,820 |
JB Hunt Transport Services, Inc. | 3,833 | 693,888 |
Norfolk Southern Corp. | 10,514 | 2,384,155 |
Old Dominion Freight Line, Inc. | 4,152 | 1,535,202 |
Southwest Airlines Co. | 27,544 | 997,368 |
Union Pacific Corp. | 28,169 | 5,763,941 |
United Airlines Holdings, Inc. * | 15,184 | 833,146 |
United Parcel Service, Inc., Class B | 33,483 | 6,001,828 |
27,691,058 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Utilities 2.6% | ||
Alliant Energy Corp. | 11,591 | 608,296 |
Ameren Corp. | 12,158 | 992,944 |
American Electric Power Co., Inc. | 23,777 | 2,002,023 |
American Water Works Co., Inc. | 8,978 | 1,281,609 |
Atmos Energy Corp. | 6,690 | 778,315 |
CenterPoint Energy, Inc. | 29,214 | 851,588 |
CMS Energy Corp. | 13,506 | 793,477 |
Consolidated Edison, Inc. | 15,988 | 1,445,315 |
Constellation Energy Corp. | 14,996 | 1,372,884 |
Dominion Energy, Inc. | 38,609 | 1,999,560 |
DTE Energy Co. | 9,542 | 1,049,811 |
Duke Energy Corp. | 35,623 | 3,196,808 |
Edison International | 17,659 | 1,226,418 |
Entergy Corp. | 9,792 | 953,447 |
Evergy, Inc. | 10,639 | 621,530 |
Eversource Energy | 16,155 | 1,145,713 |
Exelon Corp. | 45,921 | 1,870,821 |
FirstEnergy Corp. | 25,199 | 979,737 |
NextEra Energy, Inc. | 93,490 | 6,936,958 |
NiSource, Inc. | 19,139 | 523,452 |
NRG Energy, Inc. | 10,648 | 398,129 |
PG&E Corp. * | 74,543 | 1,288,103 |
Pinnacle West Capital Corp. | 5,223 | 425,466 |
PPL Corp. | 33,934 | 897,894 |
Public Service Enterprise Group, Inc. | 23,017 | 1,441,094 |
Sempra Energy | 14,532 | 2,115,714 |
The AES Corp. | 30,999 | 642,609 |
The Southern Co. | 50,395 | 3,540,249 |
WEC Energy Group, Inc. | 14,546 | 1,283,539 |
Xcel Energy, Inc. | 25,402 | 1,579,242 |
44,242,745 | ||
Total Common Stocks (Cost $986,989,766) | 1,716,957,481 | |
Total Investments in Securities (Cost $986,989,766) | 1,716,957,481 |
NUMBER OF CONTRACTS | NOTIONAL AMOUNT ($) | CURRENT VALUE/ UNREALIZED APPRECIATION ($) | |
FUTURES CONTRACTS | |||
Long | |||
S&P 500 Index, e-mini, expires 09/15/23 | 31 | 6,956,788 | 85,768 |
* | Non-income producing security. |
(a) | Issuer is affiliated with the fund’s investment adviser. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DIVIDENDS RECEIVED |
COMMON STOCKS 0.2% OF NET ASSETS | ||||||||
Financial Services 0.2% | ||||||||
The Charles Schwab Corp. | $9,490,058 | $57,854 | ($2,424,263) | ($1,294,710) | ($1,965,290) | $3,863,649 | 68,166 | $54,756 |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $1,716,957,481 | $— | $— | $1,716,957,481 |
Futures Contracts2 | 85,768 | — | — | 85,768 |
Total | $1,717,043,249 | $— | $— | $1,717,043,249 |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - affiliated (cost $2,924,276) | $3,863,649 | |
Investments in securities, at value - unaffiliated (cost $984,065,490) | 1,713,093,832 | |
Cash | 5,050,472 | |
Deposit with broker for futures contracts | 739,200 | |
Receivables: | ||
Dividends | 1,188,235 | |
Fund shares sold | 160,223 | |
Variation margin on future contracts | + | 64,511 |
Total assets | 1,724,160,122 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 2,209,109 | |
Investment adviser fees | + | 45,165 |
Total liabilities | 2,254,274 | |
Net assets | $1,721,905,848 | |
Net Assets by Source | ||
Capital received from investors | $1,006,593,706 | |
Total distributable earnings | + | 715,312,142 |
Net assets | $1,721,905,848 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$1,721,905,848 | 26,497,153 | $64.98 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $4,790) | $19,909,920 | |
Dividends received from securities - affiliated | + | 54,756 |
Total investment income | 19,964,676 | |
Expenses | ||
Investment adviser fees | 349,847 | |
Total expenses | – | 349,847 |
Net investment income | 19,614,829 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - affiliated | (1,294,710 ) | |
Net realized gains on sales of securities - unaffiliated | 6,628,598 | |
Net realized gains on futures contracts | + | 953,227 |
Net realized gains | 6,287,115 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | (1,965,290 ) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | 313,942,237 | |
Net change in unrealized appreciation (depreciation) on futures contracts | + | 355,020 |
Net change in unrealized appreciation (depreciation) | + | 312,331,967 |
Net realized and unrealized gains | 318,619,082 | |
Increase in net assets resulting from operations | $338,233,911 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $19,614,829 | $23,603,227 | |
Net realized gains (losses) | 6,287,115 | (23,994,364 ) | |
Net change in unrealized appreciation (depreciation) | + | 312,331,967 | (286,676,508 ) |
Increase (decrease) in net assets resulting from operations | $338,233,911 | ($287,067,645 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($23,603,840 ) | ($25,887,212 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,827,752 | $110,590,617 | 26,590,753 | $1,541,744,983 | |
Shares reinvested | 363,248 | 23,603,840 | 469,652 | 25,887,212 | |
Shares redeemed | + | (18,787,717 ) | (1,156,677,535 ) | (4,810,109 ) | (292,503,530 ) |
Net transactions in fund shares | (16,596,717 ) | ($1,022,483,078 ) | 22,250,296 | $1,275,128,665 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 43,093,870 | $2,429,758,855 | 20,843,574 | $1,467,585,047 | |
Total increase (decrease) | + | (16,596,717 ) | (707,853,007 ) | 22,250,296 | 962,173,808 |
End of period | 26,497,153 | $1,721,905,848 | 43,093,870 | $2,429,758,855 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
5. Board of Trustees:
6. Borrowing from Banks:
7. Purchases and Sales/Maturities of Investment Securities:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$34,997,716 | $1,046,356,945 |
8. Derivatives:
Notional Amount | Number of Contracts |
$11,269,611 | 55 |
9. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$1,005,522,737 | $719,333,460 | ($7,812,948) | $711,520,512 |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$19,219,296 | $6,667,916 |
10. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab VIT Balanced Portfolio (07/25/12) | 6.67% | 5.73% | 3.13% | 3.76% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
VIT Balanced Composite Index | 6.66% | 6.34% | 3.68% | 4.37% |
Fund Category: Moderately Conservative Allocation2 | 6.37% | 5.96% | 3.69% | 4.51% |
Fund Expense Ratio3: 0.58% |
Number of Holdings | 10 |
Portfolio Turnover Rate | 12% 1 |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/232 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/232,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 1/1/23-6/30/234,5 | |
Schwab VIT Balanced Portfolio | ||||||
Actual Return | 0.52% | 0.58% | $1,000.00 | $1,066.70 | $2.66 | $2.97 |
Hypothetical 5% Return | 0.52% | 0.58% | $1,000.00 | $1,022.22 | $2.61 | $2.91 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $12.33 | $14.99 | $14.04 | $13.25 | $11.82 | $12.58 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.22 | 0.21 | 0.20 | 0.25 | 0.23 |
Net realized and unrealized gains (losses) | 0.71 | (2.42 ) | 0.93 | 0.86 | 1.42 | (0.80 ) |
Total from investment operations | 0.82 | (2.20 ) | 1.14 | 1.06 | 1.67 | (0.57 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.24 ) | (0.21 ) | (0.19 ) | (0.24 ) | (0.22 ) | (0.17 ) |
Distributions from net realized gains | — | (0.25 ) | (0.00 )2 | (0.03 ) | (0.02 ) | (0.02 ) |
Total distributions | (0.24 ) | (0.46 ) | (0.19 ) | (0.27 ) | (0.24 ) | (0.19 ) |
Net asset value at end of period | $12.91 | $12.33 | $14.99 | $14.04 | $13.25 | $11.82 |
Total return | 6.67 %3 | (14.71 %) | 8.19 % | 8.23 % | 14.24 % | (4.63 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses4 | 0.52 %5 | 0.53 %6 | 0.52 % | 0.54 % | 0.56 % | 0.55 % |
Gross operating expenses4 | 0.52 %5 | 0.53 %6 | 0.52 % | 0.54 % | 0.56 % | 0.55 % |
Net investment income (loss) | 1.70 %5 | 1.70 % | 1.42 % | 1.53 % | 1.97 % | 1.87 % |
Portfolio turnover rate | 12 %3 | 19 % | 13 % | 38 % | 15 % | 9 % |
Net assets, end of period (x 1,000) | $74,672 | $74,061 | $92,777 | $83,577 | $75,883 | $66,475 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Per-share amount was less than $0.005. |
3 | Not annualized. |
4 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Annualized. |
6 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS | ||||||||
U.S. Stocks 28.7% | ||||||||
Large-Cap 25.9% | ||||||||
Schwab U.S. Large-Cap ETF | $14,079,892 | $5,306,730 | ($2,529,760) | $191,656 | $2,277,950 | $19,326,468 | 369,037 | $125,981 |
Small-Cap 2.8% | ||||||||
Schwab U.S. Small-Cap ETF | 2,965,454 | 195,638 | (1,273,781) | 325,348 | (129,794) | 2,082,865 | 47,554 | 16,735 |
21,409,333 | ||||||||
International Stocks 15.0% | ||||||||
Developed Markets 13.0% | ||||||||
Schwab International Equity ETF | 8,175,188 | 392,284 | (1,215,445) | 140,410 | 724,460 | 8,216,897 | 230,488 | 91,150 |
Schwab International Small-Cap Equity ETF | 1,503,227 | 51,369 | (146,520) | 14,904 | 97,346 | 1,520,326 | 45,020 | 7,428 |
9,737,223 | ||||||||
Emerging Markets 2.0% | ||||||||
Schwab Emerging Markets Equity ETF | 3,724,759 | 145,694 | (2,532,582) | (17,923) | 150,512 | 1,470,460 | 59,702 | 7,777 |
11,207,683 | ||||||||
Real Estate 3.3% | ||||||||
U.S. REITs 3.3% | ||||||||
Schwab U.S. REIT ETF | 4,447,232 | 431,807 | (2,465,219) | 216,371 | (137,558) | 2,492,633 | 127,631 | 50,179 |
Fixed Income 49.1% | ||||||||
Inflation-Protected Bond 3.7% | ||||||||
Schwab U.S. TIPS ETF | 2,761,028 | 142,867 | (169,111) | (26,675) | 61,820 | 2,769,929 | 52,831 | 21,845 |
Intermediate-Term Bond 36.4% | ||||||||
Schwab U.S. Aggregate Bond ETF | 27,013,844 | 1,467,753 | (1,653,191) | (329,776) | 634,911 | 27,133,541 | 587,815 | 345,767 |
Treasury Bond 9.0% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 6,725,428 | 438,124 | (413,551) | (27,133) | 1,639 | 6,724,507 | 139,919 | 93,726 |
36,627,977 | ||||||||
Money Market Funds 3.3% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 2,443,164 | 52,537 | — | — | ( 248) | 2,495,453 | 2,494,954 | 58,591 |
Total Affiliated Underlying Funds (Cost $65,018,021) | $73,839,216 | $8,624,803 | ($12,399,160 ) | $487,182 | $3,681,038 | $74,233,079 | $819,179 | |
Total Investments in Securities (Cost $65,018,021) | $74,233,079 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
REIT — | Real Estate Investment Trust |
TIPS — | Treasury Inflation Protected Securities |
Assets | ||
Investments in securities, at value - affiliated (cost $65,018,021) | $74,233,079 | |
Cash | 404,049 | |
Receivables: | ||
Investments sold | 1,134,065 | |
Dividends | + | 6,262 |
Total assets | 75,777,455 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,043,946 | |
Investment adviser and administrator fees | 29,274 | |
Fund shares redeemed | 9,729 | |
Independent trustees’ fees | 7 | |
Accrued expenses | + | 22,448 |
Total liabilities | 1,105,404 | |
Net assets | $74,672,051 | |
Net Assets by Source | ||
Capital received from investors | $65,797,968 | |
Total distributable earnings | + | 8,874,083 |
Net assets | $74,672,051 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$74,672,051 | 5,785,346 | $12.91 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $819,179 | |
Interest received from securities - unaffiliated | + | 4,929 |
Total investment income | 824,108 | |
Expenses | ||
Investment adviser and administrator fees | 166,712 | |
Professional fees | 11,125 | |
Portfolio accounting fees | 5,621 | |
Independent trustees’ fees | 5,572 | |
Shareholder reports | 2,789 | |
Transfer agent fees | 392 | |
Custodian fees | 237 | |
Other expenses | + | 641 |
Total expenses | – | 193,089 |
Net investment income | 631,019 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 487,182 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 3,681,038 |
Net realized and unrealized gains | 4,168,220 | |
Increase in net assets resulting from operations | $4,799,239 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $631,019 | $1,378,876 | |
Net realized gains (losses) | 487,182 | (785,420 ) | |
Net change in unrealized appreciation (depreciation) | + | 3,681,038 | (14,036,342 ) |
Increase (decrease) in net assets resulting from operations | $4,799,239 | ($13,442,886 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($1,378,374 ) | ($2,780,278 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 66,762 | $856,941 | 799,054 | $10,814,402 | |
Shares reinvested | 106,768 | 1,378,374 | 223,495 | 2,780,278 | |
Shares redeemed | + | (393,736 ) | (5,044,904 ) | (1,206,933 ) | (16,087,896 ) |
Net transactions in fund shares | (220,206 ) | ($2,809,589 ) | (184,384 ) | ($2,493,216 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 6,005,552 | $74,060,775 | 6,189,936 | $92,777,155 | |
Total increase (decrease) | + | (220,206 ) | 611,276 | (184,384 ) | (18,716,380 ) |
End of period | 5,785,346 | $74,672,051 | 6,005,552 | $74,060,775 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
Schwab Emerging Markets Equity ETF | 0.0 %* |
Schwab International Equity ETF | 0.0 %* |
Schwab International Small-Cap Equity ETF | 0.0 %* |
Schwab Short-Term U.S. Treasury ETF | 0.0 %* |
Schwab U.S. Aggregate Bond ETF | 0.4 % |
Schwab U.S. Large-Cap ETF | 0.1 % |
Schwab U.S. REIT ETF | 0.0 %* |
Schwab U.S. Small-Cap ETF | 0.0 %* |
Schwab U.S. TIPS ETF | 0.0 %* |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.1 % |
* | Less than 0.05% |
5. Board of Trustees:
6. Borrowing from Banks:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$8,624,803 | $12,399,160 |
8. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$66,029,132 | $12,160,007 | ($3,956,060) | $8,203,947 |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$1,333,602 | $1,446,676 |
9. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab VIT Balanced with Growth Portfolio (07/25/12) | 8.58% | 8.66% | 4.34% | 5.11% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
VIT Balanced with Growth Composite Index | 8.63% | 9.41% | 4.90% | 5.70% |
Fund Category: Moderate Allocation2 | 8.57% | 9.20% | 5.26% | 6.54% |
Fund Expense Ratio3: 0.54% |
Number of Holdings | 10 |
Portfolio Turnover Rate | 13% 1 |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/232 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/232,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 1/1/23-6/30/234,5 | |
Schwab VIT Balanced with Growth Portfolio | ||||||
Actual Return | 0.49% | 0.55% | $1,000.00 | $1,085.80 | $2.53 | $2.84 |
Hypothetical 5% Return | 0.49% | 0.55% | $1,000.00 | $1,022.36 | $2.46 | $2.76 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $13.93 | $17.24 | $15.68 | $14.59 | $12.66 | $13.80 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.24 | 0.25 | 0.22 | 0.28 | 0.25 |
Net realized and unrealized gains (losses) | 1.08 | (3.00 ) | 1.53 | 1.20 | 1.99 | (1.16 ) |
Total from investment operations | 1.20 | (2.76 ) | 1.78 | 1.42 | 2.27 | (0.91 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.25 ) | (0.25 ) | (0.22 ) | (0.29 ) | (0.26 ) | (0.21 ) |
Distributions from net realized gains | — | (0.30 ) | — | (0.04 ) | (0.08 ) | (0.02 ) |
Total distributions | (0.25 ) | (0.55 ) | (0.22 ) | (0.33 ) | (0.34 ) | (0.23 ) |
Net asset value at end of period | $14.88 | $13.93 | $17.24 | $15.68 | $14.59 | $12.66 |
Total return | 8.58 %2 | (16.00 %) | 11.42 % | 10.09 % | 18.05 % | (6.70 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.49 %4 | 0.49 %5 | 0.49 % | 0.50 % | 0.51 % | 0.50 % |
Gross operating expenses3 | 0.49 %4 | 0.49 %5 | 0.49 % | 0.50 % | 0.51 % | 0.50 % |
Net investment income (loss) | 1.60 %4 | 1.61 % | 1.48 % | 1.56 % | 2.04 % | 1.87 % |
Portfolio turnover rate | 13 %2 | 13 % | 8 % | 21 % | 7 % | 8 % |
Net assets, end of period (x 1,000) | $159,305 | $150,867 | $184,104 | $163,848 | $162,364 | $139,551 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 99.3% OF NET ASSETS | ||||||||
U.S. Stocks 38.2% | ||||||||
Large-Cap 34.0% | ||||||||
Schwab U.S. Large-Cap ETF | $40,716,360 | $11,763,542 | ($5,337,426) | $112,991 | $6,883,696 | $54,139,163 | 1,033,782 | $360,060 |
Small-Cap 4.2% | ||||||||
Schwab U.S. Small-Cap ETF | 9,025,750 | 841,451 | (3,802,461) | 786,597 | (184,451) | 6,666,886 | 152,212 | 52,165 |
60,806,049 | ||||||||
International Stocks 22.2% | ||||||||
Developed Markets 19.0% | ||||||||
Schwab International Equity ETF | 25,641,962 | 1,081,358 | (3,951,526) | 508,566 | 2,224,577 | 25,504,937 | 715,426 | 280,278 |
Schwab International Small-Cap Equity ETF | 4,592,543 | 278,731 | (382,542) | (58,715) | 397,405 | 4,827,422 | 142,950 | 23,587 |
30,332,359 | ||||||||
Emerging Markets 3.2% | ||||||||
Schwab Emerging Markets Equity ETF | 9,039,881 | 532,143 | (4,806,819) | (133,783) | 467,259 | 5,098,681 | 207,011 | 26,366 |
35,431,040 | ||||||||
Real Estate 4.7% | ||||||||
U.S. REITs 4.7% | ||||||||
Schwab U.S. REIT ETF | 9,023,824 | 977,880 | (2,746,566) | 103,862 | 38,124 | 7,397,124 | 378,757 | 124,816 |
Fixed Income 31.0% | ||||||||
Inflation-Protected Bond 1.0% | ||||||||
Schwab U.S. TIPS ETF | 1,463,016 | 173,917 | (58,158) | (9,424) | 28,034 | 1,597,385 | 30,467 | 12,302 |
Intermediate-Term Bond 26.1% | ||||||||
Schwab U.S. Aggregate Bond ETF | 39,532,626 | 3,430,566 | (1,758,284) | (364,865) | 787,045 | 41,627,088 | 901,800 | 517,537 |
Treasury Bond 3.9% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 5,919,096 | 542,918 | (220,584) | (15,875) | (8,177) | 6,217,378 | 129,367 | 84,649 |
49,441,851 | ||||||||
Money Market Funds 3.2% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 4,993,425 | 107,376 | — | — | (506) | 5,100,295 | 5,099,275 | 119,749 |
Total Affiliated Underlying Funds (Cost $124,298,660) | $149,948,483 | $19,729,882 | ($23,064,366 ) | $929,354 | $10,633,006 | $158,176,359 | $1,601,509 | |
Total Investments in Securities (Cost $124,298,660) | $158,176,359 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
REIT — | Real Estate Investment Trust |
TIPS — | Treasury Inflation Protected Securities |
Assets | ||
Investments in securities, at value - affiliated (cost $124,298,660) | $158,176,359 | |
Cash | 919,055 | |
Receivables: | ||
Investments sold | 2,242,910 | |
Dividends | + | 12,799 |
Total assets | 161,351,123 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,906,094 | |
Investment adviser and administrator fees | 62,057 | |
Fund shares redeemed | 54,529 | |
Independent trustees’ fees | 15 | |
Accrued expenses | + | 23,657 |
Total liabilities | 2,046,352 | |
Net assets | $159,304,771 | |
Net Assets by Source | ||
Capital received from investors | $125,468,723 | |
Total distributable earnings | + | 33,836,048 |
Net assets | $159,304,771 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$159,304,771 | 10,705,655 | $14.88 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $1,601,509 | |
Interest received from securities - unaffiliated | + | 12,509 |
Total investment income | 1,614,018 | |
Expenses | ||
Investment adviser and administrator fees | 347,613 | |
Professional fees | 11,571 | |
Independent trustees’ fees | 6,311 | |
Portfolio accounting fees | 5,918 | |
Shareholder reports | 2,782 | |
Transfer agent fees | 393 | |
Custodian fees | 392 | |
Other expenses | + | 877 |
Total expenses | – | 375,857 |
Net investment income | 1,238,161 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 929,354 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 10,633,006 |
Net realized and unrealized gains | 11,562,360 | |
Increase in net assets resulting from operations | $12,800,521 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $1,238,161 | $2,582,585 | |
Net realized gains (losses) | 929,354 | (1,288,507 ) | |
Net change in unrealized appreciation (depreciation) | + | 10,633,006 | (30,730,027 ) |
Increase (decrease) in net assets resulting from operations | $12,800,521 | ($29,435,949 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($2,582,319 ) | ($5,827,177 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 223,508 | $3,286,994 | 590,536 | $8,857,377 | |
Shares reinvested | 173,543 | 2,582,319 | 418,619 | 5,827,177 | |
Shares redeemed | + | (525,469 ) | (7,650,157 ) | (852,798 ) | (12,658,007 ) |
Net transactions in fund shares | (128,418 ) | ($1,780,844 ) | 156,357 | $2,026,547 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 10,834,073 | $150,867,413 | 10,677,716 | $184,103,992 | |
Total increase (decrease) | + | (128,418 ) | 8,437,358 | 156,357 | (33,236,579 ) |
End of period | 10,705,655 | $159,304,771 | 10,834,073 | $150,867,413 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
2. Significant Accounting Policies:
Cash Investments: The fund may invest a portion of its assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the fund.
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
Schwab Emerging Markets Equity ETF | 0.1 % |
Schwab International Equity ETF | 0.1 % |
Schwab International Small-Cap Equity ETF | 0.1 % |
Schwab Short-Term U.S. Treasury ETF | 0.0 %* |
Schwab U.S. Aggregate Bond ETF | 0.6 % |
Schwab U.S. Large-Cap ETF | 0.2 % |
Schwab U.S. REIT ETF | 0.1 % |
Schwab U.S. Small-Cap ETF | 0.0 %* |
Schwab U.S. TIPS ETF | 0.0 %* |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.1 % |
* | Less than 0.05% |
5. Board of Trustees:
6. Borrowing from Banks:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$19,729,882 | $23,064,366 |
8. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$125,837,416 | $37,919,826 | ($5,580,883) | $32,338,943 |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$2,673,357 | $3,153,820 |
9. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Fund: Schwab VIT Growth Portfolio (07/25/12) | 10.40% | 11.33% | 5.27% | 6.25% |
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% |
Bloomberg US Aggregate Bond Index | 2.09% | -0.94% | 0.77% | 1.52% |
VIT Growth Composite Index | 10.36% | 12.08% | 5.78% | 6.83% |
Fund Category: Moderately Aggressive Allocation2 | 9.70% | 11.25% | 5.80% | 7.18% |
Fund Expense Ratio3: 0.55% |
Number of Holdings | 8 |
Portfolio Turnover Rate | 9% 1 |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 1/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/232 | EXPENSES PAID DURING PERIOD 1/1/23-6/30/232,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 1/1/23-6/30/234,5 | |
Schwab VIT Growth Portfolio | ||||||
Actual Return | 0.49% | 0.55% | $1,000.00 | $1,104.00 | $2.56 | $2.87 |
Hypothetical 5% Return | 0.49% | 0.55% | $1,000.00 | $1,022.36 | $2.46 | $2.76 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
1/1/23– 6/30/23* | 1/1/22– 12/31/22 | 1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.69 | $19.83 | $17.52 | $16.24 | $13.75 | $15.28 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.25 | 0.29 | 0.24 | 0.30 | 0.27 |
Net realized and unrealized gains (losses) | 1.51 | (3.68 ) | 2.27 | 1.51 | 2.54 | (1.53 ) |
Total from investment operations | 1.63 | (3.43 ) | 2.56 | 1.75 | 2.84 | (1.26 ) |
Less distributions: | ||||||
Distributions from net investment income | (0.26 ) | (0.29 ) | (0.25 ) | (0.32 ) | (0.27 ) | (0.22 ) |
Distributions from net realized gains | — | (0.42 ) | — | (0.15 ) | (0.08 ) | (0.05 ) |
Total distributions | (0.26 ) | (0.71 ) | (0.25 ) | (0.47 ) | (0.35 ) | (0.27 ) |
Net asset value at end of period | $17.06 | $15.69 | $19.83 | $17.52 | $16.24 | $13.75 |
Total return | 10.40 %2 | (17.24 %) | 14.67 % | 11.34 % | 20.84 % | (8.35 %) |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.49 %4 | 0.49 %5 | 0.49 % | 0.50 % | 0.51 % | 0.50 % |
Gross operating expenses3 | 0.49 %4 | 0.49 %5 | 0.49 % | 0.50 % | 0.51 % | 0.50 % |
Net investment income (loss) | 1.46 %4 | 1.50 % | 1.53 % | 1.55 % | 1.98 % | 1.78 % |
Portfolio turnover rate | 9 %2 | 13 % | 13 % | 18 % | 5 % | 9 % |
Net assets, end of period (x 1,000) | $157,913 | $147,720 | $187,038 | $165,495 | $160,381 | $139,844 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Not annualized. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY | VALUE AT 12/31/22 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 6/30/23 | BALANCE OF SHARES HELD AT 6/30/23 | DISTRIBUTIONS RECEIVED(a) |
AFFILIATED UNDERLYING FUNDS 99.1% OF NET ASSETS | ||||||||
U.S. Stocks 45.9% | ||||||||
Large-Cap 39.6% | ||||||||
Schwab U.S. Large-Cap ETF | $51,728,400 | $7,635,215 | ($5,306,179) | $127,415 | $8,323,300 | $62,508,151 | 1,193,587 | $432,240 |
Small-Cap 6.3% | ||||||||
Schwab U.S. Small-Cap ETF | 10,311,051 | 794,792 | (2,016,473) | 10,232 | 813,696 | 9,913,298 | 226,331 | 67,984 |
72,421,449 | ||||||||
International Stocks 30.1% | ||||||||
Developed Markets 24.7% | ||||||||
Schwab International Equity ETF | 31,021,032 | 1,652,816 | (2,766,118) | 269,735 | 3,027,409 | 33,204,874 | 931,413 | 362,389 |
Schwab International Small-Cap Equity ETF | 7,432,081 | 323,239 | (2,474,977) | 183,245 | 387,267 | 5,850,855 | 173,256 | 28,318 |
39,055,729 | ||||||||
Emerging Markets 5.4% | ||||||||
Schwab Emerging Markets Equity ETF | 11,803,377 | 900,041 | (4,626,571) | (195,902) | 647,956 | 8,528,901 | 346,281 | 44,001 |
47,584,630 | ||||||||
Real Estate 6.1% | ||||||||
U.S. REITs 6.1% | ||||||||
Schwab U.S. REIT ETF | 8,847,185 | 1,040,275 | (444,797) | (1,419) | 142,361 | 9,583,605 | 490,712 | 144,441 |
Fixed Income 14.0% | ||||||||
Intermediate-Term Bond 14.0% | ||||||||
Schwab U.S. Aggregate Bond ETF | 20,787,093 | 1,939,500 | (811,277) | (166,982) | 384,786 | 22,133,120 | 479,487 | 272,800 |
Money Market Funds 3.0% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares, 5.10% (b) | 4,712,757 | 101,341 | — | — | (477) | 4,813,621 | 4,812,658 | 113,019 |
Total Affiliated Underlying Funds (Cost $109,471,365) | $146,642,976 | $14,387,219 | ($18,446,392 ) | $226,324 | $13,726,298 | $156,536,425 | $1,465,192 | |
Total Investments in Securities (Cost $109,471,365) | $156,536,425 |
(a) | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
(b) | The rate shown is the annualized 7-day yield. |
ETF — | Exchange-traded fund |
REIT — | Real Estate Investment Trust |
Assets | ||
Investments in securities, at value - affiliated (cost $109,471,365) | $156,536,425 | |
Cash | 1,029,978 | |
Receivables: | ||
Investments sold | 1,715,652 | |
Dividends | + | 12,078 |
Total assets | 159,294,133 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,259,375 | |
Investment adviser and administrator fees | 61,423 | |
Fund shares redeemed | 37,357 | |
Independent trustees’ fees | 17 | |
Accrued expenses | + | 23,244 |
Total liabilities | 1,381,416 | |
Net assets | $157,912,717 | |
Net Assets by Source | ||
Capital received from investors | $111,587,056 | |
Total distributable earnings | + | 46,325,661 |
Net assets | $157,912,717 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$157,912,717 | 9,257,762 | $17.06 | ||
For the period January 1, 2023 through June 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $1,465,192 | |
Interest received from securities - unaffiliated | + | 14,226 |
Total investment income | 1,479,418 | |
Expenses | ||
Investment adviser and administrator fees | 341,840 | |
Professional fees | 11,595 | |
Independent trustees’ fees | 6,293 | |
Portfolio accounting fees | 5,895 | |
Shareholder reports | 2,966 | |
Transfer agent fees | 392 | |
Custodian fees | 340 | |
Other expenses | + | 870 |
Total expenses | – | 370,191 |
Net investment income | 1,109,227 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 226,324 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 13,726,298 |
Net realized and unrealized gains | 13,952,622 | |
Increase in net assets resulting from operations | $15,061,849 |
OPERATIONS | |||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||
Net investment income | $1,109,227 | $2,393,593 | |
Net realized gains (losses) | 226,324 | (984,395 ) | |
Net change in unrealized appreciation (depreciation) | + | 13,726,298 | (33,654,209 ) |
Increase (decrease) in net assets resulting from operations | $15,061,849 | ($32,245,011 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($2,393,004 ) | ($6,624,352 ) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 119,582 | $2,012,459 | 618,939 | $11,110,432 | |
Shares reinvested | 140,270 | 2,393,004 | 425,729 | 6,624,352 | |
Shares redeemed | + | (415,927 ) | (6,881,579 ) | (1,060,800 ) | (18,183,469 ) |
Net transactions in fund shares | (156,075 ) | ($2,476,116 ) | (16,132 ) | ($448,685 ) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/23-6/30/23 | 1/1/22-12/31/22 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 9,413,837 | $147,719,988 | 9,429,969 | $187,038,036 | |
Total increase (decrease) | + | (156,075 ) | 10,192,729 | (16,132 ) | (39,318,048 ) |
End of period | 9,257,762 | $157,912,717 | 9,413,837 | $147,719,988 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
2. Significant Accounting Policies:
Cash Investments: The fund may invest a portion of its assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the fund.
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
Schwab Emerging Markets Equity ETF | 0.1 % |
Schwab International Equity ETF | 0.1 % |
Schwab International Small-Cap Equity ETF | 0.2 % |
Schwab U.S. Aggregate Bond ETF | 0.3 % |
Schwab U.S. Large-Cap ETF | 0.2 % |
Schwab U.S. REIT ETF | 0.2 % |
Schwab U.S. Small-Cap ETF | 0.1 % |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.1 % |
5. Board of Trustees:
6. Borrowing from Banks:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$14,387,219 | $18,446,392 |
8. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$111,445,931 | $47,881,895 | ($2,791,401) | $45,090,494 |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$2,845,703 | $3,778,649 |
9. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Officers of the Trust (continued) | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Chief Investment Officer (Jan. 2020 – present) and Senior Vice President (Jan. 2020 – Mar. 2023) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Managing Director (Mar. 2023 – present), Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to this semi-annual report.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: 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, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Dana Smith, 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 the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting 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 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
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 Annuity Portfolios
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | August 16, 2023 |
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/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | August 16, 2023 | |
By: | /s/ Dana Smith | |
Dana Smith Chief Financial Officer | ||
Date: | August 16, 2023 |