-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VL4x6rSFLh6//6gSCwVYwakctBb4VsZukFXEIMWSRGICYaAbG4xr2nvniLwBIViJ znwBMrTlX81bhC8uIxMN3Q== 0000950134-04-014003.txt : 20040922 0000950134-04-014003.hdr.sgml : 20040922 20040922155330 ACCESSION NUMBER: 0000950134-04-014003 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040731 FILED AS OF DATE: 20040922 DATE AS OF CHANGE: 20040922 EFFECTIVENESS DATE: 20040922 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB INVESTMENTS CENTRAL INDEX KEY: 0000869365 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06200 FILM NUMBER: 041041264 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4156277000 MAIL ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 N-Q 1 f01769nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-6200 Schwab Investments - Schwab 1000 Fund ----------------------------------------------- (Exact name of registrant as specified in charter) 101 Montgomery Street, San Francisco, California 94104 ------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Evelyn Dilsaver Schwab Capital Trust 101 Montgomery Street, San Francisco, California 94104 ----------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (415) 627-7000 Date of fiscal year end: October 31 Date of reporting period: May 1, 2004 - July 31, 2004 Item 1. Schedule of Investments. SCHWAB INVESTMENTS SCHWAB 1000 FUND(R) PORTFOLIO HOLDINGS as of July 31, 2004, unaudited The following is the portfolio holdings at 7/31/04. For more information about the securities, please refer to the fund's semiannual or annual shareholder reports. The symbols below are designated to certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten Holding o Non-income producing security = Collateral for open futures contracts / Issuer is affiliated with the fund's adviser > Security is valued at fair value
COST VALUE HOLDINGS BY CATEGORY ($x1,000) ($x1,000) - -------------------------------------------------------------------------------- 99.7% COMMON STOCK 3,978,970 6,257,463 0.0% U.S. TREASURY OBLIGATION 250 250 - -------------------------------------------------------------------------------- 99.7% TOTAL INVESTMENTS 3,979,220 6,257,713 16.0% COLLATERAL INVESTED FOR SECURITIES ON LOAN 1,002,749 1,002,749 (15.7)% OTHER ASSETS AND LIABILITIES, NET (986,764) - -------------------------------------------------------------------------------- 100.0% TOTAL NET ASSETS 6,273,698
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) COMMON STOCK 99.7% of net assets AEROSPACE / DEFENSE 1.7% --------------------------------------------------------------------------- The Boeing Co. 453,182 22,999 Crane Co. 31,950 890 General Dynamics Corp. 106,000 10,475 Goodrich Corp. 62,992 2,037 L-3 Communications Holdings, Inc. 56,700 3,467 Lockheed Martin Corp. 241,684 12,807 Northrop Grumman Corp. 196,794 10,351 Raytheon Co. 224,900 7,545 Rockwell Automation, Inc. 100,100 3,745 Rockwell Collins, Inc. 94,900 3,247 Textron, Inc. 72,900 4,469 United Technologies Corp. 275,327 25,743 ----------- 107,775 AIR TRANSPORTATION 1.0% --------------------------------------------------------------------------- o AMR Corp. 85,500 721 FedEx Corp. 159,960 13,097 o JetBlue Airways Corp. 54,500 1,298 Sabre Holdings Corp., Class A 77,000 1,966 Southwest Airlines Co. 422,225 6,109 United Parcel Service, Inc., Class B 593,900 42,737 ----------- 65,928 ALCOHOLIC BEVERAGES 0.5% --------------------------------------------------------------------------- Adolph Coors Co., Class B 19,500 1,341 Anheuser-Busch Cos., Inc. 430,400 22,338 Brown-Forman Corp., Class B 64,956 3,021 o Constellation Brands, Inc., Class A 56,500 2,140 ----------- 28,840 APPAREL 0.4% --------------------------------------------------------------------------- o Coach, Inc. 99,628 4,263 Jones Apparel Group, Inc. 67,700 2,529 Liz Claiborne, Inc. 58,600 2,121 Nike, Inc., Class B 140,700 10,230 Reebok International Ltd. 31,600 1,076 o Timberland Co., Class A 18,700 1,085 VF Corp. 57,900 2,896 ----------- 24,200 AUTOMOTIVE PRODUCTS / MOTOR VEHICLES 1.2% --------------------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. 28,100 965 ArvinMeritor, Inc. 36,800 731 BorgWarner, Inc. 29,400 1,387 Carlisle Cos., Inc. 16,600 1,054 Cooper Tire & Rubber Co. 39,700 931 Cummins, Inc. 22,600 1,569 Dana Corp. 79,789 1,539 Danaher Corp. 164,600 8,337 Delphi Corp. 300,600 2,859 Donaldson Co., Inc. 46,600 1,241 Eaton Corp. 81,400 5,262 Ford Motor Co. 946,570 13,934 General Motors Corp. 300,534 12,965 Gentex Corp. 41,200 1,475 Genuine Parts Co. 93,275 3,519 Harley-Davidson, Inc. 162,400 9,723 Lear Corp. 36,300 2,001 o Navistar International Corp. 36,800 1,323 Oshkosh Truck Corp. 18,700 991 Polaris Industries, Inc. 23,200 1,109 Thor Industries, Inc. 30,800 964 ----------- 73,879 BANKS 7.7% --------------------------------------------------------------------------- AmSouth Bancorp. 188,275 4,618 Associated Banc-Corp. 58,987 1,776 Bancorpsouth, Inc. 41,900 885 (8) Bank of America Corp. 1,090,918 92,739 Bank of Hawaii Corp. 29,950 1,346 The Bank of New York Co., Inc. 416,900 11,978 Banknorth Group, Inc. 92,200 2,942 BB&T Corp. 292,781 11,339 City National Corp. 26,300 1,696 The Colonial BancGroup, Inc. 66,800 1,289 Comerica, Inc. 93,974 5,495 Commerce Bancorp, Inc. N.J. 40,600 2,044 Commerce Bancshares, Inc. 36,690 1,710 Compass Bancshares, Inc. 65,212 2,875
1 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) Cullen/Frost Bankers, Inc. 27,900 1,200 Doral Financial Corp. 57,900 2,273 Fifth Third Bancorp 302,830 14,948 First Horizon National Corp. 67,400 2,922 First Midwest Bancorp, Inc. Illinois 24,900 841 FirstMerit Corp. 45,300 1,175 FNB Corp. 24,740 498 Fulton Financial Corp. 60,991 1,251 Greater Bay Bancorp 28,100 740 Hibernia Corp., Class A 83,200 2,105 Hudson City Bancorp, Inc. 102,400 3,549 Hudson United Bancorp 24,100 825 Huntington Bancshares, Inc. 122,735 3,002 J.P. Morgan Chase & Co. 1,905,076 71,116 KeyCorp, Inc. 223,246 6,738 M&T Bank Corp. 64,301 5,995 Marshall & Ilsley Corp. 121,370 4,662 Mellon Financial Corp. 232,688 6,394 Mercantile Bankshares Corp. 42,775 1,942 National City Corp. 354,750 12,948 National Commerce Financial Corp. 110,050 3,577 North Fork Bancorp., Inc. 91,200 3,561 Northern Trust Corp. 118,150 4,741 Park National Corp. 7,400 871 Peoples Bank-Bridgeport 49,500 1,560 PNC Financial Services Group, Inc. 151,530 7,667 Popular, Inc. 142,400 3,238 Regions Financial Corp. 248,344 7,373 Sky Financial Group, Inc. 49,530 1,156 The South Financial Group, Inc. 31,700 859 SouthTrust Corp. 177,974 6,904 State Street Corp. 179,100 7,667 SunTrust Banks, Inc. 150,956 9,956 Synovus Financial Corp. 161,962 4,125 TCF Financial Corp. 38,000 2,295 Trustmark Corp. 31,300 900 U.S. Bancorp 1,014,453 28,709 UCBH Holdings, Inc. 24,200 946 UnionBanCal Corp. 78,100 4,534 Valley National Bancorp 52,918 1,317 Wachovia Corp. 708,120 31,377 Wells Fargo & Co. 906,232 52,027 Westamerica Bancorp. 17,600 893 WestCorp., Inc. 27,300 1,135 Whitney Holding Corp. 21,700 887 Wilmington Trust Corp. 35,300 1,232 Zions Bancorp. 48,300 2,922 ----------- 480,285 BUSINESS MACHINES & SOFTWARE 8.4% --------------------------------------------------------------------------- o 3Com Corp. 200,150 987 Adobe Systems, Inc. 125,500 5,294 o Apple Computer, Inc. 198,800 6,429 o Ascential Software Corp. 31,900 392 Autodesk, Inc. 59,900 2,408 o Avocent Corp. 25,200 754 o BEA Systems, Inc. 217,600 1,412 o BMC Software, Inc. 121,300 1,902 o Cisco Systems, Inc. 3,628,300 75,686 o Compuware Corp. 206,100 1,018 o Comverse Technology, Inc. 103,500 1,766 o Dell, Inc. 1,361,800 48,303 Diebold, Inc. 39,018 1,799 o EMC Corp. 1,294,000 14,195 Fair Isaac Corp. 38,925 1,112 o Foundry Networks, Inc. 70,000 718 o Gateway, Inc. 201,400 906 Hewlett-Packard Co. 1,634,940 32,944 IKON Office Solutions, Inc. 78,600 933 o Integrated Device Technology, Inc. 56,300 644 International Business Machines Corp. 902,000 78,537 o Juniper Networks, Inc. 278,700 6,399 o Lexmark International, Inc., Class A 69,000 6,107 o Maxtor Corp. 131,700 616 Microchip Technology, Inc. 111,200 3,221 =(2) Microsoft Corp. 5,783,400 164,596 o NCR Corp. 50,751 2,356 o Network Appliance, Inc. 185,000 3,572 o Novell, Inc. 200,400 1,371 o Oracle Corp. 2,804,914 29,480 o Peregrine Systems, Inc. 2,104 38 Pitney Bowes, Inc. 125,400 5,292 o Sandisk Corp. 85,000 2,067 >o Seagate Escrow Security 126,560 36 o Siebel Systems, Inc. 266,100 2,145 o Storage Technology Corp. 59,400 1,482 o Sun Microsystems, Inc. 1,757,600 6,943 o Sybase, Inc. 51,900 756 o Tech Data Corp. 30,400 1,139 o The Titan Corp. 43,700 523 Total System Services, Inc. 105,500 2,399 o Unisys Corp. 175,750 1,800 o Xerox Corp. 424,750 5,887 ----------- 526,364 BUSINESS SERVICES 4.4% --------------------------------------------------------------------------- o Affiliated Computer Services, Inc., Class A 69,700 3,617 o Allied Waste Industries, Inc. 171,865 1,588 o Apollo Group, Inc., Class A 94,550 7,900 Aramark Corp., Class B 53,800 1,443 Automatic Data Processing, Inc. 316,800 13,299 o BearingPoint, Inc. 104,400 862 o The BISYS Group, Inc. 63,500 867 o Brocade Communications Systems, Inc. 138,200 666 o Career Education Corp. 53,700 1,816 CDW Corp. 44,600 2,868 Cendant Corp. 545,448 12,480 o Ceridian Corp. 80,200 1,444 Certegy, Inc. 34,800 1,319 o Checkfree Corp. 48,300 1,451
2 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o ChoicePoint, Inc. 46,966 1,973 Cintas Corp. 91,700 3,848 o Citrix Systems, Inc. 88,000 1,551 o Cognizant Technology Solutions Corp., Class A 70,200 1,934 Computer Associates International, Inc. 312,579 7,890 o Computer Sciences Corp. 100,496 4,748 o Convergys Corp. 76,800 1,017 o Copart, Inc. 47,700 1,061 o Corinthian Colleges, Inc. 47,400 887 Corporate Executive Board Co. 20,000 1,134 Deluxe Corp. 27,100 1,194 o DeVry, Inc. 37,600 874 o DST Systems, Inc. 44,800 2,041 o Dun & Bradstreet Corp. 39,100 2,195 o Earthlink, Inc. 85,700 846 o eBay, Inc. 351,500 27,533 o Education Management Corp. 38,900 1,080 Electronic Data Systems Corp. 257,600 4,760 Equifax, Inc. 74,700 1,802 First Data Corp. 466,943 20,830 o Fiserv, Inc. 103,889 3,559 Friedman Billings Ramsey Group, Inc., Class A 75,500 1,242 o Gartner, Inc., Class A 69,400 871 Global Payments, Inc. 20,000 913 GTECH Holdings Corp. 31,700 1,343 H&R Block, Inc. 95,600 4,697 o IAC/InterActiveCorp 372,727 10,175 o ICOS Corp. 33,800 813 IMS Health, Inc. 128,500 3,115 o Interpublic Group of Cos., Inc. 222,350 2,844 o Intuit, Inc. 106,400 3,984 o Invitrogen Corp. 27,500 1,443 o Iron Mountain, Inc. 68,550 2,212 o ITT Educational Services, Inc. 24,300 774 Jack Henry & Associates, Inc. 47,900 922 o Jacobs Engineering Group, Inc. 29,800 1,191 o Lamar Advertising Co., Class A 46,600 1,874 Manpower, Inc. 46,600 2,029 o McAfee, Inc. 86,600 1,557 o Mercury Interactive Corp. 48,200 1,762 o Monster Worldwide, Inc. 60,500 1,336 National Instruments Corp. 41,700 1,211 Omnicom Group, Inc. 101,900 7,339 Paychex, Inc. 202,342 6,214 o PeopleSoft, Inc. 201,106 3,624 o Perot Systems Corp., Class A 59,700 753 o Pixar, Inc. 29,600 2,020 o Polycom, Inc. 53,300 1,028 o Red Hat, Inc. 94,600 1,620 Republic Services, Inc. 84,900 2,428 The Reynolds & Reynolds Co., Class A 36,000 796 Robert Half International, Inc. 91,800 2,554 The ServiceMaster Co. 158,400 1,850 o Sirius Satellite Radio, Inc. 661,600 1,674 o Stericycle, Inc. 22,600 1,107 o Sungard Data Systems, Inc. 154,200 3,594 o Symantec Corp. 167,200 7,818 o Synopsys, Inc. 83,400 2,109 o VeriSign, Inc. 129,635 2,270 o Veritas Software Corp. 228,279 4,351 Viad Corp. 11,825 283 Waste Management, Inc. 314,375 8,847 o WebMD Corp. 164,700 1,341 o Yahoo!, Inc. 712,612 21,949 ----------- 276,254 CHEMICALS 1.4% --------------------------------------------------------------------------- Air Products & Chemicals, Inc. 121,900 6,308 Airgas, Inc. 39,700 864 o Bio-Rad Laboratories, Inc., Class A 13,600 713 Cabot Corp. 33,200 1,264 o Celgene Corp. 43,500 2,320 Cytec Industries, Inc. 21,000 979 Dow Chemical Co. 494,752 19,736 E.I. du Pont de Nemours & Co. 534,389 22,909 Eastman Chemical Co. 41,425 1,851 Ecolab, Inc. 138,300 4,218 Lubrizol Corp. 27,700 959 Lyondell Chemical Co. 94,900 1,725 Monsanto Co. 140,548 5,096 PPG Industries, Inc. 91,100 5,370 Praxair, Inc. 174,400 6,880 Rohm & Haas Co. 119,414 4,681 RPM International, Inc. 62,100 935 Sigma-Aldrich Corp. 37,100 2,131 Valspar Corp. 27,100 1,328 ----------- 90,267 CONSTRUCTION 0.7% --------------------------------------------------------------------------- Centex Corp. 66,600 2,825 D.R. Horton, Inc. 126,433 3,493 Florida Rock Industries, Inc. 23,100 992 Fluor Corp. 44,100 2,009 o Hovnanian Enterprises, Inc., Class A 32,400 1,005 KB Home 24,900 1,595 Lafarge North America, Inc. 37,000 1,550 Lennar Corp., Class A 84,400 3,602 Martin Marietta Materials, Inc. 26,200 1,146 Masco Corp. 242,900 7,345 MDC Holdings, Inc. 17,369 1,166 o NVR, Inc. 3,500 1,631 Pulte Homes, Inc. 66,500 3,633 The Ryland Group, Inc. 13,300 1,030 The Sherwin-Williams Co. 80,700 3,259 Standard-Pacific Corp. 17,700 822 The Stanley Works 43,400 1,840 o Toll Brothers, Inc. 39,200 1,558 Vulcan Materials Co. 54,600 2,600
3 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o West Corp. 36,100 905 ----------- 44,006 CONSUMER DURABLES 0.3% --------------------------------------------------------------------------- Black & Decker Corp. 41,650 2,912 Ethan Allen Interiors, Inc. 20,000 743 Furniture Brands International, Inc. 30,000 689 Hillenbrand Industries, Inc. 33,100 1,880 Leggett & Platt, Inc. 103,000 2,786 Maytag Corp. 42,050 862 o Mohawk Industries, Inc. 35,639 2,621 Newell Rubbermaid, Inc. 147,209 3,180 o Service Corp. International 161,700 1,027 o United Rentals, Inc. 41,400 821 Whirlpool Corp. 37,400 2,335 ----------- 19,856 CONTAINERS 0.2% --------------------------------------------------------------------------- Ball Corp. 30,200 2,180 Bemis Co. 56,800 1,504 o Crown Holdings, Inc. 88,600 898 o Owens-Illinois, Inc. 79,300 1,166 o Pactiv Corp. 84,350 1,989 o Sealed Air Corp. 45,499 2,158 Sonoco Products Co. 52,141 1,351 ----------- 11,246 ELECTRONICS 5.1% --------------------------------------------------------------------------- Acxiom Corp. 45,600 1,003 o ADC Telecommunications, Inc. 431,800 1,036 o Adelphia Communications, Class A 75,707 33 o Advanced Fibre Communications, Inc. 46,700 783 o Advanced Micro Devices, Inc. 186,900 2,334 o Agere Systems, Inc., Class A 895,900 1,111 o Agilent Technologies, Inc. 257,000 6,119 o Alliant Techsystems, Inc. 20,700 1,303 o Altera Corp. 203,100 4,229 American Power Conversion Corp. 106,600 1,610 o Amkor Technology, Inc. 93,300 378 o Amphenol Corp., Class A 46,800 1,471 Analog Devices, Inc. 199,000 7,900 o Andrew Corp. 82,400 894 o Applied Materials, Inc. 904,000 15,341 o Applied Micro Circuits Corp. 164,700 593 o Arrow Electronics, Inc. 60,500 1,432 o Atmel Corp. 252,900 1,082 o Avid Technology, Inc. 16,500 771 o Avnet, Inc. 64,300 1,249 AVX Corp. 93,200 1,162 o Broadcom Corp., Class A 164,400 5,813 o Cadence Design Systems, Inc. 141,050 1,900 o CIENA Corp. 254,200 717 o Cymer, Inc. 19,300 553 o Cypress Semiconductor Corp. 64,600 733 o Emulex Corp. 44,500 480 o Energizer Holdings, Inc. 45,300 1,726 o Fairchild Semiconductor International, Inc., Class A 63,200 928 o Getty Images, Inc. 30,300 1,655 Harman International Industries, Inc. 35,200 3,018 Harris Corp. 35,800 1,700 o Integrated Circuit Systems, Inc. 38,600 923 (10) Intel Corp. 3,473,600 84,686 o Interactive Data Corp. 49,800 872 o International Rectifier Corp. 34,400 1,349 Intersil Corp., Class A 74,600 1,370 ITT Industries, Inc. 49,400 3,950 o Jabil Circuit, Inc. 107,100 2,329 o JDS Uniphase Corp. 769,755 2,656 o KLA-Tencor Corp. 104,400 4,302 o Lam Research Corp. 69,900 1,667 Linear Technology Corp. 167,300 6,541 o LSI Logic Corp. 203,400 1,035 o Lucent Technologies, Inc. 2,265,519 6,910 Maxim Integrated Products, Inc. 175,829 8,457 o Micron Technology, Inc. 327,600 4,432 o MKS Instruments, Inc. 27,800 409 Molex, Inc. 102,121 2,957 Motorola, Inc. 1,246,886 19,863 o National Semiconductor Corp. 193,400 3,317 o Novellus Systems, Inc. 81,800 2,209 o Nvidia Corp. 86,900 1,338 o Omnivision Technologies, Inc. 29,200 344 PerkinElmer, Inc. 68,100 1,197 o QLogic Corp. 49,700 1,215 Qualcomm, Inc. 431,100 29,780 o Rambus, Inc. 52,600 882 o RF Micro Devices, Inc. 99,500 589 o Sanmina-SCI Corp. 277,452 2,037 Scientific-Atlanta, Inc. 81,400 2,503 o Semtech Corp. 39,600 786 o Silicon Laboratories, Inc. 26,700 942 o Solectron Corp. 514,500 2,830 Symbol Technologies, Inc. 123,770 1,620 Tektronix, Inc. 45,400 1,380 o Tellabs, Inc. 223,900 1,995 o Teradyne, Inc. 102,600 1,755 Texas Instruments, Inc. 928,155 19,798 o Thermo Electron Corp. 87,384 2,248 o Varian Semiconductor Equipment Associates, Inc. 19,200 574 o Vishay Intertechnology, Inc. 86,150 1,335 o Waters Corp. 65,100 2,857 o Western Digital Corp. 110,500 775 o Western Wireless Corp., Class A 45,400 1,198 o Xilinx, Inc. 185,600 5,462
4 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o Zebra Technologies Corp., Class A 25,350 2,095 ----------- 318,826 ENERGY: RAW MATERIALS 1.6% --------------------------------------------------------------------------- Anadarko Petroleum Corp. 134,680 8,053 Apache Corp. 173,820 8,088 Arch Coal, Inc. 28,300 956 Baker Hughes, Inc. 181,520 7,315 o BJ Services Co. 85,000 4,221 Burlington Resources, Inc. 212,634 8,116 o Cooper Cameron Corp. 28,900 1,476 Devon Energy Corp. 126,516 8,792 ENSCO International, Inc. 80,300 2,418 EOG Resources, Inc. 61,800 3,927 o FMC Technologies, Inc. 35,600 1,068 o Forest Oil Corp. 28,700 812 o Grant Prideco, Inc. 65,200 1,232 Halliburton Co. 236,960 7,523 Massey Energy Co. 40,500 1,120 o Noble Corp. 71,800 2,780 Noble Energy, Inc. 30,500 1,687 Occidental Petroleum Corp. 208,200 10,258 Peabody Energy Corp. 33,100 1,860 o Reliant Energy, Inc. 158,100 1,562 o Rowan Cos., Inc. 56,000 1,368 o Smith International, Inc. 53,800 3,135 Tidewater, Inc. 32,500 986 Valero Energy Corp. 68,488 5,131 o Weatherford International Ltd. 69,900 3,270 Western Gas Resources, Inc. 35,800 1,206 ----------- 98,360 FOOD & AGRICULTURE 3.5% --------------------------------------------------------------------------- o 7-Eleven, Inc. 59,900 1,027 Archer-Daniels-Midland Co. 346,836 5,352 Campbell Soup Co. 220,200 5,635 The Coca-Cola Co. 1,307,500 57,347 Coca-Cola Enterprises, Inc. 243,700 4,971 ConAgra Foods, Inc. 289,959 7,539 o Dean Foods Co. 83,750 3,097 o Del Monte Foods Co. 111,695 1,177 General Mills, Inc. 202,250 9,081 H.J. Heinz Co. 188,700 6,961 Hershey Foods Corp. 139,400 6,753 Hormel Foods Corp. 74,400 2,208 The J.M. Smuckers Co. 26,800 1,120 Kellogg Co. 220,900 9,203 Kraft Foods, Inc., Class A 150,100 4,586 McCormick & Co., Inc. 74,500 2,665 The Pepsi Bottling Group, Inc. 140,900 3,924 PepsiAmericas, Inc. 77,500 1,455 PepsiCo, Inc. 919,060 45,953 o Performance Food Group Co. 24,600 610 Sara Lee Corp. 425,900 9,353 o The Scotts Co., Class A 17,200 1,049 o Smithfield Foods, Inc. 59,400 1,683 Supervalu, Inc. 72,000 2,056 Sysco Corp. 345,900 11,916 Tootsie Roll Industries, Inc. 28,561 837 Tyson Foods, Inc., Class A 188,082 3,585 Wm. Wrigley Jr. Co. 120,500 7,278 ----------- 218,421 GOLD 0.1% --------------------------------------------------------------------------- Newmont Mining Corp. 215,238 8,711 HEALTHCARE / DRUGS & MEDICINE 12.4% --------------------------------------------------------------------------- Abbott Laboratories 839,100 33,019 o Accredo Health, Inc. 25,700 833 Allergan, Inc. 72,000 5,446 AmerisourceBergen Corp. 59,995 3,243 o Amgen, Inc. 680,640 38,715 o Amylin Pharmaceuticals, Inc. 50,200 1,034 o Andrx Corp. 38,700 1,004 o Anthem, Inc. 74,100 6,111 o Apogent Technologies, Inc. 48,500 1,576 Applied Biosystems Group - Applera Corp. 111,600 2,309 o Barr Pharmaceuticals, Inc. 54,225 1,863 Bausch & Lomb, Inc. 28,200 1,737 Baxter International, Inc. 329,300 9,902 Beckman Coulter, Inc. 33,000 1,821 Becton Dickinson & Co. 136,300 6,437 o Biogen Idec, Inc. 181,660 10,900 Biomet, Inc. 137,100 6,031 o Boston Scientific Corp. 439,084 16,799 Bristol-Myers Squibb Co. 1,039,700 23,809 C.R. Bard, Inc. 55,600 3,069 Cardinal Health, Inc. 234,156 10,420 o Caremark Rx, Inc. 245,856 7,499 o Cephalon, Inc. 29,900 1,511 o Charles River Laboratories International, Inc. 24,600 1,109 o Chiron Corp. 100,612 4,611 o Community Health Systems, Inc. 52,900 1,302 Cooper Cos., Inc. 16,900 1,005 o Covance, Inc. 33,300 1,222 o Coventry Health Care, Inc. 48,300 2,469 o Cytyc Corp. 58,900 1,424 o Dade Behring Holdings, Inc. 21,900 1,088 o DaVita, Inc. 51,150 1,553 Dentsply International, Inc. 42,550 2,069 o Edwards Lifesciences Corp. 31,700 1,115 Eli Lilly & Co. 601,568 38,332 o Endo Pharmaceutical Holdings, Inc. 70,700 1,357 o Express Scripts, Inc. 42,100 2,762 o First Health Group Corp. 50,700 711 o Forest Laboratories, Inc. 198,100 9,962 o Gen-Probe, Inc. 25,800 965 o Genzyme Corp. 120,200 6,164 o Gilead Sciences 109,100 7,052 Guidant Corp. 166,772 9,226 HCA, Inc. 254,972 9,855 Health Management Associates, Inc., Class A 128,728 2,582 o Health Net, Inc. 60,900 1,469
5 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o Henry Schein, Inc. 23,400 1,570 o Hospira, Inc. 83,260 2,157 o Human Genome Sciences, Inc. 69,400 696 o Humana, Inc. 86,500 1,566 o Idexx Laboratories, Inc. 18,700 942 o ImClone Systems, Inc. 40,300 2,374 o Inamed Corp. 18,800 1,019 o IVAX Corp. 105,325 2,512 (9) Johnson & Johnson 1,591,420 87,958 o King Pharmaceuticals, Inc. 129,266 1,459 o Laboratory Corp. of America Holdings 76,700 3,004 o Lincare Holdings, Inc. 52,700 1,683 Manor Care, Inc. 47,800 1,494 o Martek Biosciences Corp. 14,800 700 McKesson Corp. 156,228 5,026 o Medco Health Solutions, Inc. 144,922 4,391 Medicis Pharmaceutical Corp., Class A 29,400 1,052 o Medimmune, Inc. 132,750 3,059 Medtronic, Inc. 648,900 32,231 Merck & Co., Inc. 1,192,108 54,062 o Millennium Pharmaceuticals, Inc. 161,620 1,797 Mylan Laboratories, Inc. 144,312 2,139 o NBTY, Inc. 35,700 777 o Neurocrine Biosciences, Inc. 19,000 885 Omnicare, Inc. 55,000 1,555 o Pacificare Health Systems, Inc. 45,000 1,376 o Par Pharmaceutical Cos., Inc. 18,300 689 o Patterson Cos., Inc. 36,700 2,694 (4) Pfizer, Inc. 4,088,812 130,678 o Pharmaceutical Product Development, Inc. 30,100 1,055 o Protein Design Labs, Inc. 50,300 815 Quest Diagnostics 55,700 4,572 o Renal Care Group, Inc. 39,150 1,247 o Respironics, Inc. 18,800 1,048 Schering-Plough Corp. 790,600 15,385 Select Medical Corp. 52,000 668 o Sepracor, Inc. 45,600 2,096 o St. Jude Medical, Inc. 92,500 6,302 o Steris Corp. 37,300 767 Stryker Corp. 214,000 10,203 o Techne Corp. 22,100 880 o Tenet Healthcare Corp. 249,409 2,788 o Triad Hospitals, Inc. 40,500 1,379 UnitedHealth Group, Inc. 357,181 22,467 Universal Health Services, Class B 29,200 1,329 Valeant Pharmaceuticals International 44,600 781 o Varian Medical Systems, Inc. 36,400 2,512 o Watson Pharmaceuticals, Inc. 58,000 1,462 o WellPoint Health Networks, Inc. 81,950 8,285 Wyeth 714,700 25,300 o Zimmer Holdings, Inc. 129,700 9,897 ----------- 777,275 HOUSEHOLD PRODUCTS 2.1% --------------------------------------------------------------------------- Alberto-Culver Co., Class B 47,250 2,203 Avon Products, Inc. 252,800 10,873 Church & Dwight Co., Inc. 21,700 958 Clorox Co. 113,300 5,639 Colgate-Palmolive Co. 285,900 15,210 The Estee Lauder Cos., Inc., Class A 65,200 2,862 The Gillette Co. 540,710 21,077 International Flavors & Fragrances, Inc. 50,200 1,834 = Procter & Gamble Co. 1,385,000 72,228 ----------- 132,884 INSURANCE 4.9% --------------------------------------------------------------------------- Aetna, Inc. 81,765 7,015 AFLAC, Inc. 273,600 10,845 o Alleghany Corp. 4,020 1,087 o Allmerica Financial Corp. 28,500 850 The Allstate Corp. 377,148 17,756 AMBAC Financial Group, Inc. 57,400 4,082 American Financial Group, Inc. 39,200 1,164 (7) American International Group, Inc. 1,396,271 98,647 American National Insurance Co. 14,300 1,308 AON Corp. 168,312 4,450 Arthur J. Gallagher & Co. 48,400 1,499 Brown & Brown, Inc. 36,900 1,569 Chubb Corp. 100,700 6,926 CIGNA Corp. 75,300 4,669 Cincinnati Financial Corp. 90,419 3,606 o CNA Financial Corp. 135,900 3,585 Erie Indemnity Co., Class A 34,300 1,554 Fidelity National Financial, Inc. 87,584 3,175 First American Corp. 42,000 1,128 Hartford Financial Services Group, Inc. 156,700 10,201 HCC Insurance Holdings, Inc. 34,300 1,039 Jefferson-Pilot Corp. 75,587 3,642 Lincoln National Corp. 95,400 4,169 Loews Corp. 99,400 5,629 o Markel Corp. 5,300 1,497 Marsh & McLennan Cos., Inc. 284,400 12,622 MBIA, Inc. 77,300 4,173 Mercury General Corp. 29,100 1,371 Metlife, Inc. 406,200 14,489 MGIC Investment Corp. 52,900 3,756 Nationwide Financial Services, Inc., Class A 30,200 1,071 Odyssey Re Holdings Corp. 34,900 815 Old Republic International Corp. 97,162 2,263 The PMI Group, Inc. 47,800 1,971
6 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o Principal Financial Group, Inc. 173,200 5,887 The Progressive Corp. 115,800 8,873 Protective Life Corp. 36,900 1,338 Prudential Financial, Inc. 281,500 13,107 Radian Group, Inc. 50,300 2,315 Reinsurance Group of America, Inc. 32,500 1,295 Safeco Corp. 74,300 3,497 The St. Paul Travelers Cos., Inc. 356,522 13,216 Stancorp Financial Group, Inc. 15,700 1,104 Torchmark Corp. 60,700 3,173 Transatlantic Holdings, Inc. 35,125 1,989 Unitrin, Inc. 36,200 1,508 UnumProvident Corp. 158,871 2,534 W.R. Berkley Corp. 44,750 1,832 ----------- 305,291 MEDIA 3.9% --------------------------------------------------------------------------- o American Tower Corp., Class A 113,800 1,646 Belo Corp., Class A 61,400 1,436 o Cablevision Systems Corp., NY Group, Class A 117,700 2,056 Clear Channel Communications, Inc. 329,729 11,771 o Comcast Corp., Class A 1,208,080 33,101 o Cox Communications, Inc., Class A 319,986 8,825 o The DIRECTV Group, Inc. 744,583 12,070 Dow Jones & Co., Inc. 43,850 1,858 The E.W. Scripps Co., Class A 43,375 4,443 o EchoStar Communications Corp., Class A 132,000 3,659 o Emmis Communications Corp., Class A 29,400 580 o Entercom Communications Corp. 27,500 1,057 o Fox Entertainment Group, Inc., Class A 230,000 6,217 Gannett Co., Inc. 145,500 12,097 Harte-Hanks, Inc. 46,900 1,133 John Wiley & Sons, Class A 33,100 1,071 Knight-Ridder, Inc. 42,800 2,816 Lee Enterprises, Inc. 24,000 1,117 McClatchy Co., Class A 24,700 1,703 The McGraw-Hill Cos., Inc. 102,750 7,713 Media General, Inc., Class A 12,700 759 Meredith Corp. 27,000 1,428 Metro-Goldwyn-Mayer, Inc. 132,655 1,609 New York Times Co., Class A 79,826 3,321 o PanAmSat Corp. 80,600 1,872 R.R. Donnelley & Sons Co. 125,400 3,980 o Radio One, Inc., Class A 56,200 868 o Time Warner, Inc. 2,338,630 38,938 Tribune Co. 177,600 7,539 o Univision Communications, Inc., Class A 172,910 5,009 o Valassis Communications, Inc. 28,000 819 Viacom, Inc., Class B 931,579 31,292 The Walt Disney Co. 1,097,021 25,330 Washington Post, Class B 5,200 4,513 o Westwood One, Inc. 53,600 1,276 o XM Satellite Radio Holdings, Inc., Class A 97,200 2,565 ----------- 247,487 MISCELLANEOUS 0.5% --------------------------------------------------------------------------- 3M Co. 418,900 34,500 MISCELLANEOUS FINANCE 8.3% --------------------------------------------------------------------------- A.G. Edwards, Inc. 42,143 1,370 o Affiliated Managers Group, Inc. 15,250 700 Allied Capital Corp. 68,500 1,689 American Capital Strategies Ltd. 34,700 1,014 American Express Co. 688,400 34,592 o AmeriCredit Corp. 84,000 1,604 o Ameritrade Holding Corp. 226,600 2,513 Astoria Financial Corp. 42,500 1,452 The Bear Stearns Cos., Inc. 55,771 4,652 o Berkshire Hathaway, Inc., Class A 617 53,833 o BOK Financial Corp. 31,606 1,297 Capital One Financial Corp. 125,850 8,724 / The Charles Schwab Corp. 730,497 6,414 Charter One Financial, Inc. 118,904 5,281 Chicago Mercantile Exchange 17,700 2,221 CIT Group, Inc. 114,500 3,980 (5) Citigroup, Inc. 2,767,201 122,006 Countrywide Financial Corp. 148,119 10,679 o E*TRADE Group, Inc. 196,400 2,174 Eaton Vance Corp. 36,900 1,400 Fannie Mae 521,200 36,984 Federated Investors, Inc., Class B 58,250 1,637 Franklin Resources, Inc. 133,900 6,461 Freddie Mac 369,900 23,788 Golden West Financial Corp. 81,400 8,703 Goldman Sachs Group, Inc. 260,300 22,956 GreenPoint Financial Corp. 71,500 2,905 Independence Community Bank Corp. 44,000 1,643 IndyMac Bancorp, Inc. 29,900 993 International Bancshares Corp. 26,000 1,002 Investors Financial Services Corp. 35,100 1,603 Janus Capital Group, Inc. 129,200 1,713 Jefferies Group, Inc. 29,200 915 o Knight Trading Group, Inc., Class A 61,500 523 Legg Mason, Inc. 35,600 2,796 Lehman Brothers Holdings, Inc. 147,570 10,345 Leucadia National Corp. 37,300 1,921
7 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) MBNA Corp. 684,980 16,912 Merrill Lynch & Co., Inc. 511,300 25,422 o MoneyGram International, Inc. 30,000 561 Moody's Corp. 79,900 5,441 Morgan Stanley 581,010 28,661 New York Community Bancorp, Inc. 145,182 2,793 Nuveen Investments, Inc., Class A 49,800 1,265 o Providian Financial Corp. 155,700 2,155 Raymond James Financial, Inc. 39,150 915 SEI Investments Co. 56,500 1,733 SLM Corp. 241,450 9,156 Sovereign Bancorp 157,300 3,425 Student Loan Corp. 10,800 1,515 T. Rowe Price Group, Inc. 66,700 3,083 Waddell & Reed Financial, Inc., Class A 44,200 858 Washington Federal, Inc. 41,229 1,033 Washington Mutual, Inc. 462,810 17,957 Webster Financial Corp. 28,400 1,333 Wesco Financial Corp. 3,900 1,369 ----------- 520,070 NON-DURABLES & ENTERTAINMENT 1.2% --------------------------------------------------------------------------- o Activision, Inc. 71,400 1,046 Applebee's International, Inc. 44,175 1,177 o Brinker International, Inc. 51,800 1,855 CBRL Group, Inc. 26,600 884 o The Cheesecake Factory 27,650 1,155 Darden Restaurants, Inc. 88,450 1,887 o Electronic Arts, Inc. 159,700 8,006 Fortune Brands, Inc. 78,200 5,644 Hasbro, Inc. 93,687 1,702 International Game Technology 187,700 6,070 International Speedway Corp., Class A 28,500 1,483 o Krispy Kreme Doughnuts, Inc. 32,300 508 Lancaster Colony Corp. 19,200 773 o Marvel Enterprises, Inc. 58,050 758 Mattel, Inc. 230,520 4,039 McDonald's Corp. 682,800 18,777 Outback Steakhouse, Inc. 40,175 1,632 Regis Corp. 23,500 967 Ruby Tuesday, Inc. 34,800 1,005 o Starbucks Corp. 211,700 9,941 Wendy's International, Inc. 61,200 2,189 Yum! Brands, Inc. 157,720 6,055 ----------- 77,553 NON-FERROUS METALS 0.4% --------------------------------------------------------------------------- Alcoa, Inc. 466,295 14,936 Engelhard Corp. 67,387 1,981 Freeport-McMoran Copper & Gold, Inc., Class B 92,394 3,220 o Phelps Dodge Corp. 48,000 3,741 ----------- 23,878 OIL: DOMESTIC 1.4% --------------------------------------------------------------------------- Amerada Hess Corp. 48,200 4,017 Ashland, Inc. 36,900 1,929 Chesapeake Energy Corp. 127,400 1,956 ConocoPhillips 366,678 28,883 Consol Energy, Inc. 48,200 1,727 Diamond Offshore Drilling, Inc. 70,000 1,711 Kerr-McGee Corp. 80,004 4,200 Marathon Oil Corp. 183,000 6,894 Murphy Oil Corp. 49,340 3,816 o Nabors Industries Ltd. 78,700 3,660 o National-Oilwell, Inc. 45,700 1,529 o Newfield Exploration Co. 30,100 1,778 Patina Oil & Gas Corp. 36,800 1,085 Patterson-UTI Energy, Inc. 87,000 1,586 o Pioneer Natural Resources Co. 63,400 2,286 Pogo Producing Co. 34,200 1,518 o Pride International, Inc. 72,800 1,310 Sunoco, Inc. 41,500 2,829 o Ultra Petroleum Corp. 39,900 1,790 Unocal Corp. 138,834 5,381 o Varco International, Inc. 52,400 1,267 XTO Energy, Inc. 137,066 4,098 ----------- 85,250 OIL: INTERNATIONAL 3.5% --------------------------------------------------------------------------- ChevronTexaco Corp. 573,146 54,821 (3) Exxon Mobil Corp. 3,500,230 162,061 ----------- 216,882 OPTICAL & PHOTO 0.2% --------------------------------------------------------------------------- o Corning, Inc. 716,041 8,850 Eastman Kodak Co. 153,700 4,072 o Ingram Micro, Inc., Class A 81,200 1,157 ----------- 14,079 PAPER & FOREST PRODUCTS 0.9% --------------------------------------------------------------------------- Boise Cascade Corp. 46,400 1,496 Bowater, Inc. 29,800 1,112 Georgia-Pacific Corp. 136,388 4,583 International Paper Co. 257,345 11,125 Kimberly-Clark Corp. 269,360 17,258 Louisiana-Pacific Corp. 56,900 1,347 MeadWestvaco Corp. 107,653 3,215 Packaging Corp. of America 56,600 1,322 Rayonier, Inc. 26,196 1,152 o Smurfit-Stone Container Corp. 132,600 2,468 Temple-Inland, Inc. 29,200 1,993 Weyerhaeuser Co. 119,700 7,421 ----------- 54,492 PRODUCER GOODS & MANUFACTURING 5.0% --------------------------------------------------------------------------- o AGCO Corp. 47,500 994 o American Standard Cos., Inc. 117,300 4,445
8 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) Ametek, Inc. 36,000 1,110 Avery Dennison Corp. 59,300 3,592 Blyth, Inc. 23,700 825 Briggs & Stratton Corp. 11,900 994 Caterpillar, Inc. 183,700 13,500 Cooper Industries Ltd., Class A 50,100 2,849 Deere & Co. 130,700 8,209 Dover Corp. 108,700 4,313 Emerson Electric Co. 225,700 13,700 Fastenal Co. 40,800 2,545 o Fisher Scientific International, Inc. 33,700 1,961 =(1) General Electric Co. 5,583,800 185,661 Graco, Inc. 37,050 1,166 Harsco Corp. 22,000 987 Herman Miller, Inc. 39,200 1,051 HNI Corp. 31,300 1,266 Honeywell International, Inc. 461,863 17,371 Hubbell, Inc., Class B 32,138 1,453 Illinois Tool Works, Inc. 165,242 14,958 Ingersoll-Rand Co., Class A 93,100 6,395 Johnson Controls, Inc. 101,400 5,724 o Millipore Corp. 26,100 1,375 Pall Corp. 67,133 1,555 Parker Hannifin Corp. 63,575 3,648 Pentair, Inc. 52,800 1,654 Precision Castparts Corp. 33,300 1,876 Roper Industries, Inc. 19,200 1,075 Snap-On, Inc. 31,350 1,007 SPX Corp. 40,800 1,671 Teleflex, Inc. 21,300 947 The Timken Co. 47,800 1,187 W.W. Grainger, Inc. 48,900 2,589 York International Corp. 21,500 765 ----------- 314,418 RAILROAD & SHIPPING 0.4% --------------------------------------------------------------------------- Burlington Northern Santa Fe Corp. 199,053 7,062 CSX Corp. 114,900 3,596 Norfolk Southern Corp. 209,500 5,592 Union Pacific Corp. 138,861 7,824 ----------- 24,074 REAL PROPERTY 1.5% --------------------------------------------------------------------------- AMB Property Corp. 43,900 1,543 Annaly Mortgage Management, Inc. 61,400 1,013 Apartment Investment & Management Co., Class A 50,600 1,618 Archstone-Smith Trust 102,500 3,017 Arden Realty, Inc. 34,500 1,049 AvalonBay Communities, Inc. 38,200 2,223 Boston Properties, Inc. 56,700 2,999 BRE Properties, Class A 26,900 932 Camden Property Trust 21,200 954 CarrAmerica Realty Corp. 28,200 860 Catellus Development Corp. 55,398 1,385 CBL & Associates Properties, Inc. 16,300 898 Centerpoint Properties Trust 24,800 952 Chelsea Property Group, Inc. 23,400 1,524 Cousins Properties, Inc. 26,100 839 Crescent Real Estate Equity Co. 53,300 837 Developers Diversified Realty Corp. 54,500 1,955 Duke Realty Corp. 73,000 2,245 Equity Office Properties Trust 214,400 5,564 Equity Residential 147,800 4,367 Essex Property Trust, Inc. 12,300 811 Federal Realty Investment Trust 26,400 1,114 Forest City Enterprises, Inc., Class A 26,750 1,402 General Growth Properties, Inc. 115,300 3,468 Health Care Property Investors, Inc. 69,600 1,737 Health Care Real Estate Investment Trust, Inc. 26,500 855 Healthcare Realty Trust, Inc. 23,000 831 Hospitality Properties Trust 35,900 1,432 o Host Marriott Corp. 171,300 2,218 iStar Financial, Inc. 57,800 2,196 Kimco Realty Corp. 59,300 2,852 Liberty Property Trust 42,900 1,647 The Macerich Co. 31,000 1,485 Mack-Cali Realty Corp. 31,200 1,276 The Mills Corp. 25,900 1,181 New Plan Excel Realty Trust 52,500 1,247 Pan Pacific Retail Properties, Inc. 21,700 1,098 Plum Creek Timber Co., Inc. 98,200 3,082 ProLogis 96,608 3,289 Public Storage, Inc. 68,100 3,210 Realty Income Corp. 20,400 827 Regency Centers Corp. 32,100 1,364 The Rouse Co. 55,100 2,689 Shurgard Storage Centers, Inc., Class A 24,500 907 Simon Property Group, Inc. 109,800 5,667 SL Green Realty Corp. 21,300 1,046 The St. Joe Co. 40,800 1,755 Thornburg Mortgage, Inc. 38,700 1,073 Trizec Properties, Inc. 81,000 1,300 United Dominion Realty Trust, Inc. 68,100 1,320 Ventas, Inc. 43,000 1,097 Vornado Realty Trust 62,100 3,607 Weingarten Realty Investment 43,950 1,354 ----------- 97,211 RETAIL 6.4% --------------------------------------------------------------------------- o 99 Cents Only Stores 38,766 556 Abercrombie & Fitch Co., Class A 51,800 1,910
9 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) o Advance Auto Parts, Inc. 39,300 1,459 Albertson's, Inc. 196,742 4,799 o Amazon.com, Inc. 217,100 8,450 o AnnTaylor Stores Corp. 36,450 978 o Autonation, Inc. 147,500 2,378 o AutoZone, Inc. 47,600 3,675 o Barnes & Noble, Inc. 35,800 1,231 o Bed, Bath & Beyond, Inc. 158,800 5,620 Best Buy Co., Inc. 173,550 8,358 o Big Lots, Inc. 62,800 769 o BJ's Wholesale Club, Inc. 37,500 874 Borders Group, Inc. 41,600 951 o Carmax, Inc. 55,600 1,156 o Chico's FAS, Inc. 46,800 1,960 Circuit City Stores, Inc. 112,400 1,585 Claire's Stores, Inc. 52,500 1,210 Costco Wholesale Corp. 245,508 9,982 CVS Corp. 211,514 8,856 Dollar General Corp. 180,869 3,491 o Dollar Tree Stores, Inc. 61,800 1,663 Family Dollar Stores, Inc. 92,400 2,574 Federated Department Stores, Inc. 96,900 4,643 Foot Locker, Inc. 76,900 1,730 The Gap, Inc. 482,500 10,953 Home Depot, Inc. 1,199,797 40,457 J.C. Penney Co., Inc. Holding Co. 146,300 5,852 o Kohl's Corp. 182,200 8,337 o Kroger Co. 401,630 6,346 Limitedbrands 255,568 5,224 Lowe's Cos., Inc. 421,800 20,550 The May Department Stores Co. 154,750 4,106 Michaels Stores, Inc. 35,900 1,940 The Neiman Marcus Group, Inc., Class A 26,200 1,429 Nordstrom, Inc. 73,700 3,235 o O'Reilly Automotive, Inc. 29,200 1,182 o Office Depot, Inc. 168,048 2,756 o Pacific Sunwear of California 42,000 857 PETsMART, Inc. 76,800 2,382 Pier 1 Imports, Inc. 47,800 857 RadioShack Corp. 88,132 2,463 o Rent-A-Center, Inc. 45,750 1,342 o Rite Aid Corp. 276,900 1,360 Ross Stores, Inc. 81,600 1,889 o Safeway, Inc. 237,180 5,012 Saks, Inc. 73,640 961 Sears, Roebuck & Co. 115,900 4,251 Staples, Inc. 265,560 7,669 Talbots, Inc. 30,400 936 Target Corp. 488,200 21,286 Tiffany & Co. 77,100 2,756 TJX Cos., Inc. 269,900 6,335 o Toys 'R' Us, Inc. 114,580 1,886 o Urban Outfitters, Inc. 42,600 1,267 =(6) Wal-Mart Stores, Inc. 2,300,400 121,944 Walgreen Co. 549,100 19,987 Whole Foods Market, Inc. 32,200 2,651 o Williams-Sonoma, Inc. 62,700 2,037 ----------- 403,353 STEEL 0.1% --------------------------------------------------------------------------- Nucor Corp. 41,900 3,505 United States Steel Corp. 56,360 2,150 Worthington Industries, Inc. 46,100 944 ----------- 6,599 TELEPHONE 3.6% --------------------------------------------------------------------------- Adtran, Inc. 42,500 1,135 Alltel Corp. 167,267 8,698 AT&T Corp. 425,617 6,427 o AT&T Wireless Services, Inc. 1,454,321 21,000 o Avaya, Inc. 235,100 3,444 BellSouth Corp. 983,400 26,640 CenturyTel, Inc. 77,287 2,395 o Citizens Communications Co. 152,518 2,196 o Crown Castle International Corp. 118,000 1,666 o Level 3 Communications, Inc. 363,200 1,101 o Liberty Media Corp., Class A 1,549,300 13,138 o Nextel Communications, Inc., Class A 571,600 13,010 o Nextel Partners, Inc., Class A 98,000 1,575 o NTL, Inc. 46,700 2,434 o Qwest Communications International, Inc. 948,647 3,690 SBC Communications, Inc. 1,776,028 45,005 o Sonus Networks, Inc. 131,200 668 Sprint Corp. (FON Group) 719,828 13,446 Telephone & Data Systems, Inc. 30,900 2,345 o U.S. Cellular Corp. 46,100 1,810 Verizon Communications, Inc. 1,483,593 57,178 ----------- 229,001 TOBACCO 0.9% --------------------------------------------------------------------------- Altria Group, Inc. 1,096,000 52,170 R.J. Reynolds Tobacco Holdings, Inc. 45,300 3,259 UST, Inc. 88,900 3,374 ----------- 58,803 TRAVEL & RECREATION 0.5% --------------------------------------------------------------------------- Brunswick Corp. 49,100 1,916 o Caesars Entertainment, Inc. 162,600 2,395 Harrah's Entertainment, Inc. 59,200 2,752 Hilton Hotels Corp. 203,467 3,628 Mandalay Resort Group 34,900 2,356 Marriott International, Inc., Class A 124,000 6,051 o MGM Mirage 77,700 3,431
10 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) Starwood Hotels & Resorts Worldwide, Inc. 108,400 4,878 Station Casinos, Inc. 32,200 1,391 ----------- 28,798 TRUCKING & FREIGHT 0.3% --------------------------------------------------------------------------- C.H. Robinson Worldwide, Inc. 1,976 45,200 CNF, Inc. 26,700 1,102 Expeditors International Washington, Inc. 56,400 2,617 J.B. Hunt Transport Services, Inc. 1,652 43,000 Paccar, Inc. 93,870 5,628 Ryder Systems, Inc. 34,500 1,480 o Swift Transportation Co., Inc. 44,900 897 Werner Enterprises, Inc. 42,800 853 o Yellow Roadway Corp. 25,300 1,101 ----------- 17,306 UTILITIES: ELECTRIC & GAS 3.1% --------------------------------------------------------------------------- o The AES Corp. 334,106 3,224 AGL Resources, Inc. 34,500 1,019 o Allegheny Energy, Inc. 68,200 1,012 Allete, Inc. 46,700 1,295 Alliant Energy Corp. 59,300 1,536 Ameren Corp. 97,730 4,368 American Electric Power Co., Inc. 6,652 213,820 Aqua America, Inc. 49,675 966 o Calpine Corp. 221,700 856 Centerpoint Energy, Inc. 164,217 1,907 Cinergy Corp. 95,465 3,652 Consolidated Edison, Inc. 120,900 4,953 Constellation Energy Group, Inc. 3,460 89,750 Dominion Resources, Inc. 174,016 11,043 DPL, Inc. 67,892 1,354 DTE Energy Co. 90,183 3,623 Duke Energy Corp. 488,162 10,495 o Dynegy, Inc., Class A 202,300 850 Edison International 174,700 4,682 El Paso Corp. 344,646 2,719 Energen Corp. 19,400 919 Energy East Corp. 78,384 1,909 Entergy Corp. 122,821 7,062 Equitable Resources, Inc. 33,400 1,713 Exelon Corp. 354,774 12,382 FirstEnergy Corp. 176,898 6,917 FPL Group, Inc. 98,600 6,639 Great Plains Energy, Inc. 37,200 1,067 Hawaiian Electric Industries, Inc. 1,031 40,400 KeySpan Corp. 85,334 3,071 Kinder Morgan, Inc. 66,200 3,973 MDU Resources Group, Inc. 60,800 1,487 National Fuel Gas Co. 43,700 1,116 Nicor, Inc. 23,700 785 NiSource, Inc. 140,880 2,916 Northeast Utilities, Inc. 71,800 1,343 NSTAR 28,400 1,329 OGE Energy Corp. 46,700 1,162 Oneok, Inc. 54,800 1,151 Peoples Energy Corp. 19,700 768 Pepco Holdings, Inc. 92,025 1,656 o PG&E Corp. 222,458 6,349 Piedmont Natural Gas Co. 20,300 837 Pinnacle West Capital Corp. 49,000 1,984 PPL Corp. 95,220 4,413 Progress Energy, Inc. 131,400 5,537 Public Service Enterprise Group, Inc. 126,100 4,918 Puget Energy, Inc. 50,600 1,093 Questar Corp. 44,600 1,828 SCANA Corp. 59,500 2,179 Sempra Energy 121,438 4,341 The Southern Co. 394,700 11,557 TECO Energy, Inc. 100,800 1,300 TXU Corp. 173,712 6,889 Vectren Corp. 40,600 1,005 Westar Energy, Inc. 38,900 785 Williams Cos., Inc. 277,909 3,377 Wisconsin Energy Corp. 63,200 2,032 WPS Resources Corp. 19,500 895 Xcel Energy, Inc. 214,035 3,660 ----------- 195,041
FACE SECURITY AMOUNT RATE, MATURITY DATE ($ x 1,000) U.S. TREASURY OBLIGATION 0.0% of net assets = U.S. Treasury Bill, 1.23%, 09/16/04 250 250
END OF INVESTMENTS. At 7/31/04, the tax basis cost of the fund's investments was $3,998,929, and the unrealized gains and losses were $2,701,036 and ($442,252), respectively. The fund's portfolio holdings include $965,310 of securities on loan. COLLATERAL INVESTED FOR SECURITIES ON LOAN 16.0% of net assets COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 9.3% --------------------------------------------------------------------------- Bank of America 1.30%, 09/20/04 33,079 33,079 Canadian Imperial Bank of Commerce/New York 1.72%, 05/25/05 44,039 44,030 1.41%, 01/31/05 33,324 33,319
11 SCHWAB 1000 FUND PORTFOLIO HOLDINGS continued
FACE SECURITY AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Concord Minutemen Capital Corp. 1.32%, 08/09/04 50,714 50,654 1.31%, 08/11/04 10,008 9,997 Credit Lyonnais 1.08%, 09/30/04 34,224 34,225 Foreningssparbanken AB 1.52%, 01/18/05 65,333 65,323 Fortis Bank NY 2.06%, 06/08/05 11,718 11,716 1.78%, 06/06/05 15,269 15,268 Societe Generale 1.49%, 12/08/04 67,477 67,463 1.31%, 06/14/05 10,154 10,150 Svenska Handelsbanken 1.39%, 10/27/04 39,256 39,252 Wells Fargo 1.34%, 08/18/04 1,778 1,778 1.32%, 08/16/04 77,185 77,185 Westdeutsche Landesbank AG 1.51%, 10/12/04 18,592 18,590 1.50%, 01/10/05 39,908 39,897 1.42%, 09/29/04 13,005 13,001 1.38%, 09/23/04 15,434 15,431 ----------- 580,358 SHORT-TERM INVESTMENT 0.6% --------------------------------------------------------------------------- National City Bank Cleveland, Time Deposit 1.29%, 08/02/04 37,401 37,401 SECURITY AND NUMBER OF SHARES OTHER INVESTMENT COMPANIES 6.1% --------------------------------------------------------------------------- Institutional Money Market Trust 384,989,693 384,990
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. In addition to the above, the fund held the following at 7/31/04. All numbers x 1,000 except the number of futures contracts. FUTURES CONTRACTS
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE LOSS S&P 500 Index, Long expires 09/17/04 6 1,652 (2)
12 Item 2. Controls and Procedures. (a) Based on their evaluation of Registrant's disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant's Chief Executive Officer, Evelyn Dilsaver and Registrant's Assistant Treasurer and interim Principal Financial Officer, Gregory Hand, have concluded that Registrant's disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant's officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. (b) During Registrant's last fiscal quarter, there have been no changes in Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant's internal control over financial reporting. Item 3. Exhibits. Separate certifications for Registrant's principal executive officer and assistant treasurer and interim principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant ) Schwab Investments - Schwab 1000 Fund By: /s/ Evelyn Dilsaver _________________________ Evelyn Dilsaver Chief Executive Officer Date: September 13, 2004 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/ Evelyn Dilsaver _________________________ Evelyn Dilsaver Chief Executive Officer Date: September 13, 2004 By: /s/ Gregory Hand _________________________ Gregory Hand Assistant Treasurer and Interim Principal Financial Officer Date: September 13, 2004 EX-99.CERT 2 f01769exv99wcert.txt SECTION 302 CERTIFICATIONS CERTIFICATIONS I, Evelyn Dilsaver, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investments - Schwab 1000 Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ Evelyn Dilsaver Date: September 13, 2004 ______________________________ Evelyn Dilsaver President and Chief Executive Officer CERTIFICATIONS I, Gregory Hand, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investments - Schwab 1000 Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ Gregory Hand Date: September 13, 2004 ______________________________ Gregory Hand Assistant Treasurer and Interim Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----