-----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, JTyBzhPMnbsCeaJ9JUVBaUQmQEaBr7zbR7fLlEBBxheEXL0IgG69H0JzWYZuqZug BO12gaL7cwNdK6zqQPbDQA== 0000950134-05-001310.txt : 20050126 0000950134-05-001310.hdr.sgml : 20050126 20050125193137 ACCESSION NUMBER: 0000950134-05-001310 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041130 FILED AS OF DATE: 20050126 DATE AS OF CHANGE: 20050125 EFFECTIVENESS DATE: 20050126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB INVESTMENTS CENTRAL INDEX KEY: 0000869365 IRS NUMBER: 000000000 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: 05548200 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 f04813nvq.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 -------------------------------- (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 Investments 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: August 31 Date of reporting period: September 1, 2004 - November 30, 2004 ITEM 1. SCHEDULE OF INVESTMENTS. SCHWAB INVESTMENTS SCHWAB YIELDPLUS FUND(R) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate 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 = Delayed-delivery security ~ Variable-rate security / Callable security @ All or a portion of this security is held as collateral for futures contracts and delayed-delivery security For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 47.9% CORPORATE BONDS 2,176,104 2,179,905 33.3% ASSET-BACKED OBLIGATIONS 1,513,996 1,516,797 13.0% MORTGAGE-BACKED SECURITIES 594,661 595,039 0.2% MUNICIPAL BONDS 9,556 9,542 0.0% U.S. GOVERNMENT SECURITIES 1,370 1,369 1.0% COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 44,999 44,999 5.6% PREFERRED STOCK 253,739 252,653 0.0% OTHER INVESTMENT COMPANIES 717 717 - -------------------------------------------------------------------------------- 101.0% TOTAL INVESTMENTS 4,595,142 4,601,021 (1.0)% OTHER ASSETS AND LIABILITIES (45,460) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 4,555,561
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) CORPORATE BONDS 47.9% of net assets FINANCE 26.1% ------------------------------------------------------------------------- BANKING 16.6% AB SPINTAB, 144A ~/ 2.17%, 01/31/05 6,500 6,506 /@ 7.50%, 08/14/49 2,100 2,235 ~/ ARTESIA OVERSEAS, LTD. 3.13%, 02/25/05 10,000 10,097 ~/ BANESTO FINANCE LTD. 3.19%, 01/31/05 35,250 35,250 /@ BBVA BANCOMER CAPITAL TRUST I, 144A 10.50%, 02/16/11 24,900 27,016 ~/(10) BNP PARIBAS 2.54%, 12/20/04 42,700 42,626 ~/ CENTRAL FIDELITY CAPITAL I Series A 3.07%, 01/18/05 16,200 16,295 ~/ CULLEN/FROST CAPITAL TRUST II 3.34%, 02/13/04 13,000 13,437 ~/(6) DEUTSCHE BANK CAPITAL TRUST, 144A Class B 3.97%, 12/30/04 48,400 49,723 ~ DORAL FINANCIAL CORP. 2.91%, 01/20/05 28,035 28,082 ~/ EMIGRANT CAPITAL TRUST I, 144A 4.43%, 12/10/04 18,920 18,853 ~/ FLEET CAPITAL TRUST V 2.91%, 12/20/04 42,300 42,433 ~ HSBC BANK USA, INC. 1.98%, 12/21/04 35,000 35,033 ~ INTESA BANK OVERSEAS LTD. 2.87%, 01/03/05 31,000 31,158 ~ JP MORGAN CHASE CAPITAL XIII Series M 2.88%, 12/30/04 29,900 29,665 /@ KORAM BANK 5.64%, 09/26/12 25,300 26,325 NATIONWIDE BUILDING SOCIETY, 144A ~ 1.99%, 12/13/04 40,000 40,073 ~ 2.20%, 01/20/05 20,000 20,005 ~/ RBS CAPITAL TRUST IV 2.77%, 12/30/04 39,800 40,079 ~/(9) REPUBLIC NEW YORK CORP. 2.23%, 01/31/05 44,700 44,216 SANTANDER FINANCIAL ISSUANCES ~/ 3.04%, 12/16/04 12,750 12,732 ~/ 2.14%, 04/26/05 29,000 28,927 /@ SKANDINAVISKA ENSKILDA, 144A 8.13%, 09/06/49 18,000 19,367 ~/ SOCIETE GENERALE 2.26%, 01/21/05 28,000 28,316 ~ SOVEREIGN BANCORP. 2.71%, 02/28/05 16,000 16,011 /@ SVENSKA HANDELSBANKEN, 144A 7.13%, 03/07/49 10,000 10,724 ~(5) WACHOVIA CORP. 2.17%, 01/24/05 50,000 50,012 WELLS FARGO & CO. ~ 1.99%, 12/23/04 15,950 15,964 ~ 2.03%, 09/28/07 15,000 15,010 ----------- 756,170 BROKERAGE 5.7% ~ BEAR STEARNS CO., INC. 2.41%, 12/27/04 30,000 30,401 ~/ CREDIT SUISSE FINANCIAL PRODUCTS 2.57%, 12/06/04 20,770 20,873 GOLDMAN SACHS GROUP, INC. ~ 2.15%, 10/05/07 40,000 40,004 ~ 2.54%, 09/29/04 15,000 15,108 ~ JP MORGAN CHASE & CO. 1.95%, 12/14/04 25,000 25,025
1 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) ~ LEHMAN BROTHERS HOLDINGS 2.20%, 01/20/05 25,715 25,733 ~ MERRILL LYNCH & CO. 2.20%, 02/14/05 34,850 34,848 ~(1) MORGAN STANLEY 2.34%, 02/14/05 70,000 69,994 ----------- 261,986 FINANCE COMPANIES 1.9% COUNTRYWIDE HOME LOAN ~(8) 2.09%, 03/29/06 45,000 44,981 ~ 2.47%, 08/26/05 17,000 16,994 ~ FORD MOTOR CREDIT CO. 2.76%, 12/28/04 10,000 9,927 ~ INTERNATIONAL LEASE FINANCE CORP. 2.41%, 01/18/05 14,850 14,819 ----------- 86,721 INSURANCE 1.3% ~/ AXA 2.40%, 12/03/04 14,800 14,825 ~ GENWORTH FINANCIAL, INC. 2.03%, 12/15/04 15,000 14,956 /@ NATIONWIDE CSN TRUST, 144A 9.88%, 02/15/25 28,500 30,143 ----------- 59,924 REAL ESTATE INVESTMENT TRUST 0.6% ~ ISTAR FINANCIAL, INC. Series B 3.12%, 12/13/04 25,575 25,991 INDUSTRIAL 17.0% ------------------------------------------------------------------------- BASIC INDUSTRY 0.5% FMC CORP. / 10.25%, 05/01/05 2,875 3,321 Series A 6.75%, 05/05/05 1,600 1,628 @ METHANEX CORP. 7.75%, 08/15/05 15,935 16,413 ----------- 21,362 CAPITAL GOODS 0.3% BAE ASSET SYSTEMS 2001 ASSET TRUST, 144A Series 2001 Class G 6.66%, 09/15/13 6,975 7,653 /@ WASTE MANAGEMENT, INC. 8.75%, 12/01/06 4,250 4,832 ----------- 12,485 COMMUNICATIONS 4.8% ~ AMERICA MOVIL SA DE CV, 144A 2.74%, 01/27/05 31,500 31,264 ~ BELLSOUTH CORP. 2.42%, 02/15/05 19,900 19,901 @ CHANCELLOR MEDIA / CLEAR CHANNEL COMMUNICATION 8.00%, 11/01/08 9,570 10,738 /@ DIRECTV HOLDINGS/FINANCE 8.38%, 03/15/13 8,000 9,020 ECHOSTAR DBS CORP. ~/ 5.26%, 01/01/05 6,750 7,037 /@ 9.13%, 01/15/09 6,227 6,889 ~/@ ROGERS WIRELESS, INC. 144A 5.47%, 03/15/05 1,990 2,069 ROGERS CABLE SYSTEMS, LTD. Series B 10.00%, 03/15/05 22,577 23,028 /@ TCI COMMUNICATIONS FINANCING III 9.65%, 03/31/27 23,310 27,179 /@ TELECORP PCS, INC. 10.63%, 07/15/10 9,556 10,479 @ TELEFONOS DE MEXICO SA 8.25%, 01/26/06 19,000 20,054 ~(4) VERIZON WIRELESS CAPITAL, 144A 2.42%, 02/23/05 52,590 52,591 ----------- 220,249 CONSUMER CYCLICAL 7.2% @ ALTRIA GROUP, INC. 7.00%, 07/15/05 19,870 20,278 @ AUTONATION, INC. 9.00%, 08/01/08 11,550 13,225 ~/ BOMBARDIER CAPITAL, INC., 144A 4.46%, 12/30/04 6,955 6,938 /@ BOYD GAMING CORP. 9.25%, 08/01/09 2,980 3,222 @ CAESARS ENTERTAINMENT 8.50%, 11/15/06 10,800 11,745 ~ CENTEX CORP. Series D 4.16%, 01/10/05 14,925 15,355 CUMMINS, INC. 9.50%, 12/01/10 8,690 9,928 D. R. HORTON, INC. @ 10.50%, 04/01/05 2,500 2,573 @ 7.50%, 12/01/07 6,700 7,336 8.50%, 04/15/12 5,000 5,650 ~ DAIMLER-CHRYSLER, N.A. HOLDINGS 2.34%, 12/10/04 25,140 25,187 /@ DANA CORP. 10.13%, 03/15/10 14,980 17,002 GENERAL MOTORS ACCEPTANCE CORP. ~/ 1.50%, 12/15/04 500 496 ~ 3.08%, 12/15/04 19,900 19,670 @ HYATT EQUITIES, L.L.C., 144A 6.88%, 06/15/07 1,295 1,365 ~/ LENNAR CORP. 2.66%, 12/20/04 22,875 23,012 /@ LENNAR CORP., 144A Series B 9.95%, 05/01/10 450 486 @ MANDALAY RESORT GROUP 6.45%, 02/01/06 13,685 14,130 MGM MIRAGE, INC. @ 6.95%, 02/01/05 9,475 9,570 7.25%, 10/15/06 5,000 5,300 @ 6.75%, 08/01/07 6,000 6,315 6.75%, 02/01/08 300 317 ROYAL CARIBBEAN CRUISES @ 7.25%, 08/15/06 7,840 8,340 @ 6.75%, 03/15/08 4,255 4,563 RYLAND GROUP, INC. /@ 9.75%, 09/01/10 15,785 17,364
2 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) /@ 9.13%, 06/15/11 10,362 11,644 /@ SCHULER HOMES 9.38%, 07/15/09 16,436 17,792 /@ STANDARD PACIFIC CORP. 9.50%, 09/15/10 13,540 14,725 @ STARWOOD HOTEL RESORTS 7.38%, 05/01/07 6,000 6,435 TOLL CORP. /@ 8.00%, 05/01/09 3,500 3,649 /@ 8.25%, 02/01/11 22,735 24,781 ----------- 328,393 CONSUMER NON-CYCLICAL 1.7% BAUSCH & LOMB, INC. @ 6.75%, 12/15/04 2,595 2,595 @ 6.50%, 08/01/05 10,205 10,418 ~ CLOROX CO., 144A 2.54%, 12/03/04 14,900 14,900 ~ EVANGELICAL LUTHERAN GOOD SAMARITAN SOCIETY 2.89%, 02/24/05 19,800 19,803 @ FRESENIUS MEDICAL CAPITAL TRUST II 7.88%, 02/01/08 9,315 10,130 @ HCA, INC. 6.91%, 06/15/05 5,000 5,091 ~/ STATER BROTHERS HOLDINGS 5.38%, 12/15/04 12,950 13,306 ----------- 76,243 ENERGY 0.5% ~/@ HUSKY OIL LTD. 8.90%, 08/15/08 10,301 11,789 /@ POGO PRODUCING CO. Series B 8.25%, 04/15/11 9,866 10,877 ----------- 22,666 TECHNOLOGY 0.2% ~/ FREESCALE SEMICONDUCTOR, 144A 4.82%, 01/18/05 10,500 10,920 TRANSPORTATION 1.8% ~ CSX CORP. 2.48%, 02/03/05 29,860 29,875 ~ FEDEX CORP. 1.88%, 01/03/05 22,620 22,632 ~ HERTZ CORP. 3.40%, 02/07/05 14,900 14,990 ~ NORFOLK SOUTHERN CORP. 2.83%, 01/31/05 7,820 7,832 / UNION PACIFIC CORP. 8.35%, 05/01/05 4,950 5,258 ----------- 80,587 SOVEREIGN 0.4% ------------------------------------------------------------------------- ~ PEMEX PROJECT FUNDING MASTER TRUST 3.54%, 01/07/05 10,000 10,025 ~ PEMEX PROJECT FUNDING MASTER TRUST, 144A 3.87%, 01/18/05 6,270 6,587 ----------- 16,612 UTILITIES 4.4% ------------------------------------------------------------------------- ~ APPALACHIAN POWER CO. 2.30%, 12/29/04 8,000 8,010 ~ ATMOS ENERGY CORP. 2.00%, 10/15/07 19,900 19,898 /@ COLUMBIA ENERGY GROUP Series D 7.05%, 11/28/07 1,405 1,449 ~/ DTE ENERGY CO. 2.74%, 12/01/04 9,400 9,454 ~/ DUKE ENERGY CORP. 2.30%, 12/08/04 21,000 21,050 ENTERGY GULF STATES, INC. /@ 5.20%, 12/03/07 13,510 13,510 ~/ 2.48%, 12/01/09 32,875 32,866 ~/ ENTERGY GULF STATES, INC., 144A 2.81%, 03/01/05 1,000 1,000 ~/ NISOURCE FINANCE CORP. 2.94%, 02/04/05 16,000 16,004 2.91%, 02/23/05 24,850 24,849 ~/ PG&E CORP. 2.72%, 01/03/05 5,105 5,110 ~/ PINNACLE WEST CAPITAL CORP. 2.96%, 02/01/05 10,660 10,661 @ RELIANT ENERGY RESOURCES Series B 8.13%, 07/15/05 18,100 18,664 ~ SOUTHERN CALIFORNIA EDISON 2.35%, 01/13/05 7,120 7,146 ~/ TXU ENERGY CO., L.L.C. 144A 2.84%, 01/14/05 9,900 9,925 ----------- 199,596 ASSET-BACKED OBLIGATIONS 33.3% of net assets ACE SECURITIES CORP. Series 2002-HE-1 Class M2 3.38%, 06/25/32 5,000 5,034 Series 2002-HE3 Class M2 4.38%, 10/25/32 15,000 15,153 Series 2004-FM1 Class M1 2.78%, 08/25/33 10,000 9,998 ALTER MONETA RECEIVABLES, L.L.C. Series 2003-1 2.56%, 03/15/11 3,912 3,868 AMERICREDIT AUTOMOBILE RECEIVABLES TRUST Series 2001-1 Class D 6.98%, 07/06/07 1,400 1,426 Series 2002-1 Class D 6.53%, 06/06/08 6,450 6,674 AMERICREDIT FINANCE NIM TRUST Series 2004-RN5 Class A 5.19%, 07/25/34 3,737 3,731 AMERIQUEST FINANCE NIM TRUST ~ Series 2004-RN4 Class A 4.60%, 12/26/04 5,003 4,989 Series 2004-RN9 Series N1 4.80%, 11/25/34 12,000 12,000 AMERIQUEST MORTGAGE SECURITIES, INC. ~ Series 2003-6 Class M2 4.03%, 12/27/04 5,000 5,083
3 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) ~ Series 2003-AR2 Class M2 4.21%, 12/27/04 5,000 5,088 ~ Series 2003-AR3 Class M2 4.23%, 12/27/04 5,000 5,128 ~ Series 2003-IA1 Class M2 3.83%, 12/27/04 3,288 3,290 Series 2004-R10 Class M1 2.88%, 11/25/34 10,550 10,576 Series 2004-R10 Class M6 3.21%, 11/25/34 7,050 7,093 Series 2004-R10 Class M7 3.64%, 11/25/34 6,900 6,945 Series 2004-R10 Class M8 3.84%, 11/25/34 1,950 1,957 ~ Series 2004-R8 Class M7 4.11%, 12/27/04 4,450 4,481 ~ Series 2004-R8 Class M9 4.93%, 12/27/04 5,000 4,578 AMORTIZING RESIDENTIAL COLLATERAL TRUST ~ Series 2002-BC1 Class M2 3.28%, 12/27/04 10,000 10,047 Series 2002-BC9 Class M2 4.43%, 12/27/04 18,000 18,377 AQ FINANCE NIM TRUST Series 2003-N11A 7.14%, 08/25/33 897 895 ARGENT NIM TRUST Series 2003-N7 Class 2A1 5.75%, 03/27/34 1,796 1,793 Series 2003-N7 Class 2A2 9.75%, 03/27/34 2,000 2,006 ARGENT SECURITIES, INC. ~ Series 2003-W7 Class M2 3.93%, 12/27/04 15,750 15,897 Series 2003-W9 Class M2 3.90%, 03/25/34 19,695 20,035 ~ ARIA CDO I (JERSEY) LTD. Series IA-3 Class B1U5 3.13%, 04/07/05 35,000 35,151 ASSET BACKED FUNDING CERTIFICATES ~ Series 2003-AHL1 Class M1 3.03%, 12/27/04 7,500 7,546 Series 2003-OPT1 6.90%, 07/26/33 3,386 3,383 ~ Series 2003-OPT1 Class M2 3.73%, 07/01/33 5,000 5,063 Series 2003-WMC1 Class A3 2.73%, 08/25/33 12,549 12,656 ~ Series 2004-HE1 Class M8 5.68%, 12/27/04 4,022 3,629 ~ Series 2004-OPT2 Class M2 3.18%, 12/27/04 11,576 11,582 ASSET BACKED FUNDING CORP. NIM TRUST Series 2004-OPT5 Class N1 4.45%, 09/28/34 18,913 18,912 ASSET BACKED SECURITIES CORP. HOME EQUITY ~ Series 2001-HE3 Class M2 3.15%, 12/15/04 6,000 6,008 Series 2003-HE1 Class M2 4.45%, 12/15/04 14,850 15,417 ~ Series 2003-HE2 Class M2 4.00%, 12/15/04 4,460 4,524 ASSET BACKED SECURITIES CORP. NIMS TRUST Series 2004-HE3 Class A1 5.00%, 05/25/34 7,796 7,761 BANC OF AMERICA FUNDING CORP. Series 2004-A Class 4A1 5.87%, 06/20/32 21,535 21,811 ~ BEAR STEARNS ASSET BACKED SECURITIES, INC. Series 1999-1 Class MV1 3.16%, 12/27/04 9,530 9,541 ~ CAPITAL ONE MASTER TRUST Series 2001-2 Class C 3.20%, 12/15/04 14,920 15,001 CAPITAL ONE MULTI-ASSET EXECUTION TRUST ~ Series 2003-B6 Class B6 2.63%, 12/15/04 20,000 20,202 ~ Series 2003-C1 Class C1 4.65%, 12/15/04 3,500 3,727 CAPITAL ONE PRIME AUTO RECEIVABLES TRUST Series 2004-2 Class B 3.95%, 05/16/11 13,673 13,782 ~ CARSS FINANCE LTD. PARTNERSHIP Series 2004-A Class B2 3.05%, 12/15/04 5,971 5,978 CDC MORTGAGE CAPITAL TRUST ~ Series 2003-HE1 Class M1 3.08%, 12/27/04 18,000 18,117 ~ Series 2003-HE2 Class M2 4.08%, 06/25/33 5,000 5,154 ~ Series 2003-HE4 Class M1 2.83%, 12/27/04 5,700 5,732 ~ Series 2003-HE4 Class M2 3.83%, 12/27/04 4,000 4,106 ~ CENTEX HOME EQUITY Series 2003-B Class M2 3.88%, 12/27/04 6,500 6,612 ~ CHASE CREDIT CARD MASTER TRUST Series 2002-4 Class C 2.94%, 12/15/04 14,000 14,053 CHASE FUNDING LOAN ACQUISITION TRUST ~ Series 2001-C3 Class M1 3.11%, 12/27/04 3,931 3,957 ~ Series 2002-C1 Class IIM2 3.28%, 12/27/04 5,000 5,028 ~ CHASE FUNDING MORTGAGE LOAN ASSET-BACKED Series 2003-2 Class 2A2 2.46%, 02/25/33 20,920 20,969 CHASE FUNDING NET INTEREST MARGIN Series 2003-3A 6.88%, 06/27/33 153 153 Series 2003-4A 6.75%, 07/27/33 1,367 1,366 CHASE FUNDING NET INTEREST MARGIN, 144A Series 2004-1A 3.75%, 12/27/04 1,915 1,901 CHEC LOAN TRUST Series 2004-2 Class M1 2.60%, 10/25/34 8,750 8,750
4 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) CIT MARINE TRUST Series 1999-A Class A4 6.25%, 11/15/19 2,900 2,991 COUNTRYWIDE ASSET BACKED CERTIFICATES ~ Series 2002-6 Class M1 3.28%, 12/27/04 3,000 3,031 ~ Series 2002-6 Class M2 4.28%, 12/27/04 4,800 4,892 (2) COUNTRYWIDE HOME LOANS Series 2004-HYB5 Class 3A1 4.78%, 04/20/35 64,436 65,201 DISTRIBUTION FINANCIAL SERVICES TRUST Series 2001-1 Class-D 7.73%, 11/15/22 8,250 8,217 ~ FIELDSTONE MORTGAGE INVESTMENT CORP. Series 2004-2 Class M3 3.58%, 12/27/04 2,000 2,001 FIRST FRANKLIN MORTGAGE LOAN ASSET BACKED CERTIFICATES ~ Series 1997-FF3 Class M1 2.56%, 12/20/04 1,547 1,548 Series 2003-FF3 Class M4 5.18%, 07/25/33 5,208 5,372 FIRST FRANKLIN NIM TRUST Series 2004-FF10 Class N1 4.45%, 11/26/34 9,342 9,341 Series 2004-FF4A Class N 5.75%, 06/25/34 6,824 6,829 FREMONT HOME LOAN TRUST ~ Series 2003-B Class M2 3.80%, 12/27/04 13,000 13,283 ~ Series 2004-A Class M2 3.33%, 12/27/04 5,000 5,003 ~ GE COMMERCIAL EQUIPMENT FINANCING L.L.C. Series 2004-1 Class C 2.69%, 12/20/04 7,600 7,600 ~ GSAMP TRUST Series 2002-WMC1 Class B1 4.24%, 12/20/04 7,006 7,050 GSR MORTGAGE LOAN TRUST Series 2002-3F Class 2AB3 5.50%, 12/25/31 1 1 Series 2004-7 Class 1A2 3.49%, 06/25/34 11,012 10,743 =~ HOME EQUITY ASSET TRUST Series 2004-8 Class M1 2.67%, 12/27/04 22,000 22,000 HOME EQUITY MORTGAGE TRUST Series 2002-5 Class M2 4.63%, 04/25/33 10,000 10,130 ~ HOUSEHOLD MORTGAGE LOAN TRUST Series 2003-HC2 Class M 2.74%, 12/20/04 -- -- IMPAC CMB TRUST ~ Series 2002-7 Class A 2.61%, 12/27/04 33,020 33,093 ~ Series 2003-10 Class 1A1 2.53%, 12/27/04 9,923 9,930 INDYMAC HOME EQUITY LOAN ASSET-BACKED TRUST Series 2004-B Class M4 3.33%, 11/25/34 14,500 14,533 INDYMAC NIM TRUST SPMD Series 2004-B Class NOTE 5.75%, 11/25/34 8,700 8,680 IRWIN HOME EQUITY Series 2003-1 Class M2 4.18%, 02/25/08 5,000 5,097 LONG BEACH ASSET HOLDINGS, CORP. Series 2003-4 Class N1 6.54%, 08/25/33 207 207 LONG BEACH MORTGAGE LOAN TRUST ~ Series 2003-2 Class M1 3.00%, 12/27/04 8,000 8,050 ~ Series 2003-2 Class M3 4.43%, 12/27/04 2,190 2,232 ~ Series 2003-3 Class M4 5.68%, 12/27/04 10,000 10,097 ~ Series 2004-1 Class M6 3.58%, 12/27/04 8,000 8,066 MAIN STREET WAREHOUSE FUNDING TRUST ~ Series 2004-MSC 4.93%, 12/27/04 9,000 9,086 Series 2004-MSD Class Note 4.48%, 03/26/07 18,500 18,527 MASTER ASSET BACKED SECURITIES TRUST ~ Series 2002-OPT1 Class M2 4.13%, 12/27/04 10,000 10,144 ~ Series 2003-OPT1 Class A2 2.35%, 12/25/04 8,413 8,439 MBNA CREDIT CARD MASTER NOTE TRUST ~ Series 2003-B3 Class B3 2.48%, 12/15/04 6,000 6,026 ~ Series 2003-C3 Class C3 3.45%, 12/15/04 10,920 11,173 MBNA MASTER CREDIT CARD TRUST ~ Series 1999-L Class C 3.18%, 12/15/04 8,000 8,120 ~ Series 2000-H Class B 2.70%, 12/15/04 14,500 14,671 MERRILL LYNCH MORTGAGE INVESTORS, INC. ~ Series 2003-WMC2 Class M1 3.03%, 12/27/04 5,000 5,027 ~ Series 2003-WMC3 Class A2 2.54%, 12/27/04 20,655 20,693 ~ Series 2003-WMC3 Class M3 3.83%, 12/27/04 2,000 2,026 ~ Series 2003-WMC3 Class M4 3.93%, 12/27/04 2,913 2,974 ~ MMCA AUTOMOBILE TRUST Series 2002-5 Class C 4.25%, 12/15/04 2,593 2,598 MORGAN STANLEY ABS CAPITAL I ~ Series 2003-HE3 Class M1 2.86%, 12/27/04 9,403 9,460 ~ Series 2003-NC6 Class M1 2.98%, 12/27/04 17,500 17,682 Series 2003-NC8N 7.60%, 09/25/33 1,537 1,541 Series 2004-HE8 Class M1 2.82%, 11/25/34 19,810 19,868 ~ Series 2004-HE9 Class M4 3.09%, 12/27/04 15,000 15,000 Series 2004-NC1N Class Note 7.00%, 12/25/33 4,456 4,438
5 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Series 2004-NC2N 6.25%, 12/25/33 1,789 1,789 Series 2004-NC3N Class Note 6.00%, 03/25/34 3,975 3,968 MORGAN STANLEY AUTO LOAN TRUST Series 2003-HB1 Class B 2.22%, 04/15/11 6,110 6,034 Series 2004-HB1 Class C 2.88%, 01/15/05 4,545 4,539 Series 2004-HB2 Class C 3.24%, 03/15/12 4,980 4,968 Series 2004-HB2 Class D 3.59%, 03/15/12 990 989 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-8AR Class 3A 5.08%, 10/25/34 23,265 23,641 NEW CENTURY HOME EQUITY LOAN TRUST ~ Series 2003-3 Class M3 4.56%, 12/27/04 7,686 7,952 ~ Series 2004-2 Class A3 2.43%, 12/27/04 22,338 22,350 Series 2004-3 Class M1 2.80%, 11/25/34 14,000 14,021 NOVASTAR HOME EQUITY LOAN ~ Series 2003-3 Class B2 6.08%, 12/27/04 4,350 4,586 Series 2003-3 Class M1 2.93%, 12/25/33 4,700 4,741 ~ Series 2003-3 Class M2 3.83%, 12/27/04 10,000 10,310 ~ Series 2003-4 Class B1 4.68%, 12/27/04 2,500 2,603 ~ Series 2003-4 Class M1 2.89%, 12/27/04 20,000 20,148 ~ Series 2004-1 Class B1 3.88%, 12/27/04 5,950 5,963 ~ Series 2004-1 Class B2 3.98%, 12/27/04 5,800 5,808 ~ Series 2004-2 Class B1 4.13%, 12/27/04 7,900 7,971 ~ Series 2004-2 Class M4 3.38%, 12/27/04 13,000 13,052 ~ Series 2004-4 Class B1 2.05%, 12/27/04 10,000 10,000 NOVASTAR NIM TRUST Series 2003-N1 7.39%, 06/01/33 289 289 Series 2004-N1 4.46%, 12/26/04 3,995 3,988 ~ Series 2004-N2 4.46%, 12/25/04 8,559 8,518 OPTION ONE MORTGAGE LOAN TRUST ~ Series 2002-4 Class M1 2.78%, 12/27/04 13,938 13,993 ~ Series 2003-1 Class M1 3.08%, 02/25/33 13,000 13,131 ~ Series 2003-2 Class M1 2.83%, 04/25/33 15,000 15,110 ~ Series 2003-3 Class N 2.49%, 12/27/04 547 547 ~ Series 2004-1 Class M2 3.28%, 12/27/04 3,800 3,820 ~ Series 2004-1 Class M3 3.53%, 12/27/04 5,000 5,033 ~ Series 2004-2 Class M1 2.71%, 12/27/04 7,000 7,007 OPTION ONE MORTGAGE SECURITIES CORP. NIM Series 2003-2B Class N1 7.63%, 04/25/33 29 29 ~ OVERTURE CDO (JERSEY) LTD. Series IA Class B1 2.94%, 01/10/05 1,650 1,662 ~ PARK PLACE SECURITIES NIM TRUST Series 2004-WHQ2 Class A 4.00%, 12/27/04 7,350 7,339 RESIDENTIAL ASSET SECURITIES CORP. ~ Series 2003-KS6 Class M2 3.68%, 12/27/04 15,300 15,472 ~ Series 2004-KS2 Class M22 3.18%, 12/27/04 9,000 9,005 RYDER VEHICLE LEASE TRUST Series 2001-A Class CTFS 6.75%, 03/15/12 10,000 10,450 SAIL NET INTEREST MARGIN NOTES Series 2003-12A Class A 7.35%, 11/27/33 1,093 1,089 Series 2004-AA Class A 4.50%, 10/27/34 9,960 9,926 ~ SAKS CREDIT CARD MASTER TRUST Series 2001-2 Class B 2.75%, 12/15/04 2,800 2,822 ~ SAXON ASSET SECURITIES TRUST Series 2004-1 Class M2 3.31%, 03/25/35 12,650 12,684 SECURITIZED ASSET BACKED NIM TRUST Series 2004-DO2 Class NOTE 5.50%, 09/25/34 8,823 8,780 Series 2004-NC2 Class N 5.75%, 07/25/34 7,761 7,760 Series 2004-OP2 Class N 5.50%, 08/25/34 9,359 9,295 SHARPS SP I L.L.C. NET INTEREST MARGIN TRUST Series 2004-FM1N Class N 6.16%, 09/25/34 2,317 2,316 Series 2004-HE2N Class NA 5.43%, 10/25/34 7,073 7,044 Series 2004-OP1N Class NA 5.19%, 04/25/34 4,438 4,428 ~ STRUCTURED ASSET INVESTMENT LOAN TRUST Series 2003-BC1 Class A2 2.52%, 12/27/04 33,464 33,532 STRUCTURED ASSET SECURITIES CORP. ~ Series 1998-8 Class B 3.48%, 12/27/04 753 754 ~ Series 2004-S2 Class M2 2.78%, 12/27/04 14,600 14,608 ~ TERRAPIN FUNDING, L.L.C. Series 2003-1A Class B1 3.14%, 12/08/04 20,000 20,074 THORNBURG MORTGAGE SECURITIES TRUST Series 2004-1 Class II2A 3.37%, 04/25/34 25,007 24,328 UCFC HOME EQUITY LOAN Series 1998-B Class A7 6.53%, 10/15/29 9,800 10,077
6 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) ~ WELLS FARGO HOME EQUITY TRUST Series 2004-2 Class M8B 5.00%, 12/01/04 9,925 8,074 WELLS FARGO MORTGAGE BACKED SECURITIES TRUST Series 2004-T Class A1 3.46%, 09/25/34 23,022 22,867 WFS FINANCIAL OWNER TRUST Series 2002-2 Class A4 4.50%, 02/20/10 1,200 1,215 Series 2004-1 Class A4 2.81%, 08/22/11 1,000 982 Series 2004-1 Class C 2.49%, 08/22/11 5,758 5,681 Series 2004-3 Class 3D 4.07%, 02/17/12 1,975 1,988 Series 2004-3 Class C 3.60%, 02/17/12 12,800 12,774 Series 2004-4 Class C 3.21%, 05/17/12 12,800 12,756 WHOLE AUTO LOAN TRUST Series 2003-1 Class B 2.24%, 03/15/10 13,800 13,692 ----------- 1,516,797 MORTGAGE-BACKED SECURITIES 13.0% of net assets COLLATERALIZED MORTGAGE OBLIGATIONS 6.7% ------------------------------------------------------------------------- BANK OF AMERICA MORTGAGE SECURITIES Series 2002-J Class A2 4.88%, 09/25/32 3,103 3,109 Series 2003-C Class 2A1 3.93%, 04/25/33 5,996 5,983 Series 2003-D Class 2A2 3.60%, 03/25/08 5,460 5,419 Series 2004-A Class 2A2 4.18%, 02/25/34 26,232 25,840 Series 2004-I Class 1A2 4.19%, 09/25/34 21,213 21,232 COUNTRYWIDE HOME LOANS Series 2001-HYB2 Class 2A1 6.35%, 11/30/31 718 720 Series 2002-1 Class 1A1 5.36%, 12/19/31 1,031 1,050 Series 2002-HYB1 Class 1A1 5.43%, 05/25/32 1,192 1,209 Series 2002-HYB2 Class 4A1 5.00%, 08/20/32 658 666 Series 2003-HYB1 Class 1A1 3.85%, 05/19/33 7,933 7,906 CS FIRST BOSTON MORTGAGE SECURITIES CORP. ~ Series 2000-HE1 Class M2 3.17%, 12/15/04 2,575 2,581 ~ Series 2001-HE17 Class M1 2.90%, 12/27/04 7,400 7,439 Series 2002-AR27 Class 1A1 5.42%, 10/25/32 2,315 2,377 Series 2002-AR28 Class 1A2 4.98%, 11/25/32 2,857 2,917 FANNIE MAE Series 2003-22 Class UK 4.00%, 09/25/31 8,910 8,778 ~ Series 2003-37 Class FK 2.98%, 05/25/33 4,861 4,865 FANNIE MAE (INTEREST ONLY) Series 2003-57 Class IB 5.00%, 06/25/18 31,742 4,486 FIFTH THIRD MORTGAGE LOAN TRUST ~ Series 2002-FTB1 Class 3A1 3.91%, 01/01/05 3,013 3,048 ~ Series 2002-FTB1 Series 2A1 6.27%, 12/01/04 4,158 4,165 FREDDIE MAC Series 61 Class D 9.30%, 11/15/20 638 639 =~ GLOBAL SIGNAL TRUST Series 2004-2A Class C 4.70%, 12/07/04 7,000 6,937 INDYMAC INDEX MORTGAGE LOAN TRUST (INTEREST ONLY) Series 2004-AR1 Class AX1 0.80%, 04/25/34 372,320 4,252 MASTER ADJUSTABLE RATE MORTGAGES TRUST Series 2002-4 Class 1A1 5.27%, 11/25/32 1,765 1,789 Series 2002-4 Class 2A1 5.48%, 11/25/32 1,710 1,746 Series 2002-4 Class 3A1 5.27%, 11/25/32 2,227 2,264 Series 2003-1 Class 1A1 4.15%, 12/25/32 187 187 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-5AR Class 3A4 4.66%, 07/25/34 13,313 13,405 Series 2004-8AR Class 4A1 5.47%, 10/25/34 9,728 9,881 = Series 2004-9 Class 2A 6.42%, 11/25/34 17,805 18,453 RESIDENTIAL ACCREDIT LOANS, INC. Series 1999-QS8 Class A1 6.50%, 06/25/14 3,221 3,251 Series 2004-QA3 Class NB21 4.55%, 08/25/34 10,138 10,115 RESIDENTIAL FUNDING SECURITIES CORP. Series 2001-RM1 Class A 6.18%, 12/25/29 176 176 SEQUOIA MORTGAGE TRUST (INTEREST ONLY) Series 2003-8 Class X1 0.80%, 01/20/34 263,993 3,128 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN Series 2004-14 Class 3A1 4.67%, 10/25/34 24,088 24,072 WASHINGTON MUTUAL Series 2002-AR19 Class A7 4.68%, 01/01/33 5,528 5,581 Series 2003-AR1 Class A6 4.56%, 01/25/33 2,874 2,895 Series 2003-AR8 Class A 4.03%, 08/25/33 9,334 9,312 Series 2003-AR9 Class 1A2A 2.34%, 09/25/33 11,623 11,606 WASHINGTON MUTUAL MSC MORTGAGE PASS-THROUGH TRUST Series 2001-AR1 Class A 6.03%, 12/12/31 668 679
7 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) WELLS FARGO MORTGAGE BACKED SECURITIES TRUST Series 2003-N Class 2A2 4.76%, 12/25/33 14,659 14,441 Series 2003-O Class 2A1 4.64%, 01/25/34 28,718 28,196 Series 2004-K Class 2A5 4.75%, 07/25/34 20,303 20,418 ----------- 307,213 U.S. GOVERNMENT AGENCY MORTGAGES 6.3% ------------------------------------------------------------------------- FANNIE MAE Pool# 0190186 7.00%, 11/01/08 1,662 1,733 Pool# 0190524 7.00%, 01/01/09 836 871 Pool# 0190669 7.00%, 03/01/09 852 897 Pool# 0303403 7.00%, 07/01/10 863 908 Pool# 0323453 7.00%, 11/01/13 888 943 Pool# 050905 6.50%, 10/01/08 2,000 2,101 Pool# 0535200 7.00%, 03/01/15 875 929 Pool# 0535213 7.00%, 03/01/15 2,212 2,347 Pool# 0545087 7.00%, 07/01/16 866 919 Pool# 0545707 7.00%, 06/01/17 1,796 1,906 Pool# 0555299 7.00%, 11/01/17 1,835 1,948 Pool# 0628452 7.00%, 02/01/17 981 1,041 Pool# 0665760 7.00%, 08/01/14 727 771 Pool# 0704218 7.00%, 07/01/08 1,173 1,233 Pool# 0725746 7.00%, 07/01/19 10,689 11,350 Pool# 0774156 7.00%, 10/01/14 5,786 6,141 Pool# 0787776 7.00%, 08/01/14 802 851 Pool# 124221 7.00%, 02/01/07 312 326 Pool# 124732 7.00%, 03/01/08 589 614 Pool# 124817 6.50%, 04/01/08 1,000 1,051 Pool# 13260 7.00%, 10/01/19 12,549 13,312 Pool# 161648 7.00%, 11/01/07 993 1,036 Pool# 180412 7.00%, 10/01/07 221 230 Pool# 188414 7.00%, 11/01/07 3 3 Pool# 190147 7.00%, 11/01/08 667 696 Pool# 190527 7.00%, 01/01/09 591 616 Pool# 190708 7.00%, 03/01/09 6 6 Pool# 190750 7.00%, 03/01/09 252 265 Pool# 190770 7.00%, 04/01/09 1,663 1,734 Pool# 250009 6.50%, 04/01/09 1,000 1,058 Pool# 250499 7.00%, 03/01/11 152 162 Pool# 251196 7.00%, 09/01/12 23 24 Pool# 252708 7.00%, 09/01/14 28 30 Pool# 252977 7.00%, 01/01/15 86 92 Pool# 253541 7.00%, 12/01/15 36 38 Pool# 254272 7.00%, 03/01/17 643 683 Pool# 254291 7.00%, 04/01/17 2,528 2,682 Pool# 255377 7.00%, 08/01/34 3,383 3,591 Pool# 255416 7.00%, 08/01/34 3,007 3,192 Pool# 255467 7.00%, 09/01/34 1,651 1,753 Pool# 303357 7.00%, 06/01/10 358 377 Pool# 303784 7.00%, 03/01/11 13 14 Pool# 313302 7.00%, 02/01/12 57 60 Pool# 313469 7.00%, 09/01/10 2 2 Pool# 313522 7.00%, 05/01/12 43 46 Pool# 323906 7.00%, 03/01/13 370 389 Pool# 323970 7.00%, 10/01/14 241 256 Pool# 325795 7.00%, 10/01/10 3 3 Pool# 326449 7.00%, 10/01/10 4 4 Pool# 398776 7.00%, 05/01/11 220 233 Pool# 401049 7.00%, 08/01/07 29 29 Pool# 500521 7.00%, 06/01/09 200 212 Pool# 50659 7.00%, 11/01/07 1,093 1,140 Pool# 50667 7.00%, 12/01/07 930 970 Pool# 50682 7.00%, 01/01/08 1,070 1,116 Pool# 50731 7.00%, 05/01/08 261 275
8 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Pool# 526933 7.00%, 01/01/15 104 111 Pool# 529057 7.00%, 03/01/15 74 79 Pool# 535235 7.00%, 12/01/11 1,571 1,663 Pool# 535314 6.24%, 08/01/39 1,565 1,620 Pool# 535395 7.00%, 03/01/08 304 317 Pool# 535461 7.00%, 07/01/15 428 454 Pool# 535468 7.00%, 12/01/09 629 661 Pool# 535492 6.50%, 11/01/09 5,000 5,253 Pool# 535626 6.50%, 12/01/11 1,000 1,063 Pool# 535631 7.00%, 12/01/15 3,096 3,286 Pool# 535662 7.00%, 01/01/16 365 387 Pool# 535675 7.00%, 01/01/16 400 425 Pool# 535740 7.00%, 12/01/15 518 550 Pool# 535801 7.00%, 03/01/16 116 123 Pool# 535952 7.00%, 04/01/16 905 961 Pool# 536005 7.00%, 12/01/14 716 760 Pool# 536367 7.00%, 05/01/15 34 36 Pool# 541800 7.00%, 06/01/15 110 117 Pool# 542497 7.00%, 07/01/15 12 13 Pool# 544849 3.86%, 05/01/19 6,197 6,246 Pool# 544869 4.08%, 08/01/35 10,042 10,173 Pool# 545034 7.00%, 12/01/15 214 227 Pool# 545202 7.00%, 07/01/16 166 176 Pool# 545369 7.00%, 09/01/16 504 535 Pool# 545478 7.00%, 03/01/12 6 6 Pool# 548205 7.00%, 01/01/16 167 177 Pool# 554700 7.00%, 11/01/15 249 265 Pool# 555418 6.50%, 01/01/18 5,000 5,303 Pool# 555532 7.00%, 12/01/17 3,673 3,898 Pool# 555534 6.50%, 04/01/18 1,000 1,061 Pool# 556594 7.00%, 10/01/15 2 2 Pool# 562314 7.00%, 01/01/16 46 49 Pool# 563434 6.05%, 07/01/31 745 776 Pool# 564177 7.00%, 12/01/15 2 2 Pool# 567601 7.00%, 02/01/16 109 116 Pool# 586276 5.80%, 06/01/31 469 488 Pool# 598596 6.10%, 07/01/31 762 787 Pool# 606440 6.50%, 09/01/16 117 124 Pool# 606857 5.53%, 10/01/31 3,121 3,199 Pool# 607308 6.05%, 08/01/31 1,250 1,291 Pool# 610546 5.80%, 11/01/31 959 994 Pool# 613101 5.56%, 11/01/31 1,276 1,318 Pool# 621636 5.15%, 01/31/31 1,877 1,935 Pool# 624169 7.00%, 02/01/17 28 29 Pool# 627652 7.00%, 02/01/17 215 229 Pool# 629117 7.00%, 04/01/17 316 336 Pool# 629155 7.00%, 04/01/08 1,459 1,521 Pool# 646173 7.00%, 06/01/17 1,511 1,604 Pool# 650503 6.50%, 06/01/17 1,900 2,015 Pool# 660726 7.00%, 08/01/16 104 111 Pool# 662856 7.00%, 11/01/17 442 469 Pool# 677841 6.50%, 01/01/18 2,000 2,121 Pool# 684776 6.50%, 05/01/18 2,000 2,121 Pool# 721770 7.00%, 08/01/09 443 469 Pool# 723297 7.00%, 01/01/17 471 500 Pool# 723717 7.00%, 12/01/07 4,583 4,778 Pool# 725337 7.00%, 01/01/19 15,625 16,541 Pool# 725675 6.50%, 12/01/18 1,000 1,062 Pool# 725676 7.00%, 12/01/17 2,783 2,947 Pool# 725718 7.00%, 07/01/19 1,728 1,834 Pool# 725828 4.04%, 05/01/34 21,700 22,044 Pool# 725954 7.00%, 05/01/11 877 922 Pool# 735071 6.50%, 11/01/19 9,000 9,544 Pool# 735072 6.50%, 11/01/19 15,901 16,862
9 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Pool# 744150 7.00%, 08/01/11 1,802 1,907 Pool# 759660 7.00%, 01/01/16 17 18 Pool# 759777 6.50%, 08/01/17 1,000 1,061 Pool# 765381 7.00%, 07/01/08 598 629 Pool# 768901 7.00%, 05/01/13 50 51 Pool# 769012 7.00%, 09/01/16 1,979 2,101 Pool# 769196 7.00%, 01/01/19 529 562 Pool# 774154 6.50%, 12/01/14 5,000 5,310 Pool# 776360 7.00%, 03/01/16 658 692 Pool# 777934 7.00%, 09/01/17 1,864 1,960 Pool# 780859 7.00%, 04/01/16 996 1,057 Pool# 785082 7.00%, 06/01/09 440 462 Pool# 786125 7.00%, 07/01/34 12,452 13,218 Pool# 787528 6.50%, 09/01/19 3,900 4,138 Pool# 789624 7.00%, 08/01/34 5,899 6,262 Pool# 791118 7.00%, 07/01/34 1,897 2,014 Pool# 791917 7.00%, 08/01/34 2,720 2,887 Pool# 792006 7.00%, 09/01/34 1,687 1,790 Pool# 792799 6.50%, 09/01/17 1,000 1,063 Pool# 793676 7.00%, 09/01/34 1,717 1,823 Pool# 795754 6.50%, 07/01/14 1,000 1,063 Pool# 795755 7.00%, 01/01/15 980 1,040 Pool# 351943 7.00%, 10/01/11 8 9 = TBA 7.00%, 12/01/19 9,000 9,546 FREDDIE MAC Pool# 786823 6.10%, 07/01/29 2,526 2,641 Pool# 788677 5.45%, 10/01/31 1,477 1,518 Pool# 846902 6.53%, 04/01/31 1,254 1,281 Pool# G11226 5.50%, 08/01/11 1,098 1,137 Pool# M80685 6.00%, 05/01/08 285 291 ----------- 287,826 MUNICIPAL BONDS 0.2% of net assets FIXED-RATE OBLIGATIONS 0.2% ------------------------------------------------------------------------- CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series E 3.98%, 05/01/05 9,500 9,542 U.S. GOVERNMENT SECURITIES 0.0% of net assets TREASURY BILLS 0.0% ------------------------------------------------------------------------- U.S. TREASURY BILLS @ 1.61%, 12/09/04 75 75 @ 1.88%, 01/27/05 300 299 @ 2.10%, 02/17/05 1,000 995 ----------- 1,369 COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 1.0% of net assets COMCAST CABLE COMMUNICATIONS, 144A 2.34%, 12/02/04 19,000 18,999 COX COMMUNICATIONS, INC., SECTION 4(2) 2.25%, 12/01/04 26,000 26,000 ----------- 44,999
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) PREFERRED STOCK 5.6% of net assets ~/(3) ABN AMRO North America Capital Funding, 144A 555,000 54,190 / ABN AMRO XIX Custodial Receipts, Series MM19 130,000 13,267 Chase Capital VIII 150,000 3,939 ~/(7) Fannie Mae, Series J 987,000 48,575 ~/ Fannie Mae, Series K 641,300 32,125 RC Trust I 240,000 12,640 ~ SG Preferred Capital II 200,000 20,402 ~/ Shell Frontier Oil & Gas, Series A 120,000 12,000 ~/ Shell Frontier Oil & Gas, Series B 120,000 12,000 ~/ Shell Frontier Oil & Gas, Series C 120,000 12,000 ~/ Shell Frontier Oil & Gas, Series D 58,000 5,800 ~/ Zurich Regcaps Funding Trust III, 144A 215,000 21,030 ~/ Zurich Regcaps Funding Trust V 144A 50,000 4,685 ----------- 252,653
10 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS continued
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 0.0% of net assets Provident Institutional Funds - Fed Funds Portfolio 717,481 717
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $4,595,153, and the unrealized gains and losses were $19,431 and ($13,563), respectively. The fund's portfolio holdings include certain restricted but deemed liquid 144A and Section 4(2) securities worth $497,148 or 10.9% of the fund's total net assets. In addition to the above, the fund held the following at 11/30/04. All numbers x 1,000 FUTURES CONTRACTS
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS/(LOSSES) 2 Year, Short U.S Treasury Note, expires 03/31/05 650 136,134 (71) 5 Year Short U.S Treasury Note, expires 03/21/05 1,275 138,756 436 -------------- 365
11 SCHWAB INVESTMENTS SCHWAB SHORT-TERM BOND MARKET FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding = Delayed-delivery security ~ Variable-rate security / Callable security @ All or a portion of this security is held as collateral for futures contracts and delayed-delivery security * All or portion of the security is on loan For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 51.2% U.S. GOVERNMENT SECURITIES 381,350 379,167 22.4% CORPORATE BONDS 165,810 166,382 15.9% MORTGAGE-BACKED SECURITIES 118,920 118,104 7.0% ASSET-BACKED OBLIGATIONS 51,803 51,863 2.3% COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 17,000 17,000 1.0% PREFERRED STOCK 7,339 7,391 0.1% OTHER INVESTMENT COMPANIES 537 537 - -------------------------------------------------------------------------------- 99.9% TOTAL INVESTMENTS 742,759 740,444 20.8% COLLATERAL INVESTED FOR SECURITIES ON LOAN 154,330 154,330 (20.7)% OTHER ASSETS AND LIABILITIES (152,916) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 740,858
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) U.S. GOVERNMENT SECURITIES 51.2% of net assets U.S. GOVERNMENT AGENCY SECURITIES 20.6% -------------------------------------------------------------------------- FANNIE MAE *(7) 4.38%, 10/15/06 20,000 20,437 2.63%, 11/15/06 12,000 11,872 5.00%, 01/15/07 5,000 5,179 (3) 3.13%, 12/15/07 30,000 29,682 * 6.63%, 09/15/09 11,500 12,815 FEDERAL HOME LOAN BANK (6) 5.13%, 03/06/06 20,000 20,534 @(1) 3.38%, 09/14/07 35,000 34,956 FREDDIE MAC @ 5.25%, 01/15/06 3,000 3,075 @ 2.75%, 08/15/06 4,000 3,977 * 3.50%, 09/15/07 10,000 10,033 ----------- 152,560 U.S. TREASURY OBLIGATIONS 30.6% -------------------------------------------------------------------------- @ U.S. TREASURY BILLS 1.60%, 12/09/04 275 275 U.S. TREASURY NOTES * 1.63%, 02/28/06 10,000 9,863 6.88%, 05/15/06 3,500 3,701 * 2.50%, 05/31/06 10,450 10,398 * 7.00%, 07/15/06 10,000 10,647 2.75%, 07/31/06 2,000 1,995 (2) 2.38%, 08/15/06 32,800 32,509 * 2.38%, 08/31/06 2,000 1,981 6.50%, 10/15/06 9,000 9,576 * 2.63%, 11/15/06 8,800 8,740 *(5) 2.25%, 02/15/07 25,000 24,574 * 6.25%, 02/15/07 5,000 5,339 *(9) 3.13%, 05/15/07 15,000 14,998 4.38%, 05/15/07 5,500 5,661 * 3.25%, 08/15/07 11,000 11,017 3.00%, 11/15/07 5,000 4,964 *(4) 2.63%, 05/15/08 27,000 26,350 * 5.63%, 05/15/08 1,000 1,073 * 3.25%, 08/15/08 11,000 10,930 * 3.13%, 09/15/08 3,000 2,965 * 3.38%, 11/15/08 3,000 2,987 * 3.38%, 12/15/08 5,000 4,974 * 3.88%, 05/15/09 2,000 2,022 * 4.00%, 06/15/09 8,500 8,630 * 3.63%, 07/15/09 7,700 7,692 * 3.38%, 10/15/09 2,785 2,746 ----------- 226,607 CORPORATE BONDS 22.4% of net assets FINANCE 9.0% -------------------------------------------------------------------------- BANKING 4.7% ~ CITIGROUP 2.00%, 12/09/04 5,000 5,019 ~/ DEUTSCHE BANK CAPITAL TRUST, 144A Class B 3.97%, 12/30/04 8,000 8,219 ~ DORAL FINANCIAL CORP. 2.91%, 01/20/05 2,000 2,003 ~ J P MORGAN CHASE & CO. 2.16%, 01/03/05 5,000 5,006 @ POPULAR NORTH AMERICA, INC. 3.88%, 10/01/08 4,000 3,978 ~/ RBS CAPITAL TRUST IV 2.78%, 12/30/04 2,000 2,014 ~/ SOVEREIGN BANK 4.38%, 08/01/13 3,800 3,783
1 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) /@ SVENSKA HANDELSBANKEN, 144A 7.13%, 03/07/49 5,000 5,362 ----------- 35,384 BROKERAGE 1.8% ~ CREDIT SUISSE FINANCIAL PRODUCTS 2.57%, 12/06/04 3,000 3,015 ~ GOLDMAN SACHS GROUP, INC. 2.43%, 01/23/05 5,000 5,013 @ MORGAN STANLEY 3.88%, 01/15/09 5,000 4,959 ----------- 12,987 FINANCE COMPANIES 2.2% @ CAPITAL ONE FINANCIAL 7.13%, 08/01/08 4,470 4,888 ~ GENERAL ELECTRIC CAPITAL CORP. 2.25%, 01/15/04 5,000 5,007 ~@ HOUSEHOLD FINANCE CORP. 4.75%, 05/15/09 3,000 3,067 INTERNATIONAL LEASE FINANCE CORP. 2.41%, 01/18/05 3,000 2,994 ----------- 15,956 INSURANCE 0.3% / NATIONWIDE CSN TRUST, 144A 9.88%, 02/15/25 2,000 2,116 INDUSTRIAL 9.8% -------------------------------------------------------------------------- CAPITAL GOODS 1.0% BAE ASSET SYSTEMS 2001 ASSET TRUST, 144A Series 2001 Class G 6.66%, 09/15/13 7,324 8,036 COMMUNICATIONS 2.2% AMERICA MOVIL SA DE CV, 144A 2.74%, 01/27/05 3,000 2,977 / DIRECTV HOLDINGS/FINANCE 8.38%, 03/15/13 3,000 3,383 ~/ ROGERS WIRELESS, INC. 144A 5.47%, 12/15/04 1,000 1,040 @ SBC COMMUNICATIONS 4.13%, 09/15/09 1,000 992 SPRINT CAPITAL CORP. 6.38%, 05/01/09 3,000 3,248 / TCI COMMUNICATIONS FINANCING III 9.65%, 03/31/27 2,000 2,332 @ TELEFONOS DE MEXICO SA, 144A 4.50%, 11/19/08 2,000 2,014 ----------- 15,986 CONSUMER CYCLICAL 4.2% @ AUTONATION, INC. 9.00%, 08/01/08 2,000 2,290 D. R. HORTON, INC. 5.00%, 01/15/09 2,000 2,030 * DAIMLER-CHRYSLER, N.A. HOLDINGS 7.20%, 09/01/09 5,000 5,542 / DANA CORP. 10.13%, 03/15/10 2,000 2,270 @ FORD MOTOR CREDIT CO. 5.80%, 01/12/09 3,000 3,060 ~ GENERAL MOTORS ACCEPTANCE CORP. 3.08%, 12/23/04 2,000 1,977 @ INTERNATIONAL SPEEDWAY CORP., 144A 4.20%, 05/15/09 3,000 2,977 MANDALAY RESORT GROUP, 144A 6.50%, 07/31/09 3,000 3,154 /@ RYLAND GROUP, INC. 9.13%, 06/15/11 2,000 2,247 / STANDARD PACIFIC CORP. 9.50%, 09/15/10 1,000 1,087 TIME WARNER ENTERTAINMENT CO. 7.25%, 09/01/08 2,000 2,218 TOLL CORP. / 8.00%, 05/01/09 2,000 2,085 / 8.25%, 02/01/11 650 709 ----------- 31,646 CONSUMER NON-CYCLICAL 1.1% / ANHEUSER BUSCH COS, INC. 5.75%, 01/15/11 1,500 1,534 @ FRESENIUS MEDICAL CAPITAL TRUST II 7.88%, 02/01/08 800 870 @ MANOR CARE, INC. 8.00%, 03/01/08 2,483 2,743 @ MILLER BREWING CO., 144A 4.25%, 08/15/08 2,000 2,013 ~ STATER BROTHERS HOLDINGS 5.38%, 12/15/04 1,000 1,027 ----------- 8,187 ENERGY 0.6% ~/@ HUSKY OIL LTD. 8.90%, 08/15/08 4,009 4,588 TECHNOLOGY 0.1% ~/ FREESCALE SEMICONDUCTOR, 144A 4.82%, 01/15/05 500 520 TRANSPORTATION 0.6% ~ HERTZ CORP. 3.40%, 02/07/05 2,000 2,012 UNION PACIFIC CORP. 7.25%, 11/01/08 2,240 2,475 ----------- 4,487 SOVEREIGN 0.7% -------------------------------------------------------------------------- ~/ INDUSTRIAL BANK OF KOREA, 144A 4.00%, 05/19/09 500 490 @ REPUBLIC OF SOUTH AFRICA 9.13%, 05/19/09 4,000 4,740 ----------- 5,230 UTILITIES 2.9% -------------------------------------------------------------------------- @ APPALACHIAN POWER CO. 3.60%, 05/15/08 4,000 3,942 @ ATMOS ENERGY CORP. 4.00%, 10/15/09 2,000 1,967 @ CENTERPOINT ENERGY RESOURCES, INC. 6.50%, 02/01/08 3,000 3,219 / COLUMBIA GAS SYSTEMS INC. 7.32%, 11/28/10 3,131 3,237 ENTERGY GULF STATES 4.88%, 11/01/11 2,000 1,974
2 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) @ OHIO EDISON CO. 4.00%, 05/01/08 2,000 1,990 PACIFIC GAS AND ELECTRIC CO. 3.60%, 03/01/09 3,000 2,936 @ PUBLIC SERVICES ELECTRIC & GAS Series C 4.00%, 11/01/08 2,000 1,994 ----------- 21,259 MORTGAGE-BACKED SECURITIES 15.9% of net assets COLLATERALIZED MORTGAGE OBLIGATIONS 7.4% -------------------------------------------------------------------------- COUNTRYWIDE HOME LOANS Series 2004-HYB5 Class 3A1 4.78%, 04/20/35 9,432 9,544 FREDDIE MAC Series 2574 Class JM 5.00%, 03/31/33 6,062 6,132 FREDDIE MAC STRUCTURED PASS THROUGH SECURITIES Series H006 Class A2 2.84%, 02/15/10 9,874 9,781 (10) Series H010 Class A3 2.72%, 04/15/10 15,000 14,605 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-8AR Class 4A1 5.47%, 10/25/34 9,728 9,880 = Series 2004-9 Class 2A 6.42%, 11/25/34 5,000 5,182 ----------- 55,124 U.S. GOVERNMENT AGENCY MORTGAGES 8.5% -------------------------------------------------------------------------- FANNIE MAE Pool# 777934 7.00%, 10/01/08 1,643 1,729 Pool# 723718 7.00%, 03/01/09 1,634 1,718 Pool# 785082 7.00%, 06/01/09 869 914 Pool# 744150 7.00%, 08/01/11 862 913 Pool# 788295 7.00%, 03/01/13 857 910 Pool# 776388 5.50%, 07/01/19 5,713 5,900 (8) Pool# 2980 5.50%, 07/01/19 16,673 17,213 Pool# 725718 7.00%, 07/01/19 2,592 2,751 Pool# 790925 5.50%, 09/01/19 6,604 6,820 Pool# 801152 5.00%, 10/01/19 12,000 12,176 Pool# 255546 4.50%, 11/01/19 12,000 11,936 ----------- 62,980 ASSET-BACKED OBLIGATIONS 7.0% of net assets ALTER MONETA RECEIVABLES, L.L.C. Series 2003-1 2.56%, 03/15/11 1,304 1,290 AMERIQUEST FINANCE NIM TRUST Series 2004-RN4 Class A 4.60%, 07/25/34 1,072 1,069 AMERIQUEST MORTGAGE SECURITIES, INC. ~ Series 2004-R8 Class M7 4.11%, 12/27/04 1,000 1,007 ~ Series 2004-R8 Class M9 4.93%, 12/27/04 1,200 1,099 ~ ARIA CDO I (JERSEY) LTD. Series IA-3 Class B1U5 2.97%, 04/07/05 2,000 2,009 ~ FREMONT HOME LOAN TRUST Series 2003-B Class M2 3.80%, 12/27/04 5,000 5,109 ~@ HOUSEHOLD MORTGAGE LOAN TRUST Series 2003-HC2 Class M 2.74%, 12/20/04 1,862 1,864 ~ LONG BEACH MORTGAGE LOAN TRUST Series 2003-4 Class M3 4.33%, 12/27/04 4,200 4,292 ~ MAIN STREET WAREHOUSE FUNDING TRUST Series 2004-MSD Class Note 4.48%, 12/27/04 5,425 5,433 MORGAN STANLEY ABS CAPITAL I Series 2003-NC8N 7.60%, 09/25/33 234 234 Series 2004-NC3N Class Note 6.00%, 03/25/34 874 873 NOVASTAR HOME EQUITY LOAN ~ Series 2004-2 Class B1 4.13%, 12/27/04 2,000 2,018 ~ Series 2004-2 Class M4 3.38%, 12/27/04 3,000 3,012 NOVASTAR NIM TRUST Series 2004-N1 4.46%, 02/25/34 1,180 1,178 Series 2004-N2 4.46%, 07/25/34 1,218 1,212 ~ OPTION ONE MORTGAGE LOAN TRUST Series 2003-3 Class N 2.49%, 12/27/04 547 547 RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC. Series 2003-RZ3 Class A3 2.14%, 02/25/30 10,000 9,929 SECURITIZED ASSET BACKED NIM TRUST Series 2004-DO2 Class NOTE 5.50%, 09/25/34 2,823 2,810 Series 2004-OP2 Class N 5.50%, 08/25/34 1,872 1,859 ~ TERRAPIN FUNDING, L.L.C. Series 2003-1A Class B1 3.36%, 12/08/04 5,000 5,019 ----------- 51,863 COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 2.3% of net assets COMCAST CABLE COMMUNICATIONS, 144A 2.30%, 12/01/04 5,000 5,000
3 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) COX COMMUNICATIONS, INC., SECTION 4(2) 2.25%, 12/01/04 12,000 12,000 ----------- 17,000
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) PREFERRED STOCK 1.0% of net assets ~/ Shell Frontier Oil & Gas, Series D 25,000 2,500 ~/ Zurich Regcaps Funding Trust III, 144A 50,000 4,891 ----------- 7,391 OTHER INVESTMENT COMPANIES 0.1% of net assets Provident Institutional Funds - Fed Funds Portfolio 537,344 537
END OF INVESTMENTS. COLLATERAL INVESTED FOR SECURITIES ON LOAN 20.8% of net assets
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 0.1% -------------------------------------------------------------------------- INSTITUTIONAL MONEY MARKET TRUST 1,113,349 1,113
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) SHORT-TERM INVESTMENTS 20.7% -------------------------------------------------------------------------- PARK GRANADA 2.07%, 12/01/04 23,019 23,019 DEUTSCHE BANKB TIME DEPOSIT 1.98%, 12/01/04 7,422 7,422 WESTLB TIME DEPOSIT 2.07%, 12/01/04 122,776 122,776 ----------- 153,217
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. At 11/30/04, the tax basis cost of the fund's investments was $743,030, and the unrealized gains and losses were $2,473 and ($5,059), respectively. The fund's portfolio holdings include certain restricted but deemed liquid 144A and Section 4(2) securities worth $60,809 or 7.0%. Also, includes securities on loan worth $150,415 or 20.3% of the fund's total net assets. 4 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS continued In addition to the above, the fund held the following at 11/30/04. All numbers x 1,000 FUTURES CONTRACTS
Number of Contract Unrealized Contracts Value Gains/(Losses) 2 Year, Short U.S. Treasury Note, expires 03/31/05 270 56,548 17
5 SCHWAB INVESTMENTS SCHWAB TOTAL BOND MARKET FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semiannual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding = Delayed-delivery security ~ Variable-rate security / Callable security @ All or a portion of this security is held as collateral for futures contracts and delayed-delivery security * All or portion of the security is on loan For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - ------------------------------------------------------------------------------- 42.3% MORTGAGE-BACKED SECURITIES 453,138 454,614 28.4% U.S. GOVERNMENT SECURITIES 303,445 305,214 24.7% ASSET-BACKED OBLIGATIONS 265,417 265,678 20.2% CORPORATE BONDS 215,780 217,238 7.7% COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 82,796 82,796 1.7% PREFERRED STOCK 17,211 17,695 0.1% OTHER INVESTMENT COMPANIES 711 711 - ------------------------------------------------------------------------------- 125.1% TOTAL INVESTMENTS 1,338,498 1,343,946 12.0% COLLATERAL INVESTED FOR SECURITIES ON LOAN 128,600 128,600 (37.1)% OTHER ASSETS AND LIABILITIES (398,416) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 1,074,130
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) MORTGAGE-BACKED SECURITIES 42.3% of net assets COLLATERALIZED MORTGAGE OBLIGATIONS 2.8% -------------------------------------------------------------------------- @ FREDDIE MAC Series 2574 Class JM 5.00%, 03/31/33 6,062 6,132 (8) FREDDIE MAC STRUCTURED PASS THROUGH SECURITIES Series H010 Class A3 2.72%, 04/15/10 25,000 24,342 ----------- 30,474 U.S. GOVERNMENT AGENCY MORTGAGES 39.5% --------------------------------------------------------------------------- FANNIE MAE Pool# 313346 7.00%, 04/16/06 197 202 Pool# 177450 7.00%, 06/21/07 12 12 Pool# 187589 7.00%, 07/21/07 22 23 Pool# 199468 7.00%, 08/26/07 143 149 Pool# 234418 7.00%, 05/30/08 157 165 Pool# 243050 7.00%, 06/21/08 146 153 @ Pool# 535662 7.00%, 09/24/08 2,676 2,840 Pool# 536805 7.00%, 11/14/08 3 4 Pool# 622533 7.00%, 06/21/09 180 191 Pool# 322816 7.00%, 09/09/09 26 28 Pool# 327130 7.00%, 10/30/09 66 70 Pool# 344397 7.00%, 06/28/10 17 18 Pool# 404280 7.00%, 10/09/10 47 50 Pool# 417450 7.00%, 07/06/11 23 24 Pool# 392512 7.00%, 09/24/11 6 7 Pool# 390378 7.00%, 10/02/11 16 17 Pool# 550860 7.00%, 12/06/11 27 29 Pool# 323437 5.50%, 05/08/12 346 358 Pool# 613008 7.00%, 05/08/12 391 415 Pool# 482675 5.50%, 07/27/12 120 124 Pool# 488587 5.50%, 08/11/12 74 77 Pool# 535633 5.50%, 08/11/12 6 6 Pool# 440789 5.50%, 09/02/12 7 8 Pool# 491110 5.50%, 09/02/12 151 156 Pool# 496816 5.50%, 10/15/12 41 42 Pool# 482550 5.50%, 11/21/12 29 30
1 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Pool# 492793 5.50%, 11/28/12 39 40 Pool# 527268 7.00%, 01/11/13 7 8 Pool# 537374 7.00%, 01/18/13 5 6 Pool# 498293 7.00%, 05/30/13 10 11 Pool# 539782 7.00%, 07/13/13 15 16 Pool# 556587 7.00%, 11/14/13 54 57 Pool# 253430 7.00%, 01/04/14 159 169 Pool# 574866 5.50%, 03/04/14 26 27 Pool# 550568 7.00%, 03/11/14 229 243 Pool# 550415 7.00%, 03/25/14 40 42 Pool# 572123 5.50%, 04/09/14 30 31 Pool# 572726 7.00%, 04/09/14 50 54 Pool# 570681 5.50%, 05/30/14 3 3 Pool# 253666 7.00%, 06/14/14 185 197 Pool# 253797 5.50%, 06/21/14 908 938 Pool# 572133 7.00%, 06/28/14 29 30 Pool# 572794 7.00%, 07/13/14 19 20 Pool# 535944 7.00%, 08/04/14 317 336 Pool# 580055 5.50%, 09/09/14 29 30 Pool# 505038 5.50%, 10/01/14 6 6 Pool# 569314 5.50%, 10/16/14 30 31 Pool# 604966 5.50%, 01/19/15 18 18 Pool# 587851 5.50%, 01/26/15 34 35 Pool# 545400 5.50%, 02/03/15 385 398 Pool# 545411 5.50%, 02/03/15 459 475 Pool# 609703 5.50%, 02/17/15 378 391 Pool# 622466 5.50%, 02/24/15 19 19 Pool# 711583 5.50%, 03/26/15 17 17 Pool# 638392 5.50%, 04/24/15 743 768 Pool# 608827 7.00%, 04/24/15 12 13 Pool# 625942 5.50%, 05/30/15 28 29 Pool# 555291 5.50%, 06/29/15 869 898 Pool# 623761 7.00%, 07/13/15 52 55 Pool# 555352 5.50%, 09/02/15 393 406 Pool# 644496 5.50%, 09/10/15 520 537 Pool# 663217 5.50%, 09/24/15 42 44 Pool# 650126 7.00%, 09/24/15 65 69 Pool# 681185 5.50%, 11/07/15 38 39 Pool# 647546 5.50%, 11/22/15 24 25 Pool# 254607 7.00%, 11/22/15 400 424 Pool# 545967 5.50%, 11/29/15 41 42 Pool# 555456 5.50%, 11/29/15 558 576 Pool# 545034 7.00%, 12/01/15 113 120 Pool# 643839 7.00%, 12/06/15 73 77 Pool# 651274 7.00%, 12/06/15 496 527 Pool# 680035 5.50%, 12/14/15 64 67 Pool# 626827 5.50%, 01/05/16 46 47 Pool# 664109 5.50%, 01/27/16 42 43 Pool# 678973 5.50%, 01/27/16 33 34 Pool# 674151 5.50%, 02/10/16 41 43 Pool# 639919 5.50%, 02/25/16 411 424 Pool# 671599 5.50%, 03/25/16 51 52 Pool# 673022 5.50%, 03/25/16 486 502 Pool# 687154 5.50%, 04/01/16 30 31 Pool# 679284 7.00%, 04/09/16 29 31 Pool# 681386 5.50%, 05/15/16 40 41 Pool# 357350 5.50%, 05/22/16 135 139 Pool# 674742 5.50%, 05/22/16 477 493 Pool# 677606 5.50%, 05/22/16 34 35 @ Pool# 677469 5.50%, 05/22/16 1,295 1,339 Pool# 682986 5.50%, 06/28/16 24 25 Pool# 699526 5.50%, 11/06/16 31 32 @ Pool# 731473 5.50%, 08/01/17 1,088 1,124 Pool# 734622 5.00%, 07/01/19 977 991
2 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Pool# 734623 5.00%, 07/01/19 956 970 @ Pool# 254472 6.50%, 09/01/22 4,646 4,892 @ Pool# 628209 6.50%, 09/09/24 954 1,002 @ Pool# 635861 6.50%, 09/09/24 4,309 4,526 @ Pool# 545762 6.50%, 10/23/24 1,181 1,241 @ Pool# 644590 6.50%, 10/23/24 2,410 2,530 Pool# 670402 6.50%, 12/13/24 257 270 @ Pool# 555708 7.50%, 12/28/24 4,836 5,185 Pool# 656434 6.50%, 02/17/25 775 814 @ Pool# 680982 6.00%, 09/02/25 9,211 9,522 @ Pool# 694758 5.50%, 04/01/33 13,233 13,412 Pool# 646817 6.00%, 04/01/33 5,120 5,289 @ Pool# 720769 6.00%, 08/01/33 5,101 5,273 @ Pool# 727107 6.00%, 08/01/33 1,928 1,994 @ Pool# 740241 6.50%, 09/01/33 5,043 5,296 @ Pool# 744234 5.50%, 10/01/33 12,798 12,971 @ Pool# 781586 5.50%, 09/01/34 19,087 19,332 Pool# 799555 6.00%, 11/01/34 7,943 8,209 TBA = 4.50%, 01/01/20 20,000 19,825 = 5.00%, 01/01/20 15,000 15,164 =(1) 5.00%, 01/01/35 60,000 59,044 =(2) 5.50%, 01/01/35 55,000 55,498 = 6.50%, 01/01/35 14,000 14,665 FREDDIE MAC @ Pool# C65062 6.50%, 08/25/24 6,520 6,842 @ Pool# G01477 6.00%, 10/23/24 6,408 6,615 TBA =(4) 6.00%, 01/01/20 28,000 29,278 = 5.00%, 01/01/35 15,000 14,775 GINNIE MAE Pool# 781478 7.50%, 03/15/32 2,252 2,423 Pool# 614544 6.00%, 06/15/33 3,671 3,803 Pool# 616134 6.00%, 12/15/33 4,859 5,033 TBA =(5) 6.00%, 01/01/35 27,000 27,878 = 6.50%, 01/01/35 10,000 10,522 = 7.00%, 01/01/35 19,000 20,193 = 8.00%, 01/01/35 10,000 10,866 ----------- 424,140 U.S. GOVERNMENT SECURITIES 28.4% of net assets U.S. GOVERNMENT AGENCY SECURITIES 6.9% --------------------------------------------------------------------------- FANNIE MAE @* 6.00%, 05/15/08 5,000 5,383 @* 2.50%, 06/15/08 3,000 2,887 @(3) 6.63%, 09/15/09 32,500 36,216 @ 4.63%, 10/15/14 12,500 12,385 @ 6.63%, 11/15/30 4,000 4,639 @ FREDDIE MAC 2.75%, 10/15/06 12,500 12,409 ------------ 73,919 U.S. TREASURY OBLIGATIONS 21.5% --------------------------------------------------------------------------- TREASURY INFLATION PROTECTION SECURITY 1.88%, 07/15/13 18,500 19,545 2.00%, 07/15/14 10,000 10,312 U.S. TREASURY BILLS @ 1.60%, 12/09/04 295 295 @ 1.93%, 02/03/05 115 115 U.S. TREASURY BONDS @* 9.88%, 11/15/15 3,000 4,391 @ 7.25%, 05/15/16 2,500 3,094 9.00%, 11/15/18 7,000 10,011 8.00%, 11/15/21 7,000 9,446 * 7.25%, 08/15/22 6,500 8,226 6.25%, 08/15/23 12,700 14,576 * 6.13%, 11/15/27 7,500 8,556 * 5.25%, 02/15/29 5,000 5,114 * 6.13%, 08/15/29 1,000 1,145 * 6.25%, 05/15/30 5,000 5,830 * 5.38%, 02/15/31 17,510 18,435 U.S. TREASURY NOTES 1.63%, 02/28/06 4,000 3,945 * 2.00%, 05/15/06 3,000 2,966 * 2.50%, 05/31/06 7,000 6,965 * 2.75%, 07/31/06 3,000 2,993 2.38%, 08/15/06 2,500 2,478 * 6.50%, 10/15/06 12,900 13,726 * 2.63%, 11/15/06 6,000 5,959 * 6.63%, 05/15/07 2,000 2,164 * 3.25%, 08/15/07 1,500 1,502 * 6.13%, 08/15/07 2,000 2,151 3.00%, 02/15/08 20,175 19,984 * 3.13%, 09/15/08 6,750 6,672 * 3.13%, 10/15/08 2,000 1,975 * 3.38%, 12/15/08 1,000 995 4.00%, 06/15/09 2,000 2,031 * 3.38%, 10/15/09 5,035 4,965 * 6.50%, 02/15/10 600 678 * 5.75%, 08/15/10 2,100 2,304 * 5.00%, 02/15/11 19,100 20,217 * 4.25%, 08/15/14 5,000 4,956 * 4.25%, 11/15/14 2,600 2,578 ------------ 231,295 ASSET-BACKED OBLIGATIONS 24.7% of net assets ~ AEGIS ASSET BACKED SECURITIES TRUST Series 2003-1 Class A1 2.58%, 12/27/04 8,657 8,677
3 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) AMERIQUEST FINANCE NIM TRUST Series 2004-RN4 Class A 4.60%, 07/25/34 1,572 1,568 (10) AMERIQUEST MORTGAGE SECURITIES INC 2003-13 AV2 2.54%, 12/27/04 20,694 20,716 AMORTIZING RESIDENTIAL COLLATERAL TRUST 2002-BC6 A2 2.53%, 12/27/04 16,472 16,501 ~ ARIA CDO I (JERSEY) LTD. Series IA-3 Class B1U5 2.97%, 04/07/05 2,750 2,762 ~@ ASSET BACKED SECURITIES CORP. HOME EQUITY LOAN TRUST Series 2003-HE1 Class A2 2.60%, 12/15/04 3,775 3,793 ~ CAPITAL ONE MASTER TRUST Series 2001-2 Class C 3.20%, 12/15/04 6,000 6,032 ~@ CDC MORTGAGE CAPITAL TRUST Series 2003-HE2 Class M2 4.08%, 12/27/04 5,410 5,576 ~ CENTEX HOME EQUITY LOAN TRUST Series 2003-B Class M1 2.88%, 12/27/04 19,000 19,128 CHASE FUNDING MORTGAGE LOAN ASSET-BACKED Series 2003-2 Class 2A2 2.46%, 12/27/04 13,947 13,980 COUNTRYWIDE ASSET-BACKED CERTIFICATES ~@ Series 2001-3 Class M1 2.68%, 12/27/04 3,000 3,003 ~@ Series 2001-BC3 Class M1 2.73%, 12/27/04 3,749 3,754 ~@ Series 2002-3 Class M1 2.93%, 12/27/04 4,000 4,023 ~ FIRST FRANKLIN MORTGAGE LOAN ASSET-BACKED CERTIFICATES Series 2002-FF3 Class A2 2.64%, 12/27/04 6,072 6,092 @(6) IMPAC CMB TRUST Series 2003-10 Class 1A1 2.53%, 12/27/04 26,461 26,479 ~@ LONG BEACH MORTGAGE LOAN TRUST Series 2003-4 Class M3 4.33%, 12/27/04 5,500 5,621 ~ MAIN STREET WAREHOUSE FUNDING TRUST Series 2004-MSD Class Note 4.48%, 12/27/04 8,000 8,011 @ MASTER ASSET BACKED SECURITIES TRUST Series 2003-OPT1 Class A2 2.60%, 12/27/04 6,980 7,001 MBNA CREDIT CARD MASTER NOTE TRUST ~ Series 2003-B3 Class B3 2.48%, 12/15/04 10,000 10,043 ~ Series 2003-C3 Class C3 3.45%, 12/15/04 4,500 4,604 MERRILL LYNCH MORTGAGE INVESTORS INC. 2004-WMC1 A2 2.48%, 12/27/04 5,122 5,121 MORGAN STANLEY ABS CAPITAL I Series 2003-NC8N 7.60%, 09/25/33 367 368 Series 2004-NC3N Class Note 6.00%, 03/25/34 1,391 1,389 ~@(9) NEW CENTURY HOME EQUITY LOAN TRUST Series 2004-2 Class A3 2.43%, 12/27/04 22,338 22,351 NOVASTAR NIM TRUST Series 2004-N1 4.46%, 02/25/34 1,816 1,813 ~ OPTION ONE MORTGAGE LOAN TRUST Series 2003-6 Class A2 2.26%, 12/25/04 12,566 12,573 ~ PROVIDENT BANK HOME EQUITY LOAN TRUST Series 1997-2 Class A5 2.41%, 12/27/04 1,849 1,850 RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC. ~@ Series 2003-RS1 Class AII 2.57%, 12/27/04 6,490 6,505 @ Series 2003-RZ4 Class A4 4.04%, 12/25/30 11,700 11,651 SECURITIZED ASSET BACKED NIM TRUST Series 2004-OP2 Class N 5.50%, 08/25/34 2,808 2,789 SEQUOIA MORTGAGE TRUST ~ Series 2004-4 Class B2 3.04%, 12/20/04 4,000 3,929 ~ Series 2004-4 Class-B1 2.64%, 12/20/04 5,000 4,935 STRUCTURED ASSET INVESTMENT LOAN TRUST Series 2003-BC1 Class A2 2.52%, 12/27/04 13,014 13,040 ----------- 265,678 CORPORATE BONDS 20.2% of net assets FINANCE 4.5% -------------------------------------------------------------------------- BANKING 2.3% ~/@ DEUTSCHE BANK CAPITAL TRUST, 144A Class B 3.97%, 12/30/04 10,000 10,273 ~@ DORAL FINANCIAL CORP. 2.91%, 01/20/05 3,000 3,005 /@ EMIGRANT BANCORP., 144A 6.25%, 06/15/14 2,000 2,023 ~@ EMIGRANT CAPITAL TRUST I, 144A 3.48%, 12/10/04 1,000 996 @ J P MORGAN CHASE & CO. 5.13%, 09/15/14 5,000 4,989 ~/@ RBS CAPITAL TRUST IV 2.78%, 12/31/04 3,000 3,021 ----------- 24,307 BROKERAGE 1.1% ~/@ CREDIT SUISSE FINANCIAL PRODUCTS 2.57%, 03/07/05 4,000 4,020 @ GOLDMAN SACHS CAPITAL I 6.35%, 02/15/34 3,000 3,044
4 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) @ MORGAN STANLEY 4.75%, 04/01/14 5,000 4,831 ----------- 11,895 FINANCE COMPANIES 0.6% ~@ INTERNATIONAL LEASE FINANCE CORP. 2.41%, 01/18/05 2,000 1,996 ~ GENERAL ELECTRIC CAPITAL CORP. 2.15%, 12/15/04 5,000 5,014 ----------- 7,010 INSURANCE 0.5% ~/@ MANGROVE BAY PASSTHRU TRUST, 144A 6.10%, 01/15/04 5,000 4,981 INDUSTRIAL 12.5% --------------------------------------------------------------------------- CAPITAL GOODS 1.4% @ BAE ASSET SYSTEMS 2001 ASSET TRUST, 144A Series 2001 Class G 6.66%, 09/15/13 13,354 14,652 COMMUNICATIONS 2.9% ~ AMERICA MOVIL SA DE CV, 144A 2.74%, 01/27/05 4,000 3,970 @ BELLSOUTH CORP. 4.75%, 11/15/12 3,000 2,980 /@ DIRECTV HOLDINGS/FINANCE 8.38%, 03/15/13 5,000 5,638 ~ FRANCE TELECOM 8.50%, 03/01/05 2,000 2,648 @ SBC COMMUNICATIONS, INC. 5.10%, 09/15/14 2,000 1,986 @ SPRINT CAPITAL CORP. 6.90%, 05/01/19 2,000 2,190 /@ TCI COMMUNICATIONS FINANCING III 9.65%, 03/31/27 3,000 3,498 @ TCI COMMUNICATIONS, INC. 9.80%, 02/01/12 2,000 2,543 @ TELEFONOS DE MEXICO SA, 144A 4.50%, 11/19/08 3,000 3,020 @ VERIZON NEW ENGLAND, INC. 6.50%, 09/15/11 3,000 3,277 ----------- 31,750 CONSUMER CYCLICAL 4.3% @ AUTONATION, INC. 9.00%, 08/01/08 3,000 3,435 @ CVS CORP., 144A 6.12%, 01/10/13 6,514 6,877 @ D.R. HORTON, INC. 5.63%, 09/15/14 3,000 3,007 @ DAIMLER-CHRYSLER, NA HOLDINGS 8.50%, 01/18/31 2,000 2,420 /@ DANA CORP. 10.13%, 03/15/10 2,500 2,837 @ FORD MOTOR CREDIT CO. 7.38%, 02/01/11 3,000 3,212 ~@ GENERAL MOTORS ACCEPTANCE CORP. 3.08%, 12/15/04 4,000 3,954 INTERNATIONAL SPEEDWAY CORP. @ 4.20%, 04/15/09 3,000 2,977 @ 5.40%, 04/15/14 2,000 2,026 @ MANDALAY RESORT GROUP, 144A. 6.50%, 07/31/09 4,500 4,731 /@ RYLAND GROUP, INC. 9.13%, 06/15/11 2,500 2,809 /@ STANDARD PACIFIC CORP. 9.50%, 09/15/10 2,000 2,175 @ TIME WARNER ENTERTAINMENT CO. 8.88%, 10/01/12 2,000 2,486 TOLL CORP. /@ 8.00%, 05/01/09 1,000 1,042 /@ 8.25%, 02/01/11 2,000 2,180 ----------- 46,168 CONSUMER NON-CYCLICAL 1.3% /@ ANHEUSER BUSCH COS, INC. 5.75%, 01/15/11 3,500 3,580 @ FRESENIUS MEDICAL CAPITAL TRUST II 7.88%, 02/01/08 1,700 1,849 @ MANOR CARE, INC. 8.00%, 03/01/08 1,333 1,473 @ MILLER BREWING CO. 144A 5.50%, 08/15/13 5,000 5,172 STATER BROTHERS HOLDINGS 5.38%, 12/15/04 2,000 2,055 ----------- 14,129 ENERGY 1.7% ~/@ HUSKY OIL LTD. 8.90%, 08/15/08 6,000 6,867 @ PHILLIPS PETROLEUM CO. 9.38%, 02/15/11 5,000 6,260 @ XTO ENERGY, INC. 5.00%, 01/31/15 5,000 4,908 ----------- 18,035 TECHNOLOGY 0.1% ~/@ FREESCALE SEMICONDUCTOR, 144A 4.82%, 01/18/05 950 988 TRANSPORTATION 0.8% @ BURLINGTON NORTH SANTA FE 4.88%, 01/15/15 3,000 2,957 ~@ HERTZ CORP. 3.40%, 02/07/05 3,000 3,018 @ UNION PACIFIC CORP. 6.25%, 05/01/34 3,000 3,101 ----------- 9,076 SOVEREIGN 0.4% --------------------------------------------------------------------------- ~/@ INDUSTRIAL BANK OF KOREA, 144A 4.00%, 05/19/09 1,000 980 REPUBLIC OF SOUTH AFRICA @ 9.13%, 05/19/09 1,000 1,185 @ 6.50%, 06/02/14 2,000 2,177 ----------- 4,342 UTILITIES 2.8% --------------------------------------------------------------------------- @ APPALACHIAN POWER CO. Series H 5.95%, 05/15/33 3,000 2,945
5 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) ~@ ATMOS ENERGY CORP. 4.00%, 10/15/09 3,000 2,951 @ CENTERPOINT ENERGY RESOURCES Series B 7.88%, 04/01/13 3,000 3,532 /@ COLUMBIA ENERGY GROUP Series F 7.42%, 11/28/15 5,000 5,277 /@ ENTERGY GULF STATES 4.88%, 11/01/06 3,000 2,961 @ MAGELLAN MIDSTREAM PARTNERS 6.45%, 06/01/14 3,000 3,229 @ OHIO EDISON CO. 5.45%, 05/01/15 4,000 3,996 @ PACIFIC GAS AND ELECTRIC 6.05%, 03/01/34 2,000 2,022 @ PUBLIC SERVICES ELECTRIC & GAS Series C 4.00%, 11/01/08 3,000 2,992 ----------- 29,505 COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 7.7% of net assets ATLANTIS TWO FUNDING CORP., SECTION 4(2) 2.17%, 12/01/04 16,000 16,000 COUNTRYWIDE HOME LOANS 2.09%, 12/01/04 15,000 15,000 (7) COX COMMUNICATIONS, INC., SECTION 4(2) 2.30%, 12/03/04 26,000 25,997 KINDER MORGAN ENERGY PARTNERS, SECTION 4(2) 2.05%, 12/01/04 7,000 7,000 TIME WARNER CABLE INC., SECTION 4(2) 2.13%, 12/02/04 18,800 18,799 ----------- 82,796
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) --------------------------------------------------------------------------- PREFERRED STOCK 1.7% of net assets Cobank, ACB, 144A 115,000 6,370 ~/ Shell Frontier Oil & Gas, Series D 35,000 3,500 ~/ Zurich Regcaps Funding Trust III, 144A 80,000 7,825 ----------- 17,695 OTHER INVESTMENT COMPANIES 0.1% of net assets Provident Institutional Funds - Fed Funds Portfolio 711,341 711 END OF INVESTMENTS.
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) COLLATERAL INVESTED FOR SECURITIES ON LOAN 12.0% of net assets SHORT-TERM INVESTMENTS 12.0% --------------------------------------------------------------------------- PARK GRANADA 2.07%, 12/01/04 19,325 19,325 DEUTSCHE BANK TIME DEPOSIT 1.98%, 12/01/04 6,200 6,200 WESTLB TIME DEPOSIT 2.07%, 12/01/04 103,075 103,075 ----------- 128,600
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. At 11/30/04, the tax basis cost of the fund's investments was $1,338,509, and the unrealized gains and losses were $10,733 and ($5,296), respectively. The fund's portfolio holdings include certain restricted but deemed liquid 144A and Section 4(2) securities worth $140,654 or 11.8%. Also includes securities on loan worth $124,758 or 11.6% of the fund's total net assets. 6 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS continued In addition to the above, the fund held the following at 11/30/04. All numbers x 1,000 FUTURES CONTRACTS
Number of Contract Unrealized Contracts Value Gains/(Losses) 2 Year, Long U.S. Treasury Note, expires 03/31/05 165 34,557 15 5 Year, Long U.S. Treasury Note, expires 03/31/05 255 27,751 (87) 10 Year, Long U.S. Treasury Note, expires 03/31/05 40 4,430 (25) -------------- (97)
7 SCHWAB INVESTMENTS SCHWAB GNMA FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding = Delayed-delivery security ~ Variable-rate security @ Collateral for delayed-delivery security For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 95.2% MORTGAGE-BACKED SECURITIES 34,818 35,282 2.4% ASSET-BACKED OBLIGATIONS 917 917 2.0% U.S. GOVERNMENT SECURITIES 738 735 2.7% COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 1,000 1,000 1.6% OTHER INVESTMENT COMPANIES 585 585 - -------------------------------------------------------------------------------- 103.9% TOTAL INVESTMENTS 38,058 38,519 (3.9)% OTHER ASSETS AND LIABILITIES (1,453) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 37,066
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) MORTGAGE-BACKED SECURITIES 95.2% of net assets U.S. GOVERNMENT AGENCY MORTGAGES 95.2% ------------------------------------------------------------------------ FANNIE MAE Pool# 628210 6.50%, 03/01/32 1,003 1,053 Pool# 799555 6.00%, 11/01/34 500 517 GINNIE MAE Pool# 6368 8.00%, 06/15/05 9 9 Pool# 6524 8.00%, 08/15/05 6 6 Pool# 6797 8.00%, 08/15/05 14 14 Pool# 7378 8.00%, 09/15/05 21 22 Pool# 10840 8.00%, 06/15/06 9 10 Pool# 11366 8.00%, 08/15/06 25 26 Pool# 12016 8.00%, 09/15/06 10 11 Pool# 13919 8.00%, 12/15/06 26 26 Pool# 15531 8.00%, 01/15/07 12 12 Pool# 17250 8.00%, 09/15/07 1 1 Pool# 24200 8.00%, 05/15/08 19 20 @ Pool# 25484 8.00%, 05/15/08 76 80 Pool# 23178 8.00%, 06/15/08 50 53 Pool# 23912 8.00%, 08/15/08 51 54 Pool# 33545 8.00%, 08/15/09 28 30 @ Pool# 585163 5.00%, 02/15/18 1,344 1,377 @(10) Pool# 604782 5.50%, 11/15/18 1,387 1,444 @ Pool# 358813 7.50%, 07/15/23 373 404 @ Pool# 345964 7.00%, 11/15/23 134 144 @ Pool# 780168 6.50%, 05/15/24 74 79 @ Pool# 780560 6.50%, 05/15/24 139 147 @ Pool# 780034 7.00%, 08/15/24 470 503 @ Pool# 416898 7.50%, 04/15/26 252 272 @ Pool# 780421 7.50%, 08/15/26 186 200 Pool# 451364 8.50%, 08/15/27 11 12 Pool# 454376 7.50%, 03/15/28 12 12 Pool# 780770 6.00%, 04/15/28 363 377 Pool# 458886 7.00%, 05/15/28 148 158 Pool# 780794 8.50%, 05/15/28 79 86 Pool# 490807 7.00%, 11/15/28 217 232 Pool# 434648 8.50%, 12/15/29 5 6 Pool# 520466 9.00%, 01/15/30 15 16 Pool# 515763 9.00%, 06/15/30 10 12 Pool# 515799 9.00%, 06/15/30 6 7
1 SCHWAB GNMA FUND PORTFOLIO HOLDINGS continued
SECURITY SERIES FACE AMOUNT VALUE RATE, MATURITY DATE ($ x 1,000) ($ x 1,000) Pool# 515814 9.00%, 06/15/30 13 14 Pool# 511872 7.00%, 01/15/31 202 215 Pool# 538229 6.50%, 08/15/31 277 292 @ Pool# 563325 7.00%, 08/15/31 543 578 @ Pool# 590373 6.50%, 08/15/32 329 348 @(5) Pool# 552763 6.50%, 09/15/32 1,676 1,768 @ Pool# 599752 6.50%, 10/15/32 1,061 1,119 @ Pool# 553056 5.50%, 02/15/33 1,215 1,239 @(2) Pool# 604141 6.00%, 03/15/33 2,382 2,467 @ Pool# 604338 5.00%, 05/15/33 1,209 1,205 Pool# 613876 5.50%, 08/15/33 1,275 1,299 @ Pool# 622095 5.00%, 09/15/33 1,147 1,144 (7) Pool# 615538 5.50%, 09/15/33 1,575 1,605 (6) Pool# 616134 6.00%, 12/15/33 1,592 1,649 (3) Pool# 574759 6.00%, 03/15/34 2,151 2,228 (4) Pool# 605443 5.00%, 06/15/34 1,964 1,957 (1) Pool# 630171 5.50%, 07/15/34 3,981 4,055 Pool# 605633 5.50%, 08/15/34 1,034 1,053 (9) Pool# 0633782 5.50%, 10/15/34 1,498 1,526 @ Pool# 0635532 5.00%, 11/15/34 500 498 =(8) TBA 5.00%, 12/01/04 1,600 1,591 ---------- 35,282 ASSET-BACKED OBLIGATIONS 2.4% of net assets FIXED-RATE OBLIGATIONS 2.4% ------------------------------------------------------------------------------ ~ AMERIQUEST FINANCE NIM TRUST Series 2004-RN4 Class A 4.60%, 12/25/04 143 142 ~ COUNTRYWIDE ASSET-BACKED CERTIFICATES Series 2003-2 Class M2 3.83%, 12/27/04 125 128 MORGAN STANLEY ABS CAPITAL I Series 2004-NC1N Class Note 7.00%, 12/25/33 91 91 Series 2004-NC3N Class Note 6.00%, 03/25/34 119 119 NOVASTAR NIM TRUST Series 2004-N1 4.46%, 02/25/34 272 272 ~ OPTION ONE MORTGAGE LOAN TRUST Series 2003-3 Class M2 3.78%, 12/27/04 100 102 OPTION ONE MORTGAGE SECURITIES CORP. NIM Series 2003-2B Class N1 7.63%, 04/26/33 6 6 SHARPS SP I L.L.C. NET INTEREST MARGIN TRUST Series 2004-HE2N Class NA 5.43%, 10/25/34 57 57 ---------- 917 U.S. GOVERNMENT SECURITIES 2.0% of net assets U.S. TREASURY BILLS 1.56%, 12/02/04 40 40 U.S. TREASURY NOTES 2.25%, 04/30/06 700 695 ---------- 735 COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS 2.7% of net assets TIME WARNER CABLE, INC. 2.08%, 12/01/04 1,000 1,000
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 1.6% of net assets Provident Institutional Funds - Fed Funds Portfolio 584,518 585
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $38,058 and the unrealized gains and losses were $526 and ($65), respectively. 2 SCHWAB INVESTMENTS SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding + Credit-enhanced security ~ Liquidity-enhanced security o Certificate of Participation For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - ----------------------------------------------------------------------------------------- 98.6% MUNICIPAL BONDS 149,809 152,853 0.0% OTHER INVESTMENT COMPANIES 8 8 - ----------------------------------------------------------------------------------------- 98.6% TOTAL INVESTMENTS 149,817 152,861 1.4% OTHER ASSETS AND LIABILITIES 2,229 - ----------------------------------------------------------------------------------------- 100.0% NET ASSETS 155,090
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) MUNICIPAL BONDS 98.6% of net assets FIXED-RATE OBLIGATIONS 98.1% ------------------------------------------------------------------------------------------------------------------------------ Arizona 5.2% +o(3) ARIZONA STATE Refunding Bonds, Series 2002B 5.00% 09/01/07 5,000 5,351 CATALINA FOOTHILLS UNIFIED SCHOOL DISTRICT NO. 16 + General Obligation Refunding Bonds, Series 2004 4.25% 07/01/06 1,235 1,274 + General Obligation Refunding Bonds, Series 2004 5.00% 07/01/07 1,315 1,402 ----------- 8,027 California 10.0% ALAMEDA PUBLIC FINANCING AUTHORITY 1997 Revenue Bond Refinancing Revenue Bonds, Series 1999 4.95% 09/02/07 2,065 2,113 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002A 5.50% 05/01/10 1,000 1,109 +(1) CALIFORNIA STATE PUBLIC WORKS BOARD Department of Corrections Lease Revenue Refunding Bonds, Series 2004D 5.00% 12/01/09 5,500 6,052
1 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Kaiser Permanente Revenue Bonds, Series 2002D 4.35% 03/01/07 3,000 3,104 SANTA CLARA COUNTY FINANCING AUTHORITY Measure B Special Obligation Bonds, Series 2003 4.00% 08/01/06 3,000 3,086 ----------- 15,464 Colorado 1.3% + ADAMS COUNTY, SCHOOL DISTRICT #50 General Obligation Refunding Bonds, Series 2004 4.00% 12/01/07 2,000 2,095 Connecticut 0.7% + CONNECTICUT STATE General Obligation Refunding Bonds, Series 2004B 4.00% 12/01/09 1,000 1,050 District of Columbia 2.7% +(9) WASHINGTON D.C. CONVENTION CENTER AUTHORITY Dedicated Tax Senior Lien Revenue Bonds, Series 1998 5.00% 10/01/06 4,000 4,188 Florida 2.2% + MIAMI, DADE COUNTY Miami International Airport Aviation Revenue Refunding Bonds, Series 2004C 2.00% 10/01/05 3,450 3,444 Georgia 4.6% + ATLANTA Airport General Revenue Refunding Bonds, Series 2003RF-A 5.00% 01/01/10 3,660 3,963 GEORGIA STATE General Obligation Bonds, Series 2000D 6.00% 10/01/07 2,865 3,150 ----------- 7,113 Illinois 0.7% + CHICAGO PUBLIC BUILDING COMMISSION Board of Education Building Revenue Bonds, Series 1999C 5.50% 02/01/06 1,000 1,038 Indiana 1.4% + LAKE COUNTY First Mortgage Lease Revenue Bonds, Series 2000 5.25% 08/01/09 2,040 2,246 Kentucky 2.5% KENTUCKY PROPERTY & BUILDING COMMISSION Project No. 71 Revenue Bonds 5.50% 08/01/09 3,500 3,912
2 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) Louisiana 1.0% +o NEW ORLEANS Refunding Certificates of Indebtedness, Series 1998B 4.50% 12/01/05 1,600 1,625 Massachusetts 3.2% MASSACHUSETTS General Obligation Refunding Bonds, Series 2001A 5.50% 01/01/11 2,500 2,795 + Consolidated Loan of 2002 Special Obligation Revenue Bonds, Series 2002A 5.00% 06/01/10 2,000 2,189 ----------- 4,984 Michigan 3.4% + DETROIT Capital Improvement Bonds, Series 2002A 5.00% 04/01/07 1,000 1,061 + (10) WAYNE COUNTY Airport Revenue Refunding Bonds, Series 2002D 5.00% 12/01/10 3,900 4,185 ----------- 5,246 Missouri 1.4% + ST. LOUIS MUNICIPAL FINANCE CORP. Convention Center Project Leasehold Revenue Refunding Bonds, Series 2003 5.25% 07/15/10 2,000 2,214 Nebraska 2.3% + AMERICAN GAS SUPPLY Nebraska Public Gas Agency Project Gas Supply Revenue Bonds, Series 1998C 4.00% 09/01/07 3,500 3,647 Nevada 1.1% + HENDERSON Seven Hills Senior Limited Obligation Refunding Bonds, Series 2001A 4.63% 08/01/11 1,540 1,656 New Jersey 3.4% + MERCER COUNTY Regional Sludge Project Refunding Revenue Bonds, Series 2003 5.00% 12/15/09 1,300 1,427 +o NEW JERSEY TRANSIT CORP. Federal Transit Administration Grants Series 2000B 5.50% 09/15/07 3,500 3,772 ----------- 5,199 New Mexico 1.0% FARMINGTON Public Service Co. of New Mexico, San Juan and Four Corners Project Pollution Control Revenue Refunding Bonds, Series 2003A 2.10% 04/01/06 1,500 1,486
3 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) New York 13.0% + FRANKLIN COUNTY General Obligation Public Improvement Bonds, Series 1998 4.25% 11/01/06 715 743 NEW YORK CITY General Obligation Bonds, Fiscal 1999 Series H 4.75% 03/15/07 3,000 3,152 General Obligation Bonds, Fiscal 2003 Series A 5.25% 08/01/09 1,825 1,990 General Obligation Bonds, Fiscal 2003 Series B 5.25% 08/01/09 1,000 1,090 General Obligation Bonds, Fiscal 2003 Series J 5.00% 06/01/09 2,500 2,693 NEW YORK STATE THRUWAY AUTHORITY (4) General Revenue Bond Anticipation Notes, Series 2004A 2.25% 10/06/05 5,000 5,008 +(7) Second General Highway & Bridge Trust Fund Bonds, Series 2003A 5.25% 04/01/12 4,000 4,465 NEW YORK STATE URBAN DEVELOPMENT CORP. Correctional Facilities Service Contract Revenue Bonds, Series 1998A 5.00% 01/01/05 1,000 1,002 ----------- 20,143 North Carolina 7.6% o(5) CHARLOTTE Fiscal Year 2004 Equipment Acquisition Project Series 2004C 4.00% 03/01/07 4,540 4,701 + DURHAM COUNTY Enterprise System Revenue Bonds, Series 2002 5.00% 06/01/09 1,495 1,632 NORTH CAROLINA MUNICIPAL POWER AGENCY Catawaba Electric + Revenue Bonds, Series 1995A 5.10% 01/01/07 2,000 2,100 + Revenue Bonds, Series 1999A 5.75% 01/01/09 3,000 3,344 ----------- 11,777 Ohio 4.6% OHIO Higher Education Capital Facilities Bonds, Series II-2001A 5.50% 12/01/08 3,000 3,317 Administrative Building Fund Projects State Facilities Bonds, Series 1998A 5.13% 10/01/06 3,580 3,762 ----------- 7,079 Oregon 1.9% +o OREGON STATE Department of Administrative Services Refunding Bonds, Series 2002C 5.00% 11/01/07 2,705 2,901 Pennsylvania 3.6% + PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY Economic Development Revenue Bonds, Series 1994 7.00% 07/01/07 1,000 1,113
4 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) +(6) PHILADELPHIA Water & Wastewater Revenue Refunding Bonds, Series 2001B 5.50% 11/01/11 4,000 4,513 ----------- 5,626 Puerto Rico 1.4% + PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY Transportation Revenue Refunding Bonds, Series 2003H 5.00% 07/01/35 2,000 2,163 South Carolina 2.0% + CHARLESTON COUNTY Care Alliance Health Services Revenue Bonds, Series 1999A 4.25% 08/15/07 3,000 3,139 Texas 7.2% +(2) DALLAS WATER & SEWER UTILITIES Revenue Refunding & Improvement Bonds, Series 2003 5.00% 10/01/10 5,000 5,450 + DENTON UTILITY SYSTEM Revenue Refunding & Improvement Bonds, Series 2001 5.00% 12/01/12 2,030 2,191 FORT WORTH General Purpose Improvement & Refunding Bonds, Series 2001 5.00% 03/01/10 1,090 1,185 + HOUSTON PORT AUTHORITY Port Improvement General Obligation Bonds, Series 2001B 5.25% 10/01/10 2,205 2,419 ----------- 11,245 Washington 6.3% + PORT OF SEATTLE Passenger Facility Charge Revenue Bonds, Series 1998B 5.00% 12/01/07 1,395 1,486 + SNOHOMISH COUNTY Refunding Limited General Obligation Bonds 4.50% 12/01/12 1,920 2,023 +o WASHINGTON Department of Ecology State Office Building Project Refunding Bonds, Series 2001 4.75% 04/01/12 1,710 1,811 +(8) WASHINGTON PUBLIC POWER SUPPLY SYSTEM Nuclear Project No. 2 Refunding Revenue Bonds, Series 1993A 5.70% 07/01/08 4,000 4,429 ----------- 9,749 Wisconsin 2.4% +o WISCONSIN Master Lease Series 2002D 5.00% 09/01/07 2,500 2,667 WISCONSIN HEALTH & EDUCATIONAL FACILITIES AUTHORITY Carroll College, Inc. Project Revenue Bonds, Series 1998 4.80% 10/01/06 1,000 1,030 ----------- 3,697
5 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) VARIABLE RATE OBLIGATIONS 0.5% -------------------------------------------------------------------------------------------------------------------------- Alaska 0.3% + VALDEZ BP Pipelines, Inc. Project Marine Terminal Revenue Refunding Bonds, Series 2003B 1.68% 12/01/04 500 500 California 0.2% CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002B-2 1.74% 12/01/04 200 200
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 0.0% of net assets PROVIDENT INSTITUTIONAL FUNDS - MUNI FUND PORTFOLIO 7,683 8
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $149,817 and the unrealized gains and losses were $3,674 and ($630), respectively. 6 SCHWAB INVESTMENTS SCHWAB LONG-TERM TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding + Credit-enhanced security ~ Liquidity-enhanced security o Certificate of Participation For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 98.5% MUNICIPAL BONDS 78,760 84,285 - -------------------------------------------------------------------------------- 98.5% TOTAL INVESTMENTS 78,760 84,285 1.5% OTHER ASSETS AND LIABILITIES 1,285 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 85,570
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) MUNICIPAL BONDS 98.5% of net assets FIXED-RATE OBLIGATIONS 93.6% ------------------------------------------------------------------------------------------------------------------------------ California 5.2% CALIFORNIA Various Purpose General Obligation Bonds 5.25% 11/01/17 2,000 2,173 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002A 5.88% 05/01/16 2,000 2,259 ----------- 4,432 Colorado 3.9% +(10) COLORADO DEPARTMENT OF TRANSPORTATION Transportation Revenue Anticipation Notes, Series 2002B 5.50% 06/15/15 2,000 2,278 + DENVER CITY & COUNTY Airport System Revenue Refunding Bonds, Series 2002E 5.50% 11/15/15 1,000 1,087 ----------- 3,365
1 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) District of Columbia 2.6% +o DISTRICT OF COLUMBIA Public Safety & Emergency Preparedness Communications Center Series 2003C 5.50% 01/01/17 2,000 2,228 Florida 3.3% +(7) ESCAMBIA COUNTY HEALTH FACILITIES AUTHORITY Ascension Health Credit Group Revenue Bonds, Series 1999A-2 5.75% 11/15/09 2,500 2,836 Georgia 1.5% + FULTON COUNTY DEVELOPMENT AUTHORITY Tuff Morehouse LLC Project Revenue Bonds, Series 2002A 5.50% 02/01/22 1,180 1,287 Hawaii 2.0% + HAWAII General Obligation Bonds, Series 1999CT 5.88% 09/01/09 1,500 1,721 Indiana 1.2% + MARION COUNTY CONVENTION & RECREATIONAL FACILITIES AUTHORITY Excise Taxes Lease Revenue Refunding Senior Bonds, Series 2001A 5.00% 06/01/21 1,000 1,037 Kentucky 1.2% + JEFFERSON COUNTY University Medical Center Health Facilities Revenue Bonds, Series 1997 5.25% 07/01/22 1,000 1,041 Maryland 0.3% MARYLAND HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT Housing Revenue Bonds, Series 1996A 5.88% 07/01/16 250 260 Michigan 5.9% DELTA COUNTY ECONOMIC DEVELOPMENT CORP. MeadWestvaco-Escanaba Paper Co. Project Environmental Improvement Revenue Refunding Bonds, Series 2002 6.25% 04/15/27 1,000 1,059 +(6) DETROIT Water Supply System Revenue Refunding Senior Lien Bonds, Series 2003C 5.25% 07/01/16 2,620 2,878 + WAYNE COUNTY COMMUNITY COLLEGE Improvement Bonds, Series 1999 5.50% 07/01/19 1,000 1,092 ----------- 5,029 Mississippi 5.3% + MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTHORITY Mississippi Baptist Medical Center Revenue Refunding Bonds, Series 1995 6.00% 05/01/13 2,150 2,224
2 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) +o(9) WALNUT GROVE CORRECTIONAL AUTHORITY Walnut Grove Correctional Facility Project Series 1999 6.00% 11/01/19 2,000 2,306 ----------- 4,530 Nevada 5.2% + NEVADA Motor Vehicle Fuel Tax Highway Improvement Revenue Bonds, Series 2004 5.50% 12/01/18 2,000 2,242 + NEVADA STATE DEPARTMENT OF BUSINESS & INDUSTRY Las Vegas Monorail Project First Tier Revenue Bonds, Series 2000 5.63% 01/01/32 2,000 2,153 ----------- 4,395 New York 5.6% + METROPOLITAN TRANSPORTATION AUTHORITY Transportation Revenue Refunding Bonds, Series 2002A 5.50% 11/15/18 2,000 2,234 NEW YORK CITY General Obligation Bonds, Series 2002G 5.75% 08/01/16 1,325 1,474 General Obligation Bonds, Series 2005B 5.25% 08/01/15 1,000 1,097 ----------- 4,805 Oregon 4.5% + COLUMBIA RIVER PEOPLES' UTILITY DISTRICT Electric Systems Revenue Obligations, Series 2000B 5.50% 12/01/19 1,180 1,298 +(8) MORROW COUNTY SCHOOL DISTRICT General Obligation Bonds, Series 2001 5.63% 06/15/16 2,235 2,525 ----------- 3,823 Pennsylvania 4.3% PENNSYLVANIA STATE HIGHER EDUCATION FACILITIES AUTHORITY University of Pennsylvania Health Services Revenue Bonds, Series 1996A 5.75% 01/01/17 2,000 2,094 + SENECA VALLEY UNIFIED SCHOOL DISTRICT General Obligation Refunding Bonds, Series 1998AA 5.15% 02/15/20 1,500 1,578 ----------- 3,672 Rhode Island 0.0% RHODE ISLAND HOUSING & MORTGAGE FINANCE CORP. Homeownership Opportunity Revenue Bonds, Series 10A 6.50% 10/01/22 20 20 Texas 19.6% +(5) AUSTIN COMBINED UTILITIES Revenue Refunding Bonds, Series 1997 5.13% 11/15/16 3,000 3,195
3 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) + BRAZOS RIVER AUTHORITY Houston Industries, Inc. Revenue Refunding Bonds, Series 1998A 5.13% 05/01/19 1,750 1,835 + CONROE INDEPENDENT SCHOOL DISTRICT Unlimited Tax Schoolhouse & Refunding Bonds, Series 1997 5.25% 02/15/21 1,000 1,054 +(2) DALLAS FORT WORTH INTERNATIONAL AIRPORT Joint Revenue Bonds, Series 2000A 6.00% 11/01/24 3,500 3,821 HARRIS COUNTY Permanent Improvement Refunding Bonds, Series 2004A 5.00% 10/01/18 1,885 2,005 + HARRIS COUNTY HOSPITAL DISTRICT Revenue Refunding Bonds, Series 2000 6.00% 02/15/16 1,000 1,129 + NORTH TEXAS TOLLWAY AUTHORITY Revenue Refunding Bonds, Series 2003C 5.00% 07/01/08 2,000 2,159 + TEXAS PUBLIC FINANCE AUTHORITY Texas Southern University Revenue Financing System Refunding Bonds Series 1998A1 4.75% 11/01/17 1,545 1,588 ----------- 16,786 Vermont 2.6% + VERMONT EDUCATION AND HEALTH BUILDINGS FINANCING AGENCY Fletcher Allen Health Care Project Hospital Revenue Bonds, Series 2000A 6.00% 12/01/23 2,000 2,244 Washington 19.4% +(4) CLARK COUNTY SCHOOL DISTRICT Unlimited Tax General Obligation Bonds, Series 1999 5.50% 12/01/17 3,000 3,360 KENT SCHOOL DISTRICT NO. 415 Unlimited Tax General Obligation Refunding Bonds, Series 1993A 5.55% 12/01/11 500 565 KING COUNTY (1) Baseball Stadium Limited Tax General Obligation Variable Rate Demand Bonds, Series 1997D 5.75% 12/01/11 3,500 3,862 + King Street Center Project Lease Revenue Bonds, Series 1997 5.13% 06/01/17 1,000 1,046 + OCEAN SHORES Water and Sewer Revenue Bonds, Series 2001 5.50% 12/01/21 2,000 2,263 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY +(3) Catholic Health Initiatives Revenue Bonds, Series 2000A 6.00% 12/01/20 3,000 3,403 + Swedish Health System Revenue Bonds, Series 1998 5.13% 11/15/18 2,000 2,100 ----------- 16,599 VARIABLE RATE OBLIGATIONS 4.9% ------------------------------------------------------------------------------------------------------------------------------ Alaska 0.5% VALDEZ Exxon Pipeline Co. Marine Terminal Revenue Refunding Bonds, Series 1993A 1.60% 12/01/04 450 450
4
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) California 2.6% + CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002B-2 1.74% 12/01/04 800 800 + IRVINE ASSESSMENT DISTRICT Limited Obligation Improvement Bonds, Series 2000 1.62% 12/01/04 125 125 ~o ORANGE COUNTY SANITATION DISTRICT Refunding Bonds, Series 2000B 1.64% 12/01/04 650 650 ~ SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT Water Revenue Bonds Series 2000 Authorization Series B-1 1.63% 12/01/04 600 600 ----------- 2,175 Mississippi 0.2% JACKSON COUNTY Chevron USA Project Pollution Control Revenue Refunding Bonds, Series 1992 1.68% 12/01/04 150 150 New York 0.7% + LONG ISLAND POWER AUTHORITY Electric System Subordinated Revenue Bonds 2001 Series 3-B 1.67% 12/01/04 500 500 +~ NEW YORK CITY General Obligation Bonds Fiscal 2002 Series A-6 1.67% 12/01/04 100 100 ----------- 600 Wyoming 0.9% UINTA COUNTY Chevron USA Project Pollution Control Revenue Refunding Bonds, Series 1993 1.68% 12/01/04 800 800
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $78,760 and the unrealized gains and losses were $5,537 and ($12), respectively. 5 SCHWAB INVESTMENTS SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding + Credit-enhanced security ~ Liquidity-enhanced security o Certificate of Participation For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 99.4% MUNICIPAL BONDS 152,333 156,912 0.0% OTHER INVESTMENT COMPANIES 3 3 - -------------------------------------------------------------------------------- 99.4% TOTAL INVESTMENTS 152,336 156,915 0.6% OTHER ASSETS AND LIABILITIES 960 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 157,875
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) MUNICIPAL BONDS 99.4% of net assets FIXED-RATE OBLIGATIONS 93.8% ------------------------------------------------------------------------------------------------------------------------------ California 89.7% ALAMEDA COUNTY Refunding & Capital Projects +o Series 1998A 5.00% 12/01/06 3,480 3,671 +o(1) Series 2001A 5.38% 12/01/09 5,000 5,614 +(6) ASSOCIATION OF BAY AREA GOVERNMENTS Brandeis Hillel Day School Project Revenue Bonds, Series 2001 3.75% 08/01/31 4,000 4,100 + BURBANK UNIFIED SCHOOL DISTRICT Election of 1997 General Obligation Bonds, Series C 3.00% 08/01/06 1,820 1,845 CALIFORNIA + Economic Recovery Bonds Series 2004A 5.25% 07/01/14 3,000 3,372 + Federal Highway Grant Anticipation Bonds, Series 2004A 5.00% 02/01/08 1,360 1,468 General Obligation Bonds, Series 1992 6.30% 09/01/06 2,235 2,383 + General Obligation Bonds, Series 1998 5.50% 12/01/11 1,665 1,899
1 SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) General Obligation Bonds, Series 2001 4.00% 11/01/05 1,000 1,016 General Obligation Bonds, Series 2002 5.25% 02/01/11 3,500 3,853 +(5) General Obligation Refunding Bonds, Series 2002 5.00% 02/01/12 4,000 4,393 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002A 5.50% 05/01/10 1,315 1,459 + CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY Pooled College & University Projects Revenue Bonds, Series 1997A 5.05% 04/01/05 1,010 1,020 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY Kaiser Permanente Revenue Bonds, Series 1998B 5.00% 10/01/08 2,500 2,741 CALIFORNIA POLLUTION CONTROL FINANCE AUTHORITY Waste Management, Inc. Project Solid Waste Disposal Revenue Bonds, Series 2002B 4.45% 07/01/05 2,000 2,014 CALIFORNIA STATE PUBLIC WORKS BOARD + Energy Efficiency Revenue Refunding Bonds, Series 1998B 4.00% 09/01/06 1,155 1,190 Regents of the University of California Lease Revenue Refunding Bonds, Series 1998A 5.25% 12/01/07 2,000 2,164 + UCLA Replacement Hospitals Lease Revenue Bonds, Series 2002A 4.75% 10/01/09 3,005 3,256 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Kaiser Permanente Revenue Bonds, Series 2002D 4.35% 03/01/07 2,000 2,070 + Sherman Oaks Revenue Refunding Bonds, Series 1998A 5.00% 08/01/06 2,500 2,612 + EL DORADO COUNTY PUBLIC AGENCY FINANCING AUTHORITY Revenue Bonds, Series 1996 5.60% 02/15/12 3,000 3,186 FREMONT UNION HIGH SCHOOL DISTRICT Election of 1998 General Obligation Bonds, Series 2000B 5.75% 09/01/08 1,520 1,697 + INGLEWOOD REDEVELOPMENT AGENCY Merged Redeveloped Project Tax Allocation Refunding Bonds, Series 1998A 3.88% 05/01/05 525 529 INTERMODAL CONTAINER TRANSFER FACILITY JOINT POWERS AUTHORITY + Refunding Revenue Bonds, Series 1999A 5.00% 11/01/08 1,210 1,325 + Refunding Revenue Bonds, Series 1999A 5.00% 11/01/09 1,375 1,517 (4) LONG BEACH Harbor Revenue Refunding Bonds, Series 2000A 5.50% 05/15/10 4,000 4,410 +(8) LONG BEACH HARBOR FACILITIES CORP. Harbor Revenue Refunding Bonds, Series 1998A 5.50% 05/15/05 3,985 4,040 LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY + Pooled Financing Refunding Bonds, Series 1998F 5.00% 09/01/07 810 870 Bunker Hill Project Subordinate Lien Tax Allocation Bonds, Series 2004 4.00% 03/01/10 1,950 1,976 +(10) LOS ANGELES STATE BUILDING AUTHORITY California Department of General Services Lease Revenue Refunding Bonds, Series 1993A 5.63% 05/01/11 3,500 3,915 (3) LOS ANGELES UNIFIED SCHOOL DISTRICT Election of 1997 General Obligation Bonds, Series 2000D 5.50% 07/01/10 4,000 4,495 NORTHERN CALIFORNIA POWER AGENCY Geothermal Project No. 3 Revenue Refunding Bonds, Series 1993A 5.60% 07/01/06 2,000 2,106 OAKLAND Oakland Museum +o Refunding Bonds, Series 2002A 5.00% 04/01/10 2,015 2,220 +o Refunding Bonds, Series 2002A 5.00% 04/01/11 1,460 1,615
2 SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) + OCEANSIDE COMMUNITY DEVELOPMENT COMMISSION Vista del Ora Apartments Multi-Family Rental Housing Revenue Refunding Bonds, Series 2001A 4.45% 04/01/31 1,250 1,295 +o ORANGE COUNTY Recovery, Series 1996A 6.00% 07/01/08 3,000 3,354 + PORT OF OAKLAND Revenue Bonds, Series 2000K 5.50% 11/01/08 3,000 3,289 + RANCHO CALIFORNIA WATER DISTRICT FINANCING AUTHORITY Refunding Revenue Bonds, Series 1995 5.88% 11/01/10 1,500 1,579 + REDDING JOINT POWERS FINANCING AUTHORITY Electric System Revenue Bonds, Series 1996A 5.50% 06/01/11 2,000 2,133 RIVERSIDE Capital Improvement Projects +o Series 2003 5.00% 09/01/14 1,470 1,612 +o Series 2003 5.00% 09/01/15 1,545 1,672 + RIVERSIDE COUNTY ASSET LEASING CORP. Riverside County Hospital Project Leasehold Revenue Bonds, Series 2003A 5.00% 06/01/09 2,555 2,787 SACRAMENTO FINANCE AUTHORITY Revenue Refunding Bonds, Series 2002 4.50% 07/01/08 2,865 3,042 + SAN BERNARDINO COUNTY Multi-Family Housing Refunding Revenue Bonds, Series 2001A 4.45% 05/01/31 1,300 1,399 + SAN DIEGO UNIFIED SCHOOL DISTRICT Election of 1998 General Obligation Bonds, Series 2004F 5.00% 07/01/15 1,095 1,197 SAN FRANCISCO AIRPORTS COMMISSION San Francisco International Airport + Second Series Revenue Bonds, Issue 15A 5.50% 05/01/09 2,000 2,184 + Second Series Revenue Bonds, Issue 22 5.25% 05/01/11 3,065 3,321 SAN FRANCISCO BAY AREA TRANSIT FINANCING AUTHORITY Bridge Toll Notes, Series 1999 5.00% 02/01/07 500 521 SAN FRANCISCO STATE UNIVERSITY Auxiliary Organization Student Housing Revenue Bonds, Series 1999 4.30% 07/01/05 540 545 Student Housing Revenue Bonds, Series 1999 5.00% 07/01/08 400 424 + SAN JOSE Airport Revenue Refunding Bonds, Series 2002B 5.00% 03/01/11 2,625 2,830 +(2) SAN JOSE REDEVELOPMENT AGENCY Merged Area Redevelopment Project Tax Allocation Bonds, Series 2002 4.00% 08/01/10 5,000 5,282 +(9) SANTA CLARA Insurance Funding Bonds, Series 1987 3.25% 04/01/12 4,000 4,017 SANTA CLARA COUNTY FINANCING AUTHORITY (7) Measure B Special Obligation Bonds, Series 2003 4.00% 08/01/05 4,000 4,050 + Multi-Facilities Projects Lease Revenue Bonds, Series 2000B 5.50% 05/15/05 3,290 3,342 +o VMC Facility Replacement Project Lease Revenue Bonds, Series 1994A 7.75% 11/15/10 1,000 1,247 + TEMECULA VALLEY UNIFIED SCHOOL DISTRICT General Obligation Refunding Bonds, Series 2004 6.00% 08/01/07 1,000 1,096 VERNON Malburg Generating Station Project Electric System Revenue Bonds, Series 2003C 5.00% 04/01/11 1,320 1,388 Electric System Revenue Bonds, Series 2003C 5.25% 04/01/15 1,905 1,990 ----------- 141,637
3 SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) PUERTO RICO 4.1% + PUERTO RICO AQUEDUCT & Sewerage Authority Refunding Bonds, Series 1995 6.00% 07/01/06 3,000 3,179 + PUERTO RICO ELECTRIC POWER AUTHORITY Power Revenue Refunding Bonds, Series CC 5.50% 07/01/08 3,000 3,266 ---------- 6,445 VARIABLE RATE OBLIGATIONS 5.6% ------------------------------------------------------------------------------------------------------------------------------ California 5.6% ~ CALIFORNIA Economic Recovery Bonds, Series 2004C-3 1.62% 12/01/04 1,400 1,400 + CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002B-2 1.74% 12/01/04 400 400 +~ FONTANA UNIFIED SCHOOL DISTRICT School Facility Bridge Funding Program Series 2004B 3.00% 12/01/04 1,250 1,259 + IRVINE ASSESSMENT DISTRICT Limited Obligation Improvement Bonds, Series 2000 1.62% 12/01/04 140 140 + IRVINE RANCH WATER DISTRICT Capital Improvement Project Series, 1986 1.62% 12/01/04 1,000 1,000 + LOS ANGELES American Academy of Dramatic Arts Series 2000A 4.70% 12/01/04 1,300 1,331 ~ SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT Water Revenue Bonds Authorization, Series 2000B-3 1.62% 12/01/04 3,300 3,300 ---------- 8,830
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 0.0% of net assets PROVIDENT INSTITUTIONAL FUNDS - CALIFORNIA MONEY FUND PORTFOLIO 2,910 3
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $152,336 and the unrealized gains and losses were $4,686 and ($107), respectively. 4 SCHWAB INVESTMENTS SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of November 30, 2004, unaudited The following are the portfolio holdings at 11/30/04. For more information please refer to the fund's semi-annual or annual shareholder reports. We use the symbols below to designate certain characteristics of the securities. With the top ten holdings, the number in the circle is the security's rank among the top ten. (1) Top Ten holding + Credit-enhanced security ~ Liquidity-enhanced security o Certificate of Participation For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity shown is the later of the next interest rate change date or demand date.
COST VALUE HOLDINGS BY CATEGORY ($X1,000) ($X1,000) - -------------------------------------------------------------------------------- 98.5% MUNICIPAL BONDS 171,480 181,334 0.0% OTHER INVESTMENT COMPANIES 46 46 - -------------------------------------------------------------------------------- 98.5% TOTAL INVESTMENTS 171,526 181,380 1.5% OTHER ASSETS AND LIABILITIES 2,677 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 184,057
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) MUNICIPAL BONDS 98.5% of net assets FIXED-RATE OBLIGATIONS 97.2% ------------------------------------------------------------------------------------------------------------------------------ California 97.2% + ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY Senior Lien Revenue Bonds, Series 1999A 5.13% 10/01/16 1,170 1,264 +o ALAMEDA COUNTY Alameda County Medical Center Project Series 1998 5.38% 06/01/18 3,400 3,682 +(4) ANAHEIM PUBLIC FINANCING AUTHORITY Public Improvements Project Senior Lease Revenue Bonds, Series 1997A 6.00% 09/01/24 5,000 5,887 ASSOCIATION OF BAY AREA GOVERNMENTS + Brandeis Hillel Day School Project Revenue Bonds, Series 2001 3.75% 08/01/31 1,700 1,743 + California Redevelopment Agency Pool Tax Allocation Revenue Bonds, Series 1997A-6 5.25% 12/15/17 1,200 1,302 o Lytton Gardens, Inc. Revenue Bonds, Series 1999 6.00% 02/15/30 3,000 3,183 Schools of the Sacred Heart - San Francisco Revenue Bonds, Series 2000A 6.45% 06/01/30 1,500 1,589
1 SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) + BREA OLINDA UNIFIED SCHOOL DISTRICT Election of 1999 General Obligation Bonds, Series 1999A 5.60% 08/01/20 1,000 1,116 BURBANK PUBLIC FINANCE AUTHORITY Golden State Redevelopment Project + Revenue Bonds, Series 2003A 5.25% 12/01/17 2,825 3,105 + Revenue Bonds, Series 2003A 5.25% 12/01/18 2,175 2,377 CALIFORNIA General Obligation Bonds, Series 2000 5.63% 05/01/18 1,000 1,115 Various Purpose General Obligation Bonds 5.25% 11/01/17 3,000 3,260 +(7) Department of Veterans Affairs Home Purchase Revenue Bonds, Series 2002A 5.30% 12/01/21 5,000 5,223 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002A 5.75% 05/01/17 3,000 3,350 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY California College of Arts and Crafts Revenue Bonds, Series 2001 5.75% 06/01/25 1,800 1,873 Pepperdine University Revenue Bonds, Series 2000 5.75% 09/15/30 3,000 3,240 CALIFORNIA HEALTH FACILITIES FINANCE AUTHORITY Cedars-Sinai Medical Center Revenue Bonds, Series 1999A 6.13% 12/01/19 2,750 2,998 +(5) Childrens Hospital - San Diego Hospital Revenue Refunding Bonds, Series 1996 5.38% 07/01/16 5,180 5,513 CALIFORNIA HOUSING FINANCE AGENCY + Home Mortgage Revenue Bonds, Series 1995L 5.90% 08/01/17 265 272 Multi-unit Rental Housing Revenue Bonds II, Series 1992B 6.70% 08/01/15 1,000 1,001 CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK The J. David Gladstone Institutes Revenue Bonds, Series 2001 5.50% 10/01/19 1,250 1,353 (1) CALIFORNIA STATE PUBLIC WORKS BOARD Department of Corrections Lease Revenue Bonds, Series 2003 5.50% 06/01/17 6,970 7,626 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY o Cedars-Sinai Medical Center Hospital Revenue, Series 1992 6.50% 08/01/15 365 366 o(8) Internext Group Series 1999 5.38% 04/01/17 5,000 5,073 Kaiser Permanente Revenue Bonds, Series 2002D 4.35% 03/01/07 2,000 2,070 + Sunnyside/Vermont Project Collateralized Revenue Bonds, Series 2001A 7.00% 04/20/36 4,000 4,477 + COLTON PUBLIC FINANCE AUTHORITY Special Tax Revenue Bonds, Series 1996 5.45% 09/01/19 3,020 3,206 (9) CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Multiple Project Areas Tax Allocation Revenue Bonds, Series 2003A 5.63% 08/01/33 5,000 5,063 EAST BAY MUNICIPAL UTILITY DISTRICT Water System Subordinate Revenue Bonds, Series 1998 5.25% 06/01/19 2,600 2,782 +o ESCONDIDO Revenue Bonds, Series 2000A 6.00% 09/01/31 1,945 2,169 FONTANA REDEVELOPMENT AGENCY Jurupa Hills Redevelopment Project Tax Allocation Refunding Bonds, Series 1997A 5.50% 10/01/19 3,500 3,670 +(6) FOOTHILL-EASTERN TRANSPORTATION CORRIDOR AGENCY Toll Road Revenue Refunding Bonds, Series 1999 5.13% 01/15/19 5,000 5,287 + HUNTINGTON BEACH Capital Improvement Financing Project Lease Revenue Bonds, Series 2000A 5.50% 09/01/20 1,500 1,661
2 SCHWAB CALIFORNIA LONG-TERM TAX-FREE FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) + INGLEWOOD REDEVELOPMENT AGENCY Merged Redevelopment Project Tax Allocation Revenue Refunding Bonds, Series 1998A 5.25% 05/01/16 1,000 1,115 + LOS ANGELES MUNICIPAL IMPROVEMENT CORP. Los Angeles Central Library Project Leasehold Refunding Revenue Bonds, Series 2003A 5.25% 06/01/13 3,730 4,177 + LYNWOOD PUBLIC FINANCING AUTHORITY Public Capital Improvement Project Lease Revenue Refunding Bonds, Series 2003 5.00% 09/01/18 1,000 1,069 OAKLAND JOINT POWER FINANCING AUTHORITY Reassessment Revenue Bonds, Series 1999 5.50% 09/02/24 990 1,052 + OAKLAND REDEVELOPMENT AGENCY Central District Redevelopment Project Subordinated Tax Allocation Bonds, Series 2003 5.50% 09/01/14 1,615 1,826 +o ORANGE COUNTY Recovery, Series 1996A 5.70% 07/01/10 1,450 1,552 + PORT OF OAKLAND Revenue Bonds, Series 2000K 5.75% 11/01/29 3,500 3,723 (10) RIVERSIDE COUNTY PUBLIC FINANCE AUTHORITY Riverside County Redevelopment Projects Tax Allocation Revenue Bonds, Series 1997A 5.63% 10/01/33 4,905 5,012 SACRAMENTO COUNTY SANITATION DISTRICT Revenue Bonds, Series 2000A 5.88% 12/01/27 1,000 1,044 SACRAMENTO FINANCE AUTHORITY + California EPA Building Project Lease Revenue Bonds, Series 1998A 5.25% 05/01/19 1,575 1,702 + City Hall & Redevelopment Projects Revenue Bonds, Series 2002A 5.38% 12/01/20 2,875 3,153 + Solid Waste & Redevelopment Projects Capital Improvement Revenue Bonds, Series 1999 5.88% 12/01/29 3,000 3,329 + SALINAS VALLEY SOLID WASTE AUTHORITY Revenue Bonds, Series 2002 5.13% 08/01/22 2,210 2,290 SAN DIEGO REDEVELOPMENT AGENCY Horton Plaza Redevelopment Project Subordinate Tax Allocation Bonds, Series 2000 5.80% 11/01/21 2,500 2,677 SAN FRANCISCO AIRPORTS COMMISSION San Francisco International Airport + Second Series Revenue Bonds, Issue 11 6.20% 05/01/05 1,500 1,540 + Second Series Revenue Bonds, Issue 12B 5.63% 05/01/21 2,000 2,109 + Second Series Revenue Bonds, Issue 22 5.00% 05/01/19 2,000 2,085 + Second Series Revenue Bonds, Issue 30 5.00% 05/01/17 2,000 2,151 SAN FRANCISCO BAY AREA RAPID TRANSIT + Sales Tax Revenue Bonds, Series 1999 5.50% 07/01/26 1,000 1,075 + Sales Tax Revenue Bonds, Series 1999 5.50% 07/01/34 2,500 2,656 + SAN FRANCISCO PORT COMMISSION Refunding Revenue Bonds, Series 2004 4.00% 07/01/08 1,200 1,262 SAN FRANCISCO STATE UNIVERSITY Auxiliary Organization Student Housing Revenue Bonds, Series 1999 5.20% 07/01/19 1,150 1,178 + SAN LUIS OBISPO COUNTY FINANCE AUTHORITY Lopez Dam Improvement Revenue Bonds, Series 2000A 5.38% 08/01/24 1,000 1,062 +(2) SANTA ANA UNIFIED SCHOOL DISTRICT Election of 1999 General Obligation Bonds, Series 2000 5.70% 08/01/29 6,000 6,605 +o SANTA CLARA COUNTY FINANCING AUTHORITY VMC Facility Replacement Project Lease Revenue Bonds, Series 1994A 7.75% 11/15/10 1,460 1,820
3 SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ x 1,000) ($ x 1,000) + SANTA CLARA REDEVELOPMENT AGENCY Bayshore North Project Tax Allocation Revenue Refunding Bonds, Series 1992 7.00% 07/01/10 1,500 1,714 + SOUTH ORANGE COUNTY PUBLIC FINANCING AUTHORITY Special Tax Revenue Bonds, Series 1999A 5.25% 08/15/18 3,095 3,332 (3) STOCKTON COMMUNITY FACILITIES DISTRICT Mello Roos Community Facilities District No. 1 Revenue Bonds, Series 1998A 5.80% 09/01/14 5,875 6,292 + TAFT CITY ELEMENTARY SCHOOL DISTRICT Election of 2001 General Obligation Bonds, Series 2001A 4.90% 08/01/20 1,080 1,130 + TRI CITY HOSPITAL DISTRICT Refunding Revenue Bonds, Series 1996A 5.63% 02/15/17 1,000 1,057 + TRUCKEE PUBLIC FINANCING AUTHORITY Lease Revenue Bonds, Series 2000A 5.88% 11/01/25 1,490 1,661 + UNIVERSITY OF CALIFORNIA UC Davis Medical Center Hospital Revenue Bonds, Series 1996 5.75% 07/01/06 500 533 + VALLEJO Water Improvement Project Refunding Revenue Bonds, Series 1996A 5.70% 05/01/16 2,000 2,133 WEST BASIN WATER DISTRICT +o Revenue Refunding Bonds, Series 2003A 5.25% 08/01/14 2,500 2,795 +o 1992 Projects Revenue Refunding Bonds, Series 1997A 5.50% 08/01/22 1,000 1,074 WHITTIER Presbyterian Intercommunity Hospital Revenue Bonds, Series 2002 5.60% 06/01/22 2,000 2,053 ----------- 178,934 VARIABLE RATE OBLIGATIONS 1.3% ------------------------------------------------------------------------------------------------------------------------------ California 1.3% CALIFORNIA + Economic Recovery Bonds, Series 2004C-6 1.63% 12/01/04 1,150 1,150 + General Obligation Bonds, Series 2003A-2 1.63% 12/01/04 150 150 + CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds, Series 2002B-2 1.74% 12/01/04 200 200 ~o ORANGE COUNTY SANITATION DISTRICT Refunding Bonds, Series 2000B 1.64% 12/01/04 300 300 ~ SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT Water Revenue Bonds, Series 2000 Authorization Series B-1 1.63% 12/01/04 600 600 ----------- 2,400
VALUE SECURITY AND NUMBER OF SHARES ($ x 1,000) OTHER INVESTMENT COMPANIES 0.0% of net assets PROVIDENT INSTITUTIONAL FUNDS - CALIFORNIA MONEY FUND PORTFOLIO 46,374 46
END OF INVESTMENTS. At 11/30/04, the tax basis cost of the fund's investments was $171,526 and the unrealized gains and losses were $9,875 and ($21), respectively. 4 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 Principal Financial Officer, George Pereira, 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 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 ------------------ By: /s/ Evelyn Dilsaver ---------------------------- Evelyn Dilsaver Chief Executive Officer Date: January 19, 2005 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: January 19, 2005 By: /s/ George Pereira ---------------------------- George Pereira Principal Financial Officer Date: January 19, 2005 EX-99.CERT 2 f04813exv99wcert.txt EXHIBIT 99.CERT CERTIFICATIONS I, Evelyn Dilsaver, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investments; 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. Date: January 19, 2005 /s/ Evelyn Dilsaver ------------------------------------- Evelyn Dilsaver President and Chief Executive Officer CERTIFICATIONS I, George Pereira, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investments; 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. Date: January 19, 2005 /s/ George Pereira --------------------------- George Pereira Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----