-----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, AgogTUcJBRgZR0DR4Wj3KjrlPFDT9E5qffO+MYM4azg/9mnueIV8QUEz4CyrRnjE xCYlbcT6a/dXqnBAiq86Gg== 0000950134-07-015527.txt : 20070720 0000950134-07-015527.hdr.sgml : 20070720 20070720161315 ACCESSION NUMBER: 0000950134-07-015527 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070531 FILED AS OF DATE: 20070720 DATE AS OF CHANGE: 20070720 EFFECTIVENESS DATE: 20070720 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: 07991713 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 415-627-7000 MAIL ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 0000869365 S000006808 Schwab YieldPlus Fund C000018435 Investor Shares SWYPX C000018436 Select Shares SWYSX 0000869365 S000006809 Schwab Short-Term Bond Market Fund C000018437 Investor Shares SWBDX 0000869365 S000006810 Schwab Total Bond Market Fund C000018438 Investor Shares SWLBX 0000869365 S000006811 Schwab GNMA Fund C000018439 Investor Shares SWGIX C000018440 Select Shares SWGSX 0000869365 S000006813 Schwab Tax-Free YieldPlus Fund C000018444 Investor Shares SWYIX C000018445 Select Shares SWYTX 0000869365 S000006814 Schwab Short/Intermediate Tax-Free Bond Fund C000018446 Investor Shares SWITX 0000869365 S000006815 Schwab Long-Term Tax-Free Bond Fund C000018447 Investor Shares SWNTX 0000869365 S000006816 Schwab California Tax-Free YieldPlus Fund C000018448 Investor Shares SWYKX C000018449 Select Shares SWYCX 0000869365 S000006817 Schwab California Short/Intermediate Tax-Free Bond Fund C000018450 Investor Shares SWCSX 0000869365 S000006818 Schwab California Long-Term Tax-Free Bond Fund C000018451 Investor Shares SWCAX 0000869365 S000006819 Schwab Inflation Protected Fund C000018452 Investor Shares SWRIX C000018453 Select Shares SWRSX N-Q 1 f31915anvq.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: March 1, 2007 -- May 31, 2007 ITEM 1. SCHEDULE OF INVESTMENTS. SCHWAB INVESTMENTS SCHWAB SHORT-TERM BOND MARKET FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. 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 date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 29.1% U.S. GOVERNMENT SECURITIES 169,271 168,271 28.6% CORPORATE BONDS 165,161 165,050 38.6% MORTGAGE-BACKED SECURITIES 224,068 223,313 2.9% ASSET-BACKED OBLIGATIONS 16,596 16,568 0.5% PREFERRED STOCK 2,912 2,933 0.9% SHORT-TERM INVESTMENTS 5,094 5,094 - -------------------------------------------------------------------------------- 100.6% TOTAL INVESTMENTS 583,102 581,229 13.1% COLLATERAL INVESTED FOR SECURITIES ON LOAN 75,612 75,612 (13.7)% OTHER ASSETS AND LIABILITIES (79,041) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 577,800
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) U.S. GOVERNMENT SECURITIES 29.1% OF NET ASSETS U.S. GOVERNMENT AGENCY SECURITIES 17.8% - -------------------------------------------------------------------------------- FANNIE MAE 6.00%, 01/01/22 (d) 2,935 2,966 4.00%, 11/25/27 33,150 32,519 FANNIE MAE TBA 5.50%, 12/01/99 8,000 7,939 FEDERAL HOME LOAN BANK 5.55%, 05/17/10 (b) 50,000 49,992 FREDDIE MAC 4.00%, 02/15/17 (b) 9,927 9,450 ----------- 102,866 U.S. TREASURY OBLIGATIONS 11.3% - -------------------------------------------------------------------------------- U.S. TREASURY NOTES 4.75%, 02/28/09 (e) 2,000 1,994 4.63%, 11/15/09 (e) 20,000 19,883 3.50%, 12/15/09 (e) 8,000 7,741 4.75%, 02/15/10 (e) 2,450 2,442 4.00%, 04/15/10 (e) 3,000 2,932 4.50%, 05/15/10 (e) 3,000 2,970 3.63%, 06/15/10 (e) 3,250 3,141 5.75%, 08/15/10 (e) 4,000 4,108 3.88%, 09/15/10 (e) 2,500 2,428 4.63%, 10/31/11 (e) 6,000 5,947 4.50%, 11/30/11 (e) 1,000 986 4.50%, 03/31/12 (e) 9,000 8,863 4.50%, 04/30/12 (e) 2,000 1,970 ----------- 65,405 ----------- TOTAL U.S. GOVERNMENT SECURITIES (COST $169,271) 168,271 ----------- CORPORATE BONDS 28.6% OF NET ASSETS FINANCE 13.7% - -------------------------------------------------------------------------------- BANKING 7.8% BANK OF SCOTLAND 7.00%, 11/20/07 (a)(b)(c)(d) 1,495 1,506 BARCLAYS BANK PLC 8.55%, 06/15/11 (a)(b)(c)(d) 5,000 5,534 BBVA BANCOMER CAPITAL TRUST I 5.38%, 07/22/10 (a)(b)(c)(d) 2,000 1,971 BCI US FUNDING TRUST 8.01%, 07/15/08 (a)(b)(c)(d) 1,100 1,126 CITIBANK KOREA, INC. 4.68%, 06/18/08 (a)(b) 1,000 993 DANSKE BANK A/S 5.91%, 06/16/14 (a)(b)(c)(d) 2,000 2,012 DBS BANK LTD./SINGAPORE 5.58%, 08/16/07 (a)(b)(c) 5,000 5,000 DEUTSCHE BANK CAPITAL TRUST 7.15%, 06/29/07 (a)(b) 8,000 8,340 ING CAPITAL FUNDING TRUST III 8.44%, 12/31/10 (a)(b)(d) 2,000 2,181 NATEXIS AMBS CO., LLC 8.44%, 06/30/08 (a)(b)(c)(d) 3,000 3,087 PNC PREFERRED FUNDING TRUST I 6.52%, 03/15/12 (a)(b)(c)(d) 2,000 2,037 RBS CAPITAL TRUST IV 6.15%, 06/29/07 (a)(b)(d) 4,000 4,067 SOVEREIGN BANK 4.38%, 08/01/08 (a)(b)(d) 3,800 3,748 STATE STREET CAPITAL TRUST IV 6.36%, 09/17/07 (a)(b) 2,000 2,011 U.S. AGBANK FCB 6.11%, 07/10/12 (a)(b) 1,500 1,486 ----------- 45,099 BROKERAGE 1.4% LEHMAN BROTHERS HOLDING CAPITAL TRUST VIII 6.19%, 08/31/07 (a)(b) 3,000 3,009 LEHMAN BROTHERS HOLDINGS E-CAPITAL TRUST I 6.14%, 08/20/07 (a)(b)(d) 2,000 2,024
1 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) MERRILL LYNCH & CO. 5.91%, 08/02/07 (a) 3,000 3,017 ----------- 8,050 FINANCE COMPANY 2.2% CAPMARK FINANCIAL GROUP 6.01%, 08/10/07 (a)(b)(c) 1,500 1,503 ILFC E-CAPITAL TRUST I 5.90%, 12/21/10 (a)(b)(c) 2,000 2,003 RESIDENTIAL CAPITAL LLC 7.19%, 07/17/07 (a)(b)(c)(d) 3,800 3,788 6.88%, 06/30/15 (b)(e) 4,800 4,832 SLM CORP. 5.44%, 07/25/07 (a)(e) 1,000 998 ----------- 13,124 INSURANCE 2.1% OIL INSURANCE LTD. 7.56%, 06/30/11 (a)(b)(c)(d) 1,000 1,040 STONEHEATH RE 6.87%, 10/15/11 (a)(b) 2,000 2,019 XL FINANCIAL ASSURANCE LTD. - TWIN REEFS PASS-THROUGH 6.32%, 06/10/07 (a)(b)(c) 1,000 1,003 ZFS FINANCE USA TRUST I 6.15%, 12/15/10 (a)(b)(c)(d) 1,500 1,511 ZFS FINANCE USA TRUST III 6.50%, 06/15/07 (a)(b)(c)(d) 2,500 2,546 ZURICH CAPITAL TRUST I 8.38%, 06/01/37 (b)(d) 3,811 3,979 ----------- 12,098 REAL ESTATE INVESTMENT TRUST 0.2% HEALTH CARE PROPERTY INVESTORS, INC. 5.80%, 06/15/07 (a)(b)(d) 1,000 1,000 ----------- 79,371 INDUSTRIAL 10.8% - -------------------------------------------------------------------------------- BASIC INDUSTRY 0.2% XSTRATA FINANCE DUBAI LTD. 5.71%, 08/13/07 (a)(b)(c)(d) 1,000 1,002 CAPITAL GOODS 0.4% CASE NEW HOLLAND, INC. 9.25%, 08/01/11 (b) 2,310 2,437 COMMUNICATIONS 3.2% ALAMOSA DELAWARE, INC. 8.50%, 01/31/12 (b)(d) 3,000 3,160 COMCAST CABLE HOLDINGS 9.80%, 02/01/12 630 734 COMCAST HOLDINGS CORP. 10.63%, 07/15/12 (d) 2,965 3,561 NEXTEL PARTNERS, INC. 8.13%, 07/01/11 (b)(d) 2,750 2,867 TELEFONOS DE MEXICO, S.A. 4.50%, 11/19/08 (b)(d) 2,000 1,980 TIME WARNER CABLE INC 5.40%, 07/02/12 (b)(c) 1,000 989 TIME WARNER ENTERTAINMENT CO. 10.15%, 05/01/12 2,000 2,364 US UNWIRED, INC. 10.00%, 06/15/12 (b)(d) 2,450 2,655 ----------- 18,310 CONSUMER CYCLICAL 4.9% CVS CAREMARK CORP. 6.30%, 12/01/07 (a)(b) 3,000 2,983 D.R. HORTON, INC. 8.00%, 02/01/09 (e) 2,000 2,066 FORD MOTOR CREDIT CO. 8.11%, 07/13/07 (a)(d) 2,000 2,012 8.36%, 08/02/07 (a)(d) 3,750 3,780 JC PENNEY CO., INC. 8.13%, 04/01/27 (b)(d) 500 514 KB HOME 7.75%, 02/01/10 (b) 1,000 1,016 9.50%, 02/15/11 (b)(e) 4,597 4,741 MANDALAY RESORT GROUP 10.25%, 08/01/07 (b) 2,000 2,020 SEMINOLE TRIBE OF FLORIDA 5.80%, 10/01/13 (c)(d) 900 888 TOLL CORP. 8.25%, 02/01/11 (b)(d)(e) 6,665 6,798 8.25%, 12/01/11 (b)(e) 1,545 1,592 ----------- 28,410 CONSUMER NON-CYCLICAL 0.2% STATER BROTHERS HOLDINGS, INC. 8.85%, 06/15/07 (a)(b)(d) 1,000 1,015 ENERGY 1.6% CONOCOPHILLIPS 9.38%, 02/15/11 (d) 1,200 1,360 DELEK & AVNER-YAM TETHYS LTD. 6.46%, 08/01/07 (a)(b)(c)(d) 1,403 1,401 HUSKY OIL LTD. 8.90%, 08/15/08 (a)(b)(d) 2,000 2,076 PREMCOR REFINING GROUP, INC. 9.50%, 02/01/08 (b) 4,000 4,269 ----------- 9,106 TRANSPORTATION 0.3% ERAC USA FINANCE CO. 5.61%, 07/30/07 (a)(c)(d) 1,000 1,003 YELLOW ROADWAY CORP. 6.74%, 08/15/07 (a)(b)(d) 1,000 1,001 ----------- 2,004 ----------- 62,284 UTILITIES 4.1% - -------------------------------------------------------------------------------- ELECTRIC 3.4% CENTERPOINT ENERGY RESOURCES CORP. 6.50%, 02/01/08 (d) 2,955 2,971 7.88%, 04/01/13 (b) 2,974 3,283 ENTERGY GULF STATES, INC. 5.76%, 06/01/07 (a)(b)(d) 1,200 1,200 4.88%, 11/01/11 (b)(d) 2,000 1,923
2 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SOUTHERN CALIFORNIA EDISON 5.42%, 06/13/07 (a)(b)(d) 10,000 10,003 ----------- 19,380 NATURAL GAS 0.7% ENTERPRISE PRODUCTS OPERATING L.P. 4.95%, 06/01/10 (b)(d) 3,000 2,954 WILLIAMS PARTNERS LP/WILLIAMS PARTNERS FINANCE CORP. 7.50%, 06/15/11 (b) 1,000 1,061 ----------- 4,015 ----------- 23,395 ----------- TOTAL CORPORATE BONDS (COST $165,161) 165,050 ----------- MORTGAGE-BACKED SECURITIES 38.6% OF NET ASSETS COLLATERALIZED MORTGAGE OBLIGATIONS 33.3% - ------------------------------------------------------------------------------- AMERICAN HOME MORTGAGE INVESTMENT TRUST Series 2005-3 Class 2A3 4.99%, 07/20/10 (a)(b)(d) 10,000 9,834 Series 2007-A Class 13A1 6.10%, 07/20/10 (a)(b)(c)(d) 4,792 4,871 CHASE MORTGAGE FINANCE CORP. Series 2006-A1 Class 2A1 6.09%, 06/01/07 (a)(b)(d) 19,799 19,756 CITICORP MORTGAGE SECURITIES, INC. Series 2003-10 Class A4 4.50%, 11/25/18 (b) 5,462 5,256 Series 2003-2 Class 2A2 5.25%, 02/25/33 (b) 5,000 4,915 CITIGROUP MORTGAGE LOAN TRUST, INC. Series 2003-1 Class WA1 6.50%, 06/25/16 (b) 157 158 Series 2007-3 Class A1 6.00%, 02/25/36 (b)(d) 8,000 7,951 COUNTRYWIDE ALTERNATIVE LOAN TRUST Series 2005-J8 Class1A3 5.50%, 04/05/12 (b) 229 228 Series 2004-30CB Class 1A2 4.25%, 02/25/35 (b)(d) 3,865 3,792 Series 2006-J6 Class A3 6.00%, 09/25/36 (b) 4,617 4,630 Series 2006-41CB Class 1A3 6.00%, 01/25/37 (b)(d) 9,207 9,259 COUNTRYWIDE HOME LOANS Series 2003-8 Class A4 4.50%, 05/25/18 (b)(d) 6,959 6,809 GSR MORTGAGE LOAN TRUST Series 2004-5 Class 3A2 4.70%, 06/01/07 (a)(b)(d) 5,000 4,913 INDYMAC INDEX MORTGAGE LOAN TRUST Series 2007-AR1 Class 2A1 5.72%, 06/01/07 (a)(b)(d) 7,806 7,765 Series 2007-AR5 Class 2A1 6.13%, 06/01/07 (a)(b) 14,762 14,814 JP MORGAN ALTERNATIVE LOAN TRUST Series 2007-A1 Class 2A1 5.94%, 06/01/07 (a)(b) 4,887 4,889 Series 2006-A5 Class 2A1 5.55%, 12/02/09 (a)(b)(d) 17,704 17,532 Series 2006-S1 Class 1A16 6.00%, 03/25/36 (b)(d) 6,357 6,389 JP MORGAN MORTGAGE TRUST Series 2005-A8 Class 6A2 5.13%, 06/01/07 (a)(b)(d) 3,521 3,495 Series 2006-S2 Class 3A7 6.25%, 07/25/36 (b)(d) 4,346 4,385 MASTR ALTERNATIVE LOANS TRUST Series 2003-8 Class 4A1 7.00%, 12/25/33 (b) 393 400 MASTR ASSET SECURITIZATION TRUST Series 2003-10 Class 2A1 4.50%, 11/25/13 (b) 306 300 MERRILL LYNCH ALTERNATIVE NOTE ASSET Series 2007-AF1 Class 1AF6 6.00%, 05/25/37 (b) 10,000 10,014 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-8AR Class 4A1 5.35%, 06/01/07 (a)(b)(d) 4,238 4,234 Series 2004-9 Class 2A 6.34%, 06/25/07 (a)(b)(d) 2,527 2,540 RESIDENTIAL ACCREDIT LOANS, INC. Series 2006-QA1 Class A21 5.98%, 06/01/07 (a)(b) 5,403 5,427 Series 2006-QS9 Class 1A3 6.00%, 07/25/36 (b) 3,644 3,644 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN Series 2007-3 Class 2A1 5.76%, 06/01/07 (a)(b) 4,978 4,968 STRUCTURED ASSET SECURITIES CORP. Series 2005-2XS Class 1A5A 4.72%, 06/01/07 (a)(b) 5,000 4,791 Series 2005-10 Class 5A7 5.25%, 12/25/34 (b) 5,000 4,942 TBW MORTGAGE BACKED PASS THROUGH CERTIFICATES Series 2006-1 Class 3A1 6.00%, 04/25/36 (b) 4,941 4,941 WELLS FARGO MORTGAGE BACKED SECURITIES TRUST Series 2006-AR11 Class A4 5.52%, 06/01/07 (a)(b) 4,667 4,639 ----------- 192,481 COMMERCIAL MORTGAGE BACKED SECURITIES 5.3% - -------------------------------------------------------------------------------- ACT DEPOSITOR CORP. Series 2005-RR Class A1FL 5.62%, 06/22/07 (a)(b)(d) 3,999 3,992
3 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) CREDIT SUISSE MORTGAGE CAPITAL CERTIFICATES Series 2006-C1 Class A2 5.51%, 08/14/07 (a)(b)(d) 10,000 10,015 CROWN CASTLE TOWERS LLC Series 2005-1 Class A 4.64%, 06/15/35 (c)(d) 4,000 3,900 GLOBAL SIGNAL TRUST III Series 2006-1 Class A1FL 5.54%, 06/15/07 (a)(c)(d) 3,000 3,003 Series 2006-1 Class B 5.59%, 02/15/36 (c)(d) 4,000 3,986 WAMU COMMERCIAL MORTGAGE SECURITY Series 2007-SL2 Class A1 5.42%, 02/18/10 (a)(b)(c) 5,985 5,936 ----------- 30,832 ----------- TOTAL MORTGAGE-BACKED SECURITIES (COST $224,068) 223,313 ----------- ASSET-BACKED OBLIGATIONS 2.9% OF NET ASSETS - -------------------------------------------------------------------------------- ARIA CDO I (JERSEY) LTD. Series 1A-3 Class B1U5 6.44%, 10/10/07 (a)(b)(c)(d) 4,000 4,001 CAPITAL ONE AUTO FINANCE TRUST Series 2007-A Class A3A 5.25%, 08/15/11 (b)(d) 5,000 4,992 FREMONT HOME LOAN TRUST Series 2003-B Class M2 6.94%, 06/25/07 (a)(b)(d) 2,154 2,158 LONG BEACH MORTGAGE LOAN TRUST Series 2003-4 Class M3 7.47%, 06/25/07 (a)(b)(d) 1,165 1,177 USXL FUNDING LLC Series 2006-1A Class A 5.38%, 04/15/14 (b)(c)(d)(f) 4,252 4,240 ----------- TOTAL ASSET-BACKED OBLIGATIONS (COST $16,596) 16,568 -----------
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) PREFERRED STOCK 0.5% OF NET ASSETS - -------------------------------------------------------------------------------- SOVEREIGN REAL ESTATE INVESTMENT TRUST (b)(c) 2,000,000 2,933 ----------- TOTAL PREFERRED STOCK (COST $2,912) 2,933 -----------
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 0.9% OF NET ASSETS COMMERCIAL PAPER & OTHER OBLIGATIONS 0.6% - -------------------------------------------------------------------------------- VIACOM, INC. 5.42%, 06/04/07 3,500 3,498 REPURCHASE AGREEMENT 0.1% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. dated 05/31/07, due 06/01/07 at 5.00%, with a maturity value of $751 (fully collateralized by Federal National Mortgage Assn. with a value of $789). 751 751 U.S. TREASURY OBLIGATIONS 0.2% - -------------------------------------------------------------------------------- U.S. TREASURY BILLS 4.92%, 06/14/07 300 299 4.85%, 07/19/07 200 199 4.84%, 07/26/07 150 149 4.69%, 08/30/07 200 198 ----------- 845 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $5,094) 5,094 -----------
END OF INVESTMENTS. At 05/31/07, the tax basis cost of the fund's investments was $583,114, and the unrealized appreciation and depreciation were $824 and ($2,709) respectively, with a net unrealized depreciation of ($1,885).
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) COLLATERAL INVESTED FOR SECURITIES ON LOAN 13.1% OF NET ASSETS STATE STREET NAVIGATOR SECURITY LENDING PRIME PORTFOLIO 75,611,718 75,612
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. In addition to the above, the fund held the following at 05/31/07. All numbers are x1,000 except number of futures contracts. 4 SCHWAB SHORT-TERM BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS/LOSSES FUTURES CONTRACTS 10 YEARS, SHORT, U.S. TREASURY NOTE expires 09/19/07 (68) 7,234 23 2 YEARS, LONG, U.S. TREASURY NOTE expires 09/28/07 206 41,982 (71) 5 YEARS, LONG, U.S. TREASURY NOTE expires 09/28/07 708 73,942 (234) -------------- (282) --------------
(a) Variable-rate security. (b) Callable security. (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $73,820 or 12.8% of net assets. (d) All or a portion of this security is held as collateral for open futures contracts. (e) All or a portion of this security is on loan. (f) Credit-enhanced security. 5 SCHWAB INVESTMENTS SCHWAB TOTAL BOND MARKET FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 73.6% MORTGAGE-BACKED SECURITIES 1,088,782 1,081,139 26.7% CORPORATE BONDS 394,104 392,961 11.7% U.S. GOVERNMENT SECURITIES 172,895 171,428 0.8% ASSET-BACKED OBLIGATIONS 12,269 12,189 1.0% PREFERRED STOCK 14,824 15,128 1.2% SHORT-TERM INVESTMENTS 17,066 17,066 - -------------------------------------------------------------------------------- 115.0% TOTAL INVESTMENTS 1,699,940 1,689,911 10.9% COLLATERAL INVESTED FOR SECURITIES ON LOAN 159,649 159,649 (25.9)% OTHER ASSETS AND LIABILITIES (380,102) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 1,469,458
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) MORTGAGE-BACKED SECURITIES 73.6% OF NET ASSETS COLLATERALIZED MORTGAGE OBLIGATIONS 32.0% - -------------------------------------------------------------------------------- ABN AMRO MORTGAGE CORP. Series 2003-7 Class A2 5.00%, 07/25/18 (b)(d) 170 168 AMERICAN HOME MORTGAGE INVESTMENT TRUST Series 2007-A Class 13A1 6.10%, 07/20/10 (a)(b)(c)(d) 9,583 9,741 BANC OF AMERICA ALTERNATIVE LOAN TRUST Series 2003-11 Class 15I0 0.35%, 06/01/07 (a)(b)(d) 42,432 608 Series 2006-4 Class 3CB6 6.00%, 05/25/36 (b)(d) 10,773 10,775 BANC OF AMERICA FUNDING CORP. Series 2006-E Class 2A1 5.85%, 06/01/07 (a)(b) 4,904 4,906 BEAR STEARNS ADJUSTABLE RATE MORTGAGE TRUST Series 2003-8 Class 5A 4.41%, 06/01/07 (a)(b) 7,783 7,594 CHASE MORTGAGE FINANCE CORP. Series 2007-A1 Class 10A1 4.91%, 06/01/07 (a)(d) 14,687 14,402 Series 2006-A1 Class 2A1 6.09%, 06/01/07 (a)(b)(d) 11,879 11,854 CITICORP MORTGAGE SECURITIES, INC. Series 2003-10 Class A4 4.50%, 11/25/18 (b) 819 789 Series 2003-2 Class 2A2 5.25%, 02/25/33 (b)(d) 5,291 5,201 Series 2003-11 Class 1A4 5.25%, 12/25/33 (b)(d) 1,000 977 CITIGROUP MORTGAGE LOAN TRUST, INC. Series 2007-3 Class A1 6.00%, 02/25/36 (b)(d) 16,000 15,902 COUNTRYWIDE ALTERNATIVE LOAN TRUST Series 2004-30CB Class 1A2 4.25%, 02/25/35 (b)(d) 3,865 3,792 Series 2006-J6 Class A3 6.00%, 09/25/36 (b)(d) 9,234 9,260 COUNTRYWIDE HOME LOAN MORTGAGE PASS THROUGH TRUST Series 2003-56 Class 4A2 4.93%, 06/01/07 (a)(b) 7,189 6,973 Series 2003-J6 Class 1A1 5.50%, 08/25/33 (b)(d) 1,292 1,256 CREDIT SUISSE MORTGAGE CAPITAL CERTIFICATES Series 2006-9 Class 5A1 5.50%, 11/25/36 (b) 27,334 26,497 Series 2007-2 Class 2A5 5.00%, 03/25/37 (b)(d) 24,795 23,296 DEUTSCHE ALTERNATIVE ASSET SECURITIES, INC. Series 2006-AR5 Class 22A 5.50%, 10/25/21 (b)(d) 9,228 9,199 Series 2006-AR5 Class 23A 6.00%, 10/25/21 (b)(d) 13,302 13,398 Series 2005-6 Class 1A3 5.50%, 12/25/35 (b)(d) 10,335 10,288 FIRST HORIZON ASSET SECURITIES, INC. Series 2003-8 Class 1A31 4.00%, 09/24/22 (a)(b) 400 396 Series 2003-3 Class 1A2 4.20%, 05/25/33 (b)(d) 6,061 5,954 GSAA HOME EQUITY TRUST Series 2004-NC1 Class AF6 4.76%, 06/28/11 (a)(b)(d) 7,000 6,839 GSR MORTGAGE LOAN TRUST Series 2004-5 Class 3A2 4.70%, 06/01/07 (a)(b)(d) 10,000 9,827
1 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) INDYMAC INDEX MORTGAGE LOAN TRUST Series 2007-AR1 Class 2A1 5.72%, 06/01/07 (a)(b)(d) 11,709 11,647 Series 2007-AR5 Class 2A1 6.13%, 06/01/07 (a)(b)(d) 9,841 9,876 JP MORGAN ALTERNATIVE LOAN TRUST Series 2007-A1 Class 2A1 5.95%, 06/01/07 (a)(b)(d) 9,773 9,778 Series 2006-A5 Class 2A1 5.55%, 12/02/09 (a)(b)(d) 15,933 15,778 Series 2006-S1 Class 1A16 6.00%, 03/25/36 (b)(d) 12,713 12,778 JP MORGAN MORTGAGE TRUST Series 2007-A1 Class 6A1 4.78%, 06/01/07 (a)(b)(d) 14,585 14,302 Series 2005-A8 Class 6A2 5.13%, 06/01/07 (a)(b)(d) 3,521 3,495 Series 2004-A5 Class 4A1 3.43%, 07/13/09 (a)(b)(d) 11,506 10,925 Series 2007-A2 Class 3A3 5.87%, 04/04/13 (a)(b) 50,000 50,369 Series 2006-S2 Class 3A7 6.25%, 07/25/36 (b)(d) 8,693 8,769 Series 2006-S2 Class 2A1 5.00%, 07/25/36 (b)(d) 8,910 8,780 MASTR SEASONED SECURITIES TRUST Series 2005-1 Class 2A1 6.20%, 06/01/07 (a)(b)(d) 947 961 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-8AR Class 4A1 5.35%, 06/01/07 (a)(b) 153 152 Series 2004-9 Class 1A 6.15%, 06/01/07 (a)(b)(d) 492 494 Series 2006-2 Class 4A 6.00%, 02/25/36 (b)(d) 11,528 11,544 Series 2006-2 Class 6A 6.50%, 02/25/36 (b)(d) 6,633 6,713 RESIDENTIAL ACCREDIT LOANS, INC. Series 2006-QA1 Class A21 5.98%, 06/01/07 (a)(b)(d) 10,968 11,018 Series 2006-QS9 Class 1A3 6.00%, 07/25/36 (b) 7,288 7,288 SEQUOIA MORTGAGE TRUST Series 2004-4 Class B1 5.82%, 06/20/07 (a)(b)(d) 2,855 2,856 Series Class 2004-4 Class B2 6.22%, 06/20/07 (a)(b)(d) 2,284 2,284 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN Series 2007-3 Class 2A1 5.76%, 06/01/07 (a)(b)(d) 9,957 9,937 STRUCTURED ASSET SECURITIES CORP. Series 2005-2XS Class 1A5A 4.72%, 06/25/07 (a)(b) 5,000 4,791 Series 2003-20 Class 2A3 4.50%, 07/25/18 (b)(d) 859 783 Series 2002-AL1 Class A2 3.45%, 02/25/32 (b) 1,609 1,419 TBW MORTGAGE BACKED PASS THROUGH CERTIFICATES Series 2006-1 Class 3A1 6.00%, 04/25/36 (b) 5,764 5,764 WELLS FARGO MORTGAGE BACKED SECURITIES TRUST Series 2006-1 Class A3 5.00%, 03/25/21 (b)(d) 38,878 37,681 ----------- 470,074 COMMERCIAL MORTGAGE BACKED SECURITIES 6.5% - -------------------------------------------------------------------------------- ACT DEPOSITOR CORP. Series 2005-RR Class A1FL 5.62%, 06/22/07 (a)(b)(d) 10,999 10,977 BANC OF AMERICA COMMERCIAL MORTGAGE, INC. Series 2006-1 Class A2 5.33%, 01/17/11 (a)(b)(d) 9,000 8,959 Series 2007-1 Class A4 5.45%, 01/15/49 (b)(d) 27,000 26,535 CREDIT SUISSE MORTGAGE CAPITAL CERTIFICATES Series 2006-C1 Class A2 5.51%, 08/14/10 (a)(b)(d) 7,000 7,010 CROWN CASTLE TOWERS LLC Series 2005-1A Class AFL 5.70%, 06/15/07 (a)(c)(d) 10,000 10,063 Series 2005-1A Class B 4.88%, 06/15/35 (c)(d) 5,375 5,266 GLOBAL SIGNAL TRUST III Series 2006-1 Class A1FL 5.54%, 06/15/07 (a)(c)(d) 5,000 5,005 Series 2004-2A Class C 4.70%, 12/15/14 (c)(d) 175 171 Series 2006-1 Class B 5.59%, 02/15/36 (c)(d) 8,000 7,972 WAMU COMMERCIAL MORTGAGE SECURITY Series 2007-SL2 Class A1 5.42%, 02/18/10 (a)(b)(c)(d) 13,965 13,852 ----------- 95,810 U.S. GOVERNMENT AGENCY MORTGAGES 35.1% - -------------------------------------------------------------------------------- FANNIE MAE 5.50%, 12/01/13 to 03/01/35(d) 60,036 58,987 6.00%, 11/01/16 to 01/01/37(d) 38,946 39,194 4.00%, 07/01/18 (d) 4,616 4,331 5.00%, 07/01/19 to 03/01/35(d) 12,535 11,966 6.00%, 04/01/21 to 11/01/21 21,100 21,333 6.50%, 09/01/22 to 12/01/34(d) 11,137 11,424 5.00%, 07/01/23 to 06/01/36 1,275 1,234 4.50%, 08/01/23 to 02/01/26 22,334 21,011 3.75%, 05/25/30 (d) 1,281 1,206 7.50%, 01/01/33 (d) 1,573 1,645 6.50%, 11/01/36 1 1 FANNIE MAE TBA 5.00%, 12/01/99 139,000 135,064 5.50%, 12/01/99 91,000 89,076 FREDDIE MAC 6.00%, 01/01/14 to 12/01/32(d) 7,252 7,312
2 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) 4.00%, 02/15/17 (b) 11,818 11,250 5.50%, 06/01/21 (d) 13,292 13,196 4.00%, 03/15/23 (b)(d) 23,913 22,431 6.50%, 03/01/32 (d) 3,185 3,267 FREDDIE MAC REMICS 4.00%, 09/15/19 to 11/15/20(b)(d) 12,476 11,452 5.00%, 10/15/19 (b)(d) 17,620 17,089 GINNIE MAE 7.50%, 03/15/32 (d) 841 882 6.00%, 06/15/33 to 10/15/34(d) 21,878 22,024 7.00%, 06/15/33 (d) 2,007 2,115 5.50%, 05/20/35 (d) 3,332 3,273 6.00%, 12/15/36 to 02/15/37 4,470 4,492 ----------- 515,255 ----------- TOTAL MORTGAGE-BACKED SECURITIES (COST $1,088,782) 1,081,139 ----------- CORPORATE BONDS 26.7% OF NET ASSETS FINANCE 12.9% - -------------------------------------------------------------------------------- BANKING 5.4% BARCLAYS BANK PLC 5.93%, 12/15/16 (a)(b)(c)(d) 5,000 4,946 BBVA BANCOMER CAPITAL TRUST I 5.38%, 07/22/10 (a)(b)(c)(d) 3,000 2,957 CITIBANK KOREA, INC. 4.68%, 06/18/08 (a)(b) 4,000 3,972 DANSKE BANK A/S 5.91%, 06/16/14 (a)(b)(c)(d) 3,000 3,017 DBS BANK LTD. 5.97%, 07/16/07 (a)(b)(c)(d) 5,000 5,134 DEUTSCHE BANK CAPITAL TRUST 7.15%, 06/29/07 (a)(b) 10,200 10,634 FLEET CAPITAL TRUST V 6.35%, 06/18/07 (a)(b)(d) 5,000 5,032 ING CAPITAL FUNDING TRUST III 8.44%, 12/31/10 (a)(b)(d) 5,574 6,078 JP MORGAN CHASE CAPITAL XIII 6.30%, 06/29/07 (a)(b)(d) 2,000 2,019 JP MORGAN CHASE CAPITAL XVIII 6.95%, 08/17/36 (b)(d) 2,000 2,082 NATEXIS AMBS CO., LLC 8.44%, 06/30/08 (a)(b)(c)(d) 7,000 7,203 PNC PREFERRED FUNDING TRUST I 6.52%, 03/15/12 (a)(b)(c)(d) 4,000 4,075 RBS CAPITAL TRUST IV 6.15%, 06/29/07 (a)(b)(d) 7,000 7,118 RESONA PREFERRED GLOBAL SECURITIES 7.19%, 07/30/15 (a)(b)(c)(d) 3,000 3,153 SOVEREIGN BANK 4.38%, 08/01/08 (a)(b)(d) 3,000 2,959 STATE STREET CAPITAL TRUST IV 6.36%, 09/17/07 (a)(b) 5,000 5,027 U.S. AGBANK FCB 6.11%, 07/10/12 (a)(b) 3,500 3,468 ----------- 78,874 BROKERAGE 1.0% LEHMAN BROTHERS HOLDING CAPITAL TRUST VIII 6.19%, 08/31/07 (a)(b) 7,000 7,021 MERRILL LYNCH & CO., INC. 5.91%, 08/02/07 (a) 7,000 7,038 ----------- 14,059 FINANCE COMPANY 4.0% AMERICAN INTERNATIONAL GROUP 6.25%, 03/15/37 (b)(d) 3,000 2,909 CAPITAL ONE CAPITAL III 7.69%, 08/15/36 (d) 7,000 7,501 CAPMARK FINANCIAL GROUP 6.01%, 08/10/07 (a)(b)(c) 3,500 3,508 GENERAL ELECTRIC CAPITAL CORP. 5.55%, 07/09/07 (a)(d) 5,000 5,012 5.74%, 08/06/07 (a)(d) 2,000 1,999 HIGHMARK, INC. 6.80%, 08/15/13 (b)(c)(d) 4,000 4,162 HSBC FINANCE CAPITAL TRUST IX 5.91%, 11/30/15 (a)(b)(d) 5,850 5,775 ILFC E-CAPITAL TRUST I 5.90%, 12/21/10 (a)(b)(c)(d) 3,000 3,004 ISTAR FINANCIAL, INC. 5.74%, 06/04/07 (a)(d) 2,000 2,004 RESIDENTIAL CAPITAL LLC 7.19%, 07/17/07 (a)(b)(c)(d) 8,300 8,273 6.88%, 06/30/15 (b)(d)(e) 13,200 13,288 SLM CORP. 5.44%, 07/25/07 (a)(e) 2,000 1,996 ----------- 59,431 INSURANCE 2.2% ASSURED GUARANTY US HOLDINGS, INC. 6.40%, 12/15/16 (a)(b)(d) 2,000 1,993 AXA SA 6.38%, 12/14/36 (a)(b)(c)(d) 2,000 1,891 LIBERTY MUTUAL GROUP, INC. 7.80%, 03/15/37 (b)(c)(d) 3,700 3,608 OIL INSURANCE LTD. 7.56%, 06/30/11 (a)(b)(c)(d) 4,000 4,160 STONEHEATH RE 6.87%, 10/15/11 (a)(b) 3,000 3,028 WHITE MOUNTAINS RE GROUP LTD. 7.51%, 06/30/07 (a)(b)(c) 2,000 1,997 ZFS FINANCE USA TRUST I 6.15%, 12/15/10 (a)(b)(c)(d) 2,500 2,518 ZFS FINANCE USA TRUST III 6.50%, 06/15/07 (a)(b)(c)(d) 5,000 5,092 ZURICH CAPITAL TRUST I 8.38%, 06/01/37 (b)(d) 7,000 7,309 ----------- 31,596
3 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) REAL ESTATE INVESTMENT TRUST 0.3% HEALTH CARE PROPERTY INVESTORS, INC. 5.80%, 06/15/07 (a)(b)(d) 2,000 2,001 SIMON PROPERTY GROUP LP 5.75%, 12/01/15 (b)(d) 3,000 3,017 ----------- 5,018 ----------- 188,978 INDUSTRIAL 10.9% - -------------------------------------------------------------------------------- BASIC INDUSTRY 0.3% ABX FINANCING CO. 6.35%, 10/15/36 (b)(c)(d) 3,000 2,944 XSTRATA FINANCE DUBAI LTD. 5.71%, 08/13/07 (a)(b)(c)(d) 2,000 2,004 ----------- 4,948 CAPITAL GOODS 0.2% CASE NEW HOLLAND, INC. 9.25%, 08/01/11 (b)(d) 3,000 3,165 COMMUNICATIONS 3.5% ALAMOSA DELAWARE, INC. 8.50%, 01/31/12 (b)(d) 3,985 4,197 AMERICA MOVIL SA DE CV 5.75%, 01/15/15 (b)(d) 3,000 3,003 BELLSOUTH CORP. 6.55%, 06/15/34 (b)(d) 2,000 2,046 COMCAST CABLE HOLDINGS 9.80%, 02/01/12 (d) 4,000 4,661 COMCAST HOLDINGS CORP. 10.63%, 07/15/12 (d) 4,272 5,131 NEXTEL PARTNERS, INC. 8.13%, 07/01/11 (b)(d) 8,741 9,114 ROGERS WIRELESS COMMUNICATIONS, INC. 8.00%, 12/15/12 (b)(d) 5,704 6,032 SPRINT CAPITAL CORP. 8.75%, 03/15/32 (b)(d) 3,000 3,468 TELEFONOS DE MEXICO, S.A. 4.50%, 11/19/08 (b)(d) 3,000 2,971 TIME WARNER ENTERTAINMENT CO. 10.15%, 05/01/12 (d) 7,230 8,544 US UNWIRED, INC. 10.00%, 06/15/12 (b)(d) 2,000 2,167 ----------- 51,334 CONSUMER CYCLICAL 4.6% CVS CAREMARK CORP. 6.30%, 12/01/07 (a)(b) 7,000 6,961 CVS LEASE PASS THROUGH 6.04%, 12/10/28 (b)(c)(d) 2,974 2,928 FORD MOTOR CREDIT CO. 8.11%, 07/13/07 (a)(d) 3,000 3,017 8.36%, 08/02/07 (a)(d) 9,750 9,828 6.63%, 06/16/08 (d) 1,300 1,301 JC PENNEY CO., INC. 8.13%, 04/01/27 (b)(d) 1,000 1,028 KB HOME 7.75%, 02/01/10 (b)(d) 2,000 2,033 9.50%, 02/15/11 (b)(d)(e) 11,777 12,145 MANDALAY RESORT GROUP 10.25%, 08/01/07 (b) 4,000 4,040 MGM MIRAGE, INC. 9.75%, 06/01/07 (b) 2,500 2,500 SEMINOLE TRIBE OF FLORIDA 5.80%, 10/01/13 (c)(d) 1,800 1,776 TOLL CORP. 8.25%, 02/01/11 (b)(d) 13,776 14,052 8.25%, 12/01/11 (b)(d)(e) 5,895 6,072 ----------- 67,681 CONSUMER NON-CYCLICAL 0.2% CORN PRODUCTS INTERNATIONAL, INC. 6.00%, 04/15/17 (b) 2,000 1,980 STATER BROTHERS HOLDINGS, INC. 8.85%, 06/15/07 (a)(b)(d) 1,050 1,066 ----------- 3,046 ENERGY 1.8% CONOCOPHILLIPS 9.38%, 02/15/11 (d) 5,000 5,665 DELEK & AVNER-YAM TETHYS LTD. 6.46%, 08/01/07 (a)(b)(c)(d) 2,104 2,101 HUSKY OIL LTD. 8.90%, 08/15/08 (a)(b)(d) 6,000 6,228 PREMCOR REFINING GROUP, INC. 9.50%, 02/01/13 (b)(d) 8,500 9,073 XTO ENERGY, INC. 7.50%, 04/15/12 (b)(d) 3,000 3,241 ----------- 26,308 TRANSPORTATION 0.3% ERAC USA FINANCE CO. 5.61%, 07/30/07 (a)(c)(d) 2,000 2,006 YELLOW ROADWAY CORP. 6.74%, 08/15/07 (a)(b)(d) 2,000 2,003 ----------- 4,009 ----------- 160,491 UTILITIES 2.9% - -------------------------------------------------------------------------------- ELECTRIC 2.2% CENTERPOINT ENERGY RESOURCES CORP. 7.88%, 04/01/13 (b)(d) 3,000 3,312 6.25%, 02/01/37 (b)(d) 2,000 1,973 ENTERGY GULF STATES, INC. 5.76%, 06/01/07 (a)(b)(d) 2,400 2,400 4.88%, 11/01/11 (b)(d) 3,000 2,885 MIDAMERICAN ENERGY HOLDINGS CO. 6.13%, 04/01/36 (b)(d) 2,000 1,982 NEVADA POWER CO. 5.95%, 03/15/16 (b)(d) 2,500 2,498 SOUTHERN CALIFORNIA EDISON 5.42%, 06/13/07 (a)(b)(d) 17,119 17,125 ----------- 32,175
4 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) NATURAL GAS 0.7% ENERGY TRANSFER PARTNERS LP 6.63%, 10/15/36 (b)(d) 1,000 1,005 ENTERPRISE PRODUCTS OPERATING LP 8.38%, 08/01/16 (a)(b)(d) 3,000 3,267 MAGELLAN MIDSTREAM PARTNERS 5.65%, 10/15/16 (b)(d)(e) 3,000 2,926 NORTHWEST PIPELINE CORP. 7.00%, 06/15/16 (b)(d) 2,000 2,140 SOUTHERN NATURAL GAS CO. 5.90%, 04/01/17 (b)(c) 2,000 1,979 ----------- 11,317 ----------- 43,492 ----------- TOTAL CORPORATE BONDS (COST $394,104) 392,961 ----------- U.S. GOVERNMENT SECURITIES 11.7% OF NET ASSETS U.S. TREASURY OBLIGATIONS 11.7% - -------------------------------------------------------------------------------- U.S. TREASURY BONDS 9.88%, 11/15/15 (e) 3,000 4,026 9.00%, 11/15/18 (d) 4,000 5,386 8.13%, 08/15/19 (d)(e) 5,000 6,402 8.00%, 11/15/21 (d)(e) 7,000 9,068 7.25%, 08/15/22 (e) 2,500 3,064 6.25%, 08/15/23 (d)(e) 11,700 13,164 6.88%, 08/15/25 (d)(e) 8,000 9,663 6.00%, 02/15/26 (d)(e) 8,000 8,858 6.13%, 11/15/27 (d)(e) 7,500 8,479 5.25%, 02/15/29 (d) 5,000 5,109 6.13%, 08/15/29 (d)(e) 1,000 1,138 6.25%, 05/15/30 (d)(e) 7,000 8,117 5.38%, 02/15/31 (d)(e) 17,182 17,924 4.50%, 02/15/36 (d)(e) 8,020 7,385 4.75%, 02/15/37 (d)(e) 2,000 1,919 U.S. TREASURY INFLATION PROTECTED SECURITY 2.38%, 01/15/17 (e) 22,396 22,119 U.S. TREASURY NOTES 4.75%, 02/15/10 (d)(e) 2,450 2,442 4.63%, 11/15/16 (d)(e) 6,900 6,757 4.50%, 05/15/17 (e) 23,200 22,497 U.S. TREASURY STRIP PRINCIPAL NOTE 0.00, 08/15/25 (d)(e) 20,000 7,911 ----------- TOTAL U.S. GOVERNMENT SECURITIES (COST $172,895) 171,428 ----------- ASSET-BACKED OBLIGATIONS 0.8% OF NET ASSETS ABSC NIMS TRUST Series 2005-HE6 Class A1 5.05%, 08/27/35 (b)(c)(d) 210 210 AEGIS ASSET BACKED SECURITIES TRUST Series 2004-4N Class N 5.00%, 10/25/34 (c)(d) 522 508 ARIA CDO I (JERSEY) LTD. Series 1A-3 Class B1U5 6.44%, 10/07/07 (a)(b)(c)(d) 6,000 6,001 CDC MORTGAGE CAPITAL TRUST Series 2003-HE2 Class M2 7.22%, 06/25/07 (a)(b)(d) 2,262 2,267 COUNTRYWIDE ASSET-BACKED CERTIFICATES Series 2001-BC3 Class M1 6.15%, 06/25/07 (a)(b)(d) 1,654 1,656 Series 2004-BC1 Class N 5.50%, 04/25/35 (d) 5 5 LONG BEACH MORTGAGE LOAN TRUST Series 2003-4 Class M3 7.47%, 06/25/07 (a)(b)(d) 1,525 1,542 ----------- TOTAL ASSET-BACKED OBLIGATIONS (COST $12,269) 12,189 -----------
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) PREFERRED STOCK 1.0% OF NET ASSETS COBANK, ACB (b)(c)(d) 115,000 6,068 SOVEREIGN REAL ESTATE INVESTMENT TRUST (b)(c)(d) 6,178,000 9,060 ----------- TOTAL PREFERRED STOCK (COST $14,824) 15,128 -----------
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 1.2% OF NET ASSETS COMMERCIAL PAPER & OTHER OBLIGATIONS 1.0% - -------------------------------------------------------------------------------- CONOCOPHILLIPS 5.40%, 06/01/07 5,000 5,000 VIACOM, INC. 5.45%, 06/01/07 10,000 10,000 ----------- 15,000 REPURCHASE AGREEMENT 0.1% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. dated 05/31/07, due 06/01/07 at 5.00%, with a maturity value of $1,273 (fully collateralized by Federal Home Loan Bank with a value of $1,304). 1,273 1,273
5 SCHWAB TOTAL BOND MARKET FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) U.S. TREASURY OBLIGATIONS 0.1% - -------------------------------------------------------------------------------- U.S. TREASURY BILLS 4.92%, 06/14/07 200 200 4.85%, 07/19/07 100 99 4.69%, 08/30/07 500 494 ----------- 793 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $17,066) 17,066 -----------
END OF INVESTMENTS. At 05/31/07 the tax basis cost of the fund's investments was $1,704,719 and the unrealized appreciation and depreciation were $365 and ($15,173), respectively, with a net depreciation of ($14,808).
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) COLLATERAL INVESTED FOR SECURITIES ON LOAN 10.9% OF NET ASSETS STATE STREET NAVIGATOR SECURITY LENDING PRIME PORTFOLIO 159,648,748 159,649
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. In addition to the above, the fund held the following at 05/31/07. All numbers are x 1,000 except number of futures contracts.
UNREALIZED NUMBER OF CONTRACT GAINS/ CONTRACTS VALUE LOSSES FUTURES CONTRACTS 10 YEARS, LONG, U.S. TREASURY NOTE expires 09/19/07 609 64,782 (192) 2 YEARS, LONG, U.S. TREASURY NOTE expires 09/28/07 134 27,309 (38) 30 YEARS, SHORT, U.S. TREASURY BOND expires 09/19/07 (25) 2,728 3 5 YEARS, LONG, U.S. TREASURY NOTE expires 09/28/07 818 85,430 (271) ---------- (498)
(a) Variable-rate security. (b) Callable security. (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $158,353 or 10.8% of net assets. (d) All or a portion of this security is held as collateral for open futures contracts. (e) All or a portion of this security is on loan. 6 SCHWAB INVESTMENTS SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 95.7% LONG-TERM INVESTMENTS 93,753 93,918 3.2% SHORT-TERM INVESTMENTS 3,113 3,128 - -------------------------------------------------------------------------------- 98.9% TOTAL INVESTMENTS 96,866 97,046 1.1% OTHER ASSETS AND LIABILITIES 1,121 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 98,167
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 95.7% OF NET ASSETS CALIFORNIA 92.6% - ------------------------------------------------------------------------------------------------------------------------------------ ALAMEDA CNTY Refunding COP Series 2001A 5.38% 12/01/09 (b) 5,000 5,201 BURBANK PUBLIC FINANCING AUTH RB (Golden State Redevelopment) Series 2007A 5.00% 12/01/20 (b) 2,995 3,210 CALIFORNIA Economic Recovery Bonds Series 2004A 5.25% 07/01/14 (b) 3,000 3,258 GO Bonds Series 1998 5.50% 12/01/11 (b) 1,665 1,785 GO Bonds Series 2002 5.25% 02/01/11 3,500 3,667 GO Refunding Bonds Series 2002 5.00% 02/01/12 (b) 4,000 4,206 CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002A 5.50% 05/01/10 1,315 1,377 CALIFORNIA HEALTH FACILITIES FINANCE AUTH RB (Kaiser Permanente) Series 1998B 5.00% 10/01/08 2,500 2,546 Refunding RB (Cedars-Sinai Medical Center) Series 2005 5.00% 11/15/16 2,000 2,101 CALIFORNIA PUBLIC WORKS BOARD Lease RB (UCLA Replacement Hospitals) Series 2002A 4.75% 10/01/09 (b) 3,005 3,072 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Pollution Control Refunding RB (Southern California Edison Co) Series C 4.25% 11/01/16 (b) 1,500 1,517 FREMONT UNION HIGH SD GO Bonds (Election of 1998) Series 2000B 5.75% 09/01/08 (b) 1,520 1,560 GOLDEN STATE TOBACCO SECURITIZATION CORP Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/19 4,500 4,567
1 SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) INTERMODAL CONTAINER TRANSFER FACILITY JOINT POWERS AUTH Refunding RB Series 1999A 5.00% 11/01/08 (b) 1,210 1,233 Refunding RB Series 1999A 5.00% 11/01/09 (b) 1,375 1,417 LOS ANGELES CNTY METROPOLITAN TRANSPORTATION AUTH Capital Grant Receipts RB (Gold Line Eastside Extension) Series 2005A 5.00% 10/01/11 (b) 4,000 4,161 LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY Lease RB (Vermont Manchester Social Services) Series 2005 5.00% 09/01/14 (b) 1,995 2,126 Subordinate Lien Tax Allocation Bonds (Bunker Hill) Series 2004 4.00% 03/01/10 1,950 1,915 LOS ANGELES STATE BUILDING AUTH Lease Refunding RB (Dept of General Services) Series 1993A 5.63% 05/01/11 (b) 3,500 3,651 LOS ANGELES UNIFIED SD GO Bonds (Election of 1997) Series 2000D 5.50% 07/01/10 4,000 4,202 GO Refunding Bonds Series 2006B 5.00% 07/01/16 (b) 2,000 2,163 MARINA JOINT POWERS FINANCING AUTHORITY M/F Housing RB (Abrams B Apts Financing) Series 2006 3.90% 11/15/16 (b) 5,000 4,953 NATOMAS UNION SD COP Series B 5.00% 02/01/10 (b) 1,865 1,919 OAKLAND Refunding COP (Oakland Museum) Series 2002A 5.00% 04/01/10 (b) 2,015 2,084 Refunding COP (Oakland Museum) Series 2002A 5.00% 04/01/11 (b) 1,460 1,524 OCEANSIDE COMMUNITY DEVELOPMENT COMMISSION M/F Rental Housing Refunding RB (Vista Del Oro Apts) Series 2001A 4.45% 04/01/11 (a)(b) 1,250 1,268 REDDING JOINT POWERS FINANCING AUTH Electric System RB Series 1996A 5.50% 06/01/11 (b) 2,000 2,023 RIVERSIDE COP (Capital Improvements Projects) Series 2003 5.00% 09/01/14 (b) 1,470 1,567 COP (Capital Improvements Projects) Series 2003 5.00% 09/01/15 (b) 1,545 1,638 RIVERSIDE CNTY ASSET LEASE CORP Leasehold RB (Riverside Cnty Hospital) Series 2003A 5.00% 06/01/09 (b) 2,555 2,619 SAN BERNARDINO CNTY M/F Housing Refunding RB Series 2001A 4.45% 05/01/31 (b) 1,300 1,327 SAN DIEGO UNIFIED SD GO Bonds (Election of 1998-Series F) Series 2004 5.00% 07/01/15 (b) 1,095 1,171 SAN FRANCISCO STATE UNIVERSITY Student Housing RB (Auxiliary Organization) Series 1999 5.00% 07/01/08 400 406 SAN JOSE REDEVELOPMENT AGENCY Tax Allocation Bonds (Merged Area Redevelopment) Series 2002 4.00% 08/01/10 (b) 5,000 5,044 SANTA CLARA CNTY FINANCING AUTH Lease RB (VMC Facility) Series 1994A 7.75% 11/15/10 (b) 1,000 1,125 VERNON Electric System RB (Malburg Generating Station) Series 2003C 5.00% 04/01/11 (b) 1,320 1,335 Electric System RB (Malburg Generating Station) Series 2003C 5.25% 04/01/15 (b) 1,905 1,931 TOTAL SHORT-TERM INVESTMENTS ----------- 90,869
2 SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) PUERTO RICO 3.1% - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO ELECTRIC POWER AUTH Refunding RB Series CC 5.50% 07/01/08 (b) 3,000 3,049 ----------- TOTAL LONG-TERM INVESTMENTS (COST $93,753) 93,918 ----------- SHORT-TERM INVESTMENTS 3.2% OF NET ASSETS CALIFORNIA 3.2% - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002B2 3.85% 06/01/07 (a)(b) 300 300 CALIFORNIA PUBLIC WORKS BOARD Lease Refunding RB (Univ of California) Series 1998A 5.25% 12/01/07 2,000 2,016 LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY Pooled Financing Refunding Bonds Series F 5.00% 09/01/07 (b) 810 812 ----------- TOTAL SHORT-TERM INVESTMENTS 3,128 (COST $3,113) ----------- 3,128 -----------
END OF INVESTMENTS. At 05/31/07, the tax basis cost of the fund's investments was $96,853, and the unrealized appreciation and depreciation was $659 and ($466), respectively, with a net appreciation of $193. (a) Variable-rate security. (b) Credit-enhanced security. COP -- Certificate of participation GO -- General obligation RB -- Revenue bond 3 SCHWAB INVESTMENTS SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 94.3% LONG-TERM INVESTMENTS 201,423 206,779 4.4% SHORT-TERM INVESTMENTS 9,770 9,770 - -------------------------------------------------------------------------------- 98.7% TOTAL INVESTMENTS 211,193 216,549 1.3% OTHER ASSETS AND LIABILITIES 2,756 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 219,305
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 94.3% OF NET ASSETS CALIFORNIA 94.3% - ------------------------------------------------------------------------------------------------------------------------------------ ALAMEDA CNTY COP (Alameda Cnty Medical Center) Series 1998 5.38% 06/01/18 (b) 3,400 3,488 ALAMEDA CORRIDOR TRANSPORTATION AUTH Sr Lien RB Series 1999A 5.13% 10/01/16 (b) 1,170 1,218 ANAHEIM PUBLIC FINANCING AUTH Sr Lease RB Series 1997A 6.00% 09/01/24 (b) 5,000 5,949 ASSOCIATION OF BAY AREA GOVERNMENTS Revenue COP (Lytton Gardens) Series 1999 6.00% 02/15/30 3,000 3,076 Tax Allocation RB (CA Redevelopment Agency Pool) Series 1997A6 5.25% 12/15/17 (b) 1,200 1,233 BANNING COMMUNITY REDEVELOPMENT AGENCY Tax Allocation Parity Bonds Series 2007 (Merged Downtown & Midway Redevelopment) 4.38% 08/01/37 (b) 2,000 1,918 BAY AREA TOLL AUTHORITY San Francisco Bay Area Toll Bridge RB Series 2006F 5.00% 04/01/31 2,000 2,097 BREA OLINDA UNIFIED SD GO Bonds Series 1999A 5.60% 08/01/20 (b) 1,000 1,056 BURBANK PUBLIC FINANCE AUTH RB 2003 Series A (Golden State Redevelopment) 5.25% 12/01/13 (b) 2,120 2,298 RB 2003 Series A (Golden State Redevelopment) 5.25% 12/01/17 (b) 1,625 1,750 RB 2003 Series A (Golden State Redevelopment) 5.25% 12/01/18 (b) 1,255 1,348 CALIFORNIA Dept of Veterans Affairs Home Purchase RB Series 2002A 5.30% 12/01/21 (b) 5,000 5,279 GO Bonds 5.25% 11/01/17 3,000 3,205 GO Bonds 5.63% 05/01/18 455 483
1 SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) GO Bonds 5.00% 03/01/31 7,440 7,733 GO Bonds Series 2000 5.63% 05/01/18 (b) 265 281 GO Bonds Series 2000 5.63% 05/01/18 50 53 GO Refunding Bonds 5.25% 08/01/32 (b) 2,000 2,287 GO Refunding Bonds Series 2000 5.63% 05/01/18 (b) 85 90 Prerefunded GO Bonds Series 2006 5.63% 05/01/18 145 154 CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002A 5.75% 05/01/17 3,000 3,291 CALIFORNIA EDUCATIONAL FACILITIES AUTH RB (California College of Arts and Crafts) Series 2001 5.75% 06/01/25 1,800 1,879 RB (Pepperdine Univ) Series 2000 5.75% 09/15/30 (b) 3,000 3,109 CALIFORNIA HEALTH FACILITIES FINANCE AUTH RB (Sutter Health) Series 2007A 5.00% 11/15/42 3,000 3,063 Refunding RB (Cedars-Sinai Medical Center) Series 2005 5.00% 11/15/27 4,000 4,108 CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK RB (J. David Gladstone Institutes) Series 2001 5.50% 10/01/19 1,250 1,327 CALIFORNIA PUBLIC WORKS BOARD Lease RB (Dept of Corrections) Series 2003 5.50% 06/01/17 6,970 7,591 Lease Refunding RB (Dept of Health Services-Richmond Lab) Series 2005K 5.00% 11/01/24 3,000 3,117 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH Collateralized RB Series 2001A 7.00% 04/20/36 (b) 4,000 4,529 COP (Internext Group) Series 1999 5.38% 04/01/17 4,405 4,478 RB (Huntington Memorial Hospital) Series 2005 5.00% 07/01/18 6,190 6,440 CERES REDEVELOPMENT AGENCY Tax Allocation Bonds (Ceres Redevelopment Area No.1) Series 2003 5.00% 11/01/33 (b) 3,200 3,349 CLOVERDALE COMMUNITY DEVELOPMENT AGENCY Tax Allocation Refunding Bonds (Cloverdale Redevelopment) Series 2006 5.00% 08/01/31 (b) 2,330 2,429 Tax Allocation Refunding Bonds (Cloverdale Redevelopment) Series 2006 5.00% 08/01/36 (b) 3,520 3,661 COLTON PUBLIC FINANCE AUTH Special Tax RB Series 1996 5.45% 09/01/19 (b) 3,020 3,062 CONTRA COSTA CNTY PUBLIC FINANCING AUTH Tax Allocation RB Series 2003A 5.63% 08/01/33 5,000 5,234 EAST BAY MUNICIPAL UTILITY DISTRICT Water System Subordinated RB Series 1998 5.25% 06/01/19 2,600 2,667 ESCONDIDO Revenue COP Series 2000A 6.00% 09/01/31 (b) 1,885 2,024 FONTANA REDEVELOPMENT AGENCY Tax Allocation Refunding Bonds (Jurupa Hills Redevelopment) Series 1997A 5.50% 10/01/19 3,500 3,584 FOOTHILL-EASTERN TRANSPORTATION CORRIDOR AGENCY Toll Road Refunding RB Series 1999 5.13% 01/15/19 (b) 5,000 5,199 GOLDEN STATE TOBACCO SECURITIZATION CORP Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/19 2,500 2,537 HOLLISTER JOINT POWER FINANCING AUTH Wastewater RB (Refinancing and Improvement) Series 2006 5.00% 06/01/32 (b) 2,960 3,089 HUNTINGTON BEACH Lease RB (Capital Improvement Financing) Series 2000A 5.50% 09/01/20 (b) 1,500 1,577
2 SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) INGLEWOOD REDEVELOPMENT AGENCY Tax Allocation Refunding Bonds (Merged Redevelopment) Series 1998A 5.25% 05/01/16 (b) 1,000 1,097 LANCASTER REDEVELOPMENT AGENCY Combined Redevelopment Project Areas (Housing Programs) Subordinate Tax Allocation Refunding Bonds Series 2003 4.75% 08/01/33 (b) 2,000 2,042 LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY Lease RB (Vermont Manchester Social Services) Series 2005 5.00% 09/01/17 (b) 2,310 2,454 LOS ANGELES DEPT OF WATER AND POWER Power System RB Series 2005A 5.00% 07/01/35 (b) 4,000 4,189 Water System RB Series 2006A2 5.00% 07/01/35 (b) 3,000 3,156 LOS ANGELES UNIFIED SD GO Bonds (Election of 2004) Series F 4.75% 07/01/27 (b) 4,000 4,101 GO Bonds (Election of 2005) Series C 5.00% 07/01/26 (b) 2,000 2,110 GO Bonds Series 2007A1 4.50% 01/01/28 (b) 2,000 1,987 LYNWOOD PUBLIC FINANCING AUTH Lease Refunding RB (Public Capital Improvement) Series 2003 5.00% 09/01/18 (b) 1,000 1,052 MONTCLAIR FINANCING AUTH Lease RB (Public Facilities) Series 2005 4.60% 10/01/25 (b) 2,000 2,021 OAKLAND JOINT POWER FINANCING AUTH Reassessment RB Series 1999 5.50% 09/02/24 990 1,033 OAKLAND REDEVELOPMENT AGENCY Subordinated Tax Allocation Bonds (Central District Redevelopment) Series 2003 5.50% 09/01/14 (b) 1,615 1,751 RIVERSIDE CNTY PUBLIC FINANCING AUTH Tax Allocation RB Series 2006A 4.75% 10/01/35 (b) 4,000 4,075 SACRAMENTO FINANCE AUTH Capital Improvement RB Series 1999 5.88% 12/01/29 (b) 3,000 3,215 Lease RB (Cal EPA Building) Series 1998A 5.25% 05/01/19 (b) 1,575 1,623 Tax Allocation RB Series 2005A 5.00% 12/01/34 (b) 2,615 2,735 SAN DIEGO CNTY COP (Burnham Institute for Medical Research) Series 2006 5.00% 09/01/34 5,000 5,045 SAN DIEGO REDEVELOPMENT AGENCY Subordinate Tax Allocation Bonds (Horton Plaza Redevelopment) Series 2000 5.80% 11/01/21 2,500 2,629 SAN FRANCISCO AIRPORTS COMMISSION Second Series Refunding RB (San Francisco International Airport) Series 30 5.00% 05/01/17 (b) 3,680 3,889 SAN FRANCISCO BAY AREA RAPID TRANSIT Sales Tax RB Series 1999 5.50% 07/01/26 (b) 1,000 1,046 Sales Tax RB Series 1999 5.50% 07/01/34 (b) 2,500 2,616 SAN FRANCISCO STATE UNIVERSITY Student Housing RB (Auxiliary Organization) Series 1999 5.20% 07/01/19 1,150 1,196 SAN LUIS OBISPO CNTY FINANCE AUTH RB (Lopez Dam Improvement) Series 2000A 5.38% 08/01/24 (b) 1,000 1,044 SANTA ANA UNIFIED SD GO Bonds (Election of 1999) Series 2000 5.70% 08/01/29 (b) 6,000 6,376 SANTA CLARA CNTY FINANCING AUTH Lease RB (VMC Facility) Series 1994A 7.75% 11/15/10 (b) 1,460 1,642
3 SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) SANTA CLARA REDEVELOPMENT AGENCY Tax Allocation Refunding RB (Bayshore North) 7.00% 07/01/10 (b) 1,240 1,304 SOUTH ORANGE CNTY PUBLIC FINANCING AUTH Special Tax RB Series 1999A 5.25% 08/15/18 (b) 3,095 3,218 TAFT CITY ELEMENTARY SD GO Bonds Series 2001A 4.90% 08/01/20 (b) 1,080 1,127 TRI-CITY HOSPITAL DISTRICT Refunding RB Series 1996A 5.63% 02/15/17 (b) 1,000 1,011 TRUCKEE PUBLIC FINANCING AUTH Lease RB Series 2000A 5.88% 11/01/25 (b) 1,490 1,565 UNIVERSITY OF CALIFORNIA Bond Series 2007A 4.50% 05/15/37 (b) 5,000 4,895 WEST BASIN WATER DISTRICT COP Refunding RB (1992 Projects) Series 1997A 5.50% 08/01/22 (b) 1,000 1,013 WHITTIER RB (Presbyterian Intercommunity Hospital) Series 2002 5.60% 06/01/22 (b) 2,000 2,182 ----------- TOTAL LONG-TERM INVESTMENTS (COST $201,423) 206,779 SHORT-TERM INVESTMENTS 4.4% OF NET ASSETS CALIFORNIA 4.4% - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002B2 3.85% 06/01/07 (a)(b) 3,900 3,900 IRVINE ASSESSMENT DISTRICT NO.97-16 Limited Obligation Improvement Bonds (Northwest Irvine) Series 1997 3.81% 06/01/07 (a)(b) 1,630 1,630 IRVINE RANCH WATER DISTRICT Consolidated Series 1995 GO of Improvement Districts No. 140, 240, 105, & 250 3.85% 06/01/07 (a)(b) 300 300 ORANGE CNTY SANITATION DISTRICT Refunding COP Series 2000B 3.83% 06/01/07 (a)(c) 2,340 2,340 SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT Water RB Series 2000B3 3.87% 06/01/07 (a)(c) 1,600 1,600 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $9,770) 9,770
END OF INVESTMENTS. At 05/31/07, the tax basis cost of the fund's investment was $211,175, and the unrealized appreciation and depreciation were $5,845 and ($471), respectively, with a net appreciation of $5,374. (a) Variable-rate security. (b) Credit-enhanced security. (c) Liquidity-enhanced security. COP -- Certificate of participation GO -- General obligation RB -- Revenue bond 4 SCHWAB INVESTMENTS SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 73.1% LONG-TERM INVESTMENTS 71,185 71,129 26.4% SHORT-TERM INVESTMENTS 25,774 25,710 - -------------------------------------------------------------------------------- 99.5% TOTAL INVESTMENTS 96,959 96,839 0.5% OTHER ASSETS AND LIABILITIES 506 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 97,345
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 73.1% OF NET ASSETS ALABAMA 0.6% - -------------------------------------------------------------------------------- MOBILE IDB Pollution Control Refunding RB (International Paper Co) Series 1994A 4.65% 12/01/11 600 608 CALIFORNIA 1.1% - -------------------------------------------------------------------------------- CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002A 5.50% 05/01/10 1,000 1,047 DISTRICT OF COLUMBIA 1.6% - -------------------------------------------------------------------------------- DISTRICT OF COLUMBIA COP Series 2006 5.00% 01/01/12 (b) 1,500 1,564 GEORGIA 3.9% - -------------------------------------------------------------------------------- ATLANTA Airport General Refunding RB Series 2003A 5.00% 01/01/10 (b) 3,660 3,764 INDIANA 2.2% - -------------------------------------------------------------------------------- LAKE CNTY First Mortgage Lease RB Series 2000 5.25% 08/01/09 (b) 2,040 2,101
1 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) KENTUCKY 3.7% - -------------------------------------------------------------------------------- KENTUCKY PROPERTY AND BUILDING COMMISSION RB Project No.71 5.50% 08/01/09 3,500 3,626 MARYLAND 1.1% - -------------------------------------------------------------------------------- BALTIMORE Convention Center Hotel RB Sr Series 2006A 5.00% 09/01/13 (b) 1,000 1,060 MASSACHUSETTS 4.8% - -------------------------------------------------------------------------------- MASSACHUSETTS GO Refunding Bonds Series 2001A 5.50% 01/01/11 2,500 2,635 Special Obligation RB Consolidated Loan Series 2002A 5.00% 06/01/10 (b) 2,000 2,067 ----------- 4,702 MISSOURI 2.1% - -------------------------------------------------------------------------------- ST LOUIS MUNICIPAL FINANCE CORP Leasehold Refunding RB Series 2003 5.25% 07/15/10 (b) 2,000 2,082 NEVADA 9.5% - -------------------------------------------------------------------------------- CLARK CNTY Airport System Subordinate Lien RB Series 2006A 5.00% 07/01/09 4,625 4,734 HENDERSON Health Facility RB (Catholic Healthcare West) Series 2007B 4.00% 07/01/12 3,000 2,967 Sr Limited Obligation Refunding Bonds (Seven Hills) Series 2001A 4.63% 08/01/11 (b) 1,465 1,507 ----------- 9,208 NEW JERSEY 1.4% - -------------------------------------------------------------------------------- MERCER CNTY Refunding RB (Regional Sludge) Series 2003 5.00% 12/15/09 (b) 1,300 1,339 NEW YORK 9.6% - -------------------------------------------------------------------------------- NEW YORK CITY GO Bonds Fiscal 2003 Series A 5.25% 08/01/09 1,825 1,879 GO Bonds Fiscal 2003 Series B 5.25% 08/01/09 1,000 1,029 NEW YORK STATE DORMITORY AUTH Lease RB Series 2003B 5.25% 07/01/13 (b) 2,000 2,139 NEW YORK STATE URBAN DEVELOPMENT CORP State Facilities Refunding RB Series 1995 5.60% 04/01/15 4,000 4,333 ----------- 9,380
2 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) NORTH CAROLINA 3.2% - -------------------------------------------------------------------------------- NORTH CAROLINA MUNICIPAL POWER AGENCY RB (Catawba Electric) Series 1999A 5.75% 01/01/09 (b) 3,000 3,089 PENNSYLVANIA 4.4% - -------------------------------------------------------------------------------- PHILADELPHIA Water and Wastewater Refunding RB Series 2001B 5.50% 11/01/11 (b) 4,000 4,270 PUERTO RICO 2.1% - -------------------------------------------------------------------------------- PUERTO RICO HIGHWAY AND TRANSPORTATION AUTH Refunding RB Series H 5.00% 07/01/10 (b) 2,000 2,068 TEXAS 8.6% - -------------------------------------------------------------------------------- DALLAS WATER AND SEWER UTILITIES Revenue Refunding and Improvement RB Series 2003 5.00% 10/01/10 (b) 5,000 5,179 DENTON UTILITY SYSTEM Refunding and Improvement RB Series 2001 5.00% 12/01/12 (b) 2,030 2,115 FORT WORTH General Purpose Improvement and Refunding Bonds Series 2001 5.00% 03/01/10 1,090 1,122 ----------- 8,416 WASHINGTON 13.2% - -------------------------------------------------------------------------------- NORTH KITSAP SD Unlimited Tax GO Refunding Bonds Series 2005 5.13% 12/01/16 (b) 4,650 5,020 SNOHOMISH CNTY Refunding Limited GO Bonds 4.50% 12/01/12 (b) 1,920 1,955 WASHINGTON Refunding COP (Dept of Ecology) Series 2001 4.75% 04/01/12 (b) 1,710 1,747 WASHINGTON PUBLIC POWER SUPPLY SYSTEM Refunding RB (Nuclear Project No.2) Series 1993A 5.70% 07/01/08 (b) 4,000 4,083 ----------- 12,805 ----------- TOTAL LONG-TERM INVESTMENTS (COST $71,185) 71,129 SHORT-TERM INVESTMENTS 26.4% OF NET ASSETS ARIZONA 5.1% - -------------------------------------------------------------------------------- ARIZONA Refunding COP Series 2002B 5.00% 09/01/07 (b) 5,000 5,014
3 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) CALIFORNIA 2.1% - -------------------------------------------------------------------------------- ALAMEDA PUBLIC FINANCING AUTH RB (1997 RB Refinancing) Series 1999 4.95% 09/02/07 2,065 2,067 COLORADO 2.1% - -------------------------------------------------------------------------------- ADAMS CNTY SD GO Refunding Bonds Series 2004 4.00% 12/01/07 (b) 2,000 2,003 GEORGIA 3.0% - -------------------------------------------------------------------------------- GEORGIA GO Bonds Series 2000D 6.00% 10/01/07 2,865 2,886 NEW JERSEY 3.6% - -------------------------------------------------------------------------------- NEW JERSEY TRANSIT CORP COP (FTA Grants) Series 2000B 5.50% 09/15/07 (b) 3,500 3,516 NEW YORK 2.0% - -------------------------------------------------------------------------------- LONG ISLAND POWER AUTH Electric System Subordinated RB Series 2001-2B 3.86% 06/01/07 (a)(b) 2,000 2,000 OREGON 1.8% - -------------------------------------------------------------------------------- OREGON Refunding COP (Dept of Administrative Services) Series 2002C 5.00% 11/01/07 (b) 1,705 1,713 PENNSYLVANIA 1.0% - -------------------------------------------------------------------------------- PENNSYLVANIA IDA Economic Development RB Series 1994 7.00% 07/01/07 (b) 1,000 1,002 SOUTH CAROLINA 3.1% - -------------------------------------------------------------------------------- CHARLESTON CNTY RB (Care Alliance Health Services) Series 1999A 4.25% 08/15/07 (b) 3,000 3,002 WISCONSIN 2.6% - -------------------------------------------------------------------------------- WISCONSIN Master Lease COP Series 2002D 5.00% 09/01/07 (b) 2,500 2,507 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $25,774) 25,710 -----------
END OF INVESTMENTS. 4 SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued At 05/31/07 the tax basis cost of the fund's investments was $96,959, and the unrealized appreciation and depreciation were $405 and ($525), respectively, with a net unrealized depreciation of ($120). (a) Variable-rate security. (b) Credit-enhanced security. COP -- Certificate of participation GO -- General obligation IDA -- Industrial development authority IDB -- Industrial development board RB -- Revenue bond TRAN -- Tax and revenue anticipation note 5 SCHWAB INVESTMENTS SCHWAB LONG-TERM TAX-FREE BOND FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 96.0% LONG-TERM INVESTMENTS 91,125 92,568 1.8% SHORT-TERM INVESTMENTS 1,750 1,750 - -------------------------------------------------------------------------------- 97.8% TOTAL INVESTMENTS 92,875 94,318 2.2% OTHER ASSETS AND LIABILITIES 2,102 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 96,420
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 96.0% OF NET ASSETS CALIFORNIA 10.8% - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA PUBLIC WORKS BOARD Lease Refunding RB (Dept of Health Services-Richmond Lab) Series 2005K 5.00% 11/01/24 2,000 2,078 GOLDEN STATE TOBACCO SECURITIZATION CORP Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/38 (b) 4,000 4,155 LOS ANGELES MUNICIPAL IMPROVEMENT CORP Lease RB (Police Headquarters Facilities) Series 2006A 4.75% 01/01/31 (b) 2,000 2,032 OAK VALLEY HOSPITAL DISTRICT GO Bonds (Election of 2004) Series 2005 5.00% 07/01/29 (b) 2,065 2,152 ----------- 10,417 COLORADO 4.5% - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO DEPT OF TRANSPORTATION RAN Series 2002B 5.50% 06/15/15 (b) 2,000 2,217 DENVER CONVENTION CENTER HOTEL AUTH Sr Refunding RB Series 2006 5.00% 12/01/30 (b) 2,000 2,078 ----------- 4,295 DISTRICT OF COLUMBIA 2.2% - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA COP Series 2003 5.50% 01/01/17 (b) 2,000 2,166
1 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) GEORGIA 1.3% - ------------------------------------------------------------------------------------------------------------------------------------ FULTON CNTY DEVELOPMENT AUTH RB (Tuff Morehouse) Series 2002A 5.50% 02/01/22 (b) 1,180 1,262 ILLINOIS 2.2% - ------------------------------------------------------------------------------------------------------------------------------------ CHICAGO O'HARE INTERNATIONAL AIRPORT General Airport Third Lien RB Series 2005A 5.00% 01/01/29 (b) 2,000 2,085 INDIANA 1.1% - ------------------------------------------------------------------------------------------------------------------------------------ MARION CNTY CONVENTION AND RECREATIONAL FACILITIES AUTH Excise Taxes Lease Refunding Sr RB Series 2001A 5.00% 06/01/21 (b) 1,000 1,032 KENTUCKY 1.0% - ------------------------------------------------------------------------------------------------------------------------------------ JEFFERSON CNTY Health Facilities RB (University Medical Center) Series 1997 5.25% 07/01/22 (b) 1,000 1,011 LOUISIANA 2.2% - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA CITIZENS PROPERTY INSURANCE CORP Assessment RB Series 2006B 5.00% 06/01/23 (b) 2,000 2,091 MARYLAND 1.4% - ------------------------------------------------------------------------------------------------------------------------------------ BALTIMORE Convention Center Hotel RB Sr Series 2006A 5.25% 09/01/23 (b) 1,000 1,081 MARYLAND HOUSING AND COMMUNITY DEVELOPMENT DEPT RB Series 1996A 5.88% 07/01/16 225 229 ----------- 1,310 MASSACHUSETTS 2.4% - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS BAY TRANSPORTATION AUTH Sr Sales Tax Bonds Series 2005B 5.50% 07/01/23 (b) 2,000 2,284 MICHIGAN 8.4% - ------------------------------------------------------------------------------------------------------------------------------------ DELTA CNTY ECONOMIC DEVELOPMENT CORP Environmental Improvement Refunding RB (MeadWestvaco-Escanaba Paper Co) Series 2002 6.25% 04/15/27 1,000 1,101 DETROIT Water Supply System Refunding Sr Lien RB Series 2003C 5.25% 07/01/16 (b) 2,620 2,805 DETROIT SD School Building and Site Improvement Bonds Series 2005A 5.00% 05/01/17 (b) 3,000 3,189 WAYNE CNTY COMMUNITY COLLEGE Improvement Bonds Series 1999 5.50% 07/01/19 (b) 1,000 1,040 ----------- 8,135
2 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) NEVADA 7.8% - ------------------------------------------------------------------------------------------------------------------------------------ CLARK CNTY SD General Obligation (Limited Tax) Refunding Bonds Series 2007A 5.00% 06/15/22 (b) 3,000 3,214 NEVADA Highway Improvement (Motor Vehicle Fuel Tax) RB Series 2004 5.50% 12/01/18 (b) 2,000 2,193 NEVADA DEPT OF BUSINESS AND INDUSTRY RB (Las Vegas Monorail) First Tier Series 2000 5.63% 01/01/32 (b) 2,000 2,109 ----------- 7,516 NEW JERSEY 1.6% - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON BOARD OF EDUCATION Refunding School Bonds 5.25% 01/01/27 (b) 1,400 1,573 NEW YORK 8.1% - ------------------------------------------------------------------------------------------------------------------------------------ HUDSON YARDS INFRASTRUCTURE CORP Sr RB Fiscal 2007 Series A 5.00% 02/15/47 (b) 2,000 2,089 METROPOLITAN TRANSPORTATION AUTH Refunding RB Series 2002A 5.50% 11/15/18 (b) 2,000 2,150 NEW YORK CITY GO Bonds Fiscal 2002 Series G 5.75% 08/01/16 965 1,045 GO Bonds Fiscal 2005 Series B 5.25% 08/01/15 1,000 1,076 NEW YORK CITY MUNICIPAL WATER FINANCE AUTH Water and Sewer System RB Series A 4.50% 06/15/37 1,500 1,459 ----------- 7,819 NORTH CAROLINA 3.0% - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA MEDICAL CARE COMMISSION Health System RB (Mission Health Combined Group) Series 2007 4.50% 10/01/26 3,000 2,932 OREGON 3.8% - ------------------------------------------------------------------------------------------------------------------------------------ COLUMBIA RIVER PEOPLES' UTILITY DISTRICT Electric System Revenue Obligations Series 2000B 5.50% 12/01/19 (b) 1,180 1,244 MORROW CNTY SD GO Bonds Series 2001 5.63% 06/15/16 (b) 2,235 2,381 ----------- 3,625 PENNSYLVANIA 3.6% - ------------------------------------------------------------------------------------------------------------------------------------ PHILADELPHIA HOSPITALS & HIGHER EDUCATION FACILITIES AUTH Hospital RB (Children's Hospital of Philadelphia) Series 2007A 4.50% 07/01/33 2,000 1,920
3 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) SENECA VALLEY UNIFIED SD GO Refunding Bonds Series 1998AA 5.15% 02/15/20 (b) 1,500 1,512 ----------- 3,432 RHODE ISLAND 0.0% - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND HOUSING & Mortgage Finance Corp Homeownership Opportunity Bonds Series 10A 6.50% 10/01/22 20 20 TEXAS 11.2% - ------------------------------------------------------------------------------------------------------------------------------------ AUSTIN COMBINED UTILITIES Refunding RB Series 1997 5.13% 11/15/16 (b) 3,000 3,016 HARLINGEN Combination Tax and Revenue Certificates of Obligation Series 2007 4.50% 02/15/26 (b) 1,060 1,042 HARRIS CNTY Permanent Improvement Refunding Bonds Series 2004A 5.00% 10/01/18 1,885 1,988 HARRIS CNTY HOSPITAL DISTRICT Refunding RB Series 2000 6.00% 02/15/16 (b) 1,000 1,059 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORP I Gas Supply RB Sr Lien Series 2006A 5.25% 12/15/26 2,000 2,180 TEXAS PUBLIC FINANCE AUTH Refunding RB (Texas Southern University) Series 1998A1 4.75% 11/01/17 (b) 1,545 1,564 ----------- 10,849 VERMONT 3.7% - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT EDUCATION AND HEALTH BUILDINGS FINANCING AGENCY Hospital RB (Fletcher Allen Health Care) Series 2000A 6.00% 12/01/23 (b) 2,000 2,139 Hospital RB (Fletcher Allen Health Care) Series 2007A 4.75% 12/01/36 1,500 1,463 ----------- 3,602 WASHINGTON 11.3% - ------------------------------------------------------------------------------------------------------------------------------------ KENT SD Unlimited Tax GO Refunding Bonds Series 1993A 5.55% 12/01/11 500 533 KING CNTY Lease RB (King Street Center) Series 1997 5.13% 06/01/17 (b) 1,000 1,010 NORTH KITSAP SD Unlimited Tax GO Refunding Bonds Series 2005 5.13% 12/01/18 (b) 1,850 1,982 OCEAN SHORES Water and Sewer RB Series 2001 5.50% 12/01/21 (b) 2,000 2,121 WASHINGTON HEALTH CARE FACILITIES AUTH RB (Catholic Health Initiatives) Series A 6.00% 12/01/20 (b) 3,000 3,200 RB (Swedish Health System) Series 1998 5.13% 11/15/18 (b) 2,000 2,052 ----------- 10,898 WISCONSIN 4.4% - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN GO Bonds Series 2005D 5.00% 05/01/21 4,000 4,214 -----------
4 SCHWAB LONG-TERM TAX-FREE BOND FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) TOTAL LONG-TERM INVESTMENTS (COST $91,125) 92,568 SHORT-TERM INVESTMENTS 1.8% OF NET ASSETS GEORGIA 0.5% - ------------------------------------------------------------------------------------------------------------------------------------ ATLANTA WATER & SEWER SYSTEM Water and Wastewater RB Series 2001C 3.76% 06/01/07 (a)(b)(c) 500 500 NEW YORK 1.1% - ------------------------------------------------------------------------------------------------------------------------------------ LONG ISLAND POWER AUTH Electric System Subordinated RB Series 2001-2B 3.71% 06/01/07 (a)(b) 900 900 NEW YORK CITY TRANSITIONAL FINANCE AUTH Recovery Bonds Fiscal 2003 Series 3B 3.92% 06/01/07 (a)(c) 200 200 ----------- 1,100 TENNESSEE 0.2% - ------------------------------------------------------------------------------------------------------------------------------------ CLARKSVILLE PUBLIC BUILDING AUTH Pooled Financing RB (Tennessee Municipal Bond Fund) Series 2001 3.90% 06/01/07 (a)(b) 150 150 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $1,750) 1,750
END OF INVESTMENTS. At 05/31/07, the tax basis cost of the fund's investments was $92,874 and the unrealized appreciation and depreciation was $1,965 and ($521), respectively, with a net appreciation of $1,444. (a) Variable-rate security. (b) Credit-enhanced security. (c) Liquidity-enhanced security. COP -- Certificate of participation GO -- General obligation RAN -- Revenue anticipation note RB -- Revenue bond 5 SCHWAB INVESTMENTS SCHWAB YIELDPLUS FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 45.1% CORPORATE BONDS 5,985,952 5,993,310 10.9% ASSET-BACKED OBLIGATIONS 1,444,182 1,442,119 46.5% MORTGAGE-BACKED SECURITIES 6,203,156 6,177,217 1.1% PREFERRED STOCK 142,692 142,347 1.3% SHORT-TERM INVESTMENTS 170,944 170,945 - -------------------------------------------------------------------------------- 104.9% TOTAL INVESTMENTS 13,946,926 13,925,938 (3.8)% SHORT SALES (507,183) (502,927) (1.1)% OTHER ASSETS AND LIABILITIES (145,028) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 13,277,983
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) CORPORATE BONDS 45.1% OF NET ASSETS FINANCE 27.9% - -------------------------------------------------------------------------------- BANKING 12.7% ALLIED IRISH BANKS 6.23%, 07/16/07 (a)(b)(c)(d) 17,575 17,603 ANZ CAPITAL TRUST I 4.48%, 12/31/49 (b)(c)(d) 27,000 26,244 ARTESIA OVERSEAS, LTD. 6.12%, 10/14/10 (a)(b) 10,000 10,025 BANKBOSTON CAPITAL TRUST III 6.10%, 06/15/07 (a)(b)(d) 22,175 22,239 BANKNORTH CAPITAL TRUST I 10.52%, 05/01/27 (b)(d) 1,600 1,689 BAYERISCHE LANDESBANK GIROZENTRALE 4.62%, 06/01/07 (a)(d) 15,000 15,000 BNP PARIBAS CAPITAL TRUST V 7.20%, 12/31/49 (b) 5,150 5,153 BNP US FUNDING LLC 7.74%, 12/05/07 (a)(b)(c)(d) 18,651 18,852 BTM CURACAO HOLDINGS N.V. 5.67%, 06/19/07 (a)(b)(d) 50,000 49,888 CAPITAL ONE BANK FSB 5.45%, 06/13/07 (a)(d) 100,000 100,082 CHASE CAPITAL II 5.86%, 08/01/07 (a)(b)(d) 12,500 12,249 CITIBANK KOREA, INC. 5.64%, 09/26/07 (a)(b) 25,300 25,322 DANSKE BANK A/S 5.91%, 06/16/14 (a)(b)(c)(d) 24,100 24,238 7.40%, 06/15/07 (a)(b)(c)(d) 22,350 22,390 DBS BANK LTD./SINGAPORE 5.58%, 08/16/07 (a)(b)(c) 116,000 116,000 DBS CAPITAL FUNDING CORP. 7.66%, 03/15/11 (a)(b)(c)(d) 24,500 26,227 DEUTSCHE BANK CAPITAL TRUST 7.15%, 06/29/07 (a)(b) 48,400 50,459 DEUTSCHE BANK CAPITAL TRUST III 7.25%, 06/29/07 (a)(b) 10,000 10,784 DEUTSCHE BANK LUXEMBOURG 5.97%, 06/28/07 (a)(c)(d) 5,000 5,019 FIRST UNION CAPITAL I 7.94%, 01/15/27 (b)(d) 50,000 52,008 FIRST UNION INSTITUTIONAL CAPITAL I 8.04%, 12/01/26 (b)(d) 13,750 14,315 FLEET CAPITAL TRUST II 7.92%, 12/11/26 (b)(d) 7,580 7,883 FLEET CAPITAL TRUST V 6.35%, 06/18/07 (a)(b)(d) 42,600 42,874 GLITNIR BANKI HF 5.52%, 07/16/07 (a)(c)(d) 45,690 45,647 5.83%, 07/18/07 (a)(d) 15,000 15,094 GREENPOINT CAPITAL TRUST I 9.10%, 06/01/27 (b)(d) 31,819 33,338 HUBCO CAPITAL TRUST I, SERIES B 8.98%, 02/01/27 (b)(d) 1,200 1,257 ING CAPITAL FUNDING TRUST III 8.44%, 12/31/10 (b)(d) 10,914 11,902 INTESA BANK OVERSEAS LTD. 6.20%, 07/02/07 (a) 31,000 31,130 JP MORGAN CHASE CAPITAL XXIII 6.36%, 08/15/07 (a)(b) 20,000 19,885 LEHMAN BROTHERS CUSTODIAL RECEIPTS - JP MORGAN, SERIES II 5.50%, 08/04/07 (a) 20,000 19,450 LLOYDS TSB BANK PLC 6.90%, 11/22/49 (b) 7,000 7,012 MBNA CAPITAL B 6.16%, 08/01/07 (a)(b) 10,000 9,915 MIZUHO FINANCIAL GROUP CAYMAN LTD. 8.38%, 12/29/49 (b) 62,545 65,526 NATEXIS AMBS CO., LLC 8.44%, 06/30/08 (a)(b)(c)(d) 53,370 54,914 RBS CAPITAL TRUST IV 6.15%, 06/29/07 (a)(b)(d) 165,765 168,553 REPUBLIC NEW YORK CORP. 5.69%, 07/31/07 (a)(b)(d) 44,700 44,593 SOCGEN REAL ESTATE CO., LLC 7.64%, 09/30/07 (a)(b)(c)(d) 48,865 49,184
1 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SOCIETE GENERALE 6.10%, 07/05/07 (a)(b)(c) 200,000 200,300 SOVEREIGN BANCORP 5.58%, 06/23/07 (a) 25,000 25,017 SOVEREIGN BANK 4.38%, 08/01/08 (a)(b)(d) 2,750 2,712 STATE STREET CAPITAL TRUST IV 6.36%, 09/17/07 (a)(b) 93,000 93,498 U.S. AGBANK FCB 6.11%, 07/10/07 (a)(b) 25,000 24,769 UNICREDITO ITALIANO CAPITAL TRUST II 9.20%, 10/05/10 (a)(b)(c)(d) 68,986 76,557 WASHINGTON MUTUAL CAPITAL I 8.38%, 06/01/27 (b)(d) 8,490 8,858 ----------- 1,685,654 BROKERAGE 3.9% CREDIT SUISSE GUERNSEY 6.05%, 08/15/07 (a)(b)(d) 275,000 275,275 GOLDMAN SACHS CAPITAL TRUST III 6.13%, 06/10/12 (a)(b) 50,000 49,979 LEHMAN BROTHERS HOLDINGS E-CAPITAL TRUST I 6.14%, 08/20/07 (a)(b)(d) 58,000 58,705 MERRILL LYNCH & CO., INC. 5.41%, 08/08/07 (a) 45,000 45,020 5.91%, 08/02/07 (a) 85,000 85,463 ----------- 514,442 FINANCE COMPANY 6.0% AMERICAN GENERAL FINANCE CORP. 5.48%, 06/27/07 (a)(d) 30,000 30,041 CAPITAL ONE CAPITAL III 7.69%, 08/15/36 (d) 7,000 7,502 CAPITAL ONE FINANCIAL CORP. 5.62%, 06/10/07 (a)(d) 60,000 60,195 CAPMARK FINANCIAL GROUP 6.01%, 08/10/07 (a)(b)(c)(d) 45,000 45,103 COUNTRYWIDE FINANCIAL CORP. 5.44%, 06/08/07 (a)(d) 100,000 99,950 5.62%, 06/19/07 (a)(d) 6,000 6,005 GENERAL ELECTRIC CAPITAL CORP. 5.41%, 07/26/07 (a)(d) 95,000 94,982 HSBC FINANCE CAPITAL TRUST IX 5.91%, 11/30/15 (a)(b)(d) 20,000 19,743 HSBC FINANCE CORP. 5.42%, 07/23/07 (a)(d) 70,000 70,035 ILFC E-CAPITAL TRUST I 5.90%, 12/21/10 (a)(b)(c)(d) 73,495 73,599 ISTAR FINANCIAL, INC. 5.69%, 06/15/07 (a)(c)(d) 55,300 55,405 5.74%, 09/03/07 (a)(d) 21,000 21,040 RESIDENTIAL CAPITAL LLC 6.46%, 07/17/07 (a)(d) 32,650 32,703 7.19%, 07/17/07 (a)(b)(c)(d) 164,730 164,193 SLM CORP. 5.44%, 07/25/07 (a) 12,000 11,974 5.58%, 07/25/07 (a) 6,870 6,866 ----------- 799,336 INSURANCE 4.8% ARTESIA BANK S.C. 7.25%, 09/17/07 (a)(b)(c) 9,000 9,039 AXA SA 5.95%, 09/04/07 (a)(b) 64,600 64,734 M&I MARSHALL & ILSLEY BANK 5.63%, 09/04/07 (a)(b) 80,000 80,000 MANTIS REEF LTD. 4.69%, 11/14/08 (b)(c)(d) 53,970 53,291 OIL INSURANCE LTD. 7.56%, 06/30/11 (a)(b)(c)(d) 71,375 74,223 STONEHEATH RE 6.87%, 10/15/11 (a)(b) 27,000 27,251 XL FINANCIAL ASSURANCE LTD. - TWIN REEFS PASS-THROUGH 6.32%, 06/10/07 (a)(b)(c)(d) 13,336 13,379 XLLIAC GLOBAL FUNDING 5.55%, 06/01/07 (a)(d) 22,500 22,540 ZFS FINANCE USA TRUST I 6.15%, 12/15/10 (a)(b)(c)(d) 16,000 16,118 ZFS FINANCE USA TRUST III 6.50%, 06/15/07 (a)(b)(c)(d) 78,650 80,104 ZURICH CAPITAL TRUST I 8.38%, 06/01/37 (b)(d) 189,821 198,213 ----------- 638,892 REAL ESTATE INVESTMENT TRUST 0.5% HEALTH CARE PROPERTY INVESTORS, INC. 5.80%, 06/15/07 (a)(b)(d) 47,000 47,015 HRPT PROPERTIES TRUST 5.95%, 06/16/07 (a)(b)(d) 18,590 18,612 ----------- 65,627 ----------- 3,703,951 INDUSTRIAL 15.1% - -------------------------------------------------------------------------------- BASIC INDUSTRY 0.4% ABITIBI-CONSOLIDATED, INC. 6.95%, 04/01/08 (d) 20,000 19,700 EQUISTAR CHEMICALS LP/EQUISTAR FUNDING CORP. 10.63%, 05/01/11 (b)(d) 5,023 5,324 LYONDELL CHEMICAL CO. 10.88%, 05/01/09 (b) 7,500 7,537 MILLENNIUM AMERICA, INC. 9.25%, 06/15/08 (b) 8,902 9,236 XSTRATA FINANCE DUBAI LTD. 5.71%, 08/13/07 (a)(b)(c)(d) 17,000 17,031 ----------- 58,828 CAPITAL GOODS 0.5% CASE NEW HOLLAND, INC. 9.25%, 08/01/11 (b)(d) 65,895 69,519 COMMUNICATIONS 3.5% ALAMOSA DELAWARE, INC. 8.50%, 01/31/12 (b)(d) 56,678 59,691
2 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) 11.00%, 07/31/10 (b)(d) 31,409 33,316 AMERICA MOVIL SA DE CV 5.45%, 06/27/07 (a)(c)(d) 100,000 100,016 COMCAST CORP. 5.66%, 07/16/07 (a)(b)(d) 30,000 30,041 COMCAST HOLDINGS CORP. 10.63%, 07/15/12 2,069 2,485 COX COMMUNICATIONS, INC. 5.91%, 06/14/07 (a)(d) 25,000 25,064 LCI INTERNATIONAL, INC. 7.25%, 06/15/07 (b)(d) 29,775 29,775 NEXTEL PARTNERS, INC. 8.13%, 07/01/11 (b)(d) 64,250 66,992 ROGERS WIRELESS COMMUNICATIONS, INC. 8.00%, 12/15/12 (b)(d) 27,466 29,049 SBC COMMUNICATIONS, INC. 5.57%, 08/14/07 (a)(d) 25,000 25,084 TELECOM ITALIA CAPITAL S.A. 5.84%, 08/01/07 (a)(d) 23,490 23,621 TIME WARNER ENTERTAINMENT CO. 10.15%, 05/01/12 8,250 9,749 UNIVISION COMMUNICATIONS, INC. 3.50%, 10/15/07 (b) 10,450 10,385 US UNWIRED, INC. 10.00%, 06/15/12 (b)(d) 22,230 24,086 ----------- 469,354 CONSUMER CYCLICAL 7.1% CENTEX CORP. 5.61%, 08/01/07 (a)(d) 22,950 22,957 CIRCUS & ELDORADO/SILVER LEGACY CAPITAL CORP. 10.13%, 03/01/12 (b) 2,000 2,110 CVS CAREMARK CORP. 6.30%, 12/01/07 (a)(b) 90,000 89,499 DAIMLERCHRYSLER N.A. HOLDINGS 5.69%, 06/13/07 (a)(b)(d) 20,000 20,043 5.77%, 06/13/07 (a)(d) 31,900 32,048 5.82%, 06/11/07 (a)(d) 58,158 58,229 FORD MOTOR CREDIT CO. 4.95%, 01/15/08 (d) 14,000 13,885 6.18%, 06/28/07 (a)(d) 10,243 10,244 6.63%, 06/16/08 (d) 37,700 37,743 6.75%, 08/15/08 (d) 4,660 4,633 6.93%, 07/16/07 (a)(d) 3,000 2,979 7.20%, 06/15/07 (d) 28,152 28,154 8.36%, 08/02/07 (a)(d) 25,520 25,724 GLOBAL CASH ACCESS LLC/GLOBAL CASH FINANCE CORP. 8.75%, 03/15/12 (b)(d) 7,500 7,894 HARRAH'S OPERATING CO., INC. 7.13%, 06/01/07 (b) 7,015 7,015 HYATT EQUITIES LLC 6.88%, 06/15/07 (b)(c)(d) 1,295 1,295 JC PENNEY CO., INC. 8.13%, 04/01/27 (b)(d) 23,135 23,792 KB HOME 7.75%, 02/01/10 (b)(d) 28,260 28,719 8.63%, 12/15/08 (d) 19,899 20,571 9.50%, 02/15/11 (b)(d) 80,186 82,692 LENNAR CORP. 6.10%, 06/19/07 (a)(b)(d) 24,705 24,705 MANDALAY RESORT GROUP 9.50%, 08/01/08 (b) 5,245 5,455 10.25%, 08/01/07 (b) 19,330 19,523 MGM MIRAGE, INC. 6.00%, 10/01/09 (b) 11,300 11,300 6.75%, 08/01/07 (b)(d) 6,000 6,030 6.75%, 02/01/08 (b) 300 302 9.75%, 06/01/07 (b)(d) 22,980 22,980 ROYAL CARIBBEAN CRUISES LTD. 6.75%, 03/15/08 (d) 4,255 4,307 7.00%, 10/15/07 (d) 13,040 13,170 SEMINOLE TRIBE OF FLORIDA 5.80%, 10/01/13 (c)(d) 6,290 6,208 TIME WARNER, INC. 5.59%, 08/13/07 (a)(d) 68,000 68,169 TOLL CORP. 8.25%, 02/01/11 (b)(d) 102,490 104,540 8.25%, 12/01/11 (b)(d) 78,190 80,536 VIACOM, INC. 5.70%, 06/18/07 (a)(d) 50,000 50,171 ----------- 937,622 CONSUMER NON-CYCLICAL 0.5% DEAN FOODS CO. 8.15%, 08/01/07 (b)(d) 7,115 7,141 REYNOLDS AMERICAN, INC. 6.50%, 06/01/07 (b)(d) 27,750 27,785 6.50%, 07/15/10 (b) 10,000 10,268 STATER BROTHERS HOLDINGS, INC. 8.85%, 06/15/07 (a)(b)(d) 21,000 21,315 ------------ 66,509 ENERGY 2.1% ANADARKO PETROLEUM CORP. 5.75%, 06/15/07 (a)(b)(d) 58,002 58,161 BJ SERVICES CO. 5.53%, 06/01/07 (a)(b)(d) 43,825 43,873 DELEK & AVNER-YAM TETHYS LTD. 6.46%, 08/01/07 (a)(b)(c)(d) 30,682 30,640 HUSKY OIL LTD. 8.90%, 08/15/08 (a)(b)(d) 34,082 35,377 PREMCOR REFINING GROUP, INC. 9.50%, 02/01/13 (b)(d) 47,910 51,137 TRANSOCEAN, INC. 5.55%, 06/05/07 (a)(b)(d) 57,000 57,050 ------------ 276,238 TECHNOLOGY 0.2% SEAGATE TECHNOLOGY HDD HOLDINGS 6.19%, 07/01/07 (a)(d) 15,000 15,131
3 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) XEROX CAPITAL TRUST I 8.00%, 02/01/27 (b) 14,877 15,230 ----------- 30,361 TRANSPORTATION 0.8% ERAC USA FINANCE CO. 5.61%, 07/30/07 (a)(c)(d) 9,510 9,539 5.61%, 08/28/07 (a)(c)(d) 13,000 13,039 FEDEX CORP. 5.44%, 08/08/07 (a)(d) 35,000 35,014 7.63%, 01/05/14 (b) 5,506 5,747 YELLOW ROADWAY CORP. 6.74%, 08/15/07 (a)(b)(d) 42,000 42,066 ----------- 105,405 ----------- 2,013,836 UTILITIES 2.1% - -------------------------------------------------------------------------------- ELECTRIC 1.9% ATMOS ENERGY CORP. 5.73%, 07/15/07 (a)(b)(d) 15,000 15,003 DOMINION RESOURCES, INC. 5.54%, 08/14/07 (a)(b)(d) 20,000 20,026 5.65%, 06/28/07 (a)(b)(d) 29,600 29,611 ENTERGY GULF STATES, INC. 5.76%, 06/01/07 (a)(b)(d) 34,275 34,270 6.09%, 06/08/07 (a)(b)(c)(d) 7,000 7,021 NEVADA POWER CO. 9.00%, 08/15/13 (b) 2,060 2,224 SOUTHERN CALIFORNIA EDISON 5.42%, 06/13/07 (a)(b)(d) 51,470 51,487 TECO ENERGY, INC. 7.36%, 08/01/07 (a)(b)(d) 20,965 21,389 TXU ENERGY CO., LLC 5.85%, 06/16/07 (a)(b)(c)(d) 65,000 65,037 ----------- 246,068 NATURAL GAS 0.2% ENTERPRISE PRODUCTS OPERATING LP 4.00%, 10/15/07 (b)(d) 10,746 10,690 WILLIAMS COS., INC. 7.35%, 07/02/07 (a)(c)(d) 18,000 18,765 ----------- 29,455 ----------- 275,523 ----------- TOTAL CORPORATE BONDS (COST $5,985,952) 5,993,310 ----------- ASSET-BACKED OBLIGATIONS 10.9% OF NET ASSETS ABSC NIMS TRUST Series 2004-HE8 Class A1 5.00%, 12/25/34 (c)(d) 1,479 1,461 Series 2004-HE7 Class A1 5.00%, 10/27/34 (c)(d) 1,158 1,147 Series 2004-HE5 Class A1 5.00%, 08/27/34 (c)(d) 482 479 Series 2004-HE5 Class A2 7.00%, 08/27/34 (c)(d) 2,000 2,005 ACE SECURITIES CORP. Series 2004-FM1 Class M1 6.22%, 06/25/07 (a)(b)(d) 9,166 9,176 Series 2002-HE1 Class M2 7.12%, 06/25/07 (a)(b)(d) 715 609 Series 2003-HS1 Class M3 7.82%, 06/25/07 (a)(b)(d) 4,081 4,143 Series 2002-HE3 Class M2 8.62%, 06/25/07 (a)(b)(d) 3,126 2,680 AEGIS ASSET BACKED SECURITIES TRUST Series 2004-5N 5.00%, 12/25/34 (c)(d) 1,570 1,066 AMERIQUEST MORTGAGE SECURITIES, INC. Series 2004-R10 Class M1 6.02%, 06/25/07 (a)(b)(d) 10,550 10,593 Series 2004-6 Class M2 7.17%, 06/25/07 (a)(b)(d) 5,000 5,089 Series 2003-AR2 Class M2 7.90%, 06/25/07 (a)(b)(d) 1,975 1,978 Series 2003-AR3 Class M2 8.40%, 06/25/07 (a)(b)(d) 3,420 3,428 Series 2003-IA1 Class M2 5.51%, 06/20/07 (a)(b)(d) 1,948 2,018 AMORTIZING RESIDENTIAL COLLATERAL TRUST Series 2002-BC1 Class M2 6.42%, 06/25/07 (a)(b)(d) 1,306 1,240 Series 2002-BC1 Class B 7.37%, 06/25/07 (a)(b) 32 21 Series 2002-BC9 Class M2 8.70%, 06/25/07 (a)(b)(d) 6,672 6,690 ARGENT SECURITIES, INC. Series 2003-W9 Class M2 7.04%, 06/25/07 (a)(b)(d) 19,695 19,821 Series 2003-W7 Class M2 7.07%, 06/25/07 (a)(b)(d) 15,750 15,824 ARIA CDO I (JERSEY) LTD. Series 1A-3 Class B1U5 6.44%, 10/07/07 (a)(b)(c)(d) 53,600 53,613 ASSET BACKED FUNDING CERTIFICATES Series 2004-OPT2 Class M1 5.87%, 06/25/07 (a)(b)(d) 16,969 17,005 Series 2003-WMC1 Class M1 5.97%, 06/25/07 (a)(b)(d) 1,625 1,627 Series 2003-AHL1 Class M1 6.17%, 06/25/07 (a)(b)(d) 7,500 7,540 Series 2004-OPT2 Class M2 6.32%, 06/25/07 (a)(b)(d) 11,676 11,704 Series 2004-HE1 Class M2 6.47%, 06/25/07 (a)(b)(d) 13,000 13,068 Series 2003-OPT1 Class M2 6.87%, 06/25/07 (a)(b)(d) 2,532 2,543 Series 2004-HE1 M8 8.82%, 06/25/07 (a)(b)(d) 2,794 2,794 ASSET BACKED SECURITIES CORP. HOME EQUITY Series 2003-HE7 Class M1 5.97%, 06/15/07 (a)(b)(d) 6,606 6,634
4 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) Series 2001-HE3 Class M2 6.90%, 06/15/07 (a)(b)(d) 190 190 Series 2002-H3 Class M2 7.56%, 06/15/07 (a)(b)(d) 3,963 3,968 Series 2003-HE1 Class M2 7.67%, 06/15/07 (a)(b)(d) 14,885 14,914 Series 2003-HE2 Class M2 8.17%, 06/15/07 (a)(b)(d) 1,064 1,066 Series 2003-HE2 Class M3 8.70%, 06/15/07 (a)(b)(d) 1,233 1,235 BEAR STEARNS ASSET BACKED SECURITIES, INC. Series 2004-HE6 Class M1 5.89%, 06/25/07 (a)(b)(d) 4,677 4,690 Series 2003-2 Class M2 7.32%, 06/25/07 (a)(b)(d) 3,820 3,882 CAPITAL ONE MULTI-ASSET EXECUTION TRUST Series 2003-B6 Class B6 5.85%, 06/15/07 (a)(b)(d) 20,000 20,126 Series 2003-C1 Class C1 7.87%, 06/15/07 (a)(b)(d) 3,500 3,580 CARSS FINANCE LTD. PARTNERSHIP Series 2004-A Class B2 6.27%, 06/15/07 (a)(b)(c)(d) 355 357 CDC MORTGAGE CAPITAL TRUST Series 2003-HE4 Class M1 5.97%, 06/25/07 (a)(b)(d) 6,000 6,017 Series 2003-HE1 Class M1 6.67%, 06/25/07 (a)(b)(d) 15,995 16,016 Series 2003-HE4 Class M2 6.97%, 06/25/07 (a)(b)(d) 4,000 4,033 Series 2003-HE2 Class M2 7.22%, 06/25/07 (a)(b)(d) 2,216 2,220 CENTEX HOME EQUITY Series 2003-B Class M1 6.02%, 06/25/07 (a)(b)(d) 19,000 19,019 Series 2003-B Class M2 7.02%, 06/25/07 (a)(b)(d) 3,750 3,756 CHASE FUNDING MORTGAGE LOAN ASSET-BACKED Series 2001-3 Class 2M2 6.79%, 06/25/07 (a)(b)(d) 102 102 CHEC LOAN TRUST Series 2004-2 Class M1 5.96%, 06/25/07 (a)(b)(d) 8,750 8,781 CIT MARINE TRUST Series 1999-A Class C1 6.25%, 11/15/19 (b)(d)(e) 1,491 1,492 COUNTRYWIDE ASSET-BACKED CERTIFICATES Series 2005-2N Class N 4.50%, 08/25/36 (c)(d) 100 94 Series 2004-14N Class N 5.00%, 06/25/36 (c)(d) 369 363 Series 2004-10 Class MV5 6.43%, 03/24/08 (a)(b)(d) 1,000 1,006 Series 2003-2 Class M2 6.97%, 06/26/07 (a)(b)(d) 108 108 Series 2004-6 Class M2 5.97%, 06/25/07 (a)(b)(d) 15,000 15,102 Series 2002-6 Class M1 6.42%, 06/25/07 (a)(b)(d) 843 840 Series 2002-6 Class M2 7.42%, 06/25/07 (a)(b)(d) 1,104 1,104 DISTRIBUTION FINANCIAL SERVICES Series 2001-1 Class D 7.73%, 11/15/22 (b)(d) 8,250 7,749 FINANCE AMERICA MORTGAGE LOAN Series 2004-3 Class M1 5.90%, 06/25/07 (a)(b)(d) 11,610 11,642 Series 2004-1 Class M4 6.17%, 06/25/07 (a)(b)(d) 4,000 4,008 Series 2004-2 Class M6 6.72%, 06/25/07 (a)(b)(d) 3,000 3,016 FIRST ALLIANCE MORTGAGE LOAN TRUST Series 1998-3 Class A4 5.82%, 06/20/07 (a)(b)(d) 109 109 FIRST FRANKLIN MORTGAGE LOAN Series 2003-FF3 Class M4 10.20%, 06/25/07 (a)(b)(d) 268 9 FREMONT HOME LOAN TRUST Series 2003-B Class M1 6.02%, 06/25/07 (a)(b)(d) 20,000 20,029 Series 2003-B Class M2 6.94%, 06/25/07 (a)(b)(d) 5,601 5,611 Series 2004-A Class M2 7.05%, 06/25/07 (a)(b)(d) 853 854 Series 2003-A Class M2 7.05%, 06/25/07 (a)(b)(d) 2,832 2,832 GALENA CDO I (CAYMAN NO. 1) LTD. Series I-A Class B1U7 6.23%, 07/11/07 (a)(d) 12,000 12,001 GSAMP TRUST Series 2005-HE2 Class N 5.00%, 03/25/35 (c)(d) 935 914 HFC HOME EQUITY LOAN ASSET BACKED CERTIFICATES Series 2006-4 Class A1F 5.79%, 10/02/07 (a)(b)(d) 24,071 24,031 HOME EQUITY ASSET TRUST Series 2004-8 Class M1 5.90%, 06/25/07 (a)(b)(d) 22,000 22,128 Series 2003-3 Class M2 7.19%, 06/25/07 (a)(b)(d) 1,619 1,559 IMPAC CMB TRUST Series 2003-10 Class 1A1 6.02%, 06/25/07 (a)(b)(d) 1,523 1,525 INDYMAC HOME EQUITY LOAN TRUST Series 2004-B Class M4 6.47%, 06/25/07 (a)(b)(d) 14,500 14,630
5 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) IRWIN HOME EQUITY Series 2003-1 Class M2 7.32%, 06/25/07 (a)(b) 3,936 3,963 LONG BEACH MORTGAGE LOAN TRUST Series 2003-2 Class M1 6.55%, 06/25/07 (a)(b) 7,402 7,411 Series 2004-1 Class M6 6.72%, 06/25/07 (a)(b) 8,000 8,048 Series 2003-4 Class M2 7.07%, 06/25/07 (a)(b)(d) 12,254 12,344 Series 2003-4 Class M3 7.47%, 06/25/07 (a)(b) 83 84 Series 2003-2 Class M3 8.70%, 06/25/07 (a)(b) 439 425 MASTER ASSET BACKED SECURITIES Series 2003-WMC2 Class M1 6.02%, 06/25/07 (a)(b) 701 702 Series 2003-OPT1 Class M2 7.17%, 06/25/07 (a)(b) 12,500 12,532 Series 2002-OPT1 Class M2 8.25%, 06/25/07 (a)(b) 8,874 8,895 MBNA MASTER CREDIT CARD TRUST Series 2003-3 Class B 5.70%, 06/15/07 (a)(b) 14,662 14,733 Series 2000-H Class B 5.92%, 06/15/07 (a)(b)(d) 14,500 14,668 Series 2003-3 Class C 6.67%, 06/15/07 (a)(b)(d) 11,000 11,109 MERRILL LYNCH MORTGAGE INVESTORS, INC. Series 2005-WM1N Class N1 5.00%, 09/25/35 (c)(d) 94 88 Series 2003-WWC3 Class M3 7.80%, 06/25/07 (a)(b) 1,021 1,023 Series 2003-WMC3 Class M4 9.32%, 06/25/07 (a)(b) 3,213 3,219 MORGAN STANLEY ABS CAPITAL I Series 2004-HE8 Class M1 5.96%, 06/25/07 (a)(b)(d) 19,810 19,930 Series 2003-HE3 Class M1 6.00%, 06/25/07 (a)(b)(d) 9,403 9,432 Series 2003-NC6 Class M1 6.12%, 06/25/07 (a)(b)(d) 15,223 15,243 Series 2004-HE9 Class M4 6.32%, 06/25/07 (a)(b)(d) 15,000 15,053 Series 2004-HE1 Class B2 7.22%, 06/25/07 (a)(b)(d) 6,000 5,928 NEW CENTURY HOME EQUITY LOAN TRUST Series 2004-3 Class M1 5.94%, 06/25/07 (a)(b)(d) 10,523 10,583 Series 2003-3 Class M3 7.70%, 06/25/07 (a)(b) 2,140 2,144 NOVASTAR HOME EQUITY LOAN Series 2005-1 Class M4 6.00%, 06/25/07 (a)(b)(d) 8,000 8,035 Series 2003-4 Class M1 6.03%, 06/25/07 (a)(b)(d) 20,000 20,009 Series 2003-3 Class M1 6.07%, 06/25/07 (a)(b)(d) 23,000 23,095 Series 2003-2 Class M1 6.07%, 06/25/07 (a)(b)(d) 15,511 15,566 Series 2003-3 Class M2 6.97%, 06/25/07 (a)(b)(d) 5,003 5,055 Series 2004-4 Class B1 7.02%, 06/25/07 (a)(b)(d) 10,000 9,765 Series 2003-1 Class M2 7.32%, 06/25/07 (a)(b)(d) 3,104 3,126 OCWEN ADVANCE RECEIVABLES BACKED NOTES Series 2006-1A 5.34%, 11/24/15 (b)(c)(d) 30,000 29,620 ODIN CDO I (CAYMAN ISLANDS) LTD. Series 1A Class B1U5 6.13%, 10/11/07 (a)(c)(d) 20,000 19,962 OPTION ONE MORTGAGE LOAN TRUST Series 2004-2 Class M1 5.85%, 06/25/07 (a)(b) 7,000 7,021 Series 2003-2 Class M1 5.97%, 06/25/07 (a)(b)(d) 7,467 7,479 Series 2003-1 Class M1 6.22%, 06/25/07 (a)(b)(d) 7,565 7,573 Series 2004-1 Class M2 6.42%, 06/25/07 (a)(b) 3,800 3,820 Series 2004-1 Class M3 6.67%, 06/25/07 (a)(b) 3,723 3,738 Series 2003-1 Class M2 7.27%, 06/25/07 (a)(b) 93 93 Series 2002-6 Class M2 7.87%, 06/25/07 (a)(b) 40 40 OPTION ONE MORTGAGE SECURITIES CORP NIM TRUST Series 2005-3A Class N1 5.44%, 08/26/35 (c)(d) 3,084 2,776 OVERTURE CDO (JERSEY) LTD. Series IA Class B1 6.46%, 07/09/07 (a)(b)(c) 1,700 1,697 PARK PLACE SECURITIES NIM TRUST Series 2004-WHQ2 Class B 5.00%, 02/25/35 (c) 560 547 PARK PLACE SECURITIES, INC. Series 2004-MHQ1 Class M1 6.02%, 06/25/07 (a)(b)(d) 15,000 15,075 PINNACLE CAPITAL ASSET TRUST Series 2006-A Class B 5.51%, 09/25/09 (b)(c)(d) 21,000 20,971 RESIDENTIAL ASSET SECURITIES CORP. Series 2003-KS1 Class A2 6.06%, 06/25/07 (a)(b) 13 13 Series 2004-KS2 Class M22 6.32%, 06/25/07 (a)(b)(d) 5,424 5,432 Series 2003-KS6 Class M2 7.57%, 06/25/07 (a)(b)(d) 1,380 1,362 SAIL NET INTEREST MARGIN NOTES Series 2005-3A Class A 4.75%, 04/27/35 (c)(d) 252 251 Series 2003-12A Class A 7.35%, 11/27/33 (c) 22 --
6 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SAXON ASSET SECURITIES TRUST Series 2004-1 Class M2 6.45%, 06/25/07 (a)(b)(d) 12,750 12,770 SLM STUDENT LOAN TRUST Series 2007-2 Class A2 5.36%, 08/04/11 (a)(b)(d) 345,000 345,201 Series 2005-5 Class A2 5.35%, 07/25/07 (a)(b)(d) 157,250 156,677 SPECIALTY UNDERWRITING & RESIDENTIAL FINANCE Series 2004-BC1 Class M1 5.83%, 06/25/07 (a)(b)(d) 8,949 8,975 STRUCTURED ASSET INVESTMENT LOAN TRUST Series 2003-BC7 Class M2 7.07%, 06/25/07 (a)(b)(d) 6,690 6,720 SUPERIOR WHOLESALE INVENTORY FINANCING TRUST Series 2007-AE1 Class B 5.62%, 01/06/10 (a)(b)(d)(e) 10,000 10,003 USXL FUNDING LLC Series 2006-1A Class A 5.38%, 04/15/14 (b)(c)(d)(e) 38,272 38,157 WFS FINANCIAL OWNER TRUST Series 2004-1 Class C 2.49%, 08/22/11 (b) 1,247 1,234 TOTAL ASSET-BACKED OBLIGATIONS (COST $1,444,182) 1,442,119 ----------- MORTGAGE-BACKED SECURITIES 46.5% OF NET ASSETS COLLATERALIZED MORTGAGE OBLIGATIONS 38.0% - -------------------------------------------------------------------------------- ABN AMRO MORTGAGE CORP. Series 2003-9 Class A2 4.50%, 08/25/18 (b)(d) 4,552 4,449 Series 2003-7 Class A2 5.00%, 07/25/18 (b)(d) 1,178 1,162 ADJUSTABLE RATE MORTGAGE TRUST Series 2007-1 Class 4A1 5.96%, 06/01/07 (a)(b)(d) 58,821 58,806 AMERICAN HOME MORTGAGE INVESTMENT TRUST Series 2005-3 Class 2A3 4.99%, 07/20/10 (a)(b)(d) 25,000 24,586 Series 2007-A Class 13A1 6.10%, 07/20/10 (a)(b)(c)(d) 67,989 69,111 BANC OF AMERICA ALTERNATIVE LOAN TRUST Series 2004-1 Class 4A1 4.75%, 02/25/19 (b) 91 89 Series 2005-5 Class 3CB1 6.00%, 06/25/35 (b)(d) 15,511 15,520 BANC OF AMERICA FUNDING CORP. Series 2004-3 Class 2A2 5.00%, 09/25/19 (b) 138 134 Series 2006-A Class 3A1 5.90%, 06/20/07 (a)(b)(d) 76,955 77,446 BANC OF AMERICA MORTGAGE SECURITIES, INC. Series 2005-E Class 3A1 5.21%, 10/10/09 (a)(b)(d) 9,402 9,273 Series 2004-6 Class 2A7 5.50%, 07/25/34 (b)(d) 2,168 2,129 Series 2006-B Class 3A1 6.17%, 06/01/07 (a)(b)(d) 118,208 118,630 BEAR STEARNS ADJUSTABLE RATE MORTGAGE TRUST Series 2005-1 Class 3A1 5.20%, 08/23/09 (a)(b)(d) 12,682 12,536 CENDANT MORTGAGE CORP. Series 2003-9 Class 1A5 5.25%, 11/25/33 (b)(d) 14,889 14,727 CHASE MORTGAGE FINANCE CORP. Series 2007-A1 Class 10A1 4.91%, 06/01/07 (a)(d) 93,016 91,214 Series 2003-S14 2A2 5.00%, 01/25/34 (b)(d) 12,757 12,574 Series 2006-A1 Class 2A1 6.09%, 06/01/07 (a)(b)(d) 7,919 7,902 CITIGROUP MORTGAGE LOAN TRUST, INC. Series 2007-AR4 Class 2A3A 5.73%, 01/28/10 (a)(b)(d) 52,616 52,261 Series 2007-3 Class A1 6.00%, 02/25/36 (b)(d) 162,600 161,608 Series 2006-AR5 Class 2A4A 6.46%, 03/31/10 (a)(b)(d) 9,452 9,553 CITIMORTGAGE ALTERNATIVE LOAN TRUST Series 2005-A1 Class 2A1 5.00%, 07/25/20 (b) 242 237 Series 2007-A3 Class1A7 5.75%, 03/25/37 (b)(d) 97,539 97,059 Series 2006-A7 Class 1A12 6.00%, 12/25/36 (b)(d) 37,664 37,763 Series 2007-A2 Class 1A5 6.00%, 02/25/37 (b)(d) 177,027 177,078 COUNTRYWIDE ALTERNATIVE LOAN TRUST Series 2004-30CB Class 1A2 4.25%, 02/25/35 (b)(d) 3,803 3,731 Series 2005-1CB Class 1A1 5.00%, 03/25/35 (b)(d) 11,998 11,736 Series 2004-J7 Class 1A6 5.01%, 12/01/08 (b)(d) 12,204 11,939 Series 2005-21CB Class A3 5.25%, 06/25/35 (b)(d) 55,350 54,426 Series 2004-30CB Class 1A15 5.50%, 08/25/16 (b)(d) 29,713 29,687 Series 2005-75CB Class A3 5.50%, 01/25/36 (b)(d) 3,827 3,804 Series 2005-86CB Class A4 5.50%, 02/25/36 (b)(d) 62,735 62,179 Series 2005-51 Class 3AB1 5.53%, 06/20/07 (a)(b)(d) 2,172 2,174 Series 2007-2CB Class 1A1 5.75%, 03/25/37 (b)(d) 28,085 28,052
7 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) Series 2007-2CB Class 2A13 5.75%, 03/25/37 (b)(d) 32,421 32,423 Series 2007-HY3 Class 1A1 5.99%, 06/01/07 (a)(b) 39,148 39,493 Series 2006-19CB Class A7 6.00%, 08/25/36 (b)(d) 37,143 37,213 Series 2006-J6 Class A3 6.00%, 09/25/36 (b)(d) 46,633 46,765 Series 2006-27CB Class A4 6.00%, 11/25/36 (b)(d) 34,891 34,911 Series 2006-32CB Class A10 6.00%, 11/25/36 (b)(d) 51,625 51,731 Series 2006-40T1 Class 1A2 6.00%, 01/25/37 (b)(d) 44,954 45,152 Series 2006-41CB Class 1A3 6.00%, 01/25/37 (b)(d) 70,158 70,552 Series 2006-41 Class 2A14 6.00%, 01/25/37 (b)(d) 50,946 51,027 Series 2005-J1 Class 3A1 6.50%, 08/25/32 (b)(d) 8,890 8,972 Series 2006-11CB Class 3A1 6.50%, 05/25/36 (b)(d) 22,297 22,474 COUNTRYWIDE HOME LOAN Series 2005-HYB2 Class 1A4 4.50%, 04/13/08 (a)(b)(d) 1,670 1,669 Series 2004-4 Class A3 4.50%, 05/25/34 (b)(d) 14,095 13,955 Series 2006-HYB3 Class 2AB3 5.63%, 02/10/11 (a)(b)(d) 41,457 41,371 Series 2006-20 Class 1A36 5.75%, 02/25/37 (b)(d) 82,103 81,781 Series 2007-8 Class 1A16 6.00%, 09/25/24 (b) 20,453 20,393 Series 2006-15 Class A1 6.25%, 10/25/36 (b)(d) 10,585 10,628 CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP. Series 2003-27 Class 5A2 5.25%, 01/25/18 (b) 14,864 14,604 Series 2003-8 Class 3A3 5.50%, 04/25/33 (b)(d) 8,468 8,399 Series 2005-12 Class 6A1 6.00%, 01/25/36 (b) 358 355 Series 2003-29 Class 1A1 6.50%, 12/25/33 (b)(d) 3,801 3,803 Series 2002-AR28 Class 1A2 7.34%, 06/25/07 (a)(b)(d) 278 274 CREDIT SUISSE MORTGAGE CAPITAL CERTIFICATES Series 2007-3 Class AP 0.0, 04/25/37 (b) 1,951 1,226 Series 2007-2 Class 2A1 5.00%, 03/25/37 (b)(d) 51,592 50,939 Series 2007-3 Class 3A1 5.00%, 04/25/37 (b) 18,431 18,102 Series 2007-3 Class 4A1 5.00%, 04/25/37 (b)(d) 59,046 58,062 Series 2006-6 Class 1A12 6.00%, 07/25/36 (b)(d) 19,168 19,203 Series 2006-6 Class 1A8 6.00%, 07/25/36 (b)(d) 52,455 52,678 Series 2006-2 Class 3A1 6.50%, 03/25/36 (b)(d) 8,869 8,961 DEUTSCHE ALTERNATIVE ASSET SECURITIES, INC. Series 2006-AR5 Class 22A 5.50%, 10/25/21 (b)(d) 19,291 19,231 Series 2005-6 Class 1A3 5.50%, 12/25/35 (b)(d) 32,828 32,677 Series 2006-AR5 Class 23A 6.00%, 10/25/21 (b)(d) 36,398 36,661 DEUTSCHE MORTGAGE SECURITIES, INC. Series 2004-3 Class 1A7 3.75%, 03/25/34 (b)(d) 5,943 5,854 FIFTH THIRD MORTGAGE LOAN TRUST Series 2002-FTB1 Class 2A1 5.54%, 06/19/07 (a)(b)(d) 1,409 1,407 Series 2002-FTB1 6.40%, 08/19/07 (a)(b)(d) 592 595 FIRST HORIZON ALTERNATIVE MORTGAGE SECURITIES Series 2006-FA1 Class 1A3 5.75%, 04/25/36 (b) 39,886 39,676 FIRST HORIZON ASSET SECURITIES, INC. Series 2004-3 Class 1A1 5.25%, 06/25/34 (b)(d) 6,192 5,912 GMAC MORTGAGE CORP. LOAN Series 2003-J7 Class A2 4.50%, 11/25/33 (b)(d) 12,055 11,772 Series 2003-AR1 Class A5 4.60%, 10/01/09 (a)(b)(d) 19,676 19,131 Series 2004-J3 Class A1 5.25%, 07/25/34 (b)(d) 11,295 11,139 GSR MORTGAGE LOAN TRUST Series 2004-5 Class 3A2 4.70%, 06/01/07 (a)(b)(d) 21,888 21,508 HARBORVIEW MORTGAGE LOAN TRUST Series 2006-6 Class X1 0.27%, 03/07/08 (a)(b)(d) 48,947 190 INDYMAC INDEX MORTGAGE LOAN TRUST Series 2004-AR1 Class AX1 0.80%, 04/25/34 (b)(d) 74,379 301 Series 2007-AR1 Class 2A1 5.72%, 06/01/07 (a)(b)(d) 56,114 55,815 Series 2007-AR7 Class 2A1 5.82%, 06/01/07 (a)(b) 59,754 59,636 Series 2006-AR11 Class 3A1 5.85%, 06/25/07 (a)(b) 4,742 4,749 Series 2007-AR1 Class 3A1 6.01%, 06/01/07 (a)(b) 128,567 128,439 Series 2007-AR5 Class 2A1 6.13%, 06/01/07 (a)(b)(d) 123,017 123,452 JP MORGAN ALTERNATIVE LOAN TRUST Series 2006-A6 Class 2A1 5.50%, 12/31/09 (a)(b)(d) 49,600 48,928
8 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) Series 2006-A5 Class 2A1 5.55%, 12/02/09 (a)(b)(d) 50,620 50,127 Series 2007-A1 Class 2A1 5.95%, 06/01/07 (a)(b)(d) 110,549 110,607 Series 2006-A4 Class A1 5.95%, 09/14/09 (a)(b)(d) 122,444 122,883 Series 2006-S1 Class 1A16 6.00%, 03/25/36 (b)(d) 23,964 24,087 Series 2006-A1 Class 4A1 6.05%, 06/25/07 (a)(b)(d) 20,393 20,460 JP MORGAN MORTGAGE TRUST Series 2004-A3 Class SF3 4.59%, 06/01/07 (a)(b)(d) 79,265 77,198 Series 2007-A1 Class 6A1 4.78%, 06/01/07 (a)(b)(d) 277,107 271,738 Series 2006-S2 Class 2A1 5.00%, 07/25/36 (b)(d) 9,701 9,559 Series 2005-A8 Class 6A2 5.13%, 06/01/07 (a)(b)(d) 9,859 9,786 Series 2006-A7 Class 2A4R 5.48%, 06/01/07 (a)(b)(d) 70,364 69,957 Series 2007-A4 Class 1A1 5.50%, 06/25/37 (a)(b) 18,899 18,763 Series 2007-A2 Class 3A3 5.87%, 06/01/07 (a)(b) 6,165 6,210 Series 2006-S3 Class 2A6 6.00%, 08/25/21 (b)(d) 17,338 17,453 Series 2006-S2 Class 3A7 6.25%, 07/25/36 (b) 8,211 8,284 LEHMAN XS TRUST Series 2007-5H Class 3A4 6.45%, 11/08/09 (a)(b) 25,000 24,994 MASTR ADJUSTABLE RATE MORTGAGE Series 2004-13 Class 2A2 3.82%, 06/01/07 (a)(b)(d) 14,537 14,401 Sereis 2005-1 Class 5A1 4.95%, 06/01/07 (a)(b) 2,101 2,109 Series 2007-A2 class 1A5 6.00%, 06/01/07 (a)(b) 136,226 136,438 MASTR ALTERNATIVE LOANS TRUST Series 2003-5 Class 1A1 6.50%, 07/25/33 (b) 335 335 MASTR ASSET SECURITIZATION TRUST Series 2006-1 Class 4A1 5.75%, 02/25/21 (b)(d) 24,247 24,287 MERRILL LYNCH ALTERNATIVE NOTE ASSET Series 2007-AF1 Class AV1 5.69%, 11/12/09 (a)(b) 72,091 71,886 Series 2007-AF1 Class 1AF6 6.00%, 05/30/37 (b) 24,133 24,167 Series 2007-AF1 Class 2AF1 6.50%, 05/25/22 (b) 14,700 14,907 MERRILL LYNCH MORTGAGE INVESTORS, INC. Series 2003-A2 Class 2A4 5.05%, 02/16/10 (a)(b) 14,499 14,343 MORGAN STANLEY MORTGAGE LOAN TRUST Series 2004-8AR Class 4A1 5.35%, 06/25/07 (a)(b)(d) 4,238 4,234 Series 2007-3XS Class 1A2 5.62%, 06/25/07 (a)(b)(d) 34,799 34,694 Series 2007-8XS Class A1 5.75%, 11/18/10 (a)(b) 67,086 66,861 Series 2005-2AR Class B1 5.82%, 06/25/07 (a)(b)(d) 28,043 28,181 Series 2005-9AR Class 2A 5.86%, 06/25/07 (a)(b) 58,738 58,800 Series 2006-7 Class 2A 6.00%, 06/25/21 (b)(d) 24,622 24,785 Series 2006-2 Class 4A 6.00%, 02/25/36 (b)(d) 4,686 4,693 Series 2004-9 Class 2A 6.34%, 06/01/07 (a)(b) 8,999 9,045 Series 2006-2 Class 6A 6.50%, 02/25/36 (b)(d) 13,179 13,338 PRIME MORTGAGE TRUST Series 2005-3 Class A4 4.75%, 08/25/20 (b) 556 541 RESIDENTIAL ACCREDIT LOANS, INC. Series 2004-QA3 Class NB21 4.69%, 08/25/09 (a)(b)(d) 4,512 4,454 Series 2004-QS16 Class 2A1 5.00%, 12/25/19 (b)(d) 27,314 26,499 Series 2002-QS18 Class A1 5.50%, 12/25/17 (b)(d) 52,974 52,378 Series 2005-QS7 Class A1 5.50%, 06/25/35 (b) 13,848 13,744 Series 2006-QA1 Class A21 5.98%, 06/01/07 (a)(b) 69,525 69,842 Series 2001-QS19 Class A2 6.00%, 12/25/16 (b)(d) 11,100 11,025 Series 2006-QS3 Class 1A10 6.00%, 03/25/36 (b)(d) 8,781 8,834 Series 2006-QS7 Class A1 6.00%, 06/25/36 (b) 25,000 25,041 Series 2006-QS9 Class 1A3 6.00%, 07/25/36 (b) 25,509 25,508 Series 2006-QS8 Class A1 6.00%, 08/25/36 (b) 30,000 30,076 RESIDENTIAL ASSET SECURITIZATION TRUST Series 2003-A11 Class A8 4.25%, 11/25/33 (b) 26,625 26,162 Series 2005-A8CB Class A11 6.00%, 07/25/35 (b) 2,706 2,707 Series 2006-A1 Class 3A2 6.00%, 04/25/36 (b)(d) 60,328 60,049 RESIDENTIAL FUNDING MORTGAGE SECURITIES I Series 2005-S9 Class A5 5.75%, 12/25/35 (b) 8,205 8,213 Series 2006-SA4 Class 3A1 5.85%, 01/27/10 (a)(b)(d) 22,888 22,745
9 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SEQUOIA MORTGAGE TRUST Series 2003-8 Class X1 0.80%, 06/01/07 (a)(b)(d) 66,388 137 Series 2007-1 Class 2A1 5.83%, 06/20/07 (a)(b) 77,905 77,812 Series 2007-1 Class 4A1 5.84%, 06/20/07 (a)(b) 24,403 24,282 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN Series 2007-3 Class 2A1 5.76%, 06/01/07 (a)(b) 69,920 69,781 STRUCTURED ASSET SECURITIES CORP. Series 2005-11H Class A2 5.00%, 06/25/35 (b) 41,139 39,856 Series 2005-10 Class 5A7 5.25%, 12/25/34 (b) 10,189 10,071 Series 2006-RF3 Class 4A 5.58%, 06/01/07 (a)(b)(c) 10,525 10,479 TBW MORTGAGE BACKED PASS THROUGH CERTIFICATES Series 2006-1 Class 3A1 6.00%, 04/25/36 (b)(d) 9,882 9,881 WASHINGTON MUTUAL ALTERNATIVE MORTGAGE PASS- THROUGH CERTIFICATES Series 2003-AR1 Class A6 4.48%, 02/25/08 (a)(b)(d) 1,354 1,346 Series 2007-1 Class 2A1 6.00%, 01/25/22 (b) 28,910 28,956 Series 2006-3 Class 3CB4 6.00%, 04/25/36 (b)(d) 34,591 34,649 Series 2005-7 Class 3CB 6.50%, 08/25/35 (b)(d) 10,220 10,330 WASHINGTON MUTUAL MSC MORTGAGE Series 2002-MS7 Class CB2 5.92%, 06/01/07 (a)(b) 4,076 4,072 WELLS FARGO MORTGAGE BACKED SECURITIES TRUST Series 2004-Z Class 2AIO 0.21%, 03/01/09 (a)(b)(d) 66,458 228 Series 2003-0 Class 2A1 4.62%, 04/25/13 (a)(b)(d) 19,437 18,721 Series 2004-K Class 2A5 4.73%, 08/25/11 (a)(b)(d) 12,018 11,807 Series 2003-N Class 2A2 4.75%, 05/25/13 (a)(b)(d) 10,165 9,826 Series 2006-1 Class A3 5.00%, 03/25/21 (b) 449 436 Series 2006-20 Class A1 5.50%, 12/25/21 (b)(d) 43,470 43,097 Series 2006-AR1 Class 2A4 5.56%, 03/17/12 (a)(b)(d) 52,453 51,486 Series 2006-AR12 Class 1A1 6.03%, 08/22/09 (a)(b) 38,635 38,757 Series 2006-AR14 Class 2A3 6.10%, 09/10/09 (a)(b) 34,196 34,496 ----------- 5,045,698 COMMERCIAL MORTGAGE BACKED SECURITIES 1.0% - -------------------------------------------------------------------------------- ACT DEPOSITOR CORP. Series 2005-RR Class A1FL 5.62%, 06/22/07 (a)(b)(d) 9,999 9,979 CROWN CASTLE TOWERS LLC Series 2005-1A Class B 4.88%, 06/15/35 (c)(d) 11,000 10,776 Series 2005-1A Class AFL 5.70%, 06/15/07 (a)(c)(d) 14,480 14,572 GLOBAL SIGNAL TRUST III Series 2004-2A Class C 4.70%, 12/15/14 (c)(d) 7,000 6,825 Series 2006-1 Class A1FL 5.54%, 06/15/07 (a)(c)(d) 44,000 44,042 WAMU COMMERCIAL MORTGAGE SECURITY Series 2007-SL2 Class A1 5.42%, 02/18/10 (a)(b)(c)(d) 44,889 44,524 ----------- 130,718 U.S. GOVERNMENT AGENCY MORTGAGES 7.5% - -------------------------------------------------------------------------------- FANNIE MAE 7.11%, 06/10/07 to 03/13/08(a)(d) 925 940 7.22%, 12/20/07 (a)(d) 136 137 7.38%, 03/10/08 (a)(d) 116 117 6.70%, 03/13/08 (a)(d) 102 104 7.30%, 03/13/08 (a) 434 440 3.82%, 04/01/08 (a) 1,205 1,202 6.28%, 09/08/10 (a)(d) 6,375 6,451 6.12%, 03/09/12 (a)(d) 4,210 4,245 6.50%, 07/01/14 to 09/01/19 7,841 8,026 6.50%, 09/01/16 to 04/01/18(d) 2,927 2,996 6.00%, 03/25/17 to 04/01/17(d) 19,386 19,558 3.75%, 12/25/17 2,462 2,341 5.00%, 06/25/18 (d) 15,510 1,701 6.00%, 01/01/22 to 03/01/27 101,011 101,569 4.00%, 11/25/22 to 09/25/31(d) 16,957 16,139 4.25%, 07/25/25 (d) 16,542 16,099 4.50%, 04/25/33 to 05/25/33 19,057 18,274 5.75%, 09/25/33 23,329 23,402 FANNIE MAE TBA 5.50%, 12/01/99 620,000 611,986 5.00%, 12/01/99 51,000 49,717 FREDDIE MAC 6.88%, 06/15/07 (a)(d) 516 520 6.00%, 05/01/08 to 01/01/22(d) 47,578 48,062 5.47%, 11/01/10 (a)(d) 18,731 18,821 5.50%, 08/01/11 to 06/01/21(d) 9,298 9,233 7.00%, 03/01/12 (d) 1,164 1,195 6.00%, 11/01/16 (a)(d) 6,561 6,637 9.30%, 11/15/20 (b)(d) 297 296 4.00%, 03/15/23 (b)(d) 30,575 28,680 7.34%, 10/25/25 (a)(d) 229 231 7.31%, 01/15/29 (a)(d) 498 504 6.00%, 11/15/36 (b) 1,174 1,178 ----------- 1,000,801 TOTAL MORTGAGE-BACKED SECURITIES (COST $6,203,156) 6,177,217 -----------
10 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) PREFERRED STOCK 1.1% OF NET ASSETS GENERAL MILLS, INC. (b)(c) 15,000 15,011 GEORGIA POWER CAPITAL TRUST V (b) 155,100 3,926 ING GROEP NV (b) 513,600 12,977 LEHMAN BROTHERS CR - BANK OF AMERICA, SERIES II (c)* 14,700 15,214 LEHMAN BROTHERS CR - BANK OF AMERICA, SERIES III (c)* 13,300 13,765 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. (b) 184,050 4,625 PINTO TOTTA INTERNATIONAL FINANCE (b)(c) 15,000 15,134 SOVEREIGN REAL ESTATE INVESTMENT TRUST (b)(c) 1,650,000 2,420 WOODBOURNE PASS-THROUGH TRUST (b)(c) 590,000 59,275 ----------- TOTAL PREFERRED STOCK (COST $142,692) 142,347 -----------
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS COMMERCIAL PAPER & OTHER OBLIGATIONS 1.2% - -------------------------------------------------------------------------------- CONOCOPHILLIPS 5.40%, 06/01/07 2,700 2,700 COX ENTERPRISES, INC. 5.57%, 08/15/07 25,000 25,000 VIACOM, INC. 5.44%, 06/06/07 46,720 46,684 5.45%, 06/01/07 33,100 33,100 5.50%, 06/01/07 48,085 48,085 ----------- 155,569 REPURCHASE AGREEMENT 0.0% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. dated 05/31/07, due 06/01/07 at 5.00%, with a maturity value of $493 (fully collateralized by Federal National Mortgage Assn. with a value of $506). 493 493 U.S. TREASURY OBLIGATIONS 0.1% - -------------------------------------------------------------------------------- U.S. TREASURY BILLS 4.69%, 08/30/07 6,000 5,931 4.86%, 07/19/07 1,500 1,490 4.89%, 07/26/07 2,500 2,482 4.92%, 06/14/07 1,000 998 4.92%, 06/21/07 1,000 997 4.94%, 07/12/07 2,000 1,989 5.04%, 07/05/07 1,000 996 ----------- 14,883 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $170,944) 170,945 -----------
END OF INVESTMENTS. At 05/31/07 the tax basis cost of the fund's investments was $13,946,950, and the unrealized appreciation and depreciation were $24,652 and ($45,664), respectively, with a net unrealized depreciation of ($21,012). SHORT SALES 3.8% OF NET ASSETS U.S. GOVERNMENT AGENCY MORTGAGES 3.8% - -------------------------------------------------------------------------------- FANNIE MAE TBA 5.00%, 12/01/99 250,000 243,711 6.00%, 12/01/99 259,500 259,216 ----------- TOTAL SHORT SALES (COST $507,183) 502,927 -----------
END OF SHORT SALE POSITIONS. In addition to the above, the fund held the following at 05/31/07. All numbers are x 1,000 except number of futures contracts.
NOTIONAL UNREALIZED AMOUNT GAINS/(LOSSES) (FOREIGN) (USD) SWAP AGREEMENTS 0.0% OF NET ASSETS INTEREST RATE SWAPS 0.0% - -------------------------------------------------------------------------------- BRITISH POUNDS 0.0% Receive variable rate payments of 3 month LIBOR, Pay fixed rate payments of 5.91%, expires 06/16/14, Lehman Brothers, Inc. 24,100 511 Receive variable rate payments of 3 month LIBOR, Pay fixed rate payments of 5.91%, expires 11/30/15, Lehman Brothers, Inc. 20,000 479 -------------- 990
11 SCHWAB YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
NOTIONAL UNREALIZED AMOUNT GAINS/(LOSSES) (FOREIGN) (USD) CREDIT DEFAULT SWAPS 0.0% - -------------------------------------------------------------------------------- ABITIBI-CONSOLIDATED, INC. Rate 0.70%, expires 03/20/08, Goldman Sachs Capital Markets, L.L.C. 10,000 (139) -------------- TOTAL UNREALIZED GAINS ON SWAP AGREEMENTS 851 --------------
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS FUTURES CONTRACTS 2 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (9,777) 1,992,522 3,088 30 YEARS, SHORT, U.S. TREASURY BOND expires 09/19/07 (90) 9,821 12 5 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (20,249) 2,114,755 2,496 ---------- 5,596
* Non-income producing security. (a) Variable-rate security. (b) Callable security. (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $2,032,936 or 15.3% of net assets. (d) All or a portion of this security is held as collateral for open futures contracts. (e) Credit-enhanced security. 12 SCHWAB INVESTMENTS SCHWAB GNMA FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 99.1% MORTGAGE-BACKED SECURITIES 33,921 33,585 0.1% ASSET-BACKED OBLIGATIONS 26 26 1.3% CORPORATE BONDS 438 440 10.9% SHORT-TERM INVESTMENTS 3,713 3,713 - -------------------------------------------------------------------------------- 111.4% TOTAL INVESTMENTS 38,098 37,764 (11.4)% OTHER ASSETS AND LIABILITIES (3,869) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 33,895
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) MORTGAGE-BACKED SECURITIES 99.1% OF NET ASSETS COLLATERALIZED MORTGAGE OBLIGATIONS 10.8% - -------------------------------------------------------------------------------- CITIGROUP MORTGAGE LOAN TRUST, INC. Series 2004-2 Class I01 0.13%, 06/25/07 (a)(b) 60 111 COUNTRYWIDE ALTERNATIVE LOAN TRUST Series 2005-23CB Class A15 5.50%, 07/25/35 (b) 1,256 1,234 CS FIRST BOSTON MORTGAGE SECURITIES CORP. Series 2001-26 Class 5A1 7.30%, 06/01/07 (a)(b) 205 204 Series 2002-10 Class 2A1 7.50%, 05/25/32 (b) 345 347 MASTR ASSET SECURITIZATION TRUST Series 2003-6 Class 9A1 4.25%, 07/25/33 (b) 621 599 STRUCTURED ASSET SECURITIES CORP. Series 2002-22H Class 1A 6.95%, 06/25/07 (a)(b) 36 36 TBW MORTGAGE BACKED PASS THROUGH CERTIFICATES Series 2006-2 Class CX 5.50%, 10/23/10 (b) 1,767 269 WACHOVIA ASSET SECURITIZATION, INC. Series 2002-1 Class 1A1 6.25%, 10/25/33 (b) 25 25 WASHINGTON MUTUAL, INC. Series 2003-S12 Class 1A3 4.50%, 11/25/18 (b) 436 422 Series 2003-S10 Class A5 5.00%, 10/25/18 (b) 432 427 ----------- 3,674 ----------- U.S. GOVERNMENT AGENCY MORTGAGES 88.3% - -------------------------------------------------------------------------------- GINNIE MAE 4.50%, 02/20/30 (b) 308 305 5.00%, 02/15/18 to 05/15/35(c) 4,619 4,460 5.00%, 01/16/32 to 01/15/35 2,274 2,198 5.50%, 11/15/18 to 05/20/35(c) 4,935 4,867 5.50%, 06/15/33 to 05/15/35 4,023 3,958 6.00%, 04/15/28 to 01/15/35(c) 5,969 6,009 6.00%, 08/15/34 to 02/15/37 2,870 2,888 6.50%, 05/15/24 to 10/15/32(c) 643 661 7.00%, 11/15/23 to 08/15/31(c) 736 771 7.50%, 07/15/23 to 03/15/28(c) 297 312 8.00%, 09/15/07 to 08/15/09(c) 60 60 8.50%, 08/15/27 to 12/15/29(c) 34 37 9.00%, 09/20/15 to 12/20/30(c) 1,323 1,419 GINNIE MAE TBA 5.50%, 12/15/99 2,000 1,966 ----------- 29,911 ----------- TOTAL MORTGAGE-BACKED SECURITIES (COST $33,921) 33,585 ----------- ASSET-BACKED OBLIGATIONS 0.1% OF NET ASSETS COUNTRYWIDE ASSET-BACKED CERTIFICATES Series 2003-2 Class M2 6.97%, 06/26/07 (a)(b)(c) 26 26 ----------- TOTAL ASSET-BACKED OBLIGATIONS (COST $26) 26 ----------- CORPORATE BONDS 1.3% OF NET ASSETS FINANCE 0.5% - -------------------------------------------------------------------------------- FINANCE COMPANY 0.5% GMAC LLC 4.38%, 12/10/07 162 161 6.00%, 11/15/07 7 7 ----------- 168 -----------
1 SCHWAB GNMA FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) INDUSTRIAL 0.8% - -------------------------------------------------------------------------------- CONSUMER CYCLICAL 0.8% FORD MOTOR CREDIT CO. 7.20%, 06/15/07 20 20 8.36%, 08/02/07 (a) 250 252 ----------- 272 ----------- TOTAL CORPORATE BONDS (COST $438) 440 ----------- SHORT-TERM INVESTMENTS 10.9% OF NET ASSETS COMMERCIAL PAPER & OTHER OBLIGATIONS 7.9% - -------------------------------------------------------------------------------- COUNTRYWIDE HOME LOANS 5.30%, 06/06/07 900 899 KINDER MORGAN ENERGY 5.34%, 06/05/07 900 899 VIACOM, INC. 5.45%, 06/01/07 900 900 ----------- 2,698 ----------- REPURCHASE AGREEMENT 2.9% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. dated 05/31/07, due 06/01/07 at 5.00%, with a maturity value of $990 (fully collateralized by Federal National Mortgage Assn. with a value of $1,044.) 990 990 U.S. TREASURY OBLIGATION 0.1% - -------------------------------------------------------------------------------- U.S. TREASURY BILL 4.69%, 08/30/07 25 25 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $3,713) 3,713 -----------
END OF INVESTMENTS. At 05/31/07 the tax basis cost of the fund's investments was $38,119, and the unrealized appreciation and depreciation were $126 and ($481), respectively, with a net unrealized depreciation of ($355). In addition to the above, the fund held the following at 05/31/07. All numbers are x1,000 except number of futures contracts.
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE LOSSES FUTURES CONTRACTS 10 YEARS, LONG, U.S. TREASURY NOTE expires 09/19/07 10 1,064 (3) 5 YEARS, LONG, U.S. TREASURY NOTE expires 09/28/07 28 2,924 (9) ---------- (12) ----------
(a) Variable-rate security. (b) Callable security. (c) All or a portion of this security is held as collateral for open futures contracts. 2 SCHWAB INVESTMENTS SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 30.0% LONG-TERM INVESTMENTS 339,884 339,594 68.8% SHORT-TERM INVESTMENTS 777,312 777,234 - -------------------------------------------------------------------------------- 98.8% TOTAL INVESTMENTS 1,117,196 1,116,828 1.2% OTHER ASSETS AND LIABILITIES 13,600 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 1,130,428
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 30.0% OF NET ASSETS CALIFORNIA 26.6% - ------------------------------------------------------------------------------------------------------------------------------------ ASSOCIATION OF BAY AREA GOVERNMENTS RB (Georgiana Bruce Kirby Preparatory School) Series 2007 3.85% 02/01/12 (b) 4,000 4,000 BAY AREA TOLL AUTHORITY San Francisco Bay Area Toll Bridge RB Series 2006F 5.00% 04/01/09 (e) 5,815 5,954 CALIFORNIA Economic Recovery Bonds Series 2004A 5.25% 07/01/13 (e) 35,000 37,590 GO Refunding Bonds Series 2004 5.25% 12/01/12 (b)(e) 7,035 7,543 GO Refunding Bonds Series 2005 5.00% 05/01/12 (e) 7,065 7,412 CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002A 5.50% 05/01/09 (e) 2,000 2,066 CALIFORNIA HEALTH FACILITIES FINANCE AUTH RB (Catholic Healthcare West) Series 2005G 5.00% 07/01/09 (e) 1,755 1,792 RB (Catholic Healthcare West) Series 2005G 5.00% 07/01/10 (e) 2,000 2,061 Refunding RB (Cedars-Sinai Medical Center) Series 2005 5.00% 11/15/08 (e) 1,000 1,017 Refunding RB (Cedars-Sinai Medical Center) Series 2005 5.00% 11/15/10 (e) 2,035 2,104 CALIFORNIA PUBLIC WORKS BOARD Lease RB (Butterfield State Office Complex) Series 2005A 5.00% 06/01/08 (e) 4,515 4,571 Lease RB (Butterfield State Office Complex) Series 2005A 5.00% 06/01/09 (e) 1,940 1,987 Lease RB (Dept of Corrections-Kern Cnty at Delano II) Series 2003C 5.00% 06/01/12 (e) 5,000 5,238 CALIFORNIA STATE UNIVERSITY TRUSTEES Trustees Systemwide RB Series 2005C 4.00% 11/01/08 (e) 2,050 2,057 Trustees Systemwide RB Series 2005C 4.00% 11/01/09 (e) 3,015 3,032
1 SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH Pollution Control Refunding RB (Southern California Edison Co) Series A 4.10% 04/01/13 (b)(e) 2,000 2,013 RB (Daughters of Charity Health System) Series 2005F 5.00% 07/01/08 (e) 1,240 1,251 RB (Daughters of Charity Health System) Series 2005F 5.00% 07/01/09 (e) 3,065 3,115 RB (Daughters of Charity Health System) Series 2005F 5.00% 07/01/10 (e) 2,455 2,512 RB (Daughters of Charity Health System) Series 2005G 5.25% 07/01/11 (e) 950 987 RB (Huntington Memorial Hospital) Series 2005 5.00% 07/01/09 (e) 3,250 3,316 RB (Kaiser Permanente) Series 2002E 4.70% 06/01/09 (e) 5,355 5,415 Student Housing RB Series 2004 5.50% 05/15/09 660 679 Student Housing RB Series 2004 5.50% 05/15/10 (e) 900 938 Student Housing RB Series 2004 5.50% 05/15/11 (e) 1,160 1,222 Student Housing RB Series 2004 5.50% 05/15/12 (e) 1,450 1,541 CHULA VISTA PUBLIC FINANCING AUTH Refunding RB Series 2005A 4.00% 09/01/12 (b)(e) 2,980 3,018 DEL MAR RACE TRACK AUTH RB Series 2005 5.00% 08/15/08 550 556 RB Series 2005 5.00% 08/15/09 500 510 GOLDEN STATE TOBACCO SECURITIZATION CORP Enhanced Tobacco Settlement Asset-Backed Bonds Series 2003B 5.63% 06/01/13 (b)(e) 27,415 29,919 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2003B 5.50% 06/01/13 (b)(e) 15,675 17,003 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/16 585 585 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/17 (e) 5,500 5,535 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/18 (e) 4,190 4,230 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 5.00% 06/01/19 5,000 5,075 IMPERIAL REDEVELOPMENT AGENCY Subordinate Tax Allocation Notes Series 2006 4.50% 12/01/11 (e) 2,000 1,995 INDIO PUBLIC FINANCING AUTH Lease RB Series 2007B 3.80% 11/01/12 (b)(c) 5,000 4,980 LOS ANGELES CNTY METROPOLITAN TRANSPORTATION AUTH Sales Tax RB (Prop C) Second Sr Series 2004A 5.00% 07/01/10 (b)(e) 3,390 3,519 Sales Tax Refunding RB (Prop A) First Tier Sr Series 2003A 5.00% 07/01/10 (b)(e) 1,180 1,225 Sales Tax Refunding RB (Prop C) Second Sr Series 1998A 5.50% 07/01/10 (b)(e) 2,485 2,615 LOS ANGELES CNTY PUBLIC WORKS FINANCING AUTH Lease Refunding RB (2005 Master Refunding) Series A 5.00% 12/01/08 (b)(e) 1,000 1,020 NATOMAS UNION SD COP Series B 5.00% 02/01/10 (b)(e) 14,575 14,994 ORANGE CNTY PUBLIC FINANCING AUTH Lease Refunding RB Series 2005 5.00% 07/01/10 (b)(e) 7,155 7,423 PERRIS PUBLIC FINANCING AUTH 2006 Tax Allocation RB 4.40% 10/01/10 (e) 480 480 2006 Tax Allocation RB 4.55% 10/01/11 (e) 520 521 2006 Tax Allocation RB 4.65% 10/01/12 (e) 545 549 ROSEVILLE NATURAL GAS FINANCING AUTH RB Series 2007 4.00% 02/15/09 (e) 1,500 1,506 RB Series 2007 5.00% 02/15/11 (e) 1,000 1,034
2 SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) SACRAMENTO CNTY SANITATION DISTRICT FINANCING AUTH Refunding RB Series 2007B 4.12% 12/01/35 (b) 20,000 20,000 SACRAMENTO CNTY WATER FINANCING AUTH RB (Sacramento Cnty Water Agency) Series 2007B 4.14% 06/01/34 (b) 50,000 50,000 SACRAMENTO MUNICIPAL UTILITY DISTRICT Electric Refunding RB Series 1997L 5.00% 07/01/11 (b)(e) 2,500 2,552 SAN DIEGO CNTY COP (Burnham Institute for Medical Research) Series 2006 5.00% 09/01/09 (e) 1,085 1,108 COP (Burnham Institute for Medical Research) Series 2006 5.00% 09/01/10 (e) 1,000 1,026 WESTERN PLACER UNIFIED SD COP (School Facilities) Series 2006B 3.63% 01/01/36 (b)(c)(e) 6,000 5,982 ----------- 300,374 PUERTO RICO 3.4% - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO Public Improvement Refunding Bonds Series 2003C 4.25% 07/01/08 (a)(b) 3,275 3,295 Public Improvement Refunding Bonds Series 2003C 5.00% 07/01/08 (a) 4,800 4,851 Public Improvement Refunding Bonds Series 2003C 5.00% 07/01/08 (a)(b)(e) 19,250 19,523 PUERTO RICO PUBLIC BUILDINGS AUTH Government Facilities Refunding RB Series J 5.00% 07/01/12 (a)(b)(e) 11,000 11,552 ----------- 39,221 ----------- TOTAL LONG-TERM INVESTMENTS (COST $339,884) 339,595 SHORT-TERM INVESTMENTS 68.8% OF NET ASSETS CALIFORNIA 53.5% - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA Economic Recovery Bonds Series 2004B2 5.00% 07/01/07 (a)(e) 8,250 8,258 Economic Recovery Bonds Series 2004B4 3.00% 07/01/07 (e) 1,000 1,000 Economic Recovery Bonds Series 2004C1 3.85% 06/01/07 (a)(c) 1,970 1,970 Economic Recovery Bonds Series 2004C3 3.86% 06/01/07 (a)(c) 6,500 6,500 Federal Highway Grant Anticipation Bonds Series 2004A 5.00% 02/01/08 (b)(e) 1,360 1,372 GO Bonds 3.82% 06/07/07 (a)(c)(d) 15,535 15,535 GO Bonds 3.86% 06/07/07 (a)(c)(e) 23,350 23,350 GO Bonds 3.86% 06/07/07 (a)(c)(d) 28,330 28,330 GO Bonds Series 2004B2 3.80% 06/01/07 (a)(b) 1,930 1,930 GO Bonds Series 2007 3.76% 06/07/07 (a)(b)(c)(d) 25,000 25,000 GO Refunding Bonds 3.86% 06/07/07 (a)(c)(d) 5,905 5,905 GO Refunding Bonds Series 2007 3.71% 08/01/07 (a)(b)(c)(d) 25,000 25,000 CALIFORNIA DEPT OF WATER RESOURCES Power Supply RB Series 2002A 3.86% 06/07/07 (a)(c)(d) 19,490 19,490 Power Supply RB Series 2002A 5.50% 05/01/08 (e) 20,845 21,185 Power Supply RB Series 2002B1 3.80% 06/01/07 (a)(b) 4,105 4,105
3 SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) Power Supply RB Series 2002B3 3.80% 06/01/07 (a)(b) 7,000 7,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK RB (Asian Art Museum Foundation of SF) Series 2005 3.80% 06/01/07 (a)(b)(c) 7,300 7,300 RB (J. David Gladstone Institutes) Series 2001 4.00% 10/01/07 (e) 2,000 2,000 RB (J. Paul Getty Trust) Series 2003D 3.80% 06/01/07 (a) 2,000 2,000 CALIFORNIA PUBLIC WORKS BOARD Lease RB (Butterfield State Office Complex) Series 2005A 5.00% 06/01/07 (e) 3,285 3,285 Lease Refunding RB (Dept of Corrections) Series 2004D 4.50% 12/01/07 (b)(e) 3,550 3,566 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH COP (Eskaton Properties) 3.95% 07/06/07 (a)(b) 14,500 14,500 RB (Kaiser Permanente) Series 2007B 4.36% 07/01/07 (a) 37,000 37,036 Student Housing RB Series 2004 5.50% 05/15/08 400 406 CONTRA COSTA WATER DISTRICT Refunding RB Series N 3.78% 06/07/07 (a)(b)(c)(d) 5,440 5,440 DEL MAR RACE TRACK AUTH RB Series 2005 5.00% 08/15/07 250 251 DIAMOND BAR PUBLIC FINANCING AUTH Lease RB (Community/Senior Center) Series 2002A 3.85% 06/06/07 (a)(b) 3,890 3,890 GOLDEN STATE TOBACCO SECURITIZATION CORP Enhanced Tobacco Settlement Asset-Backed Bonds Series 2005A 3.79% 06/07/07 (a)(b)(c)(d) 16,570 16,570 Enhanced Tobacco Settlement Asset-Backed Bonds Series 2007A1 3.79% 06/07/07 (a)(b)(c)(d) 20,000 20,000 IRVINE ASSESSMENT DISTRICT No.05-21 Limited Obligation Improvement Bonds Series A 3.84% 06/01/07 (a)(b) 3,000 3,000 IRVINE RANCH WATER DISTRICT 1986 Capital Improvement Project 3.61% 06/01/07 (a)(b) 400 400 MODESTO PUBLIC FINANCING AUTH Leasing Refunding and Capital Improvement Bonds 3.70% 06/07/07 (b) 25,000 25,000 NORTHERN CALIFORNIA GAS AUTHORITY NO. 1 Gas Project RB Series 2007B 4.31% 10/01/07 (a) 50,000 49,998 ORANGE CNTY SANITATION DISTRICT Refunding COP Series 2000A 3.83% 06/01/07 (a)(c) 1,000 1,000 ROSEVILLE NATURAL GAS FINANCING AUTH Gas RB Series 2007 3.62% 08/15/07 (a)(c)(d) 11,120 11,120 SAN DIEGO PUBLIC FACILITIES FINANCING AUTH Subordinate Sewer Revenue Notes Series 2007 3.79% 06/07/07 (a)(b)(c)(d) 50,000 50,000 SAN DIEGO UNIFIED SD 2006-2007 TRAN Series A 4.50% 07/24/07 (e) 25,000 25,020 SAN MATEO COMMUNITY COLLEGE DISTRICT GO Bonds (Election of 2005) Series 2006B 3.78% 06/07/07 (a)(c)(d) 16,170 16,170 SANTA BARBARA REDEVELOPMENT AGENCY Tax Allocation Refunding Bonds (Central City Redevelopment) Sr Series 1995A 6.00% 03/01/08 (b)(e) 1,535 1,562 SANTA CLARA Insurance Funding Bonds Series 1987 3.00% 04/01/08 (a)(b)(e) 5,000 4,976 SANTA CLARA VALLEY TRANSPORTATION AUTH Sales Tax RB (2000 Measure A) Series 2006F 3.65% 08/07/07 (a)(b) 20,000 20,000 Sales Tax RB (2000 Measure A) Series 2006G 3.65% 08/06/07 (a)(b) 4,000 4,000 SONOMA CNTY JUNIOR COLLEGE DISTRICT GO Bonds (Election of 2002) Series B 3.58% 06/07/07 (a)(b)(c)(d) 4,970 4,970 SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT RB Series 2001C1 3.85% 06/01/07 (a)(c) 4,000 4,000 TEMECULA VALLEY UNIFIED SD GO Refunding Bonds Series 2004 6.00% 08/01/07 (b)(e) 1,000 1,004
4 SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) UNIVERSITY OF CALIFORNIA General RB Series 2007J 3.78% 06/07/07 (a)(b)(c)(d) 49,585 49,585 VENTURA CNTY 2006-07 TRAN 4.50% 07/02/07 (e) 20,000 20,009 ----------- 603,987 PUERTO RICO 15.3% - ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT DEVELOPMENT BANK OF PUERTO RICO CP Program 4.05% 06/11/07 4,890 4,890 CP Program 4.07% 06/14/07 8,901 8,901 CP Program 4.10% 06/15/07 2,500 2,500 CP Program 4.20% 06/28/07 6,009 6,009 PUERTO RICO Public Improvement & Refunding Bonds Series 2000 3.79% 06/07/07 (a)(b)(c)(d) 1,135 1,135 Public Improvement Bonds Series 1996 3.64% 07/02/07 (a)(b) 12,900 12,900 Public Improvement Bonds Series 2000 3.75% 06/07/07 (a)(b)(c)(d) 930 930 Public Improvement Bonds Series 2001A 3.78% 06/07/07 (a)(b)(c)(d)(e) 6,635 6,635 Public Improvement Refunding Bonds Series 2006A 3.79% 06/07/07 (a)(b)(c)(d) 720 720 PUERTO RICO AQUEDUCT & SEWER AUTH Ban Series 2007B 3.82% 06/07/07 (a)(b)(c)(d) 16,000 16,000 Refunding Bonds Series 1995 3.70% 07/02/07 (a)(b) 10,000 10,000 PUERTO RICO ELECTRIC POWER AUTH Power Refunding RB Series UU 4.11% 07/01/07 (a)(b) 5,000 4,998 Refunding RB Series UU 3.79% 06/07/07 (a)(b)(c)(d) 14,760 14,760 PUERTO RICO HIGHWAY & TRANSPORTATION AUTH Transportation Refunding RB Series L 3.78% 06/07/07 (a)(b)(c)(d) 3,000 3,000 Transportation Refunding RB Series N 4.11% 07/01/07 (a)(b) 65,000 65,016 PUERTO RICO PUBLIC BUILDINGS AUTH Government Facilities RB Series B 3.78% 06/07/07 (a)(b)(c)(d) 3,900 3,900 Government Facilities Refunding RB Series K 4.50% 07/01/07 (a)(e) 6,950 6,952 Refunding RB Series L 3.79% 06/07/07 (a)(b)(c)(d) 4,000 4,000 ----------- 173,246 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $777,312) 777,233
END OF INVESTMENTS. At 05/31/07 the tax basis cost of the fund's investments was $1,117,193 and the unrealized appreciation and depreciation were $594 and ($959), respectively, with a net unrealized depreciation of ($365). In addition to the above, the fund held the following at 05/31/07. All numbers are x1,000 except number of open futures contracts. 5 SCHWAB CALIFORNIA TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS FUTURES CONTRACTS 10 YEARS, SHORT, U.S. TREASURY NOTE expires 09/19/07 (230) 24,466 70 2 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (50) 10,190 16 5 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (250) 26,109 74 ---------- 161
(a) Variable-rate security. (b) Credit-enhanced security. (c) Liquidity-enhanced security. (d) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $344,195 or 30.5% of net assets. (e) All or a portion of this security is held as collateral for open futures contracts. BAN -- Bond anticipation note COP -- Certificate of participation GO -- General obligation RB -- Revenue bond TRAN -- Tax and revenue anticipation note 6 SCHWAB INVESTMENTS SCHWAB TAX-FREE YIELDPLUS FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 32.5% LONG-TERM INVESTMENTS 199,930 199,407 66.3% SHORT-TERM INVESTMENTS 407,840 406,974 - -------------------------------------------------------------------------------- 98.8% TOTAL INVESTMENTS 607,770 606,381 1.2% OTHER ASSETS AND LIABILITIES 7,175 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 613,556
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LONG-TERM INVESTMENTS 32.5% OF NET ASSETS ALABAMA 0.5% - ------------------------------------------------------------------------------------------------------------------------------------ BIRMINGHAM SPECIAL CARE FACILITIES FINANCING AUTH RB (Baptist Health System Inc) Series 2005A 5.00% 11/15/09 (e) 1,565 1,587 HEALTH CARE AUTH FOR BAPTIST HEALTH Bonds Series 2006D 5.00% 11/15/11 (e) 1,600 1,651 ----------- 3,238 ALASKA 0.6% - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA HOUSING FINANCE CORP General Mortgage RB Series 1997A 5.90% 12/01/19 (b)(e) 3,830 3,906 ARKANSAS 1.1% - ------------------------------------------------------------------------------------------------------------------------------------ FORT SMITH Sales and Use Tax Refunding and Improvement Bonds Series 2006 4.00% 09/01/14 (b) 3,310 3,320 Sales and Use Tax Refunding and Improvement Bonds Series 2006 3.95% 09/01/15 (b) 3,630 3,620 ----------- 6,940
1 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) CALIFORNIA 0.2% - ------------------------------------------------------------------------------------------------------------------------------------ IMPERIAL REDEVELOPMENT AGENCY Subordinate Tax Allocation Notes Series 2006 4.50% 12/01/11 (e) 1,300 1,297 DISTRICT OF COLUMBIA 0.2% - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA HFA Capital Program RB Series 2005 5.00% 07/01/08 (b)(e) 1,000 1,013 FLORIDA 3.5% - ------------------------------------------------------------------------------------------------------------------------------------ CITIZENS PROPERTY INSURANCE CORP High-Risk Account Sr Secured Refunding Bonds Series 2007A 5.00% 03/01/10 (b) 5,000 5,147 EAST HOMESTEAD COMMUNITY DEVELOPMENT DISTRICT Special Assessment RB Series 2006B 5.00% 05/01/11 775 772 FLORIDA HURRICANE CATASTROPHE FUND FINANCE CORP RB Series 2006A 5.00% 07/01/09 (e) 5,000 5,112 HIGHLANDS CNTY HEALTH FACILITIES AUTH Hospital RB (Adventist Health System/Sunbelt Obligated Group) Series 2005I 5.00% 11/16/09 (a)(e) 8,150 8,325 Hospital Refunding RB (Adventist Health System/Sunbelt Obligated Group) Series 2005A 5.00% 11/15/09 (e) 250 255 Hospital Refunding RB (Adventist Health System/Sunbelt Obligated Group) Series 2005B 5.00% 11/15/09 (e) 500 510 UNIVERSITY OF FLORIDA ATHLETIC ASSN RB Series 2005 3.30% 10/01/08 (a)(b) 1,500 1,489 ----------- 21,610 ILLINOIS 0.3% - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS DEVELOPMENT FINANCE AUTH RB (Resurrection Health Care) Series 2005A 3.75% 07/01/09 (a)(e) 2,000 1,978 INDIANA 0.6% - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA HEALTH & EDUCATIONAL FACILITY FINANCING AUTH Hospital Refunding RB (Clarion Health Obligated Group) Series 2006B 5.00% 02/15/09 720 733 SEYMOUR Economic Development Refunding RB (Union Camp Corp) Series 1992 6.25% 07/01/12 (e) 2,670 2,867 ----------- 3,600 IOWA 0.2% - ------------------------------------------------------------------------------------------------------------------------------------ IOWA FINANCE AUTH Health Facilities Development Refunding RB (Care Initiatives) Series 2006A 5.25% 07/01/10 1,450 1,487
2 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) LOUISIANA 1.0% - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA GO Match Bonds Series 2006B 5.00% 07/15/11 (b)(e) 2,000 2,083 GO Refunding Bonds Series 1998A 5.25% 04/15/09 (b)(e) 4,000 4,088 ----------- 6,171 MASSACHUSETTS 0.3% - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTH RB (Partners HealthCare System) Series A 5.38% 07/01/17 (b)(e) 2,000 2,022 MICHIGAN 1.7% - ------------------------------------------------------------------------------------------------------------------------------------ DETROIT Sewage Disposal System Second Lien RB Series 2001D2 5.50% 01/01/12 (a)(b)(e) 5,000 5,308 KENT HOSPITAL FINANCE AUTH Refunding RB (Spectrum Health) Series 2005B 5.00% 07/15/11 5,000 5,180 ----------- 10,488 MINNESOTA 0.1% - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA MUNICIPAL POWER AGENCY Electric RB Series 2005 3.50% 10/01/08 (e) 685 680 MISSISSIPPI 0.1% - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTH RB (Mississippi Baptist Health Systems) Series 2007A 5.00% 08/15/09 500 509 MISSOURI 1.6% - ------------------------------------------------------------------------------------------------------------------------------------ BI-STATE DEVELOPMENT AGENCY OF THE MISSOURI-ILLINOIS METROPOLITAN DISTRICT Subordinate Mass Transit Sales Tax Appropriation Bonds (Metrolink Cross Cnty Extension) Series 2005A 3.95% 10/01/09 (a)(b)(e) 3,000 3,002 KANSAS CITY INTERNATIONAL AIRPORT General Improvement Refunding RB Series 2005H 5.00% 09/01/08 (e) 6,480 6,573 ----------- 9,575 NEVADA 1.5% - ------------------------------------------------------------------------------------------------------------------------------------ CLARK CNTY SPECIAL IMPROVEMENT DISTRICT # 121 (Southern Highlands) Subordinate Local Improvement Refunding Bonds Series 2006B 4.35% 12/01/09 (e) 465 466 (Southern Highlands) Subordinate Local Improvement Refunding Bonds Series 2006B 4.50% 12/01/10 (e) 485 487 (Southern Highlands) Subordinate Local Improvement Refunding Bonds Series 2006B 4.60% 12/01/11 (e) 245 247
3 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) HENDERSON Health Facility RB (Catholic Healthcare West) Series 2005B 5.00% 07/01/08 (e) 3,000 3,033 Health Facility RB (Catholic HealthCare West) Series 2007B 4.00% 07/01/12 2,000 1,978 Local Improvement District No.T-18 (Inspirada) Limited Obligation Improvement Bonds 4.60% 09/01/11 (e) 2,025 2,043 NORTH LAS VEGAS SPECIAL IMPROVEMENT DISTRICT # 60 Subordinate Local Improvement Refunding Bonds (Aliante) Series 2006B 4.15% 12/01/08 (e) 630 631 Subordinate Local Improvement Refunding Bonds (Aliante) Series 2006B 4.35% 12/01/09 (e) 330 331 ----------- 9,216 NEW MEXICO 0.8% - ------------------------------------------------------------------------------------------------------------------------------------ FARMINGTON Pollution Control Refunding RB (Southern California Edison Co-Four Corners) Series 2005A 3.55% 04/01/10 (a)(b)(e) 4,850 4,800 NEW YORK 4.4% - ------------------------------------------------------------------------------------------------------------------------------------ METROPOLITAN TRANSPORTATION AUTH Commuter Facilities Service Contract Bonds Series 1997-3 7.38% 07/01/08 985 1,004 NEW YORK CITY GO Bonds Fiscal 1997 Series A 6.25% 08/01/08 (e) 2,000 2,023 GO Bonds Fiscal 1997 Series H 5.90% 08/01/09 1,960 1,986 NEW YORK STATE DORMITORY AUTH Mortgage Hospital RB (New York and Presbyterian Hospital) Series 1998 4.75% 08/01/16 (b)(e) 7,000 7,104 State University Educational Facilities RB Series 1990C 7.38% 05/15/10 1,280 1,357 Third General Resolution RB Series 2002B 5.25% 05/15/12 (a)(b)(e) 5,000 5,308 TROY INDUSTRIAL DEVELOPMENT AUTH Civic Facility RB (Rensselaer Polytechnic Institute) Series 2002E 4.05% 09/01/11 (a) 8,000 7,984 ----------- 26,766 NORTH DAKOTA 0.3% - ------------------------------------------------------------------------------------------------------------------------------------ WARD CNTY Health Care Facilities RB (Trinity Obligated Group) Series 2006 5.00% 07/01/09 465 472 Health Care Facilities RB (Trinity Obligated Group) Series 2006 5.00% 07/01/11 1,000 1,025 ----------- 1,497 OHIO 0.4% - ------------------------------------------------------------------------------------------------------------------------------------ CLEVELAND COP (Cleveland Stadium) Series 1997 5.25% 11/15/10 (b) 2,500 2,566
4 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) PENNSYLVANIA 0.8% - ------------------------------------------------------------------------------------------------------------------------------------ SOUTHCENTRAL GENERAL AUTH Guaranteed RB Series 2001 4.50% 12/01/08 (a)(b)(e) 5,000 5,056 SOUTH CAROLINA 1.6% - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTH Hospital Improvement RB (Palmetto Health) Series 2007 4.51% 08/01/13 10,000 10,000 TENNESSEE 4.5% - ------------------------------------------------------------------------------------------------------------------------------------ SHELBY CNTY HEALTH EDUCATION & HOUSING FACILITIES BOARD RB (Baptist Memorial Health Care) Series 2004A 5.00% 09/01/08 (e) 3,000 3,037 RB (Baptist Memorial Health Care) Series 2004A 5.00% 10/01/08 (a)(e) 19,000 19,251 TENNESSEE ENERGY ACQUISITION CORP Gas Project RB Series 2006A 5.00% 09/01/09 (e) 5,000 5,110 ----------- 27,398 TEXAS 4.2% - ------------------------------------------------------------------------------------------------------------------------------------ BRAZOS RIVER AUTH Refunding RB (Houston Industries) Series 1998A 5.13% 05/01/19 (b) 1,750 1,802 CORPUS CHRISTI INDEPENDENT SD Unlimited Tax Refunding Bonds Series 2005 5.00% 08/15/12 (b)(e) 2,110 2,122 HARRIS COUNTY HEALTH FACILITIES DEVELOPMENT CORP Hospital RB (Memorial Hermann Hospital System) Series 1998 5.25% 06/01/27 (b) 2,200 2,248 NORTH TEXAS TOLLWAY AUTH Dallas North Tollway System Refunding RB Series 2003B 5.00% 07/01/08 (a)(b)(e) 3,000 3,039 NORTHSIDE INDEPENDENT SD Unlimited Tax School Building Bonds Series 2007A 3.78% 06/01/09 (a)(b)(c) 10,000 9,987 SPRING INDEPENDENT SD Unlimited Tax Schoolhouse Bonds Series 2005A 5.00% 08/15/08 (a)(b)(c)(e) 5,000 5,074 TOMBALL HOSPITAL AUTH Refunding RB Series 2005 5.00% 07/01/09 1,205 1,218 ----------- 25,490 WASHINGTON 2.0% - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY NORTHWEST Electric Refunding RB (Project 1) Series 2006A 5.00% 07/01/11 (e) 5,000 5,199 KING CNTY Limited Tax GO Bonds (Baseball Stadium) Series 1997D 5.60% 12/01/09 (e) 6,710 6,905 ----------- 12,104 ----------- TOTAL LONG-TERM INVESTMENTS (COST $199,930) 199,407 -----------
5 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 66.3% OF NET ASSETS ARIZONA 4.2% - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA EDUCATIONAL LOAN MARKETING CORP RB Series 1998B 3.95% 07/05/07 (a) 5,100 5,100 ARIZONA HEALTH FINANCING CORP Hospital RB (Phoenix Children's Hospital) Series 2007A 4.76% 06/07/07 (a) 15,000 15,156 MARICOPA COUNTY INDUSTRIAL DEVELOPMENT AUTH M/F Housing RB (AHF Affordable Housing Portfolio) Series 2003B 4.05% 06/28/07 (a) 4,200 4,200 PINAL CNTY COP Series 2004 4.00% 12/01/07 1,150 1,149 ----------- 25,605 CALIFORNIA 4.8% - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA Various Purpose GO Bonds 8.00% 11/01/07 (b)(e) 750 763 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH COP (Eskaton Properties) 3.95% 07/06/07 (a)(b)(e) 7,850 7,850 SANTA CLARA VALLEY TRANSPORTATION AUTH Sales Tax RB (2000 Measure A) Series 2006G 3.65% 08/06/07 (a)(b) 21,000 21,000 ----------- 29,613 COLORADO 1.4% - ------------------------------------------------------------------------------------------------------------------------------------ E-470 PUBLIC HIGHWAY IMPROVEMENT AUTH Sr RB Series 1997A 5.25% 09/01/07 (b)(e) 8,245 8,354 FLORIDA 3.4% - ------------------------------------------------------------------------------------------------------------------------------------ ALACHUA CNTY HEALTH FACILITIES AUTH Refunding RB (Shands HealthCare) Series 2007B 4.44% 06/01/07 (a) 10,210 10,211 ESCAMBIA CNTY HEALTH FACILITIES AUTH RB (Ascension Health Credit Group) Series 2003A 5.00% 11/15/07 (e) 1,500 1,508 GULF BREEZE Capital Funding RB Series 1997A 4.21% 06/01/07 (a)(b)(e) 5,095 5,370 HIGHLANDS CNTY HEALTH FACILITIES AUTH Hospital Refunding RB (Adventist Health System/Sunbelt Obligated Group) Series 2005A 5.00% 11/15/07 525 528 Hospital Refunding RB (Adventist Health System/Sunbelt Obligated Group) Series 2005B 5.00% 11/15/07 900 904 ORLANDO Capital Improvement Special RB Series 2005B 5.00% 04/01/08 (e) 2,460 2,485 ----------- 21,006
6 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) ILLINOIS 0.7% - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS DEVELOPMENT FINANCE AUTH RB (Resurrection Health Care) Series 2005D 4.01% 06/07/07 (a) 4,000 4,000 RB (Resurrection Health Care) Series 2005E 4.01% 06/07/07 (a) 310 310 ----------- 4,310 INDIANA 0.1% - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA HEALTH & EDUCATIONAL FACILITY FINANCING AUTH Hospital Refunding RB (Clarion Health Obligated Group) Series 2006B 5.00% 02/15/08 725 730 KANSAS 0.7% - ------------------------------------------------------------------------------------------------------------------------------------ JUNCTION CITY Temporary Notes Series 2006C 5.00% 08/01/07 2,000 2,004 Temporary Notes Series 2006D 5.00% 08/01/07 2,000 2,004 ----------- 4,008 KENTUCKY 1.2% - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY RURAL WATER FINANCE CORP Public Projects Construction Notes Series A1 3.70% 10/01/07 (a) 7,225 7,223 LOUISIANA 2.5% - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA PUBLIC FACILITIES AUTH Equipment and Capital Facilities RB (Pooled Loan) Series 2002A 4.26% 06/07/07 (a)(b) 12,090 12,090 RB (Blood Center Properties) Series 2000 4.08% 06/07/07 (a)(b) 2,900 2,900 ----------- 14,990 MASSACHUSETTS 7.1% - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS GO Bonds Consolidated Loan Series 1992D 6.00% 05/01/08 (e) 2,275 2,320 GO Refunding Bonds Series 2006C 3.67% 06/01/07 (a)(b) 10,395 10,124 GO Refunding Bonds Series 2007A 4.14% 08/01/07 (a) 25,000 25,000 MASSACHUSETTS HEALTH & EDUCATIONAL FACILTIES AUTH RB (Caritas Christi Obligated Group) Series A 5.25% 07/01/07 6,050 6,053 ----------- 43,497 MICHIGAN 2.1% - ------------------------------------------------------------------------------------------------------------------------------------ DETROIT SEWAGE DISPOSAL SYSTEM Sr Lien Refunding RB Series 2006D 4.18% 07/02/07 (a)(b) 5,000 5,000 MICHIGAN HOSPITAL FINANCING AUTH RB (Ascension Health) Series 1999B4 5.38% 11/15/07 (a)(e) 2,000 2,013
7 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) MICHIGAN STATE STRATEGIC FUND Limited Obligation Refunding RB (Dow Chemical Co) Series 2003B1 3.95% 06/06/07 (a) 6,100 6,100 ----------- 13,113 MINNESOTA 0.1% - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA MUNICIPAL POWER AGENCY Electric RB Series 2005 3.50% 10/01/07 445 444 NEBRASKA 1.6% - ------------------------------------------------------------------------------------------------------------------------------------ CENTRAL PLAINS ENERGY PROJECT Gas Project RB (Project No.1) 4.25% 06/01/07 (a) 10,000 10,010 NEW JERSEY 7.1% - ------------------------------------------------------------------------------------------------------------------------------------ CAMDEN BAN Series 2006A 4.50% 06/25/07 (e) 10,000 10,002 BAN Series 2006B 4.50% 09/04/07 (e) 10,423 10,434 NEW JERSEY ECONOMIC DEVELOPMENT AUTH Cigarette Tax RB Series 2004 4.16% 06/07/07 (a)(c)(d) 4,795 4,795 School Facilities Construction Bonds Series 2005O 3.91% 06/07/07 (a)(c)(d) 9,995 9,995 School Facilities Construction Bonds Series 2005O 3.25% 03/01/08 (e) 1,100 1,094 NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTH RB (Catholic Health East) Series 2007E 4.39% 08/15/07 (a) 3,000 3,000 UNIVERSITY OF MEDICINE & DENTISTRY Bonds Series 2002B 3.76% 06/07/07 (a)(b)(c) 1,500 1,500 WEEHAWKEN TOWNSHIP TAN 4.50% 10/11/07 3,000 3,007 ----------- 43,827 NEW YORK 6.4% - ------------------------------------------------------------------------------------------------------------------------------------ GLOVERSVILLE SD BAN Series 2006 4.50% 06/29/07 10,000 10,004 METROPOLITAN TRANSPORTATION AUTH Transportation RB Series 2006A 3.89% 06/07/07 (a)(c)(d) 6,250 6,250 Transportation Refunding RB Series 2002A 3.89% 06/07/07 (a)(c)(d) 2,595 2,595 NEW YORK CITY GO Bonds Fiscal 2006J 3.83% 06/07/07 (a)(c)(d) 527 527 NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY Pilot RB (Yankee Stadium) Series 2006 3.57% 06/01/07 (a)(b) 15,360 15,193 NEW YORK CITY MUNICIPAL WATER FINANCE AUTH Second General Resolution RB Fiscal 2007 Series CC1 3.88% 06/01/07 (a)(c) 2,000 2,000 NEW YORK CITY TRANSITIONAL FINANCE AUTH Recovery Bonds Fiscal 2003 Series 3B 3.92% 06/01/07 (a)(c) 2,135 2,135 NEW YORK STATE POWER AUTH General Purpose Bonds Series W 6.50% 01/01/08 560 569 ----------- 39,273
8 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) NORTH CAROLINA 3.3% - ------------------------------------------------------------------------------------------------------------------------------------ FAYETTEVILLE Public Works Commission Revenue Notes Series 2005 3.55% 01/15/08 (b)(e) 8,755 8,743 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY Power System Refunding RB Series 1993B 7.00% 01/01/08 11,230 11,422 ----------- 20,165 OHIO 0.8% - ------------------------------------------------------------------------------------------------------------------------------------ OHIO AIR QUALITY DEVELOPMENT AUTH Refunding RB (Cincinnati Gas & Electric Co) Series 1995A 3.98% 06/06/07 (a) 5,100 5,100 OKLAHOMA 1.3% - ------------------------------------------------------------------------------------------------------------------------------------ TULSA CNTY INDUSTRIAL AUTH M/F Housing RB (AHF Affordable Housing) Series 2003B 4.05% 07/05/07 (a) 8,000 8,000 PENNSYLVANIA 5.1% - ------------------------------------------------------------------------------------------------------------------------------------ ALLEGHENY COUNTY HOSPITAL DEVELOPMENT AUTH Univ of Pittsburgh Medical Center RB Series 2007A-1 4.41% 08/01/07 (a) 5,000 5,000 LEHIGH CNTY GENERAL PURPOSE AUTH Hospital RB (Saint Luke's Hospital of Bethlehem) Series 2007 4.51% 08/15/07 (a) 5,000 4,999 PHILADELPHIA Water and Wastewater RB Series 1997A 5.00% 08/01/07 (b)(e) 4,000 4,088 SAYRE HEALTH CARE FACILITIES AUTH RB (Guthrie Health) Series 2007 4.36% 06/01/07 (a) 8,500 8,500 SCHULKILL COUNTY INDUSTRIAL DEVELOPMENT AUTH Resource Recovery Refunding RB (WPS Westwood Generation) 4.01% 06/06/07 (a) 8,875 8,875 ----------- 31,462 PUERTO RICO 1.6% - ------------------------------------------------------------------------------------------------------------------------------------ GOVERNMENT DEVELOPMENT BANK OF PUERTO RICO CP Program 4.05% 06/11/07 5,200 5,200 CP Program 4.07% 06/14/07 2,426 2,426 PUERTO RICO PUBLIC BUILDINGS AUTH Government Facilities Refunding RB Series K 4.50% 07/01/07 (a)(e) 1,900 1,901 Refunding RB Series L 3.79% 06/07/07 (a)(b)(c)(d) 500 500 ----------- 10,027 SOUTH CAROLINA 0.4% - ------------------------------------------------------------------------------------------------------------------------------------ RICHLAND CNTY Environmental Improvement Refunding RB (International Paper Co) Series 2002A 4.25% 10/01/07 2,500 2,501
9 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued
ISSUER PROJECT MATURITY FACE AMOUNT VALUE TYPE OF SECURITY, SERIES RATE DATE ($ X 1,000) ($ X 1,000) TEXAS 6.8% - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL AREA HOUSING FINANCE CORP M/F Housing RB (AHF Affordable Housing) Series 2003A 3.99% 06/28/07 (a) 4,000 4,000 HOUSING OPTIONS, INC. M/F Housing RB (AHF Affordable Housing) Series 2003A 4.00% 07/05/07 (a) 4,000 4,000 SPRING INDEPENDENT SD Unlimited Tax Schoolhouse Bonds Series 2005A 3.75% 08/15/07 (a)(b)(c)(e) 5,000 4,997 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORP I Gas Supply RB Sr Lien Series 2006B 3.93% 06/15/07 (a) 11,815 11,815 Gas Supply RB Sr Lien Series 2006B 4.15% 06/15/07 (a) 2,000 2,001 Gas Supply RB Sr Lien Series 2006B 4.30% 06/15/07 (a) 15,000 15,008 ----------- 41,821 VIRGINIA 1.3% - ------------------------------------------------------------------------------------------------------------------------------------ LOUISA INDUSTRIAL DEVELOPMENT AUTH Pollution Control RB (Virginia Electric and Power Co) Series 1984 4.00% 06/01/07 4,000 4,000 Pollution Control RB (Virginia Electric and Power Co) Series 1984 4.05% 06/18/07 2,000 2,000 Pollution Control RB (Virginia Electric and Power Co) Series 1984 4.05% 06/25/07 2,000 2,000 ----------- 8,000 WASHINGTON 0.6% - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON HIGHER EDUCATION FACILITIES AUTH Refunding RB (University of Puget Sound) Series 2006A 5.00% 04/01/08 (a)(b)(e) 2,000 2,020 WASHINGTON PUBLIC POWER SUPPLY SYSTEM Refunding RB (Nuclear Project No.1) Series 1993A 3.80% 07/02/07 (a)(b) 1,400 1,400 ----------- 3,420 WISCONSIN 1.7% - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN HEALTH & EDUCATIONAL FACILITIES AUTH RB (Hospital Sisters Services) Series 2003B 4.50% 12/01/07 (a)(b)(e) 10,440 10,475 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $407,840) 406,974 -----------
END OF INVESTMENTS. At 05/31/07, the tax basis cost of the fund's investments was $607,781 and the unrealized appreciation and depreciation was $137 and ($1,537), respectively, with a net unrealized depreciation of ($1,400). 10 SCHWAB TAX-FREE YIELDPLUS FUND PORTFOLIO HOLDINGS (Unaudited) continued In addition to the above, the fund held the following at 05/31/07. All numbers are x 1,000 except number of futures contracts.
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS FUTURES CONTRACTS 2 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (50) 10,190 16 5 YEARS, SHORT, U.S. TREASURY NOTE expires 09/28/07 (180) 18,799 53 ---------- 69 ----------
(a) Variable-rate security. (b) Credit-enhanced security. (c) Liquidity-enhanced security. (d) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $24,662 or 4.0% of net assets. (e) All or a portion of this security is held as collateral for open futures contracts. BAN -- Bond anticipation note COP -- Certificate of participation GO -- General obligation HFA -- Housing finance agency IDA -- Industrial development authority RB -- Revenue bond TAN -- Tax anticipation note TRAN -- Tax and revenue anticipation note 11 SCHWAB INVESTMENTS SCHWAB INFLATION PROTECTED FUND(TM) PORTFOLIO HOLDINGS As of May 31, 2007 (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports. For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
COST VALUE HOLDINGS BY CATEGORY ($ X 1,000) ($ X 1,000) - -------------------------------------------------------------------------------- 88.6% U.S. GOVERNMENT 82,252 81,056 SECURITIES 5.7% CORPORATE BONDS 5,231 5,208 3.4% PREFERRED STOCK 3,092 3,108 1.7% SHORT-TERM 1,558 1,558 INVESTMENTS - -------------------------------------------------------------------------------- 99.4% TOTAL INVESTMENTS 92,133 90,930 0.6% OTHER ASSETS AND LIABILITIES 589 - -------------------------------------------------------------------------------- 100.0% NET ASSETS 91,519
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) U.S. GOVERNMENT SECURITIES 88.6% OF NET ASSETS U.S. TREASURY OBLIGATIONS 88.6% - -------------------------------------------------------------------------------- U.S. TREASURY INFLATION PROTECTED SECURITIES 3.88%, 01/15/09 1,252 1,277 4.25%, 01/15/10 2,898 3,025 0.88%, 04/15/10 1,300 1,240 3.50%, 01/15/11 3,539 3,665 2.38%, 04/15/11 7,550 7,510 3.38%, 01/15/12 6,914 7,180 2.00%, 04/15/12 1,214 1,184 3.00%, 07/15/12 4,910 5,035 1.88%, 07/15/13 4,359 4,211 2.00%, 01/15/14 4,444 4,307 1.88%, 07/15/15 6,860 6,550 2.00%, 01/15/16 4,655 4,470 2.50%, 07/15/16 2,033 2,033 2.38%, 01/15/17 7,523 7,430 2.00%, 01/15/26 (d) 11,885 10,955 2.38%, 01/15/27 1,924 1,880 3.63%, 04/15/28 2,665 3,143 3.88%, 04/15/29 3,746 4,602 3.38%, 04/15/32 1,157 1,359 ----------- TOTAL U.S. GOVERNMENT SECURITIES (COST $82,252) 81,056 ----------- CORPORATE BONDS 5.7% OF NET ASSETS FINANCE 3.8% - -------------------------------------------------------------------------------- BANKING 0.2% HUBCO CAPITAL TRUST I, SERIES B 8.98%, 02/01/27 (b) 200 210 FINANCE COMPANY 1.1% CAPITAL ONE CAPITAL III 7.69%, 08/15/36 (d) 250 268 GMAC LLC 4.38%, 12/10/07 163 162 ILFC E-CAPITAL TRUST I 5.90%, 12/21/10 (a)(b)(c)(d) 250 250 RESIDENTIAL CAPITAL LLC 7.19%, 07/17/07 (a)(b)(c)(d) 300 299 ----------- 979 INSURANCE 2.5% ASSURED GUARANTY US HOLDINGS, INC. 6.40%, 12/15/16 (a)(b)(d) 250 249 LIBERTY MUTUAL GROUP, INC. 7.80%, 03/15/37 (b)(c) 300 293 OIL INSURANCE LTD. 7.56%, 06/30/11 (a)(b)(c) 250 260 XL FINANCIAL ASSURANCE LTD. - TWIN REEFS PASS-THROUGH 6.32%, 06/10/07 (a)(b)(c) 400 401 ZURICH CAPITAL TRUST I 8.38%, 06/01/37 (b) 1,000 1,044 ----------- 2,247 ----------- 3,436 INDUSTRIAL 1.6% - -------------------------------------------------------------------------------- BASIC INDUSTRY 0.2% ABITIBI-CONSOLIDATED, INC. 6.95%, 04/01/08 170 168 COMMUNICATIONS 0.1% NEXTEL PARTNERS, INC. 8.13%, 07/01/11 (b) 100 104 US UNWIRED, INC. 10.00%, 06/15/12 (b) 50 54 ----------- 158 CONSUMER CYCLICAL 1.3% FORD MOTOR CREDIT CO. 8.36%, 08/02/07 (a) 250 252 JC PENNEY CO., INC. 8.13%, 04/01/27 (b)(d) 500 514 TOLL CORP. 8.25%, 02/01/11 (b)(d) 400 408 ----------- 1,174 ----------- 1,500
1 SCHWAB INFLATION PROTECTED FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) UTILITIES 0.3% - -------------------------------------------------------------------------------- NATURAL GAS 0.3% ENTERPRISE PRODUCTS OPERATING LP 8.38%, 08/01/16 (a)(b)(d) 250 272 ----------- TOTAL CORPORATE BONDS (COST $5,231) 5,208 -----------
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) PREFERRED STOCK 3.4% OF NET ASSETS NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. (b) 103,250 2,595 SOVEREIGN REAL ESTATE INVESTMENT TRUST (b)(c) 350,000 513 ----------- TOTAL PREFERRED STOCK (COST $3,092) 3,108 -----------
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 1.7% OF NET ASSETS COMMERCIAL PAPER & OTHER OBLIGATIONS 1.1% - -------------------------------------------------------------------------------- VIACOM, INC. 5.45%, 06/01/07 1,000 1,000 REPURCHASE AGREEMENT 0.5% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. dated 05/31/07, due 06/01/07 at 5.00%, with a maturity value of $458 (fully collateralized by Federal National Mortgage Assn. with a value of $483). 458 458 U.S. TREASURY OBLIGATION 0.1% - -------------------------------------------------------------------------------- U.S. TREASURY BILL 4.92%, 06/21/07 100 100 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $1,558) 1,558 -----------
END OF INVESTMENTS. At 05/31/07 the tax basis cost of the fund's investments was $92,133, and the unrealized appreciation and depreciation were $21 and ($1,224), respectively, with a net unrealized depreciation of ($1,203). In addition to the above, the fund held the following at 05/31/07. All numbers are x 1,000 except number of futures contracts.
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE LOSSES FUTURES CONTRACT 30 YEARS, LONG, U.S. TREASURY BOND expires 09/19/07 5 546 (1)
(a) Variable-rate security. (b) Callable security. (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $2,016 or 2.2% of net assets. (d) All or a portion of this security is held as collateral for open futures contracts. 2 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: July 10, 2007 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: July 10, 2007 By: /s/ George Pereira ------------------- George Pereira Principal Financial Officer Date: July 10, 2007 EX-99.CERT 2 f31915aexv99wcert.txt EX-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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) 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: July 10, 2007 /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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) 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: July 10, 2007 /s/ George Pereira ------------- ------------------ George Pereira Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----