UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08314
Schwab Annuity Portfolios
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Jonathan de St. Paer
Schwab Annuity Portfolios
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: December 31
Date of reporting period: December 31, 2021
Item 1: Report(s) to Shareholders.
Linda Klingman, Managing Director and Head of Money Market Strategies for Schwab Asset Management, leads the portfolio management teams for taxable and tax-exempt Schwab Money Funds, and has overall responsibility for all aspects of the management of the fund. Prior to joining Schwab in 1990, she was a senior money market trader with AIM Management, Inc. for five years. She has managed money market funds since 1988. |
Lynn Paschen, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2011, Ms. Paschen held a number of positions at American Century Investments. She was most recently a portfolio manager and, from 2000 to 2003, worked as a fixed-income trader. She has managed money market funds since 2003. |
Nicole Perret-Gentil, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2016, Ms. Perret-Gentil worked at Freddie Mac for 15 years, most recently as a senior portfolio manager where she managed and executed trades for a fixed-income strategy. Prior to that role, she served as a portfolio manager performing fixed-income analysis, a senior research analyst for investor and dealer relations, a senior securities operations analyst in loan and securities operations, and a lead mortgage securities operations specialist. She also worked at Merrill Lynch for a year as a senior specialist in fixed-income global banking and investments. |
Weighted Average Maturity2 | 37 Days |
1 | Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand. |
2 | Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months). |
3 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
4 | Includes the fund’s position in money market mutual funds registered under the Investment Company Act of 1940, as amended. |
5 | Less than 0.05% |
Schwab Government Money Market Portfolio | |
Ticker Symbol | SWPXX |
Seven-Day Yield (with waivers)3 | 0.01% |
Seven-Day Yield (without waivers)3 | -0.18% |
Seven-Day Effective Yield (with waivers)3 | 0.01% |
1 | Due to a special distribution of ordinary income to shareholders of Schwab Money Funds, the fund’s stated yields temporarily increased. Because this increase was temporary, investors should not rely on these yields for making investment decisions. |
2 | Fund yields do not reflect the additional fees and expenses imposed by the insurance company under the variable insurance product contract. If those contract fees and expenses were included, the yields would be less than those shown. Please refer to the variable insurance product prospectus for a complete listing of these expenses. |
3 | The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4. |
EXPENSE RATIO (ANNUALIZED) 1,2 | BEGINNING ACCOUNT VALUE AT 7/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 12/31/21 | EXPENSES PAID DURING PERIOD 7/1/21-12/31/213 | |
Schwab Government Money Market Portfolio | ||||
Actual Return | 0.06% | $1,000.00 | $1,000.50 | $0.30 |
Hypothetical 5% Return | 0.06% | $1,000.00 | $1,024.90 | $0.31 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Expense ratio (annualized) reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4) |
3 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 184 days of the period, and divided by the 365 days of the fiscal year. |
1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | 1/1/17– 12/31/17 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.00 2 | 0.00 2 | 0.02 | 0.02 | 0.00 2 | |
Net realized and unrealized gains (losses) | 0.00 2 | 0.00 2 | 0.00 2 | (0.00) 2 | 0.00 2 | |
Total from investment operations | 0.00 2 | 0.00 2 | 0.02 | 0.02 | 0.00 2 | |
Less distributions: | ||||||
Distributions from net investment income | (0.00) 2,3 | (0.00) 2 | (0.02) | (0.02) | (0.00) 2 | |
Net asset value at end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |
Total return | 0.06% 3 | 0.28% | 1.91% | 1.52% | 0.45% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.06% 4 | 0.26% 5,6 | 0.35% | 0.35% | 0.46% 7 | |
Gross operating expenses | 0.27% | 0.41% | 0.47% | 0.48% | 0.50% | |
Net investment income (loss) | 0.06% | 0.25% | 1.88% | 1.55% | 0.44% | |
Net assets, end of period (x 1,000,000) | $185 | $185 | $149 | $138 | $95 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Per-share amount was less than $0.005. |
3 | These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.05%. |
4 | Reflects the effect of a voluntary yield waiver. (See financial note 4) |
5 | Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio. |
6 | Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4) |
7 | Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio. |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
U.S. GOVERNMENT AGENCY DEBT 11.2% OF NET ASSETS | ||||||
FEDERAL FARM CREDIT BANKS FUNDING CORP | ||||||
(SOFR + 0.08%) | (a) | 0.13% | 01/03/22 | 03/10/22 | 400,000 | 400,000 |
0.25% | 05/06/22 | 100,000 | 100,057 | |||
0.08% | 05/09/22 | 100,000 | 99,997 | |||
0.06% | 05/17/22 | 700,000 | 699,993 | |||
0.25% | 06/02/22 | 300,000 | 300,195 | |||
0.08% | 06/03/22 | 100,000 | 99,966 | |||
2.20% | 06/03/22 | 100,000 | 100,880 | |||
0.07% | 07/06/22 | 100,000 | 99,964 | |||
(SOFR + 0.04%) | (a) | 0.09% | 01/03/22 | 07/08/22 | 500,000 | 499,987 |
0.20% | 07/13/22 | 900,000 | 900,559 | |||
0.07% | 07/19/22 | 300,000 | 299,885 | |||
(SOFR + 0.09%) | (a) | 0.14% | 01/03/22 | 07/25/22 | 300,000 | 299,992 |
0.10% | 08/02/22 | 400,000 | 400,032 | |||
0.09% | 08/18/22 | 200,000 | 199,887 | |||
0.11% | 08/31/22 | 200,000 | 199,853 | |||
(EFFR - 0.02%) | (a) | 0.06% | 01/03/22 | 09/08/22 | 1,100,000 | 1,100,000 |
1.70% | 09/19/22 | 100,000 | 101,113 | |||
0.19% | 10/13/22 | 100,000 | 100,000 | |||
(SOFR + 0.06%) | (a) | 0.11% | 01/03/22 | 10/21/22 | 600,000 | 600,000 |
0.15% | 11/16/22 | 500,000 | 499,903 | |||
(3 mo. US TBILL + 0.02%) | (a) | 0.11% | 01/03/22 | 05/01/23 | 700,000 | 700,000 |
(3 mo. US TBILL + 0.03%) | (a) | 0.11% | 01/04/22 | 07/13/23 | 300,000 | 300,000 |
(EFFR - 0.01%) | (a) | 0.07% | 01/03/22 | 07/21/23 | 900,000 | 900,000 |
(SOFR + 0.06%) | (a) | 0.11% | 01/03/22 | 11/07/23 | 200,000 | 200,000 |
(EFFR + 0.03%) | (a) | 0.11% | 01/03/22 | 12/08/23 | 100,000 | 100,000 |
(SOFR + 0.12%) | (a) | 0.17% | 01/03/22 | 12/08/23 | 300,000 | 300,351 |
(SOFR + 0.06%) | (a) | 0.11% | 01/03/22 | 12/13/23 | 200,000 | 200,000 |
FEDERAL HOME LOAN BANKS | ||||||
(SOFR + 0.12%) | (a) | 0.17% | 01/03/22 | 02/28/22 | 700,000 | 700,000 |
0.13% | 08/12/22 | 200,000 | 200,035 | |||
3.13% | 09/09/22 | 100,000 | 102,067 | |||
0.21% | 12/02/22 | 700,000 | 700,000 | |||
FEDERAL HOME LOAN MORTGAGE CORPORATION | 2.38% | 01/13/22 | 1,000,000 | 1,000,632 | ||
(SOFR + 0.15%) | (a) | 0.20% | 01/03/22 | 03/04/22 | 900,000 | 900,000 |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
(SOFR + 0.20%) | (a) | 0.25% | 01/03/22 | 03/11/22 | 200,000 | 200,000 |
(SOFR + 0.19%) | (a) | 0.24% | 01/03/22 | 06/02/22 | 500,000 | 500,000 |
(SOFR + 0.10%) | (a) | 0.15% | 01/03/22 | 08/19/22 | 1,300,000 | 1,300,000 |
(SOFR + 0.10%) | (a) | 0.15% | 01/03/22 | 09/09/22 | 800,000 | 800,000 |
FEDERAL NATIONAL MORTGAGE ASSOCIATION | ||||||
(SOFR + 0.35%) | (a) | 0.40% | 01/03/22 | 04/07/22 | 700,000 | 700,039 |
2.25% | 04/12/22 | 100,000 | 100,588 | |||
(SOFR + 0.39%) | (a) | 0.44% | 01/03/22 | 04/15/22 | 700,000 | 700,000 |
(SOFR + 0.24%) | (a) | 0.29% | 01/03/22 | 04/29/22 | 500,000 | 500,000 |
(SOFR + 0.20%) | (a) | 0.25% | 01/03/22 | 05/09/22 | 800,000 | 800,000 |
(SOFR + 0.19%) | (a) | 0.24% | 01/03/22 | 05/19/22 | 1,200,000 | 1,200,000 |
(SOFR + 0.19%) | (a) | 0.24% | 01/03/22 | 05/27/22 | 250,000 | 250,000 |
2.00% | 08/26/22 | 100,000 | 101,229 | |||
1.38% | 09/06/22 | 100,000 | 100,857 | |||
Total U.S. Government Agency Debt (Cost $20,658,061) | 20,658,061 | |||||
U.S. TREASURY DEBT 23.8% OF NET ASSETS | ||||||
UNITED STATES TREASURY | ||||||
(3 mo. US TBILL + 0.15%) | (a) | 0.24% | 01/03/22 | 01/31/22 | 1,250,000 | 1,250,033 |
1.38% | 01/31/22 | 1,700,000 | 1,701,701 | |||
1.50% | 01/31/22 | 2,100,000 | 2,102,258 | |||
2.50% | 02/15/22 | 800,000 | 802,278 | |||
1.88% | 02/28/22 | 2,700,000 | 2,707,495 | |||
2.38% | 03/15/22 | 1,900,000 | 1,908,511 | |||
1.75% | 03/31/22 | 1,800,000 | 1,807,099 | |||
1.88% | 03/31/22 | 800,000 | 803,442 | |||
2.25% | 04/15/22 | 900,000 | 905,453 | |||
0.11% | 04/26/22 | 1,400,000 | 1,399,539 | |||
(3 mo. US TBILL + 0.11%) | (a) | 0.20% | 01/03/22 | 04/30/22 | 1,400,000 | 1,400,363 |
1.88% | 04/30/22 | 800,000 | 804,568 | |||
0.13% | 05/03/22 | 1,600,000 | 1,599,334 | |||
0.13% | 05/31/22 | 700,000 | 700,076 | |||
1.75% | 05/31/22 | 500,000 | 503,371 | |||
1.88% | 05/31/22 | 1,300,000 | 1,309,237 | |||
0.11% | 06/09/22 | 200,000 | 199,908 | |||
0.13% | 06/30/22 | 200,000 | 199,979 | |||
1.75% | 06/30/22 | 200,000 | 201,639 | |||
0.09% | 07/14/22 | 1,000,000 | 999,520 | |||
0.13% | 07/31/22 | 500,000 | 500,140 | |||
(3 mo. US TBILL + 0.06%) | (a) | 0.14% | 01/03/22 | 07/31/22 | 2,800,000 | 2,799,961 |
1.88% | 07/31/22 | 700,000 | 707,227 | |||
2.00% | 07/31/22 | 500,000 | 505,520 | |||
0.11% | 08/11/22 | 600,000 | 599,615 | |||
1.50% | 08/15/22 | 2,500,000 | 2,521,882 | |||
0.13% | 08/31/22 | 1,400,000 | 1,400,450 | |||
1.63% | 08/31/22 | 1,200,000 | 1,211,622 | |||
1.88% | 08/31/22 | 600,000 | 607,091 | |||
1.50% | 09/15/22 | 2,300,000 | 2,322,729 |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
0.13% | 09/30/22 | 1,500,000 | 1,500,412 | |||
1.75% | 09/30/22 | 900,000 | 911,053 | |||
1.88% | 09/30/22 | 600,000 | 607,684 | |||
(3 mo. US TBILL + 0.06%) | (a) | 0.14% | 01/03/22 | 10/31/22 | 500,000 | 499,979 |
(3 mo. US TBILL + 0.05%) | (a) | 0.13% | 01/03/22 | 01/31/23 | 2,500,000 | 2,500,739 |
(3 mo. US TBILL + 0.03%) | (a) | 0.12% | 01/03/22 | 04/30/23 | 700,000 | 700,084 |
(3 mo. US TBILL + 0.03%) | (a) | 0.11% | 01/03/22 | 07/31/23 | 500,000 | 500,012 |
(3 mo. US TBILL + 0.04%) | (a) | 0.12% | 01/03/22 | 10/31/23 | 400,000 | 399,993 |
Total U.S. Treasury Debt (Cost $44,101,997) | 44,101,997 | |||||
VARIABLE RATE DEMAND NOTES 1.9% OF NET ASSETS | ||||||
ABAG FINANCE AUTH | ||||||
M/F HOUSING RB (CROSSING APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.07% | 01/07/22 | 300,000 | 300,000 | |
ALABAMA HFA | ||||||
M/F HOUSING RB (CHAPEL RIDGE APTS) SERIES 2005E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.20% | 01/07/22 | 100,000 | 100,000 | |
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH | ||||||
M/F HOUSING RB (BAY VISTA AT MEADOW PARK APTS) SERIES 2003NN-1 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.07% | 01/07/22 | 200,000 | 200,000 | |
M/F HOUSING RB (CROSSINGS WEST APTS) SERIES 2009E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.13% | 01/07/22 | 100,000 | 100,000 | |
M/F HOUSING RB (VARENNA ASSISTED LIVING APTS) SERIES 2006F (LOC: FEDERAL HOME LOAN BANKS) | (a)(b) | 0.13% | 01/07/22 | 100,000 | 100,000 | |
M/F HOUSING RB (WILSHIRE COURT APTS) SERIES 2003M (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.07% | 01/07/22 | 100,000 | 100,000 | |
EMERYVILLE SUCCESSOR REDEVELOPMENT AGENCY | ||||||
M/F HOUSING RB (BAY ST APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.13% | 01/07/22 | 300,000 | 300,000 | |
HARRIS CNTY HOUSING FINANCE CORP | ||||||
M/F HOUSING RB (LAFAYETTE VILLAGE APTS) SERIES 2006 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.07% | 01/07/22 | 100,000 | 100,000 | |
JACKSONVILLE HFA | ||||||
M/F HOUSING RB (HARTWOOD APTS) SERIES 2006 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.13% | 01/07/22 | 505,000 | 505,000 | |
LOUISIANA LOCAL GOVERNMENT ENVIRONMENTAL FACILITIES & COMMUNITY DEVELOPMENT AUTH | ||||||
RB (LOUISE S. MCGEHEE SCHOOL) SERIES 2010 (LOC: FEDERAL HOME LOAN BANKS) | (a)(b) | 0.15% | 01/07/22 | 270,000 | 270,000 | |
NEW YORK STATE HFA | ||||||
HOUSING RB (THEATRE ROW TOWER) SERIES 2000A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.10% | 01/07/22 | 100,000 | 100,000 | |
HOUSING RB SERIES 2005A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.10% | 01/07/22 | 200,000 | 200,000 |
Issuer | Footnotes | Rate | Effective Maturity | Maturity Date | Face Amount ($) | Value ($) |
ORANGE CNTY HFA | ||||||
M/F HOUSING RB (LANDINGS ON MILLENIA BLVD APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.15% | 01/07/22 | 100,000 | 100,000 | |
M/F HOUSING RB (LEE VISTA CLUB APTS) SERIES 2004A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.15% | 01/07/22 | 100,000 | 100,000 | |
SACRAMENTO CNTY HOUSING AUTH | ||||||
M/F HOUSING RB (LOGAN PARK APTS) SERIES 2007E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.14% | 01/07/22 | 300,000 | 300,000 | |
SAN JOSE | ||||||
M/F HOUSING RB (CINNABAR COMMONS) SERIES 2003C (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.07% | 01/07/22 | 100,000 | 100,000 | |
ST. TAMMANY PARISH DEVELOPMENT DISTRICT | ||||||
RB (BCS DEVELOPMENT) SERIES 2008 (LOC: FEDERAL HOME LOAN BANKS) | (a)(b) | 0.15% | 01/07/22 | 190,000 | 190,000 | |
TEXAS DEPT OF HOUSING & COMMUNITY AFFAIRS | ||||||
M/F HOUSING RB (COSTA IBIZA APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.16% | 01/07/22 | 100,000 | 100,000 | |
M/F HOUSING RB (TOWER RIDGE APTS) SERIES 2005 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION) | (a)(b) | 0.20% | 01/07/22 | 100,000 | 100,000 | |
M/F HOUSING REFUNDING RB (ALTA CULLEN APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION) | (a)(b) | 0.16% | 01/07/22 | 100,000 | 100,000 | |
Total Variable Rate Demand Notes (Cost $3,465,000) | 3,465,000 | |||||
INVESTMENT COMPANIES 0.0% OF NET ASSETS | ||||||
MONEY MARKET FUNDS 0.0% | ||||||
STATE STREET INSTITUTIONAL U.S. GOVERNMENT MONEY MARKET FUND, PREMIER CLASS | (c) | 0.03% | 45,600 | 45,600 | ||
Total Investment Companies (Cost $45,600) | 45,600 |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
REPURCHASE AGREEMENTS 63.0% OF NET ASSETS | ||||||
U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENTS* 46.0% | ||||||
BANK OF MONTREAL | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 4,000,017 | 4,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $4,120,018, 1.38% - 3.20%, due 02/01/31 - 01/15/62) | ||||||
BOFA SECURITIES INC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 20,000,083 | 20,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $20,600,001, 2.00%, due 01/01/37) | ||||||
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 15,000,063 | 15,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $15,450,065, 2.00%, due 01/20/51) |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
DAIWA CAPITAL MARKETS AMERICA INC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 8,000,033 | 8,000,000 | ||
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $8,180,865, 0.13% - 5.00%, due 09/30/22 - 12/20/51) | ||||||
DEUTSCHE BANK AG (NEW YORK BRANCH) | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 8,000,033 | 8,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $8,160,139, 2.88%, due 05/15/28) | ||||||
GOLDMAN SACHS & CO LLC | ||||||
Issued 12/28/21, repurchase date 01/04/22 | 0.06% | 01/04/22 | 3,000,035 | 3,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $3,060,000, 3.00% - 5.50%, due 12/01/30 - 12/20/51) | ||||||
Issued 12/29/21, repurchase date 01/05/22 | 0.06% | 01/05/22 | 2,000,023 | 2,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $2,040,000, 2.50% - 7.50%, due 03/01/23 - 05/01/49) | ||||||
JP MORGAN SECURITIES LLC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 10,000,042 | 10,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $10,300,002, 3.00%, due 07/15/48 - 11/01/51) | ||||||
MIZUHO SECURITIES USA LLC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 5,000,021 | 5,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $5,100,026, 1.25%, due 12/31/26) | ||||||
RBC DOMINION SECURITIES INC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 2,000,008 | 2,000,000 | ||
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $2,048,699, 0.25% - 4.50%, due 08/31/23 - 03/20/51) | ||||||
ROYAL BANK OF CANADA | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 8,000,033 | 8,000,000 | ||
(Collateralized by U.S. Government Agency Securities valued at $8,240,035, 1.31% - 4.50%, due 02/01/31 - 12/20/51) | ||||||
85,000,000 | ||||||
U.S. TREASURY REPURCHASE AGREEMENTS 17.0% | ||||||
BARCLAYS BANK PLC | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 2,506,525 | 2,506,515 | ||
(Collateralized by U.S. Treasury Securities valued at $2,556,658, 2.75%, due 08/31/25) | ||||||
CREDIT SUISSE AG (NEW YORK BRANCH) | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.05% | 01/03/22 | 20,000,083 | 20,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $20,400,101, 0.12% - 1.25%, due 10/31/23 - 12/31/26) | ||||||
FICC - BANK OF NEW YORK | ||||||
Issued 12/31/21, repurchase date 01/03/22 | 0.06% | 01/03/22 | 4,000,020 | 4,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $4,080,026, 0.13%, due 05/31/22) |
ISSUER | FOOTNOTES | RATE | EFFECTIVE MATURITY | MATURITY DATE | MATURITY AMOUNT ($) | VALUE ($) |
Issued 12/30/21, repurchase date 01/06/22 | 0.06% | 01/06/22 | 2,000,023 | 2,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $2,636,732, 1.00%, due 12/15/24) | ||||||
JP MORGAN SECURITIES LLC | ||||||
Issued 12/30/21, repurchase date 01/06/22 | 0.05% | 01/06/22 | 3,000,029 | 3,000,000 | ||
(Collateralized by U.S. Treasury Securities valued at $3,060,008, 0.13% - 7.25%, due 01/15/22 - 08/15/22) | ||||||
31,506,515 | ||||||
Total Repurchase Agreements (Cost $116,506,515) | 116,506,515 | |||||
Total Investments in Securities (Cost $184,777,173) | 184,777,173 |
* | Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities. |
(a) | Variable rate security; rate shown is effective rate at period end. |
(b) | VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
(c) | The rate shown is the 7-day yield. |
EFFR — | Effective Federal Funds Rate is published daily by the Federal Reserve Bank of New York and is based on the interest rate financial institutions charge each other for overnight funds. |
FICC — | Fixed Income Clearing Corp |
HFA — | Housing finance agency/authority |
LOC — | Letter of credit |
M/F — | Multi-family |
RB — | Revenue bond |
SIFMA — | Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics. |
SOFR — | Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities. |
US TBILL — | The reference rate is the weekly auction stop for the U.S. Treasury Bill. |
VRDN — | Variable rate demand note |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
U.S. Government Agency Debt1 | $— | $20,658,061 | $— | $20,658,061 |
U.S. Treasury Debt1 | — | 44,101,997 | — | 44,101,997 |
Variable Rate Demand Notes1 | — | 3,465,000 | — | 3,465,000 |
Investment Companies1 | 45,600 | — | — | 45,600 |
Repurchase Agreements1 | — | 116,506,515 | — | 116,506,515 |
Total | $45,600 | $184,731,573 | $— | $184,777,173 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at cost and value - unaffiliated (Note 2a) | $68,270,658 | |
Repurchase agreements, at cost and value — unaffiliated (Note 2a) | 116,506,515 | |
Receivables: | ||
Fund shares sold | 1,798,543 | |
Interest | 161,407 | |
Prepaid expenses | + | 426 |
Total assets | 186,737,549 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,599,334 | |
Fund shares redeemed | 122,977 | |
Independent trustees’ fees | 73 | |
Accrued expenses | + | 99,100 |
Total liabilities | 1,821,484 | |
Net assets | $184,916,065 | |
Net Assets by Source | ||
Capital received from investors | $184,869,469 | |
Total distributable earnings | + | 46,596 |
Net assets | $184,916,065 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$184,916,065 | 184,916,294 | $1.00 | ||
For the period January 1, 2021 through December 31, 2021 | ||
Investment Income | ||
Interest received from securities - unaffiliated | $220,024 | |
Expenses | ||
Investment adviser and administrator fees | 351,411 | |
Portfolio accounting fees | 38,543 | |
Custodian fees | 35,646 | |
Professional fees | 34,586 | |
Shareholder reports | 24,159 | |
Independent trustees’ fees | 15,643 | |
Transfer agent fees | 1,949 | |
Other expenses | + | 4,831 |
Total expenses | 506,768 | |
Expense reduction by investment adviser and its affiliates | – | 398,609 |
Net expenses | – | 108,159 |
Net investment income | 111,865 | |
REALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - unaffiliated | 880 | |
Increase in net assets resulting from operations | $112,745 |
OPERATIONS | |||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||
Net investment income | $111,865 | $458,260 | |
Net realized gains | + | 880 | 13 |
Increase in net assets from operations | $112,745 | $458,273 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($111,865) | ($458,260) | |
TRANSACTIONS IN FUND SHARES* | |||
Shares sold | 151,802,828 | 219,731,996 | |
Shares reinvested | 111,865 | 458,260 | |
Shares redeemed | + | (152,073,454) | (183,969,281) |
Net transactions in fund shares | (158,761) | 36,220,975 | |
NET ASSETS | |||
Beginning of period | $185,073,946 | $148,852,958 | |
Total increase (decrease) | + | (157,881) | 36,220,988 |
End of period | $184,916,065 | $185,073,946 |
* | Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars. |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
5. Board of Trustees: |
UNDISTRIBUTED ORDINARY INCOME | UNDISTRIBUTED LONG-TERM CAPITAL GAINS | NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | TOTAL |
$896 | $100 | $45,600 | $46,596 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
ORDINARY INCOME | ORDINARY INCOME |
$111,865 | $458,260 |
8. Subsequent Events: |
Denver, Colorado
February 17, 2022
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 103 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Trust; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present) and Chief Investment Officer (Apr. 2011 – present), Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
* | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process, portfolio management and implementation, and development of investment strategies for passive equity Schwab Funds and Schwab ETFs. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
Jeremy Brown, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
Ferian Juwono, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
Sabya Sinha, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2015, Mr. Sinha spent a year at F-Squared Investments on the product development and analytics team. Prior to F-Squared, he worked at IndexIQ Advisors as a senior index portfolio manager for three years and for Bank of America’s Columbia Management subsidiary as a portfolio manager for three years. Mr. Sinha also spent time as a software consultant at DPM Mellon, LLC and an equity trader at Jane Street Capital. |
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Fund: Schwab S&P 500 Index Portfolio (11/01/96) | 28.67% | 18.42% | 16.39% |
S&P 500® Index | 28.71% | 18.47% | 16.55% |
Fund Category: Morningstar Large-Cap Blend2 | 26.94% | 17.18% | 15.64% |
Fund Expense Ratio3: 0.03% |
1 | Fund performance does not reflect the additional fees and expenses imposed by the insurance company under the variable insurance product contract. If those contract fees and expenses were included, the performance would be less than that shown. Please refer to the variable insurance product prospectus for a complete listing of these expenses. |
2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
3 | As stated in the prospectus. |
Number of Holdings | 508 |
Weighted Average Market Cap ($ x 1,000,000) | $674,287 |
Price/Earnings Ratio (P/E) | 25.5 |
Price/Book Ratio (P/B) | 4.7 |
Portfolio Turnover Rate | 13% |
1 | Excludes derivatives. |
2 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
3 | This list is not a recommendation of any security by the investment adviser. |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 7/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 12/31/21 | EXPENSES PAID DURING PERIOD 7/1/21-12/31/212 | |
Schwab S&P 500 Index Portfolio | ||||
Actual Return | 0.03% | $1,000.00 | $1,116.70 | $0.16 |
Hypothetical 5% Return | 0.03% | $1,000.00 | $1,025.05 | $0.15 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by the 365 days of the fiscal year. |
1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | 1/1/17– 12/31/17 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $55.41 | $47.48 | $37.10 | $39.51 | $33.01 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.85 | 0.96 | 0.91 | 0.82 | 0.71 | |
Net realized and unrealized gains (losses) | 14.94 | 7.58 | 10.64 | (2.51) | 6.39 | |
Total from investment operations | 15.79 | 8.54 | 11.55 | (1.69) | 7.10 | |
Less distributions: | ||||||
Distributions from net investment income | (0.79) | (0.53) | (0.78) | (0.68) | (0.59) | |
Distributions from net realized gains | — | (0.08) | (0.39) | (0.04) | (0.01) | |
Total distributions | (0.79) | (0.61) | (1.17) | (0.72) | (0.60) | |
Net asset value at end of period | $70.41 | $55.41 | $47.48 | $37.10 | $39.51 | |
Total return | 28.67% | 18.28% | 31.48% | (4.40%) | 21.72% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.03% | 0.03% | 0.03% | 0.03% | 0.06% 2 | |
Net operating expenses | N/A | N/A | N/A | N/A 3 | 0.06% 2 | |
Net investment income (loss) | 1.35% | 2.03% | 2.13% | 2.03% | 1.97% | |
Portfolio turnover rate | 13% | 14% | 6% | 5% | 3% | |
Net assets, end of period (x 1,000,000) | $1,468 | $947 | $588 | $340 | $346 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 12/31/17 is a blended ratio. |
3 | Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.3% OF NET ASSETS | ||
Automobiles & Components 2.7% | ||
Aptiv plc * | 9,768 | 1,611,232 |
BorgWarner, Inc. | 8,655 | 390,081 |
Ford Motor Co. | 141,738 | 2,943,898 |
General Motors Co. * | 52,423 | 3,073,560 |
Tesla, Inc. * | 29,372 | 31,039,742 |
39,058,513 | ||
Banks 3.9% | ||
Bank of America Corp. | 260,052 | 11,569,713 |
Citigroup, Inc. | 71,645 | 4,326,641 |
Citizens Financial Group, Inc. | 15,388 | 727,083 |
Comerica, Inc. | 4,735 | 411,945 |
Fifth Third Bancorp | 24,689 | 1,075,206 |
First Republic Bank | 6,473 | 1,336,739 |
Huntington Bancshares, Inc. | 52,228 | 805,356 |
JPMorgan Chase & Co. | 106,709 | 16,897,370 |
KeyCorp | 33,613 | 777,469 |
M&T Bank Corp. | 4,647 | 713,686 |
People's United Financial, Inc. | 15,452 | 275,355 |
Regions Financial Corp. | 34,420 | 750,356 |
Signature Bank | 2,189 | 708,076 |
SVB Financial Group * | 2,119 | 1,437,191 |
The PNC Financial Services Group, Inc. | 15,261 | 3,060,136 |
Truist Financial Corp. | 48,205 | 2,822,403 |
U.S. Bancorp | 48,725 | 2,736,883 |
Wells Fargo & Co. | 143,972 | 6,907,776 |
Zions Bancorp NA | 5,650 | 356,854 |
57,696,238 | ||
Capital Goods 5.1% | ||
3M Co. | 20,807 | 3,695,947 |
A.O. Smith Corp. | 4,809 | 412,853 |
Allegion plc | 3,238 | 428,841 |
AMETEK, Inc. | 8,353 | 1,228,225 |
Carrier Global Corp. | 31,292 | 1,697,278 |
Caterpillar, Inc. | 19,533 | 4,038,253 |
Cummins, Inc. | 5,164 | 1,126,475 |
Deere & Co. | 10,188 | 3,493,363 |
Dover Corp. | 5,199 | 944,138 |
Eaton Corp. plc | 14,393 | 2,487,398 |
Emerson Electric Co. | 21,586 | 2,006,850 |
Fastenal Co. | 20,768 | 1,330,398 |
Fortive Corp. | 12,947 | 987,727 |
Fortune Brands Home & Security, Inc. | 4,901 | 523,917 |
Generac Holdings, Inc. * | 2,278 | 801,674 |
General Dynamics Corp. | 8,368 | 1,744,477 |
General Electric Co. | 39,653 | 3,746,019 |
Honeywell International, Inc. | 24,858 | 5,183,142 |
Howmet Aerospace, Inc. | 13,885 | 441,960 |
Huntington Ingalls Industries, Inc. | 1,446 | 270,026 |
IDEX Corp. | 2,745 | 648,698 |
Illinois Tool Works, Inc. | 10,313 | 2,545,248 |
Ingersoll Rand, Inc. | 14,719 | 910,665 |
Johnson Controls International plc | 25,590 | 2,080,723 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
L3Harris Technologies, Inc. | 7,085 | 1,510,805 |
Lockheed Martin Corp. | 8,862 | 3,149,644 |
Masco Corp. | 8,811 | 618,708 |
Northrop Grumman Corp. | 5,381 | 2,082,824 |
Otis Worldwide Corp. | 15,337 | 1,335,393 |
PACCAR, Inc. | 12,536 | 1,106,427 |
Parker-Hannifin Corp. | 4,662 | 1,483,076 |
Pentair plc | 5,975 | 436,354 |
Quanta Services, Inc. | 5,146 | 590,040 |
Raytheon Technologies Corp. | 54,047 | 4,651,285 |
Rockwell Automation, Inc. | 4,188 | 1,460,984 |
Roper Technologies, Inc. | 3,809 | 1,873,495 |
Snap-on, Inc. | 1,940 | 417,837 |
Stanley Black & Decker, Inc. | 5,887 | 1,110,406 |
Textron, Inc. | 7,960 | 614,512 |
The Boeing Co. * | 19,948 | 4,015,931 |
Trane Technologies plc | 8,577 | 1,732,811 |
TransDigm Group, Inc. * | 1,890 | 1,202,569 |
United Rentals, Inc. * | 2,614 | 868,606 |
W.W. Grainger, Inc. | 1,563 | 810,009 |
Westinghouse Air Brake Technologies Corp. | 6,746 | 621,374 |
Xylem, Inc. | 6,511 | 780,799 |
75,248,184 | ||
Commercial & Professional Services 0.9% | ||
Cintas Corp. | 3,174 | 1,406,622 |
Copart, Inc. * | 7,706 | 1,168,384 |
Equifax, Inc. | 4,405 | 1,289,740 |
IHS Markit Ltd. | 14,402 | 1,914,314 |
Jacobs Engineering Group, Inc. | 4,706 | 655,216 |
Leidos Holdings, Inc. | 5,067 | 450,456 |
Nielsen Holdings plc | 12,955 | 265,707 |
Republic Services, Inc. | 7,556 | 1,053,684 |
Robert Half International, Inc. | 4,020 | 448,310 |
Rollins, Inc. | 8,174 | 279,633 |
Verisk Analytics, Inc. | 5,819 | 1,330,980 |
Waste Management, Inc. | 13,896 | 2,319,242 |
12,582,288 | ||
Consumer Durables & Apparel 1.1% | ||
D.R. Horton, Inc. | 11,769 | 1,276,348 |
Garmin Ltd. | 5,486 | 747,029 |
Hasbro, Inc. | 4,682 | 476,534 |
Lennar Corp., Class A | 9,816 | 1,140,226 |
Mohawk Industries, Inc. * | 1,981 | 360,898 |
Newell Brands, Inc. | 13,671 | 298,575 |
NIKE, Inc., Class B | 46,139 | 7,689,987 |
NVR, Inc. * | 118 | 697,247 |
PulteGroup, Inc. | 9,141 | 522,499 |
PVH Corp. | 2,566 | 273,664 |
Ralph Lauren Corp. | 1,760 | 209,194 |
Tapestry, Inc. | 9,935 | 403,361 |
Under Armour, Inc., Class A * | 6,812 | 144,346 |
Under Armour, Inc., Class C * | 7,766 | 140,099 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
VF Corp. | 11,772 | 861,946 |
Whirlpool Corp. | 2,193 | 514,609 |
15,756,562 | ||
Consumer Services 1.9% | ||
Booking Holdings, Inc. * | 1,483 | 3,558,058 |
Caesars Entertainment, Inc. * | 7,719 | 721,958 |
Carnival Corp. * | 29,050 | 584,486 |
Chipotle Mexican Grill, Inc. * | 1,016 | 1,776,222 |
Darden Restaurants, Inc. | 4,686 | 705,899 |
Domino's Pizza, Inc. | 1,314 | 741,530 |
Expedia Group, Inc. * | 5,272 | 952,756 |
Hilton Worldwide Holdings, Inc. * | 10,064 | 1,569,883 |
Las Vegas Sands Corp. * | 12,415 | 467,301 |
Marriott International, Inc., Class A * | 9,878 | 1,632,241 |
McDonald's Corp. | 26,981 | 7,232,797 |
MGM Resorts International | 14,054 | 630,744 |
Norwegian Cruise Line Holdings Ltd. * | 13,364 | 277,169 |
Penn National Gaming, Inc. * | 5,998 | 310,996 |
Royal Caribbean Cruises Ltd. * | 8,097 | 622,659 |
Starbucks Corp. | 42,607 | 4,983,741 |
Wynn Resorts Ltd. * | 3,800 | 323,152 |
Yum! Brands, Inc. | 10,583 | 1,469,555 |
28,561,147 | ||
Diversified Financials 4.9% | ||
American Express Co. | 22,655 | 3,706,358 |
Ameriprise Financial, Inc. | 4,043 | 1,219,611 |
Berkshire Hathaway, Inc., Class B * | 66,129 | 19,772,571 |
BlackRock, Inc. | 5,157 | 4,721,543 |
Capital One Financial Corp. | 15,369 | 2,229,888 |
Cboe Global Markets, Inc. | 3,852 | 502,301 |
CME Group, Inc. | 12,979 | 2,965,182 |
Discover Financial Services | 10,582 | 1,222,856 |
FactSet Research Systems, Inc. | 1,360 | 660,974 |
Franklin Resources, Inc. | 10,152 | 339,990 |
Intercontinental Exchange, Inc. | 20,348 | 2,782,996 |
Invesco Ltd. | 12,338 | 284,021 |
MarketAxess Holdings, Inc. | 1,373 | 564,674 |
Moody's Corp. | 5,841 | 2,281,378 |
Morgan Stanley | 51,839 | 5,088,516 |
MSCI, Inc. | 2,978 | 1,824,591 |
Nasdaq, Inc. | 4,230 | 888,342 |
Northern Trust Corp. | 7,504 | 897,553 |
Raymond James Financial, Inc. | 6,694 | 672,078 |
S&P Global, Inc. | 8,703 | 4,107,207 |
State Street Corp. | 13,207 | 1,228,251 |
Synchrony Financial | 19,761 | 916,713 |
T. Rowe Price Group, Inc. | 8,119 | 1,596,520 |
The Bank of New York Mellon Corp. | 27,444 | 1,593,947 |
The Charles Schwab Corp. (a) | 54,130 | 4,552,333 |
The Goldman Sachs Group, Inc. | 12,258 | 4,689,298 |
71,309,692 | ||
Energy 2.7% | ||
APA Corp. | 13,118 | 352,743 |
Baker Hughes Co. | 31,560 | 759,334 |
Chevron Corp. | 69,604 | 8,168,029 |
ConocoPhillips | 47,626 | 3,437,645 |
Coterra Energy, Inc. | 29,378 | 558,182 |
Devon Energy Corp. | 22,736 | 1,001,521 |
Diamondback Energy, Inc. | 6,150 | 663,277 |
EOG Resources, Inc. | 21,127 | 1,876,711 |
Exxon Mobil Corp. | 152,866 | 9,353,870 |
Halliburton Co. | 32,323 | 739,227 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Hess Corp. | 9,955 | 736,969 |
Kinder Morgan, Inc. | 70,402 | 1,116,576 |
Marathon Oil Corp. | 28,114 | 461,632 |
Marathon Petroleum Corp. | 22,226 | 1,422,242 |
Occidental Petroleum Corp. | 32,040 | 928,839 |
ONEOK, Inc. | 16,101 | 946,095 |
Phillips 66 | 15,821 | 1,146,390 |
Pioneer Natural Resources Co. | 8,198 | 1,491,052 |
Schlumberger Ltd. | 50,649 | 1,516,937 |
The Williams Cos., Inc. | 43,867 | 1,142,297 |
Valero Energy Corp. | 14,762 | 1,108,774 |
38,928,342 | ||
Food & Staples Retailing 1.4% | ||
Costco Wholesale Corp. | 15,954 | 9,057,086 |
Sysco Corp. | 18,510 | 1,453,961 |
The Kroger Co. | 24,436 | 1,105,973 |
Walgreens Boots Alliance, Inc. | 25,942 | 1,353,135 |
Walmart, Inc. | 51,351 | 7,429,976 |
20,400,131 | ||
Food, Beverage & Tobacco 2.9% | ||
Altria Group, Inc. | 66,327 | 3,143,236 |
Archer-Daniels-Midland Co. | 20,201 | 1,365,386 |
Brown-Forman Corp., Class B | 6,598 | 480,730 |
Campbell Soup Co. | 7,308 | 317,606 |
Conagra Brands, Inc. | 17,319 | 591,444 |
Constellation Brands, Inc., Class A | 5,931 | 1,488,503 |
General Mills, Inc. | 21,871 | 1,473,668 |
Hormel Foods Corp. | 10,189 | 497,325 |
Kellogg Co. | 9,236 | 594,983 |
Lamb Weston Holdings, Inc. | 5,275 | 334,329 |
McCormick & Co, Inc. | 9,004 | 869,876 |
Molson Coors Beverage Co., Class B | 6,803 | 315,319 |
Mondelez International, Inc., Class A | 50,370 | 3,340,035 |
Monster Beverage Corp. * | 13,566 | 1,302,879 |
PepsiCo, Inc. | 49,925 | 8,672,472 |
Philip Morris International, Inc. | 56,215 | 5,340,425 |
The Coca-Cola Co. | 140,369 | 8,311,248 |
The Hershey Co. | 5,249 | 1,015,524 |
The JM Smucker Co. | 3,913 | 531,464 |
The Kraft Heinz Co. | 25,633 | 920,225 |
Tyson Foods, Inc., Class A | 10,645 | 927,818 |
41,834,495 | ||
Health Care Equipment & Services 5.8% | ||
Abbott Laboratories | 63,849 | 8,986,108 |
ABIOMED, Inc. * | 1,643 | 590,116 |
Align Technology, Inc. * | 2,648 | 1,740,213 |
AmerisourceBergen Corp. | 5,402 | 717,872 |
Anthem, Inc. | 8,764 | 4,062,465 |
Baxter International, Inc. | 18,078 | 1,551,816 |
Becton Dickinson & Co. | 10,370 | 2,607,848 |
Boston Scientific Corp. * | 51,454 | 2,185,766 |
Cardinal Health, Inc. | 10,173 | 523,808 |
Centene Corp. * | 21,070 | 1,736,168 |
Cerner Corp. | 10,623 | 986,558 |
Cigna Corp. | 11,967 | 2,747,982 |
CVS Health Corp. | 47,665 | 4,917,121 |
DaVita, Inc. * | 2,354 | 267,791 |
Dentsply Sirona, Inc. | 7,893 | 440,350 |
DexCom, Inc. * | 3,500 | 1,879,325 |
Edwards Lifesciences Corp. * | 22,544 | 2,920,575 |
HCA Healthcare, Inc. | 8,647 | 2,221,587 |
Henry Schein, Inc. * | 5,007 | 388,193 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Hologic, Inc. * | 9,152 | 700,677 |
Humana, Inc. | 4,641 | 2,152,774 |
IDEXX Laboratories, Inc. * | 3,062 | 2,016,205 |
Intuitive Surgical, Inc. * | 12,890 | 4,631,377 |
Laboratory Corp. of America Holdings * | 3,455 | 1,085,596 |
McKesson Corp. | 5,513 | 1,370,366 |
Medtronic plc | 48,594 | 5,027,049 |
Quest Diagnostics, Inc. | 4,429 | 766,261 |
ResMed, Inc. | 5,262 | 1,370,646 |
STERIS plc | 3,612 | 879,197 |
Stryker Corp. | 12,123 | 3,241,933 |
Teleflex, Inc. | 1,692 | 555,788 |
The Cooper Cos., Inc. | 1,780 | 745,713 |
UnitedHealth Group, Inc. | 34,009 | 17,077,279 |
Universal Health Services, Inc., Class B | 2,639 | 342,173 |
Zimmer Biomet Holdings, Inc. | 7,543 | 958,263 |
84,392,959 | ||
Household & Personal Products 1.6% | ||
Church & Dwight Co., Inc. | 8,816 | 903,640 |
Colgate-Palmolive Co. | 30,429 | 2,596,811 |
Kimberly-Clark Corp. | 12,156 | 1,737,336 |
The Clorox Co. | 4,436 | 773,461 |
The Estee Lauder Cos., Inc., Class A | 8,367 | 3,097,463 |
The Procter & Gamble Co. | 87,381 | 14,293,784 |
23,402,495 | ||
Insurance 1.8% | ||
Aflac, Inc. | 21,975 | 1,283,120 |
American International Group, Inc. | 29,982 | 1,704,777 |
Aon plc, Class A | 7,956 | 2,391,255 |
Arthur J. Gallagher & Co. | 7,485 | 1,269,980 |
Assurant, Inc. | 2,056 | 320,448 |
Brown & Brown, Inc. | 8,464 | 594,850 |
Chubb Ltd. | 15,554 | 3,006,744 |
Cincinnati Financial Corp. | 5,412 | 616,589 |
Everest Re Group Ltd. | 1,422 | 389,514 |
Globe Life, Inc. | 3,354 | 314,337 |
Lincoln National Corp. | 6,134 | 418,707 |
Loews Corp. | 7,234 | 417,836 |
Marsh & McLennan Cos., Inc. | 18,231 | 3,168,912 |
MetLife, Inc. | 25,818 | 1,613,367 |
Principal Financial Group, Inc. | 8,901 | 643,809 |
Prudential Financial, Inc. | 13,648 | 1,477,260 |
The Allstate Corp. | 10,350 | 1,217,677 |
The Hartford Financial Services Group, Inc. | 12,290 | 848,502 |
The Progressive Corp. | 21,126 | 2,168,584 |
The Travelers Cos., Inc. | 8,883 | 1,389,568 |
W.R. Berkley Corp. | 5,040 | 415,246 |
Willis Towers Watson plc | 4,499 | 1,068,467 |
26,739,549 | ||
Materials 2.5% | ||
Air Products and Chemicals, Inc. | 7,993 | 2,431,950 |
Albemarle Corp. | 4,224 | 987,444 |
Amcor plc | 55,361 | 664,886 |
Avery Dennison Corp. | 2,990 | 647,544 |
Ball Corp. | 11,695 | 1,125,878 |
Celanese Corp., Series A | 3,931 | 660,644 |
CF Industries Holdings, Inc. | 7,745 | 548,191 |
Corteva, Inc. | 26,321 | 1,244,457 |
Dow, Inc. | 26,706 | 1,514,764 |
DuPont de Nemours, Inc. | 18,708 | 1,511,232 |
Eastman Chemical Co. | 4,854 | 586,897 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Ecolab, Inc. | 9,002 | 2,111,779 |
FMC Corp. | 4,577 | 502,967 |
Freeport-McMoRan, Inc. | 53,024 | 2,212,692 |
International Flavors & Fragrances, Inc. | 9,190 | 1,384,473 |
International Paper Co. | 13,982 | 656,874 |
Linde plc | 18,507 | 6,411,380 |
LyondellBasell Industries, Class A | 9,492 | 875,447 |
Martin Marietta Materials, Inc. | 2,252 | 992,051 |
Newmont Corp. | 28,793 | 1,785,742 |
Nucor Corp. | 10,320 | 1,178,028 |
Packaging Corp. of America | 3,430 | 466,995 |
PPG Industries, Inc. | 8,572 | 1,478,156 |
Sealed Air Corp. | 5,349 | 360,897 |
The Mosaic Co. | 13,375 | 525,504 |
The Sherwin-Williams Co. | 8,710 | 3,067,314 |
Vulcan Materials Co. | 4,792 | 994,723 |
Westrock Co. | 9,641 | 427,675 |
37,356,584 | ||
Media & Entertainment 8.9% | ||
Activision Blizzard, Inc. | 28,124 | 1,871,090 |
Alphabet, Inc., Class A * | 10,862 | 31,467,648 |
Alphabet, Inc., Class C * | 10,096 | 29,213,685 |
Charter Communications, Inc., Class A * | 4,467 | 2,912,350 |
Comcast Corp., Class A | 164,635 | 8,286,080 |
Discovery, Inc., Class A *(b) | 6,110 | 143,829 |
Discovery, Inc., Class C * | 10,967 | 251,144 |
DISH Network Corp., Class A * | 9,017 | 292,511 |
Electronic Arts, Inc. | 10,212 | 1,346,963 |
Fox Corp., Class A | 11,567 | 426,822 |
Fox Corp., Class B | 5,310 | 181,974 |
Live Nation Entertainment, Inc. * | 4,878 | 583,848 |
Match Group, Inc. * | 10,222 | 1,351,860 |
Meta Platforms, Inc., Class A * | 85,441 | 28,738,080 |
Netflix, Inc. * | 15,994 | 9,635,425 |
News Corp., Class A | 14,192 | 316,624 |
News Corp., Class B | 4,397 | 98,933 |
Omnicom Group, Inc. | 7,675 | 562,347 |
Take-Two Interactive Software, Inc. * | 4,163 | 739,848 |
The Interpublic Group of Cos., Inc. | 14,218 | 532,464 |
The Walt Disney Co. * | 65,613 | 10,162,798 |
Twitter, Inc. * | 28,872 | 1,247,848 |
ViacomCBS, Inc., Class B | 21,907 | 661,153 |
131,025,324 | ||
Pharmaceuticals, Biotechnology & Life Sciences 7.4% | ||
AbbVie, Inc. | 63,835 | 8,643,259 |
Agilent Technologies, Inc. | 10,931 | 1,745,134 |
Amgen, Inc. | 20,338 | 4,575,440 |
Biogen, Inc. * | 5,304 | 1,272,536 |
Bio-Rad Laboratories, Inc., Class A * | 780 | 589,345 |
Bio-Techne Corp. | 1,419 | 734,105 |
Bristol-Myers Squibb Co. | 80,146 | 4,997,103 |
Catalent, Inc. * | 6,181 | 791,353 |
Charles River Laboratories International, Inc. * | 1,822 | 686,493 |
Danaher Corp. | 22,964 | 7,555,386 |
Eli Lilly & Co. | 28,669 | 7,918,951 |
Gilead Sciences, Inc. | 45,292 | 3,288,652 |
Illumina, Inc. * | 5,644 | 2,147,203 |
Incyte Corp. * | 6,780 | 497,652 |
IQVIA Holdings, Inc. * | 6,898 | 1,946,202 |
Johnson & Johnson | 95,057 | 16,261,401 |
Merck & Co., Inc. | 91,207 | 6,990,104 |
Mettler-Toledo International, Inc. * | 830 | 1,408,684 |
Moderna, Inc. * | 12,737 | 3,234,943 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Organon & Co. | 9,155 | 278,770 |
PerkinElmer, Inc. | 4,557 | 916,230 |
Pfizer, Inc. | 202,670 | 11,967,664 |
Regeneron Pharmaceuticals, Inc. * | 3,817 | 2,410,512 |
Thermo Fisher Scientific, Inc. | 14,228 | 9,493,491 |
Vertex Pharmaceuticals, Inc. * | 9,181 | 2,016,148 |
Viatris, Inc. | 43,666 | 590,801 |
Waters Corp. * | 2,204 | 821,210 |
West Pharmaceutical Services, Inc. | 2,675 | 1,254,602 |
Zoetis, Inc. | 17,083 | 4,168,765 |
109,202,139 | ||
Real Estate 2.7% | ||
Alexandria Real Estate Equities, Inc. | 5,091 | 1,135,089 |
American Tower Corp. | 16,444 | 4,809,870 |
AvalonBay Communities, Inc. | 5,046 | 1,274,569 |
Boston Properties, Inc. | 5,133 | 591,219 |
CBRE Group, Inc., Class A * | 12,085 | 1,311,343 |
Crown Castle International Corp. | 15,607 | 3,257,805 |
Digital Realty Trust, Inc. | 10,248 | 1,812,564 |
Duke Realty Corp. | 13,752 | 902,681 |
Equinix, Inc. | 3,251 | 2,749,826 |
Equity Residential | 12,323 | 1,115,232 |
Essex Property Trust, Inc. | 2,350 | 827,741 |
Extra Space Storage, Inc. | 4,835 | 1,096,240 |
Federal Realty Investment Trust | 2,528 | 344,617 |
Healthpeak Properties, Inc. | 19,461 | 702,348 |
Host Hotels & Resorts, Inc. * | 25,783 | 448,366 |
Iron Mountain, Inc. | 10,454 | 547,058 |
Kimco Realty Corp. | 22,260 | 548,709 |
Mid-America Apartment Communities, Inc. | 4,157 | 953,782 |
Prologis, Inc. | 26,697 | 4,494,707 |
Public Storage | 5,509 | 2,063,451 |
Realty Income Corp. | 20,426 | 1,462,297 |
Regency Centers Corp. | 5,563 | 419,172 |
SBA Communications Corp. | 3,928 | 1,528,071 |
Simon Property Group, Inc. | 11,865 | 1,895,671 |
UDR, Inc. | 10,492 | 629,415 |
Ventas, Inc. | 14,412 | 736,741 |
Vornado Realty Trust | 5,741 | 240,318 |
Welltower, Inc. | 15,718 | 1,348,133 |
Weyerhaeuser Co. | 27,047 | 1,113,795 |
40,360,830 | ||
Retailing 6.8% | ||
Advance Auto Parts, Inc. | 2,275 | 545,727 |
Amazon.com, Inc. * | 15,748 | 52,509,186 |
AutoZone, Inc. * | 757 | 1,586,967 |
Bath & Body Works, Inc. | 9,546 | 666,215 |
Best Buy Co., Inc. | 7,993 | 812,089 |
CarMax, Inc. * | 5,854 | 762,366 |
Dollar General Corp. | 8,424 | 1,986,632 |
Dollar Tree, Inc. * | 8,121 | 1,141,163 |
eBay, Inc. | 22,604 | 1,503,166 |
Etsy, Inc. * | 4,578 | 1,002,307 |
Genuine Parts Co. | 5,143 | 721,049 |
LKQ Corp. | 9,684 | 581,331 |
Lowe's Cos., Inc. | 25,002 | 6,462,517 |
O'Reilly Automotive, Inc. * | 2,433 | 1,718,258 |
Pool Corp. | 1,448 | 819,568 |
Ross Stores, Inc. | 12,832 | 1,466,441 |
Target Corp. | 17,622 | 4,078,436 |
The Gap, Inc. | 7,741 | 136,629 |
The Home Depot, Inc. | 38,107 | 15,814,786 |
The TJX Cos., Inc. | 43,421 | 3,296,522 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Tractor Supply Co. | 4,110 | 980,646 |
Ulta Beauty, Inc. * | 1,963 | 809,423 |
99,401,424 | ||
Semiconductors & Semiconductor Equipment 6.3% | ||
Advanced Micro Devices, Inc. * | 43,605 | 6,274,759 |
Analog Devices, Inc. | 19,405 | 3,410,817 |
Applied Materials, Inc. | 32,603 | 5,130,408 |
Broadcom, Inc. | 14,863 | 9,889,989 |
Enphase Energy, Inc. * | 4,872 | 891,284 |
Intel Corp. | 146,850 | 7,562,775 |
KLA Corp. | 5,475 | 2,354,852 |
Lam Research Corp. | 5,084 | 3,656,159 |
Microchip Technology, Inc. | 20,036 | 1,744,334 |
Micron Technology, Inc. | 40,391 | 3,762,422 |
Monolithic Power Systems, Inc. | 1,565 | 772,061 |
NVIDIA Corp. | 90,270 | 26,549,310 |
NXP Semiconductor N.V. | 9,602 | 2,187,143 |
Qorvo, Inc. * | 3,979 | 622,276 |
QUALCOMM, Inc. | 40,441 | 7,395,446 |
Skyworks Solutions, Inc. | 5,963 | 925,100 |
SolarEdge Technologies, Inc. * | 1,896 | 531,961 |
Teradyne, Inc. | 5,886 | 962,537 |
Texas Instruments, Inc. | 33,346 | 6,284,721 |
Xilinx, Inc. | 8,951 | 1,897,880 |
92,806,234 | ||
Software & Services 13.9% | ||
Accenture plc, Class A | 22,807 | 9,454,642 |
Adobe, Inc. * | 17,180 | 9,742,091 |
Akamai Technologies, Inc. * | 5,866 | 686,557 |
ANSYS, Inc. * | 3,151 | 1,263,929 |
Autodesk, Inc. * | 7,939 | 2,232,367 |
Automatic Data Processing, Inc. | 15,215 | 3,751,715 |
Broadridge Financial Solutions, Inc. | 4,209 | 769,489 |
Cadence Design Systems, Inc. * | 10,007 | 1,864,804 |
Ceridian HCM Holding, Inc. * | 4,918 | 513,734 |
Citrix Systems, Inc. | 4,503 | 425,939 |
Cognizant Technology Solutions Corp., Class A | 18,965 | 1,682,575 |
DXC Technology Co. * | 9,109 | 293,219 |
EPAM Systems, Inc. * | 2,048 | 1,368,986 |
Fidelity National Information Services, Inc. | 21,988 | 2,399,990 |
Fiserv, Inc. * | 21,456 | 2,226,918 |
FleetCor Technologies, Inc. * | 2,932 | 656,299 |
Fortinet, Inc. * | 4,900 | 1,761,060 |
Gartner, Inc. * | 2,969 | 992,596 |
Global Payments, Inc. | 10,477 | 1,416,281 |
International Business Machines Corp. | 32,381 | 4,328,044 |
Intuit, Inc. | 10,225 | 6,576,925 |
Jack Henry & Associates, Inc. | 2,673 | 446,364 |
Mastercard, Inc., Class A | 31,324 | 11,255,340 |
Microsoft Corp. | 271,098 | 91,175,679 |
NortonLifeLock, Inc. | 21,005 | 545,710 |
Oracle Corp. | 58,237 | 5,078,849 |
Paychex, Inc. | 11,587 | 1,581,626 |
Paycom Software, Inc. * | 1,738 | 721,600 |
PayPal Holdings, Inc. * | 42,425 | 8,000,507 |
PTC, Inc. * | 3,815 | 462,187 |
salesforce.com, Inc. * | 35,350 | 8,983,495 |
ServiceNow, Inc. * | 7,186 | 4,664,504 |
Synopsys, Inc. * | 5,507 | 2,029,330 |
Tyler Technologies, Inc. * | 1,480 | 796,166 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
VeriSign, Inc. * | 3,489 | 885,578 |
Visa, Inc., Class A | 60,554 | 13,122,657 |
204,157,752 | ||
Technology Hardware & Equipment 8.7% | ||
Amphenol Corp., Class A | 21,593 | 1,888,524 |
Apple Inc. | 562,781 | 99,933,022 |
Arista Networks, Inc. * | 8,100 | 1,164,375 |
CDW Corp. | 4,900 | 1,003,422 |
Cisco Systems, Inc. | 152,290 | 9,650,617 |
Corning, Inc. | 27,732 | 1,032,462 |
F5, Inc. * | 2,178 | 532,978 |
Hewlett Packard Enterprise Co. | 47,226 | 744,754 |
HP, Inc. | 41,617 | 1,567,713 |
IPG Photonics Corp. * | 1,290 | 222,061 |
Juniper Networks, Inc. | 11,738 | 419,164 |
Keysight Technologies, Inc. * | 6,651 | 1,373,498 |
Motorola Solutions, Inc. | 6,098 | 1,656,827 |
NetApp, Inc. | 8,074 | 742,727 |
Seagate Technology Holdings plc | 7,396 | 835,600 |
TE Connectivity Ltd. | 11,783 | 1,901,069 |
Teledyne Technologies, Inc. * | 1,684 | 735,723 |
Trimble, Inc. * | 9,064 | 790,290 |
Western Digital Corp. * | 11,252 | 733,743 |
Zebra Technologies Corp., Class A * | 1,930 | 1,148,736 |
128,077,305 | ||
Telecommunication Services 1.2% | ||
AT&T, Inc. | 257,844 | 6,342,963 |
Lumen Technologies, Inc. | 33,278 | 417,639 |
T-Mobile US, Inc. * | 21,198 | 2,458,544 |
Verizon Communications, Inc. | 149,492 | 7,767,604 |
16,986,750 | ||
Transportation 1.7% | ||
Alaska Air Group, Inc. * | 4,523 | 235,648 |
American Airlines Group, Inc. * | 23,385 | 419,995 |
C.H. Robinson Worldwide, Inc. | 4,693 | 505,107 |
CSX Corp. | 80,086 | 3,011,234 |
Delta Air Lines, Inc. * | 23,106 | 902,982 |
Expeditors International of Washington, Inc. | 6,117 | 821,452 |
FedEx Corp. | 8,825 | 2,282,498 |
JB Hunt Transport Services, Inc. | 3,034 | 620,150 |
Norfolk Southern Corp. | 8,787 | 2,615,978 |
Old Dominion Freight Line, Inc. | 3,364 | 1,205,590 |
Southwest Airlines Co. * | 21,374 | 915,662 |
Union Pacific Corp. | 23,213 | 5,848,051 |
United Airlines Holdings, Inc. * | 11,692 | 511,876 |
United Parcel Service, Inc., Class B | 26,329 | 5,643,358 |
25,539,581 | ||
Utilities 2.5% | ||
Alliant Energy Corp. | 9,040 | 555,689 |
Ameren Corp. | 9,301 | 827,882 |
American Electric Power Co., Inc. | 18,184 | 1,617,830 |
American Water Works Co., Inc. | 6,555 | 1,237,977 |
Atmos Energy Corp. | 4,781 | 500,905 |
CenterPoint Energy, Inc. | 22,704 | 633,669 |
CMS Energy Corp. | 10,460 | 680,423 |
Consolidated Edison, Inc. | 12,772 | 1,089,707 |
Dominion Energy, Inc. | 29,247 | 2,297,644 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
DTE Energy Co. | 6,994 | 836,063 |
Duke Energy Corp. | 27,775 | 2,913,597 |
Edison International | 13,719 | 936,322 |
Entergy Corp. | 7,257 | 817,501 |
Evergy, Inc. | 8,278 | 567,954 |
Eversource Energy | 12,415 | 1,129,517 |
Exelon Corp. | 35,326 | 2,040,430 |
FirstEnergy Corp. | 19,659 | 817,618 |
NextEra Energy, Inc. | 70,851 | 6,614,649 |
NiSource, Inc. | 14,169 | 391,206 |
NRG Energy, Inc. | 8,840 | 380,827 |
Pinnacle West Capital Corp. | 4,072 | 287,442 |
PPL Corp. | 27,099 | 814,596 |
Public Service Enterprise Group, Inc. | 18,261 | 1,218,557 |
Sempra Energy | 11,532 | 1,525,453 |
The AES Corp. | 24,075 | 585,023 |
The Southern Co. | 38,266 | 2,624,282 |
WEC Energy Group, Inc. | 11,391 | 1,105,724 |
Xcel Energy, Inc. | 19,451 | 1,316,833 |
36,365,320 | ||
Total Common Stocks (Cost $752,952,614) | 1,457,189,838 |
SECURITY | NUMBER OF SHARES/ FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS | ||
Money Market Funds 0.0% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (c)(d) | 20,160 | 20,160 |
Time Deposits 0.7% | ||
JPMorgan Chase Bank | ||
0.01%, 01/03/22 (e) | 3,574,232 | 3,574,232 |
Sumitomo Mitsui Trust Bank, Ltd. | ||
0.01%, 01/03/22 (e) | 6,105,483 | 6,105,483 |
9,679,715 | ||
Total Short-Term Investments (Cost $9,699,875) | 9,699,875 | |
Total Investments in Securities (Cost $762,652,489) | 1,466,889,713 |
NUMBER OF CONTRACTS | NOTIONAL AMOUNT ($) | CURRENT VALUE/ UNREALIZED APPRECIATION ($) | |
FUTURES CONTRACTS | |||
Long | |||
S&P 500 Index, e-mini, expires 03/18/22 | 46 | 10,944,550 | 160,799 |
* | Non-income producing security. |
(a) | Issuer is affiliated with the fund’s investment adviser. |
(b) | All or a portion of this security is on loan. Securities on loan were valued at $19,020. |
(c) | The rate shown is the 7-day yield. |
(d) | Security purchased with cash collateral received for securities on loan. |
(e) | The rate shown is the current daily overnight rate. |
VALUE AT 12/31/20 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 12/31/21 | BALANCE OF SHARES HELD AT 12/31/21 | DIVIDENDS RECEIVED | |
COMMON STOCKS 0.3% OF NET ASSETS | ||||||||
Diversified Financials 0.3% | ||||||||
The Charles Schwab Corp. | $2,340,814 | $1,127,642 | ($399,952) | $51,215 | $1,432,614 | $4,552,333 | 54,130 | $34,869 |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $1,457,189,838 | $— | $— | $1,457,189,838 |
Short-Term Investments1 | 20,160 | — | — | 20,160 |
Time Deposits | — | 9,679,715 | — | 9,679,715 |
Futures Contracts2 | 160,799 | — | — | 160,799 |
Total | $1,457,370,797 | $9,679,715 | $— | $1,467,050,512 |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - affiliated (cost $2,061,123) | $4,552,333 | |
Investments in securities, at value - unaffiliated (cost $760,591,366) including securities on loan of $19,020 | 1,462,337,380 | |
Deposit with broker for futures contracts | 586,500 | |
Receivables: | ||
Fund shares sold | 1,514,464 | |
Dividends | 841,063 | |
Income from securities on loan | + | 73 |
Total assets | 1,469,831,813 | |
Liabilities | ||
Collateral held for securities on loan | 20,160 | |
Payables: | ||
Fund shares redeemed | 2,156,507 | |
Investment adviser fees | 37,113 | |
Variation margin on futures contracts | 31,625 | |
Investments bought | + | 1,361 |
Total liabilities | 2,246,766 | |
Net assets | $1,467,585,047 | |
Net Assets by Source | ||
Capital received from investors | $753,948,119 | |
Total distributable earnings | + | 713,636,928 |
Net assets | $1,467,585,047 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$1,467,585,047 | 20,843,574 | $70.41 | ||
For the period January 1, 2021 through December 31, 2021 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $2,282) | $16,297,791 | |
Dividends received from securities - affiliated | 34,869 | |
Interest received from securities - unaffiliated | 366 | |
Securites on loan, net | + | 2,207 |
Total investment income | 16,335,233 | |
Expenses | ||
Investment adviser fees | + | 353,930 |
Total expenses | – | 353,930 |
Net investment income | 15,981,303 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 51,215 | |
Net realized gains on sales of securities - unaffiliated | 7,084,739 | |
Net realized gains on futures contracts | + | 1,434,129 |
Net realized gains | 8,570,083 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | 1,432,614 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | 270,751,504 | |
Net change in unrealized appreciation (depreciation) on futures contracts | + | 104,680 |
Net change in unrealized appreciation (depreciation) | + | 272,288,798 |
Net realized and unrealized gains | 280,858,881 | |
Increase in net assets resulting from operations | $296,840,184 |
OPERATIONS | |||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||
Net investment income | $15,981,303 | $15,012,435 | |
Net realized gains (losses) | 8,570,083 | (11,195,195) | |
Net change in unrealized appreciation (depreciation) | + | 272,288,798 | 166,344,680 |
Increase in net assets from operations | $296,840,184 | $170,161,920 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($15,017,859) | ($10,111,416) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 7,110,963 | $452,221,843 | 8,541,750 | $378,103,272 | |
Shares reinvested | 238,190 | 15,017,859 | 222,915 | 10,111,416 | |
Shares redeemed | + | (3,588,771) | (228,019,959) | (4,076,571) | (190,181,607) |
Net transactions in fund shares | 3,760,382 | $239,219,743 | 4,688,094 | $198,033,081 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 17,083,192 | $946,542,979 | 12,395,098 | $588,459,394 | |
Total increase | + | 3,760,382 | 521,042,068 | 4,688,094 | 358,083,585 |
End of period | 20,843,574 | $1,467,585,047 | 17,083,192 | $946,542,979 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$391,164,192 | $152,254,217 |
Notional Amount | Number of Contracts |
$6,432,357 | 30 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$779,299,562 | $708,863,687 | ($21,112,737) | $687,750,950 |
UNDISTRIBUTED ORDINARY INCOME | UNDISTRIBUTED LONG-TERM CAPITAL GAINS | NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | TOTAL |
$19,218,062 | $6,667,916 | $687,750,950 | $713,636,928 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | ORDINARY INCOME | LONG-TERM CAPITAL GAINS |
$15,017,859 | $— | $8,976,180 | $1,135,236 |
Denver, Colorado
February 17, 2022
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 103 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Trust; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present) and Chief Investment Officer (Apr. 2011 – present), Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
* | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Fund: Schwab VIT Balanced Portfolio (07/25/12) | 8.19% | 7.01% | 5.68% |
S&P 500® Index | 28.71% | 18.47% | 16.70% |
Bloomberg US Aggregate Bond Index | -1.54% | 3.57% | 2.66% |
VIT Balanced Composite Index | 8.79% | 7.61% | 6.37% |
Fund Category: Morningstar Allocation – 30% to 50% Equity2 | 8.50% | 7.77% | N/A |
Fund Expense Ratio3: 0.62% |
1 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. Fund performance does not reflect the additional fees and expenses imposed by the insurance company under the variable insurance product contract. If those contract fees and expenses were included, the performance would be less than that shown. Please refer to the variable insurance product prospectus for a complete listing of these expenses. |
2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
3 | As stated in the prospectus. Includes 0.08% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the Financial Highlights section of the financial statements. |
Number of Holdings | 12 |
Portfolio Turnover Rate | 13% |
1 | The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds and unaffiliated third-party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). The fund may also invest directly in equity, fixed-income, or other securities or investments, as appropriate, consistent with its investment objectives, strategies, and policies. |
2 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
3 | This list is not a recommendation of any security by the investment adviser. |
4 | The holdings listed exclude any temporary liquidity investments. |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 7/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 12/31/212 | EXPENSES PAID DURING PERIOD 7/1/21-12/31/212,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 7/1/21-12/31/214,5 | |
Schwab VIT Balanced Portfolio | ||||||
Actual Return | 0.53% | 0.58% | $1,000.00 | $1,023.90 | $2.70 | $2.96 |
Hypothetical 5% Return | 0.53% | 0.58% | $1,000.00 | $1,022.53 | $2.70 | $2.96 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by the 365 days of the fiscal year. |
1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | 1/1/17– 12/31/17 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $14.04 | $13.25 | $11.82 | $12.58 | $11.66 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.21 | 0.20 | 0.25 | 0.23 | 0.18 | |
Net realized and unrealized gains (losses) | 0.93 | 0.86 | 1.42 | (0.80) | 0.98 | |
Total from investment operations | 1.14 | 1.06 | 1.67 | (0.57) | 1.16 | |
Less distributions: | ||||||
Distributions from net investment income | (0.19) | (0.24) | (0.22) | (0.17) | (0.15) | |
Distributions from net realized gains | (0.00) 2 | (0.03) | (0.02) | (0.02) | (0.09) | |
Total distributions | (0.19) | (0.27) | (0.24) | (0.19) | (0.24) | |
Net asset value at end of period | $14.99 | $14.04 | $13.25 | $11.82 | $12.58 | |
Total return | 8.19% | 8.23% | 14.24% | (4.63%) | 10.00% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses3 | 0.52% | 0.54% | 0.56% | 0.55% | 0.55% | |
Gross operating expenses3 | 0.52% | 0.54% | 0.56% | 0.55% | 0.55% | |
Net investment income (loss) | 1.42% | 1.53% | 1.97% | 1.87% | 1.50% | |
Portfolio turnover rate | 13% | 38% | 15% | 9% | 9% | |
Net assets, end of period (x 1,000,000) | $93 | $84 | $76 | $66 | $64 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Per-share amount was less than $0.005. |
3 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.6% OF NET ASSETS | ||
U.S. Stocks 23.1% | ||
Large-Cap 19.1% | ||
Schwab U.S. Large-Cap ETF | 155,896 | 17,744,083 |
Small-Cap 4.0% | ||
Schwab U.S. Small-Cap ETF | 36,453 | 3,732,787 |
21,476,870 | ||
International Stocks 18.0% | ||
Developed Markets 13.1% | ||
Schwab International Equity ETF | 263,181 | 10,229,845 |
Schwab International Small-Cap Equity ETF | 45,572 | 1,865,262 |
12,095,107 | ||
Emerging Markets 4.9% | ||
Schwab Emerging Markets Equity ETF | 154,356 | 4,572,025 |
16,667,132 | ||
Real Estate 6.1% | ||
U.S. REITs 6.1% | ||
Schwab U.S. REIT ETF | 107,811 | 5,680,561 |
Fixed Income 48.8% | ||
Inflation-Protected Bond 3.7% | ||
Schwab U.S. TIPS ETF | 54,110 | 3,402,978 |
Intermediate-Term Bond 36.1% | ||
Schwab U.S. Aggregate Bond ETF | 621,876 | 33,519,116 |
Treasury Bond 9.0% | ||
Schwab Short-Term U.S. Treasury ETF | 163,734 | 8,325,874 |
45,247,968 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 2.6% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,402,330 | 2,403,051 |
Total Affiliated Underlying Funds (Cost $71,905,220) | 91,475,582 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.4% OF NET ASSETS | ||
Time Deposits 1.4% | ||
National Australia Bank Ltd. | ||
0.01%, 01/03/22 (b) | 362,071 | 362,071 |
Sumitomo Mitsui Trust Bank, Ltd. | ||
0.01%, 01/03/22 (b) | 929,187 | 929,187 |
Total Short-Term Investments (Cost $1,291,258) | 1,291,258 | |
Total Investments in Securities (Cost $73,196,478) | 92,766,840 |
(a) | The rate shown is the 7-day yield. |
(b) | The rate shown is the current daily overnight rate. |
ETF — | Exchange traded fund |
REIT — | Real Estate Investment Trust |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 12/31/20 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 12/31/21 | BALANCE OF SHARES HELD AT 12/31/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.6% OF NET ASSETS | ||||||||
U.S. Stocks 23.1% | ||||||||
Large-Cap 19.1% | ||||||||
Schwab U.S. Large-Cap ETF | $16,004,835 | $2,039,875 | ($4,113,461) | $897,211 | $2,915,623 | $17,744,083 | 155,896 | $225,549 |
Small-Cap 4.0% | ||||||||
Schwab U.S. Small-Cap ETF | 3,394,104 | 463,679 | (617,472) | 214,777 | 277,699 | 3,732,787 | 36,453 | 43,175 |
21,476,870 | ||||||||
International Stocks 18.0% | ||||||||
Developed Markets 13.1% | ||||||||
Schwab International Equity ETF | 9,206,208 | 1,590,269 | (1,278,846) | 119,951 | 592,263 | 10,229,845 | 263,181 | 317,501 |
Schwab International Small-Cap Equity ETF | 1,668,761 | 250,339 | (198,830) | 17,816 | 127,176 | 1,865,262 | 45,572 | 54,501 |
12,095,107 | ||||||||
Emerging Markets 4.9% | ||||||||
Schwab Emerging Markets Equity ETF | 4,273,959 | 879,121 | (431,709) | 85,140 | (234,486) | 4,572,025 | 154,356 | 125,746 |
16,667,132 | ||||||||
Real Estate 6.1% | ||||||||
U.S. REITs 6.1% | ||||||||
Schwab U.S. REIT ETF | 4,995,106 | 528,271 | (1,632,561) | 222,841 | 1,566,904 | 5,680,561 | 107,811 | 90,868 |
Fixed Income 48.8% | ||||||||
Inflation-Protected Bond 3.7% | ||||||||
Schwab U.S. TIPS ETF | 3,101,269 | 446,737 | (190,744) | 1,674 | 44,042 | 3,402,978 | 54,110 | 146,772 |
Intermediate-Term Bond 36.1% | ||||||||
Schwab U.S. Aggregate Bond ETF | 30,253,118 | 6,783,602 | (2,350,593) | (63,528) | (1,103,483) | 33,519,116 | 621,876 | 684,646 |
Treasury Bond 9.0% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 7,405,967 | 1,680,093 | (674,711) | (4,835) | (80,640) | 8,325,874 | 163,734 | 32,424 |
45,247,968 | ||||||||
Money Market Funds 2.6% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 2,502,279 | 829 | (100,057) | 26 | (26) | 2,403,051 | 2,402,330 | 770 |
Total Affiliated Underlying Funds | $82,805,606 | $14,662,815 | ($11,588,984) | $1,491,073 | $4,105,072 | $91,475,582 | $1,721,952 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Affiliated Underlying Funds1 | $91,475,582 | $— | $— | $91,475,582 |
Short-Term Investments1 | — | 1,291,258 | — | 1,291,258 |
Total | $91,475,582 | $1,291,258 | $— | $92,766,840 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $71,905,220) | $91,475,582 | |
Investments in securities, at value - unaffiliated (cost $1,291,258) | 1,291,258 | |
Receivables: | ||
Investments sold | 726,903 | |
Dividends | 18,370 | |
Prepaid expenses | + | 206 |
Total assets | 93,512,319 | |
Liabilities | ||
Payables: | ||
Investments bought | 660,541 | |
Investment adviser and administrator fees | 37,484 | |
Fund shares redeemed | 4,582 | |
Independent trustees’ fees | 61 | |
Accrued expenses | + | 32,496 |
Total liabilities | 735,164 | |
Net assets | $92,777,155 | |
Net Assets by Source | ||
Capital received from investors | $71,100,773 | |
Total distributable earnings | + | 21,676,382 |
Net assets | $92,777,155 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$92,777,155 | 6,189,936 | $14.99 | ||
For the period January 1, 2021 through December 31, 2021 | ||
Investment Income | ||
Dividends received from securities - affiliated | $1,721,952 | |
Interest received from securities - unaffiliated | + | 67 |
Total investment income | 1,722,019 | |
Expenses | ||
Investment adviser and administrator fees | 397,187 | |
Professional fees | 23,298 | |
Independent trustees’ fees | 12,593 | |
Portfolio accounting fees | 12,074 | |
Shareholder reports | 11,904 | |
Custodian fees | 2,500 | |
Transfer agent fees | 1,426 | |
Other expenses | + | 3,404 |
Total expenses | – | 464,386 |
Net investment income | 1,257,633 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 1,491,073 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 4,105,072 |
Net realized and unrealized gains | 5,596,145 | |
Increase in net assets resulting from operations | $6,853,778 |
OPERATIONS | |||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||
Net investment income | $1,257,633 | $1,170,282 | |
Net realized gains (losses) | 1,491,073 | (147,303) | |
Net change in unrealized appreciation (depreciation) | + | 4,105,072 | 5,460,186 |
Increase in net assets from operations | $6,853,778 | $6,483,165 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($1,172,672) | ($1,583,531) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,041,182 | $15,151,379 | 934,736 | $11,978,203 | |
Shares reinvested | 80,101 | 1,172,672 | 125,279 | 1,583,531 | |
Shares redeemed | + | (883,201) | (12,804,877) | (834,964) | (10,767,159) |
Net transactions in fund shares | 238,082 | $3,519,174 | 225,051 | $2,794,575 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 5,951,854 | $83,576,875 | 5,726,803 | $75,882,666 | |
Total increase | + | 238,082 | 9,200,280 | 225,051 | 7,694,209 |
End of period | 6,189,936 | $92,777,155 | 5,951,854 | $83,576,875 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
Schwab Emerging Markets Equity ETF | 0.0%* |
Schwab International Equity ETF | 0.0%* |
Schwab International Small-Cap Equity ETF | 0.0%* |
Schwab Short-Term U.S. Treasury ETF | 0.1% |
Schwab U.S. Aggregate Bond ETF | 0.4% |
Schwab U.S. Large-Cap ETF | 0.1% |
Schwab U.S. REIT ETF | 0.1% |
Schwab U.S. Small-Cap ETF | 0.0%* |
Schwab U.S. TIPS ETF | 0.0%* |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.1% |
* | Less than 0.05% |
7. Purchases and Sales of Investment Securities: |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$14,662,815 | $11,588,984 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$73,870,029 | $19,692,167 | ($795,356) | $18,896,811 |
UNDISTRIBUTED ORDINARY INCOME | UNDISTRIBUTED LONG-TERM CAPITAL GAINS | NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | TOTAL |
$1,332,895 | $1,446,676 | $18,896,811 | $21,676,382 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | |||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$1,172,672 | $— | $1,503,427 | $80,104 |
Denver, Colorado
February 17, 2022
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 103 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Trust; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present) and Chief Investment Officer (Apr. 2011 – present), Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
* | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Fund: Schwab VIT Balanced with Growth Portfolio (07/25/12) | 11.42% | 8.96% | 7.44% |
S&P 500® Index | 28.71% | 18.47% | 16.70% |
Bloomberg US Aggregate Bond Index | -1.54% | 3.57% | 2.66% |
VIT Balanced with Growth Composite Index | 12.10% | 9.55% | 8.17% |
Fund Category: Morningstar Allocation – 50% to 70% Equity2 | 12.83% | 10.22% | N/A |
Fund Expense Ratio3: 0.57% |
1 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. Fund performance does not reflect the additional fees and expenses imposed by the insurance company under the variable insurance product contract. If those contract fees and expenses were included, the performance would be less than that shown. Please refer to the variable insurance product prospectus for a complete listing of these expenses. |
2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
3 | As stated in the prospectus. Includes 0.07% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the Financial Highlights section of the financial statements. |
Number of Holdings | 11 |
Portfolio Turnover Rate | 8% |
1 | The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds and unaffiliated third-party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). The fund may also invest directly in equity, fixed-income, or other securities or investments, as appropriate, consistent with its investment objectives, strategies, and policies. |
2 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
3 | This list is not a recommendation of any security by the investment adviser. |
4 | The holdings listed exclude any temporary liquidity investments. |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 7/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 12/31/212 | EXPENSES PAID DURING PERIOD 7/1/21-12/31/212,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 7/1/21-12/31/214,5 | |
Schwab VIT Balanced with Growth Portfolio | ||||||
Actual Return | 0.49% | 0.54% | $1,000.00 | $1,030.50 | $2.51 | $2.76 |
Hypothetical 5% Return | 0.49% | 0.54% | $1,000.00 | $1,022.74 | $2.50 | $2.75 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by the 365 days of the fiscal year. |
1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | 1/1/17– 12/31/17 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $15.68 | $14.59 | $12.66 | $13.80 | $12.38 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.25 | 0.22 | 0.28 | 0.25 | 0.22 | |
Net realized and unrealized gains (losses) | 1.53 | 1.20 | 1.99 | (1.16) | 1.46 | |
Total from investment operations | 1.78 | 1.42 | 2.27 | (0.91) | 1.68 | |
Less distributions: | ||||||
Distributions from net investment income | (0.22) | (0.29) | (0.26) | (0.21) | (0.18) | |
Distributions from net realized gains | — | (0.04) | (0.08) | (0.02) | (0.08) | |
Total distributions | (0.22) | (0.33) | (0.34) | (0.23) | (0.26) | |
Net asset value at end of period | $17.24 | $15.68 | $14.59 | $12.66 | $13.80 | |
Total return | 11.42% | 10.09% | 18.05% | (6.70%) | 13.70% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses2 | 0.49% | 0.50% | 0.51% | 0.50% | 0.51% | |
Gross operating expenses2 | 0.49% | 0.50% | 0.51% | 0.50% | 0.51% | |
Net investment income (loss) | 1.48% | 1.56% | 2.04% | 1.87% | 1.65% | |
Portfolio turnover rate | 8% | 21% | 7% | 8% | 6% | |
Net assets, end of period (x 1,000,000) | $184 | $164 | $162 | $140 | $150 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||
U.S. Stocks 33.1% | ||
Large-Cap 27.1% | ||
Schwab U.S. Large-Cap ETF | 438,769 | 49,940,687 |
Small-Cap 6.0% | ||
Schwab U.S. Small-Cap ETF | 108,422 | 11,102,413 |
61,043,100 | ||
International Stocks 26.0% | ||
Developed Markets 20.1% | ||
Schwab International Equity ETF | 807,676 | 31,394,366 |
Schwab International Small-Cap Equity ETF | 135,692 | 5,553,873 |
36,948,239 | ||
Emerging Markets 5.9% | ||
Schwab Emerging Markets Equity ETF | 367,785 | 10,893,792 |
47,842,031 | ||
Real Estate 6.1% | ||
U.S. REITs 6.1% | ||
Schwab U.S. REIT ETF | 214,029 | 11,277,189 |
Fixed Income 30.8% | ||
Inflation-Protected Bond 1.0% | ||
Schwab U.S. TIPS ETF | 28,249 | 1,776,580 |
Intermediate-Term Bond 25.9% | ||
Schwab U.S. Aggregate Bond ETF | 885,142 | 47,709,154 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Treasury Bond 3.9% | ||
Schwab Short-Term U.S. Treasury ETF | 140,731 | 7,156,171 |
56,641,905 | ||
Money Market Funds 2.7% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 4,909,966 | 4,911,439 |
Total Affiliated Underlying Funds (Cost $127,740,944) | 181,715,664 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 0.8% OF NET ASSETS | ||
Time Deposits 0.8% | ||
Bank of Montreal | ||
0.01%, 01/03/22 (b) | 1,540,430 | 1,540,430 |
Total Short-Term Investments (Cost $1,540,430) | 1,540,430 | |
Total Investments in Securities (Cost $129,281,374) | 183,256,094 |
(a) | The rate shown is the 7-day yield. |
(b) | The rate shown is the current daily overnight rate. |
ETF — | Exchange traded fund |
REIT — | Real Estate Investment Trust |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 12/31/20 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 12/31/21 | BALANCE OF SHARES HELD AT 12/31/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||||||||
U.S. Stocks 33.1% | ||||||||
Large-Cap 27.1% | ||||||||
Schwab U.S. Large-Cap ETF | $44,487,283 | $2,104,210 | ($7,354,749) | $2,203,952 | $8,499,991 | $49,940,687 | 438,769 | $638,047 |
Small-Cap 6.0% | ||||||||
Schwab U.S. Small-Cap ETF | 9,961,592 | 982,621 | (1,292,576) | 500,510 | 950,266 | 11,102,413 | 108,422 | 129,311 |
61,043,100 | ||||||||
International Stocks 26.0% | ||||||||
Developed Markets 20.1% | ||||||||
Schwab International Equity ETF | 27,863,494 | 2,975,025 | (1,628,341) | 212,602 | 1,971,586 | 31,394,366 | 807,676 | 977,338 |
Schwab International Small-Cap Equity ETF | 4,905,833 | 451,468 | (222,965) | 49,842 | 369,695 | 5,553,873 | 135,692 | 162,489 |
36,948,239 | ||||||||
Emerging Markets 5.9% | ||||||||
Schwab Emerging Markets Equity ETF | 10,002,106 | 1,907,021 | (650,169) | 125,905 | (491,071) | 10,893,792 | 367,785 | 299,360 |
47,842,031 | ||||||||
Real Estate 6.1% | ||||||||
U.S. REITs 6.1% | ||||||||
Schwab U.S. REIT ETF | 9,786,274 | — | (2,019,152) | 373,897 | 3,136,170 | 11,277,189 | 214,029 | 181,858 |
Fixed Income 30.8% | ||||||||
Inflation-Protected Bond 1.0% | ||||||||
Schwab U.S. TIPS ETF | 1,659,709 | 94,303 | — | — | 22,568 | 1,776,580 | 28,249 | 77,179 |
Intermediate-Term Bond 25.9% | ||||||||
Schwab U.S. Aggregate Bond ETF | 42,494,104 | 7,468,544 | (573,225) | (23,062) | (1,657,207) | 47,709,154 | 885,142 | 980,857 |
Treasury Bond 3.9% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 6,258,737 | 970,939 | — | — | (73,505) | 7,156,171 | 140,731 | 27,772 |
56,641,905 | ||||||||
Money Market Funds 2.7% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 4,909,874 | 1,682 | (117) | — | — | 4,911,439 | 4,909,966 | 1,561 |
Total Affiliated Underlying Funds | $162,329,006 | $16,955,813 | ($13,741,294) | $3,443,646 | $12,728,493 | $181,715,664 | $3,475,772 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Affiliated Underlying Funds1 | $181,715,664 | $— | $— | $181,715,664 |
Short-Term Investments1 | — | 1,540,430 | — | 1,540,430 |
Total | $181,715,664 | $1,540,430 | $— | $183,256,094 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $127,740,944) | $181,715,664 | |
Investments in securities, at value - unaffiliated (cost $1,540,430) | 1,540,430 | |
Receivables: | ||
Investments sold | 1,333,432 | |
Dividends | 54,002 | |
Prepaid expenses | + | 416 |
Total assets | 184,643,944 | |
Liabilities | ||
Payables: | ||
Investments bought | 396,079 | |
Investment adviser and administrator fees | 74,487 | |
Fund shares redeemed | 35,959 | |
Independent trustees’ fees | 72 | |
Accrued expenses | + | 33,355 |
Total liabilities | 539,952 | |
Net assets | $184,103,992 | |
Net Assets by Source | ||
Capital received from investors | $125,223,020 | |
Total distributable earnings | + | 58,880,972 |
Net assets | $184,103,992 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$184,103,992 | 10,677,716 | $17.24 | ||
For the period January 1, 2021 through December 31, 2021 | ||
Investment Income | ||
Dividends received from securities - affiliated | $3,475,772 | |
Interest received from securities - unaffiliated | + | 113 |
Total investment income | 3,475,885 | |
Expenses | ||
Investment adviser and administrator fees | 791,762 | |
Professional fees | 25,503 | |
Independent trustees’ fees | 15,112 | |
Portfolio accounting fees | 12,968 | |
Shareholder reports | 11,932 | |
Custodian fees | 3,418 | |
Transfer agent fees | 1,969 | |
Other expenses | + | 4,059 |
Total expenses | – | 866,723 |
Net investment income | 2,609,162 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 3,443,646 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 12,728,493 |
Net realized and unrealized gains | 16,172,139 | |
Increase in net assets resulting from operations | $18,781,301 |
OPERATIONS | |||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||
Net investment income | $2,609,162 | $2,359,507 | |
Net realized gains (losses) | 3,443,646 | (489,398) | |
Net change in unrealized appreciation (depreciation) | + | 12,728,493 | 12,666,203 |
Increase in net assets from operations | $18,781,301 | $14,536,312 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($2,357,386) | ($3,503,173) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 875,732 | $14,657,809 | 216,285 | $3,084,560 | |
Shares reinvested | 140,908 | 2,357,386 | 258,156 | 3,503,173 | |
Shares redeemed | + | (791,626) | (13,183,009) | (1,150,953) | (16,136,997) |
Net transactions in fund shares | 225,014 | $3,832,186 | (676,512) | ($9,549,264) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 10,452,702 | $163,847,891 | 11,129,214 | $162,364,016 | |
Total increase (decrease) | + | 225,014 | 20,256,101 | (676,512) | 1,483,875 |
End of period | 10,677,716 | $184,103,992 | 10,452,702 | $163,847,891 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
Schwab Emerging Markets Equity ETF | 0.1% |
Schwab International Equity ETF | 0.1% |
Schwab International Small-Cap Equity ETF | 0.1% |
Schwab Short-Term U.S. Treasury ETF | 0.1% |
Schwab U.S. Aggregate Bond ETF | 0.5% |
Schwab U.S. Large-Cap ETF | 0.1% |
Schwab U.S. REIT ETF | 0.2% |
Schwab U.S. Small-Cap ETF | 0.1% |
Schwab U.S. TIPS ETF | 0.0%* |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.2% |
* | Less than 0.05% |
7. Purchases and Sales of Investment Securities: |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$16,955,813 | $13,741,294 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$130,201,345 | $54,084,029 | ($1,029,280) | $53,054,749 |
UNDISTRIBUTED ORDINARY INCOME | UNDISTRIBUTED LONG-TERM CAPITAL GAINS | NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | TOTAL |
$2,672,403 | $3,153,820 | $53,054,749 | $58,880,972 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | ORDINARY INCOME | LONG-TERM CAPITAL GAINS |
$2,357,386 | $— | $3,237,788 | $265,385 |
Denver, Colorado
February 17, 2022
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 103 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Trust; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present) and Chief Investment Officer (Apr. 2011 – present), Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
* | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Fund: Schwab VIT Growth Portfolio (07/25/12) | 14.67% | 10.62% | 9.12% |
S&P 500® Index | 28.71% | 18.47% | 16.70% |
Bloomberg US Aggregate Bond Index | -1.54% | 3.57% | 2.66% |
VIT Growth Composite Index | 15.31% | 11.20% | 9.80% |
Fund Category: Morningstar Allocation – 70% to 85% Equity2 | 15.77% | 11.46% | N/A |
Fund Expense Ratio3: 0.58% |
1 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. Fund performance does not reflect the additional fees and expenses imposed by the insurance company under the variable insurance product contract. If those contract fees and expenses were included, the performance would be less than that shown. Please refer to the variable insurance product prospectus for a complete listing of these expenses. |
2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
3 | As stated in the prospectus. Includes 0.08% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the Financial Highlights section of the financial statements. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 13% |
1 | The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds and unaffiliated third-party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). The fund may also invest directly in equity, fixed-income, or other securities or investments, as appropriate, consistent with its investment objectives, strategies, and policies. |
2 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
3 | This list is not a recommendation of any security by the investment adviser. |
4 | The holdings listed exclude any temporary liquidity investments. |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 7/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 12/31/212 | EXPENSES PAID DURING PERIOD 7/1/21-12/31/212,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 7/1/21-12/31/214,5 | |
Schwab VIT Growth Portfolio | ||||||
Actual Return | 0.49% | 0.55% | $1,000.00 | $1,037.10 | $2.52 | $2.82 |
Hypothetical 5% Return | 0.49% | 0.55% | $1,000.00 | $1,022.74 | $2.50 | $2.80 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
3 | Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
5 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by the 365 days of the fiscal year. |
1/1/21– 12/31/21 | 1/1/20– 12/31/20 | 1/1/19– 12/31/19 | 1/1/18– 12/31/18 | 1/1/17– 12/31/17 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $17.52 | $16.24 | $13.75 | $15.28 | $13.26 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.29 | 0.24 | 0.30 | 0.27 | 0.23 | |
Net realized and unrealized gains (losses) | 2.27 | 1.51 | 2.54 | (1.53) | 2.02 | |
Total from investment operations | 2.56 | 1.75 | 2.84 | (1.26) | 2.25 | |
Less distributions: | ||||||
Distributions from net investment income | (0.25) | (0.32) | (0.27) | (0.22) | (0.19) | |
Distributions from net realized gains | — | (0.15) | (0.08) | (0.05) | (0.04) | |
Total distributions | (0.25) | (0.47) | (0.35) | (0.27) | (0.23) | |
Net asset value at end of period | $19.83 | $17.52 | $16.24 | $13.75 | $15.28 | |
Total return | 14.67% | 11.34% | 20.84% | (8.35%) | 17.14% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses2 | 0.49% | 0.50% | 0.51% | 0.50% | 0.50% | |
Gross operating expenses2 | 0.49% | 0.50% | 0.51% | 0.50% | 0.50% | |
Net investment income (loss) | 1.53% | 1.55% | 1.98% | 1.78% | 1.61% | |
Portfolio turnover rate | 13% | 18% | 5% | 9% | 6% | |
Net assets, end of period (x 1,000,000) | $187 | $165 | $160 | $140 | $150 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.5% OF NET ASSETS | ||
U.S. Stocks 42.1% | ||
Large-Cap 35.1% | ||
Schwab U.S. Large-Cap ETF | 576,548 | 65,622,693 |
Small-Cap 7.0% | ||
Schwab U.S. Small-Cap ETF | 127,745 | 13,081,088 |
78,703,781 | ||
International Stocks 34.0% | ||
Developed Markets 26.1% | ||
Schwab International Equity ETF | 1,015,652 | 39,478,393 |
Schwab International Small-Cap Equity ETF | 228,129 | 9,337,320 |
48,815,713 | ||
Emerging Markets 7.9% | ||
Schwab Emerging Markets Equity ETF | 498,461 | 14,764,415 |
63,580,128 | ||
Real Estate 6.2% | ||
U.S. REITs 6.2% | ||
Schwab U.S. REIT ETF | 220,879 | 11,638,115 |
Fixed Income 13.7% | ||
Intermediate-Term Bond 13.7% | ||
Schwab U.S. Aggregate Bond ETF | 475,680 | 25,639,152 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 2.5% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 4,633,990 | 4,635,380 |
Total Affiliated Underlying Funds (Cost $117,203,585) | 184,196,556 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS | ||
Time Deposits 1.3% | ||
Bank of Montreal | ||
0.01%, 01/03/22 (b) | 1,874,369 | 1,874,369 |
Sumitomo Mitsui Banking Corp. | ||
0.01%, 01/03/22 (b) | 545,797 | 545,797 |
Total Short-Term Investments (Cost $2,420,166) | 2,420,166 | |
Total Investments in Securities (Cost $119,623,751) | 186,616,722 |
(a) | The rate shown is the 7-day yield. |
(b) | The rate shown is the current daily overnight rate. |
ETF — | Exchange traded fund |
REIT — | Real Estate Investment Trust |
VALUE AT 12/31/20 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 12/31/21 | BALANCE OF SHARES HELD AT 12/31/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.5% OF NET ASSETS | ||||||||
U.S. Stocks 42.1% | ||||||||
Large-Cap 35.1% | ||||||||
Schwab U.S. Large-Cap ETF | $58,193,175 | $4,043,580 | ($10,430,918) | $2,886,329 | $10,930,527 | $65,622,693 | 576,548 | $820,346 |
Small-Cap 7.0% | ||||||||
Schwab U.S. Small-Cap ETF | 11,716,761 | 1,580,467 | (1,913,715) | 864,392 | 833,183 | 13,081,088 | 127,745 | 149,070 |
78,703,781 | ||||||||
International Stocks 34.0% | ||||||||
Developed Markets 26.1% | ||||||||
Schwab International Equity ETF | 34,551,019 | 6,498,247 | (4,264,291) | 308,597 | 2,384,821 | 39,478,393 | 1,015,652 | 1,213,888 |
Schwab International Small-Cap Equity ETF | 8,321,742 | 950,085 | (636,350) | 95,194 | 606,649 | 9,337,320 | 228,129 | 273,701 |
48,815,713 | ||||||||
Emerging Markets 7.9% | ||||||||
Schwab Emerging Markets Equity ETF | 13,509,447 | 3,098,006 | (1,366,285) | 283,886 | (760,639) | 14,764,415 | 498,461 | 401,313 |
63,580,128 | ||||||||
Real Estate 6.2% | ||||||||
U.S. REITs 6.2% | ||||||||
Schwab U.S. REIT ETF | 9,896,121 | 443,723 | (2,223,928) | 285,284 | 3,236,915 | 11,638,115 | 220,879 | 181,449 |
Fixed Income 13.7% | ||||||||
Intermediate-Term Bond 13.7% | ||||||||
Schwab U.S. Aggregate Bond ETF | 22,821,691 | 5,700,719 | (1,990,582) | (67,567) | (825,109) | 25,639,152 | 475,680 | 522,562 |
Money Market Funds 2.5% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 4,633,903 | 1,588 | (111) | — | — | 4,635,380 | 4,633,990 | 1,473 |
Total Affiliated Underlying Funds | $163,643,859 | $22,316,415 | ($22,826,180) | $4,656,115 | $16,406,347 | $184,196,556 | $3,563,802 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Affiliated Underlying Funds1 | $184,196,556 | $— | $— | $184,196,556 |
Short-Term Investments1 | — | 2,420,166 | — | 2,420,166 |
Total | $184,196,556 | $2,420,166 | $— | $186,616,722 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $117,203,585) | $184,196,556 | |
Investments in securities, at value - unaffiliated (cost $2,420,166) | 2,420,166 | |
Receivables: | ||
Investments sold | 719,342 | |
Dividends | 69,395 | |
Fund shares sold | 28,864 | |
Prepaid expenses | + | 417 |
Total assets | 187,434,740 | |
Liabilities | ||
Payables: | ||
Investments bought | 270,512 | |
Investment adviser and administrator fees | 75,245 | |
Fund shares redeemed | 17,754 | |
Independent trustees’ fees | 72 | |
Accrued expenses | + | 33,121 |
Total liabilities | 396,704 | |
Net assets | $187,038,036 | |
Net Assets by Source | ||
Capital received from investors | $114,511,857 | |
Total distributable earnings | + | 72,526,179 |
Net assets | $187,038,036 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$187,038,036 | 9,429,969 | $19.83 | ||
For the period January 1, 2021 through December 31, 2021 | ||
Investment Income | ||
Dividends received from securities - affiliated | $3,563,802 | |
Interest received from securities - unaffiliated | + | 135 |
Total investment income | 3,563,937 | |
Expenses | ||
Investment adviser and administrator fees | 791,139 | |
Professional fees | 25,145 | |
Independent trustees’ fees | 15,118 | |
Portfolio accounting fees | 12,934 | |
Shareholder reports | 11,942 | |
Custodian fees | 3,494 | |
Transfer agent fees | 1,880 | |
Other expenses | + | 4,083 |
Total expenses | – | 865,735 |
Net investment income | 2,698,202 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - affiliated | 4,656,115 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 16,406,347 |
Net realized and unrealized gains | 21,062,462 | |
Increase in net assets resulting from operations | $23,760,664 |
OPERATIONS | |||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||
Net investment income | $2,698,202 | $2,315,860 | |
Net realized gains (losses) | 4,656,115 | (854,068) | |
Net change in unrealized appreciation (depreciation) | + | 16,406,347 | 15,041,133 |
Increase in net assets from operations | $23,760,664 | $16,502,925 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($2,315,222) | ($4,476,302) |
TRANSACTIONS IN FUND SHARES | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,044,962 | $19,957,820 | 369,653 | $5,468,746 | |
Shares reinvested | 121,089 | 2,315,222 | 306,177 | 4,476,302 | |
Shares redeemed | + | (1,184,544) | (22,175,070) | (1,101,197) | (16,858,442) |
Net transactions in fund shares | (18,493) | $97,972 | (425,367) | ($6,913,394) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
1/1/21-12/31/21 | 1/1/20-12/31/20 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 9,448,462 | $165,494,622 | 9,873,829 | $160,381,393 | |
Total increase (decrease) | + | (18,493) | 21,543,414 | (425,367) | 5,113,229 |
End of period | 9,429,969 | $187,038,036 | 9,448,462 | $165,494,622 |
SCHWAB ANNUITY PORTFOLIOS (ORGANIZED JANUARY 21, 1994) | |
Schwab Government Money Market Portfolio | |
Schwab S&P 500 Index Portfolio | |
Schwab VIT Balanced Portfolio | |
Schwab VIT Balanced with Growth Portfolio | |
Schwab VIT Growth Portfolio |
Schwab Emerging Markets Equity ETF | 0.2% |
Schwab International Equity ETF | 0.1% |
Schwab International Small-Cap Equity ETF | 0.2% |
Schwab U.S. Aggregate Bond ETF | 0.3% |
Schwab U.S. Large-Cap ETF | 0.2% |
Schwab U.S. REIT ETF | 0.2% |
Schwab U.S. Small-Cap ETF | 0.1% |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.2% |
7. Purchases and Sales of Investment Securities: |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$22,316,415 | $22,826,180 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$120,713,675 | $66,992,971 | ($1,089,924) | $65,903,047 |
UNDISTRIBUTED ORDINARY INCOME | UNDISTRIBUTED LONG-TERM CAPITAL GAINS | NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | TOTAL |
$2,844,483 | $3,778,649 | $65,903,047 | $72,526,179 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | |||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
$2,315,222 | $— | $3,026,731 | $1,449,571 |
Denver, Colorado
February 17, 2022
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 103 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Trust; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present) and Chief Investment Officer (Apr. 2011 – present), Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
Item 2: Code of Ethics.
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
(f)(1) Registrant has filed this code of ethics as an exhibit pursuant to Item 13(a)(1) of Form N-CSR.
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Kiran M. Patel, Kimberly S. Patmore and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit, compliance and valuation committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Mr. Patel, Ms. Patmore and Mr. Penn as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
(a) Below are the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees | |||||||||||||||||||||||||||
Fiscal Year 2021 | Fiscal Year 2020 | Fiscal Year 2021 | Fiscal Year 2020 | Fiscal Year 2021 | Fiscal Year 2020 | Fiscal Year 2021 | Fiscal Year 2020 | |||||||||||||||||||||||
$ 103,520 | $ | 103,520 | $ | 9,000 | $ | 9,000 | $ | 15,500 | $ | 15,500 | $ | 0 | $ | 0 |
1 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
2 | The nature of the services includes tax compliance, tax advice and tax planning. |
(e) (1) Registrant’s audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2021: $3,088,431 2020: $3,577,864
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Mark Fischer, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(2) |
(3) | Not applicable. |
(b) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Annuity Portfolios
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | February 17, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | February 17, 2022 |
By: | /s/ Mark Fischer | |
Mark Fischer Chief Financial Officer | ||
Date: | February 17, 2022 |