SEC Info - Schwab Annuity Portfolios - ‘NSAR-B’ for 12/31/02

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Schwab Annuity Portfolios – ‘NSAR-B’ for 12/31/02

On: Friday, 2/28/03, at 3:55pm ET · Effective: 2/28/03 · For: 12/31/02 · Accession #: 1041062-3-68 · File #: 811-08314

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/28/03  Schwab Annuity Portfolios         NSAR-B     12/31/02    3:27K                                    Fund Resources I/FA

Annual Report by an Investment Company — Form N-SAR — ICA’40
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: NSAR-B      Annual Report by an Investment Company                19     78K 
 3: EX-99       Miscellaneous Exhibit                                  2±     8K 
 2: EX-99.77Q3 CERT  Certification -- §302 - SOA'02                    4±    15K

‘NSAR-B’ — Annual Report by an Investment Company

SEC Info℠ rendering: Data from the Answer File, which may only contain updates to a prior Form N-SAR

Form N-SAR

Annual Report by an Open-End Investment Company

Report
Registrant: Schwab Annuity Portfolios — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end: 12/31/02

Were there any Answer File errors in the Filing? None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant? Yes

Is this an Amendment to a previous Report? No
Is this a change to a previous Report? No
Registrant
1. SEC CIK: 918266
SEC File #: 811-08314

Telephone #: 415-627-7000
2. Address: 101 Montgomery St
San Francisco, CA 94104
3. Is this the first Form N-SAR filed by the Registrant? No
4. Is this the final Form N-SAR filed by the Registrant? No
Funds/Series ↑Top of Form N-SAR
7. Is the Registrant a Funds/Series (multiple portfolios) company? Yes

The number of separate Funds/Series (portfolios) at period end: 3
The number of separate Funds/Series (portfolios) reported here: 3...

N-SAR S# Fund/Series — Filings for F/S#… ⇒ Symbols
↓Information Common to All
↓ Series 2: Schwab Markettrack Growth Portfolio II — S#6546
↓ Series 1: Schwab Money Market Portfolio [ now
Schwab Government Money Market Portfolio ] — S#6545
↓ Series 3: Schwab S&P 500 Portfolio [ now
Schwab S&P 500 Index Portfolio ] — S#6547
Family of Investment Companies
19. Is the Registrant/Series part of a “family” of investment companies? Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family: 45

The Identification Code of the family for Form N-SAR Filings: SCHWABFUND
Investment Company Type
27. Is the Registrant an “open-end” investment company? Yes, Open-End
Additional Disclosures
77. Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)? Yes

EX-99.77B: Accountant’s Report re: Internal Controls? Yes

EX-99.77Q1: Other Disclosure? Yes

EX-99.77Q3: Other Info? Yes
Subsidiaries
78. Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report? No
All Series ↑List of 3 Funds/Series Reported Here

Information Common to All Funds/Series
All: Investment Adviser
8.1 Name: Charles Schwab Investment Management, Inc.
Role: Adviser
SEC File #: 801-35905
Location: San Francisco, CA
All: Administrator
10.1 Name: Charles Schwab Investment Management, Inc.
SEC File #: 801-35905
Location: San Francisco, CA
All: Principal Underwriter
11.1 Name: Charles Schwab & Co., Inc.
SEC File #: 008-16514
Location: San Francisco, CA
All: Shareholder Servicing/Transfer Agent
12.1 Name: Charles Schwab & Co., Inc.
SEC File #: 084-01256
Location: San Francisco, CA
All: Independent Public Accountant
13.1 Name: Pricewaterhousecoopers LLP
Location: San Francisco, CA
All: Affiliated Broker/Dealer
14.1 Name: Aitken Campbell & Co. Ltd.
14.2 Name: Australian Disc Stockbroking Holdings Ltd.
14.3 Name: Charles Schwab & Co.
SEC File #: 008-16514
14.4 Name: Charles Schwab Australia Pty. Ltd.
14.5 Name: Charles Schwab, Hong Kong Ltd.
14.6 Name: Charles Schwab Europe
14.7 Name: Charles Schwab, Cayman, Ltd.
14.8 Name: Discount Stockbroking (Australia)
14.9 Name: Ust Securities Corp.
SEC File #: 008-29292
14.10 Name: Ust Financial Services Corp.
SEC File #: 008-47488
14.11 Name: Mulligan Capital L.P.
SEC File #: 008-51015
14.12 Name: Schwab Capital Markets L.P.
SEC File #: 008-13535
14.13 Name: Cybertrader, Inc.
SEC File #: 008-50739
All: Custodian
18. Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4? Yes
All: Brokerage Commissions Paid on Portfolio Transactions
20. The brokers who received the largest amount of gross brokerage
commissions during the period:
20.1 Broker: Jefferies & Co. Inc.
IRS #: 95-2622900
Commissions paid ($000s): 3
20.2 Broker: Bear Stearns Cos., Inc.
IRS #: 13-3299429
Commissions paid ($000s): 3
20.3 Broker: Investment Technology Group
IRS #: 95-4339396
Commissions paid ($000s): 1
20.4 Broker: Morgan Stanley
IRS #: 13-2655998
Commissions paid ($000s): 1
20.5 Broker: Cantor Fitzgerald & Co.
IRS #: 13-3680184
Commissions paid ($000s): 1
20.6 Broker: Goldman Sachs Group, Inc.
IRS #: 13-5108880
20.7 Broker: JP Morgan Chase & Co.
IRS #: 13-3224016
20.8 Broker: Montgomerey Securities
IRS #: 94-1701676
20.9 Broker: Merrill Lynch & Co., Inc.
IRS #: 13-5674085
21. Total brokerage commissions paid by the Registrant during the period:
Aggregate paid ($000s): 9
All: Portfolio Transactions with Entities Acting as Principals
22. The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
22.1 Entity: CS First Boston
IRS #: 13-5659485
Registrant’s purchases ($000s): 8,715,466
Registrant’s sales ($000s): 5,000
22.2 Entity: First Tennessee Securities Group
IRS #: 62-1758945
Registrant’s purchases ($000s): 192,267
22.3 Entity: Lehman Brothers Holdings, Inc.
IRS #: 13-2518466
Registrant’s purchases ($000s): 106,560
Registrant’s sales ($000s): 275
22.4 Entity: Paine Weber Jackson & Curtis
IRS #: 13-2638166
Registrant’s purchases ($000s): 86,933
22.5 Entity: Merrill Lynch & Co., Inc.
IRS #: 13-5674085
Registrant’s purchases ($000s): 75,746
22.6 Entity: Morgan Stanley
IRS #: 13-2655998
Registrant’s purchases ($000s): 64,010
Registrant’s sales ($000s): 286
22.7 Entity: JP Morgan Chase & Co.
IRS #: 13-3224016
Registrant’s purchases ($000s): 52,536
22.8 Entity: Goldman Sachs Group, Inc.
IRS #: 13-5108880
Registrant’s purchases ($000s): 45,656
Registrant’s sales ($000s): 1,499
22.9 Entity: First Chicago Capital Markets
Registrant’s purchases ($000s): 33,613
22.10 Entity: Bank of America Securities
IRS #: 95-3783486
Registrant’s purchases ($000s): 27,695
23. Total purchase/sale transactions by the Registrant during the period:
Aggregate purchases ($000s): 9,403,466
Aggregate sales ($000s): 7,848
All: Considerations which Affected the Participation of Brokers or Dealers
26. Considerations which affected the participation of brokers or dealers or
other entities in commissions or other compensation paid on portfolio
transactions of the Registrant:

Consideration?
Sales of the Registrant’s/Series’ shares ............................... No
Receipt of investment research and statistical info .................... Yes
Receipt of quotations for portfolio valuations ......................... No
Ability to execute portfolio transactions to obtain the best price
and execution ........................................................ Yes
Receipt of telephone line and wire services ............................ No
Broker or Dealer which is an affiliated person ......................... Yes
An arrangement to return or credit part or all of commissions or
profits thereon...
To an Investment Adviser or Principal Underwriter, or to an
affiliated person of either ...................................... No
To the Registrant .................................................. Yes
Other .................................................................. No
All: Sales Load (Front-End or Deferred) and Fees (Redemption or Maintenance)
29. Was a front-end sales load deducted from any share sales during the
period? No
34. Did the Registrant/Series impose a deferred or contingent deferred sales
load during the period? No
37. Did the Registrant/Series impose a redemption fee other than a deferred
or contingent sales load during the period? No
39. Were any account maintenance fees or other administrative fees imposed
directly on shareholders during the period? No
All: Payment Plan for the Distribution of Fund Shares
40. During the period, did the Registrant/Series have a plan of distribution
adopted pursuant to Rule 12b-1? No
All: Advisory Fee
49. Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income? No
50. Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets? No
51. Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance? No
52. Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants? No
53. Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws? Yes

Was the limitation that applied during the period based on...
Assets? Yes
Income? No
54. Indicated below are whether services were supplied or paid for wholly or
in substantial part by Investment Adviser(s) or Administrator(s) in
connection with the advisory or administrative contract(s) but for which
the Adviser(s) or Administrator(s) are not reimbursed by the Registrant:

Provided to the Registrant?
Occupancy and office rental ............................................ Yes
Clerical and bookkeeping services ...................................... Yes
Accounting services .................................................... No
Services of independent auditors ....................................... No
Services of outside counsel ............................................ No
Registration and filing fees ........................................... No
Stationery, supplies and printing ...................................... Yes
Salaries & compensation of Registrant’s interested Directors ........... Yes
Salaries & compensation of Registrant’s disinterested Directors ........ No
Salaries & compensation of Registrant’s Officers who aren’t Directors .. Yes
Reports to current shareholders ........................................ No
Determination of offering and redemption prices ........................ No
Trading department ..................................................... Yes
Prospectus preparation and printing for current shareholders ........... No
Other .................................................................. Yes
All: Classification and Asset Allocation
58. Is the Registrant/Series a Separate Account of an insurance company? No
59. Is the Registrant/Series a management investment company? Yes
60. Was the Registrant/Series a diversified investment company at any time
during the period? Yes

Was the Registrant/Series a diversified investment company at the end of
the period? Yes
61. The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity: $1
All: Fidelity Bond in Effect at Fiscal Year End
80. Insurer: Gulf Insurance
2nd Insurer: Ici Mutual & Continental Casualty

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s): 70,000
81. Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities? Yes

How many other investment companies or other entities are covered by the
bond (counting each Fund/Series as a separate investment company): 42
82. Does the mandatory coverage of the fidelity bond have a deductible? No
83. Were any claims with respect to this Registrant/Series filed under the
bond during the period? No
84. Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not? No
85. Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else? Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series? No
Series 1 ↑Information Common to All Funds/Series ↑List of 3 Funds/Series
7. Name: Schwab Money Market Portfolio [ now
Schwab Government Money Market Portfolio ] — S#6545

Is this the final Form N-SAR filed for this Fund/Series? No
S 1: Custodian
15.1 Name: PFPC Trust Co.
Role: Custodian
Location: Philadelphia, PA

Type of custody: Section 17(f)(1) — Bank
15.2 Name: JP Morgan Chase Bank
Role: Sub-Custodian
Location: New York, NY

Type of custody: Section 17(f)(1) — Bank
S 1: Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers
24. At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities? No
S 1: Sales and Repurchases
28. Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
1st Month of period: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 42,943
Reinvestment of dividends and distributions ................ 199
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 45,608
2nd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 68,984
Reinvestment of dividends and distributions ................ 225
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 58,324
3rd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 57,295
Reinvestment of dividends and distributions ................ 235
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 45,089
4th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 97,064
Reinvestment of dividends and distributions ................ 219
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 97,094
5th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 63,554
Reinvestment of dividends and distributions ................ 234
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 73,192
6th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 44,943
Reinvestment of dividends and distributions ................ 276
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 34,059

Total of all months: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 374,783
Reinvestment of dividends and distributions ................ 1,388
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 353,366

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s): 0
S 1: Advisory Fee
45. Did the Registrant/Series have an advisory contract during the period? Yes
46. Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period? No
47. Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets? Yes
48. Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
Single-fee rate: 0.0%
Step-fee rates:
For 1st $000s: 1,000,000
Annual rate: 0.38%
Of next $000s: 9,000,000
Annual rate: 0.35%
Of next $000s: 10,000,000
Annual rate: 0.32%
Of next $000s: 20,000,000
Annual rate: 0.3%
& Above $000s: 40,000,000
Annual rate: 0.27%
S 1: Miscellaneous Info
55. Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
Overdrafts? No
Bank loans? No
56. During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies? Yes
57. Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend? No
S 1: Classification and Asset Allocation
62. Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities? Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ............................... 0.0%
U.S. Government Agency ...................... 88.7
Repurchase agreements ....................... 11.3
State and Municipal – tax-free .............. 0.0
Bank certificates of deposit – domestic ..... 0.0
Bank certificates of deposit – foreign ...... 0.0
Bankers acceptances ......................... 0.0
Commercial paper – taxable .................. 0.0
Time deposits ............................... 0.0
Options ..................................... 0.0
All other ................................... 0.0

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ............................... 0.0%
U.S. Government Agency ...................... 0.0
State and Municipal – tax-free .............. 0.0
Corporate ................................... 0.0
All other ................................... 0.0

Non-Debt
Investments other than debt securities ...... 0.0%
63. The dollar-weighted average portfolio maturity at period end in days or,
if longer than one year, in years (to one decimal place):
Days: 44
Years: 0.0
64. Is the timely payment of principal and interest on any of the
instruments listed in Item 62 insured or guaranteed by an entity other
than the issuer? Yes

Is the issuer of any instrument covered in Item 62 delinquent or in
default as to payment of principal or interest at period end? No
66. Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities? No
67. Is the Registrant/Series a “balanced” Fund? No
68. Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
Engaged primarily in production or distribution of precious metals? No
Located primarily in countries other than the United States? No
69. Is the Registrant/Series an index Fund? No
S 1: Investment Practices
70. Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity Permitted Engaged In
Writing or investing in repurchase agreements? Yes to both
Writing or investing in options on equities? No –
Writing or investing in options on debt securities? No –
Writing or investing in options on stock indices? No –
Writing or investing in interest rate futures? No –
Writing or investing in stock index futures? No –
Writing or investing in options on futures? No –
Writing or investing in options on stock index futures? No –
Writing or investing in other commodity futures? No –
Investments in restricted securities? Yes No
Investments in shares of other investment companies? Yes No
Investments in securities of foreign issuers? Yes to both
Currency exchange transactions? No –
Loaning portfolio securities? Yes No
Borrowing of money? Yes No
Purchases/sales by certain exempted affiliated persons? Yes No
Margin purchases? No –
Short selling? No –
S 1: Portfolio Turnover
71. Portfolio turnover rate for the period:
Purchases ($000s): 0
Sales ($000s): 0

Monthly average Value of portfolio ($000s): 0

Percent turnover (lesser of Purchases or Sales, divided by Value): 0%
S 1: Financial Info — Income and Expenses
72. The number of months covered by the values in Items 72 and 73: 12

Income ($000s)
Net interest income .............................................. 3,553
Net dividend income .............................................. –
Account maintenance fees ......................................... –
Net other income ................................................. –

Expenses ($000s)
Advisory fees .................................................... 756
Administrator fees ............................................... –
Salaries and other compensation .................................. –
Shareholder Servicing Agent fees ................................. –
Custodian fees ................................................... 78
Postage .......................................................... –
Printing expenses ................................................ 50
Directors’ fees .................................................. 24
Registration fees ................................................ 4
Taxes ............................................................ –
Interest ......................................................... –
Bookkeeping fees paid to anyone performing this service .......... –
Auditing fees .................................................... 24
Legal fees ....................................................... 10
Marketing/distribution payments, incl. Rule 12b-1 plan payments .. –
Amortization of organization expenses ............................ –
Shareholder meeting expenses ..................................... –
Other expenses ................................................... 7
Total expenses ................................................... 953

Expense reimbursements ($000s): 7

Net investment income ($000s): 2,607

Realized capital gains ($000s): 0
Realized capital losses ($000s): 0

Net unrealized appreciation during the period ($000s): 0
Net unrealized depreciation during the period ($000s): 0

Total income dividends for which the record date passed during the
period ($000s): 2,607

Total capital gains distributions for which the record date passed
during the period ($000s): 0
73. Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income: $0.0131

Distribution of capital gains: $0.0000
Other distributions: $0.0000
S 1: Financial Info — Condensed Balance Sheet Data
74. Assets ($000s)
Cash ............................................................. –
Repurchase agreements ............................................ 24,290
Short-term debt securities, other than repurchase agreements ..... 189,779
Long-term debt securities, including convertible debt ............ –
Preferred, conv. preferred and adjustable-rate preferred stock ... –
Common stock ..................................................... –
Options on equities .............................................. –
Options on all futures ........................................... –
Other investments ................................................ –
Receivables from portfolio instruments sold ...................... –
Receivables from affiliated persons .............................. –
Other receivables ................................................ 1,189
All other assets ................................................. 1
Total assets ..................................................... 215,259

Liabilities ($000s)
Payables for portfolio instruments purchased ..................... –
Amounts owed to affiliated persons ............................... 7
Senior long-term debt ............................................ –
Other liabilities:
Reverse repurchase agreements .................................. –
Short sales .................................................... –
Written options ................................................ –
All other liabilities .......................................... 53

Equity ($000s)
Senior equity .................................................... –
Net assets of common shareholders ................................ 215,199

Number of shares outstanding (000s): 215,246

Net Asset Value (NAV) per share (to nearest cent): $1.00
Mark-to-market NAV per share: $1.0001

Total number of shareholder accounts: 7

Total value of assets in segregated accounts ($000s): 4,991
75. Daily average net assets during the period ($000s): 198,907
Series 2 ↑Information Common to All Funds/Series ↑List of 3 Funds/Series
7. Name: Schwab Markettrack Growth Portfolio II — S#6546

Is this the final Form N-SAR filed for this Fund/Series? No
S 2: Custodian
15.1 Name: Brown Brothers Harriman & Co.
Role: Custodian
Location: Boston, MA

Type of custody: Section 17(f)(1) — Bank
S 2: Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers
24. At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities? Yes

25.
The brokers or dealers, or their parents (issuers):
25.1 Name: JP Morgan Chase & Co.
IRS #: 13-3224016
Type of security owned: Equity
Value of securities owned at period end ($000s): 48
25.2 Name: Morgan Stanley
IRS #: 13-2655998
Type of security owned: Equity
Value of securities owned at period end ($000s): 41
25.3 Name: Goldman Sachs Group, Inc.
IRS #: 13-5108880
Type of security owned: Equity
Value of securities owned at period end ($000s): 37
25.4 Name: Merrill Lynch & Co., Inc.
IRS #: 13-5674085
Type of security owned: Equity
Value of securities owned at period end ($000s): 34
25.5 Name: Lehman Brothers Holdings, Inc.
IRS #: 13-2518466
Type of security owned: Equity
Value of securities owned at period end ($000s): 16
25.6 Name: Bear Stearns Cos., Inc.
IRS #: 13-3299429
Type of security owned: Equity
Value of securities owned at period end ($000s): 7
S 2: Sales and Repurchases
28. Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
1st Month of period: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 320
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 702
2nd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 892
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 256
3rd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 548
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 680
4th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 553
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 560
5th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 876
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 255
6th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 652
Reinvestment of dividends and distributions ................ 430
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 128

Total of all months: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 3,841
Reinvestment of dividends and distributions ................ 430
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 2,581

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s): 0
S 2: Advisory Fee
45. Did the Registrant/Series have an advisory contract during the period? Yes
46. Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period? No
47. Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets? Yes
48. Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
Single-fee rate: 0.0%
Step-fee rates:
For 1st $000s: 500,000
Annual rate: 0.44%
& Above $000s: 500,000
Annual rate: 0.39%
S 2: Miscellaneous Info
55. Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
Overdrafts? No
Bank loans? Yes
56. During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies? Yes
57. Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend? No
S 2: Classification and Asset Allocation
62. Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities? No
66. Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities? Yes

Which best describes its primary investment objective:

Aggressive capital appreciation? No
Capital appreciation? No
Growth? No
Growth and income? Yes
Income? No
Total return? No
67. Is the Registrant/Series a “balanced” Fund? No
68. Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
Engaged primarily in production or distribution of precious metals? No
Located primarily in countries other than the United States? No
69. Is the Registrant/Series an index Fund? No
S 2: Investment Practices
70. Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity Permitted Engaged In
Writing or investing in repurchase agreements? Yes No
Writing or investing in options on equities? Yes No
Writing or investing in options on debt securities? Yes No
Writing or investing in options on stock indices? Yes No
Writing or investing in interest rate futures? Yes No
Writing or investing in stock index futures? Yes No
Writing or investing in options on futures? Yes No
Writing or investing in options on stock index futures? Yes No
Writing or investing in other commodity futures? No –
Investments in restricted securities? Yes No
Investments in shares of other investment companies? Yes to both
Investments in securities of foreign issuers? Yes to both
Currency exchange transactions? Yes No
Loaning portfolio securities? Yes No
Borrowing of money? Yes No
Purchases/sales by certain exempted affiliated persons? Yes to both
Margin purchases? No –
Short selling? Yes No
S 2: Portfolio Turnover
71. Portfolio turnover rate for the period:
Purchases ($000s): 7,987
Sales ($000s): 5,954

Monthly average Value of portfolio ($000s): 19,873

Percent turnover (lesser of Purchases or Sales, divided by Value): 30%
S 2: Financial Info — Income and Expenses
72. The number of months covered by the values in Items 72 and 73: 12

Income ($000s)
Net interest income .............................................. 3
Net dividend income .............................................. 436
Account maintenance fees ......................................... –
Net other income ................................................. –

Expenses ($000s)
Advisory fees .................................................... 92
Administrator fees ............................................... –
Salaries and other compensation .................................. –
Shareholder Servicing Agent fees ................................. –
Custodian fees ................................................... 33
Postage .......................................................... –
Printing expenses ................................................ 32
Directors’ fees .................................................. 9
Registration fees ................................................ –
Taxes ............................................................ –
Interest ......................................................... –
Bookkeeping fees paid to anyone performing this service .......... 3
Auditing fees .................................................... 30
Legal fees ....................................................... 1
Marketing/distribution payments, incl. Rule 12b-1 plan payments .. –
Amortization of organization expenses ............................ –
Shareholder meeting expenses ..................................... –
Other expenses ................................................... 10
Total expenses ................................................... 210

Expense reimbursements ($000s): 105

Net investment income ($000s): 334

Realized capital gains ($000s): 52
Realized capital losses ($000s): 665

Net unrealized appreciation during the period ($000s): 0
Net unrealized depreciation during the period ($000s): 3,273

Total income dividends for which the record date passed during the
period ($000s): 362

Total capital gains distributions for which the record date passed
during the period ($000s): 68
73. Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income: $0.1973

Distribution of capital gains: $0.0373
Other distributions: $0.0000
S 2: Financial Info — Condensed Balance Sheet Data
74. Assets ($000s)
Cash ............................................................. –
Repurchase agreements ............................................ –
Short-term debt securities, other than repurchase agreements ..... 1,155
Long-term debt securities, including convertible debt ............ –
Preferred, conv. preferred and adjustable-rate preferred stock ... –
Common stock ..................................................... 8,007
Options on equities .............................................. –
Options on all futures ........................................... –
Other investments ................................................ 11,242
Receivables from portfolio instruments sold ...................... –
Receivables from affiliated persons .............................. 1
Other receivables ................................................ 50
All other assets ................................................. –
Total assets ..................................................... 20,455

Liabilities ($000s)
Payables for portfolio instruments purchased ..................... 74
Amounts owed to affiliated persons ............................... –
Senior long-term debt ............................................ –
Other liabilities:
Reverse repurchase agreements .................................. –
Short sales .................................................... –
Written options ................................................ –
All other liabilities .......................................... 30

Equity ($000s)
Senior equity .................................................... –
Net assets of common shareholders ................................ 20,351

Number of shares outstanding (000s): 1,894

Net Asset Value (NAV) per share (to nearest cent): $10.75

Total number of shareholder accounts: 3

Total value of assets in segregated accounts ($000s): 224
75. Monthly average net assets during the period ($000s): 20,929
Series 3 ↑Information Common to All Funds/Series ↑List of 3 Funds/Series
7. Name: Schwab S&P 500 Portfolio [ now
Schwab S&P 500 Index Portfolio ] — S#6547

Is this the final Form N-SAR filed for this Fund/Series? No
S 3: Custodian
15.1 Name: PFPC Trust Co.
Role: Custodian
Location: Philadelphia, PA

Type of custody: Section 17(f)(1) — Bank
15.2 Name: JP Morgan Chase Bank
Role: Sub-Custodian
Location: New York, NY

Type of custody: Section 17(f)(1) — Bank
S 3: Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers
24. At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities? Yes

25.
The brokers or dealers, or their parents (issuers):
25.1 Name: JP Morgan Chase & Co.
IRS #: 13-3224016
Type of security owned: Equity
Value of securities owned at period end ($000s): 562
25.2 Name: Morgan Stanley
IRS #: 13-2655998
Type of security owned: Equity
Value of securities owned at period end ($000s): 513
25.3 Name: Goldman Sachs Group Inc.
IRS #: 13-5108880
Type of security owned: Equity
Value of securities owned at period end ($000s): 388
25.4 Name: Merrill Lynch & Co., Inc.
IRS #: 13-5674085
Type of security owned: Equity
Value of securities owned at period end ($000s): 387
25.5 Name: Lehman Brothers Holdings, Inc.
IRS #: 13-2518466
Type of security owned: Equity
Value of securities owned at period end ($000s): 144
25.6 Name: Bear Stearns Cos., Inc.
IRS #: 13-3299429
Type of security owned: Equity
Value of securities owned at period end ($000s): 66
S 3: Sales and Repurchases
28. Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
1st Month of period: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 2,539
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 6,419
2nd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 3,098
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 1,801
3rd Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 1,098
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 2,143
4th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 4,525
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 2,740
5th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 2,018
Reinvestment of dividends and distributions ................ –
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 2,292
6th Month:
Total NAV of shares sold:
New sales (including exchanges) ............................ 1,883
Reinvestment of dividends and distributions ................ 1,322
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 1,314

Total of all months: ($000s)
Total NAV of shares sold:
New sales (including exchanges) ............................ 15,161
Reinvestment of dividends and distributions ................ 1,322
Other ...................................................... –
Total NAV of shares redeemed & repurchased (inc. exchanges) .. 16,709

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s): 0
S 3: Advisory Fee
45. Did the Registrant/Series have an advisory contract during the period? Yes
46. Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period? No
47. Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets? Yes
48. Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
Single-fee rate: 0.0%
Step-fee rates:
For 1st $000s: 500,000
Annual rate: 0.2%
& Above $000s: 500,000
Annual rate: 0.17%
S 3: Miscellaneous Info
55. Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
Overdrafts? No
Bank loans? Yes
56. During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies? Yes
57. Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend? No
S 3: Classification and Asset Allocation
62. Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities? No
66. Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities? Yes

Which best describes its primary investment objective:

Aggressive capital appreciation? No
Capital appreciation? No
Growth? Yes
Growth and income? No
Income? No
Total return? No
67. Is the Registrant/Series a “balanced” Fund? No
68. Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
Engaged primarily in production or distribution of precious metals? No
Located primarily in countries other than the United States? No
69. Is the Registrant/Series an index Fund? Yes
S 3: Investment Practices
70. Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity Permitted Engaged In
Writing or investing in repurchase agreements? Yes No
Writing or investing in options on equities? Yes No
Writing or investing in options on debt securities? Yes No
Writing or investing in options on stock indices? Yes No
Writing or investing in interest rate futures? Yes No
Writing or investing in stock index futures? Yes to both
Writing or investing in options on futures? Yes No
Writing or investing in options on stock index futures? Yes No
Writing or investing in other commodity futures? No –
Investments in restricted securities? Yes No
Investments in shares of other investment companies? Yes to both
Investments in securities of foreign issuers? Yes to both
Currency exchange transactions? Yes No
Loaning portfolio securities? Yes to both
Borrowing of money? Yes No
Purchases/sales by certain exempted affiliated persons? Yes to both
Margin purchases? No –
Short selling? Yes No
S 3: Portfolio Turnover
71. Portfolio turnover rate for the period:
Purchases ($000s): 14,157
Sales ($000s): 11,762

Monthly average Value of portfolio ($000s): 109,597

Percent turnover (lesser of Purchases or Sales, divided by Value): 11%
S 3: Financial Info — Income and Expenses
72. The number of months covered by the values in Items 72 and 73: 12

Income ($000s)
Net interest income .............................................. 29
Net dividend income .............................................. 1,757
Account maintenance fees ......................................... –
Net other income ................................................. 4

Expenses ($000s)
Advisory fees .................................................... 223
Administrator fees ............................................... –
Salaries and other compensation .................................. –
Shareholder Servicing Agent fees ................................. –
Custodian fees ................................................... 23
Postage .......................................................... –
Printing expenses ................................................ 50
Directors’ fees .................................................. 20
Registration fees ................................................ –
Taxes ............................................................ –
Interest ......................................................... 1
Bookkeeping fees paid to anyone performing this service .......... 16
Auditing fees .................................................... 32
Legal fees ....................................................... 5
Marketing/distribution payments, incl. Rule 12b-1 plan payments .. –
Amortization of organization expenses ............................ –
Shareholder meeting expenses ..................................... –
Other expenses ................................................... 23
Total expenses ................................................... 393

Expense reimbursements ($000s): 81

Net investment income ($000s): 1,478

Realized capital gains ($000s): 446
Realized capital losses ($000s): 7,549

Net unrealized appreciation during the period ($000s): 0
Net unrealized depreciation during the period ($000s): 0

Total income dividends for which the record date passed during the
period ($000s): 1,322

Dividends from net investment income: $0.1722

Distribution of capital gains: $0.0000
Other distributions: $0.0000
S 3: Financial Info — Condensed Balance Sheet Data
74. Assets ($000s)
Cash ............................................................. –
Repurchase agreements ............................................ –
Short-term debt securities, other than repurchase agreements ..... 2,676
Long-term debt securities, including convertible debt ............ –
Preferred, conv. preferred and adjustable-rate preferred stock ... –
Common stock ..................................................... 95,562
Options on equities .............................................. –
Options on all futures ........................................... –
Other investments ................................................ –
Receivables from portfolio instruments sold ...................... –
Receivables from affiliated persons .............................. –
Other receivables ................................................ 482
All other assets ................................................. 1,653
Total assets ..................................................... 100,373

Liabilities ($000s)
Payables for portfolio instruments purchased ..................... 368
Amounts owed to affiliated persons ............................... 2
Senior long-term debt ............................................ –
Other liabilities:
Reverse repurchase agreements .................................. –
Short sales .................................................... –
Written options ................................................ –
All other liabilities .......................................... 1,704

Equity ($000s)
Senior equity .................................................... –
Net assets of common shareholders ................................ 98,299

Number of shares outstanding (000s): 7,765

Net Asset Value (NAV) per share (to nearest cent): $12.66

Total number of shareholder accounts: 3

Total value of assets in segregated accounts ($000s): 10,121
75. Monthly average net assets during the period ($000s): 112,000
Signature ↑Top of Form N-SAR
/s/ Gregory Hand
Name: Gregory Hand
Title: Assistant Treasurer

↑Top

Filing Submission 0001041062-03-000068 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Schwab Annuity Portfolios – ‘NSAR-B’ for 12/31/02

On: Friday, 2/28/03, at 3:55pm ET · Effective: 2/28/03 · For: 12/31/02 · Accession #: 1041062-3-68 · File #: 811-08314

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Annual Report by an Investment Company — Form N-SAR — ICA’40Filing Table of Contents

‘NSAR-B’ — Annual Report by an Investment Company

Annual Report by an Investment Company — Form N-SAR — ICA’40
Filing Table of Contents