<PAGE> 1
SCHWABFUNDS(R)
[LOGO]
SCHWAB
ASSET DIRECTOR(R)
FUNDS
SEMI-ANNUAL REPORT
APRIL 30, 1996
[Photo of the Schwab Building, San Francisco, California]
<PAGE> 2
Dear Shareholder,
[Photo of I'd like to take this opportunity to share some thoughts on
Charles mutual fund investing and tell you how we're working to expand
R. Schwab] our offerings and services to keep pace with your changing
needs.
First, however, I want to extend a personal welcome to the many thousands of new
shareholders who've joined the SchwabFunds Family(R) in the last six months.
With your support, we've become one of the largest and fastest-growing
organizations in the mutual fund industry. Today, Charles Schwab Investment
Management, Inc. serves over 1.8 million shareholders with total assets under
management in excess of $35 billion. In six years, SchwabFunds(R) has grown from
just a few funds to a mutual fund complex of 24 funds covering a broad range of
financial markets and investing styles.
New investing strategies. Since our last report, we've introduced five new
funds, each built on specific, time-tested strategies. The Schwab Asset
Director(R) Funds help you diversify your portfolio through asset allocation,
the Schwab S&P 500 Fund seeks to track U.S. stock market performance through
indexing, and the Schwab Analytics Fund uses advanced quantitative methods to
identify new investment opportunities. Along with our other offerings, these new
funds give you powerful tools you can use to help construct a custom investment
portfolio that matches your individual goals. And, of course, they also allow
you to tap into the combined investing expertise of our highly experienced team
of professional portfolio managers.
TIME-TESTED INVESTING STRATEGIES THAT OFFER YOU AN EXPANDING
RANGE OF OPPORTUNITIES
ENHANCING SHAREHOLDER COMMUNICATIONS. Our commitment to shareholders goes beyond
simply offering you new investment opportunities. We also want to help you
become a more informed mutual fund investor by providing the in-depth
information you need to help manage your portfolio more effectively. Toward that
end, we've changed the format of this report to make it more accessible and
informative.
WE NEED YOUR INPUT. We've also included a postage-paid reply card you can use to
give us your feedback on the new report format. Please take a few minutes to
complete it. Your responses will help us communicate even more effectively with
you in the future. If you'd like more information on any of the funds in the
SchwabFunds Family, contact your financial advisor or call 1-800-2 NO-LOAD
(1-800-266-5623).
Our representatives will be happy to provide you with a free prospectus, which
contains more complete information on fund risks, charges and expenses. Please
read it carefully before investing.
Thank you for placing your trust in us. We value your confidence in our efforts
to date, and we'll continue working hard to offer you an even broader range of
strategic investment opportunities in the future.
/s/ Charles R. Schwab
Charles R. Schwab
Chairman
Cover: The Schwab Building, San Francisco, California
<PAGE> 3
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<PAGE> 5
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
GROWTH IN ASSETS AND NUMBER OF SHAREHOLDERS................. 2
NET ASSET VALUE (NAV)....................................... 2
PERFORMANCE................................................. 3
DISTRIBUTIONS............................................... 3
HIGH GROWTH FUND SUMMARY.................................... 4
BALANCED GROWTH FUND SUMMARY................................ 6
CONSERVATIVE GROWTH FUND SUMMARY............................ 8
MARKET OVERVIEW............................................. 10
QUESTIONS TO THE PORTFOLIO MANAGEMENT TEAM.................. 12
GLOSSARY.................................................... 15
FINANCIAL STATEMENTS........................................ 16
NOTES TO FINANCIAL STATEMENTS............................... 82
</TABLE>
<PAGE> 6
We are pleased to report on the performance of your investment in the Schwab
Asset Director(R) Funds for the period beginning November 20, 1995*, and ending
April 30, 1996. This family of three asset allocation funds provides
diversification among the major investment categories: large company stocks,
small company stocks, international stocks, bonds, and cash.
GROWTH IN ASSETS AND NUMBER OF SHAREHOLDERS
11/20/95*
<TABLE>
<CAPTION>
ASSETS ACCOUNTS
----------- ---------
<S> <C> <C>
Asset Director-High Growth Fund $59,054,791 10,543
Asset Director-Balanced Growth Fund 41,228,602 6,247
Asset Director-Conservative Growth Fund 14,756,420 2,164
</TABLE>
4/30/96
<TABLE>
<CAPTION>
ASSETS ACCOUNTS
----------- ---------
<S> <C> <C>
Asset Director-High Growth Fund $94,856,581 14,325
Asset Director-Balanced Growth Fund 69,009,954 8,493
Asset Director-Conservative Growth Fund 21,733,896 2,833
</TABLE>
NET ASSET VALUE (NAV) IN $
<TABLE>
<CAPTION>
High Growth Fund Balanced Growth Fund Conservative Growth Fund
<S> <C> <C> <C>
11/20/95+ 10.00 10.00 10.00
4/30/96 10.78 10.55 10.23
Change +0.78 +0.55 +0.23
</TABLE>
*Inception Date
+Opening NAV
2
<PAGE> 7
PERFORMANCE
<TABLE>
<CAPTION>
Cumulative Total Return Since Fund Inception (11/20/95 - 4/30/96)
<S> <C>
High Growth Fund 8.03%
Balanced Growth Fund 5.81%
Conservative Growth Fund 3.37%
S&P 500(R) Index 10.11%
Lehman Brothers Mutual Fund -0.74%
General U.S. Government Index
</TABLE>
As of March 31, 1996, the cumulative total return since inception for the High
Growth Fund, the Balanced Growth Fund, and the Conservative Growth Fund was
6.23%, 4.60%, and 2.87%, respectively.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. The Investment Manager and
Schwab waived a portion of their fees and have guaranteed that each Fund's total
operating expenses will not exceed 0.89% through at least February 28, 1997.
Without this fee waiver and guarantee, the cumulative total return since
inception for the period ended April 30, 1996, for the High Growth Fund, the
Balanced Growth Fund, and the Conservative Growth Fund would have been 7.63%,
5.41%, and 2.67%, respectively. For the period ended March 31, 1996, the
cumulative total return since inception without the fee waiver and guarantee for
the High Growth Fund, the Balanced Growth Fund, and the Conservative Growth Fund
would have been 5.93%, 4.20%, and 2.16%, respectively. Indices are unmanaged,
and unlike the Funds, do not reflect payment of advisory fees and other expenses
associated with investment in the Funds. Investors cannot directly invest in an
index. Total return assumes reinvestment of all dividends and capital gain
distributions, if any.
DISTRIBUTIONS PER SHARE
11/20/95 (INCEPTION) THROUGH 4/30/96
<TABLE>
<CAPTION>
High Growth Fund Balanced Growth Fund Conservative Growth Fund
<S> <C> <C> <C>
Number 1 1 2
Dividends $ 0.02 $ 0.03 $ 0.11
Capital Gains -- -- --
Total $ 0.02 $ 0.03 $ 0.11
</TABLE>
3
<PAGE> 8
HIGH GROWTH FUND SUMMARY (1)
(AS OF APRIL 30, 1996)
The High Growth Fund seeks to provide high capital growth with less volatility
than an all-stock portfolio. Of the three Asset Director(R) Funds, this Fund
offers the greatest exposure to stocks.
ASSET MIX
[The following is a pie chart illustrating the percentage breakdown of each
asset category and stock subcategory.]
<TABLE>
<S> <C> <C>
STOCKS 77.4%
Large Company 37.0%
International 19.8%
Small Company 20.6%
BONDS 17.5%
CASH 5.1%
</TABLE>
UNDER NORMAL MARKET
CONDITIONS THE TARGET MIX IS:
<TABLE>
<S> <C> <C>
STOCKS 80%
Large Company 40%
International 20%
Small Comapny 20%
BONDS 15%
CASH 5%
</TABLE>
The stock portion of this Fund
can vary between 65% and 95%.
U.S. STOCKS
- --------------------------------------------------------------------------------
On April 30, 1996, 57.6% of the Fund's Investments were invested in a broad
range of U.S. economic sectors, as illustrated below:
[The following is a pie chart illustrating the percentage breakdown of U.S.
economic sectors.]
<TABLE>
<S> <C>
Consumer Non-Durables 29.9%
Consumer Durables 3.1%
Utilities 10.3%
Transportation 2.4%
Technology 12.9%
Producer Goods &
Manufacturing 6.6%
Materials & Service 12.8%
Finance 14.5%
Energy 7.5%
</TABLE>
A complete listing of industries and companies represented in the Fund's
portfolio can be found in the "Statement of Net Assets" section of this
report.
(1) The following information is not indicative of the Fund's asset mix or
holdings after April 30, 1996. A complete listing of the High Growth Fund's
holdings (large company, small company, and international stocks; bonds; and
cash) as of April 30, 1996, can be found in the "Statement of Net Assets"
section of this report. Unlike in the "Statement of Net Assets," information is
shown here as a percentage of the Fund's Investments, not as a percentage of the
Fund's net assets.
4
<PAGE> 9
U.S. STOCKS -- LARGE COMPANY (37.0% OF FUND INVESTMENTS)
Number of holdings: 500
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
General Electric Co. 0.97
Exxon Corp. 0.81
Coca Cola Co. 0.78
AT&T Corp. 0.74
Philip Morris Cos., Inc. 0.59
TOTAL 3.89
</TABLE>
U.S. STOCKS -- SMALL COMPANY (20.6% OF FUND INVESTMENTS)
Number of holdings: 1,032
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
Presstek Inc. 0.13
Security Dynamics Technology 0.12
Pairgain Technologies 0.09
Medic Computer Systems, Inc. 0.08
Robert Half International, Inc. 0.08
TOTAL 0.50
</TABLE>
INTERNATIONAL STOCKS -- (19.8% OF FUND INVESTMENTS)
- --------------------------------------------------------------------------------
Number of holdings: 379
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company Country % of Fund Investments
<S> <C> <C>
Royal Dutch Petroleum Netherlands 0.37
Roche Holdings AG Switzerland 0.37
Nippon Telegraph & Telephone Corp. Japan 0.33
Bank of Tokyo Mitsubishi Japan 0.30
British Petroleum United Kingdom 0.24
TOTAL 1.61
</TABLE>
BONDS -- (17.5% OF FUND INVESTMENTS)
Number of issues held: 3
Average maturity: 25.25 years
Effective duration: 11.40 years
<TABLE>
<CAPTION>
MATURITY BREAKDOWN Years to Maturity % of Fund Investments
<S> <C> <C>
20 - 30 Years 17.5
</TABLE>
5
<PAGE> 10
BALANCED GROWTH FUND SUMMARY (2)
(AS OF APRIL 30, 1996)
The Balanced Growth Fund seeks to provide maximum total return, including both
capital growth and income. This Fund invests in a more balanced mix of stocks
and bonds.
ASSET MIX
[The following is a pie chart illustrating the percentage breakdown of each
asset category and stock subcategory.]
<TABLE>
<S> <C> <C>
STOCKS 57.8%
Large Company 28.0%
International 14.7%
Small Co. 15.1%
BONDS 36.0%
CASH 6.2%
</TABLE>
UNDER NORMAL MARKET
CONDITIONS THE TARGET MIX IS:
<TABLE>
<S> <C> <C>
STOCKS 60%
Large Company 30%
International 15%
Small Co. 15%
BONDS 35%
CASH 5%
</TABLE>
The stock portion of this Fund
can vary between 50% and 70%.
U.S. STOCKS
- --------------------------------------------------------------------------------
On April 30, 1996, 43.1% of the Fund's Investments were invested in a broad
range of U.S. economic sectors, as illustrated below:
[The following is a pie chart illustrating the percentage breakdown of U.S.
economic sectors.]
<TABLE>
<S> <C>
Consumer Non-Durables 30.1%
Consumer Durables 3.2%
Utilities 10.2%
Transportation 2.4%
Technology 12.6%
Producer Goods &
Manufacturing 6.8%
Materials & Service 12.7%
Finance 14.5%
Energy 7.5%
</TABLE>
A complete listing of the industries and companies represented in the Fund's
portfolio can be found in the "Statement of Net Assets" section of this report.
(2) The following information is not indicative of the Fund's asset mix or
holdings after April 30, 1996. A complete listing of the Balanced Growth Fund's
holdings (large company, small company, and international stocks; bonds; and
cash) as of April 30, 1996, can be found in the "Statement of Net Assets"
section of this report. Unlike in the "Statement of Net Assets," information
is shown here as a percentage of the Fund's Investments, not as a percentage
of the Fund's net assets.
6
<PAGE> 11
U.S. STOCKS -- LARGE COMPANY (28.0% OF FUND INVESTMENTS)
Number of holdings: 500
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
General Electric Co. 0.73
Exxon Corp. 0.60
Coca Cola Co. 0.59
AT&T Corp. 0.55
Royal Dutch Petroleum Co. 0.48
TOTAL 2.95
</TABLE>
U.S. STOCKS -- SMALL COMPANY (15.1% OF FUND INVESTMENTS)
Number of holdings: 995
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
Presstek Inc. 0.10
Boise Cascade Office Products Corp. 0.08
Trinova Corp. 0.08
Iomega Corp. 0.07
Pairgain Technologies 0.07
TOTAL 0.40
</TABLE>
INTERNATIONAL STOCKS -- (14.7% OF FUND INVESTMENTS)
- --------------------------------------------------------------------------------
Number of holdings: 368
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company Country % of Fund Investments
<S> <C> <C>
Roche Holdings AG Switzerland 0.28
Royal Dutch Petroleum Co. Netherlands 0.28
Nippon Telegraph & Telephone Corp. Japan 0.25
Bank of Tokyo Mitsubishi Japan 0.19
British Petroleum United Kingdom 0.19
TOTAL 1.19
</TABLE>
BONDS -- (36.0% OF FUND INVESTMENTS)
- --------------------------------------------------------------------------------
Number of issues held: 21
Average maturity: 14.00 years
Effective duration: 6.95 years
<TABLE>
<CAPTION>
MATURITY BREAKDOWN Years to Maturity % of Fund Investments
<S> <C> <C>
0-1 1.53
1-3 7.96
3-5 3.48
5-10 6.12
10-20 0.84
20-30 16.07
</TABLE>
7
<PAGE> 12
CONSERVATIVE GROWTH FUND SUMMARY (3)
(AS OF APRIL 30, 1996)
The Conservative Growth Fund seeks to provide income and more growth potential
than an all-bond portfolio. This Fund normally keeps the majority of its assets
invested in bonds; its stock component is designed to help offset inflation.
ASSET MIX
[The following is a pie chart illustrating the percentage breakdown of each
asset category and stock subcategory.]
<TABLE>
<S> <C> <C>
STOCKS 40.5%
Large Company 18.4%
International 10.8%
Small Company 11.3%
BONDS 56.1%
CASH 3.4%
</TABLE>
UNDER NORMAL MARKET
CONDITIONS THE TARGET MIX IS:
<TABLE>
<S> <C> <C>
STOCKS 40%
Large Comapny 20%
International 10%
Small Company 10%
BONDS 55%
CASH 5%
</TABLE>
The stock portion of this Fund
can vary between 30% and 50%.
U.S. STOCKS
- --------------------------------------------------------------------------------
On April 30, 1996, 29.7% of the Fund's Investments were invested in a broad
range of U.S. economic sectors, as illustrated below:
[The following is a pie chart illustrating the percentage breakdown of U.S.
economic sectors.]
<TABLE>
<S> <C>
Consumer Non-Durables 29.4%
Consumer Durables 3.2%
Utilities 9.7%
Transportation 2.8%
Technology 12.9%
Producer Goods &
Manufacturing 7.3%
Materials & Service 13.1%
Finance 15.1%
Energy 6.5%
</TABLE>
A complete listing of the industries and companies represented in the Fund's
portfolio can be found in the "Statement of Net Assets" section of this report.
(3) The following information is not indicative of the Fund's asset mix or
holdings after April 30, 1996. A complete listing of the Conservative Growth
Fund's holdings (large company, small company, and international stocks; bonds;
and cash) as of April 30, 1996, can be found in the "Statement of Net Assets"
section of this report. Unlike in the "Statement of Net Assets," information is
shown here as a percentage of the Fund's Investments, not as a percentage of the
Fund's net assets.
8
<PAGE> 13
U.S. STOCKS -- LARGE COMPANY (18.4% OF FUND INVESTMENTS)
Number of holdings: 430
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
General Electric Co. 0.43
Exxon Corp. 0.31
AT&T Corp. 0.31
Coca Cola Co. 0.30
Philip Morris Cos., Inc. 0.25
TOTAL 1.60
</TABLE>
U.S. STOCKS -- SMALL COMPANY (11.3% OF FUND INVESTMENTS)
Number of holdings: 725
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company % of Fund Investments
<S> <C>
Seaboard Corp. 0.20
Minerals Technologies 0.11
Alexander & Alexander 0.10
Trinova Corp. 0.10
Ball Corp. 0.09
TOTAL 0.60
</TABLE>
INTERNATIONAL STOCKS -- (10.8% OF FUND INVESTMENTS)
- --------------------------------------------------------------------------------
Number of holdings: 253
<TABLE>
<CAPTION>
TOP 5 STOCK HOLDINGS Company Country % of Fund Investments
<S> <C> <C>
Kokusai Denki (KDD) Japan 0.45
Seven-Eleven Japan Japan 0.36
Ito-Yokado Co. Japan 0.27
Royal Dutch Petroleum Co. Netherlands 0.21
Bank of Tokyo Mitsubishi Japan 0.20
TOTAL 1.49
</TABLE>
BONDS -- (56.1% OF FUND INVESTMENTS)
- --------------------------------------------------------------------------------
Number of issues held: 19
Average maturity: 12.17 years
Effective duration: 6.25 years
<TABLE>
<CAPTION>
MATURITY BREAKDOWN Years to Maturity % of Fund Investments
<S> <C> <C>
0-1 4.64
1-3 13.52
3-5 8.07
5-10 7.88
10-20 1.68
20-30 20.35
</TABLE>
9
<PAGE> 14
FROM THE PORTFOLIO MANAGEMENT TEAM OF CHARLES SCHWAB INVESTMENT MANAGEMENT, INC.
Stephen B. Ward - Senior Vice President and Chief Investment Officer
Geri Hom - Portfolio Manager, Equities
Andrea Regan - Portfolio Manager, Bonds and Cash
MARKET OVERVIEW:
ECONOMIC HIGHLIGHTS
- --------------------------------------------------------------------------------
The Federal Reserve Board (the "Fed") appears to have been successful in
engineering a "soft landing" for the economy, which has resulted in a sixth year
of economic expansion. The goal of the soft landing strategy was to raise
interest rates sufficiently during 1994 and early 1995 to slow the rate of
economic growth (thereby reducing the threat of rising inflation) and yet not
cause a recession. The growth rate of the real Gross Domestic Product (GDP) did
indeed slow from 3.5% in 1994 to 2.0% in 1995, and inflation, as measured by the
Consumer Price Index (CPI), was 2.8% during 1995, its fifth consecutive year
under 3.0%. In light of the relatively low inflation and the economy's slow rate
of growth, the Fed initiated a series of three 0.25% decreases in the federal
funds rate target in July and December of 1995, and again in January of 1996.
The federal funds rate on April 30, 1996 was 5.25%.
Many economic observers were surprised by the relatively strong levels of the
real GDP growth rate (initially 2.8% and subsequently revised to 2.3%) and the
CPI of 4.1% during the first quarter of 1996. Although one quarter does not
establish a trend, these results caused most market observers to reevaluate the
likelihood of further federal funds rate reductions during 1996 and to speculate
about the possibility of increases in the future.
DOMESTIC EQUITY MARKET HIGHLIGHTS
- --------------------------------------------------------------------------------
Domestic equities continued their robust rally as was reflected in the new highs
achieved by all major domestic equity indices during the reporting period. Most
market observers attribute the market's strong performance to three key
developments: the second straight year of impressive corporate earnings growth;
a continuation of relatively moderate short- and long-term interest rates
(although rates have increased during 1996); and record levels of cash flowing
into equity mutual funds. As shown on the graph to the right, the small-cap
sector, as represented by the Schwab Small-Cap Index(TM), outperformed the S&P
500(R) Index, the Schwab International Index(R), and the Lehman Mutual Fund
General U.S. Government Index, representing the large-cap stock, international
stock and bond sectors, respectively; the six-month total return of the Schwab
Small-Cap Index was 19.3% and the six-month total return for the S&P 500 Index
was 13.7%. The price-earnings ratio of the S&P 500 Index, 19.3 as of 4/30/96,
continues to be significantly greater than its 30-year mean of 14.5. (4)
(4) Source: Standard & Poor's.
10
<PAGE> 15
TOTAL RETURN PERFORMANCE
<TABLE>
<CAPTION>
S&P 500 Index Schwab Small-Cap Schwab International Lehman MF General
Index(TM) Index(R) US Govt. Index
<S> <C> <C> <C> <C>
11/1/95 1.000 1.000 1.000 1.000
11/30/95 1.044 1.048 1.028 1.016
12/31/95 1.063 1.073 1.068 1.030
1/31/96 1.099 1.070 1.071 1.036
2/29/96 1.110 1.113 1.073 1.015
3/31/96 1.120 1.133 1.093 1.007
4/30/96 1.137 1.193 1.119 1.000
</TABLE>
The graph above shows the performance of four indices from 11/1/95 through
4/30/96. Total return assumes reinvestment of all dividends and capital gain
distributions, if any. Investors cannot invest directly in an index. Therefore,
indices are unmanaged and, unlike funds, do not reflect payment of advisory fees
and other expenses associated with an investment in a fund. PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS.
INTERNATIONAL EQUITY MARKET HIGHLIGHTS
- --------------------------------------------------------------------------------
Although not as strong as the returns experienced in the domestic equities
market, the returns experienced in the international equities market, as
evidenced by the Schwab International Index's 11.9% total return, were very
respectable for the six-month period ended 4/30/96. (5) International returns
were negatively impacted by the relative strength of the U.S. dollar versus
foreign currencies. Expressed in each security's local currency terms, the
Schwa International Index's total return for the six-month period ended
4/30/96 was 16.6%.
BOND MARKET HIGHLIGHTS
- --------------------------------------------------------------------------------
Interest rates declined, causing bond values to increase throughout most of
1995. During the first four months of 1996, the market reversed course with
interest rates rising, causing bond values to decline. The yield on 30-year
treasury bonds reached a low of 5.95% late in December of 1995 and climbed
throughout most of the reporting period to end at 6.90% on 4/30/96. Bond yields
declined throughout most of 1995 due to expectations of slow economic growth
with the potential for recession. In the first quarter of 1996, the economy
showed surprising strength with the potential for undesirable levels of
inflation. This generated a negative reaction in the bond market causing
interest rates to rise and bond values to decline.
(5) The S&P 500 Index, representing large-cap companies in the domestic equities
market, returned 13.7% for the same period.
11
<PAGE> 16
QUESTIONS TO THE PORTFOLIO MANAGEMENT TEAM:
Q. HOW DID THE PERFORMANCE OF THE THREE ASSET DIRECTOR(R) FUNDS COMPARE?
A. ASSET DIRECTOR FUNDS
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
[Line graph comparing the value of a hypothetical $10,000 investment for the
period 11/20/95 through 4/30/96 in the High Growth Fund, the Balanced Growth
Fund, the Conservative Growth Fund, the S&P 500 and the Lehman Mutual Fund
General U.S. Government Index]
<TABLE>
<CAPTION>
High Growth Balanced Growth Conservative Growth S&P 500 Lehman MF Gen
Fund Fund Fund U.S. Govt. Index
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
11/20/95* 10,000 10,000 10,000 10,000 10,000
11/30/95 10,080 10,080 10,080 10,104 10,078
12/31/95 10,292 10,270 10,237 10,299 10,221
1/31/96 10,442 10,390 10,337 10,649 10,283
2/29/96 10,533 10,410 10,297 10,748 10,074
3/31/96 10,623 10,460 10,287 10,851 9,990
4/30/96 10,803 10,581 10,337 11,011 9,926
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURN SINCE INCEPTION
(11/20/95*-4/30/96)
<S> <C>
High Growth Fund 8.03%
Balanced Growth Fund 5.81%
Conservative Growth Fund 3.37%
</TABLE>
*Inception Date
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Principal value and
investment returns will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The Investment Manager and
Schwab waived a portion of their fees and have guaranteed that total operating
expenses will not exceed 0.89% through at least February 28, 1997. Without this
fee waiver and guarantee, the Funds' total returns would have been lower. The
performance graph compares a hypothetical $10,000 investment in each of the
Asset Director Funds since inception on November 20, 1995. Total return assumes
the reinvestment of all dividends and capital gain distributions, if any. This
chart is for hypothetical illustration purposes only.
As shown in the graph above, all three Asset Director Funds earned positive
total returns for the reporting period. Since the three stock sub-categories
(large company, small company, and international) outperformed both the bond and
cash categories, the higher the allocations to stocks the better the
performance. Keep in mind that the target stock allocation is 80% for the High
Growth Fund, 60% for the Balanced Growth Fund, and 40% for the Conservative
Growth Fund.
During the reporting period, the relative performances of the three Funds were
consistent with our long-term expectations. However, there will be periods when
the relative returns of the Funds will be reversed because bonds outperform
stocks. We expect that over the long term the total return performance of the
Conservative Growth Fund will exhibit less volatility than that of the Balanced
Growth Fund, which will in turn exhibit less volatility than that of the High
Growth Fund. Bonds have traditionally exhibited less volatility than stocks. We
expect over the long term that as the proportion of the portfolios' assets
allocated to bonds increases, volatility will decrease.
12
<PAGE> 17
Q. HOW DID THE FUNDS' ACTUAL ASSET MIXES DIFFER FROM THEIR TARGET MIXES?
A. As the following charts show, the Funds were under-weighted in bonds during
the first half of the reporting period. With the low long-term bond yields in
November and December of 1995, the tactical asset allocation model indicated
that the expected return on bonds relative to cash and stocks was not sufficient
to justify allocating the full target allocation to bonds. As a result, the
Funds had a relative over-weighting in cash and stocks during the first half of
the reporting period. In February, as long-term bond yields and stock values
continued to rise, the model began to indicate a series of asset allocation
shifts out of cash and stocks and into bonds. As a result, in March, the Funds
had a slight over-weighting in bonds and under-weighting in stocks relative to
their targets. The Funds remained in this position through the end of the
reporting period.
[Charts indicating the percentage breakdowns of each Fund's target mix and the
actual mix from 11/20/95 through 4/30/96]
HIGH GROWTH FUND
<TABLE>
<CAPTION>
TARGET MIX
<S> <C>
Cash 5%
Bonds 15%
International Equity 20%
Small Cap Equity 20%
Large Cap Equity 40%
</TABLE>
<TABLE>
<CAPTION>
ACTUAL MIX
--------------------------------------------------
DATE Large Cap Small Cap International Bonds Cash
Equity Equity Equity
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/20/95* 43% 20% 20% 0% 17%
11/21/95 43% 20% 20% 0% 17%
11/22/95 43% 20% 20% 0% 17%
11/24/95 43% 20% 20% 0% 17%
11/27/95 43% 20% 20% 0% 17%
11/28/95 43% 20% 20% 0% 17%
11/29/95 43% 20% 20% 0% 17%
11/30/95 43% 20% 20% 0% 17%
12/1/95 43% 20% 20% 0% 17%
12/4/95 43% 20% 20% 0% 17%
12/5/95 43% 20% 20% 0% 17%
12/6/95 43% 20% 20% 0% 17%
12/7/95 43% 20% 20% 0% 17%
12/8/95 43% 20% 20% 0% 17%
12/11/95 43% 20% 20% 0% 17%
12/12/95 43% 20% 20% 0% 17%
12/13/95 43% 20% 20% 0% 17%
12/14/95 43% 20% 20% 0% 17%
12/15/95 43% 20% 20% 0% 17%
12/18/95 43% 20% 20% 0% 17%
12/19/95 43% 20% 20% 0% 17%
12/20/95 43% 20% 20% 0% 17%
12/21/95 43% 20% 20% 0% 17%
12/22/95 43% 20% 20% 0% 17%
12/26/95 43% 20% 20% 0% 17%
12/27/95 43% 20% 20% 0% 17%
12/28/95 43% 20% 20% 0% 17%
12/29/95 43% 20% 20% 0% 17%
1/2/96 43% 20% 20% 0% 17%
1/3/96 43% 20% 20% 0% 17%
1/4/96 43% 20% 20% 0% 17%
1/5/96 46% 20% 20% 0% 14%
1/8/96 46% 20% 20% 0% 14%
1/9/96 46% 20% 20% 0% 14%
1/10/96 46% 20% 20% 0% 14%
1/11/96 46% 20% 20% 0% 14%
1/12/96 46% 20% 20% 0% 14%
1/15/96 46% 20% 20% 0% 14%
1/16/96 46% 20% 20% 0% 14%
1/17/96 46% 20% 20% 0% 14%
1/18/96 46% 20% 20% 0% 14%
1/19/96 46% 20% 20% 0% 14%
1/22/96 46% 20% 20% 0% 14%
1/23/96 46% 20% 20% 0% 14%
1/24/96 46% 20% 20% 0% 14%
1/25/96 46% 20% 20% 0% 14%
1/26/96 46% 20% 20% 0% 14%
1/29/96 46% 20% 20% 0% 14%
1/30/96 46% 20% 20% 0% 14%
1/31/96 46% 20% 20% 0% 14%
2/1/96 46% 20% 20% 0% 14%
2/2/96 43% 20% 20% 3% 14%
2/5/96 43% 20% 20% 6% 11%
2/6/96 43% 20% 20% 6% 11%
2/7/96 43% 20% 20% 6% 11%
2/8/96 43% 20% 20% 6% 11%
2/9/96 43% 20% 20% 6% 11%
2/12/96 43% 20% 20% 6% 11%
2/13/96 43% 20% 20% 6% 11%
2/14/96 43% 20% 20% 6% 11%
2/15/96 43% 20% 20% 6% 11%
2/16/96 43% 20% 20% 6% 11%
2/20/96 43% 20% 20% 9% 8%
2/21/96 40% 20% 20% 12% 8%
2/22/96 40% 20% 20% 12% 8%
2/23/96 40% 20% 20% 12% 8%
2/26/96 40% 20% 20% 15% 5%
2/27/96 40% 20% 20% 15% 5%
2/28/96 40% 20% 20% 15% 5%
2/29/96 40% 20% 20% 15% 5%
3/1/96 40% 20% 20% 12% 8%
3/4/96 40% 20% 20% 12% 8%
3/5/96 40% 20% 20% 12% 8%
3/6/96 40% 20% 20% 12% 8%
3/7/96 40% 20% 20% 15% 5%
3/8/96 40% 20% 20% 15% 5%
3/11/96 40% 20% 20% 15% 5%
3/12/96 40% 20% 20% 15% 5%
3/13/96 40% 20% 20% 15% 5%
3/14/96 40% 20% 20% 15% 5%
3/15/96 40% 20% 20% 15% 5%
3/18/96 37% 20% 20% 18% 5%
3/19/96 37% 20% 20% 18% 5%
3/20/96 37% 20% 20% 18% 5%
3/21/96 37% 20% 20% 18% 5%
3/22/96 37% 20% 20% 18% 5%
3/25/96 37% 20% 20% 18% 5%
3/26/96 37% 20% 20% 18% 5%
3/27/96 37% 20% 20% 18% 5%
3/28/96 37% 20% 20% 18% 5%
3/29/96 37% 20% 20% 18% 5%
4/1/96 37% 20% 20% 18% 5%
4/2/96 37% 20% 20% 18% 5%
4/3/96 37% 20% 20% 18% 5%
4/4/96 37% 20% 20% 18% 5%
4/8/96 37% 20% 20% 18% 5%
4/9/96 37% 20% 20% 18% 5%
4/10/96 37% 20% 20% 18% 5%
4/11/96 37% 20% 20% 18% 5%
4/12/96 37% 20% 20% 18% 5%
4/15/96 37% 20% 20% 18% 5%
4/16/96 37% 20% 20% 18% 5%
4/17/96 37% 20% 20% 18% 5%
4/18/96 37% 20% 20% 18% 5%
4/19/96 37% 20% 20% 18% 5%
4/22/96 37% 20% 20% 18% 5%
4/23/96 37% 20% 20% 18% 5%
4/24/96 37% 20% 20% 18% 5%
4/25/96 37% 20% 20% 18% 5%
4/28/96 37% 20% 20% 18% 5%
4/29/96 37% 20% 20% 18% 5%
4/30/96 37% 20% 20% 18% 5%
</TABLE>
BALANCED GROWTH FUND
<TABLE>
<CAPTION>
TARGET MIX
<S> <C>
Cash 5%
Bonds 35%
International Equity 15%
Small Cap Equity 15%
Large Cap Equity 30%
</TABLE>
<TABLE>
<CAPTION>
ACTUAL MIX
--------------------------------------------------
DATE Large Cap Small Cap International Bonds Cash
Equity Equity Equity
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/20/95* 32% 15% 15% 25% 13%
11/21/95 32% 15% 15% 25% 13%
11/22/95 32% 15% 15% 25% 13%
11/24/95 32% 15% 15% 25% 13%
11/27/95 32% 15% 15% 25% 13%
11/28/95 32% 15% 15% 25% 13%
11/29/95 32% 15% 15% 25% 13%
11/30/95 32% 15% 15% 25% 13%
12/1/95 32% 15% 15% 25% 13%
12/4/95 32% 15% 15% 25% 13%
12/5/95 32% 15% 15% 25% 13%
12/6/95 32% 15% 15% 25% 13%
12/7/95 32% 15% 15% 25% 13%
12/8/95 32% 15% 15% 25% 13%
12/11/95 32% 15% 15% 25% 13%
12/12/95 32% 15% 15% 25% 13%
12/13/95 32% 15% 15% 25% 13%
12/14/95 32% 15% 15% 25% 13%
12/15/95 32% 15% 15% 25% 13%
12/18/95 32% 15% 15% 25% 13%
12/19/95 32% 15% 15% 25% 13%
12/20/95 32% 15% 15% 25% 13%
12/21/95 32% 15% 15% 25% 13%
12/22/95 32% 15% 15% 25% 13%
12/26/95 32% 15% 15% 25% 13%
12/27/95 32% 15% 15% 25% 13%
12/28/95 32% 15% 15% 25% 13%
12/29/95 32% 15% 15% 25% 13%
1/2/96 32% 15% 15% 25% 13%
1/3/96 32% 15% 15% 25% 13%
1/4/96 32% 15% 15% 25% 13%
1/5/96 34% 15% 15% 25% 11%
1/8/96 34% 15% 15% 25% 11%
1/9/96 34% 15% 15% 25% 11%
1/10/96 34% 15% 15% 25% 11%
1/11/96 34% 15% 15% 25% 11%
1/12/96 34% 15% 15% 25% 11%
1/15/96 34% 15% 15% 25% 11%
1/16/96 34% 15% 15% 25% 11%
1/17/96 34% 15% 15% 25% 11%
1/18/96 34% 15% 15% 25% 11%
1/19/96 34% 15% 15% 25% 11%
1/22/96 34% 15% 15% 25% 11%
1/23/96 34% 15% 15% 25% 11%
1/24/96 34% 15% 15% 25% 11%
1/25/96 34% 15% 15% 25% 11%
1/26/96 34% 15% 15% 25% 11%
1/29/96 34% 15% 15% 25% 11%
1/30/96 34% 15% 15% 25% 11%
1/31/96 34% 15% 15% 25% 11%
2/1/96 34% 15% 15% 25% 11%
2/2/96 32% 15% 15% 27% 11%
2/5/96 32% 15% 15% 29% 9%
2/6/96 32% 15% 15% 29% 9%
2/7/96 32% 15% 15% 29% 9%
2/8/96 32% 15% 15% 29% 9%
2/9/96 32% 15% 15% 29% 9%
2/12/96 32% 15% 15% 29% 9%
2/13/96 32% 15% 15% 29% 9%
2/14/96 32% 15% 15% 29% 9%
2/15/96 32% 15% 15% 29% 9%
2/16/96 32% 15% 15% 29% 9%
2/20/96 32% 15% 15% 31% 7%
2/21/96 30% 15% 15% 33% 7%
2/22/96 30% 15% 15% 33% 7%
2/23/96 30% 15% 15% 33% 7%
2/26/96 30% 15% 15% 35% 5%
2/27/96 30% 15% 15% 35% 5%
2/28/96 30% 15% 15% 35% 5%
2/29/96 30% 15% 15% 35% 5%
3/1/96 30% 15% 15% 33% 7%
3/4/96 30% 15% 15% 33% 7%
3/5/96 30% 15% 15% 33% 7%
3/6/96 30% 15% 15% 33% 7%
3/7/96 30% 15% 15% 35% 5%
3/8/96 30% 15% 15% 35% 5%
3/11/96 30% 15% 15% 35% 5%
3/12/96 30% 15% 15% 35% 5%
3/13/96 30% 15% 15% 35% 5%
3/14/96 30% 15% 15% 35% 5%
3/15/96 30% 15% 15% 35% 5%
3/18/96 28% 15% 15% 37% 5%
3/19/96 28% 15% 15% 37% 5%
3/20/96 28% 15% 15% 37% 5%
3/21/96 28% 15% 15% 37% 5%
3/22/96 28% 15% 15% 37% 5%
3/25/96 28% 15% 15% 37% 5%
3/26/96 28% 15% 15% 37% 5%
3/27/96 28% 15% 15% 37% 5%
3/28/96 28% 15% 15% 37% 5%
3/29/96 28% 15% 15% 37% 5%
4/1/96 28% 15% 15% 37% 5%
4/2/96 28% 15% 15% 37% 5%
4/3/96 28% 15% 15% 37% 5%
4/4/96 28% 15% 15% 37% 5%
4/8/96 28% 15% 15% 37% 5%
4/9/96 28% 15% 15% 37% 5%
4/10/96 28% 15% 15% 37% 5%
4/11/96 28% 15% 15% 37% 5%
4/12/96 28% 15% 15% 37% 5%
4/15/96 28% 15% 15% 37% 5%
4/16/96 28% 15% 15% 37% 5%
4/17/96 28% 15% 15% 37% 5%
4/18/96 28% 15% 15% 37% 5%
4/19/96 28% 15% 15% 37% 5%
4/22/96 28% 15% 15% 37% 5%
4/23/96 28% 15% 15% 37% 5%
4/24/96 28% 15% 15% 37% 5%
4/25/96 28% 15% 15% 37% 5%
4/28/96 28% 15% 15% 37% 5%
4/29/96 28% 15% 15% 37% 5%
4/30/96 28% 15% 15% 37% 5%
</TABLE>
CONSERVATIVE GROWTH FUND
<TABLE>
<CAPTION>
TARGET MIX
<S> <C>
Cash 5%
Bonds 55%
International Equity 10%
Small Cap Equity 10%
Large Cap Equity 20%
</TABLE>
<TABLE>
<CAPTION>
ACTUAL MIX
--------------------------------------------------
DATE Large Cap Small Cap International Bonds Cash
Equity Equity Equity
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/20/95* 22% 10% 10% 45% 13%
11/21/95 22% 10% 10% 45% 13%
11/22/95 22% 10% 10% 45% 13%
11/24/95 22% 10% 10% 45% 13%
11/27/95 22% 10% 10% 45% 13%
11/28/95 22% 10% 10% 45% 13%
11/29/95 22% 10% 10% 45% 13%
11/30/95 22% 10% 10% 45% 13%
12/1/95 22% 10% 10% 45% 13%
12/4/95 22% 10% 10% 45% 13%
12/5/95 22% 10% 10% 45% 13%
12/6/95 22% 10% 10% 45% 13%
12/7/95 22% 10% 10% 45% 13%
12/8/95 22% 10% 10% 45% 13%
12/11/95 22% 10% 10% 45% 13%
12/12/95 22% 10% 10% 45% 13%
12/13/95 22% 10% 10% 45% 13%
12/14/95 22% 10% 10% 45% 13%
12/15/95 22% 10% 10% 45% 13%
12/18/95 22% 10% 10% 45% 13%
12/19/95 22% 10% 10% 45% 13%
12/20/95 22% 10% 10% 45% 13%
12/21/95 22% 10% 10% 45% 13%
12/22/95 22% 10% 10% 45% 13%
12/26/95 22% 10% 10% 45% 13%
12/27/95 22% 10% 10% 45% 13%
12/28/95 22% 10% 10% 45% 13%
12/29/95 22% 10% 10% 45% 13%
1/2/96 22% 10% 10% 45% 13%
1/3/96 22% 10% 10% 45% 13%
1/4/96 22% 10% 10% 45% 13%
1/5/96 24% 10% 10% 45% 11%
1/8/96 24% 10% 10% 45% 11%
1/9/96 24% 10% 10% 45% 11%
1/10/96 24% 10% 10% 45% 11%
1/11/96 24% 10% 10% 45% 11%
1/12/96 24% 10% 10% 45% 11%
1/15/96 24% 10% 10% 45% 11%
1/16/96 24% 10% 10% 45% 11%
1/17/96 24% 10% 10% 45% 11%
1/18/96 24% 10% 10% 45% 11%
1/19/96 24% 10% 10% 45% 11%
1/22/96 24% 10% 10% 45% 11%
1/23/96 24% 10% 10% 45% 11%
1/24/96 24% 10% 10% 45% 11%
1/25/96 24% 10% 10% 45% 11%
1/26/96 24% 10% 10% 45% 11%
1/29/96 24% 10% 10% 45% 11%
1/30/96 24% 10% 10% 45% 11%
1/31/96 24% 10% 10% 45% 11%
2/1/96 24% 10% 10% 45% 11%
2/2/96 22% 10% 10% 47% 11%
2/5/96 22% 10% 10% 49% 9%
2/6/96 22% 10% 10% 49% 9%
2/7/96 22% 10% 10% 49% 9%
2/8/96 22% 10% 10% 49% 9%
2/9/96 22% 10% 10% 49% 9%
2/12/96 22% 10% 10% 49% 9%
2/13/96 22% 10% 10% 49% 9%
2/14/96 22% 10% 10% 49% 9%
2/15/96 22% 10% 10% 49% 9%
2/16/96 22% 10% 10% 49% 9%
2/20/96 22% 10% 10% 51% 7%
2/21/96 20% 10% 10% 53% 7%
2/22/96 20% 10% 10% 53% 7%
2/23/96 20% 10% 10% 53% 7%
2/26/96 20% 10% 10% 55% 5%
2/27/96 20% 10% 10% 55% 5%
2/28/96 20% 10% 10% 55% 5%
2/29/96 20% 10% 10% 55% 5%
3/1/96 20% 10% 10% 53% 7%
3/4/96 20% 10% 10% 53% 7%
3/5/96 20% 10% 10% 53% 7%
3/6/96 20% 10% 10% 53% 7%
3/7/96 20% 10% 10% 55% 5%
3/8/96 20% 10% 10% 55% 5%
3/11/96 20% 10% 10% 55% 5%
3/12/96 20% 10% 10% 55% 5%
3/13/96 20% 10% 10% 55% 5%
3/14/96 20% 10% 10% 55% 5%
3/15/96 20% 10% 10% 55% 5%
3/18/96 18% 10% 10% 57% 5%
3/19/96 18% 10% 10% 57% 5%
3/20/96 18% 10% 10% 57% 5%
3/21/96 18% 10% 10% 57% 5%
3/22/96 18% 10% 10% 57% 5%
3/25/96 18% 10% 10% 57% 5%
3/26/96 18% 10% 10% 57% 5%
3/27/96 18% 10% 10% 57% 5%
3/28/96 18% 10% 10% 57% 5%
3/29/96 18% 10% 10% 57% 5%
4/1/96 18% 10% 10% 57% 5%
4/2/96 18% 10% 10% 57% 5%
4/3/96 18% 10% 10% 57% 5%
4/4/96 18% 10% 10% 57% 5%
4/8/96 18% 10% 10% 57% 5%
4/9/96 18% 10% 10% 57% 5%
4/10/96 18% 10% 10% 57% 5%
4/11/96 18% 10% 10% 57% 5%
4/12/96 18% 10% 10% 57% 5%
4/15/96 18% 10% 10% 57% 5%
4/16/96 18% 10% 10% 57% 5%
4/17/96 18% 10% 10% 57% 5%
4/18/96 18% 10% 10% 57% 5%
4/19/96 18% 10% 10% 57% 5%
4/22/96 18% 10% 10% 57% 5%
4/23/96 18% 10% 10% 57% 5%
4/24/96 18% 10% 10% 57% 5%
4/25/96 18% 10% 10% 57% 5%
4/28/96 18% 10% 10% 57% 5%
4/29/96 18% 10% 10% 57% 5%
4/30/96 18% 10% 10% 57% 5%
</TABLE>
13
<PAGE> 18
Q. WHAT ARE THE DEFINED RANGES FOR EACH FUND'S PORTFOLIO AND
HOW ARE THE ASSET ALLOCATION DECISIONS MADE?
A. DEFINED RANGES
<TABLE>
<CAPTION>
HIGH GROWTH FUND BALANCED GROWTH FUND CONSERVATIVE GROWTH FUND
<S> <C> <C> <C> <C> <C>
Stocks 65%-95% Stocks 50%-70% Stocks 30%-50%
Bonds 0%-30% Bonds 25%-45% Bonds 45%-65%
Cash 0%-35% Cash 0%-25% Cash 0%-25%
</TABLE>
The tables above show each of the Asset Director(R) Funds' defined asset
allocation ranges. Within these ranges, the portfolio manager will allocate
assets among stocks, bonds, and cash-equivalents, emphasizing the most
attractive asset category. A tactical asset allocation model is used to measure
the relative value of each asset category and to make recommendations for
allocations. The model attempts to identify relative under- or over-valuation of
various asset classes, taking into account, among other factors, the expected
return and risk for each asset class. The portfolio manager will then emphasize
the under-valued asset classes and de-emphasize the over-valued ones in each
portfolio.
Q. WHAT TRADING STRATEGIES ARE EMPLOYED TO MINIMIZE TRADING COSTS?
A. Given the dynamic nature of these Funds, we are particularly sensitive to
ensuring that trading costs are kept to a minimum and that the asset allocation
strategies are executed with a minimum degree of portfolio turnover. Minimizing
trading costs helps improve total return performance for Fund shareholders.
The portfolio management team has used discretion in a range around each Fund's
asset class target, which permits each asset class value to move up or down with
short-term market movements. This eliminates the need for constant portfolio
rebalancing and allows each Fund to follow its strategy without incurring
excessive transaction costs. The portfolio management team also has established
minimum trade sizes for each asset class and will combine similar trades from
more than one Fund to enable each Fund to realize the cost benefits that accrue
to larger-sized trades.
14
<PAGE> 19
GLOSSARY
LARGE COMPANY STOCKS: Stocks of companies with the largest market
capitalizations (i.e. approximately $1.5 billion and up).
SMALL COMPANY STOCKS: Stocks of companies whose market capitalization is within
a dollar range usually well below that of large companies, or in the lower
portion of a list ranking companies by market capitalization (i.e. the second
1,000 largest companies according to market capitalization).
EFFECTIVE DURATION: The number of years required to receive the present value of
future payments, both interest and principal, from a bond.
AVERAGE MATURITY: The average amount of time until the final payment of a
financial obligation is due.
15
<PAGE> 20
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCK--77.2%
DOMESTIC--57.5%
AEROSPACE/DEFENSE--1.0%
AAR Corp. 500 $ 10,188
Alliant Techsystems
Inc.* 400 18,800
BFGoodrich Co. 300 11,925
Boeing Co. 2,400 197,100
Coltec Industries Inc.* 2,400 31,200
Curtiss-Wright Corp. 100 5,113
Gencorp Inc. 900 12,038
General Dynamics Corp. 400 25,250
Lockheed Martin Corp. 1,400 112,875
McDonnell Douglas Corp. 800 77,200
Northrop Grumman Corp. 400 24,750
OEA, Inc. 1,000 39,250
Orbital Sciences Corp.
Class A* 1,000 13,750
Raytheon Co. 1,700 86,063
Rockwell International
Corp. 1,500 87,750
Rohr Industries Inc.* 400 7,300
Textron Inc. 600 51,450
Thiokol Corp. 500 21,375
Trimble Navigation
Ltd.* 500 12,094
United Technologies
Corp. 900 99,450
-------
944,921
-------
AIR TRANSPORTATION--0.4%
AMR Corp.* 500 44,625
Alaska Air Group Inc.* 300 7,613
America West Airlines,
Inc. Class B* 1,700 35,700
Atlantic Southeast
Airlines Inc. 1,100 27,500
Atlas Air Inc.* 700 31,675
Comair Holdings Inc. 1,300 48,181
Continental Airlines
Inc. Class B* 1,200 68,100
Delta Airlines Inc. 400 32,150
Mesa Airlines Inc.* 900 11,081
Offshore Logistics,
Inc.* 400 5,825
Southwest Airlines Co. 1,400 41,650
Trans World Airlines
Inc. (New)* 1,500 26,813
USAir Group, Inc.* 3,000 53,250
-------
434,163
-------
ALCOHOLIC BEVERAGES--0.3%
Adolph Coors Co.
Class B 1,300 24,456
Anheuser-Busch
Companies, Inc. 1,800 120,825
Brown Forman Corp.
Class B 500 19,750
Canandaigua Wine Co.,
Inc. Class A* 700 21,350
Seagram Ltd 2,800 94,850
-------
281,231
-------
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
APPAREL--0.4%
Authentic Fitness Corp. 500 $ 11,938
Brown Group Inc. 500 8,000
Burlington Industries
Inc.* 1,800 20,925
Cone Mills Corp.* 600 6,825
Donnkenny Inc. 500 9,875
Fabri-Centers of
America, Inc. Class A 200 2,050
Guilford Mills, Inc. 400 9,700
Justin Industries Inc. 600 7,650
Kellwood Co. 500 8,125
Kenneth Cole
Productions, Inc.
Class A 500 10,000
Liz Claiborne 400 14,550
Men's Wearhouse, Inc. 500 18,438
NIKE, Inc. Class B 1,000 87,500
Nautica Enterprises
Inc. 1,000 46,250
Paragon Trade
Brands, Inc.* 400 9,350
Phillips-Van Heusen
Corp. 600 7,950
Reebok International
Ltd. 400 11,600
Russell Corp. 200 5,200
Springs Industries Inc. 1,100 50,600
St. John's Knits, Inc. 200 11,875
Stride Rite Corp. 2,300 22,138
V.F. Corp. 400 22,800
Wolverine World
Wide Inc.
-------
431,127
-------
AUTOMOTIVE PRODUCTS--0.1%
APS Holding Corp.
Class A* 300 5,475
Armor-All Products
Corp. 500 7,750
Carlisle Cos. Inc. 900 41,850
Cooper Tire & Rubber 400 9,800
Discount Auto Parts
Inc.* 400 11,750
Goodyear Tire & Rubber 1,000 52,125
O'Reilly Automotive,
Inc.* 200 7,800
-------
136,550
-------
BANKS--4.1%
ALBANK Financial Corp. 360 9,698
Associated Banc-Corp. 900 34,875
Banc One Corp. 3,150 109,463
Bancorp South, Inc. 1,400 33,775
Bank of Boston Corp. 800 38,700
Bank of New York
Co., Inc. 1,300 63,050
BankAmerica Corp. 2,600 196,950
Bankers Trust New York
Corp. 500 34,688
Banknorth Group Inc. 200 7,000
Barnett Banks, Inc. 600 38,025
Bell Bancorp, Inc. 200 7,425
Boatmens Bancshares
Inc. 1,400 54,075
CCB Financial Corp. 900 46,744
CNB Bancshares Inc. 400 11,450
California Bancshares
Inc. 300 9,038
</TABLE>
16
<PAGE> 21
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Capital Bancorp 300 $ 9,338
Centura Banks Inc. 1,100 40,150
Chase Manhattan Corp.
(New) 3,140 216,268
Chemical Financial
Corp. 300 11,738
Chittenden Corp. 300 7,988
Citicorp 3,400 267,750
Citizens Bancorp 400 11,900
Citizens Banking Corp. 400 11,850
City National Corp. 1,600 22,600
Cole Taylor Financial
Group Inc. 400 11,900
Colonial BancGroup Inc. 300 10,163
Comerica Inc. 900 39,150
Community First
Bankshares Inc. 400 9,250
Corestates Financial
Corp. 1,600 62,400
Crestar Financial Corp. 128 7,216
Cullen/Frost Bankers
Inc. 300 14,925
F & M National Corp. 400 6,400
Fifth Third Bancorp 700 38,631
First Bank System Inc. 982 59,166
First Chicago NBD Corp. 2,405 99,206
First Citizens
BancShares Inc. 300 18,600
First Commercial
Bancshares Inc. 300 7,125
First Commercial Corp. 1,177 36,634
First Commonwealth
Financial Corp. 1,000 19,250
First Financial Bancorp 800 26,200
First Michigan Bank
Corp. 525 15,619
First Midwest Bancorp
Inc. 300 8,625
First Union Corp. 1,975 121,463
Firstbank Illinois Co. 300 9,338
Fleet Financial Group
Inc. 1,924 82,732
Fort Wayne National
Corp. 300 9,188
Fulton Financial Corp. 880 17,930
HUBCO, Inc. 400 7,550
Hancock Holding Co. 200 7,250
Imperial Bancorp 324 7,817
J.P. Morgan & Co. Inc. 1,300 109,363
Jefferson Bankshares,
Inc. 500 10,688
Keycorp (New) 2,000 77,250
Keystone Financial Inc. 1,100 35,888
Liberty Bancorp, Inc. 300 11,025
Long Island Bancorp
Inc. 800 22,350
MBNA Corp. 1,600 45,400
Magna Group Inc. 1,200 27,150
Mark Twain
Bancshares Inc. 900 33,975
Mellon Bank Corp. 900 48,375
Mercantile Bancorp Inc. 175 7,788
Mid-Am, Inc. 400 7,400
National Bancorp of
Alaska, Inc. 700 42,350
National City Corp. 1,000 36,875
National Commerce
Bancorp 1,100 33,688
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
NationsBank Corp. 2,200 $ 175,450
New York Bancorp Inc. 300 7,350
North Fork
Bancorporation 1,100 26,125
Norwest Corp. 2,510 90,674
ONBANCorp, Inc. 400 13,300
Old National Bancorp 800 27,100
One Valley Bancorp of
West Virginia Inc. 500 15,594
PNC Bank Corp. 2,200 66,550
Park National Corp. 200 9,575
People's Bank 1,400 29,925
Provident Bancorp Inc. 900 46,238
Queens County
Bancorp, Inc. 200 8,775
Regions Financial Corp. 760 35,103
Republic New York Corp. 300 17,813
Riggs National Corp. 700 8,794
River Forest Bancorp,
Inc. 500 14,813
S & T Bancorp, Inc. 300 8,963
Security Capital Corp. 300 17,550
Sumitomo Bank 400 10,050
Summit Bancorp 1,260 44,730
SunTrust Banks Inc. 800 56,400
Susquehanna
Bancshares, Inc. 300 8,738
T R Financial Corp. 300 7,969
Trust Company of
New Jersey 600 8,513
TrustCo Bank Corp. NY 400 8,350
Trustmark Corp. 1,500 35,063
U S Trust Corp. (New) 300 16,538
U.S. Bancorp 1,200 38,700
UMB Financial Corp. 1,050 39,769
UST Corp. 400 5,250
United Bankshares, Inc. 300 8,175
United Carolina
Bancshares Corp. 600 14,325
Valley National Bancorp 1,470 42,630
Wachovia Corp. (New) 1,100 48,400
Wells Fargo & Co. 1,133 274,894
Westamerica Bancorp 300 14,175
Whitney Holding Corp. 400 12,125
---------
3,912,317
---------
BUSINESS MACHINES & SOFTWARE--4.3%
3COM Corp. 1,200 55,275
AST Research Inc.* 1,200 9,150
Amdahl Corporation* 600 7,650
Apple Computer, Inc. 800 19,400
Applied Magnetics
Corp.* 900 18,563
Atria Software, Inc. 400 21,850
Auspex Systems, Inc.* 700 13,475
Autodesk, Inc. 700 28,700
BBN Corp.* 500 14,125
BancTec, Inc.* 700 14,263
Bay Networks, Inc. 1,400 44,100
Bell & Howell Co.
(New)* 700 22,050
Black Box Corp.* 500 10,031
Boole & Babbage Inc. 400 10,450
</TABLE>
17
<PAGE> 22
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Borland
International Inc.* 700 $ 11,419
Cabletron Systems Inc.* 500 37,688
Cellular Technical
Services Inc.* 200 5,713
Ceridian Corp.* 428 20,437
Cisco Systems Inc. 3,800 197,363
Compaq Computer Corp.* 2,200 102,575
Computer Associates
International Inc. 1,700 124,738
Computer Horizons Corp. 600 30,225
Computer Products,
Inc.* 800 12,900
Computer Sciences
Corp.* 400 29,600
Compuware Corp.* 1,200 34,500
Comshare, Inc. 300 7,350
Comverse Technology
Inc. (New)* 500 11,750
Continuum Inc.* 1,000 57,000
Control Data Systems,
Inc.* 500 11,844
Cray Research Inc.* 176 5,192
Data General Corp.* 1,500 23,063
Davidson & Associates,
Inc. 1,000 27,375
Dialogic Corp.* 400 18,450
Digi International
Inc.* 300 8,550
Digital Equipment
Corp.* 1,100 65,725
Dynatech Corp. 400 10,400
EMC Corp.* 1,500 30,750
Exabyte Corp.* 500 8,688
Excalibur Technologies
Corp. (New)* 300 7,838
FTP Software Inc.* 700 6,825
FileNet Corp.* 400 22,300
General Magic Inc.* 700 3,938
Geoworks* 500 18,625
Global Village
Communications* 400 6,800
HCIA Inc.* 700 37,275
HNC Software Inc. 400 14,900
Hewlett Packard Co. 3,700 391,738
Honeywell Inc. 900 47,363
Hyperion Software Corp. 400 5,075
INSO Corp. 800 43,300
INTERSOLV Inc.* 800 8,800
In Focus Systems, Inc.* 300 15,225
Intergraph Corp.* 2,300 29,181
International Business
Machines 4,000 430,000
Legato Systems Inc.* 300 12,525
MICROS Systems, Inc. 200 5,600
Maxis Inc.* 300 7,275
McAfee Associates, Inc. 700 42,963
Medic Computer
Systems, Inc.* 800 74,900
Mercury Interactive
Corp.* 400 5,450
Microsoft Corp.* 4,100 464,069
National Computer
Systems, Inc. 500 10,938
National Instruments
Corp.* 500 12,063
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Network Equipment
Technologies* 500 $ 12,750
Network General Corp.* 1,100 48,675
Novell Inc.* 2,700 39,319
Oak Technology 2,000 35,875
Optical Data Systems,
Inc. 400 10,875
Oracle Systems Corp. 4,950 166,753
PRI Automation Inc.* 300 8,550
Pitney Bowes Inc. 1,000 48,750
Progress Software Corp. 400 6,325
Quarterdeck Corp.* 1,100 16,913
Rational Software Corp.
(New)* 400 21,300
Safeguard Scientifics
Inc. 900 60,300
Seagate Technology,
Inc.* 884 51,272
Security Dynamics
Technology 1,300 109,200
Sequent Computer
Systems, Inc.* 800 11,750
Shiva Corp. 800 48,000
Sierra On-Line Inc. 500 19,688
Silicon Graphics Inc.* 1,100 32,588
Softkey
International Inc.* 1,200 33,525
Stac Inc.* 700 7,875
Stratus Computer Inc.* 1,100 30,938
Structural Dynamics
Research Corp.* 1,300 41,438
Sun Microsystems Inc. 1,200 65,025
Systems & Computer
Technology Corp.* 300 4,388
Tandem Computers Inc.* 600 7,650
Tech Data Corp.* 1,400 27,125
Telxon Corp. 400 9,250
Transaction Systems
Architects Inc.
Class A* 300 16,125
Trident
Microsystems Inc.* 300 5,325
Unisys Corp.* 900 5,400
Veritas Software Co. 200 9,150
Videoserver Inc.* 300 9,975
Wang Laboratories
Inc. (New)* 1,300 30,713
Wind River Systems Inc. 300 11,775
Xerox Corp. 800 117,200
---------
4,089,103
---------
BUSINESS SERVICES--3.2%
ABM Industries, Inc. 300 10,238
ABR Information
Services Inc. 300 18,900
ADVO Inc. 1,000 10,125
Access Health Inc. 400 22,200
Accustaff Inc. 1,500 44,719
Acxiom Corp. 1,100 30,044
Affiliated Computer
Services Inc.
Class A* 200 9,525
Alliance Entertainment
Corp.* 700 4,288
Alternative Resources
Corp. 400 14,350
</TABLE>
18
<PAGE> 23
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
American Business
Information, Inc. 500 $ 9,875
American Business
Products, Inc. 400 8,700
American
Homepatient Inc. 200 8,400
American Management
Systems, Inc. 1,200 31,800
American Medical
Response, Inc.* 1,000 37,000
American Oncology
Resources Inc.* 1,000 48,125
Amresco Inc. 1,000 17,250
Apollo Group, Inc.
Class A 1,500 66,188
Applix Inc. 300 11,588
Apria Healthcare
Group Inc.* 1,800 61,313
Aspen Technology Inc.* 200 11,050
Automatic Data
Processing, Inc. 2,300 89,413
BISYS Group, Inc.* 700 26,600
Borg-Warner Security
Corp.* 800 9,300
Bowne & Co. Inc. 400 7,200
Browning Ferris
Industries Inc. 1,300 41,925
Business Records Corp.* 200 7,225
CDI Corp.* 600 17,700
CMG Information
Services Inc. 300 9,038
Cambridge Technology
Partners* 400 26,950
Camco International
Inc. 1,100 39,188
Catalina Marketing
Corp.* 300 23,363
Cerner Corp. 1,100 22,481
Checkfree Corp.* 1,100 21,038
Coastal Physician
Group Inc.* 700 5,863
Copart Inc.* 400 10,850
Corrections Corp. of
America 900 57,375
Coventry Corp.* 1,300 25,350
Dames & Moore Inc. 500 5,438
Data Broadcasting* 1,100 11,344
DeVRY Inc. 900 33,525
Deluxe Corp. 400 14,000
Dionex Corp. 400 14,750
Dun & Bradstreet Corp. 1,100 66,963
Ecolab Inc. 300 9,750
Electro Rental 400 9,800
Epic Design
Technology Inc. 500 16,938
Express Scripts Inc.
Class A* 900 43,988
Fair, Isaac & Co. Inc. 300 12,825
First Data Corp. 1,500 114,000
Fleming Companies, Inc. 2,900 39,875
Franklin Quest Co.* 1,000 27,000
G&K Services, Inc.
Class A 500 13,250
GRC International,
Inc.* 200 7,750
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
H & R Block Inc. 600 $21,075
Health Management
Systems, Inc. 450 11,756
Healthplan Services
Corp.* 100 2,400
Henry Jack &
Associates Inc. 300 9,356
Heritage Media Corp.
Class A (New)* 500 19,188
Hon Industries Inc. 1,100 28,188
Hunt Manufacturing Co. 500 8,375
ITT Educational
Services Inc. 450 13,950
Ideon Group Inc. 600 7,875
Information Resources,
Inc.* 600 8,663
Inphynet Medical
Management Inc.* 800 14,900
Integrated Health
Services Inc. 1,000 27,500
Integrated Systems Inc.
Class A 600 17,100
Interim Services Inc.* 400 17,275
Interpublic Group of
Companies, Inc. 500 23,375
Jacobs Engineering
Group Inc.* 1,100 30,525
John H. Harland Co. 1,500 39,375
Katz Media Group Inc.* 500 7,375
Keane, Inc.* 800 31,500
Kinder Care Learning
Centers Inc.* 600 8,625
Kronos, Inc. 300 8,925
Laidlaw Inc. Class B
(Non Voting) 1,500 15,750
Magellan Health
Services Inc.* 1,200 25,800
Mariner Health Group
Inc.* 1,100 18,631
Maxicare Health Plans
Inc. (New)* 900 18,338
Medpartners/ Mullikin
Inc.* 1,800 51,975
Molten Metal
Technology, Inc.* 1,100 35,200
Moore Corp. Ltd. 500 9,125
National Auto Credit
Inc. 660 9,405
National Data Corp. 600 21,150
National Education
Corp.* 1,000 14,875
National Media Corp.* 100 1,800
National Service
Industries, Inc. 200 7,400
Netcom Online
Communications* 300 10,706
New England Business
Service, Inc. 400 7,500
Norrell Corp. 400 15,500
Occusystems Inc.* 600 17,475
Ogden Corp. 200 4,050
Orthodontic Centers of
America Inc. 800 31,400
Owen Healthcare Inc. 600 12,225
PAXAR Corp. 500 8,688
</TABLE>
19
<PAGE> 24
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
PHH Corp. 500 $ 28,438
PSINet Inc.* 1,300 18,281
Payment Services Inc. 500 14,375
Peak Technologies
Group Inc.* 300 7,200
Physician Corp. of
America* 1,100 16,363
Physician Reliance
Network* 1,100 47,988
Physicians Computer
Network* 1,500 16,688
R.R. Donnelley &
Sons Co. 1,000 36,000
Republic Industries
Inc.* 2,100 68,644
Robert Half
International Inc.* 1,300 74,750
Rollins, Inc. 1,200 27,000
Rykoff-Sexton, Inc. 400 6,050
SEI Corp. 500 11,813
SPS Transaction
Services, Inc. 900 24,075
SUPERVALU Inc. 300 9,600
Safety-Kleen Corp. 300 4,500
Sanifill Inc.* 800 34,700
Scientific Games
Holdings Corp. 800 25,600
Service Corp.
International 800 42,500
Shared Medical Systems
Corp. 100 6,888
Standard Register Co. 1,200 30,300
Steris Corp. 500 16,188
Sun Healthcare Group
Inc.* 1,300 19,663
Synetic Inc.* 900 31,388
True North
Communications 700 18,463
U S Order Inc.* 400 8,050
U.S.A. Waste Services
Inc.* 2,100 54,600
Unifirst Corp. 600 14,400
United Waste Systems,
Inc.* 900 49,838
Universal Health
Services Inc. Class B 400 22,200
Valassis
Communications Inc.* 1,700 26,775
Volt Information
Sciences Inc. 300 9,113
WMX Technologies Inc. 3,500 121,625
Western Waste
Industries* 400 15,550
Zebra Technologies
Corp. Class A 1,600 39,800
---------
3,051,433
---------
CHEMICAL--1.7%
A. Schulman Inc. 1,100 24,063
Air Products &
Chemicals Inc. 700 39,988
Calgon Carbon Corp. 1,100 13,750
Cambrex Corp. 100 4,300
Chemed Corp. 300 11,288
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Crompton & Knowles
Corp. 1,800 $ 27,675
Cytec Industries Inc.* 500 41,438
Dexter Corp. 1,100 29,563
Dow Chemical Co. 1,800 159,975
E.I. Du Pont de Nemours
& Co. 3,900 313,463
Eastman Chemical Co. 500 33,625
Ferro Corp. 1,200 33,300
First Mississippi Corp. 1,000 23,250
Geon Co. 1,100 29,150
Great Lakes Chemical
Corp. 400 27,300
H.B. Fuller Co. 400 13,100
Hercules Inc. 700 42,350
Lawter International
Inc. 1,200 13,050
Lilly Industrial Inc.
Class A 500 7,250
Minnesota Mining &
Manufacturing Co. 2,900 190,675
Monsanto Co. 800 121,200
Morton International
Inc. 1,000 35,375
NCH Corp. 200 11,600
NL Industries Inc.
(New) 2,400 34,500
Nalco Chemical Co. 300 9,150
OM Group Inc. 300 11,381
PPG Industries Inc. 1,300 65,813
Petrolite Corp. 300 9,488
Praxair Inc. 1,000 38,625
Rohm & Haas Co. 500 33,188
Scotts Co. Class A* 500 8,625
Sequa Corp. Class A* 300 10,538
Sigma-Aldrich Corp. 400 21,650
Sterling Chemicals
Inc.* 2,300 26,163
Tredegar Industries
Inc. 300 8,325
Union Carbide Corp. 900 40,950
Uniroyal Chemical
Corp.* 500 5,906
W.R. Grace & Co. 700 54,250
WD-40 Co. 200 9,350
Wellman Inc. 1,200 28,800
---------
1,663,430
---------
CONSTRUCTION--0.4%
Apogee Enterprises,
Inc. 300 7,913
Armstrong World
Industries, Inc. 300 17,100
Blount International
Inc. Class A 1,200 37,200
Calmat Co. 700 12,163
Centex Construction
Products Inc. 500 7,188
Centex Corp. 100 2,700
Crane Co. 100 4,150
Del Webb Corp. 400 7,150
Florida Rock
Industries, Inc. 200 5,050
Fluor Corp. 600 39,675
Granite Construction
Inc. 450 8,916
Insituform Technologies
Inc. Class A* 700 8,225
Kaufman & Broad Home
Corp. 1,000 14,125
</TABLE>
20
<PAGE> 25
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Lone Star Industries,
Inc. (New) 300 $ 10,763
Medusa Corp. 400 11,700
Oakwood Homes Corp. 1,100 49,088
Owens Corning* 400 16,100
Pulte Corp. 100 2,650
Sherwin Williams Co. 600 28,050
Southdown Inc. 400 9,400
Stanley Works 300 18,825
Stone & Webster, Inc. 400 13,600
TJ International Inc. 400 6,900
Toll Brothers, Inc.* 1,300 21,125
Triangle Pacific Corp.* 300 4,988
U.S. Home Corp. (New)* 300 7,463
-------
372,207
-------
CONSUMER-DURABLE--0.4%
Bassett Furniture
Industries Inc. 400 10,200
Black & Decker Corp. 600 24,150
Champion
Enterprises Inc. 500 19,000
Chicago Miniature
Lamp Inc.* 300 12,188
Ethan Allen Interiors
Inc.* 400 10,400
Furniture Brands
International Inc.* 1,200 11,850
Harman International
Industries Inc. (New) 900 42,525
Kimball International
Inc. Class B 600 17,250
La-Z-Boy Chair Co. 500 14,813
Masco Corp. 1,000 27,250
Maytag Corp. 500 10,750
National Presto
Industries, Inc. 200 7,850
Newell Co. 1,100 31,350
Outboard Marine Corp. 600 11,850
Regal Beloit Corp. 500 9,688
Snap-on Tools Corp. 200 9,600
Sturm, Ruger & Co.,
Inc. 800 32,300
Toro Co. 300 9,563
Whirlpool Corp. 600 36,075
-------
348,652
-------
CONSUMER-NONDURABLE--0.9%
3DO Co.* 600 5,400
A.T. Cross Co. Class A 500 7,500
Acclaim
Entertainment Inc.* 1,800 18,563
American Greetings
Corp. Class A 500 13,844
Applebee's
International, Inc. 900 23,625
Buffets Inc.* 1,200 16,725
CKE Restaurants Inc. 200 3,950
CML Group, Inc. 1,100 4,950
Corning Inc. 1,600 55,600
Darden Restaurants Inc. 800 11,000
Department 56 Inc.* 700 17,413
Foxmeyer Health Corp. 400 7,800
Gibson Greetings, Inc. 600 8,475
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Hasbro Inc. 600 $ 22,050
IHOP Corp. (New)* 200 5,688
International Dairy
Queen Inc. Class A* 700 14,919
Jostens, Inc. 200 4,500
Landry's Seafood
Restaurants, Inc. 400 9,550
Luby's Cafeterias, Inc. 800 19,200
Mafco Consolidated
Group Inc.* 700 12,600
Mattel Inc. 1,750 45,500
McDonald's Corp. 5,100 244,163
Mikasa Inc. Class B* 500 5,938
Mohawk Industries Inc.* 1,300 18,850
Papa John's
International, Inc. 450 22,163
Premark
International, Inc. 400 20,550
Rexall Sundown, Inc. 700 20,125
Rubbermaid Inc. 1,000 28,250
Ruby Tuesday Inc. 600 12,150
Russ Berrie & Co. Inc. 500 8,000
Ryan's Family Steak
Houses Inc.* 4,400 42,900
Sbarro, Inc. 500 13,125
Shoney's Inc.* 2,700 30,038
Sonic Corp. 400 7,700
Toy Biz Inc. Class A* 400 8,150
Wendy's
International, Inc. 800 15,300
Zenith Electronics
Corp.* 2,100 19,688
-------
845,942
-------
CONTAINERS--0.2%
ACX Technologies Inc. 1,100 21,313
Ball Corp. 1,200 37,350
Bemis Co, Inc. 200 6,475
Crown Cork & Seal Inc. 900 42,413
Gaylord Container Corp.
Class A* 1,500 15,375
Greif Brothers Corp.
Class A 1,100 28,875
Stone Container Corp. 500 8,500
-------
160,301
-------
ELECTRONICS--2.1%
AMETEK, Inc. 1,300 25,025
AMP Inc. 1,400 62,650
Actel Corp.* 400 7,425
Advanced Micro
Devices Inc. 1,220 22,875
Allen Group Inc. 1,000 24,750
Alliance Semiconductor
Corp. 1,400 14,875
Altron Inc. 300 9,600
Applied Materials, Inc. 1,700 67,788
Augat Inc. 600 11,550
Aura Systems, Inc.* 2,200 11,275
Belden Inc. 1,200 35,700
Burr Brown 400 7,600
Cable Design
Technologies Corp. 500 16,375
Checkpoint Systems Inc. 800 23,900
</TABLE>
21
<PAGE> 26
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
CopyTele Inc.* 700 $ 8,444
Cyrix Corp.* 500 15,344
DII Group Inc.* 300 10,313
DSP
Communications Inc. 600 23,925
Dallas Semiconductor
Corp. 700 13,650
EG&G, Inc. 200 4,400
Electro Scientific
Industries Inc.* 300 7,200
Electroglas Inc. 600 11,775
FORE Systems, Inc. 300 23,644
FSI International Inc. 700 10,150
Fluke Corp. 200 7,725
General Instrument
Corp.* 800 26,200
General Signal Corp. 200 7,600
Gerber Scientific Inc. 700 11,813
Hadco Corp.* 300 9,169
Harris Corp. 200 12,350
ITI Technologies Inc.* 300 8,213
Identix Inc.* 200 2,375
Input/Output Inc. 2,000 69,500
Integrated Process
Equipment Corp.* 400 10,525
Integrated Silicon
Solution* 600 9,975
Integrated Systems
Consulting Group
(Rights exp.
5/22/96)* 150 2,681
Intel Corp. 5,700 386,531
Itron, Inc.* 300 17,550
Kent Electronics Corp. 1,600 67,400
Kulicke & Soffa
Industries Inc. 500 9,375
LSI Logic Corp. 1,000 36,000
LTX Corp.* 800 7,750
Lattice Semiconductor
Corp.* 1,100 35,956
Littlefuse, Inc.* 300 11,325
Logicon, Inc. 800 23,800
Marshall Industries* 500 15,938
Methode Electronics
Inc. Class A 1,000 16,500
Micron Technology Inc. 1,300 47,288
Motorola Inc. 4,400 269,500
National Semiconductor
Corp.* 600 9,450
Osmonics, Inc.* 500 10,375
Pacific Scientific Co. 300 5,925
Park Electrochemical
Corp. 300 7,500
Perkin-Elmer Corp. 200 10,975
Pioneer Standard
Electronics Inc. 500 8,125
Pittway Corp. Class A 600 28,650
Rexel Inc.* 700 9,363
S3 Inc. 1,700 24,225
Sanmina Corp. 400 14,100
Scientific-Atlanta,
Inc. 400 7,400
Silicon Valley Group
Inc.* 1,000 26,625
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Siliconix Inc. (New)* 400 $ 11,600
Tektronix, Inc. 300 11,888
Teledyne Inc. 400 14,850
Texas Instruments Inc. 1,300 73,450
Thomas & Betts Corp. 200 7,875
Unitrode Corp.* 400 10,750
VLSI Technology, Inc.* 1,300 22,669
VeriFone, Inc.* 700 29,400
Vicor Corp. 1,500 22,781
Watkins-Johnson Co. 200 6,750
Wyle Electronics 300 12,563
Zilog Inc.* 700 26,338
---------
2,006,899
---------
ENERGY-DEVELOPMENT--1.2%
Amcol International
Corp. 600 6,900
Ashland Coal, Inc. 300 6,975
BJ Services Co.* 1,200 46,050
Baker Hughes Inc. 1,000 31,750
Benton Oil & Gas Co.* 600 10,538
Burlington Resources
Inc. 800 29,800
Cabot Oil & Gas Corp.
Class A 500 8,250
Chesapeake Energy Corp. 950 67,213
Devon Energy Corp. 600 15,300
Dresser Industries Inc. 1,300 41,438
Energy Ventures, Inc.* 700 21,000
Falcon Drilling Inc.* 800 21,650
Global Industrial
Technologies Inc.* 700 12,863
Global Natural
Resources Inc.* 700 10,150
Halliburton Co. 800 45,900
Helmerich & Payne Inc. 1,200 44,250
Landmark Graphics
Corp.* 400 7,800
Louis Dreyfus Natural
Gas Corp.* 800 10,200
Louisiana Land &
Exploration Co. 200 10,825
MAXXAM Inc.* 200 9,100
McDermott
International Inc. 200 4,200
Nabors Industries Inc.* 2,800 43,050
Newfield Exploration
Co.* 900 30,825
Noble Drilling Corp.* 3,100 46,500
Nuevo Energy Co.* 300 8,475
Occidental Petroleum
Corp. 2,200 56,650
Parker & Parsley
Petroleum Co. 1,000 24,625
Parker Drilling Co.* 1,300 9,913
Phoenix Resource Cos.,
Inc. (New) 500 12,750
Pride Petroleum
Services Inc.* 900 14,850
Production Operators
Corp. 300 10,088
Reading & Bates Corp.
(New)* 2,100 51,450
Rowan Cos. Inc.* 3,700 54,575
Schlumberger Ltd. 1,700 150,025
Seitel, Inc. (New)* 200 5,525
Solv-Ex Corp.* 800 11,300
Tom Brown Inc. (New)* 800 12,500
</TABLE>
22
<PAGE> 27
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
United Meridian Corp.* 800 $ 24,800
Varco International
Inc.* 700 11,638
Vintage Petroleum Inc. 500 12,188
Weatherford Enterra
Inc.* 1,900 66,975
Zeigler Coal Holding
Co. 800 11,800
---------
1,132,654
---------
FOOD-AGRICULTURE--2.8%
AG Chemical
Equipment Inc. 200 3,275
Archer-Daniels-Midland
Co. 4,200 79,275
Bob Evans Farms, Inc. 1,500 23,719
CPC International Inc. 1,000 69,125
Campbell Soup Co. 1,700 106,250
Chiquita Brands
International Inc. 2,000 29,250
Coca-Cola Bottling Co. 200 6,725
Coca-Cola Co. 9,100 741,650
ConAgra, Inc. 2,000 77,250
Delta & Pine Land Co. 598 26,686
Dimon Inc. 1,100 18,700
Dreyers Grand
Ice Cream Inc. 300 10,275
Earthgrains Co.* 64 2,072
Farmer Brothers Co. 100 13,500
Flowers Industries,
Inc. 2,000 26,750
General Mills Inc. 1,400 77,700
H.J. Heinz Co. 2,800 94,850
Hershey Foods Corp. 500 37,938
Hudson Foods Inc.
Class A 1,200 15,900
International
Multifoods Corp. 500 9,438
Interstate Bakeries
Corp. (New) 1,400 33,250
J.M. Smucker Co.
Class A 1,200 25,350
J.M. Smucker Co. Class
B (Non Voting) 300 6,000
JP Foodservice, Inc.* 400 8,800
Kellogg Co. 1,500 107,063
Lance Inc. 900 14,175
Mississippi Chemical
Corp. (New) 700 14,175
Mycogen Corp.* 1,100 19,250
Pepsico Inc. 5,500 349,250
Pioneer HI Bred
International Inc. 600 33,450
Quaker Oats Co. 900 30,938
Ralcorp Holdings, Inc.* 1,000 22,000
Ralston Purina Co. 700 40,863
Richfood Holdings Inc. 1,400 45,763
Sara Lee Corp. 3,500 108,500
Savannah Foods &
Industries Inc. 600 6,525
Seaboard Corp. 100 21,550
Smithfield Foods Inc.* 900 26,775
Sysco Corp. 1,300 41,763
Unilever 1,100 150,150
WLR Foods, Inc. 400 4,850
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Whitman Corp. 700 $ 17,675
Wm Wrigley Junior Co. 800 42,100
---------
2,640,543
---------
GOLD--0.3%
Barrick Gold Corp. 2,800 85,750
Battle Mountain
Gold Co. 2,800 24,850
FMC Gold Co. 1,700 10,838
FirstMiss Gold Inc.* 500 15,438
Homestake Mining Co. 700 14,088
Newmont Mining Corp. 600 34,725
Placer Dome Inc. 2,000 55,500
Santa Fe Pacific
Gold Corp. 700 10,413
---------
251,602
---------
HEALTHCARE--5.5%
ALZA Corp.* 400 11,400
Abbott Laboratories 5,700 231,563
Acuson* 600 11,400
Advanced Technology
Laboratories, Inc.* 400 13,000
Advanced Tissue
Sciences Inc.* 800 13,600
Agouron Pharmaceuticals
Inc.* 400 16,300
Allergan Inc. 300 10,613
Alliance Pharmaceutical
Corp.* 900 16,425
Alpharma, Inc. 600 14,700
American Home Products
Corp. 2,200 232,100
Amgen Inc. 1,800 103,388
Amsco
International, Inc.* 900 13,050
Ballard Medical
Products 800 15,900
Bausch & Lomb Inc. 300 11,963
Baxter International
Inc. 2,200 97,350
Becton Dickinson & Co. 500 40,313
Benson Eyecare Corp.* 1,100 10,038
Beverly Enterprises,
Inc.* 500 6,063
Bio Rad Laboratories
Inc. Class A* 200 9,300
Biocraft Laboratories
Inc.* 300 6,113
Biomet Inc.* 600 8,813
Block Drug Inc. Class A 1,030 38,368
Boston Scientific
Corp.* 1,137 49,033
Bristol Myers
Squibb Co. 3,500 287,875
C.R. Bard Inc. 400 14,600
CNS, Inc. 500 9,813
Carrington Laboratories
Inc.* 300 8,438
Carter Wallace Inc. 1,600 25,200
Columbia/HCA Healthcare
Corp. 3,400 180,625
Community Health
Systems Inc.* 1,000 43,375
Community Psychiatric
Centers 1,400 12,950
Conmed Corp. 400 12,050
</TABLE>
23
<PAGE> 28
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Copley Pharmaceutical
Inc.* 600 $ 9,150
Cygnus Therapeutic
Systems, Inc.* 700 15,006
Daig Corp. 500 11,719
Datascope Corp.* 400 7,100
Diagnostic Products
Corp. 400 16,750
Eli Lilly & Co. 3,800 224,200
Enzo Biochem Inc. 500 9,188
Fresenius U.S.A. Inc.* 500 10,000
Genesis Health
Ventures, Inc. 1,350 39,994
Gilead Sciences Inc.* 700 21,525
GranCare, Inc.* 600 10,800
Gulf South Medical
Supply Inc. 300 12,263
Haemonetics Corp.* 700 13,475
HealthSouth
Rehabilitation Corp. 1,876 69,647
Herbalife International
Inc. 600 8,250
Human Genome Sciences
Inc.* 900 35,888
Humana Inc.* 1,200 29,550
I-Stat Corp.* 300 8,700
ICN Pharmaceuticals,
Inc. 809 18,203
Immulogic
Pharmaceutical Corp.* 700 7,656
Immunex Corp. (New)* 1,100 17,256
Interneuron
Pharmaceuticals* 1,300 50,863
Invacare Corp. 1,300 33,475
Isis Pharmaceuticals* 700 8,838
Isolyser Inc. 1,100 19,250
Johnson & Johnson 4,600 425,500
Kinetic Concepts Inc. 1,200 17,850
Life Technologies, Inc.
(New) 400 11,400
Ligand Pharmaceuticals
Inc. Class B 700 10,369
Lincare Holdings Inc.* 800 31,000
Liposome Inc.* 1,200 29,475
Living Centers of
America* 1,000 37,000
Mallinckrodt
Group Inc. 400 15,750
Manor Care, Inc. 300 12,038
Medimmune Inc.* 400 6,700
Medisense Inc.* 900 40,388
Medtronic Inc. 1,600 85,000
Mentor Corp. 1,100 25,713
Merck & Co. Inc. 8,900 538,450
Multicare Cos. Inc. 400 11,350
Natures Sunshine
Products Inc. 450 11,138
Nellcor Puritan
Bennett Inc.* 1,300 63,700
Neoprobe Corp.* 500 8,656
Neurogen Corp.* 500 14,094
Nexstar Pharmaceuticals
Inc.* 1,000 24,500
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
North American Vaccine
Inc.* 1,100 $ 22,688
Novacare Inc.* 1,500 10,875
Omnicare Inc. 1,200 72,000
Organogenesis Inc. 500 8,813
Owens & Minor Inc.
(New) 700 9,450
PDT Inc. 300 14,288
PHP Healthcare Corp. 100 3,050
PLC Systems Inc.* 600 17,850
Patterson Dental Co.* 500 15,000
Pfizer Inc. 4,400 303,050
Pharmacia &
Upjohn Inc. 3,500 133,875
Physician Sales &
Service Inc. 1,000 27,375
Physicians Health
Services, Inc.
Class A* 200 6,500
Protein Design
Labs, Inc.* 500 13,188
Pyxis Corp.* 1,200 30,450
Quintiles Transnational
Corp. 600 43,875
Regeneron
Pharmaceuticals Inc.* 700 9,931
Renal Treatment Centers
Inc. 600 17,400
Research Medical Inc.* 300 7,519
Respironics Inc. 400 8,650
RoTech Medical Corp. 400 16,600
Roberts Pharmaceutical
Corp.* 400 7,500
Salick Health Care,
Inc.* 300 11,438
Schering Plough Corp. 2,500 143,438
Sepracor Inc.* 700 9,800
Sequus Pharmaceuticals
Inc.* 900 15,750
Sofamor/Danek Group
Inc.* 1,100 36,025
Sola International
Inc.* 800 26,200
Somatogen Inc.* 500 8,281
SpaceLabs Medical Inc.* 300 6,788
St. Jude Medical, Inc. 400 14,575
Sunrise Medical Inc.* 500 9,125
Target Therapeutics
Inc. 400 21,650
Tecnol Medical Products
Inc.* 600 11,775
Tenet Healthcare Corp.* 1,200 24,600
Thermedics Inc.* 1,400 42,350
U.S. Healthcare, Inc. 1,000 52,188
United Healthcare Corp. 1,200 70,200
United States Surgical
Corp. 300 11,100
Ventritex Inc.* 500 7,781
Vertex Pharmaceuticals
Inc.* 900 26,550
VISX Inc.* 500 17,000
Vital Signs Inc. 300 6,338
Vivra Inc. 1,650 52,181
Vivus* 500 15,063
Warner Lambert Co. 900 100,575
West Co Inc. 400 9,100
---------
5,254,334
---------
</TABLE>
24
<PAGE> 29
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
HOUSEHOLD PRODUCTS--0.9%
Alberto Culver Co.
Class B (Convertible) 100 $ 3,788
Avon Products, Inc. 500 44,438
Bush Boake Allen Inc.* 500 13,500
Church & Dwight Inc. 600 13,200
Clorox Co. 300 24,788
Colgate-Palmolive Co. 1,000 76,625
Dial Corp. 1,100 30,938
Gillette Co. 3,100 167,400
International Flavors &
Fragrances Inc. 800 39,300
Libbey Inc. 400 9,300
Playtex Products Inc.* 1,200 10,500
Procter & Gamble Co. 4,800 405,600
-------
839,377
-------
IMAGING & PHOTO--0.4%
Avid Technology, Inc.* 600 11,663
BMC Industries, Inc. 800 21,400
C-Cube Microsystems,
Inc. 1,000 49,250
Chyron Corp.* 3,200 12,800
Circon Corp.* 400 5,825
Eastman Kodak Co. 2,400 183,600
OIS Optical Imaging
Systems Inc.* 3,500 14,000
Photronic, Inc. 400 10,550
Polaroid Corp. 200 9,000
Robotic Vision
Systems Inc.* 400 6,875
Ultratech Stepper Inc. 1,000 26,000
-------
350,963
-------
INSURANCE--2.3%
Acordia, Inc. 400 12,700
Aetna Life &
Casualty Co. 800 57,000
Alexander & Alexander
Services 3,300 62,288
Alfa Corp. 1,100 14,300
Allied Group Inc. 200 7,175
Allstate Corp. 3,100 120,513
American Annuity Group,
Inc. 1,400 17,500
American Bankers
Insurance Group, Inc. 1,000 39,375
American General Corp. 1,300 45,663
American Heritage Life
Investment Corp. 300 6,975
American International
Group, Inc. 3,300 301,538
American Travellers
Corp. 450 8,859
Aon Corp. 900 48,263
Argonaut Group, Inc. 800 25,000
Arthur J. Gallagher
& Co. 900 29,250
CMAC Investment Corp. 300 16,800
Capital Re Corp. 400 15,000
Capitol American
Financial Corp. 400 9,650
Capsure Holdings Corp.* 600 10,575
Chubb Corp. 600 56,775
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Cigna Corp. 500 $56,688
Citizens Corp. 1,400 27,300
Commerce Group Inc. 1,100 22,000
Compdent Corp.* 400 17,650
Crawford & Co. Class A 400 6,500
Crawford & Co. Class B 1,000 16,250
Delphi Financial Group,
Inc. Class A* 300 8,363
E.W. Blanch
Holdings Inc. 300 6,188
Enhance Financial
Services Group Inc. 900 24,413
Executive Risk Inc. 300 9,300
Financial Security
Assured
Holdings Ltd. 1,200 32,400
Foremost Corp. of
America 300 16,050
Fremont General Corp. 1,350 33,750
Frontier Insurance
Group, Inc. 300 9,675
GAINSCO, Inc. 800 9,300
General Re Corp. 600 85,725
HCC Insurance Holdings,
Inc. 300 17,550
Harleysville Group Inc. 400 11,000
Highlands Insurance
Group Inc.* 60 1,140
Home Beneficial Corp.
Class B 500 12,938
Horace Mann Educators
Corp. (New) 1,100 36,163
ITT Hartford
Group Inc. 800 39,100
Integon Corp. 500 9,625
Jefferson-Pilot Corp. 450 23,738
John Alden Financial
Corp. 1,100 21,450
Kansas City Life
Insurance Co. 200 11,025
Liberty Corp. 1,000 31,750
Life Partners
Group Inc. 800 16,700
Life Re Corp. 400 11,950
Lincoln National
Corp. Inc. 700 33,775
MAIC Holdings Inc. 212 6,890
Markel Corp.* 200 16,450
Marsh & McLennan
Companies 500 47,000
NAC Re Corp. 500 16,375
National Re Corp. 900 31,950
Orion Capital Corp. 400 17,750
Penncorp Financial
Group Inc. 700 21,438
Presidential Life Corp. 800 7,850
Providian Corp. 700 32,288
Reinsurance Group of
America Inc. 900 37,350
Safeco Corp. 800 26,350
Selective Insurance
Group, Inc. 400 12,600
</TABLE>
25
<PAGE> 30
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sierra Health
Services Inc.* 500 $ 16,500
St. Paul Companies,
Inc. 600 31,875
State Auto Financial
Corp. 400 9,700
Torchmark Corp. 500 21,500
Transamerica Corp. 500 38,000
Trenwick Group Inc. 200 9,625
UNUM Corp. 500 29,750
USF&G Corp. 500 7,938
USLIFE Corp. 100 2,813
United Companies
Financial Corp. 1,200 38,550
United Dental Care
Inc.* 200 7,900
United Insurance
Companies, Inc. 1,400 29,750
United Wisconsin
Services, Inc. 300 6,638
Vesta Insurance
Group Inc. 1,200 38,550
Washington National
Corp. 400 11,050
Zenith National
Insurance Corp. 400 10,050
---------
2,149,135
---------
MEDIA--1.6%
AMC Entertainment Inc.* 400 10,350
BET Holdings, Inc.
Class A* 300 8,775
Cablevision Systems
Corp. Class A* 400 19,950
Carmike Cinemas Inc.* 300 7,988
Central Newspapers Inc.
Class A 1,100 40,013
Century Communications
Corp. Class A* 2,700 26,156
Citicasters Inc. 600 18,000
Comcast Corp. Class A 2,200 38,363
Dow Jones & Co. Inc. 700 26,163
Emmis Broadcasting
Corp. Class A* 200 8,625
Evergreen Media* 600 23,775
GC Companies Inc.* 300 10,838
Gannett Inc. 1,000 68,375
Harte Hanks
Communications (New) 1,500 35,438
Heartland Wireless
Communications, Inc.* 300 8,400
Houghton Mifflin Co. 500 23,188
Interdigital Commerce
Corp.* 1,000 8,313
International
Cabletel Inc. 1,300 38,269
International Family
Entertainment Inc.
Class B 1,625 24,781
Jacor Communications
Inc.* 600 12,900
John Wiley & Son, Inc.
Class A 900 31,050
King World Productions,
Inc.* 300 13,050
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Knight-Ridder, Inc. 300 $ 21,713
McClatchy Newspapers
Inc. Class A 1,300 31,525
McGraw-Hill, Inc. 600 26,475
Media General,Inc.
Class A 900 34,650
Meredith Corp. 100 4,538
Metromedia
International Group.,
Inc. 1,500 20,250
Movie Gallery Inc.* 300 9,300
New World
Communications
Class A* 1,000 18,688
New York Times Co.
Class A 700 22,750
Oak Industries Inc.* 400 10,800
Paxson Communications
Corp. 600 8,925
Pulitzer Publishing Co. 900 51,300
Regal Cinemas, Inc. 450 18,422
Renaissance
Communications Corp. 1,300 35,913
SBC Communications Inc. 4,200 210,000
Silver King
Communications Inc.* 300 8,850
TCA Cable TV Inc. 1,100 32,313
Tele Communications
Inc. (New)--TCI Group
Series A 5,000 95,938
Time Warner Inc. 2,900 118,538
Times Mirror Co. (New)
Series A 800 34,100
Tribune Co. (New) 400 27,900
United International
Holdings Inc.
Class A* 600 8,700
Viacom Inc. Class B* 2,700 110,700
Westcott Communications
Inc.* 600 12,788
Westwood One Inc.* 900 15,919
---------
1,493,755
---------
MISCELLANEOUS FINANCE--1.9%
1st Source Corp. 420 9,555
AMCORE Financial, Inc. 400 8,100
Aames Financial Corp. 200 8,825
Alex Brown Inc. 900 48,713
American Express Co. 3,500 169,750
Americredit Corp.* 700 10,063
Astoria Financial Corp. 300 16,013
Beneficial Corp. 400 22,100
Bok Financial Corp.
(New) 500 10,375
Cal-Federal
Bancorp Inc.* 1,700 30,388
Charter One
Financial Inc. 1,700 59,606
Coast Savings
Financial Inc.* 500 15,563
Collective Bancorp Inc. 1,000 24,188
Commercial Federal
Corp. 400 15,350
Dean Witter Discover
& Co. 1,100 59,950
Downey Financial Corp. 420 9,083
</TABLE>
26
<PAGE> 31
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Eaton Vance Corp. (Non
Voting) 200 $ 6,175
Federal Home Loan
Mortgage Corp. 1,200 100,050
Federal National
Mortgage Assoc. 7,600 232,750
First American
Financial Corp. 400 11,000
First Financial Corp. 1,300 30,713
Fund American
Enterprises
Holdings, Inc. 200 15,300
Glendale Federal Bank
(FSB) (New)* 1,500 26,250
Golden West
Financial Corp. 500 26,313
Great Financial Corp. 400 10,975
Great Western
Financial Corp. 1,000 23,000
Green Tree
Financial Corp. 1,000 33,750
H.F. Ahmanson & Co. 600 14,250
Home Financial Corp. 600 8,400
Household International
Inc. 700 48,388
Inter-Regional
Financial Group, Inc. 300 6,563
Interpool Inc. 400 7,200
JSB Financial, Inc. 300 10,200
Leader Financial Corp. 300 13,256
Legg Mason, Inc. 400 11,500
Merrill Lynch & Co.
Inc. 1,200 72,450
Money Store Inc. 2,000 50,750
Morgan Keegan, Inc. 700 8,488
Morgan Stanley
Group Inc. 1,000 50,250
North American Mortgage
Co. 400 6,750
Olympic Financial Ltd.* 500 11,125
Peoples Heritage
Financial Group, Inc. 400 8,400
Pioneer Group Inc. 1,100 29,150
Quick & Reilly
Group, Inc. 1,100 33,550
RCSB Financial Inc. 400 9,425
Raymond James Financial
Inc. 500 11,313
Roosevelt Financial
Group Inc. 1,600 30,800
Salomon Inc. 600 24,375
Sovereign Bancorp Inc. 2,205 24,531
St. Paul Bancorp Inc. 500 12,156
Standard Financial Inc. 400 5,975
Student Loan Corp. 1,000 35,750
Travelers Group Inc. 2,200 135,300
Value Line, Inc. 300 10,425
WFS Financial Inc.* 800 15,950
Westcorp Inc. 1,100 21,588
---------
1,762,156
---------
MOTOR VEHICLE--1.3%
A.O. Smith Corp.
Class B 800 18,400
Arctco, Inc. 700 6,781
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Arvin Industries, Inc. 1,300 $ 29,250
Borg Warner Automotive
Inc. 1,100 41,938
Breed Technologies Inc. 900 19,350
Chrysler Corp. 2,600 163,150
Cummins Engine Inc. 200 9,350
Dana Corp. 700 23,275
Detroit Diesel Corp.* 600 11,475
Eaton Corp. 500 30,250
Echlin Inc. 300 10,313
Federal Mogul Corp. 1,000 19,000
Fleetwood
Enterprises, Inc. 200 5,250
Ford Motor Co. 8,200 294,175
General Motors Corp. 5,500 298,375
Gentex Corp.* 400 15,750
Genuine Parts Co. 800 35,400
Hayes Wheels
International Inc. 500 15,188
Mascotech Inc. 1,500 19,688
Modine Manufacturing
Co. 1,000 27,500
PACCAR Inc. 200 9,950
Standard Products Co. 500 12,688
Superior Industries
International, Inc. 1,000 27,375
TRW Inc. 400 37,550
Titan Wheel
International Inc. 500 8,063
---------
1,189,484
---------
NON-FERROUS--0.6%
A.M. Castle & Co. 300 10,050
Alcan Aluminum Ltd. 1,600 51,000
Aluminum Company of
America 1,600 99,800
Asarco Inc. 200 6,625
Brush Wellman Inc. 500 9,375
Coeur d'Alene Mines
Corp. 500 9,938
Commercial Metals Co. 500 15,000
Cyprus Amax
Minerals Co. 600 16,275
Echo Bay Mines Ltd 600 7,875
Engelhard Corp. 1,000 25,125
Freeport McMoran Copper
& Gold Class B 1,400 46,025
Hecla Mining Co.* 1,100 8,525
IMCO Recycling Inc. 400 8,700
Inco Ltd. 1,200 40,350
Material Sciences
Corp.* 300 4,800
Minerals Technologies
Inc. 1,000 38,500
Mueller Industries Inc. 900 36,225
Phelps Dodge Corp. 500 36,750
Reynolds Metals Co. 400 21,500
Stillwater Mining Co.* 600 14,250
Sunshine Mining &
Refining Co.* 4,500 7,313
Wolverine Tube Inc.* 400 14,700
---------
528,701
---------
</TABLE>
27
<PAGE> 32
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
OIL-DOMESTIC--0.7%
Amerada Hess Corp. 700 $ 39,638
Ashland Inc. 400 16,450
Atlantic Richfield Co. 1,100 129,525
Barrett Resources
Corp.* 1,100 30,525
Cross Timbers Oil Co. 400 8,000
Diamond Shamrock Inc. 1,300 44,038
KCS Energy, Inc. 200 4,525
Kerr-McGee Corp. 400 25,550
Oryx Energy Co.* 500 8,000
Pennzoil Co. 200 8,850
Phillips Petroleum Co. 2,100 87,150
Pogo Producing Co. 1,300 46,963
Quaker State Corp. 900 14,175
Santa Fe Energy
Resources, Inc.* 400 4,800
Smith International
Inc.* 1,100 32,725
Snyder Oil Corp. 700 6,300
Sun Inc. 400 12,400
USX Corp. (Marathon
Group) (New) 2,000 44,000
Unocal Corp. 1,700 54,613
---------
618,227
---------
OIL-INTERNATIONAL--2.4%
Amoco Corp. 3,400 248,200
Chevron Corp. 4,800 278,400
Exxon Corp. 9,000 765,000
Mobil Corp. 2,800 322,000
Royal Dutch
Petroleum Co. 3,700 530,025
Texaco Inc. 1,800 153,900
Western Atlas, Inc.* 400 24,000
---------
2,321,525
---------
PAPER--0.9%
Alco Standard Corp. 900 52,088
Boise Cascade Corp. 300 13,950
Caraustar Industries
Inc. 1,100 27,638
Champion International
Corp. 700 33,775
Chesapeake Corp. 1,100 31,763
Georgia Pacific Corp. 600 46,650
International Paper Co. 2,100 83,738
James River Corp. 400 10,700
Kimberly Clark Corp. 2,280 165,585
Longview Fibre Co. 1,800 31,725
Louisiana Pacific Corp. 700 17,588
Mead Corp. 300 16,688
P.H. Glatfelter Co. 1,500 24,938
Potlatch Corp. 100 4,263
Rock Tennessee Co.
Class A 900 15,806
Schweitzer Mauduit
International Inc. 100 2,713
Shorewood Packaging
Corp.* 600 10,350
Temple-Inland Inc. 400 19,400
Thermo Fibertek Inc. 1,500 34,313
Union Camp Corp. 500 27,188
Wausau Paper
Mills Co. 1,625 37,375
Westvaco Corp. 700 21,700
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Weyerhaeuser Co. 1,300 $ 64,350
Willamette
Industries, Inc. 600 37,050
-------
831,334
-------
PRODUCER GOODS-MANUFACTURING--3.6%
Albany International
Corp. Class A (New) 1,300 27,950
Allied Signal Inc. 2,300 133,688
American Financial
Enterprises Inc. 300 7,275
Applied Power Inc.
Class A 400 12,550
AptarGroup, Inc. 500 18,813
Avery Dennison Corp. 400 22,800
BT Office Products
International Inc.* 1,200 20,850
BW/IP Holding, Inc.
Class A 600 12,450
Baldor Electric Co. 1,200 25,950
Barnes Group Inc. 200 9,275
Bearings Inc. (New) 300 9,600
Blyth Industries Inc. 800 31,800
Boise Cascade Office
Products Corp. 900 70,425
Briggs & Stratton Corp. 100 4,538
Case Corp. 600 30,300
Caterpillar Inc. 1,300 83,200
Cincinnati
Milacron Inc. 100 2,638
Clarcor Inc. 400 7,900
Coherent Inc.* 300 16,106
Collins & Aikman Corp.* 1,900 13,300
Commercial Intertech
Corp. 500 9,500
Cooper Industries Inc. 800 34,000
Corporate Express, Inc. 480 17,970
Credence Systems Corp. 600 12,975
Deere & Co. 1,700 66,088
Donaldson Inc. 1,200 31,500
Dover Corp. 800 41,200
Duriron Inc. 1,100 28,875
Emerson Electric Co. 1,600 133,800
FMC Corp. (New)* 200 13,875
Fisher Scientific
International, Inc. 900 33,638
Foster Wheeler Corp. 300 13,875
General Binding Corp. 500 11,500
General Electric Co. 11,900 922,250
Giddings & Lewis Inc. 1,100 20,350
Goulds Pumps Inc. 1,000 23,438
Graco Inc. 450 9,056
Greenfield
Industries Inc. 400 15,175
Griffon Corp.* 700 6,300
Harnischfeger
Industries Corp. 200 8,100
Helix Technology Corp. 300 11,306
Herman Miller Inc. 1,200 36,900
IDEX Corp. 1,000 39,250
ITT Industries Inc. 800 22,000
</TABLE>
28
<PAGE> 33
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Illinois Tool
Works Inc. 800 $ 53,800
Ingersoll Rand Co. 700 27,125
Insilco Corp.* 300 10,406
Interface Inc. Class A 400 5,225
Intermagnetics General
Corp. 400 6,400
Ionics Inc. 400 19,200
JLG Industries Inc. 500 27,375
Johnson Controls, Inc. 300 21,450
Juno Lighting Inc. 400 5,950
Kaydon Corp. 900 35,775
Kennametal Inc. 900 34,088
Keystone
International Inc. 1,000 21,875
Lawson Products, Inc. 400 9,200
Lincoln Electric Co. 300 8,025
Lincoln Electric Co.
Class A (Non Voting) 900 25,425
Lydall Inc. 400 9,400
Manitowoc Inc. 300 10,200
Measurex Corp. 400 11,600
Millipore Corp. 200 8,375
Mine Safety
Appliances Co. 200 8,875
Myers Industry Inc. 500 9,063
NN Ball & Roller, Inc. 400 10,000
Navistar International
Corp.* 5,700 68,400
Nu-Kote Holding Inc.
Class A 500 8,875
Pall Corp. 600 16,800
Parker Hannifin Corp. 500 21,125
Precision Castparts
Corp. 1,000 43,375
Presstek Inc. 900 124,988
Raychem Corp. 300 23,363
Roper Industries 400 18,850
SPS Technologies, Inc. 100 6,500
Standex International
Corp. 400 10,800
Stewart & Stevenson
Services, Inc. 900 26,550
TRINOVA Corp. 2,100 74,025
Teleflex Inc. 500 23,188
Tencor Instruments 1,100 27,156
Tenneco Inc. 1,200 65,850
Texas Industries Inc. 300 19,200
Timken Co. 100 3,963
TriMas Corp. 1,300 30,713
Triarc Cos., Inc.
Class A* 700 8,838
Tyco Interest Ltd 1,100 42,488
U.S. Filter Corp. (New) 1,100 33,825
UNR Industries, Inc. 1,200 11,100
Valhi, Inc. (New) 3,900 25,350
Valmont Industries,
Inc. 300 9,675
Varity Corp.* 200 8,525
W.W. Grainger, Inc. 400 27,600
WMS Industries Inc.* 600 10,875
Watts Industries Inc.
Class A 1,300 26,650
Westinghouse Air Brake
Co. (New) 600 8,475
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Westinghouse Electric
Corp. 2,900 $ 54,738
Westpoint Stevens Inc.
Class A 1,300 27,381
Wyman Gordon Co.* 1,000 18,250
X-Rite, Inc. 500 8,750
Zero Corp. 500 9,000
Zurn Industries, Inc. 400 8,150
---------
3,456,552
---------
RAILROAD--0.4%
Burlington Northern
Santa Fe 1,000 87,500
CSX Corp. 1,400 71,750
Conrail Inc. 500 34,875
Florida East Coast
Industry Inc. 300 26,700
Norfolk Southern Corp. 900 75,600
Union Pacific Corp. 1,400 95,375
---------
391,800
---------
REAL PROPERTY--0.1%
Avatar Holdings, Inc.* 200 7,800
Catellus Development
Corp.* 2,700 24,638
Forest City
Enterprises, Inc.
Class A 200 7,550
Insignia Financial
Group Class A (New) 600 13,200
Lennar Corp. 1,400 35,000
Price Enterprises Inc. 700 11,200
---------
99,388
---------
RETAIL--2.9%
Albertson's Inc. 1,800 69,300
American Stores Co.
(New) 1,000 33,375
AnnTaylor Stores Corp.* 500 8,563
Arbor Drugs, Inc. 1,100 22,413
Best Buy Co., Inc.* 1,500 28,875
Blair Corp. 200 5,225
Burlington Coat Factory
Warehouse* 1,100 11,963
CDW Computer
Centers Inc.* 400 30,900
CUC International Inc. 1,100 36,163
Carson Pirie Scott &
Co.* 400 9,700
Casey's General
Stores Inc. 700 15,094
Charming Shoppes Inc. 3,600 23,175
Circle K Corp.* 900 28,125
Circuit City Stores
Inc. 700 22,225
Claire's Stores Inc. 750 16,313
CompUSA Inc. 2,000 69,250
Dayton Hudson Corp. 600 57,300
Dillard Department
Stores Inc. Class A 800 32,100
Dollar Tree Stores Inc. 600 20,100
Duty Free
International Inc. 800 10,700
Family Dollar
Stores, Inc. 1,900 28,975
</TABLE>
29
<PAGE> 34
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Federated Department
Stores Inc.* 1,400 $ 46,725
Fingerhut
Companies, Inc. 1,300 16,575
Fred Meyer Inc.* 800 23,000
Fruit of the Loom Inc.
Class A* 400 10,550
Gap Inc. 2,000 60,250
Giant Food Inc. Class A 300 9,563
Great Atlantic &
Pacific Tea Co., Inc. 200 6,975
Gymboree Corp.* 1,100 28,600
Harcourt General Inc. 400 17,600
Hollywood Entertainment
Corp. 900 14,681
Home Depot Inc. 3,600 170,550
Home Shopping
Network, Inc.* 3,100 36,425
J.C. Penney Inc. 1,600 79,200
Just for Feet Inc. 500 23,906
K Mart Corp. 3,100 31,388
Kroger Co.* 800 32,900
Lands' End, Inc.* 1,000 19,750
Limited Inc. 1,997 41,438
Longs Drug Stores Corp. 100 4,525
Lowe's Cos. Inc. 1,100 35,613
MacFrugals Bargains-
Close-Out* 600 8,025
May Department
Stores Co. 1,700 86,700
Melville Corp. 1,200 46,650
Mercantile Stores Co.,
Inc. 300 18,713
Michaels Stores Inc.* 500 9,219
Nordstrom Inc. 500 25,375
Penn Traffic Co. (New)* 200 2,750
Pep Boys--Manny,
Moe & Jack 300 10,013
Petco Animal
Supplies Inc. 300 8,700
Pier 1 Imports Inc. 1,400 18,725
Price Costco Inc.* 1,900 35,981
Proffitt's, Inc.* 700 23,013
Quality Food
Centers, Inc. 400 10,500
Regis Corp. 300 11,063
Rite Aid Corp. 600 17,775
Ross Stores Inc. 600 20,775
Ruddick Corp. 1,600 21,200
Sears Roebuck & Co. 2,900 144,638
Service Merchandise
Co. Inc.* 2,700 12,825
Shopko Stores Inc. 900 13,950
Smart & Final Inc. 500 11,375
Smith's Food & Drug
Centers, Inc. Class B 900 22,500
Sotheby's Holdings,
Inc. Class A 1,600 22,600
Spiegel, Inc. Class A
(Non Voting) 3,700 37,000
Sports Authority Inc.* 500 14,875
Stanhome Inc. 500 14,750
Stein Mart Inc.* 500 7,938
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Strawbridge & Clothier
Class A 300 $ 5,550
TJX Companies, Inc. 300 8,850
Tandy Corp. 400 20,750
Tiffany & Co. (New) 900 58,725
Toys "R" Us, Inc.* 2,300 64,113
United Stationers Inc. 400 9,050
Vitalink Pharmacy
Services, Inc.* 300 6,788
Waban Inc.* 1,300 31,850
Wal-Mart Stores, Inc. 16,000 382,000
Walgreen Co. 1,700 54,400
Williams-Sonoma Inc.* 1,100 27,569
Winn Dixie Stores Inc. 1,100 36,300
Woolworth Corp. 700 13,388
Zale Corp. (New)* 1,000 18,813
---------
2,705,822
---------
STEEL--0.3%
Armco Inc.* 3,400 19,125
Bethlehem Steel Corp.* 500 6,813
Birmingham Steel Corp. 1,200 19,200
Carpenter Technology
Corp. 900 33,863
Chaparral Steel Co. 1,200 18,150
Cleveland Cliffs Inc. 300 12,525
Inland Steel
Industries, Inc. 200 4,925
Intermet Corp.* 700 10,238
J & L Specialty Steel
Inc. 1,100 19,938
Lukens Inc. 400 10,550
National Steel Corp.
Class B* 1,200 16,350
Nucor Corp. 600 33,750
Oregon Steel Mills Inc. 400 6,350
Quanex Corp. 300 6,600
Rouge Steel Co. Class A 300 6,713
USX Corp. (U.S.
Steel Group) 500 16,500
WHX Corp.* 600 6,900
Worthington
Industries Inc. 1,100 22,481
---------
270,971
---------
TELEPHONE--3.5%
360 Communications Co.* 900 21,150
AT&T Corp. 11,400 698,250
Airtouch Communications
Inc.* 3,600 112,500
Alltel Corp. 1,200 39,450
American Mobile
Satellite Corp.* 1,100 21,175
Ameritech Corp. (New) 3,800 221,825
Andrew Corp. 300 14,363
Antec Corp.* 500 7,594
Arch Communications
Group, Inc.* 800 19,000
Aspect
Telecommunications
Corp. 1,000 57,500
Associated Group Inc.
Class A* 500 13,906
Bell Atlantic Corp. 3,000 195,000
</TABLE>
30
<PAGE> 35
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
BellSouth Corp. 6,900 $ 276,000
Boston Technology Inc.
(New)* 700 12,250
C-TEC Corp. 1,200 35,850
California Microwave* 400 7,350
Cellstar Corp.* 500 4,688
Centennial Cellular
Corp. Class A* 400 6,500
Cidco Inc.* 400 14,250
Coherent Communications
Systems Corp. 400 7,600
Colonial Data
Technologies* 300 6,825
Comnet Cellular Inc.* 300 9,938
DSC Communications
Corp.* 700 21,963
Echostar Communications
Corp. Class A* 300 9,938
GTE Corp. 6,700 290,613
General Datacom
Industries Inc.* 500 6,875
Geotek Communications
Inc.* 1,200 12,525
InterVoice, Inc.* 500 14,031
Lincoln
Telecommunications 1,400 23,538
Loral Space &
Communications* 1,100 15,813
MCI Communications
Corp. 5,000 146,875
Microcom Inc.* 400 9,800
Mobilemedia Corp.
Class A* 1,000 19,875
Nextel Communications
Inc.* 535 9,630
Northern Telecom Ltd 1,800 92,700
Nynex Corp. 3,200 157,200
Octel Communications
Corp. 1,100 49,500
P-Com Inc. 500 12,531
Pacific Telesis Group 3,200 109,600
Pairgain Technologies
Inc.* 900 86,175
Plantronics, Inc.
(New)* 200 8,025
Sprint Corp. 2,700 113,738
Tellabs Inc. 600 33,225
U S WEST, Inc.
(Communications
Group) 3,400 111,350
U S West Inc.
(Media Group)* 3,800 74,100
Vanguard Cellular
Systems, Inc.
Class A* 1,200 25,800
Worldcom Inc.* 1,300 61,019
---------
3,319,403
---------
TOBACCO--0.7%
American Brands, Inc. 1,200 49,950
Loews Corp. 800 61,000
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Philip Morris Companies
Inc. 6,200 $558,775
UST Inc. 1,200 38,400
-------
708,125
-------
TRANSPORTATION-MISCELLANEOUS--0.5%
Air Express
International Corp. 500 13,938
Airbourne Freight Corp. 1,000 26,375
Amerco Inc.* 1,600 35,500
American Freightways
Corp.* 700 10,675
American President
Companies, Ltd. 800 19,100
Arnold Industries Inc. 800 12,800
Caliber Systems Inc. 200 8,025
Consolidated
Freightways Inc. 200 5,225
Expeditores
International of
Washington Inc. 300 8,813
Federal Express Corp.* 400 32,300
Greyhound Lines Inc. 2,100 7,481
Harper Group, Inc. 500 9,625
Heartland Express, Inc. 961 28,350
J.B. Hunt Transport
Services Inc. 1,100 22,619
Kirby Corp.* 800 14,100
Landstar Systems, Inc.* 300 8,325
M.S. Carriers, Inc.* 300 5,775
NACCO Industries, Inc.
Class A 400 25,250
Overseas Shipholding
Group 1,400 28,175
Pittston Co.
(Burlington Group) 100 1,988
Pittston Services Group 200 5,575
Roadway Express Inc. 350 5,228
Rollins Truck Leasing
Corp. 1,100 11,963
Ryder System, Inc. 400 11,650
Shurgard Storage
Centers Inc. Class A 700 17,938
Swift Transportation
Inc. 600 11,400
TNT Freightways Corp. 600 13,538
Wabash National Corp. 600 11,850
Werner Enterprises Inc. 1,100 27,088
XTRA Corp. 600 27,300
Yellow Corp. 900 11,025
-------
478,994
-------
TRAVEL & RECREATION--0.8%
Anchor Gaming* 300 13,275
Anthony Industries,
Inc. 400 11,400
Aztar Corp.* 900 8,775
Bally Entertainment
Corp. 2,000 41,750
Bally Total Fitness
Holding Corp.* 375 2,063
Boyd Gaming Corp.* 2,100 29,400
Brunswick Corp. 500 11,000
Doubletree Corp.* 600 19,163
Harrahs Entertainment
Inc.* 700 24,150
</TABLE>
31
<PAGE> 36
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Hilton Hotels Corp. 300 $ 31,650
ITT Corp. (New)* 800 48,700
Marcus Corp. 500 13,938
Marriot International
Inc. 900 43,875
Players International
Inc. 700 7,963
Polaris Industries Inc. 1,200 41,850
Primadonna Resorts
Inc.* 900 17,213
Prime Hospitality
Corp.* 700 10,588
Rio Hotel &
Casino Inc.* 500 9,000
Showboat, Inc. 500 16,000
Speedway Motorsports,
Inc. 1,400 37,450
Station Casinos Inc.* 1,000 13,125
Stratosphere Corp.* 1,900 20,781
Topps Inc. 1,100 6,428
Walt Disney Co. 4,973 308,326
-------
787,863
-------
UTILITIES--2.4%
American Electric Power
Co., Inc. 1,200 48,750
Aquila Gas Pipeline
Corp. 700 9,713
Atmos Energy Corp. 500 12,375
Baltimore Gas &
Electric Co. 1,100 29,013
Bay State Gas Co. 300 8,325
Black Hills Corp. 400 10,000
Carolina Power & Light
Co. 1,000 36,000
Central & South West
Corp. 1,600 43,600
Central Hudson Gas &
Electric Corp. 500 14,500
Central Louisiana
Electric Co. (New) 1,100 28,188
Central Maine
Power Co. 900 12,825
Cilcorp Inc. 400 17,250
Cinergy Corp. 1,100 31,900
Coastal Corp. 700 27,738
Columbia Gas
System, Inc. 400 19,450
Commonwealth Energy
System (Shares of
Beneficial Interest) 300 13,763
Consolidated
Edison Co. 2,100 61,688
Consolidated Natural
Gas Co. 600 28,050
DTE Energy Co. 1,000 31,000
Destec Energy, Inc.* 2,000 23,500
Dominion
Resources Inc. 1,100 42,350
Duke Power Co. 1,400 65,800
ENSERCH Corp. 300 6,450
Eastern Enterprises 1,100 39,463
Eastern Utilities
Association 1,000 20,375
Edison International 2,800 44,800
Empire District
Electric Co. 400 7,300
Energen Corp. 300 6,863
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Enron Corp. 1,800 $ 72,450
Entergy Corp. 1,400 37,100
FPL Group, Inc. 1,200 51,750
General Public
Utilities Corp. 800 25,400
Houston Industries Inc. 1,600 34,200
IES Industries Inc. 1,300 34,450
Indiana Energy Inc. 600 14,325
Interstate Power Co. 300 9,188
K N Energy Inc. 1,200 38,400
Laclede Gas Co. 400 9,400
MDU Resources Group,
Inc. 1,200 26,250
Madison Gas & Electric
Co. 450 11,025
NICOR Inc. 200 5,575
New Jersey Resources
Corp. 500 14,188
Niagara Mohawk Power
Corp. 700 5,250
NorAm Energy Co. 600 6,600
Northern States
Power Co. 500 23,375
Northwest Natural
Gas Co. 400 13,075
Northwestern Public
Service Co. 300 8,363
Ohio Edison Co. 800 16,700
Oneok Inc. 900 23,175
Orange & Rockland
Utilities, Inc. 400 13,650
Otter Tail Power Co. 300 10,988
P P & L Resources Inc. 1,400 31,675
Pacific Enterprises 400 10,300
Pacific Gas &
Electric Co. 2,700 61,425
Pacificorp 1,800 36,000
Panenergy Corp. 1,100 36,850
Peco Energy Co. 1,700 42,288
Peoples Energy Corp. 100 3,150
Philadelphia Suburban
Corp. 400 9,300
Piedmont Natural
Gas Inc. 1,200 25,950
Primark Corp.* 1,100 39,050
Public Service Co. of
New Mexico 1,200 21,000
Public Service Co. of
North Carolina Inc. 400 6,450
Public Service
Enterprise Group 1,500 39,188
Seagull Energy Corp.* 1,400 34,125
Sierra Pacific
Resources 1,300 31,525
Sig Corp. 900 30,038
Sonat Inc. 600 26,175
South Jersey
Industries Inc. 300 7,013
Southern Co. 5,100 112,200
Southern Union Co.
(New) 400 8,800
Southwest Gas Corp. 700 11,638
</TABLE>
32
<PAGE> 37
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Southwestern
Energy Co. 600 $ 8,325
Tejas Gas Corp. 800 40,000
Texas Utilities Co. 1,900 76,475
Thermo Ecotek Corp. 600 14,175
Tucson Electric
Power Co.* 4,300 12,363
UGI Corp. (New) 1,300 29,088
Unicom Corp. 1,700 46,750
Union Electric Co. 700 27,038
United Illuminating Co. 400 14,550
United Water Resources
Inc. 900 11,250
WPS Resources Corp. 1,100 34,788
Washington Energy Co. 600 11,625
Western Gas
Resources Inc. 600 8,850
Wicor Inc. 900 30,938
Williams Cos. Inc. 700 35,788
Yankee Energy
System, Inc. 300 6,713
-----------
2,278,762
-----------
54,539,746
-----------
INTERNATIONAL--19.7%
AUSTRALIA--0.4%
Australia & New Zealand
Banking Group 6,047 28,881
Broken Hill Proprietary
Co., Ltd. 8,884 136,715
Commonwealth Bank Group 4,031 33,090
National Australia Bank 5,726 51,368
News Corp., Ltd. 8,173 47,895
Western Mining Corp. 4,539 33,089
Westpac Banking Corp. 5,767 27,997
----------
359,035
----------
BELGIUM--0.2%
Electrabel 211 47,321
Electrabel, VVPR Strip 44 119
Generale de Banque 65 22,919
Petrofina SA 95 28,096
Societe Generale de
Belgique 322 25,060
Tractebel Investor
International 32 13,011
Tractebel Investor
International, VVPR
Strip 32 12,961
----------
149,487
----------
CANADA--0.6%
Alcan Aluminum Ltd. 975 31,008
BCE Inc. 1,370 53,884
Bank of Montreal 1,152 27,668
Bank of Nova Scotia,
Halifax 999 22,636
Barrick Gold Corp. 2,344 71,878
Canadian Imperial Bank
of Commerce 1,049 32,591
Canadian Pacific Ltd. 1,482 30,152
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Imperial Oil Ltd. (New) 835 $ 33,946
Northern Telecom Ltd. 1,107 56,996
Placer Dome Inc. 1,035 28,811
Royal Bank of Canada,
Montreal, Quebec 1,360 32,214
Seagram Co. Ltd. 1,480 49,841
Thomson Corp. 2,550 42,422
Toronto-Dominion Bank 1,305 22,621
---------
536,668
---------
DENMARK--0.1%
Novo Nordisk A/S
Series B 163 21,183
Tele Danmark A/S
Series B 570 28,684
---------
49,867
---------
FRANCE--1.3%
AXA Groupe SA 897 53,447
Alcatel Alsthom
CGE SA 708 66,587
BQE National de Paris 840 35,079
Carrefour 112 87,519
Christian Dior 183 24,400
Cie Financiere de
Paribas (Bearer) 523 33,642
Cie Generale de Eaux 561 61,012
Compagnie de Saint-
Gobain SA 364 43,603
Danone Groupe 310 46,852
Elf Aquitaine 1,250 92,961
L'Air Liquide 289 52,515
L'Oreal SA 285 88,078
LVMH Moet Hennessy
Louis Vuitton 400 102,332
Lafarge Coppee SA 402 25,750
Lyonnaise des Eaux-
Dumez 253 25,410
Michelin (CGDE) Class B
(Reg.) 502 24,879
PSA Peugeot Citroen 218 30,459
Pinault Printemps
Redoute SA 97 29,452
Renault (Regie
Nationale) 1,041 31,567
Rhone-Poulenc SA
A Shares 1,413 33,907
Roussel Uclaf 119 28,049
Sanofi 448 36,152
Schneider SA 579 26,981
Societe Generale 381 44,238
Suez Group 695 28,795
TOTAL Class B 1,097 74,450
Union des Assurances de
Paris 1,341 29,039
---------
1,257,155
---------
GERMANY--1.5%
BASF AG 251 68,534
Bankgesell Berlin 60 12,326
Bayer AG 302 97,254
Bayerische Hypotheken &
Wechsel Bank AG 1,052 26,168
</TABLE>
33
<PAGE> 38
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Bayerische Motoren
Werke AG 80 $ 43,190
Bayerische Vereinsbank
AG 984 28,924
Commerzbank AG 168 36,379
Daimler-Benz AG 220 120,498
Deutsche Bank AG 2,271 108,840
Dresdner Bank AG 1,678 42,221
Hoechst AG 256 86,220
Linde AG 31 18,954
Lufthansa AG 133 21,094
Mannesmann AG 153 52,269
Muenchener
Rueckversicherung
(Reg.) 34 61,741
RWE AG* 3,571 139,024
RWE AG (Non Voting)* 1,501 43,680
Sap AG 248 32,156
Siemens AG 242 132,516
Thyssen AG 128 23,202
Veba AG 2,051 101,954
Vereinigte
Elektrizitatswerke
Westfalen Series B 82 23,568
Viag AG 72 28,242
Viag AG (New)* 20 7,845
Volkswagen AG 110 37,974
---------
1,394,773
---------
HONG KONG--0.8%
CITIC Pacific 7,000 27,510
Cheung Kong Holdings 8,000 57,139
China Light & Power 11,000 51,904
Hang Seng Bank Ltd. 8,400 85,243
Henderson China 24 67
Henderson Land
Development Co. 6,000 43,048
Hongkong Electric
Holdings Ltd. 26,000 82,684
Hongkong
Telecommunications
Ltd. 42,800 81,611
Hutchison
Whampoa Ltd. 13,000 80,667
New World Development
Co. 6,138 27,534
Sun Hung Kai Properties 9,000 85,806
Swire Pacific Ltd.
Class A 7,000 59,725
Wharf Holdings 7,000 25,926
---------
708,864
---------
ITALY--0.4%
Alleanza Assicurazioni 1,523 14,382
Assicurazioni Generali 3,653 91,091
Fiat SpA 14,966 51,020
Fiat SpA, di Risp
(Non-Convertible) 6,565 11,957
INA 14,965 22,994
STET 17,472 59,060
STET di Risp
(Non-Convertible) 5,004 13,119
Telecom Italia 30,252 61,685
Telecom Italia di Risp
(Non-Convertible) 9,137 15,150
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Telecom Italia Mob 30,252 $ 66,818
Telecom Italia Mob
di Risp 11,325 15,878
-------
423,154
-------
JAPAN--7.0%
Ajinomoto Co., Inc. 1,000 12,523
All Nippon Airways Co.,
Ltd. 4,000 45,505
Asahi Bank 6,000 77,434
Asahi Breweries 1,000 12,141
Asahi Chemical Industry
Co. 3,000 22,800
Asahi Glass Co., Ltd. 3,000 36,423
Bank of Fukuoka 2,000 17,552
Bank of Tokyo
Mitsubishi (Bank of
Tokyo shares) 4,000 92,156
Bank of Tokyo
Mitsubishi
(Mitsubishi Bank
shares) 8,400 194,331
Bank of Yokohama 3,000 26,930
Bridgestone Corp. 2,000 37,092
Canon Inc. 2,000 39,769
Chiba Bank 1,000 9,034
Chubu Electric
Power Co. 2,000 50,667
Chugoku Electric Power
Co., Inc. 1,000 23,804
DDI Corp. 5 42,971
Dai Nippon
Printing Co. 2,000 37,666
Dai-Ichi Kangyo
Bank, Ltd. 9,000 183,261
Daiei Inc. 1,000 13,575
Daiwa Bank 4,000 31,165
Daiwa House
Industries Co. 1,000 15,965
Daiwa Securities Co. 4,000 61,565
East Japan Railway Co. 9 48,095
Fanuc 1,000 43,497
Fuji Bank, Ltd. 8,000 175,135
Fuji Photo Film Co. 1,000 31,165
Fujitsu Ltd. 5,000 51,623
Gunma Bank 1,000 11,567
Hachijuni Bank 1,000 11,567
Hankyu Corp. 2,000 12,217
Hitachi Ltd. 9,000 97,223
Hitachi Zosen Corp. 2,000 10,975
Hokkaido Electric Power
Co. 1,000 23,995
Hokuriku Electric Power
Co. 1,000 23,899
Honda Motor Co., Ltd. 3,000 68,544
Industrial Bank of
Japan, Ltd. 7,000 187,372
Ishikawajima-Harima
Heavy Industries 3,000 14,913
Ito-Yokado Co., Ltd. 1,000 58,984
Itochu Corp. 4,000 30,477
Japan Air Lines Co.,
Ltd. 4,000 32,006
Japan Telecom Co. 1 21,032
Japan Tobacco Inc. 4 37,015
Joyo Bank 1,000 8,183
Jusco Co. 1,000 30,974
</TABLE>
34
<PAGE> 39
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Kajima Corp. 2,000 $ 22,561
Kansai Electric
Power Co. 2,600 63,133
Kao Corp. 1,000 13,384
Kawasaki Heavy
Industries 2,000 10,344
Kawasaki Steel Co. 8,000 29,291
Kinki Nippon
Railway Co. 4,120 32,060
Kirin Brewery Co., Ltd. 3,000 39,004
Kobe Steel 5,000 15,535
Kokusai Denki 1,000 98,466
Komatsu Ltd. 2,000 19,311
Kubota Corp. 4,000 27,876
Kyocera Corp. 1,000 75,331
Kyushu Electric
Power Co. 1,000 24,855
Long-Term Credit Bank
of Japan 6,000 52,024
Marubeni Corp. 4,000 23,976
Marui Co. 1,000 22,083
Matsushita
Communication
Industrial Co., Ltd. 1,000 26,767
Matsushita Electric
Industrial Co., Ltd. 6,000 106,113
Matsushita Electric
Works 1,000 11,376
Mitsubishi Chemical
Corp. 5,000 27,437
Mitsubishi Corp. 4,000 56,976
Mitsubishi Electric
Corp. 5,000 39,386
Mitsubishi Estate Co. 3,000 42,159
Mitsubishi Heavy
Industries 9,000 80,359
Mitsubishi
Materials Co. 2,000 12,045
Mitsubishi Motors 2,000 18,049
Mitsubishi Trust &
Banking Corp. 4,000 69,213
Mitsui & Co. 4,000 38,124
Mitsui Fudosan Co. 2,000 26,385
Mitsui Marine & Fire
Insurance 2,000 16,959
Mitsui Trust & Banking
Co. 3,000 36,136
Murata Manufacturing
Co. 1,000 38,813
NEC Corp. 4,000 50,858
NKK Corp. 8,000 25,085
New Oji Paper Co. 1,000 9,244
Nikko Securities Co. 4,000 50,858
Nikon Corp. 1,000 13,479
Nintendo Co., Ltd. 1,000 77,243
Nippon Credit Bank 3,000 12,246
Nippon Express Co. 3,000 31,260
Nippon Oil Co. 3,000 20,793
Nippon Paper Industries
Co. 2,000 14,646
Nippon Steel Corp. 19,000 68,658
Nippon Telegraph &
Telephone Corp. 40 310,119
Nippon Yusen Kabushiki
Kaisha 2,000 12,141
Nippondenso Co. 2,000 43,593
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Nissan Motor Co., Ltd. 6,000 $ 50,705
Nomura Securities
Co., Ltd. 5,000 108,981
Obayashi Corp. 1,000 9,302
Odakyu Electric Railway
Co. 2,060 14,770
Oki Electric Industry
Co., Ltd. 1,000 7,935
Omron Corp. 1,000 22,561
Ono Pharmaceutical Co. 1,000 37,761
Osaka Gas Co. 7,000 28,039
Ricoh Co., Ltd. 1,000 11,759
Rohm Co. 1,000 63,668
Sakura Bank 9,000 105,827
Sankyo Co. 1,000 24,282
Sanwa Bank 8,000 162,134
Sanyo Electric Co.,
Ltd. 5,000 31,930
Secom Co. 1,000 70,742
Seibu Railway Co. 1,000 56,211
Sekisui Chemical Co. 1,000 12,619
Sekisui House 2,000 24,855
Seven-Eleven Japan Co. 1,100 77,922
Sharp Corp. 3,000 52,196
Shikoku Electric
Power Co. 1,000 24,569
Shimizu Corp. 2,000 22,943
Shin-Etsu Chemical Co. 1,050 22,986
Shizuoka Bank 2,000 27,150
Sony Corp. 1,000 65,006
Sony Music
Entertainment 1,000 54,204
Sumitomo Bank 9,000 192,725
Sumitomo
Chemical Co. 3,000 15,974
Sumitomo Corp. 3,000 35,849
Sumitomo Electric
Industries 2,000 28,679
Sumitomo Marine & Fire
Insurance Co. 2,000 19,043
Sumitomo Metal
Industries 7,000 22,485
Sumitomo Trust &
Banking Co. 3,000 43,879
Suzuki Motor Corp. 1,000 12,715
TDK 1,000 57,263
Taisei Corp. 2,000 15,487
Taisho Pharmaceutical
Co. 1,000 21,892
Takeda Chemical
Industries 2,000 34,606
Teijin Ltd. 2,000 10,994
Tobu Railway Co. 2,000 13,843
Tohoku Electric
Power Co. 1,000 24,855
Tokai Bank 5,000 64,050
Tokio Marine & Fire
Insurance Co. 4,000 55,064
Tokyo Electric Power
Co., Inc. 3,600 98,083
Tokyo Electron 1,000 37,188
Tokyo Gas & Electric
Industrial 7,000 27,503
</TABLE>
35
<PAGE> 40
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Tokyu Corp. 2,000 $ 16,309
Tonen Corp. 2,000 29,826
Toppan Printing Co. 2,000 29,444
Toray Industries Inc. 4,000 27,226
Toshiba Corp. 8,000 62,253
Tostem Corp. 1,000 31,069
Toto 1,000 14,818
Toyo Seikan 1,000 35,467
Toyo Trust &
Banking Co. 1,000 10,898
Toyoda Automatic Loom 1,000 20,745
Toyota Motor Corp. 10,000 228,479
Yamaichi Securities Co. 3,000 23,718
Yamanouchi
Pharmaceutical Co. 1,000 23,708
Yasuda Fire & Marine
Insurance Co. 2,000 15,774
Yasuda Trust & Banking
Co. 2,000 13,269
---------
6,676,778
---------
NETHERLANDS--1.1%
ABN Amro
Holdings NV 1,465 75,836
Aegon NV 1,246 59,337
Akzo Nobel NV 309 35,886
Dordtsche Petrol 152 22,665
Elsevier NV 2,881 43,379
Heineken NV 218 45,623
ING NV 1,339 103,385
Koninklijke Ahold NV 541 26,679
Koninklijke PTT
Nederland 2,152 80,755
Philips Electronics NV 1,640 57,905
PolyGram NV 784 46,669
Royal Dutch Petroleum
Co. (Bearer) 2,443 348,022
Unilever NV, CVA 734 100,151
Wolters Kluwer NV, CVA 292 31,918
---------
1,078,210
---------
SINGAPORE--0.4%
City Developments 3,000 26,248
Development Bank
of Singapore
(alien market) 3,000 37,985
Hong Kong Land Holdings 11,000 23,540
Jardine Matheson
Holdings Ltd. 3,000 24,000
Overseas Chinese Bank
(alien market) 4,000 54,915
Singapore Airlines Ltd.
(alien market) 5,000 50,505
Singapore
Telecommunications 66,000 162,441
United Overseas Bank
(alien market) 4,000 38,981
---------
418,615
---------
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
SPAIN--0.4%
Argentaria Corp. 546 $ 22,106
Banco Bilbao-Vizcaya SA
(Reg.) 983 37,365
Banco Popular Espanol
(Reg.) 126 20,881
Banco de Santander SA
(Reg.) 695 32,291
Empresa Nacional de
Electricidad 1,185 74,435
Gas Natural SDG SA 162 29,445
Iberdrola SA 4,042 39,562
Repsol, SA 1,306 47,897
Telefonica
Internacional de
Espana, SA 4,281 76,230
---------
380,212
---------
SWEDEN--0.3%
ASEA AB 273 27,938
ASEA AB Series B 106 10,754
Astra AB Series A 2,285 101,588
Astra AB Series B 316 13,956
L.M. Ericsson Telephone
Series B 3,967 80,433
Sandvik AB Series A 577 12,720
Sandvik AB Series B 929 20,480
Volvo AB Series A 518 11,878
Volvo AB Series B 1,315 30,153
---------
309,900
---------
SWITZERLAND--1.3%
BBC Brown Boveri
(Bearer) 30 36,147
BBC Brown Boveri (Reg.) 45 10,583
CS Holding (Reg.) 805 73,102
Ciba-Geigy Ltd.
(Bearer) 12 13,850
Ciba-Geigy Ltd. (Reg.) 110 127,666
Cie Financiere
Richemont Series A
(Bearer) 20 29,317
Nestle Ltd. (Reg.) 175 194,648
Roche Group
Holding AG 32 251,675
Roche Group Holding AG
(Bearer) 7 94,716
Sandoz Ltd. (Bearer) 12 13,067
Sandoz Ltd. (Reg.) 153 167,097
Schweizerische
Bankgesellschaft
(Bearer) 97 96,406
Schweizerische
Bankgesellschaft
(Reg.) 61 13,265
Schweizerische
Bankverein (Bearer) 90 33,707
Schweizerische
Bankverein (Reg.) 76 14,201
Winterthur 24 15,058
Winterthur (Reg.) 19 11,921
Zurich Versicherung
(Reg.) 207 57,852
---------
1,254,278
---------
</TABLE>
36
<PAGE> 41
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
UNITED KINGDOM--3.9%
Abbey National 5,749 $ 49,156
Allied Domecq PLC 4,581 35,411
Argyll Group 4,993 24,954
Associated British
Foods 5,339 31,987
BAA 4,509 37,060
BAT Industries 13,438 101,549
BOC Group 2,115 29,387
BTR 16,969 81,741
Barclays 6,981 77,450
Bass 3,824 45,102
Boots Co. 4,144 39,519
British Aerospace 1,669 21,871
British Airways 4,216 32,938
British Gas 20,257 71,965
British Petroleum Co. 25,484 229,981
British Sky Broadcast 7,467 53,729
British Steel 8,787 26,257
British Telecom 28,410 155,885
Cable & Wireless 10,268 80,608
Cadbury Schweppes 4,293 33,282
Commercial Union
Assurance Co. 2,898 25,150
General Electric Co. 11,967 64,582
Glaxo Wellcome 15,797 191,547
Granada Group 2,573 31,896
Grand Metropolitan,
Inc. 9,340 61,442
Great University Stores 4,379 47,758
Guinness 8,753 62,983
HSBC Holdings 3,718 55,045
HSBC Holdings
(Hong Kong) 8,086 119,714
Hanson Industries 22,158 65,710
Imperial Chemical
Industries 3,152 42,704
J. Sainsbury PLC 7,879 43,410
Kingfisher 2,910 26,042
Legal & General Group 2,138 23,044
Lloyds Abbey Life 3,041 24,525
Lloyds TSB Group 35,714 171,231
Marks & Spencer PLC 12,927 86,303
National Grid Group 7,363 22,666
National Power
Development 5,153 43,478
National Westminster
Bancorp 7,607 70,138
Pearson, Inc. 2,410 25,468
Powergen 3,165 26,585
Prudential Corp. 8,291 57,100
RTZ Corp. PLC 5,009 78,871
Rank Organisation PLC 3,625 29,085
Reed International 2,461 42,344
Rentokil Group 4,259 24,555
Reuters Holdings PLC 7,731 87,516
Royal Bank of Scotland 3,556 27,755
Scot & Newcastle 2,662 27,550
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Shell Transport &
Trading Co. (Reg.) 15,103 $ 199,274
Siebe 2,000 25,862
SmithKline Beecham PLC
Series A 6,110 64,797
SmithKline Beecham PLC
(New) 5,819 61,755
Standard Chartered PLC 4,214 39,457
Tesco 8,995 37,981
Thorn Emi 1,870 51,866
Unilever 3,534 64,690
Vodafone Group 13,360 53,396
Whitbread 2,092 23,650
Zeneca Group 4,357 90,194
----------
3,678,951
----------
18,675,947
----------
TOTAL COMMON STOCK
(Cost $66,911,872) 73,215,693
----------
PREFERRED STOCK--0.1%
AUSTRALIA--0.0%
News Corp. (Limited
Voting Shares) 3,743 19,259
----------
GERMANY--0.1%
Henkel KGaA 55 21,089
Sap AG (Non-Voting) 175 23,240
Volkswagen AG
(Non-Voting) 42 10,672
----------
55,001
----------
ITALY--0.0%
Fiat SpA 5,589 10,681
----------
GERMANY--0.0%
Lufthansa AG
(Non-Voting) 95 14,875
----------
UNITED STATES--0.0%
Teledyne, Inc. Series E 2 29
----------
TOTAL PREFERRED STOCK
(Cost $97,452) 99,845
----------
</TABLE>
<TABLE>
<CAPTION>
Par
-----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--17.4%(a)
U.S. Treasury Bonds
7.25%, 05/15/16 $ 3,200,000 3,261,056
7.50%, 11/15/16 500,000 522,530
7.13%, 02/15/23 12,700,000 12,766,167
-----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $16,982,287) 16,549,753
-----------
</TABLE>
37
<PAGE> 42
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Par Value
----------- -----------
<S> <C> <C>
CASH EQUIVALENTS--5.1%(b)
AGENCY OBLIGATIONS-
DISCOUNT NOTES--4.6%
Federal Home
Loan Bank
5.21%, 05/28/96 $ 2,700,000 $2,689,490
Federal National
Mortgage Assoc.
5.28%, 07/12/96 1,700,000 1,682,201
---------
4,371,691
---------
<CAPTION>
Maturity Value
----------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT--0.5%
State Street Bank 4.75%
Dated 04/30/96
Due 05/01/96
Collateralized By:
U.S. Treasury Note
$430,000 Par; 8.00%
Due 10/15/96 $427,055 $ 427,000
-----------
TOTAL CASH EQUIVALENTS
(Cost $4,798,776) 4,798,691
-----------
TOTAL INVESTMENTS--99.8%
(Cost $88,790,387) 94,663,982
-----------
OTHER ASSETS AND
LIABILITIES--0.2%
Other Assets 1,177,780
Liabilities (985,059)
-----------
192,721
-----------
NET ASSETS--100.0%
Applicable to 8,797,524
outstanding $0.00001
par value shares
(unlimited shares authorized) $94,856,703
===========
NET ASSET VALUE PER SHARE $10.78
======
</TABLE>
See accompanying Notes to Statements of Net Assets.
38
<PAGE> 43
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCK--57.6%
DOMESTIC--43.1%
AEROSPACE/DEFENSE--0.7%
AAR Corp. 200 $ 4,075
Alliant Techsystems
Inc.* 200 9,400
BFGoodrich Co. 200 7,950
Boeing Co. 1,300 106,763
Coltec Industries Inc.* 1,000 13,000
Curtiss-Wright Corp. 100 5,113
Gencorp Inc. 400 5,350
General Dynamics Corp. 200 12,625
Lockheed Martin Corp. 900 72,563
McDonnell Douglas Corp. 400 38,600
Northrop Grumman Corp. 200 12,375
OEA, Inc. 300 11,775
Orbital Sciences Corp.
Class A* 300 4,125
Raytheon Co. 1,000 50,625
Rockwell International
Corp. 1,000 58,500
Rohr Industries Inc.* 200 3,650
Textron Inc. 300 25,725
Thiokol Corp. 300 12,825
Trimble Navigation Ltd.* 300 7,256
United Technologies
Corp. 500 55,250
-------
517,545
-------
AIR TRANSPORTATION--0.3%
AMR Corp.* 300 26,775
Alaska Air Group Inc.* 200 5,075
America West Airlines,
Inc. Class B* 900 18,900
Atlantic Southeast
Airlines Inc. 600 15,000
Atlas Air Inc.* 400 18,100
Comair Holdings Inc. 700 25,944
Continental Airlines
Inc. Class B* 700 39,725
Delta Airlines Inc. 200 16,075
Mesa Airlines Inc.* 400 4,925
Offshore Logistics,
Inc.* 200 2,913
Southwest Airlines Co. 600 17,850
Trans World Airlines
Inc. (New)* 800 14,300
USAir Group, Inc.* 1,800 31,950
-------
237,532
-------
ALCOHOLIC BEVERAGES--0.2%
Adolph Coors Co. Class B 900 16,931
Anheuser-Busch
Companies, Inc. 1,100 73,838
Brown Forman Corp.
Class B 300 11,850
Canandaigua Wine Co.,
Inc. Class A* 300 9,150
Seagram Ltd 1,400 47,425
-------
159,194
-------
APPAREL--0.3%
Authentic Fitness Corp. 300 7,163
Brown Group Inc. 300 4,800
Burlington
Industries Inc.* 1,100 12,788
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Cone Mills Corp. 300 $ 3,413
Guilford Mills, Inc.* 200 4,850
Justin Industries Inc. 300 3,825
Kellwood Co. 300 4,875
Liz Claiborne 200 7,275
Men's Wearhouse, Inc. 400 14,750
NIKE, Inc. Class B 700 61,250
Nautica Enterprises Inc. 300 13,875
Paragon Trade
Brands, Inc.* 200 4,675
Phillips-Van Heusen
Corp. 300 3,975
Reebok International
Ltd. 200 5,800
Russell Corp. 100 2,600
Springs Industries Inc. 700 32,200
St. John's Knits, Inc. 100 5,938
Stride Rite Corp. 700 6,738
V.F. Corp. 200 11,400
Wolverine World
Wide Inc. 500 15,438
-------
227,628
-------
AUTOMOTIVE PRODUCTS--0.1%
APS Holding Corp. Class
A* 200 3,650
Armor-All Products Corp. 300 4,650
Carlisle Cos. Inc. 500 23,250
Cooper Tire & Rubber 200 4,900
Discount Auto Parts
Inc.* 500 14,688
Goodyear Tire & Rubber 600 31,275
O'Reilly
Automotive, Inc.* 100 3,900
-------
86,313
-------
BANKS--3.0%
ALBANK Financial Corp. 240 6,465
Associated Banc-Corp. 500 19,375
Banc One Corp. 1,988 69,083
Bancorp South, Inc. 500 12,063
Bank of Boston Corp. 500 24,188
Bank of New York
Co., Inc. 800 38,800
BankAmerica Corp. 1,400 106,050
Bankers Trust
New York Corp. 300 20,813
Barnett Banks, Inc. 300 19,013
Bell Bancorp, Inc. 100 3,713
Boatmens
Bancshares Inc. 600 23,175
CCB Financial Corp. 500 25,969
CNB Bancshares Inc. 200 5,725
California
Bancshares Inc. 200 6,025
Centura Banks Inc. 600 21,900
Chase Manhattan Corp.
(New) 1,932 133,067
Chemical Financial Corp. 400 15,650
Citicorp 1,900 149,625
Citizens Bancorp 200 5,950
Citizens Banking Corp. 200 5,925
City National Corp. 600 8,475
Cole Taylor Financial
Group Inc. 200 5,950
</TABLE>
39
<PAGE> 44
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Colonial
BancGroup Inc. 200 $ 6,775
Comerica Inc. 600 26,100
Community First
Bankshares Inc. 200 4,625
Corestates Financial
Corp. 900 35,100
Crestar Financial Corp. 64 3,608
Cullen/Frost
Bankers Inc. 200 9,950
F & M National Corp. 200 3,200
Fifth Third Bancorp 400 22,075
First Bank System Inc. 764 46,031
First Chicago NBD Corp. 1,343 55,399
First Citizens
BancShares Inc. 200 12,400
First Commercial
Bancshares Inc. 200 4,750
First Commercial Corp. 642 19,982
First Commonwealth
Financial Corp. 300 5,775
First Financial Bancorp 200 6,550
First Michigan Bank
Corp. 315 9,371
First Midwest
Bancorp Inc. 200 5,750
First Union Corp. 1,105 67,958
Firstbank Illinois Co. 100 3,113
Fleet Financial
Group Inc. 1,156 49,708
Fort Wayne National
Corp. 200 6,125
Fulton Financial Corp. 440 8,965
Hancock Holding Co. 100 3,625
Imperial Bancorp 216 5,211
J.P. Morgan & Co. Inc. 700 58,888
Jefferson
Bankshares, Inc. 200 4,275
Keycorp (New) 900 34,763
Keystone Financial Inc. 600 19,575
Liberty Bancorp, Inc. 100 3,675
Long Island
Bancorp Inc. 400 11,175
MBNA Corp. 800 22,700
Magna Group Inc. 400 9,050
Mark Twain
Bancshares Inc. 500 18,875
Mellon Bank Corp. 500 26,875
Mercantile Bancorp Inc. 117 5,207
Mid-Am, Inc. 200 3,700
National Bancorp of
Alaska, Inc. 400 24,200
National City Corp. 600 22,125
National Commerce
Bancorp 600 18,375
NationsBank Corp. 1,200 95,700
New York Bancorp Inc. 200 4,900
North Fork
Bancorporation 600 14,250
Norwest Corp. 1,610 58,161
ONBANCorp, Inc. 200 6,650
Old National Bancorp 315 10,671
One Valley Bancorp of
West Virginia Inc. 500 15,594
PNC Bank Corp. 1,400 42,350
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Park National Corp. 100 $ 4,788
People's Bank 800 17,100
Provident Bancorp Inc. 500 25,688
Queens County Bancorp,
Inc. 200 8,775
Regions Financial Corp. 228 10,531
Republic New York Corp. 200 11,875
Riggs National Corp. 400 5,025
River Forest
Bancorp, Inc. 200 5,925
S & T Bancorp, Inc. 200 5,975
Security Capital Corp. 200 11,700
Sumitomo Bank 200 5,025
Summit Bancorp 450 15,975
SunTrust Banks Inc. 400 28,200
Susquehanna Bancshares,
Inc. 200 5,825
T R Financial Corp. 200 5,313
Trust Company of
New Jersey 200 2,838
TrustCo Bank
Corp. NY 200 4,175
Trustmark Corp. 800 18,700
U S Trust Corp. (New) 200 11,025
U.S. Bancorp 500 16,125
UMB Financial Corp. 330 12,499
UST Corp. 200 2,625
United Bankshares, Inc. 200 5,450
United Carolina
Bancshares Corp. 300 7,163
Valley National Bancorp 840 24,360
Wachovia Corp. (New) 600 26,400
Wells Fargo & Co. 400 97,050
Westamerica Bancorp 200 9,450
Whitney Holding Corp. 200 6,063
---------
2,092,522
---------
BUSINESS MACHINES & SOFTWARE--3.2%
3COM Corp. 600 27,638
AST Research Inc.* 600 4,575
Amdahl Corporation* 300 3,825
Apple Computer, Inc. 400 9,700
Applied Magnetics Corp.* 500 10,313
Atria Software, Inc. 200 10,925
Auspex Systems, Inc.* 300 5,775
Autodesk, Inc. 100 4,100
BBN Corp.* 300 8,475
BancTec, Inc.* 400 8,150
Bay Networks, Inc. 700 22,050
Bell & Howell Co. (New)*
300 9,450
Black Box Corp.* 200 4,013
Boole & Babbage Inc. 200 5,225
Borland
International Inc.* 400 6,525
Cabletron Systems Inc.* 300 22,613
Cellular Technical
Services Inc.* 100 2,856
Ceridian Corp.* 214 10,219
Cisco Systems Inc. 2,300 119,456
Compaq Computer Corp.* 1,100 51,288
Computer Associates
International Inc. 900 66,038
</TABLE>
40
<PAGE> 45
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Computer Horizons Corp. 300 $ 15,113
Computer
Products, Inc.* 400 6,450
Computer Sciences Corp.* 200 14,800
Compuware Corp.* 800 23,000
Comverse Technology Inc.
(New)* 300 7,050
Continuum Inc.* 500 28,500
Control Data
Systems, Inc.* 300 7,106
Cray Research Inc.* 154 4,543
Data General Corp.* 1,000 15,375
Davidson &
Associates, Inc. 500 13,688
Dialogic Corp.* 200 9,225
Digi International Inc.* 200 5,700
Digital Equipment Corp.* 600 35,850
Dynatech Corp. 200 5,200
EMC Corp.* 800 16,400
Exabyte Corp.* 200 3,475
Excalibur Technologies
Corp. (New)* 200 5,225
FTP Software Inc.* 400 3,900
FileNet Corp.* 300 16,725
General Magic Inc.* 300 1,688
Geoworks* 300 11,175
Global Village
Communications* 200 3,400
HCIA Inc.* 400 21,300
HNC Software Inc. 200 7,450
Hewlett Packard Co. 1,900 201,163
Honeywell Inc. 500 26,313
Hyperion Software Corp. 200 2,538
INSO Corp. 200 10,825
INTERSOLV Inc.* 200 2,200
In Focus Systems, Inc.* 200 10,150
Intergraph Corp.* 1,000 12,688
International Business
Machines 2,400 258,000
Iomega Corp. 900 49,163
Legato Systems Inc.* 200 8,350
MICROS Systems, Inc. 100 2,800
Maxis Inc.* 200 4,850
McAfee Associates, Inc. 400 24,550
Medic Computer Systems,
Inc.* 200 18,725
Mercury Interactive
Corp.* 200 2,725
Microsoft Corp.* 2,300 260,331
National Computer
Systems, Inc. 200 4,375
National Instruments
Corp.* 300 7,238
Network Equipment
Technologies* 300 7,650
Network General Corp.* 600 26,550
Novell Inc.* 1,100 16,019
Oak Technology 600 10,763
Optical Data
Systems, Inc. 200 5,438
Oracle Systems Corp. 2,400 80,850
Pitney Bowes Inc. 500 24,375
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Progress Software Corp. 200 $ 3,163
Quarterdeck Corp.* 600 9,225
Rational Software Corp.
(New)* 300 15,975
Safeguard Scientifics Inc.
500 33,500
Seagate
Technology, Inc.* 442 25,636
Security Dynamics
Technology 200 16,800
Sequent Computer
Systems, Inc.* 400 5,875
Shiva Corp. 400 24,000
Sierra On-Line Inc. 500 19,688
Silicon Graphics Inc.* 500 14,813
Softkey
International Inc.* 600 16,763
Stac Inc.* 500 5,625
Stratus Computer Inc.* 600 16,875
Structural Dynamics
Research Corp.* 700 22,313
Sun Microsystems Inc. 700 37,931
Systems & Computer
Technology Corp.* 200 2,925
Tandem Computers Inc.* 300 3,825
Tech Data Corp.* 500 9,688
Telxon Corp. 200 4,625
Transaction Systems
Architects Inc.
Class A* 200 10,750
Trident
Microsystems Inc.* 200 3,550
Unisys Corp.* 400 2,400
Veritas Software Co. 200 9,150
Videoserver Inc.* 200 6,650
Wang Laboratories Inc.
(New)* 700 16,538
Wind River Systems Inc. 200 7,850
Xerox Corp. 400 58,600
---------
2,178,909
---------
BUSINESS SERVICES--2.4%
ABM Industries, Inc. 200 6,825
ABR Information Services
Inc. 200 12,600
ADVO Inc. 300 3,038
Access Health Inc. 150 8,325
Accustaff Inc. 900 26,831
Acxiom Corp. 600 16,388
Affiliated Computer
Services Inc. Class A* 100 4,763
Alliance Entertainment
Corp.* 400 2,450
Alternative Resources
Corp. 200 7,175
American Business
Information, Inc. 300 5,925
American Business
Products, Inc. 200 4,350
American
Homepatient Inc. 100 4,200
American Management
Systems, Inc. 600 15,900
American Medical
Response, Inc.* 300 11,100
</TABLE>
41
<PAGE> 46
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
American Oncology
Resources Inc.* 300 $14,438
Amresco Inc. 300 5,175
Apollo Group, Inc.
Class A 900 39,713
Applix Inc. 200 7,725
Apria Healthcare
Group Inc.* 900 30,656
Aspen Technology Inc.* 200 11,050
Automatic Data
Processing, Inc. 1,100 42,763
BISYS Group, Inc.* 600 22,800
Borg-Warner Security
Corp.* 500 5,813
Bowne & Co. Inc. 200 3,600
Browning Ferris
Industries Inc. 800 25,800
Business Records Corp.* 100 3,613
CDI Corp.* 500 14,750
CMG Information Services
Inc. 200 6,025
Cambridge Technology
Partners* 200 13,475
Camco International Inc. 600 21,375
Catalina Marketing
Corp.* 200 15,575
Cerner Corp. 500 10,219
Checkfree Corp.* 600 11,475
Coastal Physician
Group Inc.* 300 2,513
Copart Inc.* 200 5,425
Corrections Corp. of
America 700 44,625
Coventry Corp.* 700 13,650
Dames & Moore Inc. 300 3,263
Data Broadcasting* 600 6,188
DeVRY Inc. 500 18,625
Deluxe Corp. 200 7,000
Dionex Corp. 200 7,375
Dun & Bradstreet Corp. 800 48,700
Ecolab Inc. 300 9,750
Electro Rental 200 4,900
Epic Design
Technology Inc. 200 6,775
Express Scripts Inc.
Class A* 500 24,438
Fair Isaac & Co. Inc. 200 8,550
First Data Corp. 1,000 76,000
Fleming
Companies, Inc. 2,000 27,500
Franklin Quest Co.* 300 8,100
G&K Services, Inc.
Class A 300 7,950
GRC International, Inc.* 200 7,750
H & R Block Inc. 300 10,538
Health Management
Systems, Inc. 300 7,838
Healthplan Services Corp.*
200 4,800
Henry Jack & Associates
Inc. 200 6,238
Heritage Media Corp.
Class A (New)* 500 19,188
Hon Industries Inc. 500 12,813
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Hunt Manufacturing Co. 200 $ 3,350
ITT Educational Services
Inc. 300 9,300
Ideon Group Inc. 300 3,938
Information
Resources, Inc.* 300 4,331
Inphynet Medical
Management Inc.* 200 3,725
Integrated Health
Services Inc. 300 8,250
Integrated Systems Inc.
Class A 400 11,400
Interim Services Inc.* 200 8,638
Interpublic Group of
Companies, Inc. 300 14,025
Jacobs Engineering
Group Inc.* 600 16,650
John H. Harland Co. 800 21,000
Keane, Inc.* 200 7,875
Kinder Care Learning
Centers Inc.* 200 2,875
Laidlaw Inc. Class B
(Non Voting) 800 8,400
Magellan Health Services
Inc.* 700 15,050
Mariner Health
Group Inc.* 200 3,388
Maxicare Health Plans
Inc. (New)* 500 10,188
Medpartners/Mullikin
Inc.* 1,000 28,875
Molten Metal
Technology, Inc.* 600 19,200
Moore Corp. Ltd. 200 3,650
Morrison Health
Care Inc. 200 3,175
National Auto
Credit Inc. 330 4,703
National Data Corp. 500 17,625
National Education
Corp.* 600 8,925
National Service
Industries, Inc. 100 3,700
Netcom Online
Communications* 200 7,138
New England Business
Service, Inc. 200 3,750
Norrell Corp. 200 7,750
Occusystems Inc.* 300 8,738
Ogden Corp. 100 2,025
Orthodontic Centers of
America Inc. 400 15,700
Owen Healthcare Inc. 300 6,113
PAXAR Corp. 400 6,950
PHH Corp. 300 17,063
PSINet Inc. 700 9,844
Payment Services Inc. 300 8,625
Physician Corp. of
America* 800 11,900
Physician Reliance
Network* 600 26,175
Physicians Computer
Network* 800 8,900
</TABLE>
42
<PAGE> 47
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
R.R. Donnelley
& Sons Co. 500 $ 18,000
Republic Industries
Inc.* 1,100 35,956
Robert Half
International Inc.* 700 40,250
Rollins, Inc. 500 11,250
Rykoff-Sexton, Inc. 200 3,025
SEI Corp. 300 7,088
SPS Transaction
Services, Inc. 400 10,700
SUPERVALU Inc. 300 9,600
Safety-Kleen Corp. 100 1,500
Sanifill Inc. 300 13,013
Scientific Games
Holdings Corp. 200 6,400
Service Corp.
International 400 21,250
Shared Medical
Systems Corp. 100 6,888
Standard Register Co. 400 10,100
Steris Corp. 300 9,713
Sun Healthcare
Group Inc.* 900 13,613
Synetic Inc.* 500 17,438
True North
Communications 300 7,913
U S Order Inc.* 300 6,038
U.S.A. Waste
Services Inc.* 1,100 28,600
Unifirst Corp. 500 12,000
United Waste
Systems, Inc.* 500 27,688
Universal Health
Services Inc. Class B 200 11,100
Valassis Communications
Inc.* 600 9,450
WMX Technologies Inc. 2,100 72,975
Western Waste
Industries* 200 7,775
Zebra Technologies Corp.
Class A 400 9,950
---------
1,648,582
---------
CHEMICAL--1.4%
A. Schulman Inc. 700 15,313
Air Products &
Chemicals Inc. 400 22,850
Calgon Carbon Corp. 500 6,250
Cambrex Corp. 100 4,300
Chemed Corp. 200 7,525
Crompton & Knowles Corp. 900 13,838
Cytec Industries Inc.* 300 24,863
Dexter Corp. 600 16,125
Dow Chemical Co. 1,000 88,875
E.I. Du Pont de
Nemours & Co. 2,100 168,788
Eastman Chemical Co. 300 20,175
Ferro Corp. 700 19,425
First Mississippi Corp. 300 6,975
Geon Co. 600 15,900
Great Lakes Chemical
Corp. 200 13,650
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
H.B. Fuller Co. 200 $ 6,550
Hercules Inc. 600 36,300
Lawter
International Inc. 600 6,525
Lilly Industrial Inc.
Class A 300 4,350
Minnesota Mining &
Manufacturing Co. 1,600 105,200
Monsanto Co. 500 75,750
Morton International
Inc. 500 17,688
NCH Corp. 400 23,200
NL Industries Inc. (New) 1,000 14,375
Nalco Chemical Co. 300 9,150
OM Group Inc. 200 7,588
PPG Industries Inc. 700 35,438
Petrolite Corp. 200 6,325
Praxair Inc. 600 23,175
Rohm & Haas Co. 200 13,275
Scotts Co. Class A* 200 3,450
Sequa Corp. Class A* 100 3,513
Sigma-Aldrich Corp. 200 10,825
Sterling Chemicals Inc.* 700 7,963
Tredegar Industries Inc. 300 8,325
Union Carbide Corp. 500 22,750
Uniroyal Chemical Corp.* 300 3,544
W.R. Grace & Co. 400 31,000
WD-40 Co. 100 4,675
Wellman Inc. 600 14,400
-------
940,186
-------
CONSTRUCTION--0.3%
Apogee Enterprises, Inc. 100 2,638
Armstrong World
Industries, Inc. 100 5,700
Blount International
Inc. Class A 300 9,300
Calmat Co. 300 5,213
Centex Construction
Products Inc. 300 4,313
Centex Corp. 100 2,700
Crane Co. 100 4,150
Del Webb Corp. 200 3,575
Florida Rock
Industries, Inc. 100 2,525
Fluor Corp. 300 19,838
Granite
Construction Inc. 300 5,944
Insituform Technologies
Inc. Class A* 500 5,875
Kaufman & Broad Home
Corp. 500 7,063
Lone Star Industries,
Inc. (New) 200 7,175
Medusa Corp. 200 5,850
Oakwood Homes Corp. 600 26,775
Owens Corning* 100 4,025
Pulte Corp. 500 13,250
Sherwin Williams Co. 300 14,025
Southdown Inc. 200 4,700
Stanley Works 200 12,550
Stone & Webster, Inc. 200 6,800
TJ International Inc. 200 3,450
Toll Brothers, Inc.* 700 11,375
</TABLE>
43
<PAGE> 48
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Triangle Pacific Corp.* 300 $ 4,988
U.S. Home Corp. (New)* 200 4,975
-------
198,772
-------
CONSUMER-DURABLE--0.3%
Bassett Furniture
Industries Inc. 200 5,100
Black & Decker Corp. 300 12,075
Champion
Enterprises Inc. 200 7,600
Chicago Miniature Lamp
Inc.* 200 8,125
Ethan Allen
Interiors Inc.* 200 5,200
Furniture Brands
International Inc.* 1,600 15,800
Harman International
Industries Inc. (New) 500 23,625
Kimball International
Inc. Class B 300 8,625
La-Z-Boy Chair Co. 300 8,888
Masco Corp. 500 13,625
Maytag Corp. 300 6,450
National Presto
Industries, Inc. 100 3,925
Newell Co. 600 17,100
Outboard Marine Corp. 400 7,900
Regal Beloit Corp. 300 5,813
Snap-on Tools Corp. 100 4,800
Sturm, Ruger & Co., Inc. 200 8,075
Toro Co. 200 6,375
Whirlpool Corp. 300 18,038
-------
187,139
-------
CONSUMER-NONDURABLE--0.7%
3DO Co.* 300 2,700
A.T. Cross Co. Class A 200 3,000
Acclaim
Entertainment Inc.* 900 9,281
American Greetings Corp.
Class A 200 5,538
Applebee's
International, Inc. 700 18,375
Buffets Inc.* 400 5,575
CKE Restaurants Inc. 400 7,900
CML Group, Inc. 600 2,700
Corning Inc. 1,000 34,750
Darden Restaurants Inc. 400 5,500
Department 56 Inc.* 300 7,463
Foxmeyer Health Corp. 200 3,900
Hasbro Inc. 300 11,025
IHOP Corp. (New)* 100 2,844
International Dairy
Queen Inc. Class A* 300 6,394
Jostens, Inc. 100 2,250
Landry's Seafood
Restaurants, Inc. 200 4,775
Luby's Cafeterias, Inc. 700 16,800
Mafco Consolidated Group
Inc.* 300 5,400
Mattel Inc. 1,125 29,250
McDonald's Corp. 2,800 134,050
Mikasa Inc. Class B* 300 3,563
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Mohawk Industries Inc.* 700 $ 10,150
Morrison Fresh Cooking
Inc. 150 1,088
Papa John's
International, Inc. 300 14,775
Premark
International, Inc. 200 10,275
Rexall Sundown, Inc. 600 17,250
Rubbermaid Inc. 600 16,950
Ruby Tuesday Inc. 300 6,075
Russ Berrie & Co. Inc. 300 4,800
Ryan's Family Steak
Houses Inc.* 1,200 11,700
Sbarro, Inc. 300 7,875
Shoney's Inc.* 2,200 24,475
Sonic Corp. 300 5,775
Toy Biz Inc. Class A* 200 4,075
Wendy's
International, Inc. 300 5,738
Zenith Electronics
Corp.* 1,200 11,250
-------
475,284
-------
CONTAINERS--0.2%
ACX Technologies Inc. 600 11,625
Ball Corp. 1,600 49,800
Bemis Co, Inc. 100 3,238
Crown Cork & Seal Inc. 500 23,563
Gaylord Container Corp.
Class A* 700 7,175
Greif Brothers Corp.
Class A 600 15,750
Stone Container Corp. 200 3,400
-------
114,551
-------
ELECTRONICS--1.5%
AMETEK, Inc. 700 13,475
AMP Inc. 1,000 44,750
Advanced Micro Devices
Inc. 520 9,750
Allen Group Inc. 500 12,375
Alliance Semiconductor
Corp. 700 7,438
Altron Inc. 100 3,200
Applied Materials, Inc. 600 23,925
Augat Inc. 200 3,850
Aura Systems, Inc.* 1,200 6,150
Belden Inc. 400 11,900
Burr Brown 200 3,800
Cable Design
Technologies Corp. 300 9,825
Checkpoint Systems Inc. 400 11,950
Cyrix Corp.* 300 9,206
DSP
Communications Inc. 400 15,950
Dallas Semiconductor
Corp. 400 7,800
EG&G, Inc. 100 2,200
Electro Scientific
Industries Inc.* 100 2,400
Electroglas Inc. 400 7,850
FORE Systems, Inc. 200 15,763
Fluke Corp. 100 3,863
General Instrument
Corp.* 500 16,375
</TABLE>
44
<PAGE> 49
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
General Signal Corp. 100 $ 3,800
Gerber Scientific Inc. 300 5,063
Hadco Corp.* 100 3,056
Harris Corp. 100 6,175
Identix Inc.* 500 5,938
Input/Output Inc. 1,200 41,700
Integrated Process
Equipment Corp.* 300 7,894
Integrated Silicon
Solution* 300 4,988
Integrated Systems
Consulting Group
(Rights exp. 5/22/96)* 84 1,502
Intel Corp. 3,200 217,000
Itron, Inc.* 200 11,700
Kent Electronics Corp. 400 16,850
Kulicke & Soffa
Industries Inc. 300 5,625
LSI Logic Corp. 500 18,000
LTX Corp.* 400 3,875
Lattice Semiconductor Corp.*
600 19,613
Littlefuse, Inc.* 400 15,100
Logicon, Inc. 200 5,950
Marshall Industries* 300 9,563
Methode Electronics Inc.
Class A 500 8,250
Micron Technology Inc. 900 32,738
Motorola Inc. 2,300 140,875
National Semiconductor
Corp.* 300 4,725
Park Electrochemical
Corp. 200 5,000
Perkin-Elmer Corp. 100 5,488
Pioneer Standard
Electronics Inc. 300 4,875
Pittway Corp. Class A 300 14,325
Rexel Inc.* 300 4,013
S3 Inc. 800 11,400
Sanmina Corp. 200 7,050
Scientific-Atlanta, Inc. 200 3,700
Silicon Valley
Group Inc.* 400 10,650
Siliconix Inc. (New)* 200 5,800
Tektronix, Inc. 100 3,963
Teledyne Inc. 200 7,425
Texas Instruments Inc. 900 50,850
Thomas & Betts Corp. 200 7,875
Unitrode Corp.* 200 5,375
VLSI Technology, Inc.* 700 12,206
VeriFone, Inc.* 600 25,200
Vicor Corp. 600 9,113
Watkins-Johnson Co. 100 3,375
Wyle Electronics 200 8,375
Zilog Inc.* 300 11,288
---------
1,051,121
---------
ENERGY-DEVELOPMENT--0.9%
Amcol International
Corp. 200 2,300
Ashland Coal, Inc. 200 4,650
BJ Services Co.* 700 26,863
Baker Hughes Inc. 500 15,875
Benton Oil & Gas Co.* 300 5,269
Burlington
Resources Inc. 400 14,900
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Cabot Oil & Gas Corp.
Class A 300 $ 4,950
Chesapeake Energy Corp. 300 21,225
Devon Energy Corp. 300 7,650
Dresser Industries Inc. 700 22,313
Energy Ventures, Inc.* 300 9,000
Falcon Drilling Inc.* 500 13,531
Global Industrial
Technologies Inc.* 300 5,513
Global Natural Resources
Inc.* 300 4,350
Halliburton Co. 500 28,688
Helmerich & Payne Inc. 700 25,813
Landmark Graphics Corp.* 500 9,750
Louis Dreyfus Natural
Gas Corp.* 300 3,825
Louisiana Land &
Exploration Co. 100 5,413
MAXXAM Inc.* 100 4,550
McDermott International
Inc. 100 2,100
Nabors Industries Inc.* 1,400 21,525
Newfield
Exploration Co.* 500 17,125
Noble Drilling Corp.* 1,500 22,500
Nuevo Energy Co.* 200 5,650
Occidental Petroleum
Corp. 1,200 30,900
Parker & Parsley
Petroleum Co. 800 19,700
Parker Drilling Co.* 700 5,338
Phoenix Resource Cos.,
Inc. (New) 200 5,100
Pride Petroleum Services
Inc.* 500 8,250
Production Operators
Corp. 100 3,363
Reading & Bates Corp.
(New)* 1,100 26,950
Rowan Cos. Inc.* 1,900 28,025
Schlumberger Ltd. 900 79,425
Seitel, Inc. (New)* 100 2,763
Solv-Ex Corp.* 300 4,238
Tom Brown Inc. (New)* 300 4,688
United Meridian Corp.* 400 12,400
Varco International
Inc.* 600 9,975
Vintage Petroleum Inc. 300 7,313
Weatherford Enterra
Inc.* 1,000 35,250
Zeigler Coal Holding Co. 300 4,425
-------
593,431
-------
FOOD-AGRICULTURE--2.1%
AG Chemical Equipment
Inc. 100 1,638
Archer-Daniels-
Midland Co. 2,200 41,525
Bob Evans Farms, Inc. 800 12,650
CPC International Inc. 500 34,563
Campbell Soup Co. 1,100 68,750
Chiquita Brands
International Inc. 1,000 14,625
Coca-Cola Bottling Co. 100 3,363
Coca-Cola Co. 5,000 407,500
ConAgra, Inc. 1,000 38,625
Delta & Pine Land Co. 799 35,655
</TABLE>
45
<PAGE> 50
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Dimon Inc. 800 $ 13,600
Dreyers Grand
Ice Cream Inc. 200 6,850
Earthgrains Co.* 44 1,425
Farmer Brothers Co. 100 13,500
Flowers Industries, Inc. 800 10,700
General Mills Inc. 600 33,300
H.J. Heinz Co. 1,400 47,425
Hershey Foods Corp. 300 22,763
Hudson Foods Inc. Class
A 400 5,300
International Multifoods
Corp. 200 3,775
Interstate Bakeries
Corp. (New) 800 19,000
J.M. Smucker Co. Class A 700 14,788
J.M. Smucker Co. Class B
(Non Voting) 300 6,000
JP Foodservice, Inc.* 300 6,600
Kellogg Co. 900 64,238
Lance Inc. 400 6,300
Mississippi Chemical
Corp. (New) 600 12,150
Mycogen Corp.* 400 7,000
Pepsico Inc. 3,000 190,500
Pioneer HI Bred
International Inc. 300 16,725
Quaker Oats Co. 400 13,750
Ralcorp Holdings, Inc.* 500 11,000
Ralston Purina Co. 400 23,350
Richfood Holdings Inc. 700 22,881
Sara Lee Corp. 1,900 58,900
Savannah Foods &
Industries Inc. 300 3,263
Seaboard Corp. 100 21,550
Smithfield Foods Inc.* 500 14,875
Sysco Corp. 700 22,488
Unilever 600 81,900
WLR Foods, Inc. 200 2,425
Whitman Corp. 300 7,575
Wm Wrigley Junior Co. 400 21,050
---------
1,465,840
---------
GOLD--0.2%
Barrick Gold Corp. 1,300 39,813
Battle Mountain Gold Co. 1,200 10,650
FMC Gold Co. 900 5,738
FirstMiss Gold Inc.* 500 15,438
Homestake Mining Co. 600 12,075
Newmont Mining Corp. 300 17,363
Placer Dome Inc. 1,000 27,750
Santa Fe Pacific Gold
Corp. 300 4,463
---------
133,290
---------
HEALTHCARE--4.2%
ALZA Corp.* 200 5,700
Abbott Laboratories 3,100 125,938
Acuson* 300 5,700
Advanced Technology
Laboratories, Inc.* 200 6,500
Advanced Tissue Sciences
Inc.* 400 6,800
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Agouron Pharmaceuticals
Inc.* 200 $ 8,150
Allergan Inc. 300 10,613
Alliance Pharmaceutical
Corp.* 400 7,300
Alpharma, Inc. 300 7,350
American Home Products
Corp. 1,200 126,600
Amgen Inc. 1,200 68,925
Amsco International,
Inc.* 400 5,800
Ballard Medical Products 600 11,925
Bausch & Lomb Inc. 200 7,975
Baxter International
Inc. 1,100 48,675
Becton Dickinson & Co. 200 16,125
Benson Eyecare Corp.* 600 5,475
Beverly Enterprises,
Inc.* 200 2,425
Bio Rad Laboratories
Inc. Class A* 100 4,650
Biomet Inc.* 300 4,406
Block Drug Inc. Class A 309 11,510
Boston Scientific Corp.* 637 27,471
Bristol Myers
Squibb Co. 1,900 156,275
C.R. Bard Inc. 200 7,300
CNS, Inc. 300 5,888
Carter Wallace Inc. 900 14,175
Columbia/HCA Healthcare
Corp. 1,800 95,625
Community Health Systems
Inc.* 300 13,013
Community Psychiatric
Centers 700 6,475
Conmed Corp. 200 6,025
Copley Pharmaceutical
Inc.* 200 3,050
Cygnus Therapeutic
Systems, Inc.* 300 6,431
Daig Corp. 200 4,688
Datascope Corp.* 200 3,550
Diagnostic Products
Corp. 200 8,375
Eli Lilly & Co. 2,300 135,700
Enzo Biochem Inc. 300 5,513
Fresenius U.S.A. Inc.* 300 6,000
Genesis Health Ventures,
Inc. 750 22,219
Gilead Sciences Inc.* 600 18,450
GranCare, Inc.* 400 7,200
Gulf South Medical
Supply Inc. 200 8,175
Haemonetics Corp.* 400 7,700
HealthSouth
Rehabilitation Corp. 938 34,823
Herbalife International
Inc. 300 4,125
Human Genome Sciences
Inc.* 500 19,938
Humana Inc.* 700 17,238
I-Stat Corp.* 200 5,800
ICN Pharmaceuticals,
Inc. 404 9,090
Immulogic Pharmaceutical
Corp.* 400 4,375
Immunex Corp. (New)* 800 12,550
</TABLE>
46
<PAGE> 51
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Interneuron
Pharmaceuticals* 700 $ 27,388
Invacare Corp. 700 18,025
Isis Pharmaceuticals* 300 3,788
Isolyser Inc. 600 10,500
Johnson & Johnson 2,600 240,500
Kinetic Concepts Inc. 600 8,925
Life Technologies, Inc.
(New) 200 5,700
Ligand Pharmaceuticals
Inc. Class B 500 7,406
Lincare Holdings Inc.* 400 15,500
Liposome Inc.* 700 17,194
Living Centers of
America* 300 11,100
Mallinckrodt Group Inc. 200 7,875
Manor Care, Inc. 200 8,025
Medimmune Inc.* 400 6,700
Medisense Inc.* 500 22,438
Medtronic Inc. 1,000 53,125
Mentor Corp. 600 14,025
Merck & Co. Inc. 4,900 296,450
Multicare Cos. Inc. 500 14,188
Natures Sunshine
Products Inc. 300 7,425
Nellcor Puritan Bennett
Inc.* 700 34,300
Neoprobe Corp.* 300 5,194
Neurogen Corp.* 200 5,638
Nexstar Pharmaceuticals
Inc.* 400 9,800
North American Vaccine
Inc.* 500 10,313
Novacare Inc.* 800 5,800
Omnicare Inc. 400 24,000
Owens & Minor Inc. (New)
400 5,400
PDT Inc. 200 9,525
PHP Healthcare Corp. 200 6,100
PLC Systems Inc.* 300 8,925
Patterson Dental Co.* 500 15,000
Pfizer Inc. 2,400 165,300
Pharmacia & Upjohn Inc. 1,900 72,675
Physician Sales &
Service Inc. 300 8,213
Physicians Health
Services, Inc. Class
A* 100 3,250
Protein Design Labs,
Inc.* 300 7,913
Pyxis Corp.* 700 17,763
Quintiles Transnational
Corp. 400 29,250
Regeneron
Pharmaceuticals Inc.* 400 5,675
Renal Treatment Centers
Inc. 400 11,600
Respironics Inc. 200 4,325
RoTech Medical Corp. 200 8,300
Roberts Pharmaceutical
Corp.* 200 3,750
Salick Health Care,
Inc.* 200 7,625
Schering Plough Corp. 1,500 86,063
Sepracor Inc.* 300 4,200
Sequus Pharmaceuticals
Inc.* 500 8,750
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sofamor/Danek Group
Inc.* 600 $ 19,650
Sola International Inc.* 400 13,100
Somatogen Inc.* 500 8,281
SpaceLabs Medical Inc.* 100 2,263
St. Jude Medical, Inc. 300 10,931
Sunrise Medical Inc.* 200 3,650
Target Therapeutics Inc. 200 10,825
Tecnol Medical Products
Inc.* 300 5,888
Tenet Healthcare Corp.* 800 16,400
Thermedics Inc.* 500 15,125
U.S. Healthcare, Inc. 600 31,313
United Healthcare Corp. 800 46,800
United States Surgical
Corp. 100 3,700
Ventritex Inc. 300 4,669
Vertex Pharmaceuticals
Inc.* 500 14,750
VISX Inc.* 300 10,200
Vital Signs Inc. 200 4,225
Vivra Inc. 900 28,463
Vivus* 200 6,025
Warner Lambert Co. 600 67,050
West Co Inc. 200 4,550
---------
2,884,561
---------
HOUSEHOLD PRODUCTS--0.7%
Alberto Culver Co. Class
B (Convertible) 100 3,788
Avon Products, Inc. 300 26,663
Bush Boake Allen Inc.* 300 8,100
Church & Dwight Inc. 300 6,600
Clorox Co. 200 16,525
Colgate-Palmolive Co. 600 45,975
Dial Corp. 400 11,250
Gillette Co. 1,800 97,200
International Flavors &
Fragrances Inc. 400 19,650
Libbey Inc. 200 4,650
Playtex Products Inc.* 600 5,250
Procter & Gamble Co. 2,600 219,700
---------
465,351
---------
IMAGING & PHOTO--0.3%
Avid Technology, Inc.* 300 5,831
BMC Industries, Inc. 600 16,050
C-Cube Microsystems,
Inc. 600 29,550
Chyron Corp.* 1,800 7,200
Eastman Kodak Co. 1,400 107,100
OIS Optical Imaging
Systems Inc.* 1,700 6,800
Photronic, Inc. 200 5,275
Polaroid Corp. 100 4,500
Robotic Vision Systems
Inc.* 300 5,156
Ultratech Stepper Inc. 300 7,800
-------
195,262
-------
</TABLE>
47
<PAGE> 52
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
INSURANCE--1.7%
Acordia, Inc. 200 $ 6,350
Aetna Life &
Casualty Co. 400 28,500
Alexander & Alexander
Services 2,400 45,300
Alfa Corp. 800 10,400
Allied Group Inc. 100 3,588
Allstate Corp. 1,800 69,975
American Annuity Group,
Inc. 500 6,250
American Bankers
Insurance Group, Inc. 300 11,813
American General Corp. 800 28,100
American Heritage Life
Investment Corp. 200 4,650
American International
Group, Inc. 1,800 164,475
American Travellers
Corp. 300 5,906
Aon Corp. 500 26,813
Argonaut Group, Inc. 500 15,625
Arthur J. Gallagher
& Co. 500 16,250
CMAC Investment Corp. 200 11,200
Capital Re Corp. 200 7,500
Capitol American
Financial Corp. 200 4,825
Capsure Holdings Corp.* 300 5,288
Chubb Corp. 300 28,388
Cigna Corp. 300 34,013
Citizens Corp. 800 15,600
Commerce Group Inc. 800 16,000
Compdent Corp.* 200 8,825
Crawford & Co. Class A 200 3,250
Crawford & Co. Class B 500 8,125
Delphi Financial Group,
Inc. Class A* 200 5,575
E.W. Blanch Holdings
Inc. 200 4,125
Enhance Financial
Services Group Inc. 500 13,563
Executive Risk Inc. 200 6,200
Financial Security
Assured Holdings Ltd. 400 10,800
Foremost Corp. of
America 200 10,700
Fremont General Corp. 750 18,750
Frontier Insurance
Group, Inc. 200 6,450
General Re Corp. 300 42,863
HCC Insurance Holdings,
Inc. 200 11,700
Harleysville Group Inc. 200 5,500
Highlands Insurance
Group Inc.* 30 570
Home Beneficial Corp.
Class B 500 12,938
Horace Mann Educators
Corp. (New) 600 19,725
ITT Hartford Group Inc. 400 19,550
Integon Corp. 200 3,850
Jefferson-Pilot Corp. 300 15,825
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
John Alden Financial
Corp. 600 $ 11,700
Kansas City Life
Insurance Co. 100 5,513
Liberty Corp. 300 9,525
Life Partners Group Inc. 600 12,525
Life Re Corp. 200 5,975
Lincoln National Corp.
Inc. 400 19,300
MAIC Holdings Inc. 106 3,445
Markel Corp.* 100 8,225
Marsh & McLennan
Companies 300 28,200
NAC Re Corp. 300 9,825
National Re Corp. 500 17,750
Orion Capital Corp. 200 8,875
Penncorp Financial Group
Inc. 600 18,375
Presidential Life Corp. 400 3,925
Providian Corp. 300 13,838
Reinsurance Group of
America Inc. 500 20,750
Safeco Corp. 400 13,175
Selective Insurance
Group, Inc. 200 6,300
Sierra Health Services
Inc.* 500 16,500
St. Paul Companies, Inc. 300 15,938
State Auto Financial
Corp. 200 4,850
Torchmark Corp. 200 8,600
Transamerica Corp. 300 22,800
Trenwick Group Inc. 100 4,813
UNUM Corp. 300 17,850
USF&G Corp. 300 4,763
USLIFE Corp. 100 2,813
United Companies
Financial Corp. 700 22,488
United Dental Care Inc.* 100 3,950
United Insurance
Companies, Inc. 800 17,000
United Wisconsin
Services, Inc. 200 4,425
Vesta Insurance Group
Inc. 300 9,638
W.R. Berkley Corp. 300 12,900
Washington National
Corp. 200 5,525
Zenith National
Insurance Corp. 200 5,025
---------
1,192,792
---------
MEDIA--1.1%
AMC Entertainment Inc.* 200 5,175
BET Holdings, Inc.
Class A* 200 5,850
Cablevision Systems
Corp. Class A* 200 9,975
Carmike Cinemas Inc.* 100 2,663
Central Newspapers Inc.
Class A 600 21,825
Century Communications
Corp. Class A* 1,300 12,594
Citicasters Inc. 300 9,000
Comcast Corp. Class A 700 12,206
</TABLE>
48
<PAGE> 53
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Dow Jones & Co. Inc. 400 $ 14,950
Emmis Broadcasting Corp.
Class A* 200 8,625
Evergreen Media* 300 11,888
GC Companies Inc.* 100 3,613
Gannett Inc. 700 47,863
Harte Hanks
Communications (New) 450 10,631
Heartland Wireless
Communications, Inc.* 200 5,600
Houghton Mifflin Co. 200 9,275
Interdigital Commerce
Corp.* 500 4,156
International Cabletel
Inc. 700 20,606
International Family
Entertainment Inc.
Class B 875 13,344
Jacor Communications
Inc.* 200 4,300
John Wiley & Son, Inc.
Class A 500 17,250
King World Productions,
Inc.* 100 4,350
Knight-Ridder, Inc. 200 14,475
McClatchy Newspapers
Inc. Class A 700 16,975
McGraw-Hill, Inc. 400 17,650
Media General, Inc.
Class A 400 15,400
Meredith Corp. 100 4,538
Metromedia International
Group., Inc. 700 9,450
Movie Gallery Inc.* 200 6,200
New World Communications
Class A* 400 7,475
New York Times Co.
Class A 400 13,000
Oak Industries Inc.* 200 5,400
Paxson Communications
Corp. 300 4,463
Pulitzer Publishing Co. 500 28,500
Regal Cinemas, Inc. 300 12,281
Renaissance
Communications Corp. 700 19,338
SBC Communications Inc. 2,500 125,000
TCA Cable TV Inc. 600 17,625
Tele Communications
Inc. (New)--TCI
Group Series A 2,700 51,806
Time Warner Inc. 1,600 65,400
Times Mirror Co. (New)
Series A 400 17,050
Tribune Co. (New) 200 13,950
United International
Holdings Inc. Class A* 200 2,900
Viacom Inc. Class B* 1,400 57,400
Westcott Communications
Inc.* 200 4,263
Westwood One Inc.* 400 7,075
-------
793,353
-------
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
MISCELLANEOUS FINANCE--1.4%
1st Source Corp. 210 $ 4,778
AMCORE Financial, Inc. 200 4,050
Aames Financial Corp. 200 8,825
Alex Brown Inc. 500 27,063
American Express Co. 1,900 92,150
Americredit Corp.* 400 5,750
Astoria Financial Corp. 200 10,675
Beneficial Corp. 200 11,050
Bok Financial Corp.
(New) 300 6,225
Cal-Federal Bancorp
Inc.* 1,600 28,600
Charter One Financial
Inc. 900 31,556
Coast Savings Financial
Inc.* 300 9,338
Collective Bancorp Inc. 300 7,256
Commercial Federal Corp. 200 7,675
Dean Witter Discover &
Co. 600 32,700
Downey Financial Corp. 210 4,541
Eaton Vance Corp. (Non
Voting) 100 3,088
Federal Home Loan
Mortgage Corp. 700 58,363
Federal National
Mortgage Assoc. 4,200 128,625
First American Financial
Corp. 200 5,500
First Financial Corp. 700 16,538
Fund American
Enterprises Holdings,
Inc. 400 30,600
Glendale Federal Bank
(FSB) (New)* 800 14,000
Golden West Financial
Corp. 200 10,525
Great Financial Corp. 200 5,488
Great Western Financial
Corp. 400 9,200
Green Tree Financial
Corp. 500 16,875
H.F. Ahmanson & Co. 300 7,125
Home Financial Corp. 300 4,200
Household International
Inc. 400 27,650
Inter-Regional Financial
Group, Inc. 150 3,281
Interpool Inc. 200 3,600
JSB Financial, Inc. 200 6,800
Leader Financial Corp. 200 8,838
Legg Mason, Inc. 200 5,750
Merrill Lynch & Co. Inc. 700 42,263
Money Store Inc. 1,050 26,644
Morgan Stanley Group
Inc. 600 30,150
North American Mortgage
Co. 200 3,375
Olympic Financial Ltd.* 300 6,675
Peoples Heritage
Financial Group, Inc. 200 4,200
Pioneer Group Inc. 600 15,900
</TABLE>
49
<PAGE> 54
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Quick & Reilly Group,
Inc. 600 $ 18,300
RCSB Financial Inc. 200 4,713
Raymond James Financial
Inc. 300 6,788
Roosevelt Financial
Group Inc. 800 15,400
Salomon Inc. 400 16,250
Sovereign Bancorp Inc. 630 7,009
St. Paul Bancorp Inc. 300 7,294
Standard Financial Inc. 200 2,988
Student Loan Corp. 300 10,725
Travelers Group Inc. 1,300 79,950
Value Line, Inc. 200 6,950
WFS Financial Inc.* 400 7,975
Westcorp Inc. 300 5,888
-------
977,715
-------
MOTOR VEHICLE--1.0%
A.O. Smith Corp. Class B 400 9,200
Arctco, Inc. 400 3,875
Arvin Industries, Inc. 700 15,750
Borg Warner Automotive
Inc. 600 22,875
Breed Technologies Inc. 700 15,050
Chrysler Corp. 1,500 94,125
Cummins Engine Inc. 100 4,675
Dana Corp. 400 13,300
Detroit Diesel Corp.* 600 11,475
Eaton Corp. 300 18,150
Echlin Inc. 200 6,875
Federal Mogul Corp. 800 15,200
Fleetwood Enterprises,
Inc. 100 2,625
Ford Motor Co. 4,500 161,438
General Motors Corp. 3,000 162,750
Gentex Corp.* 200 7,875
Genuine Parts Co. 400 17,700
Hayes Wheels
International Inc. 500 15,188
Mascotech Inc. 1,000 13,125
Modine Manufacturing Co. 400 11,000
PACCAR Inc. 100 4,975
Standard Products Co. 200 5,075
Superior Industries
International, Inc. 400 10,950
TRW Inc. 300 28,163
Titan Wheel
International Inc. 300 4,838
-------
676,252
-------
NON-FERROUS--0.4%
A.M. Castle & Co. 200 6,700
Alcan Aluminum Ltd. 900 28,688
Aluminum Company of
America 700 43,663
Asarco Inc. 100 3,313
Brush Wellman Inc. 200 3,750
Coeur d'Alene Mines
Corp. 500 9,938
Commercial Metals Co. 200 6,000
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Cyprus Amax Minerals Co. 400 $ 10,850
Echo Bay Mines Ltd 300 3,938
Engelhard Corp. 400 10,050
Freeport McMoran Copper
& Gold Class B 900 29,588
Hecla Mining Co.* 600 4,650
Inco Ltd. 500 16,813
Minerals Technologies
Inc. 500 19,250
Mueller Industries Inc. 500 20,125
Phelps Dodge Corp. 300 22,050
Reynolds Metals Co. 200 10,750
Stillwater Mining Co.* 500 11,875
Sunshine Mining &
Refining Co.* 2,400 3,900
Wolverine Tube Inc.* 200 7,350
---------
273,241
---------
OIL-DOMESTIC--0.5%
Amerada Hess Corp. 300 16,988
Ashland Inc. 200 8,225
Atlantic Richfield Co. 600 70,650
Barrett Resources Corp.* 600 16,650
Cross Timbers Oil Co. 200 4,000
Diamond Shamrock Inc. 700 23,713
Kerr-McGee Corp. 200 12,775
Oryx Energy Co.* 200 3,200
Pennzoil Co. 100 4,425
Phillips Petroleum Co. 1,000 41,500
Pogo Producing Co. 700 25,288
Quaker State Corp. 400 6,300
Santa Fe Energy
Resources, Inc.* 200 2,400
Smith International
Inc.* 800 23,800
Snyder Oil Corp. 400 3,600
Sun Inc. 200 6,200
USX Corp. (Marathon
Group) (New) 1,100 24,200
Unocal Corp. 1,000 32,125
---------
326,039
---------
OIL-INTERNATIONAL--1.9%
Amoco Corp. 2,000 146,000
Chevron Corp. 2,500 145,000
Exxon Corp. 4,900 416,500
Mobil Corp. 1,500 172,500
Royal Dutch
Petroleum Co. 2,300 329,475
Texaco Inc. 1,100 94,050
Western Atlas, Inc.* 200 12,000
---------
1,315,525
---------
PAPER--0.6%
Alco Standard Corp. 500 28,938
Boise Cascade Corp. 100 4,650
Caraustar Industries
Inc. 600 15,075
Champion International
Corp. 300 14,475
Chesapeake Corp. 600 17,325
Georgia Pacific Corp. 300 23,325
International Paper Co. 1,100 43,863
James River Corp. 200 5,350
</TABLE>
50
<PAGE> 55
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Kimberly Clark Corp. 1,190 $ 86,424
Longview Fibre Co. 1,000 17,625
Louisiana Pacific Corp. 300 7,538
Mead Corp. 200 11,125
P.H. Glatfelter Co. 600 9,975
Potlatch Corp. 100 4,263
Rock Tennessee Co.
Class A 400 7,025
Schweitzer Mauduit
International Inc. 50 1,356
Shorewood Packaging
Corp.* 200 3,450
Temple-Inland Inc. 200 9,700
Thermo Fibertek Inc. 800 18,300
Union Camp Corp. 200 10,875
Wausau Paper Mills Co. 875 20,125
Westvaco Corp. 400 12,400
Weyerhaeuser Co. 1,000 49,500
Willamette Industries,
Inc. 200 12,350
-------
435,032
-------
PRODUCER GOODS-MANUFACTURING--2.8%
Albany International
Corp. Class A (New) 700 15,050
Allied Signal Inc. 1,200 69,750
American Financial
Enterprises Inc. 200 4,850
Applied Power Inc.
Class A 200 6,275
AptarGroup, Inc. 300 11,288
Avery Dennison Corp. 200 11,400
BT Office Products
International Inc.* 600 10,425
BW/IP Holding, Inc.
Class A 300 6,225
Baldor Electric Co. 400 8,650
Barnes Group Inc. 100 4,638
Bearings Inc. (New) 150 4,800
Blyth Industries Inc. 400 15,900
Boise Cascade Office
Products Corp. 700 54,775
Briggs & Stratton Corp. 100 4,538
Case Corp. 300 15,150
Caterpillar Inc. 900 57,600
Cincinnati Milacron Inc. 100 2,638
Clarcor Inc. 200 3,950
Coherent Inc.* 200 10,738
Collins & Aikman Corp.* 1,400 9,800
Commercial Intertech
Corp. 200 3,800
Cooper Industries Inc. 400 17,000
Corporate Express, Inc. 240 8,985
Credence Systems Corp. 300 6,488
Deere & Co. 1,000 38,875
Donaldson Inc. 400 10,500
Dover Corp. 400 20,600
Duriron Inc. 600 15,750
Emerson Electric Co. 900 75,263
FMC Corp. (New)* 100 6,938
Fisher Scientific
International, Inc. 500 18,688
Foster Wheeler Corp. 100 4,625
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
General Binding Corp. 200 $ 4,600
General Electric Co. 6,500 503,750
Giddings & Lewis Inc. 800 14,800
Goulds Pumps Inc. 300 7,031
Graco Inc. 300 6,038
Greenfield Industries
Inc. 500 18,969
Griffon Corp.* 400 3,600
Harnischfeger Industries
Corp. 100 4,050
Helix Technology Corp. 100 3,769
Herman Miller Inc. 400 12,300
IDEX Corp. 300 11,775
ITT Industries Inc. 400 11,000
Illinois Tool Works Inc. 400 26,900
Ingersoll Rand Co. 400 15,500
Insilco Corp.* 100 3,469
Interface Inc. Class A 200 2,613
Ionics Inc. 200 9,600
JLG Industries Inc. 300 16,425
Johnson Controls, Inc. 200 14,300
Juno Lighting Inc. 200 2,975
Kaydon Corp. 500 19,875
Kennametal Inc. 400 15,150
Keystone International
Inc. 800 17,500
Lawson Products, Inc. 200 4,600
Lincoln Electric Co. 100 2,675
Lincoln Electric Co.
Class A (Non Voting) 400 11,300
Lydall Inc. 200 4,700
Measurex Corp. 200 5,800
Millipore Corp. 100 4,188
Mine Safety
Appliances Co. 100 4,438
Myers Industry Inc. 200 3,625
NN Ball & Roller, Inc. 300 7,500
Navistar International
Corp.* 4,300 51,600
Nu-Kote Holding Inc.
Class A 300 5,325
Pall Corp. 300 8,400
Parker Hannifin Corp. 200 8,450
Precision Castparts
Corp. 600 26,025
Presstek Inc. 500 69,438
Raychem Corp. 200 15,575
Roper Industries 500 23,563
SPS Technologies, Inc. 100 6,500
Standex International
Corp. 200 5,400
Stewart & Stevenson
Services, Inc. 500 14,750
TRINOVA Corp. 1,600 56,400
Teleflex Inc. 300 13,913
Tencor Instruments 400 9,875
Tenneco Inc. 600 32,925
Texas Industries Inc. 200 12,800
Timken Co. 100 3,963
TriMas Corp. 700 16,538
Triarc Cos., Inc.
Class A* 400 5,050
Tyco Interest Ltd 600 23,175
U.S. Filter Corp. (New) 600 18,450
UNR Industries, Inc. 700 6,475
</TABLE>
51
<PAGE> 56
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Valhi, Inc. (New) 1,600 $ 10,400
Valmont Industries, Inc. 200 6,450
Varity Corp.* 100 4,263
W.W. Grainger, Inc. 200 13,800
WMS Industries Inc.* 300 5,438
Watts Industries Inc.
Class A 700 14,350
Westinghouse Air Brake
Co. (New) 300 4,238
Westinghouse Electric
Corp. 1,500 28,313
Westpoint Stevens Inc.
Class A 700 14,744
Wyman Gordon Co.* 700 12,775
X-Rite, Inc. 300 5,250
Zero Corp. 200 3,600
Zurn Industries, Inc. 300 6,113
---------
1,915,091
---------
RAILROAD--0.3%
Burlington Northern
Santa Fe 500 43,750
CSX Corp. 800 41,000
Conrail Inc. 300 20,925
Florida East Coast
Industry Inc. 200 17,800
Norfolk Southern Corp. 500 42,000
Union Pacific Corp. 900 61,313
---------
226,788
---------
REAL PROPERTY--0.1%
Avatar Holdings, Inc.* 100 3,900
Catellus Development
Corp.* 900 8,213
Forest City Enterprises,
Inc. Class A 100 3,775
Insignia Financial Group
Class A (New) 800 17,600
Lennar Corp. 800 20,000
Price Enterprises Inc. 300 4,800
---------
58,288
---------
RETAIL--2.1%
Albertson's Inc. 1,100 42,350
American Stores Co.
(New) 600 20,025
AnnTaylor Stores Corp.* 300 5,138
Arbor Drugs, Inc. 600 12,225
Best Buy Co., Inc.* 800 15,400
Blair Corp. 100 2,613
Burlington Coat Factory
Warehouse* 500 5,438
CDW Computer Centers
Inc.* 200 15,450
CUC International Inc. 800 26,300
Carson Pirie Scott &
Co.* 200 4,850
Casey's General Stores
Inc. 400 8,625
Cato Corp. (New) 300 2,850
Charming Shoppes Inc. 1,500 9,656
Circle K Corp.* 400 12,500
Circuit City Stores Inc. 400 12,700
Claire's Stores Inc. 450 9,788
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
CompUSA Inc. 800 $27,700
Dayton Hudson Corp. 300 28,650
Dillard Department
Stores Inc. Class A 400 16,050
Dollar Tree Stores Inc. 750 25,125
Duty Free International
Inc. 600 8,025
Family Dollar Stores,
Inc. 1,000 15,250
Federated Department
Stores Inc.* 900 30,038
Fingerhut Companies,
Inc. 600 7,650
Fred Meyer Inc.* 400 11,500
Fruit of the Loom Inc.
Class A* 200 5,275
Gap Inc. 1,000 30,125
Giant Food Inc. Class A 100 3,188
Great Atlantic & Pacific
Tea Co., Inc. 100 3,488
Gymboree Corp.* 600 15,600
Harcourt General Inc. 200 8,800
Hollywood Entertainment
Corp. 500 8,156
Home Depot Inc. 2,000 94,750
Home Shopping Network,
Inc.* 1,400 16,450
J.C. Penney Inc. 800 39,600
Just for Feet Inc. 500 23,906
K Mart Corp. 1,800 18,225
Kroger Co.* 500 20,563
Lands' End, Inc.* 700 13,825
Limited Inc. 1,144 23,738
Longs Drug Stores Corp. 100 4,525
Lowe's Cos. Inc. 500 16,188
MacFrugals Bargains-
Close-Out* 300 4,013
May Department
Stores Co. 900 45,900
Melville Corp. 400 15,550
Mercantile Stores Co.,
Inc. 100 6,238
Michaels Stores Inc.* 300 5,531
Nordstrom Inc. 400 20,300
Pep Boys--Manny,
Moe & Jack 200 6,675
Petco Animal Supplies
Inc. 300 8,700
Pier 1 Imports Inc. 500 6,688
Price Costco Inc.* 700 13,256
Proffitt's, Inc.* 400 13,150
Quality Food Centers,
Inc. 200 5,250
Regis Corp. 200 7,375
Rite Aid Corp. 200 5,925
Ross Stores Inc. 600 20,775
Ruddick Corp. 600 7,950
Sears Roebuck & Co. 1,500 74,813
Service Merchandise Co.
Inc.* 1,300 6,175
Shopko Stores Inc. 400 6,200
Smart & Final Inc. 300 6,825
Smith's Food & Drug
Centers, Inc. Class B 400 10,000
</TABLE>
52
<PAGE> 57
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sotheby's Holdings, Inc.
Class A 800 $ 11,300
Spiegel, Inc. Class A
(Non Voting) 1,700 17,000
Sports Authority Inc.* 300 8,925
Stanhome Inc. 300 8,850
Stein Mart Inc.* 400 6,350
TJX Companies, Inc. 200 5,900
Tandy Corp. 300 15,563
Tiffany & Co. (New) 500 32,625
Toys 'R' Us, Inc.* 1,000 27,875
United Stationers Inc. 200 4,525
Vitalink Pharmacy
Services, Inc.* 200 4,525
Waban Inc.* 700 17,150
Wal-Mart Stores, Inc. 8,900 212,488
Walgreen Co. 1,100 35,200
Williams-Sonoma Inc.* 600 15,038
Winn Dixie Stores Inc. 600 19,800
Woolworth Corp. 300 5,738
Zale Corp. (New)* 500 9,406
---------
1,477,845
---------
STEEL--0.2%
Armco Inc.* 1,700 9,563
Bethlehem Steel Corp.* 300 4,088
Birmingham Steel Corp. 400 6,400
Carpenter Technology
Corp. 500 18,813
Chaparral Steel Co. 600 9,075
Cleveland Cliffs Inc. 200 8,350
Inland Steel Industries,
Inc. 100 2,463
Intermet Corp.* 300 4,388
J & L Specialty Steel
Inc. 800 14,500
Lukens Inc. 200 5,275
National Steel Corp.
Class B* 600 8,175
Nucor Corp. 300 16,875
Oregon Steel Mills Inc. 200 3,175
Quanex Corp. 200 4,400
Rouge Steel Co. Class A 200 4,475
USX Corp.
(U.S. Steel Group) 200 6,600
WHX Corp.* 300 3,450
Worthington Industries
Inc. 200 4,088
---------
134,153
---------
TELEPHONE--2.6%
360 Communications Co.* 466 10,951
AT&T Corp. 6,200 379,750
Airtouch Communications
Inc.* 1,900 59,375
Alltel Corp. 700 23,013
American Mobile
Satellite Corp.* 600 11,550
Ameritech Corp. (New) 2,300 134,263
Andrew Corp. 150 7,181
Antec Corp.* 400 6,075
Arch Communications
Group, Inc.* 500 11,875
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Aspect
Telecommunications
Corp. 300 $ 17,250
Associated Group Inc.
Class A* 200 5,563
Bell Atlantic Corp. 1,700 110,500
BellSouth Corp. 3,900 156,000
Boston Technology Inc.
(New)* 300 5,250
C-TEC Corp. 400 11,950
California Microwave* 200 3,675
Cellstar Corp.* 300 2,813
Cidco Inc.* 200 7,125
Coherent Communications
Systems Corp. 600 11,400
Colonial Data
Technologies* 300 6,825
Comnet Cellular Inc.* 200 6,625
DSC Communications
Corp.* 300 9,413
Echostar Communications
Corp. Class A* 200 6,625
GTE Corp. 3,800 164,825
General Datacom
Industries Inc.* 300 4,125
Geotek Communications
Inc.* 600 6,263
InterVoice, Inc.* 200 5,613
Lincoln
Telecommunications 800 13,450
Loral Space &
Communications* 600 8,625
MCI Communications Corp. 2,700 79,313
Microcom Inc.* 300 7,350
Mobilemedia Corp.
Class A* 400 7,950
Nextel Communications
Inc.* 214 3,852
Northern Telecom Ltd 1,100 56,650
Nynex Corp. 1,600 78,600
Octel Communications
Corp. 600 27,000
P-Com Inc. 300 7,519
Pacific Telesis Group 1,600 54,800
Pairgain Technologies
Inc.* 500 47,875
Plantronics, Inc. (New)* 200 8,025
Sprint Corp. 1,400 58,975
Tellabs Inc. 300 16,613
U S WEST, Inc.
(Communications Group) 1,700 55,675
U S West Inc.
(Media Group)* 2,000 39,000
Vanguard Cellular
Systems, Inc. Class A* 600 12,900
Worldcom Inc.* 700 32,856
---------
1,802,901
---------
</TABLE>
53
<PAGE> 58
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
TOBACCO--0.6%
American Brands, Inc. 600 $ 24,975
Loews Corp. 400 30,500
Philip Morris Companies
Inc. 3,400 306,425
UST Inc. 700 22,400
-------
384,300
-------
TRANSPORTATION-MISCELLANEOUS--0.4%
Air Express
International Corp. 300 8,363
Airbourne Freight Corp. 300 7,913
Amerco Inc.* 800 17,750
American Freightways
Corp.* 400 6,100
American President
Companies, Ltd. 400 9,550
Arnold Industries Inc. 600 9,600
Caliber Systems Inc. 100 4,013
Consolidated Freightways
Inc. 100 2,613
Expeditores
International of
Washington Inc. 200 5,875
Federal Express Corp.* 200 16,150
Harper Group, Inc. 200 3,850
Heartland Express, Inc. 307 9,057
J.B. Hunt Transport
Services Inc. 500 10,281
Kirby Corp.* 400 7,050
Landstar Systems, Inc.* 200 5,550
M.S. Carriers, Inc.* 200 3,850
NACCO Industries, Inc.
Class A 300 18,938
Overseas Shipholding
Group 800 16,100
Pittston Co.
(Burlington Group) 50 994
Pittston Services Group 100 2,788
Roadway Express Inc. 50 747
Rollins Truck Leasing
Corp. 600 6,525
Ryder System, Inc. 200 5,825
Shurgard Storage Centers
Inc. Class A 600 15,375
Swift Transportation
Inc. 300 5,700
TNT Freightways Corp. 300 6,769
Wabash National Corp. 300 5,925
Werner Enterprises Inc. 600 14,775
XTRA Corp. 300 13,650
Yellow Corp. 400 4,900
-------
246,576
-------
TRAVEL & RECREATION--0.6%
Anchor Gaming* 100 4,425
Anthony Industries, Inc. 200 5,700
Aztar Corp.* 500 4,875
Bally Entertainment
Corp. 1,200 25,050
Bally Total Fitness
Holding Corp.* 250 1,375
Boyd Gaming Corp.* 1,000 14,000
Brunswick Corp. 200 4,400
Doubletree Corp.* 300 9,581
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Harrahs Entertainment
Inc.* 400 $ 13,800
Hilton Hotels Corp. 200 21,100
ITT Corp. (New)* 400 24,350
Marcus Corp. 300 8,363
Marriot International
Inc. 400 19,500
Players International
Inc. 400 4,550
Polaris Industries Inc. 700 24,413
Primadonna Resorts Inc.* 400 7,650
Prime Hospitality Corp.* 400 6,050
Rio Hotel & Casino Inc.* 200 3,600
Showboat, Inc. 200 6,400
Speedway Motorsports,
Inc. 600 16,050
Station Casinos Inc.* 700 9,188
Stratosphere Corp.* 1,100 12,031
Topps Inc. 600 3,506
Walt Disney Co. 2,539 157,418
-------
407,375
-------
UTILITIES--1.8%
American Electric Power
Co., Inc. 700 28,438
Aquila Gas Pipeline
Corp. 400 5,550
Atmos Energy Corp. 200 4,950
Baltimore Gas &
Electric Co. 400 10,550
Bay State Gas Co. 200 5,550
Black Hills Corp. 200 5,000
Carolina Power &
Light Co. 700 25,200
Central & South West
Corp. 800 21,800
Central Hudson Gas &
Electric Corp. 500 14,500
Central Louisiana
Electric Co. (New) 600 15,375
Central Maine Power Co. 700 9,975
Cilcorp Inc. 200 8,625
Cinergy Corp. 600 17,400
Coastal Corp. 300 11,888
Columbia Gas System,
Inc. 100 4,863
Commonwealth Energy
System (Shares of
Beneficial Interest) 200 9,175
Consolidated Edison Co. 800 23,500
Consolidated Natural
Gas Co. 300 14,025
DTE Energy Co. 600 18,600
Destec Energy, Inc.* 1,100 12,925
Dominion Resources Inc. 700 26,950
Duke Power Co. 900 42,300
ENSERCH Corp. 100 2,150
Eastern Enterprises 400 14,350
Eastern Utilities
Association 300 6,113
Edison International 1,900 30,400
Empire District Electric
Co. 200 3,650
Energen Corp. 100 2,288
Enron Corp. 1,100 44,275
Entergy Corp. 900 23,850
</TABLE>
54
<PAGE> 59
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
FPL Group, Inc. 700 $30,188
General Public Utilities
Corp. 500 15,875
Houston Industries Inc. 1,000 21,375
IES Industries Inc. 700 18,550
Indiana Energy Inc. 600 14,325
Interstate Power Co. 100 3,063
K N Energy Inc. 700 22,400
Laclede Gas Co. 200 4,700
MDU Resources
Group, Inc. 400 8,750
Madison Gas &
Electric Co. 300 7,350
NICOR Inc. 100 2,788
New Jersey Resources
Corp. 500 14,188
Niagara Mohawk Power
Corp. 400 3,000
NorAm Energy Co. 300 3,300
Northern States Power
Co. 200 9,350
Northwest Natural Gas
Co. 200 6,538
Ohio Edison Co. 400 8,350
Oneok Inc. 500 12,875
Orange & Rockland
Utilities, Inc. 200 6,825
Otter Tail Power Co. 200 7,325
P P & L Resources Inc. 500 11,313
Pacific Enterprises 200 5,150
Pacific Gas & Electric
Co. 1,700 38,675
Pacificorp 1,100 22,000
Panenergy Corp. 600 20,100
Peco Energy Co. 900 22,388
Peoples Energy Corp. 100 3,150
Philadelphia Suburban
Corp. 200 4,650
Piedmont Natural
Gas Inc. 700 15,138
Primark Corp.* 600 21,300
Public Service Co. of
New Mexico 900 15,750
Public Service Co. of
North Carolina Inc. 200 3,225
Public Service
Enterprise Group 900 23,513
Seagull Energy Corp.* 800 19,500
Sierra Pacific Resources 700 16,975
Sig Corp. 500 16,688
Sonat Inc. 300 13,088
South Jersey
Industries Inc. 100 2,338
Southern Co. 2,800 61,600
Southern Union Co. (New) 300 6,600
Southwest Gas Corp. 300 4,988
Southwestern
Energy Co. 300 4,163
Tejas Gas Corp. 200 10,000
Texas Utilities Co. 800 32,200
Thermo Ecotek Corp. 300 7,088
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Tucson Electric
Power Co.* 2,000 $ 5,750
UGI Corp. (New) 700 15,663
Unicom Corp. 800 22,000
Union Electric Co. 300 11,588
United Illuminating Co. 200 7,275
United Water
Resources Inc. 400 5,000
WPS Resources Corp. 600 18,975
Washington Energy Co. 300 5,813
Western Gas
Resources Inc. 300 4,425
Wicor Inc. 500 17,188
Williams Cos. Inc. 400 20,450
Yankee Energy
System, Inc. 100 2,238
----------
1,223,275
----------
29,719,554
----------
INTERNATIONAL--14.5%
AUSTRALIA--0.3%
Australia & New Zealand
Banking Group 3,541 16,912
Broken Hill Proprietary
Co., Ltd. 4,741 72,959
Commonwealth Bank Group 2,412 19,800
National Australia Bank 3,427 30,743
News Corp., Ltd. 4,891 28,662
Western Mining Corp. 2,717 19,807
Westpac Banking Corp. 4,468 21,691
----------
210,574
----------
BELGIUM--0.1%
Electrabel 134 30,052
Electrabel, VVPR Strip 25 68
Generale de Banque 38 13,399
Petrofina SA 57 16,857
Societe Generale de
Belgique 173 13,464
Tractebel Investor
International 18 7,319
Tractebel Investor
International, VVPR
Strip 15 6,075
----------
87,234
----------
CANADA--0.4%
Alcan Aluminum Ltd. 551 17,524
BCE Inc. 764 30,049
Bank of Montreal 651 15,635
Bank of Nova Scotia,
Halifax 565 12,802
Barrick Gold Corp. 1,453 44,556
Canadian Imperial Bank
of Commerce 643 19,977
Canadian Pacific Ltd. 838 17,049
Imperial Oil Ltd. (New) 472 19,189
Northern Telecom Ltd. 621 31,974
Placer Dome Inc. 585 16,285
Royal Bank of Canada,
Montreal Quebec 769 18,215
Seagram Co. Ltd. 738 24,853
</TABLE>
55
<PAGE> 60
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Thomson Corp. 1,442 $ 23,989
Toronto-Dominion Bank 738 12,792
-------
304,889
-------
DENMARK--0.0%
Novo Nordisk A/S
Series B 94 12,216
Tele Danmark A/S
Series B 321 16,153
-------
28,369
-------
FRANCE--1.0%
AXA Groupe SA 453 26,992
Alcatel Alsthom
CGE SA 369 34,704
BQE National de Paris 471 19,669
Carrefour 63 49,230
Christian Dior 105 14,000
Cie Financiere de
Paribas (Bearer) 294 18,912
Cie Generale de Eaux 287 31,213
Compagnie de Saint-
Gobain SA 204 24,437
Danone Groupe 174 26,298
Elf Aquitaine 665 49,455
L'Air Liquide 162 29,437
L'Oreal SA 150 46,357
LVMH Moet Hennessy Louis
Vuitton 213 54,492
Lafarge Coppee SA 225 14,412
Lyonnaise des Eaux-Dumez 139 13,961
Michelin (CGDE) Class B
(Reg.) 265 13,133
PSA Peugeot Citroen 123 17,185
Pinault Printemps
Redoute SA 56 17,003
Renault (Regie
Nationale) 585 17,740
Rhone-Poulenc SA
A Shares 786 18,861
Roussel Uclaf 68 16,028
Sanofi 251 20,255
Schneider SA 312 14,539
Societe Generale 214 24,848
Suez Group 390 16,158
TOTAL Class B 575 39,023
Union des Assurances de
Paris 737 15,959
-------
684,301
-------
GERMANY--1.1%
BASF AG 149 40,683
Bankgesell Berlin 53 10,888
Bayer AG 170 54,746
Bayerische Hypotheken &
Wechsel Bank AG 629 15,646
Bayerische Motoren
Werke AG 43 23,215
Bayerische
Vereinsbank AG 572 16,814
Commerzbank AG 73 15,807
Daimler-Benz AG 126 69,012
Deutsche Bank AG 1,161 55,642
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Dresdner Bank AG 929 $ 23,375
Hoechst AG 160 53,887
Linde AG 13 7,948
Lufthansa AG 87 13,798
Mannesmann AG 92 31,430
Muenchener
Rueckversicherung 3 4,919
Muenchener
Rueckversicherung
(Reg.) 18 32,687
RWE AG* 846 32,936
RWE AG (Non Voting)* 500 14,550
Sap AG 132 17,115
Siemens AG 137 75,019
Thyssen AG 77 13,957
Veba AG 1,190 59,154
Vereinigte
Elektrizitatswerke
Westfalen Series B 43 12,359
Viag AG 44 17,259
Viag AG (New)* 12 4,707
Volkswagen AG 59 20,368
-------
737,921
-------
HONG KONG--0.5%
CITIC Pacific 6,000 23,580
Cheung Kong Holdings 3,000 21,427
China Light & Power 6,000 28,311
Hang Seng Bank Ltd. 3,400 34,503
Henderson China 12 33
Henderson Land
Development Co. 3,000 21,524
Hongkong Electric
Holdings Ltd. 8,500 27,031
Hongkong
Telecommunications
Ltd. 22,400 42,712
Hutchison
Whampoa Ltd. 6,000 37,231
New World Development
Co. 5,115 22,945
Sun Hung Kai Properties 5,000 47,670
Swire Pacific Ltd.
Class A 4,000 34,128
Wharf Holdings 6,000 22,222
-------
363,317
-------
ITALY--0.3%
Alleanza Assicurazioni 850 8,027
Assicurazioni Generali 1,963 48,949
Fiat SpA 8,042 27,416
Fiat SpA, di Risp
(Non-Convertible) 5,394 9,825
INA 10,028 15,408
STET 8,327 28,148
STET di Risp
(Non-Convertible) 2,791 7,317
Telecom Italia 16,255 33,145
Telecom Italia di Risp
(Non-Convertible) 5,096 8,450
Telecom Italia Mob 14,418 31,845
Telecom Italia Mob
di Risp 5,913 8,290
-------
226,820
-------
</TABLE>
56
<PAGE> 61
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
JAPAN--5.1%
Ajinomoto Co., Inc. 1,000 $ 12,523
All Nippon Airways Co.,
Ltd. 2,000 22,752
Asahi Bank 2,000 25,811
Asahi Breweries 1,000 12,141
Asahi Chemical Industry
Co. 2,000 15,200
Asahi Glass Co., Ltd. 1,000 12,141
Bank of Fukuoka 1,000 8,776
Bank of Tokyo Mitsubishi
(Bank of Tokyo shares) 1,600 36,862
Bank of Tokyo Mitsubishi
(Mitsubishi Bank
shares) 4,200 97,166
Bank of Yokohama 1,000 8,977
Bridgestone Corp. 1,000 18,546
Canon Inc. 1,000 19,884
Chiba Bank 1,000 9,034
Chubu Electric
Power Co. 1,000 25,333
DDI Corp. 2 17,188
Dai Nippon
Printing Co. 1,000 18,833
Dai-Ichi Kangyo
Bank, Ltd. 5,000 101,812
Daiei Inc. 1,000 13,575
Daiwa Bank 2,000 15,582
Daiwa House
Industries Co. 1,000 15,965
Daiwa Securities Co. 1,000 15,391
East Japan Railway Co. 4 21,376
Fuji Bank, Ltd. 4,000 87,568
Fuji Photo Film Co. 1,000 31,165
Fujitsu Ltd. 2,000 20,649
Gunma Bank 1,000 11,567
Hachijuni Bank 1,000 11,567
Hankyu Corp. 1,000 6,109
Hitachi Ltd. 4,000 43,210
Hitachi Zosen Corp. 1,000 5,487
Hokkaido Electric Power
Co. 1,000 23,995
Hokuriku Electric Power
Co. 1,000 23,899
Honda Motor Co., Ltd. 1,000 22,848
Industrial Bank of
Japan, Ltd. 3,000 80,302
Ishikawajima-Harima
Heavy Industries 3,000 14,913
Ito-Yokado Co., Ltd. 1,000 58,984
Itochu Corp. 2,000 15,238
Japan Air Lines
Co., Ltd. 2,000 16,003
Japan Tobacco Inc. 2 18,508
Joyo Bank 1,000 8,183
Kajima Corp. 1,000 11,281
Kansai Electric
Power Co. 1,000 24,282
Kao Corp. 1,000 13,384
Kawasaki Heavy
Industries 1,000 5,172
Kawasaki Steel Co. 3,000 10,984
Kinki Nippon
Railway Co. 2,060 16,030
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Kirin Brewery Co., Ltd. 1,000 $ 13,001
Kobe Steel 3,000 9,321
Kokusai Denki 1,000 98,466
Komatsu Ltd. 1,000 9,655
Kubota Corp. 2,000 13,938
Kyocera Corp. 1,000 75,331
Kyushu Electric
Power Co. 2,000 49,711
Long-Term Credit
Bank of Japan 3,000 26,012
Marubeni Corp. 2,000 11,988
Matsushita Communication
Industrial Co., Ltd. 1,000 26,767
Matsushita Electric
Industrial Co., Ltd. 3,000 53,057
Matsushita Electric
Works 1,000 11,376
Mitsubishi Chemical
Corp. 2,000 10,975
Mitsubishi Corp. 2,000 28,488
Mitsubishi Electric
Corp. 2,000 15,755
Mitsubishi Estate Co. 1,000 14,053
Mitsubishi Heavy
Industries 4,000 35,715
Mitsubishi Materials Co. 1,000 6,023
Mitsubishi Motors 1,000 9,024
Mitsubishi Trust &
Banking Corp. 1,000 17,303
Mitsui & Co. 2,000 19,062
Mitsui Fudosan Co. 1,000 13,192
Mitsui Marine & Fire
Insurance 1,000 8,480
Mitsui Trust &
Banking Co. 1,000 12,045
NEC Corp. 2,000 25,429
NKK Corp. 3,000 9,407
New Oji Paper Co. 1,000 9,244
Nikko Securities Co. 2,000 25,429
Nikon Corp. 1,000 13,479
Nippon Credit Bank 2,000 8,164
Nippon Express Co. 1,000 10,420
Nippon Oil Co. 1,000 6,931
Nippon Paper
Industries Co. 1,000 7,323
Nippon Steel Corp. 7,000 25,295
Nippon Telegraph &
Telephone Corp. 22 170,565
Nippon Yusen Kabushiki
Kaisha 1,000 6,070
Nippondenso Co. 1,000 21,796
Nissan Motor Co., Ltd. 3,000 25,353
Nomura Securities
Co., Ltd. 2,000 43,593
Obayashi Corp. 1,000 9,302
Odakyu Electric Railway
Co. 1,030 7,385
Oki Electric Industry
Co., Ltd. 1,000 7,935
Omron Corp. 1,000 22,561
Ono Pharmaceutical Co. 1,000 37,761
Osaka Gas Co. 2,000 8,011
Ricoh Co., Ltd. 1,000 11,759
</TABLE>
57
<PAGE> 62
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Rohm Co. 1,000 $ 63,668
Sakura Bank 5,000 58,793
Sankyo Co. 1,000 24,282
Sanwa Bank 4,000 81,067
Sanyo Electric Co., Ltd. 2,000 12,772
Seibu Railway Co. 1,000 56,211
Sekisui Chemical Co. 1,000 12,619
Sekisui House 1,000 12,428
Seven-Eleven Japan Co. 1,100 77,922
Sharp Corp. 1,000 17,399
Shimizu Corp. 1,000 11,472
Shizuoka Bank 1,000 13,575
Sony Corp. 1,000 65,006
Sony Music Entertainment 1,000 54,204
Sumitomo Bank 5,000 107,069
Sumitomo
Chemical Co. 2,000 10,650
Sumitomo Corp. 1,000 11,950
Sumitomo Electric
Industries 1,000 14,340
Sumitomo Marine & Fire
Insurance Co. 1,000 9,522
Sumitomo Metal
Industries 3,000 9,636
Sumitomo Trust & Banking
Co. 1,000 14,626
Suzuki Motor Corp. 1,000 12,715
Taisei Corp. 1,000 7,743
Taisho
Pharmaceutical Co. 1,000 21,892
Takeda Chemical
Industries 1,000 17,303
Teijin Ltd. 1,000 5,497
Tobu Railway Co. 1,000 6,921
Tohoku Electric
Power Co. 1,000 24,855
Tokai Bank 2,000 25,620
Tokio Marine & Fire
Insurance Co. 2,000 27,532
Tokyo Electric Power
Co., Inc. 2,000 54,491
Tokyo Electron 1,000 37,188
Tokyo Gas & Electric
Industrial 3,000 11,787
Tokyu Corp. 1,000 8,154
Tonen Corp. 1,000 14,913
Toppan Printing Co. 1,000 14,722
Toray Industries Inc. 2,000 13,613
Toshiba Corp. 4,000 31,127
Toto 1,000 14,818
Toyo Seikan 1,000 35,467
Toyo Trust &
Banking Co. 1,000 10,898
Toyoda Automatic Loom 1,000 20,745
Toyota Motor Corp. 5,000 114,239
Yamaichi Securities Co. 1,000 7,906
Yasuda Fire & Marine
Insurance Co. 1,000 7,887
Yasuda Trust & Banking
Co. 1,000 6,634
---------
3,522,024
---------
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
NETHERLANDS--0.9%
ABN Amro
Holdings NV 758 $ 39,238
Aegon NV 634 30,192
Akzo Nobel NV 174 20,208
Dordtsche Petrol 88 13,122
Elsevier NV 1,615 24,317
Heineken NV 123 25,741
ING NV 766 59,143
Koninklijke Ahold NV 311 15,337
Koninklijke PTT
Nederland 1,132 42,479
Philips Electronics NV 841 29,694
PolyGram NV 441 26,252
Royal Dutch Petroleum
Co. (Bearer) 1,349 192,174
Unilever NV, CVA 392 53,487
Wolters Kluwer NV, CVA 164 17,927
-------
589,311
-------
SINGAPORE--0.3%
City Developments 1,000 8,749
Development Bank
of Singapore
(alien market) 1,000 12,662
Hong Kong Land Holdings 5,000 10,700
Jardine Matheson
Holdings Ltd. 1,600 12,800
Overseas Chinese Bank
(alien market) 2,000 27,458
Singapore Airlines Ltd.
(alien market) 2,000 20,202
Singapore
Telecommunications 27,000 66,453
United Overseas Bank
(alien market) 2,000 19,491
-------
178,515
-------
SPAIN--0.3%
Argentaria Corp. 307 12,430
Banco Bilbao-Vizcaya SA
(Reg.) 556 21,134
Banco Popular Espanol
(Reg.) 72 11,932
Banco de Santander SA
(Reg.) 391 18,167
Empresa Nacional de
Electricidad 637 40,013
Gas Natural SDG SA 94 17,086
Iberdrola SA 2,266 22,179
Repsol, SA 735 26,956
Telefonica Internacional
de Espana, SA 2,300 40,955
-------
210,852
-------
SWEDEN--0.3%
ASEA AB 164 16,783
ASEA AB Series B 59 5,986
Astra AB Series A 1,228 54,595
Astra AB Series B 176 7,773
L.M. Ericsson Telephone
Series B 2,340 47,445
</TABLE>
58
<PAGE> 63
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sandvik AB Series A 322 $ 7,098
Sandvik AB Series B 338 7,451
Volvo AB Series A 289 6,627
Volvo AB Series B 787 18,046
-------
171,804
-------
SWITZERLAND--1.0%
BBC Brown Boveri
(Bearer) 20 24,098
BBC Brown Boveri (Reg.) 25 5,880
CS Holding (Reg.) 453 41,137
Ciba-Geigy Ltd. (Bearer) 7 8,079
Ciba-Geigy Ltd. (Reg.) 60 69,636
Cie Financiere Richemont
Series A (Bearer) 10 14,659
Nestle Ltd. (Reg.) 100 111,227
Roche Group
Holding AG 18 141,567
Roche Group Holding AG
(Bearer) 4 54,124
Sandoz Ltd. (Bearer) 7 7,622
Sandoz Ltd. (Reg.) 86 93,924
Schweizerische
Bankgesellschaft
(Bearer) 51 50,688
Schweizerische
Bankgesellschaft
(Reg.) 34 7,394
Schweizerische
Bankverein (Bearer) 49 18,351
Schweizerische
Bankverein (Reg.) 82 15,322
Winterthur 9 5,647
Winterthur (Reg.) 11 6,902
Zurich Versicherung
(Reg.) 108 30,184
-------
706,441
-------
UNITED KINGDOM--2.9%
Abbey National 3,214 27,481
Allied Domecq PLC 2,553 19,735
Argyll Group 2,802 14,004
Associated British Foods 2,656 15,913
BAA 2,534 20,827
BAT Industries 7,550 57,054
BOC Group 1,184 16,451
BTR 10,075 48,532
Barclays 3,947 43,790
Bass 2,160 25,476
Boots Co. 2,323 22,153
British Aerospace 1,067 13,982
British Airways 2,370 18,516
British Gas 10,622 37,736
British Petroleum Co. 14,132 127,535
British Sky Broadcast 4,306 30,984
British Steel 4,942 14,767
British Telecom 15,266 83,764
Cable & Wireless 5,413 42,494
Cadbury Schweppes 2,412 18,699
Commercial Union
Assurance Co. 1,628 14,128
General Electric Co. 6,722 36,276
Glaxo Wellcome 8,483 102,861
Granada Group 1,435 17,789
Grand
Metropolitan, Inc. 5,229 34,398
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Great University Stores 2,463 $ 26,862
Guinness 4,948 35,604
HSBC Holdings 2,089 30,928
HSBC Holdings
(Hong Kong) 4,332 64,136
Hanson Industries 13,006 38,570
Imperial Chemical
Industries 1,772 24,007
J. Sainsbury PLC 4,430 24,407
Kingfisher 1,636 14,641
Legal & General Group 1,231 13,268
Lloyds Abbey Life 1,751 14,122
Lloyds TSB Group 12,929 61,988
Marks & Spencer PLC 6,856 45,772
National Grid Group 4,240 13,053
National Power
Development 2,904 24,502
National Westminster
Bancorp 4,208 38,799
Pearson, Inc. 1,355 14,319
Powergen 1,778 14,935
Prudential Corp. 4,658 32,079
RTZ Corp. PLC 2,634 41,475
Rank Organisation PLC 2,031 16,296
Reed International 1,374 23,641
Rentokil Group 2,452 14,137
Reuters Holdings PLC 4,084 46,232
Royal Bank of Scotland 1,980 15,454
Scot & Newcastle 1,495 15,472
Shell Transport &
Trading Co. (Reg.) 8,498 112,125
Siebe 1,075 13,901
SmithKline Beecham PLC
Series A 3,387 35,920
SmithKline Beecham PLC
(New) 3,271 34,714
Standard Chartered PLC 2,368 22,172
Tesco 5,056 21,349
Thorn Emi 1,049 29,095
Unilever 1,987 36,372
Vendome Lux Group/SA
(units) 1,749 15,402
Vodafone Group 7,507 30,003
Whitbread 1,204 13,611
Zeneca Group 2,316 47,861
----------
2,022,569
----------
10,044,941
----------
TOTAL COMMON STOCK
(Cost $36,329,746) 39,764,495
----------
PREFERRED STOCK--0.1%
AUSTRALIA--0.0%
News Corp. (Limited
Voting Shares) 2,384 12,266
-----------
GERMANY--0.1%
Henkel KGaA 36 13,804
Sap AG (Non-Voting) 99 13,147
Volkswagen AG
(Non-Voting) 24 6,098
----------
33,049
----------
</TABLE>
59
<PAGE> 64
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-BALANCED GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
ITALY--0.0%
Fiat SpA 3,117 $ 5,957
----------
GERMANY--0.0%
Lufthansa AG
(Non-Voting) 49 7,672
----------
UNITED STATES--0.0%
Teledyne, Inc. Series E 1 15
----------
TOTAL PREFERRED STOCK
(Cost $58,320) 58,959
----------
</TABLE>
<TABLE>
<CAPTION>
Par
---------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--33.4%(a)
U.S. Treasury Bonds
10.00%, 05/15/10 $ 475,000 575,648
7.25%, 05/15/16 1,400,000 1,426,712
7.50%, 11/15/16 500,000 522,530
8.13%, 08/15/19 300,000 334,728
7.13%, 02/15/23 7,200,000 7,237,512
6.25%, 08/15/23 1,725,000 1,556,657
U.S. Treasury Notes
5.88%, 05/31/96 500,000 500,355
6.25%, 01/31/97 550,000 553,053
5.63%, 10/31/97 1,700,000 1,692,894
5.13%, 02/28/98 600,000 590,694
7.88%, 04/15/98 800,000 826,656
5.88%, 08/15/98 1,275,000 1,268,549
5.00%, 02/15/99 500,000 485,170
7.00%, 04/15/99 600,000 612,432
7.50%, 10/31/99 900,000 932,877
5.75%, 10/31/00 1,500,000 1,462,380
6.38%, 08/15/02 1,900,000 1,884,762
6.50%, 05/15/05 400,000 394,624
6.50%, 08/15/05 200,000 197,240
----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $23,726,129) 23,055,473
----------
<CAPTION>
Par Value
---------- -----------
<S> <C> <C>
AGENCY OBLIGATIONS-
COUPON NOTES--2.5%(a)
Federal National
Mortgage Assoc.
8.50%, 02/01/05 $1,050,000 $ 1,099,571
7.25%, 06/01/05 650,000 644,839
----------
TOTAL AGENCY OBLIGATIONS-
COUPON NOTES
(Cost $1,761,351) 1,744,410
----------
CASH EQUIVALENTS--6.3%(b)
AGENCY OBLIGATIONS-
DISCOUNT NOTES--5.4%
Federal Home
Loan Bank
5.21%, 05/28/96 2,900,000 2,888,712
Federal National
Mortgage Assoc.
5.28%, 07/12/96 800,000 791,624
----------
3,680,336
----------
<CAPTION>
Maturity
----------
<S> <C> <C>
REPURCHASE AGREEMENT--0.9%
State Street Bank 4.75%
Dated 04/30/96
Due 05/01/96
Collateralized By:
U.S. Treasury Note
$625,000 Par; 8.00%
Due 10/15/96 621,081 621,000
----------
TOTAL CASH EQUIVALENTS
(Cost $4,301,376) 4,301,336
----------
TOTAL INVESTMENTS--99.9%
(Cost $66,176,922) 68,924,673
----------
OTHER ASSETS AND
LIABILITIES--0.1%
Other Assets 1,012,661
Liabilities (927,304)
-----------
85,357
----------
NET ASSETS--100.0%
Applicable to 6,538,196
outstanding $0.00001
par value shares
(unlimited shares authorized) $69,010,030
===========
NET ASSET VALUE PER SHARE $10.55
======
</TABLE>
See accompanying Notes to Statements of Net Assets.
60
<PAGE> 65
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCK--40.2%
DOMESTIC--29.6%
AEROSPACE/DEFENSE--0.5%
Alliant Techsystems
Inc.* 100 $ 4,700
BFGoodrich Co. 100 3,975
Boeing Co. 100 8,213
Coltec Industries Inc.* 200 2,600
Gencorp Inc. 100 1,338
General Dynamics Corp. 100 6,313
Lockheed Martin Corp. 200 16,125
McDonnell Douglas Corp. 100 9,650
Northrop Grumman Corp. 100 6,188
OEA, Inc. 100 3,925
Orbital Sciences Corp.
Class A* 100 1,375
Raytheon Co. 200 10,125
Rockwell International
Corp. 200 11,700
Rohr Industries Inc.* 100 1,825
Textron Inc. 100 8,575
Thiokol Corp. 100 4,275
Trimble Navigation
Ltd.* 100 2,419
United Technologies
Corp. 100 11,050
-------
114,371
-------
AIR TRANSPORTATION--0.2%
AMR Corp.* 100 8,925
America West Airlines,
Inc. Class B* 100 2,100
Atlantic Southeast
Airlines Inc. 100 2,500
Atlas Air Inc.* 100 4,525
Comair Holdings Inc. 100 3,706
Continental Airlines
Inc. Class B* 100 5,675
Delta Airlines Inc. 100 8,038
Mesa Airlines Inc.* 100 1,231
Offshore Logistics,
Inc.* 100 1,456
Southwest Airlines Co. 100 2,975
Trans World Airlines
Inc. (New)* 200 3,575
USAir Group, Inc.* 600 10,650
-------
55,356
-------
ALCOHOLIC BEVERAGES--0.2%
Adolph Coors Co.
Class B 500 9,406
Anheuser-Busch
Companies, Inc. 400 26,850
Brown Forman Corp.
Class B 100 3,950
Canandaigua Wine Co.,
Inc. Class A* 100 3,050
Seagram Ltd 300 10,163
-------
53,419
-------
APPAREL--0.3%
Authentic Fitness Corp. 100 2,388
Brown Group Inc. 100 1,600
Cone Mills Corp.* 100 1,138
Justin Industries Inc. 100 1,275
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Kellwood Co. 100 $ 1,625
Liz Claiborne 100 3,638
Men's Wearhouse, Inc. 100 3,688
NIKE, Inc. Class B 100 8,750
Nautica Enterprises
Inc. 100 4,625
Phillips-Van Heusen
Corp. 100 1,325
Reebok International
Ltd. 100 2,900
Springs Industries Inc. 400 18,400
St. John's Knits, Inc. 200 11,875
Stride Rite Corp. 200 1,925
V.F. Corp. 100 5,700
Wolverine World
Wide Inc. 100 3,088
------
73,940
------
AUTOMOTIVE PRODUCTS--0.1%
Armor-All Products
Corp. 100 1,550
Carlisle Cos. Inc. 100 4,650
Cooper Tire & Rubber 100 2,450
Discount Auto Parts
Inc.* 100 2,938
Goodyear Tire & Rubber 100 5,213
------
16,801
------
BANKS--2.1%
Associated Banc-Corp. 100 3,875
Banc One Corp. 507 17,618
Bancorp South, Inc. 100 2,413
Bank of Boston Corp. 100 4,838
Bank of New York
Co., Inc. 200 9,700
BankAmerica Corp. 100 7,575
Bankers Trust New York
Corp. 100 6,938
Barnett Banks, Inc. 100 6,338
Boatmens Bancshares
Inc. 100 3,863
CCB Financial Corp. 100 5,194
Centura Banks Inc. 100 3,650
Chase Manhattan Corp.
(New) 408 28,101
Citicorp 200 15,750
Citizens Bancorp 100 2,975
City National Corp. 100 1,413
Comerica Inc. 100 4,350
Corestates Financial
Corp. 100 3,900
Cullen/Frost
Bankers Inc. 100 4,975
F & M National Corp. 100 1,600
Fifth Third Bancorp 100 5,519
First Bank System Inc. 188 11,327
First Chicago NBD Corp. 281 11,591
First Citizens
BancShares Inc. 100 6,200
First Commercial Corp. 107 3,330
First Commonwealth
Financial Corp. 100 1,925
First Financial Bancorp 200 6,550
First Michigan Bank
Corp. 105 3,124
First Union Corp. 435 26,753
Fleet Financial
Group Inc. 189 8,127
</TABLE>
61
<PAGE> 66
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Fulton Financial Corp. 110 $ 2,241
Hancock Holding Co. 100 3,625
Imperial Bancorp 108 2,606
J.P. Morgan & Co. Inc. 200 16,825
Keycorp (New) 200 7,725
Keystone Financial Inc. 100 3,263
Long Island
Bancorp Inc. 100 2,794
MBNA Corp. 150 4,256
Magna Group Inc. 100 2,263
Mark Twain
Bancshares Inc. 100 3,775
Mellon Bank Corp. 100 5,375
Mid-Am, Inc. 100 1,850
National Bancorp of
Alaska, Inc. 100 6,050
National City Corp. 100 3,688
National Commerce
Bancorp 100 3,063
NationsBank Corp. 100 7,975
North Fork
Bancorporation 100 2,375
Norwest Corp. 300 10,838
ONBANCorp, Inc. 100 3,325
Old National Bancorp 100 3,388
One Valley Bancorp of
West Virginia Inc. 100 3,119
PNC Bank Corp. 300 9,075
People's Bank 100 2,138
Provident Bancorp Inc. 100 5,138
Regions Financial Corp. 76 3,510
Republic New York Corp. 100 5,938
Riggs National Corp. 100 1,256
Security Capital Corp. 100 5,850
Sumitomo Bank 100 2,513
Summit Bancorp 90 3,195
SunTrust Banks Inc. 100 7,050
Trust Company of
New Jersey 100 1,419
TrustCo Bank
Corp. NY 100 2,088
Trustmark Corp. 100 2,338
U S Trust Corp. (New) 100 5,513
U.S. Bancorp 100 3,225
UMB Financial Corp. 110 4,166
UST Corp. 100 1,313
United Carolina
Bancshares Corp. 150 3,581
Wachovia Corp. (New) 100 4,400
Wells Fargo & Co. 166 40,276
Westamerica Bancorp 200 9,450
Whitney Holding Corp. 100 3,031
-------
446,394
-------
BUSINESS MACHINES & SOFTWARE--2.2%
3COM Corp. 200 9,213
AST Research Inc.* 100 763
Apple Computer, Inc. 100 2,425
Atria Software, Inc. 100 5,463
Auspex Systems, Inc.* 100 1,925
BBN Corp.* 100 2,825
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Bay Networks, Inc. 200 $ 6,300
Bell & Howell Co.
(New)* 100 3,150
Borland International
Inc.* 100 1,631
Cabletron Systems Inc.* 100 7,538
Cellular Technical
Services Inc.* 100 2,856
Ceridian Corp.* 57 2,722
Cisco Systems Inc. 400 20,775
Compaq Computer Corp.* 200 9,325
Computer Associates
International Inc. 200 14,675
Computer Horizons Corp. 100 5,038
Computer Sciences
Corp.* 100 7,400
Compuware Corp.* 200 5,750
Comverse Technology
Inc. (New)* 100 2,350
Continuum Inc.* 100 5,700
Cray Research Inc.* 22 649
Data General Corp.* 300 4,613
Davidson &
Associates, Inc. 100 2,738
Dialogic Corp.* 100 4,613
Digital Equipment
Corp.* 100 5,975
Dynatech Corp. 100 2,600
EMC Corp.* 200 4,100
Exabyte Corp.* 100 1,738
FTP Software Inc.* 100 975
FileNet Corp.* 100 5,575
General Magic Inc.* 100 563
HCIA Inc.* 200 10,650
HNC Software Inc. 100 3,725
Hewlett Packard Co. 400 42,350
Honeywell Inc. 100 5,263
Hyperion Software Corp. 200 2,538
INSO Corp. 100 5,413
INTERSOLV Inc.* 100 1,100
In Focus Systems, Inc.* 100 5,075
Intergraph Corp.* 500 6,344
International Business
Machines 400 43,000
MICROS Systems, Inc. 100 2,800
McAfee Associates, Inc. 100 6,138
Medic Computer
Systems, Inc.* 100 9,363
Microsoft Corp.* 400 45,275
National Instruments
Corp.* 100 2,413
Network Equipment
Technologies* 100 2,550
Network General Corp.* 100 4,425
Novell Inc.* 300 4,369
Oak Technology 200 3,588
Oracle Systems Corp. 300 10,106
Pitney Bowes Inc. 100 4,875
Progress Software Corp. 100 1,581
Quarterdeck Corp.* 100 1,538
Rational Software Corp.
(New)* 100 5,325
Safeguard Scientifics
Inc. 100 6,700
</TABLE>
62
<PAGE> 67
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Seagate Technology,
Inc.* 88 $ 5,104
Security Dynamics
Technology 100 8,400
Sequent Computer
Systems, Inc.* 100 1,469
Shiva Corp. 200 12,000
Sierra On-Line Inc. 100 3,938
Silicon Graphics Inc.* 100 2,963
Softkey International
Inc.* 100 2,794
Stratus Computer Inc.* 100 2,813
Structural Dynamics
Research Corp.* 100 3,188
Sun Microsystems Inc. 200 10,838
Tandem Computers Inc.* 100 1,275
Tech Data Corp.* 100 1,938
Transaction Systems
Architects Inc.
Class A* 100 5,375
Trident Microsystems
Inc.* 100 1,775
Unisys Corp.* 200 1,200
Wang Laboratories
Inc. (New)* 100 2,363
Xerox Corp. 100 14,650
-------
470,550
-------
BUSINESS SERVICES--1.6%
ADVO Inc. 100 1,013
Access Health Inc. 150 8,325
Accustaff Inc. 300 8,944
Acxiom Corp. 100 2,731
Affiliated Computer
Services Inc.
Class A* 100 4,763
Alliance Entertainment
Corp.* 100 613
Alternative Resources
Corp. 100 3,588
American Business
Information, Inc. 100 1,975
American Business
Products, Inc. 100 2,175
American Management
Systems, Inc. 150 3,975
American Medical
Response, Inc.* 100 3,700
American Oncology
Resources Inc.* 100 4,813
Amresco Inc. 100 1,725
Apollo Group, Inc.
Class A 150 6,619
Automatic Data
Processing, Inc. 200 7,775
BISYS Group, Inc.* 100 3,800
Bowne & Co. Inc. 100 1,800
Browning Ferris
Industries Inc. 100 3,225
CDI Corp.* 100 2,950
Cambridge Technology
Partners* 100 6,738
Camco International
Inc. 100 3,563
Catalina Marketing
Corp.* 100 7,788
Cerner Corp. 100 2,044
Checkfree Corp.* 200 3,825
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Coastal Physician Group
Inc.* 100 $ 838
Corrections Corp.
of America 100 6,375
Coventry Corp.* 100 1,950
Dames & Moore Inc. 100 1,088
DeVRY Inc. 100 3,725
Deluxe Corp. 100 3,500
Dun & Bradstreet Corp. 200 12,175
Express Scripts Inc.
Class A* 100 4,888
Fair Issac & Co. Inc. 100 4,275
First Data Corp. 200 15,200
Fleming Companies, Inc. 400 5,500
Franklin Quest Co.* 100 2,700
G&K Services, Inc.
Class A 100 2,650
H & R Block Inc. 100 3,513
Health Management
Systems, Inc. 150 3,919
Heritage Media Corp.
Class A (New)* 100 3,838
Hon Industries Inc. 100 2,563
Ideon Group Inc. 100 1,313
Information Resources,
Inc.* 100 1,444
Integrated Health
Services Inc. 100 2,750
Interim Services Inc.* 200 8,638
Interpublic Group of
Companies, Inc. 100 4,675
Jacobs Engineering
Group Inc.* 100 2,775
John H. Harland Co. 300 7,875
Kinder Care Learning
Centers Inc.* 100 1,438
Laidlaw Inc. Class B
(Non Voting) 200 2,100
Magellan Health
Services Inc.* 100 2,150
Mariner Health
Group Inc.* 100 1,694
Maxicare Health Plans
Inc. (New)* 100 2,038
Medpartners/ Mullikin
Inc.* 200 5,775
Molten Metal
Technology, Inc.* 100 3,200
Moore Corp. Ltd. 100 1,825
National Auto Credit
Inc. 110 1,568
National Data Corp. 100 3,525
Netcom Online
Communications* 100 3,569
Orthodontic Centers of
America Inc. 100 3,925
PAXAR Corp. 100 1,738
PHH Corp. 100 5,688
PSINet Inc.* 100 1,406
Physician Corp. of
America* 100 1,488
Physician Reliance
Network* 100 4,363
</TABLE>
63
<PAGE> 68
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Physicians Computer
Network* 200 $ 2,225
R.R. Donnelley & Sons
Co. 100 3,600
Republic Industries
Inc.* 200 6,538
Robert Half
International Inc.* 100 5,750
Rollins, Inc. 200 4,500
SEI Corp. 100 2,363
SPS Transaction
Services, Inc. 100 2,675
Sanifill Inc. 100 4,338
Scientific Games
Holdings Corp. 100 3,200
Service Corp.
International 100 5,313
Standard Register Co. 100 2,525
Steris Corp. 100 3,238
Sun Healthcare
Group Inc.* 100 1,513
Synetic Inc.* 100 3,488
True North
Communications 100 2,638
U S Order Inc.* 100 2,013
U.S.A. Waste
Services Inc.* 200 5,200
Unifirst Corp. 100 2,400
United Waste
Systems, Inc.* 100 5,538
Universal Health
Services Inc. Class B 100 5,550
Valassis Communications
Inc.* 100 1,575
WMX Technologies Inc. 500 17,375
Western Waste
Industries* 100 3,888
Zebra Technologies
Corp. Class A 200 4,975
-------
356,542
-------
CHEMICAL--0.9%
A. Schulman Inc. 100 2,188
Air Products &
Chemicals Inc. 100 5,713
Calgon Carbon Corp. 100 1,250
Crompton & Knowles
Corp. 100 1,538
Cytec Industries Inc.* 100 8,288
Dexter Corp. 100 2,688
Dow Chemical Co. 200 17,775
E.I. Du Pont de
Nemours & Co. 300 24,113
Eastman Chemical Co. 100 6,725
Ferro Corp. 100 2,775
First Mississippi Corp. 100 2,325
Geon Co. 100 2,650
Great Lakes
Chemical Corp. 100 6,825
H.B. Fuller Co. 200 6,550
Hercules Inc. 100 6,050
Lawter International
Inc. 100 1,088
Lilly Industrial Inc.
Class A 100 1,450
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Minnesota Mining &
Manufacturing Co. 200 $ 13,150
Monsanto Co. 100 15,150
Morton International
Inc. 100 3,538
NCH Corp. 100 5,800
NL Industries Inc.
(New) 200 2,875
OM Group Inc. 200 7,588
PPG Industries Inc. 200 10,125
Praxair Inc. 100 3,863
Rohm & Haas Co. 100 6,638
Scotts Co. Class A* 100 1,725
Sterling Chemicals
Inc.* 200 2,275
Union Carbide Corp. 100 4,550
W.R. Grace & Co. 100 7,750
Wellman Inc. 100 2,400
-------
187,418
-------
CONSTRUCTION--0.2%
Apogee Enterprises,
Inc. 100 2,638
Blount International
Inc. Class A 150 4,650
Calmat Co. 100 1,738
Centex Construction
Products Inc. 100 1,438
Fluor Corp. 100 6,613
Del Webb Corp. 100 1,788
Kaufman & Broad
Home Corp. 100 1,413
Oakwood Homes Corp. 100 4,463
Pulte Corp. 100 2,650
Sherwin Williams Co. 100 4,675
Southdown Inc. 100 2,350
Stone & Webster, Inc. 100 3,400
TJ International Inc. 100 1,725
Toll Brothers, Inc.* 100 1,625
-------
41,166
-------
CONSUMER-DURABLE--0.2%
Bassett Furniture
Industries Inc. 100 2,550
Black & Decker Corp. 100 4,025
Furniture Brands
International Inc.* 200 1,975
Harman International
Industries Inc. (New) 100 4,725
Kimball International
Inc. Class B 100 2,875
La-Z-Boy Chair Co. 100 2,963
Masco Corp. 100 2,725
Maytag Corp. 100 2,150
Newell Co. 100 2,850
Outboard Marine Corp. 100 1,975
Regal Beloit Corp. 100 1,938
Toro Co. 200 6,375
Whirlpool Corp. 100 6,013
-------
43,139
-------
CONSUMER-NONDURABLE--0.4%
3DO Co.* 100 900
A.T. Cross Co. Class A 100 1,500
Acclaim
Entertainment Inc.* 200 2,063
</TABLE>
64
<PAGE> 69
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
American Greetings
Corp. Class A 100 $ 2,769
Applebee's
International, Inc. 100 2,625
Buffets Inc.* 100 1,394
CML Group, Inc. 200 900
Corning Inc. 200 6,950
Darden Restaurants Inc. 100 1,375
Department 56 Inc.* 100 2,488
Foxmeyer Health Corp. 100 1,950
Hasbro Inc. 100 3,675
IHOP Corp. (New)* 100 2,844
International Dairy
Queen Inc. Class A* 100 2,131
Landry's Seafood
Restaurants, Inc. 100 2,388
Luby's Cafeterias, Inc. 100 2,400
Mafco Consolidated
Group Inc.* 100 1,800
Mattel Inc. 250 6,500
McDonald's Corp. 400 19,150
Mikasa Inc. Class B* 100 1,188
Mohawk Industries Inc.* 100 1,450
Papa John's
International, Inc. 150 7,388
Premark International,
Inc. 100 5,138
Rubbermaid Inc. 100 2,825
Russ Berrie & Co. Inc. 100 1,600
Ryan's Family Steak
Houses Inc.* 200 1,950
Sbarro, Inc. 100 2,625
Shoney's Inc.* 100 1,113
Toy Biz Inc. Class A* 100 2,038
Wendy's International,
Inc. 100 1,913
Zenith Electronics
Corp.* 100 938
------
95,968
------
CONTAINERS--0.1%
ACX Technologies Inc. 100 1,938
Ball Corp. 600 18,675
Crown Cork & Seal Inc. 100 4,713
Gaylord Container Corp.
Class A* 200 2,050
Greif Brothers Corp.
Class A 100 2,625
Stone Container Corp. 100 1,700
------
31,701
------
ELECTRONICS--1.1%
AMETEK, Inc. 100 1,925
AMP Inc. 300 13,425
Advanced Micro Devices
Inc. 180 3,375
Allen Group Inc. 100 2,475
Alliance Semiconductor
Corp. 100 1,063
Applied Materials, Inc. 300 11,963
Augat Inc. 100 1,925
Belden Inc. 100 2,975
Burr Brown 100 1,900
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Cable Design
Technologies Corp. 100 $ 3,275
Checkpoint Systems Inc. 400 11,950
Cyrix Corp.* 100 3,069
Dallas Semiconductor
Corp. 100 1,950
Electroglas Inc. 200 3,925
FORE Systems, Inc. 200 15,763
General Instrument Corp.* 100 3,275
Gerber Scientific Inc. 100 1,688
Harris Corp. 100 6,175
Input/Output Inc. 200 6,950
Integrated Systems
Consulting Group
(Rights exp.
5/22/96)* 17 304
Intel Corp. 500 33,906
Itron, Inc.* 100 5,850
Kent Electronics Corp. 200 8,425
Kulicke & Soffa
Industries Inc. 100 1,875
LSI Logic Corp. 100 3,600
LTX Corp.* 100 969
Lattice Semiconductor
Corp.* 100 3,269
Marshall Industries* 100 3,188
Methode Electronics
Inc. Class A 100 1,650
Micron Technology Inc. 200 7,275
Motorola Inc. 400 24,500
National Semiconductor
Corp.* 100 1,575
Pioneer Standard
Electronics Inc. 100 1,625
Pittway Corp. Class A 150 7,163
Rexel Inc.* 100 1,338
S3 Inc. 200 2,850
Silicon Valley
Group Inc.* 100 2,663
Teledyne Inc. 100 3,713
Texas Instruments Inc. 200 11,300
VLSI Technology, Inc.* 200 3,488
VeriFone, Inc.* 100 4,200
Vicor Corp. 200 3,038
Wyle Electronics 100 4,188
Zilog Inc.* 100 3,763
-------
244,761
-------
ENERGY-DEVELOPMENT--0.6%
Amcol International
Corp. 100 1,150
BJ Services Co.* 100 3,838
Baker Hughes Inc. 100 3,175
Benton Oil & Gas Co.* 100 1,756
Burlington Resources
Inc. 100 3,725
Cabot Oil & Gas Corp.
Class A 100 1,650
Chesapeake Energy Corp. 150 10,613
Devon Energy Corp. 100 2,550
Dresser Industries Inc. 100 3,188
Falcon Drilling Inc.* 100 2,706
Global Industrial
Technologies Inc.* 100 1,838
Global Natural
Resources Inc.* 100 1,450
</TABLE>
65
<PAGE> 70
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Halliburton Co. 100 $ 5,738
Helmerich & Payne Inc. 400 14,750
Landmark Graphics
Corp.* 100 1,950
Louis Dreyfus Natural
Gas Corp.* 100 1,275
Nabors Industries Inc.* 300 4,613
Newfield Exploration
Co.* 100 3,425
Noble Drilling Corp.* 300 4,500
Occidental Petroleum
Corp. 200 5,150
Parker & Parsley
Petroleum Co. 100 2,463
Parker Drilling Co.* 200 1,525
Reading & Bates Corp.
(New)* 200 4,900
Rowan Cos. Inc.* 500 7,375
Schlumberger Ltd. 100 8,825
United Meridian Corp.* 100 3,100
Varco International
Inc.* 100 1,663
Vintage Petroleum Inc. 100 2,438
Weatherford Enterra Inc.* 200 7,050
Zeigler Coal Holding
Co. 100 1,475
-------
119,854
-------
FOOD-AGRICULTURE--1.5%
Archer-Daniels-
Midland Co. 400 7,550
Bob Evans Farms, Inc. 200 3,163
CPC International Inc. 100 6,913
Campbell Soup Co. 200 12,500
Chiquita Brands
International Inc. 200 2,925
Coca-Cola Co. 800 65,200
ConAgra, Inc. 200 7,725
Delta & Pine Land Co. 300 13,388
Dimon Inc. 100 1,700
Earthgrains Co.* 16 518
Flowers Industries,
Inc. 200 2,675
General Mills Inc. 100 5,550
H.J. Heinz Co. 300 10,163
Hershey Foods Corp. 100 7,588
Hudson Foods Inc.
Class A 100 1,325
International
Multifoods Corp. 100 1,888
Interstate Bakeries
Corp. (New) 100 2,375
J.M. Smucker Co.
Class A 100 2,113
JP Foodservice, Inc.* 100 2,200
Kellogg Co. 200 14,275
Lance Inc. 100 1,575
Mississippi Chemical
Corp. (New) 100 2,025
Pepsico Inc. 500 31,750
Pioneer HI Bred
International Inc. 100 5,575
Quaker Oats Co. 100 3,438
Ralcorp Holdings, Inc.* 100 2,200
Ralston Purina Co. 100 5,838
Richfood Holdings Inc. 100 3,269
Sara Lee Corp. 500 15,500
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Savannah Foods &
Industries Inc. 100 $ 1,088
Seaboard Corp. 200 43,100
Smithfield Foods Inc.* 100 2,975
Sysco Corp. 100 3,213
Unilever 200 27,300
WLR Foods, Inc. 100 1,213
Whitman Corp. 100 2,525
Wm Wrigley Junior Co. 100 5,263
-------
329,581
-------
GOLD--0.2%
Barrick Gold Corp. 400 12,250
Battle Mountain
Gold Co. 300 2,663
FMC Gold Co. 200 1,275
FirstMiss Gold Inc.* 100 3,088
Homestake Mining Co. 100 2,013
Newmont Mining Corp. 100 5,788
Placer Dome Inc. 200 5,550
Santa Fe Pacific Gold
Corp. 100 1,488
-------
34,115
-------
HEALTHCARE--2.6%
ALZA Corp.* 100 2,850
Abbott Laboratories 400 16,250
Acuson* 100 1,900
Advanced Tissue
Sciences Inc.* 100 1,700
Agouron Pharmaceuticals
Inc.* 100 4,075
Alpharma, Inc. 100 2,450
American Home Products
Corp. 300 31,650
Amgen Inc. 200 11,488
Amsco International,
Inc.* 100 1,450
Ballard Medical
Products 100 1,988
Baxter International
Inc. 200 8,850
Becton Dickinson & Co. 100 8,063
Biomet Inc.* 100 1,469
Block Drug Inc.
Class A 103 3,837
Boston Scientific
Corp.* 167 7,202
Bristol Myers
Squibb Co. 400 32,900
Carter Wallace Inc. 100 1,575
Columbia/HCA Healthcare
Corp. 200 10,625
Community Health
Systems Inc.* 100 4,338
Community Psychiatric
Centers 100 925
Copley Pharmaceutical
Inc.* 100 1,525
Cygnus Therapeutic
Systems, Inc.* 100 2,144
Datascope Corp.* 100 1,775
Diagnostic Products
Corp. 100 4,188
Eli Lilly & Co. 400 23,600
Enzo Biochem Inc. 100 1,838
Fresenius U.S.A. Inc.* 100 2,000
</TABLE>
66
<PAGE> 71
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Genesis Health
Ventures, Inc. 150 $ 4,444
Gilead Sciences Inc.* 100 3,075
Gulf South Medical
Supply Inc. 100 4,088
Haemonetics Corp.* 100 1,925
HealthSouth
Rehabilitation Corp. 117 4,344
Herbalife International
Inc. 100 1,375
Human Genome Sciences
Inc.* 100 3,988
Humana Inc.* 200 4,925
ICN Pharmaceuticals,
Inc. 101 2,273
Immulogic
Pharmaceutical Corp.* 100 1,094
Immunex Corp. (New)* 100 1,569
Interneuron
Pharmaceuticals* 100 3,913
Invacare Corp. 100 2,575
Isis Pharmaceuticals* 100 1,263
Isolyser Inc. 100 1,750
Johnson & Johnson 400 37,000
Kinetic Concepts Inc. 100 1,488
Ligand Pharmaceuticals
Inc. Class B 100 1,481
Lincare Holdings Inc.* 100 3,875
Liposome Inc.* 100 2,456
Living Centers of
America* 100 3,700
Mallinckrodt
Group Inc. 100 3,938
Medimmune Inc.* 100 1,675
Medisense Inc.* 100 4,488
Medtronic Inc. 200 10,625
Mentor Corp. 100 2,338
Merck & Co. Inc. 800 48,400
Multicare Cos. Inc. 100 2,838
Nellcor Puritan
Bennett Inc.* 100 4,900
Nexstar Pharmaceuticals
Inc.* 100 2,450
Novacare Inc.* 200 1,450
Omnicare Inc. 100 6,000
Owens & Minor Inc.
(New) 100 1,350
PDT Inc. 100 4,763
Patterson Dental Co.* 100 3,000
Pfizer Inc. 400 27,550
Pharmacia &
Upjohn Inc. 200 7,650
Physician Sales &
Service Inc. 100 2,738
Pyxis Corp.* 200 5,075
Quintiles Transnational
Corp. 200 14,625
Renal Treatment Centers
Inc. 400 11,600
Respironics Inc. 100 2,163
RoTech Medical Corp. 100 4,150
Roberts Pharmaceutical
Corp.* 100 1,875
Salick Health Care,
Inc.* 200 7,625
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Schering Plough Corp. 200 $ 11,475
Sepracor Inc.* 100 1,400
Sofamor/Danek
Group Inc.* 100 3,275
Sola International
Inc.* 100 3,275
Somatogen Inc.* 100 1,656
St. Jude Medical, Inc. 100 3,644
Sunrise Medical Inc.* 100 1,825
Target Therapeutics
Inc. 200 10,825
Tecnol Medical Products
Inc.* 100 1,963
Tenet Healthcare Corp.* 100 2,050
Thermedics Inc.* 100 3,025
U.S. Healthcare, Inc. 100 5,219
United Healthcare Corp. 300 17,550
Ventritex Inc. 100 1,556
Vertex Pharmaceuticals
Inc.* 100 2,950
VISX Inc.* 100 3,400
Vivra Inc. 150 4,744
Warner Lambert Co. 100 11,175
West Co Inc. 100 2,275
-------
561,804
-------
HOUSEHOLD PRODUCTS--0.4%
Avon Products, Inc. 100 8,888
Bush Boake Allen Inc.* 100 2,700
Church & Dwight Inc. 100 2,200
Clorox Co. 100 8,263
Colgate-Palmolive Co. 100 7,663
Dial Corp. 100 2,813
Gillette Co. 200 10,800
International Flavors &
Fragrances Inc. 100 4,913
Playtex Products Inc.* 200 1,750
Procter & Gamble Co. 500 42,250
-------
92,240
-------
IMAGING & PHOTO--0.2%
Avid Technology, Inc.* 100 1,944
BMC Industries, Inc. 100 2,675
C-Cube Microsystems,
Inc. 200 9,850
Eastman Kodak Co. 100 7,650
Electronics for
Imaging Inc. 200 12,275
Ultratech Stepper Inc. 100 2,600
-------
36,994
-------
INSURANCE--1.4%
Aetna Life &
Casualty Co. 100 7,125
Alexander & Alexander
Services 1,200 22,650
Alfa Corp. 100 1,300
Allstate Corp. 400 15,550
American Annuity
Group, Inc. 100 1,250
American Bankers
Insurance
Group, Inc. 100 3,938
American General Corp. 200 7,025
</TABLE>
67
<PAGE> 72
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
American International
Group, Inc. 300 $27,413
Aon Corp. 100 5,363
Argonaut Group, Inc. 100 3,125
Arthur J. Gallagher
& Co. 100 3,250
CMAC Investment Corp. 100 5,600
Capital Re Corp. 100 3,750
Capitol American
Financial Corp. 100 2,413
Chubb Corp. 100 9,463
Cigna Corp. 100 11,338
Citizens Corp. 100 1,950
Commerce Group Inc. 100 2,000
Crawford & Co.
Class A 100 1,625
Crawford & Co.
Class B 100 1,625
Enhance Financial
Services Group Inc. 100 2,713
Financial Security
Assured Holdings Ltd. 100 2,700
Foremost Corp. of
America 100 5,350
Fremont General Corp. 150 3,750
General Re Corp. 100 14,288
HCC Insurance
Holdings, Inc. 200 11,700
Harleysville Group Inc. 100 2,750
Highlands Insurance
Group Inc.* 10 190
Home Beneficial Corp.
Class B 100 2,588
Horace Mann Educators
Corp. (New) 100 3,288
ITT Hartford
Group Inc. 100 4,888
Jefferson-Pilot Corp. 300 15,825
John Alden Financial
Corp. 100 1,950
Kansas City Life
Insurance Co. 100 5,513
Liberty Corp. 100 3,175
Life Partners
Group Inc. 100 2,088
Lincoln National
Corp. Inc. 100 4,825
Marsh & McLennan
Companies 100 9,400
NAC Re Corp. 100 3,275
National Re Corp. 100 3,550
Orion Capital Corp. 100 4,438
Penncorp Financial
Group Inc. 100 3,063
Presidential Life Corp. 100 981
Providian Corp. 100 4,613
Reinsurance Group of
America Inc. 100 4,150
Safeco Corp. 200 6,588
Selective Insurance
Group, Inc. 100 3,150
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sierra Health
Services Inc.* 100 $ 3,300
St. Paul Companies,
Inc. 100 5,313
Torchmark Corp. 100 4,300
Transamerica Corp. 100 7,600
UNUM Corp. 100 5,950
USF&G Corp. 100 1,588
United Companies
Financial Corp. 100 3,213
United Insurance
Companies, Inc. 100 2,125
Vesta Insurance
Group Inc. 150 4,819
Zenith National
Insurance Corp. 100 2,513
-------
309,263
-------
MEDIA--0.8%
AMC Entertainment Inc.* 100 2,588
Cablevision Systems
Corp. Class A* 100 4,988
Central Newspapers Inc.
Class A 100 3,638
Century Communications
Corp. Class A* 300 2,906
Citicasters Inc. 100 3,000
Comcast Corp. Class A 200 3,488
Dow Jones & Co. Inc. 100 3,738
Evergreen Media* 100 3,963
Gannett Inc. 100 6,838
Harte Hanks
Communications (New) 150 3,544
Houghton Mifflin Co. 100 4,638
Interdigital Commerce
Corp.* 100 831
International Cabletel
Inc. 100 2,944
International Family
Entertainment Inc.
Class B 125 1,906
Jacor Communications
Inc.* 100 2,150
John Wiley & Son, Inc.
Class A 100 3,450
Knight-Ridder, Inc. 100 7,238
McClatchy Newspapers
Inc. Class A 100 2,425
McGraw-Hill, Inc. 200 8,825
Media General, Inc.
Class A 100 3,850
Meredith Corp. 100 4,538
Metromedia
International
Group., Inc. 100 1,350
New World
Communications
Class A* 100 1,869
New York Times Co.
Class A 100 3,250
Oak Industries Inc.* 100 2,700
Paxson Communications
Corp. 100 1,488
Pulitzer Publishing Co. 100 5,700
Regal Cinemas, Inc. 150 6,141
</TABLE>
68
<PAGE> 73
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Renaissance
Communications Corp. 100 $ 2,763
SBC Communications Inc. 400 20,000
TCA Cable TV Inc. 100 2,938
Tele Communications
Inc. (New)--TCI
Group Series A 500 9,594
Time Warner Inc. 300 12,263
Times Mirror Co. (New)
Series A 100 4,263
Tribune Co. (New) 100 6,975
United International
Holdings Inc.
Class A* 100 1,450
Viacom Inc. Class B* 300 12,300
Westcott
Communications Inc.* 100 2,131
Westwood One Inc.* 100 1,769
-------
180,430
-------
MISCELLANEOUS FINANCE--0.9%
AMCORE Financial, Inc. 100 2,025
Alex Brown Inc. 100 5,413
American Express Co. 200 9,700
Americredit Corp.* 100 1,438
Astoria Financial Corp. 100 5,338
Beneficial Corp. 100 5,525
Bok Financial Corp.
(New) 100 2,075
Cal-Federal Bancorp
Inc.* 200 3,575
Charter One
Financial Inc. 200 7,013
Coast Savings
Financial Inc.* 100 3,113
Collective Bancorp Inc. 100 2,419
Commercial Federal
Corp. 100 3,838
Dean Witter
Discover & Co. 100 5,450
Eaton Vance Corp. (Non
Voting) 100 3,088
Federal Home Loan
Mortgage Corp. 200 16,675
Federal National
Mortgage Assoc. 800 24,500
First Financial Corp. 100 2,363
Fund American
Enterprises
Holdings, Inc. 100 7,650
Glendale Federal Bank
(FSB) (New)* 100 1,750
Great Western Financial
Corp. 100 2,300
Green Tree Financial
Corp. 100 3,375
H.F. Ahmanson & Co. 100 2,375
Home Financial Corp. 100 1,400
Household International
Inc. 100 6,913
Interpool Inc. 100 1,800
Merrill Lynch & Co.
Inc. 200 12,075
Money Store Inc. 250 6,344
Morgan Stanley
Group Inc. 200 10,050
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Olympic Financial Ltd.* 100 $ 2,225
Peoples Heritage
Financial Group, Inc. 100 2,100
Pioneer Group Inc. 100 2,650
Quick & Reilly
Group, Inc. 100 3,050
Raymond James
Financial Inc. 100 2,263
Roosevelt
Financial Group Inc. 200 3,850
Salomon Inc. 100 4,063
Sovereign Bancorp Inc. 105 1,168
St. Paul Bancorp Inc. 100 2,431
Standard Financial Inc. 100 1,494
Student Loan Corp. 100 3,575
Travelers Group Inc. 200 12,300
Westcorp Inc. 100 1,963
-------
202,712
-------
MOTOR VEHICLE--0.7%
Arctco, Inc. 100 969
Arvin Industries, Inc. 500 11,250
Borg Warner
Automotive Inc. 100 3,813
Breed Technologies Inc. 100 2,150
Chrysler Corp. 300 18,825
Dana Corp. 100 3,325
Detroit Diesel Corp.* 100 1,913
Eaton Corp. 100 6,050
Echlin Inc. 100 3,438
Federal Mogul Corp. 100 1,900
Ford Motor Co. 700 25,113
General Motors Corp. 600 32,550
Gentex Corp.* 100 3,938
Genuine Parts Co. 100 4,425
Hayes Wheels
International Inc. 100 3,038
Mascotech Inc. 200 2,625
Modine
Manufacturing Co. 100 2,750
Standard Products Co. 100 2,538
Superior Industries
International, Inc. 100 2,738
TRW Inc. 100 9,388
Titan Wheel
International Inc. 100 1,613
-------
144,349
-------
NON-FERROUS--0.4%
Alcan Aluminum Ltd. 300 9,563
Aluminum Company of
America 200 12,475
Cyprus Amax
Minerals Co. 100 2,713
Echo Bay Mines Ltd 200 2,625
Engelhard Corp. 100 2,513
Freeport McMoran Copper
& Gold Class B 100 3,288
Hecla Mining Co.* 100 775
Inco Ltd. 100 3,363
</TABLE>
69
<PAGE> 74
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Minerals
Technologies Inc. 600 $ 23,100
Mueller Industries Inc. 100 4,025
Phelps Dodge Corp. 100 7,350
Reynolds Metals Co. 100 5,375
Stillwater Mining Co.* 100 2,375
Sunshine Mining &
Refining Co.* 600 975
Wolverine Tube Inc.* 200 7,350
-------
87,865
-------
OIL-DOMESTIC--0.4%
Amerada Hess Corp. 100 5,663
Atlantic Richfield Co. 300 35,325
Barrett Resources
Corp.* 100 2,775
Cross Timbers Oil Co. 100 2,000
Diamond Shamrock Inc. 100 3,388
Kerr-McGee Corp. 100 6,388
Phillips Petroleum Co. 200 8,300
Pogo Producing Co. 100 3,613
Quaker State Corp. 100 1,575
Smith International
Inc.* 100 2,975
Snyder Oil Corp. 100 900
Sun Inc. 100 3,100
USX Corp. (Marathon
Group) (New) 200 4,400
Unocal Corp. 200 6,425
-------
86,827
-------
OIL-INTERNATIONAL--1.0%
Amoco Corp. 300 21,900
Chevron Corp. 500 29,000
Exxon Corp. 800 68,000
Mobil Corp. 200 23,000
Royal Dutch
Petroleum Co. 300 42,975
Texaco Inc. 200 17,100
Western Atlas, Inc.* 100 6,000
-------
207,975
-------
PAPER--0.5%
Alco Standard Corp. 100 5,788
Caraustar Industries
Inc. 100 2,513
Champion International
Corp. 100 4,825
Chesapeake Corp. 100 2,888
Georgia Pacific Corp. 100 7,775
International Paper Co. 200 7,975
James River Corp. 100 2,675
Kimberly Clark Corp. 178 12,927
Longview Fibre Co. 200 3,525
Louisiana Pacific Corp. 100 2,513
Mead Corp. 100 5,563
P.H. Glatfelter Co. 200 3,325
Rock Tennessee Co.
Class A 100 1,756
Schweitzer Mauduit
International Inc. 10 271
Shorewood Packaging
Corp.* 100 1,725
Temple-Inland Inc. 100 4,850
Union Camp Corp. 100 5,438
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Wausau Paper
Mills Co. 125 $ 2,875
Westvaco Corp. 100 3,100
Weyerhaeuser Co. 200 9,900
Willamette
Industries, Inc. 100 6,175
------
98,382
------
PRODUCER GOODS-MANUFACTURING--2.0%
Albany International
Corp. Class A (New) 100 2,150
Allied Signal Inc. 300 17,438
AptarGroup, Inc. 100 3,763
Avery Dennison Corp. 100 5,700
BT Office Products
International Inc.* 100 1,738
BW/IP Holding, Inc.
Class A 100 2,075
Baldor Electric Co. 100 2,163
Blyth Industries Inc. 200 7,950
Case Corp. 100 5,050
Caterpillar Inc. 200 12,800
Coherent Inc.* 100 5,369
Collins & Aikman Corp.* 200 1,400
Cooper Industries Inc. 100 4,250
Credence Systems Corp. 100 2,163
Deere & Co. 300 11,663
Donaldson Inc. 100 2,625
Dover Corp. 100 5,150
Duriron Inc. 100 2,625
Emerson Electric Co. 200 16,725
FMC Corp. (New)* 100 6,938
Fisher Scientific
International, Inc. 100 3,738
General Electric Co. 1,200 93,000
Giddings & Lewis Inc. 200 3,700
Goulds Pumps Inc. 100 2,344
Greenfield Industries
Inc. 100 3,794
Griffon Corp.* 100 900
Helix Technology Corp. 100 3,769
Herman Miller Inc. 100 3,075
IDEX Corp. 100 3,925
ITT Industries Inc. 100 2,750
Illinois Tool
Works Inc. 100 6,725
Ingersoll Rand Co. 100 3,875
Insilco Corp.* 100 3,469
Interface Inc. Class A 100 1,306
Ionics Inc. 100 4,800
JLG Industries Inc. 100 5,475
Johnson Controls, Inc. 100 7,150
Juno Lighting Inc. 100 1,488
Kaydon Corp. 100 3,975
Kennametal Inc. 100 3,788
Keystone
International Inc. 100 2,188
Lincoln Electric Co.
Class A (Non Voting) 100 2,825
Lydall Inc. 100 2,350
Myers Industry Inc. 100 1,813
Navistar International
Corp.* 1,200 14,400
</TABLE>
70
<PAGE> 75
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Nu-Kote Holding Inc.
Class A 100 $ 1,775
Pall Corp. 100 2,800
Parker Hannifin Corp. 100 4,225
Precision Castparts
Corp. 100 4,338
Presstek Inc. 100 13,888
Raychem Corp. 100 7,788
Roper Industries 100 4,713
Standex International
Corp. 100 2,700
Stewart & Stevenson
Services, Inc. 100 2,950
TRINOVA Corp. 600 21,150
Teleflex Inc. 100 4,638
Tencor Instruments 100 2,469
Tenneco Inc. 200 10,975
Texas Industries Inc. 100 6,400
TriMas Corp. 200 4,725
Triarc Cos., Inc.
Class A* 100 1,263
Tyco Interest Ltd 100 3,863
U.S. Filter Corp. (New) 100 3,075
UNR Industries, Inc. 200 1,850
Valhi, Inc. (New) 500 3,250
W.W. Grainger, Inc. 100 6,900
WMS Industries Inc.* 100 1,813
Watts Industries Inc.
Class A 100 2,050
Westinghouse Air Brake
Co. (New) 100 1,413
Westinghouse Electric
Corp. 300 5,663
Westpoint Stevens Inc.
Class A 100 2,106
Wyman Gordon Co.* 100 1,825
X-Rite, Inc. 100 1,750
-------
438,712
-------
RAILROAD--0.3%
Burlington Northern
Santa Fe 100 8,750
CSX Corp. 200 10,250
Conrail Inc. 100 6,975
Florida East Coast
Industry Inc. 100 8,900
Norfolk Southern Corp. 100 8,400
Union Pacific Corp. 200 13,625
-------
56,900
-------
REAL PROPERTY--0.1%
Catellus Development
Corp.* 200 1,825
Insignia Financial
Group Class A (New) 400 8,800
Price Enterprises Inc. 100 1,600
-------
12,225
-------
RETAIL--1.3%
Albertson's Inc. 200 7,700
American Stores Co.
(New) 100 3,338
Arbor Drugs, Inc. 100 2,038
Best Buy Co., Inc.* 200 3,850
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Burlington Coat Factory
Warehouse* 100 $ 1,088
CDW Computer
Centers Inc.* 100 7,725
CUC International Inc. 100 3,288
Carson Pirie Scott & Co.*
100 2,425
Casey's General
Stores Inc. 100 2,156
Charming Shoppes Inc. 300 1,931
Circle K Corp.* 100 3,125
Circuit City Stores
Inc. 100 3,175
Claire's Stores Inc. 150 3,263
CompUSA Inc. 200 6,925
Dayton Hudson Corp. 100 9,550
Dillard Department
Stores Inc. Class A 100 4,013
Dollar Tree Stores Inc. 150 5,025
Duty Free
International Inc. 100 1,338
Family Dollar
Stores, Inc. 300 4,575
Federated Department
Stores Inc.* 100 3,338
Fingerhut
Companies, Inc. 100 1,275
Fred Meyer Inc.* 100 2,875
Fruit of the Loom Inc.
Class A* 100 2,638
Gap Inc. 200 6,025
Gymboree Corp.* 100 2,600
Harcourt General Inc. 100 4,400
Hollywood Entertainment
Corp. 100 1,631
Home Depot Inc. 200 9,475
Home Shopping
Network, Inc.* 400 4,700
J.C. Penney Inc. 200 9,900
Just for Feet Inc. 100 4,781
K Mart Corp. 300 3,038
Kroger Co.* 100 4,113
Lands' End, Inc.* 100 1,975
Limited Inc. 109 2,262
Lowe's Cos Inc. 100 3,238
MacFrugals Bargains-
Close-Out* 100 1,338
May Department
Stores Co. 200 10,200
Melville Corp. 100 3,888
Michaels Stores Inc.* 100 1,844
Nordstrom Inc. 100 5,075
Pier 1 Imports Inc. 100 1,338
Price Costco Inc.* 100 1,894
Proffitt's, Inc.* 100 3,288
Rite Aid Corp. 100 2,963
Ross Stores Inc. 100 3,463
Ruddick Corp. 100 1,325
Sears Roebuck & Co. 200 9,975
Service Merchandise
Co. Inc.* 300 1,425
Shopko Stores Inc. 100 1,550
Smart & Final Inc. 100 2,275
</TABLE>
71
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SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Smith's Food & Drug
Centers, Inc. Class B 100 $ 2,500
Sotheby's Holdings,
Inc. Class A 100 1,413
Spiegel, Inc. Class A
(Non Voting) 400 4,000
Sports Authority Inc.* 100 2,975
Stanhome Inc. 100 2,950
Stein Mart Inc.* 100 1,588
Tandy Corp. 100 5,188
Tiffany & Co. (New) 100 6,525
Toys 'R' Us, Inc.* 200 5,575
Waban Inc.* 100 2,450
Wal-Mart Stores, Inc. 1,600 38,200
Walgreen Co. 200 6,400
Williams-Sonoma Inc.* 100 2,506
Winn Dixie Stores Inc. 200 6,600
Woolworth Corp. 100 1,913
Zale Corp. (New)* 100 1,881
-------
289,297
-------
STEEL--0.2%
Armco Inc.* 300 1,688
Bethlehem Steel Corp.* 100 1,363
Birmingham Steel Corp. 100 1,600
Carpenter Technology
Corp. 100 3,763
Chaparral Steel Co. 100 1,513
Cleveland Cliffs Inc. 100 4,175
Intermet Corp.* 100 1,463
J & L Specialty
Steel Inc. 100 1,813
Lukens Inc. 100 2,638
National Steel Corp.
Class B* 100 1,363
Nucor Corp. 100 5,625
Oregon Steel Mills Inc. 100 1,588
USX Corp. (U.S. Steel
Group) 100 3,300
WHX Corp.* 100 1,150
Worthington
Industries Inc. 100 2,044
-------
35,086
-------
TELEPHONE--1.6%
360 Communications Co.* 100 2,350
AT&T Corp. 1,100 67,375
Airtouch
Communications Inc.* 500 15,625
Alltel Corp. 100 3,288
American Mobile
Satellite Corp.* 100 1,925
Ameritech Corp. (New) 600 35,025
Antec Corp.* 100 1,519
Arch Communications
Group, Inc.* 100 2,375
Aspect
Telecommunications
Corp. 100 5,750
Associated Group Inc.
Class A* 100 2,781
Bell Atlantic Corp. 200 13,000
BellSouth Corp. 600 24,000
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Boston Technology Inc.
(New)* 100 $ 1,750
C-TEC Corp. 100 2,988
Cellstar Corp.* 100 938
Comnet Cellular Inc.* 100 3,313
DSC Communications
Corp.* 100 3,138
GTE Corp. 600 26,025
General Datacom
Industries Inc.* 100 1,375
Geotek
Communications Inc.* 200 2,088
InterVoice, Inc.* 100 2,806
Lincoln
Telecommunications 100 1,681
Loral Space &
Communications* 100 1,438
MCI Communications
Corp. 500 14,688
Microcom Inc.* 100 2,450
Mobilemedia Corp.
Class A* 100 1,988
Nextel
Communications Inc.* 107 1,926
Northern Telecom Ltd 200 10,300
Nynex Corp. 200 9,825
Octel Communications
Corp. 100 4,500
Pacific Telesis Group 500 17,125
Pairgain Technologies
Inc.* 100 9,575
Sprint Corp. 300 12,638
Tellabs Inc. 100 5,538
U S WEST, Inc.
(Communications
Group) 400 13,100
U S West Inc. (Media
Group)* 300 5,850
Vanguard Cellular
Systems, Inc.
Class A* 200 4,300
Worldcom Inc.* 200 9,388
-------
345,744
-------
TOBACCO--0.3%
American Brands, Inc. 100 4,163
Loews Corp. 200 15,250
Philip Morris
Companies Inc. 600 54,075
UST Inc. 100 3,200
-------
76,688
-------
TRANSPORTATION-MISCELLANEOUS--0.3%
Air Express
International Corp. 100 2,788
Airbourne Freight Corp. 100 2,638
Amerco Inc.* 100 2,219
American Freightways
Corp.* 100 1,525
American President
Companies, Ltd. 100 2,388
Arnold Industries Inc. 100 1,600
Federal Express Corp.* 100 8,075
</TABLE>
72
<PAGE> 77
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Harper Group, Inc. 200 $ 3,850
Heartland Express, Inc. 100 2,950
J.B. Hunt Transport
Services Inc. 100 2,056
Kirby Corp.* 100 1,763
NACCO Industries, Inc.
Class A 200 12,625
Overseas Shipholding
Group 100 2,013
Rollins Truck Leasing
Corp. 100 1,088
Ryder System, Inc. 100 2,913
Shurgard Storage
Centers Inc. Class A 100 2,563
Swift Transportation
Inc. 100 1,900
TNT Freightways Corp. 100 2,256
Wabash National Corp. 100 1,975
Werner Enterprises Inc. 100 2,463
XTRA Corp. 100 4,550
Yellow Corp. 100 1,225
-------
67,423
-------
TRAVEL & RECREATION--0.5%
Anthony Industries,
Inc. 100 2,850
Aztar Corp.* 100 975
Bally Entertainment
Corp. 500 10,438
Bally Total Fitness
Holding Corp.* 25 138
Boyd Gaming Corp.* 200 2,800
Brunswick Corp. 100 2,200
Doubletree Corp.* 100 3,194
Harrahs
Entertainment Inc.* 100 3,450
Hilton Hotels Corp. 100 10,550
ITT Corp. (New)* 100 6,088
Marcus Corp. 100 2,788
Marriot International
Inc. 100 4,875
Players International
Inc. 100 1,138
Polaris Industries Inc. 100 3,488
Primadonna Resorts
Inc.* 100 1,913
Prime Hospitality
Corp.* 100 1,513
Rio Hotel &
Casino Inc.* 100 1,800
Speedway
Motorsports, Inc. 200 5,350
Station Casinos Inc.* 100 1,313
Stratosphere Corp.* 100 1,094
Topps Inc. 100 584
Walt Disney Co. 609 37,758
-------
106,297
-------
UTILITIES--1.3%
American Electric Power
Co., Inc. 100 4,063
Aquila Gas Pipeline
Corp. 100 1,388
Baltimore Gas &
Electric Co. 100 2,638
Carolina Power &
Light Co. 100 3,600
Central & South West
Corp. 200 5,450
Central Hudson Gas &
Electric Corp. 100 2,900
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Central Louisiana
Electric Co. (New) 100 $ 2,563
Central Maine
Power Co. 100 1,425
Cilcorp Inc. 100 4,313
Cinergy Corp. 100 2,900
Coastal Corp. 100 3,963
Commonwealth Energy
System (Shares of
Beneficial Interest) 100 4,588
Consolidated Edison Co. 200 5,875
Consolidated Natural
Gas Co. 100 4,675
DTE Energy Co. 100 3,100
Destec Energy, Inc.* 300 3,525
Dominion Resources Inc. 100 3,850
Duke Power Co. 200 9,400
Eastern Enterprises 300 10,763
Eastern Utilities
Association 100 2,038
Edison International 300 4,800
Enron Corp. 200 8,050
Entergy Corp. 200 5,300
FPL Group, Inc. 200 8,625
General Public
Utilities Corp. 100 3,175
Houston Industries Inc. 200 4,275
IES Industries Inc. 100 2,650
Indiana Energy Inc. 100 2,388
K N Energy Inc. 100 3,200
Laclede Gas Co. 100 2,350
MDU Resources
Group, Inc. 100 2,188
New Jersey Resources
Corp. 100 2,838
Niagara Mohawk Power
Corp. 100 750
NorAm Energy Co. 200 2,200
Northern States
Power Co. 100 4,675
Northwest Natural
Gas Co. 100 3,269
Ohio Edison Co. 100 2,088
Oneok Inc. 200 5,150
Orange & Rockland
Utilities, Inc. 100 3,413
Otter Tail Power Co. 200 7,325
P P & L Resources Inc. 100 2,263
Pacific Enterprises 100 2,575
Pacific Gas &
Electric Co. 300 6,825
Pacificorp 200 4,000
Panenergy Corp. 100 3,350
Peco Energy Co. 200 4,975
Piedmont Natural
Gas Inc. 100 2,163
Primark Corp.* 100 3,550
Public Service Co. of
New Mexico 100 1,750
Public Service Co. of
North Carolina Inc. 100 1,613
</TABLE>
73
<PAGE> 78
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Public Service
Enterprise Group 200 $ 5,225
Seagull Energy Corp.* 100 2,438
Sierra Pacific
Resources 100 2,425
Sig Corp. 100 3,338
Sonat Inc. 100 4,363
South Jersey
Industries Inc. 100 2,338
Southern Co. 500 11,000
Southwest Gas Corp. 100 1,663
Southwestern Energy Co. 100 1,388
Tejas Gas Corp. 100 5,000
Texas Utilities Co. 200 8,050
Tucson Electric
Power Co.* 500 1,438
UGI Corp. (New) 100 2,238
Unicom Corp. 300 8,250
Union Electric Co. 100 3,863
United Illuminating Co. 100 3,638
United Water
Resources Inc. 100 1,250
WPS Resources Corp. 100 3,163
Washington Energy Co. 100 1,938
Western Gas
Resources Inc. 100 1,475
Wicor Inc. 100 3,438
Williams Cos. Inc. 100 5,113
---------
277,822
---------
6,430,111
---------
INTERNATIONAL--10.6%
AUSTRALIA--0.2%
Australia & New Zealand
Banking Group 594 2,837
Broken Hill Proprietary
Co., Ltd. 1,134 17,451
Commonwealth Bank Group 523 4,293
National Australia Bank 820 7,356
News Corp., Ltd. 797 4,671
Western Mining Corp. 650 4,738
Westpac Banking Corp. 1,069 5,190
---------
46,536
---------
BELGIUM--0.1%
Electrabel 32 7,177
Electrabel, VVPR Strip 6 16
Petrofina SA 11 3,253
Societe Generale de
Belgique 24 1,868
Tractebel Investor
International 4 1,626
Tractebel Investor
International, VVPR
Strip 4 1,620
---------
15,560
---------
CANADA--0.3%
Alcan Aluminum Ltd. 132 4,198
BCE Inc. 183 7,198
Bank of Montreal 156 3,747
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Bank of Nova Scotia,
Halifax 135 $ 3,059
Barrick Gold Corp. 286 8,770
Canadian Imperial Bank
of Commerce 127 3,946
Canadian Pacific Ltd. 200 4,069
Imperial Oil Ltd. (New) 113 4,594
Northern Telecom Ltd. 149 7,672
Placer Dome Inc. 140 3,897
Royal Bank of Canada,
Montreal Quebec 184 4,358
Seagram Co. Ltd. 176 5,927
Thomson Corp. 345 5,739
Toronto-Dominion Bank 176 3,051
-------
70,225
-------
DENMARK--0.0%
Tele Danmark A/S
Series B 52 2,617
-------
2,617
-------
FRANCE--0.7%
AXA Groupe SA 106 6,316
Alcatel Alsthom CGE SA 88 8,276
BQE National de Paris 113 4,719
Carrefour 15 11,721
Cie Financiere de
Paribas (Bearer) 70 4,503
Cie Generale de Eaux 69 7,504
Compagnie de
Saint-Gobain SA 49 5,870
Danone Groupe 42 6,348
Elf Aquitaine 159 11,825
L'Air Liquide 39 7,087
L'Oreal SA 36 11,126
LVMH Moet Hennessy
Louis Vuitton 51 13,047
Lafarge Coppee SA 54 3,459
Lyonnaise des Eaux-
Dumez 30 3,013
Michelin (CGDE)
Class B (Reg.) 43 2,131
PSA Peugeot Citroen 29 4,052
Renault (Regie
Nationale) 140 4,245
Rhone-Poulenc SA A
Shares 188 4,511
Sanofi 60 4,842
Schneider SA 75 3,495
Societe Generale 51 5,922
Suez Group 93 3,853
TOTAL Class B 137 9,298
Union des Assurances de
Paris 176 3,811
-------
150,974
-------
GERMANY--0.8%
BASF AG 36 9,830
Bankgesell Berlin 13 2,671
Bayer AG 41 13,203
Bayerische Hypotheken &
Wechsel Bank AG 151 3,756
Bayerische Motoren
Werk AG 12 6,479
</TABLE>
74
<PAGE> 79
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Bayerische Vereinsbank AG 154 $ 4,527
Commerzbank AG 20 4,331
Daimler-Benz AG 30 16,432
Deutsche Bank AG 278 13,323
Dresdner Bank AG 260 6,542
Hoechst AG 34 11,451
Linde AG 5 3,057
Lufthansa AG 21 3,331
Mannesmann AG 21 7,174
Muenchener
Rueckversicherung (Reg.) 5 9,080
RWE AG* 120 4,672
RWE AG (Non Voting)* 70 2,037
Sap AG 30 3,890
Siemens AG 33 18,070
Thyssen AG 18 3,263
Veba AG 285 14,167
Vereinigte
Elektrizitatswerke
Westfalen Series B 12 3,449
Viag AG 12 4,707
Viag AG (New)* 3 1,177
Volkswagen AG 14 4,833
-------
175,452
-------
HONG KONG--0.6%
CITIC Pacific 2,000 7,860
Cheung Kong Holdings 2,000 14,285
Hang Seng Bank Ltd. 2,000 20,296
Henderson China 4 11
Henderson Land
Development Co. 1,000 7,175
Hongkong Electric
Holdings Ltd. 2,000 6,360
Hongkong
Telecommunications
Ltd. 8,400 16,017
Hutchison Whampoa Ltd. 2,000 12,410
New World
Development Co. 2,046 9,178
Sun Hung Kai Properties 1,000 9,534
Swire Pacific Ltd.
Class A 1,000 8,532
Wharf Holdings 2,000 7,407
-------
119,065
-------
ITALY--0.2%
Alleanza Assicurazioni 191 1,804
Assicurazioni Generali 469 11,695
Fiat SpA 1,924 6,559
Fiat SpA, di Risp
(Non-Convertible) 830 1,512
INA 1,382 2,123
STET 2,246 7,592
STET di Risp
(Non-Convertible) 627 1,644
Telecom Italia 3,888 7,928
Telecom Italia di Risp
(Non-Convertible) 1,145 1,899
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Telecom Italia Mob 3,367 $ 7,437
Telecom Italia Mob
di Risp 1,431 2,006
------
52,199
------
JAPAN--3.9%
Asahi Bank 1,000 12,906
Bank of Tokyo
Mitsubishi
(Bank of Tokyo shares) 800 18,431
Bank of Tokyo
Mitsubishi
(Mitsubishi Bank shares) 1,050 24,291
DDI Corp. 1 8,594
Dai-Ichi Kangyo
Bank, Ltd. 1,000 20,362
East Japan Railway Co. 1 5,344
Fuji Bank, Ltd. 1,000 21,892
Fujitsu Ltd. 1,000 10,325
Hitachi Ltd. 1,000 10,803
Industrial Bank of
Japan, Ltd. 1,000 26,767
Ishikawajima-Harima
Heavy Industries 1,000 4,971
Ito-Yokado Co., Ltd. 1,000 58,984
Joyo Bank 1,000 8,183
Kansai Electric
Power Co. 1,000 24,282
Kawasaki Heavy
Industries 1,000 5,172
Kawasaki Steel Co. 1,000 3,661
Kobe Steel 1,000 3,107
Kokusai Denki 1,000 98,466
Long-Term Credit
Bank of Japan 1,000 8,671
Matsushita Electric
Industrial Co., Ltd. 1,000 17,686
Mitsubishi Chemical
Corp. 1,000 5,487
Mitsubishi Electric
Corp. 1,000 7,877
Mitsubishi Heavy
Industries 1,000 8,929
NKK Corp. 1,000 3,136
Nippon Paper
Industries Co. 1,000 7,323
Nippon Steel Corp. 2,000 7,227
Nippon Telegraph &
Telephone Corp. 4 31,012
Nissan Motor Co., Ltd. 1,000 8,451
Nomura Securities
Co., Ltd. 1,000 21,796
Obayashi Corp. 1,000 9,302
Oki Electric Industry
Co., Ltd. 1,000 7,935
Omron Corp. 1,000 22,561
Osaka Gas Co. 1,000 4,006
Sakura Bank 1,000 11,759
Sanwa Bank 1,000 20,267
Seven-Eleven Japan Co. 1,100 77,922
Sumitomo Bank 1,000 21,414
Sumitomo Metal
Industries 1,000 3,212
Taisei Corp. 1,000 7,743
Tokai Bank 1,000 12,810
</TABLE>
75
<PAGE> 80
SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Tokyo Electric Power
Co., Inc. 1,000 $ 27,245
Tokyo Electron 1,000 37,188
Tokyo Gas & Electric
Industrial 1,000 3,929
Toshiba Corp. 1,000 7,782
Toyo Seikan 1,000 35,467
Toyo Trust &
Banking Co. 1,000 10,898
Toyota Motor Corp. 1,000 22,848
Yasuda Fire & Marine
Insurance Co. 1,000 7,887
-------
846,311
-------
NETHERLANDS--0.6%
ABN Amro
Holdings NV 181 9,370
Aegon NV 152 7,239
Akzo Nobel NV 42 4,878
Elsevier NV 386 5,812
Heineken NV 29 6,069
ING NV 168 12,971
Koninklijke PTT
Nederland 271 10,169
Philips Electronics NV 201 7,097
PolyGram NV 105 6,250
Royal Dutch Petroleum
Co. (Bearer) 314 44,731
Unilever NV, CVA 94 12,826
Wolters Kluwer NV, CVA 29 3,170
-------
130,582
-------
SINGAPORE--0.1%
Hong Kong Land Holdings 1,000 2,140
Singapore Airlines Ltd.
(alien market) 1,000 10,101
Singapore
Telecommunications 6,000 14,767
-------
27,008
-------
SPAIN--0.2%
Argentaria Corp. 50 2,024
Banco Bilbao-Vizcaya SA
(Reg.) 133 5,055
Banco de Santander SA
(Reg.) 68 3,159
Empresa Nacional de
Electricidad 152 9,548
Iberdrola SA 542 5,305
Repsol, SA 176 6,455
Telefonica
Internacional de
Espana, SA 550 9,794
-------
41,340
-------
SWEDEN--0.2%
ASEA AB 39 3,991
ASEA AB Series B 13 1,319
Astra AB Series A 294 13,071
Astra AB Series B 40 1,767
L.M. Ericsson Telephone
Series B 560 11,354
Sandvik AB Series A 72 1,587
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
Sandvik AB Series B 82 $ 1,808
Volvo AB Series A 65 1,490
Volvo AB Series B 167 3,829
-------
40,216
-------
SWITZERLAND--0.7%
CS Holding (Reg.) 108 9,808
Ciba-Geigy Ltd.
(Bearer) 1 1,154
Ciba-Geigy Ltd. (Reg.) 14 16,248
Nestle Ltd. (Reg.) 25 27,807
Roche Group
Holding AG 4 31,459
Roche Group Holding AG
(Bearer) 1 13,531
Sandoz Ltd. (Bearer) 2 2,178
Sandoz Ltd. (Reg.) 21 22,935
Schweizerische
Bankgesellschaft
(Bearer) 12 11,927
Schweizerische
Bankgesellschaft
(Reg.) 13 2,827
schweizerische
Bankverein (Bearer) 14 5,243
Schweizerische
Bankverein (Reg.) 16 2,990
Winterthur (Reg.) 4 2,510
Zurich Versicherung
(Reg.) 27 7,546
-------
158,163
-------
UNITED KINGDOM--2.0%
Abbey National 769 6,575
Allied Domecq PLC 610 4,715
Argyll Group 669 3,343
Associated British
Foods 443 2,654
BAA 605 4,973
BAT Industries 1,806 13,648
BOC Group 193 2,682
BTR 2,162 10,415
Barclays 944 10,473
Bass 517 6,098
Boots Co. 556 5,302
British Airways 567 4,430
British Gas 2,541 9,027
British Petroleum Co. 3,245 29,285
British Sky Broadcast 1,030 7,411
British Steel 806 2,408
British Telecom 3,652 20,038
Cable & Wireless 1,294 10,158
Cadbury Schweppes 577 4,473
Commercial Union
Assurance Co. 389 3,376
General Electric Co. 1,608 8,678
Glaxo Wellcome 2,029 24,603
Granada Group 343 4,252
Grand Metropolitan,
Inc. 1,251 8,230
Great University Stores 589 6,424
Guinness 1,184 8,520
HSBC Holdings 500 7,403
HSBC Holdings (Hong
Kong) 1,036 15,338
Hanson Industries 2,132 6,323
Imperial Chemical
Industries 424 5,744
</TABLE>
76
<PAGE> 81
SchwabFunds(R)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
J. Sainsbury PLC 1,060 $ 5,840
Kingfisher 391 3,499
Lloyds TSB Group 2,345 11,243
Marks & Spencer PLC 1,640 10,949
National Power
Development 695 5,864
National Westminster
Bancorp 1,007 9,285
Pearson, Inc. 309 3,265
Powergen 425 3,570
Prudential Corp. 1,114 7,672
RTZ Corporation PLC 571 8,991
Rank Organisation PLC 486 3,899
Reed International 329 5,661
Reuters Holdings PLC 977 11,060
Royal Bank of Scotland 473 3,692
RTZ Corp. (Bearer) 57 884
Scot & Newcastle 358 3,705
Shell Transport &
Trading Co. (Reg.) 1,941 25,610
SmithKline Beecham PLC
Series A 810 8,590
SmithKline Beecham PLC
(New) 782 8,299
Standard Chartered PLC 566 5,300
Tesco 1,209 5,105
Thorn Emi 251 6,962
Unilever 475 8,695
Vodafone Group 1,228 4,908
Zeneca Group 554 11,320
---------
440,867
---------
2,317,115
---------
TOTAL COMMON STOCK
(Cost $7,997,220) 8,747,226
---------
PREFERRED STOCK--0.1%
AUSTRALIA--0.0%
News Corp. (Limited
Voting Shares) 388 1,996
---------
GERMANY--0.1%
Henkel KGaA 9 3,451
Sap AG (Non-Voting) 24 3,187
Volkswagen AG
(Non-Voting) 6 1,525
---------
8,163
---------
ITALY--0.0%
Fiat SpA 701 1,340
---------
GERMANY--0.0%
Lufthansa AG
(Non-Voting) 12 1,879
---------
<CAPTION>
Number
of Shares Value
--------- -----------
<S> <C> <C>
UNITED STATES--0.0%
Teledyne, Inc. Series E 1 $ 15
----------
TOTAL PREFERRED STOCK
(Cost $13,259) 13,393
----------
</TABLE>
<TABLE>
<CAPTION>
Par
----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--54.1%(a)
U.S. Treasury Bonds
10.00%, 05/15/10 $ 300,000 363,567
7.25%, 05/15/16 470,000 478,968
8.13%, 08/15/19 325,000 362,622
U.S. Treasury Bonds
7.13%, 02/15/23 2,850,000 2,864,849
6.25%, 08/15/23 775,000 699,368
U.S. Treasury Notes
5.88%, 05/31/96 200,000 200,142
6.25%, 01/31/97 800,000 804,440
5.63%, 10/31/97 1,100,000 1,095,402
5.13%, 02/28/98 150,000 147,674
5.88%, 08/15/98 800,000 795,952
5.00%, 02/15/99 600,000 582,204
7.00%, 04/15/99 300,000 306,216
7.50%, 10/31/99 500,000 518,265
7.13%, 02/29/00 200,000 205,100
5.75%, 10/31/00 1,050,000 1,023,666
6.38%, 08/15/02 525,000 520,790
6.50%, 05/15/05 150,000 147,984
6.50%, 08/15/05 650,000 641,030
----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $12,122,972) 11,758,239
----------
AGENCY OBLIGATIONS-
COUPON NOTES--1.8%(a)
Federal National
Mortgage Assoc.
7.250%, 06/01/05 400,000 396,824
----------
TOTAL AGENCY OBLIGATIONS-
COUPON NOTES
(Cost $403,958) 396,824
----------
CASH EQUIVALENTS--3.4%(b)
AGENCY OBLIGATIONS-
DISCOUNT NOTES--2.3%
Federal Home Loan Bank
5.21%, 05/28/96 500,000 498,054
----------
</TABLE>
77
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SchwabFunds(R)
- --------------------------------------------------------------------------------
SCHWAB ASSET DIRECTOR(R)-CONSERVATIVE GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Maturity Value
-------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT--1.1%
State Street Bank 4.75%
Dated 04/30/96
Due 05/01/96
Collateralized By:
U.S. Treasury Note
$245,000 Par; 8.00%
Due 10/15/96 $242,032 $ 242,000
----------
TOTAL CASH EQUIVALENTS
(Cost $740,054) 740,054
----------
TOTAL INVESTMENTS--99.6%
(Cost $21,277,463) 21,655,736
----------
OTHER ASSETS AND
LIABILITIES--0.4%
Other Assets 296,971
Liabilities (218,792)
----------
78,179
----------
NET ASSETS--100.0%
Applicable to 2,123,836
outstanding $0.00001
par value shares
(unlimited shares authorized) $21,733,915
===========
NET ASSET VALUE PER SHARE $10.23
======
</TABLE>
NOTES TO STATEMENTS OF NET ASSETS
(a) Interest rates represent stated coupon rate of security.
(b) Interest rates represent effective yield at the time of purchase.
- ---------------
*Non-Income Producing Security
See accompanying Notes to Financial Statements.
78
<PAGE> 83
SchwabFunds(R)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
------Schwab Asset Director(R)----------
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
<S> <C> <C> <C>
Investment income:
Dividends (net of foreign tax
withheld of $18,774, $7,667 and
$2,379, respectively) $ 519,839 $ 274,650 $ 64,508
Interest 450,271 607,495 301,956
-------- -------- --------
Total investment income 970,110 882,145 366,464
-------- -------- --------
Expenses:
Investment advisory and
administration fee 264,862 189,136 65,101
Transfer agency and
shareholder service fees 89,480 63,897 21,993
Custodian fees 141,565 122,061 85,816
Registration fees 41,952 34,105 17,293
Professional fees 18,854 17,495 15,300
Shareholder reports 24,964 17,779 6,341
Trustees' fees 4,671 3,526 1,540
Amortization of deferred
organization costs 1,630 1,630 1,630
Insurance and other expenses 2,583 2,314 2,044
-------- -------- --------
590,561 451,943 217,058
Less expenses reduced and absorbed (272,011) (224,468) (138,760)
-------- -------- --------
Total expenses incurred by Fund 318,550 227,475 78,298
-------- -------- --------
Net investment income 651,560 654,670 288,166
-------- -------- --------
Net realized gain (loss) on
investments and foreign currency
transactions:
Proceeds from sales of investments 37,502,807 22,479,790 8,331,437
Cost of investments sold (37,849,936) (22,724,569) (8,402,243)
-------- -------- ---------
Net realized loss from changes
in market value (347,129) (244,779) (70,965)
Net realized loss from changes
in foreign exchange rates (72) (69) (8)
-------- -------- --------
Net realized loss on
investments sold (347,201) (244,848) (70,973)
Net realized gain (loss) on
foreign currency transactions 3,590 1,675 (103)
-------- -------- --------
Net realized loss on
investments sold and
foreign currency
transactions (343,611) (243,173) (71,076)
</TABLE>
Statement continued on next page.
79
<PAGE> 84
SchwabFunds(R)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (continued)
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
------Schwab Asset Director(R)----------
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
<S> <C> <C> <C>
Net unrealized gain (loss) on
investments and foreign currency
translation:
Net unrealized gain from changes
in market value $ 6,422,873 $ 3,049,139 $ 453,450
Net unrealized loss from changes
in foreign exchange rates (549,278) (301,388) (75,177)
-------- -------- --------
Net unrealized gain on
investments from changes in
market value and foreign
exchange rates 5,873,595 2,747,751 378,273
Net unrealized loss on translating
assets and liabilities into the
reporting currency (271) (12) (242)
-------- -------- --------
Net unrealized gain on
investments and foreign
currency translation 5,873,324 2,747,739 378,031
-------- -------- --------
Net gain on investments 5,529,713 2,504,566 306,955
-------- -------- --------
Increase in net assets resulting
from operations $ 6,181,273 $ 3,159,236 $ 595,121
======== ======== ========
</TABLE>
See accompanying Notes to Financial Statements.
80
<PAGE> 85
SchwabFunds(R)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
------Schwab Asset Director(R)----------
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
<S> <C> <C> <C>
Operations:
Net investment income $ 651,560 $ 654,670 $ 288,166
Net realized loss on investments
sold and foreign currency
transactions (343,611) (243,173) (71,076)
Net unrealized gain on investments
and foreign currency
translation 5,873,324 2,747,739 378,031
----------- ----------- -----------
Increase in net assets resulting
from operations 6,181,273 3,159,236 595,121
----------- ----------- -----------
Dividends to shareholders from net
investment income (158,402) (150,875) (214,428)
----------- ----------- -----------
Capital share transactions:
Proceeds from shares sold 97,345,157 71,109,119 24,570,535
Net asset value of shares issued
in reinvestment of dividends 152,276 138,204 193,730
Less payments for shares redeemed (8,664,601) (5,246,654) (3,412,043)
----------- ----------- -----------
Increase in net assets from
capital
share transactions 88,832,832 66,000,669 21,352,222
----------- ----------- -----------
Total increase in net assets 94,855,703 69,009,030 21,732,915
Net assets:
Beginning of period 1,000 1,000 1,000
----------- ----------- -----------
End of period (including
undistributed net investment
income of $493,158, $503,795
and $73,738, respectively) $94,856,703 $69,010,030 $21,733,915
=========== =========== ===========
Number of Fund shares:
Sold 9,610,666 7,030,800 2,440,024
Reinvested 14,842 13,523 19,030
Redeemed (828,084) (506,227) (335,318)
----------- ----------- -----------
Net increase in shares outstanding 8,797,424 6,538,096 2,123,736
Shares outstanding:
Beginning of period 100 100 100
----------- ----------- -----------
End of period 8,797,524 6,538,196 2,123,836
=========== =========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
81
<PAGE> 86
SchwabFunds(R)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
1. DESCRIPTION OF THE FUNDS
The Schwab Asset Director(R) - High Growth Fund, Schwab Asset
Director - Balanced Growth Fund and Schwab Asset Director - Conservative Growth
Fund (the "Funds") are series of Schwab Capital Trust (the "Trust"), a no-load,
open-end investment management company organized as a Massachusetts business
trust on May 7, 1993 and registered under the Investment Company Act of 1940, as
amended.
In addition to the three Funds described above, the Trust also offers the Schwab
International Index Fund(TM), Schwab Small-Cap Index Fund(R) and Schwab S&P 500
Fund. The assets of each series are segregated and accounted for separately.
The investment objective of the Schwab Asset Director - High Growth Fund (the
"High Growth Fund") is to provide high capital growth with less volatility than
an all-stock portfolio. The investment objective of the Schwab Asset
Director - Balanced Growth Fund (the "Balanced Growth Fund") is to provide a
maximum total return including both capital growth and income. The investment
objective of the Schwab Asset Director - Conservative Growth Fund (the
"Conservative Growth Fund") is to provide income and more growth potential than
an all-bond portfolio. Each Fund invests in a diversified mix of stocks, bonds
and cash equivalents.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in conformity with generally
accepted accounting principles for investment companies. The preparation of
financial statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
Security valuation -- Investments in securities traded on an exchange are valued
at the last quoted sale price for a given day, or if a sale is not reported for
that day, at the mean between the most recent quoted bid and asked prices.
Unlisted securities for which market quotations are readily available are valued
at the mean between the most recent bid and asked prices. Securities for which
no quotations are readily available are valued at fair value as determined by
the Funds' investment manager pursuant to guidelines adopted in good faith by
the Board of Trustees. Bonds and notes are generally valued at prices obtained
from an independent bond-pricing service. These securities are valued at the
mean between the representative quoted bid and asked prices, or if such prices
are not available, at prices for securities of comparable maturity, quality and
type. Short-term securities with 60 days or less to maturity are stated at
amortized cost, which approximates market value.
Security transactions and investment income -- Security transactions are
accounted for on a trade date basis (date the order to buy or sell is executed).
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of premium and accretion of discount on investments. Realized gains
and losses from security transactions are determined on an identified cost
basis. For callable bonds purchased at a premium, the excess of the purchase
price over the call value is amortized against interest income through the call
date. If the call provision is not exercised, any remaining premium is amortized
through the final maturity date.
82
<PAGE> 87
SchwabFunds(R)
- --------------------------------------------------------------------------------
Repurchase agreements -- Repurchase agreements are fully collateralized by U.S.
Treasury or government agency securities. All collateral is held by the Funds'
custodian and is monitored daily to ensure that its market value at least equals
the repurchase price under the agreement.
Foreign currency translation -- The accounting records of the Funds are
maintained in U.S. dollars. Investment securities and all other assets and
liabilities of the Funds denominated in a foreign currency are translated into
U.S. dollars at the exchange rates on April 30. Purchases and sales of foreign
securities, foreign income receipts and foreign expense payments are translated
into U.S. dollars at the exchange rate in effect on the dates of the respective
transactions.
The Funds separate within their statement of operations the portion of realized
and unrealized gains and losses resulting from changes in foreign exchange rates
from that arising from changes in securities' market values.
Forward currency contracts -- A forward currency contract ("Forward") is an
agreement between two parties to buy and sell a currency at a set price on a
future date. The value of the Forward fluctuates with changes in currency
exchange rates. The Forward is marked-to-market daily and the change in value is
recorded by the Funds as an unrealized gain or loss. When the Forward is closed,
the Funds record a realized gain or loss equal to the difference between the
value at the time the contract was opened and the value at the time the contract
was closed. The Funds engage in Forwards in connection with the purchase and
sale of portfolio securities to minimize the uncertainty of changes in future
exchange rates. The Funds could be exposed to risk if counterparties to the
contracts are unable to meet the terms of the contracts or if the value of the
foreign currency changes unfavorably.
Deferred organization costs -- Costs incurred in connection with the
organization of the Funds are amortized on a straight-line basis over a
five-year period from each Fund's commencement of operations.
Expenses -- Expenses arising in connection with a Fund are charged directly to
that Fund. Expenses common to all series of the Trust are allocated to each
series in proportion to their relative net assets.
Federal income taxes -- It is each Fund's policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all net investment income and realized net capital
gains, if any, to shareholders. Therefore, no federal income tax provision is
required. Each Fund is considered a separate entity for tax purposes.
At April 30, 1996, (for financial reporting and federal income tax purposes),
net unrealized gain for the High Growth Fund, Balanced Growth Fund and
Conservative Growth Fund aggregated $5,873,595, $2,747,751 and $378,273,
respectively, of which $7,575,579, $4,123,657 and $931,787, respectively,
related to appreciated securities and $1,701,984, $1,375,906 and $553,514,
respectively, related to depreciated securities.
83
<PAGE> 88
SchwabFunds(R)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
3. TRANSACTIONS WITH AFFILIATES
Investment advisory and administration agreement -- The Trust has an investment
advisory and administration agreement with Charles Schwab Investment Management,
Inc. (the "Investment Manager"). For advisory services and facilities furnished,
each Fund pays an annual fee, payable monthly, of .74% of each Fund's average
daily net assets not in excess of $1 billion, .69% of such assets over $1
billion and .64% of such assets over $2 billion. Under this agreement, the High
Growth Fund, Balanced Growth Fund and Conservative Growth Fund incurred
investment advisory and administration fees of $264,862, $189,136 and $65,101,
respectively, for the period ended April 30, 1996, before the Investment Manager
reduced its fee (see Note 4).
Sub-advisory agreement -- The Investment Manager has a sub-advisory agreement
with Symphony Asset Management, Inc. ("Symphony") to serve as sub-adviser to the
Funds. Symphony does not receive compensation directly from the Funds. However,
the Investment Manager pays Symphony an annual fee, payable monthly, of .08% of
the Funds' aggregate average net assets on the first $100 million, .06% of the
next $150 million, .04% of the next $600 million and .02% of such net assets
over $850 million.
Transfer agency and shareholder service agreements -- The Trust has transfer
agency and shareholder service agreements with Charles Schwab & Co., Inc.
("Schwab"). For services provided under these agreements, Schwab receives an
annual fee, payable monthly, of .05% of each Fund's average daily net assets for
transfer agency services and .20% of such assets for shareholder services. For
the period ended April 30, 1996, the High Growth Fund, Balanced Growth Fund and
Conservative Growth Fund incurred transfer agency and shareholder service fees
of $89,480, $63,897 and $21,993, respectively, before Schwab reduced its fees
(see Note 4).
Officers and trustees -- Certain officers and trustees of the Trust are also
officers and/or directors of the Investment Manager and/or Schwab. During the
period ended April 30, 1996, the Trust made no direct payments to its officers
or trustees who were "interested persons" within the meaning of the Investment
Company Act of 1940, as amended. The Funds incurred fees aggregating $9,737
related to the Trust's unaffiliated trustees.
4. EXPENSES REDUCED AND ABSORBED BY THE INVESTMENT MANAGER AND SCHWAB
The Investment Manager and Schwab reduced a portion of their fees and absorbed
certain expenses in order to limit each Fund's ratio of operating expenses to
average net assets. For the period ended April 30, 1996, the total of such fees
and expenses reduced and absorbed by the Investment Manager was $183,280,
$160,571 and $116,767 for the High Growth Fund, Balanced Growth Fund and
Conservative Growth Fund, respectively, and the total of such fees reduced by
Schwab was $88,731, $63,897 and $21,993 for the High Growth Fund, Balanced
Growth Fund and Conservative Growth Fund, respectively.
84
<PAGE> 89
SchwabFunds(R)
- --------------------------------------------------------------------------------
5. BORROWING AGREEMENT
The Trust has an agreement with State Street Bank and Trust Company, the Funds'
custodian, whereby each Fund may borrow up to $10,000,000, on a temporary basis,
to fund redemptions. Amounts borrowed under this arrangement bear interest at
periodically negotiated rates and may be collateralized by the assets of the
Fund. During the period ended April 30, 1996, no borrowings were made under this
arrangement.
6. INVESTMENT TRANSACTIONS
Purchases, sales and maturities of investment securities, other than short-term
obligations, for the period ended April 30, 1996, were as follows:
<TABLE>
<CAPTION>
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
------------ ----------- -----------
<S> <C> <C> <C>
Purchases $126,123,992 $88,257,569 $29,443,551
Proceeds of sales and
maturities $37,849,936 $22,724,569 $8,402,243
</TABLE>
7. COMPOSITION OF NET ASSETS
At April 30, 1996, net assets for each Fund consisted of:
<TABLE>
<CAPTION>
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
<S> <C> <C> <C>
Capital paid in $88,833,832 $66,001,669 $21,353,222
Accumulated undistributed
net investment income 493,158 503,795 73,738
Accumulated net realized
loss on investments sold
and foreign currency
transactions (343,611) (243,173) (71,076)
Net unrealized gain on
investments 5,873,595 2,747,751 378,273
Net unrealized loss on
translating assets and
liabilities into the
reporting currency (271) (12) (242)
----------- ----------- -----------
Total $94,856,703 $69,010,030 $21,733,915
=========== =========== ===========
</TABLE>
At April 30, 1996, the High Growth Fund's Statement of Net Assets included:
$398,586 payable for investments purchased, $78,838 payable for Fund shares
redeemed, $13,851 payable for investment advisory and administration fee and
$161,244 receivable for Fund shares sold. The Balanced Growth Fund's Statement
of Net Assets included: $316,281 payable for investment purchased, $140,768
payable for Fund shares redeemed, $9,088 payable for investment advisory and
administration fee and $116,223 receivable for Fund shares sold. The
Conservative Growth Fund's Statement of Net Assets included: $84,926 payable for
Fund shares redeemed, $2,867 payable for investment advisory and administration
fee and $15,048 receivable for Fund shares sold.
85
<PAGE> 90
SchwabFunds(R)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
For the period November 20, 1995
(commencement of operations) to April 30, 1996 (Unaudited)
8. COMMITMENTS
At April 30, 1996, the Funds had various open Forward contracts as follows:
The High Growth Fund and Balanced Growth Fund had open Forward contracts which
obligated the Funds to deliver U.S. dollars in exchange for foreign currencies
at specified future dates as follows:
High Growth Fund
<TABLE>
<CAPTION>
Contract In Exchange Settlement Unrealized
Currency Amount For Date Value Gain (Loss)
- ----------------------- ------------ ----------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Swedish krona 64,555 $ 9,543 05/02/96 $ 9,519 ($ 24)
Netherlands guilder 78,400 45,875 05/03/96 45,754 (121)
Swiss franc 21,000 16,935 05/06/96 16,914 (21)
Italian lira 174,152,000 111,422 05/07/96 111,493 71
Pound sterling 35,000 52,745 05/07/96 52,687 (58)
Spanish peseta 3,264,670 25,754 05/08/96 25,663 (91)
Belgian franc 315,000 10,032 05/14/96 10,006 (26)
French franc 125,000 24,272 05/31/96 24,190 (82)
---------- -------- -------
$ 296,578 $296,226 ($352)
========== ======== =======
</TABLE>
Balanced Growth Fund
<TABLE>
<CAPTION>
Contract In Exchange Settlement Unrealized
Currency Amount For Date Value Gain (Loss)
- ------------------------ ----------- ----------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Canadian dollar 17,500 $ 12,853 05/02/96 $ 12,853 $ --
Danish krona 72,375 12,288 05/02/96 12,263 (25)
Deutsche mark 13,400 8,772 05/02/96 8,753 (19)
Netherlands guilder 66,400 38,853 05/03/96 38,751 (102)
Italian lira 9,262,900 5,926 05/07/96 5,930 4
Pound sterling 82,000 123,574 05/07/96 123,438 (136)
Spanish peseta 3,758,000 29,649 05/08/96 29,544 (105)
Belgian franc 421,000 13,408 05/14/96 13,374 (34)
French franc 244,000 47,379 05/31/96 47,218 (161)
---------- -------- -------
$ 292,702 $292,124 ($578)
========== ======== =======
</TABLE>
The Conservative Growth Fund had open Forward contracts which obligated the Fund
to deliver foreign currencies in exchange for U.S. dollars at specified future
dates as follows:
<TABLE>
<CAPTION>
Contract In Exchange Settlement Unrealized
Currency Amount For Date Value Gain (Loss)
- ------------------------ ----------- ----------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Canadian dollar 4,200 $ 3,084 05/02/96 $ 3,085 ($ 1)
Deutsche mark 4,500 2,945 05/02/96 2,939 6
Australian dollar 9,700 7,639 05/06/96 7,620 19
Swiss franc 1,800 1,453 05/06/96 1,450 3
Pound sterling 3,100 4,672 05/07/96 4,667 5
---------- -------- -------
$ 19,793 $ 19,761 $ 32
========== ======== =======
</TABLE>
86
<PAGE> 91
SchwabFunds(R)
- --------------------------------------------------------------------------------
9. FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the
period from November 20, 1995 (commencement of operations) to April 30, 1996:
<TABLE>
<CAPTION>
High Balanced Conservative
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value at beginning of period....... $ 10.00 $ 10.00 $ 10.00
Income from investment operations
- ---------------------------------
Net investment income...................... .08 .11 .15
Net realized and unrealized gain on
investments and foreign currency
transactions............................. .72 .47 .19
----------- ----------- -----------
Total from investment operations........... .80 .58 .34
Less distributions
- ------------------
Dividends from net investment income....... (.02) (.03) (.11)
Distributions from realized gain on
investments.............................. -- -- --
----------- ----------- -----------
Total distributions........................ (.02) (.03) (.11)
----------- ----------- -----------
Net asset value at end of period............. $ 10.78 $ 10.55 $ 10.23
=========== =========== ===========
Total return (%)............................. 8.03 5.81 3.37
- ----------------
Ratios/Supplemental data
- ------------------------
Net assets, end of period.................. $94,856,703 $69,010,030 $21,733,915
Ratio of expenses to average
net assets (%)........................... .89* .89* .89*
Ratio of net investment income to
average net assets (%)................... 1.82* 2.56* 3.28*
Portfolio turnover rate (%)................ 52 42 46
Average commission rate.................... $ .02 $ .02 $ .02
</TABLE>
The Investment Manager and Schwab have reduced a portion of their fees and
absorbed certain expenses in order to limit each Fund's ratio of operating
expenses to average net assets. Had these fees and expenses not been reduced and
absorbed, the ratio of expenses to average net assets and the ratio of net
investment income to average net assets for the High Growth Fund for the period
ended April 30, 1996, would have been 1.65%* and 1.06%*, respectively. With
respect to the Balanced Growth Fund, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets for the period
ended April 30, 1996 would have been 1.77%* and 1.68%*, respectively. With
respect to the Conservative Growth Fund the ratio of expenses to average net
assets and the ratio of net investment income to average net assets for the
period ended April 30, 1996 would have been 2.47%* and 1.70%*, respectively.
* Annualized
87
<PAGE> 92
THIS SPACE RESERVED FOR YOUR COMMENTS AND QUESTIONS.
A SCHWAB REPRESENTATIVE WILL BE HAPPY TO ASSIST YOU.
<PAGE> 93
THE SCHWABFUNDS FAMILY(R)
The SchwabFunds Family includes a variety of funds to help meet your investment
needs. You can diversify your portfolio with one investment in any of the three
Asset Director(R) Funds, or choose from several equity markets with our equity
funds, including two new funds, the Schwab S&P 500 Fund and the Schwab Analytics
Fund(TM). You can also select from different maturities with our bond fund
choices, and take advantage of an array of money market funds.
SCHWAB ASSET ALLOCATION FUNDS
Schwab Asset Director - High Growth Fund
Schwab Asset Director - Balanced Growth Fund
Schwab Asset Director - Conservative Growth Fund
SCHWAB EQUITY FUNDS
Schwab 1000 Fund(R)
Schwab S&P 500 Fund
Schwab Small-Cap Index Fund(R)
Schwab International Index Fund(TM)
Schwab Analytics Fund
SCHWAB BOND FUNDS
Schwab Government Bond Funds-
Long-Term and Short/Intermediate Term
Schwab Tax-Free Bond Funds-
Long-Term and Short/Intermediate Term
Schwab California Tax-Free Bond Funds-
Long-Term and Short/Intermediate Term
SCHWAB MONEY MARKET FUNDS
Schwab offers several money market funds that seek high current income with
safety and liquidity. (1) Choose from taxable or tax-exempt alternatives. Many
can be linked to your Schwab account to "sweep" cash balances automatically when
you're between investments. Or, for your larger cash reserves, choose one of our
Value Advantage Investments(TM).
Please call the number below for a free prospectus and brochure for any of the
SchwabFunds(R). Each prospectus provides more complete information, including
charges and expenses. Please read it carefully before investing.
1-800-2 NO-LOAD
1-800-266-5623
1. Investments in money market funds are neither insured nor guaranteed by the
U.S. government, and there is no assurance that the Funds will be able to
maintain a stable share price of $1.
<PAGE> 94
--------------
BULK RATE
U.S. POSTAGE
PAID
CHARLES SCHWAB
--------------
[SCHWABFUNDS FAMILY(R) LOGO]
101 Montgomery Street
San Francisco, California 94104
INVESTMENT ADVISER
Charles Schwab Investment Management, Inc.
101 Montgomery Street, San Francisco, CA 94104
DISTRIBUTOR
Charles Schwab & Co., Inc.
101 Montgomery Street, San Francisco, CA 94104
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
TF4138R(6/96) CRS 10323 Printed on recycled paper.
