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SUPPLEMENT DATED JULY 15, 1997
to the:
SCHWAB ASSET DIRECTOR(R)-HIGH GROWTH PORTFOLIO
PROSPECTUS
dated April 30, 1997
SCHWAB S&P 500 PORTFOLIO PROSPECTUS
dated April 30, 1997
The section of the prospectus entitled "Organization and management of the
funds -- The Investment Manager" is hereby amended to read as follows:
THE INVESTMENT MANAGER. The Investment Manager manages each Fund's business
affairs. Its actions are subject to the authority of the Board of Trustees and
officers of the Trust. The Investment Manager also manages each Fund's
investments. It places all orders for each Fund's securities transactions. The
Investment Manager, founded in 1989, is a wholly owned subsidiary of The Charles
Schwab Corporation and is the investment adviser and administrator of the Schwab
mutual fund complex, which as of June 30, 1997, had aggregate net assets of
approximately $49 billion.
Geri Hom is the portfolio manager for the S&P 500 Fund and for the equity
portions of the High Growth Fund. She joined Schwab in March 1995 as Fund
Manager -- Equities and currently manages the 5 Schwab index funds and the
equity portions of the 3 Schwab Asset Director(R) funds with combined assets of
over $1.7 billion. For 4 years before joining Schwab, she was a Principal for
Wells Fargo Nikko Investment Advisors. For the prior 7 years, she was Vice
President and Manager of the Domestic Equity Fund Management Group for Wells
Fargo Nikko.
Stephen B. Ward, Senior Vice President and Chief Investment Officer, has overall
responsibility for the day-to-day operations of the Funds and currently manages
the bond positions of the Schwab Asset Director(R) funds. He is the supervising
Portfolio Manager for the Investment Manager.
