NPORT-EX 2 NPORT_2MQ7_3986830133.htm
Schwab Annuity Portfolios
Schwab VIT Balanced Portfolio
Portfolio Holdings as of March 31, 2021 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.    
 
Security Number
of Shares 		Value ($)
Affiliated Underlying Funds 98.9% of net assets
 
U.S. Stocks 23.1%
Large-Cap 19.1%
Schwab U.S. Large-Cap ETF 167,986 16,131,696
Small-Cap 4.0%
Schwab U.S. Small-Cap ETF 34,168 3,405,524
    19,537,220
 
International Stocks 18.0%
Developed-Market Large-Cap 11.0%
Schwab International Equity ETF 246,492 9,273,029
Developed-Market Small-Cap 2.0%
Schwab International Small-Cap Equity ETF 42,895 1,690,921
Emerging-Market 5.0%
Schwab Emerging Markets Equity ETF 132,325 4,205,288
    15,169,238
 
Real Assets 6.1%
Real Estate 6.1%
Schwab U.S. REIT ETF 125,499 5,156,754
 
Fixed Income 48.8%
Inflation-Protected Bond 3.7%
Schwab U.S. TIPS ETF 50,838 3,109,252
Intermediate-Term Bond 36.1%
Schwab U.S. Aggregate Bond ETF 565,820 30,525,989
Security Number
of Shares 		Value ($)
Treasury Bond 9.0%
Schwab Short-Term U.S. Treasury ETF 147,646 7,575,716
    41,210,957
 
Money Market Fund 2.9%
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) 2,401,704 2,402,425
Total Affiliated Underlying Funds
(Cost $67,653,523)   83,476,594
Issuer
Rate, Maturity Date 		Face
Amount ($) 		Value ($)
Short-Term Investment 0.0% of net assets
 
Time Deposit 0.0%
Brown Brothers Harriman
0.01%, 04/01/21 (b) 14,710 14,710
Total Short-Term Investment
(Cost $14,710)   14,710
(a) The rate shown is the 7-day yield.
(b) The rate shown is the current daily overnight rate.
   
ETF — Exchange-traded fund
REIT — Real Estate Investment Trust
TIPS — Treasury Inflation Protected Securities
 
1

 

Schwab VIT Balanced Portfolio
Portfolio Holdings (Unaudited) continued
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended March 31, 2021:
Affiliated Underlying Funds
Value at
12/31/20 		Gross
Purchases 		Gross
Sales 		Realized
Gains (Losses) 		Net Change
in Unrealized
Appreciation
(depreciation)
Value at
03/31/21 		Balance
of Shares
Held at
03/31/21 		Distributions
Received*
Schwab Emerging Markets Equity ETF $4,273,959 $135,339 ($368,080) $86,280 $77,790 $4,205,288 132,325 $—
Schwab International Equity ETF 9,206,208 340,943 (678,622) 61,839 342,661 9,273,029 246,492 —
Schwab International Small-Cap Equity ETF 1,668,761 77,500 (134,397) 17,918 61,139 1,690,921 42,895 —
Schwab Short-Term U.S. Treasury ETF 7,405,967 490,763 (309,504) (2,086) (9,424) 7,575,716 147,646 7,735
Schwab U.S. Aggregate Bond ETF 30,253,118 2,096,211 (703,424) (8,924) (1,110,992) 30,525,989 565,820 111,244
Schwab U.S. Large-Cap ETF 16,004,835 642,380 (1,385,469) 397,028 472,922 16,131,696 167,986 49,400
Schwab U.S. REIT ETF 4,995,106 156,683 (400,343) 16,146 389,162 5,156,754 125,499 3,240
Schwab U.S. Small-Cap ETF 3,394,104 59,159 (442,326) 215,009 179,578 3,405,524 34,168 7,404
Schwab U.S. TIPS ETF 3,101,269 242,082 (190,744) 1,674 (45,029) 3,109,252 50,838 —
Schwab Variable Share Price Money Fund, Ultra Shares 2,502,279 146 (100,000) 26 (26) 2,402,425 2,401,704 179
Total $82,805,606 $4,241,206 ($4,712,909) $784,910 $357,781 $83,476,594   $179,202
* Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds.
   
The following is a summary of the inputs used to value the fund’s investments as of March 31, 2021:
Description Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 		Other Significant
Observable Inputs
(Level 2) 		Significant
Unobservable Inputs
(Level 3) 		Total  
Assets          
Affiliated Underlying Funds1 $83,476,594 $— $— $83,476,594  
Short-Term Investment1 — 14,710 — 14,710  
Total $83,476,594 $14,710 $— $83,491,304  
1 As categorized in Portfolio Holdings.
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
2

 

Schwab VIT Balanced Portfolio
Notes to Portfolio Holdings
Under procedures approved by the fund’s Board of Trustees (the Board), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:
•  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
•   Mutual funds: Mutual funds are valued at their respective net asset values (NAVs).
•  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.
•  Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America (GAAP), the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
•  Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, mutual funds and ETFs. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.
•  Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
•  Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
3

 

Schwab VIT Balanced Portfolio
Notes to Portfolio Holdings (continued)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
REG68012MAR21
4