UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05547
Laudus Trust
(Exact name of registrant as specified in charter)
101 Montgomery Street, San Francisco, California 94104
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Jeffrey Mortimer
Laudus Trust
101 Montgomery Street, San Francisco, California 94104
(Name and address of agent for service)
Laudus Trust
101 Montgomery Street, San Francisco, California 94104
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 627-7000
Date of fiscal year end: March 31
Date of reporting period: March 31, 2009
Item 1: | Report(s) to Shareholders. |
Annual Report March 31, 2009 |
COMMAND PERFORMANCETM
Laudus Mondrian Fundstm
Laudus Mondrian International Equity Fund
Laudus Mondrian Global Equity Fund
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Fixed Income Fund
Adviser
Charles Schwab Investment Management, Inc.
Subadviser
Mondrian Investment Partners Limited
Laudus Mondrian Funds
In This Report | ||
2 | ||
3 | ||
4 | ||
6 | ||
8 | ||
10 | ||
12 | ||
14 | ||
16 | ||
44 | ||
53 | ||
55 | ||
58 |
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: ALPS Distributors, Inc.
Distributor: ALPS Distributors, Inc.
The industry/sector classification of the funds’ portfolio holdings uses the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by CSIM and certain affiliates. Charles Schwab & Co, Inc. and ALPS Distributors, Inc. are unaffiliated entities.
Performance at a Glance
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.laudus.com.
Total Return for the Report Period | ||
Laudus Mondrian International Equity Fund | ||
Investor Shares (Ticker Symbol: LIEQX)* | -45.31% | |
Select Shares® (Ticker Symbol: LIEFX)* | -45.16% | |
Institutional Shares (Ticker Symbol: LIEIX)* | -45.15% | |
Benchmark: MSCI EAFE® Index (Net) | -47.37% | |
Performance Details | pages 6-7 | |
Laudus Mondrian Global Equity Fund | ||
Investor Shares (Ticker Symbol: LGEQX)* | -41.35% | |
Select Shares® (Ticker Symbol: LGESX)* | -41.27% | |
Institutional Shares (Ticker Symbol: LGEVX)* | -41.25% | |
Benchmark: MSCI World® Index (Net) | -44.22% | |
Performance Details | pages 8-9 | |
Laudus Mondrian Emerging Markets Fund | ||
Investor Shares (Ticker Symbol: LEMIX) | -42.02% | |
Select Shares® (Ticker Symbol: LEMSX) | -41.82% | |
Institutional Shares (Ticker Symbol: LEMNX) | -41.78% | |
Benchmark: MSCI Emerging Markets Index (Net) | -47.07% | |
Performance Details | pages 10-11 | |
Laudus Mondrian International Fixed Income Fund | ||
Investor Shares (Ticker Symbol: LIFIX) | -5.69% | |
Select Shares® (Ticker Symbol: LIFSX) | -5.49% | |
Institutional Shares (Ticker Symbol: LIFNX) | -5.40% | |
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index | -6.44% | |
Performance Details | pages 12-13 | |
All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Redemption fees charged on shares sold or exchanged 30 days or less after purchasing them may affect share level returns.
Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. Investing in emerging markets accentuates these risks. Investments in emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries.
Bond funds are subject to increased risk of loss of principal during periods of volatile interest rates.
Please see prospectus for further detail and investor eligibility requirements.
* | Not Annualized. For the period 6/17/08 (commencement of operation) to 3/31/09. |
2 Laudus Mondrian Funds
From the President
Jeffrey Mortimer is President, CEO, and CIO of Laudus Funds and SVP of Charles Schwab Investment Management, Inc. He joined the firm in 1997 and has held a variety of executive positions at Schwab.
Dear Shareholder,
In the past year, financial markets were besieged with volatility and turmoil, while many economies across the globe experienced slower growth or recession, making investment conditions some of the most difficult in history. Although returns were relatively better in March, the fiscal year was characterized by two particularly bearish periods – the end of 2008 and the beginning of 2009. In this environment, major international equity indices experienced significant declines. The MSCI EAFE Index, for example, was down 46% during the reporting period, while the MSCI Emerging Markets Index declined 47%. On average, returns were down in all major sectors. The fixed income space, usually a bright spot in down markets, was not immune to the current market malady, with the Citigroup Non-U.S. Dollar World Government Bond Index down around 6%.
Within the Laudus Mondrian Fund Family, returns in the funds followed the general downdraft on equity and fixed income prices. In both the international and emerging market fund groups, returns were down between 40-50% on average, indicating that various un-hedged investment strategies were similarly affected by overall market declines. On the fixed income side, returns were down around 6%. In general, modest outperformance relative to funds’ respective benchmarks was primarily attributable to security selection and country allocation. Relative to peers, the Laudus Mondrian Funds performed well in spite of the down market. For more detail, please see the portfolio manager’s commentary in the following pages.
The Laudus Mondrian Funds are sub-advised by Mondrian Investment Partners Limited, a London-based institutional investment manager. Founded in 1990, Mondrian is renowned for its international expertise and its adherence to a consistent value-oriented investment philosophy. Mondrian manages more than $50 billion in assets for some of the world’s largest companies and public retirement plans.
In closing, I would remind you that should you have any questions about the funds we are available to answer them at 1-800-447-3332.
Thank you for investing with us.
Sincerely,
Laudus Mondrian Funds 3
The Investment Environment
The past twelve months produced significant negative returns and high volatility in global capital markets, and nearly all major equity indexes lost more than 40%. Generally, U.S. equity markets fared slightly better than international ones, while fixed income outperformed both. Commodity indexes also lost value. Globally, losses were highly synchronized, exhibiting a pattern typical during periods of global economic weakness.
In the U.S., large-cap stocks lost about 38% for the period, but with a wide spread between growth- and value-style equities, as growth outperformed value by about 8%. U.S. small-caps slightly outperformed U.S. large-caps, losing just under 38%. U.S. small-cap growth stocks outperformed value, but still lost more than 36%. Internationally, the results were worse. International large-cap stocks lost nearly 47%, but outperformed international small-cap stocks, which were down more than 48%. As occurred in the U.S., international growth stocks outperformed their value counterparts, but the difference was less, with growth leading by around 3%.
What caused these weak returns, especially during a relatively short period of time of twelve months? In essence, the credit crisis that began in the summer of 2007 dominated the capital markets during the period. In September 2008, Lehman Brothers declared bankruptcy, while the U.S. government intervened in the operations of Freddie Mac, Fannie Mae and AIG. Several banks also failed, especially during the second half of the reporting period. Companies in all areas but especially in the financial services sector deleveraged their balance sheets. Over the past several years, individuals and companies borrowed significant amounts of capital. Individuals typically used the loans to purchase homes and autos. In turn, many financial companies leveraged their balance sheets to buy these loans and build and sell marketable securities composed of them, such as mortgage-backed securities. On the open market, these securities could be bought by institutional investors and hedge funds, for example. As credit tightened, many of the loans – both consumer and corporate – went into default, requiring firms to acquire capital to shore up their balance sheets or to sell assets to reduce their debt.
Investors and lenders were worried about the value of the debt on company balance sheets. In some cases, there were no bidders for the corporate obligations and securitized assets that were being offered for sale. Without bids, it became difficult to value these securities, and as default rates rose prices became even more depressed. Eventually, the solvency of corporations with large portfolios of leveraged debt was questioned. In this environment, investors took defensive action by reducing their corporate equity exposure. Thus, the equity markets declined precipitously as investors migrated to the safety of government debt.
A few areas performed well. One notable area was the U.S. Treasury market, generally considered the lowest default risk fixed income investment. Short-term Treasury bills gained about 1% during the period, and Treasury bonds maturing in the next ten to twenty years returned about 12%. More diversified fixed income investments also generated positive returns, typically around 3%, as investors flocked to defensive investments.
From a global sector perspective, financial stocks were down nearly 60% on average, primarily due to impacts following the credit crunch. Materials, down more than 50%, and Energy stocks, off about 40%, did poorly due to the deleveraging process described above and due to investors’ movements out of equity positions. Industrials and Consumer Discretionary stocks also lost between 40-50%, on average. On a relative basis,
4 Laudus Mondrian Funds
The Investment Environment continued
global Health Care and Consumer Staples firms performed better, down around 22% and 30%, respectively; these sectors are generally considered to be defensive investments in times of economic or market stress.
Among major developed economies, Japan performed the best during the period, losing about 36% in U.S. dollar terms. The U.S. did slightly worse, down nearly 38%. Most European countries lost more than 45%. It is important to note that through most of the reporting period, the U.S. dollar rallied against the British pound and the Euro, pushing the European returns lower for U.S. dollar-based investors. Emerging markets as a group performed in line with developed markets, losing about 47% in the twelve-month period. A few emerging markets such as Russia lost nearly 70%, but a surprising number such as China did relatively well, losing about 35%.
The dollar’s gains also impacted commodity prices, and most commodity indexes were down more than 50% for the twelve-month period. Crude oil lost 67% for the period, in contrast to the rise in prices over the last few years. Metals and agricultural prices also declined, partially in response to expectations of slowing economies around the globe and thus a likelihood of lower demand. Gold was one relative bright spot among commodity returns, losing about 1% for the period.
Nothing in this report represents a recommendation of a security by the investment adviser.
Manager views and portfolio holdings may have changed since the report date.
Laudus Mondrian Funds 5
Laudus Mondrian International Equity Fund
The Laudus Mondrian International Equity Fund Investor Shares returned -45.31% for the period since inception on 6/17/08, outperforming the benchmark MSCI EAFE Index (Net), which returned -47.37%. For the entire period, index returns were negative across all developed markets. The fund outperformed the benchmark primarily as a result of good stock selection.
All markets were significantly weaker during the period, but the overall impact of country allocation was very positive for returns. Exposure to the non-benchmark Taiwanese market was beneficial to returns. Additionally, the fund also benefited from underweight positions in smaller European markets such as Ireland, Austria and Greece. The fund’s underweight position in Germany was also helpful, as the German equity market fell sharply over the year. These positive contributors were partially offset by the underweight position in Switzerland and overweight position in Belgium. The Swiss market was one of the best performing markets in the index, helped by exposure to the defensive Health Care and consumer staples sectors.
Sector positioning was very positive for returns over the year as the positive impact from overweight positions in the more defensive Telecommunications Services, Health Care and Consumer Staples sectors and underweight positions in the Materials and Energy sectors all added to returns. Stock selection in the Information Technology sector was also strong, helped by the performance of Taiwan Semiconductor Manufacturing Company (TSMC) in Taiwan and Canon in Japan. In the health care sector, the portfolio’s holdings in GlaxoSmithKline in the UK and Novartis increased returns. GlaxoSmithKline was one of the few stocks to produce a positive return over the period.
In Japan, the holdings in Seven & i Holdings (parent company to the “7/11” convenience store chain) and Kao Corporation, both consumer staples stocks, also added positively to returns as they benefited from improving margins from rising consumer prices over the earlier part of the reporting period. The portfolio’s other Japanese holdings such as KDDI and Takeda Pharmaceutical were also helpful for performance. In Germany, the holdings in Deutsche Telekom, a telecommunications company and RWE, a utility company, were also beneficial to returns.
At the other end of the spectrum, the Financials sector was the weakest sector over the period as many financial stocks were affected by the global financial crisis. In the UK, HBOS, Lloyds TSB and Aviva all suffered. Other European financial stocks such as Banco Santander in Spain, Société Générale in France and Intesa Sanpaolo in Italy, also underperformed the broader benchmark over the year. Financial holdings in Asia were helpful for returns; National Australia Bank in Australia and OCBC Bank in Singapore both added to returns. Stock selection in the Consumer Discretionary sector pulled back returns. In particular, automobile stocks, such as Renault in France, were affected by falling demand for vehicles as global economy slowed over the year.
As of 3/31/09:
Fund Characteristics
Number of Companies | 36 |
Weighted Average Market
Cap ($ x 1,000,000) | $47,832 |
Price/Earnings Ratio
(P/E) | 9.6 |
Price/Book Ratio (P/B) | 1.2 |
Portfolio Turnover
Rate* | 8% |
Fund Overview
Investor Shares | Select Shares | Institutional Shares | ||||
Initial Investment | $100 | $50,000 | $500,000 | |||
Inception Date | 6/17/2008 | 6/17/2008 | 6/17/2008 | |||
Total Net Assets ($ x 1,000) | $168 | $90 | $18,694 | |||
Ticker Symbol | LIEQX | LIEFX | LIEIX | |||
Cusip | 51855Q614 | 51855Q564 | 51855Q580 | |||
NAV | $5.43 | $5.44 | $5.44 |
Manager views and portfolio holdings may have changed since the report date.
* | Not annualized. |
6 Laudus Mondrian Funds
Laudus Mondrian International Equity Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Performance of a Hypothetical
$500,000 Investment in Institutional Shares1
$500,000 Investment in Institutional Shares1
Total Returns1
Class and Inception Date | Since Inception | |||
Investor Shares (6/17/08) | -45.31% | |||
Select Shares (6/17/08) | -45.16% | |||
Institutional Shares (6/17/08) | -45.15% | |||
Benchmark: MSCI EAFE Index®(Net)* | -47.37% |
Fund Expense Ratios2: Investor Shares: Net 1.40%; Gross 1.47% / Select Shares: Net 1.12%; Gross 1.22% /
Institutional Shares: Net 1.05%; Gross 1.07%
Country Weightings % of Investments3
Japan | 23.9% |
United Kingdom | 18.3% |
France | 17.4% |
Australia | 9.1% |
Spain | 6.7% |
Singapore | 5.5% |
Switzerland | 4.2% |
Germany | 4.1% |
Taiwan | 3.0% |
China | 2.7% |
Italy | 2.4% |
Netherlands | 2.0% |
Other Countries | 0.7% |
Total | 100.0% |
Sector Weightings % of Investments3
Telecommunication Services | 17.6% |
Consumer Staples | 16.9% |
Financials | 16.6% |
Energy | 12.8% |
Health Care | 12.2% |
Information Technology | 7.3% |
Utilities | 7.1% |
Consumer Discretionary | 6.5% |
Industrials | 2.3% |
Materials | 0.7% |
Total | 100.0% |
Top Holdings % of Net Assets3
Total S.A. | 4.3% |
GlaxoSmithkline plc | 4.3% |
CANON, Inc. | 4.2% |
Unilever plc | 4.1% |
BP plc | 4.1% |
Royal Dutch Shell plc, Class A | 4.1% |
Novartis AG - Reg’d. | 4.1% |
Carrefour S.A. | 3.9% |
Telefonica S.A. | 3.9% |
France Telecom S.A. | 3.8% |
Total | 40.8% |
All figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.
* | The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE®) Index (Net) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 21 developed market countries, excluding the U.S. and Canada. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | This list is not a recommendation of any security by the investment adviser. |
Laudus Mondrian Funds 7
Laudus Mondrian Global Equity Fund
The Laudus Mondrian Global Equity Fund Investor Shares returned -41.35% for the period since inception on 6/17/08, outperforming the benchmark MSCI World Index (Net), which returned -44.22%. Index returns were negative across all developed markets over this time. The fund outperformed the benchmark as a result of both favourable stock selection and geographic allocation of investments.
All markets were significantly weaker during the period, but the overall impact of country allocation was very positive for returns. Exposure to the non-benchmark Taiwanese market was beneficial to returns. Additionally, the fund also benefited from underweight positions in smaller European markets such as Ireland, Austria and Greece. The fund’s underweight position in Germany was also helpful, as the German equity market fell sharply over the year. These positive contributors were partially offset by the underweight position in Switzerland and overweight position in Belgium. The Swiss market was one of the best performing markets in the index, helped by exposure to the defensive Health Care and Consumer Staples sectors. The fund was underweight in US equities, which modestly outperformed the benchmark.
Sector positioning was very positive for returns over the year as the positive impact from overweight positions in the more defensive Telecommunications Services, Health Care and Consumer Staples sectors and underweight positions in the Materials and Energy sectors all added to returns. Stock selection in the Information Technology sector was also strong, helped by the performance of Taiwan Semiconductor Manufacturing Company (TSMC) in Taiwan and Canon in Japan. In the Health Care sector, the portfolio’s holdings in GlaxoSmithKline in the UK, Novartis in Switzerland and Wyeth in the US increased returns.
In Japan, the holdings in Seven & i Holdings (parent company to the “7/11” convenience store chain), NTT and Astellas all added positively to returns. Meanwhile, in Germany, the holdings in Deutsche Telekom, a telecommunications company and RWE, a utility company, were also beneficial to returns.
At the other end of the spectrum, the Financials sector was the weakest sector over the period as many of these stocks were affected by the global financial crisis. In the UK, HBOS, Lloyds TSB and Aviva all suffered. Other European financial stocks such as Société Générale in France and Intesa Sanpaolo in Italy, also underperformed the broader benchmark over the year. Further, US financials in portfolio (such as, Bank of America) underperformed. Financial holdings in Asia were helpful for returns; National Australia Bank in Australia and OCBC Bank in Singapore both added to returns. Stock selection in the Consumer Discretionary sector pulled back returns. In particular, automobile stocks, such as Renault in France, were affected by falling demand for vehicles as global economy slowed over the year. Meanwhile, CBS’ share price tumbled on concerns about the slide in television and radio ad spending, particularly, by auto firms in the US.
As of 3/31/09:
Fund Characteristics
Number of Companies | 57 |
Weighted Average Market
Cap ($ x 1,000,000) | $59,024 |
Price/Earnings Ratio
(P/E) | 13.3 |
Price/Book Ratio (P/B) | 1.3 |
Portfolio Turnover
Rate* | 14% |
Fund Overview
Investor Shares | Select Shares | Institutional Shares | ||||
Initial Investment | $100 | $50,000 | $500,000 | |||
Inception Date | 6/17/2008 | 6/17/2008 | 6/17/2008 | |||
Total Net Assets ($ x 1,000) | $34 | $33 | $2,840 | |||
Ticker Symbol | LGEQX | LGESX | LGEVX | |||
Cusip | 51855Q598 | 51855Q556 | 51855Q572 | |||
NAV | $5.68 | $5.68 | $5.68 |
Manager views and portfolio holdings may have changed since the report date.
* | Not annualized. |
8 Laudus Mondrian Funds
Laudus Mondrian Global Equity Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Performance of a Hypothetical
$500,000 Investment in Institutional Shares1
$500,000 Investment in Institutional Shares1
Total Returns1
Class and Inception Date | Since Inception | |||
Investor Shares (6/17/08) | -41.35% | |||
Select Shares (6/17/08) | -41.27% | |||
Institutional Shares (6/17/08) | -41.25% | |||
Benchmark: MSCI World® Index (Net)* | -44.22% |
Fund Expense Ratios2: Investor Shares: Net 1.40%; Gross 1.46% / Select Shares: Net 1.12%; Gross 1.21% /
Institutional Shares: Net 1.05%; Gross 1.06%
Country Weightings % of Investments3
United States | 37.4% |
United Kingdom | 13.2% |
Japan | 12.1% |
France | 9.8% |
Australia | 6.4% |
Spain | 5.4% |
Germany | 3.7% |
Singapore | 2.9% |
Italy | 2.4% |
Switzerland | 2.4% |
Taiwan | 1.9% |
Netherlands | 1.8% |
Other Countries | 0.6% |
Total | 100.0% |
Sector Weightings % of Investments3
Health Care | 18.8% |
Telecommunication Services | 14.3% |
Consumer Staples | 14.2% |
Energy | 14.1% |
Financials | 11.3% |
Information Technology | 9.0% |
Industrials | 5.2% |
Utilities | 4.5% |
Consumer Discretionary | 4.4% |
Materials | 4.2% |
Total | 100.0% |
Top Holdings % of Net Assets3
Wyeth | 3.9% |
Chevron Corp. | 3.7% |
Total S.A. | 3.7% |
BP plc | 3.4% |
GlaxoSmithKline plc | 3.3% |
Microsoft Corp. | 3.2% |
Royal Dutch Shell plc, Class A | 3.0% |
Telefonica S.A. | 2.9% |
Verizon Communications, Inc. | 2.8% |
ConAgra Foods, Inc. | 2.6% |
Total | 32.5% |
All figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.
* | The Morgan Stanley Capital International World Index (Net) is a free float-adjusted market capitalization index that is designed to measure global developed markets equity performance. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | This list is not a recommendation of any security by the investment adviser. |
Laudus Mondrian Funds 9
Laudus Mondrian Emerging Markets Fund
The Laudus Mondrian Emerging Markets Fund Investor Shares returned -42.02% during the period, outperforming the benchmark MSCI Emerging Markets Index (Net), which returned -47.07%. For the entire period, index returns were negative across all regions. The fund outperformed the benchmark primarily as a result of good stock selection in Latin America and Asia.
On a sector specific level, returns in the MSCI Emerging Markets Index were most negative in Materials, Industrials and Energy as a result of the precipitous decline in commodity prices and global trade. The fund benefited from being underweight in materials and from relatively good positioning in Energy and Industrials. The fund also benefited from its large weighting in the Telecommunications Sector where returns were less negative. Currency movements decreased US dollar returns as most emerging market currencies depreciated relative to the US dollar.
The fund’s general investment strategy continued to be driven by several consistent factors implemented by the Mondrian portfolio management team with an overriding strong emphasis on value stocks. The main changes in asset allocation during the year were increasing China from a significant underweight to a more neutral position, and increasing Russia from underweight to overweight given the sharp price declines in both markets presenting attractive value opportunities. Funds were raised by reducing exposure to Brazil, Korea and Malaysia where valuations became less attractive on a relative basis.
Global financial markets experienced one of their most turbulent periods in history. Volatility increased meaningfully in developed and emerging equity markets with absolute performance between the two quite similar. Emerging markets were more affected by the sell off in commodities given their greater leverage to the Mining and Energy sectors, but were less damaged by the Financial sector where share price declines were driven more by concerns of a cyclical earnings fall rather than a major capital write off, as has been the experience in the US and the broader developed world. In Mondrian’s view, selling in many markets tended to be indiscriminate with little regard to valuation fundamentals or positive corporate or economic news. By the end of the period, given hope for positive results from policy stimulus across the global economy, stock markets showed some signs of recovery with the emerging market asset class posting one of its strongest ever months, up 14.37% in March.
As of 3/31/09:
Fund Characteristics
Number of Companies | 40 |
Weighted Average Market
Cap ($ x 1,000,000) | $23,980 |
Price/Earnings Ratio
(P/E) | 7.4 |
Price/Book Ratio (P/B) | 1.2 |
Portfolio Turnover Rate | 52% |
Fund Overview
Investor Shares | Select Shares | Institutional Shares | ||||
Initial Investment | $100 | $50,000 | $500,000 | |||
Inception Date | 11/2/2007 | 11/2/2007 | 11/2/2007 | |||
Total Net Assets ($ x 1,000) | $1,927 | $559 | $25,234 | |||
Ticker Symbol | LEMIX | LEMSX | LEMNX | |||
Cusip | 51855Q648 | 51855Q630 | 51855Q622 | |||
NAV | $5.33 | $5.34 | $5.33 |
Manager views and portfolio holdings may have changed since the report date.
10 Laudus Mondrian Funds
Laudus Mondrian Emerging Markets Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Performance of a Hypothetical
$500,000 Investment in Institutional Shares1
$500,000 Investment in Institutional Shares1
Total Returns1
Class and Inception Date | 1 Year | Since Inception | ||||||
Investor Shares (11/2/07) | -42.02% | -35.44% | ||||||
Select Shares (11/2/07) | -41.82% | -35.17% | ||||||
Institutional Shares (11/2/07) | -41.78% | -35.23% | ||||||
Benchmark: MSCI Emerging Markets Index (Net)* | -47.07% | -43.35% |
Fund Expense Ratios2: Investor Shares: Net 1.80%; Gross 2.79% / Select Shares: Net 1.52%; Gross 2.74% /
Institutional Shares: Net 1.45%; Gross 2.62%
Country Weightings % of Investments3
China | 18.9% |
Taiwan | 14.7% |
Russia | 9.7% |
Brazil | 9.2% |
South Africa | 6.9% |
Mexico | 6.7% |
Turkey | 6.2% |
Republic of Korea | 5.6% |
Egypt | 4.2% |
India | 3.3% |
Philippines | 3.1% |
Thailand | 2.8% |
Kazakhstan | 2.2% |
Columbia | 2.1% |
Argentina | 2.0% |
Poland | 1.9% |
Other Countries | 0.5% |
Total | 100.0% |
Sector Weightings % of Investments3
Telecommunication Services | 26.8% |
Energy | 20.7% |
Financials | 17.6% |
Information Technology | 15.3% |
Industrials | 7.9% |
Materials | 4.3% |
Consumer Discretionary | 3.8% |
Utilities | 1.8% |
Consumer Staples | 1.8% |
Total | 100.0% |
Top Holdings % of Net Assets3
Taiwan Semiconductor Manufacturing Co., Ltd. | 4.5% |
China Construction Bank Corp., Class H | 4.3% |
China Shenhua Energy Co., Ltd., Class H | 3.9% |
Redecard S.A. | 3.2% |
Gazprom-Reg’d ADR | 3.2% |
Turkcell Iletisim Hizmetleri A/S | 3.2% |
Mobile TeleSystems ADR | 3.2% |
Bharti Airtel Ltd. | 3.1% |
Sasol | 3.1% |
Philippine Long Distance Telephone Co. ADR | 3.0% |
Total | 34.7% |
All figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.
* | The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | This list is not a recommendation of any security by the investment adviser. |
Laudus Mondrian Funds 11
Laudus Mondrian International Fixed Income Fund
The Laudus Mondrian International Fixed Income Fund Investor Shares returned -5.69% over the 12 month period ending March 31, 2009, while the benchmark Citigroup non-U.S. Dollar World Government Bond Index returned -6.44%. International government bond markets generally rose over the 12 month period, as inflation expectations fell on the back of weak global growth and weakening risk appetites led to a flight-to-quality.
Local bond market strength was more than offset by the depreciation of most international currencies against the US dollar, partially reversing currency gains seen in previous years. In the first half of the year, outperformance was driven by defensive currency hedges of both the euro and UK sterling, as these currencies depreciated markedly relative to the US dollar. Later in the year, the fund’s overweight position to the UK bond market added to performance, as government bond yields fell, helped by the announcement by the Bank of England that quantitative easing would be used to lower long-term bond yields. The fund’s overweight position to Australia, which was initiated part way through the year and removed before year-end, also added to performance late in the year.
Overweight positions to Mexico and Poland detracted from performance over the last 12 months. The local bond markets and currencies of less developed countries were hurt by a weakening of risk appetite amongst investors over the last 12 months. The overweight position to Poland, initiated in December, detracted from performance in the first quarter 2009, after the Polish zloty depreciated, as the appetite for central and eastern European bond markets and currencies weakened.
As of 3/31/09:
Fund Characteristics
Number of Holdings | 48 |
Average Maturity | 8.03 |
Modified Duration | 6.18 |
Average Quality | AA |
Portfolio Turnover
Rate (one year trailing) | 92% |
Fund Overview
Investor Shares | Select Shares | Institutional Shares | ||||
Initial Investment | $100 | $100 | $100 | |||
Inception Date | 11/2/2007 | 11/2/2007 | 11/2/2007 | |||
Total Net Assets ($ x 1,000) | $20,102 | $24,033 | $64,562 | |||
Ticker Symbol | LIFIX | LIFSX | LIFNX | |||
Cusip | 51855Q671 | 51855Q663 | 51855Q655 | |||
NAV | $10.33 | $10.32 | $10.32 |
Manager views and portfolio holdings may have changed since the report date.
12 Laudus Mondrian Funds
Laudus Mondrian International Fixed Income Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$10,000 Investment in Select Shares1
$10,000 Investment in Select Shares1
Performance of a Hypothetical
$10,000 Investment in Institutional Shares1
$10,000 Investment in Institutional Shares1
Total Returns1
Class and Inception Date | 1 Year | Since Inception | ||||||
Investor Shares (11/2/07) | -5.69% | 4.79% | ||||||
Select Shares (11/2/07) | -5.49% | 5.04% | ||||||
Institutional Shares (11/2/07) | -5.40% | 5.12% | ||||||
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index* | -6.44% | 3.74% |
Fund Expense Ratios2: Investor Shares: Net 1.10%; Gross 1.57% / Select Shares: Net 0.82%; Gross 1.31% /
Institutional Shares: Net 0.75%; Gross 1.23%
Geographic Breakdown % of Investments3
Eurozone | 50.6% |
Pacific Asia | 38.3% |
Latin America | 5.0% |
Other | 6.1% |
Total | 100.0% |
Sector Weightings % of Investments1
Government Bonds | 92.5% |
Government Agency Obligations | 2.8% |
Corporate Bonds | 2.4% |
Other Investment Companies | 1.6% |
Covered Bonds | 0.7% |
Total | 100.0% |
Top Holdings % of Net Assets3
Japan Government Ten Year Bond, 2.00%, 03/20/16 | 4.5% |
Japan Government Ten Year Bond, 1.90%, 06/20/16 | 4.5% |
France Government Bond OAT, 5.75%, 10/25/32 | 4.3% |
Belgium Government Bond, 5.50%, 09/28/17 | 4.2% |
Japan Government Ten Year Bond, 1.60%, 09/20/13 | 4.2% |
Japan Government Ten Year Bond, 0.90%, 06/20/13 | 4.1% |
Japan Government Ten Year Bond, 1.50%, 03/20/15 | 3.8% |
Japan Government Ten Year Bond, 1.10%, 09/20/12 | 3.7% |
France Government Bond OAT, 5.00%, 10/25/16 | 3.6% |
Netherlands Government Bond, 3.75%, 07/15/14 | 3.5% |
Total | 40.4% |
All figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.
* | The Citigroup non-US DollarWorld Government Bond Index measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. Effective May 5, 2009, the expense limitation for Investor and Select Shares will be further reduced to 0.75%. See Financial Notes for more information. |
3 | This list is not a recommendation of any security by the investment adviser. |
Laudus Mondrian Funds 13
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for period beginning October 1, 2008 and held through March 31, 2009.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period”.
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.
Ending | ||||||||||||||||
Beginning | Account Value | Expenses Paid | ||||||||||||||
Expense Ratio | Account Value | (Net of Expenses) | During Period | |||||||||||||
(Annualized) | at 10/1/08 | at 3/31/09 | 10/1/08–3/31/09 | |||||||||||||
Laudus Mondrian International Equity Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.40% | $ | 1,000 | $ | 661.30 | $ | 5.80 | |||||||||
Hypothetical 5% Return | 1.40% | $ | 1,000 | $ | 1,017.95 | $ | 7.04 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.12% | $ | 1,000 | $ | 663.10 | $ | 4.64 | |||||||||
Hypothetical 5% Return | 1.12% | $ | 1,000 | $ | 1,019.35 | $ | 5.64 | |||||||||
Institutional Shares | ||||||||||||||||
Actual Return | 1.05% | $ | 1,000 | $ | 662.50 | $ | 4.35 | |||||||||
Hypothetical 5% Return | 1.05% | $ | 1,000 | $ | 1,019.70 | $ | 5.29 | |||||||||
Laudus Mondrian Global Equity Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.40% | $ | 1,000 | $ | 698.30 | $ | 5.93 | |||||||||
Hypothetical 5% Return | 1.40% | $ | 1,000 | $ | 1,017.95 | $ | 7.04 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.12% | $ | 1,000 | $ | 699.20 | $ | 4.74 | |||||||||
Hypothetical 5% Return | 1.12% | $ | 1,000 | $ | 1,019.35 | $ | 5.64 | |||||||||
Institutional Shares | ||||||||||||||||
Actual Return | 1.05% | $ | 1,000 | $ | 699.40 | $ | 4.45 | |||||||||
Hypothetical 5% Return | 1.05% | $ | 1,000 | $ | 1,019.70 | $ | 5.29 | |||||||||
Laudus Mondrian Emerging Markets Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.80% | $ | 1,000 | $ | 753.40 | $ | 7.87 | |||||||||
Hypothetical 5% Return | 1.80% | $ | 1,000 | $ | 1,015.96 | $ | 9.05 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.52% | $ | 1,000 | $ | 755.40 | $ | 6.65 | |||||||||
Hypothetical 5% Return | 1.52% | $ | 1,000 | $ | 1,017.35 | $ | 7.64 | |||||||||
Institutional Shares | ||||||||||||||||
Actual Return | 1.45% | $ | 1,000 | $ | 754.30 | $ | 6.34 | |||||||||
Hypothetical 5% Return | 1.45% | $ | 1,000 | $ | 1,017.70 | $ | 7.29 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. |
2 | Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
14 Laudus Mondrian Funds
Fund Expenses (Unaudited) continued
Ending | ||||||||||||||||
Beginning | Account Value | Expenses Paid | ||||||||||||||
Expense Ratio1 | Account Value | (Net of Expenses) | During Period2 | |||||||||||||
(Annualized) | at 10/1/08 | at 3/31/09 | 10/1/08–3/31/09 | |||||||||||||
Laudus Mondrian International Fixed Income Fund | ||||||||||||||||
Investor Shares* | ||||||||||||||||
Actual Return | 1.10% | $ | 1,000 | $ | 1,019.70 | $ | 5.54 | |||||||||
Hypothetical 5% Return | 1.10% | $ | 1,000 | $ | 1,019.45 | $ | 5.54 | |||||||||
Select Shares* | ||||||||||||||||
Actual Return | 0.82% | $ | 1,000 | $ | 1,021.50 | $ | 4.13 | |||||||||
Hypothetical 5% Return | 0.82% | $ | 1,000 | $ | 1,020.84 | $ | 4.13 | |||||||||
Institutional Shares | ||||||||||||||||
Actual Return | 0.74% | $ | 1,000 | $ | 1,021.40 | $ | 3.73 | |||||||||
Hypothetical 5% Return | 0.74% | $ | 1,000 | $ | 1,021.24 | $ | 3.73 |
1 Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights
2 Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period multiplied by 182 days of the period, and divided by 365 days of the fiscal year
* Effective May 5, 2009, the expense limitation for Investor and Select Shares will be further reduced to 0.75%. See Financial Notes for more information
* Effective May 5, 2009, the expense limitation for Investor and Select Shares will be further reduced to 0.75%. See Financial Notes for more information
Laudus Mondrian Funds 15
Laudus Mondrian International Equity Fund
Financial Statements
Financial Highlights
6/17/081– | ||||
Investor Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.07 | |||
Net realized and unrealized gains (losses) | (4.59 | ) | ||
Total from investment operations | (4.52 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.05 | ) | ||
Distributions from net realized gains | (0.00 | )2 | ||
Total distributions | (0.05 | ) | ||
Net asset value at end of period | 5.43 | |||
Total return (%) | (45.31 | )3 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.39 | 4,5 | ||
Gross operating expenses | 2.78 | 4 | ||
Net investment income (loss) | 2.46 | 4 | ||
Portfolio turnover rate | 8 | 3 | ||
Net assets, end of period ($ x 1,000) | 168 |
6/17/081– | ||||
Select Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.12 | |||
Net realized and unrealized gains (losses) | (4.63 | ) | ||
Total from investment operations | (4.51 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.05 | ) | ||
Distributions from net realized gains | (0.00 | )2 | ||
Total distributions | (0.05 | ) | ||
Net asset value at end of period | 5.44 | |||
Total return (%) | (45.16 | )3 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.12 | 4 | ||
Gross operating expenses | 3.10 | 4 | ||
Net investment income (loss) | 2.22 | 4 | ||
Portfolio turnover rate | 8 | 3 | ||
Net assets, end of period ($ x 1,000) | 90 |
1 Commencement of operations.
2 Distribution from realized gains is less than 0.01.
3 Not annualized.
4 Annualized.
5 The ratio of net operating expenses would have been 1.40% for the Investor Shares, if custody credits had not been included.
16 See financial notes
Laudus Mondrian International Equity Fund
Financial Highlights continued
6/17/081– | ||||
Institutional Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.08 | |||
Net realized and unrealized gains (losses) | (4.59 | ) | ||
Total from investment operations | (4.51 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.05 | ) | ||
Distributions from net realized gains | (0.00 | )2 | ||
Total distributions | (0.05 | ) | ||
Net asset value at end of period | 5.44 | |||
Total return (%) | (45.15 | )3 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.05 | 4 | ||
Gross operating expenses | 2.11 | 4 | ||
Net investment income (loss) | 2.52 | 4 | ||
Portfolio turnover rate | 8 | 3 | ||
Net assets, end of period ($ x 1,000) | 18,694 |
1 Commencement of operations.
2 Distribution from realized gains is less than 0.01.
3 Not annualized.
4 Annualized.
See financial notes 17
Laudus Mondrian International Equity Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
97 | .3% | Common Stock | 23,819,537 | 18,448,345 | ||||||||
—% | Rights | — | — | |||||||||
2 | .0% | Other Investment Companies | 376,607 | 376,607 | ||||||||
99 | .3% | Total Investments | 24,196,144 | 18,824,952 | ||||||||
0 | .7% | Other Assets and Liabilities, Net | 126,234 | |||||||||
100 | .0% | Net Assets | 18,951,186 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 97.3% of net assets | ||||||||
Australia 8.9% | ||||||||
Banks 2.8% | ||||||||
National Australia Bank Ltd. | 38,324 | 534,977 | ||||||
Food & Staples Retailing 2.7% | ||||||||
Wesfarmers Ltd. | 38,131 | 500,345 | ||||||
Telecommunication Services 3.4% | ||||||||
Telstra Corp., Ltd. | 291,410 | 650,499 | ||||||
1,685,821 | ||||||||
China 2.6% | ||||||||
Utilities 2.6% | ||||||||
Hongkong Electric Holdings Ltd. | 84,500 | 502,047 | ||||||
Finland 0.7% | ||||||||
Materials 0.7% | ||||||||
UPM-Kymmene Oyj | 23,810 | 137,418 | ||||||
France 16.9% | ||||||||
Automobiles & Components 1.1% | ||||||||
Renault S.A. | 10,458 | 215,038 | ||||||
Banks 1.5% | ||||||||
Societe Generale | 7,109 | 278,082 | ||||||
Capital Goods 2.3% | ||||||||
Compagnie de Saint-Gobain | 15,297 | 428,606 | ||||||
Energy 4.3% | ||||||||
Total S.A. | 16,428 | 812,354 | ||||||
Food & Staples Retailing 3.9% | ||||||||
Carrefour S.A. | 18,955 | 739,434 | ||||||
Telecommunication Services 3.8% | ||||||||
France Telecom S.A. | 31,995 | 729,394 | ||||||
3,202,908 | ||||||||
Germany 4.0% | ||||||||
Telecommunication Services 0.5% | ||||||||
Deutsche Telekom AG - Reg’d. | 7,247 | 89,761 | ||||||
Utilities 3.5% | ||||||||
RWE AG | 9,553 | 669,001 | ||||||
758,762 | ||||||||
Italy 2.3% | ||||||||
Banks 2.3% | ||||||||
Intesa Sanpaolo | 160,650 | 441,864 | ||||||
Japan 23.3% | ||||||||
Automobiles & Components 3.3% | ||||||||
Toyota Motor Corp. | 19,600 | 622,572 | ||||||
Food & Staples Retailing 2.3% | ||||||||
Seven & i Holdings Co., Ltd. | 20,000 | 441,541 | ||||||
Household & Personal Products 3.4% | ||||||||
Kao Corp. | 33,000 | 643,909 | ||||||
Insurance 2.8% | ||||||||
Tokio Marine Holdings, Inc. | 21,200 | 522,134 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 3.5% | ||||||||
Takeda Pharmaceutical Co., Ltd. | 19,400 | 673,074 | ||||||
Technology Hardware & Equipment 4.2% | ||||||||
CANON, Inc. | 27,200 | 792,930 | ||||||
Telecommunication Services 3.8% | ||||||||
KDDI Corp. | 152 | 715,789 | ||||||
4,411,949 | ||||||||
Netherlands 1.9% | ||||||||
Media 1.9% | ||||||||
Reed Elsevier N.V. | 34,407 | 368,183 | ||||||
Singapore 5.4% | ||||||||
Banks 3.7% | ||||||||
Oversea-Chinese Banking Corp., Ltd. | 156,000 | 497,321 | ||||||
United Overseas Bank Ltd. | 31,000 | 198,843 | ||||||
696,164 | ||||||||
Telecommunication Services 1.7% | ||||||||
Singapore Telecommunications Ltd. | 194,000 | 323,372 | ||||||
1,019,536 | ||||||||
Spain 6.5% | ||||||||
Banks 1.9% | ||||||||
Banco Santander S.A. | 52,179 | 359,763 | ||||||
Telecommunication Services 3.9% | ||||||||
Telefonica S.A. | 36,908 | 735,994 |
18 See financial notes
Laudus Mondrian International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Utilities 0.7% | ||||||||
Iberdrola S.A. | 19,361 | 135,836 | ||||||
1,231,593 | ||||||||
Switzerland 4.1% | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 4.1% | ||||||||
Novartis AG - Reg’d. | 20,305 | 768,210 | ||||||
Taiwan 2.9% | ||||||||
Semiconductors & Semiconductor Equipment 2.9% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 61,047 | 546,371 | ||||||
United Kingdom 17.8% | ||||||||
Energy 8.2% | ||||||||
BP plc | 116,052 | 778,173 | ||||||
Royal Dutch Shell plc, Class A | 34,743 | 775,083 | ||||||
1,553,256 | ||||||||
Food, Beverage & Tobacco 4.1% | ||||||||
Unilever plc | 41,472 | 784,225 | ||||||
Insurance 1.2% | ||||||||
Aviva plc | 72,515 | 224,869 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 4.3% | ||||||||
GlaxoSmithKline plc | 52,093 | 811,333 | ||||||
3,373,683 | ||||||||
Total Common Stock (Cost $23,819,537) | 18,448,345 | |||||||
Rights 0.0% of net assets | ||||||||
Belgium 0.0% | ||||||||
Fortis (a)(b) * | 7,434 | — | ||||||
Total Rights (Cost $—) | — | |||||||
Other Investment Company 2.0% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 376,607 | 376,607 | ||||||
Total Other Investment Company (Cost $376,607) | 376,607 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $24,249,328 and the unrealized appreciation and depreciation were $40,278 and ($5,464,654), respectively, with a net unrealized depreciation of ($5,424,376). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $17,901,974 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees. |
* | Non-income producing security. | |
(a) | Fair-valued by Management. | |
(b) | Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets. |
ADR — American Depositary Receipt
Reg’d — Registered
See financial notes 19
Laudus Mondrian International Equity Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $24,196,144) | $18,824,952 | |||||
Foreign currency, at value (cost $22,248) | 22,104 | |||||
Receivables: | ||||||
Dividends | 115,352 | |||||
Due from investment adviser | 9,466 | |||||
Foreign tax reclaims | 7,180 | |||||
Interest | 242 | |||||
Fund shares sold | 100 | |||||
Prepaid expenses | + | 57 | ||||
Total assets | 18,979,453 | |||||
Liabilities | ||||||
Payables: | ||||||
Distribution and shareholder services fees | 36 | |||||
Accrued expenses | + | 28,231 | ||||
Total liabilities | 28,267 | |||||
Net Assets | ||||||
Total assets | 18,979,453 | |||||
Total liabilities | − | 28,267 | ||||
Net assets | $18,951,186 | |||||
Net Assets by Source | ||||||
Capital received from investors | 24,890,944 | |||||
Net investment income not yet distributed | 117,444 | |||||
Net realized capital losses | (687,436 | ) | ||||
Net unrealized capital losses | (5,369,766 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $167,587 | 30,837 | $5.43 | |||||||||
Select Shares | $89,791 | 16,506 | $5.44 | |||||||||
Institutional Shares | $18,693,808 | 3,436,292 | $5.44 |
20 See financial notes
Laudus Mondrian International Equity Fund
Statement of
Operations
For June 17, 2008 * through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $27,771) | $354,168 | |||||
Interest | + | 1,926 | ||||
Total Investment Income | 356,094 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (681,059 | ) | ||||
Net realized gains on foreign currency transactions | + | 41,399 | ||||
Net realized losses | (639,660 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (5,371,192 | ) | ||||
Net unrealized gains on foreign currency translations | + | 1,426 | ||||
Net unrealized losses | (5,369,766 | ) | ||||
Expenses | ||||||
Investment adviser fees | 84,855 | |||||
Registration fees | 37,123 | |||||
Professional fees | 24,049 | |||||
Transfer agent fees | 23,073 | |||||
Accounting and administration fees | 19,218 | |||||
Custodian fees | 9,177 | |||||
Shareholder reports | 6,235 | |||||
Trustees’ fees | 4,500 | |||||
Sub-Accounting fees | ||||||
Investor Shares | 70 | |||||
Select Shares | 170 | |||||
Distribution and shareholder services fees (Investor Shares) | 145 | |||||
Other expenses | + | 3,374 | ||||
Total expenses | 211,989 | |||||
Expense reduction by adviser | − | 106,871 | ||||
Custody credits | − | 115 | ||||
Net expenses | 105,003 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 356,094 | |||||
Net expenses | − | 105,003 | ||||
�� | ||||||
Net investment income | 251,091 | |||||
Net realized losses | (639,660 | ) | ||||
Net unrealized losses | + | (5,369,766 | ) | |||
Decrease in net assets from operations | ($5,758,335 | ) |
* | Commencement of operations. |
See financial notes 21
Laudus Mondrian International Equity Fund
Statements of
Changes in Net Assets
For the current report period only.
Operations |
6/17/08*-3/31/09 | ||||||
Net investment income | $251,091 | |||||
Net realized losses | (639,660 | ) | ||||
Net unrealized losses | + | (5,369,766 | ) | |||
Decrease in net assets from operations | (5,758,335 | ) | ||||
Distributions to Shareholders | ||||||
Distributions from net investment income | ||||||
Investor Shares | 591 | |||||
Select Shares | 1,300 | |||||
Institutional Shares | + | 173,024 | ||||
Total distributions from net investment income | 174,915 | |||||
Distributions from net realized gains | ||||||
Investor Shares | 25 | |||||
Select Shares | 51 | |||||
Institutional Shares | + | 6,444 | ||||
Total distributions from net realized gains | 6,520 | |||||
Total distributions | $181,435 |
Transactions in Fund Shares |
6/17/08*-3/31/09 | ||||||||||
SHARES | VALUE | |||||||||
Shares Sold | ||||||||||
Investor Shares | 32,887 | $227,554 | ||||||||
Select Shares | 38,195 | 329,781 | ||||||||
Institutional Shares | + | 3,424,157 | 24,406,571 | |||||||
Total shares sold | 3,495,239 | $24,963,906 | ||||||||
Shares Reinvested | ||||||||||
Investor Shares | 92 | $616 | ||||||||
Select Shares | 203 | 1,351 | ||||||||
Institutional Shares | + | 12,699 | 84,704 | |||||||
Total shares reinvested | 12,994 | $86,671 | ||||||||
Shares Redeemed | ||||||||||
Investor Shares | (2,142 | ) | ($14,629 | ) | ||||||
Select Shares | (21,892 | ) | (142,072 | ) | ||||||
Institutional Shares | + | (564 | ) | (2,920 | ) | |||||
Total shares redeemed | (24,598 | ) | ($159,621 | ) | ||||||
Net transactions in fund shares | 3,483,635 | $24,890,956 | ||||||||
Shares Outstanding and Net Assets | ||||||||||
6/17/08*-3/31/09 | ||||||||||
SHARES | NET ASSETS | |||||||||
Beginning of period | - | $- | ||||||||
Total increase | + | 3,483,635 | 18,951,186 | |||||||
End of period | 3,483,635 | $18,951,186 | ||||||||
Net investment income not yet distributed | $117,444 |
* | Commencement of operations. |
22 See financial notes
Laudus Mondrian Global Equity Fund
Financial Statements
Financial Highlights
6/17/081– | ||||
Investor Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.17 | |||
Net realized and unrealized gains (losses) | (4.27 | ) | ||
Total from investment operations | (4.10 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.22 | ) | ||
Net asset value at end of period | 5.68 | |||
Total return (%) | (41.35 | )2 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.40 | 3 | ||
Gross operating expenses | 4.43 | 3 | ||
Net investment income (loss) | 2.63 | 3 | ||
Portfolio turnover rate | 14 | 2 | ||
Net assets, end of period ($ x 1,000) | 34 |
6/17/081– | ||||
Select Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.16 | |||
Net realized and unrealized gains (losses) | (4.25 | ) | ||
Total from investment operations | (4.09 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.23 | ) | ||
Net asset value at end of period | 5.68 | |||
Total return (%) | (41.27 | )2 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.12 | 3 | ||
Gross operating expenses | 4.27 | 3 | ||
Net investment income (loss) | 2.89 | 3 | ||
Portfolio turnover rate | 14 | 2 | ||
Net assets, end of period ($ x 1,000) | 33 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
See financial notes 23
Laudus Mondrian Global Equity Fund
Financial Highlights continued
6/17/081– | ||||
Institutional Shares | 3/31/09 | |||
Per-Share Data ($) | ||||
Net asset value at beginning of period | 10.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.16 | |||
Net realized and unrealized gains (losses) | (4.25 | ) | ||
Total from investment operations | (4.09 | ) | ||
Less distributions: | ||||
Distributions from net investment income | (0.23 | ) | ||
Net asset value at end of period | 5.68 | |||
Total return (%) | (41.25 | )2 | ||
Ratios/Supplemental Data (%) | ||||
Ratios to average net assets: | ||||
Net operating expenses | 1.05 | 3 | ||
Gross operating expenses | 4.08 | 3 | ||
Net investment income (loss) | 2.74 | 3 | ||
Portfolio turnover rate | 14 | 2 | ||
Net assets, end of period ($ x 1,000) | 2,840 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
24 See financial notes
Laudus Mondrian Global Equity Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
98 | .4% | Common Stock | 4,797,115 | 2,861,032 | ||||||||
1 | .2% | Other Investment Company | 35,095 | 35,095 | ||||||||
—% | Rights | — | — | |||||||||
99 | .6% | Total Investments | 4,832,210 | 2,896,127 | ||||||||
0 | .4% | Other Assets and Liabilities, Net | 10,800 | |||||||||
100 | .0% | Net Assets | 2,906,927 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 98.4% of net assets | ||||||||
Australia 6.3% | ||||||||
Banks 1.5% | ||||||||
National Australia Bank Ltd. | 3,200 | 44,670 | ||||||
Food & Staples Retailing 1.4% | ||||||||
Wesfarmers Ltd. | 3,049 | 40,008 | ||||||
Food, Beverage & Tobacco 1.2% | ||||||||
Foster’s Group Ltd. | 9,728 | 34,212 | ||||||
Materials 0.9% | ||||||||
Amcor Ltd. | 8,926 | 27,607 | ||||||
Telecommunication Services 1.3% | ||||||||
Telstra Corp., Ltd. | 16,917 | 37,763 | ||||||
184,260 | ||||||||
Belgium 0.2% | ||||||||
Diversified Financials 0.2% | ||||||||
Fortis | 3,366 | 6,150 | ||||||
Finland 0.3% | ||||||||
Materials 0.3% | ||||||||
UPM-Kymmene Oyj | 1,700 | 9,811 | ||||||
France 9.6% | ||||||||
Automobiles & Components 0.3% | ||||||||
Renault S.A. | 394 | 8,101 | ||||||
Banks 1.4% | ||||||||
Societe Generale | 1,060 | 41,464 | ||||||
Energy 3.7% | ||||||||
Total S.A. | 2,167 | 107,157 | ||||||
Food & Staples Retailing 2.5% | ||||||||
Carrefour S.A. | 1,867 | 72,832 | ||||||
Telecommunication Services 1.7% | ||||||||
France Telecom S.A. | 2,228 | 50,792 | ||||||
280,346 | ||||||||
Germany 3.6% | ||||||||
Telecommunication Services 1.5% | ||||||||
Deutsche Telekom AG - Reg’d. | 3,624 | 44,887 | ||||||
Utilities 2.1% | ||||||||
RWE AG | 854 | 59,806 | ||||||
104,693 | ||||||||
Italy 2.3% | ||||||||
Banks 2.3% | ||||||||
Intesa Sanpaolo | 9,855 | 27,106 | ||||||
UniCredit S.p.A. | 24,450 | 40,241 | ||||||
67,347 | ||||||||
Japan 12.0% | ||||||||
Food & Staples Retailing 1.5% | ||||||||
Seven & i Holdings Co., Ltd. | 2,000 | 44,154 | ||||||
Insurance 1.8% | ||||||||
Tokio Marine Holdings, Inc. | 2,100 | 51,721 | ||||||
Materials 1.8% | ||||||||
Nitto Denko Corp. | 2,600 | 53,205 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 3.1% | ||||||||
Astellas Pharma, Inc. | 1,200 | 37,135 | ||||||
Takeda Pharmaceutical Co., Ltd. | 1,500 | 52,042 | ||||||
89,177 | ||||||||
Technology Hardware & Equipment 1.9% | ||||||||
CANON, Inc. | 1,900 | 55,389 | ||||||
Telecommunication Services 0.7% | ||||||||
Nippon Telegraph & Telephone Corp. | 500 | 19,082 | ||||||
Transportation 1.2% | ||||||||
West Japan Railway Co. | 11 | 34,880 | ||||||
347,608 | ||||||||
Netherlands 1.8% | ||||||||
Diversified Financials 0.8% | ||||||||
ING Groep N.V. CVA | 4,032 | 22,093 | ||||||
Media 1.0% | ||||||||
Reed Elsevier N.V. | 2,690 | 28,785 | ||||||
50,878 | ||||||||
Singapore 2.9% | ||||||||
Banks 1.1% | ||||||||
Oversea-Chinese Banking Corp., Ltd. | 10,000 | 31,879 | ||||||
Telecommunication Services 1.8% | ||||||||
Singapore Telecommunications Ltd. | 31,000 | 51,673 | ||||||
83,552 |
See financial notes 25
Laudus Mondrian Global Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Spain 5.3% | ||||||||
Telecommunication Services 2.9% | ||||||||
Telefonica S.A. | 4,298 | 85,708 | ||||||
Utilities 2.4% | ||||||||
Iberdrola S.A. | 9,791 | 68,693 | ||||||
154,401 | ||||||||
Switzerland 2.4% | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 2.4% | ||||||||
Novartis AG - Reg’d. | 1,805 | 68,290 | ||||||
Taiwan 1.9% | ||||||||
Semiconductors & Semiconductor Equipment 1.9% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 6,217 | 55,642 | ||||||
United Kingdom 13.0% | ||||||||
Automobiles & Components 0.3% | ||||||||
GKN plc | 7,886 | 7,719 | ||||||
Energy 6.5% | ||||||||
BP plc | 15,112 | 101,332 | ||||||
Royal Dutch Shell plc, Class A | 3,972 | 88,611 | ||||||
189,943 | ||||||||
Food, Beverage & Tobacco 2.6% | ||||||||
Unilever plc | 3,918 | 74,088 | ||||||
Insurance 0.3% | ||||||||
Aviva plc | 3,025 | 9,381 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 3.3% | ||||||||
GlaxoSmithKline plc | 6,158 | 95,909 | ||||||
377,040 | ||||||||
United States 36.8% | ||||||||
Banks 0.5% | ||||||||
Wells Fargo & Co. | 1,055 | 15,023 | ||||||
Capital Goods 3.9% | ||||||||
3M Co. | 1,100 | 54,692 | ||||||
General Electric Co. | 5,700 | 57,627 | ||||||
112,319 | ||||||||
Diversified Financials 1.1% | ||||||||
Bank of America Corp. | 4,950 | 33,759 | ||||||
Energy 3.7% | ||||||||
Chevron Corp. | 1,600 | 107,584 | ||||||
Food, Beverage & Tobacco 4.9% | ||||||||
ConAgra Foods, Inc. | 4,500 | 75,915 | ||||||
H.J. Heinz Co. | 2,000 | 66,120 | ||||||
142,035 | ||||||||
Materials 1.0% | ||||||||
Alcoa, Inc. | 4,100 | 30,094 | ||||||
Media 0.3% | ||||||||
CBS Corp., Class B | 2,100 | 8,064 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 9.8% | ||||||||
Johnson & Johnson | 800 | 42,080 | ||||||
Merck & Co., Inc. | 2,600 | 69,550 | ||||||
Pfizer, Inc. | 4,200 | 57,204 | ||||||
Wyeth | 2,700 | 116,208 | ||||||
285,042 | ||||||||
Retailing 2.5% | ||||||||
Genuine Parts Co. | 2,400 | 71,664 | ||||||
Software & Services 5.0% | ||||||||
Microsoft Corp. | 5,100 | 93,687 | ||||||
Oracle Corp. * | 2,900 | 52,403 | ||||||
146,090 | ||||||||
Telecommunication Services 4.1% | ||||||||
AT&T, Inc. | 1,500 | 37,800 | ||||||
Verizon Communications, Inc. | 2,700 | 81,540 | ||||||
119,340 | ||||||||
1,071,014 | ||||||||
Total Common Stock (Cost $4,797,115) | 2,861,032 | |||||||
Other Investment Company 1.2% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 35,095 | 35,095 | ||||||
Total Other Investment Company (Cost $35,095) | 35,095 | |||||||
Rights 0.0% of net assets | ||||||||
Belgium 0.0% | ||||||||
Fortis (a)(b) * | 3,366 | — | ||||||
Total Rights (Cost $—) | — | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $4,832,226 and the unrealized appreciation and depreciation were $10,609 and ($1,946,708), respectively, with a net unrealized depreciation of ($1,936,099). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $1,734,375 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees. |
* | Non-income producing security. | |
(a) | Fair-valued by Management. | |
(b) | Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets. |
ADR - American Depositary Receipt
CVA - Dutch Certificate
Reg’d - Registered
26 See financial notes
Laudus Mondrian Global Equity Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $4,832,210) | $2,896,127 | |||||
Foreign currency (cost $8,374) | 8,429 | |||||
Receivables: | ||||||
Dividends | 14,775 | |||||
Due from investment adviser | 11,290 | |||||
Foreign tax reclaims | 659 | |||||
Interest | 23 | |||||
Prepaid expenses | + | 57 | ||||
Total assets | 2,931,360 | |||||
Liabilities | ||||||
Payables: | ||||||
Distribution and shareholder services fees | 12 | |||||
Accrued expenses | + | 24,421 | ||||
Total liabilities | 24,433 | |||||
Net Assets | ||||||
Total assets | 2,931,360 | |||||
Total liabilities | − | 24,433 | ||||
Net assets | $2,906,927 | |||||
Net Assets by Source | ||||||
Capital received from investors | 5,103,612 | |||||
Net investment income not yet distributed | 25,801 | |||||
Net realized capital losses | (286,598 | ) | ||||
Net unrealized capital losses | (1,935,888 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $34,299 | 6,041 | $5.68 | |||||||||
Select Shares | $32,539 | 5,729 | $5.68 | |||||||||
Institutional Shares | $2,840,089 | 500,000 | $5.68 |
See financial notes 27
Laudus Mondrian Global Equity Fund
Statement of
Operations
For June 17, 2008 * through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $4,589) | $112,929 | |||||
Interest | + | 575 | ||||
Total Investment Income | 113,504 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (286,599 | ) | ||||
Net realized gains on foreign currency transactions | + | 62,975 | ||||
Net realized losses | (223,624 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (1,936,083 | ) | ||||
Net unrealized gains on foreign currency translations | + | 195 | ||||
Net unrealized losses | (1,935,888 | ) | ||||
Expenses | ||||||
Investment adviser fees | 25,429 | |||||
Transfer agent fees | 25,279 | |||||
Professional fees | 23,449 | |||||
Accounting and administration fees | 19,563 | |||||
Registration fees | 15,441 | |||||
Trustees’ fees | 4,300 | |||||
Custodian fees | 3,064 | |||||
Shareholder reports | 1,453 | |||||
Distribution and shareholder services fees (Investor Shares) | 59 | |||||
Sub-Accounting fees | ||||||
Investor Shares | 31 | |||||
Select Shares | 43 | |||||
Interest expense | 6 | |||||
Other expenses | + | 4,039 | ||||
Total expenses | 122,156 | |||||
Expense reduction by adviser | − | 90,576 | ||||
Custody credits | − | 144 | ||||
Net expenses | 31,436 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 113,504 | |||||
Net expenses | − | 31,436 | ||||
Net investment income | 82,068 | |||||
Net realized losses | (223,624 | ) | ||||
Net unrealized losses | + | (1,935,888 | ) | |||
Decrease in net assets from operations | ($2,077,444 | ) |
* | Commencement of operations. |
28 See financial notes
Laudus Mondrian Global Equity Fund
Statements of
Changes in Net Assets
For the current report period only.
Operations |
6/17/08*-3/31/09 | ||||||
Net investment income | $82,068 | |||||
Net realized losses | (223,624 | ) | ||||
Net unrealized losses | + | (1,935,888 | ) | |||
Decrease in net assets from operations | (2,077,444 | ) | ||||
Distributions to Shareholders | ||||||
Distributions from net investment income | ||||||
Investor Shares | 918 | |||||
Select Shares | 1,239 | |||||
Institutional Shares | + | 117,100 | ||||
Total distributions from net investment income | $119,257 |
Transactions in Fund Shares |
6/17/08*-3/31/09 | ||||||||||
SHARES | VALUE | |||||||||
Shares Sold | ||||||||||
Investor Shares | 7,553 | $60,839 | ||||||||
Select Shares | 5,549 | 51,715 | ||||||||
Institutional Shares | + | 500,003 | 5,000,030 | |||||||
Total shares sold | 513,105 | $5,112,584 | ||||||||
Shares Reinvested | ||||||||||
Investor Shares | 111 | $756 | ||||||||
Select Shares | 182 | 1,239 | ||||||||
Institutional Shares | + | — | — | |||||||
Total shares reinvested | 293 | $1,995 | ||||||||
Shares Redeemed | ||||||||||
Investor Shares | (1,623 | ) | ($10,909 | ) | ||||||
Select Shares | (2 | ) | (19 | ) | ||||||
Institutional Shares | + | (3 | ) | (23 | ) | |||||
Total shares redeemed | (1,628 | ) | ($10,951 | ) | ||||||
Net transactions in fund shares | 511,770 | $5,103,628 | ||||||||
Shares Outstanding and Net Assets | ||||||||||
6/17/08*-3/31/09 | ||||||||||
SHARES | NET ASSETS | |||||||||
Beginning of period | — | $- | ||||||||
Total increase | + | 511,770 | 2,906,927 | |||||||
End of period | 511,770 | $2,906,927 | ||||||||
Net investment income not yet distributed | $25,801 |
* | Commencement of operations |
See financial notes 29
Laudus Mondrian Emerging Markets Fund
Financial Statements
Financial Highlights
4/1/08– | 11/2/071– | |||||||
Investor Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 9.29 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.11 | 0.02 | ||||||
Net realized and unrealized gains (losses) | (4.01 | ) | (0.72 | ) | ||||
Total from investment operations | (3.90 | ) | (0.70 | ) | ||||
Less distributions: | ||||||||
Distributions from net investment income | (0.06 | ) | (0.01 | ) | ||||
Net asset value at end of period | 5.33 | 9.29 | ||||||
Total return (%) | (42.02 | ) | (6.98 | )2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 1.80 | 1.82 | 3,4 | |||||
Gross operating expenses | 2.46 | 2.79 | 3 | |||||
Net investment income (loss) | 1.54 | 0.89 | 3 | |||||
Portfolio turnover rate | 52 | 49 | 2 | |||||
Net assets, end of period ($ x 1,000) | 1,927 | 1,937 |
4/1/08– | 11/2/071– | |||||||
Select Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 9.31 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.08 | 0.02 | ||||||
Net realized and unrealized gains (losses) | (3.97 | ) | (0.70 | ) | ||||
Total from investment operations | (3.89 | ) | (0.68 | ) | ||||
Less distributions: | ||||||||
Distributions from net investment income | (0.08 | ) | (0.01 | ) | ||||
Net asset value at end of period | 5.34 | 9.31 | ||||||
Total return (%) | (41.82 | ) | (6.75 | )2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 1.52 | 1.54 | 3,5 | |||||
Gross operating expenses | 2.23 | 2.74 | 3 | |||||
Net investment income (loss) | 1.70 | 0.69 | 3 | |||||
Portfolio turnover rate | 52 | 49 | 2 | |||||
Net assets, end of period ($ x 1,000) | 559 | 760 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 The ratio of net operating expenses would have been 1.80%, if interest expense had not been included.
5 The ratio of net operating expenses would have been 1.52%, if interest expense had not been included.
30 See financial notes
Laudus Mondrian Emerging Markets Fund
Financial Highlights continued
4/1/08– | 11/2/071– | |||||||
Institutional Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 9.29 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.10 | 0.02 | ||||||
Net realized and unrealized gains (losses) | (3.98 | ) | (0.71 | ) | ||||
Total from investment operations | (3.88 | ) | (0.69 | ) | ||||
Less distributions: | ||||||||
Distributions from net investment income | (0.08 | ) | (0.02 | ) | ||||
Net asset value at end of period | 5.33 | 9.29 | ||||||
Total return (%) | (41.78 | ) | (6.94 | )2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 1.45 | 1.47 | 3,4 | |||||
Gross operating expenses | 2.13 | 2.62 | 3 | |||||
Net investment income (loss) | 1.94 | 0.59 | 3 | |||||
Portfolio turnover rate | 52 | 49 | 2 | |||||
Net assets, end of period ($ x 1,000) | 25,234 | 19,414 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 The ratio of net operating expenses would have been 1.45%, if interest expense had not been included.
See financial notes 31
Laudus Mondrian Emerging Markets Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
88 | .9% | Common Stock | 34,471,663 | 24,628,957 | ||||||||
7 | .7% | Preferred Stock | 3,668,123 | 2,140,652 | ||||||||
2 | .0% | Other Investment Company | 559,133 | 559,133 | ||||||||
98 | .6% | Total Investments | 38,698,919 | 27,328,742 | ||||||||
1 | .4% | Other Assets and Liabilities, Net | 392,361 | |||||||||
100 | .0% | Net Assets | 27,721,103 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 88.9% of net assets | ||||||||
Argentina 2.0% | ||||||||
Energy 2.0% | ||||||||
Tenaris S.A. ADR | 26,969 | 543,965 | ||||||
Brazil 5.0% | ||||||||
Software & Services 3.2% | ||||||||
Redecard S.A. | 74,500 | 900,841 | ||||||
Utilities 1.8% | ||||||||
CPFL Energia S.A. ADR | 12,000 | 486,840 | ||||||
1,387,681 | ||||||||
China 18.3% | ||||||||
Banks 4.3% | ||||||||
China Construction Bank Corp., Class H | 2,115,000 | 1,200,640 | ||||||
Energy 3.9% | ||||||||
China Shenhua Energy Co., Ltd., Class H | 482,500 | 1,088,649 | ||||||
Telecommunication Services 2.4% | ||||||||
China Mobile Ltd. | 77,000 | 670,740 | ||||||
Transportation 7.7% | ||||||||
China Merchants Holdings International Co., Ltd. | 306,000 | 704,356 | ||||||
China Shipping Development Co., Ltd., Class H | 776,000 | 735,791 | ||||||
Cosco Pacific Ltd. | 690,000 | 679,497 | ||||||
2,119,644 | ||||||||
5,079,673 | ||||||||
Columbia 2.0% | ||||||||
Banks 2.0% | ||||||||
Bancolombia S.A. ADR | 29,100 | 566,577 | ||||||
Czech Republic 0.4% | ||||||||
Banks 0.4% | ||||||||
Komercni Banka A/S | 1,232 | 124,510 | ||||||
Egypt 4.1% | ||||||||
Telecommunication Services 4.1% | ||||||||
Orascom Telecom Holding S.A.E. -Reg’d GDR | 19,430 | 434,327 | ||||||
Telecom Egypt | 261,070 | 694,980 | ||||||
1,129,307 | ||||||||
India 3.1% | ||||||||
Telecommunication Services 3.1% | ||||||||
Bharti Airtel Ltd. * | 70,519 | 867,494 | ||||||
Kazahkstan 2.1% | ||||||||
Energy 2.1% | ||||||||
KazMunaiGas Exploration Production GDR | 39,727 | 591,932 | ||||||
Mexico 6.5% | ||||||||
Food, Beverage & Tobacco 1.7% | ||||||||
Grupo Modelo, S.A. de C.V., Series C | 157,300 | 476,397 | ||||||
Media 2.1% | ||||||||
Grupo Televisa S.A. ADR | 41,600 | 567,424 | ||||||
Telecommunication Services 2.7% | ||||||||
America Movil SAB de C.V., Series L ADR | 27,900 | 755,532 | ||||||
1,799,353 | ||||||||
Philippines 3.0% | ||||||||
Telecommunication Services 3.0% | ||||||||
Philippine Long Distance Telephone Co. ADR | 19,000 | 838,470 | ||||||
Poland 1.8% | ||||||||
Banks 1.8% | ||||||||
Bank Pekao S.A. | 20,634 | 496,902 | ||||||
Republic of Korea 1.6% | ||||||||
Banks 1.6% | ||||||||
KB Financial Group, Inc. * | 14,626 | 353,798 | ||||||
KB Financial Group, Inc. ADR * | 3,200 | 77,600 | ||||||
431,398 |
32 See financial notes
Laudus Mondrian Emerging Markets Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Russia 9.4% | ||||||||
Energy 6.2% | ||||||||
Gazprom - Reg’d ADR | 60,650 | 900,653 | ||||||
LUKOIL ADR | 21,800 | 817,500 | ||||||
1,718,153 | ||||||||
Telecommunication Services 3.2% | ||||||||
Mobile TeleSystems ADR | 29,200 | 873,664 | ||||||
2,591,817 | ||||||||
South Africa 6.7% | ||||||||
Energy 3.1% | ||||||||
Sasol | 29,267 | 848,385 | ||||||
Materials 2.0% | ||||||||
Impala Platinum Holdings Ltd. | 33,438 | 559,595 | ||||||
Telecommunication Services 1.6% | ||||||||
Telkom South Africa Ltd. | 39,246 | 437,260 | ||||||
1,845,240 | ||||||||
Taiwan 14.2% | ||||||||
Banks 2.4% | ||||||||
Chinatrust Financial Holding Co., Ltd. | 1,132,565 | 415,434 | ||||||
Mega Financial Holding Co., Ltd. | 666,000 | 238,940 | ||||||
654,374 | ||||||||
Semiconductors & Semiconductor Equipment 6.4% | ||||||||
MediaTek, Inc. | 56,410 | 531,025 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 832,000 | 1,252,868 | ||||||
1,783,893 | ||||||||
Technology Hardware & Equipment 2.9% | ||||||||
Asustek Computer, Inc. | 759,716 | 801,055 | ||||||
Telecommunication Services 2.5% | ||||||||
Chunghwa Telecom Co., Ltd. ADR | 38,385 | 699,759 | ||||||
3,939,081 | ||||||||
Thailand 2.7% | ||||||||
Energy 2.7% | ||||||||
PTT Public Co., Ltd. | 171,700 | 745,575 | ||||||
Turkey 6.0% | ||||||||
Banks 2.8% | ||||||||
Akbank T.A.S. | 257,836 | 757,604 | ||||||
Telecommunication Services 3.2% | ||||||||
Turkcell Iletisim Hizmetleri A/S | 182,172 | 892,378 | ||||||
1,649,982 | ||||||||
Total Common Stock (Cost $34,471,663) | 24,628,957 | |||||||
Preferred Stock 7.7% of net assets | ||||||||
Brazil 3.9% | ||||||||
Banks 1.8% | ||||||||
Itausa - Investimentos Itau S.A. | 142,667 | 490,163 | ||||||
Materials 2.1% | ||||||||
Companhia Vale do Rio Doce ADR (Vale) | 52,400 | 591,072 | ||||||
1,081,235 | ||||||||
Republic of Korea 3.8% | ||||||||
Automobiles & Components 1.6% | ||||||||
Hyundai Motor Co. | 30,510 | 459,923 | ||||||
Semiconductors & Semiconductor Equipment 2.2% | ||||||||
Samsung Electronics Co., Ltd. | 2,615 | 599,494 | ||||||
1,059,417 | ||||||||
Total Preferred Stock (Cost $3,668,123) | 2,140,652 | |||||||
Other Investment Company 2.0% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 559,133 | 559,133 | ||||||
Total Other Investment Company (Cost $559,133) | 559,133 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $41,371,385 and the unrealized appreciation and depreciation were $667,700 and ($14,710,343), respectively, with a net unrealized depreciation of ($14,042,643). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $15,845,646 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees. |
* | Non-income producing security. |
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
Reg’d — Registered
See financial notes 33
Laudus Mondrian Emerging Markets Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $38,698,919) | $27,328,742 | |||||
Cash | 16 | |||||
Foreign currency, at value (cost $527,570) | 526,422 | |||||
Receivables: | ||||||
Investments sold | 495,978 | |||||
Dividends | 151,655 | |||||
Fund shares sold | 24,622 | |||||
Due from investment adviser | 11,749 | |||||
Interest | 210 | |||||
Prepaid expenses | + | 358 | ||||
Total assets | 28,539,752 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 755,524 | |||||
Fund shares redeemed | 7,884 | |||||
Distribution and shareholder services fees | 372 | |||||
Accrued expenses | + | 54,869 | ||||
Total liabilities | 818,649 | |||||
Net Assets | ||||||
Total assets | 28,539,752 | |||||
Total liabilities | − | 818,649 | ||||
Net assets | $27,721,103 | |||||
Net Assets by Source | ||||||
Capital received from investors | 45,596,792 | |||||
Net investment income not yet distributed | 59,424 | |||||
Net realized capital losses | (6,559,044 | ) | ||||
Net unrealized capital losses | (11,376,069 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $1,927,289 | 361,338 | $5.33 | |||||||||
Select Shares | $559,365 | 104,793 | $5.34 | |||||||||
Institutional Shares | $25,234,449 | 4,731,965 | $5.33 |
34 See financial notes
Laudus Mondrian Emerging Markets Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $86,256) | $889,801 | |||||
Interest | + | 12,707 | ||||
Total Investment Income | 902,508 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (5,788,156 | ) | ||||
Net realized losses on foreign currency transactions | + | (67,909 | ) | |||
Net realized losses | (5,856,065 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (11,232,843 | ) | ||||
Net unrealized losses on foreign currency translations | + | (3,560 | ) | |||
Net unrealized losses | (11,236,403 | ) | ||||
Expenses | ||||||
Investment adviser fees | 320,323 | |||||
Custodian fees | 55,189 | |||||
Professional fees | 51,524 | |||||
Accounting and administration fees | 44,731 | |||||
Registration fees | 33,623 | |||||
Transfer agent fees | 26,113 | |||||
Shareholder reports | 8,928 | |||||
Distribution and shareholder services fees (Investor Shares) | 7,969 | |||||
Trustees’ fees | 5,684 | |||||
Sub-Accounting fees | ||||||
Investor Shares | 4,499 | |||||
Select Shares | 1,263 | |||||
Interest expense | 1,364 | |||||
Other expenses | + | 18,096 | ||||
Total expenses | 579,306 | |||||
Expense reduction by adviser | − | 180,441 | ||||
Custody credits | − | 126 | ||||
Net expenses | 398,739 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 902,508 | |||||
Net expenses | − | 398,739 | ||||
Net investment income | 503,769 | |||||
Net realized losses | (5,856,065 | ) | ||||
Net unrealized losses | + | (11,236,403 | ) | |||
Decrease in net assets from operations | ($16,588,699 | ) |
See financial notes 35
Laudus Mondrian Emerging Markets Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||
Net investment income | $503,769 | $42,705 | ||||||||
Net realized losses | (5,856,065 | ) | (786,482 | ) | ||||||
Net unrealized losses | + | (11,236,403 | ) | (139,666 | ) | |||||
Decrease in net assets from operations | (16,588,699 | ) | (883,443 | ) | ||||||
Distributions to Shareholders | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 27,359 | 595 | ||||||||
Select Shares | 14,482 | 1,121 | ||||||||
Institutional Shares | + | 331,693 | 28,590 | |||||||
Total distributions from net investment income | $373,534 | $30,306 |
Transactions in Fund Shares |
4/1/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 613,995 | $4,874,466 | 221,053 | $2,073,502 | ||||||||||||||
Select Shares | 256,716 | 1,613,030 | 97,917 | 934,439 | ||||||||||||||
Institutional Shares | + | 3,669,648 | 25,898,356 | 2,608,232 | 25,103,782 | |||||||||||||
Total shares sold | 4,540,359 | $32,385,852 | 2,927,202 | $28,111,723 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 4,795 | $26,132 | 62 | $571 | ||||||||||||||
Select Shares | 2,510 | 13,678 | 122 | 1,121 | ||||||||||||||
Institutional Shares | + | 35,677 | 194,084 | 3,100 | 28,584 | |||||||||||||
Total shares reinvested | 42,982 | $233,894 | 3,284 | $30,276 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (465,969 | ) | ($2,619,733 | ) | (12,598 | ) | ($113,103 | ) | ||||||||||
Select Shares | (236,046 | ) | (1,396,739 | ) | (16,426 | ) | (152,547 | ) | ||||||||||
Institutional Shares | + | (1,062,185 | ) | (6,030,105 | ) | (522,507 | ) | (4,852,433 | ) | |||||||||
Total shares redeemed | (1,764,200 | ) | ($10,046,577 | ) | (551,531 | ) | ($5,118,083 | ) | ||||||||||
Net transactions in fund shares | 2,819,141 | $22,573,169 | 2,378,955 | $23,023,916 | ||||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 2,378,955 | $22,110,167 | — | $- | ||||||||||||||
Total increase | + | 2,819,141 | 5,610,936 | 2,378,955 | 22,110,167 | |||||||||||||
End of period | 5,198,096 | $27,721,103 | 2,378,955 | $22,110,167 | ||||||||||||||
Net investment income not yet distributed/ | $59,424 | ($2,902 | ) | |||||||||||||||
Distribution in excess of net investment income |
* | Commencement of operations |
36 See financial notes
Laudus Mondrian International Fixed Income Fund
Financial Statements
Financial Highlights
4/01/08– | 11/2/071– | |||||||
Investor Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 11.28 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.18 | 0.05 | ||||||
Net realized and unrealized gains (losses) | (0.80 | ) | 1.27 | |||||
Total from investment operations | (0.62 | ) | 1.32 | |||||
Less distributions: | ||||||||
Distributions from net investment income | (0.33 | ) | (0.04 | ) | ||||
Net asset value at end of period | 10.33 | 11.28 | ||||||
Total return (%) | (5.69 | ) | 13.27 | 2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 1.10 | 1.10 | 3 | |||||
Gross operating expenses | 1.27 | 1.57 | 3 | |||||
Net investment income (loss) | 1.88 | 1.61 | 3 | |||||
Portfolio turnover rate | 92 | 1 | 2 | |||||
Net assets, end of period ($ x 1,000) | 20,102 | 16,148 |
4/01/08– | 11/2/071– | |||||||
Select Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 11.29 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.24 | 0.06 | ||||||
Net realized and unrealized gains (losses) | (0.84 | ) | 1.28 | |||||
Total from investment operations | (0.60 | ) | 1.34 | |||||
Less distributions: | ||||||||
Distributions from net investment income | (0.37 | ) | (0.05 | ) | ||||
Net asset value at end of period | 10.32 | 11.29 | ||||||
Total return (%) | (5.49 | ) | 13.42 | 2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 0.82 | 0.82 | 3 | |||||
Gross operating expenses | 1.02 | 1.31 | 3 | |||||
Net investment income (loss) | 2.17 | 1.89 | 3 | |||||
Portfolio turnover rate | 92 | 1 | 2 | |||||
Net assets, end of period ($ x 1,000) | 24,033 | 20,078 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
See financial notes 37
Laudus Mondrian International Fixed Income Fund
Financial Highlights continued
4/01/08– | 11/2/071– | |||||||
Institutional Shares | 3/31/09 | 3/31/08 | ||||||
Per-Share Data ($) | ||||||||
Net asset value at beginning of period | 11.29 | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.27 | 0.07 | ||||||
Net realized and unrealized gains (losses) | (0.86 | ) | 1.27 | |||||
Total from investment operations | (0.59 | ) | 1.34 | |||||
Less distributions: | ||||||||
Distributions from net investment income | (0.38 | ) | (0.05 | ) | ||||
Net asset value at end of period | 10.32 | 11.29 | ||||||
Total return (%) | (5.40 | ) | 13.42 | 2 | ||||
Ratios/Supplemental Data (%) | ||||||||
Ratios to average net assets: | ||||||||
Net operating expenses | 0.75 | 0.75 | 3 | |||||
Gross operating expenses | 0.87 | 1.23 | 3 | |||||
Net investment income (loss) | 2.24 | 1.98 | 3 | |||||
Portfolio turnover rate | 92 | 1 | 2 | |||||
Net assets, end of period ($ x 1,000) | 64,562 | 52,214 |
1 Commencement of operations.
2 Not annualized.
3 Annualized.
38 See financial notes
Laudus Mondrian International Fixed Income Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
91 | .4% | Government Bonds | 102,890,870 | 99,369,387 | ||||||||
2 | .8% | Government Agency Obligations | 2,552,443 | 2,975,414 | ||||||||
2 | .3% | Corporate Bonds | 3,725,549 | 2,536,156 | ||||||||
0 | .7% | Covered Bond | 952,427 | 709,972 | ||||||||
1 | .6% | Other Investment Company | 1,767,464 | 1,767,464 | ||||||||
98 | .8% | Total Investments | 111,888,753 | 107,358,393 | ||||||||
1 | .2% | Other Assets and Liabilities, Net | 1,338,907 | |||||||||
100 | .0% | Net Assets | 108,697,300 |
Security | Face Amount | Value | ||||||
Rate, Maturity Date | (local currency) | ($) | ||||||
Government Bonds 91.4% of net assets | ||||||||
Austria 2.7% | ||||||||
Austria Government Bond | ||||||||
3.50%, 07/15/15 | 2,200,000 | 2,931,627 | ||||||
Belgium 7.3% | ||||||||
Belgium Government Bond | ||||||||
3.75%, 09/28/15 | 2,500,000 | 3,361,451 | ||||||
5.50%, 09/28/17 | 3,100,000 | 4,617,775 | ||||||
7,979,226 | ||||||||
France 9.0% | ||||||||
France Government Bond OAT | ||||||||
4.00%, 04/25/13 | 400,000 | 563,608 | ||||||
4.00%, 04/25/14 | 370,000 | 521,299 | ||||||
5.00%, 10/25/16 | 2,700,000 | 4,006,257 | ||||||
5.75%, 10/25/32 | 2,900,000 | 4,711,178 | ||||||
9,802,342 | ||||||||
Germany 1.7% | ||||||||
Bundesrepublik Deutschland | ||||||||
4.00%, 01/04/18 | 800,000 | 1,155,108 | ||||||
4.75%, 07/04/34 | 500,000 | 736,389 | ||||||
1,891,497 | ||||||||
Ireland 2.8% | ||||||||
Ireland Government Bond | ||||||||
4.50%, 10/18/18 | 2,500,000 | 3,092,579 | ||||||
Italy 13.1% | ||||||||
Italy Government International Bond | ||||||||
2.75%, 06/15/10 | 2,500,000 | 3,372,784 | ||||||
4.75%, 02/01/13 | 2,400,000 | 3,397,614 | ||||||
4.25%, 08/01/14 | 1,340,000 | 1,863,926 | ||||||
4.50%, 02/01/18 | 2,500,000 | 3,451,098 | ||||||
4.00%, 02/01/37 | 1,400,000 | 1,547,563 | ||||||
Republic of Italy | ||||||||
1.80%, 02/23/10 | 58,000,000 | 584,531 | ||||||
14,217,516 | ||||||||
Japan 35.8% | ||||||||
Development Bank of Japan | ||||||||
1.75%, 03/17/17 | 40,000,000 | 413,256 | ||||||
Japan Government Ten Year Bond | ||||||||
1.40%, 09/20/11 | 110,000,000 | 1,136,379 | ||||||
1.10%, 09/20/12 | 400,000,000 | 4,109,285 | ||||||
1.20%, 09/20/12 | 66,000,000 | 680,312 | ||||||
0.80%, 03/20/13 | 260,000,000 | 2,639,781 | ||||||
0.90%, 06/20/13 | 440,000,000 | 4,482,146 | ||||||
1.60%, 09/20/13 | 440,000,000 | 4,617,508 | ||||||
1.30%, 12/20/14 | 331,000,000 | 3,424,346 | ||||||
1.50%, 03/20/15 | 400,000,000 | 4,186,816 | ||||||
2.00%, 03/20/16 | 460,000,000 | 4,976,918 | ||||||
1.90%, 06/20/16 | 460,000,000 | 4,946,665 | ||||||
Japan Government Thirty Year Bond | ||||||||
2.40%, 12/20/34 | 300,000,000 | 3,246,974 | ||||||
38,860,386 | ||||||||
Mexico 4.9% | ||||||||
Mexican Bonos | ||||||||
9.00%, 12/20/12 | 24,600,000 | 1,858,590 | ||||||
8.00%, 12/07/23 | 50,000,000 | 3,511,966 | ||||||
5,370,556 | ||||||||
Netherlands 6.3% | ||||||||
Netherlands Government Bond | ||||||||
4.25%, 07/15/13 | 2,100,000 | 2,979,921 | ||||||
3.75%, 07/15/14 | 2,750,000 | 3,818,974 | ||||||
6,798,895 | ||||||||
Poland 7.8% | ||||||||
Poland Government Bond | ||||||||
5.25%, 04/25/13 | 2,400,000 | 672,479 | ||||||
5.00%, 10/24/13 | 3,300,000 | 911,876 | ||||||
6.25%, 10/24/15 | 3,100,000 | 902,723 |
See financial notes 39
Laudus Mondrian International Fixed Income Fund
Portfolio Holdings continued
Security | Face Amount | Value | ||||||
Rate, Maturity Date | (local currency) | ($) | ||||||
5.25%, 10/25/17 | 11,000,000 | 2,969,412 | ||||||
5.75%, 09/23/22 | 10,900,000 | 2,968,273 | ||||||
8,424,763 | ||||||||
Total Government Bonds (Cost $102,890,870) | 99,369,387 | |||||||
Government Agency Obligations 2.8% of net assets | ||||||||
Germany 0.7% | ||||||||
Kreditanstalt fuer Wiederaufbau | ||||||||
2.05%, 09/21/09 | 70,000,000 | 711,704 | ||||||
Japan 2.1% | ||||||||
Japan Finance Org. for Municipal Enterprises | ||||||||
1.55%, 02/21/12 | 100,000,000 | 1,030,916 | ||||||
1.35%, 11/26/13 | 120,000,000 | 1,232,794 | ||||||
2,263,710 | ||||||||
Total Government Agency Obligations (Cost $2,552,443) | 2,975,414 | |||||||
Corporate Bonds 2.3% of net assets | ||||||||
Netherlands 0.4% | ||||||||
ING Bank N.V. | ||||||||
6.13%, 05/29/09 (a)(b)(c) | 490,000 | 410,790 | ||||||
United Kingdom 1.7% | ||||||||
HSBC Holdings plc | ||||||||
6.25%, 03/19/18 (c) | 500,000 | 658,244 | ||||||
Lloyds TSB Bank plc | ||||||||
5.63%, 03/05/13 (a)(b)(c) | 620,000 | 620,867 | ||||||
SL Finance plc | ||||||||
6.38%, 07/12/09 (a)(b)(c) | 290,000 | 223,355 | ||||||
Standard Chartered Bank | ||||||||
5.88%, 09/26/17 (c) | 350,000 | 357,166 | ||||||
1,859,632 | ||||||||
United States 0.2% | ||||||||
Zurich Finance (USA), Inc. | ||||||||
4.50%, 06/15/09 (a)(b)(c) | 280,000 | 265,734 | ||||||
Total Corporate Bonds (Cost $3,725,549) | 2,536,156 | |||||||
Covered Bond 0.7% of net assets | ||||||||
Ireland 0.7% | ||||||||
Depfa ACS Bank | ||||||||
1.65%, 12/20/16 | 110,000,000 | 709,972 | ||||||
Total Covered Bond (Cost $952,427) | 709,972 | |||||||
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Other Investment Company 1.6% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 1,767,464 | 1,767,464 | ||||||
Total Other Investment Company (Cost $1,767,464) | 1,767,464 | |||||||
End of Investments. | ||||||||
At 03/31/09 the tax basis cost of the fund’s investments was $111,888,753, and the unrealized appreciation and depreciation were $1,454,332 and ($5,984,692), respectively, with a net depreciation of ($4,530,360). |
(a) | Variable-rate security. | |
(b) | Callable security. | |
(c) | Illiquid security. At the period end, the value of these amounted to $2,536,156 or 2.3% of net assets. | |
In addition to the above, the fund held the following at 03/31/09.
Currency | Amount of | Currency | Amount of | |||||||||||||||||
Expiration | to be | Currency to be | to be | Currency to be | Unrealized | |||||||||||||||
Date | Received | Received | Delivered | Delivered | Gains / Losses | |||||||||||||||
Forward Foreign Currency Contracts | ||||||||||||||||||||
04/30/2009 | GBP | 9,899,500 | EUR | 10,723,296 | 188,913 | |||||||||||||||
04/30/2009 | GBP | 9,899,500 | EUR | 10,723,296 | (229,725 | ) | ||||||||||||||
Net unrealized losses on Forward Foreign Currency Contracts | (40,812 | ) |
40 See financial notes
Laudus Mondrian International Fixed Income Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $111,888,753) | $107,358,393 | |||||
Foreign currency, at value (cost $3,979) | 3,940 | |||||
Receivables: | ||||||
Interest | 1,394,102 | |||||
Fund shares sold | 317,123 | |||||
Unrealized gains on forward foreign currency contracts | 188,913 | |||||
Prepaid expenses | + | 1,340 | ||||
Total assets | 109,263,811 | |||||
Liabilities | ||||||
Payables: | ||||||
Investment adviser fees | 5,783 | |||||
Distributions to shareholders | 149,232 | |||||
Fund shares redeemed | 83,800 | |||||
Distribution and shareholder services fees | 4,267 | |||||
Unrealized losses on forward foreign currency contracts | 229,725 | |||||
Accrued expenses | + | 93,704 | ||||
Total liabilities | 566,511 | |||||
Net Assets | ||||||
Total assets | 109,263,811 | |||||
Total liabilities | − | 566,511 | ||||
Net assets | $108,697,300 | |||||
Net Assets by Source | ||||||
Capital received from investors | 112,265,714 | |||||
Net investment income not yet distributed | 1,015,851 | |||||
Net realized capital gains | 7,990 | |||||
Net unrealized capital losses | (4,592,255 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $20,102,325 | 1,946,934 | $10.33 | |||||||||
Select Shares | $24,033,421 | 2,328,843 | $10.32 | |||||||||
Institutional Shares | $64,561,554 | 6,258,143 | $10.32 |
See financial notes 41
Laudus Mondrian International Fixed Income Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Interest | $2,937,642 | |||||
Net Realized Gains and Losses | ||||||
Net realized gains on investments | 903,567 | |||||
Net realized gains on foreign currency transactions | + | 1,321,168 | ||||
Net realized gains | 2,224,735 | |||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (10,512,451 | ) | ||||
Net unrealized losses on foreign currency translations | + | (28,333 | ) | |||
Net unrealized losses | (10,540,784 | ) | ||||
Expenses | ||||||
Investment adviser fees | 589,430 | |||||
Transfer agent fees | 28,642 | |||||
Distribution and shareholder services fees (Investor Shares) | 56,126 | |||||
Professional fees | 55,107 | |||||
Accounting and administrator fees | 43,912 | |||||
Shareholder reports | 42,252 | |||||
Registration fees | 39,777 | |||||
Sub-accounting fees | ||||||
Investor Shares | 34,692 | |||||
Select Shares | 34,553 | |||||
Custodian fees | 30,647 | |||||
Interest expense | 5,254 | |||||
Trustees’ fees | 5,104 | |||||
Other expenses | + | 11,440 | ||||
Total expenses | 976,936 | |||||
Expense reduction by adviser | − | 143,612 | ||||
Custody credits | − | 10 | ||||
Net expenses | 833,314 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 2,937,642 | |||||
Net expenses | − | 833,314 | ||||
Net investment income | 2,104,328 | |||||
Net realized gains | 2,224,735 | |||||
Net unrealized losses | + | (10,540,784 | ) | |||
Decrease in net assets from operations | ($6,211,721 | ) |
42 See financial notes
Laudus Mondrian International Fixed Income Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/01/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||
Net investment income | $2,104,328 | $338,363 | ||||||||
Net realized gains (losses) | 2,224,735 | (77,981 | ) | |||||||
Net unrealized gains (losses) | + | (10,540,784 | ) | 5,948,529 | ||||||
Increase (Decrease) in net assets from operations | (6,211,721 | ) | 6,208,911 | |||||||
Distributions to Shareholders | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 695,407 | 33,714 | ||||||||
Select Shares | 797,217 | 50,639 | ||||||||
Institutional Shares | + | 1,848,694 | 142,251 | |||||||
Total distributions from net investment income | 3,341,318 | 226,604 |
Transactions in Fund Shares |
4/01/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 1,307,895 | $14,146,538 | 1,546,672 | $16,580,538 | ||||||||||||||
Select Shares | 1,372,544 | 14,711,236 | 1,854,202 | 19,621,852 | ||||||||||||||
Institutional Shares | + | 4,716,167 | 49,917,667 | 4,705,565 | 49,150,016 | |||||||||||||
Total shares sold | 7,396,606 | $78,775,441 | 8,106,439 | $85,352,406 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 58,064 | $636,596 | 2,878 | $31,299 | ||||||||||||||
Select Shares | 62,740 | 686,296 | 3,845 | 41,629 | ||||||||||||||
Institutional Shares | + | 119,135 | 1,302,489 | 12,658 | 136,064 | |||||||||||||
Total shares reinvested | 239,939 | $2,625,381 | 19,381 | $208,992 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (850,555 | ) | ($8,879,908 | ) | (118,020 | ) | ($1,271,229 | ) | ||||||||||
Select Shares | (885,184 | ) | (9,266,453 | ) | (79,304 | ) | (837,623 | ) | ||||||||||
Institutional Shares | + | (3,202,902 | ) | (33,443,875 | ) | (92,480 | ) | (995,100 | ) | |||||||||
Total shares redeemed | (4,938,641 | ) | ($51,590,236 | ) | (289,804 | ) | ($3,103,952 | ) | ||||||||||
Net transactions in fund shares | 2,697,904 | $29,810,586 | 7,836,016 | $82,457,446 | ||||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/01/08-3/31/09 | 11/2/07*-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 7,836,016 | $88,439,753 | — | $- | ||||||||||||||
Total increase | + | 2,697,904 | 20,257,547 | 7,836,016 | 88,439,753 | |||||||||||||
End of period | 10,533,920 | $108,697,300 | 7,836,016 | $88,439,753 | ||||||||||||||
Net investment income not yet distributed | $1,015,851 | $36,096 |
* | Commencement of operations. |
See financial notes 43
Laudus Mondrian Funds
Financial Notes
1. Business Structure of the Funds:
Each of the Laudus Mondrian Funds in this report is a series of Laudus Trust (the ”Trust”), an open-end management investment company. The Trust was organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the Trust including the Funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):
Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg U.S. Small Capitalization Fund Laudus Rosenberg Long/Short Equity Fund Laudus Rosenberg International Equity Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund | Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund | |
The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund commenced operations on November 2, 2007. The Laudus Mondrian International Equity Fund and the Laudus Mondrian Global Equity Fund commenced operations on June 17, 2008 and each Fund offers three share classes: Investor Shares, Select Shares and Institutional Shares. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bear different distribution and sub-transfer agent expenses and separate voting rights on matters pertaining solely to that class of shares.
Each Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each Fund may also keeps certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the Funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America.
(a) Security Valuation:
The Funds value the securities in their portfolios every business day. The Funds use the following policies to value various types of securities:
• | Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate. | |
• | Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities’ closing market values adjusted for changes in value that may occur between the close of foreign exchange and the time at which Funds’ shares are priced. The Board of Trustees regularly reviews fair value determinations made by the Funds pursuant to the procedures. | |
• | Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service. | |
• | Futures and forwards: valued at their settlement prices as of the close of their exchanges (for futures) or at a market value based on that day’s exchange rates (for forwards). |
44
Laudus Mondrian Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
• | Short-term securities (60 days or less to maturity): valued at amortized cost, when it approximates market value. | |
• | Underlying funds: valued at their respective net asset values as determined by those Funds in accordance with the 1940 Act for a given day. |
(b) Portfolio Investments:
Delayed-Delivery: The Funds may buy securities on a delayed-delivery basis. In these transactions, a Fund agrees to buy a security for a stated price, with settlement generally occurring within two weeks. If the security’s value falls before settlement occurs, the Fund could end up paying more for the security than its market value at the time of settlement. The Funds have set aside sufficient securities as collateral for those securities bought on a delayed-delivery basis.
Futures Contract: The Funds may invest in futures contracts. Futures contracts involve certain risks because they can be very sensitive to market movements.
One risk is that the price of a futures contract may not move in perfect correlation with the price of the underlying securities. Another risk is that, at certain times, it may be impossible for a Fund to close out a position in a futures contract, due to a difference in trading hours or to market conditions that may reduce the liquidity for a futures contract or its underlying securities. The potential for losses associated with futures contracts may exceed amounts recorded in the Statement of Assets and Liabilities.
Because futures contracts carry inherent risks, a Fund must give the broker a deposit of cash and/or securities (the “initial margin”) whenever it enters into the futures contract. The amount of the deposit may vary from one contract to another, but it is generally a percentage of the contract amount. Subsequent payments (“variation margin”) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Futures are traded publicly on exchanges, and their market value changes daily.
Forward Currency Contract: The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties.
As with futures, forwards involve certain risks that are not fully reflected in the Funds’ financial statements. If counter-parties to the contracts or if the value of the foreign currency changes unfavorably, the Funds could sustain a loss.
Repurchase Agreement: The Funds may enter into repurchase agreements. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created.
The Funds’ repurchase agreements will be fully collateralized by U.S. government securities or U.S. government agency securities. All collateral is held by the Funds’ custodian (or, with tri-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The Funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuation in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Gains realized by the Funds on the sale of securities in certain foreign countries are subject to non-U.S. taxes. The Funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
45
Laudus Mondrian Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
When a Fund closes out a futures or forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly. A Fund records the daily change in market value of futures, and also the change in the amount of margin deposit required (“due to/from broker”).
(d) Investment Income:
Interest income is recorded as it accrues. If a fund buys a debt security at a discount (that is, for less than its face value) or a premium (more than face value), it amortizes the discount or premium from the current date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. If the security is callable (meaning that the issuer has the option to pay it off before its maturity date), then the fund amortizes the premium to the security’s call date and price, rather than the maturity date and price.
(e) Expenses:
Expenses that are specific to a Fund or a class within the trust are charged directly to that Fund or class. Expenses that are common to all Funds within the trust generally are allocated among the Funds in proportion to their average daily net assets.
For Funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to its average daily net assets.
(f) Distributions to Shareholders:
The Funds make distributions from net investment income and net realized capital gains once a year, if any, with the exception of Laudus Mondrian International Fixed Income Fund which pays quarterly dividends.
(g) Custody Credit:
Certain Funds have an arrangement with their custodian bank under which the Fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts (if any) are disclosed in the Statement of Operations as a reduction to the Funds’ operating expenses.
(h) Accounting Estimates:
The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.
(i) Federal Income Taxes:
The Funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the Funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as a Fund meets the tax requirements, it is not required to pay federal income tax.
(j) Indemnification:
Under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts with their vendors and others that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.
(k) Accounting Pronouncements:
The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), Fair Value Measurements, effective April 1, 2008. The Laudus Mondrian International Equity Fund and the Laudus Mondrian Global
46
Laudus Mondrian Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
Equity Fund adopted SFAS No. 157 when they commenced operations on June 17, 2008. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements.
SFAS No. 157 establishes a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
• | Level 1 — quoted prices in active markets for identical securities | |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
• | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2009:
Laudus Mondrian International | Laudus Mondrian Global | |||||||||||||||
Equity Fund | Equity Fund | |||||||||||||||
Other | Other | |||||||||||||||
Investments | Financial | Investments | Financial | |||||||||||||
in Securities | Instruments* | in Securities | Instruments* | |||||||||||||
Level 1 | $922,978 | $— | $1,161,752 | $— | ||||||||||||
Level 2 | 17,901,974 | — | 1,734,375 | — | ||||||||||||
Level 3 | — | — | — | — | ||||||||||||
$18,824,952 | $— | $2,896,127 | $— | |||||||||||||
Laudus Mondrian Emerging | Laudus Mondrian International | |||||||||||||||
Markets Fund | Fixed Income Fund | |||||||||||||||
Other | Other | |||||||||||||||
Investments | Financial | Investments | Financial | |||||||||||||
in Securities | Instruments* | in Securities | Instruments* | |||||||||||||
Level 1 | $11,483,096 | — | $1,767,464 | ($40,812 | ) | |||||||||||
Level 2 | 15,845,646 | — | 105,590,929 | — | ||||||||||||
Level 3 | — | — | — | — | ||||||||||||
$27,328,742 | $— | $107,358,393 | $— | |||||||||||||
* | Other Financial Instruments are forward contracts which are not included in Portfolio Holdings and valued at the unrealized appreciation or depreciation. |
On April 9, 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff position (“FSP”) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 is effective for interim and annual reporting periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 on the Funds’ or Investment Company’s financial statement disclosures.
In March 2008, the FASB issued Statements of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS No. 161”) SFAS No. 161 is effective for fiscal years and interim periods beginning after November 15, 2008 SFAS No. 161 requires enhanced disclosures about Funds’ derivative and hedging activities Management is currently evaluating the impact of the adoption of SFAS No. 161 on the Funds’ financial statement disclosures.
47
Laudus Mondrian Funds
Financial Notes (continued)
3. Risk factors:
Investing in the Funds may involve certain risks including, but not limited to, those described below:
The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In addition, the equity market tends to move in cycles which may cause stock prices to fall over short or extended periods of time.
Stocks of large-size companies tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of mid- or small-size companies, for instance — the Fund’s performance also will lag those investments.
A Fund may also be subject to additional risk because it invests primarily in the stocks of companies with small and mid-sized market capitalizations, which tend to be less liquid and more volatile than stocks of companies with larger market capitalizations. These companies may also have limited product lines, markets or financial resources or may depend on a few key employees. In addition, small and mid cap stocks tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of large-size companies, for instance — the Fund’s performance also will lag those investments.
Investments in securities of foreign issuers involve certain risks that are more significant than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. The securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies. A fund with foreign investments may also experience more rapid or extreme changes in value than a fund that invests solely in securities of U.S. companies because the securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries.
Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.
Bond prices generally fall when interest rates rise. Bonds with longer maturities tend to be more sensitive to this risk. Fund performance also could be affected if an issuer or guarantor of a bond held by the Fund fails to make timely principal or interest payments or otherwise honor its obligations. Lower-quality bonds are considered speculative with respect to its issuer’s ability to make timely payments or otherwise honor its obligations. In addition, prices of lower-quality bonds tend to be more volatile than those of investment-grade bonds, and may fall based on bad news about the issuer, an industry or the overall economy. Also, bonds of foreign issuers may be more volatile than those of comparable bonds from U.S. issuers, for reasons ranging from limited issuer information to the risk of political upheaval.
4. Affiliates and Affiliated Transactions:
The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.
Charles Schwab Investment Management, Inc. (”CSIM” or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the Funds’ investment adviser pursuant to Management Contracts (“Advisory Agreement”) between it and the Trust. Mondrian Investment Partners Limited (“Mondrian”), the Funds’ sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM.
48
Laudus Mondrian Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
For its advisory services to each Fund, the Investment Adviser is entitled to receive an annual fee payable monthly based on the Funds’ average daily net assets described as follows.
First $1 billion | Over $1 billion | |||||||
Laudus Mondrian International Equity Fund | 0.85% | 0.80% | ||||||
Laudus Mondrian Global Equity Fund | 0.85% | 0.80% | ||||||
Laudus Mondrian Emerging Markets Fund | 1.20% | 1.15% | ||||||
Laudus Mondrian International Fixed Income Fund | 0.60% | 0.60% |
CSIM (not the Funds) pays a portion of the management fees it receives to Mondrian in return for its services.
CSIM has contractually agreed, until at least July 30, 2011, to waive a portion of its management fee and bear certain expenses of each Fund. As such, CSIM further agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring account fees, fees on securities transactions such as exchange fees, dividends and interest on securities sold short, service fees, interest (overdraft charges), taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Funds’ business as follows:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||
Investor Shares | 1.40% | 1.40% | 1.80% | 1.10% | ||||||||||||
Select Shares | 1.12% | 1.12% | 1.52% | 0.82% | ||||||||||||
Institutional Shares | 1.05% | 1.05% | 1.45% | 0.75% |
Effective May 5, 2009, no further fees will be assessed under the Distribution and Shareholder Service Plan or for sub-accounting and sub-transfer agency services on the Investor and Select Shares of the Laudus Mondrian International Fixed Income Fund, which will make the expense limitation on the Investor and Select Shares 0.75%.
Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Funds’ net expenses to exceed the current limit (as stated in CSIM’s contractual undertaking) during the respective year. As of March 31, 2009, the balance of recoupable expenses is as follows:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Expire | Equity Fund | Fund | Fund | Income Fund | ||||||||||||
2010 | — | — | $80,048 | $84,455 | ||||||||||||
2011 | $106,871 | $90,576 | $180,441 | $143,612 |
5. Other Shareholders Services
Boston Financial Data Services, Inc. (BFDS) provides the transfer agent services to the Funds, and receives transfer agent fees from the Funds as shown in the Statement of Operations.
The Trust has a Distribution and Shareholder Service Plan with respect to its Investor Shares pursuant to Rule 12b-1 under the 1940 Act. The Investor Shares of the Funds are sold on a continuous basis by the Trust’s Distributor-ALPS Distributors, Inc. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to reimburse, out of the Investor and Select Class assets of the Funds, financial intermediaries that provide sub-accounting and sub-transfer agency services in connection with Investor or Select Class shares of the Funds an amount up to 0.15% of the average daily net assets of that class on an annual basis.
Effective May 5, 2009, no further fees will be assessed on Investor and Select Shares of the Laudus Mondrian International Fixed Income Fund for sub-accounting and sub-transfer agency services or under the Distribution and Shareholder Service Plan.
49
Laudus Mondrian Funds
Financial Notes (continued)
6. Board of Trustees
Trustees may include people who are officers and/or directors of other fund families managed by the Investment Adviser. Federal securities law limits the percentage of the “interested persons” who may serve on a trust’s board, and the Laudus Funds are in compliance with these limitations. The Funds did not pay any of these persons for their service as trustees, but did pay non-interested persons (Independent Trustees), as noted in each Fund’s Statement of Operations.
Until September 2006, a Retirement Plan existed for the Independent Trustees. After the termination of the Retirement Plan, the previously accrued and unpaid benefits continue to be adjusted by performance of the Funds. As a result, the amount of the Retirement Payable to any Independent Trustee may increase or decrease based on the performance of the Funds.
7. Borrowing from Banks:
The Laudus Mondrian International Equity Fund, Laudus Mondrian Global Equity Fund, Laudus Mondrian Emerging Market Fund, and the Laudus Mondrian International Fixed Income Fund have access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing.
There were no borrowings from the line of credit for the Funds during the period. However, the Funds utilized their overdraft facility and incurred interest expense, which is disclosed in the Statement of Operation. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
8. Purchases and Sales of Investment Securities:
For the period ended March 31, 2009, purchases and sales of securities (excluding short-term obligations) were as follows:
Purchases | Sales | |||||||
Laudus Mondrian International Equity Fund | $25,522,651 | $1,025,181 | ||||||
Laudus Mondrian Global Equity Fund | 5,610,399 | 526,685 | ||||||
Laudus Mondrian Emerging Markets Fund | 37,448,529 | 13,532,499 | ||||||
Laudus Mondrian International Fixed Income Fund | 118,101,083 | 87,035,580 |
9. Redemption Fee:
The Funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior period are:
Current Period | Prior Period | |||||||
(4/1/08-3/31/09) | (11/2/07-3/31/08) | |||||||
Laudus Mondrian International Equity Fund | $48 | $— | ||||||
Laudus Mondrian Global Equity Fund | 5 | — | ||||||
Laudus Mondrian Emerging Markets Fund | 1,968 | 1,452 | ||||||
Laudus Mondrian International Fixed Income Fund | 9,018 | 837 |
50
Laudus Mondrian Funds
Financial Notes (continued)
10. Federal Income Taxes:
As of March 31, 2009, the components of distributable earnings on a tax-basis were as follows:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||
Undistributed ordinary income | $117,444 | $25,801 | $58,408 | $1,128,566 | ||||||||||||
Undistributed long-term capital gains | — | — | — | — | ||||||||||||
Accumulated capital and other losses | — | — | — | — | ||||||||||||
Unrealized appreciation | 40,278 | 10,609 | 667,700 | 1,454,332 | ||||||||||||
Unrealized depreciation | (5,464,654 | ) | (1,946,708 | ) | (14,710,343 | ) | (5,984,692 | ) | ||||||||
Other unrealized appreciation/(depreciation) | 1,426 | 195 | (5,892 | ) | (61,895 | ) | ||||||||||
Net unrealized appreciation/(depreciation) | ($5,422,950 | ) | ($1,935,904 | ) | ($14,048,535 | ) | ($4,592,255 | ) | ||||||||
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.
For tax purposes, capital loss carry forwards may be used to offset future realized capital gains. As of March 31, 2009, the funds had capital loss carry forwards available to offset net capital gains before the expiration dates:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Expire | Fund | Fund | Fund | Income Fund | ||||||||||||
2017 | — | 4,137 | 1,445,702 | — | ||||||||||||
Total | $— | $4,137 | $1,445,702 | $— | ||||||||||||
For tax purposes, realized net capital losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2009 the Funds had aggregate deferred realized net capital losses and capital losses utilized as follows:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||
Capital losses deferred | $634,252 | $282,446 | $2,440,876 | $— | ||||||||||||
Currency losses deferred | — | — | — | — | ||||||||||||
Capital losses utilized | — | — | — | — |
The tax-basis components of distributions paid during the current and prior period were:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||
Current period distribution | ||||||||||||||||
Ordinary income | $181,435 | $119,257 | $373,534 | $3,341,318 | ||||||||||||
Long-term capital gains | — | — | — | — | ||||||||||||
Return of capital | — | — | — | — | ||||||||||||
Prior period distribution | ||||||||||||||||
Ordinary income | $— | $— | $30,306 | $226,604 | ||||||||||||
Long-term capital gains | — | — | — | — | ||||||||||||
Return of capital | — | — | — | — |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due
51
Laudus Mondrian Funds
Financial Notes (continued)
10. Federal Income Taxes (continued):
primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The permanent book and tax basis differences may result in reclassifications between capital account and other accounts as required. The adjustments have no impact on net assets or the results of operations. As of March 31, 2009, the Funds made the following reclassifications:
Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | Laudus Mondrian | |||||||||||||
International Equity | Global Equity | Emerging Markets | International Fixed | |||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||
Capital shares | ($12 | ) | ($16 | ) | $— | $— | ||||||||||
Undistributed net investment income | 41,268 | 62,990 | (67,909 | ) | 2,216,745 | |||||||||||
Net realized capital gains and losses | (41,256 | ) | (62,974 | ) | 67,909 | (2,216,745 | ) |
As of March 31, 2009, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and state purposes, four years from the date of filing), as applicable to the Funds, and has determined that no provision for income tax is required in the Funds’ financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2009, the Funds did not incur any interest or penalties.
52
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Laudus Mondrian International Equity Fund
Laudus Mondrian Global Equity Fund
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Fixed Income Fund
Laudus Mondrian International Equity Fund
Laudus Mondrian Global Equity Fund
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Fixed Income Fund
In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Laudus Mondrian International Equity Fund, Laudus Mondrian Global Equity Fund, Laudus Mondrian Emerging Markets Fund and Laudus Mondrian International Fixed Income Fund (four of the portfolios constituting Laudus Trust, hereafter referred to as the “Funds”) at March 31, 2009, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
May 15, 2009
San Francisco, California
May 15, 2009
53
Other Federal Tax Information: (Unaudited)
The Funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the year ended March 31, 2009, and the respective foreign source income on the Funds were as follows:
Foreign Tax Credit | Foreign Source Income | |||||||
Laudus Mondrian International Equity Fund | $27,771 | $381,939 | ||||||
Laudus Mondrian Global Equity Fund | 4,589 | 66,102 | ||||||
Laudus Mondrian Emerging Markets Fund | 83,005 | 965,809 | ||||||
Laudus Mondrian International Fixed Income Fund | — | — |
For corporate shareholders, the following percentage of the funds dividend distributions paid during the fiscal year ended March 31, 2009, qualify for the corporate dividends received deductions:
Percentage | ||||
Laudus Mondrian International Equity Fund | — | |||
Laudus Mondrian Global Equity Fund | 34.36 | |||
Laudus Mondrian Emerging Markets Fund | — | |||
Laudus Mondrian International Fixed Income Fund | — |
For the fiscal year ended March 31, 2009, the Funds designate the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2010 via IRS form 1099 of the amounts for use in preparing their 2009 income tax return.
Laudus Mondrian International Equity Fund | $209,206 | |||
Laudus Mondrian Global Equity Fund | 94,051 | |||
Laudus Mondrian Emerging Markets Fund | 456,539 | |||
Laudus Mondrian International Fixed Income Fund | — |
54
Trustees and Officers
The tables below provide information about the trustees and officers for the Laudus Trust, which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust, and Laudus Institutional Trust. As of March 31, 2009, the Fund Complex included 83 funds.
At a meeting of the Board held on September 28-29, 2006, the Trustees voted to adopt a retirement policy for all independent trustees that requires an independent trustee to retire no later than December 31st of the year in which he or she reaches age seventy-two.
The address for all trustees and officers is 101 Montgomery Street, San Francisco, CA 94104. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-866-452-8387.
Independent Trustees | ||||||||
Principal | Number of | |||||||
and Year of Birth; | Occupation(s) | Portfolios in | ||||||
(Term of Office, and | During the | Fund Complex | ||||||
Length of Time Served2) | Past Five Years | Overseen | Other Directorships Held by Trustee | |||||
Mariann Byerwalter3 1960 (1/04-present) | Chairman of JDN Corporate Advisory LLC. | 83 | Board 1–Director, Redwood Trust, Inc. (mortgage finance). Board 2–Director, PMI Group, Inc. (mortgage insurance). | |||||
William A. Hasler3 1941 (1/04-present) | Retired. Dean Emeritus of the Haas School of Business at the University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals). | 83 | Board 1–Director, Mission West Properties (commercial real estate). Board 2–Director, TOUSA (home building). Board 3–Director, Harris-Stratex Networks (a network equipment corporation). Board 4–Director, Genitope Corp. (bio-pharmaceuticals). Board 5 –Director, Ditech Networks (voice communication technology). Board 6–Rubicon Limited (manufacturing). | |||||
Nils H. Hakansson3 1937 (3/90-present) | Sylvan C. Coleman Professor of Finance and Accounting, Emeritus, Haas School of Business, University of California, Berkeley (since 2003). Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (July 1969 to January 2003). | 14 | None | |||||
55
Interested Trustees | ||||||||
Number of | ||||||||
Principal | Portfolios in | |||||||
and Year of Birth; | Occupation(s) | Fund Complex | ||||||
(Term of Office, | During the | Overseen by | ||||||
and Length of Time Served2) | Past Five Years | the Trustee | Other Directorships Held by Trustee | |||||
Randall W. Merk 1954 Trustee (6/06-present) | Executive Vice President and President, Investment Management Services, Charles Schwab & Co. Inc.; Executive Vice President, Charles Schwab & Co. Inc.(2002-present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc. | 14 | None | |||||
Officers | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Jeffrey Mortimer 1963 (3/08-present, President and CEO) (6/04-present, CIO) | President, Chief Executive Officer, and Chief Investment Officer | Senior Vice President and Chief Investment Officer-Equities, Charles Schwab Investment Management, Inc., and Schwab Funds. Prior to May 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc. | ||
George Pereira 1964 (6/06-present) | Treasurer and Chief Financial Officer | Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Treasurer and Principal Financial Officer, Schwab Funds; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Ltd. Through June 2007, Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc., and Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Trust Inc.; From 12/99 to 11/04: Senior Vice President, Financial Reporting, Charles Schwab & Co., Inc. | ||
Catherine MacGregor 1964 (12/05-present) | Chief Legal Officer, Vice President and Clerk | Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.; Vice President, Schwab Funds; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP. | ||
Bari Havlik 1961 (3/09-present) | Chief Compliance Officer | Senior Vice President, Chief Compliance Officer for Charles Schwab & Co. Inc. and head of Global Compliance for the Charles Schwab Corporation since 2004. Chief Compliance Officer for Charles Schwab Investment Management, Inc since March 2009. | ||
Daniel Kern 1961 (3/05-present) | Vice President | Vice President, Investment Management Services. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation. | ||
56
Officers continued | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Michael Haydel 1972 (6/05-present) | Vice President | Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. Until March 2004, Director Charles Schwab & Co., Inc. | ||
1 | The mailing address of each of the Trustees is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
2 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. |
3 | Member of the Audit Committee. |
4 | The mailing address of each of the Officers is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
5 | There is no stated term of office for the officers of the Trust. |
57
Glossary
90 Day T-bill is a short-term discounted, government debt instrument of 90 days or less, issued in $10,000 denominations that pay its face value at maturity. The government issues Treasury bills weekly.
Alpha is a measure of a fund’s risk adjusted return. Alpha can be used to directly measure the value added or subtracted by a fund’s manager. It is calculated by measuring the difference between a fund’s actual returns and its expected performance given its level of market risk as measured by beta.
Beta is a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower historical risk than the market; a beta of more than one indicates higher historical risk than the market.
The Citigroup non-U.S. Dollar World Government Bond Index measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year.
GDP, or Gross Domestic Product, is the market value of the goods and services produced by labor and property in the United States.
Modified Duration expresses the measurable change in the value of a security in response to a change in interest rates. The formula calculates the effect that a 1% change in interest rates will have on the price of a bond.
The MSCI EAFE Index® (Net) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. This series approximates the minimum possible dividend reinvestment.
The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment.
The MSCI World® Index (Net) is a free float-adjusted market capitalization index that is designed to measure global developed markets equity performance. This series approximates the minimum possible dividend reinvestment.
Price to earnings ratio is the price of a stock divided by its historical earnings per share.
Price to book ratio compares the stock’s market value to the value of the total assets less the total liabilities.
Price to cash flow ratio is the price of a stock divided by its reported cash flow per share.
Relative strength is the rate that a stock falls relative to other stocks in a falling market or rises relative to other stocks in a rising market.
Return on equity represents the amount earned on a company’s common stock investment for a given period, calculated by dividing common stock equity into net income for the period after preferred stock dividends but before common stock dividends.
Trading Activity is one of several risk factors commonly used to attribute a portfolio’s return relative to its benchmark. Specifically, trading activity measures a stock’s trailing 12 month trading volume relative to its total shares outstanding. It measures how actively traded a stock has been in the last 12 months.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov.
Quarterly Disclosure of Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The information filed on a fund’s most recent Form N-Q is also available at www.laudus.com.
58
Notes
Notes
Notes
For More Information about the Funds:
Investment Adviser
Charles Schwab Investment Management, Inc.
101 Montgomery Street, San Francisco, CA 94104
Shareholder Services
1.866.452.8387 Investment Professionals
1.800.447.3332 Individual Investors
www.laudus.com
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
MFR41684-01 |
Annual Report March 31, 2009 |
COMMAND PERFORMANCETM
Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Large Capitalization Fund
Laudus Rosenberg U.S. Large Capitalization Value Fund
Laudus Rosenberg U.S. Discovery Fund
Laudus Rosenberg U.S. Small Capitalization Fund (closed to new investors)
Laudus Rosenberg Long/Short Equity Fund
Adviser
Charles Schwab Investment Management, Inc.
Subadviser
AXA Rosenberg Investment Management LLC
In This Report | ||
2 | ||
3 | ||
4 | ||
6 | ||
8 | ||
10 | ||
12 | ||
14 | ||
17 | ||
19 | ||
63 | ||
73 | ||
75 | ||
78 |
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: ALPS Distributors, Inc.
Distributor: ALPS Distributors, Inc.
The industry/sector classification of the funds’ portfolio holdings uses the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by CSIM and certain affiliates. Charles Schwab & Co, Inc. and ALPS Distributors, Inc. are unaffiliated entities.
Performance at a Glance
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.laudus.com.
Total Return for | ||
the Report Period | ||
Laudus Rosenberg U.S. Large Capitalization Fund | ||
Investor Shares (Ticker Symbol: AXLVX) | -37.61% | |
Select Shares (Ticker Symbol: AXLIX) | -37.50% | |
Benchmark: Russell 1000® Index | -38.27% | |
Performance Details | pages 6-7 | |
Laudus Rosenberg U.S. Large Capitalization Value Fund | ||
Investor Shares (Ticker Symbol: LCVJX) | -40.80% | |
Select Shares (Ticker Symbol: LLCVX) | -40.60% | |
Benchmark: Russell 1000® Value Index | -42.42% | |
Performance Details | pages 8-9 | |
Laudus Rosenberg U.S. Discovery Fund | ||
Investor Shares (Ticker Symbol: RDIVX) | -41.24% | |
Select Shares (Ticker Symbol: RDISX) | -40.99% | |
Benchmark: Russell 2500tm Index | -38.23% | |
Performance Details | pages 10-11 | |
Laudus Rosenberg U.S. Small Capitalization Fund | ||
Investor Shares (Ticker Symbol: BRSCX) | -43.79% | |
Select Shares (Ticker Symbol: USCIX) | -43.52% | |
Adviser Shares (Ticker Symbol: LIFUX) | -43.68% | |
Benchmark: Russell 2000® Index | -37.50% | |
Performance Details | pages 12-13 | |
Laudus Rosenberg Long/Short Equity Fund | ||
Investor Shares (Ticker Symbol: BRMIX) | -13.59% | |
Select Shares (Ticker Symbol: BMNIX) | -13.34% | |
Benchmark: 90-day T-bills | 0.99% | |
Performance Details | pages 14-16 | |
All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Redemption fees charged on shares sold or exchanged 30 days or less after purchasing them may affect share level returns.
Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Small-company stocks are subject to greater volatility than other asset categories.
Small- and mid-capitalization funds typically carry additional risk since small- and mid-capitalization companies generally have a higher risk of failure.
Investments in long/short funds are riskier than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful.
The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund’s performance. AXA Rosenberg attempts to achieve returns for the Fund’s shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills.
Please see prospectus for further detail and investor eligibility requirements.
2 Laudus Rosenberg U.S. Equity Funds
From the President
Jeffrey Mortimer is President, CEO, and CIO of Laudus Funds and SVP of Charles Schwab Investment Management, Inc. He joined the firm in 1997 and has held a variety of executive positions at Schwab.
Dear Shareholder,
In the past year, financial markets were besieged with volatility and turmoil, while many economies across the globe experienced slower growth or recession, making investment conditions some of the most difficult in history. Although returns were relatively better in March, the fiscal year was characterized by two particularly bearish periods – the end of 2008 and the beginning of 2009. In this environment, major equity indices experienced significant declines. The Russell 1000 Index, for example, was down 38% for the reporting period, while the Russell 1000 Value Index declined 42%. On average, returns were down in all major sectors. The fixed income space, usually a bright spot in down markets, was not immune to the current market malady, with the Citigroup Non-U.S. Dollar World Government Bond Index down around 6%.
Within the Laudus Rosenberg Fund Family, returns in the funds followed the general downdraft on equity and fixed income prices. In both the U.S. and International fund groups, returns were down between 40-50% on average, with the exception of the Laudus Rosenberg Long/Short Fund, down around 13%, indicating that various un-hedged investment strategies were similarly affected by overall market declines. In general, modest outperformance and underperformance relative to funds’ respective benchmarks was primarily attributable to stock selection. For more detail, please see the portfolio manager’s commentary in the following pages.
The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg Investment Management, LLC, one of the world’s premier equity specialists and institutional money managers. Through the Laudus Rosenberg Funds offering, this distinctive approach to investment management is easily accessible to independent advisors and individual investors.
During the reporting period, the Board approved changes to the Laudus Rosenberg subadvisory contracts between AXA Rosenberg and CSIM effective April 1, 2009. These changes simplify the subadvisory contracts but do not have any impact on the overall advisory fees paid by the Laudus Rosenberg Funds. Additional information is available in the Funds’ Statement of Additional Information.
In closing, I would remind you that should you have any questions about the funds we are available to answer them at 1-800-447-3332.
Thank you for investing with us.
Sincerely,
Laudus Rosenberg U.S. Equity Funds 3
The Investment Environment
The past twelve months produced significant negative returns and high volatility in global capital markets, and nearly all major equity indexes lost more than 40%. Generally, U.S. equity markets fared slightly better than international ones, while fixed income outperformed both. Commodity indexes also lost value. Globally, losses were highly synchronized, exhibiting a pattern typical during periods of global economic weakness.
In the U.S., large-cap stocks lost about 38% for the period, but with a wide spread between growth- and value-style equities, as growth outperformed value by about 8%. U.S. small-caps slightly outperformed U.S. large-caps, losing just under 38%. U.S. small-cap growth stocks outperformed value, but still lost more than 36%. Internationally, the results were worse. International large-cap stocks lost nearly 47%, but outperformed international small-cap stocks, which were down more than 48%. As occurred in the U.S., international growth stocks outperformed their value counterparts, but the difference was less, with growth leading by around 3%.
What caused these weak returns, especially during a relatively short period of time of twelve months? In essence, the credit crisis that began in the summer of 2007 dominated the capital markets during the period. In September 2008, Lehman Brothers declared bankruptcy, while the U.S. government intervened in the operations of Freddie Mac, Fannie Mae and AIG. Several banks also failed, especially during the second half of the reporting period. Companies in all areas but especially in the financial services sector deleveraged their balance sheets. Over the past several years, individuals and companies borrowed significant amounts of capital. Individuals typically used the loans to purchase homes and autos. In turn, many financial companies leveraged their balance sheets to buy these loans and build and sell marketable securities composed of them, such as mortgage-backed securities. On the open market, these securities could be bought by institutional investors and hedge funds, for example. As credit tightened, many of the loans – both consumer and corporate – went into default, requiring firms to acquire capital to shore up their balance sheets or to sell assets to reduce their debt.
Investors and lenders were worried about the value of the debt on company balance sheets. In some cases, there were no bidders for the corporate obligations and securitized assets that were being offered for sale. Without bids, it became difficult to value these securities, and as default rates rose prices became even more depressed. Eventually, the solvency of corporations with large portfolios of leveraged debt was questioned. In this environment, investors took defensive action by reducing their corporate equity exposure. Thus, the equity markets declined precipitously as investors migrated to the safety of government debt.
A few areas performed well. One notable area was the U.S. Treasury market, generally considered the lowest default risk fixed income investment. Short-term Treasury bills gained about 1% during the period, and Treasury bonds maturing in the next ten to twenty years returned about 12%. More diversified fixed income investments also generated positive returns, typically around 3%, as investors flocked to defensive investments.
From a global sector perspective, financial stocks were down nearly 60% on average, primarily due to impacts following the credit crunch. Materials, down more than 50%, and Energy stocks, off about 40%, did poorly due to the deleveraging process described above and due to investors’ movements out of equity positions. Industrials and Consumer Discretionary stocks also lost between 40-50%, on average. On a relative basis,
4 Laudus Rosenberg U.S. Equity Funds
The Investment Environment continued
global Health Care and Consumer Staples firms performed better, down around 22% and 30%, respectively; these sectors are generally considered to be defensive investments in times of economic or market stress.
Among major developed economies, Japan performed the best during the period, losing about 36% in U.S. dollar terms. The U.S. did slightly worse, down nearly 38%. Most European countries lost more than 45%. It is important to note that through most of the reporting period, the U.S. dollar rallied against the British pound and the Euro, pushing the European returns lower for U.S. dollar-based investors. Emerging markets as a group performed in line with developed markets, losing about 47% in the twelve-month period. A few emerging markets such as Russia lost nearly 70%, but a surprising number such as China did relatively well, losing about 35%.
The dollar’s gains also impacted commodity prices, and most commodity indexes were down more than 50% for the twelve-month period. Crude oil lost 67% for the period, in contrast to the rise in prices over the last few years. Metals and agricultural prices also declined, partially in response to expectations of slowing economies around the globe and thus a likelihood of lower demand. Gold was one relative bright spot among commodity returns, losing about 1% for the period.
Nothing in this report represents a recommendation of a security by the investment adviser.
Manager views and portfolio holdings may have changed since the report date.
Laudus Rosenberg U.S. Equity Funds 5
Laudus Rosenberg U.S. Large Capitalization Fund
The Laudus Rosenberg U.S. Large Capitalization Fund Investor Shares returned -37.61% for the fiscal year ending March 31, 2009, outperforming the benchmark Russell 1000 Index, which returned -38.27%. Persistent volatility, investor risk aversion, and economic recession weighed heavily on equity prices during the reporting period. On a relative basis, outperformance versus the benchmark was principally attributable to stock selection in Energy and allocation effect within Financials.
Despite modest outperformance relative to the benchmark, returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. In the fund, Materials, Industrials, and Financials declined the most. Prices in the Material and Industrial sectors declined primarily as investors priced in slower growth and decreased demand amidst economic recession. Corporations within the Financial sector, particularly banks, ailed as credit constraints continued to adversely impact markets and stock prices. Better performing sectors were Utilities, Telecomm Services, and Health Care. Relative to the benchmark, the fund’s underweight to the Financial sector as well as stock selection in Energy benefited the fund. Within Energy, an overweight to Chevron Corp., Alpha Natural Resources, Inc., and Marathon Oil Corp., combined with an underweight to Transocean Ltd. and Schlumberger Ltd. primarily accounted for outperformance versus the benchmark.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Companies with negative P/E ratios experienced the most significant decline, but the fund benefited from underweighting these companies relative to the benchmark. Over 90% of the fund’s holdings are in companies with mid to low P/E ratios. On average, returns in companies with lower P/E ratios were better than companies with higher or negative P/E ratios.
Within the large-cap space, returns across all capitalization levels were negative, on average. In the fund, corporations in the $5-25 billion range were most negative when compared to other capitalization levels. Relative to the benchmark, stock selection in the $100-150 billion range benefited the fund.
In terms of price-to-book (P/B) ratios, returns were negative across the board. Relative to the benchmark, outperformance was primarily attributable to stock selection in corporations with low P/B ratios.
As of 3/31/09:
Fund Characteristics
Number of Securities | 176 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $56,260 |
Portfolio Turnover
(One year trailing) | 153% |
Price to Earnings (P/E) | 13.08 |
Price/Book Ratio (P/B) | 1.9 |
Price to Cash Flow | 8.49 |
Beta | 0.84 |
Return on Equity | 15.65% |
Five-Year Earnings Growth | 16% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 7/31/2002 | 6/19/2002 | ||
Total Net Assets ($ x 1,000) | $7,951 | $52,891 | ||
Ticker Symbol | AXLVX | AXLIX | ||
Cusip | 51855Q853 | 51855Q101 | ||
NAV | $6.39 | $6.37 |
Manager views and portfolio holdings may have changed since the report date.
6 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Large Capitalization Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | Since Inception | |||||||||
Investor (7/31/02) | -37.61% | -4.20% | -0.06% | |||||||||
Select (6/19/02) | -37.50% | -3.89% | -1.49% | |||||||||
Benchmark: Russell 1000® Index* | -38.27% | -4.54% | (7/31/02) 0.27% | |||||||||
(6/19/02) -1.55% |
Fund Expense Ratios2: Investor Shares: Net 1.14%; Gross 1.40% / Select Shares: Net 0.84%; Gross 1.01%
Sector Weightings % of Investments3
Health Care | 23.5% |
Information Technology | 20.9% |
Consumer Staples | 17.6% |
Financials | 9.1% |
Consumer Discretionary | 8.2% |
Industrials | 6.2% |
Energy | 5.4% |
Utilities | 4.6% |
Telecommunication Services | 3.5% |
Materials | 1.0% |
Total | 100.0% |
Top Holdings % of Net Assets3
International Business Machines Corp. | 4.6% |
Hewlett-Packard Co. | 3.8% |
Bristol-Myers Squibb Co. | 3.7% |
Wal-Mart Stores, Inc. | 3.6% |
Gilead Sciences, Inc. | 3.0% |
Microsoft Corp. | 2.9% |
Exxon Mobil Corp. | 2.7% |
CVS Caremark Corp. | 2.4% |
Johnson & Johnson | 2.2% |
Pfizer, Inc. | 2.2% |
Total | 31.1% |
* | Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, and represents approximately 92% of the total market capitalization of the Russell 3000® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg U.S. Equity Funds 7
Laudus Rosenberg U.S. Large Capitalization Value Fund
The Laudus Rosenberg U.S. Large Capitalization Value Fund Investor Shares returned -40.80% for the fiscal year ending March 31, 2009, outperforming the benchmark Russell 1000 Value Index, which returned -42.42%. Persistent volatility, investor risk aversion, and economic recession weighed heavily on equity prices during the reporting period. All major sectors represented in the fund and benchmark declined. On a relative basis, outperformance versus the benchmark was principally attributable to stock selection and allocation effect within Financials.
Despite modest outperformance relative to the benchmark, returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. In the fund, Materials, Industrials, and Financials declined the most. Prices in the Material and Industrial sectors declined primarily as investors priced in slower growth and decreased demand amidst economic recession. Corporations within the Financial sector, particularly banks, ailed as credit constraints continued to adversely impact markets and stock prices. Better performing sectors were Utilities, Telecommunication Services, and Health Care. Relative to the benchmark, the fund’s underweight to the Financial sector as well as stock selection benefited the fund; an underweight to AIG, and overweights to Travelers Companies, Inc., Loews Corp., and J.P. Morgan Chase & Co. added value.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Companies with negative P/E ratios experienced the most significant decline, but the fund benefited from underweighting these companies relative to the benchmark. Over 90% of the fund’s holdings are in companies with mid to low P/E ratios. On average, returns in this range were less negative when compared to companies with higher P/E ratios or negative P/E ratios.
Within the large-cap space, returns across all capitalization levels were negative, on average. In the fund, corporations in the $25-50 billion range were most negative when compared to other capitalization levels. Relative to the benchmark, stock selection in the $100-150 billion range benefited the fund, as did allocation and stock selection in the $25-50 billion range.
In terms of price-to-book (P/B) ratios, returns were negative across the board. Relative to the benchmark, stock selection in and allocation to corporations with low P/B ratios generally benefited the fund.
As of 3/31/09:
Fund Characteristics
Number of Securities | 200 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $64,333 |
Portfolio Turnover
(One year trailing) | 63% |
Price to Earnings (P/E) | 10.43 |
Price/Book Ratio (P/B) | 1.3 |
Price to Cash Flow | 5.98 |
Beta | 0.81 |
Return on Equity | 13.09% |
Five-Year Earnings Growth | 12% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $100 (as of 5/5/09) | ||
Inception Date | 5/2/2005 | 5/2/2005 | ||
Total Net Assets ($ x 1,000) | $624 | $19,451 | ||
Ticker Symbol | LCVJX | LLCVX | ||
Cusip | 51855Q853 | 51855Q101 | ||
NAV | $6.14 | $6.16 |
Manager views and portfolio holdings may have changed since the report date.
8 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Large Capitalization Value Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$10,000 Investment in Select Shares1
$10,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | Since Inception | ||||||
Investor (5/2/05) | -40.80% | -6.90% | ||||||
Select (5/2/05) | -40.60% | -6.62% | ||||||
Benchmark: Russell 1000® Value Index* | -42.42% | -8.87% |
Fund Expense Ratios2: Investor Shares: Net 1.14%; Gross 3.28% / Select Shares: Net 0.84%; Gross 2.88%
Sector Weightings % of Investments3
Health Care | 17.7% |
Consumer Staples | 14.9% |
Financials | 14.6% |
Energy | 14.4% |
Utilities | 11.6% |
Telecommunication Services | 8.8% |
Consumer Discretionary | 6.8% |
Industrials | 6.5% |
Information Technology | 3.1% |
Materials | 1.6% |
Total | 100.0% |
Top Holdings % of Net Assets3
Exxon Mobil Corp. | 5.4% |
Chevron Corp. | 4.4% |
AT&T, Inc. | 4.0% |
Pfizer, Inc. | 3.5% |
Verizon Communications, Inc. | 3.5% |
Johnson & Johnson | 3.2% |
State Street Institutional Liquid Reserves Fund | 3.1% |
Amgen, Inc. | 2.0% |
General Electric Co. | 2.0% |
JPMorgan Chase & Co. | 2.0% |
Total | 33.1% |
* | Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. Effective May 5, 2009, the expense limitation for the Investor Shares will be further reduced to 0.84%. See Financial Notes for more information. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg U.S. Equity Funds 9
Laudus Rosenberg U.S. Discovery Fund
The Laudus Rosenberg U.S. Discovery Fund Investor Shares returned -41.24% for the fiscal year ending March 31, 2009, underperforming the benchmark Russell 2500 Index, which returned -38.23%. Persistent volatility, investor risk aversion, and economic recession weighed heavily on equity prices during the reporting period. On a relative basis, underperformance versus the benchmark was principally attributable to stock selection. In general, an overweight to value stocks detracted from performance as these stocks underperformed. However, an underweight to financial leverage benefited the fund.
Returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. On a sector specific level, Energy, Industrials, and Materials declined the most. Although stronger earlier in the period, the Energy sector experienced significant downward pricing pressure as the economic recession deepened and growth slowed. Better performing sectors were Telecomm services and Utilities, which are typically seen as being more recession resistant. Relative to the benchmark, stock selection across a number of sectors detracted from returns, most notably in Information Technology, Industrials, and Financials. Within Industrials, an overweight to The Manitowoc Company, Inc. detracted the most among individual holdings. Stock selection and allocation effect within the Energy sector led offsetting factors, despite the sector’s negative return.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Corporations with negative P/E ratios performed worse. About one third of the fund is allocated to companies with low P/E ratios. Relative to the benchmark, stock selection within companies with low P/E ratios was the most significant detractor.
When looking at market capitalization, returns were negative across all capitalization levels. The fund is primarily allocated to corporations with market capitalizations between $300 million to $5 billion. Relative to the benchmark, stock selection in companies with market caps of $1.5 billion and below generally detracted, particularly in the $750 million to $1.5 billion range. However, selection within the $5 billion to $7.5 billion range helped to pare losses.
In terms of price-to-book (P/B), returns across the spectrum were negative. The fund is primarily allocated to companies with mid to low P/B ratios. Relative to the benchmark, stock selection in companies with low P/B ratios accounted for most of the underperformance.
As of 3/31/09:
Fund Characteristics
Number of Securities | 395 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $1,787 |
Portfolio Turnover
(One year trailing) | 115% |
Price to Earnings (P/E) | 24.41 |
Price/Book Ratio (P/B) | 1.2 |
Price to Cash Flow | 9.09 |
Beta | 1.03 |
Return on Equity | 4.81% |
Five-Year Earnings Growth | 17% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 10/3/2001 | 9/4/2001 | ||
Total Net Assets ($ x 1,000) | $81,981 | $295,568 | ||
Ticker Symbol | RDIVX | RDISX | ||
Cusip | 51855Q838 | 51855Q309 | ||
NAV | $9.30 | $9.44 |
Manager views and portfolio holdings may have changed since the report date.
10 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Discovery Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | Since Inception | |||||||||
Investor (10/3/01) | -41.24% | -5.93% | 2.05% | |||||||||
Select (9/4/01) | -40.99% | -5.59% | 1.52% | |||||||||
Benchmark: Russell 2500tm Index* | -38.23% | -4.45% | (10/3/01) 2.27% | |||||||||
(9/4/01) 3.15% |
Fund Expense Ratios2: Investor Shares: 1.34% / Select Shares: 0.96%
Sector Weightings % of Investments3
Information Technology | 23.6% |
Health Care | 20.0% |
Consumer Discretionary | 12.5% |
Financials | 11.7% |
Consumer Staples | 8.1% |
Utilities | 8.0% |
Industrials | 6.9% |
Energy | 3.5% |
Materials | 3.2% |
Telecommunication Services | 2.5% |
Total | 100.0% |
Top Holdings % of Net Assets3
Dollar Tree, Inc. | 2.2% |
Sybase, Inc. | 2.0% |
Life Technologies Corp. | 2.0% |
State Street Institutional Liquid Reserves Fund | 1.9% |
Synopsys, Inc. | 1.9% |
CenturyTel, Inc. | 1.8% |
Church & Dwight Co., Inc. | 1.8% |
Alliant Energy Corp. | 1.8% |
Hewitt Associates, Inc., Class A | 1.8% |
CMS Energy Corp. | 1.7% |
Total | 19.2% |
* | Russell 2500tm Index measures the performance of the 2,500 smallest companies in the Russell 3000® Index, and represents approximately 18% of the total market capitalization of the Russell 3000® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Reflects the total annual fund operating expenses. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg U.S. Equity Funds 11
Laudus Rosenberg U.S. Small Capitalization Fund
The Laudus Rosenberg U.S. Small Capitalization Fund Investor Shares returned -43.79% for the fiscal year ending March 31, 2009, underperforming the benchmark Russell 2000 Index, which returned -37.50%. Persistent volatility, investor risk aversion, and economic recession weighed heavily on equity prices during the reporting period. On a relative basis, underperformance versus the benchmark was principally attributable to stock selection in Financials, Industrials, and Health Care. In general, an overweight to value stocks detracted from performance as these stocks underperformed.
Returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. On a sector specific level, Energy and Materials were down the most. Although stronger earlier in the period, the Energy sector experienced significant downward pricing pressure as the economic recession deepened and growth slowed. Though still negative, better performing sectors were Consumer Staples and Utilities, which are typically seen as being more recession resistant. Relative to the benchmark, stock selection in Financials, Industrials, and Health Care contributed most significantly to underperformance. Within Industrials, an overweight to Genco Shipping & Trading Ltd. detracted the most among individual holdings. In Technology, an overweight to Insight Enterprises Inc. detracted the most among individual holdings. Allocation in Consumer Discretionary helped to partially offset these losses; in addition, an overweight to Netflix, Inc. and AutoNation, Inc. added value.
From a price-to-earnings (P/E) standpoint, returns were again down across the board. In general, companies with negative P/E ratios accounted for most of the underperformance. The fund is primarily allocated to corporations with mid to low P/E ratios. Relative to the benchmark, stock selection within the lowest P/E range detracted most significantly, followed by stock selection in companies with high P/E ratios.
When looking at market capitalization, returns were negative across all market capitalization levels. The fund, like the benchmark, is primarily allocated to corporations with capitalizations below $3 billion. Relative to the benchmark, stock selection in companies with capitalizations below $1.5 billion detracted most significantly.
In terms of price-to-book (P/B), returns were down similarly across the spectrum. The fund, like the benchmark, is primarily allocated to companies with mid to low P/B ratios. Relative to the benchmark, an overweight to companies with low P/B ratios, as well as stock selection with in this space accounted for most of the underperformance.
As of 3/31/09:
Fund Characteristics
Number of Securities | 338 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $881 |
Portfolio Turnover
(One year trailing) | 114% |
Price to Earnings (P/E) | 24.21 |
Price/Book Ratio (P/B) | 1.1 |
Price to Cash Flow | 7.15 |
Beta | 1.07 |
Return on Equity | 5.03% |
Five-Year Earnings Growth | 13% |
Fund Overview
Investor Shares | Select Shares | Adviser Shares | ||||
Initial Investment | $100 | $50,000 | $100,000 | |||
Inception Date | 10/22/1996 | 2/22/1989 | 1/21/1997 | |||
Total Net Assets ($ x 1,000) | $77,227 | $156,272 | $8,760 | |||
Ticker Symbol | BRSCX | USCIX | LIFUX | |||
Cusip | 51855Q820 | 51855Q408 | 51855Q739 | |||
NAV | $4.32 | $4.50 | $4.39 |
Manager views and portfolio holdings may have changed since the report date.
12 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Small Capitalization Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Performance of a Hypothetical
$100,000 Investment in Adviser Shares1
$100,000 Investment in Adviser Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | 10 Years | |||||||||
Investor (10/22/96) | -43.79% | -8.69% | 2.71% | |||||||||
Select (2/22/89) | -43.52% | -8.35% | 3.05% | |||||||||
Adviser (1/21/97) | -43.68% | -8.57% | 2.81% | |||||||||
Benchmark: Russell 2000® Index* | -37.50% | -5.24% | 1.93% |
Fund Expense Ratios2: Investor Shares: 1.32% / Select Shares: 0.96% / Adviser Shares: 1.21%
Sector Weightings % of Investments3
Consumer Discretionary | 29.8% |
Information Technology | 17.8% |
Health Care | 14.6% |
Financials | 14.3% |
Industrials | 8.9% |
Consumer Staples | 7.1% |
Utilities | 4.9% |
Materials | 1.6% |
Telecommunication Services | 0.7% |
Energy | 0.3% |
Total | 100.0% |
Top Holdings % of Net Assets3
Perot Systems Corp., Class A | 2.3% |
State Street Institutional Liquid Reserves Fund | 2.2% |
Skyworks Solutions, Inc. | 2.1% |
Solera Holdings, Inc. | 2.1% |
Aspen Insurance Holdings Ltd. | 2.0% |
Flowers Foods, Inc. | 2.0% |
Netflix, Inc. | 2.0% |
NewAlliance Bancshares, Inc. | 1.8% |
Aeropostale, Inc. | 1.7% |
Alkermes, Inc. | 1.6% |
Total | 19.8% |
* | The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, and represents approximately 8% of the total market capitalization of the Russell 3000® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Reflects the total annual fund operating expenses. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg U.S. Equity Funds 13
Laudus Rosenberg Long/Short Equity Fund
The Laudus Rosenberg Long/Short Equity Fund Investor Shares returned -13.59% for the fiscal year ending March 31, 2009, underperforming the benchmark 90-day T-bills, which returned 0.99%. Persistent volatility, investor risk aversion, and a global economic recession weighed heavily on equity prices during the reporting period. All major sectors represented in the fund and benchmark declined. On a relative basis, underperformance was generally attributable to stock selection on both the long and short side; the fund’s long positions were steeply negative, while the fund’s short positions were not negative enough to counteract losses from the long side.
On a sector specific level, returns were down across the board. Financials, Industrials, and Materials experienced the most significant decline, on average down more than 55%. On the long side, stock selection in Industrials, Materials, and Information Technology detracted most, while selection in the Telecom Services sector helped to partially offset. On the short side, stock selection in Financials, Consumer Staples, and Industrials led factors detracting from overall returns.
From a price-to-earnings (P/E) perspective, returns were negative across the spectrum. Stock selection on the short side in companies with medium to high P/E ratios detracted, while stock selection in low and negative P/E ratios helped to partially offset. On the long side, stock selection in companies with very low and high P/E ratios generally detracted, with selection in negative P/E ratios offsetting slightly.
From a market cap perspective, returns were again down across the board. On the short side, stock selection in the $0-300 million range, as well as selection in the $3-5 billion and $7.5 billion and above range detracted most. On the long side, stock selection in the $3-5 billion and $7.5 billion and above range hurt the fund.
In terms of price-to-book (P/B) ratios, stock selection on both the long and short side in companies with low P/B ratios detracted, as did selection in companies with high P/B ratios.
As of 3/31/09:
Fund Characteristics
Long | Short | |||
Number of Securities | 465 | 235 | ||
Avg. Market Capitalization ($Wtd. x 1,000,000) | 27,206 | 31,757 | ||
Portfolio Turnover (One year trailing) | 244% | 270% | ||
Price to Earnings (P/E) | 18.52 | 56.41 | ||
Price to Book (P/B) | 1.43 | 1.82 | ||
Price to Cash Flow | 6.32 | 6.89 | ||
Beta | 0.95 | 1.21 | ||
Return on Equity | 8.88% | 7.29% | ||
Five-Year Earnings Growth | 15.80% | 21.33% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 12/18/1997 | 12/16/1997 | ||
Total Net Assets ($ x 1,000) | $11,640 | $66,963 | ||
Ticker Symbol | BRMIX | BMNIX | ||
Cusip | 51855Q838 | 51855Q309 | ||
NAV | $8.90 | $8.96 |
Manager views and portfolio holdings may have changed since the report date.
14 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg Long/Short Equity Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | 10 Years | |||||||||
Investor (12/18/97) | -13.59% | -0.93% | 1.59% | |||||||||
Select (12/16/97) | -13.34% | -0.60% | 1.91% | |||||||||
Benchmark: 90-day T-bills | 0.99% | 3.17% | 3.24% |
Fund Expense Ratios2: Investor Shares: Net 1.89%; Gross 3.30% / Select Shares: Net 1.69%; Gross 3.09%
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. It also excludes dividend expense on securities sold short. Gross Expenses: Reflects the total annual fund operating expenses. Also, includes dividend expense on securities sold short. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements. |
Laudus Rosenberg U.S. Equity Funds 15
Performance Summary as of 3/31/09
Long Equity Positions
Sector Weightings % of Investments1
Information Technology | 21.9% |
Consumer Discretionary | 18.3% |
Health Care | 17.2% |
Industrials | 9.1% |
Financials | 8.6% |
Consumer Staples | 8.4% |
Energy | 8.0% |
Utilities | 5.6% |
Materials | 1.6% |
Telecommunication Services | 1.3% |
Total | 100.0% |
Top Holdings % of Net Assets1
Bristol-Myers Squibb Co. | 3.5% |
Gilead Sciences, Inc. | 3.4% |
Chevron Corp. | 3.3% |
Comcast Corp., Class A | 3.3% |
JPMorgan Chase & Co. | 3.2% |
International Business Machines Corp. | 3.1% |
Baxter International, Inc. | 2.4% |
CVS Caremark Corp. | 2.4% |
The Walt Disney Co. | 2.1% |
Computer Sciences Corp. | 2.0% |
Total | 28.7% |
Short Equity Positions
Sector Weightings % of Short Positions1
Information Technology | 29.3% |
Energy | 16.5% |
Industrials | 13.5% |
Consumer Discretionary | 11.8% |
Health Care | 9.0% |
Financials | 7.2% |
Utilities | 4.8% |
Consumer Staples | 4.7% |
Materials | 3.2% |
Total | 100.0% |
Top Holdings % of Net Assets1
Google, Inc., Class A | 3.4% |
Cisco Systems, Inc. | 3.3% |
Apple, Inc. | 3.0% |
Intel Corp. | 3.0% |
ConocoPhillips | 2.6% |
Occidental Petroleum Corp. | 2.4% |
Eli Lilly & Co. | 2.2% |
The Coca-Cola Co. | 2.1% |
United Parcel Service, Inc., Class B | 2.0% |
Schlumberger Ltd. | 1.8% |
Total | 25.8% |
1 | Portfolio holdings are subject to change and may not represent current or future holdings. |
16 Laudus Rosenberg U.S. Equity Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for period beginning October 1, 2008 and held through March 31, 2009.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period”.
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.
Ending | ||||||||||||||||
Beginning | Account Value | Expenses Paid | ||||||||||||||
Expense Ratio1 | Account Value | (Net of Expenses) | During Period2 | |||||||||||||
(Annualized) | at 10/1/08 | at 3/31/09 | 10/1/08–3/31/09 | |||||||||||||
Laudus Rosenberg U.S. Large Capitalization Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.14% | $ | 1,000 | $ | 694.80 | $ | 4.82 | |||||||||
Hypothetical 5% Return | 1.14% | $ | 1,000 | $ | 1,019.25 | $ | 5.74 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 0.84% | $ | 1,000 | $ | 695.40 | $ | 3.55 | |||||||||
Hypothetical 5% Return | 0.84% | $ | 1,000 | $ | 1,020.69 | $ | 4.23 | |||||||||
Laudus Rosenberg U.S. Large Capitalization Value Fund* | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.14% | $ | 1,000 | $ | 651.90 | $ | 4.70 | |||||||||
Hypothetical 5% Return | 1.14% | $ | 1,000 | $ | 1,019.25 | $ | 5.74 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 0.84% | $ | 1,000 | $ | 652.60 | $ | 3.46 | |||||||||
Hypothetical 5% Return | 0.84% | $ | 1,000 | $ | 1,020.74 | $ | 4.23 | |||||||||
Laudus Rosenberg U.S. Discovery Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.56% | 3 | $ | 1,000 | $ | 625.60 | $ | 6.32 | ||||||||
Hypothetical 5% Return | 1.56% | 3 | $ | 1,000 | $ | 1,017.15 | $ | 7.85 | ||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.04% | $ | 1,000 | $ | 627.20 | $ | 4.22 | |||||||||
Hypothetical 5% Return | 1.04% | $ | 1,000 | $ | 1,019.75 | $ | 5.24 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. |
2 | Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
3 | The expense ratio for the fiscal year was 1.40% as shown in the financial highlights. |
* | Effective May 5, 2009, the expense limitation for both classes will be reduced to 0.84%. See Financial Notes for more information. |
Laudus Rosenberg U.S. Equity Funds 17
Fund Expenses (Unaudited) continued
Ending | ||||||||||||||||
Beginning | Account Value | Expenses Paid | ||||||||||||||
Expense Ratio1 | Account Value | (Net of Expenses) | During Period2 | |||||||||||||
(Annualized) | at 10/1/08 | at 3/31/09 | 10/1/08–3/31/09 | |||||||||||||
Laudus Rosenberg U.S. Small Capitalization Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.46% | 3 | $ | 1,000 | $ | 586.30 | $ | 5.77 | ||||||||
Hypothetical 5% Return | 1.46% | 3 | $ | 1,000 | $ | 1,017.65 | $ | 7.34 | ||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.05% | $ | 1,000 | $ | 588.20 | $ | 4.16 | |||||||||
Hypothetical 5% Return | 1.05% | $ | 1,000 | $ | 1,019.70 | $ | 5.29 | |||||||||
Adviser Shares | ||||||||||||||||
Actual Return | 1.26% | $ | 1,000 | $ | 587.90 | $ | 4.99 | |||||||||
Hypothetical 5% Return | 1.26% | $ | 1,000 | $ | 1,018.65 | $ | 6.34 | |||||||||
Laudus Rosenberg Long/Short Equity Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 3.93% | 4 | $ | 1,000 | $ | 876.00 | $ | 18.38 | ||||||||
Hypothetical 5% Return | 3.93% | 4 | $ | 1,000 | $ | 1,005.34 | $ | 19.65 | ||||||||
Select Shares | ||||||||||||||||
Actual Return | 3.46% | $ | 1,000 | $ | 876.80 | $ | 16.19 | |||||||||
Hypothetical 5% Return | 3.46% | $ | 1,000 | $ | 1,007.68 | $ | 17.32 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. |
2 | Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
3 | The expense ratio for the fiscal year was 1.34% as shown in the financial highlights. |
4 | The expense ratio for the fiscal year was 3.83% as shown in the financial highlights. |
18 Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Large Capitalization Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 10.38 | 13.21 | 12.36 | 11.81 | 10.96 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.11 | 1 | 0.06 | 1 | 0.07 | 1 | 0.06 | 1 | 0.08 | 1 | ||||||||||
Net realized and unrealized gains (losses) | (4.01 | ) | (0.72 | ) | 1.25 | 1.63 | 0.93 | |||||||||||||
Total from investment operations | (3.90 | ) | (0.66 | ) | 1.32 | 1.69 | 1.01 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.09 | ) | (0.06 | ) | (0.05 | ) | (0.07 | ) | (0.07 | ) | ||||||||||
Distributions from net realized gains | — | (2.11 | ) | (0.42 | ) | (1.07 | ) | (0.09 | ) | |||||||||||
Total distributions | (0.09 | ) | (2.17 | ) | (0.47 | ) | (1.14 | ) | (0.16 | ) | ||||||||||
Net asset value at end of period | 6.39 | 10.38 | 13.21 | 12.36 | 11.81 | |||||||||||||||
Total return (%) | (37.61 | ) | (6.61 | ) | 10.69 | 14.57 | 9.22 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.15 | 1.31 | 2 | 1.30 | 2 | 1.33 | 1.35 | |||||||||||||
Gross operating expenses | 1.39 | 1.40 | 1.38 | 1.52 | 1.58 | |||||||||||||||
Net investment income (loss) | 1.25 | 0.45 | 0.52 | 0.50 | 0.69 | |||||||||||||||
Portfolio turnover rate | 153 | 3 | 166 | 144 | 144 | 128 | ||||||||||||||
Net assets, end of period ($ x 1,000) | 7,951 | 9,017 | 10,074 | 10,026 | 2,786 |
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/094 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 10.38 | 13.21 | 12.35 | 11.79 | 10.92 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.14 | 1 | 0.10 | 1 | 0.10 | 1 | 0.10 | 1 | 0.11 | 1 | ||||||||||
Net realized and unrealized gains (losses) | (4.02 | ) | (0.71 | ) | 1.27 | 1.62 | 0.94 | |||||||||||||
Total from investment operations | (3.88 | ) | (0.61 | ) | 1.37 | 1.72 | 1.05 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.13 | ) | (0.11 | ) | (0.09 | ) | (0.09 | ) | (0.09 | ) | ||||||||||
Distributions from net realized gains | — | (2.11 | ) | (0.42 | ) | (1.07 | ) | (0.09 | ) | |||||||||||
Total distributions | (0.13 | ) | (2.22 | ) | (0.51 | ) | (1.16 | ) | (0.18 | ) | ||||||||||
Net asset value at end of period | 6.37 | 10.38 | 13.21 | 12.35 | 11.79 | |||||||||||||||
Total return (%) | (37.50 | ) | (6.30 | ) | 11.10 | 14.90 | 9.66 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 0.85 | 5 | 1.00 | 6 | 1.00 | 6 | 1.01 | 0.99 | ||||||||||||
Gross operating expenses | 0.99 | 1.01 | 1.01 | 1.14 | 1.23 | |||||||||||||||
Net investment income (loss) | 1.59 | 0.77 | 0.81 | 0.80 | 0.96 | |||||||||||||||
Portfolio turnover rate | 153 | 3 | 166 | 144 | 144 | 128 | ||||||||||||||
Net assets, end of period ($ x 1,000) | 52,891 | 83,783 | 94,921 | 54,296 | 44,559 |
1 Calculated based on the average shares outstanding during the period.
2 The ratio of net operating expenses would have been 1.29%, if interest expenses had not been included.
3 Portfolio turnover excludes the impact of assets resulting from a merger with another fund. (See Financial Notes 1)
4 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
5 The ratio of net operating expenses would have been .84%, if interest expenses had not been included.
6 The ratio of net operating expenses would have been .99%, if interest expenses had not been included.
See financial notes 19
Laudus Rosenberg U.S. Large Capitalization Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
98 | .4% | Common Stock | 66,329,515 | 59,867,680 | ||||||||
2 | .2% | Other Investment Companies | 1,318,983 | 1,318,983 | ||||||||
100 | .6% | Total Investments | 67,648,498 | 61,186,663 | ||||||||
(0 | .6)% | Other Assets and Liabilities, Net | (344,530 | ) | ||||||||
100 | .0% | Net Assets | 60,842,133 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 98.4% of net assets | ||||||||
Banks 2.1% | ||||||||
BB&T Corp. | 4,600 | 77,832 | ||||||
Hudson City Bancorp, Inc. | 12,700 | 148,463 | ||||||
M&T Bank Corp. | 510 | 23,072 | ||||||
New York Community Bancorp, Inc. | 9,310 | 103,993 | ||||||
PNC Financial Services Group, Inc. | 3,900 | 114,231 | ||||||
U.S. Bancorp | 31,100 | 454,371 | ||||||
Wells Fargo & Co. | 22,700 | 323,248 | ||||||
1,245,210 | ||||||||
Capital Goods 5.4% | ||||||||
Aecom Technology Corp. * | 1,900 | 49,552 | ||||||
GATX Corp. | 200 | 4,046 | ||||||
General Dynamics Corp. | 21,360 | 888,363 | ||||||
Goodrich Corp. | 8,600 | 325,854 | ||||||
L-3 Communications Holdings, Inc. | 7,830 | 530,874 | ||||||
Lockheed Martin Corp. | 11,218 | 774,379 | ||||||
Rockwell Collins, Inc. | 1,730 | 56,467 | ||||||
URS Corp. * | 7,500 | 303,075 | ||||||
W.W. Grainger, Inc. | 4,741 | 332,723 | ||||||
3,265,333 | ||||||||
Commercial & Professional Supplies 0.2% | ||||||||
Pitney Bowes, Inc. | 6,400 | 149,440 | ||||||
Consumer Services 3.2% | ||||||||
Apollo Group, Inc., Class A * | 2,100 | 164,493 | ||||||
Brinker International, Inc. | 9,800 | 147,980 | ||||||
Darden Restaurants, Inc. | 10,500 | 359,730 | ||||||
H&R Block, Inc. | 21,900 | 398,361 | ||||||
International Game Technology | 21,240 | 195,833 | ||||||
International Speedway Corp., Class A | 710 | 15,662 | ||||||
ITT Educational Services, Inc. * | 700 | 84,994 | ||||||
McDonald’s Corp. | 6,500 | 354,705 | ||||||
Yum! Brands, Inc. | 7,300 | 200,604 | ||||||
1,922,362 | ||||||||
Diversified Financials 2.9% | ||||||||
American Express Co. | 8,400 | 114,492 | ||||||
Bank of America Corp. | 20,400 | 139,128 | ||||||
JPMorgan Chase & Co. | 38,500 | 1,023,330 | ||||||
Morgan Stanley | 9,272 | 211,123 | ||||||
The Goldman Sachs Group, Inc. | 2,740 | 290,495 | ||||||
1,778,568 | ||||||||
Energy 5.3% | ||||||||
Chevron Corp. | 12,300 | 827,052 | ||||||
Diamond Offshore Drilling, Inc. | 2,800 | 176,008 | ||||||
Exxon Mobil Corp. | 23,900 | 1,627,590 | ||||||
Southwestern Energy Co. * | 6,170 | 183,187 | ||||||
Sunoco, Inc. | 10,000 | 264,800 | ||||||
Tidewater, Inc. | 4,000 | 148,520 | ||||||
3,227,157 | ||||||||
Food & Staples Retailing 6.8% | ||||||||
BJ’s Wholesale Club, Inc. * | 2,480 | 79,335 | ||||||
CVS Caremark Corp. | 53,385 | 1,467,554 | ||||||
Safeway, Inc. | 11,150 | 225,118 | ||||||
Sysco Corp. | 9,000 | 205,200 | ||||||
Wal-Mart Stores, Inc. | 41,590 | 2,166,839 | ||||||
4,144,046 | ||||||||
Food, Beverage & Tobacco 8.1% | ||||||||
Altria Group, Inc. | 12,800 | 205,056 | ||||||
Archer-Daniels-Midland Co. | 34,660 | 962,855 | ||||||
Constellation Brands, Inc., Class A * | 25,934 | 308,615 | ||||||
Dean Foods Co. * | 12,800 | 231,424 | ||||||
Del Monte Foods Co. | 15,010 | 109,423 | ||||||
Kellogg Co. | 5,648 | 206,886 | ||||||
Kraft Foods, Inc., Class A | 51,750 | 1,153,507 | ||||||
Lorillard, Inc. | 1,800 | 111,132 | ||||||
PepsiCo, Inc. | 7,500 | 386,100 | ||||||
Philip Morris International, Inc. | 7,480 | 266,138 | ||||||
Reynolds American, Inc. | 550 | 19,712 | ||||||
Sara Lee Corp. | 22,734 | 183,691 | ||||||
The J.M. Smucker Co. | 8,900 | 331,703 | ||||||
The Pepsi Bottling Group, Inc. | 11,580 | 256,381 | ||||||
Tyson Foods, Inc., Class A | 20,820 | 195,500 | ||||||
4,928,123 | ||||||||
Health Care Equipment & Services 3.9% | ||||||||
AMERIGROUP Corp. * | 3,640 | 100,246 | ||||||
Baxter International, Inc. | 4,100 | 210,002 | ||||||
Beckman Coulter, Inc. | 6,118 | 312,079 | ||||||
Express Scripts, Inc. * | 14,400 | 664,848 | ||||||
Health Net, Inc. * | 8,047 | 116,520 | ||||||
Hologic, Inc. * | 24,000 | 314,160 |
20 See financial notes
Laudus Rosenberg U.S. Large Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Hospira, Inc. * | 1,800 | 55,548 | ||||||
Humana, Inc. * | 8,170 | 213,074 | ||||||
Inverness Medical Innovations, Inc. * | 7,600 | 202,388 | ||||||
Kinetic Concepts, Inc. * | 1,000 | 21,120 | ||||||
Medtronic, Inc. | 10 | 295 | ||||||
Teleflex, Inc. | 2,912 | 113,830 | ||||||
The Cooper Cos., Inc. | 2,100 | 55,524 | ||||||
2,379,634 | ||||||||
Household & Personal Products 2.4% | ||||||||
Church & Dwight Co., Inc. | 5,000 | 261,150 | ||||||
Colgate-Palmolive Co. | 8,420 | 496,612 | ||||||
Kimberly-Clark Corp. | 130 | 5,994 | ||||||
The Clorox Co. | 5,637 | 290,193 | ||||||
The Estee Lauder Cos., Inc., Class A | 9,900 | 244,035 | ||||||
The Procter & Gamble Co. | 3,800 | 178,942 | ||||||
1,476,926 | ||||||||
Insurance 3.4% | ||||||||
Assurant, Inc. | 8,800 | 191,664 | ||||||
Cincinnati Financial Corp. | 8,930 | 204,229 | ||||||
Everest Re Group Ltd. | 2,310 | 163,548 | ||||||
PartnerRe Ltd. | 3,770 | 234,004 | ||||||
The Travelers Cos., Inc. | 30,570 | 1,242,365 | ||||||
Willis Group Holdings, Ltd. | 1,700 | 37,400 | ||||||
2,073,210 | ||||||||
Materials 1.0% | ||||||||
Airgas, Inc. | 2,120 | 71,677 | ||||||
CF Industries Holdings, Inc. | 200 | 14,226 | ||||||
FMC Corp. | 4,740 | 204,484 | ||||||
PPG Industries, Inc. | 3,270 | 120,663 | ||||||
RPM International, Inc. | 12,440 | 158,361 | ||||||
The Scotts Miracle-Gro Co., Class A | 1,110 | 38,517 | ||||||
607,928 | ||||||||
Media 1.2% | ||||||||
Discovery Communications, Inc., Series A * | 370 | 5,927 | ||||||
DISH Network Corp., Class A * | 18,945 | 210,479 | ||||||
The Walt Disney Co. | 21,400 | 388,624 | ||||||
Virgin Media, Inc. | 24,200 | 116,160 | ||||||
721,190 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 19.2% | ||||||||
Amgen, Inc. * | 8,232 | 407,649 | ||||||
Biogen Idec, Inc. * | 16,900 | 885,898 | ||||||
Bristol-Myers Squibb Co. | 103,700 | 2,273,104 | ||||||
Cephalon, Inc. * | 5,041 | 343,292 | ||||||
Endo Pharmaceuticals Holdings, Inc. * | 10,900 | 192,712 | ||||||
Forest Laboratories, Inc. * | 22,900 | 502,884 | ||||||
Gilead Sciences, Inc. * | 38,840 | 1,799,069 | ||||||
Johnson & Johnson | 25,450 | 1,338,670 | ||||||
King Pharmaceuticals, Inc. * | 70 | 495 | ||||||
Life Technologies Corp. * | 11,911 | 386,869 | ||||||
Merck & Co., Inc. | 39,800 | 1,064,650 | ||||||
Mylan, Inc. * | 27,100 | 363,411 | ||||||
PDL BioPharma, Inc. | 5,690 | 40,285 | ||||||
PerkinElmer, Inc. | 2,600 | 33,202 | ||||||
Pfizer, Inc. | 97,170 | 1,323,456 | ||||||
Watson Pharmaceuticals, Inc. * | 10,330 | 321,366 | ||||||
Wyeth | 8,650 | 372,296 | ||||||
11,649,308 | ||||||||
Real Estate 0.6% | ||||||||
Boston Properties, Inc. | 1,600 | 56,048 | ||||||
ProLogis | 9,700 | 63,050 | ||||||
Public Storage | 1,100 | 60,775 | ||||||
Simon Property Group, Inc. | 3,325 | 115,178 | ||||||
Vornado Realty Trust | 1,981 | 65,848 | ||||||
360,899 | ||||||||
Retailing 3.7% | ||||||||
AutoNation, Inc. * | 8,800 | 122,144 | ||||||
AutoZone, Inc. * | 4,068 | 661,538 | ||||||
Barnes & Noble, Inc. | 1,100 | 23,518 | ||||||
Big Lots, Inc. * | 7,700 | 160,006 | ||||||
Dollar Tree, Inc. * | 8,394 | 373,953 | ||||||
Family Dollar Stores, Inc. | 10,600 | 353,722 | ||||||
PetSmart, Inc. | 2,400 | 50,304 | ||||||
Priceline.com, Inc. * | 3,259 | 256,744 | ||||||
RadioShack Corp. | 11,592 | 99,343 | ||||||
Rent-A-Center, Inc. * | 4,400 | 85,228 | ||||||
Ross Stores, Inc. | 2,400 | 86,112 | ||||||
2,272,612 | ||||||||
Semiconductors & Semiconductor Equipment 0.6% | ||||||||
Advanced Micro Devices, Inc. * | 29,590 | 90,250 | ||||||
Atmel Corp. * | 8,200 | 29,766 | ||||||
Micron Technology, Inc. * | 53,760 | 218,266 | ||||||
338,282 | ||||||||
Software & Services 10.8% | ||||||||
Accenture Ltd., Class A | 28,300 | 777,967 | ||||||
Amdocs Ltd. * | 14,010 | 259,465 | ||||||
BMC Software, Inc. * | 12,973 | 428,109 | ||||||
CA, Inc. | 28,300 | 498,363 | ||||||
CACI International, Inc., Class A * | 2,100 | 76,629 | ||||||
Computer Sciences Corp. * | 12,700 | 467,868 | ||||||
Compuware Corp. * | 4,500 | 29,655 | ||||||
DST Systems, Inc. * | 700 | 24,234 | ||||||
Fiserv, Inc. * | 2,800 | 102,088 | ||||||
Hewitt Associates, Inc., Class A * | 1,800 | 53,568 | ||||||
IAC/InterActiveCorp. * | 7,450 | 113,464 | ||||||
Intuit, Inc. * | 17,310 | 467,370 | ||||||
Microsoft Corp. | 97,435 | 1,789,881 | ||||||
Novell, Inc. * | 28,100 | 119,706 | ||||||
Oracle Corp. * | 35,569 | 642,732 | ||||||
Parametric Technology Corp. * | 4,990 | 49,800 | ||||||
Perot Systems Corp., Class A * | 5,800 | 74,704 | ||||||
Quest Software, Inc. * | 4,240 | 53,763 | ||||||
Synopsys, Inc. * | 13,710 | 284,208 | ||||||
VeriSign, Inc. * | 3,411 | 64,366 | ||||||
Visa, Inc., Class A | 3,600 | 200,160 | ||||||
6,578,100 |
See financial notes 21
Laudus Rosenberg U.S. Large Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Technology Hardware & Equipment 9.2% | ||||||||
Harris Corp. | 11,820 | 342,071 | ||||||
Hewlett-Packard Co. | 72,200 | 2,314,732 | ||||||
International Business Machines Corp. | 28,900 | 2,800,121 | ||||||
QLogic Corp. * | 2,400 | 26,688 | ||||||
Sun Microsystems, Inc. * | 16,810 | 123,049 | ||||||
5,606,661 | ||||||||
Telecommunication Services 3.4% | ||||||||
AT&T, Inc. | 26,500 | 667,800 | ||||||
CenturyTel, Inc. | 7,740 | 217,649 | ||||||
Frontier Communications Corp. | 200 | 1,436 | ||||||
NII Holdings, Inc. * | 12,280 | 184,200 | ||||||
United States Cellular Corp. * | 600 | 20,004 | ||||||
Verizon Communications, Inc. | 24,040 | 726,008 | ||||||
Windstream Corp. | 32,650 | 263,159 | ||||||
2,080,256 | ||||||||
Transportation 0.5% | ||||||||
FedEx Corp. | 5,700 | 253,593 | ||||||
Ryder System, Inc. | 900 | 25,479 | ||||||
UTI Worldwide, Inc. | 1,900 | 22,705 | ||||||
301,777 | ||||||||
Utilities 4.5% | ||||||||
American Electric Power Co., Inc. | 9,450 | 238,707 | ||||||
American Water Works Co., Inc. | 1,470 | 28,283 | ||||||
Consolidated Edison, Inc. | 300 | 11,883 | ||||||
DTE Energy Co. | 11,080 | 306,916 | ||||||
Edison International | 22,900 | 659,749 | ||||||
Mirant Corp. * | 11,370 | 129,618 | ||||||
NiSource, Inc. | 20,716 | 203,017 | ||||||
Pepco Holdings, Inc. | 14,787 | 184,542 | ||||||
PG&E Corp. | 17,500 | 668,850 | ||||||
SCANA Corp. | 8,500 | 262,565 | ||||||
Unisource Energy Corp. | 2,360 | 66,528 | ||||||
2,760,658 | ||||||||
Total Common Stock (Cost $66,329,515) | 59,867,680 | |||||||
Other Investment Companies 2.2% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 1,318,983 | 1,318,983 | ||||||
Total Other Investment Companies (Cost $1,318,983) | 1,318,983 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $68,482,604 and the unrealized appreciation and depreciation were $2,609,335 and ($9,905,276), respectively, with a net unrealized depreciation of ($7,295,941). |
* | Non-income producing security. |
22 See financial notes
Laudus Rosenberg U.S. Large Capitalization Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $67,648,498) | $61,186,663 | |||||
Receivables: | ||||||
Investments sold | 251,172 | |||||
Dividends | 155,993 | |||||
Fund shares sold | 67,666 | |||||
Due from investment adviser | 1,860 | |||||
Interest | 328 | |||||
Prepaid expenses | + | 1,327 | ||||
Total assets | 61,665,009 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 717,089 | |||||
Fund shares redeemed | 48,345 | |||||
Distribution and shareholder services fees | 3,222 | |||||
Trustee’s retirement plan | 696 | |||||
Accrued expenses | + | 53,524 | ||||
Total liabilities | 822,876 | |||||
Net Assets | ||||||
Total assets | 61,665,009 | |||||
Total liabilities | − | 822,876 | ||||
Net assets | $60,842,133 | |||||
Net Assets by Source | ||||||
Capital received from investors | 104,530,320 | |||||
Net investment income not yet distributed | 328,386 | |||||
Net realized capital losses | (37,554,738 | ) | ||||
Net unrealized capital losses | (6,461,835 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $7,951,241 | 1,243,854 | $6.39 | |||||||||
Select Shares | $52,890,892 | 8,297,673 | $6.37 |
See financial notes 23
Laudus Rosenberg U.S. Large Capitalization Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends | $1,946,016 | |||||
Interest | + | 10,302 | ||||
Total Investment Income | 1,956,318 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (29,736,001 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (7,650,246 | ) | ||||
Expenses | ||||||
Investment adviser fees | 603,233 | |||||
Accounting and administration fees | 41,813 | |||||
Professional fees | 38,036 | |||||
Custodian fees | 29,958 | |||||
Registration fees | 29,632 | |||||
Transfer agent fees | 22,822 | |||||
Distribution and shareholder services fees (Investor Shares) | 18,865 | |||||
Shareholder reports | 15,914 | |||||
Sub-Accounting fees (Investor Shares) | 11,144 | |||||
Trustees’ fees | 5,112 | |||||
Interest expense | 450 | |||||
Other expenses | + | 12,174 | ||||
Total expenses | 829,153 | |||||
Expense reduction by adviser | − | 126,825 | ||||
Custody credits | − | 21 | ||||
Net expenses | 702,307 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 1,956,318 | |||||
Net expenses | − | 702,307 | ||||
Net investment income | 1,254,011 | |||||
Net realized losses | (29,736,001 | ) | ||||
Net unrealized losses | + | (7,650,246 | ) | |||
Decrease in net assets from operations | ($36,132,236 | ) |
24 See financial notes
Laudus Rosenberg U.S. Large Capitalization Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $1,254,011 | $776,494 | ||||||||
Net realized gains (losses) | (29,736,001 | ) | 5,283,353 | |||||||
Net unrealized losses | + | (7,650,246 | ) | (11,039,541 | ) | |||||
Decrease in net assets from operations | (36,132,236 | ) | (4,979,694 | ) | ||||||
Distributions to Shareholders 1,2 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 73,064 | 45,709 | ||||||||
Select Shares | + | 1,076,584 | 668,782 | |||||||
Total distributions from net investment income | 1,149,648 | 714,491 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | — | 1,538,942 | ||||||||
Select Shares | + | — | 13,458,529 | |||||||
Total distributions from net realized gains | — | 14,997,471 | ||||||||
Total distributions | $1,149,648 | $15,711,962 |
Transactions in Fund Shares 1,2 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 284,141 | $2,506,291 | 203,845 | $2,518,064 | ||||||||||||||
Select Shares | + | 3,349,677 | 28,198,028 | 3,800,104 | 48,736,304 | |||||||||||||
Total shares sold | 3,633,818 | $30,704,319 | 4,003,949 | $51,254,368 | ||||||||||||||
Issued in connection with merger | ||||||||||||||||||
Investor Shares | 412,246 | $2,713,243 | - | $- | ||||||||||||||
Select Shares | + | 1,075,587 | 7,059,329 | - | - | |||||||||||||
Total shares issued in connection with merger | 1,487,833 | $9,772,572 | - | $- | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 9,802 | $68,616 | 131,106 | $1,511,650 | ||||||||||||||
Select Shares | + | 129,058 | 899,538 | 1,136,301 | 13,078,824 | |||||||||||||
Total shares reinvested | 138,860 | $968,154 | 1,267,407 | $14,590,474 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (330,657 | ) | ($2,967,042 | ) | (228,959 | ) | ($2,884,976 | ) | ||||||||||
Select Shares | + | (4,330,234 | ) | (33,154,277 | ) | (4,050,690 | ) | (54,462,466 | ) | |||||||||
Total shares redeemed | (4,660,891 | ) | ($36,121,319 | ) | (4,279,649 | ) | ($57,347,442 | ) | ||||||||||
Net transactions in fund shares | 599,620 | $5,323,726 | 991,707 | $8,497,400 | ||||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 8,941,907 | $92,800,291 | 7,950,200 | $104,994,547 | ||||||||||||||
Total increase or decrease | + | 599,620 | (31,958,158 | ) | 991,707 | (12,194,256 | ) | |||||||||||
End of period | 9,541,527 | $60,842,133 | 8,941,907 | $92,800,291 | ||||||||||||||
Net investment income not yet distributed | $328,386 | $224,733 |
1 | Effective July 31, 2008, the Institutional Shares class were redesignated as Select Shares. |
2 | Effective March 26, 2009, all of the assets and liabilities of the Laudus Rosenberg U.S. Large Capitalization Growth Fund were transferred to the Laudus Rosenberg U.S. Large Capitalization Fund. (See Financial Note 12) |
See financial notes 25
Laudus Rosenberg U.S. Large Capitalization Value Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/2/07– | 4/1/06– | 5/2/051– | |||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | ||||||||||||
Per-Share Data ($) | ||||||||||||||||
Net asset value at beginning of period | 10.45 | 12.70 | 11.87 | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | 0.17 | 2 | 0.13 | 2 | 0.11 | 2 | 0.13 | 2 | ||||||||
Net realized and unrealized gains (losses) | (4.43 | ) | (0.73 | ) | 1.45 | 1.80 | ||||||||||
Total from investment operations | (4.26 | ) | (0.60 | ) | 1.56 | 1.93 | ||||||||||
Less distributions: | ||||||||||||||||
Distributions from net investment income | (0.05 | ) | (0.12 | ) | (0.24 | ) | — | |||||||||
Distributions from net realized gains | — | (1.53 | ) | (0.49 | ) | (0.06 | ) | |||||||||
Total distributions | (0.05 | ) | (1.65 | ) | (0.73 | ) | (0.06 | ) | ||||||||
Net asset value at end of period | 6.14 | 10.45 | 12.70 | 11.87 | ||||||||||||
Total return (%) | (40.80 | ) | (5.50 | ) | 13.22 | 19.33 | 3 | |||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||
Ratios to average net assets: | ||||||||||||||||
Net operating expenses | 1.14 | 1.31 | 4 | 1.29 | 0.96 | 5 | ||||||||||
Gross operating expenses | 2.45 | 3.28 | 2.75 | 2.78 | 5 | |||||||||||
Net investment income (loss) | 2.11 | 1.01 | 0.90 | 1.31 | 5 | |||||||||||
Portfolio turnover rate | 63 | 61 | 108 | 81 | 3 | |||||||||||
Net assets, end of period ($ x 1,000) | 624 | 454 | 540 | 145 |
4/1/08– | 4/1/07– | 4/1/06– | 5/2/051– | |||||||||||||
Select Shares | 3/31/096 | 3/31/08 | 3/31/07 | 3/31/06 | ||||||||||||
Per-Share Data ($) | ||||||||||||||||
Net asset value at beginning of period | 10.47 | 12.74 | 11.89 | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | 0.20 | 2 | 0.16 | 2 | 0.15 | 2 | 0.18 | 2 | ||||||||
Net realized and unrealized gains (losses) | (4.44 | ) | (0.73 | ) | 1.45 | 1.79 | ||||||||||
Total from investment operations | (4.24 | ) | (0.57 | ) | 1.60 | 1.97 | ||||||||||
Less distributions: | ||||||||||||||||
Distributions from net investment income | (0.07 | ) | (0.17 | ) | (0.26 | ) | (0.02 | ) | ||||||||
Distributions from net realized gains | — | (1.53 | ) | (0.49 | ) | (0.06 | ) | |||||||||
Total distributions | (0.07 | ) | (1.70 | ) | (0.75 | ) | (0.08 | ) | ||||||||
Net asset value at end of period | 6.16 | 10.47 | 12.74 | 11.89 | ||||||||||||
Total return (%) | (40.60 | ) | (5.29 | ) | 13.55 | 19.83 | 3 | |||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||
Ratios to average net assets: | ||||||||||||||||
Net operating expenses | 0.84 | 1.01 | 7 | 0.99 | 0.49 | 5 | ||||||||||
Gross operating expenses | 1.92 | 2.88 | 2.37 | 2.41 | 5 | |||||||||||
Net investment income (loss) | 2.66 | 1.32 | 1.22 | 1.82 | 5 | |||||||||||
Portfolio turnover rate | 63 | 61 | 108 | 81 | 3 | |||||||||||
Net assets, end of period ($ x 1,000) | 19,451 | 5,765 | 6,058 | 6,694 |
1 Commencement of operations.
2 Calculated based on the average shares outstanding during the period.
3 Not annualized.
4 The ratio of net operating expenses would have been 1.29%, if interest expenses had not been included.
5 Annualized.
6 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
7 The ratio of net operating expenses would have been 0.99%, if interest expenses had not been included.
26 See financial notes
Laudus Rosenberg U.S. Large Capitalization Value Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
98 | .0% | Common Stock | 23,065,799 | 19,664,038 | ||||||||
3 | .1% | Other Investment Company | 621,851 | 621,851 | ||||||||
101 | .1% | Total Investments | 23,687,650 | 20,285,889 | ||||||||
(1 | .1)% | Other Assets and Liabilities, Net | (210,892 | ) | ||||||||
100 | .0% | Net Assets | 20,074,997 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 98.0% of net assets | ||||||||
Banks 4.0% | ||||||||
BB&T Corp. | 9,500 | 160,740 | ||||||
First Citizens BancShares, Inc., Class A | 200 | 26,360 | ||||||
Hudson City Bancorp, Inc. | 6,300 | 73,647 | ||||||
M&T Bank Corp. | 120 | 5,429 | ||||||
PNC Financial Services Group, Inc. | 1,300 | 38,077 | ||||||
U.S. Bancorp | 18,100 | 264,441 | ||||||
Wells Fargo & Co. | 16,600 | 236,384 | ||||||
805,078 | ||||||||
Capital Goods 4.4% | ||||||||
Aecom Technology Corp. * | 227 | 5,920 | ||||||
Alliant Techsystems, Inc. * | 400 | 26,792 | ||||||
Armstrong World Industries, Inc. * | 300 | 3,303 | ||||||
Dover Corp. | 800 | 21,104 | ||||||
GATX Corp. | 900 | 18,207 | ||||||
General Dynamics Corp. | 5,600 | 232,904 | ||||||
General Electric Co. | 39,900 | 403,389 | ||||||
KBR, Inc. | 800 | 11,048 | ||||||
L-3 Communications Holdings, Inc. | 550 | 37,290 | ||||||
Raytheon Co. | 150 | 5,841 | ||||||
SPX Corp. | 270 | 12,693 | ||||||
Thomas & Betts Corp. * | 900 | 22,518 | ||||||
Trinity Industries, Inc. | 1,900 | 17,366 | ||||||
URS Corp. * | 1,400 | 56,574 | ||||||
874,949 | ||||||||
Commercial & Professional Supplies 0.9% | ||||||||
Manpower, Inc. | 400 | 12,612 | ||||||
Pitney Bowes, Inc. | 400 | 9,340 | ||||||
Waste Management, Inc. | 5,900 | 151,040 | ||||||
172,992 | ||||||||
Consumer Durables & Apparel 0.2% | ||||||||
Hasbro, Inc. | 1,600 | 40,112 | ||||||
Consumer Services 0.3% | ||||||||
Career Education Corp. * | 1,600 | 38,336 | ||||||
International Speedway Corp., Class A | 800 | 17,648 | ||||||
55,984 | ||||||||
Diversified Financials 4.8% | ||||||||
American Express Co. | 600 | 8,178 | ||||||
Bank of America Corp. | 24,300 | 165,726 | ||||||
Investment Technology Gp Inc New * | 200 | 5,104 | ||||||
JPMorgan Chase & Co. | 15,470 | 411,193 | ||||||
Northern Trust Corp. | 370 | 22,133 | ||||||
Raymond James Financial, Inc. | 2,100 | 41,370 | ||||||
State Street Corp. | 4,300 | 132,354 | ||||||
The Goldman Sachs Group, Inc. | 1,600 | 169,632 | ||||||
955,690 | ||||||||
Energy 14.1% | ||||||||
Anadarko Petroleum Corp. | 2,700 | 105,003 | ||||||
Chesapeake Energy Corp. | 1,310 | 22,349 | ||||||
Chevron Corp. | 13,200 | 887,568 | ||||||
ConocoPhillips | 5,800 | 227,128 | ||||||
Encore Acquisition Co. * | 900 | 20,943 | ||||||
ENSCO International, Inc. | 600 | 15,840 | ||||||
Exxon Mobil Corp. | 15,900 | 1,082,790 | ||||||
Helix Energy Solutions Group, Inc. * | 500 | 2,570 | ||||||
Helmerich & Payne, Inc. | 2,100 | 47,817 | ||||||
Marathon Oil Corp. | 9,600 | 252,384 | ||||||
Oil States International, Inc. * | 400 | 5,368 | ||||||
Overseas Shipholding Group, Inc. | 200 | 4,534 | ||||||
Plains Exploration & Production Co. * | 180 | 3,101 | ||||||
Pride International, Inc. * | 734 | 13,197 | ||||||
Rowan Cos., Inc. | 1,300 | 15,561 | ||||||
SEACOR Holdings, Inc. * | 500 | 29,155 | ||||||
Southern Union Co. | 2,500 | 38,050 | ||||||
Sunoco, Inc. | 1,100 | 29,128 | ||||||
Tidewater, Inc. | 1,040 | 38,615 | ||||||
2,841,101 | ||||||||
Food & Staples Retailing 3.8% | ||||||||
BJ’s Wholesale Club, Inc. * | 1,300 | 41,587 | ||||||
CVS Caremark Corp. | 9,200 | 252,908 | ||||||
Safeway, Inc. | 7,600 | 153,444 | ||||||
Wal-Mart Stores, Inc. | 5,400 | 281,340 | ||||||
Walgreen Co. | 1,600 | 41,536 | ||||||
770,815 | ||||||||
Food, Beverage & Tobacco 7.3% | ||||||||
Altria Group, Inc. | 4,500 | 72,090 | ||||||
Archer-Daniels-Midland Co. | 9,300 | 258,354 |
See financial notes 27
Laudus Rosenberg U.S. Large Capitalization Value Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
ConAgra Foods, Inc. | 6,880 | 116,065 | ||||||
Corn Products International, Inc. | 1,300 | 27,560 | ||||||
Dean Foods Co. * | 1,100 | 19,888 | ||||||
Del Monte Foods Co. | 4,400 | 32,076 | ||||||
General Mills, Inc. | 4,500 | 224,460 | ||||||
H.J. Heinz Co. | 1,700 | 56,202 | ||||||
Kellogg Co. | 2,100 | 76,923 | ||||||
Kraft Foods, Inc., Class A | 11,400 | 254,106 | ||||||
Lorillard, Inc. | 300 | 18,522 | ||||||
PepsiAmericas, Inc. | 1,300 | 22,425 | ||||||
Reynolds American, Inc. | 2,100 | 75,264 | ||||||
Sara Lee Corp. | 11,460 | 92,597 | ||||||
The J.M. Smucker Co. | 1,700 | 63,359 | ||||||
The Pepsi Bottling Group, Inc. | 2,800 | 61,992 | ||||||
1,471,883 | ||||||||
Health Care Equipment & Services 3.3% | ||||||||
Beckman Coulter, Inc. | 400 | 20,404 | ||||||
Cardinal Health, Inc. | 1,800 | 56,664 | ||||||
Community Health Systems, Inc. * | 1,600 | 24,544 | ||||||
Coventry Health Care, Inc. * | 700 | 9,058 | ||||||
Health Net, Inc. * | 2,300 | 33,304 | ||||||
Humana, Inc. * | 1,400 | 36,512 | ||||||
Inverness Medical Innovations, Inc. * | 900 | 23,967 | ||||||
LifePoint Hospitals, Inc. * | 1,100 | 22,946 | ||||||
Lincare Holdings, Inc. * | 200 | 4,360 | ||||||
McKesson Corp. | 1,700 | 59,568 | ||||||
Omnicare, Inc. | 2,040 | 49,959 | ||||||
Teleflex, Inc. | 820 | 32,054 | ||||||
The Cooper Cos., Inc. | 1,100 | 29,084 | ||||||
WellPoint, Inc. * | 6,800 | 258,196 | ||||||
660,620 | ||||||||
Household & Personal Products 3.4% | ||||||||
Avon Products, Inc. | 300 | 5,769 | ||||||
Kimberly-Clark Corp. | 3,900 | 179,829 | ||||||
NBTY, Inc. * | 700 | 9,856 | ||||||
The Clorox Co. | 1,900 | 97,812 | ||||||
The Procter & Gamble Co. | 8,460 | 398,381 | ||||||
691,647 | ||||||||
Insurance 5.4% | ||||||||
Allied World Assurance Co. Holdings Ltd. | 1,100 | 41,833 | ||||||
American Financial Group, Inc. | 1,700 | 27,285 | ||||||
Aon Corp. | 300 | 12,246 | ||||||
Arch Capital Group Ltd. * | 900 | 48,474 | ||||||
Assurant, Inc. | 2,371 | 51,640 | ||||||
Endurance Specialty Holdings Ltd. | 1,000 | 24,940 | ||||||
Everest Re Group Ltd. | 1,300 | 92,040 | ||||||
Hanover Insurance Group, Inc. | 1,200 | 34,584 | ||||||
HCC Insurance Holdings, Inc. | 2,500 | 62,975 | ||||||
PartnerRe Ltd. | 1,100 | 68,277 | ||||||
StanCorp Financial Group, Inc. | 1,000 | 22,780 | ||||||
The Chubb Corp. | 5,500 | 232,760 | ||||||
The Travelers Cos., Inc. | 6,990 | 284,074 | ||||||
Unum Group | 6,000 | 75,000 | ||||||
1,078,908 | ||||||||
Materials 1.6% | ||||||||
Eastman Chemical Co. | 1,400 | 37,520 | ||||||
FMC Corp. | 1,000 | 43,140 | ||||||
PPG Industries, Inc. | 3,000 | 110,700 | ||||||
RPM International, Inc. | 590 | 7,511 | ||||||
Sealed Air Corp. | 3,400 | 46,920 | ||||||
Sonoco Products Co. | 1,500 | 31,470 | ||||||
The Mosaic Co. | 800 | 33,584 | ||||||
The Scotts Miracle-Gro Co., Class A | 300 | 10,410 | ||||||
321,255 | ||||||||
Media 1.4% | ||||||||
Comcast Corp., Class A | 20,800 | 283,712 | ||||||
The Interpublic Group of Cos., Inc. * | 1,600 | 6,592 | ||||||
290,304 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 14.0% | ||||||||
Amgen, Inc. * | 8,300 | 411,016 | ||||||
Bristol-Myers Squibb Co. | 3,340 | 73,213 | ||||||
Endo Pharmaceuticals Holdings, Inc. * | 300 | 5,304 | ||||||
Forest Laboratories, Inc. * | 4,900 | 107,604 | ||||||
Johnson & Johnson | 12,100 | 636,460 | ||||||
King Pharmaceuticals, Inc. * | 4,900 | 34,643 | ||||||
Life Technologies Corp. * | 1,100 | 35,728 | ||||||
Merck & Co., Inc. | 12,410 | 331,967 | ||||||
Mylan, Inc. * | 5,000 | 67,050 | ||||||
PerkinElmer, Inc. | 1,500 | 19,155 | ||||||
Pfizer, Inc. | 51,710 | 704,290 | ||||||
Thermo Fisher Scientific, Inc. * | 4,600 | 164,082 | ||||||
Watson Pharmaceuticals, Inc. * | 1,200 | 37,332 | ||||||
Wyeth | 4,220 | 181,629 | ||||||
2,809,473 | ||||||||
Real Estate 0.1% | ||||||||
Hospitality Properties Trust | 1,900 | 22,800 | ||||||
Retailing 4.8% | ||||||||
Barnes & Noble, Inc. | 900 | 19,242 | ||||||
Family Dollar Stores, Inc. | 2,700 | 90,099 | ||||||
Limited Brands, Inc. | 1,900 | 16,530 | ||||||
Lowe’s Cos., Inc. | 18,400 | 335,800 | ||||||
RadioShack Corp. | 2,800 | 23,996 | ||||||
Staples, Inc. | 2,200 | 39,842 | ||||||
Target Corp. | 1,300 | 44,707 | ||||||
The Gap, Inc. | 4,800 | 62,352 | ||||||
The Home Depot, Inc. | 13,900 | 327,484 | ||||||
960,052 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
Atmel Corp. * | 3,700 | 13,431 | ||||||
Software & Services 2.1% | ||||||||
Affiliated Computer Services, Inc., Class A * | 1,400 | 67,046 | ||||||
Amdocs Ltd. * | 2,500 | 46,300 | ||||||
CA, Inc. | 3,950 | 69,560 |
28 See financial notes
Laudus Rosenberg U.S. Large Capitalization Value Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Computer Sciences Corp. * | 2,630 | 96,889 | ||||||
Compuware Corp. * | 2,100 | 13,839 | ||||||
Convergys Corp. * | 2,800 | 22,624 | ||||||
DST Systems, Inc. * | 300 | 10,386 | ||||||
IAC/InterActiveCorp. * | 1,800 | 27,414 | ||||||
Novell, Inc. * | 2,600 | 11,076 | ||||||
Synopsys, Inc. * | 2,800 | 58,044 | ||||||
423,178 | ||||||||
Technology Hardware & Equipment 0.9% | ||||||||
Brocade Communications Systems, Inc. * | 6,800 | 23,460 | ||||||
International Business Machines Corp. | 800 | 77,512 | ||||||
Lexmark International, Inc., Class A * | 1,800 | 30,366 | ||||||
NCR Corp. * | 300 | 2,385 | ||||||
QLogic Corp. * | 2,700 | 30,024 | ||||||
Western Digital Corp. * | 700 | 13,538 | ||||||
177,285 | ||||||||
Telecommunication Services 8.6% | ||||||||
AT&T, Inc. | 31,900 | 803,880 | ||||||
CenturyTel, Inc. | 1,900 | 53,428 | ||||||
Embarq Corp. | 700 | 26,495 | ||||||
Frontier Communications Corp. | 5,500 | 39,490 | ||||||
Qwest Communications International, Inc. | 15,647 | 53,513 | ||||||
Verizon Communications, Inc. | 23,420 | 707,284 | ||||||
Windstream Corp. | 4,600 | 37,076 | ||||||
1,721,166 | ||||||||
Transportation 1.1% | ||||||||
Continental Airlines, Inc., Class B * | 700 | 6,167 | ||||||
CSX Corp. | 300 | 7,755 | ||||||
Norfolk Southern Corp. | 4,900 | 165,375 | ||||||
Ryder System, Inc. | 900 | 25,479 | ||||||
Union Pacific Corp. | 380 | 15,622 | ||||||
UTI Worldwide, Inc. | 200 | 2,390 | ||||||
222,788 | ||||||||
Utilities 11.4% | ||||||||
AGL Resources, Inc. | 800 | 21,224 | ||||||
Alliant Energy Corp. | 1,910 | 47,158 | ||||||
Ameren Corp. | 2,500 | 57,975 | ||||||
American Electric Power Co., Inc. | 6,140 | 155,096 | ||||||
Atmos Energy Corp. | 1,800 | 41,616 | ||||||
CenterPoint Energy, Inc. | 2,500 | 26,075 | ||||||
CMS Energy Corp. | 4,500 | 53,280 | ||||||
Consolidated Edison, Inc. | 4,500 | 178,245 | ||||||
DTE Energy Co. | 3,200 | 88,640 | ||||||
Duke Energy Corp. | 18,600 | 266,352 | ||||||
Edison International | 5,400 | 155,574 | ||||||
FirstEnergy Corp. | 1,200 | 46,320 | ||||||
FPL Group, Inc. | 4,080 | 206,979 | ||||||
MDU Resources Group, Inc. | 3,660 | 59,072 | ||||||
Mirant Corp. * | 1,280 | 14,592 | ||||||
NiSource, Inc. | 5,600 | 54,880 | ||||||
Northeast Utilities | 3,100 | 66,929 | ||||||
NRG Energy, Inc. * | 2,600 | 45,760 | ||||||
NV Energy, Inc. | 3,800 | 35,682 | ||||||
OGE Energy Corp. | 1,900 | 45,258 | ||||||
ONEOK, Inc. | 2,200 | 49,786 | ||||||
Pepco Holdings, Inc. | 4,200 | 52,416 | ||||||
PG&E Corp. | 5,200 | 198,744 | ||||||
Pinnacle West Capital Corp. | 1,900 | 50,464 | ||||||
SCANA Corp. | 2,300 | 71,047 | ||||||
UGI Corp. | 2,114 | 49,912 | ||||||
Xcel Energy, Inc. | 7,700 | 143,451 | ||||||
2,282,527 | ||||||||
Total Common Stock (Cost $23,065,799) | 19,664,038 | |||||||
Other Investment Company 3.1% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 621,851 | 621,851 | ||||||
Total Other Investment Company (Cost $621,851) | 621,851 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $23,894,168 and the unrealized appreciation and depreciation were $302,934 and ($3,911,213), respectively, with a net unrealized depreciation of ($3,608,279). |
* | Non-income producing security. |
See financial notes 29
Laudus Rosenberg U.S. Large Capitalization Value Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $23,687,650) | $20,285,889 | |||||
Receivables: | ||||||
Investments sold | 276,806 | |||||
Dividends | 43,037 | |||||
Due from investment adviser | 5,588 | |||||
Fund shares sold | 1,589 | |||||
Interest | 226 | |||||
Prepaid expenses | + | 119 | ||||
Total assets | 20,613,254 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 496,385 | |||||
Distribution and shareholder services fees | 141 | |||||
Fund shares redeemed | 12 | |||||
Accrued expenses | + | 41,719 | ||||
Total liabilities | 538,257 | |||||
Net Assets | ||||||
Total assets | 20,613,254 | |||||
Total liabilities | − | 538,257 | ||||
Net assets | $20,074,997 | |||||
Net Assets by Source | ||||||
Capital received from investors | 25,985,211 | |||||
Net investment income not yet distributed | 137,456 | |||||
Net realized capital losses | (2,645,909 | ) | ||||
Net unrealized capital losses | (3,401,761 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $623,835 | 101,637 | $6.14 | |||||||||
Select Shares | $19,451,162 | 3,160,043 | $6.16 |
30 See financial notes
Laudus Rosenberg U.S. Large Capitalization Value Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends | $402,706 | |||||
Interest | + | 1,355 | ||||
Total Investment Income | 404,061 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (2,610,683 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (3,749,481 | ) | ||||
Expenses | ||||||
Investment adviser fees | 86,926 | |||||
Accounting and administration fees | 39,514 | |||||
Professional fees | 32,605 | |||||
Registration fees | 25,220 | |||||
Transfer agent fees | 15,892 | |||||
Custodian fees | 8,299 | |||||
Trustees’ fees | 5,781 | |||||
Shareholder reports | 4,244 | |||||
Distribution and shareholder services fees (Investor Shares) | 1,471 | |||||
Sub-Accounting fees (Investor Shares) | 793 | |||||
Other expenses | + | 4,928 | ||||
Total expenses | 225,673 | |||||
Expense reduction by adviser | − | 126,587 | ||||
Custody credits | − | 236 | ||||
Net expenses | 98,850 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 404,061 | |||||
Net expenses | − | 98,850 | ||||
Net investment income | 305,211 | |||||
Net realized losses | (2,610,683 | ) | ||||
Net unrealized losses | + | (3,749,481 | ) | |||
Decrease in net assets from operations | ($6,054,953 | ) |
See financial notes 31
Laudus Rosenberg U.S. Large Capitalization Value Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $305,211 | $86,559 | ||||||||
Net realized gains (losses) | (2,610,683 | ) | 223,229 | |||||||
Net unrealized losses | + | (3,749,481 | ) | (653,994 | ) | |||||
Decrease in net assets from operations | (6,054,953 | ) | (344,206 | ) | ||||||
Distributions to Shareholders1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 5,845 | 4,658 | ||||||||
Select Shares | + | 184,126 | 79,412 | |||||||
Total distributions from net investment income | 189,971 | 84,070 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | - | 57,870 | ||||||||
Select Shares | + | - | 721,640 | |||||||
Total distributions from net realized gains | - | 779,510 | ||||||||
Total distributions | $189,971 | $863,580 |
Transactions in Fund Shares1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 92,116 | $722,726 | 18,847 | $243,213 | ||||||||||||||
Select Shares | + | 3,134,668 | 23,697,085 | 25,907 | 320,163 | |||||||||||||
Total shares sold | 3,226,784 | $24,419,811 | 44,754 | $563,376 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 741 | $5,325 | 5,381 | $59,887 | ||||||||||||||
Select Shares | + | 25,396 | 182,848 | 70,923 | 790,081 | |||||||||||||
Total shares reinvested | 26,137 | $188,173 | 76,304 | $849,968 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (34,668 | ) | ($245,352 | ) | (23,337 | ) | ($300,566 | ) | ||||||||||
Select Shares | + | (550,568 | ) | (4,261,188 | ) | (21,717 | ) | (285,264 | ) | |||||||||
Total shares redeemed | (585,236 | ) | ($4,506,540 | ) | (45,054 | ) | ($585,830 | ) | ||||||||||
Net transactions in fund shares | 2,667,685 | $20,101,444 | 76,004 | $827,514 | ||||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 593,995 | $6,218,477 | 517,991 | $6,598,749 | ||||||||||||||
Total increase or decrease | + | 2,667,685 | 13,856,520 | 76,004 | (380,272 | ) | ||||||||||||
End of period | 3,261,680 | $20,074,997 | 593,995 | $6,218,477 | ||||||||||||||
Net investment income not yet distributed | $137,456 | $22,576 |
1 | Effective July 31, 2008, Institutional Shares were redesignated as Select Shares. |
32 See financial notes
Laudus Rosenberg U.S. Discovery Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 15.97 | 19.59 | 19.07 | 15.88 | 14.66 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | 1 | (0.04 | ) | (0.06 | ) | (0.03 | ) | (0.05 | )1 | ||||||||||
Net realized and unrealized gains (losses) | (6.60 | ) | (2.10 | ) | 1.06 | 3.55 | 1.47 | |||||||||||||
Total from investment operations | (6.58 | ) | (2.14 | ) | 1.00 | 3.52 | 1.42 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.02 | ) | — | — | — | (0.02 | ) | |||||||||||||
Distributions from net realized gains | (0.07 | ) | (1.48 | ) | (0.48 | ) | (0.16 | ) | (0.18 | ) | ||||||||||
Return of Capital | — | — | — | (0.17 | ) | — | ||||||||||||||
Total distributions | (0.09 | ) | (1.48 | ) | (0.48 | ) | (0.33 | ) | (0.20 | ) | ||||||||||
Net asset value at end of period | 9.30 | 15.97 | 19.59 | 19.07 | 15.88 | |||||||||||||||
Total return (%) | (41.24 | ) | (11.36 | ) | 5.34 | 22.40 | 9.70 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.40 | 1.34 | 1.34 | 1.43 | 1.49 | |||||||||||||||
Gross operating expenses | 1.40 | 1.34 | 1.35 | 1.43 | 1.55 | |||||||||||||||
Net investment income (loss) | 0.13 | (0.20 | ) | (0.21 | ) | (0.20 | ) | (0.30 | ) | |||||||||||
Portfolio turnover rate | 115 | 74 | 86 | 89 | 63 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 81,981 | 169,670 | 217,045 | 284,285 | 58,284 |
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/092 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 16.23 | 19.80 | 19.23 | 15.96 | 14.71 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.07 | 1 | 0.04 | 0.03 | 0.02 | 0.03 | 1 | |||||||||||||
Net realized and unrealized gains (losses) | (6.71 | ) | (2.13 | ) | 1.05 | 3.58 | 1.44 | |||||||||||||
Total from investment operations | (6.64 | ) | (2.09 | ) | 1.08 | 3.60 | 1.47 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.08 | ) | 0.00 | 3 | (0.03 | ) | — | (0.04 | ) | |||||||||||
Distributions from net realized gains | (0.07 | ) | (1.48 | ) | (0.48 | ) | (0.16 | ) | (0.18 | ) | ||||||||||
Return of Capital | — | — | — | (0.17 | ) | — | ||||||||||||||
Total distributions | (0.15 | ) | (1.48 | ) | (0.51 | ) | (0.33 | ) | (0.22 | ) | ||||||||||
Net asset value at end of period | 9.44 | 16.23 | 19.80 | 19.23 | 15.96 | |||||||||||||||
Total return (%) | (40.99 | ) | (10.98 | ) | 5.71 | 22.80 | 9.98 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 0.99 | 0.96 | 0.97 | 1.09 | 1.14 | |||||||||||||||
Gross operating expenses | 0.99 | 0.96 | 0.97 | 1.09 | 1.20 | |||||||||||||||
Net investment income (loss) | 0.53 | 0.18 | 0.17 | 0.15 | 0.23 | |||||||||||||||
Portfolio turnover rate | 115 | 74 | 86 | 89 | 63 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 295,568 | 566,055 | 718,185 | 673,599 | 256,444 |
1 Calculated based on the average shares outstanding during the period.
2 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
3 Amount less than $0.005.
See financial notes 33
Laudus Rosenberg U.S. Discovery Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
98 | .2% | Common Stock | 483,943,639 | 370,718,279 | ||||||||
1 | .9% | Other Investment Company | 7,395,243 | 7,395,243 | ||||||||
100 | .1% | Total Investments | 491,338,882 | 378,113,522 | ||||||||
(0 | .1)% | Other Assets and Liabilities, Net | (564,585 | ) | ||||||||
100 | .0% | Net Assets | 377,548,937 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 98.2% of net assets | ||||||||
Automobiles & Components 0.0% | ||||||||
Exide Technologies * | 46,152 | 138,456 | ||||||
Banks 6.0% | ||||||||
Alliance Financial Corp. | 810 | 14,531 | ||||||
Astoria Financial Corp. | 87,288 | 802,177 | ||||||
Banco Latinoamericano de Exportaciones, S.A., Class E | 52,640 | 493,237 | ||||||
BancorpSouth, Inc. | 61,727 | 1,286,391 | ||||||
Bank of Hawaii Corp. | 28,200 | 930,036 | ||||||
Berkshire Hills Bancorp, Inc. | 6,923 | 158,675 | ||||||
BOK Financial Corp. | 7,699 | 266,000 | ||||||
Brookline Bancorp, Inc. | 15,300 | 145,350 | ||||||
Capitol Federal Financial | 5,700 | 215,517 | ||||||
Carolina Bank Holdings, Inc. * | 6,600 | 27,720 | ||||||
Central Valley Community Bancorp * | 2,488 | 11,619 | ||||||
City National Corp. | 24,580 | 830,067 | ||||||
Commerce Bancshares, Inc. | 59,455 | 2,158,216 | ||||||
Community Bank System, Inc. | 8,470 | 141,872 | ||||||
Cullen/Frost Bankers, Inc. | 35,600 | 1,671,064 | ||||||
ESB Financial Corp. | 1,250 | 13,737 | ||||||
First Citizens BancShares, Inc., Class A | 10,404 | 1,371,247 | ||||||
First Defiance Financial Corp. | 13,339 | 80,568 | ||||||
First Federal Bancshares of Arkansas, Inc. | 3,002 | 14,109 | ||||||
First Financial Bankshares, Inc. | 5,100 | 245,667 | ||||||
First United Corp. | 1,333 | 11,171 | ||||||
FirstMerit Corp. | 27,632 | 502,902 | ||||||
Glacier Bancorp, Inc. | 34,563 | 542,985 | ||||||
Hawthorn Bancshares, Inc. | 4,602 | 52,233 | ||||||
HF Financial Corp. | 7,361 | 93,853 | ||||||
Hopfed Bancorp, Inc. | 1,310 | 12,412 | ||||||
Horizon Bancorp | 4,409 | 48,940 | ||||||
International Bancshares Corp. | 10,428 | 81,338 | ||||||
Intervest Bancshares Corp., Class A | 399 | 858 | ||||||
LSB Financial Corp. | 2,483 | 27,313 | ||||||
New York Community Bancorp, Inc. | 29,570 | 330,297 | ||||||
NewAlliance Bancshares, Inc. | 177,520 | 2,084,085 | ||||||
OceanFirst Financial Corp. | 5,249 | 53,645 | ||||||
Parkvale Financial Corp. | 10,562 | 115,971 | ||||||
People’s United Financial, Inc. | 157,109 | 2,823,249 | ||||||
Peoples Bancorp of North Carolina | 11,844 | 68,103 | ||||||
Premier Financial Bancorp, Inc. | 7,195 | 38,853 | ||||||
Prosperity Bancshares, Inc. | 33,020 | 903,097 | ||||||
QCR Holdings, Inc. | 3,320 | 26,693 | ||||||
Republic Bancorp, Inc., Class A | 2,100 | 39,207 | ||||||
Southern Missouri Bancorp, Inc. | 5,141 | 55,111 | ||||||
Southside Bancshares, Inc. | 8,850 | 167,265 | ||||||
SVB Financial Group * | 16,900 | 338,169 | ||||||
Tamalpais Bancorp | 3,556 | 19,558 | ||||||
TCF Financial Corp. | 17,086 | 200,931 | ||||||
TF Financial Corp. | 6,010 | 109,322 | ||||||
Tompkins Financial Corp. | 1,700 | 73,100 | ||||||
UMB Financial Corp. | 8,010 | 340,345 | ||||||
United Western Bancorp, Inc. | 13,615 | 66,441 | ||||||
Valley National Bancorp | 95,650 | 1,183,190 | ||||||
Westamerica Bancorp | 15,912 | 724,951 | ||||||
Wilmington Trust Corp. | 39,927 | 386,893 | ||||||
Wintrust Financial Corp. | 8,280 | 101,844 | ||||||
22,502,125 | ||||||||
Capital Goods 3.6% | ||||||||
A-Power Energy Generation Systems Ltd. * | 1,583 | 6,870 | ||||||
Aecom Technology Corp. * | 189,000 | 4,929,120 | ||||||
Aircastle Ltd. | 105,347 | 489,864 | ||||||
Albany International Corp., Class A | 18,670 | 168,963 | ||||||
Applied Industrial Technologies, Inc. | 11,210 | 189,113 | ||||||
Beacon Roofing Supply, Inc. * | 99,300 | 1,329,627 | ||||||
Esterline Technologies Corp. * | 24,890 | 502,529 | ||||||
Federal Signal Corp. | 59,350 | 312,774 | ||||||
Force Protection, Inc. * | 25,459 | 122,203 | ||||||
Griffon Corp. * | 56,009 | 420,067 | ||||||
H&E Equipment Services, Inc. * | 36,996 | 242,324 | ||||||
Interline Brands, Inc. * | 11,690 | 98,547 | ||||||
K-Tron International, Inc. * | 190 | 11,527 | ||||||
KBR, Inc. | 183,811 | 2,538,430 | ||||||
Lawson Products, Inc. | 6,686 | 81,369 | ||||||
Michael Baker Corp. * | 17,100 | 444,600 | ||||||
Rush Enterprises, Inc., Class A * | 47,826 | 426,608 | ||||||
Seaboard Corp. | 462 | 466,620 | ||||||
Teledyne Technologies, Inc. * | 2,500 | 66,700 | ||||||
The L.S. Starrett Co., Class A | 8,051 | 50,319 | ||||||
Triumph Group, Inc. | 15,663 | 598,327 | ||||||
Willis Lease Finance Corp. * | 21,670 | 229,269 | ||||||
13,725,770 | ||||||||
Commercial & Professional Supplies 1.9% | ||||||||
ABM Industries, Inc. | 7,275 | 119,310 | ||||||
Administaff, Inc. | 45,800 | 967,754 |
34 See financial notes
Laudus Rosenberg U.S. Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
CDI Corp. | 1,554 | 15,105 | ||||||
Comfort Systems USA, Inc. | 59,364 | 615,605 | ||||||
Deluxe Corp. | 110,084 | 1,060,109 | ||||||
Ecology & Environment, Inc., Class A | 4,252 | 53,490 | ||||||
G & K Services, Inc., Class A | 2,509 | 47,445 | ||||||
GeoEye, Inc. * | 240 | 4,740 | ||||||
GP Strategies Corp. * | 35,012 | 124,643 | ||||||
Heidrick & Struggles International, Inc. | 10,823 | 192,000 | ||||||
Industrial Services of America, Inc. | 7,500 | 34,425 | ||||||
Intersections, Inc. * | 6,380 | 34,005 | ||||||
Kelly Services, Inc., Class A | 79,330 | 638,607 | ||||||
LECG Corp. * | 2,836 | 7,203 | ||||||
National Technical Systems, Inc. | 16,403 | 48,553 | ||||||
Sykes Enterprises, Inc. * | 83,840 | 1,394,259 | ||||||
United Stationers, Inc. * | 50,716 | 1,424,105 | ||||||
Volt Information Sciences, Inc. * | 29,941 | 199,108 | ||||||
VSE Corp. | 6,631 | 177,048 | ||||||
7,157,514 | ||||||||
Consumer Durables & Apparel 0.1% | ||||||||
CSS Industries, Inc. | 6,381 | 108,477 | ||||||
Liz Claiborne, Inc. | 79,176 | 195,565 | ||||||
Steven Madden Ltd. * | 1,875 | 35,212 | ||||||
Tupperware Brands Corp. | 3,500 | 59,465 | ||||||
398,719 | ||||||||
Consumer Services 2.7% | ||||||||
Ark Restaurants Corp. | 6,840 | 63,338 | ||||||
Bally Technologies, Inc. * | 29,960 | 551,863 | ||||||
Bob Evans Farms, Inc. | 79,762 | 1,788,264 | ||||||
CEC Entertainment, Inc. * | 44,100 | 1,141,308 | ||||||
Coinstar, Inc. * | 24,707 | 809,401 | ||||||
Cracker Barrel Old Country Store, Inc. | 64,094 | 1,835,652 | ||||||
Domino’s Pizza, Inc. * | 11,820 | 77,421 | ||||||
Frisch’s Restaurants, Inc. | 4,580 | 92,745 | ||||||
ITT Educational Services, Inc. * | 9,500 | 1,153,490 | ||||||
Jack in the Box, Inc. * | 4,340 | 101,079 | ||||||
LIFE TIME FITNESS, Inc. * | 50,545 | 634,845 | ||||||
Red Lion Hotels Corp. * | 9,400 | 27,542 | ||||||
Red Robin Gourmet Burgers, Inc. * | 10,220 | 180,179 | ||||||
Regis Corp. | 48,550 | 701,547 | ||||||
Sonic Corp. * | 70,878 | 710,198 | ||||||
Speedway Motorsports, Inc. | 37,440 | 442,541 | ||||||
10,311,413 | ||||||||
Diversified Financials 0.6% | ||||||||
California First National Bancorp | 8,630 | 64,725 | ||||||
Cash America International, Inc. | 49,170 | 770,002 | ||||||
EZCORP, Inc., Class A * | 81,199 | 939,473 | ||||||
Interactive Brokers Group, Inc., Class A * | 3,125 | 50,406 | ||||||
QC Holdings, Inc. | 9,812 | 57,989 | ||||||
Raymond James Financial, Inc. | 26,700 | 525,990 | ||||||
2,408,585 | ||||||||
Energy 3.4% | ||||||||
Atlas America, Inc. | 47,450 | 415,188 | ||||||
Hornbeck Offshore Services, Inc. * | 530 | 8,077 | ||||||
Massey Energy Co. | 106,002 | 1,072,740 | ||||||
Mitcham Industries, Inc. * | 22,556 | 85,938 | ||||||
SEACOR Holdings, Inc. * | 42,950 | 2,504,414 | ||||||
Southern Union Co. | 221,600 | 3,372,752 | ||||||
Swift Energy Co. * | 71,200 | 519,760 | ||||||
Tesoro Corp. | 7,615 | 102,574 | ||||||
Tidewater, Inc. | 130,158 | 4,832,767 | ||||||
12,914,210 | ||||||||
Food & Staples Retailing 0.9% | ||||||||
Nash Finch Co. | 33,263 | 934,357 | ||||||
Susser Holdings Corp. * | 4,670 | 62,765 | ||||||
The Andersons, Inc. | 7,036 | 99,489 | ||||||
The Pantry, Inc. * | 52,600 | 926,286 | ||||||
Weis Markets, Inc. | 15,545 | 482,517 | ||||||
Winn-Dixie Stores, Inc. * | 109,080 | 1,042,805 | ||||||
3,548,219 | ||||||||
Food, Beverage & Tobacco 4.6% | ||||||||
B&G Foods, Inc., Class A | 10,490 | 54,548 | ||||||
Cal-Maine Foods, Inc. | 36,900 | 826,191 | ||||||
Constellation Brands, Inc., Class A * | 527,776 | 6,280,534 | ||||||
Corn Products International, Inc. | 165,177 | 3,501,752 | ||||||
Dean Foods Co. * | 107,991 | 1,952,477 | ||||||
Flowers Foods, Inc. | 157,768 | 3,704,393 | ||||||
HQ Sustainable Maritime Industries, Inc. * | 10,880 | 83,232 | ||||||
J & J Snack Foods Corp. | 6,059 | 209,581 | ||||||
Omega Protein Corp. * | 41,440 | 109,402 | ||||||
Overhill Farms, Inc. * | 31,380 | 119,872 | ||||||
Tasty Baking Co. | 22,514 | 95,009 | ||||||
The Boston Beer Co., Inc., Class A * | 10,721 | 223,640 | ||||||
Tyson Foods, Inc., Class A | 18,483 | 173,555 | ||||||
17,334,186 | ||||||||
Health Care Equipment & Services 8.8% | ||||||||
Allied Healthcare Products, Inc. * | 11,835 | 39,292 | ||||||
Amedisys, Inc. * | 17,762 | 488,278 | ||||||
American Dental Partners, Inc. * | 11,878 | 78,632 | ||||||
American Medical Systems Holdings, Inc. * | 6,453 | 71,951 | ||||||
AMERIGROUP Corp. * | 48,995 | 1,349,322 | ||||||
Anika Therapeutics, Inc. * | 10,781 | 49,269 | ||||||
Capital Senior Living Corp. * | 10,257 | 25,027 | ||||||
Cardiac Science Corp. * | 59,815 | 180,043 | ||||||
CONMED Corp. * | 73,087 | 1,053,184 | ||||||
Coventry Health Care, Inc. * | 157,770 | 2,041,544 | ||||||
Daxor Corp. | 608 | 9,363 | ||||||
Dynacq Healthcare, Inc. * | 2,270 | 7,922 | ||||||
ev3, Inc. * | 60,425 | 429,018 | ||||||
Gen-Probe, Inc. * | 4,660 | 212,403 | ||||||
Healthways, Inc. * | 72,780 | 638,281 | ||||||
Hologic, Inc. * | 237,954 | 3,114,818 | ||||||
Invacare Corp. | 73,331 | 1,175,496 | ||||||
Inverness Medical Innovations, Inc. * | 196,125 | 5,222,809 |
See financial notes 35
Laudus Rosenberg U.S. Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Kewaunee Scientific Corp. | 5,900 | 54,575 | ||||||
Kindred Healthcare, Inc. * | 81,167 | 1,213,447 | ||||||
Kinetic Concepts, Inc. * | 66,593 | 1,406,444 | ||||||
Lincare Holdings, Inc. * | 7,370 | 160,666 | ||||||
MedCath Corp. * | 33,516 | 243,661 | ||||||
Molina Healthcare, Inc. * | 12,600 | 239,652 | ||||||
Omnicare, Inc. | 69,730 | 1,707,688 | ||||||
Orthofix International N.V. * | 46,310 | 857,661 | ||||||
SonoSite, Inc. * | 16,397 | 293,179 | ||||||
Span-America Medical Systems, Inc. | 7,600 | 66,082 | ||||||
SurModics, Inc. * | 27,853 | 508,317 | ||||||
Teleflex, Inc. | 128,880 | 5,037,919 | ||||||
The Cooper Cos., Inc. | 100,314 | 2,652,302 | ||||||
Universal American Financial Corp. * | 108,460 | 918,656 | ||||||
Wright Medical Group, Inc. * | 46,975 | 612,084 | ||||||
Zoll Medical Corp. * | 60,998 | 875,931 | ||||||
33,034,916 | ||||||||
Household & Personal Products 2.4% | ||||||||
American Oriental Bioengineering, Inc. * | 142,328 | 549,386 | ||||||
China Sky One Medical, Inc. * | 2,698 | 31,027 | ||||||
Church & Dwight Co., Inc. | 129,500 | 6,763,785 | ||||||
Elizabeth Arden, Inc. * | 66,407 | 387,153 | ||||||
Inter Parfums, Inc. | 33,740 | 196,704 | ||||||
Medifast, Inc. * | 15,330 | 63,620 | ||||||
Natural Alternative International, Inc. * | 16,941 | 104,865 | ||||||
Nu Skin Enterprises, Inc., Class A | 21,733 | 227,979 | ||||||
Nutraceutical International Corp. * | 15,190 | 101,773 | ||||||
Oil-Dri Corp. of America | 1,383 | 20,399 | ||||||
Prestige Brands Holdings, Inc. * | 75,323 | 390,173 | ||||||
Revlon, Inc., Class A * | 79,162 | 196,322 | ||||||
Schiff Nutrition International, Inc. * | 20,320 | 91,440 | ||||||
9,124,626 | ||||||||
Insurance 3.5% | ||||||||
Allied World Assurance Co. Holdings Ltd. | 63,460 | 2,413,384 | ||||||
American Financial Group, Inc. | 216,693 | 3,477,923 | ||||||
American Physicians Service Group, Inc. | 13,885 | 266,175 | ||||||
Argo Group International Holdings Ltd. * | 62,423 | 1,880,805 | ||||||
Aspen Insurance Holdings Ltd. | 163,170 | 3,664,798 | ||||||
Endurance Specialty Holdings Ltd. | 31,500 | 785,610 | ||||||
National Western Life Insurance Co., Class A | 200 | 22,600 | ||||||
PMA Capital Corp., Class A * | 8,789 | 36,650 | ||||||
RenaissanceRe Holdings Ltd. | 1,568 | 77,522 | ||||||
Unico American Corp. * | 11,830 | 91,919 | ||||||
Universal Insurance Holdings, Inc. | 48,416 | 182,044 | ||||||
Wesco Financial Corp. | 338 | 93,288 | ||||||
12,992,718 | ||||||||
Materials 3.1% | ||||||||
A. Schulman, Inc. | 4,661 | 63,157 | ||||||
Friedman Industries, Inc. | 15,410 | 76,279 | ||||||
Glatfelter | 23,400 | 146,016 | ||||||
Innospec, Inc. | 25,177 | 94,917 | ||||||
International Flavors & Fragrances, Inc. | 14,010 | 426,745 | ||||||
NewMarket Corp. | 16,110 | 713,673 | ||||||
Olin Corp. | 90,162 | 1,286,612 | ||||||
Rock-Tenn Co., Class A | 75,606 | 2,045,142 | ||||||
RPM International, Inc. | 225,390 | 2,869,215 | ||||||
Schweitzer-Mauduit International, Inc. | 35,298 | 651,601 | ||||||
The Scotts Miracle-Gro Co., Class A | 95,458 | 3,312,393 | ||||||
Wausau Paper Corp. | 25,666 | 135,003 | ||||||
11,820,753 | ||||||||
Media 0.1% | ||||||||
Live Nation, Inc. * | 154,936 | 413,679 | ||||||
Mediacom Communications Corp., Class A * | 13,551 | 54,611 | ||||||
468,290 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 10.9% | ||||||||
Albany Molecular Research, Inc. * | 9,565 | 90,198 | ||||||
Alexion Pharmaceuticals, Inc. * | 88,648 | 3,338,484 | ||||||
Alkermes, Inc. * | 211,450 | 2,564,889 | ||||||
Bio-Rad Laboratories, Inc., Class A * | 2,476 | 163,168 | ||||||
Caraco Pharmaceutical Laboratories Ltd. * | 24,580 | 86,522 | ||||||
Celera Corp. * | 25,030 | 190,979 | ||||||
Endo Pharmaceuticals Holdings, Inc. * | 268,230 | 4,742,306 | ||||||
Harvard Bioscience, Inc. * | 60,908 | 181,506 | ||||||
Kendle International, Inc. * | 2,940 | 61,622 | ||||||
King Pharmaceuticals, Inc. * | 546,100 | 3,860,927 | ||||||
Life Technologies Corp. * | 228,715 | 7,428,663 | ||||||
Martek Biosciences Corp. * | 76,075 | 1,388,369 | ||||||
Medicis Pharmaceutical Corp., Class A | 8,060 | 99,702 | ||||||
Mylan, Inc. * | 249,154 | 3,341,155 | ||||||
Neurocrine Biosciences, Inc. * | 89,746 | 318,598 | ||||||
Noven Pharmaceuticals, Inc. * | 21,430 | 203,156 | ||||||
OSI Pharmaceuticals, Inc. * | 11,948 | 457,131 | ||||||
Pain Therapeutics, Inc. * | 40,167 | 168,701 | ||||||
Par Pharmaceutical Cos., Inc. * | 54,540 | 516,494 | ||||||
PAREXEL International Corp. * | 114,526 | 1,114,338 | ||||||
PDL BioPharma, Inc. | 156,034 | 1,104,721 | ||||||
PerkinElmer, Inc. | 288,214 | 3,680,493 | ||||||
Repligen Corp. * | 68,591 | 328,551 | ||||||
Varian, Inc. * | 35,430 | 841,108 | ||||||
Warner Chilcott Ltd., Class A * | 180,043 | 1,894,052 | ||||||
Watson Pharmaceuticals, Inc. * | 98,274 | 3,057,304 | ||||||
41,223,137 | ||||||||
Real Estate 1.5% | ||||||||
Cedar Shopping Centers, Inc. | 63,966 | 111,301 | ||||||
DiamondRock Hospitality Co. | 8,110 | 32,521 | ||||||
Entertainment Properties Trust | 60,500 | 953,480 | ||||||
First Potomac Realty Trust | 28,440 | 209,034 | ||||||
Hospitality Properties Trust | 164,140 | 1,969,680 |
36 See financial notes
Laudus Rosenberg U.S. Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
HRPT Properties Trust | 489,174 | 1,560,465 | ||||||
Medical Properties Trust, Inc. | 21,200 | 77,380 | ||||||
Mission West Properties, Inc. | 47,049 | 301,113 | ||||||
One Liberty Properties, Inc. | 26,650 | 93,808 | ||||||
Ramco-Gershenson Properties Trust | 36,600 | 236,070 | ||||||
Transcontinental Realty Investors, Inc. * | 1,273 | 14,016 | ||||||
5,558,868 | ||||||||
Retailing 9.3% | ||||||||
99 Cents Only Stores * | 55,930 | 516,793 | ||||||
Aeropostale, Inc. * | 145,100 | 3,853,856 | ||||||
Barnes & Noble, Inc. | 80,080 | 1,712,110 | ||||||
Big Lots, Inc. * | 208,846 | 4,339,820 | ||||||
Books-A-Million, Inc. | 22,713 | 104,480 | ||||||
Collective Brands, Inc. * | 15,478 | 150,756 | ||||||
Dollar Tree, Inc. * | 183,145 | 8,159,110 | ||||||
Expedia, Inc. * | 253,105 | 2,298,193 | ||||||
Family Dollar Stores, Inc. | 15,642 | 521,973 | ||||||
Haverty Furniture Cos., Inc. | 44,031 | 463,646 | ||||||
Jo-Ann Stores, Inc. * | 65,809 | 1,075,319 | ||||||
Jos. A. Bank Clothiers, Inc. * | 43,572 | 1,211,737 | ||||||
Monro Muffler Brake, Inc. | 2,781 | 76,005 | ||||||
Netflix, Inc. * | 95,068 | 4,080,319 | ||||||
RadioShack Corp. | 317,000 | 2,716,690 | ||||||
REX Stores Corp. * | 24,448 | 262,083 | ||||||
Stage Stores, Inc. | 16,278 | 164,082 | ||||||
Systemax, Inc. * | 25,435 | 328,620 | ||||||
The Children’s Place Retail Stores, Inc. * | 65,530 | 1,434,452 | ||||||
The Dress Barn, Inc. * | 21,970 | 270,011 | ||||||
The Finish Line, Inc., Class A | 44,142 | 292,220 | ||||||
The Pep Boys - Manny, Moe & Jack | 115,870 | 510,987 | ||||||
Tractor Supply Co. * | 8,945 | 322,557 | ||||||
West Marine, Inc. * | 25,020 | 133,857 | ||||||
34,999,676 | ||||||||
Semiconductors & Semiconductor Equipment 2.8% | ||||||||
Actel Corp. * | 67,495 | 683,050 | ||||||
CEVA, Inc. * | 33,440 | 243,443 | ||||||
Cirrus Logic, Inc. * | 177,932 | 669,024 | ||||||
FEI Co. * | 90,663 | 1,398,930 | ||||||
Integrated Device Technology, Inc. * | 517,000 | 2,352,350 | ||||||
IXYS Corp. | 2,814 | 22,681 | ||||||
LSI Corp. * | 14,156 | 43,034 | ||||||
Skyworks Solutions, Inc. * | 454,433 | 3,662,730 | ||||||
Standard Microsystems Corp. * | 47,441 | 882,403 | ||||||
TriQuint Semiconductor, Inc. * | 166,634 | 411,586 | ||||||
10,369,231 | ||||||||
Software & Services 18.3% | ||||||||
AsiaInfo Holdings, Inc. * | 3,138 | 52,875 | ||||||
CACI International, Inc., Class A * | 22,602 | 824,747 | ||||||
CIBER, Inc. * | 163,269 | 445,724 | ||||||
Computer Task Group, Inc. * | 29,411 | 101,468 | ||||||
Compuware Corp. * | 348,942 | 2,299,528 | ||||||
Convergys Corp. * | 326,157 | 2,635,349 | ||||||
CSG Systems International, Inc. * | 78,900 | 1,126,692 | ||||||
Dynamics Research Corp. * | 18,374 | 133,028 | ||||||
EarthLink, Inc. * | 302,752 | 1,989,081 | ||||||
Edgewater Technology, Inc. * | 23,273 | 65,164 | ||||||
Fair Isaac Corp. | 38,075 | 535,715 | ||||||
GSI Commerce, Inc. * | 54,600 | 715,260 | ||||||
Hewitt Associates, Inc., Class A * | 224,574 | 6,683,322 | ||||||
IAC/InterActiveCorp. * | 186,487 | 2,840,197 | ||||||
JDA Software Group, Inc. * | 75,752 | 874,936 | ||||||
Keynote Systems, Inc. * | 29,014 | 230,081 | ||||||
Lawson Software, Inc. * | 378,901 | 1,610,329 | ||||||
MAXIMUS, Inc. | 54,634 | 2,177,711 | ||||||
Mentor Graphics Corp. * | 195,063 | 866,080 | ||||||
Metavante Technologies, Inc. * | 7,910 | 157,884 | ||||||
Ness Technologies, Inc. * | 98,791 | 291,433 | ||||||
NetScout Systems, Inc. * | 70,816 | 507,043 | ||||||
Novell, Inc. * | 953,564 | 4,062,183 | ||||||
Parametric Technology Corp. * | 246,000 | 2,455,080 | ||||||
Perot Systems Corp., Class A * | 227,578 | 2,931,205 | ||||||
Progress Software Corp. * | 12,582 | 218,423 | ||||||
QAD, Inc. | 39,060 | 98,822 | ||||||
Quest Software, Inc. * | 131,900 | 1,672,492 | ||||||
Radiant Systems, Inc. * | 58,793 | 259,277 | ||||||
S1 Corp. * | 102,521 | 527,983 | ||||||
Sohu.com, Inc. * | 60,340 | 2,492,645 | ||||||
Solera Holdings, Inc. * | 157,857 | 3,911,696 | ||||||
SonicWALL, Inc. * | 46,860 | 208,996 | ||||||
SPSS, Inc. * | 51,700 | 1,469,831 | ||||||
Sybase, Inc. * | 256,161 | 7,759,117 | ||||||
Synopsys, Inc. * | 353,755 | 7,333,341 | ||||||
TechTeam Global, Inc. * | 26,600 | 129,808 | ||||||
TIBCO Software, Inc. * | 163,479 | 959,622 | ||||||
United Online, Inc. | 183,353 | 817,754 | ||||||
Web.com Group, Inc. * | 58,391 | 193,858 | ||||||
Websense, Inc. * | 124,851 | 1,498,212 | ||||||
Wind River Systems, Inc. * | 213,034 | 1,363,418 | ||||||
Wright Express Corp. * | 89,546 | 1,631,528 | ||||||
69,158,938 | ||||||||
Technology Hardware & Equipment 2.2% | ||||||||
Arris Group, Inc. * | 72,110 | 531,451 | ||||||
Astro-Med, Inc. | 15,610 | 84,918 | ||||||
Avocent Corp. * | 17,617 | 213,870 | ||||||
Black Box Corp. | 47,851 | 1,129,762 | ||||||
Coherent, Inc. * | 59,892 | 1,033,137 | ||||||
CPI International, Inc. * | 22,200 | 208,680 | ||||||
CTS Corp. | 36,364 | 131,274 | ||||||
Electronics for Imaging, Inc. * | 9,426 | 92,375 | ||||||
Emulex Corp. * | 268,530 | 1,350,706 | ||||||
Gerber Scientific, Inc. * | 20,276 | 48,460 | ||||||
Image Sensing Systems, Inc. * | 1,720 | 15,308 | ||||||
Insight Enterprises, Inc. * | 124,171 | 379,963 | ||||||
IntriCon Corp. * | 5,930 | 19,035 | ||||||
Measurement Specialties, Inc. * | 38,491 | 157,428 | ||||||
Mercury Computer Systems, Inc. * | 11,991 | 66,310 | ||||||
O.I. Corp. | 4,685 | 38,042 | ||||||
Oplink Communications, Inc. * | 10,045 | 77,347 | ||||||
OSI Systems, Inc. * | 41,620 | 635,121 | ||||||
PC Mall, Inc. * | 25,291 | 114,821 | ||||||
Perceptron, Inc. * | 16,078 | 57,077 | ||||||
Richardson Electronics Ltd. | 4,323 | 14,612 | ||||||
Super Micro Computer, Inc. * | 404 | 1,988 | ||||||
SYNNEX Corp. * | 36,469 | 717,345 |
See financial notes 37
Laudus Rosenberg U.S. Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Tekelec * | 33,702 | 445,878 | ||||||
TESSCO Technologies, Inc. * | 11,080 | 85,981 | ||||||
Tollgrade Communications, Inc. * | 31,971 | 185,432 | ||||||
Vicon Industries, Inc. * | 9,292 | 49,433 | ||||||
Vishay Intertechnology, Inc. * | 67,607 | 235,272 | ||||||
8,121,026 | ||||||||
Telecommunication Services 2.4% | ||||||||
CenturyTel, Inc. | 246,468 | 6,930,680 | ||||||
NII Holdings, Inc. * | 51,614 | 774,210 | ||||||
Premiere Global Services, Inc. * | 94,195 | 830,800 | ||||||
SureWest Communications | 24,932 | 194,470 | ||||||
USA Mobility, Inc. | 39,380 | 362,690 | ||||||
9,092,850 | ||||||||
Transportation 1.2% | ||||||||
International Shipholding Corp. | 8,179 | 160,881 | ||||||
Ryder System, Inc. | 49,285 | 1,395,258 | ||||||
Saia, Inc. * | 14,773 | 176,537 | ||||||
SkyWest, Inc. | 97,331 | 1,210,798 | ||||||
TBS International Ltd., Class A * | 25,645 | 188,491 | ||||||
UTI Worldwide, Inc. | 119,020 | 1,422,289 | ||||||
4,554,254 | ||||||||
Utilities 7.9% | ||||||||
AGL Resources, Inc. | 13,190 | 349,931 | ||||||
Alliant Energy Corp. | 273,302 | 6,747,826 | ||||||
Artesian Resources Corp., Class A | 11,103 | 155,664 | ||||||
CMS Energy Corp. | 537,689 | 6,366,238 | ||||||
Delta Natural Gas Co., Inc. | 7,105 | 152,118 | ||||||
El Paso Electric Co. * | 67,820 | 955,584 | ||||||
IDACORP, Inc. | 3,140 | 73,350 | ||||||
New Jersey Resources Corp. | 78,652 | 2,672,595 | ||||||
Northeast Utilities | 68,858 | 1,486,644 | ||||||
NorthWestern Corp. | 109,205 | 2,345,724 | ||||||
NV Energy, Inc. | 491,430 | 4,614,528 | ||||||
OGE Energy Corp. | 20,627 | 491,335 | ||||||
Pepco Holdings, Inc. | 101,152 | 1,262,377 | ||||||
Portland General Electric Co. | 10,529 | 185,205 | ||||||
RGC Resources, Inc. | 412 | 9,915 | ||||||
Southwest Gas Corp. | 1,890 | 39,822 | ||||||
UIL Holdings Corp. | 2,060 | 45,979 | ||||||
Unisource Energy Corp. | 49,190 | 1,386,666 | ||||||
WGL Holdings, Inc. | 12,753 | 418,298 | ||||||
29,759,799 | ||||||||
Total Common Stock (Cost $483,943,639) | 370,718,279 | |||||||
Other Investment Company 1.9% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 7,395,243 | 7,395,243 | ||||||
Total Other Investment Company (Cost $7,395,243) | 7,395,243 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $492,312,668 and the unrealized appreciation and depreciation were $13,906,401 and ($128,105,547), respectively, with a net unrealized depreciation of ($114,199,146). |
* | Non-income producing security. |
38 See financial notes
Laudus Rosenberg U.S. Discovery Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $491,338,882) | $378,113,522 | |||||
Cash | 49,225 | |||||
Receivables: | ||||||
Investments sold | 953,556 | |||||
Fund shares sold | 1,847,716 | |||||
Dividends | 373,006 | |||||
Interest | 1,577 | |||||
Prepaid expenses | + | 10,806 | ||||
Total assets | 381,349,408 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 2,945,331 | |||||
Investment adviser fees | 30,950 | |||||
Fund shares redeemed | 642,280 | |||||
Distribution and shareholder services fees | 42,353 | |||||
Trustee’s retirement plan | 14,155 | |||||
Accrued expenses | + | 125,402 | ||||
Total liabilities | 3,800,471 | |||||
Net Assets | ||||||
Total assets | 381,349,408 | |||||
Total liabilities | − | 3,800,471 | ||||
Net assets | $377,548,937 | |||||
Net Assets by Source | ||||||
Capital received from investors | 644,924,225 | |||||
Net investment income not yet distributed | 1,052,127 | |||||
Net realized capital losses | (155,202,055 | ) | ||||
Net unrealized capital losses | (113,225,360 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $81,980,662 | 8,814,915 | $9.30 | |||||||||
Select Shares | $295,568,275 | 31,310,355 | $9.44 |
See financial notes 39
Laudus Rosenberg U.S. Discovery Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $36) | $8,451,853 | |||||
Interest | 76,082 | |||||
Securities on loan | + | 510,200 | ||||
Total Investment Income | 9,038,135 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (143,102,701 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (148,676,585 | ) | ||||
Expenses | ||||||
Investment adviser fees | 5,346,648 | |||||
Distribution and shareholder services fees (Investor Shares) | 334,602 | |||||
Sub-Accounting fees (Investor Shares) | 201,838 | |||||
Transfer agent fees | 145,362 | |||||
Shareholder reports | 99,422 | |||||
Custodian fees | 78,303 | |||||
Accounting and administration fees | 64,491 | |||||
Professional fees | 60,601 | |||||
Registration fees | 30,345 | |||||
Interest expense | 9,209 | |||||
Other expenses | + | 73,027 | ||||
Total expenses | 6,443,848 | |||||
Custody credits | − | 1,159 | ||||
Net expenses | 6,442,689 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 9,038,135 | |||||
Net expenses | − | 6,442,689 | ||||
Net investment income | 2,595,446 | |||||
Net realized losses | (143,102,701 | ) | ||||
Net unrealized losses | + | (148,676,585 | ) | |||
Decrease in net assets from operations | ($289,183,840 | ) |
40 See financial notes
Laudus Rosenberg U.S. Discovery Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $2,595,446 | $804,464 | ||||||||
Net realized gains (losses) | (143,102,701 | ) | 37,108,290 | |||||||
Net unrealized losses | + | (148,676,585 | ) | (131,953,681 | ) | |||||
Decrease in net assets from operations | (289,183,840 | ) | (94,040,927 | ) | ||||||
Distributions to Shareholders 1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | $158,428 | $- | ||||||||
Select Shares | + | 2,180,530 | - | |||||||
Total distributions from net investment income | 2,338,958 | - | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | 673,788 | 15,189,189 | ||||||||
Select Shares | + | 2,118,982 | 49,870,890 | |||||||
Total distributions from net realized gains | 2,792,770 | 65,060,079 | ||||||||
Total distributions | $5,131,728 | $65,060,079 |
Transactions in Fund Shares 1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 3,456,214 | $43,031,333 | 2,337,924 | $43,513,918 | ||||||||||||||
Select Shares | + | 12,988,421 | 160,654,833 | 8,079,718 | 148,548,635 | |||||||||||||
Total shares sold | 16,444,635 | $203,686,166 | 10,417,642 | $192,062,553 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 82,365 | $819,528 | 876,426 | $14,899,234 | ||||||||||||||
Select Shares | + | 416,456 | 4,197,876 | 2,802,405 | 48,369,515 | |||||||||||||
Total shares reinvested | 498,821 | $5,017,404 | 3,678,831 | $63,268,749 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (5,347,797 | ) | ($68,027,483 | ) | (3,672,199 | ) | ($68,740,227 | ) | ||||||||||
Select Shares | + | (16,973,500 | ) | (204,536,277 | ) | (12,267,874 | ) | (226,995,283 | ) | |||||||||
Total shares redeemed | (22,321,297 | ) | ($272,563,760 | ) | (15,940,073 | ) | ($295,735,510 | ) | ||||||||||
Net transactions in fund shares | (5,377,841 | ) | ($63,860,190 | ) | (1,843,600 | ) | ($40,404,208 | ) | ||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 45,503,111 | $735,724,695 | 47,346,711 | $935,229,909 | ||||||||||||||
Total decrease | + | (5,377,841 | ) | (358,175,758 | ) | (1,843,600 | ) | (199,505,214 | ) | |||||||||
End of period | 40,125,270 | $377,548,937 | 45,503,111 | $735,724,695 | ||||||||||||||
Net investment income not yet distributed | $1,052,127 | $778,433 |
1 | Effective on July 31, 2008, Institutional Shares were redesignated as Select Shares. |
See financial notes 41
Laudus Rosenberg U.S. Small Capitalization Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 8.70 | 12.22 | 13.77 | 13.30 | 13.65 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | 1 | (0.03 | ) | (0.03 | ) | (0.04 | ) | (0.02 | )1 | ||||||||||
Net realized and unrealized gains (losses) | (3.76 | ) | (1.49 | ) | 0.11 | 2.37 | 1.26 | |||||||||||||
Total from investment operations | (3.74 | ) | (1.52 | ) | 0.08 | 2.33 | 1.24 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.02 | ) | — | — | — | — | ||||||||||||||
Distributions from net realized gains | (0.62 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.59 | ) | ||||||||||
Total distributions | (0.64 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.59 | ) | ||||||||||
Net asset value at end of period | 4.32 | 8.70 | 12.22 | 13.77 | 13.30 | |||||||||||||||
Total return (%) | (43.79 | ) | (13.57 | ) | 0.75 | 18.98 | 9.00 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.34 | 1.30 | 1.30 | 1.39 | 1.43 | |||||||||||||||
Gross operating expenses | 1.37 | 1.32 | 1.30 | 1.39 | 1.43 | |||||||||||||||
Net investment income (loss) | 0.21 | (0.22 | ) | (0.25 | ) | (0.33 | ) | (0.15 | ) | |||||||||||
Portfolio turnover rate | 114 | 68 | 76 | 69 | 68 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 77,227 | 183,980 | 269,185 | 311,822 | 297,927 |
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/092 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 9.03 | 12.57 | 14.07 | 13.50 | 13.82 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.04 | 1 | 0.03 | 0.02 | 0.00 | 3 | 0.03 | 1 | ||||||||||||
Net realized and unrealized gains (losses) | (3.90 | ) | (1.57 | ) | 0.11 | 2.43 | 1.27 | |||||||||||||
Total from investment operations | (3.86 | ) | (1.54 | ) | 0.13 | 2.43 | 1.30 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.05 | ) | — | — | — | (0.03 | ) | |||||||||||||
Distributions from net realized gains | (0.62 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.59 | ) | ||||||||||
Total distributions | (0.67 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.62 | ) | ||||||||||
Net asset value at end of period | 4.50 | 9.03 | 12.57 | 14.07 | 13.50 | |||||||||||||||
Total return (%) | (43.52 | ) | (13.34 | ) | 1.11 | 19.46 | 9.36 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.00 | 0.96 | 0.95 | 1.04 | 1.09 | |||||||||||||||
Gross operating expenses | 1.00 | 0.96 | 0.95 | 1.04 | 1.09 | |||||||||||||||
Net investment income (loss) | 0.56 | 0.13 | 0.10 | 0.02 | 0.20 | |||||||||||||||
Portfolio turnover rate | 114 | 68 | 76 | 69 | 68 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 156,272 | 393,939 | 699,921 | 918,813 | 948,225 |
1 Calculated based on the average shares outstanding during the period.
2 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
3 Amount is less than $0.005.
42 See financial notes
Laudus Rosenberg U.S. Small Capitalization Fund
Financial Highlights continued
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Adviser Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 8.82 | 12.35 | 13.88 | 13.38 | 13.71 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | 1 | (0.01 | ) | (0.02 | ) | (0.02 | ) | 0.00 | 1,2 | ||||||||||
Net realized and unrealized gains (losses) | (3.80 | ) | (1.52 | ) | 0.12 | 2.38 | 1.26 | |||||||||||||
Total from investment operations | (3.78 | ) | (1.53 | ) | 0.10 | 2.36 | 1.26 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.03 | ) | — | — | — | — | ||||||||||||||
Distributions from net realized gains | (0.62 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.59 | ) | ||||||||||
Total distributions | (0.65 | ) | (2.00 | ) | (1.63 | ) | (1.86 | ) | (1.59 | ) | ||||||||||
Net asset value at end of period | 4.39 | 8.82 | 12.35 | 13.88 | 13.38 | |||||||||||||||
Total return (%) | (43.68 | ) | (13.50 | ) | 0.90 | 19.09 | 9.12 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.22 | 1.20 | 1.20 | 1.32 | 1.31 | |||||||||||||||
Gross operating expenses | 1.25 | 1.21 | 1.20 | 1.32 | 1.31 | |||||||||||||||
Net investment income (loss) | 0.32 | (0.12 | ) | (0.14 | ) | (0.24 | ) | (0.01 | ) | |||||||||||
Portfolio turnover rate | 114 | 68 | 76 | 69 | 68 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 8,760 | 34,799 | 48,923 | 49,952 | 41,104 |
1 Calculated based on the average shares outstanding during the period.
2 Amount is less than $0.005.
See financial notes 43
Laudus Rosenberg U.S. Small Capitalization Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
98 | .4% | Common Stock | 319,963,132 | 238,405,244 | ||||||||
2 | .2% | Other Investment Company | 5,198,135 | 5,198,135 | ||||||||
100 | .6% | Total Investments | 325,161,267 | 243,603,379 | ||||||||
(0 | .6)% | Other Assets and Liabilities, Net | (1,344,329 | ) | ||||||||
100 | .0% | Net Assets | 242,259,050 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 98.4% of net assets | ||||||||
Automobiles & Components 0.0% | ||||||||
Exide Technologies * | 18,420 | 55,260 | ||||||
Banks 7.4% | ||||||||
Ameriana Bancorp | 505 | 1,429 | ||||||
Astoria Financial Corp. | 42,349 | 389,187 | ||||||
Banco Latinoamericano de Exportaciones, S.A., Class E | 84,479 | 791,568 | ||||||
Bank Mutual Corp. | 3,066 | 27,778 | ||||||
Bank of Hawaii Corp. | 17,500 | 577,150 | ||||||
Brookline Bancorp, Inc. | 19,800 | 188,100 | ||||||
Carver Bancorp, Inc. | 300 | 1,023 | ||||||
Central Valley Community Bancorp * | 2,380 | 11,115 | ||||||
Centrue Financial Corp. | 11,892 | 67,487 | ||||||
Citizens South Banking Corp. | 4,180 | 21,903 | ||||||
Commerce Bancshares, Inc. | 20,895 | 758,488 | ||||||
Community Bank System, Inc. | 12,460 | 208,705 | ||||||
Community Capital Corp. | 2,969 | 15,350 | ||||||
Cullen/Frost Bankers, Inc. | 16,200 | 760,428 | ||||||
ESB Financial Corp. | 10,246 | 112,604 | ||||||
First Citizens BancShares, Inc., Class A | 7,561 | 996,540 | ||||||
First Defiance Financial Corp. | 25,226 | 152,365 | ||||||
First Federal Bancshares of Arkansas, Inc. | 16,226 | 76,262 | ||||||
First Financial Bankshares, Inc. | 7,700 | 370,909 | ||||||
FirstMerit Corp. | 44,800 | 815,360 | ||||||
Flushing Financial Corp. | 6,852 | 41,249 | ||||||
GS Financial Corp. | 2,648 | 35,086 | ||||||
Hancock Holding Co. | 32,300 | 1,010,344 | ||||||
HF Financial Corp. | 16,200 | 206,550 | ||||||
Hopfed Bancorp, Inc. | 6,431 | 60,934 | ||||||
Horizon Bancorp | 7,598 | 84,338 | ||||||
International Bancshares Corp. | 22,100 | 172,380 | ||||||
Liberty Bancorp, Inc. | 3,380 | 23,508 | ||||||
LSB Financial Corp. | 1,500 | 16,500 | ||||||
National Penn Bancshares, Inc. | 101,350 | 841,205 | ||||||
NewAlliance Bancshares, Inc. | 369,351 | 4,336,181 | ||||||
Parkvale Financial Corp. | 28,120 | 308,758 | ||||||
Premier Financial Bancorp, Inc. | 4,440 | 23,976 | ||||||
Prosperity Bancshares, Inc. | 45,031 | 1,231,598 | ||||||
QCR Holdings, Inc. | 4,762 | 38,286 | ||||||
Renasant Corp. | 11,272 | 141,576 | ||||||
Republic Bancorp, Inc., Class A | 3,900 | 72,813 | ||||||
Rurban Financial Corp. | 9,236 | 72,964 | ||||||
Southern Missouri Bancorp, Inc. | 8,300 | 88,976 | ||||||
Southwest Bancorp, Inc. | 23,128 | 216,941 | ||||||
Sun Bancorp, Inc. * | 9,235 | 47,930 | ||||||
SVB Financial Group * | 32,635 | 653,026 | ||||||
Tamalpais Bancorp | 1,958 | 10,769 | ||||||
Teche Holding Co. | 3,320 | 101,260 | ||||||
TF Financial Corp. | 10,476 | 190,558 | ||||||
Tompkins Financial Corp. | 2,100 | 90,300 | ||||||
UMB Financial Corp. | 10,300 | 437,647 | ||||||
United Bancshares, Inc. | 10,998 | 98,982 | ||||||
United Western Bancorp, Inc. | 24,325 | 118,706 | ||||||
Valley National Bancorp | 43,025 | 532,219 | ||||||
Wainwright Bank & Trust Co. | 7,588 | 50,764 | ||||||
Wintrust Financial Corp. | 23,645 | 290,834 | ||||||
17,990,909 | ||||||||
Capital Goods 3.6% | ||||||||
Aircastle Ltd. | 191,262 | 889,368 | ||||||
Albany International Corp., Class A | 9,740 | 88,147 | ||||||
Beacon Roofing Supply, Inc. * | 86,172 | 1,153,843 | ||||||
Esterline Technologies Corp. * | 72,618 | 1,466,157 | ||||||
Federal Signal Corp. | 124,113 | 654,076 | ||||||
Force Protection, Inc. * | 15,077 | 72,370 | ||||||
H&E Equipment Services, Inc. * | 52,205 | 341,943 | ||||||
K-Tron International, Inc. * | 3,313 | 201,000 | ||||||
Lawson Products, Inc. | 6,954 | 84,630 | ||||||
Michael Baker Corp. * | 23,600 | 613,600 | ||||||
Preformed Line Products Co. | 139 | 5,232 | ||||||
Rush Enterprises, Inc., Class A * | 11,618 | 103,633 | ||||||
Seaboard Corp. | 240 | 242,400 | ||||||
SL Industries, Inc. * | 24,994 | 115,472 | ||||||
The L.S. Starrett Co., Class A | 24,546 | 153,412 | ||||||
Triumph Group, Inc. | 53,440 | 2,041,408 | ||||||
Universal Forest Products, Inc. | 2,500 | 66,525 | ||||||
Willis Lease Finance Corp. * | 45,921 | 485,844 | ||||||
8,779,060 | ||||||||
Commercial & Professional Supplies 4.5% | ||||||||
Administaff, Inc. | 32,440 | 685,457 | ||||||
CDI Corp. | 10,171 | 98,862 | ||||||
Comfort Systems USA, Inc. | 105,238 | 1,091,318 | ||||||
Deluxe Corp. | 166,779 | 1,606,082 | ||||||
Ecology & Environment, Inc., Class A | 15,800 | 198,764 | ||||||
GeoEye, Inc. * | 59,355 | 1,172,261 | ||||||
GP Strategies Corp. * | 22,050 | 78,498 |
44 See financial notes
Laudus Rosenberg U.S. Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Heidrick & Struggles International, Inc. | 51,512 | 913,823 | ||||||
Industrial Services of America, Inc. | 10,256 | 47,075 | ||||||
Intersections, Inc. * | 18,379 | 97,960 | ||||||
Kelly Services, Inc., Class A | 142,600 | 1,147,930 | ||||||
Mine Safety Appliances Co. | 30,841 | 617,437 | ||||||
National Technical Systems, Inc. | 10,376 | 30,713 | ||||||
Sykes Enterprises, Inc. * | 60,998 | 1,014,397 | ||||||
United Stationers, Inc. * | 60,516 | 1,699,289 | ||||||
Volt Information Sciences, Inc. * | 18,363 | 122,114 | ||||||
VSE Corp. | 9,975 | 266,333 | ||||||
10,888,313 | ||||||||
Consumer Durables & Apparel 0.2% | ||||||||
CSS Industries, Inc. | 3,456 | 58,752 | ||||||
Flexsteel Industries, Inc. | 7,001 | 36,125 | ||||||
Iconix Brand Group, Inc. * | 590 | 5,222 | ||||||
Liz Claiborne, Inc. | 3,592 | 8,872 | ||||||
M.D.C. Holdings, Inc. | 12,102 | 376,856 | ||||||
Rocky Brands, Inc. * | 1,128 | 3,948 | ||||||
489,775 | ||||||||
Consumer Services 6.0% | ||||||||
Ark Restaurants Corp. | 14,652 | 135,677 | ||||||
Bob Evans Farms, Inc. | 152,716 | 3,423,893 | ||||||
CEC Entertainment, Inc. * | 54,857 | 1,419,699 | ||||||
Coinstar, Inc. * | 111,397 | 3,649,366 | ||||||
Cracker Barrel Old Country Store, Inc. | 95,354 | 2,730,938 | ||||||
Frisch’s Restaurants, Inc. | 14,820 | 300,105 | ||||||
International Speedway Corp., Class A | 17,650 | 389,359 | ||||||
Jack in the Box, Inc. * | 39,670 | 923,914 | ||||||
LIFE TIME FITNESS, Inc. * | 4,960 | 62,298 | ||||||
Regis Corp. | 55,980 | 808,911 | ||||||
Sonic Corp. * | 2,880 | 28,858 | ||||||
Speedway Motorsports, Inc. | 57,201 | 676,116 | ||||||
14,549,134 | ||||||||
Diversified Financials 0.3% | ||||||||
California First National Bancorp | 35,441 | 265,808 | ||||||
Cash America International, Inc. | 8,590 | 134,519 | ||||||
EZCORP, Inc., Class A * | 23,630 | 273,399 | ||||||
673,726 | ||||||||
Energy 0.3% | ||||||||
Atlas America, Inc. | 9,236 | 80,815 | ||||||
Mitcham Industries, Inc. * | 27,006 | 102,893 | ||||||
Swift Energy Co. * | 83,600 | 610,280 | ||||||
793,988 | ||||||||
Food & Staples Retailing 1.8% | ||||||||
Nash Finch Co. | 49,112 | 1,379,556 | ||||||
Susser Holdings Corp. * | 16,268 | 218,642 | ||||||
The Pantry, Inc. * | 22,970 | 404,502 | ||||||
Weis Markets, Inc. | 23,619 | 733,134 | ||||||
Winn-Dixie Stores, Inc. * | 162,429 | 1,552,821 | ||||||
4,288,655 | ||||||||
Food, Beverage & Tobacco 3.3% | ||||||||
B&G Foods, Inc., Class A | 12,260 | 63,752 | ||||||
Cal-Maine Foods, Inc. | 64,375 | 1,441,356 | ||||||
Flowers Foods, Inc. | 202,331 | 4,750,732 | ||||||
HQ Sustainable Maritime Industries, Inc. * | 12,993 | 99,396 | ||||||
John B. Sanfilippo & Son, Inc. * | 25,070 | 133,874 | ||||||
Lance, Inc. | 17,345 | 361,123 | ||||||
Omega Protein Corp. * | 59,008 | 155,781 | ||||||
Overhill Farms, Inc. * | 43,090 | 164,604 | ||||||
Seneca Foods Corp., Class B * | 6,692 | 144,447 | ||||||
Tasty Baking Co. | 33,007 | 139,290 | ||||||
The Boston Beer Co., Inc., Class A * | 21,692 | 452,495 | ||||||
7,906,850 | ||||||||
Health Care Equipment & Services 6.6% | ||||||||
Allied Healthcare Products, Inc. * | 29,000 | 96,280 | ||||||
Amedisys, Inc. * | 41,189 | 1,132,286 | ||||||
American Dental Partners, Inc. * | 8,230 | 54,483 | ||||||
American Medical Systems Holdings, Inc. * | 40,760 | 454,474 | ||||||
AMERIGROUP Corp. * | 52,468 | 1,444,969 | ||||||
Anika Therapeutics, Inc. * | 18,357 | 83,891 | ||||||
Atrion Corp. | 579 | 51,091 | ||||||
Cardiac Science Corp. * | 109,630 | 329,986 | ||||||
CONMED Corp. * | 43,890 | 632,455 | ||||||
Daxor Corp. | 1,250 | 19,250 | ||||||
Dynacq Healthcare, Inc. * | 19,644 | 68,558 | ||||||
ev3, Inc. * | 10,879 | 77,241 | ||||||
Healthways, Inc. * | 36,512 | 320,210 | ||||||
Integra LifeSciences Holdings * | 25,000 | 618,250 | ||||||
Invacare Corp. | 123,662 | 1,982,302 | ||||||
Kewaunee Scientific Corp. | 13,581 | 125,624 | ||||||
Kindred Healthcare, Inc. * | 55,803 | 834,255 | ||||||
MedCath Corp. * | 53,200 | 386,764 | ||||||
Molina Healthcare, Inc. * | 5,130 | 97,573 | ||||||
Orthofix International N.V. * | 69,572 | 1,288,473 | ||||||
SonoSite, Inc. * | 69,400 | 1,240,872 | ||||||
Span-America Medical Systems, Inc. | 11,100 | 96,514 | ||||||
SurModics, Inc. * | 48,762 | 889,906 | ||||||
Symmetry Medical, Inc. * | 135,990 | 858,097 | ||||||
Universal American Financial Corp. * | 131,716 | 1,115,634 | ||||||
Wright Medical Group, Inc. * | 11,173 | 145,584 | ||||||
Zoll Medical Corp. * | 100,088 | 1,437,264 | ||||||
15,882,286 | ||||||||
Household & Personal Products 1.9% | ||||||||
American Oriental Bioengineering, Inc. * | 200,491 | 773,895 | ||||||
China Sky One Medical, Inc. * | 5,090 | 58,535 | ||||||
Elizabeth Arden, Inc. * | 98,409 | 573,725 | ||||||
Inter Parfums, Inc. | 60,008 | 349,847 | ||||||
Medifast, Inc. * | 32,285 | 133,983 |
See financial notes 45
Laudus Rosenberg U.S. Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Natural Alternative International, Inc. * | 34,822 | 215,548 | ||||||
NBTY, Inc. * | 49,500 | 696,960 | ||||||
Nu Skin Enterprises, Inc., Class A | 74,860 | 785,281 | ||||||
Nutraceutical International Corp. * | 24,743 | 165,778 | ||||||
Prestige Brands Holdings, Inc. * | 108,613 | 562,615 | ||||||
Revlon, Inc., Class A * | 46,849 | 116,186 | ||||||
Schiff Nutrition International, Inc. * | 57,190 | 257,355 | ||||||
4,689,708 | ||||||||
Insurance 4.7% | ||||||||
American Physicians Service Group, Inc. | 24,102 | 462,035 | ||||||
American Safety Insurance Holdings Ltd. * | 19,716 | 226,931 | ||||||
Argo Group International Holdings Ltd. * | 101,194 | 3,048,975 | ||||||
Aspen Insurance Holdings Ltd. | 217,775 | 4,891,227 | ||||||
Mercer Insurance Group, Inc. | 2,560 | 36,583 | ||||||
National Western Life Insurance Co., Class A | 12,442 | 1,405,946 | ||||||
PMA Capital Corp., Class A * | 51,148 | 213,287 | ||||||
Presidential Life Corp. | 40,346 | 314,295 | ||||||
Seabright Insurance Holdings * | 17,588 | 183,971 | ||||||
Unico American Corp. * | 29,995 | 233,061 | ||||||
Universal Insurance Holdings, Inc. | 78,584 | 295,476 | ||||||
11,311,787 | ||||||||
Materials 1.6% | ||||||||
A. Schulman, Inc. | 97,722 | 1,324,133 | ||||||
Arch Chemicals, Inc. | 2,377 | 45,068 | ||||||
Continental Materials Corp. * | 5,249 | 73,486 | ||||||
Friedman Industries, Inc. | 23,084 | 114,266 | ||||||
Innospec, Inc. | 60,986 | 229,917 | ||||||
NewMarket Corp. | 2,700 | 119,610 | ||||||
Olin Corp. | 3,530 | 50,373 | ||||||
Rock-Tenn Co., Class A | 25,779 | 697,322 | ||||||
Schweitzer-Mauduit International, Inc. | 61,920 | 1,143,043 | ||||||
The Scotts Miracle-Gro Co., Class A | 4 | 139 | ||||||
3,797,357 | ||||||||
Media 0.2% | ||||||||
Live Nation, Inc. * | 204,669 | 546,466 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 7.8% | ||||||||
Albany Molecular Research, Inc. * | 31,600 | 297,988 | ||||||
Alkermes, Inc. * | 316,529 | 3,839,497 | ||||||
Cambrex Corp. * | 1,374 | 3,133 | ||||||
Caraco Pharmaceutical Laboratories Ltd. * | 28,950 | 101,904 | ||||||
Celera Corp. * | 230,190 | 1,756,350 | ||||||
Cypress Bioscience, Inc. * | 8,140 | 57,875 | ||||||
Harvard Bioscience, Inc. * | 72,019 | 214,617 | ||||||
Martek Biosciences Corp. * | 119,508 | 2,181,021 | ||||||
Medicis Pharmaceutical Corp., Class A | 187,998 | 2,325,535 | ||||||
Nabi Biopharmaceuticals * | 26,774 | 99,064 | ||||||
Neurocrine Biosciences, Inc. * | 97,727 | 346,931 | ||||||
Noven Pharmaceuticals, Inc. * | 7,040 | 66,739 | ||||||
OSI Pharmaceuticals, Inc. * | 66,600 | 2,548,116 | ||||||
Pain Therapeutics, Inc. * | 119,100 | 500,220 | ||||||
Par Pharmaceutical Cos., Inc. * | 105,390 | 998,043 | ||||||
PAREXEL International Corp. * | 33,120 | 322,258 | ||||||
PDL BioPharma, Inc. | 242,916 | 1,719,845 | ||||||
Repligen Corp. * | 102,955 | 493,154 | ||||||
Salix Pharmaceuticals Ltd. * | 14,870 | 141,265 | ||||||
Varian, Inc. * | 40,149 | 953,137 | ||||||
18,966,692 | ||||||||
Real Estate 1.8% | ||||||||
CBL & Associates Properties, Inc. | 35,873 | 84,660 | ||||||
Cedar Shopping Centers, Inc. | 98,988 | 172,239 | ||||||
Entertainment Properties Trust | 49,042 | 772,902 | ||||||
First Potomac Realty Trust | 15,489 | 113,844 | ||||||
HRPT Properties Trust | 649,943 | 2,073,318 | ||||||
Medical Properties Trust, Inc. | 52,592 | 191,961 | ||||||
Mission West Properties, Inc. | 60,831 | 389,319 | ||||||
One Liberty Properties, Inc. | 28,848 | 101,545 | ||||||
Ramco-Gershenson Properties Trust | 54,300 | 350,235 | ||||||
4,250,023 | ||||||||
Retailing 11.0% | ||||||||
Aeropostale, Inc. * | 153,650 | 4,080,944 | ||||||
AMCON Distributing Co. | 2,400 | 61,212 | ||||||
AutoNation, Inc. * | 258,800 | 3,592,144 | ||||||
Barnes & Noble, Inc. | 96,630 | 2,065,949 | ||||||
Books-A-Million, Inc. | 86 | 396 | ||||||
Conn’s, Inc. * | 32,200 | 452,088 | ||||||
Fred’s, Inc., Class A | 82,370 | 929,134 | ||||||
Genesco, Inc. * | 4,800 | 90,384 | ||||||
Haverty Furniture Cos., Inc. | 16,299 | 171,628 | ||||||
Jo-Ann Stores, Inc. * | 96,779 | 1,581,369 | ||||||
Jos. A. Bank Clothiers, Inc. * | 57,982 | 1,612,479 | ||||||
Kirkland’s, Inc. * | 55,200 | 269,376 | ||||||
Monro Muffler Brake, Inc. | 23,423 | 640,151 | ||||||
Netflix, Inc. * | 115,000 | 4,935,800 | ||||||
Rent-A-Center, Inc. * | 25,276 | 489,596 | ||||||
REX Stores Corp. * | 43,669 | 468,132 | ||||||
Stage Stores, Inc. | 12,613 | 127,139 | ||||||
Systemax, Inc. * | 43,916 | 567,395 | ||||||
The Children’s Place Retail Stores, Inc. * | 96,900 | 2,121,141 | ||||||
The Finish Line, Inc., Class A | 22,910 | 151,664 | ||||||
The Pep Boys - Manny, Moe & Jack | 160,796 | 709,110 | ||||||
Tractor Supply Co. * | 45,600 | 1,644,336 | ||||||
26,761,567 | ||||||||
Semiconductors & Semiconductor Equipment 4.5% | ||||||||
Actel Corp. * | 107,282 | 1,085,694 | ||||||
CEVA, Inc. * | 72,811 | 530,064 | ||||||
Cirrus Logic, Inc. * | 159,564 | 599,961 | ||||||
FEI Co. * | 131,912 | 2,035,402 | ||||||
Integrated Device Technology, Inc. * | 10,600 | 48,230 | ||||||
IXYS Corp. | 3,440 | 27,726 | ||||||
Skyworks Solutions, Inc. * | 645,887 | 5,205,849 |
46 See financial notes
Laudus Rosenberg U.S. Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Standard Microsystems Corp. * | 70,529 | 1,311,840 | ||||||
TriQuint Semiconductor, Inc. * | 32,715 | 80,806 | ||||||
10,925,572 | ||||||||
Software & Services 19.9% | ||||||||
CIBER, Inc. * | 272,306 | 743,395 | ||||||
Computer Task Group, Inc. * | 68,846 | 237,519 | ||||||
CSG Systems International, Inc. * | 99,977 | 1,427,672 | ||||||
CSP, Inc. * | 19,112 | 54,469 | ||||||
EarthLink, Inc. * | 484,492 | 3,183,113 | ||||||
Edgewater Technology, Inc. * | 24,668 | 69,070 | ||||||
Fair Isaac Corp. | 18,590 | 261,561 | ||||||
GSI Commerce, Inc. * | 91,100 | 1,193,410 | ||||||
IAC/InterActiveCorp. * | 178,379 | 2,716,712 | ||||||
INX, Inc. * | 13,001 | 31,202 | ||||||
JDA Software Group, Inc. * | 136,075 | 1,571,666 | ||||||
Lawson Software, Inc. * | 543,563 | 2,310,143 | ||||||
Manhattan Associates, Inc. * | 810 | 14,029 | ||||||
MAXIMUS, Inc. | 79,096 | 3,152,767 | ||||||
Mentor Graphics Corp. * | 400,600 | 1,778,664 | ||||||
Ness Technologies, Inc. * | 160,026 | 472,077 | ||||||
NetScout Systems, Inc. * | 82,784 | 592,733 | ||||||
OPNET Technologies, Inc. * | 976 | 8,462 | ||||||
Parametric Technology Corp. * | 194,759 | 1,943,695 | ||||||
Perot Systems Corp., Class A * | 424,966 | 5,473,562 | ||||||
Pervasive Software, Inc. * | 19,310 | 75,309 | ||||||
QAD, Inc. | 48,331 | 122,277 | ||||||
Quest Software, Inc. * | 88,004 | 1,115,891 | ||||||
Solera Holdings, Inc. * | 208,550 | 5,167,869 | ||||||
SonicWALL, Inc. * | 33,768 | 150,605 | ||||||
SPSS, Inc. * | 111,700 | 3,175,631 | ||||||
Sybase, Inc. * | 107,204 | 3,247,209 | ||||||
TechTeam Global, Inc. * | 53,045 | 258,860 | ||||||
TIBCO Software, Inc. * | 8,870 | 52,067 | ||||||
United Online, Inc. | 468,752 | 2,090,634 | ||||||
Websense, Inc. * | 193,200 | 2,318,400 | ||||||
Wind River Systems, Inc. * | 290,633 | 1,860,051 | ||||||
Wright Express Corp. * | 76,100 | 1,386,542 | ||||||
48,257,266 | ||||||||
Technology Hardware & Equipment 4.9% | ||||||||
Arris Group, Inc. * | 26,020 | 191,767 | ||||||
Astro-Med, Inc. | 25,734 | 139,993 | ||||||
Avocent Corp. * | 1,830 | 22,216 | ||||||
Black Box Corp. | 95,300 | 2,250,033 | ||||||
Coherent, Inc. * | 109,851 | 1,894,930 | ||||||
Concurrent Computer Corp. * | 1,130 | 4,091 | ||||||
CPI International, Inc. * | 17,524 | 164,726 | ||||||
CTS Corp. | 10,441 | 37,692 | ||||||
Electro Rent Corp. | 10,097 | 97,335 | ||||||
EMS Technologies, Inc. * | 1,120 | 19,555 | ||||||
Emulex Corp. * | 391,190 | 1,967,686 | ||||||
Image Sensing Systems, Inc. * | 2,860 | 25,454 | ||||||
Insight Enterprises, Inc. * | 246,729 | 754,991 | ||||||
IntriCon Corp. * | 17,880 | 57,395 | ||||||
Measurement Specialties, Inc. * | 64,900 | 265,441 | ||||||
Mercury Computer Systems, Inc. * | 15,510 | 85,770 | ||||||
O.I. Corp. | 11,700 | 95,004 | ||||||
Oplink Communications, Inc. * | 3,589 | 27,635 | ||||||
OSI Systems, Inc. * | 68,578 | 1,046,500 | ||||||
PC Mall, Inc. * | 38,000 | 172,520 | ||||||
Perceptron, Inc. * | 26,405 | 93,738 | ||||||
Richardson Electronics Ltd. | 14,033 | 47,431 | ||||||
Schmitt Industries, Inc. * | 8,703 | 24,107 | ||||||
Super Micro Computer, Inc. * | 4,751 | 23,375 | ||||||
SYNNEX Corp. * | 43,288 | 851,475 | ||||||
Tekelec * | 68,490 | 906,123 | ||||||
TESSCO Technologies, Inc. * | 12,892 | 100,042 | ||||||
Tollgrade Communications, Inc. * | 46,880 | 271,904 | ||||||
Vicon Industries, Inc. * | 24,940 | 132,681 | ||||||
11,771,610 | ||||||||
Telecommunication Services 0.7% | ||||||||
Consolidated Communications Holdings, Inc. | 12,735 | 130,661 | ||||||
D&E Communications, Inc. | 39,000 | 209,430 | ||||||
Invitel Holdings A/S * | 1,940 | 7,275 | ||||||
Premiere Global Services, Inc. * | 73,085 | 644,610 | ||||||
SureWest Communications | 28,799 | 224,632 | ||||||
USA Mobility, Inc. | 39,677 | 365,425 | ||||||
1,582,033 | ||||||||
Transportation 0.6% | ||||||||
Air T., Inc. | 1,350 | 7,722 | ||||||
International Shipholding Corp. | 14,642 | 288,008 | ||||||
Saia, Inc. * | 5 | 60 | ||||||
SkyWest, Inc. | 53,694 | 667,953 | ||||||
TBS International Ltd., Class A * | 45,300 | 332,955 | ||||||
USA Truck, Inc. * | 3,210 | 41,505 | ||||||
UTI Worldwide, Inc. | 18,050 | 215,698 | ||||||
1,553,901 | ||||||||
Utilities 4.8% | ||||||||
Artesian Resources Corp., Class A | 17,204 | 241,200 | ||||||
Delta Natural Gas Co., Inc. | 7,246 | 155,137 | ||||||
El Paso Electric Co. * | 194,846 | 2,745,380 | ||||||
Energy West, Inc. | 5,329 | 43,591 | ||||||
IDACORP, Inc. | 29,327 | 685,079 | ||||||
NorthWestern Corp. | 168,224 | 3,613,452 | ||||||
Pennichuck Corp. | 2,440 | 49,898 | ||||||
PNM Resources, Inc. | 7,250 | 59,885 | ||||||
Portland General Electric Co. | 22,221 | 390,867 | ||||||
RGC Resources, Inc. | 3,210 | 77,249 | ||||||
Southwest Gas Corp. | 18,150 | 382,420 | ||||||
UIL Holdings Corp. | 6,234 | 139,143 | ||||||
Unisource Energy Corp. | 110,323 | 3,110,005 | ||||||
11,693,306 | ||||||||
Total Common Stock (Cost $319,963,132) | 238,405,244 | |||||||
See financial notes 47
Laudus Rosenberg U.S. Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Other Investment Company 2.2% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund – Institutional Class | 5,198,135 | 5,198,135 | ||||||
Total Other Investment Company (Cost $5,198,135) | 5,198,135 | |||||||
End of Investments. | ||||||||
At 03/31/2009, the tax basis cost of the fund’s investments was $325,692,420 and the unrealized appreciation and depreciation were $8,898,728 and ($90,987,769), respectively, with a net unrealized depreciation of ($82,089,041). |
* | Non-income producing security. | |
48 See financial notes
Laudus Rosenberg U.S. Small Capitalization Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $325,161,267) | $243,603,379 | |||||
Cash | 49,596 | |||||
Receivables: | ||||||
Investments sold | 1,076,181 | |||||
Dividends | 319,451 | |||||
Fund shares sold | 317,878 | |||||
Interest | 1,068 | |||||
Prepaid expenses | + | 12,878 | ||||
Total assets | 245,380,431 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 2,571,242 | |||||
Fund shares redeemed | 151,999 | |||||
Distribution and shareholder services fees | 141,848 | |||||
Trustee’s retirement plan | 98,864 | |||||
Investment adviser fees | 20,183 | |||||
Accrued expenses | + | 137,245 | ||||
Total liabilities | 3,121,381 | |||||
Net Assets | ||||||
Total assets | 245,380,431 | |||||
Total liabilities | − | 3,121,381 | ||||
Net assets | $242,259,050 | |||||
Net Assets by Source | ||||||
Capital received from investors | 445,005,117 | |||||
Distribution in excess of net investment income | (98,864 | ) | ||||
Net realized capital losses | (121,089,315 | ) | ||||
Net unrealized capital losses | (81,557,888 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $77,226,801 | 17,858,068 | $4.32 | |||||||||
Select Shares | $156,272,017 | 34,730,188 | $4.50 | |||||||||
Adviser Shares | $8,760,232 | 1,995,401 | $4.39 |
See financial notes 49
Laudus Rosenberg U.S. Small Capitalization Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $129) | $6,254,564 | |||||
Interest | 62,589 | |||||
Securities on loan | + | 562,013 | ||||
Total Investment Income | 6,879,166 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (86,082,931 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (134,259,839 | ) | ||||
Expenses | ||||||
Investment adviser fees | 3,977,818 | |||||
Distribution and shareholder services fees | ||||||
Investor Shares | 349,992 | |||||
Adviser Shares | 60,838 | |||||
Sub-Accounting fees (Investor Shares) | 164,696 | |||||
Transfer agent fees | 91,242 | |||||
Shareholder reports | 65,679 | |||||
Accounting and administration fees | 56,474 | |||||
Professional fees | 55,558 | |||||
Custodian fees | 47,287 | |||||
Registration fees | 35,229 | |||||
Interest expense | 19,609 | |||||
Trustees’ fees | 750 | |||||
Other expenses | + | 87,801 | ||||
Total expenses | 5,012,973 | |||||
Expense reduction by adviser | − | 49,300 | ||||
Custody credits | − | 3,816 | ||||
Net expenses | 4,959,857 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 6,879,166 | |||||
Net expenses | − | 4,959,857 | ||||
Net investment income | 1,919,309 | |||||
Net realized losses | (86,082,931 | ) | ||||
Net unrealized losses | + | (134,259,839 | ) | |||
Decrease in net assets from operations | ($218,423,461 | ) |
50 See financial notes
Laudus Rosenberg U.S. Small Capitalization Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $1,919,309 | $182,344 | ||||||||
Net realized gains (losses) | (86,082,931 | ) | 82,186,761 | |||||||
Net unrealized losses | + | (134,259,839 | ) | (190,015,225 | ) | |||||
Decrease in net assets from operations | (218,423,461 | ) | (107,646,120 | ) | ||||||
Distributions to Shareholders 1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 357,280 | — | ||||||||
Select Shares | 1,779,537 | 52,220 | ||||||||
Adviser Shares | + | 80,711 | — | |||||||
Total distributions from net investment income | 2,217,528 | 52,220 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | 9,944,036 | 37,650,467 | ||||||||
Select Shares | 20,158,252 | 86,858,222 | ||||||||
Adviser Shares | + | 1,682,888 | 6,733,105 | |||||||
Total distributions from net realized gains | 31,785,176 | 131,241,794 | ||||||||
Total distributions | $34,002,704 | $131,294,014 |
Transactions in Fund Shares 1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 3,402,022 | $23,675,790 | 3,180,317 | $34,760,049 | ||||||||||||||
Select Shares | 5,582,719 | 36,961,264 | 6,132,943 | 71,884,130 | ||||||||||||||
Adviser Shares | + | 568,518 | 3,783,780 | 923,717 | 9,727,022 | |||||||||||||
Total shares sold | 9,553,259 | $64,420,834 | 10,236,977 | $116,371,201 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 2,118,042 | $10,230,144 | 3,322,282 | $30,996,893 | ||||||||||||||
Select Shares | 4,153,795 | 20,852,050 | 8,219,330 | 79,563,111 | ||||||||||||||
Adviser Shares | + | 263,615 | 1,291,713 | 531,532 | 5,022,981 | |||||||||||||
Total shares reinvested | 6,535,452 | $32,373,907 | 12,073,144 | $115,582,985 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (8,807,356 | ) | ($56,553,042 | ) | (7,377,747 | ) | ($82,542,754 | ) | ||||||||||
Select Shares | (18,618,626 | ) | (139,952,008 | ) | (26,429,861 | ) | (299,178,447 | ) | ||||||||||
Adviser Shares | + | (2,784,045 | ) | (18,323,102 | ) | (1,470,741 | ) | (16,603,866 | ) | |||||||||
Total shares redeemed | (30,210,027 | ) | ($214,828,152 | ) | (35,278,349 | ) | ($398,325,067 | ) | ||||||||||
Net transactions in fund shares | (14,121,316 | ) | ($118,033,411 | ) | (12,968,228 | ) | ($166,370,881 | ) | ||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 68,704,973 | $612,718,626 | 81,673,201 | $1,018,029,641 | ||||||||||||||
Total decrease | + | (14,121,316 | ) | (370,459,576 | ) | (12,968,228 | ) | (405,311,015 | ) | |||||||||
End of period | 54,583,657 | $242,259,050 | 68,704,973 | $612,718,626 | ||||||||||||||
(Distribution in excess of net investment income)/ | ($98,864 | ) | $65,175 | |||||||||||||||
Net investment income not yet distributed |
1 | Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares. |
See financial notes 51
Laudus Rosenberg Long/Short Equity Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 10.30 | 10.63 | 10.55 | 10.41 | 9.81 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | 0.62 | 0.26 | 0.12 | 1 | (0.06 | )1 | ||||||||||||
Net realized and unrealized gains (losses) | (1.35 | ) | (0.70 | ) | 0.03 | 0.10 | 0.66 | |||||||||||||
Total from investment operations | (1.40 | ) | (0.08 | ) | 0.29 | 0.22 | 0.60 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.00 | )2 | (0.25 | ) | (0.21 | ) | (0.08 | ) | — | |||||||||||
Distributions from net realized gains | — | — | — | — | — | |||||||||||||||
Total distributions | — | (0.25 | ) | (0.21 | ) | (0.08 | ) | — | ||||||||||||
Net asset value at end of period | 8.90 | 10.30 | 10.63 | 10.55 | 10.41 | |||||||||||||||
Total return (%) | (13.59 | ) | (0.82 | ) | 2.81 | 2.08 | 6.12 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses (including dividend expense on short sales) | 3.83 | 3.29 | 3.28 | 3.22 | 3.30 | |||||||||||||||
Net operating expenses (excluding dividend expense on short sales) | 2.04 | 1.97 | 1.99 | 2.06 | 2.06 | |||||||||||||||
Gross operating expenses | 3.83 | 3.30 | 3.28 | 3.22 | 3.37 | |||||||||||||||
Net investment income (loss) | (1.01 | ) | 2.11 | 2.41 | 1.17 | (0.55 | ) | |||||||||||||
Portfolio turnover rate | 244 | 129 | 140 | 122 | 111 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 11,640 | 14,714 | 64,400 | 63,036 | 34,930 |
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/093 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 10.37 | 10.75 | 10.66 | 10.51 | 9.87 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | 0.26 | 0.24 | 0.16 | 1 | (0.03 | )1 | ||||||||||||
Net realized and unrealized gains (losses) | (1.26 | ) | (0.31 | ) | 0.09 | 0.09 | 0.67 | |||||||||||||
Total from investment operations | (1.38 | ) | (0.05 | ) | 0.33 | 0.25 | 0.64 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.03 | ) | (0.33 | ) | (0.24 | ) | (0.10 | ) | — | |||||||||||
Distributions from net realized gains | — | — | — | — | — | |||||||||||||||
Total distributions | (0.03 | ) | (0.33 | ) | (0.24 | ) | (0.10 | ) | — | |||||||||||
Net asset value at end of period | 8.96 | 10.37 | 10.75 | 10.66 | 10.51 | |||||||||||||||
Total return (%) | (13.34 | ) | (0.51 | ) | 3.19 | 2.41 | 6.48 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses (including dividend expense on short sales) | 3.47 | 3.09 | 2.99 | 2.89 | 2.98 | |||||||||||||||
Net operating expenses (excluding dividend expense on short sales) | 1.68 | 1.63 | 1.66 | 1.74 | 1.74 | |||||||||||||||
Gross operating expenses | 3.47 | 3.09 | 2.99 | 2.89 | 3.04 | |||||||||||||||
Net investment income (loss) | (0.49 | ) | 2.14 | 2.70 | 1.51 | (0.28 | ) | |||||||||||||
Portfolio turnover rate | 244 | 129 | 140 | 122 | 111 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 66,963 | 182,817 | 260,596 | 189,254 | 102,974 |
1 Calculated based on the average shares outstanding during the period.
2 Amount is less than $0.005.
3 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
52 See financial notes
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
91 | .8% | Common Stock | 86,412,057 | 72,172,842 | ||||||||
5 | .0% | Short-Term Investment | 3,900,319 | 3,900,319 | ||||||||
96 | .8% | Total Investments | 90,312,376 | 76,073,161 | ||||||||
(73 | .9)% | Short Sales | (73,097,033 | ) | (58,076,614 | ) | ||||||
77 | .1% | Deposits with broker and custodian bank for securities sold short | 60,636,869 | 60,636,869 | ||||||||
0 | .0% | Other Assets and Liabilities, Net | (30,556 | ) | ||||||||
100 | .0% | Net Assets | 78,602,860 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock (a) 91.8% of net assets | ||||||||
Banks 2.3% | ||||||||
U.S. Bancorp | 57,400 | 838,614 | ||||||
Wells Fargo & Co. | 69,900 | 995,376 | ||||||
1,833,990 | ||||||||
Capital Goods 6.5% | ||||||||
Aircastle Ltd. | 17,823 | 82,877 | ||||||
Dover Corp. | 20,200 | 532,876 | ||||||
Esterline Technologies Corp. * | 3,200 | 64,608 | ||||||
Federal Signal Corp. | 6,700 | 35,309 | ||||||
General Dynamics Corp. | 34,600 | 1,439,014 | ||||||
Goodrich Corp. | 11,200 | 424,368 | ||||||
H&E Equipment Services, Inc. * | 2,300 | 15,065 | ||||||
L-3 Communications Holdings, Inc. | 12,800 | 867,840 | ||||||
Rockwell Collins, Inc. | 2,900 | 94,656 | ||||||
RSC Holdings, Inc. * | 5,900 | 31,034 | ||||||
Seaboard Corp. | 200 | 202,000 | ||||||
Textainer Group Holdings Ltd. | 1,300 | 8,775 | ||||||
Triumph Group, Inc. | 1,800 | 68,760 | ||||||
United Technologies Corp. | 21,000 | 902,580 | ||||||
URS Corp. * | 6,400 | 258,624 | ||||||
W.W. Grainger, Inc. | 1,400 | 98,252 | ||||||
5,126,638 | ||||||||
Commercial & Professional Supplies 0.9% | ||||||||
Deluxe Corp. | 7,600 | 73,188 | ||||||
GeoEye, Inc. * | 2,400 | 47,400 | ||||||
Kelly Services, Inc., Class A | 19,274 | 155,156 | ||||||
Kimball International, Inc., Class B | 4,100 | 26,896 | ||||||
Pitney Bowes, Inc. | 15,200 | 354,920 | ||||||
United Stationers, Inc. * | 2,300 | 64,584 | ||||||
722,144 | ||||||||
Consumer Durables & Apparel 0.3% | ||||||||
M.D.C. Holdings, Inc. | 1,300 | 40,482 | ||||||
Mohawk Industries, Inc. * | 5,300 | 158,311 | ||||||
UniFirst Corp. | 2,000 | 55,680 | ||||||
254,473 | ||||||||
Consumer Services 5.1% | ||||||||
Bob Evans Farms, Inc. | 4,300 | 96,406 | ||||||
Brinker International, Inc. | 8,500 | 128,350 | ||||||
CEC Entertainment, Inc. * | 2,900 | 75,052 | ||||||
Cracker Barrel Old Country Store, Inc. | 6,720 | 192,461 | ||||||
Domino’s Pizza, Inc. * | 3,200 | 20,960 | ||||||
H&R Block, Inc. | 30,300 | 551,157 | ||||||
McDonald’s Corp. | 27,000 | 1,473,390 | ||||||
Regis Corp. | 6,100 | 88,145 | ||||||
Sonic Corp. * | 8,300 | 83,166 | ||||||
Speedway Motorsports, Inc. | 1,400 | 16,548 | ||||||
Yum! Brands, Inc. | 46,900 | 1,288,812 | ||||||
4,014,447 | ||||||||
Diversified Financials 3.5% | ||||||||
Bank of America Corp. | 34,400 | 234,608 | ||||||
JPMorgan Chase & Co. | 93,800 | 2,493,204 | ||||||
2,727,812 | ||||||||
Energy 7.4% | ||||||||
Atlas America, Inc. | 4,700 | 41,125 | ||||||
Chevron Corp. | 38,500 | 2,588,740 | ||||||
Diamond Offshore Drilling, Inc. | 7,400 | 465,164 | ||||||
Massey Energy Co. | 8,600 | 87,032 | ||||||
SEACOR Holdings, Inc. * | 2,500 | 145,775 | ||||||
Southwestern Energy Co. * | 27,500 | 816,475 | ||||||
Sunoco, Inc. | 12,100 | 320,408 | ||||||
Swift Energy Co. * | 3,300 | 24,090 | ||||||
Tesoro Corp. | 12,200 | 164,334 | ||||||
Tidewater, Inc. | 30,700 | 1,139,891 | ||||||
5,793,034 | ||||||||
Food & Staples Retailing 2.5% | ||||||||
CVS Caremark Corp. | 68,300 | 1,877,567 | ||||||
The Pantry, Inc. * | 2,700 | 47,547 | ||||||
Winn-Dixie Stores, Inc. * | 7,200 | 68,832 | ||||||
1,993,946 | ||||||||
Food, Beverage & Tobacco 3.0% | ||||||||
Constellation Brands, Inc., Class A * | 42,800 | 509,320 | ||||||
Corn Products International, Inc. | 6,700 | 142,040 | ||||||
Dean Foods Co. * | 15,100 | 273,008 |
See financial notes 53
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Fresh Del Monte Produce, Inc. * | 3,000 | 49,260 | ||||||
H.J. Heinz Co. | 9,000 | 297,540 | ||||||
J & J Snack Foods Corp. | 2,100 | 72,639 | ||||||
Kraft Foods, Inc., Class A | 3,900 | 86,931 | ||||||
Lorillard, Inc. | 1,000 | 61,740 | ||||||
Ralcorp Holdings, Inc. * | 3,400 | 183,192 | ||||||
The J.M. Smucker Co. | 1,500 | 55,905 | ||||||
The Pepsi Bottling Group, Inc. | 14,000 | 309,960 | ||||||
Tyson Foods, Inc., Class A | 30,300 | 284,517 | ||||||
2,326,052 | ||||||||
Health Care Equipment & Services 4.2% | ||||||||
AMERIGROUP Corp. * | 6,200 | 170,748 | ||||||
Baxter International, Inc. | 37,400 | 1,915,628 | ||||||
Health Net, Inc. * | 9,000 | 130,320 | ||||||
Hologic, Inc. * | 29,000 | 379,610 | ||||||
Inverness Medical Innovations, Inc. * | 7,800 | 207,714 | ||||||
Kindred Healthcare, Inc. * | 3,300 | 49,335 | ||||||
Kinetic Concepts, Inc. * | 5,300 | 111,936 | ||||||
Odyssey HealthCare, Inc. * | 4,800 | 46,560 | ||||||
Omnicare, Inc. | 8,200 | 200,818 | ||||||
Orthofix International N.V. * | 2,300 | 42,596 | ||||||
SonoSite, Inc. * | 2,600 | 46,488 | ||||||
Universal American Financial Corp. * | 4,340 | 36,760 | ||||||
3,338,513 | ||||||||
Household & Personal Products 2.2% | ||||||||
American Oriental Bioengineering, Inc. * | 6,700 | 25,862 | ||||||
Church & Dwight Co., Inc. | 1,700 | 88,791 | ||||||
Colgate-Palmolive Co. | 9,600 | 566,208 | ||||||
Kimberly-Clark Corp. | 15,600 | 719,316 | ||||||
Nu Skin Enterprises, Inc., Class A | 5,000 | 52,450 | ||||||
The Estee Lauder Cos., Inc., Class A | 12,200 | 300,730 | ||||||
1,753,357 | ||||||||
Insurance 2.0% | ||||||||
Argo Group International Holdings Ltd. * | 3,100 | 93,403 | ||||||
Aspen Insurance Holdings Ltd. | 8,000 | 179,680 | ||||||
Assurant, Inc. | 4,300 | 93,654 | ||||||
Everest Re Group Ltd. | 7,300 | 516,840 | ||||||
Horace Mann Educators Corp. | 5,500 | 46,035 | ||||||
PartnerRe Ltd. | 5,300 | 328,971 | ||||||
Willis Group Holdings, Ltd. | 16,000 | 352,000 | ||||||
1,610,583 | ||||||||
Materials 1.5% | ||||||||
A. Schulman, Inc. | 3,600 | 48,780 | ||||||
Arch Chemicals, Inc. | 3,300 | 62,568 | ||||||
Glatfelter | 5,700 | 35,568 | ||||||
Innophos Holdings, Inc. | 2,000 | 22,560 | ||||||
International Flavors & Fragrances, Inc. | 7,000 | 213,220 | ||||||
Kronos Worldwide, Inc. | 1,700 | 13,073 | ||||||
NewMarket Corp. | 1,600 | 70,880 | ||||||
Rock-Tenn Co., Class A | 4,022 | 108,795 | ||||||
Rockwood Holdings, Inc. * | 5,800 | 46,052 | ||||||
RPM International, Inc. | 14,700 | 187,131 | ||||||
Schweitzer-Mauduit International, Inc. | 2,200 | 40,612 | ||||||
Sealed Air Corp. | 14,500 | 200,100 | ||||||
The Scotts Miracle-Gro Co., Class A | 1,700 | 58,990 | ||||||
Wausau Paper Corp. | 6,400 | 33,664 | ||||||
1,141,993 | ||||||||
Media 6.3% | ||||||||
Comcast Corp., Class A | 187,300 | 2,554,772 | ||||||
DISH Network Corp., Class A * | 32,163 | 357,331 | ||||||
Harte-Hanks, Inc. | 4,600 | 24,610 | ||||||
Mediacom Communications Corp., Class A * | 5,000 | 20,150 | ||||||
Scholastic Corp. | 2,900 | 43,703 | ||||||
The Interpublic Group of Cos., Inc. * | 48,000 | 197,760 | ||||||
The Walt Disney Co. | 90,200 | 1,638,032 | ||||||
Virgin Media, Inc. | 31,700 | 152,160 | ||||||
4,988,518 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 11.6% | ||||||||
Bristol-Myers Squibb Co. | 123,700 | 2,711,504 | ||||||
Gilead Sciences, Inc. * | 58,300 | 2,700,456 | ||||||
Life Technologies Corp. * | 40,012 | 1,299,590 | ||||||
Martek Biosciences Corp. * | 3,700 | 67,525 | ||||||
Medicis Pharmaceutical Corp., Class A | 7,000 | 86,590 | ||||||
Merck & Co., Inc. | 400 | 10,700 | ||||||
Mylan, Inc. * | 32,400 | 434,484 | ||||||
PDL BioPharma, Inc. | 15,800 | 111,864 | ||||||
PerkinElmer, Inc. | 59,020 | 753,685 | ||||||
Pfizer, Inc. | 53,500 | 728,670 | ||||||
Watson Pharmaceuticals, Inc. * | 5,893 | 183,331 | ||||||
9,088,399 | ||||||||
Retailing 5.1% | ||||||||
AutoNation, Inc. * | 16,000 | 222,080 | ||||||
AutoZone, Inc. * | 4,900 | 796,838 | ||||||
Barnes & Noble, Inc. | 5,100 | 109,038 | ||||||
Big Lots, Inc. * | 10,499 | 218,169 | ||||||
Cabela’s, Inc. * | 5,100 | 46,461 | ||||||
Collective Brands, Inc. * | 8,800 | 85,712 | ||||||
Dollar Tree, Inc. * | 9,300 | 414,315 | ||||||
Expedia, Inc. * | 21,490 | 195,129 | ||||||
Family Dollar Stores, Inc. | 14,400 | 480,528 | ||||||
Fred’s, Inc., Class A | 6,500 | 73,320 | ||||||
Jo-Ann Stores, Inc. * | 18,600 | 303,924 | ||||||
Jos. A. Bank Clothiers, Inc. * | 2,540 | 70,638 | ||||||
Netflix, Inc. * | 5,400 | 231,768 | ||||||
Overstock.com, Inc. * | 2,000 | 18,300 | ||||||
Priceline.com, Inc. * | 3,876 | 305,351 | ||||||
RadioShack Corp. | 18,500 | 158,545 | ||||||
Rent-A-Center, Inc. * | 8,100 | 156,897 | ||||||
Systemax, Inc. * | 1,700 | 21,964 |
54 See financial notes
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
The Children’s Place Retail Stores, Inc. * | 3,400 | 74,426 | ||||||
3,983,403 | ||||||||
Semiconductors & Semiconductor Equipment 2.6% | ||||||||
Actel Corp. * | 3,200 | 32,384 | ||||||
Advanced Micro Devices, Inc. * | 48,700 | 148,535 | ||||||
Applied Micro Circuits Corp. * | 8,300 | 40,338 | ||||||
Cirrus Logic, Inc. * | 7,000 | 26,320 | ||||||
Exar Corp. * | 5,600 | 34,944 | ||||||
Integrated Device Technology, Inc. * | 89,451 | 407,002 | ||||||
Micron Technology, Inc. * | 65,100 | 264,306 | ||||||
Skyworks Solutions, Inc. * | 128,308 | 1,034,163 | ||||||
Zoran Corp. * | 5,300 | 46,640 | ||||||
2,034,632 | ||||||||
Software & Services 10.8% | ||||||||
Accenture Ltd., Class A | 40,100 | 1,102,349 | ||||||
Amdocs Ltd. * | 11,100 | 205,572 | ||||||
BMC Software, Inc. * | 19,500 | 643,500 | ||||||
CA, Inc. | 39,000 | 686,790 | ||||||
CACI International, Inc., Class A * | 400 | 14,596 | ||||||
Cadence Design Systems, Inc. * | 7,200 | 30,240 | ||||||
Computer Sciences Corp. * | 43,281 | 1,594,472 | ||||||
CSG Systems International, Inc. * | 4,100 | 58,548 | ||||||
DST Systems, Inc. * | 4,900 | 169,638 | ||||||
Fair Isaac Corp. | 7,000 | 98,490 | ||||||
GSI Commerce, Inc. * | 3,900 | 51,090 | ||||||
Hewitt Associates, Inc., Class A * | 12,400 | 369,024 | ||||||
IAC/InterActiveCorp. * | 44,450 | 676,973 | ||||||
JDA Software Group, Inc. * | 4,000 | 46,200 | ||||||
Lawson Software, Inc. * | 105,403 | 447,963 | ||||||
MAXIMUS, Inc. | 16,070 | 640,550 | ||||||
Mentor Graphics Corp. * | 58,320 | 258,941 | ||||||
MicroStrategy, Inc., Class A * | 1,100 | 37,609 | ||||||
Novell, Inc. * | 43,900 | 187,014 | ||||||
Parametric Technology Corp. * | 13,900 | 138,722 | ||||||
Progress Software Corp. * | 4,400 | 76,384 | ||||||
Quest Software, Inc. * | 4,000 | 50,720 | ||||||
Solera Holdings, Inc. * | 3,490 | 86,482 | ||||||
SonicWALL, Inc. * | 7,300 | 32,558 | ||||||
SPSS, Inc. * | 1,800 | 51,174 | ||||||
Synopsys, Inc. * | 12,400 | 257,052 | ||||||
TIBCO Software, Inc. * | 23,500 | 137,945 | ||||||
United Online, Inc. | 57,106 | 254,693 | ||||||
Wind River Systems, Inc. * | 11,200 | 71,680 | ||||||
8,476,969 | ||||||||
Technology Hardware & Equipment 6.8% | ||||||||
Adaptec, Inc. * | 13,700 | 32,880 | ||||||
Arris Group, Inc. * | 15,300 | 112,761 | ||||||
Avocent Corp. * | 6,500 | 78,910 | ||||||
Black Box Corp. | 13,172 | 310,991 | ||||||
Coherent, Inc. * | 4,600 | 79,350 | ||||||
Electronics for Imaging, Inc. * | 7,900 | 77,420 | ||||||
Emulex Corp. * | 63,230 | 318,047 | ||||||
Harris Corp. | 14,900 | 431,206 | ||||||
Hewlett-Packard Co. | 13,400 | 429,604 | ||||||
International Business Machines Corp. | 25,100 | 2,431,939 | ||||||
OSI Systems, Inc. * | 1,700 | 25,942 | ||||||
QLogic Corp. * | 12,800 | 142,336 | ||||||
Sun Microsystems, Inc. * | 69,700 | 510,204 | ||||||
SYNNEX Corp. * | 2,440 | 47,995 | ||||||
Tekelec * | 7,560 | 100,018 | ||||||
Tellabs, Inc. * | 41,600 | 190,528 | ||||||
5,320,131 | ||||||||
Telecommunication Services 1.2% | ||||||||
CenturyTel, Inc. | 11,400 | 320,568 | ||||||
Frontier Communications Corp. | 32,900 | 236,222 | ||||||
General Communication, Inc., Class A * | 6,300 | 42,084 | ||||||
Premiere Global Services, Inc. * | 7,400 | 65,268 | ||||||
SBA Communications Corp., Class A * | 3,000 | 69,900 | ||||||
United States Cellular Corp. * | 3,000 | 100,020 | ||||||
USA Mobility, Inc. | 1,000 | 9,210 | ||||||
Verizon Communications, Inc. | 2,300 | 69,460 | ||||||
912,732 | ||||||||
Transportation 0.9% | ||||||||
FedEx Corp. | 6,800 | 302,532 | ||||||
Ryder System, Inc. | 5,700 | 161,367 | ||||||
SkyWest, Inc. | 8,000 | 99,520 | ||||||
TBS International Ltd., Class A * | 800 | 5,880 | ||||||
UTI Worldwide, Inc. | 12,500 | 149,375 | ||||||
718,674 | ||||||||
Utilities 5.1% | ||||||||
Alliant Energy Corp. | 10,780 | 266,158 | ||||||
American Electric Power Co., Inc. | 27,500 | 694,650 | ||||||
American Water Works Co., Inc. | 6,300 | 121,212 | ||||||
CMS Energy Corp. | 28,200 | 333,888 | ||||||
DTE Energy Co. | 13,400 | 371,180 | ||||||
El Paso Electric Co. * | 6,800 | 95,812 | ||||||
MDU Resources Group, Inc. | 5,500 | 88,770 | ||||||
Mirant Corp. * | 17,000 | 193,800 | ||||||
NiSource, Inc. | 28,600 | 280,280 | ||||||
Northeast Utilities | 13,800 | 297,942 | ||||||
NorthWestern Corp. | 10,920 | 234,562 | ||||||
NV Energy, Inc. | 25,910 | 243,295 | ||||||
OGE Energy Corp. | 3,576 | 85,180 | ||||||
Pepco Holdings, Inc. | 17,900 | 223,392 | ||||||
Portland General Electric Co. | 2,700 | 47,493 | ||||||
SCANA Corp. | 4,400 | 135,916 | ||||||
UIL Holdings Corp. | 2,000 | 44,640 | ||||||
Unisource Energy Corp. | 2,800 | 78,932 | ||||||
Westar Energy, Inc. | 10,000 | 175,300 | ||||||
4,012,402 | ||||||||
Total Common Stock (Cost $86,412,057) | 72,172,842 | |||||||
See financial notes 55
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Security | Face Amount | Value | ||||||
Rate, Maturity Date | ($) | ($) | ||||||
Short-Term Investment 5.0% of net assets | ||||||||
Repurchase Agreement 5.0% | ||||||||
Custodial Trust Company, dated 03/31/09, due 04/1/09 at 0.11% with maturity value of 3,900,331 (fully collateralized by U.S. Treasury Notes with a value of 4,006,391). | 3,900,319 | 3,900,319 | ||||||
Total Short-Term Investment (Cost $3,900,319) | 3,900,319 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $90,563,569 and the unrealized appreciation and depreciation were $3,428,013 and ($17,918,421), respectively, with a net unrealized depreciation of ($14,490,408). |
* | Non-income producing security. | |
(a) | All long positions are pledged as collateral for securities sold short. |
56 See financial notes
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Short Sales 73.9% of net assets | ||||||||
Automobiles & Components 0.6% | ||||||||
Autoliv, Inc. | 5,100 | 94,707 | ||||||
BorgWarner, Inc. | 7,400 | 150,220 | ||||||
Cooper Tire & Rubber Co. | 8,100 | 32,724 | ||||||
Gentex Corp. | 11,700 | 116,532 | ||||||
The Goodyear Tire & Rubber Co. * | 15,500 | 97,030 | ||||||
491,213 | ||||||||
Banks 2.3% | ||||||||
Bank of Hawaii Corp. | 1,500 | 49,470 | ||||||
BOK Financial Corp. | 1,900 | 65,645 | ||||||
Capitol Federal Financial | 1,900 | 71,839 | ||||||
Comerica, Inc. | 4,280 | 78,367 | ||||||
Commerce Bancshares, Inc. | 3,400 | 123,420 | ||||||
Cullen/Frost Bankers, Inc. | 3,300 | 154,902 | ||||||
First Horizon National Corp. | 14,637 | 157,206 | ||||||
First Midwest Bancorp, Inc. | 5,300 | 45,527 | ||||||
Hancock Holding Co. | 2,300 | 71,944 | ||||||
Investors Bancorp, Inc. * | 5,200 | 44,044 | ||||||
KeyCorp | 27,000 | 212,490 | ||||||
Marshall & Ilsley Corp. | 16,000 | 90,080 | ||||||
National Penn Bancshares, Inc. | 7,600 | 63,080 | ||||||
Old National Bancorp | 5,200 | 58,084 | ||||||
People’s United Financial, Inc. | 21,700 | 389,949 | ||||||
SVB Financial Group * | 2,800 | 56,028 | ||||||
Wilmington Trust Corp. | 6,200 | 60,078 | ||||||
1,792,153 | ||||||||
Capital Goods 7.2% | ||||||||
3M Co. | 16,000 | 795,520 | ||||||
Actuant Corp., Class A | 4,600 | 47,518 | ||||||
AMETEK, Inc. | 1,600 | 50,032 | ||||||
Badger Meter, Inc. | 1,600 | 46,224 | ||||||
Blount International, Inc. * | 4,950 | 22,869 | ||||||
Bucyrus International, Inc. | 400 | 6,072 | ||||||
Caterpillar, Inc. | 35,800 | 1,000,968 | ||||||
CLARCOR, Inc. | 4,200 | 105,798 | ||||||
Donaldson Co., Inc. | 3,800 | 101,992 | ||||||
Eaton Corp. | 7,900 | 291,194 | ||||||
Franklin Electric Co., Inc. | 2,000 | 44,260 | ||||||
General Cable Corp. * | 4,200 | 83,244 | ||||||
Graco, Inc. | 4,700 | 80,229 | ||||||
HEICO Corp. | 2,300 | 55,890 | ||||||
Hexcel Corp. * | 3,300 | 21,681 | ||||||
Ingersoll-Rand Co., Ltd., Class A | 19,400 | 267,720 | ||||||
Kaydon Corp. | 2,400 | 65,592 | ||||||
L.B. Foster Co., Class A * | 600 | 14,898 | ||||||
Lincoln Electric Holdings, Inc. | 2,800 | 88,732 | ||||||
Nordson Corp. | 2,300 | 65,389 | ||||||
Oshkosh Corp. | 7,100 | 47,854 | ||||||
PACCAR, Inc. | 22,900 | 589,904 | ||||||
Raven Industries, Inc. | 1,900 | 39,482 | ||||||
RBC Bearings, Inc. * | 2,800 | 42,784 | ||||||
Spirit AeroSystems Holdings, Inc., Class A * | 7,300 | 72,781 | ||||||
Sun Hydraulics Corp. | 1,500 | 21,915 | ||||||
Terex Corp. * | 6,500 | 60,125 | ||||||
Textron, Inc. | 14,029 | 80,526 | ||||||
The Boeing Co. | 37,600 | 1,337,808 | ||||||
The Gorman-Rupp Co. | 1,400 | 27,720 | ||||||
USG Corp. * | 6,600 | 50,226 | ||||||
Woodward Governor Co. | 2,200 | 24,596 | ||||||
5,651,543 | ||||||||
Commercial & Professional Supplies 0.5% | ||||||||
Healthcare Services Group, Inc. | 5,000 | 74,850 | ||||||
Herman Miller, Inc. | 4,300 | 45,838 | ||||||
Monster Worldwide, Inc. * | 9,900 | 80,685 | ||||||
Robert Half International, Inc. | 9,800 | 174,734 | ||||||
The Advisory Board Co. * | 2,400 | 39,792 | ||||||
415,899 | ||||||||
Consumer Durables & Apparel 1.6% | ||||||||
Centex Corp. | 7,400 | 55,500 | ||||||
Fortune Brands, Inc. | 7,400 | 181,670 | ||||||
Garmin Ltd. | 7,100 | 150,591 | ||||||
Harman International Industries, Inc. | 4,800 | 64,944 | ||||||
K-Swiss, Inc., Class A | 23,100 | 197,274 | ||||||
Leggett & Platt, Inc. | 8,900 | 115,611 | ||||||
Newell Rubbermaid, Inc. | 14,700 | 93,786 | ||||||
The Black & Decker Corp. | 6,700 | 211,452 | ||||||
Volcom, Inc. * | 2,200 | 21,340 | ||||||
Weyco Group, Inc. | 900 | 23,328 | ||||||
Whirlpool Corp. | 4,400 | 130,196 | ||||||
1,245,692 | ||||||||
Consumer Services 1.5% | ||||||||
Capella Education Co. * | 1,900 | 100,700 | ||||||
K12, Inc. * | 800 | 11,120 | ||||||
Matthews International Corp., Class A | 3,000 | 86,430 | ||||||
Service Corp. International | 22,300 | 77,827 | ||||||
Sotheby’s | 6,300 | 56,700 | ||||||
Starbucks Corp. * | 47,200 | 524,392 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 12,000 | 152,400 | ||||||
Strayer Education, Inc. | 1,100 | 197,857 | ||||||
1,207,426 | ||||||||
Diversified Financials 2.3% | ||||||||
Discover Financial Services | 24,300 | 153,333 | ||||||
Eaton Vance Corp. | 7,000 | 159,950 | ||||||
Financial Federal Corp. | 3,200 | 67,776 | ||||||
GAMCO Investors, Inc., Class A | 1,000 | 32,650 | ||||||
IntercontinentalExchange, Inc. * | 4,500 | 335,115 | ||||||
Janus Capital Group, Inc. | 11,900 | 79,135 | ||||||
LaBranche & Co., Inc. * | 6,500 | 24,310 | ||||||
Legg Mason, Inc. | 7,700 | 122,430 | ||||||
Leucadia National Corp. * | 11,200 | 166,768 | ||||||
MSCI, Inc., Class A * | 4,000 | 67,640 | ||||||
SEI Investments Co. | 8,300 | 101,343 | ||||||
Teton Advisors Inc. (a) | 14 | - | ||||||
T. Rowe Price Group, Inc. | 12,300 | 354,978 | ||||||
Waddell & Reed Financial, Inc., Class A | 6,900 | 124,683 | ||||||
1,790,111 |
See financial notes 57
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Energy 12.2% | ||||||||
Arena Resources, Inc. * | 3,600 | 91,728 | ||||||
Cabot Oil & Gas Corp. | 6,100 | 143,777 | ||||||
Carrizo Oil & Gas, Inc. * | 2,700 | 23,976 | ||||||
Cimarex Energy Co. | 5,600 | 102,928 | ||||||
Comstock Resources, Inc. * | 3,000 | 89,400 | ||||||
ConocoPhillips | 51,200 | 2,004,992 | ||||||
Continental Resources, Inc. * | 4,200 | 89,082 | ||||||
Denbury Resources, Inc. * | 12,100 | 179,806 | ||||||
El Paso Corp. | 30,500 | 190,625 | ||||||
EXCO Resources, Inc. * | 10,951 | 109,510 | ||||||
Frontier Oil Corp. | 8,500 | 108,715 | ||||||
General Maritime Corp. | 4,500 | 31,500 | ||||||
Goodrich Petroleum Corp. * | 2,800 | 54,208 | ||||||
Hess Corp. | 14,000 | 758,800 | ||||||
Murphy Oil Corp. | 2,000 | 89,540 | ||||||
Nabors Industries Ltd. * | 17,800 | 177,822 | ||||||
National-Oilwell Varco, Inc. * | 19,900 | 571,329 | ||||||
Occidental Petroleum Corp. | 34,400 | 1,914,360 | ||||||
Quicksilver Resources, Inc. * | 8,900 | 49,306 | ||||||
Rosetta Resources, Inc. * | 5,500 | 27,225 | ||||||
Schlumberger Ltd. | 34,700 | 1,409,514 | ||||||
Smith International, Inc. | 11,900 | 255,612 | ||||||
Spectra Energy Corp. | 37,300 | 527,422 | ||||||
St. Mary Land & Exploration Co. | 5,000 | 66,150 | ||||||
Unit Corp. * | 3,300 | 69,036 | ||||||
Valero Energy Corp. | 25,000 | 447,500 | ||||||
9,583,863 | ||||||||
Food & Staples Retailing 1.3% | ||||||||
Costco Wholesale Corp. | 21,900 | 1,014,408 | ||||||
Food, Beverage & Tobacco 2.2% | ||||||||
Central European Distribution Corp. * | 4,900 | 52,724 | ||||||
The Coca-Cola Co. | 38,200 | 1,678,890 | ||||||
1,731,614 | ||||||||
Health Care Equipment & Services 2.5% | ||||||||
Align Technology, Inc. * | 6,800 | 53,924 | ||||||
Cyberonics, Inc. * | 3,100 | 41,137 | ||||||
Eclipsys Corp. * | 5,600 | 56,784 | ||||||
Emeritus Corp. * | 2,300 | 15,088 | ||||||
HEALTHSOUTH Corp. * | 6,500 | 57,720 | ||||||
HMS Holdings Corp. * | 6,670 | 219,443 | ||||||
Intuitive Surgical, Inc. * | 2,300 | 219,328 | ||||||
inVentiv Health, Inc. * | 3,700 | 30,192 | ||||||
Meridian Bioscience, Inc. | 3,300 | 59,796 | ||||||
Owens & Minor, Inc. | 3,800 | 125,894 | ||||||
Psychiatric Solutions, Inc. * | 4,000 | 62,920 | ||||||
Stryker Corp. | 9,100 | 309,764 | ||||||
UnitedHealth Group, Inc. | 34,300 | 717,899 | ||||||
1,969,889 | ||||||||
Insurance 0.4% | ||||||||
CNA Financial Corp. | 3,200 | 29,312 | ||||||
Greenlight Capital Re, Ltd., Class A * | 3,000 | 47,910 | ||||||
Lincoln National Corp. | 98 | 656 | ||||||
Mercury General Corp. | 2,000 | 59,400 | ||||||
Odyssey Re Holdings Corp. | 1,500 | 56,895 | ||||||
Stewart Information Services Corp. | 2,000 | 39,000 | ||||||
Torchmark Corp. | 4,000 | 104,920 | ||||||
338,093 | ||||||||
Materials 2.3% | ||||||||
Allegheny Technologies, Inc. | 700 | 15,351 | ||||||
AMCOL International Corp. | 2,800 | 41,552 | ||||||
Celanese Corp., Series A | 8,700 | 116,319 | ||||||
Commercial Metals Co. | 9,500 | 109,725 | ||||||
Crown Holdings, Inc. * | 10,900 | 247,757 | ||||||
Deltic Timber Corp. | 1,200 | 47,292 | ||||||
Eagle Materials, Inc. | 3,300 | 80,025 | ||||||
Greif, Inc., Class A | 2,000 | 66,580 | ||||||
International Paper Co. | 18,600 | 130,944 | ||||||
Kaiser Aluminum Corp. | 2,100 | 48,552 | ||||||
NL Industries, Inc. | 800 | 8,000 | ||||||
Pactiv Corp. * | 400 | 5,836 | ||||||
Reliance Steel & Aluminum Co. | 5,200 | 136,916 | ||||||
Schnitzer Steel Industries, Inc., Class A | 2,000 | 62,780 | ||||||
Southern Copper Corp. | 10,500 | 182,910 | ||||||
Steel Dynamics, Inc. | 8,900 | 78,409 | ||||||
Westlake Chemical Corp. | 2,100 | 30,723 | ||||||
Weyerhaeuser Co. | 13,300 | 366,681 | ||||||
Worthington Industries, Inc. | 5,700 | 49,647 | ||||||
1,825,999 | ||||||||
Media 2.0% | ||||||||
Clear Channel Outdoor Holdings, Inc., Class A * | 12,030 | 44,150 | ||||||
CTC Media, Inc. * | 6,400 | 29,184 | ||||||
Dolan Media Co. * | 3,300 | 25,971 | ||||||
DreamWorks Animation SKG, Inc., Class A * | 6,636 | 143,603 | ||||||
Interactive Data Corp. | 4,400 | 109,384 | ||||||
Lamar Advertising Co., Class A * | 43,013 | 419,377 | ||||||
National CineMedia, Inc. | 5,200 | 68,536 | ||||||
News Corp., Class A | 90,300 | 597,786 | ||||||
Scripps Networks Interactive, Class A | 5,100 | 114,801 | ||||||
Value Line, Inc. | 300 | 8,202 | ||||||
World Wrestling Entertainment, Inc., Class A | 3,400 | 39,236 | ||||||
1,600,230 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 4.2% | ||||||||
Allergan, Inc. | 19,200 | 916,992 | ||||||
Allos Therapeutics, Inc. * | 7,700 | 47,586 | ||||||
Arena Pharmaceuticals, Inc. * | 7,400 | 22,274 | ||||||
Cepheid, Inc. * | 6,900 | 47,610 | ||||||
Eli Lilly & Co. | 51,900 | 1,733,979 | ||||||
Exelixis, Inc. * | 83,970 | 386,262 | ||||||
Luminex Corp. * | 3,500 | 63,420 | ||||||
Pharmasset, Inc. * | 2,100 | 20,601 | ||||||
Questcor Pharmaceuticals, Inc. * | 6,500 | 31,980 | ||||||
3,270,704 | ||||||||
Real Estate 0.4% | ||||||||
Forest City Enterprises, Inc., Class A | 11,780 | 42,408 |
58 See financial notes
Laudus Rosenberg Long/Short Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Forestar Group, Inc. * | 4,200 | 32,130 | ||||||
Tejon Ranch Co. * | 4,980 | 102,937 | ||||||
The St. Joe Co. * | 5,200 | 87,048 | ||||||
264,523 | ||||||||
Retailing 2.9% | ||||||||
bebe stores, Inc. | 5,400 | 36,018 | ||||||
Bed Bath & Beyond, Inc. * | 2,400 | 59,400 | ||||||
Best Buy Co., Inc. | 13,100 | 497,276 | ||||||
J. Crew Group, Inc. * | 4,200 | 55,356 | ||||||
J.C. Penney Co., Inc. | 3,800 | 76,266 | ||||||
Kohl’s Corp. * | 15,500 | 655,960 | ||||||
Target Corp. | 23,400 | 804,726 | ||||||
Urban Outfitters, Inc. * | 6,600 | 108,042 | ||||||
2,293,044 | ||||||||
Semiconductors & Semiconductor Equipment 5.7% | ||||||||
Applied Materials, Inc. | 63,800 | 685,850 | ||||||
FormFactor, Inc. * | 32,400 | 583,848 | ||||||
Intel Corp. | 158,500 | 2,385,425 | ||||||
Lam Research Corp. * | 18,700 | 425,799 | ||||||
NVIDIA Corp. * | 28,900 | 284,954 | ||||||
Varian Semiconductor Equipment Associates, Inc. * | 5,800 | 125,628 | ||||||
4,491,504 | ||||||||
Software & Services 7.3% | ||||||||
Adobe Systems, Inc. * | 9,100 | 194,649 | ||||||
comScore, Inc. * | 2,600 | 31,434 | ||||||
DealerTrack Holdings, Inc. * | 25,000 | 327,500 | ||||||
Electronic Arts, Inc. * | 17,800 | 323,782 | ||||||
Google, Inc., Class A * | 7,570 | 2,634,814 | ||||||
Mercadolibre, Inc. * | 2,800 | 51,940 | ||||||
Salesforce.com, Inc. * | 6,600 | 216,018 | ||||||
Symantec Corp. * | 42,000 | 627,480 | ||||||
Synchronoss Technologies, Inc. * | 2,300 | 28,198 | ||||||
Total System Services, Inc. | 12,100 | 167,101 | ||||||
VASCO Data Security International, Inc. * | 2,800 | 16,156 | ||||||
VeriFone Holdings, Inc. * | 7,200 | 48,960 | ||||||
VMware, Inc., Class A * | 3,500 | 82,670 | ||||||
Vocus, Inc. * | 2,100 | 27,909 | ||||||
Western Union Co. | 35,200 | 442,464 | ||||||
Yahoo! Inc. * | 37,300 | 477,813 | ||||||
5,698,888 | ||||||||
Technology Hardware & Equipment 8.7% | ||||||||
3PAR, Inc. * | 3,300 | 21,681 | ||||||
Apple, Inc. * | 22,700 | 2,386,224 | ||||||
Cisco Systems, Inc. * | 156,600 | 2,626,182 | ||||||
Corning, Inc. | 84,100 | 1,116,007 | ||||||
Dolby Laboratories, Inc., Class A * | 4,300 | 146,673 | ||||||
Echelon Corp. * | 3,500 | 28,315 | ||||||
FLIR Systems, Inc. * | 7,600 | 155,648 | ||||||
QUALCOMM, Inc. | 3,300 | 128,403 | ||||||
SanDisk Corp. * | 17,000 | 215,050 | ||||||
Stec, Inc. * | 3,500 | 25,795 | ||||||
6,849,978 | ||||||||
Transportation 2.2% | ||||||||
Copa Holdings S.A., Class A | 1,200 | 34,404 | ||||||
Heartland Express, Inc. | 4,600 | 68,126 | ||||||
JetBlue Airways Corp. * | 11,600 | 42,340 | ||||||
United Parcel Service, Inc., Class B | 32,500 | 1,599,650 | ||||||
1,744,520 | ||||||||
Utilities 3.6% | ||||||||
Black Hills Corp. | 3,300 | 59,037 | ||||||
Dominion Resources, Inc. | 30,900 | 957,591 | ||||||
Energen Corp. | 2,300 | 66,999 | ||||||
EQT CORP. | 3,700 | 115,921 | ||||||
Exelon Corp. | 20,000 | 907,800 | ||||||
PPL Corp. | 21,500 | 617,265 | ||||||
Reliant Energy, Inc. * | 25,300 | 80,707 | ||||||
2,805,320 | ||||||||
Total Short Sales (Proceeds $73,097,033) | 58,076,614 | |||||||
End of short sale positions. |
* | Non-income producing security. | |
(a) | Fair-valued by Management. |
See financial notes 59
Laudus Rosenberg Long/Short Equity Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $90,312,376) | $76,073,161 | |||||
Deposits with broker and custodian bank for short sales | 60,636,869 | |||||
Receivables: | ||||||
Fund shares sold | 266,767 | |||||
Dividends | 91,296 | |||||
Interest | 36 | |||||
Prepaid expenses | + | 1,925 | ||||
Total assets | 137,070,054 | |||||
Liabilities | ||||||
Securities sold short, at value (proceeds $73,097,033) | $58,076,614 | |||||
Payables: | ||||||
Fund shares redeemed | 193,702 | |||||
Dividends on short sales | 94,375 | |||||
Distribution and shareholder services fees | 17,406 | |||||
Investment adviser fees | 9,439 | |||||
Trustee’s retirement plan | 8,862 | |||||
Accrued expenses | + | 66,796 | ||||
Total liabilities | 58,467,194 | |||||
Net Assets | ||||||
Total assets | 137,070,054 | |||||
Total liabilities | − | 58,467,194 | ||||
Net assets | $78,602,860 | |||||
Net Assets by Source | ||||||
Capital received from investors | 104,918,597 | |||||
Distribution in excess of net investment income | (8,861 | ) | ||||
Net realized capital losses | (27,088,080 | ) | ||||
Net unrealized capital gains | 781,204 |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $11,639,737 | 1,308,329 | $8.90 | |||||||||
Select Shares | $66,963,123 | 7,471,011 | $8.96 |
60 See financial notes
Laudus Rosenberg Long/Short Equity Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends | $2,724,799 | |||||
Interest | + | 1,394,400 | ||||
Total Investment Income | 4,119,199 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (35,697,301 | ) | ||||
Net realized gains on short sales | + | 76,106,352 | ||||
Net realized gains | 40,409,051 | |||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (19,286,980 | ) | ||||
Net unrealized losses on short sales | + | (36,019,996 | ) | |||
Net unrealized losses | (55,306,976 | ) | ||||
Expenses | ||||||
Investment adviser fees | 2,082,217 | |||||
Custodian fees | 52,066 | |||||
Accounting and administration fees | 48,181 | |||||
Professional fees | 47,174 | |||||
Transfer agent fees | 37,819 | |||||
Distribution and shareholder services fees (Investor Shares) | 29,605 | |||||
Shareholder reports | 27,669 | |||||
Registration fees | 21,042 | |||||
Sub-Accounting fees (Investor shares) | 11,991 | |||||
Trustees’ fees | 4,292 | |||||
Recouped by manager | 1,199 | |||||
Dividends on short sales | 2,478,357 | |||||
Other expenses | + | 18,197 | ||||
Net expenses | 4,859,809 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 4,119,199 | |||||
Net expenses | − | 4,859,809 | ||||
Net investment loss | (740,610 | ) | ||||
Net realized gains | 40,409,051 | |||||
Net unrealized losses | + | (55,306,976 | ) | |||
Decrease in net assets from operations | ($15,638,535 | ) |
See financial notes 61
Laudus Rosenberg Long/Short Equity Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income (loss) | ($740,610 | ) | $5,838,795 | |||||||
Net realized gains (losses) | 40,409,051 | (8,613,274 | ) | |||||||
Net unrealized gains (losses) | + | (55,306,976 | ) | 14,263 | ||||||
Decrease in net assets from operations | (15,638,535 | ) | (2,760,216 | ) | ||||||
Distributions to Shareholders1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 228 | 560,827 | ||||||||
Select Shares | + | 272,159 | 6,504,002 | |||||||
Total distributions from net investment income | $272,387 | $7,064,829 |
Transactions in Fund Shares1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 694,539 | $6,621,049 | 1,441,013 | $15,207,733 | ||||||||||||||
Select Shares | + | 834,165 | 8,405,140 | 7,165,760 | 76,300,683 | |||||||||||||
Total shares sold | 1,528,704 | $15,026,189 | 8,606,773 | $91,508,416 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 23 | $215 | 37,333 | $390,128 | ||||||||||||||
Select Shares | + | 28,102 | 267,533 | 555,166 | 5,834,792 | |||||||||||||
Total shares reinvested | 28,125 | $267,748 | 592,499 | $6,224,920 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (815,364 | ) | ($8,094,324 | ) | (6,108,994 | ) | ($64,097,820 | ) | ||||||||||
Select Shares | + | (11,027,753 | ) | (110,217,271 | ) | (14,332,185 | ) | (151,274,145 | ) | |||||||||
Total shares redeemed | (11,843,117 | ) | ($118,311,595 | ) | (20,441,179 | ) | ($215,371,965 | ) | ||||||||||
Net transactions in fund shares | (10,286,288 | ) | ($103,017,658 | ) | (11,241,907 | ) | ($117,638,629 | ) | ||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 19,065,628 | $197,531,440 | 30,307,535 | $324,995,114 | ||||||||||||||
Total decrease | + | (10,286,288 | ) | (118,928,580 | ) | (11,241,907 | ) | (127,463,674 | ) | |||||||||
End of period | 8,779,340 | $78,602,860 | 19,065,628 | $197,531,440 | ||||||||||||||
(Distribution in excess of net investment income)/ | ($8,861 | ) | $257,125 | |||||||||||||||
Net investment income not yet distributed |
1 | Effective on July 31, 2008, the Institutional Shares were redesignated as Select Shares. |
62 See financial notes
Laudus Rosenberg U.S. Equity Funds
Financial Notes
1. Business Structure of the Funds:
Each of the Laudus Rosenberg Funds in this report is a series of the Laudus Trust (the “Trust”), an open-end management investment company. The Trust was organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the Trust including the funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):
Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg U.S. Small Capitalization Fund Laudus Rosenberg Long/Short Equity Fund Laudus Rosenberg International Equity Fund | Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund | |
As of October 15, 2004 the Laudus Rosenberg U.S. Small Capitalization Fund was closed to new investors.
The Institutional Shares class were redesignated as Select Shares effective on July 31, 2008, for all Laudus Rosenberg Funds.
Each Fund is authorized to issue an unlimited number of Investor Shares and Select Shares of no par value, and the Laudus Rosenberg U.S. Small Capitalization Fund is also authorized to issue an unlimited number of Adviser Shares of no par value. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bear different distribution and sub-transfer agent expenses, and separate voting rights on matters pertaining solely to that class of shares.
Each Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each Fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the Funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America.
(a) Security Valuation
The Funds value the securities in their portfolios every business day. The Funds use the following policies to value various types of securities:
• | Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate. | |
• | Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities’ closing market values adjusted for changes in value that may occur between the close of foreign exchange and the time at which Funds’ shares are priced. The Board of Trustees regularly reviews fair value determinations made by the Funds pursuant to the procedures. | |
• | Short-term debt securities (60 days or less to maturity): valued at amortized cost, when it approximates market value. | |
• | Underlying funds: valued at their respective net asset values as determined by those Funds in accordance with the 1940 Act for a given day. |
63
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(b) Portfolio Investments:
Real Estate Investment Trusts: Certain Funds may own shares of real estate investment trusts (“REITs”) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT.
Repurchase Agreements: The Funds may enter into repurchase agreements. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created.
The Funds’ repurchase agreements are fully collateralized by U.S. government securities or U.S. government agency securities. All collateral is held by the Funds’ custodian (or, with tri-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement.
Short Sales: The Laudus Rosenberg Long/Short Equity Fund is authorized to engage in short sales. Short sales are transactions in which a Fund sells a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to deliver to the buyer upon the short sale; the Fund is then obligated to replace the security borrowed by purchasing the security at current market value sometime in the future. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the price of the security declines between those dates. The potential for losses associated with short positions is much greater than the original value of the securities sold short and may exceed the market value of securities sold short recorded in the Statement of Assets and Liabilities. Until the Fund replaces the borrowed security, the Fund will maintain a segregated account at the Custodian Bank with cash, U.S. Government securities and/or securities held long by the portfolio to sufficiently cover its short position on a daily basis. The collateral for the securities sold short includes the Deposits with Broker and Custodian Bank, as shown in the Statement of Assets and Liabilities, and the securities held long as shown in the Statement of Portfolio Holdings. Interest accrued or dividends paid on securities sold short are recorded as an expense on the Fund’s records.
Securities Lending: Under the Securities Lending Program, securities held may be loaned by State Street Corporation, as agent, to certain brokers (the “Borrowers”). The Borrowers provide cash or U.S. government securities as collateral against loans in an amount at least equal to 100% of the market value of the loaned securities.
The cash collateral of securities loaned is invested in high quality, short-term investments such as money market funds and U.S. government securities. The investments of collateral are marked-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day. The Funds do not hold securities on loan as of March 31, 2009.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The Funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuation in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying mutual funds are recorded on the date they are effective (the ex-dividend date), although the Funds record certain foreign security dividends on the day they learn of the ex-dividend date.
64
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(e) Expenses:
Expenses that are specific to a Fund or a class within the trust are charged directly to that Fund or class. Expenses that are common to all Funds within the trust generally are allocated among the Funds in proportion to their average daily net assets.
For Funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to its average daily net assets.
(f) Distributions to Shareholders:
The Funds make distributions from net investment income and net realized capital gains once a year, if any.
(g) Custody Credit
Certain Funds have an arrangement with their custodian bank under which the Fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts (if any) are disclosed in the Statement of Operations as a reduction to the Funds’ operating expenses.
h) Accounting Estimates:
The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.
(i) Federal Income Taxes:
The Funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the Funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as a Fund meets the tax requirements, it is not required to pay federal income tax.
(j) Indemnification:
Under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts with their vendors and others that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.
(k) Accounting Pronouncements:
The Funds adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), Fair Value Measurements, effective April 1, 2008. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.
SFAS No. 157 establishes a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
• | Level 1 — quoted prices in active markets for identical securities | |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
• | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2009:
65
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
Laudus | ||||||||||||||||||||||||
Laudus | Rosenberg U.S. | Laudus | ||||||||||||||||||||||
Rosenberg U.S. | Large Capitalization | Rosenberg U.S. | ||||||||||||||||||||||
Large Capitalization Fund | Value Fund | Discovery Fund | ||||||||||||||||||||||
Other | Other | Other | ||||||||||||||||||||||
Investments | Financial | Investments | Financial | Investments | Financial | |||||||||||||||||||
in Securities | Instruments* | in Securities | Instruments* | in Securities | Instruments* | |||||||||||||||||||
Level 1 | $61,186,663 | $— | $20,285,889 | $— | $378,113,522 | $— | ||||||||||||||||||
Level 2 | — | — | — | — | — | — | ||||||||||||||||||
Level 3 | — | — | — | — | — | — | ||||||||||||||||||
$61,186,663 | $— | $20,285,889 | $— | $378,113,522 | $— | |||||||||||||||||||
Laudus | Laudus | |||||||||||||||||||
Rosenberg U.S. | Rosenberg Long/Short | |||||||||||||||||||
Small Capitalization Fund | Equity Fund | |||||||||||||||||||
Other | Other | |||||||||||||||||||
Investments | Financial | Investments | Securities Sold | Financial | ||||||||||||||||
in Securities | Instruments* | in Securities | Short | Instruments* | ||||||||||||||||
Level 1 | $243,603,379 | $— | $72,172,842 | $(58,076,614 | ) | $— | ||||||||||||||
Level 2 | — | — | 3,900,319 | — | — | |||||||||||||||
Level 3 | — | — | — | — | — | |||||||||||||||
$243,603,379 | $— | $76,073,161 | $(58,076,614 | ) | $— | |||||||||||||||
* | The Funds have no Other Financial Instruments at the end of the period. |
On April 9, 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff position (“FSP”) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 is effective for interim and annual reporting periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 on the Funds’ or Investment Company’s financial statement disclosures.
In March 2008, the FASB issued Statements of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS No. 161”). SFAS No. 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS No. 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact of the adoption of SFAS No. 161 on the Funds’ financial statement disclosures.
3. Risk factors:
Investing in the Funds may involve certain risks including, but not limited to, those described below:
An investment in any of the Funds involves risks similar to those of investing in common stocks directly. Just as with common stocks, the value of Fund shares may increase or decrease depending on market, economic, political, regulatory and other conditions affecting a Fund’s portfolio. These types of risks may be greater with respect to investments in securities of foreign issuers. Investment in shares of the Funds is, like an investment in common stocks, more volatile and risky than some other forms of investment. This risk is significant for all Funds. The Laudus Rosenberg Long/Short Equity Fund is subject to the risk that its long positions may decline in value at the same time that the market value of securities sold short increases, thereby increasing the magnitude of the loss that you may suffer on your investment as compared with more conventional stock mutual funds.
Stocks of large-size companies tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of mid- or small-size companies, for instance — the Fund’s performance also will lag those investments.
66
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
3. Risk factors (continued):
A Fund may also be subject to additional risk because it invests primarily in the stocks of companies with small and mid-sized market capitalizations, which tend to be less liquid and more volatile than stocks of companies with larger market capitalizations. These companies may also have limited product lines, markets or financial resources or may depend on a few key employees. In addition, small and mid cap stocks tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of large-size companies, for instance — the Fund’s performance also will lag those investments.
A Fund may sell a security short by borrowing it from a third party and selling it at the then-current market price. The Fund is then obligated to buy the security on a later date so it can return the security to the lender. Short sales therefore involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which the Fund previously sold the security short. Moreover, because a Fund’s loss on a short sale arises from increases in the value of the security sold short, the extent of such loss, like the price of the security sold short, is theoretically unlimited. By contrast, a Fund’s loss on a long position arises from decreases in the value of the security and therefore is limited by the fact that a security’s value cannot drop below zero.
4. Affiliates and Affiliated Transactions:
The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.
Charles Schwab Investment Management, Inc. (“CSIM” or the “Manager”) is the investment adviser of the Funds and manages the Funds’ business, subject to the supervision of the Board of Trustees. AXA Rosenberg Investment Management LLC (“AXA Rosenberg”), the Funds’ sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM.
For its advisory services to each Fund, the Investment Adviser is entitled to receive an annual fee, payable monthly, based on the Funds’ average daily net assets described as follows.
Laudus | Laudus | Laudus | Laudus | |||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | |||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | |||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | |||||||||||||
Average daily net assets | Fund | Value Fund | Fund | Fund | ||||||||||||
First $1 billion | 0.75% | 0.75% | 0.90% | 0.90% | ||||||||||||
$1 billion to $2 billion | 0.70% | 0.70% | 0.85% | 0.90% | ||||||||||||
Over $2 billion | 0.675% | 0.675% | 0.85% | 0.90% |
Laudus | ||||
Rosenberg | ||||
Long/Short | ||||
Equity | ||||
Fund | ||||
First $500 million | 1.50% | |||
Over $500 million | 1.45% |
CSIM (not the Funds) pays a portion of the management fees it receives to AXA Rosenberg in return for its services.
CSIM has contractually agreed, until at least July 30, 2011, to waive a portion of its management fee and bear certain expenses of each Fund. As such, CSIM further agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring account fees, fees on securities transactions such as exchange fees, dividends and interest on securities sold short, service fees, interest (overdraft charges), taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally
67
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Funds’ business as follows:
Investor Shares | Select Shares | |||||||
Laudus Rosenberg U.S. Large Capitalization Fund* | 1.14% | 0.84% | ||||||
Laudus Rosenberg U.S. Large Capitalization Value Fund* | 1.14% | 0.84% | ||||||
Laudus Rosenberg U.S. Discovery Fund | 1.44% | 1.14% | ||||||
Laudus Rosenberg U.S. Small Capitalization Fund** | 1.44% | 1.14% | ||||||
Laudus Rosenberg Long/Short Equity Fund | 2.04% | 1.74% |
* | Prior to April 15, 2008, the expense limitations were 1.29% and 0.99% for the Investor Shares and Select Shares, respectively. |
** | There is no Expense Limit for Adviser Shares of the Laudus Rosenberg U.S. Small Capitalization Fund. However, effective November 1, 2007 through October 31, 2008 the Manager had agreed to voluntarily waive 0.03% of the Adviser Shares expenses. In addition, effective November 1, 2007 through October 31, 2008 the Manager had agreed to voluntarily waive 0.03% of the Investor Shares expenses. Further, the Manager has voluntarily agreed to continue the 0.03% waiver on Adviser and Investor Shares effective November 1, 2008 through October 31, 2009. |
Effective May 5, 2009, no further fees will be assessed under the Distribution and Shareholder Service Plan or for sub-accounting and sub-transfer agency services on the Investor Shares of the Laudus Rosenberg U.S. Large Capitalization Value Fund, which will make the expense limitation on the Investor Shares 0.84%.
Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Funds’ net expenses to exceed the current limit (as stated in CSIM’s contractual undertaking) during the respective year. As of March 31, 2009, the balance of recoupable expenses is as follows:
Laudus | Laudus | Laudus | Laudus | Laudus | ||||||||||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | Rosenberg | ||||||||||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | Long/Short | ||||||||||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | Equity | ||||||||||||||||||||
Expire | Fund | Value Fund | Fund | Fund | Fund | |||||||||||||||||||
2010 | $— | $125,556 | $— | $— | $— | |||||||||||||||||||
2011 | 126,825 | 126,587 | — | — | — |
The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2009, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.
5. Other Shareholders Services:
Boston Financial Data Services, Inc. (BFDS) provides the transfer agent services to the Funds, and receives transfer agent fees from the Funds as shown in the Statement of Operations.
The Trust has a Distribution and Shareholder Service Plan with respect to its Investor Shares pursuant to Rule 12b-1 under the 1940 Act. The Investor Shares of the Funds are sold on a continuous basis by the Trust’s distributor- ALPS Distributors, Inc. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to pay up to 0.15% of its average daily net assets attributable to Investor Shares for sub-transfer agent and sub-accounting services in connection with such shares.
Various service organizations act as servicing agents of the Adviser Shares of the Laudus Rosenberg U.S. Small Capitalization Fund. Such shares are subject to an annual Service Fee of up to 0.25% of the average daily net assets attributable to such shares in accordance with a Service Plan adopted by the Trust. In addition, the Trustees have authorized the Fund to pay up to 0.05% of its average daily net assets attributable to Adviser Shares for the sub-agent and sub-accounting services in connection with such shares.
68
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
5. Other Shareholders Services (continued):
Effective May 5, 2009, no further fees will be assessed on the Investor Shares for U.S. Large Capitalization Value Fund, for sub-transfer agent and sub-accounting services or under the Distribution and Shareholder Service Plan, which will make the expense limitation for the class 0.84%.
6. Board of Trustees:
Trustees may include people who are officers and/or directors of other fund families affiliated to the investment adviser. Federal securities law limits the percentage of the “interested persons” who may serve on a trust’s board, and the Laudus Funds are in compliance with these limitations. The Funds did not pay any of the interested persons for their services as trustees, but did pay non-interested persons (Independent Trustees), as noted in each Fund’s Statement of Operations.
Until September 2006, a Retirement Plan existed for the Independent Trustees. After the termination of the Retirement Plan, the previously accrued and unpaid benefits continue to be adjusted by performance of the Funds. As a result, the amount of the Retirement Payable to any Independent Trustee may increase or decrease based on the performance of the Funds.
7. Borrowing from Banks:
The custodian has established a loan agreement for a maximum amount of 10% of total assets for the Laudus Rosenberg Long/Short Equity Fund for temporary borrowing purposes. The Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund and Laudus Rosenberg U.S. Small Capitalization Fund have access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing.
There were no borrowings from the line of credit by the Funds during the period. However, the Funds utilized their overdraft facility and incurred interest expense, which is disclosed in the Statement of Operation. The Interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
8. Purchases and Sales of Investment Securities:
For the period ended March 31, 2009, purchases and sales of securities (excluding short-term securities) were as follows:
Purchases | Sales | |||||||
Laudus Rosenberg U.S. Large Capitalization Fund | $122,481,192 | $127,164,046 | ||||||
Laudus Rosenberg U.S. Large Capitalization Value Fund | 27,401,682 | 7,662,990 | ||||||
Laudus Rosenberg U.S. Discovery Fund | 682,050,656 | 752,451,192 | ||||||
Laudus Rosenberg U.S. Small Capitalization Fund | 500,815,910 | 646,941,036 | ||||||
Laudus Rosenberg Long/ Short Equity Fund | 324,515,381 | 387,640,290 |
9. Redemption Fee:
The Funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior period are:
Current Period | Prior Period | |||||||
(4/1/08-3/31/09) | (4/1/07-3/31/08) | |||||||
Laudus Rosenberg U.S. Large Capitalization Fund | $7,309 | $22,951 | ||||||
Laudus Rosenberg U.S. Large Capitalization Value Fund | 34 | 378 | ||||||
Laudus Rosenberg U.S. Discovery Fund | 18,351 | 10,158 | ||||||
Laudus Rosenberg U.S. Small Capitalization Fund | 5,665 | 16,091 | ||||||
Laudus Rosenberg Long/Short Equity Fund | 4,716 | 26,432 |
69
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
10. Other:
As of the close of business on September 18, 2008, Lehman Brothers Holdings Inc. was in default of the security lending agreement with the Laudus Rosenberg U.S. Discovery Fund and the U.S. Small Capitalization Fund (“the Funds”). As a result the Funds took possession of the collateral and repurchased the securities on loan through open market purchases. The collateral held exceeded the replacement value of the securities. In accordance with Accounting for Transfers of Financial Assets and Repurchase Financing Transactions (“FAS 140”) the Funds recognized the following gains or losses that are not recognized for federal income tax purposes:
Laudus Rosenberg U.S. Discovery Fund | ($69,235 | ) | ||||||
Laudus Rosenberg U.S. Small Capitalization Fund | 102,846 |
11. Federal Income Taxes:
As of March 31, 2009, the components of distributable earnings on a tax-basis were as follows:
Laudus | Laudus | Laudus | Laudus | Laudus | ||||||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | Rosenberg | ||||||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | Long/Short | ||||||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | Equity | ||||||||||||||||
Fund | Value Fund | Fund | Fund | Fund | ||||||||||||||||
Undistributed ordinary income | $329,081 | $137,189 | $1,066,283 | $— | $— | |||||||||||||||
Undistributed long-term capital gains | — | — | 60,412 | — | — | |||||||||||||||
Unrealized appreciation | 2,609,335 | 302,934 | 13,906,401 | 8,898,728 | 3,428,013 | |||||||||||||||
Unrealized depreciation on investments | (9,905,276 | ) | (3,911,213 | ) | (128,105,547 | ) | (90,987,769 | ) | (17,918,421 | ) | ||||||||||
Other unrealized appreciation/ (depreciation) | — | — | — | — | 14,824,469 | |||||||||||||||
Net unrealized appreciation/ (depreciation) | ($7,295,941 | ) | ($3,608,279 | ) | ($114,199,146 | ) | ($82,089,041 | ) | $334,061 |
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.
Capital loss carry forwards may be used to offset future realized capital gains for federal income tax purposes. As of March 31, 2009, the Laudus Rosenberg Long/Short Equity Fund was the only fund with capital loss carry forward available to offset net capital gains before the expiration dates:
Laudus | Laudus | Laudus | ||||||||||
Rosenberg | Rosenberg | Rosenberg | ||||||||||
U.S. Large | U.S. | Long/Short | ||||||||||
Capitalization | Capitalization | Equity | ||||||||||
Expire | Fund* | Value Fund | Fund | |||||||||
2016 | $3,763,669 | $— | $18,276,171 | |||||||||
2017 | 11,493,144 | 341,905 | — | |||||||||
Total | $15,256,813 | $341,905 | $18,276,171 | |||||||||
* | As of March 15, 2009, Laudus Rosenberg U.S. Large Capitalization Fund has capital loss carryforwards of $3,763,669 subject to certain limitations on availability, to offset future capital gains, if any, as the successor of a merger. |
For tax purposes, realized net capital losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2009, the Funds had aggregate deferred realized net capital losses and capital losses utilized as follows:
70
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
11. Federal Income Taxes (continued):
Laudus | Laudus | Laudus | Laudus | Laudus | ||||||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | Rosenberg | ||||||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | Long/Short | ||||||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | Equity | ||||||||||||||||
Fund | Value Fund | Fund | Fund | Fund | ||||||||||||||||
Capital Losses Deferred | $21,463,820 | $2,097,487 | $154,288,681 | $120,558,161 | $8,364,765 | |||||||||||||||
Capital Losses Utilized | — | — | — | — | 47,771,914 |
The tax-basis components of distribution paid during the current and prior periods were:
Laudus | Laudus | Laudus | Laudus | Laudus | ||||||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | Rosenberg | ||||||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | Long/Short | ||||||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | Equity | ||||||||||||||||
Fund | Value Fund | Fund | Fund | Fund | ||||||||||||||||
Current Period Distributions | ||||||||||||||||||||
Ordinary Income | $1,149,648 | $189,971 | $2,338,958 | $2,209,926 | $272,387 | |||||||||||||||
Long-Term Capital Gains | — | — | 2,792,770 | 31,792,778 | — | |||||||||||||||
Return of Capital | — | — | — | — | — | |||||||||||||||
Prior Period Distributions | ||||||||||||||||||||
Ordinary Income | $5,920,126 | $205,381 | $— | $57,252 | $7,064,829 | |||||||||||||||
Long-Term Capital Gains | 9,791,836 | 658,199 | 65,060,079 | 131,236,762 | — | |||||||||||||||
Return of Capital | — | — | — | — | — |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The permanent book and tax basis differences may result in reclassifications between capital accounts and other accounts as required. The adjustments will have no impact on net assets or the results of operations. As of March 31, 2009, the Funds made the following reclassifications:
Laudus | Laudus | Laudus | Laudus | Laudus | ||||||||||||||||
Rosenberg | Rosenberg | Rosenberg | Rosenberg | Rosenberg | ||||||||||||||||
U.S. Large | U.S. Large | U.S. | U.S. Small | Long/Short | ||||||||||||||||
Capitalization | Capitalization | Discovery | Capitalization | Equity | ||||||||||||||||
Fund | Value Fund | Fund | Fund | Fund | ||||||||||||||||
Capital Shares | $3,927,015* | $— | ($13,239 | ) | ($121,546 | ) | ($638,105 | ) | ||||||||||||
Undistributed Net Investment Income | (710 | ) | (360 | ) | 17,206 | 134,180 | 747,011 | |||||||||||||
Net Realized Capital Gains/Losses | (3,926,305)* | 360 | (3,967 | ) | (12,634 | ) | (108,906 | ) |
* | Mainly associated with the fund merger. |
As of March 31, 2009, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and state purposes, four years from the date of filing), as applicable to the Funds, and has determined that no provision for income tax is required in the Funds’ financial statement. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2009, the Funds did not incur any interest or penalties.
71
Laudus Rosenberg U.S. Equity Funds
Financial Notes (continued)
11. Federal Income Taxes (continued):
12. Reorganization:
Under a plan of reorganization adopted by the Trust, all of the assets and liabilities of the Laudus Rosenberg U.S. Large Capitalization Growth Fund were transferred to the Laudus Rosenberg U.S. Large Capitalization Fund. The reorganization, which qualified as a tax-free exchange for federal income tax purposes, was completed at the close of business on March 26, 2009. The following is a summary of shares outstanding, net assets, net asset value per share issued and unrealized appreciation/depreciation immediately before and after the reorganization.
Before Reorganization | After Reorganization | |||||||||||
Laudus | Laudus | Laudus | ||||||||||
Rosenberg | Rosenberg | Rosenberg | ||||||||||
U.S. Large | U.S. Large | U.S. Large | ||||||||||
Capitalization | Capitalization | Capitalization | ||||||||||
Fund | Growth Fund | Fund | ||||||||||
Shares: | ||||||||||||
Investor Shares | 827,548 | 454,136 | 1,239,793 | |||||||||
Select Shares | 8,356,025 | 1,187,893 | 9,431,613 | |||||||||
Net Assets: | ||||||||||||
Investor Shares | $5,446,618 | $2,713,243 | $8,159,861 | |||||||||
Select Shares | $54,841,889 | $7,059,329 | $61,901,218 | |||||||||
Net Asset Value: | ||||||||||||
Investor Shares | $6.58 | $5.97 | $6.58 | |||||||||
Select Shares | $6.56 | $5.94 | $6.56 | |||||||||
Net unrealized appreciation/ (depreciation) | ||||||||||||
($5,914,905 | ) | $105,616 | ($5,809,289 | ) |
72
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Laudus Rosenberg U.S. Large Capitalization Fund
Laudus Rosenberg U.S. Large Capitalization Value Fund
Laudus Rosenberg U.S. Discovery Fund
Laudus Rosenberg U.S. Small Capitalization Fund
Laudus Rosenberg Long/Short Equity Fund
Laudus Rosenberg U.S. Large Capitalization Fund
Laudus Rosenberg U.S. Large Capitalization Value Fund
Laudus Rosenberg U.S. Discovery Fund
Laudus Rosenberg U.S. Small Capitalization Fund
Laudus Rosenberg Long/Short Equity Fund
In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund and Laudus Rosenberg Long/Short Equity Fund (five of the portfolios constituting Laudus Trust, hereafter referred to as the “Funds”) at March 31, 2009, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
May 15, 2009
San Francisco, California
May 15, 2009
73
Other Federal Tax Information (unaudited)
For corporate shareholders, the following percentage of the Funds dividends distributions paid during the fiscal year ended March 31, 2009, qualify for the corporate dividends received deduction:
Dividends | ||||
Received Deduction | ||||
Laudus Rosenberg U.S. Large Capitalization Fund | 90% | |||
Laudus Rosenberg U.S. Large Capitalization Value Fund | 100% | |||
Laudus Rosenberg U.S. Discovery Fund | 100% | |||
Laudus Rosenberg U.S. Small Capitalization Fund | 100% | |||
Laudus Rosenberg Long/Short Equity Fund | 31% |
For the fiscal year ended March 31, 2009, the funds designate the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2010 via IRS form 1099 of the amounts for use in preparing their 2009 income tax return.
Qualified | ||||
Dividend Income | ||||
Laudus Rosenberg U.S. Large Capitalization Fund | $1,039,400 | |||
Laudus Rosenberg U.S. Large Capitalization Value Fund | 189,971 | |||
Laudus Rosenberg U.S. Discovery Fund | 2,338,958 | |||
Laudus Rosenberg U.S. Small Capitalization Fund | 2,217,528 | |||
Laudus Rosenberg Long/Short Equity Fund | 99,852 |
For the fiscal year ended March 31, 2009, the Funds hereby designate the following amounts as capital gain dividends:
Laudus Rosenberg U.S. Large Capitalization Fund | $— | |||
Laudus Rosenberg U.S. Large Capitalization Value Fund | — | |||
Laudus Rosenberg U.S. Discovery Fund | 2,792,770 | |||
Laudus Rosenberg U.S. Small Capitalization Fund | 31,792,778 | |||
Laudus Rosenberg Long/Short Equity Fund | — |
74
Trustees and Officers
The tables below provide information about the trustees and officers for the Laudus Trust, which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust, and Laudus Institutional Trust. As of March 31, 2009, the Fund Complex included 83 funds.
At a meeting of the Board held on September 28-29, 2006, the Trustees voted to adopt a retirement policy for all independent trustees that requires an independent trustee to retire no later than December 31st of the year in which he or she reaches age seventy-two.
The address for all trustees and officers is 101 Montgomery Street, San Francisco, CA 94104. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-866-452-8387.
Independent Trustees | ||||||||
Principal | Number of | |||||||
and Year of Birth; | Occupation(s) | Portfolios in | ||||||
(Term of Office, and | During the | Fund Complex | ||||||
Length of Time Served2) | Past Five Years | Overseen | Other Directorships Held by Trustee | |||||
Mariann Byerwalter3 1960 (1/04-present) | Chairman of JDN Corporate Advisory LLC. | 83 | Board 1–Director, Redwood Trust, Inc. (mortgage finance). Board 2–Director, PMI Group, Inc. (mortgage insurance). | |||||
William A. Hasler3 1941 (1/04-present) | Retired. Dean Emeritus of the Haas School of Business at the University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals). | 83 | Board 1–Director, Mission West Properties (commercial real estate). Board 2–Director, TOUSA (home building). Board 3–Director, Harris-Stratex Networks (a network equipment corporation). Board 4–Director, Genitope Corp. (bio-pharmaceuticals). Board 5 –Director, Ditech Networks (voice communication technology). Board 6–Rubicon Limited (manufacturing). | |||||
Nils H. Hakansson3 1937 (3/90-present) | Sylvan C. Coleman Professor of Finance and Accounting, Emeritus, Haas School of Business, University of California, Berkeley (since 2003). Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (July 1969 to January 2003). | 14 | None | |||||
75
Interested Trustees | ||||||||
Number of | ||||||||
Principal | Portfolios in | |||||||
and Year of Birth; | Occupation(s) | Fund Complex | ||||||
(Term of Office, and | During the | Overseen by | ||||||
Length of Time Served2) | Past Five Years | the Trustee | Other Directorships Held by Trustee | |||||
Randall W. Merk 1954 Trustee (6/06-present) | Executive Vice President and President, Investment Management Services, Charles Schwab & Co. Inc.; Executive Vice President, Charles Schwab & Co. Inc.(2002-present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc. | 14 | None | |||||
Officers | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Jeffrey Mortimer 1963 (3/08-present, President and CEO) (6/04-present, CIO) | President, Chief Executive Officer, and Chief Investment Officer | Senior Vice President and Chief Investment Officer-Equities, Charles Schwab Investment Management, Inc., and Schwab Funds. Prior to May 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc. | ||
George Pereira 1964 (6/06-present) | Treasurer and Chief Financial Officer | Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Treasurer and Principal Financial Officer, Schwab Funds; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Ltd. Through June 2007, Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc., and Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Trust Inc.; From 12/99 to 11/04: Senior Vice President, Financial Reporting, Charles Schwab & Co., Inc. | ||
Catherine MacGregor 1964 (12/05-present) | Chief Legal Officer, Vice President and Clerk | Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.; Vice President, Schwab Funds; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP. | ||
Bari Havlik 1961 (3/09-present) | Chief Compliance Officer | Senior Vice President, Chief Compliance Officer for Charles Schwab & Co. Inc. and head of Global Compliance for the Charles Schwab Corporation since 2004. Chief Compliance Officer for Charles Schwab Investment Management, Inc since March 2009. | ||
Daniel Kern 1961 (3/05-present) | Vice President | Vice President, Investment Management Services. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation. | ||
76
Officers continued | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Michael Haydel 1972 (6/05-present) | Vice President | Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. Until March 2004, Director Charles Schwab & Co., Inc. | ||
1 | The mailing address of each of the Trustees is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
2 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. |
3 | Member of the Audit Committee. |
4 | The mailing address of each of the Officers is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
5 | There is no stated term of office for the officers of the Trust. |
77
Glossary
90 Day T-bill is a short-term discounted, government debt instrument of 90 days or less, issued in $10,000 denominations that pay its face value at maturity. The government issues Treasury bills weekly.
Alpha is a measure of a fund’s risk adjusted return. Alpha can be used to directly measure the value added or subtracted by a fund’s manager. It is calculated by measuring the difference between a fund’s actual returns and its expected performance given its level of market risk as measured by beta.
Beta is a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower historical risk than the market; a beta of more than one indicates higher historical risk than the market.
GDP, or Gross Domestic Product, is the market value of the goods and services produced by labor and property in the United States.
Modified Duration expresses the measurable change in the value of a security in response to a change in interest rates. The formula calculates the effect that a 1% change in interest rates will have on the price of a bond.
The MSCI EAFE Index® (Net) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. This series approximates the minimum possible dividend reinvestment.
The S&P Global ex US Broad Market Index (BMI) $2-$10 Billion Cap Range is an absolute size benchmark that divides the investable region into capitalization bands of between $2 billion and $10 billion. It is a subset of the Broad Market Index (BMI), which includes companies in approximately 52 developed and emerging markets with more than $100 million of free float capitalization.
The S&P Developed ex US SmallCap Index is a float-adjusted index which measures the performance of small companies (approximately the bottom 15% by market capitalization) in 25 developed equity markets.
The Standard & Poor’s 500® (S&P 500) Index is an unmanaged index measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries.
The Russell 1000® Index measures the performance of the 1000 largest companies in the Russell 3000® Index, and represents approximately 92% of the total market capitalization of the Russell 3000® Index.
The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios.
The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, and represents approximately 16% of the total market capitalization of the Russell 3000® Index.
The Russell 2500tm Index measures the performance of the 2,500 smallest companies in the Russell 3000® Index, and represents approximately 16% of the total market capitalization of the Russell 3000® Index.
The Russell 3000® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.
The Russell 3000® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.
Price to earnings ratio is the price of a stock divided by its historical earnings per share.
Price to book ratio compares the stock’s market value to the value of the total assets less the total liabilities.
Price to cash flow ratio is the price of a stock divided by its reported cash flow per share.
Relative strength is the rate that a stock falls relative to other stocks in a falling market or rises relative to other stocks in a rising market.
Return on equity represents the amount earned on a company’s common stock investment for a given period, calculated by dividing common stock equity into net income for the period after preferred stock dividends but before common stock dividends.
Trading Activity is one of several risk factors commonly used to attribute a portfolio’s return relative to its benchmark. Specifically, trading activity measures a stock’s trailing 12 month trading volume relative to its total shares outstanding. It measures how actively traded a stock has been in the last 12 months.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov.
Quarterly Disclosure of Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The information filed on a fund’s most recent Form N-Q is also available at www.laudus.com.
78
Notes
Notes
Notes
For More Information about the Funds:
Investment Adviser
Charles Schwab Investment Management, Inc.
101 Montgomery Street, San Francisco, CA 94104
Shareholder Services
1.866.452.8387 Investment Professionals
1.800.447.3332 Individual Investors
www.laudus.com
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
MFR34765-06 |
Annual Report March 31, 2009 |
COMMAND PERFORMANCETM
Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Equity Fund
Laudus Rosenberg International Discovery Fund
Laudus Rosenberg International Small Capitalization Fund (Closed to investors)
Adviser
Charles Schwab Investment Management, Inc.
Subadviser
AXA Rosenberg Investment Management LLC
In This Report | ||
2 | ||
3 | ||
4 | ||
6 | ||
8 | ||
10 | ||
12 | ||
13 | ||
55 | ||
63 | ||
65 | ||
68 |
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: ALPS Distributors, Inc.
Distributor: ALPS Distributors, Inc.
The industry/sector classification of the funds’ portfolio holdings uses the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by CSIM and certain affiliates. Charles Schwab & Co, Inc. and ALPS Distributors, Inc. are unaffiliated entities.
Performance at a Glance
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.laudus.com.
Total Return for the Report Period | ||
Laudus Rosenberg International Equity Fund | ||
Investor Shares (Ticker Symbol: RIEIX) | -50.04% | |
Select Shares (Ticker Symbol: REQIX) | -49.91% | |
Benchmark: MSCI EAFE Index | -46.20% | |
Performance Details | pages 6-7 | |
Laudus Rosenberg International Discovery Fund | ||
Investor Shares (Ticker Symbol: LIDIX) | -46.33% | |
Select Shares (Ticker Symbol: LIDSX)1 | -46.25% | |
Benchmark: S&P Global ex-U.S. BMI $2-10 Billion Cap Range | -47.13% | |
Performance Details | pages 8-9 | |
Laudus Rosenberg International Small Capitalization Fund | ||
Investor Shares (Ticker Symbol: RISIX) | -52.40% | |
Select Shares (Ticker Symbol: ICSIX) | -52.20% | |
Benchmark: S&P Developed ex-U.S. SmallCap Index | -49.75% | |
Performance Details | pages 10-11 | |
All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Redemption fees charged on shares sold or exchanged 30 days or less after purchasing them may affect share level returns.
Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. Investing in emerging markets accentuates these risks. Investments in emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries.
Small-company stocks are subject to greater volatility than other asset categories. Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.
Please see prospectus for further detail and investor eligibility requirements.
1 | Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the financial highlights section of the report is calculated in the same manner, but also taking into account certain adjustments that are necessary under generally accepted accounting principles which are required when preparing the annual report. |
2 Laudus Rosenberg International Equity Funds
From the President
Jeffrey Mortimer is President, CEO, and CIO of Laudus Funds and SVP of Charles Schwab Investment Management, Inc. He joined the firm in 1997 and has held a variety of executive positions at Schwab.
Dear Shareholder,
In the past year, financial markets were besieged with volatility and turmoil, while many economies across the globe experienced slower growth or recession, making investment conditions some of the most difficult in history. Although returns were relatively better in March, the fiscal year was characterized by two particularly bearish periods – the end of 2008 and the beginning of 2009. In this environment, major equity indices experienced significant declines. The Russell 1000 Index, for example, was down 38% for the reporting period, while the Russell 1000 Value Index declined 42%. On average, returns were down in all major sectors. The fixed income space, usually a bright spot in down markets, was not immune to the current market malady, with the Citigroup Non-U.S. Dollar World Government Bond Index down around 6%.
Within the Laudus Rosenberg Fund Family, returns in the funds followed the general downdraft on equity and fixed income prices. In both the U.S. and International fund groups, returns were down between 40-50% on average, indicating that various un-hedged investment strategies were similarly affected by overall market declines. In general, modest outperformance and underperformance relative to funds’ respective benchmarks was primarily attributable to stock selection. For more detail, please see the portfolio manager’s commentary in the following pages.
The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg Investment Management, LLC, one of the world’s premier equity specialists and institutional money managers. Through the Laudus Rosenberg Funds offering, this distinctive approach to investment management is easily accessible to independent advisors and individual investors.
During the reporting period, the Board approved changes to the Laudus Rosenberg subadvisory contracts between AXA Rosenberg and CSIM effective April 1, 2009. These changes simplify the subadvisory contracts but do not have any impact on the overall advisory fees paid by the Laudus Rosenberg Funds. Additional information is available in the Funds’ Statement of Additional Information.
In closing, I would remind you that should you have any questions about the funds we are available to answer them at 1-800-447-3332.
Thank you for investing with us.
Sincerely,
Laudus Rosenberg International Equity Funds 3
The Investment Environment
The past twelve months produced significant negative returns and high volatility in global capital markets, and nearly all major equity indexes lost more than 40%. Generally, U.S. equity markets fared slightly better than international ones, while fixed income outperformed both. Commodity indexes also lost value. Globally, losses were highly synchronized, exhibiting a pattern typical during periods of global economic weakness.
In the U.S., large-cap stocks lost about 38% for the period, but with a wide spread between growth- and value-style equities, as growth outperformed value by about 8%. U.S. small-caps slightly outperformed U.S. large-caps, losing just under 38%. U.S. small-cap growth stocks outperformed value, but still lost more than 36%. Internationally, the results were worse. International large-cap stocks lost nearly 47%, but outperformed international small-cap stocks, which were down more than 48%. As occurred in the U.S., international growth stocks outperformed their value counterparts, but the difference was less, with growth leading by around 3%.
What caused these weak returns, especially during a relatively short period of time of twelve months? In essence, the credit crisis that began in the summer of 2007 dominated the capital markets during the period. In September 2008, Lehman Brothers declared bankruptcy, while the U.S. government intervened in the operations of Freddie Mac, Fannie Mae and AIG. Several banks also failed, especially during the second half of the reporting period. Companies in all areas but especially in the financial services sector deleveraged their balance sheets. Over the past several years, individuals and companies borrowed significant amounts of capital. Individuals typically used the loans to purchase homes and autos. In turn, many financial companies leveraged their balance sheets to buy these loans and build and sell marketable securities composed of them, such as mortgage-backed securities. On the open market, these securities could be bought by institutional investors and hedge funds, for example. As credit tightened, many of the loans – both consumer and corporate – went into default, requiring firms to acquire capital to shore up their balance sheets or to sell assets to reduce their debt.
Investors and lenders were worried about the value of the debt on company balance sheets. In some cases, there were no bidders for the corporate obligations and securitized assets that were being offered for sale. Without bids, it became difficult to value these securities, and as default rates rose prices became even more depressed. Eventually, the solvency of corporations with large portfolios of leveraged debt was questioned. In this environment, investors took defensive action by reducing their corporate equity exposure. Thus, the equity markets declined precipitously as investors migrated to the safety of government debt.
A few areas performed well. One notable area was the U.S. Treasury market, generally considered the lowest default risk fixed income investment. Short-term Treasury bills gained about 1% during the period, and Treasury bonds maturing in the next ten to twenty years returned about 12%. More diversified fixed income investments also generated positive returns, typically around 3%, as investors flocked to defensive investments.
From a global sector perspective, financial stocks were down nearly 60% on average, primarily due to impacts following the credit crunch. Materials, down more than 50%, and Energy stocks, off about 40%, did poorly due to the deleveraging process described above and due to investors’ movements out of equity positions. Industrials and Consumer Discretionary stocks also lost between 40-50%, on average. On a relative basis,
4 Laudus Rosenberg International Equity Funds
The Investment Environment continued
global Health Care and Consumer Staples firms performed better, down around 22% and 30%, respectively; these sectors are generally considered to be defensive investments in times of economic or market stress.
Among major developed economies, Japan performed the best during the period, losing about 36% in U.S. dollar terms. The U.S. did slightly worse, down nearly 38%. Most European countries lost more than 45%. It is important to note that through most of the reporting period, the U.S. dollar rallied against the British pound and the Euro, pushing the European returns lower for U.S. dollar-based investors. Emerging markets as a group performed in line with developed markets, losing about 47% in the twelve-month period. A few emerging markets such as Russia lost nearly 70%, but a surprising number such as China did relatively well, losing about 35%.
The dollar’s gains also impacted commodity prices, and most commodity indexes were down more than 50% for the twelve-month period. Crude oil lost 67% for the period, in contrast to the rise in prices over the last few years. Metals and agricultural prices also declined, partially in response to expectations of slowing economies around the globe and thus a likelihood of lower demand. Gold was one relative bright spot among commodity returns, losing about 1% for the period.
Nothing in this report represents a recommendation of a security by the investment adviser.
Manager views and portfolio holdings may have changed since the report date.
Laudus Rosenberg International Equity Funds 5
Laudus Rosenberg International Equity Fund
The Laudus Rosenberg International Equity Fund Investor Shares returned -50.04% for the fiscal year ending March 31, 2009, underperforming the benchmark MSCI EAFE Index, which returned -46.20%. Persistent volatility, investor risk aversion, and a global economic recession weighed heavily on international equity prices during the reporting period. On a relative basis, underperformance versus the benchmark was principally attributable to stock selection in Europe.
Returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. On a sector specific level, Materials, Industrials, and Financials declined the most. Prices in the Material and Industrial sectors declined primarily as investors priced in slower global growth and decreased demand amidst economic recession. Corporations within the Financial sector, particularly banks, ailed as credit constraints and corporate restructuring continued to adversely impact markets and stock prices. Better performing sectors were Utilities, Telecomm Services, and Health Care. Relative to the benchmark, stock selection in and an overweight to Materials, along with stock selection in Industrials led the detractors. Within Materials, an overweight to Xstrata detracted the most among individual holdings. However, in the Telecomm Services sector, an overweight to France Telecomm helped to partially offset.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Companies with negative P/E ratios experienced the most significant decline. Over 90% of the fund is allocated to companies with mid to low P/E ratios. Relative to the benchmark, stock selection in companies with low P/E ratios detracted from returns.
When looking at market capitalization, returns were again negative across the board. In general, returns in the $25-50 billion range and the $150 billion and above range were most negative. Relative to the benchmark, stock selection in companies with market caps of $50 billion and below primarily accounted for underperformance.
In terms of price-to-book (P/B) ratios, returns were down across the spectrum. Relative to the benchmark, stock selection in companies with low P/B ratios accounted for most of the underperformance.
As of 3/31/09:
Fund Characteristics
Number of Securities | 351 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $29,588 |
Portfolio Turnover
(One year trailing) | 125% |
Price to Earnings (P/E) | 3.27 |
Price/Book Ratio (P/B) | 0.99 |
Price to Cash Flow | 8.83 |
Beta | 0.85 |
Return on Equity | 9.82% |
Five-Year Earnings Growth | 6% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 12/5/2000 | 6/7/2000 | ||
Total Net Assets ($ x 1,000) | $7,820 | $32,044 | ||
Ticker Symbol | RIEIX | REQIX | ||
Cusip | 51855Q812 | 51855Q507 | ||
NAV | $5.51 | $5.49 |
Manager views and portfolio holdings may have changed since the report date.
6 Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Equity Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | Since Inception | |||||||||
Investor (12/5/00) | -50.04% | -4.92% | -2.93% | |||||||||
Select (6/7/00) | -49.91% | -4.60% | -3.66% | |||||||||
Benchmark: MSCI EAFE Index®* | -46.20% | -1.75% | (12/5/00) -1.40% | |||||||||
(6/7/00) -2.76% |
Fund Expense Ratios2: Investor Shares: Net 1.40%; Gross 1.69% / Select Shares: Net 1.12%; Gross 1.23%
Country Weightings % of Investments3
Japan | 23.9% |
United Kingdom | 19.8% |
France | 9.7% |
Germany | 7.2% |
Australia | 6.7% |
Switzerland | 6.2% |
Italy | 4.3% |
Spain | 4.0% |
Sweden | 3.3% |
Netherlands | 2.9% |
Hong Kong | 2.4% |
Belgium | 2.0% |
Norway | 1.7% |
Denmark | 1.6% |
Other Countries | 4.3% |
Total | 100.0% |
Sector Weightings % of Investments3
Financials | 18.0% |
Health Care | 14.5% |
Telecommunication Services | 14.1% |
Energy | 9.5% |
Utilities | 8.7% |
Industrials | 8.6% |
Consumer Discretionary | 7.8% |
Consumer Staples | 7.7% |
Information Technology | 5.8% |
Materials | 5.3% |
Total | 100.0% |
Top Holdings % of Net Assets3
Novartis AG - Reg’d | 2.7% |
AstraZeneca plc | 2.7% |
France Telecom S.A. | 2.5% |
Sanofi-Aventis | 2.4% |
Royal Dutch Shell plc, Class A | 2.1% |
Centrica plc | 1.8% |
Enel S.p.A. | 1.7% |
Vodafone Group plc | 1.7% |
StatoilHydro A.S.A. | 1.7% |
State Street Institutional Liquid Reserves Fund | 1.7% |
Total | 21.0% |
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements.
* | The Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE Index®) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg International Equity Funds 7
Laudus Rosenberg International Discovery Fund
The Laudus Rosenberg International Discovery Fund Investor Shares returned -46.33% for the fiscal year ending March 31, 2009, outperforming the benchmark S&P Global ex U.S. Broad Market Index $2-10 Billion Cap Range, which returned -47.13%. Persistent volatility, investor risk aversion, and a global economic recession weighed heavily on international equity prices during the reporting period. All major sectors represented in the fund and benchmark declined. On a relative basis, outperformance was generally attributable to stock selection in Asia/Pacific and Latin America.
Despite the fund’s modest outperformance relative to the benchmark, returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. On a sector specific level, Materials, Industrials, and Energy declined the most. Prices in the Material and Industrial sectors declined primarily as investors priced in slower global growth and decreased demand amidst economic recession. Although stronger earlier in the period, the Energy sector experienced significant downward pricing pressure as the economic recession deepened and growth slowed. Better performing sectors were Utilities and Health Care. Relative to the benchmark, stock selection in Health Care and Utilities benefitted the most.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Companies with negative P/E ratios experienced the most significant declines. Like the benchmark, the fund is primarily allocated to companies with mid to low P/E ratios. Relative to the benchmark, stock selection in companies with low P/E ratios generally benefitted the fund, as did selection in companies with very high P/E ratios.
When looking at market capitalization, returns were again negative across the board. In general, returns in the $7.5 billion and above range were most negative. Relative to the benchmark, stock selection in companies within the $7.5 billion and above range benefitted the fund, while selection in companies with market caps below $7.5 billion generally detracted.
In terms of price-to-book (P/B) ratios, returns were down across the spectrum. Relative to the benchmark, stock selection in companies with low P/B ratios generally detracted from performance.
As of 3/31/09:
Fund Characteristics
Number of Securities | 475 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $3,732 |
Portfolio Turnover
(One year trailing) | 159% |
Price to Earnings (P/E) | 0.88 |
Price/Book Ratio (P/B) | 0.93 |
Price to Cash Flow | 8.81 |
Beta | 0.85 |
Return on Equity | 9.47% |
Five-Year Earnings Growth | 10% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 5/31/2006 | 5/31/2006 | ||
Total Net Assets ($ x 1,000) | $34,005 | $182,191 | ||
Ticker Symbol | LIDIX | LIDSX | ||
Cusip | 51855Q697 | 51855Q689 | ||
NAV | $6.04 | $6.03 |
Manager views and portfolio holdings may have changed since the report date.
8 Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Discovery Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | Since Inception | ||||||
Investor (5/31/06) | -46.33% | -14.12% | ||||||
Select (5/31/06) | -46.25%* | -13.90% | ||||||
Benchmark: S&P Global ex US BMI $2-10 Billion Cap Range2 | -47.13% | -13.83% |
Fund Expense Ratios3: Investor Shares: Net 1.65%; Gross 1.81% / Select Shares: Net 1.35%; Gross 1.54%
Country Weightings % of Investments4
Japan | 25.7% |
United Kingdom | 7.3% |
Canada | 5.5% |
Republic of Korea | 5.0% |
Taiwan | 4.9% |
Australia | 4.4% |
South Africa | 4.0% |
Brazil | 3.8% |
France | 3.0% |
Italy | 2.7% |
India | 2.1% |
Belgium | 2.0% |
Netherlands | 2.0% |
China | 1.8% |
Sweden | 1.8% |
Switzerland | 1.8% |
Germany | 1.7% |
Finland | 1.7% |
Russia | 1.5% |
Mexico | 1.5% |
Other Countries | 15.8% |
Total | 100.0% |
Sector Weightings % of Investments4
Consumer Staples | 16.1% |
Financials | 15.6% |
Materials | 12.7% |
Industrials | 11.4% |
Consumer Discretionary | 9.5% |
Telecommunication Services | 9.5% |
Health Care | 7.8% |
Information Technologies | 7.6% |
Utilities | 5.9% |
Energy | 3.9% |
Total | 100.0% |
Top Holdings % of Net Assets4
State Street Institutional Liquid Reserves Fund | 1.3% |
Gold Fields Ltd. | 0.9% |
Tatneft GDR-Reg’d | 0.8% |
Shiseido Co., Ltd. | 0.7% |
West Japan Railway Co. | 0.7% |
Foster’s Group Ltd. | 0.7% |
All Nippon Airways Co., Ltd. | 0.7% |
Aeon Co., Ltd. | 0.7% |
Asahi Breweries Ltd. | 0.7% |
Delhaize Group | 0.7% |
Total | 7.9% |
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. Investing in emerging markets accentuates these risks. Investments in emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries.
* | Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the financial highlights section of the report is calculated in the same manner, but also taking into account certain adjustments that are necessary under generally accepted accounting principles which are required when preparing the annual report. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | The S&P Global ex US Broad Market Index (BMI) $2 - $10 Bill Cap Range includes companies in approximately 52 developed and emerging markets with more than $100 million of free float capitalization. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
3 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/11. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
4 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg International Equity Funds 9
Laudus Rosenberg International Small Capitalization Fund
The Laudus Rosenberg International Small Capitalization Fund Investor Shares returned -52.40% for the fiscal year ending March 31, 2009, underperforming the benchmark S&P Developed ex-U.S. Small Cap Index, which returned -49.75%. Persistent volatility, investor risk aversion, and a global economic recession weighed heavily on international equity prices during the reporting period. On a relative basis, underperformance was generally attributable to stock selection in Europe.
Returns were strongly negative in all sectors represented in the fund. In this particularly difficult investment environment, un-hedged equity funds generally declined following the downward pricing pressure in equity markets. On a sector specific level, Energy, Materials, Industrials, and Financials declined the most. Prices in the Material and Industrial sectors declined primarily as investors priced in slower global growth and decreased demand amidst economic recession. Although stronger earlier in the period, the Energy sector experienced significant downward pricing pressure as the economic recession deepened and growth slowed. Better performing sectors were Utilities, and Consumer Staples. Relative to the benchmark, stock selection across a number of sectors detracted, but more so Consumer Discretionary, Financials, and Industrials. Allocation also detracted slightly, primarily in the Materials sector. Within the Financial sector, an overweight to Swiss Life Holdings detracted the most among individual holdings.
From a price-to-earnings (P/E) standpoint, returns were down across the board. Companies with negative P/E ratios experienced the most significant declines. Like the benchmark, the fund is primarily allocated to companies with mid to low P/E ratios. Relative to the benchmark, stock selection in companies with low P/E ratios generally benefitted the fund, as did selection in companies with very high P/E ratios.
When looking at market capitalization, returns were again negative across the board. In general, returns in the $5 billion to $7.5 billion range were most negative. Relative to the benchmark, stock selection in companies within the $300 million to $1.5 billion range detracted most. In general, stock selection detracted across all market caps, except in the $3 billion to $5 billion range.
In terms of price-to-book (P/B) ratios, returns were down across the spectrum. Relative to the benchmark, stock selection in companies with low P/B ratios accounted for most of the underperformance.
As of 3/31/09:
Fund Characteristics
Number of Securities | 846 |
Avg. Market Capitalization
($Wtd. x 1,000,000) | $1,329 |
Portfolio Turnover
(One year trailing) | 79% |
Price to Earnings (P/E) | 1.6 |
Price/Book Ratio (P/B) | 0.62 |
Price to Cash Flow | 5.01 |
Beta | 0.94 |
Return on Equity | 7.12% |
Five-Year Earnings Growth | 14% |
Fund Overview
Investor Shares | Select Shares | |||
Initial Investment | $100 | $50,000 | ||
Inception Date | 10/29/1996 | 9/23/1996 | ||
Total Net Assets ($ x 1,000) | $147,608 | $195,990 | ||
Ticker Symbol | RISIX | ICSIX | ||
Cusip | 51855Q796 | 51855Q606 | ||
NAV | $7.79 | $7.87 |
Manager views and portfolio holdings may have changed since the report date.
10 Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Small Capitalization Fund
Performance Summary as of 3/31/09
Past performance does not guarantee future results. The performance data quoted represents past performance, and current returns may be lower or higher. The performance information does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, visit www.laudus.com.
Performance data quoted does not reflect the non-recurring redemption fee of 2% that may be charged if shares are sold or exchanged within 30 days of the purchase date. If these fees were reflected, the performance data quoted would be lower.
Performance of a Hypothetical
$10,000 Investment in Investor Shares1
$10,000 Investment in Investor Shares1
Performance of a Hypothetical
$50,000 Investment in Select Shares1
$50,000 Investment in Select Shares1
Average Annual Total Returns1
Class and Inception Date | 1 Year | 5 Years | 10 Years | |||||||||
Investor (10/29/96) | -52.40% | -3.29% | 4.61% | |||||||||
Select (9/23/96) | -52.20% | -2.95% | 4.95% | |||||||||
Benchmark: S&P Developed ex-U.S. SmallCap Index* | -49.75% | -1.38% | 2.61% |
Fund Expense Ratios2: Investor Shares: 1.45% / Select Shares: Net 1.09%
Country Weightings % of Investments3
Japan | 26.8% |
United Kingdom | 16.8% |
France | 8.2% |
Switzerland | 6.5% |
Canada | 6.1% |
Germany | 5.7% |
Republic of Korea | 4.2% |
Netherlands | 4.1% |
Australia | 3.2% |
Italy | 2.9% |
Belgium | 2.7% |
Sweden | 2.5% |
Spain | 2.4% |
Finland | 2.2% |
Hong Kong | 2.0% |
Other Countries | 3.7% |
Total | 100.0% |
Sector Weightings % of Investments3
Industrials | 21.9% |
Consumer Discretionary | 16.5% |
Information Technology | 14.6% |
Materials | 12.0% |
Consumer Staples | 11.5% |
Financials | 11.5% |
Health Care | 4.6% |
Telecommunication Services | 3.7% |
Utilities | 2.1% |
Energy | 1.6% |
Total | 100.0% |
Top Holdings % of Net Assets3
Cap Gemini S.A. | 1.8% |
Thales S.A. | 1.5% |
State Street Institutional Liquid Reserves Fund | 1.5% |
Tele2 AB, B Shares | 1.3% |
Whitbread plc | 1.2% |
Lanxess | 1.2% |
Gemalto N.V. | 1.2% |
Koninklijke DSM N.V. | 1.1% |
Thomas Cook Group plc | 1.1% |
Logica plc | 1.1% |
Total | 13.0% |
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements.
* | S&P Developed ex-U.S. SmallCap Index is a float-adjusted index which measures the performance of small companies (approximately the bottom 15% by market capitalization) in 25 developed equity markets. Investors cannot invest directly in any index and index figures do not include trading and management costs. |
1 | Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower. |
2 | As stated in the prospectus. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements. |
3 | Portfolio holdings are subject to change and may not represent current or future holdings. |
Laudus Rosenberg International Equity Funds 11
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for period beginning October 1, 2008 and held through March 31, 2009.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period”.
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.
Ending | ||||||||||||||||
Beginning | Account Value | Expenses Paid | ||||||||||||||
Expense Ratio1 | Account Value | (Net of Expenses) | During Period2 | |||||||||||||
(Annualized) | at 10/1/08 | at 3/31/09 | 10/1/08–3/31/09 | |||||||||||||
Laudus Rosenberg International Equity Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.40% | $ | 1,000 | $ | 649.70 | $ | 5.76 | |||||||||
Hypothetical 5% Return | 1.40% | $ | 1,000 | $ | 1,017.95 | $ | 7.04 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.12% | $ | 1,000 | $ | 650.10 | $ | 4.61 | |||||||||
Hypothetical 5% Return | 1.12% | $ | 1,000 | $ | 1,019.35 | $ | 5.64 | |||||||||
Laudus Rosenberg International Discovery Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.65% | $ | 1,000 | $ | 701.00 | $ | 7.00 | |||||||||
Hypothetical 5% Return | 1.65% | $ | 1,000 | $ | 1,016.70 | $ | 8.30 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.35% | $ | 1,000 | $ | 701.60 | $ | 5.73 | |||||||||
Hypothetical 5% Return | 1.35% | $ | 1,000 | $ | 1,018.20 | $ | 6.79 | |||||||||
Laudus Rosenberg International Small Capitalization Fund | ||||||||||||||||
Investor Shares | ||||||||||||||||
Actual Return | 1.56% | $ | 1,000 | $ | 623.50 | $ | 6.31 | |||||||||
Hypothetical 5% Return | 1.56% | $ | 1,000 | $ | 1,017.15 | $ | 7.85 | |||||||||
Select Shares | ||||||||||||||||
Actual Return | 1.13% | $ | 1,000 | $ | 625.00 | $ | 4.58 | |||||||||
Hypothetical 5% Return | 1.13% | $ | 1,000 | $ | 1,019.30 | $ | 5.69 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. |
2 | Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
12 Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Equity Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 11.60 | 13.54 | 11.77 | 9.61 | 8.47 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.37 | 0.55 | 0.14 | 0.10 | 0.06 | 1 | ||||||||||||||
Net realized and unrealized gains (losses) | (6.12 | ) | (1.33 | ) | 1.97 | 2.14 | 1.11 | |||||||||||||
Total from investment operations | (5.75 | ) | (0.78 | ) | 2.11 | 2.24 | 1.17 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.34 | ) | (0.21 | ) | (0.09 | ) | (0.08 | ) | (0.03 | ) | ||||||||||
Distributions from net realized gains | (0.00 | )2 | (0.95 | ) | (0.25 | ) | — | — | ||||||||||||
Total distributions | (0.34 | ) | (1.16 | ) | (0.34 | ) | (0.08 | ) | (0.03 | ) | ||||||||||
Net asset value at end of period | 5.51 | 11.60 | 13.54 | 11.77 | 9.61 | |||||||||||||||
Total return (%) | (50.04 | ) | (6.21 | ) | 18.08 | 23.41 | 13.79 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.40 | 1.61 | 1.64 | 1.72 | 1.72 | |||||||||||||||
Gross operating expenses | 1.69 | 1.69 | 1.71 | 2.33 | 2.96 | |||||||||||||||
Net investment income (loss) | 2.73 | 1.97 | 1.17 | 1.02 | 0.65 | |||||||||||||||
Portfolio turnover rate | 125 | 83 | 64 | 59 | 52 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 7,820 | 19,570 | 61,411 | 18,824 | 12,491 |
4/1/083– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 11.59 | 13.58 | 11.80 | 9.63 | 8.46 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.36 | 0.18 | 0.07 | 0.14 | 0.09 | 1 | ||||||||||||||
Net realized and unrealized gains (losses) | (6.08 | ) | (0.92 | ) | 2.08 | 2.15 | 1.12 | |||||||||||||
Total from investment operations | (5.72 | ) | (0.74 | ) | 2.15 | 2.29 | 1.21 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.38 | ) | (0.30 | ) | (0.12 | ) | (0.12 | ) | (0.04 | ) | ||||||||||
Distributions from net realized gains | (0.00 | )2 | (0.95 | ) | (0.25 | ) | — | — | ||||||||||||
Total distributions | (0.38 | ) | (1.25 | ) | (0.37 | ) | (0.12 | ) | (0.04 | ) | ||||||||||
Net asset value at end of period | 5.49 | 11.59 | 13.58 | 11.80 | 9.63 | |||||||||||||||
Total return (%) | (49.91 | ) | (5.91 | ) | 18.37 | 23.86 | 14.36 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.12 | 1.22 | 1.34 | 1.34 | 1.34 | |||||||||||||||
Gross operating expenses | 1.28 | 1.23 | 1.34 | 1.96 | 2.69 | |||||||||||||||
Net investment income (loss) | 3.05 | 1.46 | 1.09 | 1.34 | 0.96 | |||||||||||||||
Portfolio turnover rate | 125 | 83 | 64 | 59 | 52 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 32,044 | 97,701 | 68,398 | 21,688 | 16,094 |
1 Calculated based on the average shares outstanding during the period.
2 Amount less than $0.005.
3 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
See financial notes 13
Laudus Rosenberg International Equity Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
97 | .1% | Common Stock | 54,480,505 | 38,701,247 | ||||||||
1 | .7% | Other Investment Company | 673,541 | 673,541 | ||||||||
98 | .8% | Total Investments | 55,154,046 | 39,374,788 | ||||||||
1 | .2% | Other Assets and Liabilities, Net | 488,420 | |||||||||
100 | .0% | Net Assets | 39,863,208 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 97.1% of net assets | ||||||||
Australia 6.5% | ||||||||
Banks 2.0% | ||||||||
Australia & New Zealand Banking Group Ltd. | 16,300 | 178,115 | ||||||
Bendigo & Adelaide Bank Ltd. | 1,500 | 8,528 | ||||||
Commonwealth Bank of Australia | 7,800 | 187,251 | ||||||
National Australia Bank Ltd. | 14,700 | 205,202 | ||||||
Westpac Banking Corp. | 15,100 | 199,395 | ||||||
778,491 | ||||||||
Consumer Services 0.2% | ||||||||
Crown Ltd. | 12,700 | 56,375 | ||||||
Tatts Group Ltd. | 10,600 | 20,402 | ||||||
76,777 | ||||||||
Energy 0.5% | ||||||||
Energy Resources of Australia Ltd. | 400 | 5,947 | ||||||
Origin Energy Ltd. | 8,300 | 85,392 | ||||||
Santos Ltd. | 6,600 | 77,681 | ||||||
Woodside Petroleum Ltd. | 1,500 | 39,954 | ||||||
208,974 | ||||||||
Food & Staples Retailing 0.4% | ||||||||
Metcash Ltd. | 13,200 | 37,175 | ||||||
Wesfarmers Ltd. | 400 | 5,249 | ||||||
Woolworths Ltd. | 7,300 | 126,703 | ||||||
169,127 | ||||||||
Food, Beverage & Tobacco 0.5% | ||||||||
Coca-Cola Amatil Ltd. | 11,500 | 69,303 | ||||||
Foster’s Group Ltd. | 23,100 | 81,239 | ||||||
Lion Nathan Ltd. | 9,500 | 53,228 | ||||||
203,770 | ||||||||
Health Care Equipment & Services 0.2% | ||||||||
Cochlear Ltd. | 1,700 | 59,282 | ||||||
Insurance 0.6% | ||||||||
Insurance Australia Group Ltd. | 27,000 | 65,574 | ||||||
QBE Insurance Group Ltd. | 7,800 | 104,637 | ||||||
Suncorp-Metway Ltd. | 13,400 | 55,964 | ||||||
226,175 | ||||||||
Materials 1.1% | ||||||||
BHP Billiton Ltd. | 19,400 | 428,763 | ||||||
Newcrest Mining Ltd. | 800 | 18,415 | ||||||
447,178 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||||||||
CSL Ltd. | 5,500 | 124,281 | ||||||
Real Estate 0.3% | ||||||||
CFS Retail Property Trust | 10,900 | 12,385 | ||||||
Dexus Property Group | 21,600 | 11,253 | ||||||
Goodman Group | 12,700 | 2,883 | ||||||
Westfield Group | 14,200 | 98,434 | ||||||
124,955 | ||||||||
Software & Services 0.0% | ||||||||
Computershare Ltd. | 2,100 | 12,805 | ||||||
Telecommunication Services 0.2% | ||||||||
Telstra Corp., Ltd. | 43,400 | 96,880 | ||||||
Utilities 0.2% | ||||||||
AGL Energy Ltd. | 7,100 | 73,654 | ||||||
2,602,349 | ||||||||
Austria 0.2% | ||||||||
Energy 0.2% | ||||||||
OMV AG | 1,531 | 51,218 | ||||||
Telecommunication Services 0.0% | ||||||||
Telekom Austria AG | 555 | 8,402 | ||||||
59,620 | ||||||||
Belgium 1.9% | ||||||||
Diversified Financials 0.0% | ||||||||
Banque Nationale de Belgique | 3 | 8,764 | ||||||
Food & Staples Retailing 0.9% | ||||||||
Delhaize Group | 5,700 | 369,895 | ||||||
Materials 0.6% | ||||||||
Solvay S.A. | 2,800 | 196,368 | ||||||
Umicore | 2,322 | 42,911 | ||||||
239,279 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.4% | ||||||||
UCB S.A. | 5,000 | 147,299 | ||||||
765,237 | ||||||||
Bermuda 0.4% | ||||||||
Diversified Financials 0.1% | ||||||||
Guoco Group Ltd. | 8,000 | 44,568 | ||||||
Insurance 0.2% | ||||||||
Hiscox Ltd. | 14,000 | 61,945 | ||||||
Retailing 0.1% | ||||||||
Li & Fung Ltd. | 16,000 | 37,509 | ||||||
144,022 |
14 See financial notes
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Denmark 1.5% | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Danisco A/S | 2,099 | 62,898 | ||||||
Materials 0.4% | ||||||||
Novozymes A/S, Class B | 2,000 | 144,684 | ||||||
Transportation 1.0% | ||||||||
A P Moller - Maersk A/S, Series A | 92 | 399,643 | ||||||
607,225 | ||||||||
Finland 1.1% | ||||||||
Capital Goods 0.3% | ||||||||
Wartsila Corp. Oyj | 4,500 | 94,903 | ||||||
Insurance 0.4% | ||||||||
Sampo Oyj, Class A | 11,565 | 170,530 | ||||||
Materials 0.3% | ||||||||
UPM-Kymmene Oyj | 22,263 | 128,489 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||||||||
Orion Oyj, Class B | 2,872 | 41,561 | ||||||
435,483 | ||||||||
France 9.5% | ||||||||
Banks 0.7% | ||||||||
BNP Paribas | 4,986 | 205,705 | ||||||
Societe Generale | 1,971 | 77,099 | ||||||
282,804 | ||||||||
Capital Goods 0.7% | ||||||||
Bouygues S.A. | 2,053 | 73,364 | ||||||
Nexans S.A. | 899 | 34,089 | ||||||
Thales S.A. | 4,054 | 153,513 | ||||||
260,966 | ||||||||
Commercial & Professional Supplies 0.0% | ||||||||
Teleperformance | 542 | 14,909 | ||||||
Consumer Durables & Apparel 0.4% | ||||||||
Christian Dior S.A. | 2,587 | 141,707 | ||||||
Nexity | 338 | 7,218 | ||||||
148,925 | ||||||||
Consumer Services 0.5% | ||||||||
Sodexo | 4,427 | 201,650 | ||||||
Food, Beverage & Tobacco 0.7% | ||||||||
Pernod Ricard S.A. | 4,629 | 257,972 | ||||||
Insurance 0.1% | ||||||||
CNP Assurances | 635 | 40,047 | ||||||
Media 0.7% | ||||||||
M6 Metropole Television | 2,609 | 42,574 | ||||||
Vivendi | 8,702 | 230,159 | ||||||
272,733 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 2.4% | ||||||||
Sanofi-Aventis | 17,364 | 974,487 | ||||||
Software & Services 0.7% | ||||||||
Atos Origin S.A. | 2,678 | 68,704 | ||||||
Cap Gemini S.A. | 6,500 | 208,904 | ||||||
277,608 | ||||||||
Telecommunication Services 2.5% | ||||||||
France Telecom S.A. | 43,000 | 980,277 | ||||||
Transportation 0.1% | ||||||||
Air France-KLM | 5,765 | 51,259 | ||||||
Utilities 0.0% | ||||||||
Suez Environnement S.A. * | 611 | 8,985 | ||||||
3,772,622 | ||||||||
Germany 7.0% | ||||||||
Capital Goods 0.5% | ||||||||
Bilfinger Berger AG | 714 | 26,852 | ||||||
KSB AG | 12 | 4,230 | ||||||
MTU Aero Engines Holding AG | 2,275 | 53,134 | ||||||
Rheinmetall AG | 1,407 | 47,641 | ||||||
Siemens AG - Reg’d | 200 | 11,418 | ||||||
Tognum AG | 5,400 | 46,838 | ||||||
190,113 | ||||||||
Diversified Financials 0.2% | ||||||||
Deutsche Bank AG - Reg’d | 2,064 | 82,676 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Suedzucker AG | 2,100 | 40,510 | ||||||
Health Care Equipment & Services 0.2% | ||||||||
Fresenius Medical Care AG & Co. KGaA | 2,100 | 81,489 | ||||||
Household & Personal Products 0.5% | ||||||||
Henkel AG & Co. KGaA | 7,064 | 178,197 | ||||||
Insurance 0.6% | ||||||||
Allianz SE - Reg’d | 2,848 | 238,385 | ||||||
Materials 0.2% | ||||||||
Lanxess | 2,297 | 39,035 | ||||||
Linde AG | 361 | 24,511 | ||||||
63,546 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 1.0% | ||||||||
Bayer AG | 2,400 | 114,664 | ||||||
Merck KGaA | 3,000 | 265,069 | ||||||
379,733 | ||||||||
Software & Services 0.0% | ||||||||
Software AG | 238 | 16,892 | ||||||
Telecommunication Services 1.1% | ||||||||
Deutsche Telekom AG - Reg’d. | 36,800 | 455,804 | ||||||
Transportation 1.1% | ||||||||
Deutsche Lufthansa AG - Reg’d | 10,800 | 117,003 | ||||||
Deutsche Post AG - Reg’d | 31,404 | 338,383 | ||||||
455,386 | ||||||||
Utilities 1.5% | ||||||||
RWE AG | 8,698 | 609,125 | ||||||
2,791,856 | ||||||||
Greece 0.2% | ||||||||
Consumer Services 0.2% | ||||||||
OPAP S.A. | 2,526 | 66,773 |
See financial notes 15
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Telecommunication Services 0.0% | ||||||||
Hellenic Telecommunications Organization S.A. | 493 | 7,390 | ||||||
74,163 | ||||||||
Hong Kong 2.3% | ||||||||
Banks 0.3% | ||||||||
BOC Hong Kong (Holdings) Ltd. | 21,500 | 22,020 | ||||||
Hang Seng Bank Ltd. | 8,200 | 82,755 | ||||||
104,775 | ||||||||
Capital Goods 0.4% | ||||||||
Hutchison Whampoa Ltd. | 21,000 | 103,090 | ||||||
Jardine Matheson Holdings Ltd. | 2,400 | 43,640 | ||||||
Jardine Strategic Holdings Ltd. | 3,000 | 29,735 | ||||||
176,465 | ||||||||
Consumer Durables & Apparel 0.1% | ||||||||
Yue Yuen Industrial (Holdings) Ltd. | 23,000 | 52,533 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Vitasoy International Holdings Ltd. | 8,000 | 3,422 | ||||||
Real Estate 0.5% | ||||||||
Cheung Kong (Holdings) Ltd. | 12,000 | 103,426 | ||||||
Sun Hung Kai Properties Ltd. | 3,000 | 26,919 | ||||||
The Link REIT | 12,000 | 23,793 | ||||||
The Wharf (Holdings) Ltd. | 12,000 | 29,878 | ||||||
Wheelock Properties Ltd. | 5,000 | 1,648 | ||||||
185,664 | ||||||||
Retailing 0.2% | ||||||||
Esprit Holdings Ltd. | 12,000 | 61,228 | ||||||
Wing On Co. International Ltd. | 24,000 | 19,506 | ||||||
80,734 | ||||||||
Telecommunication Services 0.0% | ||||||||
Hutchison Telecommunications International Ltd. | 22,000 | 6,882 | ||||||
Transportation 0.2% | ||||||||
Hopewell Highway Infrastructure Ltd. | 47,000 | 26,515 | ||||||
MTR Corp., Ltd. | 22,000 | 52,872 | ||||||
79,387 | ||||||||
Utilities 0.6% | ||||||||
CLP Holdings Ltd. | 19,000 | 130,550 | ||||||
Hongkong Electric Holdings Ltd. | 17,000 | 101,003 | ||||||
231,553 | ||||||||
921,415 | ||||||||
Italy 4.1% | ||||||||
Automobiles & Components 0.0% | ||||||||
Pirelli & C. S.p.A. | 48,404 | 11,296 | ||||||
Banks 0.9% | ||||||||
Banco Popolare Societa Cooperativa | 37,561 | 172,381 | ||||||
Intesa Sanpaolo | 38,712 | 106,476 | ||||||
UniCredit S.p.A. | 43,404 | 71,437 | ||||||
350,294 | ||||||||
Capital Goods 0.1% | ||||||||
Finmeccanica S.p.A. | 4,452 | �� | 55,413 | |||||
Insurance 0.2% | ||||||||
Fondiaria - Sai S.p.A. | 1,600 | 18,701 | ||||||
Unipol Gruppo Finanziario S.p.A. | 63,000 | 55,783 | ||||||
74,484 | ||||||||
Telecommunication Services 1.2% | ||||||||
Telecom Italia S.p.A. | 367,549 | 473,855 | ||||||
Utilities 1.7% | ||||||||
Enel S.p.A. | 142,187 | 681,824 | ||||||
1,647,166 | ||||||||
Japan 23.2% | ||||||||
Automobiles & Components 1.8% | ||||||||
Aisan Industry Co., Ltd. | 100 | 465 | ||||||
Bridgestone Corp. | 15,800 | 229,117 | ||||||
Fuji Heavy Industries Ltd. | 13,000 | 43,267 | ||||||
Honda Motor Co., Ltd. | 1,400 | 33,328 | ||||||
Musashi Seimitsu Industry Co., Ltd. | 600 | 6,158 | ||||||
Nippon Seiki Co., Ltd. | 2,000 | 12,428 | ||||||
Nissan Shatai Co., Ltd. | 3,000 | 17,482 | ||||||
Toyota Industries Corp. | 200 | 4,308 | ||||||
Toyota Motor Corp. | 9,900 | 314,462 | ||||||
Unipres Corp. | 100 | 704 | ||||||
Yamaha Motor Co., Ltd. | 6,500 | 58,317 | ||||||
720,036 | ||||||||
Banks 2.8% | ||||||||
Bank of The Ryukyus Ltd. * | 800 | 6,648 | ||||||
Chuo Mitsui Trust Holdings, Inc. | 32,000 | 99,538 | ||||||
Fukuoka Financial Group, Inc. | 30,000 | 92,365 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 66,100 | 325,656 | ||||||
Mizuho Financial Group, Inc. | 8,000 | 15,622 | ||||||
Sapporo Hokuyo Holdings, Inc. * | 11,000 | 31,192 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 3,800 | 133,803 | ||||||
The 77 Bank Ltd. | 9,000 | 44,894 | ||||||
The Aichi Bank Ltd. | 400 | 27,569 | ||||||
The Bank of Kyoto Ltd. | 9,000 | 76,440 | ||||||
The Chiba Kogyo Bank Ltd. * | 200 | 1,969 | ||||||
The Eighteenth Bank Ltd. | 2,000 | 6,881 | ||||||
The Higashi-Nippon Bank Ltd. | 1,000 | 2,708 | ||||||
The Hyakugo Bank Ltd. | 6,000 | 30,859 | ||||||
The Mie Bank Ltd. | 2,000 | 6,273 | ||||||
The Nishi-Nippon City Bank Ltd. | 27,000 | 59,139 | ||||||
The San-in Godo Bank Ltd. | 4,000 | 30,873 | ||||||
The Sumitomo Trust & Banking Co., Ltd. | 33,000 | 127,769 | ||||||
1,120,198 | ||||||||
Capital Goods 0.3% | ||||||||
Aida Engineering Ltd. | 1,000 | 2,832 | ||||||
Daimei Telecom Engineering Corp. | 1,000 | 9,301 | ||||||
Fuji Machine Manufacturing Co., Ltd. | 1,100 | 8,936 | ||||||
JFE Shoji Holdings, Inc. | 5,000 | 13,403 | ||||||
Kamei Corp. | 2,000 | 8,966 | ||||||
Maeda Corp. | 6,000 | 20,960 | ||||||
Nagase & Co., Ltd. | 4,000 | 30,965 | ||||||
Sumikin Bussan Corp. | 4,000 | 8,419 | ||||||
Takeuchi Mfg. Co., Ltd. | 400 | 2,571 | ||||||
106,353 | ||||||||
Commercial & Professional Supplies 0.2% | ||||||||
Dai Nippon Printing Co., Ltd. | 11,000 | 101,379 |
16 See financial notes
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Consumer Durables & Apparel 0.4% | ||||||||
Kurabo Industries Ltd. | 6,000 | 8,267 | ||||||
Nikon Corp. | 10,000 | 113,811 | ||||||
Roland Corp. | 600 | 6,446 | ||||||
SRI Sports Ltd. | 3 | 2,340 | ||||||
Tokyo Style Co., Ltd. | 2,000 | 13,737 | ||||||
144,601 | ||||||||
Consumer Services 0.0% | ||||||||
Resorttrust, Inc. | 500 | 4,638 | ||||||
Royal Holdings Co., Ltd. | 400 | 4,301 | ||||||
Saint Marc Holdings Co., Ltd. | 100 | 2,520 | ||||||
11,459 | ||||||||
Diversified Financials 0.1% | ||||||||
Fuyo General Lease Co., Ltd. | 400 | 5,045 | ||||||
ORIX Corp. | 890 | 29,291 | ||||||
Tokai Tokyo Financial Holdings, Inc. | 3,000 | 5,424 | ||||||
39,760 | ||||||||
Energy 0.9% | ||||||||
Inpex Corp. | 31 | 219,538 | ||||||
Itohchu Enex Co., Ltd. | 1,700 | 8,998 | ||||||
Nippon Mining Holdings, Inc. | 19,000 | 76,157 | ||||||
Showa Shell Sekiyu K.K. | 7,900 | 72,557 | ||||||
377,250 | ||||||||
Food & Staples Retailing 0.5% | ||||||||
Aeon Co., Ltd. | 15,200 | 100,472 | ||||||
Cawachi Ltd. | 500 | 7,691 | ||||||
Circle K Sunkus Co., Ltd. | 2,100 | 29,937 | ||||||
Kasumi Co., Ltd. | 1,000 | 3,796 | ||||||
Ministop Co., Ltd. | 200 | 3,131 | ||||||
Uny Co., Ltd. | 6,000 | 47,574 | ||||||
192,601 | ||||||||
Food, Beverage & Tobacco 1.5% | ||||||||
Ajinomoto Co., Inc. | 12,000 | 85,071 | ||||||
Asahi Breweries Ltd. | 8,800 | 105,549 | ||||||
Japan Tobacco, Inc. | 69 | 184,450 | ||||||
Kirin Holdings Co., Ltd. | 16,000 | 170,929 | ||||||
Meiji Seika Kaisha Ltd. | 8,000 | 27,789 | ||||||
Mikuni Coca-Cola Bottling Co., Ltd. | 1,100 | 8,612 | ||||||
582,400 | ||||||||
Health Care Equipment & Services 0.2% | ||||||||
BML, Inc. | 200 | 3,726 | ||||||
Hitachi Medical Corp. | 2,000 | 15,586 | ||||||
Suzuken Co., Ltd. | 2,300 | 60,331 | ||||||
79,643 | ||||||||
Household & Personal Products 0.9% | ||||||||
Aderans Holdings Co., Ltd. | 500 | 3,640 | ||||||
Kao Corp. | 9,000 | 175,612 | ||||||
Kose Corp. | 1,500 | 28,072 | ||||||
Lion Corp. | 4,000 | 18,688 | ||||||
Mandom Corp. | 200 | 3,314 | ||||||
Milbon Co., Ltd. | 400 | 8,564 | ||||||
Shiseido Co., Ltd. | 9,000 | 131,949 | ||||||
369,839 | ||||||||
Insurance 1.2% | ||||||||
Mitsui Sumitomo Insurance Group Holdings, Inc. | 9,100 | 214,398 | ||||||
NIPPONKOA Insurance Co., Ltd. | 7,000 | 40,530 | ||||||
Sompo Japan Insurance, Inc. | 22,000 | 115,313 | ||||||
T&D Holdings, Inc. | 3,800 | 92,548 | ||||||
462,789 | ||||||||
Materials 1.4% | ||||||||
Earth Chemical Co., Ltd. | 100 | 2,601 | ||||||
JFE Holdings, Inc. | 8,300 | 183,208 | ||||||
Kaneka Corp. | 12,000 | 59,330 | ||||||
Mitsubishi Chemical Holdings Corp. | 26,500 | 91,456 | ||||||
Nippon Paper Group, Inc. | 1,000 | 24,346 | ||||||
Sumitomo Chemical Co., Ltd. | 37,000 | 127,203 | ||||||
Teijin Ltd. | 25,000 | 54,624 | ||||||
542,768 | ||||||||
Media 0.1% | ||||||||
Daiichikosho Co., Ltd. | 900 | 7,394 | ||||||
TV Asahi Corp. | 17 | 18,982 | ||||||
26,376 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 2.8% | ||||||||
Astellas Pharma, Inc. | 8,100 | 250,664 | ||||||
Daiichi Sankyo Co., Ltd. | 13,900 | 233,701 | ||||||
Dainippon Sumitomo Pharma Co., Ltd. | 10,000 | 83,473 | ||||||
Eisai Co., Ltd. | 2,700 | 79,473 | ||||||
Kyowa Hakko Kirin Co., Ltd. | 7,000 | 59,702 | ||||||
Mitsubishi Tanabe Pharma Corp. | 9,000 | 89,598 | ||||||
Nippon Shinyaku Co., Ltd. | 2,000 | 17,716 | ||||||
Ono Pharmaceutical Co., Ltd. | 800 | 35,111 | ||||||
Taisho Pharmaceutical Co., Ltd. | 5,000 | 93,214 | ||||||
Takeda Pharmaceutical Co., Ltd. | 5,100 | 176,942 | ||||||
Torii Pharmaceutical Co., Ltd. | 600 | 8,297 | ||||||
1,127,891 | ||||||||
Retailing 0.5% | ||||||||
AOKl Holdings, Inc. | 1,000 | 8,977 | ||||||
Aoyama Trading Co., Ltd. | 1,400 | 18,483 | ||||||
AT-Group Co., Ltd. | 2,000 | 15,390 | ||||||
Belluna Co., Ltd. | 1,250 | 3,235 | ||||||
J. Front Retailing Co., Ltd. | 15,000 | 52,204 | ||||||
Kohnan Shoji Co., Ltd. | 200 | 1,720 | ||||||
Marui Group Co., Ltd. | 6,800 | 36,553 | ||||||
Nafco Co., Ltd. | 200 | 1,847 | ||||||
Sazaby League Ltd. | 500 | 5,594 | ||||||
Takashimaya Co., Ltd. | 9,000 | 52,156 | ||||||
196,159 | ||||||||
Software & Services 0.0% | ||||||||
Hitachi System & Services Ltd. | 300 | 2,703 | ||||||
Technology Hardware & Equipment 2.8% | ||||||||
FUJIFILM Holdings Corp. | 11,300 | 248,729 | ||||||
Fujitsu Ltd. | 41,000 | 153,842 | ||||||
Furuno Electric Co., Ltd. | 900 | 4,554 | ||||||
Hitachi Ltd. | 56,000 | 153,216 | ||||||
Hitachi Maxell Ltd. | 2,100 | 15,250 | ||||||
Hosiden Corp. | 1,200 | 11,973 | ||||||
Murata Manufacturing Co., Ltd. | 4,500 | 174,588 | ||||||
NEC Corp. * | 47,000 | 127,828 | ||||||
OMRON Corp. | 5,200 | 61,677 | ||||||
Ricoh Co., Ltd. | 3,000 | 36,276 | ||||||
Riso Kagaku Corp. | 600 | 5,493 | ||||||
Tdk Corp. | 3,200 | 120,959 | ||||||
Toshiba Tec Corp. | 6,000 | 15,374 | ||||||
1,129,759 |
See financial notes 17
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Telecommunication Services 1.9% | ||||||||
KDDI Corp. | 54 | 254,294 | ||||||
Nippon Telegraph & Telephone Corp. | 5,600 | 213,722 | ||||||
NTT DoCoMo, Inc. | 211 | 287,474 | ||||||
Okinawa Cellular Telephone Co. | 1 | 1,720 | ||||||
757,210 | ||||||||
Transportation 1.4% | ||||||||
Central Japan Railway Co. | 33 | 186,081 | ||||||
Japan Airlines Corp. * | 57,000 | 115,675 | ||||||
Kawasaki Kisen Kaisha Ltd. | 7,000 | 22,001 | ||||||
Nippon Yusen Kabushiki Kaisha | 18,000 | 69,534 | ||||||
Seino Holdings Co., Ltd. | 6,000 | 29,020 | ||||||
West Japan Railway Co. | 40 | 126,837 | ||||||
549,148 | ||||||||
Utilities 1.5% | ||||||||
Chubu Electric Power Co., Inc. | 4,500 | 99,183 | ||||||
Electric Power Development Co., Ltd. | 3,200 | 95,438 | ||||||
Kyushu Electric Power Co., Inc. | 7,100 | 159,412 | ||||||
The Tokyo Electric Power Co., Inc. | 900 | 22,494 | ||||||
Tohoku Electric Power Co., Inc. | 10,900 | 239,915 | ||||||
616,442 | ||||||||
9,256,764 | ||||||||
Netherlands 2.8% | ||||||||
Banks 0.0% | ||||||||
Van Lanschot N.V. CVA | 146 | 7,394 | ||||||
Capital Goods 0.4% | ||||||||
Imtech N.V. | 847 | 11,645 | ||||||
Koninklijke (Royal) Philips Electronics N.V. | 9,109 | 134,833 | ||||||
146,478 | ||||||||
Commercial & Professional Supplies 0.2% | ||||||||
Randstad Holding N.V. | 4,800 | 81,429 | ||||||
Diversified Financials 0.1% | ||||||||
ING Groep N.V. CVA | 9,222 | 50,531 | ||||||
Food & Staples Retailing 0.8% | ||||||||
Koninklijke Ahold N.V. | 28,238 | 309,283 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Nutreco Holding N.V. | 394 | 14,107 | ||||||
Materials 0.5% | ||||||||
James Hardie Industries N.V. CDI | 13,200 | 38,624 | ||||||
Koninklijke DSM N.V. | 6,500 | 171,032 | ||||||
209,656 | ||||||||
Semiconductors & Semiconductor Equipment 0.2% | ||||||||
STMicroelectronics N.V. | 14,372 | 71,894 | ||||||
Transportation 0.6% | ||||||||
TNT N.V. | 13,300 | 227,967 | ||||||
1,118,739 | ||||||||
New Zealand 0.1% | ||||||||
Materials 0.1% | ||||||||
Nufarm Ltd. | 4,400 | 34,722 | ||||||
Utilities 0.0% | ||||||||
Vector Ltd. | 14,400 | 18,731 | ||||||
53,453 | ||||||||
Norway 1.7% | ||||||||
Energy 1.7% | ||||||||
StatoilHydro A.S.A. | 38,008 | 665,166 | ||||||
Papua New Guinea 0.1% | ||||||||
Materials 0.1% | ||||||||
Lihir Gold Ltd. * | 12,400 | 28,055 | ||||||
Portugal 1.2% | ||||||||
�� | ||||||||
Banks 0.0% | ||||||||
Banco Comercial Portugues S.A. - Reg’d * | 3,613 | 2,963 | ||||||
Telecommunication Services 0.2% | ||||||||
Portugal Telecom SGPS S.A. - Reg’d | 8,000 | 61,799 | ||||||
Utilities 1.0% | ||||||||
EDP - Energias de Portugal S.A. | 84,000 | 291,197 | ||||||
Redes Energeticas Nacionais S.A. | 25,000 | 104,392 | ||||||
395,589 | ||||||||
460,351 | ||||||||
Singapore 1.0% | ||||||||
Banks 0.2% | ||||||||
Oversea-Chinese Banking Corp., Ltd. | 16,000 | 51,007 | ||||||
United Overseas Bank Ltd. | 5,000 | 32,072 | ||||||
83,079 | ||||||||
Capital Goods 0.3% | ||||||||
Fraser & Neave Ltd. | 6,000 | 9,995 | ||||||
SembCorp Industries Ltd. | 25,000 | 38,775 | ||||||
Singapore Technologies Engineering Ltd. | 34,000 | 55,086 | ||||||
103,856 | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Wilmar International Ltd. | 12,000 | 25,109 | ||||||
Materials 0.0% | ||||||||
NSL Ltd. | 15,000 | 11,362 | ||||||
Retailing 0.1% | ||||||||
Jardine Cycle & Carriage Ltd. | 5,000 | 39,034 | ||||||
Telecommunication Services 0.1% | ||||||||
Singapore Telecommunications Ltd. | 26,000 | 43,338 | ||||||
Transportation 0.2% | ||||||||
ComfortDelGro Corp., Ltd. | 8,000 | 7,164 | ||||||
SIA Engineering Co., Ltd. | 14,000 | 17,241 | ||||||
Singapore Airlines Ltd. | 9,540 | 62,915 | ||||||
87,320 | ||||||||
393,098 | ||||||||
Spain 3.9% | ||||||||
Banks 1.3% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A. | 27,299 | 221,579 | ||||||
Banco Santander S.A. | 41,799 | 288,195 | ||||||
509,774 | ||||||||
Capital Goods 0.0% | ||||||||
Abengoa S.A. | 583 | 7,748 |
18 See financial notes
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Energy 1.5% | ||||||||
Repsol YPF S.A. | 33,600 | 579,767 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Ebro Puleva S.A. | 1,200 | 14,085 | ||||||
Insurance 0.0% | ||||||||
Grupo Catalana Occidente S.A. | 148 | 1,750 | ||||||
Telecommunication Services 1.0% | ||||||||
Telefonica S.A. | 20,907 | 416,913 | ||||||
Utilities 0.1% | ||||||||
Gas Natural SDG S.A. | 1,820 | 24,921 | ||||||
1,554,958 | ||||||||
Sweden 3.2% | ||||||||
Banks 0.2% | ||||||||
Nordea Bank AB | 15,752 | 78,378 | ||||||
Commercial & Professional Supplies 0.1% | ||||||||
Securitas AB, B Shares | 3,405 | 24,853 | ||||||
Materials 0.3% | ||||||||
Svenska Cellulosa AB, A Shares | 912 | 6,867 | ||||||
Svenska Cellulosa AB, B Shares | 16,345 | 124,053 | ||||||
130,920 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||||||||
Meda AB, A Shares | 13,121 | 77,659 | ||||||
Technology Hardware & Equipment 1.2% | ||||||||
Telefonaktiebolaget LM Ericsson, B Shares | 61,122 | 494,183 | ||||||
Telecommunication Services 1.2% | ||||||||
Tele2 AB, B Shares | 16,000 | 134,880 | ||||||
TeliaSonera AB | 70,761 | 340,339 | ||||||
475,219 | ||||||||
1,281,212 | ||||||||
Switzerland 6.0% | ||||||||
Banks 0.3% | ||||||||
Banque Cantonale Vaudoise - Reg’d | 350 | 116,042 | ||||||
Capital Goods 0.2% | ||||||||
Sulzer AG - Reg’d | 1,257 | 64,865 | ||||||
Diversified Financials 0.7% | ||||||||
Credit Suisse Group AG - Reg’d | 4,427 | 134,793 | ||||||
UBS AG - Reg’d * | 13,264 | 124,353 | ||||||
Vontobel Holding AG - Reg’d | 768 | 14,221 | ||||||
273,367 | ||||||||
Insurance 1.1% | ||||||||
Baloise Holding AG - Reg’d | 1,914 | 122,328 | ||||||
Helvetia Holding AG - Reg’d | 300 | 63,885 | ||||||
Zurich Financial Services AG - Reg’d | 1,655 | 261,562 | ||||||
447,775 | ||||||||
Materials 0.1% | ||||||||
Clariant AG - Reg’d * | 8,000 | 31,043 | ||||||
Syngenta AG - Reg’d | 102 | 20,503 | ||||||
51,546 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 2.8% | ||||||||
Novartis AG - Reg’d | 28,916 | 1,093,994 | ||||||
Real Estate 0.0% | ||||||||
PSP Swiss Property AG - Reg’d * | 189 | 7,968 | ||||||
Telecommunication Services 0.8% | ||||||||
Swisscom AG - Reg’d | 1,181 | 331,598 | ||||||
Transportation 0.0% | ||||||||
Flughafen Zuerich AG - Reg’d | 76 | 13,682 | ||||||
Swissair Group (a)(b)(c) * | 30 | — | ||||||
13,682 | ||||||||
2,400,837 | ||||||||
United Kingdom 19.2% | ||||||||
Banks 1.0% | ||||||||
Barclays plc | 23,101 | 49,046 | ||||||
HSBC Holdings plc | 47,415 | 263,987 | ||||||
Standard Chartered plc | 7,115 | 88,349 | ||||||
401,382 | ||||||||
Capital Goods 0.1% | ||||||||
Qinetiq plc | 16,928 | 32,081 | ||||||
Consumer Services 0.6% | ||||||||
Compass Group plc | 38,882 | 177,816 | ||||||
Thomas Cook Group plc | 15,000 | 51,653 | ||||||
229,469 | ||||||||
Diversified Financials 0.1% | ||||||||
Investec plc | 9,324 | 39,040 | ||||||
Energy 4.5% | ||||||||
BP plc | 49,907 | 334,645 | ||||||
Royal Dutch Shell plc, Class A | 37,499 | 836,567 | ||||||
Royal Dutch Shell plc, Class B | 28,559 | 621,297 | ||||||
1,792,509 | ||||||||
Food & Staples Retailing 0.1% | ||||||||
J Sainsbury plc | 8,399 | 37,646 | ||||||
Food, Beverage & Tobacco 0.3% | ||||||||
SABMiller plc | 4,163 | 61,898 | ||||||
Tate & Lyle plc | 22,991 | 85,760 | ||||||
147,658 | ||||||||
Insurance 1.3% | ||||||||
Aviva plc | 34,109 | 105,772 | ||||||
Jardine Lloyd Thompson Group plc | 3,215 | 20,194 | ||||||
Legal & General Group plc | 241,695 | 148,810 | ||||||
Old Mutual plc | 203,955 | 151,838 | ||||||
RSA Insurance Group plc | 54,169 | 101,013 | ||||||
527,627 | ||||||||
Media 0.8% | ||||||||
Informa plc | 4,016 | 15,130 | ||||||
WPP plc | 53,000 | 298,062 | ||||||
313,192 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 3.6% | ||||||||
AstraZeneca plc | 30,064 | 1,064,716 | ||||||
GlaxoSmithKline plc | 24,000 | 373,793 | ||||||
1,438,509 | ||||||||
Retailing 1.0% | ||||||||
Home Retail Group plc | 42,000 | 135,229 | ||||||
Kingfisher plc | 117,931 | 252,787 | ||||||
388,016 |
See financial notes 19
Laudus Rosenberg International Equity Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Software & Services 0.5% | ||||||||
Logica plc | 70,000 | 63,817 | ||||||
The Sage Group plc | 63,000 | 152,678 | ||||||
216,495 | ||||||||
Technology Hardware & Equipment 0.1% | ||||||||
Spectris plc | 4,625 | 26,673 | ||||||
Telecommunication Services 3.4% | ||||||||
BT Group plc | 406,454 | 453,464 | ||||||
Cable & Wireless plc | 114,000 | 227,977 | ||||||
Vodafone Group plc | 387,559 | 675,692 | ||||||
1,357,133 | ||||||||
Utilities 1.8% | ||||||||
Centrica plc | 216,000 | 705,095 | ||||||
International Power plc | 4,944 | 14,931 | ||||||
720,026 | ||||||||
7,667,456 | ||||||||
Total Common Stock (Cost $54,480,505) | 38,701,247 | |||||||
Other Investment Company 1.7% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 673,541 | 673,541 | ||||||
Total Other Investment Company (Cost $673,541) | 673,541 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $56,849,150 and the unrealized appreciation and depreciation were $486,140 and ($17,960,502), respectively, with a net unrealized depreciation of ($17,474,362). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $38,701,247 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees. |
* | Non-income producing security. | |
(a) | Bankrupt security/delisted. | |
(b) | Fair-valued by Management. | |
(c) | Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets. |
CDI — CHESS Depositary Interest
CVA — Dutch Certificate
Reg’d — Registered
REIT — Real Estate Investment Trust
20 See financial notes
Laudus Rosenberg International Equity Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $55,154,046) | $39,374,788 | |||||
Foreign currency, at value (cost $582,201) | 576,867 | |||||
Receivables: | ||||||
Investments sold | 241,168 | |||||
Dividends | 163,495 | |||||
Foreign tax reclaims | 74,234 | |||||
Fund shares sold | 11,603 | |||||
Interest | 151 | |||||
Prepaid expenses | + | 1,346 | ||||
Total assets | 40,443,652 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 474,641 | |||||
Fund shares redeemed | 28,682 | |||||
Investment adviser fees | 5,676 | |||||
Accrued expenses | + | 71,445 | ||||
Total liabilities | 580,444 | |||||
Net Assets | ||||||
Total assets | 40,443,652 | |||||
Total liabilities | − | 580,444 | ||||
Net assets | $39,863,208 | |||||
Net Assets by Source | ||||||
Capital received from investors | 89,966,027 | |||||
Net investment income not yet distributed | 115,733 | |||||
Net realized capital losses | (34,426,804 | ) | ||||
Net unrealized capital losses | (15,791,748 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $7,819,700 | 1,419,908 | $5.51 | |||||||||
Select Shares | $32,043,508 | 5,835,098 | $5.49 |
See financial notes 21
Laudus Rosenberg International Equity Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $344,806) | $3,380,284 | |||||
Interest | + | 10,428 | ||||
Total Investment Income | 3,390,712 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (32,496,557 | ) | ||||
Net realized losses on foreign currency transactions | + | (97,458 | ) | |||
Net realized losses | (32,594,015 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (22,472,497 | ) | ||||
Net unrealized losses on foreign currency translations | + | (16,053 | ) | |||
Net unrealized losses | (22,488,550 | ) | ||||
Expenses | ||||||
Investment adviser fees | 691,456 | |||||
Custodian fees | 145,967 | |||||
Accounting and administration fees | 77,911 | |||||
Professional fees | 44,162 | |||||
Distribution and shareholder services fees (Investor Shares) | 40,273 | |||||
Sub-Accounting fees (Investor Shares) | 25,797 | |||||
Registration fees | 24,200 | |||||
Transfer agent fees | 22,546 | |||||
Shareholder reports | 10,827 | |||||
Trustees’ fees | 4,895 | |||||
Interest expense | 3,499 | |||||
Other expenses | + | 13,116 | ||||
Total expenses | 1,104,649 | |||||
Expense reduction by adviser | − | 145,842 | ||||
Custody credits | − | 16 | ||||
Net expenses | 958,791 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 3,390,712 | |||||
Net expenses | − | 958,791 | ||||
Net investment income | 2,431,921 | |||||
Net realized losses | (32,594,015 | ) | ||||
Net unrealized losses | + | (22,488,550 | ) | |||
Decrease in net assets from operations | ($52,650,644 | ) |
22 See financial notes
Laudus Rosenberg International Equity Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/01/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $2,431,921 | $2,152,001 | ||||||||
Net realized gains (losses) | (32,594,015 | ) | 3,091,259 | |||||||
Net unrealized losses | + | (22,488,550 | ) | (12,929,808 | ) | |||||
Decrease in net assets from operations | (52,650,644 | ) | (7,686,548 | ) | ||||||
Distributions to Shareholders1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 515,226 | 361,620 | ||||||||
Select Shares | + | 1,891,028 | 2,381,553 | |||||||
Total distributions from net investment income | 2,406,254 | 2,743,173 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | 3,606 | 1,666,605 | ||||||||
Select Shares | + | 11,988 | 7,587,962 | |||||||
Total distributions from net realized gains | 15,594 | 9,254,567 | ||||||||
Total distributions | $2,421,848 | $11,997,740 |
Transactions in Fund Shares1 |
4/01/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 771,279 | $8,773,925 | 449,393 | $6,229,865 | ||||||||||||||
Select Shares | + | 1,399,274 | 10,217,255 | 4,161,569 | 55,041,800 | |||||||||||||
Total shares sold | 2,170,553 | $18,991,180 | 4,610,962 | $61,271,665 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 71,898 | $478,841 | 149,983 | $1,834,295 | ||||||||||||||
Select Shares | + | 280,139 | 1,857,319 | 474,171 | 5,789,629 | |||||||||||||
Total shares reinvested | 352,037 | $2,336,160 | 624,154 | $7,623,924 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (1,110,300 | ) | ($10,030,028 | ) | (3,447,172 | ) | ($45,082,165 | ) | ||||||||||
Select Shares | + | (4,271,762 | ) | (33,632,837 | ) | (1,244,671 | ) | (16,666,965 | ) | |||||||||
Total shares redeemed | (5,382,062 | ) | ($43,662,865 | ) | (4,691,843 | ) | ($61,749,130 | ) | ||||||||||
Net transactions in fund shares | (2,859,472 | ) | ($22,335,525 | ) | 543,273 | $7,146,459 | ||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/01/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 10,114,478 | $117,271,225 | 9,571,205 | $129,809,054 | ||||||||||||||
Total increase (decrease) | + | (2,859,472 | ) | (77,408,017 | ) | 543,273 | (12,537,829 | ) | ||||||||||
End of period | 7,255,006 | $39,863,208 | 10,114,478 | $117,271,225 | ||||||||||||||
Net investment income not yet distributed | $115,733 | $75,602 |
1 | Effective July 31, 2008 the Institutional Shares were redesignated as Select Shares. |
See financial notes 23
Laudus Rosenberg International Discovery Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 5/31/061– | ||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | |||||||||
Per-Share Data ($) | ||||||||||||
Net asset value at beginning of period | 11.43 | 12.04 | 10.00 | |||||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.17 | 2 | 0.11 | 2 | 0.06 | 2 | ||||||
Net realized and unrealized gains (losses) | (5.45 | ) | (0.16 | ) | 2.06 | |||||||
Total from investment operations | (5.28 | ) | (0.05 | ) | 2.12 | |||||||
Less distributions: | ||||||||||||
Distributions from net investment income | (0.11 | ) | (0.10 | ) | (0.06 | ) | ||||||
Distributions from net realized gains | — | (0.46 | ) | (0.02 | ) | |||||||
Total distributions | (0.11 | ) | (0.56 | ) | (0.08 | ) | ||||||
Net asset value at end of period | 6.04 | 11.43 | 12.04 | |||||||||
Total return (%) | (46.33 | ) | (0.51 | ) | 21.62 | 3 | ||||||
Ratios/Supplemental Data (%) | ||||||||||||
Ratios to average net assets: | ||||||||||||
Net operating expenses | 1.65 | 1.65 | 1.64 | 4 | ||||||||
Gross operating expenses | 1.86 | 1.81 | 2.03 | 4 | ||||||||
Net investment income (loss) | 1.90 | 0.89 | 0.75 | 4 | ||||||||
Portfolio turnover rate | 159 | 147 | 106 | 3 | ||||||||
Net assets, end of period ($ x 1,000) | 34,005 | 121,930 | 51,572 |
4/1/085– | 4/1/07– | 5/31/061– | ||||||||||
Select Shares | 3/31/09 | 3/31/08 | 3/31/07 | |||||||||
Per-Share Data ($) | ||||||||||||
Net asset value at beginning of period | 11.45 | 12.05 | 10.00 | |||||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.15 | 2 | 0.14 | 2 | 0.09 | 2 | ||||||
Net realized and unrealized gains (losses) | (5.42 | ) | (0.16 | ) | 2.06 | |||||||
Total from investment operations | (5.27 | ) | (0.02 | ) | 2.15 | |||||||
Less distributions: | ||||||||||||
Distributions from net investment income | (0.15 | ) | (0.12 | ) | (0.08 | ) | ||||||
Distributions from net realized gains | — | (0.46 | ) | (0.02 | ) | |||||||
Total distributions | (0.15 | ) | (0.58 | ) | (0.10 | ) | ||||||
Net asset value at end of period | 6.03 | 11.45 | 12.05 | |||||||||
Total return (%) | (46.20 | ) | (0.24 | ) | 21.90 | 3 | ||||||
Ratios/Supplemental Data (%) | ||||||||||||
Ratios to average net assets: | ||||||||||||
Net operating expenses | 1.35 | 1.35 | 1.34 | 4 | ||||||||
Gross operating expenses | 1.54 | 1.54 | 1.64 | 4 | ||||||||
Net investment income (loss) | 1.87 | 1.14 | 1.06 | 4 | ||||||||
Portfolio turnover rate | 159 | 147 | 106 | 3 | ||||||||
Net assets, end of period ($ x 1,000) | 182,191 | 139,643 | 19,173 |
1 Commencement of operations.
2 Calculated based on the average shares outstanding during the period.
3 Not annualized.
4 Annualized.
5 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
24 See financial notes
Laudus Rosenberg International Discovery Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
94 | .3% | Common Stock | 254,055,862 | 203,818,432 | ||||||||
2 | .5% | Preferred Stock | 6,551,902 | 5,416,304 | ||||||||
—% | Rights | — | 75,384 | |||||||||
1 | .3% | Other Investment Company | 2,758,462 | 2,758,462 | ||||||||
98 | .1% | Total Investments | 263,366,226 | 212,068,582 | ||||||||
1 | .9% | Other Assets and Liabilities, Net | 4,127,502 | |||||||||
100 | .0% | Net Assets | 216,196,084 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 94.3% of net assets | ||||||||
Argentina 0.1% | ||||||||
Telecommunication Services 0.1% | ||||||||
Telecom Argentina S.A. ADR * | 32,900 | 254,975 | ||||||
Australia 4.3% | ||||||||
Banks 0.0% | ||||||||
Bendigo Bank Ltd. | 900 | 5,117 | ||||||
Consumer Services 0.5% | ||||||||
Crown Ltd. | 219,800 | 975,695 | ||||||
Tatts Group Ltd. | 70,200 | 135,115 | ||||||
1,110,810 | ||||||||
Diversified Financials 0.0% | ||||||||
ASX Ltd. | 3,100 | 63,207 | ||||||
Energy 0.7% | ||||||||
Caltex Australia Ltd. | 53,298 | 331,137 | ||||||
Origin Energy Ltd. | 74,100 | 762,350 | ||||||
Santos Ltd. | 39,600 | 466,088 | ||||||
1,559,575 | ||||||||
Food & Staples Retailing 0.1% | ||||||||
Metcash Ltd. | 51,800 | 145,886 | ||||||
Food, Beverage & Tobacco 1.5% | ||||||||
Coca-Cola Amatil Ltd. | 145,400 | 876,230 | ||||||
Foster’s Group Ltd. | 445,500 | 1,566,751 | ||||||
Lion Nathan Ltd. | 122,200 | 684,680 | ||||||
3,127,661 | ||||||||
Health Care Equipment & Services 0.4% | ||||||||
Cochlear Ltd. | 11,500 | 401,025 | ||||||
Ramsay Health Care Ltd | 56,400 | 385,528 | ||||||
786,553 | ||||||||
Insurance 0.3% | ||||||||
Insurance Australia Group Ltd. | 240,797 | 584,822 | ||||||
Suncorp-Metway Ltd. | 16,900 | 70,581 | ||||||
655,403 | ||||||||
Materials 0.0% | ||||||||
Orica Ltd. | 6,600 | 68,080 | ||||||
Real Estate 0.3% | ||||||||
CFS Retail Property Trust | 241,500 | 274,396 | ||||||
Dexus Property Group | 543,186 | 282,981 | ||||||
Goodman Group | 454,000 | 103,056 | ||||||
660,433 | ||||||||
Utilities 0.5% | ||||||||
AGL Energy Ltd. | 105,600 | 1,095,475 | ||||||
9,278,200 | ||||||||
Austria 1.1% | ||||||||
Capital Goods 0.2% | ||||||||
Strabag SE | 26,218 | 514,384 | ||||||
Energy 0.0% | ||||||||
OMV AG | 1,101 | 36,833 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Agrana Beteiligungs AG | 570 | 34,792 | ||||||
Telecommunication Services 0.6% | ||||||||
Telekom Austria AG | 84,700 | 1,282,260 | ||||||
Utilities 0.3% | ||||||||
EVN AG | 42,500 | 611,963 | ||||||
2,480,232 | ||||||||
Belgium 2.0% | ||||||||
Diversified Financials 0.0% | ||||||||
Banque Nationale de Belgique | 18 | 52,584 | ||||||
Food & Staples Retailing 0.7% | ||||||||
Delhaize Group | 22,200 | 1,440,645 | ||||||
Materials 0.7% | ||||||||
Solvay S.A. | 7,956 | 557,964 | ||||||
Tessenderlo Chemie N.V. | 8,400 | 255,615 | ||||||
Umicore | 39,600 | 731,822 | ||||||
1,545,401 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.6% | ||||||||
UCB SA | 41,600 | 1,225,527 | ||||||
4,264,157 | ||||||||
Bermuda 1.3% | ||||||||
Capital Goods 0.1% | ||||||||
Jardine Strategic Holdings Ltd. | 7,000 | 69,380 | ||||||
Noble Group Ltd. | 26,000 | 20,352 | ||||||
89,732 | ||||||||
Consumer Durables & Apparel 0.3% | ||||||||
Yue Yuen Industrial (Holdings) Ltd. | 300,000 | 685,211 | ||||||
Consumer Services 0.0% | ||||||||
Cafe De Coral Holdings Ltd. | 26,000 | 51,019 |
See financial notes 25
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Star Cruises Ltd. * | 138,000 | 9,435 | ||||||
60,454 | ||||||||
Food & Staples Retailing 0.3% | ||||||||
Dairy Farm International Holdings Ltd. | 150,300 | 664,492 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
First Pacific Co., Ltd. | 290,000 | 99,408 | ||||||
People’s Food Holdings Ltd. | 104,000 | 33,475 | ||||||
132,883 | ||||||||
Insurance 0.2% | ||||||||
Hiscox Ltd. | 104,000 | 460,160 | ||||||
Materials 0.1% | ||||||||
Huabao International Holdings Ltd. | 325,000 | 267,289 | ||||||
Real Estate 0.1% | ||||||||
Hongkong Land Holdings Ltd. | 94,000 | 214,165 | ||||||
SRE Group Ltd. | 828,000 | 63,959 | ||||||
278,124 | ||||||||
Retailing 0.1% | ||||||||
Esprit Holdings Ltd. | 30,500 | 155,622 | ||||||
Technology Hardware & Equipment 0.0% | ||||||||
Digital China Holdings Ltd. | 75,000 | 31,369 | ||||||
2,825,336 | ||||||||
Brazil 1.1% | ||||||||
Food, Beverage & Tobacco 0.2% | ||||||||
Souza Cruz S.A. | 21,200 | 399,827 | ||||||
Household & Personal Products 0.2% | ||||||||
Natura Cosmeticos S.A. | 36,800 | 359,315 | ||||||
Materials 0.3% | ||||||||
Bradespar S.A. | 58,700 | 503,558 | ||||||
Companhia Siderurgica Nacional S.A. | 17,300 | 256,545 | ||||||
760,103 | ||||||||
Utilities 0.4% | ||||||||
Cia de Gas de Sao Paulo | 9,100 | 105,917 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo * | 37,000 | 411,510 | ||||||
Companhia de Saneamento de Minas Gerais - Copasa MG * | 17,300 | 144,828 | ||||||
EDP - Energias do Brasil S.A. | 26,900 | 281,205 | ||||||
943,460 | ||||||||
2,462,705 | ||||||||
Canada 5.3% | ||||||||
Banks 0.4% | ||||||||
National Bank of Canada | 29,490 | 941,678 | ||||||
Capital Goods 0.0% | ||||||||
SNC-Lavalin Group, Inc. | 2,400 | 61,009 | ||||||
Commercial & Professional Supplies 0.0% | ||||||||
Stantec, Inc. * | 2,000 | 36,167 | ||||||
Consumer Services 0.1% | ||||||||
Tim Hortons, Inc. | 5,400 | 138,812 | ||||||
Energy 0.5% | ||||||||
Advantage Energy Income Fund | 20,200 | 49,186 | ||||||
Mullen Group Income Fund | 29,000 | 209,771 | ||||||
Pembina Pipeline Income Fund | 4,600 | 51,006 | ||||||
Penn West Energy Trust | 51,600 | 486,206 | ||||||
Provident Energy Trust | 62,700 | 239,203 | ||||||
Savanna Energy Services Corp. | 23,100 | 93,441 | ||||||
1,128,813 | ||||||||
Food & Staples Retailing 1.2% | ||||||||
Alimentation Couche-Tard, Inc., Class B | 26,600 | 278,912 | ||||||
Empire Co., Ltd., Class A | 15,330 | 644,424 | ||||||
George Weston Ltd. | 16,400 | 760,946 | ||||||
Loblaw Cos., Ltd. | 2,000 | 49,730 | ||||||
Metro, Inc., Class A | 29,000 | 871,748 | ||||||
2,605,760 | ||||||||
Insurance 0.1% | ||||||||
Industrial Alliance Insurance & Financial Services, Inc. | 4,680 | 73,608 | ||||||
ING Canada, Inc. | 400 | 11,421 | ||||||
85,029 | ||||||||
Materials 0.9% | ||||||||
Agnico-Eagle Mines Ltd. | 10,200 | 586,290 | ||||||
Agrium, Inc. | 4,850 | 175,759 | ||||||
Canfor Corp. * | 54,200 | 206,156 | ||||||
IAMGOLD Corp. | 4,660 | 40,213 | ||||||
Kinross Gold Corp. | 1,170 | 21,260 | ||||||
West Fraser Timber Co., Ltd. | 15,900 | 281,731 | ||||||
Yamana Gold, Inc. | 63,890 | 596,435 | ||||||
1,907,844 | ||||||||
Media 0.3% | ||||||||
Cogeco Cable, Inc. | 1,400 | 34,978 | ||||||
Quebecor Inc | 24,500 | 348,806 | ||||||
Shaw Communications, Inc., Class B | 13,550 | 206,560 | ||||||
590,344 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||||||||
Biovail Corp. | 41,500 | 451,273 | ||||||
Software & Services 0.5% | ||||||||
CGI Group, Inc., Class A * | 93,300 | 753,326 | ||||||
Open Text Corp. * | 11,000 | 380,132 | ||||||
1,133,458 | ||||||||
Technology Hardware & Equipment 0.1% | ||||||||
Celestica, Inc. * | 55,610 | 196,276 | ||||||
Transportation 0.1% | ||||||||
Canadian Pacific Railway Ltd. | 6,100 | 181,529 | ||||||
Utilities 0.9% | ||||||||
ATCO Ltd., Class I | 22,900 | 653,870 | ||||||
Canadian Utilities Ltd., Class A | 24,000 | 699,556 | ||||||
Fortis, Inc. | 34,570 | 607,059 | ||||||
1,960,485 | ||||||||
11,418,477 | ||||||||
Cayman Islands 0.9% | ||||||||
Capital Goods 0.0% | ||||||||
China State Construction International Holdings Ltd. | 568,000 | 98,361 |
26 See financial notes
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Consumer Durables & Apparel 0.1% | ||||||||
Shenzhou International Group | 539,000 | 138,087 | ||||||
Food, Beverage & Tobacco 0.5% | ||||||||
Chaoda Modern Agriculture (Holdings) Ltd. | 830,608 | 495,038 | ||||||
Tingyi (Cayman Islands) Holding Corp. | 468,000 | 541,665 | ||||||
1,036,703 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||||||||
China Shineway Pharmaceutical Group Ltd. | 58,000 | 32,899 | ||||||
Telecommunication Services 0.2% | ||||||||
Hutchison Telecommunications International Ltd. | 1,007,000 | 315,008 | ||||||
Transportation 0.1% | ||||||||
Hopewell Highway Infrastructure Ltd. | 404,000 | 227,922 | ||||||
1,848,980 | ||||||||
Chile 0.5% | ||||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Embotelladora Andina S.A. Series A ADR | 1,817 | 22,295 | ||||||
Transportation 0.2% | ||||||||
Lan Airlines S.A. ADR | 46,200 | 386,232 | ||||||
Utilities 0.3% | ||||||||
Empresa Nacional de Electricidad S.A. ADR | 200 | 7,500 | ||||||
Enersis S.A. ADR | 46,500 | 702,150 | ||||||
709,650 | ||||||||
1,118,177 | ||||||||
China 1.8% | ||||||||
Automobiles & Components 0.3% | ||||||||
Dongfeng Motor Group Co., Ltd., Class H | 1,342,000 | 693,441 | ||||||
Capital Goods 0.1% | ||||||||
China Communications Construction Co., Ltd., Class H | 158,000 | 173,385 | ||||||
Energy 0.3% | ||||||||
Yanzhou Coal Mining Co., Ltd., Class H | 828,000 | 592,784 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Yantai Changyu Pioneer Wine Co., Ltd., Class B | 57,800 | 210,522 | ||||||
Materials 0.6% | ||||||||
China Bluechemical Ltd., Class H | 828,000 | 453,006 | ||||||
CSG Holding Co Ltd | 509,100 | 411,477 | ||||||
Shandong Chenming Paper Holdings, Ltd., Class B | 891,300 | 489,176 | ||||||
1,353,659 | ||||||||
Transportation 0.4% | ||||||||
China COSCO Holdings Co., Ltd., Class H | 175,000 | 114,017 | ||||||
Guangshen Railway Co., Ltd., Class H | 804,000 | 260,454 | ||||||
Zhejiang Expressway Co., Ltd., Class H | 622,000 | 453,278 | ||||||
827,749 | ||||||||
3,851,540 | ||||||||
Denmark 1.2% | ||||||||
Food, Beverage & Tobacco 0.4% | ||||||||
Carlsberg A/S, Class B | 7,600 | 312,083 | ||||||
Danisco A/S | 19,198 | 575,282 | ||||||
887,365 | ||||||||
Materials 0.5% | ||||||||
Novozymes A/S, Class B | 13,600 | 983,851 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||||||||
H. Lundbeck A/S | 40,600 | 692,692 | ||||||
2,563,908 | ||||||||
Egypt 0.8% | ||||||||
Telecommunication Services 0.8% | ||||||||
Egyptian Company for Mobile Services (MobiNil) | 21,000 | 547,114 | ||||||
Orascom Telecom Holding SAE | 255,000 | 1,157,770 | ||||||
1,704,884 | ||||||||
Finland 1.6% | ||||||||
Capital Goods 0.5% | ||||||||
KCI Konecranes Oyj | 19,992 | 333,960 | ||||||
Wartsila Corp. Oyj | 36,400 | 767,659 | ||||||
1,101,619 | ||||||||
Diversified Financials 0.0% | ||||||||
Pohjola Bank plc | 3,947 | 23,204 | ||||||
Insurance 0.1% | ||||||||
Sampo Oyj, Class A | 10,500 | 154,826 | ||||||
Materials 0.4% | ||||||||
Stora Enso Oyj, Class R * | 183,147 | 648,747 | ||||||
UPM-Kymmene Oyj | 23,463 | 135,415 | ||||||
784,162 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||||||||
Orion Oyj, Class B | 52,500 | 759,726 | ||||||
Telecommunication Services 0.3% | ||||||||
Elisa Oyj | 50,713 | 739,217 | ||||||
3,562,754 | ||||||||
France 2.9% | ||||||||
Capital Goods 0.3% | ||||||||
Thales S.A. | 13,200 | 499,844 | ||||||
Commercial & Professional Supplies 0.3% | ||||||||
Teleperformance | 22,688 | 624,099 | ||||||
Consumer Durables & Apparel 0.5% | ||||||||
Christian Dior S.A. | 11,399 | 624,399 | ||||||
Nexity | 24,000 | 512,537 | ||||||
1,136,936 | ||||||||
Consumer Services 0.2% | ||||||||
Sodexo | 10,500 | 478,274 |
See financial notes 27
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Media 0.3% | ||||||||
Havas S.A. | 6,539 | 16,844 | ||||||
M6 Metropole Television | 40,600 | 662,518 | ||||||
679,362 | ||||||||
Software & Services 0.8% | ||||||||
Atos Origin S.A. * | 28,500 | 731,172 | ||||||
Cap Gemini | 27,600 | 887,039 | ||||||
1,618,211 | ||||||||
Technology Hardware & Equipment 0.2% | ||||||||
Alcatel-Lucent * | 251,914 | 470,958 | ||||||
Transportation 0.3% | ||||||||
Air France-KLM | 78,000 | 693,537 | ||||||
6,201,221 | ||||||||
Germany 1.7% | ||||||||
Capital Goods 0.7% | ||||||||
Bilfinger Berger AG | 15,959 | 600,181 | ||||||
Hochtief AG | 19,500 | 734,641 | ||||||
Tognum AG | 2,706 | 23,471 | ||||||
1,358,293 | ||||||||
Food, Beverage & Tobacco 0.5% | ||||||||
Suedzucker AG | 58,000 | 1,118,854 | ||||||
Software & Services 0.3% | ||||||||
Software AG | 9,000 | 638,770 | ||||||
Transportation 0.2% | ||||||||
Deutsche Lufthansa AG - Reg’d | 44,471 | 481,784 | ||||||
3,597,701 | ||||||||
Greece 0.6% | ||||||||
Consumer Services 0.2% | ||||||||
OPAP S.A. | 18,190 | 480,841 | ||||||
Energy 0.2% | ||||||||
Hellenic Petroleum S.A. | 34,725 | 331,726 | ||||||
Telecommunication Services 0.2% | ||||||||
Hellenic Telecommunications Organization S.A. (OTE) | 32,000 | 479,669 | ||||||
1,292,236 | ||||||||
Hong Kong 1.1% | ||||||||
Banks 0.2% | ||||||||
Industrial & Commercial Bank of China (Asia) Ltd. | 280,000 | 297,766 | ||||||
The Bank of East Asia Ltd. | 31,760 | 61,369 | ||||||
359,135 | ||||||||
Capital Goods 0.3% | ||||||||
Shanghai Industrial Holdings Ltd. | 215,000 | 596,776 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
China Agri-Industries Holdings Ltd. * | 279,000 | 132,813 | ||||||
Media 0.1% | ||||||||
Television Broadcasts Ltd. | 66,000 | 211,105 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||||||||
China Pharmaceutical Group Ltd. | 684,000 | 273,444 | ||||||
Real Estate 0.3% | ||||||||
China Overseas Land & Investment Ltd. | 182,000 | 285,245 | ||||||
SEA Holdings Ltd. | 36,000 | 10,776 | ||||||
The Wharf (Holdings) Ltd. | 188,000 | 468,087 | ||||||
764,108 | ||||||||
Retailing 0.0% | ||||||||
Wing On Co. International Ltd. | 37,000 | 30,071 | ||||||
Utilities 0.0% | ||||||||
China Resources Power Holdings Co., Ltd. | 20,000 | 42,000 | ||||||
2,409,452 | ||||||||
Hungary 0.3% | ||||||||
Telecommunication Services 0.3% | ||||||||
Magyar Telekom Telecommunications plc | 294,000 | 680,686 | ||||||
India 2.0% | ||||||||
Automobiles & Components 0.1% | ||||||||
Hero Honda Motors Ltd. | 1,700 | 36,059 | ||||||
Maruti Suzuki India Ltd. | 6,780 | 104,466 | ||||||
140,525 | ||||||||
Banks 0.5% | ||||||||
Bank of India | 45,990 | 199,972 | ||||||
Bank of Maharashtra Ltd. | 237,160 | 97,672 | ||||||
Corporation Bank | 11,060 | 38,962 | ||||||
Dena Bank Ltd. | 128,902 | 82,481 | ||||||
HDFC Bank Ltd. | 4,160 | 80,493 | ||||||
Housing Development Finance Corp., Ltd. | 11,730 | 326,125 | ||||||
Indian Bank | 40,230 | 65,128 | ||||||
Syndicate Bank | 230,390 | 218,907 | ||||||
1,109,740 | ||||||||
Capital Goods 0.1% | ||||||||
Bharat Electronics Ltd. | 7,110 | 125,053 | ||||||
SKF India Ltd. | 23,662 | 70,301 | ||||||
195,354 | ||||||||
Diversified Financials 0.0% | ||||||||
JM Financial Ltd. | 252,852 | 102,486 | ||||||
Energy 0.1% | ||||||||
Bongaigaon Refinery & Petrochemicals Ltd. | 48,220 | 39,335 | ||||||
The Great Eastern Shipping Co., Ltd. | 80,728 | 303,882 | ||||||
343,217 | ||||||||
Household & Personal Products 0.1% | ||||||||
Hindustan Unilever Ltd. | 30,000 | 139,500 | ||||||
Materials 0.6% | ||||||||
Birla Corp., Ltd. | 37,050 | 128,499 | ||||||
Coromandel Fertilisers Ltd. | 2,280 | 4,050 | ||||||
Grasim Industries Ltd. | 2,050 | 63,864 | ||||||
Gujarat Alkalies & Chemicals Ltd. | 34,950 | 40,791 | ||||||
Gujarat Fluorochemicals Ltd. | 2,200 | 2,809 | ||||||
Gujarat Narmada Valley Fertilizers Co., Ltd. | 80,930 | 96,977 |
28 See financial notes
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Gujarat State Fertilizers & Chemicals Ltd. | 37,210 | 64,839 | ||||||
Hindalco Industries Ltd. | 109,322 | 113,246 | ||||||
Hindustan Zinc Ltd. | 27,156 | 242,472 | ||||||
JSL Ltd. | 40,260 | 31,050 | ||||||
National Aluminium Co., Ltd. | 5,480 | 23,093 | ||||||
Pidilite Industries Ltd. | 19,746 | 33,131 | ||||||
Steel Authority of India Ltd. | 39,790 | 76,226 | ||||||
Sterlite Industries (India) Ltd. | 17,150 | 120,895 | ||||||
Tata Steel Ltd. | 7,542 | 30,890 | ||||||
Ultra Tech Cement Ltd. | 14,940 | 162,465 | ||||||
1,235,297 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||||||||
Dr. Reddy’s Laboratories | 15,000 | 144,935 | ||||||
Ipca Laboratories Ltd. | 6,072 | 39,566 | ||||||
Sun Pharmaceutical Industries Ltd. | 9,016 | 198,465 | ||||||
Wockhardt Ltd. | 5,390 | 9,133 | ||||||
392,099 | ||||||||
Software & Services 0.0% | ||||||||
HCL Technologies Ltd. | 51,400 | 104,733 | ||||||
Transportation 0.1% | ||||||||
Container Corp. of India Ltd. | 3,550 | 50,360 | ||||||
Shipping Corp. of India Ltd. | 100,495 | 152,666 | ||||||
203,026 | ||||||||
Utilities 0.2% | ||||||||
Gail India Ltd. | 93,900 | 451,296 | ||||||
4,417,273 | ||||||||
Indonesia 0.4% | ||||||||
Automobiles & Components 0.0% | ||||||||
PT Astra International Tbk | 73,000 | 90,363 | ||||||
Banks 0.3% | ||||||||
PT Bank Central Asia Tbk | 122,000 | 32,697 | ||||||
PT Bank Mandiri | 296,500 | 56,161 | ||||||
PT Bank Rakyat Indonesia | 1,216,000 | 443,220 | ||||||
532,078 | ||||||||
Food, Beverage & Tobacco 0.0% | ||||||||
PT Hanjaya Mandala Sampoerna Tbk | 12,600 | 11,812 | ||||||
Household & Personal Products 0.1% | ||||||||
PT Unilever Indonesia Tbk | 379,000 | 261,466 | ||||||
895,719 | ||||||||
Israel 0.9% | ||||||||
Banks 0.2% | ||||||||
Mizrahi Tefahot Bank Ltd. | 93,000 | 449,319 | ||||||
Telecommunication Services 0.7% | ||||||||
Bezeq Israeli Telecommunication Corp., Ltd. | 637,000 | 999,323 | ||||||
Partner Communications Co., Ltd. | 32,000 | 482,324 | ||||||
1,481,647 | ||||||||
1,930,966 | ||||||||
Italy 2.7% | ||||||||
Automobiles & Components 0.2% | ||||||||
Pirelli & C. S.p.A. * | 1,603,609 | 374,228 | ||||||
Banks 1.1% | ||||||||
Banca Carige S.p.A. (Cassa di Risparmio di Genova e Imperia) | 238,551 | 781,448 | ||||||
Banca Piccolo Credito Valtellinese Scarl | 45,503 | 368,611 | ||||||
Banca Popolare di Milano Scarl | 135,184 | 672,389 | ||||||
Banco Popolare Societa Cooperativa * | 123,094 | 564,922 | ||||||
Unione di Banche Italiane S.c.p.A. | 5,532 | 60,914 | ||||||
2,448,284 | ||||||||
Capital Goods 0.1% | ||||||||
Finmeccanica S.p.A. | 8,929 | 111,136 | ||||||
Consumer Services 0.0% | ||||||||
Autogrill S.p.A. * | 4,421 | 25,467 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Davide Campari - Milano S.p.A. | 28,577 | 181,350 | ||||||
Insurance 0.5% | ||||||||
Fondiaria - Sai S.p.A. | 36,600 | 427,783 | ||||||
Milano Assicurazioni S.p.A. | 135,751 | 312,174 | ||||||
Unipol Gruppo Finanziario S.p.A. * | 401,606 | 355,603 | ||||||
1,095,560 | ||||||||
Real Estate 0.0% | ||||||||
Beni Stabili S.p.A. | 4,544 | 2,502 | ||||||
Telecommunication Services 0.3% | ||||||||
Fastweb * | 30,800 | 626,678 | ||||||
Utilities 0.4% | ||||||||
ACEA S.p.A. | 63,000 | 752,382 | ||||||
Edison S.p.A. | 100,524 | 108,774 | ||||||
861,156 | ||||||||
5,726,361 | ||||||||
Japan 24.9% | ||||||||
Automobiles & Components 0.9% | ||||||||
Fuji Heavy Industries Ltd. | 379,000 | 1,261,405 | ||||||
Yamaha Motor Co., Ltd. | 87,500 | 785,035 | ||||||
2,046,440 | ||||||||
Banks 4.3% | ||||||||
Chuo Mitsui Trust Holdings, Inc. | 409,000 | 1,272,220 | ||||||
Fukuoka Financial Group, Inc. | 407,000 | 1,253,092 | ||||||
Sapporo Hokuyo Holdings, Inc. * | 295,000 | 836,508 | ||||||
The 77 Bank Ltd. | 253,000 | 1,262,014 | ||||||
The Bank of Kyoto Ltd. | 151,000 | 1,282,492 | ||||||
The Gunma Bank Ltd. | 202,000 | 1,099,148 | ||||||
The Hachijuni Bank Ltd. | 216,000 | 1,260,125 | ||||||
The Nishi-Nippon City Bank Ltd. | 429,000 | 939,653 | ||||||
9,205,252 | ||||||||
Commercial & Professional Supplies 0.4% | ||||||||
Dai Nippon Printing Co., Ltd. | 105,000 | 967,711 | ||||||
Consumer Durables & Apparel 0.1% | ||||||||
Nikon Corp. | 15,000 | 170,716 | ||||||
Energy 0.1% | ||||||||
Idemitsu Kosan Co., Ltd. | 500 | 37,772 |
See financial notes 29
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Showa Shell Sekiyu K.K. | 7,800 | 71,638 | ||||||
109,410 | ||||||||
Food & Staples Retailing 1.9% | ||||||||
Aeon Co., Ltd. | 226,800 | 1,499,150 | ||||||
FamilyMart Co., Ltd. | 41,700 | 1,269,746 | ||||||
Lawson, Inc. | 30,800 | 1,279,428 | ||||||
4,048,324 | ||||||||
Food, Beverage & Tobacco 4.0% | ||||||||
Ajinomoto Co., Inc. | 203,000 | 1,439,114 | ||||||
Asahi Breweries Ltd. | 122,600 | 1,470,494 | ||||||
Kikkoman Corp. | 5,000 | 42,165 | ||||||
Nippon Meat Packers, Inc. | 115,000 | 1,208,856 | ||||||
Nisshin Seifun Group, Inc. | 114,000 | 1,228,282 | ||||||
Nissin Foods Holdings Co., Ltd. | 39,900 | 1,181,442 | ||||||
Yakult Honsha Co., Ltd. | 50,200 | 898,260 | ||||||
Yamazaki Baking Co., Ltd. | 102,000 | 1,098,951 | ||||||
8,567,564 | ||||||||
Health Care Equipment & Services 0.6% | ||||||||
Suzuken Co., Ltd. | 46,800 | 1,227,606 | ||||||
Household & Personal Products 0.7% | ||||||||
Shiseido Co., Ltd. | 109,000 | 1,598,051 | ||||||
Insurance 0.6% | ||||||||
NIPPONKOA Insurance Co., Ltd. | 219,000 | 1,268,010 | ||||||
Materials 2.8% | ||||||||
Kaneka Corp. | 248,000 | 1,226,153 | ||||||
Mitsui Chemicals, Inc. | 492,000 | 1,204,308 | ||||||
Nippon Paper Group, Inc. | 45,500 | 1,107,763 | ||||||
Sumitomo Chemical Co., Ltd. | 334,000 | 1,148,266 | ||||||
Teijin Ltd. | 604,000 | 1,319,709 | ||||||
6,006,199 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 4.1% | ||||||||
Dainippon Sumitomo Pharma Co., Ltd. | 140,000 | 1,168,620 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 43,600 | 1,347,056 | ||||||
Kyowa Hakko Kirin Co., Ltd. | 160,000 | 1,364,624 | ||||||
Mitsubishi Tanabe Pharma Corp. | 105,000 | 1,045,306 | ||||||
Ono Pharmaceutical Co., Ltd. | 32,600 | 1,430,770 | ||||||
Santen Pharmaceutical Co., Ltd. | 20,900 | 582,941 | ||||||
Shionogi & Co., Ltd. | 37,000 | 637,760 | ||||||
Taisho Pharmaceutical Co., Ltd. | 69,000 | 1,286,346 | ||||||
8,863,423 | ||||||||
Retailing 0.4% | ||||||||
Aoyama Trading Co., Ltd. | 8,400 | 110,898 | ||||||
Marui Group Co., Ltd. | 144,000 | 774,059 | ||||||
Takashimaya Co., Ltd. | 9,000 | 52,156 | ||||||
937,113 | ||||||||
Software & Services 0.6% | ||||||||
Nomura Research Institute Ltd. | 81,200 | 1,274,620 | ||||||
Technology Hardware & Equipment 1.4% | ||||||||
NEC Corp. * | 422,000 | 1,147,736 | ||||||
OMRON Corp. | 42,400 | 502,905 | ||||||
Seiko Epson Corp. | 72,700 | 999,978 | ||||||
Tdk Corp. | 8,800 | 332,638 | ||||||
2,983,257 | ||||||||
Transportation 1.4% | ||||||||
All Nippon Airways Co., Ltd. | 397,000 | 1,553,133 | ||||||
West Japan Railway Co. | 500 | 1,585,460 | ||||||
3,138,593 | ||||||||
Utilities 0.6% | ||||||||
Electric Power Development Co., Ltd. | 45,600 | 1,359,996 | ||||||
Hokkaido Electric Power Co., Inc. | 1,100 | 22,119 | ||||||
1,382,115 | ||||||||
53,794,404 | ||||||||
Luxembourg 0.0% | ||||||||
Household & Personal Products 0.0% | ||||||||
Oriflame Cosmetics S.A. SDR | 3,025 | 94,446 | ||||||
Malaysia 1.0% | ||||||||
Banks 0.5% | ||||||||
Hong Leong Bank Berhad | 165,500 | 243,244 | ||||||
Hong Leong Financial Group Berhad | 126,500 | 162,497 | ||||||
Malayan Banking Berhad | 505,000 | 535,274 | ||||||
941,015 | ||||||||
Capital Goods 0.1% | ||||||||
Hap Seng Consolidated Berhad | 295,200 | 154,264 | ||||||
MMC Corp. Berhad | 100,000 | 38,949 | ||||||
193,213 | ||||||||
Consumer Services 0.0% | ||||||||
Genting Berhad | 65,000 | 65,615 | ||||||
Diversified Financials 0.0% | ||||||||
Multi-Purpose Holdings Bhd | 18,000 | 5,479 | ||||||
Energy 0.0% | ||||||||
Petronas Dagangan Berhad | 15,000 | 32,522 | ||||||
Food, Beverage & Tobacco 0.2% | ||||||||
British American Tobacco Malaysia Berhad | 7,500 | 93,665 | ||||||
IOI Corp., Berhad | 89,000 | 92,914 | ||||||
PPB Group Berhad | 95,000 | 255,535 | ||||||
442,114 | ||||||||
Materials 0.0% | ||||||||
Lion Industries Corp. Berhad | 440,000 | 73,689 | ||||||
Titan Chemicals Corp. Berhad | 10,000 | 1,333 | ||||||
75,022 | ||||||||
Utilities 0.2% | ||||||||
Tenaga Nasional Berhad | 43,000 | 71,968 | ||||||
YTL Corp., Berhad | 52,000 | 99,237 | ||||||
YTL Power International Berhad | 518,000 | 272,715 | ||||||
443,920 | ||||||||
2,198,900 | ||||||||
Mexico 1.5% | ||||||||
Banks 0.2% | ||||||||
Grupo Financiero Banorte S.A.B. de C.V., Class O | 362,300 | 480,594 | ||||||
Food & Staples Retailing 0.0% | ||||||||
Grupo Gigante S.A. de C.V., Class B | 71,800 | 56,999 |
30 See financial notes
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Food, Beverage & Tobacco 0.9% | ||||||||
Coca-Cola Femsa S.A.B. de C.V. (Femsa), Series L | 126,900 | 430,734 | ||||||
Embotelladoras Arca S.A. | 110,600 | 192,701 | ||||||
Grupo Bimbo S.A.B. de C.V., Series A | 119,500 | 447,123 | ||||||
Grupo Continental, S.A.B. | 141,900 | 229,304 | ||||||
Grupo Modelo, S.A. de C.V., Series C | 194,800 | 589,970 | ||||||
1,889,832 | ||||||||
Materials 0.3% | ||||||||
Grupo Mexico S.A.B. de C.V., Series B | 867,600 | 632,095 | ||||||
Media 0.0% | ||||||||
Grupo Televisa S.A. | 16,300 | 44,303 | ||||||
Retailing 0.1% | ||||||||
Grupo Elektra, S.A. de C.V. | 2,600 | 86,306 | ||||||
3,190,129 | ||||||||
Netherlands 2.0% | ||||||||
Capital Goods 0.2% | ||||||||
Imtech N.V. | 33,758 | 464,138 | ||||||
Commercial & Professional Supplies 0.4% | ||||||||
Randstad Holding N.V. * | 48,261 | 818,716 | ||||||
Food, Beverage & Tobacco 0.4% | ||||||||
Nutreco Holding N.V. | 21,417 | 766,847 | ||||||
Materials 0.6% | ||||||||
James Hardie Industries N.V. CDI | 165,894 | 485,410 | ||||||
Koninklijke DSM N.V. | 32,400 | 852,529 | ||||||
1,337,939 | ||||||||
Semiconductors & Semiconductor Equipment 0.3% | ||||||||
STMicroelectronics N.V. | 134,761 | 674,122 | ||||||
Transportation 0.1% | ||||||||
TNT N.V. | 9,995 | 171,318 | ||||||
4,233,080 | ||||||||
New Zealand 0.3% | ||||||||
Materials 0.1% | ||||||||
Nufarm Ltd. | 38,611 | 304,689 | ||||||
Utilities 0.2% | ||||||||
TrustPower Ltd. | 16,031 | 64,502 | ||||||
Vector Ltd. | 230,400 | 299,700 | ||||||
364,202 | ||||||||
668,891 | ||||||||
Papua New Guinea 0.1% | ||||||||
Materials 0.1% | ||||||||
Lihir Gold Ltd. * | 107,400 | 242,991 | ||||||
Philippines 0.3% | ||||||||
Telecommunication Services 0.3% | ||||||||
Globe Telecom, Inc. | 17,000 | 294,095 | ||||||
Philippine Long Distance Telephone Co. | 1,000 | 44,711 | ||||||
Pilipino Telephone Corp. | 1,532,000 | 269,102 | ||||||
607,908 | ||||||||
Poland 0.9% | ||||||||
Energy 0.7% | ||||||||
Polski Koncern Naftowy Orlen S.A. | 132,000 | 910,241 | ||||||
Polskie Gornictwo Naftowe I Gazownictwo S.A. | 646,000 | 625,790 | ||||||
1,536,031 | ||||||||
Telecommunication Services 0.2% | ||||||||
Telekomunikacja Polska S.A. | 87,000 | 471,236 | ||||||
2,007,267 | ||||||||
Portugal 0.5% | ||||||||
Materials 0.0% | ||||||||
Semapa - Sociedade de Investimento e Gestao, SGPS, S.A. | 4,584 | 38,640 | ||||||
Telecommunication Services 0.2% | ||||||||
Portugal Telecom SGPS S.A. - Reg’d | 56,028 | 432,813 | ||||||
Utilities 0.3% | ||||||||
Redes Energeticas Nacionais S.A. | 142,520 | 595,116 | ||||||
1,066,569 | ||||||||
Republic of Korea 4.8% | ||||||||
Automobiles & Components 0.0% | ||||||||
Hyundai Mobis | 1,590 | 92,336 | ||||||
Banks 0.1% | ||||||||
Hana Financial Group, Inc. | 10,000 | 152,363 | ||||||
Capital Goods 1.1% | ||||||||
Doosan Corp. | 320 | 23,363 | ||||||
Hyundai Engineering & Construction Co., Ltd. | 21,950 | 946,168 | ||||||
LG Corp. | 17,910 | 645,303 | ||||||
LS Corp. | 8,120 | 461,524 | ||||||
Samsung C&T Corp. | 3,850 | 111,736 | ||||||
Samsung Heavy Industries Co., Ltd. | 5,710 | 107,149 | ||||||
SK Holdings Co., Ltd. | 1,090 | 85,496 | ||||||
2,380,739 | ||||||||
Commercial & Professional Supplies 0.0% | ||||||||
S1 Corp. | 1,810 | 60,878 | ||||||
Consumer Durables & Apparel 0.0% | ||||||||
Youngone Corp. | 15,880 | 99,946 | ||||||
Consumer Services 0.3% | ||||||||
Kangwon Land, Inc. | 62,830 | 628,078 | ||||||
Diversified Financials 0.0% | ||||||||
Shinyoung Securities Co., Ltd. * | 3,590 | 94,914 | ||||||
Energy 0.1% | ||||||||
SK Energy Co., Ltd. | 2,669 | 172,803 | ||||||
Food & Staples Retailing 0.1% | ||||||||
Shinsegae Co., Ltd. | 660 | 207,287 | ||||||
Food, Beverage & Tobacco 0.4% | ||||||||
Dongwon Industries Co., Ltd. | 1,390 | 86,190 |
See financial notes 31
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
KT&G Corp. | 15,250 | 841,753 | ||||||
927,943 | ||||||||
Household & Personal Products 0.1% | ||||||||
LG Household & Health Care Ltd. | 160 | 17,515 | ||||||
Pacific Corp. | 2,790 | 176,365 | ||||||
193,880 | ||||||||
Insurance 0.3% | ||||||||
Samsung Fire & Marine Insurance Co., Ltd. * | 5,320 | 619,570 | ||||||
Materials 0.5% | ||||||||
Korea Zinc Co., Ltd. | 3,270 | 270,983 | ||||||
LG Chem Ltd. (a) | 13,040 | 825,415 | ||||||
SeAH Holdings Corp. | 1,155 | 51,099 | ||||||
1,147,497 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||||||||
Yuhan Corp. | 1,006 | 134,934 | ||||||
Retailing 0.7% | ||||||||
GS Home Shopping, Inc. | 980 | 36,327 | ||||||
Hyundai Department Store Co., Ltd. | 7,160 | 373,505 | ||||||
Lotte Shopping Co., Ltd | 7,100 | 988,909 | ||||||
1,398,741 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
Hynix Semiconductor, Inc. * | 15,630 | 140,722 | ||||||
Software & Services 0.1% | ||||||||
NHN Corp. * | 2,230 | 245,715 | ||||||
Telecommunication Services 0.8% | ||||||||
KT Corp. | 26,740 | 744,001 | ||||||
KT Freetel Co., Ltd. * | 29,760 | 597,086 | ||||||
LG Telecom Ltd. | 59,940 | 367,102 | ||||||
1,708,189 | ||||||||
10,406,535 | ||||||||
Russia 1.5% | ||||||||
Energy 0.8% | ||||||||
Tatneft GDR - Reg’d | 35,054 | 1,614,237 | ||||||
Telecommunication Services 0.7% | ||||||||
Comstar United Telesystems OJSC GDR | 30,397 | 101,830 | ||||||
Mobile TeleSystems ADR | 21,600 | 646,272 | ||||||
Sistema JSFC GDR | 146,540 | 837,609 | ||||||
1,585,711 | ||||||||
3,199,948 | ||||||||
Singapore 1.2% | ||||||||
Capital Goods 0.5% | ||||||||
Fraser & Neave Ltd. | 226,000 | 376,488 | ||||||
Haw Par Corp., Ltd. | 33,000 | 75,829 | ||||||
SembCorp Industries Ltd. | 406,000 | 629,706 | ||||||
Singapore Technologies Engineering Ltd. | 67,000 | 108,551 | ||||||
1,190,574 | ||||||||
Retailing 0.3% | ||||||||
Jardine Cycle & Carriage Ltd. | 73,000 | 569,893 | ||||||
Semiconductors & Semiconductor Equipment 0.0% | ||||||||
STATS ChipPAC Ltd. * | 147,000 | 30,471 | ||||||
Transportation 0.4% | ||||||||
ComfortDelGro Corp., Ltd. | 507,000 | 454,040 | ||||||
Singapore Airlines Ltd. | 55,000 | 362,719 | ||||||
SMRT Corp., Ltd. | 77,000 | 77,522 | ||||||
894,281 | ||||||||
2,685,219 | ||||||||
South Africa 3.9% | ||||||||
Capital Goods 0.3% | ||||||||
Aveng Ltd. | 244,593 | 673,043 | ||||||
Bidvest Group Ltd. | 6,060 | 56,252 | ||||||
729,295 | ||||||||
Consumer Durables & Apparel 0.2% | ||||||||
Steinhoff International Holdings Ltd | 486,000 | 517,564 | ||||||
Diversified Financials 0.3% | ||||||||
Investec Ltd. | 153,735 | 631,238 | ||||||
Health Care Equipment & Services 0.3% | ||||||||
Medi-Clinic Corp., Ltd. | 275,000 | 625,558 | ||||||
Insurance 0.3% | ||||||||
Sanlam Ltd. | 414,564 | 737,467 | ||||||
Materials 1.7% | ||||||||
Assore Ltd. | 6,864 | 319,405 | ||||||
Gold Fields Ltd. | 164,000 | 1,842,232 | ||||||
Harmony Gold Mining Co., Ltd. * | 129,000 | 1,392,674 | ||||||
3,554,311 | ||||||||
Retailing 0.3% | ||||||||
Imperial Holdings Ltd. | 100,000 | 565,120 | ||||||
Telecommunication Services 0.5% | ||||||||
Telkom South Africa Ltd. | 86,113 | 959,428 | ||||||
8,319,981 | ||||||||
Spain 0.4% | ||||||||
Commercial & Professional Supplies 0.0% | ||||||||
Prosegur, Compania de Seguridad S.A. | 875 | 23,563 | ||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Ebro Puleva S.A. | 11,705 | 137,387 | ||||||
Insurance 0.1% | ||||||||
Grupo Catalana Occidente S.A. | 14,980 | 177,113 | ||||||
Utilities 0.2% | ||||||||
Acciona S.A. | 4,100 | 421,736 | ||||||
Gas Natural SDG S.A. | 7,571 | 103,669 | ||||||
525,405 | ||||||||
863,468 | ||||||||
Sweden 1.8% | ||||||||
Commercial & Professional Supplies 0.4% | ||||||||
Securitas AB, B Shares | 104,969 | 766,168 | ||||||
Health Care Equipment & Services 0.2% | ||||||||
Getinge AB, Class B | 33,524 | 324,678 | ||||||
Materials 0.5% | ||||||||
Svenska Cellulosa AB (SCA), A Shares | 10,000 | 75,297 |
32 See financial notes
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Svenska Cellulosa AB (SCA), B Shares | 139,961 | 1,062,260 | ||||||
1,137,557 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||||||||
Meda AB, A Shares | 101,351 | 599,864 | ||||||
Telecommunication Services 0.4% | ||||||||
Tele2 AB, B Shares | 114,000 | 961,017 | ||||||
3,789,284 | ||||||||
Switzerland 1.7% | ||||||||
Banks 0.4% | ||||||||
Banque Cantonale Vaudoise - Reg’d | 2,640 | 875,286 | ||||||
Capital Goods 0.3% | ||||||||
Sulzer AG - Reg’d | 15,104 | 779,410 | ||||||
Insurance 0.6% | ||||||||
Baloise Holding AG - Reg’d | 11,270 | 720,293 | ||||||
Helvetia Holding AG - Reg’d | 2,400 | 511,083 | ||||||
1,231,376 | ||||||||
Materials 0.2% | ||||||||
Clariant AG - Reg’d * | 92,000 | 356,992 | ||||||
Utilities 0.2% | ||||||||
BKW FMB Energie AG | 6,251 | 449,923 | ||||||
Energiedienst Holding AG - Reg’d * | 600 | 25,828 | ||||||
475,751 | ||||||||
3,718,815 | ||||||||
Taiwan 4.7% | ||||||||
Banks 0.5% | ||||||||
Chang Hwa Commercial Bank | 1,562,000 | 526,309 | ||||||
Taiwan Cooperative Bank | 1,418,278 | 660,423 | ||||||
1,186,732 | ||||||||
Capital Goods 0.5% | ||||||||
CTCI Corp. | 168,000 | 116,682 | ||||||
Far Eastern Textile Ltd. | 1,135,091 | 884,915 | ||||||
1,001,597 | ||||||||
Consumer Durables & Apparel 0.1% | ||||||||
Asia Optical Co., Inc. | 89,000 | 106,420 | ||||||
Diversified Financials 0.2% | ||||||||
Fubon Financial Holding Co. Ltd. | 558,000 | 337,290 | ||||||
Insurance 0.2% | ||||||||
Shin Kong Financial Holding Co., Ltd. | 1,840,000 | 529,063 | ||||||
Materials 0.6% | ||||||||
China Manmade Fibers Corp. | 633,000 | 91,842 | ||||||
China Steel Corp. | 960,000 | 630,132 | ||||||
Formosa Chemicals & Fibre Corp. | 184,000 | 217,558 | ||||||
Formosa Plastics Corp. | 300,000 | 452,898 | ||||||
1,392,430 | ||||||||
Semiconductors & Semiconductor Equipment 0.4% | ||||||||
MediaTek, Inc. | 72,000 | 677,784 | ||||||
Siliconware Precision Industries Co. | 24,000 | 25,236 | ||||||
United Microelectronics Corp. | 332,000 | 108,373 | ||||||
811,393 | ||||||||
Technology Hardware & Equipment 1.8% | ||||||||
Acer, Inc. | 156,382 | 235,477 | ||||||
Asustek Computer, Inc. | 270,864 | 285,603 | ||||||
AU Optronics Corp. | 456,163 | 379,764 | ||||||
Compal Electronics, Inc. | 1,040,847 | 747,476 | ||||||
Delta Electronics, Inc. | 32,000 | 58,992 | ||||||
Gigabyte Technology Co., Ltd. | 257,000 | 142,066 | ||||||
HTC Corp. | 49,000 | 603,336 | ||||||
Lite-On Technology Corp. | 636,397 | 431,428 | ||||||
Quanta Computer, Inc. | 667,836 | 843,966 | ||||||
Yageo Corp. | 1,054,000 | 188,201 | ||||||
3,916,309 | ||||||||
Telecommunication Services 0.4% | ||||||||
Far EasTone Telecommunications Co., Ltd. | 856,544 | 881,557 | ||||||
Taiwan Mobile Co., Ltd. | 21,000 | 30,484 | ||||||
912,041 | ||||||||
10,193,275 | ||||||||
Thailand 0.6% | ||||||||
Banks 0.3% | ||||||||
Bangkok Bank Public Co., Ltd. NVDR | 294,000 | 617,458 | ||||||
Energy 0.1% | ||||||||
Banpu Public Co., Ltd. - Reg’d | 7,000 | 42,278 | ||||||
PTT Exploration & Production Public Co., Ltd. NVDR | 21,000 | 57,689 | ||||||
99,967 | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Thai Beverage Public Co., Ltd. | 1,893,000 | 218,123 | ||||||
Utilities 0.1% | ||||||||
Electricity Generating PCL | 126,000 | 235,276 | ||||||
Ratchaburi Electricity Generating Holding Public Co., Ltd. NVDR | 46,000 | 49,932 | ||||||
285,208 | ||||||||
1,220,756 | ||||||||
Turkey 0.6% | ||||||||
Capital Goods 0.3% | ||||||||
Koc Holding A/S * | 555,000 | 779,456 | ||||||
Energy 0.3% | ||||||||
Petrol Ofisi A/S * | 252,000 | 577,145 | ||||||
1,356,601 | ||||||||
United Kingdom 7.0% | ||||||||
Capital Goods 0.2% | ||||||||
Qinetiq Group plc | 189,000 | 358,181 | ||||||
Consumer Services 0.9% | ||||||||
Compass Group plc | 106,000 | 484,761 | ||||||
Thomas Cook Group plc | 308,000 | 1,060,619 | ||||||
Whitbread plc | 40,464 | 456,973 | ||||||
2,002,353 |
See financial notes 33
Laudus Rosenberg International Discovery Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Diversified Financials 0.1% | ||||||||
Investec plc | 75,002 | 314,038 | ||||||
Food & Staples Retailing 0.2% | ||||||||
J Sainsbury plc | 104,000 | 466,156 | ||||||
Food, Beverage & Tobacco 0.5% | ||||||||
Associated British Foods plc | 45,900 | 421,314 | ||||||
Tate & Lyle plc | 173,000 | 645,316 | ||||||
1,066,630 | ||||||||
Insurance 1.4% | ||||||||
Brit Insurance Holdings plc | 156,000 | 403,354 | ||||||
Friends Provident plc | 576,000 | 571,146 | ||||||
Legal & General Group plc | 594,000 | 365,723 | ||||||
Old Mutual plc | 582,840 | 433,906 | ||||||
RSA Insurance Group plc | 535,428 | 998,452 | ||||||
St. James’s Place plc | 105,781 | 252,951 | ||||||
3,025,532 | ||||||||
Media 0.5% | ||||||||
Informa plc | 10,136 | 38,187 | ||||||
Pearson plc | 44,000 | 442,478 | ||||||
WPP plc | 89,505 | 503,358 | ||||||
984,023 | ||||||||
Retailing 1.1% | ||||||||
Home Retail Group plc | 316,000 | 1,017,434 | ||||||
Kingfisher plc | 664,728 | 1,424,858 | ||||||
2,442,292 | ||||||||
Software & Services 0.6% | ||||||||
Dimension Data Holdings plc | 172,665 | 100,618 | ||||||
Logica plc | 230,662 | 210,288 | ||||||
The Sage Group plc | 393,000 | 952,417 | ||||||
1,263,323 | ||||||||
Technology Hardware & Equipment 0.2% | ||||||||
Spectris plc | 69,190 | 399,023 | ||||||
Telecommunication Services 0.7% | ||||||||
BT Group plc | 378,000 | 421,719 | ||||||
Cable & Wireless | 594,864 | 1,189,610 | ||||||
1,611,329 | ||||||||
Transportation 0.3% | ||||||||
Arriva plc | 107,200 | 569,778 | ||||||
Utilities 0.3% | ||||||||
Centrica plc | 62,943 | 205,467 | ||||||
Tanjong plc | 123,000 | 465,900 | ||||||
671,367 | ||||||||
15,174,025 | ||||||||
Total Common Stock (Cost $254,055,862) | 203,818,432 | |||||||
Preferred Stock 2.5% of net assets | ||||||||
Brazil 2.5% | ||||||||
All America Latina Logistica | 11,728 | 7,381 | ||||||
Brasil Telecom Participacoes S.A. | 43,000 | 310,486 | ||||||
Brasil Telecom S.A. | 68,900 | 383,149 | ||||||
Centrais Eletricas de Santa Catarina S.A., Class B | 7,200 | 97,179 | ||||||
Companhia Energetica de Minas Gerais | 30,000 | 446,039 | ||||||
Companhia Paranaense de Energia-Copel, Class B | 36,000 | 374,006 | ||||||
Fertilizantes Fosfatados S.A. | 51,600 | 302,515 | ||||||
Gerdau S.A. | 141,600 | 787,430 | ||||||
Tele Norte Leste Participacoes S.A. | 57,500 | 805,583 | ||||||
Telecomunicacoes de Sao Paulo S.A. | 24,300 | 504,803 | ||||||
Telemar Norte Leste S.A., Class A | 15,000 | 338,183 | ||||||
Tim Participacoes S.A. | 210,000 | 261,623 | ||||||
Usinas Siderurgicas de Minas Gerais S.A., Class A | 23,600 | 300,119 | ||||||
Vivo Participacoes S.A. | 37,800 | 497,808 | ||||||
Total Preferred Stock (Cost $6,551,902) | 5,416,304 | |||||||
Rights 0.0% of net assets | ||||||||
Finland 0.0% | ||||||||
Pohjola Bank PLC Rights (a) * | 4,096 | 5,566 | ||||||
Malaysia 0.0% | ||||||||
Malayan Bk Bhd (a) * | 227,250 | 69,818 | ||||||
Total Rights (Cost $—) | 75,384 | |||||||
Other Investment Company 1.3% of net assets | ||||||||
United States 1.3% | ||||||||
State Street Institutional Liquid Reserves Fund – Institutional Class | 2,758,462 | 2,758,462 | ||||||
Total Other Investment Company (Cost $2,758,462) | 2,758,462 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $269,094,455 and the unrealized appreciation and depreciation were $7,757,486 and ($64,783,359), respectively, with a net unrealized depreciation of ($57,025,873). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $182,175,439 were adjusted from their closing market values following the guidelines adopted by the fund’s board of trustees. |
* | Non-income producing security. | |
(a) | Fair-valued by Management. |
ADR — American Depositary Receipt
CDI — CHESS Depositary Interest
GDR — Global Depositary Receipt
NVDR — Non-Voting Depositary Receipt
Reg’d — Registered
SDR — Swedish Depositary Receipt
34 See financial notes
Laudus Rosenberg International Discovery Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $263,366,226) | $212,068,582 | |||||
Foreign currency, at value (cost $2,428,340) | 2,381,760 | |||||
Receivables: | ||||||
Investments sold | 4,428,605 | |||||
Dividends | 1,157,449 | |||||
Fund shares sold | 779,333 | |||||
Foreign tax reclaims | 78,633 | |||||
Due from manager | 44,403 | |||||
Interest | 436 | |||||
Prepaid expenses | + | 2,939 | ||||
Total assets | 220,942,140 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 3,885,186 | |||||
Fund shares redeemed | 316,662 | |||||
Custodian fees | 260,924 | |||||
Foreign capital gains tax expense | 2,216 | |||||
Distribution and shareholder services fees | 597 | |||||
Accrued expenses | + | 280,471 | ||||
Total liabilities | 4,746,056 | |||||
Net Assets | ||||||
Total assets | 220,942,140 | |||||
Total liabilities | − | 4,746,056 | ||||
Net assets | $216,196,084 | |||||
Net Assets by Source | ||||||
Capital received from investors | 420,578,050 | |||||
Net investment income not yet distributed | 816,458 | |||||
Net realized capital losses | (153,817,936 | ) | ||||
Net unrealized capital losses | (51,380,488 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $34,004,612 | 5,633,634 | $6.04 | |||||||||
Select Shares | $182,191,472 | 30,196,351 | $6.03 |
See financial notes 35
Laudus Rosenberg International Discovery Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $923,045) | $8,820,087 | |||||
Interest | + | 69,973 | ||||
Total Investment Income | 8,890,060 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (144,835,440 | ) | ||||
Net realized gains on foreign currency transactions | + | 140,812 | ||||
Net realized losses | (144,694,628 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (45,012,323 | ) | ||||
Net unrealized losses on foreign currency translations | + | (96,291 | ) | |||
Net unrealized losses | (45,108,614 | ) | ||||
Expenses | ||||||
Investment adviser fees | 2,669,538 | |||||
Transfer agent fees | 660,039 | |||||
Custodian fees | 346,157 | |||||
Distribution and shareholder services fees (Investor Shares) | 216,502 | |||||
Sub-Accounting fees (Investor Shares) | 140,010 | |||||
Accounting and administration fees | 89,603 | |||||
Professional fees | 67,174 | |||||
Shareholder reports | 61,338 | |||||
Registration fees | 55,086 | |||||
Interest expense | 3,746 | |||||
Trustees’ fees | 3,546 | |||||
Other expenses | + | 70,185 | ||||
Total expenses | 4,382,924 | |||||
Expense reduction by adviser | − | 516,875 | ||||
Custody credits | − | 476 | ||||
Net expenses | 3,865,573 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 8,890,060 | |||||
Net expenses | − | 3,865,573 | ||||
Net investment income | 5,024,487 | |||||
Net realized losses | (144,694,628 | ) | ||||
Net unrealized losses | + | (45,108,614 | ) | |||
Decrease in net assets from operations | ($184,778,755 | ) |
36 See financial notes
Laudus Rosenberg International Discovery Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $5,024,487 | $1,728,062 | ||||||||
Net realized losses | (144,694,628 | ) | (2,339,694 | ) | ||||||
Net unrealized losses | + | (45,108,614 | ) | (14,507,335 | ) | |||||
Decrease in net assets from operations | (184,778,755 | ) | (15,118,967 | ) | ||||||
Distributions to Shareholders1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 887,943 | 1,224,195 | ||||||||
Select Shares | + | 4,211,558 | 720,949 | |||||||
Total distributions from net investment income | 5,099,501 | 1,945,144 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | — | 5,727,789 | ||||||||
Select Shares | + | — | 2,753,798 | |||||||
Total distributions from net realized gains | — | 8,481,587 | ||||||||
Total distributions | $5,099,501 | $10,426,731 |
Transactions in Fund Shares1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 2,380,148 | $24,115,172 | 11,324,623 | $144,113,465 | ||||||||||||||
Select Shares | + | 32,278,723 | 280,376,112 | 11,862,466 | 145,518,579 | |||||||||||||
Total shares sold | 34,658,871 | $304,491,284 | 23,187,089 | $289,632,044 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 85,708 | $580,245 | 545,156 | $6,361,968 | ||||||||||||||
Select Shares | + | 549,064 | 3,711,673 | 203,036 | 2,373,494 | |||||||||||||
Total shares reinvested | 634,772 | $4,291,918 | 748,192 | $8,735,462 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (7,502,921 | ) | ($56,218,275 | ) | (5,484,170 | ) | ($64,769,656 | ) | ||||||||||
Select Shares | + | (14,822,685 | ) | (108,063,780 | ) | (1,465,877 | ) | (17,223,557 | ) | |||||||||
Total shares redeemed | (22,325,606 | ) | ($164,282,055 | ) | (6,950,047 | ) | ($81,993,213 | ) | ||||||||||
Net transactions in fund shares | 12,968,037 | $144,501,147 | 16,985,234 | $216,374,293 | ||||||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 22,861,948 | $261,573,193 | 5,876,714 | $70,744,598 | ||||||||||||||
Total increase (decrease) | + | 12,968,037 | (45,377,109 | ) | 16,985,234 | 190,828,595 | ||||||||||||
End of period | 35,829,985 | $216,196,084 | 22,861,948 | $261,573,193 | ||||||||||||||
Net investment income not yet distributed | $816,458 | $358,822 |
1 | Effective on July 31, 2008, the Institutional Shares were redesignated as Select Shares. |
See financial notes 37
Laudus Rosenberg International Small Capitalization Fund
Financial Statements
Financial Highlights
4/1/08– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Investor Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 16.74 | 22.38 | 20.74 | 16.73 | 13.83 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.32 | 0.36 | 0.20 | 0.08 | 0.03 | 1 | ||||||||||||||
Net realized and unrealized gains (losses) | (9.06 | ) | (2.60 | ) | 3.82 | 4.89 | 3.51 | |||||||||||||
Total from investment operations | (8.74 | ) | (2.24 | ) | 4.02 | 4.97 | 3.54 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.21 | ) | (0.63 | ) | (0.30 | ) | (0.04 | ) | (0.02 | ) | ||||||||||
Distributions from net realized gains | — | (2.77 | ) | (2.08 | ) | (0.92 | ) | (0.62 | ) | |||||||||||
Total distributions | (0.21 | ) | (3.40 | ) | (2.38 | ) | (0.96 | ) | (0.64 | ) | ||||||||||
Net asset value at end of period | 7.79 | 16.74 | 22.38 | 20.74 | 16.73 | |||||||||||||||
Total return (%) | (52.40 | ) | (10.27 | ) | 20.35 | 30.48 | 26.16 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.49 | 1.45 | 1.47 | 1.60 | 1.83 | |||||||||||||||
Gross operating expenses | 1.49 | 1.45 | 1.47 | 1.60 | 1.88 | |||||||||||||||
Net investment income (loss) | 2.05 | 1.55 | 0.87 | 0.42 | 0.20 | |||||||||||||||
Portfolio turnover rate | 79 | 105 | 92 | 102 | 60 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 147,608 | 523,709 | 882,163 | 804,340 | 355,766 |
4/1/082– | 4/1/07– | 4/1/06– | 4/1/05– | 4/1/04– | ||||||||||||||||
Select Shares | 3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||||||
Per-Share Data ($) | ||||||||||||||||||||
Net asset value at beginning of period | 16.97 | 22.67 | 20.97 | 16.89 | 13.94 | |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.30 | 0.34 | 0.26 | 0.13 | 0.08 | 1 | ||||||||||||||
Net realized and unrealized gains (losses) | (9.12 | ) | (2.55 | ) | 3.90 | 4.95 | 3.53 | |||||||||||||
Total from investment operations | (8.82 | ) | (2.21 | ) | 4.16 | 5.08 | 3.61 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | (0.28 | ) | (0.73 | ) | (0.38 | ) | (0.08 | ) | (0.04 | ) | ||||||||||
Distributions from net realized gains | — | (2.76 | ) | (2.08 | ) | (0.92 | ) | (0.62 | ) | |||||||||||
Total distributions | (0.28 | ) | (3.49 | ) | (2.46 | ) | (1.00 | ) | (0.66 | ) | ||||||||||
Net asset value at end of period | 7.87 | 16.97 | 22.67 | 20.97 | 16.89 | |||||||||||||||
Total return (%) | (52.20 | ) | (9.97 | ) | 20.82 | 30.90 | 26.52 | |||||||||||||
Ratios/Supplemental Data (%) | ||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Net operating expenses | 1.11 | 1.09 | 1.10 | 1.25 | 1.49 | |||||||||||||||
Gross operating expenses | 1.11 | 1.09 | 1.10 | 1.25 | 1.55 | |||||||||||||||
Net investment income (loss) | 2.39 | 1.87 | 1.21 | 0.85 | 0.50 | |||||||||||||||
Portfolio turnover rate | 79 | 105 | 92 | 102 | 60 | |||||||||||||||
Net assets, end of period ($ x 1,000) | 195,990 | 612,703 | 1,048,829 | 698,064 | 270,646 |
1 Calculated based on the average shares outstanding during the period.
2 Effective July 31, 2008, the Institutional Shares were redesignated as Select Shares.
38 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings as of March 31, 2009
This section shows all the securities in the fund’s portfolio and their value as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.
Cost | Value | |||||||||||
Holdings by Category | ($) | ($) | ||||||||||
95 | .3% | Common Stock | 498,557,725 | 327,579,410 | ||||||||
0 | .8% | Preferred Stock | 4,776,295 | 2,755,801 | ||||||||
—% | Rights | — | 2,258 | |||||||||
—% | Warrants | — | 1,264 | |||||||||
1 | .5% | Other Investment Company | 4,967,012 | 4,967,012 | ||||||||
97 | .6% | Total Investments | 508,301,032 | 335,305,745 | ||||||||
2 | .4% | Other Assets and Liabilities, Net | 8,292,258 | |||||||||
100 | .0% | Net Assets | 343,598,003 |
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Common Stock 95.3% of net assets | ||||||||
Australia 3.0% | ||||||||
Banks 0.0% | ||||||||
Bank of Queensland Ltd. | 471 | 2,767 | ||||||
Capital Goods 0.1% | ||||||||
Austal Ltd. | 27,595 | 33,422 | ||||||
Emeco Holdings Ltd. | 1,165,573 | 328,953 | ||||||
362,375 | ||||||||
Commercial & Professional Supplies 0.3% | ||||||||
Campbell Brothers Ltd. | 26,874 | 255,450 | ||||||
Corporate Express Australia Ltd. | 121,489 | 246,276 | ||||||
Downer EDI Ltd. | 141,123 | 436,251 | ||||||
Salmat Ltd. | 39,150 | 103,074 | ||||||
1,041,051 | ||||||||
Consumer Services 0.2% | ||||||||
Crown Ltd. | 33,350 | 148,041 | ||||||
Navitas Ltd. | 362,311 | 577,117 | ||||||
725,158 | ||||||||
Diversified Financials 0.0% | ||||||||
Perpetual Ltd. | 2,900 | 54,391 | ||||||
Energy 0.3% | ||||||||
Australian Worldwide Exploration Ltd. | 43,770 | 74,323 | ||||||
Beach Petroleum Ltd. | 940,300 | 579,074 | ||||||
Caltex Australia Ltd. | 3,400 | 21,124 | ||||||
Extract Resources Ltd. * | 12,000 | 37,794 | ||||||
Pan Pacific Petroleum NL * | 1,098,111 | 236,662 | ||||||
948,977 | ||||||||
Food & Staples Retailing 0.0% | ||||||||
ABB Grain Ltd. | 3,200 | 13,336 | ||||||
AWB Ltd. | 105,035 | 89,959 | ||||||
103,295 | ||||||||
Food, Beverage & Tobacco 0.2% | ||||||||
Goodman Fielder Ltd. | 1,143,200 | 828,463 | ||||||
Health Care Equipment & Services 0.5% | ||||||||
Ansell Ltd. | 11,900 | 70,822 | ||||||
Healthscope Ltd. | 155,800 | 443,837 | ||||||
IBA Health Group Ltd. * | 189,381 | 80,617 | ||||||
Primary Health Care Ltd. | 45,600 | 144,608 | ||||||
Ramsay Health Care Ltd. | 34,580 | 236,375 | ||||||
Sigma Pharmaceuticals Ltd. | 1,137,173 | 839,970 | ||||||
1,816,229 | ||||||||
�� | ||||||||
Insurance 0.2% | ||||||||
Tower Australia Group Ltd. | 343,252 | 552,481 | ||||||
Materials 0.3% | ||||||||
Centamin Egypt Ltd. * | 21,100 | 19,273 | ||||||
Dominion Mining Ltd. | 89,000 | 348,743 | ||||||
Forest Enterprises Australia Ltd. | 39,650 | 5,113 | ||||||
Gunns Ltd. | 460,773 | 288,827 | ||||||
Iluka Resources Ltd. * | 71,100 | 199,299 | ||||||
Sino Gold Mining Ltd. * | 27,300 | 101,617 | ||||||
TFS Corp., Ltd. | 405,800 | 243,112 | ||||||
1,205,984 | ||||||||
Media 0.1% | ||||||||
Amalgamated Holdings Ltd. | 98,998 | 267,793 | ||||||
Consolidated Media Holdings Ltd. | 31,100 | 43,396 | ||||||
311,189 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||||||||
Arana Therapeutics Ltd. | 331,835 | 322,770 | ||||||
Real Estate 0.1% | ||||||||
Bunnings Warehouse Property Trust | 80,161 | 87,462 | ||||||
ING Office Fund | 1,112,079 | 329,155 | ||||||
Macquarie Office Trust | 211,600 | 25,136 | ||||||
441,753 | ||||||||
Retailing 0.4% | ||||||||
ARB Corp., Ltd. | 4,362 | 9,126 | ||||||
David Jones Ltd. | 132,500 | 258,004 | ||||||
JB Hi-Fi Ltd. | 95,257 | 764,766 | ||||||
The Reject Shop Ltd. | 48,200 | 352,106 | ||||||
1,384,002 | ||||||||
Telecommunication Services 0.1% | ||||||||
iiNET Ltd. | 191,514 | 200,858 | ||||||
Utilities 0.1% | ||||||||
Energy Developments Ltd. | 174,967 | 154,152 | ||||||
Spark Infrastructure Group | 46,100 | 32,488 | ||||||
186,640 | ||||||||
10,488,383 | ||||||||
Austria 0.2% | ||||||||
Consumer Durables & Apparel 0.0% | ||||||||
Linz Textil Holding AG | 76 | 9,592 |
See financial notes 39
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Real Estate 0.2% | ||||||||
Conwert Immobilien Invest SE * | 90,421 | 568,728 | ||||||
Software & Services 0.0% | ||||||||
S&T System Integration & Technology Distribution AG * | 4,341 | 47,993 | ||||||
626,313 | ||||||||
Belgium 2.5% | ||||||||
Capital Goods 0.0% | ||||||||
Societe Anonyme Belge de Constructions Aeronautques | 681 | 11,473 | ||||||
Consumer Durables & Apparel 0.0% | ||||||||
Jensen Group N.V. | 12,000 | 76,938 | ||||||
Diversified Financials 0.2% | ||||||||
Banque Nationale de Belgique | 219 | 639,771 | ||||||
Food & Staples Retailing 0.8% | ||||||||
Delhaize Group | 45,132 | 2,928,792 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Pinguin N.V. * | 313 | 4,221 | ||||||
Health Care Equipment & Services 0.3% | ||||||||
Omega Pharma S.A. | 49,994 | 1,099,571 | ||||||
Materials 0.9% | ||||||||
Recticel S.A. | 37,999 | 112,183 | ||||||
Solvay S.A. | 4,258 | 298,619 | ||||||
Tessenderlo Chemie N.V. | 83,833 | 2,551,073 | ||||||
2,961,875 | ||||||||
Retailing 0.3% | ||||||||
S.A. D’Ieteren N.V. | 7,336 | 1,047,700 | ||||||
8,770,341 | ||||||||
Canada 5.8% | ||||||||
Banks 0.2% | ||||||||
Laurentian Bank of Canada | 32,100 | 677,237 | ||||||
National Bank of Canada | 1,400 | 44,705 | ||||||
721,942 | ||||||||
Capital Goods 0.1% | ||||||||
Toromont Industries Ltd. | 12,960 | 241,150 | ||||||
Commercial & Professional Supplies 0.4% | ||||||||
BFI Canada Ltd. | 93,200 | 691,903 | ||||||
Stantec, Inc. * | 42,778 | 773,587 | ||||||
1,465,490 | ||||||||
Diversified Financials 0.1% | ||||||||
TMX Group, Inc. | 14,200 | 402,641 | ||||||
Energy 0.7% | ||||||||
Harvest Energy Trust | 5,390 | 19,665 | ||||||
Mullen Group Income Fund | 83,400 | 603,274 | ||||||
Pembina Pipeline Income Fund | 63,030 | 698,889 | ||||||
Petro-Canada | 19,700 | 529,219 | ||||||
Provident Energy Trust | 59,450 | 226,804 | ||||||
Savanna Energy Services Corp. | 112,040 | 453,208 | ||||||
2,531,059 | ||||||||
Food & Staples Retailing 0.5% | ||||||||
Alimentation Couche Tard, Inc., Class B | 95,680 | 1,003,244 | ||||||
Empire Co., Ltd., Class A | 13,600 | 571,700 | ||||||
George Weston Ltd. | 3,000 | 139,197 | ||||||
1,714,141 | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Maple Leaf Foods, Inc. | 61,900 | 399,640 | ||||||
Viterra, Inc. * | 14,430 | 100,488 | ||||||
500,128 | ||||||||
Health Care Equipment & Services 0.0% | ||||||||
CML Healthcare Income Fund | 600 | 6,263 | ||||||
Materials 0.8% | ||||||||
Canfor Corp. * | 137,190 | 522,297 | ||||||
IAMGOLD Corp. | 147,460 | 1,272,497 | ||||||
PAN American Silver Corp. * | 800 | 14,131 | ||||||
West Fraser Timber Co., Ltd. | 35,400 | 627,249 | ||||||
Yamana Gold, Inc. | 20,360 | 190,068 | ||||||
2,626,242 | ||||||||
Media 0.5% | ||||||||
Cogeco Cable, Inc. | 27,400 | 684,565 | ||||||
Corus Entertainment, Inc., Class B | 27,200 | 294,048 | ||||||
Quebecor, Inc., Class B | 51,000 | 726,087 | ||||||
1,704,700 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.4% | ||||||||
Biovail Corp. | 86,300 | 938,430 | ||||||
MDS, Inc. * | 63,590 | 298,078 | ||||||
1,236,508 | ||||||||
Real Estate 0.5% | ||||||||
BPO Properties Ltd. | 100 | 2,379 | ||||||
Calloway Real Estate Investment Trust | 81,700 | 647,353 | ||||||
FirstService Corp. * | 42,410 | 348,820 | ||||||
MI Developments, Inc., Class A | 88,500 | 541,894 | ||||||
1,540,446 | ||||||||
Retailing 0.3% | ||||||||
Leon’s Furniture Ltd. | 59,000 | 445,027 | ||||||
RONA, Inc. * | 72,100 | 678,797 | ||||||
Sears Canada, Inc. * | 3,300 | 49,730 | ||||||
1,173,554 | ||||||||
Software & Services 0.5% | ||||||||
CGI Group, Inc., Class A * | 72,700 | 586,997 | ||||||
Open Text Corp. * | 32,200 | 1,112,749 | ||||||
1,699,746 | ||||||||
Technology Hardware & Equipment 0.2% | ||||||||
Celestica, Inc. * | 199,380 | 703,713 | ||||||
Telecommunication Services 0.2% | ||||||||
Manitoba Telecom Services, Inc. | 20,900 | 529,628 | ||||||
Utilities 0.3% | ||||||||
ATCO Ltd., Class I | 18,100 | 516,815 | ||||||
Canadian Utilities Ltd., Class A | 1,950 | 56,839 | ||||||
Emera, Inc. | 18,400 | 277,722 | ||||||
Fortis, Inc. | 18,100 | 317,841 | ||||||
1,169,217 | ||||||||
19,966,568 | ||||||||
Cayman Islands 0.1% | ||||||||
Materials 0.0% | ||||||||
Yip’s Chemical Holdings Ltd. | 32,000 | 9,719 |
40 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||||||||
China Shineway Pharmaceutical Group Ltd. | 18,000 | 10,210 | ||||||
Real Estate 0.0% | ||||||||
HKR International Ltd. | 224,000 | 54,122 | ||||||
Telecommunication Services 0.0% | ||||||||
Hutchison Telecommunications International Ltd. | 58,000 | 18,143 | ||||||
Utilities 0.1% | ||||||||
Towngas China Co., Ltd. * | 429,000 | 83,815 | ||||||
176,009 | ||||||||
China 0.3% | ||||||||
Consumer Durables & Apparel 0.1% | ||||||||
Weiqiao Textile Co., Ltd., Class H | 927,000 | 275,508 | ||||||
Technology Hardware & Equipment 0.0% | ||||||||
Great Wall Technology Co., Ltd., Class H * | 6,000 | 636 | ||||||
Transportation 0.2% | ||||||||
Sichuan Expressway Co., Ltd., Class H * | 3,764,000 | 705,196 | ||||||
Utilities 0.0% | ||||||||
Xinao Gas Holdings Ltd. | 18,000 | 18,125 | ||||||
999,465 | ||||||||
Denmark 0.8% | ||||||||
Banks 0.0% | ||||||||
Ostjydsk Bank A/S * | 658 | 36,622 | ||||||
Capital Goods 0.1% | ||||||||
DLH A/S, Class B | 27,383 | 67,532 | ||||||
Monberg & Thorsen A/S, Class B | 7,500 | 222,231 | ||||||
Ove Arkil Holding A/S, Class B | 899 | 99,314 | ||||||
389,077 | ||||||||
Materials 0.6% | ||||||||
Auriga Industries A/S, Class B | 106,963 | 1,850,376 | ||||||
Real Estate 0.0% | ||||||||
TK Development A/S * | 42,974 | 128,421 | ||||||
Transportation 0.1% | ||||||||
DFDS A/S | 5,770 | 290,684 | ||||||
2,695,180 | ||||||||
Finland 2.1% | ||||||||
Capital Goods 0.5% | ||||||||
Cramo Oyj | 169,408 | 1,137,275 | ||||||
Larox Oyj | 23,725 | 189,182 | ||||||
Lemminkainen Oyj | 1,802 | 37,799 | ||||||
PKC Group Oyj | 79,997 | 286,963 | ||||||
Raute Oyj, A Shares | 2,839 | 26,627 | ||||||
1,677,846 | ||||||||
Materials 0.5% | ||||||||
Kemira Oyj * | 266,797 | 1,712,655 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||||||||
Orion Oyj, Class B | 34,887 | 504,849 | ||||||
Semiconductors & Semiconductor Equipment 0.0% | ||||||||
Okmetic Oyj | 60,000 | 159,255 | ||||||
Software & Services 0.9% | ||||||||
Digia plc * | 73,761 | 146,866 | ||||||
TietoEnator Oyj | 271,918 | 2,817,703 | ||||||
2,964,569 | ||||||||
Technology Hardware & Equipment 0.1% | ||||||||
Scanfil Oyj | 80,982 | 210,791 | ||||||
Transportation 0.0% | ||||||||
Finnair Oyj * | 21,793 | 106,372 | ||||||
7,336,337 | ||||||||
France 7.9% | ||||||||
Capital Goods 1.6% | ||||||||
Compagnie Industrielle et Financiere d’ Entreprises | 2,392 | 109,673 | ||||||
Ginger (Groupe Ingenierie Europe) | 8,834 | 112,727 | ||||||
Securidev S.A. | 356 | 7,846 | ||||||
Thales S.A. | 136,502 | 5,168,918 | ||||||
Zodiac Aerospace | 1,426 | 36,132 | ||||||
5,435,296 | ||||||||
Commercial & Professional Supplies 0.2% | ||||||||
Assystem | 77,028 | 542,282 | ||||||
Groupe Crit | 21,181 | 205,250 | ||||||
Teleperformance | 2,500 | 68,770 | ||||||
816,302 | ||||||||
Consumer Durables & Apparel 0.2% | ||||||||
Nexity | 39,340 | 840,134 | ||||||
Consumer Services 0.1% | ||||||||
Compagnie des Alpes | 4,130 | 117,268 | ||||||
Pierre & Vacances | 3,129 | 161,657 | ||||||
278,925 | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Sucriere de Pithiviers Le Vieil | 266 | 184,934 | ||||||
Vranken - Pommery Monopole | 3,746 | 92,278 | ||||||
277,212 | ||||||||
Materials 0.3% | ||||||||
Gascogne | 1,170 | 37,159 | ||||||
Gevelot | 2,121 | 36,607 | ||||||
Guillin Emballages | 60 | 2,689 | ||||||
Internationale de Plantations d’Heveas S.A. | 1,310 | 31,318 | ||||||
Rougier S.A. | 2,620 | 73,082 | ||||||
Sequana | 150,169 | 773,396 | ||||||
954,251 | ||||||||
Media 0.6% | ||||||||
Havas S.A. | 448,391 | 1,155,067 | ||||||
M6 Metropole Television | 61,600 | 1,005,200 | ||||||
2,160,267 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||||||||
Boiron S.A. | 329 | 8,825 | ||||||
Real Estate 0.0% | ||||||||
Acanthe Developpement S.A. * | 37,981 | 56,950 | ||||||
Software & Services 4.0% | ||||||||
Altran Technologies S.A. * | 425,503 | 1,277,174 | ||||||
Atos Origin S.A. * | 138,685 | 3,557,985 |
See financial notes 41
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Aubay | 58,060 | 170,823 | ||||||
Ausy * | 12,369 | 239,818 | ||||||
Cap Gemini | 196,800 | 6,324,971 | ||||||
ESI Group * | 9,000 | 80,010 | ||||||
GFI Informatique | 55,536 | 167,367 | ||||||
Groupe Steria S.C.A. | 86,239 | 1,216,950 | ||||||
Jet Multimedia (a) | 15,000 | 98,649 | ||||||
Linedata Services | 51,106 | 297,714 | ||||||
Sopra Group | 1,322 | 43,961 | ||||||
Tessi S.A. | 3,864 | 129,429 | ||||||
13,604,851 | ||||||||
Technology Hardware & Equipment 0.0% | ||||||||
HF Co. | 1,890 | 15,307 | ||||||
Transportation 0.8% | ||||||||
Air France-KLM | 279,028 | 2,480,977 | ||||||
Norbert Dentressangle | 8,807 | 267,234 | ||||||
2,748,211 | ||||||||
27,196,531 | ||||||||
Germany 4.8% | ||||||||
Automobiles & Components 0.1% | ||||||||
Bertrandt AG | 22,809 | 405,139 | ||||||
Capital Goods 1.4% | ||||||||
Bilfinger Berger AG | 14,486 | 544,785 | ||||||
Duerr AG | 51,356 | 665,473 | ||||||
Gesco AG | 8,232 | 354,519 | ||||||
Indus Holding AG | 50,869 | 588,333 | ||||||
KSB AG | 1,393 | 490,983 | ||||||
MTU Aero Engines Holding AG | 22,310 | 521,062 | ||||||
Muehlbauer Holding AG & Co. | 5,460 | 120,856 | ||||||
Rheinmetall AG | 15,315 | 518,571 | ||||||
Tognum AG | 115,642 | 1,003,055 | ||||||
Westag & Getalit AG | 2,631 | 28,064 | ||||||
4,835,701 | ||||||||
Commercial & Professional Supplies 0.0% | ||||||||
Amadeus Fire AG | 11,478 | 144,744 | ||||||
Consumer Durables & Apparel 0.0% | ||||||||
Loewe AG | 773 | 7,991 | ||||||
Consumer Services 0.0% | ||||||||
IFA Hotel & Touristik AG * | 5,170 | 23,712 | ||||||
Diversified Financials 0.0% | ||||||||
ADCapital AG | 498 | 3,301 | ||||||
Food & Staples Retailing 0.0% | ||||||||
WASGAU Produktions & Handels AG | 1,500 | 10,112 | ||||||
Food, Beverage & Tobacco 0.4% | ||||||||
Frosta AG | 4,880 | 92,657 | ||||||
Sektkellerei Schloss Wachenheim AG * | 21,039 | 108,661 | ||||||
Suedzucker AG | 62,866 | 1,212,722 | ||||||
1,414,040 | ||||||||
Health Care Equipment & Services 0.4% | ||||||||
Fresenius SE | 32,365 | 1,225,257 | ||||||
Materials 1.2% | ||||||||
Lanxess | 242,596 | 4,122,610 | ||||||
Retailing 0.2% | ||||||||
Hornbach Baumarkt Aktiengesellschaft AG | 2,542 | 80,191 | ||||||
Praktiker Bau- und Heimwerkermaerkte Holding AG | 115,306 | 604,450 | ||||||
684,641 | ||||||||
Semiconductors & Semiconductor Equipment 0.0% | ||||||||
ELMOS Semiconductor AG * | 33,286 | 79,069 | ||||||
Software & Services 0.2% | ||||||||
Bechtle AG | 15,839 | 251,432 | ||||||
Integralis AG * | 33,677 | 128,950 | ||||||
REALTECH AG | 10,055 | 74,642 | ||||||
syzygy AG | 53,528 | 202,617 | ||||||
657,641 | ||||||||
Technology Hardware & Equipment 0.3% | ||||||||
Augusta Technologie AG * | 27,989 | 296,467 | ||||||
Boewe Systec AG | 18,723 | 94,181 | ||||||
Euromicron AG | 25,107 | 337,113 | ||||||
Funkwerk AG | 38,000 | 208,479 | ||||||
936,240 | ||||||||
Transportation 0.6% | ||||||||
D. Logistics AG * | 159,124 | 227,887 | ||||||
Deutsche Lufthansa AG - Reg’d | 152,100 | 1,647,801 | ||||||
1,875,688 | ||||||||
16,425,886 | ||||||||
Greece 0.0% | ||||||||
Banks 0.0% | ||||||||
Bank of Greece | 86 | 4,804 | ||||||
Hong Kong 2.0% | ||||||||
Banks 0.2% | ||||||||
Hongkong Chinese Ltd. | 180,000 | 13,478 | ||||||
Industrial & Commercial Bank of China (Asia) Ltd. | 704,000 | 748,669 | ||||||
762,147 | ||||||||
Capital Goods 0.1% | ||||||||
Miramar Hotel & Investment Co., Ltd. | 223,000 | 144,360 | ||||||
Shui On Construction & Materials Ltd. | 218,000 | 209,525 | ||||||
353,885 | ||||||||
Consumer Durables & Apparel 0.2% | ||||||||
Texwinca Holdings Ltd. | 824,000 | 423,201 | ||||||
Truly International Holdings Ltd. | 252,000 | 136,978 | ||||||
USI Holdings Ltd. | 514,727 | 71,162 | ||||||
631,341 | ||||||||
Consumer Services 0.0% | ||||||||
Cafe De Coral Holdings Ltd. | 12,000 | 23,547 | ||||||
Mandarin Oriental International Ltd. | 122,000 | 96,902 | ||||||
120,449 | ||||||||
Diversified Financials 0.2% | ||||||||
Allied Group Ltd. | 207,600 | 325,794 | ||||||
Allied Properties (H.K.) Ltd. | 1,678,000 | 131,863 | ||||||
Asia Financial Holdings Ltd. | 526,000 | 131,109 |
42 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Lippo Ltd. | 100,000 | 13,450 | ||||||
602,216 | ||||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Pacific Andes (Holdings) Ltd. | 233,000 | 24,541 | ||||||
Materials 0.0% | ||||||||
Minmetals Resources Ltd. | 68,000 | 11,674 | ||||||
Real Estate 0.3% | ||||||||
Champion Real Estate Investment Trust | 742,000 | 177,507 | ||||||
China Motor Bus Co., Ltd. | 4,000 | 19,712 | ||||||
Pacific Century Premium Developments Ltd. * | 1,462,000 | 263,716 | ||||||
Soundwill Holdings Ltd. | 580,000 | 135,988 | ||||||
Tai Sang Land Development Ltd. | 101,000 | 29,875 | ||||||
Tian An China Investments Co., Ltd. | 20,000 | 5,341 | ||||||
Wheelock Properties Ltd. | 930,000 | 306,622 | ||||||
938,761 | ||||||||
Retailing 0.2% | ||||||||
Aeon Stores Hong Kong Co., Ltd. | 4,000 | 5,060 | ||||||
Chow Sang Sang Holdings International Ltd. | 164,000 | 94,998 | ||||||
Dickson Concepts International Ltd. | 129,500 | 33,989 | ||||||
Goldlion Holdings Ltd. | 341,000 | 46,554 | ||||||
Sa Sa International Holdings Ltd. | 50,000 | 15,548 | ||||||
Tan Chong International Ltd. | 1,254,000 | 205,478 | ||||||
Wing On Co. International Ltd. | 276,500 | 224,720 | ||||||
626,347 | ||||||||
Technology Hardware & Equipment 0.3% | ||||||||
Champion Technology Holdings Ltd. | 4,363,582 | 152,073 | ||||||
Digital China Holdings Ltd. | 119,000 | 49,772 | ||||||
VTech Holdings Ltd. | 181,000 | 699,232 | ||||||
901,077 | ||||||||
Telecommunication Services 0.2% | ||||||||
Asia Satellite Telecommunications Holdings Ltd. | 457,500 | 478,124 | ||||||
Citic 1616 Holdings Ltd. | 84,000 | 16,048 | ||||||
SmarTone Telecommunications Holdings Ltd. | 489,500 | 286,511 | ||||||
780,683 | ||||||||
Transportation 0.3% | ||||||||
Road King Infrastructure Ltd. | 497,000 | 203,307 | ||||||
Transport International Holdings Ltd. | 317,600 | 810,320 | ||||||
1,013,627 | ||||||||
6,766,748 | ||||||||
Ireland 0.2% | ||||||||
Consumer Durables & Apparel 0.0% | ||||||||
Abbey plc | 15,931 | 70,841 | ||||||
Food & Staples Retailing 0.2% | ||||||||
Total Produce plc | 1,608,382 | 578,471 | ||||||
Food, Beverage & Tobacco 0.0% | ||||||||
Donegal Creameries plc | 8,185 | 16,852 | ||||||
666,164 | ||||||||
Italy 2.8% | ||||||||
Automobiles & Components 0.3% | ||||||||
Pirelli & C. S.p.A. * | 4,603,424 | 1,074,282 | ||||||
Banks 0.0% | ||||||||
Banca Piccolo Credito Valtellinese Scarl | 13,690 | 110,900 | ||||||
Banca Popolare dell’Emilia Romagna Scrl | 547 | 5,994 | ||||||
Banco di Sardegna S.p.A. | 3,288 | 41,046 | ||||||
157,940 | ||||||||
Capital Goods 0.6% | ||||||||
Astaldi S.p.A. | 50,352 | 207,288 | ||||||
C.I.R. S.p.A. - Compagnie Industriali Riunite | 8,457 | 8,736 | ||||||
Cofide S.p.A. - Compagnia Finanziaria De Benedetti | 2,247,453 | 1,037,528 | ||||||
Irce S.p.A. | 14,133 | 27,974 | ||||||
Vianini Lavori S.p.A. | 118,000 | 611,318 | ||||||
1,892,844 | ||||||||
Consumer Durables & Apparel 0.1% | ||||||||
Benetton Group S.p.A. | 2,833 | 18,446 | ||||||
Safilo Group S.p.A. | 650,801 | 340,486 | ||||||
358,932 | ||||||||
Consumer Services 0.1% | ||||||||
Autogrill S.p.A. | 9,607 | 55,341 | ||||||
I Grandi Viaggi S.p.A. | 168,174 | 205,179 | ||||||
260,520 | ||||||||
Food, Beverage & Tobacco 0.3% | ||||||||
Davide Campari - Milano S.p.A. | 178,081 | 1,130,101 | ||||||
La Doria S.p.A. * | 20,301 | 38,622 | ||||||
1,168,723 | ||||||||
Health Care Equipment & Services 0.1% | ||||||||
El.En. S.p.A. | 15,350 | 211,459 | ||||||
Household & Personal Products 0.1% | ||||||||
Mirato S.p.A. | 51,665 | 295,198 | ||||||
Insurance 0.4% | ||||||||
Premafin Finanziaria S.p.A. | 407,834 | 541,236 | ||||||
Unipol Gruppo Finanziario S.p.A. * | 1,069,969 | 947,406 | ||||||
1,488,642 | ||||||||
Materials 0.1% | ||||||||
KME Group | 371,182 | 298,426 | ||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||||||||
Recordati S.p.A. | 17,915 | 97,526 | ||||||
Real Estate 0.0% | ||||||||
Immobiliare Grande Distribuzione | 57,664 | 69,921 | ||||||
Realty Vailog S.p.A. * | 10,929 | 23,820 | ||||||
93,741 | ||||||||
Software & Services 0.3% | ||||||||
Engineering Ingegneria Informatica S.p.A. | 29,038 | 655,771 | ||||||
Reply S.p.A. | 10,557 | 206,330 | ||||||
862,101 | ||||||||
Technology Hardware & Equipment 0.0% | ||||||||
Gefran S.p.A. | 39,000 | 107,526 |
See financial notes 43
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Telecommunication Services 0.2% | ||||||||
Fastweb * | 32,741 | 666,171 | ||||||
Transportation 0.1% | ||||||||
Autostrada Torino-Milano S.p.A. | 1,858 | 10,597 | ||||||
Autostrade Meridionali S.p.A. | 216 | 3,009 | ||||||
Societa Iniziative Autostradali e Servizi S.p.A. | 35,869 | 181,659 | ||||||
195,265 | ||||||||
Utilities 0.1% | ||||||||
ACEA S.p.A. | 26,526 | 316,789 | ||||||
9,546,085 | ||||||||
Japan 25.7% | ||||||||
Automobiles & Components 0.6% | ||||||||
Ahresty Corp. | 5,600 | 16,430 | ||||||
Aisan Industry Co., Ltd. | 56,300 | 261,486 | ||||||
Fuji Oozx, Inc. | 1,000 | 2,100 | ||||||
HI-LEX Corp. | 72,800 | 427,229 | ||||||
Ichishin Co., Ltd. | 24,500 | 49,507 | ||||||
Kikuchi Co., Ltd. | 2,100 | 15,589 | ||||||
Murakami Corp. | 2,000 | 6,715 | ||||||
Nihon Plast Co., Ltd. | 11,400 | 19,211 | ||||||
Nippon Seiki Co., Ltd. | 39,000 | 242,336 | ||||||
Nishikawa Rubber Co., Ltd. | 3,000 | 15,140 | ||||||
Nissan Shatai Co., Ltd. | 88,000 | 512,813 | ||||||
Nittan Valve Co., Ltd. | 8,300 | 20,375 | ||||||
Piolax, Inc. | 6,100 | 73,178 | ||||||
Sanoh Industrial Co., Ltd. | 300 | 1,184 | ||||||
SNT Corp. | 600 | 1,703 | ||||||
SOFT99 Corp. | 29,400 | 122,910 | ||||||
Suncall Corp. | 57,000 | 111,222 | ||||||
TBK Co., Ltd. | 3,000 | 3,384 | ||||||
Tigers Polymer Corp. | 8,300 | 29,410 | ||||||
Unipres Corp. | 9,100 | 64,038 | ||||||
Univance Corp. | 9,600 | 16,668 | ||||||
Yachiyo Industry Co., Ltd. | 100 | 506 | ||||||
2,013,134 | ||||||||
Banks 3.2% | ||||||||
Asax Co., Ltd. | 2 | 1,042 | ||||||
Sapporo Hokuyo Holdings, Inc. * | 219,000 | 621,001 | ||||||
The 77 Bank Ltd. | 7,000 | 34,917 | ||||||
The Aichi Bank Ltd. | 17,600 | 1,213,044 | ||||||
The Akita Bank Ltd. | 1,000 | 3,754 | ||||||
The Bank of Nagoya Ltd. | 1,000 | 4,211 | ||||||
The Bank of Saga Ltd. | 40,000 | 132,812 | ||||||
The Biwako Bank Ltd. | 1,000 | 1,041 | ||||||
The Chiba Kogyo Bank Ltd. * | 78,700 | 774,886 | ||||||
The Eighteenth Bank Ltd. | 337,000 | 1,159,397 | ||||||
The Higashi-Nippon Bank Ltd. | 367,000 | 993,821 | ||||||
The Higo Bank Ltd. | 51,000 | 295,514 | ||||||
The Hokuetsu Bank Ltd. | 11,000 | 18,382 | ||||||
The Hyakugo Bank Ltd. | 260,000 | 1,337,218 | ||||||
The Hyakujushi Bank Ltd. | 25,000 | 118,181 | ||||||
The Kagawa Bank Ltd. | 34,000 | 143,281 | ||||||
The Kita-Nippon Bank Ltd. | 5,100 | 150,336 | ||||||
The Mie Bank Ltd. | 81,000 | 254,037 | ||||||
The Minato Bank Ltd. * | 8,000 | 11,967 | ||||||
The Nishi-Nippon City Bank Ltd. | 471,000 | 1,031,647 | ||||||
The San-in Godo Bank Ltd. | 190,000 | 1,466,456 | ||||||
The Taiko Bank Ltd. | 63,000 | 129,377 | ||||||
The Tochigi Bank Ltd. | 62,000 | 302,795 | ||||||
The Yamanashi Chuo Bank Ltd. | 159,000 | 835,421 | ||||||
11,034,538 | ||||||||
Capital Goods 4.1% | ||||||||
Aichi Electric Co., Ltd. | 3,000 | 4,804 | ||||||
Aida Engineering Ltd. | 207,300 | 587,017 | ||||||
C-Cube Corp. | 77,100 | 202,692 | ||||||
Chodai Co., Ltd. | 23,000 | 55,595 | ||||||
Chudenko Corp. | 71,500 | 997,274 | ||||||
CTI Engineering Co., Ltd. | 38,300 | 230,976 | ||||||
Daiichi Kensetu Corp. | 3,000 | 18,951 | ||||||
Daimei Telecom Engineering Corp. | 21,000 | 195,326 | ||||||
Denkyosha Co., Ltd. | 20,000 | 96,707 | ||||||
Fuji Machine Manufacturing Co., Ltd. | 121,600 | 987,869 | ||||||
Furusato Industries Ltd. | 26,500 | 216,218 | ||||||
Futaba Corp. | 42,400 | 671,188 | ||||||
Inabata & Co., Ltd. | 18,900 | 48,777 | ||||||
Ishikawajima Transportation Machinery Co., Ltd. | 42,000 | 124,654 | ||||||
Japan Pulp & Paper Co., Ltd. | 142,000 | 401,034 | ||||||
JFE Shoji Holdings, Inc. | 181,000 | 485,178 | ||||||
Kamei Corp. | 93,000 | 416,910 | ||||||
Kanaden Corp. | 100,000 | 482,520 | ||||||
Koatsu Kogyo Co., Ltd. | 22,000 | 53,230 | ||||||
Komori Corp. | 31,200 | 256,561 | ||||||
Kowa Spinning Co., Ltd. | 12,000 | 32,003 | ||||||
Kuroda Electric Co., Ltd. | 1,800 | 9,948 | ||||||
Maeda Corp. | 140,000 | 489,071 | ||||||
Marufuji Sheet Piling Co., Ltd. | 29,000 | 38,618 | ||||||
Mitani Corp. | 28,100 | 122,069 | ||||||
Miyachi Corp. | 32,900 | 134,119 | ||||||
Musashi Co., Ltd. | 500 | 6,609 | ||||||
Nagase & Co., Ltd. | 143,000 | 1,107,002 | ||||||
Nakano Refrigerators Co., Ltd. | 100 | 775 | ||||||
Nichireki Co., Ltd. | 6,000 | 17,641 | ||||||
Nihon Decoluxe Co., Ltd. | 2,000 | 6,991 | ||||||
Nishio Rent All Co., Ltd. | 200 | 1,236 | ||||||
Nissei Plastic Industrial Co., Ltd. | 55,600 | 136,832 | ||||||
Nitto Kogyo Corp. | 50,600 | 390,669 | ||||||
Ohmoto Gumi Co., Ltd. | 34,000 | 86,559 | ||||||
Okaya & Co., Ltd. | 500 | 4,623 | ||||||
Oki Wintech Co., Ltd. | 33,000 | 176,389 | ||||||
Onoken Co., Ltd. | 47,300 | 351,887 | ||||||
Sanki Engineering Co., Ltd. | 2,000 | 10,922 | ||||||
Sankyo Rikagaku Co., Ltd. | 15,000 | 131,838 | ||||||
Sanso Electric Co., Ltd. * | 27,000 | 57,145 | ||||||
SEC Carbon Ltd. | 13,000 | 43,685 | ||||||
Seibu Electric Industry Co., Ltd. | 66,000 | 253,886 | ||||||
Senshu Electric Co., Ltd. | 19,100 | 151,472 | ||||||
ShinMaywa Industries Ltd. | 296,000 | 621,488 | ||||||
Solcom Co., Ltd. | 1,000 | 2,606 | ||||||
Sugimoto & Co., Ltd. | 2,600 | 23,921 | ||||||
Sumikin Bussan Corp. | 14,000 | 29,468 | ||||||
Taisei Oncho Co., Ltd. | 40,000 | 116,615 | ||||||
Taisei Rotec Corp. | 220,000 | 307,068 | ||||||
Takasago Thermal Engineering Co., Ltd. | 7,000 | 43,202 | ||||||
Takeuchi Mfg. Co., Ltd. | 43,900 | 282,141 | ||||||
Totech Corp. | 40,000 | 106,793 | ||||||
Trinity Industrial Corp. | 1,000 | 2,746 | ||||||
Trusco Nakayama Corp. | 91,900 | 1,098,346 |
44 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Tsurumi Manufacturing Co., Ltd. | 11,000 | 64,449 | ||||||
Tsuzuki Denki Co., Ltd. | 6,000 | 14,972 | ||||||
Uehara Sei Shoji Co., Ltd. | 51,000 | 172,385 | ||||||
Wakita & Co., Ltd. | 50,000 | 162,027 | ||||||
YAMABIKO Corp. | 25,300 | 293,422 | ||||||
Yondenko Corp. | 115,000 | 551,029 | ||||||
Yurtec Corp. | 9,000 | 48,281 | ||||||
14,236,429 | ||||||||
Commercial & Professional Supplies 0.1% | ||||||||
EJ Holdings, Inc. | 120 | 12,182 | ||||||
FujiStaff Holdings, Inc. | 64 | 7,213 | ||||||
Kawanishi Warehouse Co., Ltd. (b) | 7,000 | 38,541 | ||||||
Kimura Unity Co., Ltd. | 2,000 | 14,667 | ||||||
Kokuyo Co., Ltd. | 8,000 | 59,030 | ||||||
Temp Holdings Co., Ltd. | 2,800 | 14,370 | ||||||
Wesco, Inc. | 37,300 | 38,107 | ||||||
184,110 | ||||||||
Consumer Durables & Apparel 1.5% | ||||||||
Charle Co., Ltd. | 4,900 | 15,265 | ||||||
Cleanup Corp. | 4,000 | 17,978 | ||||||
Corona Corp. | 32,300 | 314,453 | ||||||
Fuji Corp. | 15,000 | 78,372 | ||||||
Fujix Ltd. | 11,000 | 30,476 | ||||||
Ichikawa Co., Ltd. | 77,000 | 217,504 | ||||||
Jichodo Co., Ltd. | 16,000 | 110,703 | ||||||
Kurabo Industries Ltd. | 659,000 | 908,009 | ||||||
Miyuki Holdings Co., Ltd. | 12,000 | 25,145 | ||||||
Onward Holdings Co., Ltd. | 73,000 | 483,233 | ||||||
Roland Corp. | 66,300 | 712,226 | ||||||
Sanei-International Co., Ltd. | 37,700 | 251,448 | ||||||
SRI Sports Ltd. | 459 | 358,028 | ||||||
Tachikawa Corp. | 55,700 | 259,639 | ||||||
Tokyo Style Co., Ltd. | 171,000 | 1,174,529 | ||||||
Toso Co., Ltd. | 28,000 | 59,120 | ||||||
Yamato International, Inc. | 9,300 | 33,409 | ||||||
5,049,537 | ||||||||
Consumer Services 0.3% | ||||||||
Daisyo Corp. | 14,200 | 200,644 | ||||||
Eikoh, Inc. | 11,100 | 32,745 | ||||||
Hurxley Corp. | 100 | 809 | ||||||
Nippon Game Card Corp. | 88 | 92,281 | ||||||
Resorttrust, Inc. | 1,800 | 16,694 | ||||||
Royal Holdings Co., Ltd. | 10,900 | 117,209 | ||||||
Shidax Corp. | 102,600 | 329,253 | ||||||
Shingakukai Co., Ltd. | 44,600 | 97,445 | ||||||
887,080 | ||||||||
Diversified Financials 0.3% | ||||||||
Century Leasing System, Inc. | 52,200 | 312,195 | ||||||
Daiko Clearing Services Corp. | 41,000 | 267,473 | ||||||
Fuyo General Lease Co., Ltd. | 1,000 | 12,612 | ||||||
Hitachi Capital Corp. | 13,600 | 146,396 | ||||||
Kyokuto Securities Co., Ltd. | 2,300 | 7,345 | ||||||
Pocket Card Co., Ltd. | 2,500 | 6,343 | ||||||
Ricoh Leasing Co., Ltd. | 300 | 5,025 | ||||||
Takefuji Corp. | 67,890 | 321,109 | ||||||
1,078,498 | ||||||||
Energy 0.4% | ||||||||
AOC Holdings, Inc. | 5,100 | 28,138 | ||||||
Cosmo Oil Co., Ltd. | 9,000 | 27,398 | ||||||
Itohchu Enex Co., Ltd. | 91,200 | 482,709 | ||||||
Kanto Natural Gas Development Co., Ltd. | 113,000 | 609,705 | ||||||
Sinanen Co., Ltd. | 64,000 | 276,537 | ||||||
1,424,487 | ||||||||
Food & Staples Retailing 1.6% | ||||||||
Aeon Hokkaido Corp. * | 2,600 | 8,288 | ||||||
Allied Hearts Holdings Co., Ltd. | 10,000 | 19,287 | ||||||
Cawachi Ltd. | 66,700 | 1,026,039 | ||||||
Circle K Sunkus Co., Ltd. | 54,800 | 781,225 | ||||||
Create SD Co., Ltd. * | 11,600 | 179,300 | ||||||
Heiwado Co., Ltd. | 62,900 | 785,815 | ||||||
Itochu-Shokuhin Co., Ltd. | 100 | 3,540 | ||||||
Kasumi Co., Ltd. | 151,000 | 573,135 | ||||||
Kirindo Co., Ltd. | 7,300 | 35,522 | ||||||
Marukyo Corp. | 8,000 | 30,865 | ||||||
Maxvalu Nishinihon Co., Ltd. | 3,200 | 40,452 | ||||||
Maxvalu Tokai Co., Ltd. | 6,100 | 67,739 | ||||||
Ministop Co., Ltd. | 50,000 | 782,754 | ||||||
Poplar Co., Ltd. * | 1,900 | 12,077 | ||||||
S Foods, Inc. | 1,000 | 7,925 | ||||||
San-A Co., Ltd. | 4,400 | 123,381 | ||||||
Satoh & Co., Ltd. | 100 | 846 | ||||||
Unimat Life Corp. | 100 | 846 | ||||||
Universe Co., Ltd. | 6,400 | 71,414 | ||||||
Uny Co., Ltd. | 27,000 | 214,082 | ||||||
Valor Co., Ltd. | 84,800 | 616,079 | ||||||
5,380,611 | ||||||||
Food, Beverage & Tobacco 2.3% | ||||||||
Coca-Cola Central Japan Co., Ltd. | 84,700 | 1,127,667 | ||||||
DyDo Drinco, Inc. | 4,500 | 115,193 | ||||||
House Foods Corp. | 2,700 | 37,651 | ||||||
Itoham Foods, Inc. | 75,000 | 216,894 | ||||||
Marudai Food Co., Ltd. | 147,000 | 351,265 | ||||||
Meiji Seika Kaisha Ltd. | 333,000 | 1,156,717 | ||||||
Mercian Corp. | 216,000 | 370,704 | ||||||
Mikuni Coca-Cola Bottling Co., Ltd. | 129,600 | 1,014,584 | ||||||
Morinaga Milk Industry Co., Ltd. | 327,000 | 978,642 | ||||||
Nichiwa Sangyo Co., Ltd. | 56,000 | 93,390 | ||||||
Nippon Beet Sugar Manufacturing Co., Ltd. | 146,000 | 328,343 | ||||||
Nippon Flour Mills Co., Ltd. | 8,000 | 32,692 | ||||||
Nissin Sugar Manufacturing Co., Ltd. | 112,000 | 214,815 | ||||||
Q.P. Corp. | 105,500 | 1,136,392 | ||||||
Sonton Food Industry Co., Ltd. | 30,000 | 166,022 | ||||||
Yonekyu Corp. | 46,000 | 463,820 | ||||||
7,804,791 | ||||||||
Health Care Equipment & Services 0.8% | ||||||||
Aloka Co., Ltd. | 2,600 | 18,763 | ||||||
BML, Inc. | 38,400 | 715,316 | ||||||
Create Medic Co., Ltd. | 3,700 | 29,782 | ||||||
Fukuda Denshi Co., Ltd. | 12,700 | 247,048 | ||||||
Hitachi Medical Corp. | 97,000 | 755,938 | ||||||
Kawasumi Laboratories, Inc. | 2,000 | 11,176 | ||||||
N.I.C. Corp. | 42,600 | 186,068 | ||||||
Nakanishi, Inc. | 300 | 17,070 | ||||||
Suzuken Co., Ltd. | 33,200 | 870,866 | ||||||
Tokiwa Yakuhin Co., Ltd. | 12,000 | 31,641 | ||||||
2,883,668 |
See financial notes 45
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Household & Personal Products 0.9% | ||||||||
Aderans Holdings Co., Ltd. | 84,100 | 612,261 | ||||||
Fancl Corp. | 21,100 | 239,105 | ||||||
Kose Corp. | 46,800 | 875,853 | ||||||
Lion Corp. | 25,000 | 116,799 | ||||||
Mandom Corp. | 48,400 | 802,059 | ||||||
Milbon Co., Ltd. | 17,400 | 372,548 | ||||||
3,018,625 | ||||||||
Materials 2.5% | ||||||||
Arakawa Chemical Industrial Ltd. | 5,700 | 36,165 | ||||||
Asahi Industries Co., Ltd. | 184 | 222,573 | ||||||
Atomix Co., Ltd. | 3,000 | 10,380 | ||||||
Chubu Steel Plate Co., Ltd. | 97,100 | 571,932 | ||||||
Chuetsu Pulp & Paper Co., Ltd. | 7,000 | 17,690 | ||||||
Earth Chemical Co., Ltd. | 8,700 | 226,332 | ||||||
Fujikura Kasei Co., Ltd. | 900 | 3,354 | ||||||
Fuso Chemical Co., Ltd. | 12,300 | 78,530 | ||||||
Kaneka Corp. | 217,000 | 1,072,884 | ||||||
Koei Chemical Co., Ltd. | 1,000 | 2,677 | ||||||
Mitani Sekisan Co., Ltd. | 200 | 836 | ||||||
Mitsui Chemicals, Inc. | 173,000 | 423,466 | ||||||
Mory Industries, Inc. | 14,000 | 30,704 | ||||||
N.E. Chemcat Corp. | 41,000 | 402,096 | ||||||
Nichia Steel Works Ltd. | 86,000 | 222,669 | ||||||
Nihon Kagaku Sangyo Co., Ltd. | 15,000 | 68,694 | ||||||
Nippon Kodoshi Corp. | 8,000 | 37,986 | ||||||
Nitto FC Co., Ltd. | 6,000 | 26,768 | ||||||
Osaka Steel Co., Ltd. | 42,400 | 710,651 | ||||||
Sakai Chemical Industry Co., Ltd. | 289,000 | 825,542 | ||||||
Sakata Inx Corp. | 6,000 | 16,504 | ||||||
Sanyo Chemical Industries Ltd. | 51,000 | 239,067 | ||||||
SK Kaken Co., Ltd. | 2,000 | 35,339 | ||||||
Soken Chemical & Engineering Co., Ltd. | 4,100 | 18,448 | ||||||
Sumitomo Seika Chemicals Co., Ltd. | 169,000 | 466,448 | ||||||
T&K Toka Co., Ltd. | 10,500 | 51,377 | ||||||
Teijin Ltd. | 193,000 | 421,695 | ||||||
Toagosei Co., Ltd. | 446,000 | 1,004,198 | ||||||
Topy Industries Ltd. | 401,000 | 589,363 | ||||||
Toyo Ink Mfg. Co., Ltd. | 82,000 | 166,373 | ||||||
Toyo Kohan Co., Ltd. | 4,000 | 12,406 | ||||||
Yodogawa Steel Works Ltd. | 111,000 | 458,897 | ||||||
8,472,044 | ||||||||
Media 0.4% | ||||||||
Chubu-Nippon Broadcasting Co., Ltd. | 800 | 6,079 | ||||||
Daiichikosho Co., Ltd. | 102,400 | 841,236 | ||||||
RKB Mainichi Broadcasting Corp. | 32,000 | 254,423 | ||||||
Tohokushinsha Film Corp. | 500 | 3,556 | ||||||
TV Asahi Corp. | 405 | 452,234 | ||||||
1,557,528 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.7% | ||||||||
Nippon Shinyaku Co., Ltd. | 133,000 | 1,178,119 | ||||||
Seikagaku Corp. | 23,400 | 231,429 | ||||||
Torii Pharmaceutical Co., Ltd. | 76,400 | 1,056,548 | ||||||
2,466,096 | ||||||||
Real Estate 0.1% | ||||||||
Hosoda Corp. | 51,100 | 57,819 | ||||||
Nisshin Fudosan Co., Ltd. | 61,000 | 109,496 | ||||||
Sankyo Frontier Co., Ltd. | 63,000 | 146,837 | ||||||
314,152 | ||||||||
Retailing 2.4% | ||||||||
AOKl Holdings, Inc. | 77,100 | 692,113 | ||||||
Aoyama Trading Co., Ltd. | 98,500 | 1,300,406 | ||||||
AT-Group Co., Ltd. | 20,000 | 153,896 | ||||||
Belluna Co., Ltd. | 118,950 | 307,822 | ||||||
Central Automotive Products Ltd. | 3,000 | 8,636 | ||||||
EDION Corp. | 91,000 | 226,986 | ||||||
Felissimo Corp. | 2,200 | 38,153 | ||||||
Fujitsu Business Systems Ltd. | 74,200 | 913,720 | ||||||
H2O Retailing Corp. | 56,000 | 322,877 | ||||||
Haruyama Trading Co., Ltd. | 21,800 | 76,952 | ||||||
Hikari Furniture Co., Ltd. | 1,000 | 3,223 | ||||||
J. Front Retailing Co., Ltd. | 252,000 | 877,030 | ||||||
Kato Sangyo Co., Ltd. | 2,400 | 35,249 | ||||||
King Co., Ltd. | 64,000 | 125,316 | ||||||
Kitamura Co., Ltd. | 2,100 | 8,787 | ||||||
Kohnan Shoji Co., Ltd. | 42,800 | 368,156 | ||||||
Ku Co., Ltd. | 52,200 | 115,872 | ||||||
Mac House Co., Ltd. | 8,900 | 38,750 | ||||||
Marui Group Co., Ltd. | 5,900 | 31,715 | ||||||
Nafco Co., Ltd. | 40,100 | 370,376 | ||||||
Nagahori Corp. | 45,000 | 68,192 | ||||||
Sazaby League, Ltd. | 45,600 | 510,193 | ||||||
Senshukai Co., Ltd. | 83,200 | 588,633 | ||||||
Takashimaya Co., Ltd. | 172,000 | 996,767 | ||||||
Tokyo Derica Co., Ltd. | 7,800 | 23,396 | ||||||
Warehouse Co., Ltd. | 23,800 | 101,261 | ||||||
8,304,477 | ||||||||
Semiconductors & Semiconductor Equipment 0.3% | ||||||||
Aoi Electronics Co., Ltd. | 3,000 | 13,724 | ||||||
Lasertec Corp. | 10,600 | 56,139 | ||||||
Mimasu Semiconductor Industry Co., Ltd. | 1,100 | 12,165 | ||||||
Mitsui High-tec, Inc. | 124,000 | 805,541 | ||||||
USC Corp. | 100 | 838 | ||||||
888,407 | ||||||||
Software & Services 0.6% | ||||||||
Argo Graphics, Inc. | 1,200 | 11,895 | ||||||
Atlus Co., Ltd. | 6,500 | 24,091 | ||||||
CAC Corp. | 13,000 | 74,130 | ||||||
Computer Engineering & Consulting Ltd. | 1,000 | 6,278 | ||||||
Hitachi Information Systems Ltd. | 100 | 1,645 | ||||||
Hitachi Software Engineering Co., Ltd. | 57,500 | 713,244 | ||||||
Hitachi System & Services Ltd. | 15,800 | 142,356 | ||||||
INES Corp. | 2,800 | 15,333 | ||||||
Information Services International-Dentsu Ltd. | 16,600 | 87,975 | ||||||
Japan Process Development Co., Ltd. | 16,600 | 92,431 | ||||||
NEC Fielding Ltd. | 101,800 | 1,025,717 | ||||||
Nifty Corp. | 39 | 35,294 | ||||||
Sumisho Computer Systems Corp. | 700 | 8,075 | ||||||
2,238,464 | ||||||||
Technology Hardware & Equipment 1.6% | ||||||||
Canon Electronics, Inc. | 2,500 | 30,116 | ||||||
Daishinku Corp. | 113,000 | 174,190 |
46 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Furuno Electric Co., Ltd. | 78,300 | 396,202 | ||||||
Hagiwara Electric Co., Ltd. | 14,200 | 65,035 | ||||||
Hakuto Co., Ltd. | 59,600 | 361,395 | ||||||
Hitachi Maxell Ltd. | 135,800 | 986,141 | ||||||
Innotech Corp. | 46,100 | 106,349 | ||||||
Iriso Electronics Co., Ltd. | 12,300 | 60,287 | ||||||
Katsuragawa Electric Co., Ltd. | 3,000 | 7,892 | ||||||
Kitagawa Industries Co., Ltd. | 9,700 | 102,929 | ||||||
Nippon Antenna Co., Ltd. | 3,200 | 17,205 | ||||||
Nippon Chemi-Con Corp. | 127,000 | 263,214 | ||||||
OMRON Corp. | 33,200 | 393,784 | ||||||
Riso Kagaku Corp. | 51,500 | 471,522 | ||||||
Ryoden Trading Co., Ltd. | 40,000 | 172,246 | ||||||
Ryoyo Electro Corp. | 80,900 | 672,607 | ||||||
Sanshin Electronics Co., Ltd. | 700 | 4,495 | ||||||
Satori Electric Co., Ltd. | 13,700 | 53,379 | ||||||
Shinko Shoji Co., Ltd. | 15,400 | 102,205 | ||||||
Sumida Corp. | 1,300 | 5,861 | ||||||
Sun-Wa Technos Corp. | 500 | 2,223 | ||||||
Toshiba Tec Corp. | 401,000 | 1,027,471 | ||||||
Tsuzuki Densan Co., Ltd. | 27,900 | 64,039 | ||||||
5,540,787 | ||||||||
Telecommunication Services 0.1% | ||||||||
Okinawa Cellular Telephone Co. | 290 | 498,772 | ||||||
Transportation 0.8% | ||||||||
Hutech Norin Co., Ltd. | 100 | 452 | ||||||
Isewan Terminal Service Co., Ltd. | 75,000 | 289,114 | ||||||
Kawasaki Kisen Kaisha Ltd. | 347,000 | 1,090,646 | ||||||
Meiko Trans Co., Ltd. | 25,000 | 160,794 | ||||||
Nippon Konpo Unyu Soko Co., Ltd. | 18,000 | 142,040 | ||||||
Seino Holdings Co., Ltd. | 248,000 | 1,199,508 | ||||||
Tokyo Kisen Co., Ltd. | 1,000 | 5,933 | ||||||
2,888,487 | ||||||||
Utilities 0.1% | ||||||||
Hokuriku Gas Co., Ltd. | 5,000 | 13,655 | ||||||
Keiyo Gas Co., Ltd. | 49,000 | 173,226 | ||||||
Otaki Gas Co., Ltd. | 16,000 | 108,299 | ||||||
The Chubu Gas Co., Ltd. | 1,000 | 2,448 | ||||||
297,628 | ||||||||
88,462,350 | ||||||||
Luxembourg 0.5% | ||||||||
Household & Personal Products 0.1% | ||||||||
Oriflame Cosmetics S.A. SDR | 7,175 | 224,017 | ||||||
Telecommunication Services 0.4% | ||||||||
COLT Telecom Group S.A. * | 1,149,000 | 1,432,903 | ||||||
1,656,920 | ||||||||
Malaysia 0.0% | ||||||||
Real Estate 0.0% | ||||||||
Rekapacific Berhad (a)(b) * | 24,000 | — | ||||||
Netherlands 3.9% | ||||||||
Capital Goods 0.3% | ||||||||
Draka Holdings N.V. | 119,857 | 860,961 | ||||||
Imtech N.V. | 10,285 | 141,408 | ||||||
1,002,369 | ||||||||
Commercial & Professional Supplies 0.4% | ||||||||
Brunel International N.V. | 20,162 | 253,943 | ||||||
Randstad Holding N.V. * | 50,689 | 859,906 | ||||||
Teleplan International N.V. * | 6,975 | 4,384 | ||||||
USG People N.V. | 42,123 | 338,256 | ||||||
1,456,489 | ||||||||
Consumer Durables & Apparel 0.0% | ||||||||
Gamma Holding N.V. | 19,774 | 92,075 | ||||||
Food, Beverage & Tobacco 0.6% | ||||||||
CSM | 171,069 | 1,997,518 | ||||||
Koninklijike Wessanen N.V. | 45,641 | 155,224 | ||||||
2,152,742 | ||||||||
Materials 1.3% | ||||||||
James Hardie Industries N.V. CDI | 202,746 | 593,240 | ||||||
Koninklijke DSM N.V. | 148,800 | 3,915,319 | ||||||
4,508,559 | ||||||||
Media 0.1% | ||||||||
DOCdata N.V. | 17,209 | 135,263 | ||||||
Semiconductors & Semiconductor Equipment 0.0% | ||||||||
BE Semiconductor Industries N.V. * | 62,821 | 133,462 | ||||||
Software & Services 0.0% | ||||||||
Ordina N.V. | 11,087 | 39,189 | ||||||
Technology Hardware & Equipment 1.2% | ||||||||
Gemalto N.V. * | 143,153 | 4,086,100 | ||||||
13,606,248 | ||||||||
New Zealand 0.2% | ||||||||
Consumer Services 0.0% | ||||||||
Millennium & Capthorne Hotels New Zealand Ltd. | 340,586 | 70,446 | ||||||
Transportation 0.2% | ||||||||
Air New Zealand Ltd. | 1,034,014 | 530,865 | ||||||
Utilities 0.0% | ||||||||
Vector Ltd. | 104,900 | 136,452 | ||||||
737,763 | ||||||||
Portugal 0.5% | ||||||||
Banks 0.3% | ||||||||
Banif, SGPS, S.A. - Reg’d | 696,000 | 952,135 | ||||||
Consumer Services 0.0% | ||||||||
Ibersol - SGPS, S.A. | 2,871 | 24,509 | ||||||
Materials 0.0% | ||||||||
Corticeira Amorim S.A. | 3,256 | 2,505 | ||||||
Software & Services 0.1% | ||||||||
Novabase, SGPS, S.A. * | 50,419 | 277,660 | ||||||
Utilities 0.1% | ||||||||
Redes Energeticas Nacionais S.A. | 97,133 | 405,595 | ||||||
1,662,404 | ||||||||
Republic of Korea 4.0% | ||||||||
Automobiles & Components 0.2% | ||||||||
Dong Ah Tire & Rubber Co., Ltd. | 7,660 | 38,981 | ||||||
Dong-Il Corp. | 1,074 | 36,716 | ||||||
Global & Yuasa Battery Co., Ltd. | 17,270 | 284,676 |
See financial notes 47
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Halla Climate Control Corp. | 48,220 | 272,000 | ||||||
632,373 | ||||||||
Capital Goods 0.1% | ||||||||
Kyeryong Construction Industrial Co., Ltd. | 12,200 | 190,356 | ||||||
Silla Co., Ltd. | 1,360 | 13,536 | ||||||
Ssangyong Engineering & Construction Co., Ltd. * | 1,576 | 8,415 | ||||||
212,307 | ||||||||
Commercial & Professional Supplies 0.0% | ||||||||
Fursys, Inc. | 8,000 | 119,140 | ||||||
Consumer Durables & Apparel 0.3% | ||||||||
Handsome Co., Ltd. | 43,160 | 262,138 | ||||||
Hanssem Co., Ltd. | 30,630 | 137,322 | ||||||
Intelligent Digital Integrated Security Co., Ltd. | 5,300 | 65,867 | ||||||
Youngone Corp. | 62,590 | 393,932 | ||||||
859,259 | ||||||||
Diversified Financials 0.1% | ||||||||
Daishin Securities Co. * | 2,420 | 30,092 | ||||||
Shinyoung Securities Co., Ltd. * | 12,833 | 339,283 | ||||||
369,375 | ||||||||
Energy 0.1% | ||||||||
SK Gas Co., Ltd. | 8,260 | 349,354 | ||||||
Food, Beverage & Tobacco 0.7% | ||||||||
Binggrae Co., Ltd. | 3,580 | 108,975 | ||||||
Daehan Flour Mill Co., Ltd. | 1,010 | 75,349 | ||||||
Daesang Corp. * | 48,600 | 205,141 | ||||||
Dongwon Industries Co., Ltd. | 3,420 | 212,066 | ||||||
Lotte Chilsung Beverage Co., Ltd. | 870 | 542,907 | ||||||
Lotte Confectionery Co., Ltd. | 100 | 74,899 | ||||||
Lotte Samkang Co., Ltd. | 2,134 | 213,077 | ||||||
Namyang Dairy Products Co., Ltd. | 1,070 | 349,722 | ||||||
Nong Shim Co., Ltd. | 280 | 43,630 | ||||||
Nong Shim Holdings Co., Ltd. | 790 | 31,844 | ||||||
Ottogi Corp. | 3,158 | 291,329 | ||||||
Samyang Corp. | 8,459 | 215,575 | ||||||
TS Corp. | 3,860 | 146,289 | ||||||
2,510,803 | ||||||||
Household & Personal Products 0.1% | ||||||||
Pacific Corp. | 4,860 | 307,217 | ||||||
Insurance 0.4% | ||||||||
Hyundai Marine & Fire Insurance Co., Ltd. (HDMF) * | 38,510 | 352,776 | ||||||
Korean Reinsurance Co. * | 8,630 | 66,730 | ||||||
LIG Non-Life Insurance Co., Ltd. * | 67,940 | 664,760 | ||||||
Meritz Fire & Marine Insurance Co., Ltd. | 118,310 | 335,725 | ||||||
1,419,991 | ||||||||
Materials 0.8% | ||||||||
Asia Cement Co., Ltd. | 8,288 | 246,503 | ||||||
Hanwha Chemical Corp. | 64,310 | 442,147 | ||||||
Huchems Fine Chemical Corp. | 4,660 | 65,697 | ||||||
Kisco Corp. | 13,062 | 469,784 | ||||||
KISWIRE Ltd. | 5,320 | 151,039 | ||||||
Korea Zinc Co., Ltd. | 3,870 | 320,705 | ||||||
KP Chemical Corp. * | 64,730 | 292,309 | ||||||
Moorim Paper Co., Ltd. | 24,820 | 138,516 | ||||||
SeAH Holdings Corp. | 1,838 | 81,316 | ||||||
Taekwang Industrial Co., Ltd. | 224 | 103,190 | ||||||
Unid Co., Ltd. | 8,440 | 248,568 | ||||||
Young Poong Corp. | 564 | 205,956 | ||||||
2,765,730 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||||||||
Chong Kun Dang Pharm Corp. | 12,750 | 167,860 | ||||||
Daewoong Co., Ltd. * | 10,320 | 170,708 | ||||||
Green Cross Holdings Corp. | 346 | 15,092 | ||||||
Handok Pharmaceuticals Co., Ltd. | 570 | 5,447 | ||||||
Hanmi Pharm Co., Ltd. | 411 | 44,720 | ||||||
Il Dong Pharmaceutical Co., Ltd. * | 5,763 | 146,349 | ||||||
Ilsung Pharmaceuticals Co., Ltd. | 4,278 | 191,342 | ||||||
Kwang Dong Pharmaceutical Co., Ltd. | 96,930 | 240,041 | ||||||
981,559 | ||||||||
Retailing 0.3% | ||||||||
Dongsuh Co., Inc. | 5,050 | 94,566 | ||||||
GS Home Shopping, Inc. | 5,930 | 219,813 | ||||||
GwangjuShinsegae Co., Ltd. | 812 | 57,957 | ||||||
Hyundai Department Store Co., Ltd. | 13,490 | 703,713 | ||||||
1,076,049 | ||||||||
Software & Services 0.1% | ||||||||
Daou Technology, Inc. | 71,800 | 336,798 | ||||||
NCSoft Corp. | 1,650 | 111,205 | ||||||
448,003 | ||||||||
Technology Hardware & Equipment 0.1% | ||||||||
People & Telecommunication | 14,670 | 97,771 | ||||||
Sindo Ricoh Co., Ltd. | 2,190 | 84,493 | ||||||
182,264 | ||||||||
Telecommunication Services 0.1% | ||||||||
LG Dacom Corp. | 26,370 | 335,043 | ||||||
Transportation 0.0% | ||||||||
Sebang Co., Ltd. | 13,360 | 106,100 | ||||||
Utilities 0.3% | ||||||||
Daehan City Gas Co., Ltd. | 3,870 | 72,470 | ||||||
E1 Corp. | 4,567 | 229,157 | ||||||
KyungDong City Gas Co., Ltd. | 1,440 | 42,301 | ||||||
Samchully Co., Ltd. | 5,040 | 419,117 | ||||||
Seoul City Gas Co., Ltd. | 3,275 | 121,203 | ||||||
YESCO Co., Ltd. | 7,350 | 133,722 | ||||||
1,017,970 | ||||||||
13,692,537 | ||||||||
Singapore 0.8% | ||||||||
Capital Goods 0.2% | ||||||||
Haw Par Corp., Ltd. | 232,000 | 533,098 | ||||||
Hi-P International Ltd. | 645,000 | 195,402 | ||||||
728,500 | ||||||||
Consumer Services 0.1% | ||||||||
Hotel Plaza Ltd. | 354,000 | 209,212 | ||||||
Diversified Financials 0.4% | ||||||||
G.K. Goh Holdings Ltd. | 977 | 280 | ||||||
Hong Leong Finance Ltd. | 87,000 | 103,855 | ||||||
K1 Ventures Ltd. | 3,842,000 | 302,987 | ||||||
Kim Eng Holdings Ltd. | 544,513 | 476,122 |
48 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
UOB-Kay Hian Holdings Ltd. | 527,850 | 382,638 | ||||||
1,265,882 | ||||||||
Food, Beverage & Tobacco 0.1% | ||||||||
Cerebos Pacific Ltd. | 38,000 | 61,882 | ||||||
People’s Food Holdings Ltd. | 800,000 | 257,503 | ||||||
319,385 | ||||||||
Real Estate 0.0% | ||||||||
Mapletree Logistics Trust | 445,000 | 109,352 | ||||||
Starhill Global REIT | 57,000 | 17,036 | ||||||
126,388 | ||||||||
Retailing 0.0% | ||||||||
Metro Holdings Ltd. | 765,000 | 133,572 | ||||||
Technology Hardware & Equipment 0.0% | ||||||||
Elec & Eltek International Co., Ltd. | 37,000 | 34,827 | ||||||
2,817,766 | ||||||||
Spain 2.3% | ||||||||
Capital Goods 0.1% | ||||||||
Abengoa S.A. | 9,995 | 132,834 | ||||||
Nicolas Correa S.A. | 24,923 | 65,912 | ||||||
Solaria Energia y Medio Ambiente S.A. * | 34,551 | 70,153 | ||||||
Tecnocom, Telecomunicaciones y Energia S.A. * | 39,087 | 165,105 | ||||||
434,004 | ||||||||
Commercial & Professional Supplies 0.8% | ||||||||
Befesa Medio Ambiente S.A. * | 27,456 | 517,998 | ||||||
Prosegur, Compania de Seguridad S.A. - Reg’d | 76,608 | 2,062,994 | ||||||
2,580,992 | ||||||||
Food, Beverage & Tobacco 1.0% | ||||||||
Campofrio Food Group S.A. | 123,478 | 1,221,520 | ||||||
Ebro Puleva S.A. | 150,768 | 1,769,637 | ||||||
Pescanova S.A. | 17,100 | 590,358 | ||||||
3,581,515 | ||||||||
Insurance 0.3% | ||||||||
Grupo Catalana Occidente S.A. | 78,104 | 923,445 | ||||||
Materials 0.1% | ||||||||
Ercros S.A. * | 2,413,734 | 416,613 | ||||||
Miquel y Costas & Miquel S.A. | 495 | 8,369 | ||||||
424,982 | ||||||||
7,944,938 | ||||||||
Sweden 2.4% | ||||||||
Capital Goods 0.1% | ||||||||
Addtech AB, B Shares | 19,445 | 176,697 | ||||||
Consilium AB, B Shares | 6,245 | 21,356 | ||||||
OEM International AB, B Shares | 9,820 | 50,360 | ||||||
248,413 | ||||||||
Commercial & Professional Supplies 0.1% | ||||||||
AF AB, B Shares | 15,951 | 207,505 | ||||||
Proffice AB, B Shares * | 32,088 | 37,638 | ||||||
245,143 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences 0.6% | ||||||||
Biotage AB * | 178,800 | 106,973 | ||||||
Meda AB, A Shares | 319,794 | 1,892,758 | ||||||
1,999,731 | ||||||||
Real Estate 0.0% | ||||||||
Din Bostad AB | 57,764 | 124,743 | ||||||
Software & Services 0.2% | ||||||||
Acando AB | 266,101 | 348,085 | ||||||
Addnode AB | 34,730 | 104,538 | ||||||
Connecta AB | 44,187 | 246,790 | ||||||
Know IT AB | 24,768 | 92,559 | ||||||
LBI International AB * | 5,753 | 7,508 | ||||||
ProAct IT Group AB | 14,097 | 72,742 | ||||||
872,222 | ||||||||
Technology Hardware & Equipment 0.1% | ||||||||
Pricer AB, B Shares * | 2,893,471 | 185,957 | ||||||
Telecommunication Services 1.2% | ||||||||
Tele2 AB, B Shares | 510,000 | 4,299,288 | ||||||
Transportation 0.1% | ||||||||
Rederi AB Transatlantic | 65,778 | 193,002 | ||||||
8,168,499 | ||||||||
Switzerland 6.3% | ||||||||
Banks 0.2% | ||||||||
Banque Cantonale de Geneve | 1,304 | 227,904 | ||||||
Banque Cantonale Vaudoise - Reg’d | 926 | 307,013 | ||||||
534,917 | ||||||||
Capital Goods 1.2% | ||||||||
Carlo Gavazzi Holding AG | 1,170 | 91,925 | ||||||
Conzzeta AG | 1,035 | 1,164,099 | ||||||
Daetwyler Holding AG * | 44,500 | 1,562,178 | ||||||
Feintool International Holding AG - Reg’d | 1,932 | 274,054 | ||||||
Kardex AG * | 6,490 | 160,317 | ||||||
Sulzer AG - Reg’d | 11,044 | 569,902 | ||||||
Walter Meier AG, Class A - Reg’d | 4,831 | 226,117 | ||||||
4,048,592 | ||||||||
Consumer Durables & Apparel 0.3% | ||||||||
Forbo Holding AG - Reg’d * | 7,335 | 1,081,449 | ||||||
Consumer Services 0.8% | ||||||||
Kuoni Reisen Holding AG - Reg’d | 11,100 | 2,688,731 | ||||||
MCH Messe Schweiz Holding AG - Reg’d | 2,700 | 60,492 | ||||||
2,749,223 | ||||||||
Diversified Financials 0.1% | ||||||||
Valartis Group AG | 11,876 | 153,539 | ||||||
Food, Beverage & Tobacco 0.3% | ||||||||
Emmi AG - Reg’d | 13,172 | 1,167,795 | ||||||
Insurance 1.1% | ||||||||
Baloise Holding AG - Reg’d | 29,013 | 1,854,291 | ||||||
Schweizerische National-Versicherungs-Gesellschaft - Reg’d | 2,567 | 1,132,383 |
See financial notes 49
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
Vaudoise Assurances Holding S.A. - Reg’d | 6,492 | 799,342 | ||||||
3,786,016 | ||||||||
Materials 1.0% | ||||||||
Clariant AG - Reg’d * | 518,000 | 2,010,017 | ||||||
CPH Chemie & Papier Holding AG - Reg’d | 102 | 109,223 | ||||||
Siegfried Holding AG - Reg’d | 9,738 | 475,193 | ||||||
Swissmetal Holding AG * | 8,624 | 49,927 | ||||||
Vetropack Holding AG | 546 | 599,500 | ||||||
3,243,860 | ||||||||
Real Estate 0.0% | ||||||||
LO Holding Lausanne-Ouchy S.A. - Reg’d | 77 | 69,179 | ||||||
PAX-Anlage AG - Reg’d | 60 | 40,105 | ||||||
109,284 | ||||||||
Retailing 0.1% | ||||||||
Bossard Holding AG | 3,123 | 104,159 | ||||||
Dufry Group - Reg’d | 4,150 | 62,670 | ||||||
Metraux Services Holding AG - Reg’d | 1,503 | 96,385 | ||||||
263,214 | ||||||||
Technology Hardware & Equipment 0.4% | ||||||||
Also Holding - Reg’d * | 3,777 | 86,366 | ||||||
Inficon Holding AG - Reg’d | 8,287 | 615,398 | ||||||
Phoenix Mecano AG | 3,582 | 770,995 | ||||||
1,472,759 | ||||||||
Transportation 0.2% | ||||||||
The Jungfraubahn Holding AG - Reg’d | 21,324 | 779,003 | ||||||
Utilities 0.6% | ||||||||
Energiedienst Holding AG - Reg’d * | 49,560 | 2,133,426 | ||||||
21,523,077 | ||||||||
United Kingdom 16.2% | ||||||||
Capital Goods 2.3% | ||||||||
Balfour Beatty plc | 64,352 | 301,772 | ||||||
Bodycote plc | 66,762 | 118,791 | ||||||
Carr’s Milling Industries plc | 27,358 | 173,810 | ||||||
Galliford Try plc | 1,167,347 | 668,627 | ||||||
Hampson Industries plc | 5,480 | 7,106 | ||||||
J. Smart & Co. (Contractors) plc | 34,041 | 159,963 | ||||||
Keller Group plc | 184,222 | 1,298,463 | ||||||
Meggitt plc | 1,007,777 | 1,854,639 | ||||||
MS International plc | 19,986 | 21,459 | ||||||
Qinetiq plc | 1,598,309 | 3,029,012 | ||||||
Trifast plc | 205,179 | 25,939 | ||||||
Waterman Group plc | 55,702 | 26,784 | ||||||
7,686,365 | ||||||||
Commercial & Professional Supplies 0.4% | ||||||||
Communisis plc | 409,580 | 163,028 | ||||||
Management Consulting Group plc | 707,895 | 304,349 | ||||||
OPD Group plc | 72,614 | 41,047 | ||||||
Sthree plc | 214,013 | 533,563 | ||||||
Tribal Group plc | 169,542 | 236,677 | ||||||
1,278,664 | ||||||||
Consumer Services 2.7% | ||||||||
J.D. Wetherspoon plc | 157,742 | 956,711 | ||||||
Millennium & Copthorne Hotels plc | 134,938 | 332,614 | ||||||
Sportech plc * | 10,493 | 11,114 | ||||||
Thomas Cook Group plc | 1,104,100 | 3,802,042 | ||||||
Whitbread plc | 375,546 | 4,241,166 | ||||||
9,343,647 | ||||||||
Diversified Financials 0.7% | ||||||||
Close Brothers Group plc | 64,819 | 498,858 | ||||||
Investec plc | 453,766 | 1,899,948 | ||||||
2,398,806 | ||||||||
Food, Beverage & Tobacco 0.3% | ||||||||
Britvic plc | 284,902 | 922,438 | ||||||
Health Care Equipment & Services 0.0% | ||||||||
Biocompatibles International plc * | 26,450 | 47,841 | ||||||
Household & Personal Products 0.2% | ||||||||
McBride plc | 457,325 | 758,550 | ||||||
Insurance 1.2% | ||||||||
Friends Provident plc | 482,739 | 478,671 | ||||||
Hardy Underwriting Bermuda Ltd. | 237,099 | 877,696 | ||||||
Jardine Lloyd Thompson Group plc | 196,977 | 1,237,230 | ||||||
Old Mutual plc | 1,395,250 | 1,038,718 | ||||||
St. James’s Place plc | 214,695 | 513,394 | ||||||
4,145,709 | ||||||||
Materials 0.9% | ||||||||
British Polythene Industries plc | 87,500 | 152,952 | ||||||
DS Smith plc | 287,249 | 205,871 | ||||||
Elementis plc | 1,225,784 | 482,165 | ||||||
Mondi plc | 1,043,140 | 2,210,150 | ||||||
3,051,138 | ||||||||
Media 0.4% | ||||||||
4imprint plc | 108,000 | 175,620 | ||||||
Aegis Group plc | 228,750 | 271,216 | ||||||
Chime Communications plc | 19,646 | 19,492 | ||||||
Informa plc | 260,528 | 981,533 | ||||||
1,447,861 | ||||||||
Retailing 1.2% | ||||||||
Home Retail Group plc | 1,100,000 | 3,541,702 | ||||||
JD Sports Fashion plc | 106,888 | 474,122 | ||||||
John Menzies plc | 186,564 | 161,967 | ||||||
Woolworths Group plc (a)(b) | 1,644,060 | — | ||||||
4,177,791 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
Dialog Semiconductor plc * | 108,672 | 158,349 | ||||||
Software & Services 1.9% | ||||||||
Alphameric plc * | 70,330 | 19,417 | ||||||
Computacenter plc | 486,681 | 803,252 | ||||||
Dimension Data Holdings plc | 1,470,592 | 856,964 | ||||||
Intec Telecom Systems plc * | 1,089,775 | 538,468 | ||||||
Logica plc | 4,085,000 | 3,724,175 | ||||||
Phoenix IT Group Ltd. | 332,300 | 690,951 | ||||||
6,633,227 | ||||||||
Technology Hardware & Equipment 0.6% | ||||||||
Acal plc | 64,850 | 87,923 | ||||||
Dialight plc | 19,573 | 32,138 | ||||||
Oxford Instruments plc | 69,597 | 109,242 | ||||||
Spectris plc | 295,381 | 1,703,479 |
50 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Portfolio Holdings continued
Number | Value | |||||||
Security | of Shares | ($) | ||||||
TT electronics plc | 165,496 | 47,430 | ||||||
Vislink plc | 263,135 | 86,861 | ||||||
2,067,073 | ||||||||
Telecommunication Services 1.0% | ||||||||
Cable & Wireless | 1,751,209 | 3,502,071 | ||||||
Transportation 2.0% | ||||||||
Arriva plc | 559,076 | 2,971,543 | ||||||
Braemar Shipping Services plc | 64,440 | 204,135 | ||||||
Clarkson plc | 14,765 | 103,045 | ||||||
FirstGroup plc | 911,527 | 3,496,867 | ||||||
National Express Group plc | 77,142 | 167,673 | ||||||
6,943,263 | ||||||||
Utilities 0.3% | ||||||||
Drax Group plc | 145,704 | 1,079,301 | ||||||
55,642,094 | ||||||||
Total Common Stock (Cost $498,557,725) | 327,579,410 | |||||||
Preferred Stock 0.8% of net assets | ||||||||
Austria 0.0% | ||||||||
MIBA AG | 747 | 75,076 | ||||||
Canada 0.1% | ||||||||
FirstService Corp. | 9,735 | 144,078 | ||||||
Germany 0.7% | ||||||||
Draegerwerk AG & Co. KGAA | 11,938 | 255,951 | ||||||
Einhell Germany AG | 12,414 | 202,031 | ||||||
Jungheinrich AG | 47,379 | 505,875 | ||||||
Sanacorp Pharmaholding AG | 884 | 15,108 | ||||||
Sto AG | 35,109 | 1,557,682 | ||||||
2,536,647 | ||||||||
Total Preferred Stock (Cost $4,776,295) | 2,755,801 | |||||||
Rights 0.0% of net assets | ||||||||
Australia 0.0% | ||||||||
Iba Health Group Ltd. (a) * | 54,108 | 2,258 | ||||||
Total Rights (Cost $—) | 2,258 | |||||||
Warrants 0.0% of net assets | ||||||||
Bermuda 0.0% | ||||||||
Champion Technology Holdings Ltd. * | 699,944 | 903 | ||||||
Col Capital Ltd. * | 280,000 | 361 | ||||||
Total Warrants (Cost $—) | 1,264 | |||||||
Other Investment Company 1.5% of net assets | ||||||||
State Street Institutional Liquid Reserves Fund - Institutional Class | 4,967,012 | 4,967,012 | ||||||
Total Other Investment Company (Cost $4,967,012) | 4,967,012 | |||||||
End of Investments. | ||||||||
At 03/31/09, the tax basis cost of the fund’s investments was $513,873,122 and the unrealized appreciation and depreciation were $10,775,267 and ($189,342,644), respectively, with a net unrealized depreciation of ($178,567,377). | ||||||||
At 03/31/09, the values of certain foreign securities held by the fund aggregating $306,999,441 were adjusted from their closing market values following the guidelines adopted by the fund’s board of trustees. |
* | Non-income producing security. | |
(a) | Fair-valued by Management. | |
(b) | Illiquid security. At the period end, the value of these amounted to $38,541 or 0% of net assets. |
CDI — CHESS Depositary Interest
Reg’d — Registered
REIT — Real Estate Investment Trust
SDR — Swedish Depositary Receipt
See financial notes 51
Laudus Rosenberg International Small Capitalization Fund
Statement of
Assets and Liabilities
As of March 31, 2009.
Assets | ||||||
Investments, at value (cost $508,301,032) | $335,305,745 | |||||
Foreign currency, at value (cost $5,301,561) | 5,274,454 | |||||
Receivables: | ||||||
Investments sold | 3,519,337 | |||||
Dividends | 2,395,239 | |||||
Fund shares sold | 441,890 | |||||
Interest | 1,659 | |||||
Foreign tax reclaims | + | 556,506 | ||||
Total assets | 347,494,830 | |||||
Liabilities | ||||||
Payables: | ||||||
Investments bought | 2,878,877 | |||||
Investment adviser fees | 30,390 | |||||
Fund shares redeemed | 468,789 | |||||
Distribution and shareholder services fees | 263,292 | |||||
Trustee’s retirement plan | 38,235 | |||||
Accrued expenses | + | 217,244 | ||||
Total liabilities | 3,896,827 | |||||
Net Assets | ||||||
Total assets | 347,494,830 | |||||
Total liabilities | − | 3,896,827 | ||||
Net assets | $343,598,003 | |||||
Net Assets by Source | ||||||
Capital received from investors | 882,490,269 | |||||
Net investment income not yet distributed | 275,406 | |||||
Net realized capital losses | (366,097,537 | ) | ||||
Net unrealized capital losses | (173,070,135 | ) |
Net Asset Value (NAV) by Shares Class
Shares | ||||||||||||
Share Class | Net Assets | ¸ | Outstanding | = | NAV | |||||||
Investor Shares | $147,607,585 | 18,954,264 | $7.79 | |||||||||
Select Shares | $195,990,418 | 24,916,457 | $7.87 |
52 See financial notes
Laudus Rosenberg International Small Capitalization Fund
Statement of
Operations
For April 1, 2008 through March 31, 2009.
Investment Income | ||||||
Dividends (net of foreign withholding taxes of $2,577,277) | $24,661,787 | |||||
Interest | 200,316 | |||||
Securities on loan | + | 794,916 | ||||
Total Investment Income | 25,657,019 | |||||
Net Realized Gains and Losses | ||||||
Net realized losses on investments | (284,978,805 | ) | ||||
Net realized losses on foreign currency transactions | + | (2,286,105 | ) | |||
Net realized losses | (287,264,910 | ) | ||||
Net Unrealized Gains and Losses | ||||||
Net unrealized losses on investments | (218,028,530 | ) | ||||
Net unrealized losses on foreign currency translations | + | (70,380 | ) | |||
Net unrealized losses | (218,098,910 | ) | ||||
Expenses | ||||||
Investment adviser fees | 7,158,021 | |||||
Transfer agent fees | 154,051 | |||||
Distribution and shareholder services fees (Investor Shares) | 827,510 | |||||
Sub-Accounting fees (Investor Shares) | 418,251 | |||||
Custodian fees | 407,593 | |||||
Accounting and administration fees | 112,418 | |||||
Shareholder reports | 85,228 | |||||
Professional fees | 68,988 | |||||
Registration fees | 36,459 | |||||
Interest expense | 2,848 | |||||
Other expenses | + | 97,982 | ||||
Total expenses | 9,369,349 | |||||
Custody credits | − | 1,311 | ||||
Net expenses | 9,368,038 | |||||
Increase (Decrease) in Net Assets from Operations | ||||||
Total investment income | 25,657,019 | |||||
Net expenses | − | 9,368,038 | ||||
Net investment income | 16,288,981 | |||||
Net realized losses | (287,264,910 | ) | ||||
Net unrealized losses | + | (218,098,910 | ) | |||
Decrease in net assets from operations | ($489,074,839 | ) |
See financial notes 53
Laudus Rosenberg International Small Capitalization Fund
Statements of
Changes in Net Assets
For the current and prior report periods.
Operations |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||
Net investment income | $16,288,981 | $31,943,187 | ||||||||
Net realized gains (losses) | (287,264,910 | ) | 54,346,298 | |||||||
Net unrealized losses | + | (218,098,910 | ) | (298,240,524 | ) | |||||
Decrease in net assets from operations | (489,074,839 | ) | (211,951,039 | ) | ||||||
Distributions to Shareholders1 | ||||||||||
Distributions from net investment income | ||||||||||
Investor Shares | 4,469,511 | 21,597,431 | ||||||||
Select Shares | + | 7,704,614 | 34,839,457 | |||||||
Total distributions from net investment income | 12,174,125 | 56,436,888 | ||||||||
Distributions from net realized gains | ||||||||||
Investor Shares | — | 94,400,404 | ||||||||
Select Shares | + | — | 131,923,248 | |||||||
Total distributions from net realized gains | — | 226,323,652 | ||||||||
Total distributions | $12,174,125 | $282,760,540 |
Transactions in Fund Shares1 |
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||||||||
Shares Sold | ||||||||||||||||||
Investor Shares | 513,126 | $6,697,143 | 3,984,585 | $92,413,634 | ||||||||||||||
Select Shares | + | 5,524,993 | 71,369,166 | 13,114,742 | 300,629,366 | |||||||||||||
Total shares sold | 6,038,119 | $78,066,309 | 17,099,327 | $393,043,000 | ||||||||||||||
Shares Reinvested | ||||||||||||||||||
Investor Shares | 416,709 | $3,817,051 | 5,729,048 | $97,508,406 | ||||||||||||||
Select Shares | + | 733,865 | 6,788,252 | 8,381,438 | 144,495,987 | |||||||||||||
Total shares reinvested | 1,150,574 | $10,605,303 | 14,110,486 | $242,004,393 | ||||||||||||||
Shares Redeemed | ||||||||||||||||||
Investor Shares | (13,266,975 | ) | ($162,910,757 | ) | (17,838,760 | ) | ($349,737,839 | ) | ||||||||||
Select Shares | + | (17,446,448 | ) | (217,326,237 | ) | (31,657,552 | ) | (585,177,294 | ) | |||||||||
Total shares redeemed | (30,713,423 | ) | ($380,236,994 | ) | (49,496,312 | ) | ($934,915,133 | ) | ||||||||||
Net transactions in fund shares | (23,524,730 | ) | ($291,565,382 | ) | (18,286,499 | ) | ($299,867,740 | ) | ||||||||||
Shares Outstanding and Net Assets | ||||||||||||||||||
4/1/08-3/31/09 | 4/1/07-3/31/08 | |||||||||||||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||||||||||||
Beginning of period | 67,395,451 | $1,136,412,349 | 85,681,950 | $1,930,991,668 | ||||||||||||||
Total decrease | + | (23,524,730 | ) | (792,814,346 | ) | (18,286,499 | ) | (794,579,319 | ) | |||||||||
End of period | 43,870,721 | $343,598,003 | 67,395,451 | $1,136,412,349 | ||||||||||||||
Net investment income not yet distributed / (distribution in excess of net investment income) | $275,406 | ($4,769,775 | ) |
1 | Effective on July 31, 2008, the Institutional Shares were redesignated as Select Shares. |
54 See financial notes
Laudus Rosenberg International Equity Funds
Financial Notes
1. Business Structure of the Funds:
Each of the Laudus Rosenberg Funds in this report is a series of Laudus Trust (the “Trust”), an open-end management investment company. The Trust was organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the Trust including the funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):
Laudus Rosenberg International Equity Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg U.S. Small Capitalization Fund Laudus Rosenberg Long/Short Equity Fund | Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund | |
As of May 31, 2007, the Laudus Rosenberg International Small Capitalization Fund closed to all investors, except the Fund will continue to offer shares to certain qualified retirement plans and through reinvestment of dividends and capital gains.
The Institutional Shares were redesignated as Select Shares effective July 31, 2008, for all Laudus Rosenberg Funds.
Each Fund is authorized to issue an unlimited number of Investor Shares and Select Shares of no par value. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bear different distribution and sub-transfer agent expenses, and separate voting rights on matters pertaining solely to that class of shares.
Each Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its accounts, each Fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the Funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America.
(a) Security Valuation
The Funds value the securities in their portfolios every business day. The Funds use the following policies to value various types of securities:
• | Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate. | |
• | Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities’ closing market values adjusted for changes in value that may occur between the close of foreign exchange and the time at which Funds’ shares are priced. The Board of Trustees regularly reviews fair value determinations made by the Funds pursuant to the procedures. | |
• | Short-term debt securities (60 days or less to maturity): valued at amortized cost, when it approximates market value. | |
• | Underlying funds: valued at their respective net asset values as determined by those Funds in accordance with the 1940 Act for a given day. |
55
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(b) Portfolio Investments:
Futures Contract: The Funds may invest in futures contracts. Futures contracts involve certain risks because they can be very sensitive to market movements.
One risk is that the price of a futures contract may not move in perfect correlation with the price of the underlying securities. Another risk is that, at certain times, it may be impossible for a Fund to close out a position in a futures contract, due to a difference in trading hours or to market conditions that may reduce the liquidity for a futures contract or its underlying securities. The potential for losses associated with futures contracts may exceed amounts recorded in the Statement of Assets and Liabilities.
Because futures contracts carry inherent risks, a Fund must give the broker a deposit of cash and/or securities (the “initial margin”) whenever it enters into the futures contract. The amount of the deposit may vary from one contract to another, but it is generally a percentage of the contract amount. Subsequent payments (“variation margin”) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Futures are traded publicly on exchanges, and their market value changes daily.
Forward Currency Contract: The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties.
As with futures, forwards involve certain risks that are not fully reflected in the Funds’ financial statements. If counter-parties to the contracts or if the value of the foreign currency changes unfavorably, the Funds could sustain a loss.
Real Estate Investment Trusts: Certain Funds may own shares of real estate investment trusts (“REITs”) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT.
Repurchase Agreements: The Funds may enter into repurchase agreements. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created.
The Funds’ repurchase agreements will be fully collateralized by U.S. government securities or U.S. government agency securities. All collateral is held by the Funds’ custodian (or, with tri-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement.
Securities Lending: Under the Securities Lending Program, securities held by the Funds may be loaned by State Street Corporation, as agent, to certain brokers (the “Borrowers”). The Borrowers provide cash or U.S. government securities as collateral against loans in an amount at least equal to 100% of the market value of the loaned securities. There were no securities on loan as of March 31, 2009.
The cash collateral of securities loaned is invested in high quality, short-term investments such as money market funds and U.S. government securities. The investments of collateral are marked-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The Funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuation in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Gains realized by the Funds on the sale of securities in certain foreign countries are subject to non-U.S. taxes. The Funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
56
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
When a Fund closes out a futures or forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly. A Fund records the daily change in market value of futures, and also the change in the amount of margin deposit required (“due to/from broker”).
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying mutual funds are recorded on the date they are effective (the ex-dividend date), although the Funds record certain foreign security dividends on the day they learn of the ex-dividend date.
(e) Expenses:
Expenses that are specific to a Fund or a class within the trust are charged directly to that Fund or class. Expenses that are common to all Funds within the trust generally are allocated among the Funds in proportion to their average daily net assets.
For Funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to its average daily net assets.
(f) Distributions to Shareholders:
The Funds make distributions from net investment income and net realized capital gains once a year, if any.
(g) Custody Credit
Certain Funds have an arrangement with their custodian bank under which the Fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts (if any) are disclosed in the Statement of Operations as a reduction to the Funds’ operating expenses.
h) Accounting Estimates:
The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.
(i) Federal Income Taxes:
The Funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the Funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as a Fund meets the tax requirements, it is not required to pay federal income tax.
(j) Indemnification:
Under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts with their vendors and others that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.
(k) Accounting Pronouncements
The Funds adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), Fair Value Measurements, effective April 1, 2008. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements.
57
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
SFAS No. 157 establishes a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
• | Level 1 — quoted prices in active markets for identical securities | |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
• | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2009:
Laudus Rosenberg International | Laudus Rosenberg International | Laudus Rosenberg International | ||||||||||||||||||||||
Equity Fund | Discovery Fund | Small Cap Fund | ||||||||||||||||||||||
Investments in | Other Financial | Investments in | Other Financial | Investments in | Other Financial | |||||||||||||||||||
Securities | Instruments* | Securities | Instruments* | Securities | Instruments* | |||||||||||||||||||
Level 1 | $673,541 | $— | $28,992,344 | $— | $28,166,856 | $— | ||||||||||||||||||
Level 2 | 38,701,247 | — | 182,175,439 | — | 306,999,441 | — | ||||||||||||||||||
Level 3 | — | — | 900,799 | — | 139,448 | — | ||||||||||||||||||
$39,374,788 | $— | $212,068,582 | $— | $335,305,745 | $— |
* | The Funds have no Other Financial Instruments at the end of the period. |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Laudus Rosenberg | Laudus Rosenberg | |||||||
International | International | |||||||
Discovery Fund | Small Capitalization Fund | |||||||
Balance as of 03/31/08 | $203 | $796,628 | ||||||
Accrued discount/premiums | — | — | ||||||
Realized gain (loss) | (329,411 | ) | (1,830,797 | ) | ||||
Change in unrealized appreciation/depreciation) | (118,390 | ) | 302,131 | |||||
Net purchase (sales) | 761,135 | 689,636 | ||||||
Transfer in and/or out of Level 3 | 587,262 | 181,850 | ||||||
Balance as of 03/31/09 | $900,799 | $139,448 |
All net realized and unrealized gains (losses) in the table above are reflected in the accompanying statement of operations. Net unrealized gains (losses) relate to those financial instruments held by the Fund at March 31, 2009.
On April 9, 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff position (“FSP”) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 is effective for interim and annual reporting periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 on the Funds’ or Investment Company’s financial statement disclosures.
In March 2008, the FASB issued Statements of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS No. 161”). SFAS No. 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS No. 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact of the adoption of SFAS No. 161 on the Funds’ financial statement disclosures.
58
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
3. Risk factors:
Investing in the Funds may involve certain risks including, but not limited to, those described below:
An investment in any of the Funds involves risks similar to those of investing in common stocks directly. Just as with common stocks, the value of Fund shares may increase or decrease depending on market, economic, political, regulatory and other conditions affecting a Fund’s portfolio. These types of risks may be greater with respect to investments in securities of foreign issuers. Investment in shares of the Funds is, like an investment in common stocks, more volatile and risky than some other forms of investment. This risk is significant for all Funds.
Stocks of large-size companies tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments—bonds or stocks of mid- or small-size companies, for instance—the Fund’s performance also will lag those investments.
A Fund may also be subject to additional risk because it invests primarily in the stocks of companies with small and mid-sized market capitalizations, which tend to be less liquid and more volatile than stocks of companies with larger market capitalizations. These companies may also have limited product lines, markets or financial resources or may depend on a few key employees. In addition, small and mid cap stocks tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments—bonds or stocks of large-size companies, for instance—the Fund’s performance also will lag those investments.
Investments in securities of foreign issuers involve certain risks that are more significant than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. The securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies. A fund with foreign investments may also experience more rapid or extreme changes in value than a fund that invests solely in securities of U.S. companies because the securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries.
4. Affiliates and Affiliated Transactions:
The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.
Charles Schwab Investment Management, Inc. (“CSIM” or the “Manager”) is the investment adviser of the Funds and manages the Funds’ business, subject to the supervision of the Board of Trustees. AXA Rosenberg Investment Management LLC (“AXA Rosenberg”), the Funds’ sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM.
For its advisory services to each Fund, the Investment Adviser is entitled to receive an annual fee, payable monthly, based on the Funds’ average daily net assets described as follows.
Laudus Rosenberg | Laudus Rosenberg | |||||||
International | International | |||||||
Average daily net assets | Equity Fund | Discovery Funds | ||||||
First $1 billion | 0.85% | 1.00% | ||||||
$1 billion to $2 billion | 0.80% | 0.95% | ||||||
Over $2 billion | 0.775% | 0.95% | ||||||
Laudus Rosenberg | ||||||||
International | ||||||||
Small Capitalization Fund | ||||||||
First $500 million | 1.00% | |||||||
Over $500 million | 0.95% |
CSIM (not the Funds) pays a portion of the management fees it receives to AXA Rosenberg in return for its services.
CSIM has contractually agreed, until at least July 30, 2011, to waive a portion of its management fee and bear certain expenses of each Fund. As such, CSIM further agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring
59
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
account fees, fees on securities transactions such as exchange fees, dividends and interest on securities sold short, service fees, interest (overdraft charges), taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Funds’ business as follows:
Investor Shares | Select Shares | |||||||
Laudus Rosenberg International Equity Fund | 1.40% | 1.12% | ||||||
Laudus Rosenberg International Discovery Fund | 1.65% | 1.35% | ||||||
Laudus Rosenberg International Small Capitalization Fund | 1.79% | 1.49% |
Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Funds’ net expenses to exceed the current limit (as stated in CSIM’s contractual undertaking) during the respective year. As of March 31, 2009, the balance of recoupable expenses is as follows:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Expire | Equity Fund | Discovery Fund | Capitalization Fund | |||||||||
2010 | $0 | $196,269 | $— | |||||||||
2011 | 145,842 | 516,875 | — |
The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2009, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.
5. Other Shareholders Services:
Boston Financial Data Services, Inc. (BFDS) provides the transfer agent services to the Funds, and receives transfer agent fees from the Funds as shown in the Statement of Operations.
The Trust has a Distribution and Shareholder Service Plan with respect to its Investor Shares pursuant to Rule 12b-1 under the 1940 Act. The Investor Shares of the Funds are sold on a continuous basis by the Trust’s distributor — ALPS Distributors, Inc. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to pay up to 0.15% of its average daily net assets attributable to Investor Shares for sub-transfer agent and sub-accounting services in connection with such shares.
6. Board of Trustees:
Trustees may include people who are officers and/or directors of other fund families affiliated to the investment adviser. Federal securities law limits the percentage of the “interested persons” who may serve on a trust’s board, and the Laudus Funds are in compliance with these limitations. The Funds did not pay any of the interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in each Fund’s Statement of Operations.
Until September 2006, a Retirement Plan existed for the Independent Trustees. After the termination of the Retirement Plan, the previously accrued and unpaid benefits continue to be adjusted by performance of the Funds. As a result, the amount of the Retirement Payable to any Independent Trustee may increase or decrease based on the performance of the Funds.
7. Borrowing from Banks:
The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund have access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing.
60
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
7. Borrowing from Banks (continued):
There were no borrowings from the line of credit by the Funds during the period. However, the Funds utilized their overdraft facility and incurred interest expense, which is disclosed in the Statement of Operation. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
8. Purchases and Sales of Investment Securities:
For the period ended March 31, 2009, purchases and sales of securities (excluding short-term securities) were as follows:
Purchases | Sales | |||||||
Laudus Rosenberg International Equity Fund | $100,139,564 | $121,656,039 | ||||||
Laudus Rosenberg International Discovery Fund | 560,278,058 | 417,504,051 | ||||||
Laudus Rosenberg International Small Capitalization Fund | 565,299,812 | 823,485,820 |
9. Redemption Fee:
The Funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior period are:
Current Period | Prior Period | |||||||
(4/1/08-3/31/09) | (4/1/07-3/31/08) | |||||||
Laudus Rosenberg International Equity Fund | $2,414 | $1,697 | ||||||
Laudus Rosenberg International Discovery Fund | 17,228 | 66,859 | ||||||
Laudus Rosenberg International Small Capitalization Fund | 953 | 32,882 |
10. Other:
As of the close of business on September 18, 2008, Lehman Brothers Holdings Inc. was in default of the security lending agreement with the Laudus Rosenberg International Small Capitalization Fund (“the Fund”). As a result the Fund took possession of the collateral and repurchased the securities on loan through open market purchases. The collateral held exceeded the replacement value of the securities. In accordance with Accounting for Transfers of Financial Assets and Repurchase Financing Transactions (“FAS 140”) the Fund recognized the following gains or losses that are not recognized for federal income tax purposes:
Laudus Rosenberg International Small Capitalization Fund | ($794,628 | ) |
11. Federal Income Taxes:
As of March 31, 2009, the components of distributable earnings on a tax-basis were as follows:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Equity Fund | Discovery Fund | Capitalization Fund | ||||||||||
Undistributed Ordinary Income | $224,765 | $961,888 | $1,863,323 | |||||||||
Undistributed long-term capital gains | — | — | — | |||||||||
Unrealized appreciation | 486,140 | 7,757,486 | 10,775,267 | |||||||||
Unrealized depreciation | (17,960,502 | ) | (64,783,359 | ) | (189,342,644 | ) | ||||||
Other unrealized appreciation/(depreciation) | (12,490 | ) | (82,844 | ) | (74,848 | ) | ||||||
Net unrealized appreciation/(depreciation) | ($17,486,852 | ) | ($57,108,717 | ) | ($178,642,225 | ) |
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investment is the tax deferral of losses on wash sales and Passive Foreign Investment Companies (PFIC).
61
Laudus Rosenberg International Equity Funds
Financial Notes (continued)
11. Federal Income Taxes (continued):
For tax purposes, capital loss carry forwards may be used to offset future realized capital gains. As of March 31, 2009, the Funds had capital loss carry forwards available to offset net capital gains before the expiration dates:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Expire | Equity Fund | Discovery Fund | Capitalization Fund | |||||||||
2017 | $13,664,040 | $61,437,260 | $151,052,643 |
For tax purposes, realized net capital losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2009 the Funds had aggregate deferred realized net capital losses and capital losses utilized as follows:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Equity Fund | Discovery Fund | Capitalization Fund | ||||||||||
Capital losses deferred | $19,176,919 | $86,808,240 | $211,022,483 | |||||||||
Currency losses deferred | — | — | — | |||||||||
Capital losses utilized | — | — | — |
The tax-basis components of distributions paid during the current and prior periods were:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Equity Fund | Discovery Fund | Capitalization Fund | ||||||||||
Current period distributions | ||||||||||||
Ordinary income | $2,412,454 | $5,099,501 | $12,174,125 | |||||||||
Long-term capital gains | 9,394 | — | — | |||||||||
Return of capital | — | — | — | |||||||||
Prior period distributions | ||||||||||||
Ordinary income | $6,985,862 | $9,290,498 | $121,519,374 | |||||||||
Long-term capital gains | 5,011,878 | 1,136,233 | 161,241,166 | |||||||||
Return of capital | $— | — | — |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The permanent book and tax basis differences may result in reclassifications between capital account and other accounts as required. The adjustments have no impact on net assets or the results of operations. As of March 31, 2009, the Funds made the following reclassifications:
Laudus Rosenberg | Laudus Rosenberg | Laudus Rosenberg | ||||||||||
International | International | International Small | ||||||||||
Equity Fund | Discovery Fund | Capitalization Fund | ||||||||||
Capital Shares | $— | $— | $— | |||||||||
Undistributed net investment income | 14,464 | 532,650 | 930,325 | |||||||||
Net realized capital gains and losses | (14,464 | ) | (532,650 | ) | (930,325 | ) |
As of March 31, 2009, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and state purposes, four years from the date of filing), as applicable to the Funds, and has determined that no provision for income tax is required in the Funds’ financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2009, the Funds did not incur any interest or penalties.
62
To the Board of Trustees and Shareholders of:
Laudus Rosenberg International Equity Fund
Laudus Rosenberg International Discovery Fund
Laudus Rosenberg International Small Capitalization Fund
Laudus Rosenberg International Equity Fund
Laudus Rosenberg International Discovery Fund
Laudus Rosenberg International Small Capitalization Fund
In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund (three of the portfolios constituting Laudus Trust, hereafter referred to as the “Funds”) at March 31, 2009, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
May 15, 2009
San Francisco, California
May 15, 2009
63
Other Federal Tax Information (unaudited)
The Funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the year ended March 31, 2009, and the respective foreign source income on the Funds were as follows:
Foreign Tax Credit | Foreign Source Income | |||||||
Laudus Rosenberg International Equity Fund | $342,777 | $3,725,090 | ||||||
Laudus Rosenberg International Discovery Fund | 892,588 | 9,743,132 | ||||||
Laudus Rosenberg International Small Capitalization Fund | 1,969,446 | 27,239,064 |
For the fiscal year ended March 31, 2009, the Funds designate the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2010 via IRS form 1099 of the amounts for use in preparing their 2009 income tax return.
Laudus Rosenberg International Equity Fund | $2,755,231 | |||
Laudus Rosenberg International Discovery Fund | 5,570,645 | |||
Laudus Rosenberg International Small Capitalization Fund | 13,837,499 |
For the fiscal year ended March 31, 2009, the Funds hereby designate the following amounts as capital gain dividends:
Laudus Rosenberg International Equity Fund | $9,394 | |||
Laudus Rosenberg International Discovery Fund | — | |||
Laudus Rosenberg International Small Capitalization Fund | — |
64
Trustees and Officers
The tables below provide information about the trustees and officers for the Laudus Trust, which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust, and Laudus Institutional Trust. As of March 31, 2009, the Fund Complex included 83 funds.
At a meeting of the Board held on September 28-29, 2006, the Trustees voted to adopt a retirement policy for all independent trustees that requires an independent trustee to retire no later than December 31st of the year in which he or she reaches age seventy-two.
The address for all trustees and officers is 101 Montgomery Street, San Francisco, CA 94104. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-866-452-8387.
Independent Trustees | ||||||||
Principal | Number of | |||||||
and Year of Birth; | Occupation(s) | Portfolios in | ||||||
(Term of Office, and | During the | Fund Complex | ||||||
Length of Time Served2) | Past Five Years | Overseen | Other Directorships Held by Trustee | |||||
Mariann Byerwalter3 1960 (1/04-present) | Chairman of JDN Corporate Advisory LLC. | 83 | Board 1–Director, Redwood Trust, Inc. (mortgage finance). Board 2–Director, PMI Group, Inc. (mortgage insurance). | |||||
William A. Hasler3 1941 (1/04-present) | Retired. Dean Emeritus of the Haas School of Business at the University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals). | 83 | Board 1–Director, Mission West Properties (commercial real estate). Board 2–Director, TOUSA (home building). Board 3–Director, Harris-Stratex Networks (a network equipment corporation). Board 4–Director, Genitope Corp. (bio-pharmaceuticals). Board 5 –Director, Ditech Networks (voice communication technology). Board 6–Rubicon Limited (manufacturing). | |||||
Nils H. Hakansson3 1937 (3/90-present) | Sylvan C. Coleman Professor of Finance and Accounting, Emeritus, Haas School of Business, University of California, Berkeley (since 2003). Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (July 1969 to January 2003). | 14 | None | |||||
65
Interested Trustees | ||||||||
Number of | ||||||||
Principal | Portfolios in | |||||||
Occupation(s) | Fund Complex | |||||||
During the | Overseen by | |||||||
(Term of Office, and Length of Time Served2) | Past Five Years | the Trustee | Other Directorships Held by Trustee | |||||
Randall W. Merk 1954 Trustee (6/06-present) | Executive Vice President and President, Investment Management Services, Charles Schwab & Co. Inc.; Executive Vice President, Charles Schwab & Co. Inc.(2002-present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc. | 14 | None | |||||
Officers | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Jeffrey Mortimer 1963 (3/08-present, President and CEO) (6/04-present, CIO) | President, Chief Executive Officer, and Chief Investment Officer | Senior Vice President and Chief Investment Officer-Equities, Charles Schwab Investment Management, Inc., and Schwab Funds. Prior to May 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc. | ||
George Pereira 1964 (6/06-present) | Treasurer and Chief Financial Officer | Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Treasurer and Principal Financial Officer, Schwab Funds; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Ltd. Through June 2007, Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc., and Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Trust Inc.; From 12/99 to 11/04: Senior Vice President, Financial Reporting, Charles Schwab & Co., Inc. | ||
Catherine MacGregor 1964 (12/05-present) | Chief Legal Officer, Vice President and Clerk | Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.; Vice President, Schwab Funds; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP. | ||
Bari Havlik 1961 (3/09-present) | Chief Compliance Officer | Senior Vice President, Chief Compliance Officer for Charles Schwab & Co. Inc. and head of Global Compliance for the Charles Schwab Corporation since 2004. Chief Compliance Officer for Charles Schwab Investment Management, Inc since March 2009. | ||
Daniel Kern 1961 (3/05-present) | Vice President | Vice President, Investment Management Services. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation. | ||
66
Officers continued | ||||
and Year of Birth; | ||||
(Term of Office5, | ||||
and Length of Time | ||||
Served) | Position with the Trust | Principal Occupation During Past Five Years | ||
Michael Haydel 1972 (6/05-present) | Vice President | Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. Until March 2004, Director Charles Schwab & Co., Inc. | ||
1 | The mailing address of each of the Trustees is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
2 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. |
3 | Member of the Audit Committee. |
4 | The mailing address of each of the Officers is c/o Laudus Trust, 101 Montgomery Street, San Francisco, CA 94104. |
5 | There is no stated term of office for the officers of the Trust. |
67
Glossary
90 Day T-bill is a short-term discounted, government debt instrument of 90 days or less, issued in $10,000 denominations that pay its face value at maturity. The government issues Treasury bills weekly.
Alpha is a measure of a fund’s risk adjusted return. Alpha can be used to directly measure the value added or subtracted by a fund’s manager. It is calculated by measuring the difference between a fund’s actual returns and its expected performance given its level of market risk as measured by beta.
Beta is a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower historical risk than the market; a beta of more than one indicates higher historical risk than the market.
GDP, or Gross Domestic Product, is the market value of the goods and services produced by labor and property in the United States.
Modified Duration expresses the measurable change in the value of a security in response to a change in interest rates. The formula calculates the effect that a 1% change in interest rates will have on the price of a bond.
The MSCI EAFE Index® (Net) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. This series approximates the minimum possible dividend reinvestment.
The S&P Global ex US Broad Market Index (BMI) $2-$10 Billion Cap Range is an absolute size benchmark that divides the investable region into capitalization bands of between $2 billion and $10 billion. It is a subset of the Broad Market Index (BMI), which includes companies in approximately 52 developed and emerging markets with more than $100 million of free float capitalization.
The S&P Developed ex US SmallCap Index is a float-adjusted index which measures the performance of small companies (approximately the bottom 15% by market capitalization) in 25 developed equity markets.
The Standard & Poor’s 500® (S&P 500) Index is an unmanaged index measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries.
The Russell 1000® Index measures the performance of the 1000 largest companies in the Russell 3000® Index, and represents approximately 92% of the total market capitalization of the Russell 3000® Index.
The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios.
The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, and represents approximately 16% of the total market capitalization of the Russell 3000® Index.
The Russell 2500tm Index measures the performance of the 2,500 smallest companies in the Russell 3000® Index, and represents approximately 16% of the total market capitalization of the Russell 3000® Index.
The Russell 3000® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.
The Russell 3000® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.
Price to earnings ratio is the price of a stock divided by its historical earnings per share.
Price to book ratio compares the stock’s market value to the value of the total assets less the total liabilities.
Price to cash flow ratio is the price of a stock divided by its reported cash flow per share.
Relative strength is the rate that a stock falls relative to other stocks in a falling market or rises relative to other stocks in a rising market.
Return on equity represents the amount earned on a company’s common stock investment for a given period, calculated by dividing common stock equity into net income for the period after preferred stock dividends but before common stock dividends.
Trading Activity is one of several risk factors commonly used to attribute a portfolio’s return relative to its benchmark. Specifically, trading activity measures a stock’s trailing 12 month trading volume relative to its total shares outstanding. It measures how actively traded a stock has been in the last 12 months.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov.
Quarterly Disclosure of Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The information filed on a fund’s most recent Form N-Q is also available at www.laudus.com.
68
Notes
For More Information about the Funds:
Investment Adviser
Charles Schwab Investment Management, Inc.
101 Montgomery Street, San Francisco, CA 94104
Shareholder Services
1.866.452.8387 Investment Professionals
1.800.447.3332 Individual Investors
www.laudus.com
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
MFR41683-01 |
Item 2: Code of Ethics.
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. | |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. | |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. | |
(f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 11(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
(a) (1) Disclose that the registrant’s board of directors has determined that the registrant either:
(i) Has at least one audit committee financial expert serving on its audit committee; or
(ii) Does not have an audit committee financial expert serving on its audit committee.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or
(ii) Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert.
3(a)(1) THE REGISTRANT’S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS NILS H. HAKANSSON, WHO IS “INDEPENDENT” FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
Item 4: Principal Accountant Fees and Services.
(a) Below are the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.
Audit Fees
2009: $316,053 2008: $283,520
(b) Below are the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of Registrant’s financial statements and are not reported under paragraph (a) above.
Audit-Related Fees
For services rendered to Registrant:
2009: $51,540 2008: 43,205
Nature of these services: Agreed upon services in regards to service provider conversion.
In each of the last two fiscal years there were no “Audit-Related Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Below are the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.
Tax Fees
For services rendered to Registrant:
2009: $154,620 2008: $86,410
Nature of these services: preparation and review of tax returns.
In each of the last two fiscal years there were no “Tax Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) Below are the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
All Other Fees
For services rendered to Registrant:
2009: NONE 2008: NONE
Nature of these services: | non-audit services related to the requirements of Section 15(c) of the Investment Company Act of 1940, such as evaluation of the Profitability Analysis System. |
In each of the last two fiscal years there were no “All Other Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e)(1) Registrant’s audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2009: $206,160 2008: $175,918
Although not required to be included in the amounts disclosed under this paragraph (g) or any other paragraph of this Item 4, below are the aggregate fees billed in each of the last two fiscal years by Registrant’s principal accountant for tax compliance services rendered to U.S. Trust, an entity under common control with Registrant’s investment adviser that does not provide services to Registrant.
2009: NONE 2008: $1,014,998
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Jeffrey Mortimer and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
(b) During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.
Item 12: Exhibits.
(a) | (1) Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. | |
(2) Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. | ||
(3) Not applicable. | ||
(b) | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant ) The Laudus Trust
By: | /S/ Jeffrey Mortimer | |||
Jeffrey Mortimer | ||||
President and Chief Executive Officer | ||||
Date: 05/13/2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /S/ Jeffrey Mortimer | |||
Jeffrey Mortimer | ||||
President and Chief Executive Officer | ||||
Date: 05/13/2009
By: | /S/ George Pereira | |||
George Pereira | ||||
Principal Financial Officer | ||||
Date: 05/13/2009