Laudus Trust NCSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05547

The Laudus Trust

(Exact name of registrant as specified in charter)

101 Montgomery Street, San Francisco, California 94104

(Address of principal executive offices) (Zip code)

Randall W. Merk
The 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, 2008

Item 1: Report(s) to Shareholders.

Annual Report

March 31, 2008


	COMMAND PERFORMANCE™

U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Fund

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Laudus Rosenberg U.S. Large Capitalization Value Fund

Laudus Rosenberg U.S. Discovery Fund (closed to new investors)

Laudus Rosenberg U.S. Small Capitalization Fund (closed to new investors)

Long/Short Equity Funds

Laudus Rosenberg Long/Short Equity Fund
(formerly Laudus Rosenberg Value Long/Short Equity Fund)

Each of the Funds is a series of Laudus Trust, which is an open-end management investment company offering diversified portfolios with different investment objectives and strategies.

Charles Schwab Investment Management, Inc. is the Adviser to the Funds and AXA Rosenberg Investment Management LLC is the Sub-adviser.

Table of Contents


1		President’s Message

2		Management’s Discussion

9		Performance and Fund Facts

16		Fund Expenses

18		Portfolio Holdings

54		Financial Statements and Notes

74		Report of Independent Registered Public Accounting Firm

76		Trustees and Officers of Laudus Trust

79		Definitions, Terms and Other Information

Nothing in this report represents a recommendation of a security by the investmentadviser. Portfolio Manager views and portfolio holdings may have changed since the report date.

Notice About Duplicate Mailings

In order to reduce expenses of the Laudus Trust incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Laudus Trust may deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 800.447.3332.

Each of the Funds is a series of the Laudus Trust (the “Trust”), an open-end management investment company offering multiple portfolios with different investment objectives and strategies. Except as explicitly described otherwise, the investment objective and policies of each of the Funds may be changed without shareholder approval. The Funds are advised by Charles Schwab Investment Management, Inc. (“CSIM”). AXA Rosenberg Investment Management LLC (“AXA Rosenberg”) acts as Sub-adviser to the Funds. The Funds are distributed by ALPS Distributors, Inc. Charles Schwab & Co. and ALPS Distributors, Inc. are unaffiliated entities.

President’s Message

Randall W. Merk is President and CEO of Charles Schwab Investment Management, Inc. and the funds during the period of this report. He joined the firm in 2002 and has held a variety of executive positions at Schwab.

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,

I am pleased to present the annual report for the Laudus Rosenberg Funds for the year ended March 31, 2008. At this time, I would also like to introduce Jeffrey Mortimer, who will be assuming the position of President and CEO of the Laudus Rosenberg Funds. As the current Chief Investment Officer (CIO) of both Laudus Funds and Schwab Equity Funds, Jeffrey is an exceptionally capable portfolio manager and strategist, bringing over 20 years of industry knowledge and experience to the role.

The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg, 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.

Since our initial offering, we have continued to evaluate investment opportunities and adjust our products to better support our clients by leveraging the Laudus Rosenberg investment process. Our most recently launched fund, the Laudus Rosenberg International Discovery Fund, has reached $261 million in assets, representing an increase of over 250% in the past year. The fund utilizes the same investment discipline used in all of the Laudus Rosenberg Funds and provides international small/mid-cap exposure in developing and emerging markets.

In closing, I would like to thank you for investing with us.

Sincerely,

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 1-800-447-3332. Please read the prospectus carefully before investing.

Laudus U.S. Equity Funds 1

Management’s Discussion for the year ended March 31, 2008

Global Market Overview

The past four quarters were a period of increasing volatility in capital markets around the globe. The period began with fairly strong positive returns, with many equity indexes gaining over 6% in the second quarter of 2007. In the third quarter, however, small-cap stocks around the world began to pull back, posting generally negative returns, particularly more value-oriented stocks. Large-cap indexes, especially those with a growth-style orientation, continued upward. During the final two quarters of the period, the damage spread across all equity areas — many indexes lost well over 10%, as investors became increasingly concerned about slowing global economic growth and problems in the credit markets. As a result, global equity markets ultimately generated mostly negative returns for the full period, with U.S. small-cap stocks the worst performing area. The most notable exception was emerging markets stocks, which finished the period up over 20%.

Three specific months stand out as significant contributors to the relatively weak returns over the period: July and November of 2007, and January of 2008. In July, investors around the globe sold equity positions in reaction to problems in the credit markets. Continued deterioration in the U.S. housing market and weakness in the sub-prime lending business led to significant financing problems among major investment banks. Over the past several years, many of the loans made to U.S. homeowners were packaged into securitized, bond-like products and placed in fixed income portfolios around the globe. As some borrowers across the U.S. housing markets began to default on their loans, the quality of the securities created by packaging them began to deteriorate. For example, Bear Stearns, a venerated U.S. investment bank, ran into trouble with two of their hedge funds during the summer of 2007, as the values of the underlying assets became increasingly difficult to determine. As these funds were highly leveraged, declines in asset values led to significant losses for the funds. These funds — and others like them — needed to sell their more liquid and highly valued assets to raise cash, causing some unusually strong global volatility in the middle of August 2007. While in its initial stages these effects were felt most strongly in the U.S. fixed income markets, equity investors were concerned about the financial status of the U.S. consumer, and thus the continued growth of the U.S. economy.

After the U.S. Federal Reserve’s (the “Fed”) Open Market Committee acted to provide additional liquidity to the credit markets in mid-August, and followed that up with a cut in interest rates in mid-September, the markets responded positively. The Fed probably had the Financial sector in mind when it took considerable action during August and September. This group of companies comprises about 20% of most major U.S. indexes, so their valuations and future earnings are very important to stock market investors. In August, the Fed lowered the discount rate, which makes it easier for banks to borrow directly from the Fed. They even persuaded some major banks to step up to the discount window, in a public display of pumping liquidity into the financial system. Then, in September, they lowered the Fed funds rate, the rate banks charge each other, which has much broader application. That caused an immediate decline in the prime rate, lowering borrowing costs throughout the economy. The equity markets generally cheered these moves, but the concerns over the housing market continued the pressure on Financial stocks, keeping the pressure on the markets overall.

By November 2007, it became increasingly clear that the U.S. economy was slowing down. Banks, mortgage firms and homebuilders began to write down assets on their balance sheets in response to the declines in asset values in securities tied to the U.S. mortgage markets. These firms also reported lower earnings and reduced their expectations of future earnings in their reports and updates to investors. Economists around the world spoke of a recession — or at best flat economic growth — in the U.S. and possibly around the world. By January 2008, investors saw evidence of the slowdown in higher unemployment figures and lower manufacturing production. The final figure for U.S. GDP growth in the fourth quarter of 2007 was an annual rate of 0.6% — growth, but just barely. Investors continued to sell stocks across the globe, and equities in general continued their decline.

Also in January, the Fed and some of their global counterparts took some unusual steps designed to restore liquidity to the credit markets. These central banks created pools of credit facilities and lowered the interest rates they charged to borrowers. The Fed again lowered their main interest rate, the Fed funds rate, numerous times in the early part of 2008, thus reducing borrowing costs across the entire economy. While other central banks around the world were not quite as accommodat-

2 Laudus U.S. Equity Funds

Management’s Discussion continued

ing, they too injected liquidity into their markets. And in one of the most unusual moves in recent financial history, the Fed also engineered a purchase of Bear Stearns by JP Morgan. The Fed believed that Bear Stearns’ potential bankruptcy — an event no one thought likely just days before — would very negatively affect both the equity and credit markets, partially due to the firm’s size and presence as a prime broker. But all of these moves, while helpful in calming the markets, also lowered the value of the U.S. dollar versus other currencies, leading to higher commodity and energy prices and increasing fears of inflation.

Investors’ concerns were heightened by reports of inflation. The U.S. Consumer Price Index climbed during the period, with a reported gain of 4.1% during the calendar year 2007. The decline in the value of the U.S. dollar versus other major currencies was a factor in the U.S. inflation rate, as that decline increased the price of imports, especially energy-related products such as crude oil and gasoline. Further evidence of inflation fears showed in the fixed income markets, as the return on U.S. Treasury Inflation Protected Series (“TIPS”) bonds was strongly positive over the period, returning over 14%. Major commodity indexes also were up strongly, many over 30% during the period. Inflation is generally viewed by investors as negative for equities, due to the difficulty of passing along higher costs to consumers and thus increasing the likelihood of lower earnings.

The U.S. dollar’s decline and the gains in some commodity markets did generate some positive news for U.S. investors with assets in non-U.S. stocks, however. The MSCI EAFE Index, while negative for the period at - -2.27%, lost less than its U.S. counterpart, the Russell 1000 Index, which was down 5.40%. The dollar’s decline explains much of the difference, but also important was that financial firms in the U.S. index were down significantly more than their foreign counterparts, as a result of their greater direct exposure to problems stemming from the U.S. housing markets. Also important was the higher return to foreign firms in the Materials Sector. Generally, commodity-oriented firms were of greater importance in non-U.S. economies, and their increased weight in the non-U.S. indexes, plus their overall higher returns, helped push these stocks to higher returns versus U.S. equities. This trend was especially true for the emerging markets area, where the Materials and Energy Sectors combined to contribute nearly 11% of the total 21.6% return to the MSCI Emerging Markets Index over the period.

U.S. Equity Funds Performance

Total returns are for the year ended 3/31/08. For performance details, see pages 9 through 15.


Laudus Rosenberg U.S. Large Capitalization Fund^(1,2)

AXLIX	AXLVX	Russell
Institutional shares	Investor shares	1000 Index
-6.30%	-6.61%	-5.40%

Laudus Rosenberg U.S. Large Capitalization Growth Fund⁽¹⁾
��
REDIX	REFIX	Russell 1000
Institutional shares	Investor shares	Growth Index
-0.78%	-1.25%	-0.75%

Laudus Rosenberg U.S. Large Capitalization Value Fund^(1,2)

LLCVX	LCVJX	Russell 1000
Institutional shares	Investor shares	Value Index
-5.29%	-5.50%	-9.99%

Laudus Rosenberg U.S. Discovery Fund^(1,3)(Closed to new investors)

RDISX	RDIVX	Russell 2500
Institutional shares	Investor shares	Index
-10.98%	-11.36%	-11.27%


Laudus Rosenberg U.S. Small Capitalization Fund^(1,3)
(Closed to new investors)

USCIX	LIFUX	BRSCX	Russell 2000
Institutional shares	Adviser	Investor shares	Index
-13.34%	shares	-13.57%	-13.00%
	-13.50%


Laudus Rosenberg Long/Short Equity Fund^(1,2,4)

BMNIX	BRMIX	90-Day T-Bills
Institutional shares	Investor shares
-0.51%	-0.82%	3.57%

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.

Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund’s advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower.

Laudus U.S. Equity Funds 3

Management’s Discussion continued

Investments in long/short funds are more volatile and risky 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 may sell a security short by borrowing it from a third party and selling it at the then-current market price. The Fund is obligated to buy the security on a later date so it can return the security to the lender. Short sales 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 the Fund’s loss on a short sale arises from increases in the value of the security sold short, the extent of such loss is theoretically unlimited.

Since risk in long/short funds relates specifically to the Manager’s stock selection techniques and not to any systematic or economy-wide factors, the proper benchmark is an asset that also has the least exposure to systematic influences. 90-day T-bills are such an asset. The full faith and credit of the U.S. government back an investment in 90-day T-bills. T-bills have a fixed rate of return, and investors do not bear the risk of losing their investment. The income received from T-bills is free from state income tax.

Investors cannot invest directly in any index.


⁽¹⁾	Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high- grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.

⁽²⁾	Value-based investments are subject to the risk that the broad market may not recognize their value.

⁽³⁾	Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

⁽⁴⁾	Small- and mid-capitalization funds typically carry additional risk since small- and mid-capitalization companies generally have a higher risk of failure.

Laudus Rosenberg U.S. Large Capitalization Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and underperformed its benchmark, the Russell 1000^® Index: The Fund’s Investor Shares lost 6.61% versus the benchmark’s loss of 5.40%. The Fund’s underperformance can be attributed primarily to stock selection. The Fund’s allocations across sectors and valuations contributed positively, but not enough to overcome the negative impacts from stock selection.

Among sectors, the strongest contributor to performance was from the Fund’s stock selection in the Information Technology sector. The Fund’s overweight of Energy stocks as compared to the benchmark also contributed nicely as the sector performed strongly for the fiscal year. Despite the extremely weak performance of the Financials sector for the period — by far the benchmark’s worst-performing sector for the period — the Fund posted a positive contribution due to a combination of its underweighting to the benchmark and stock selection with the sector; the Fund was able to avoid the most damaging fallout resulting from the expanding credit crisis over the period. However, dragging on Fund performance was stock selection in the Consumer Discretionary, Utilities, Consumer Staples and Health Care sectors, in combination with an underweight in Consumer Staples and Health Care, both of which held up relatively well for the period.

Across market capitalization, no clear pattern emerged. The strongest contribution came from stock selection among the smallest companies, along with an underweight of those stocks — among the weakest performers for the reporting period. An underweight of mid-caps, also weak performers, contributed somewhat. Those underweights logically led to an overweight of stocks in the mid- to large-cap range, however, which hurt the Fund, as did stock selection among mega-cap stocks (those with market caps above $150 billion).

From a valuation standpoint, the Fund’s value orientation dragged on performance for the reporting period as growth-oriented stocks generally outperformed value by a substantial margin. From a Price/ Earnings (“P/E”) perspective, the largest drag came from weak selection among stocks with mid-range P/Es, followed by a combination of stock selection and a substantial overweight of the most deeply undervalued stocks. Those negatives were somewhat mitigated by a substantial underweight of stocks with negative P/Es (those with no earnings), which as a group performed poorly for the period. A combination of stock selection and an underweight of high-P/E stocks also added value, consistent with the Fund’s value orientation as compared to the benchmark.

From a Price/ Book (“P/B”) perspective, stock selection among the most richly valued stocks — those with the highest P/B ratios — provided the greatest contribution, followed by selection among stocks at the low end of the P/B range. However, those contributions were overshadowed by the Fund’s overweight of low- to mid-range

4 Laudus U.S. Equity Funds

Management’s Discussion continued

P/B stocks, which were the worst performers for the period and dragged on performance, compounded by weak selection among those stocks.

The Fund is managed for long-term performance and seeks to outperform its benchmark as a result of effective stock picking. Consistent with the Fund’s underlying model, it seeks to capitalize on stocks with both superior long-term earnings and those with accelerating near-term earnings growth.

Laudus Rosenberg U.S. Large Capitalization Growth Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and modestly underperformed its benchmark, the Russell 1000^® Growth Index: The Fund’s Investor Shares lost 1.25% versus the benchmark’s loss of 0.75%. While allocations across sectors and some valuation measures added value, they were overshadowed by the negative impact of stock selection across those categories.

Among sectors, the strongest contribution came from a substantial overweight in Energy stocks as compared to the benchmark; Energy was the benchmark’s strongest-performing sector for the fiscal year. Stock-picking, however, detracted somewhat from that contribution. An overweight in the Materials sector also contributed notably, boosted by positive stock picking as well; although moderating recently, commodities posted a strong return for the period, and the Fund’s long-standing overweight to Basic Minerals and Metals added notable value. A combination of a slight underweight to Consumer Discretionary stocks in concert with positive stock selection also contributed. On the other hand, the Fund’s performance was negatively impacted by a combined underweighting to the Health Care sector plus stock selection among those stocks, weak stock selection among Financials, and an underweight to Consumer Staples — which performed relatively well; as consumer confidence fell with increasingly dire economic reports, investors flocked to more defensive stocks such as Consumer Staples.

Across market capitalizations, the Fund’s allocation contributed only modestly, and despite the positive effect of stock picking across several market-cap ranges, stock selection overall dragged on Fund performance. Stock selection contributed most notably among the small- to mid-caps but detracted among the large-cap and mega-cap ranges. Market-cap allocation had the greatest contribution across mega-cap companies, where the Fund was slightly underweight as compared to the benchmark, and across mid-cap companies where the Fund was also underweighted. The greatest drag came from the Fund’s slight underweight in very large-cap stocks — the benchmark’s strongest performers for the period.

From a valuation standpoint, allocation across P/Es contributed somewhat but was overshadowed by the negative impact of stock selection. Across several P/E ranges, stock selection did contribute positively, primarily among mid-range P/Es and the highest P/Es (those with more growth-like characteristics). But detracting from performance was the Fund’s stock selection among the highest P/E ranges. In terms of allocation, a substantial underweight to stocks with negative P/Es (those with no earnings) worked in the Fund’s favor, as those stocks were snubbed by the market in favor of reliable earnings. An overweight of low-P/E stocks also contributed — the strongest performers in the benchmark for the period, albeit by only a small margin. As far as P/B measures, however, the contributors were a bit different: The Fund was helped by stock selection among stocks in the mid-range of P/B value, but dragged by its allocations, particularly from an overweight of low-P/B stocks and an overweight of stocks with extremely high P/B valuation. Such results are reflective of the market’s preference of growth characteristics over value for the period; and the Fund’s slight underperformance is not surprising given its overall value orientation.

Laudus Rosenberg U.S. Large Capitalization Value Fund For its fiscal year ended 3/31/08, the Fund posted a negative return but outperformed its benchmark, the Russell 1000^® Value Index: The Fund’s Investor Shares lost 5.50% versus the benchmark’s loss of 9.99%. The Fund’s outperformance can be attributed to both stock selection and its allocation across multiple measures.

Across sectors, the Fund’s greatest contribution came from a combination of solid stock selection and a notable underweight to the Financial sector — the benchmark’s weakest-performing sector for the fiscal year — as the Fund was able to avoid much of the fallout resulting from the subprime lending issues and the subsequent

Laudus U.S. Equity Funds 5

Management’s Discussion continued

credit crisis. A combination of an overweight of the Materials sector along with strong stock selection among those stocks also contributed notably. In the Energy sector — by far the benchmark’s strongest-performing sector for the period — the Fund’s substantial overweight contributed nicely. Strong stock-picking coupled with an overweight in Industrials — another strong performer — also added value.

From a market-capitalization standpoint, stock selection added value almost across the board, with the exception among mega-cap stocks — those with market caps above $150 billion. Selection among large-cap stocks provided the greatest contribution, although among small-caps was also notable. As far as allocation, the Fund’s overweight of the smallest of the benchmark’s large-cap spectrum and its underweight of the largest together provided the most notable contribution.

Across valuation measures, the Fund’s outperformance was again dominated by stock selection, with only a modest contribution from its allocations. From a P/E perspective, strong stock selection was particularly notable among the lower-end of the P/E range, although it was also in evidence among the highest P/E stocks (those with P/Es above 35). The most notable contribution from allocation across P/Es was the Fund’s substantial underweighting among stocks with negative P/Es — those with no earnings — which the market shunned in favor of stocks with reliable earnings. From a P/B perspective, the Fund’s stock selection among the most undervalued stocks was particular notable. Stock selection, combined with a modest overweighting of stocks with the highest P/B valuations also contributed nicely.

Laudus Rosenberg U.S. Discovery Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and slightly underperformed its benchmark, the Russell 2500^tm Index: The Fund’s Investor Shares lost 11.36% for the period versus the benchmark’s loss of 11.27%. The Fund’s underperformance was generally attributable to stock selection, with allocations contributing modestly.

Among sectors, the Fund’s most notable contribution came from extremely strong stock picking in the Materials sector, which performed well for the reporting period, albeit moderating in recent months from earlier highs. While allocation played some role — the Fund was overweight the benchmark — it was the Fund’s holdings in the Materials sector that had the most impact. The Fund’s overweight of the Energy sector — by far the benchmark’s strongest-performing sector of the reporting period — also added substantial value, although it was dampened a bit by weak stock selection within the sector. And stock selection among Financials also contributed to performance, as the Fund managed to avoid the most heavily hit holdings in the rapidly expanding credit-crisis fallout; an underweight to the sector also helped. Detracting from performance, however, was stock selection in the Information Technology sector, compounded somewhat by an overweight to the weakly performing sector, and weak stock selection in the Consumer Staples and Utilities sectors.

Across market capitalizations, while the Fund added value from strong stock selection within some ranges, others worked against it, resulting in only a modestly positive effect from stock picking. Allocation detracted somewhat. The Fund’s stock selection among the mid-range of market caps added the most value, whereas it detracted at the upper and lower ends of the range. The Fund’s substantial overweight of the smallest companies and its underweight of the largest also detracted from performance.

Across valuations, no clear pattern emerged. From a P/E perspective, strong stock picking among the most undervalued stocks added value, but it was overshadowed by a combination of weak performance of the Fund’s most richly valued stocks, along with a substantial underweighting of those stocks. A significant underweight among stocks with negative P/Es (those with no earnings) added value as the market shunned such stocks in favor of reliable earnings and anticipated earnings growth.

From a P/B perspective, the Fund suffered from its allocations across nearly all P/B levels, most notably its underweighting among stocks with the highest valuations, as the market favored those stocks and their growth orientation. Weak performance among the Fund’s stocks in that arena magnified the drag on performance. Stock selection contributed, however, among the middle ranges of P/Bs. Overall, the Fund’s value orientation as com-

6 Laudus U.S. Equity Funds

Management’s Discussion continued

pared to the benchmark did not bode well for it over the reporting period, as growth continued to outperform.

Laudus Rosenberg U.S. Small Capitalization Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and slightly underperformed its benchmark, the Russell 2000^® Index: The Fund’s Investor Shares lost 13.57% versus the benchmark’s loss of 13.00%. The Fund’s underperformance was generally attributable to stock selection, although some allocations also detracted.

Among sectors, the Fund’s greatest contribution came from the benchmark’s worst-performing industry for the reporting period, Consumer Discretionary, in which weakness was a reflection of the soft economy and a growing lack of consumer confidence during the period. A combination of the Fund’s underweighting of the sector and stock selection within the sector contributed notably to the Fund’s performance. Also contributing were overweights to Materials and Energy — the benchmark’s strongest performers for the period — coupled with solid stock selection in both sectors. And stock selection among Health Care companies also added value, albeit dampened somewhat by the negative impact of an underweighting to the sector. Detracting from performance, however, was the impact of weak stock selection among Industrials, Information Technology, Financials and, to a lesser extent, Utilities.

Across market capitalizations, the Fund’s allocations dragged on performance, with stock selection adding some value but unable to overcome the negatives. Evident of its value orientation, the Fund’s substantial underweight to the smallest companies worked against it for the fiscal year, compounded by weak selection among those companies. This was offset somewhat, however, by strong overall performance of the Fund’s small/mid-cap holdings, which outperformed those in the benchmark.

From a valuation standpoint, the effect of allocations and stock picking across P/E and P/B ratios yielded mixed effects. From a P/E perspective, the Fund’s allocations contributed, but were overshadowed by the drag from stock selection across multiple P/E ranges. For example, the Fund’s substantial underweighting of stocks with negative P/Es contributed notably to performance, but the stocks that the Fund held in that range underperformed those of the benchmark. The Fund’s substantial overweight of the lowest-P/E stocks contributed. However, although stock selection among stocks in the mid-range of P/E ratios provided a modest positive contribution, it was overshadowed by weak stock selection among the most overvalued stocks — those with stronger growth characteristics that the market rewarded for the period.

Across the valuation measure of P/B, stock selection overall provided the greatest contribution, but it was reduced by the drag from weak allocation. As with P/E measures, stock selection among the most richly valued stocks dragged notably on Fund performance — compounded by the Fund’s substantial underweighting of those stocks (the Fund held less than half of the benchmark’s weighting). And the Fund’s overweighting of low P/B stocks also dragged on performance, along with weak stock selection among the very low P/B range. The bright spot among P/B measures was stock selection among stocks in the mid-range of valuations.

Laudus Rosenberg Long/Short Equity Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and underperformed its benchmark, 90-day T-bills: The Fund’s Investor Shares lost 0.82% versus the benchmark’s gain of 3.57%. Although the Fund’s short positions contributed nicely, they were overshadowed by the negative impact of weak performance of many of the Fund’s long positions.

From a sector standpoint, the largest drag came from the Fund’s net long exposure to Information Technology; the Fund’s long positions underperformed, and while its short positions added value, the net effect was negative. The Fund’s net long exposure to Energy also detracted: While the Fund’s net long positions added value, they were more than overshadowed by strong performance among the Fund’s short positions, which dragged on the Fund. A net long exposure to Telecommunication Services also hurt the Fund for the period, as its long

Laudus U.S. Equity Funds 7

Management’s Discussion continued

positions were weak performers and its shorts were strong. And a net short exposure to Financials hurt: Although the Fund’s short positions added value due to the general decline of Financial stocks over the period, the Fund’s long positions underperformed, resulting in a net drag for the period. The Materials sector, where the Fund was net long, was the notable bright spot on a sector basis: The Fund’s long positions performed well, and its shorts fell — both adding value nicely for the period.

From a market-capitalization perspective, the Fund was generally net long among the smallest and largest stocks, and net short in between. That net long exposure to the smallest stocks — which performed weakly for the period, reflective of the general strength of larger-caps over the period — was the greatest detraction from Fund performance on a market-cap basis. Weak performance among the Fund’s net short positions among the smallest stocks added value — but not quite enough to overcome the negative impact of the longs.

From a valuation standpoint, in a market environment that favored growth over value, the Fund’s value orientation hurt. From a P/E perspective, value was added primarily among the lower-P/E ranges, where the Fund held a net long exposure (although the contribution came primarily from weak performance among the Fund’s short positions). At the mid-range of P/Es, the Fund’s weak performance of its longs as well as positive performance of its shorts netted a drag, as did weak performance among the Fund’s long positions with the highest valuations (P/Es above 35).

From a P/B perspective, a similar pattern emerged. Generally speaking, among the low-P/B stocks, the Fund’s short positions added value, while its longs lost value due to weak performance, resulting in a net loss. Only the Fund’s shorts among stocks with the highest P/B values detracted from Fund performance, as the market favored growth characteristics over value for the period.

8 Laudus U.S. Equity Funds

Performance and Fund Facts

Laudus Rosenberg U.S. Large Capitalization Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


					Since Inception		Since Inception
Class and Inception Date	1 year		5 year		Institutional		Investor
Institutional (6/19/02)		-6.30%		11.66%		6.57%		n/a
Investor (7/31/02)		-6.61%		11.28%		n/a		8.60%
Russell 1000^® Index*		-5.40%		11.86%		6.71%		9.23%

Investors cannot invest directly in any index.


*	The 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.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		6/19/02		7/31/02
Total Net Assets ($ x 1,000)		$83,783		$9,017
Ticker Symbol		AXLIX		AXLVX
Cusip		51855Q101		51855Q853
NAV		$10.38		$10.38
Net Expense Ratio³		0.84%		1.14%
Gross Expense Ratio⁴		1.00%		1.37%


Fund Characteristics²

Number of Securities	186
Avg. Market Capitalization ($Wtd. x 1,000,000)	77,522
Portfolio Turnover (One year trailing)	166	%
Price to Earnings (P/E)	14.06
Price to Book (P/B)	2.17
Price to Cash Flow	9.41
Beta	1.04
Return on Equity	17.39	%
Five-Year Earnings Growth	22.80	%


Top Equity Holdings²% of Net Assets

Exxon Mobil Corp.	4.5	%
Chevron Corp.	3.2	%
International Business Machines Corp.	3.2	%
Verizon Communications, Inc.	2.9	%
Pfizer, Inc.	2.9	%
ConocoPhillips	2.8	%
Occidental Petroleum Corp.	2.4	%
Apple, Inc.	2.2	%
The Coca-Cola Co.	2.0	%
Time Warner, Inc.	2.0	%
Total	28.1	%


Portfolio Composition²% of Investments

Sector Weightings


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus U.S. Equity Funds 9

Performance and Fund Facts

Laudus Rosenberg U.S. Large Capitalization Growth Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


					Since Inception		Since Inception
Class and Inception Date	1 year		5 year		Institutional		Investor
Institutional (6/7/00)		-0.78%		10.58%		0.06%		n/a
Investor (8/15/03)		-1.25%		n/a		n/a		7.65%
Russell 1000^® Growth Index*		-0.75%		9.96%		-3.93%		7.08%

Investors cannot invest directly in any 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.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		6/7/00		8/15/03
Total Net Assets ($ x 1,000)		$52,681		$2,804
Ticker Symbol		REDIX		REFIX
Cusip		51855Q200		51855Q846
NAV		$9.14		$9.18
Net Expense Ratio³		0.84%		1.14%
Gross Expense Ratio⁴		1.05%		1.43%


Fund Characteristics²

Number of Securities	302
Avg. Market Capitalization ($Wtd. x 1,000,000)	65,532
Portfolio Turnover (One year trailing)	85	%
Price to Earnings (P/E)	16.98
Price to Book (P/B)	3.53
Price to Cash Flow	13.69
Beta	1.10
Return on Equity	24.94	%
Five-Year Earnings Growth	26.61	%


Top Equity Holdings²% of Net Assets

Microsoft Corp.	2.9	%
Apple, Inc.	2.7	%
Schlumberger Ltd.	2.3	%
International Business Machines Corp.	2.1	%
Hewlett-Packard Co.	1.9	%
Cisco Systems, Inc.	1.6	%
The Coca-Cola Co.	1.6	%
Exxon Mobil Corp.	1.5	%
Intel Corp.	1.4	%
Transocean, Inc.	1.4	%
Total	19.4	%


Portfolio Composition²% of Investments

Sector Weightings


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

10 Laudus U.S. Equity Funds

Performance and Fund Facts

Laudus Rosenberg U.S. Large Capitalization Value Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹

Since Inception

Class and Inception Date

1 year

Institutional

Investor

Institutional (5/02/05)

-5.29%

9.05%

n/a

Investor (5/02/05)

-5.50%

n/a

8.74%

Russell 1000^® Value Index*

-9.99%

6.68%

Value-based investments are subject to the risk that the broad market may not recognize their value.

Investors cannot invest directly in any index.


*	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.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		5/2/05		5/2/05

Total Net Assets ($ x 1,000)		$5,765		$454
Ticker Symbol		LLCVX		LCVJX
Cusip		51855Q713		51855Q721
NAV		$10.47		$10.45
Net Expense Ratio³		0.84%		1.14%
Gross Expense Ratio⁴		2.37%		2.75%


Fund Characteristics²

Number of Securities	151
Avg. Market Capitalization ($Wtd. x 1,000,000)	100,320
Portfolio Turnover (One year trailing)	61	%
Price to Earnings (P/E)	11.99
Price to Book (P/B)	1.77
Price to Cash Flow	7.59
Beta	0.99
Return on Equity	16.44	%
Five-Year Earnings Growth	18.25	%


Top Equity Holdings²% of Net Assets

Chevron Corp.	4.5	%
Exxon Mobil Corp.	4.3	%
General Electric Co.	3.9	%
ConocoPhillips	3.7	%
AT&T, Inc.	3.6	%
Pfizer, Inc.	3.6	%
JPMorgan Chase & Co.	3.3	%
Verizon Communications, Inc.	3.0	%
Bank of America Corp.	2.9	%
Apache Corp.	2.3	%
Total	35.1	%

Portfolio Composition² % of Investments

Sector Weightings


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus U.S. Equity Funds 11

Performance and Fund Facts

Laudus Rosenberg U.S. Discovery Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


					Since Inception		Since Inception
Class and Inception Date	1 year		5 year		Institutional		Investor
Institutional (9/4/01)		-10.98%		14.65%		10.25%		n/a
Investor (10/3/01)		-11.36%		14.24%		n/a		11.10%
Russell 2500^tmIndex*		-11.27%		15.67%		8.50%		10.53%

Small and mid-capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

Investors cannot invest directly in any index.


*	The Russell 2500^tm 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.

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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		9/4/01		10/3/01
Total Net Assets ($ x 1,000)		$566,055		$169,670
Ticker Symbol		RDISX		RDIVX
Cusip		51855Q309		51855Q838
NAV		$16.23		$15.97
Fund Expense Ratio³		0.97%		1.35%


Fund Characteristics²

Number of Securities	765
Avg. Market Capitalization ($Wtd. x 1,000,000)	$2,449
Portfolio Turnover (One year trailing)	74	%
Price to Earnings (P/ E)	14.34
Price to Book (P/ B)	1.66
Price to Cash Flow	9.16
Beta	1.26
Return on Equity	12.84	%
Five-Year Earnings Growth	24.31	%


Top Equity Holdings²% of Net Assets

CF Industries Holdings, Inc.			2.0%
FMC Corp.			1.9%
Avnet, Inc.			1.9%
SPX Corp.			1.8%
Tidewater, Inc.			1.4%
Helmerich & Payne, Inc.			1.3%
MDU Resources Group, Inc.			1.3%
Rowan Cos., Inc.			1.2%
Terra Industries, Inc.			1.2%
PartnerRe Ltd.			1.1%
Total			15.1%

Portfolio Composition² % of Investments

Sector Weightings


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects the total annual fund operating expenses. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

12 Laudus U.S. Equity Funds

Performance and Fund Facts

Laudus Rosenberg U.S. Small Capitalization Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$100,000 Investment in Adviser Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 year		5 year		10 year
Institutional (2/22/89)		-13.34%		12.41%		6.63%
Adviser (1/21/97)		-13.50%		12.16%		6.39%
Investor (10/22/96)		-13.57%		12.05%		6.30%
Russell 2000^® Index*		-13.00%		14.90%		4.96%

Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

Investors cannot invest directly in any index.


*	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.

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.

Institutional

Adviser

Investor

Fund Overview²

Initial Investment

$50,000

$100,000

$100

Inception Date

2/22/89

1/21/97

10/22/96

Total Net Assets ($ x 1,000)

$393,939

$34,799

$183,980

Ticker Symbol

USCIX

LIFUX

BRSCX

Cusip

51855Q408

51855Q739

51855Q820

NAV

$9.03

$8.82

$8.70

Fund Expense Ratio³

0.95%

1.20%

1.30%


Fund Characteristics²

Number of Securities	561

Avg. Market Capitalization ($Wtd. x 1,000,000)	1,082
Portfolio Turnover (One year trailing)	68	%
Price to Earnings (P/E)	16.10
Price to Book (P/B)	1.53
Price to Cash Flow	9.90
Beta	1.32
Return on Equity	10.28	%
Five-Year Earnings Growth	22.42	%


Top Equity Holdings²% of Net Assets

Woodward Governor Co.			1.9%
Mariner Energy, Inc.			1.7%
Perot Systems Corp., Class A			1.7%
Atwood Oceanics, Inc.			1.7%
Sybase, Inc.			1.6%
Terra Industries, Inc.			1.5%
MPS Group, Inc.			1.4%
Regal-Beloit Corp.			1.4%
Schnitzer Steel Industries, Inc., Class A			1.3%
Longs Drug Stores Corp.			1.2%
Total			15.4%

Portfolio Composition² % of Investments

Sector Weightings


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects the total annual fund operating expenses. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus U.S. Equity Funds 13

Performance and Fund Facts

Laudus Rosenberg Long/Short Equity Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 year		5 year		10 year
Institutional (12/16/97)		-0.51%		1.06%		2.60%
Investor (12/18/97)		-0.82%		0.76%		2.27%
90 day T-bills		3.57%		3.03%		3.47%

Investments in long/short funds are more volatile and risky 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.

Small- and mid-capitalization funds typically carry additional risk since small-and mid-capitalization companies generally have a higher risk of failure.

Value-based investments are subject to the risk that the broad market may not recognize their value.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		12/16/97		12/18/97
Total Net Assets ($ x 1,000)		$182,817		$14,714
Ticker Symbol		BMNIX		BRMIX
Cusip		51855Q861		51855Q762
NAV		$10.37		$10.30
Gross Expense Ratio³		1.66%		1.99%
Gross Expense Ratio⁴(paid by shareholders)		2.99%		3.32%


Fund Characteristics²	Long			Short

Number of Securities		584			386
Avg. Market Capitalization ($Wtd. x 1,000,000)		3,017			3,059
Portfolio Turnover (One year trailing)		129	%		124	%
Price to Earnings (P/E)		13.87			-97.68
Price to Book (P/B)		1.57			1.90
Price to Cash Flow		9.50			11.74
Beta		1.37			1.40
Return on Equity		12.52	%		-1.85	%
Five-Year Earnings Growth		23.99	%		5.13	%


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. 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.

14 Laudus U.S. Equity Funds

Performance and Fund Facts continued

Laudus Rosenberg Long/Short Equity Fund as of 3/31/08


Top Equity Holdings¹% of Net Assets	Long

ENSCO International, Inc.		1.4%
Avnet, Inc.		1.3%
Axis Capital Holdings, Inc.		1.1%
AGCO Corp.		1.1%
FMC Corp.		1.1%
Perrigo Co.		1.0%
Sybase, Inc.		1.0%
MDU Resources Group, Inc.		1.0%
Electronic Data Systems Corp.		1.0%
Gannett Co., Inc.		1.0%
Total		11.0%


Top Equity Holdings¹% of Net Assets	Short

Ventas, Inc.		1.2%
Boston Properties, Inc.		1.2%
Regency Centers Corp.		1.2%
Developers Diversified Realty Corp.		1.2%
Microchip Technology, Inc.		1.1%
The Macerich Co.		1.1%
CB Richard Ellis Group, Inc., Class A		1.1%
Plum Creek Timber Co., Inc.		1.1%
Camden Property Trust		1.0%
The Hershey Co.		1.0%
Total		11.2%

Portfolio Composition¹ % of Investments

Sector Weightings—Long Holdings

Portfolio Composition¹ % of Short Positions

Sector Weightings—Short Positions


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus U.S. Equity Funds 15

Disclosure of 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 the period beginning October 1, 2007 and held through March 31, 2008, unless otherwise noted.

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 share classes’ actual expense ratios 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
		Expense Ratio¹			Account Value		(Net of Expenses)		Paid During Period²
		(Annualized)			at 10/1/07		at 3/31/08		10/1/07 - 3/31/08

Laudus Rosenberg U.S. Large Capitalization Fund
Institutional Shares			0.98	%
	Actual Return				$	1,000	$	860.20	$	4.56
	Hypothetical 5% Return				$	1,000	$	1,020.10	$	4.95
Investor Shares			1.30	%
	Actual Return				$	1,000	$	857.90	$	6.04
	Hypothetical 5% Return				$	1,000	$	1,018.50	$	6.56

Laudus Rosenberg U.S. Large Capitalization Growth Fund
Institutional Shares			1.00	%
	Actual Return				$	1,000	$	866.00	$	4.72
	Hypothetical 5% Return				$	1,000	$	1,020.00	$	5.05
Investor Shares			1.30	%
	Actual Return				$	1,000	$	884.10	$	6.12
	Hypothetical 5% Return				$	1,000	$	1,018.50	$	6.56

Laudus Rosenberg U.S. Large Capitalization Value Fund
Institutional Shares			0.99	%
	Actual Return				$	1,000	$	892.40	$	4.68
	Hypothetical 5% Return				$	1,000	$	1,020.05	$	5.00
Investor Shares			1.29	%
	Actual Return				$	1,000	$	891.60	$	6.10
	Hypothetical 5% Return				$	1,000	$	1,018.55	$	6.51


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 that fund’s or share class’ annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year.

16 Laudus U.S. Equity Funds


							Ending
					Beginning		Account Value		Expenses
		Expense Ratio¹			Account Value		(Net of Expenses)		Paid During Period²
		(Annualized)			at 10/1/07		at 3/31/08		10/1/07 - 3/31/08

Laudus Rosenberg U.S. Discovery Fund
Institutional Shares			0.95	%
	Actual Return				$	1,000	$	876.45	$	4.46
	Hypothetical 5% Return				$	1,000	$	1,020.25	$	4.80
Investor Shares			1.31	%
	Actual Return				$	1,000	$	875.20	$	6.14
	Hypothetical 5% Return				$	1,000	$	1,018.45	$	6.61

Laudus Rosenberg U.S. Small Capitalization Fund
Institutional Shares			0.96	%
	Actual Return				$	1,000	$	864.50	$	4.47
	Hypothetical 5% Return				$	1,000	$	1,020.20	$	4.85
Adviser Shares			1.19	%
	Actual Return				$	1,000	$	864.30	$	5.55
	Hypothetical 5% Return				$	1,000	$	1,019.05	$	6.01
Investor Shares			1.29	%
	Actual Return				$	1,000	$	862.80	$	6.01
	Hypothetical 5% Return				$	1,000	$	1,018.55	$	6.51

Laudus Rosenberg Long/ Short Equity Fund
Institutional Shares			3.45	%
	Actual Return				$	1,000	$	1,010.90	$	17.34
	Hypothetical 5% Return				$	1,000	$	1,007.75	$	17.32
Investor Shares			3.69	%
	Actual Return				$	1,000	$	1,009.80	$	18.54
	Hypothetical 5% Return				$	1,000	$	1,006.55	$	18.51


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 that fund’s or share class’ annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year.

Laudus U.S. Equity Funds 17

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings as of March 31, 2008

Cost

Value

Holdings by Category

($)

99.3

Common Stock

91,038,135

92,120,930

1.9

Short-Term Investment

1,798,000

101.2

Total Investments

92,836,135

93,918,930

(1.2

Other Assets and
Liabilities

(1,118,639

)

100.0

Net Assets

92,800,291


	Number of		Value
Security	Shares		($)
Common Stock 99.3% of net assets
Automobiles & Components 0.2%

Johnson Controls, Inc.		4,020		135,876
TRW Automotive Holdings Corp. *		3,600		84,132

				220,008
Banks 2.8%

Fifth Third Bancorp		35,430		741,195
Hudson City Bancorp, Inc.		6,200		109,616
Regions Financial Corp.		44,612		881,087
U.S. Bancorp		11,755		380,392
Wells Fargo & Co.		15,420		448,722

				2,561,012
Capital Goods 12.8%

3M Co.		19,700		1,559,255
Aecom Technology Corp. *		2,700		70,227
AGCO Corp. *		6,069		363,412
Caterpillar, Inc.		2,840		222,344
Crane Co.		910		36,719
Cummins, Inc.		15,612		730,954
Deere & Co.		13,094		1,053,281
Dover Corp.		12,950		541,051
Emerson Electric Co.		1,730		89,026
First Solar, Inc. *		1,900		439,166
Fluor Corp.		1,000		141,160
General Electric Co.		34,100		1,262,041
Goodrich Corp.		100		5,751
Honeywell International, Inc.		1,070		60,369
Ingersoll-Rand Co., Ltd., Class A		14,527		647,614
Kennametal, Inc.		5,600		164,808
L-3 Communications Holdings, Inc.		5,383		588,577
Lockheed Martin Corp.		8,890		882,777
Precision Castparts Corp.		378		38,586
Rockwell Collins, Inc.		6,700		382,905
SPX Corp.		4,770		500,373
Teleflex, Inc.		2,800		133,588
Terex Corp. *		100		6,250
The Manitowoc Co., Inc.		9,000		367,200
The Shaw Group, Inc. *		5,800		273,412
The Timken Co.		6,799		202,066
United Technologies Corp.		9,395		646,564
W.W. Grainger, Inc.		5,700		435,423

				11,844,899
Commercial Services & Supplies 0.0%

Republic Services, Inc.		500		14,620
Steelcase, Inc., Class A		510		5,641

				20,261
Consumer Durables & Apparel 1.0%

Hasbro, Inc.		7,500		209,250
Mattel, Inc.		15,522		308,888
Whirlpool Corp.		5,216		452,644

				970,782
Consumer Services 1.6%

Darden Restaurants, Inc.		5,400		175,770
McDonald’s Corp.		3,995		222,801
Yum! Brands, Inc.		29,100		1,082,811

				1,481,382
Diversified Financials 2.2%

Bank of America Corp.		30,903		1,171,533
Bank of New York Mellon Corp.		8,204		342,353
JPMorgan Chase & Co.		8,330		357,773
State Street Corp.		2,380		188,020

				2,059,679
Energy 22.7%

Apache Corp.		2,800		338,296
Atwood Oceanics, Inc. *		1,700		155,924
Berry Petroleum Co., Class A		340		15,807
Bill Barrett Corp. *		2,000		94,500
Cameron International Corp. *		7,800		324,792
Chevron Corp.		34,884		2,977,698
Cimarex Energy Co.		5,400		295,596
ConocoPhillips		33,760		2,572,850
Devon Energy Corp.		8,268		862,600
Diamond Offshore Drilling, Inc.		5,200		605,280
El Paso Corp.		28,764		478,633
Encore Acquisition Co. *		790		31,821
ENSCO International, Inc.		12,300		770,226
EXCO Resources, Inc. *		2,077		38,424
Exxon Mobil Corp.		48,800		4,127,504
Forest Oil Corp. *		380		18,605
Foundation Coal Holdings, Inc.		3,017		151,846
Helix Energy Solutions Group, Inc. *		1,024		32,256
Helmerich & Payne, Inc.		7,096		332,589
Mariner Energy, Inc. *		5,300		143,153
Massey Energy Co.		1,310		47,815
Noble Corp.		17,516		870,020
Occidental Petroleum Corp.		29,915		2,188,880
Oil States International, Inc. *		1,980		88,724
Petrohawk Energy Corp. *		10,500		211,785
Pioneer Natural Resources Co.		8,055		395,662
Plains Exploration & Production Co. *		6,173		328,033
Pride International, Inc. *		13,499		471,790
Rowan Cos., Inc.		7,170		295,261
Schlumberger Ltd.		10,494		912,978
SEACOR Holdings, Inc. *		1,580		134,869
St. Mary Land & Exploration Co.		4,500		173,250
Superior Energy Services, Inc. *		2,652		105,072
Tidewater, Inc.		3,800		209,418
Transocean, Inc. *		356		48,131
Unit Corp. *		1,200		67,980
Whiting Petroleum Corp. *		2,700		174,555

				21,092,623

See financial notes.

18 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Fund


	Number of		Value
Security	Shares		($)
Food & Staples Retailing 0.3%

CVS Caremark Corp.		7,700		311,927
Sysco Corp.		480		13,930

				325,857
Food, Beverage & Tobacco 5.7%

Altria Group, Inc.		12,740		282,828
Corn Products International, Inc.		5,960		221,355
General Mills, Inc.		16,173		968,439
Molson Coors Brewing Co., Class B		6,355		334,082
Philip Morris International, Inc. *		12,740		644,389
Sara Lee Corp.		45,790		640,144
The Coca-Cola Co.		30,900		1,880,883
UST, Inc.		5,424		295,717

				5,267,837
Health Care Equipment & Services 1.0%

Express Scripts, Inc. *		1,100		70,752
Health Net, Inc. *		7,900		243,320
Humana, Inc. *		10,950		491,217
UnitedHealth Group, Inc.		2,748		94,421

				899,710
Household & Personal Products 2.2%

Avon Products, Inc.		1,740		68,800
Colgate-Palmolive Co.		15,350		1,195,918
Energizer Holdings, Inc. *		3,010		272,345
The Estee Lauder Cos., Inc., Class A		8,100		371,385
The Procter & Gamble Co.		1,920		134,534

				2,042,982
Insurance 5.7%

ACE Ltd.		18,400		1,013,104
Alleghany Corp. *		322		110,072
Aspen Insurance Holdings Ltd.		475		12,531
CNA Financial Corp.		4,490		115,797
Hanover Insurance Group, Inc.		51		2,098
Loews Corp.		32,140		1,292,671
Marsh & McLennan Cos., Inc.		978		23,814
Prudential Financial, Inc.		22,526		1,762,659
The Hartford Financial Services Group, Inc.		5,471		414,538
Unum Group		24,500		539,245

				5,286,529
Materials 4.2%

AK Steel Holding Corp.		1,450		78,909
Celanese Corp., Series A		9,000		351,450
Century Aluminum Co. *		240		15,898
CF Industries Holdings, Inc.		3,490		361,634
Eastman Chemical Co.		2,800		174,860
FMC Corp.		1,937		107,484
Freeport-McMoRan Copper & Gold, Inc.		9,318		896,578
Monsanto Co.		2,960		330,040
Nalco Holding Co.		2,170		45,896
Owens-Illinois, Inc. *		6,388		360,475
PPG Industries, Inc.		5,900		357,009
RPM International, Inc.		5,560		116,426
Southern Copper Corp.		3,650		378,979
Terra Industries, Inc. *		5,662		201,171
The Scotts Miracle-Gro Co., Class A		3,120		101,150

				3,877,959
Media 5.1%

CBS Corp., Class B		55,900		1,234,272
DISH Network Corp., Class A *		7,078		203,351
Gannett Co., Inc.		15,500		450,275
The DIRECTV Group, Inc. *		39,859		988,105
Time Warner, Inc.		132,912		1,863,426

				4,739,429
Pharmaceuticals & Biotechnology 7.5%

Applied Biosystems Group-Applera Corp.		5,310		174,487
Biogen Idec, Inc. *		3,759		231,893
Bristol-Myers Squibb Co.		10,480		223,224
Gilead Sciences, Inc. *		12,783		658,708
Illumina, Inc. *		2,220		168,498
Invitrogen Corp. *		2,040		174,359
Millennium Pharmaceuticals, Inc. *		5,550		85,803
Mylan, Inc.		21,500		249,400
PerkinElmer, Inc.		7,890		191,332
Pfizer, Inc.		127,431		2,667,131
Pharmaceutical Product Development, Inc.		2,982		124,946
Waters Corp. *		6,820		379,874
Wyeth		37,960		1,585,209

				6,914,864
Retailing 2.9%

Abercrombie & Fitch Co., Class A		6,200		453,468
Amazon.com, Inc. *		16,182		1,153,777
Autozone, Inc. *		3,028		344,677
IAC/ InterActive Corp. *		14,500		301,020
The Sherwin-Williams Co.		7,790		397,602
The TJX Cos., Inc.		420		13,889

				2,664,433
Semiconductors & Semiconductor Equipment 1.1%

MEMC Electronic Materials, Inc. *		14,010		993,309
Micron Technology, Inc. *		2,010		12,000

				1,005,309
Software & Services 3.9%

Accenture Ltd., Class A		5,670		199,414
BMC Software, Inc. *		510		16,585
Cadence Design Systems, Inc. *		18,270		195,124
Computer Sciences Corp. *		12,100		493,559
Electronic Data Systems Corp.		33,260		553,779
Hewitt Associates, Inc., Class A *		830		33,009
Microsoft Corp.		10,826		307,242
Novell, Inc. *		22,479		141,393
Oracle Corp. *		84,409		1,651,040

				3,591,145
Technology Hardware & Equipment 7.9%

Apple, Inc. *		14,190		2,036,265
Avnet, Inc. *		9,848		322,325
AVX Corp.		1,520		19,471
EchoStar Corp., Class A *		1,126		33,262

See financial notes.

Laudus U.S. Equity Funds 19

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Harris Corp.		7,210		349,901
Hewlett-Packard Co.		27,022		1,233,825
International Business Machines Corp.		25,410		2,925,707
Western Digital Corp. *		14,446		390,620

				7,311,376
Telecommunication Services 3.1%

AT&T, Inc.		6,086		233,094
CenturyTel, Inc.		100		3,324
Verizon Communications, Inc.		73,365		2,674,154

				2,910,572
Transportation 1.6%

Union Pacific Corp.		12,040		1,509,575

Utilities 3.8%

Alliant Energy Corp.		100		3,501
DTE Energy Co.		10,810		420,401
Great Plains Energy, Inc.		1,390		34,264
MDU Resources Group, Inc.		12,500		306,875
NRG Energy, Inc. *		501		19,534
ONEOK, Inc.		3,620		161,561
Pepco Holdings, Inc.		12,838		317,355
PG&E Corp.		26,100		961,002
Reliant Energy, Inc. *		22,080		522,192
The AES Corp. *		15,532		258,918
Xcel Energy, Inc.		25,920		517,104

				3,522,707

Total Common Stock (Cost $91,038,135)				92,120,930


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 1.9% of net assets
Repurchase Agreement 1.9%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.0%, with a maturity value of $1,798,100 (fully collateralized by Federal National Mortgage Association with a value of $1,834,451.)		1,798,000		1,798,000

Total Short-Term Investment (Cost $1,798,000)				1,798,000


End of Investments.

At 3/31/08, the tax basis cost of the fund’s investments was $93,066,331 and the unrealized appreciation and depreciation were $7,169,479 and ($6,316,880), respectively, with a net unrealized appreciation of $852,599.


*	Non-income producing security.

See financial notes.

20 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings as of March 31, 2008


				Cost		Value
Holdings by Category				($)		($)

	97.7	%	Common Stock		48,142,221		54,201,935
	1.4	%	Short-Term Investment		780,000		780,000

	99.1	%	Total Investments		48,922,221		54,981,935
	17.3	%	Collateral for Securities on Loan		9,625,633		9,625,633
	(16.4	)%	Other Assets and Liabilities				(9,122,078	)

	100.0	%	Net Assets				55,485,490


	Number of		Value
Security	Shares		($)
Common Stock 97.7% of net assets
Automobiles & Components 0.5%

Johnson Controls, Inc. (a)		7,500		253,500
The Goodyear Tire & Rubber Co. *		198		5,108
Thor Industries, Inc. (a)		810		24,114

				282,722
Capital Goods 13.7%

3M Co.		6,140		485,981
AGCO Corp. (a)*		2,510		150,299
Alliant Techsystems, Inc. (a)*		1,030		106,636
AMETEK, Inc. (a)		3,300		144,903
Caterpillar, Inc.		6,420		502,622
Cummins, Inc.		4,600		215,372
Danaher Corp. (a)		1,300		98,839
Deere & Co. (a)		870		69,983
Donaldson Co., Inc. (a)		2,100		84,588
Dover Corp.		1,900		79,382
Emerson Electric Co.		8,200		421,972
First Solar, Inc. *		629		145,387
Flowserve Corp.		1,080		112,730
Fluor Corp.		1,500		211,740
Foster Wheeler Ltd. *		400		22,648
Gardner Denver, Inc. *		1,900		70,490
General Dynamics Corp.		235		19,592
General Electric Co.		6,210		229,832
Goodrich Corp. (a)		2,600		149,526
Honeywell International, Inc.		8,000		451,360
Hubbell, Inc., Class B (a)		900		39,321
Illinois Tool Works, Inc. (a)		2,100		101,283
Ingersoll-Rand Co., Ltd., Class A		1,300		57,954
Jacobs Engineering Group, Inc. (a)*		1,900		139,821
Joy Global, Inc.		1,800		117,288
Kennametal, Inc.		1,800		52,974
L-3 Communications Holdings, Inc.		860		94,032
Lennox International, Inc. (a)		200		7,194
Lincoln Electric Holdings, Inc. (a)		1,590		102,539
Lockheed Martin Corp.		5,950		590,835
McDermott International, Inc. *		4,600		252,172
Northrop Grumman Corp.		747		58,124
PACCAR, Inc.		2,340		105,300
Parker Hannifin Corp. (a)		2,250		155,858
Precision Castparts Corp.		800		81,664
Raytheon Co.		3,700		239,057
Rockwell Collins, Inc.		3,400		194,310
Terex Corp. *		1,700		106,250
Textron, Inc.		1,300		72,046
The Boeing Co.		4,600		342,102
The Manitowoc Co., Inc. (a)		4,000		163,200
The Shaw Group, Inc. *		1,580		74,481
The Timken Co.		107		3,180
The Toro Co. (a)		1,700		70,363
United Technologies Corp.		7,100		488,622
W.W. Grainger, Inc. (a)		1,500		114,585

				7,598,437
Commercial Services & Supplies 0.5%

Allied Waste Industries, Inc. (a)*		1,500		16,215
Copart, Inc. (a)*		2,000		77,520
Republic Services, Inc.		2,900		84,796
Steelcase, Inc., Class A (a)		2,490		27,539
The Brink’s Co. (a)		1,300		87,334

				293,404
Consumer Durables & Apparel 0.9%

Hasbro, Inc.		1,600		44,640
Mattel, Inc.		1,340		26,666
NIKE, Inc., Class B		4,800		326,400
Whirlpool Corp. (a)		1,060		91,987

				489,693
Consumer Services 1.4%

Burger King Holdings, Inc. (a)		80		2,213
CBRL Group, Inc. (a)		800		28,616
Darden Restaurants, Inc. (a)		2,700		87,885
International Game Technology (a)		1,350		54,284
McDonald’s Corp. (a)		3,894		217,168
Yum! Brands, Inc. (a)		10,600		394,426

				784,592
Diversified Financials 2.1%

American Express Co.		5,700		249,204
Bank of New York Mellon Corp.		2,100		87,633
CME Group, Inc.		300		140,730
Franklin Resources, Inc. (a)		800		77,592
NYSE Euronext (a)		1,500		92,565
State Street Corp. (a)		4,390		346,810
The Goldman Sachs Group, Inc.		900		148,851

				1,143,385
Energy 15.4%

Arch Coal, Inc.		2,130		92,655
Baker Hughes, Inc.		1,900		130,150
BJ Services Co.		2,400		68,424
Cabot Oil & Gas Corp. (a)		1,200		61,008
Cameron International Corp. *		4,800		199,872
Chesapeake Energy Corp.		4,570		210,905
CONSOL Energy, Inc.		2,800		193,732
Continental Resources, Inc. *		1,800		57,402
Denbury Resources, Inc. *		4,000		114,200
Diamond Offshore Drilling, Inc. (a)		1,650		192,060
Dresser-Rand Group, Inc. *		3,100		95,325
ENSCO International, Inc. (a)		3,220		201,636
Exxon Mobil Corp.		10,130		856,795
FMC Technologies, Inc. (a)*		2,200		125,158
Foundation Coal Holdings, Inc. (a)		1,310		65,932
Global Industries Ltd. *		3,200		51,488
Grant Prideco, Inc. *		2,900		142,738

See financial notes.

Laudus U.S. Equity Funds 21

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Halliburton Co. (a)		11,600		456,228
Helix Energy Solutions Group, Inc. (a)*		2,300		72,450
Helmerich & Payne, Inc. (a)		3,500		164,045
Massey Energy Co. (a)		2,310		84,315
National-Oilwell Varco, Inc. (a)*		7,000		408,660
Noble Corp.		5,380		267,225
Noble Energy		800		58,240
Oceaneering International, Inc. *		2,200		138,600
Peabody Energy Corp.		700		35,700
Pride International, Inc. *		3,530		123,373
Quicksilver Resources, Inc. *		2,500		91,325
Range Resources Corp.		2,400		152,280
Rowan Cos., Inc. (a)		2,720		112,010
Schlumberger Ltd.		14,800		1,287,600
Smith International, Inc.		4,700		301,881
Southwestern Energy Co. (a)*		5,800		195,402
Superior Energy Services, Inc. *		2,246		88,987
The Williams Cos., Inc.		3,300		108,834
Tidewater, Inc. (a)		1,460		80,461
Transocean, Inc. (a)*		5,543		749,414
Unit Corp. *		1,120		63,448
Valero Energy Corp. (a)		2,400		117,864
W&T Offshore, Inc. (a)		470		16,032
Weatherford International Ltd. *		4,700		340,609
XTO Energy, Inc.		2,625		162,382

				8,536,845
Food & Staples Retailing 2.0%

Costco Wholesale Corp. (a)		1,700		110,449
CVS Caremark Corp.		4,920		199,309
Sysco Corp.		3,400		98,668
Wal-Mart Stores, Inc.		9,950		524,166
Walgreen Co. (a)		5,300		201,877

				1,134,469
Food, Beverage & Tobacco 4.5%

Altria Group, Inc.		7,700		170,940
Anheuser-Busch Cos., Inc.		2,700		128,115
General Mills, Inc.		1,095		65,568
PepsiCo, Inc.		9,900		714,780
Philip Morris International, Inc. *		7,700		389,466
Sara Lee Corp.		2,460		34,391
The Coca-Cola Co.		14,300		870,441
The Pepsi Bottling Group, Inc.		1,700		57,647
UST, Inc.		1,600		87,232

				2,518,580
Health Care Equipment & Services 6.8%

Aetna, Inc.		6,000		252,540
Baxter International, Inc.		8,000		462,560
Beckman Coulter, Inc.		1,260		81,333
Becton, Dickinson & Co.		1,400		120,190
Cardinal Health, Inc. (a)		3,128		164,251
CIGNA Corp.		5,700		231,249
Edwards Lifesciences Corp. (a)*		1,700		75,735
Express Scripts, Inc. *		4,400		283,008
Health Net, Inc. *		1,830		56,364
Hillenbrand Industries, Inc. (a)		400		19,120
Humana, Inc. *		3,400		152,524
IDEXX Laboratories, Inc. (a)*		1,700		83,742
Intuitive Surgical, Inc. (a)*		900		291,915
Kinetic Concepts, Inc. *		1,300		60,099
McKesson Corp.		1,700		89,029
Medco Health Solutions, Inc. (a)*		5,300		232,087
Medtronic, Inc.		6,300		304,731
Pediatrix Medical Group, Inc. *		1,800		121,320
St. Jude Medical, Inc. (a)*		1,800		77,742
Stryker Corp. (a)		1,700		110,585
UnitedHealth Group, Inc.		10,200		350,472
WellPoint, Inc. *		1,500		66,195
Zimmer Holdings, Inc. *		1,300		101,218

				3,788,009
Household & Personal Products 2.3%

Avon Products, Inc.		6,130		242,380
Church & Dwight Co., Inc. (a)		1,600		86,784
Colgate-Palmolive Co.		3,500		272,685
Energizer Holdings, Inc. *		400		36,192
Herbalife Ltd. (a)		1,530		72,675
The Estee Lauder Cos., Inc., Class A (a)		2,000		91,700
The Procter & Gamble Co.		6,960		487,687

				1,290,103
Insurance 1.1%

ACE Ltd.		1,400		77,084
Aflac, Inc. (a)		2,700		175,365
Arthur J. Gallagher & Co. (a)		200		4,724
CNA Financial Corp. (a)		1,800		46,422
Hanover Insurance Group, Inc.		200		8,228
PartnerRe Ltd.		480		36,624
Prudential Financial, Inc.		2,333		182,558
Transatlantic Holdings, Inc. (a)		375		24,881
W. R. Berkley Corp.		1,600		44,304

				600,190
Materials 5.8%

Airgas, Inc. (a)		2,320		105,490
AK Steel Holding Corp.		3,200		174,144
Carpenter Technology Corp.		1,000		55,970
Celanese Corp., Series A		2,200		85,910
Chemtura Corp.		200		1,468
Cleveland-Cliffs, Inc. (a)		1,400		167,748
Crown Holdings, Inc. *		3,600		90,576
Domtar Corp. (a)*		790		5,396
E.I. du Pont de Nemours & Co. (a)		2,400		112,224
Freeport-McMoRan Copper & Gold, Inc.		4,100		394,502
International Flavors & Fragrances, Inc.		510		22,466
Monsanto Co.		6,500		724,750
Nalco Holding Co. (a)		3,290		69,583
Owens-Illinois, Inc. *		2,300		129,789
Packaging Corp. of America (a)		3,600		80,388
Praxair, Inc.		4,500		379,035
Reliance Steel & Aluminum Co.		200		11,972
Rohm & Haas Co. (a)		1,700		91,936
RPM International, Inc. (a)		4,300		90,042
Southern Copper Corp. (a)		1,600		166,128
Steel Dynamics, Inc. (a)		2,630		86,895
The Lubrizol Corp. (a)		800		44,408
The Mosaic Co. *		1,100		112,860

See financial notes.

22 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Growth Fund


	Number of		Value
Security	Shares		($)
The Scotts Miracle-Gro Co., Class A (a)		200		6,484
The Valspar Corp.		100		1,984

				3,212,148
Media 2.2%

Comcast Corp., Class A (a)		9,400		181,796
CTC Media, Inc. *		1,800		49,950
DISH Network Corp., Class A (a)*		3,595		103,284
News Corp., Class A		7,600		142,500
Omnicom Group, Inc. (a)		1,800		79,524
The DIRECTV Group, Inc. *		10,553		261,609
The Walt Disney Co. (a)		4,400		138,072
Time Warner, Inc. (a)		8,800		123,376
Viacom, Inc., Class B *		3,400		134,708

				1,214,819
Pharmaceuticals & Biotechnology 7.9%

Abbott Laboratories		8,800		485,320
Allergan, Inc.		1,800		101,502
Amgen, Inc. *		4,100		171,298
Applied Biosystems Group-Applera Corp. (a)		320		10,515
Biogen Idec, Inc. *		1,297		80,012
Bristol-Myers Squibb Co.		22,300		474,990
Celgene Corp. (a)*		2,300		140,967
Cephalon, Inc. *		1,400		90,160
Charles River Laboratories International, Inc. (a)*		800		47,152
Eli Lilly & Co.		2,900		149,611
Genentech, Inc. *		2,400		194,832
Genzyme Corp. *		4,000		298,160
Gilead Sciences, Inc. *		9,735		501,645
ImClone Systems, Inc. (a)*		400		16,968
Invitrogen Corp. (a)*		740		63,248
Johnson & Johnson		6,200		402,194
Merck & Co., Inc.		10,910		414,034
Millennium Pharmaceuticals, Inc. (a)*		5,100		78,846
PerkinElmer, Inc.		1,240		30,070
Pharmaceutical Product Development, Inc.		1,700		71,230
Schering-Plough Corp.		9,160		131,996
Watson Pharmaceuticals, Inc. (a)*		1,910		56,001
Wyeth		8,962		374,253

				4,385,004
Real Estate 0.0%

ProLogis		280		16,481
Retailing 3.6%

Abercrombie & Fitch Co., Class A		1,480		108,247
Amazon.com, Inc. *		6,000		427,800
AutoZone, Inc. (a)*		800		91,064
Best Buy Co., Inc. (a)		2,200		91,212
Big Lots, Inc. *		3,100		69,130
Dollar Tree, Inc. *		363		10,015
GameStop Corp., Class A (a)*		1,400		72,394
IAC/ InterActiveCorp (a)*		2,700		56,052
Kohl’s Corp. (a)*		1,700		72,913
Lowe’s Cos., Inc.		7,900		181,226
RadioShack Corp. (a)		2,470		40,138
Staples, Inc.		3,700		81,807
Target Corp.		4,800		243,264
The Home Depot, Inc.		5,000		139,850
The Sherwin-Williams Co. (a)		1,900		96,976
The TJX Cos., Inc. (a)		7,300		241,411

				2,023,499
Semiconductors & Semiconductor Equipment 2.9%

Applied Materials, Inc. (a)		8,400		163,884
Fairchild Semiconductor International, Inc. *		1,700		20,264
Intel Corp.		35,400		749,772
Intersil Corp., Class A		2,300		59,041
MEMC Electronic Materials, Inc. *		4,600		326,140
Texas Instruments, Inc.		7,800		220,506
Varian Semiconductor Equipment Associates, Inc. (a)*		2,700		76,005

				1,615,612
Software & Services 8.9%

Accenture Ltd., Class A (a)		8,900		313,013
Activision, Inc. *		4,700		128,357
Adobe Systems, Inc. (a)*		3,200		113,888
Automatic Data Processing, Inc. (a)		3,000		127,170
BMC Software, Inc. (a)*		3,400		110,568
Cadence Design Systems, Inc. (a)*		3,100		33,108
eBay, Inc. (a)*		6,000		179,040
Electronic Arts, Inc. *		1,700		84,864
Electronic Data Systems Corp. (a)		6,088		101,365
Google, Inc., Class A *		1,380		607,849
Hewitt Associates, Inc., Class A *		2,260		89,880
MasterCard, Inc., Class A		1,300		289,887
Microsoft Corp.		57,210		1,623,620
Novell, Inc. (a)*		400		2,516
Oracle Corp. *		36,097		706,057
Synopsys, Inc. (a)*		4,510		102,422
Western Union Co. (a)		4,000		85,080
Yahoo!, Inc. *		7,300		211,189

				4,909,873
Technology Hardware & Equipment 12.0%

Apple, Inc. *		10,570		1,516,795
Arrow Electronics, Inc. (a)*		2,400		80,760
Avnet, Inc. (a)*		3,000		98,190
Avocent Corp. (a)*		15		254
AVX Corp. (a)		300		3,843
Brocade Communications Systems, Inc. (a)*		9,950		72,635
Cisco Systems, Inc. *		37,700		908,193
CommScope, Inc. (a)*		1,800		62,694
Corning, Inc.		19,300		463,972
Dell, Inc. *		12,500		249,000
EchoStar Corp., Class A (a)*		719		21,239
EMC Corp. (a)*		11,200		160,608
Harris Corp. (a)		2,810		136,369
Hewlett-Packard Co.		23,340		1,065,705
International Business Machines Corp.		9,900		1,139,886
Mettler-Toledo International, Inc. *		1,400		135,968
NCR Corp. (a)*		800		18,264
QUALCOMM, Inc.		9,800		401,800
Teradata Corp. *		1,500		33,090

See financial notes.

Laudus U.S. Equity Funds 23

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Vishay Intertechnology, Inc. *		300		2,718
Western Digital Corp. *		2,700		73,008

				6,644,991
Telecommunication Services 0.2%

American Tower Corp., Class A *		2,300		90,183
Transportation 2.2%

Burlington Northern Santa Fe Corp. (a)		2,000		184,440
C.H. Robinson Worldwide, Inc. (a)		1,500		81,600
FedEx Corp.		1,400		129,738
Kansas City Southern (a)*		1,500		60,165
Kirby Corp. (a)*		1,600		91,200
Northwest Airlines Corp. *		4,300		38,657
UAL Corp.		2,200		47,366
Union Pacific Corp. (a)		2,452		307,432
United Parcel Service, Inc., Class B (a)		3,600		262,872

				1,203,470
Utilities 0.8%

CenterPoint Energy, Inc. (a)		5,640		80,483
Exelon Corp.		1,800		146,286
NRG Energy, Inc. *		3,200		124,768
PPL Corp. (a)		1,600		73,472
The AES Corp. *		25		417

				425,426

Total Common Stock (Cost $48,142,221)				54,201,935


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 1.4% of net assets
Repurchase Agreements 1.4%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $780,043 (fully collateralized by Federal National Mortgage Association with a value of $796,273.)		780,000		780,000

Total Short-Term Investment (Cost $780,000)				780,000


End of Investments.


	Number of		Value
Security	Shares		($)
Collateral Invested for Securities on Loan 17.3% of net assets
State Street Navigator Security Lending Prime Portfolio		9,625,633		9,625,633

End of collateral invested for securities on loan.

At 03/31/08 the tax basis cost of the fund’s investments was $49,280,916 and the unrealized appreciation and depreciation were $7,496,557 and ($1,795,538), respectively, with a net unrealized appreciation of $5,701,019.


*	Non-income producing security.

(a) All or a portion of this security is on loan.

See financial notes.

24 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Value Fund

Portfolio Holdings as of March 31, 2008

Cost

Value

Holdings by Category

($)

100.5

Common Stock

5,899,094

6,246,814

0.9

Short-Term Investment

58,000

101.4

Total Investments

5,957,094

6,304,814

(1.4

Other Assets and
Liabilities

(86,337

)

100.0

Net Assets

6,218,477


	Number of		Value
Security	Shares		($)
Common Stock 100.5% of net assets
Automobiles & Components 0.4%

Johnson Controls, Inc.		600		20,280
TRW Automotive Holdings Corp. *		300		7,011

				27,291
Banks 2.5%

Hudson City Bancorp, Inc.		320		5,658
U.S. Bancorp		1,510		48,863
Wells Fargo & Co.		3,400		98,940

				153,461
Capital Goods 10.3%

AGCO Corp. *		154		9,221
Armstrong World Industries, Inc.		50		1,783
Crane Co.		300		12,105
Cummins, Inc.		752		35,209
Deere & Co.		700		56,308
General Electric Co.		6,500		240,565
Goodrich Corp.		200		11,502
Honeywell International, Inc.		400		22,568
Ingersoll-Rand Co., Ltd., Class A		1,000		44,580
Kennametal, Inc.		140		4,120
L-3 Communications Holdings, Inc.		300		32,802
Lennox International, Inc.		300		10,791
Northrop Grumman Corp.		700		54,467
SPX Corp.		270		28,323
Teleflex, Inc.		230		10,973
Terex Corp. *		400		25,000
The Shaw Group, Inc. *		390		18,385
The Timken Co.		300		8,916
Tyco International Ltd.		62		2,731
United Rentals, Inc. *		400		7,536

				637,885
Commercial Services & Supplies 0.4%

Allied Waste Industries, Inc. *		1,000		10,810
Manpower, Inc.		300		16,878

				27,688
Consumer Durables & Apparel 0.4%

Hasbro, Inc.		100		2,790
Mohawk Industries, Inc. *		60		4,297
Whirlpool Corp.		200		17,356

				24,443
Consumer Services 1.3%

CBRL Group, Inc.		4		143
McDonald’s Corp.		1,500		83,655

				83,798
Diversified Financials 8.8%

Bank of America Corp.		4,700		178,177
Bank of New York Mellon Corp.		640		26,707
Citigroup, Inc.		3,700		79,254
JPMorgan Chase & Co.		4,810		206,590
State Street Corp.		60		4,740
The Goldman Sachs Group, Inc.		300		49,617

				545,085
Energy 25.7%

Anadarko Petroleum Corp.		900		56,727
Apache Corp.		1,200		144,984
Chesapeake Energy Corp.		1,400		64,610
Chevron Corp.		3,300		281,688
Cimarex Energy Co.		329		18,010
ConocoPhillips		3,000		228,630
Devon Energy Corp.		600		62,598
El Paso Corp.		2,300		38,272
ENSCO International, Inc.		200		12,524
Exxon Mobil Corp.		3,180		268,964
Helix Energy Solutions Group, Inc. *		200		6,300
Helmerich & Payne, Inc.		400		18,748
Hess Corp.		1,000		88,180
Marathon Oil Corp.		2,400		109,440
Nabors Industries Ltd. *		300		10,131
Occidental Petroleum Corp.		1,190		87,072
Overseas Shipholding Group, Inc.		200		14,008
Pride International, Inc. *		300		10,485
Rowan Cos., Inc.		300		12,354
SEACOR Holdings, Inc. *		120		10,243
Tidewater, Inc.		300		16,533
Unit Corp. *		200		11,330
Valero Energy Corp.		600		29,466

				1,601,297
Food & Staples Retailing 2.2%

Safeway, Inc.		1,600		46,960
Supervalu, Inc.		800		23,984
Wal-Mart Stores, Inc.		1,300		68,484

				139,428
Food, Beverage & Tobacco 4.3%

Altria Group, Inc.		900		19,980
Bunge Ltd.		110		9,557
Coca-Cola Enterprises, Inc.		1,200		29,040
Corn Products International, Inc.		230		8,542
General Mills, Inc.		933		55,868
Kellogg Co.		300		15,768
Loews Corp. — Carolina Group		400		29,020
Philip Morris International, Inc. *		900		45,522
Sara Lee Corp.		1,300		18,174
The Pepsi Bottling Group, Inc.		500		16,955
UST, Inc.		300		16,356

				264,782

See financial notes.

Laudus U.S. Equity Funds 25

Laudus Rosenberg U.S. Large Capitalization Value Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Health Care Equipment & Services 0.1%

Kinetic Concepts, Inc. *		200		9,246
Household & Personal Products 1.7%

Avon Products, Inc.		300		11,862
The Procter & Gamble Co.		1,300		91,091

				102,953
Insurance 7.8%

ACE Ltd.		1,000		55,060
Allied World Assurance Co. Holdings Ltd.		180		7,146
American Financial Group, Inc.		400		10,224
American International Group, Inc.		1,400		60,550
CNA Financial Corp.		240		6,190
Endurance Specialty Holdings Ltd.		300		10,980
Everest Re Group Ltd.		200		17,906
Loews Corp.		1,800		72,396
PartnerRe Ltd.		260		19,838
The Allstate Corp.		1,900		91,314
The Travelers Cos., Inc.		2,100		100,485
Unum Group		1,400		30,814

				482,903
Materials 8.2%

Alcoa, Inc.		2,080		75,005
Celanese Corp., Series A		280		10,934
Commercial Metals Co.		150		4,495
FMC Corp.		432		23,972
Freeport-McMoRan Copper & Gold, Inc.		290		27,904
International Paper Co.		1,690		45,968
Owens-Illinois, Inc. *		300		16,929
PPG Industries, Inc.		300		18,153
Reliance Steel & Aluminum Co.		300		17,958
Steel Dynamics, Inc.		1,200		39,648
The Dow Chemical Co.		1,800		66,330
The Mosaic Co. *		800		82,080
The Scotts Miracle-Gro Co., Class A		120		3,890
United States Steel Corp.		600		76,122

				509,388
Media 2.8%

CBS Corp., Class B		2,500		55,200
Gannett Co., Inc.		1,000		29,050
Time Warner, Inc.		6,200		86,924

				171,174
Pharmaceuticals & Biotechnology 5.9%

Amgen, Inc. *		500		20,890
Invitrogen Corp. *		200		17,094
Johnson & Johnson		1,200		77,844
King Pharmaceuticals, Inc. *		1,100		9,570
Millennium Pharmaceuticals, Inc. *		600		9,276
PerkinElmer, Inc.		380		9,215
Pfizer, Inc.		10,600		221,858

				365,747
Real Estate 0.4%

Hospitality Properties Trust		400		13,608
iStar Financial, Inc.		600		8,418

				22,026
Retailing 0.1%

RadioShack Corp.		300		4,875
Semiconductors & Semiconductor Equipment 0.1%

Fairchild Semiconductor International, Inc. *		300		3,576
Software & Services 1.7%

Cadence Design Systems, Inc. *		730		7,796
Computer Sciences Corp. *		690		28,145
Electronic Data Systems Corp.		1,500		24,975
Hewitt Associates, Inc., Class A *		130		5,170
Novell, Inc. *		2		13
Symantec Corp. *		2,500		41,550

				107,649
Technology Hardware & Equipment 2.7%

Arrow Electronics, Inc. *		550		18,507
Avnet, Inc. *		400		13,092
International Business Machines Corp.		800		92,112
Sun Microsystems, Inc. *		1,205		18,714
Vishay Intertechnology, Inc. *		700		6,342
Western Digital Corp. *		600		16,224

				164,991
Telecommunication Services 7.2%

AT&T, Inc.		5,840		223,672
CenturyTel, Inc.		390		12,964
Embarq Corp.		700		28,070
Verizon Communications, Inc.		5,100		185,895

				450,601
Transportation 0.9%

CSX Corp.		100		5,607
Norfolk Southern Corp.		100		5,432
Northwest Airlines Corp. *		310		2,787
Ryder System, Inc.		300		18,273
Union Pacific Corp.		190		23,822
US Airways Group, Inc. *		300		2,673

				58,594
Utilities 4.6%

Alliant Energy Corp.		500		17,505
American Electric Power Co., Inc.		1,400		58,282
DTE Energy Co.		590		22,945
Edison International		1,100		53,922
MDU Resources Group, Inc.		660		16,203
Mirant Corp. *		160		5,822
NRG Energy, Inc. *		300		11,697
Pepco Holdings, Inc.		800		19,776
PG&E Corp.		1,300		47,866
Xcel Energy, Inc.		1,700		33,915

				287,933

Total Common Stock (Cost $5,899,094)				6,246,814

See financial notes.

26 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Value Fund


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.9% of net assets
Repurchase Agreement 0.9%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $58,003 (fully collateralized by Federal National Mortgage Association with a value of $60,625)		58,000		58,000

Total Short-Term Investment (Cost $58,000)				58,000


End of Investments.

At 03/31/08 the tax basis cost of the fund’s investments was $5,980,549 and the unrealized appreciation and depreciation were $831,697 and ($507,432), respectively, with a net unrealized appreciation of $324,265.


*	Non-income producing security.

See financial notes.

Laudus U.S. Equity Funds 27

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings as of March 31, 2008


				Cost		Value
Holdings by Category				($)		($)

	99.7	%	Common Stock		698,254,356		733,707,665
	—	%	Foreign Common Stock		82,705		80,621
	1.5	%	Short-Term Investment		10,796,000		10,796,000

	101.2	%	Total Investments		709,133,061		744,584,286
	34.0	%	Collateral Invested for Securities on Loan		250,095,950		250,095,950
	(35.2	)%	Other Assets and Liabilities				(258,955,541	)

	100.0	%	Net Assets				735,724,695


	Number of		Value
Security	Shares		($)
Common Stock 99.7% of net assets
Automobiles & Components 1.3%

Aftermarket Technology Corp. (a)*		9,396		182,658
American Axle & Manufacturing Holdings, Inc. (a)		2		41
Autoliv, Inc. (a)		81,713		4,101,993
Cooper Tire & Rubber Co. (a)		31,442		470,687
Exide Technologies (a)*		68,197		893,381
Standard Motor Products, Inc.		27,524		168,447
Strattec Security Corp. (a)		371		15,704
Superior Industries International, Inc. (a)		13,860		287,595
TRW Automotive Holdings Corp. *		130,720		3,054,926

				9,175,432
Banks 2.4%

1st Independence Financial Group, Inc.		98		1,751
Alliance Financial Corp. (a)		5,510		137,750
American National Bankshares, Inc.		300		6,429
Annapolis Bancorp, Inc. *		1,902		13,980
Associated Banc-Corp. (a)		39,749		1,058,516
BancFirst Corp. (a)		4,300		196,854
Banco Latinoamericano de Exportaciones, S.A., Class E (a)		73,670		1,134,518
Bank of Hawaii Corp. (a)		14,900		738,444
Bar Harbor Bankshares		657		20,268
Berkshire Hills Bancorp, Inc. (a)		3,556		89,576
Beverly Hills Bancorp, Inc.		44,368		112,251
BOK Financial Corp. (a)		7,699		402,119
Bridge Capital Holdings *		909		19,271
Britton & Koontz Capital Corp.		946		15,079
Camco Financial Corp.		930		10,235
Capital Bank Corp.		4,693		48,103
Carolina Bank Holdings, Inc. *		1,750		18,856
Carver Bancorp, Inc.		4,970		58,050
Cascade Financial Corp.		7,760		94,672
Central Bancorp, Inc. (a)		1,000		18,435
Centrue Financial Corp.		4,300		83,850
CFS Bancorp, Inc. (a)		15,042		216,154
Citizens Holdings Co. (a)		311		6,220
Citizens South Banking Corp.		650		6,175
Codorus Valley Bancorp, Inc.		220		3,573
Commerce Bancshares, Inc. (a)		22,300		937,269
Community Bank Shares of Indiana, Inc.		4,527		88,842
Community Bankshares, Inc.		400		4,796
Community Capital Corp.		4,020		63,074
Community Financial Corp.		1,920		15,360
Cullen/Frost Bankers, Inc. (a)		14,440		765,898
Farmers Capital Bank Corp.		520		12,340
Fidelity Southern Corp. (a)		24,400		205,204
First Bancorp of Indiana, Inc.		1,455		17,315
First Bancshares, Inc. *		1,310		21,654
First BancTrust Corp.		6,300		57,519
First Capital, Inc.		990		16,434
First Community Corp.		1,710		25,308
First Defiance Financial Corp.		6,790		124,596
First Federal Bancshares of Arkansas, Inc. (a)		7,300		100,594
First Federal Bankshares, Inc.		2,400		33,120
First Financial Service Corp.		440		10,494
First Franklin Corp. (a)		3,600		28,800
First M&F Corp.		6,200		89,900
First Merchants Corp. (a)		6,926		197,668
First Niagara Financial Group, Inc. (a)		32,709		444,515
First PacTrust Bancorp, Inc.		100		1,659
First Place Financial Corp. (a)		27,571		358,423
First United Corp.		9,295		184,227
First West Virginia Bancorp, Inc.		3,300		51,975
FirstMerit Corp. (a)		27,632		570,877
FNB Corp. of North Carolina		7,098		74,529
Franklin Bank Corp. (a)*		6		18
Gateway Financial Holdings, Inc.		16,792		177,995
Glen Burnie Bancorp (a)		240		2,874
Great Pee Dee Bancorp, Inc.		397		9,135
GS Financial Corp.		1,850		30,756
Guaranty Federal Bancshares, Inc. (a)		3,352		87,655
Habersham Bancorp		7,400		103,008
Hawthorn Bancshares, Inc.		8,042		221,155
Heritage Financial Corp.		2,641		45,953
HF Financial Corp.		6,987		111,792
HMN Financial, Inc.		10,097		233,039
Home Federal Bancorp		1,618		35,596
Horizon Bancorp		3,681		84,258
Imperial Capital Bancorp, Inc.		1		22
International Bancshares Corp. (a)		10,428		235,464
Liberty Bancorp, Inc.		2,240		22,613
LSB Financial Corp.		4,725		86,467
MASSBANK Corp.		9,855		381,684
MFB Corp.		2,000		66,570
Monarch Community Bancorp, Inc.		4,130		41,713
Monroe Bancorp (a)		113		1,695
MutualFirst Financial, Inc. (a)		164		2,160
New Hampshire Thrift Bancshares, Inc.		3,660		45,018
New York Community Bancorp, Inc. (a)		29,570		538,765
NewBridge Bancorp (a)		6,302		55,206
Northeast Bancorp		890		13,128
Northrim BanCorp, Inc.		1,906		34,651
Norwood Financial Corp.		160		4,779
Park Bancorp, Inc.		1,095		22,727

See financial notes.

28 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Discovery Fund


	Number of		Value
Security	Shares		($)
Parkvale Financial Corp.		9,812		263,354
People’s United Financial, Inc. (a)		37,400		647,394
Peoples Bancorp of North Carolina		15,363		207,400
Peoples Bancorp, Inc. (a)		9,373		225,983
Peoples Community Bancorp, Inc.		835		3,332
Premier Financial Bancorp, Inc.		200		2,310
Provident Financial Holdings, Inc. (a)		9,690		155,428
Republic First Bancorp, Inc. *		20,435		100,745
Security National Financial Corp., Class A (a)*		2,997		11,538
Simmons First National Corp., Class A (a)		9,048		268,997
Southern Connecticut Bancorp, Inc. (a)*		100		700
Southern Missouri Bancorp, Inc.		100		1,475
Southwest Bancorp, Inc. (a)		39,571		692,888
StellarOne Corp. (a)		8,869		149,975
Sun Bancorp, Inc. (a)*		3,970		52,285
SVB Financial Group (a)*		1,580		68,951
TCF Financial Corp. (a)		17,086		306,181
Team Financial, Inc.		2,330		30,290
Teche Holding Co.		900		29,700
TF Financial Corp.		6,010		145,742
UMB Financial Corp. (a)		8,010		330,012
United Bancshares, Inc.		1,140		15,960
United Community Financial Corp. (a)		39,175		242,885
United Western Bancorp, Inc.		8,845		158,325
Wainwright Bank & Trust Co.		5,269		64,967
Washington Federal, Inc. (a)		26,980		616,223
Wayne Savings Bancshares, Inc.		941		9,104
Willow Financial Bancorp, Inc.		324		2,394
WSFS Financial Corp. (a)		15,751		776,209
WVS Financial Corp.		1,900		30,400
Yadkin Valley Financial Corp.		195		2,467

				17,323,029
Capital Goods 10.9%

3D Systems Corp. *		420		6,170
Acuity Brands, Inc. (a)		56,600		2,430,970
Aecom Technology Corp. (a)*		75,361		1,960,140
Alamo Group, Inc. (a)		4,180		88,909
Alliant Techsystems, Inc. (a)*		9,800		1,014,594
Ameron International Corp. (a)		4,430		414,338
Applied Industrial Technologies, Inc. (a)		71,827		2,146,909
Astec Industries, Inc. *		21,161		820,200
Baldwin Technology Co., Inc., Class A *		36,953		94,969
Barnes Group, Inc. (a)		18,394		422,142
Chase Corp. (a)		2,280		41,291
Chicago Rivet & Machine Co.		1,490		33,376
CIRCOR International, Inc. (a)		11,510		532,338
Columbus Mckinnon Corp. (a)*		1,957		60,628
Crane Co. (a)		117,718		4,749,921
Cubic Corp. (a)		6,824		194,006
Ducommun, Inc. *		21,672		599,664
Eastern Co.		13,940		218,161
Edac Technologies Corp. *		9,834		62,938
EnPro Industries, Inc. (a)*		8,551		266,706
Espey Manufacturing & Electronics Corp.		4,240		84,800
Esterline Technologies Corp. (a)*		7,530		379,286
First Solar, Inc. (a)*		3,446		796,508
Flowserve Corp. (a)		6,780		707,696
Furmanite Corp. (a)*		17,910		152,235
Gardner Denver, Inc. (a)*		40,940		1,518,874
Hardinge, Inc. (a)		30,691		422,308
Harsco Corp. (a)		25,902		1,434,453
Herley Industries, Inc. (a)*		36,650		378,961
Hurco Cos., Inc. (a)*		15,062		704,600
II-VI, Inc. (a)*		13,561		515,047
Industrial Distribution Group, Inc. *		4,032		40,481
Insteel Industries, Inc.		2,748		31,959
K-Tron International, Inc. *		6,005		721,261
Kadant, Inc. (a)*		50,900		1,495,442
Kaman Corp. (a)		35,184		995,355
Kennametal, Inc.		102,102		3,004,862
Key Technology, Inc. (a)*		5,056		150,618
Lawson Products, Inc. (a)		6,926		190,811
Lennox International, Inc. (a)		2,520		90,644
Lincoln Electric Holdings, Inc. (a)		16,908		1,090,397
Lydall, Inc. (a)*		41,980		480,671
Meadow Valley Corp. *		10,889		89,290
Michael Baker Corp. (a)*		17,100		384,066
Mueller Industries, Inc.		720		20,772
NACCO Industries, Inc., Class A (a)		15,810		1,279,661
Nortech Systems, Inc. *		3,328		20,218
Northwest Pipe Co. (a)*		21,052		894,499
Orbital Sciences Corp. (a)*		135,662		3,269,454
Patrick Industries, Inc. *		3,540		25,435
Perini Corp. (a)*		36,650		1,327,829
Powell Industries, Inc. (a)*		8,942		352,047
PowerSecure International, Inc. (a)*		180		2,119
Preformed Line Products Co. (a)		5,820		283,318
Regal-Beloit Corp. (a)		76,330		2,795,968
Robbins & Myers, Inc. (a)		78,960		2,578,044
Rush Enterprises, Inc., Class A (a)*		61,804		978,975
Rush Enterprises, Inc., Class B *		48,745		715,577
Servotronics, Inc.		980		19,796
SL Industries, Inc. *		12,970		258,103
SPX Corp. (a)		126,707		13,291,564
Standex International Corp. (a)		26,975		602,622
Stanley, Inc. (a)*		14,490		426,875
Taylor Devices, Inc. (a)*		4,848		24,192
Tech/ Ops Sevcon, Inc.		6,860		48,020
Teledyne Technologies, Inc. (a)*		47,791		2,246,177
Teleflex, Inc. (a)		128,880		6,148,865
Tennant Co. (a)		16,390		652,486
The L.S. Starrett Co., Class A		16,050		308,802
The Manitowoc Co., Inc. (a)		30,765		1,255,212
The Middleby Corp. (a)*		22,538		1,406,146
The Shaw Group, Inc. (a)*		7,444		350,910
The Timken Co. (a)		58,639		1,742,751
The Toro Co.		130		5,381
Tredegar Corp. (a)		6,674		121,534
Triumph Group, Inc. (a)		47,712		2,716,244
Twin Disc, Inc. (a)		6,720		106,310

See financial notes.

Laudus U.S. Equity Funds 29

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Veri-Tek International Corp. *		2,610		12,137
Watts Water Technologies, Inc., Class A		2,170		60,825	��
Willis Lease Finance Corp. (a)*		21,670		272,392
Woodward Governor Co. (a)		53,220		1,422,038

				80,062,293
Commercial Services & Supplies 2.3%

A.T. Cross Co., Class A (a)*		33,849		231,866
Avalon Holdings Corp., Class A *		6,220		37,320
CDI Corp. (a)		38,539		965,402
Champion Industries, Inc. (a)		11,919		62,217
Clean Harbors, Inc. (a)*		1,126		73,190
Comfort Systems USA, Inc. (a)		118,521		1,541,958
CompX International, Inc. (a)		3,724		34,261
Deluxe Corp. (a)		45,631		876,571
Ecology & Environment, Inc., Class A		4,252		50,811
Exponent, Inc. (a)*		49,520		1,626,237
GeoEye, Inc. (a)*		50,266		1,306,413
GP Strategies Corp. (a)*		38,690		367,555
IKON Office Solutions, Inc. (a)		21,562		163,871
Interface, Inc., Class A (a)		108,634		1,526,308
Kelly Services, Inc., Class A (a)		69,460		1,428,098
Layne Christensen Co. (a)*		27,725		970,929
LECG Corp. (a)*		65,001		608,409
Nashua Corp. (a)*		7,734		84,997
National Technical Systems, Inc. *		15,323		91,172
North American Galvanizing & Coatings, Inc. *		16,156		88,858
RCM Technologies, Inc. *		28,827		111,272
Spherion Corp. (a)*		157,600		964,512
Steelcase, Inc., Class A (a)		235,887		2,608,910
Tufco Technologies, Inc. *		2,242		13,878
Virco Manufacturing Corp. (a)		15,455		80,830
VSE Corp.		10,801		304,912
Waste Industries USA, Inc. (a)		20,997		759,042
Westaff, Inc. (a)*		38,492		83,143

				17,062,942
Consumer Durables & Apparel 3.1%

Aldila, Inc.		12,396		141,314
American Biltrite, Inc. *		1,265		9,045
American Greetings Corp., Class A (a)		129,392		2,400,222
Avatar Holdings, Inc. (a)*		6,419		279,804
Blyth, Inc. (a)		69,830		1,377,048
Callaway Golf Co. (a)		112,500		1,651,500
CSS Industries, Inc. (a)		18,090		632,426
Culp, Inc. *		25,460		191,459
Deckers Outdoor Corp. (a)*		23,878		2,574,526
Decorator Industries, Inc.		3,640		13,359
Ethan Allen Interiors, Inc. (a)		37,861		1,076,388
Flexsteel Industries, Inc.		17,600		237,248
Fossil, Inc. (a)*		85,764		2,619,233
G-III Apparel Group Ltd. (a)*		3,009		40,381
GameTech International, Inc. (a)*		26,056		153,991
Hooker Furniture Corp. (a)		160		3,574
Jaclyn, Inc. *		520		4,462
JAKKS Pacific, Inc. (a)*		85,500		2,357,235
LaCrosse Footwear, Inc. (a)		2,350		37,295
Liz Claiborne, Inc.		17,660		320,529
Man Sang Holdings, Inc. (a)*		9,800		65,366
Movado Group, Inc. (a)		51,933		1,012,174
National Presto Industries, Inc. (a)		13,510		707,924
P & F Industries, Inc., Class A (a)*		5,120		32,768
Q.E.P. Co., Inc. *		8,900		67,195
Russ Berrie & Co., Inc. (a)*		3,740		52,584
The Warnaco Group, Inc. (a)*		77,196		3,044,610
Universal Electronics, Inc. (a)*		12,051		291,755
Weyco Group, Inc. (a)		12,684		376,334
Wolverine World Wide, Inc. (a)		44,540		1,292,105

				23,063,854
Consumer Services 3.3%

Ark Restaurants Corp.		250		7,250
Bally Technologies, Inc. (a)*		109,061		3,745,155
Bob Evans Farms, Inc. (a)		56,051		1,546,447
Burger King Holdings, Inc. (a)		111,350		3,079,941
Canterbury Park Holding Corp.		40		378
CBRL Group, Inc. (a)		8,856		316,779
Churchill Downs, Inc. (a)		3,929		185,606
Darden Restaurants, Inc. (a)		67,755		2,205,425
DeVry, Inc. (a)		50,432		2,110,075
Dover Motorsports, Inc. (a)		31,230		192,064
Flanigan’s Enterprises, Inc. *		1,831		14,785
Frisch’s Restaurants, Inc.		4,660		107,180
ILX Resorts, Inc.		8,290		42,279
INVESTools, Inc. (a)*		87,610		962,834
J. Alexander’s Corp. (a)		11,170		92,488
Lodgian, Inc. (a)*		2,036		22,701
Nathan’s Famous, Inc. (a)*		4,614		64,596
Nobel Learning Communities, Inc. *		15,620		208,996
Red Lion Hotels Corp. *		47,660		407,970
Rubio’s Restaurants, Inc. (a)*		8,220		47,018
Service Corp. International (a)		412,390		4,181,634
Silverleaf Resorts, Inc. (a)*		94,977		215,598
Speedway Motorsports, Inc. (a)		35,510		890,236
Star Buffet, Inc.		2,037		14,605
Stewart Enterprises, Inc., Class A (a)		88,115		565,698
The Marcus Corp. (a)		1,589		30,509
Vail Resorts, Inc. (a)*		9		435
WMS Industries, Inc. (a)*		93,408		3,359,886

				24,618,568
Diversified Financials 1.4%

American Physicians Service Group, Inc.		16,095		315,140
California First National Bancorp		8,190		83,374
Federated Investors, Inc., Class B (a)		29,649		1,161,055
GAMCO Investors, Inc., Class A (a)		6,760		340,434
Greenhill & Co., Inc. (a)		27,700		1,926,812
Knight Capital Group, Inc., Class A (a)*		316,775		5,144,426
MicroFinancial, Inc.		33,200		173,636
Paulson Capital Corp. *		900		4,635
PICO Holdings, Inc. (a)*		4,109		124,215
Stifel Financial Corp. (a)*		24,985		1,121,826

				10,395,553

See financial notes.

30 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Discovery Fund


	Number of		Value
Security	Shares		($)
Energy 15.5%

Adams Resources & Energy, Inc.		4,753		132,133
Alpha Natural Resources, Inc. (a)*		12,079		524,712
Atlas America, Inc. (a)		8,774		530,301
ATP Oil & Gas Corp. *		59,340		1,941,605
Atwood Oceanics, Inc. *		84,700		7,768,684
Berry Petroleum Co., Class A (a)		9,612		446,862
Bill Barrett Corp. (a)*		14,032		663,012
Bois d’Arc Energy, Inc. (a)*		28,090		603,654
Cimarex Energy Co. (a)		126,522		6,925,814
Complete Production Services, Inc. (a)*		19,887		456,208
Comstock Resources, Inc. (a)*		38,961		1,570,128
Contango Oil & Gas Co. (a)*		340		21,967
Crosstex Energy, Inc. (a)		39,892		1,354,333
Dawson Geophysical Co. (a)*		300		20,250
Encore Acquisition Co. *		13,681		551,071
EXCO Resources, Inc. (a)*		89,950		1,664,075
FMC Technologies, Inc. (a)*		20		1,138
Forest Oil Corp. (a)*		15,294		748,794
Foundation Coal Holdings, Inc. (a)		96,251		4,844,313
Global Industries Ltd. (a)*		17,748		285,565
Gulf Island Fabrication, Inc.		1,450		41,644
GulfMark Offshore, Inc. (a)*		57,354		3,138,411
Harvest Natural Resources, Inc. (a)*		6,014		72,529
Helix Energy Solutions Group, Inc. (a)*		4,610		145,215
Helmerich & Payne, Inc. (a)		202,738		9,502,330
Hornbeck Offshore Services, Inc. (a)*		61,305		2,799,799
International Coal Group, Inc. (a)*		1,810		11,494
ION Geophysical Corp. (a)*		174,571		2,409,080
Lufkin Industries, Inc. (a)		29,340		1,872,479
Mariner Energy, Inc. (a)*		232,340		6,275,503
Massey Energy Co. (a)		12,830		468,295
McMoRan Exploration Co. (a)*		3,500		60,515
Oil States International, Inc. (a)*		93,915		4,208,331
Penn Virginia Corp.		102,408		4,515,169
Petrohawk Energy Corp. (a)*		13,410		270,480
PetroQuest Energy, Inc. (a)*		9,697		168,146
Plains Exploration & Production Co. (a)*		33,074		1,757,552
Pride International, Inc. (a)*		89,216		3,118,099
Rosetta Resources, Inc. (a)*		134,772		2,650,965
Rowan Cos., Inc. (a)		220,279		9,071,089
SEACOR Holdings, Inc. (a)*		62,428		5,328,854
St. Mary Land & Exploration Co. (a)		19,962		768,537
Stone Energy Corp. (a)*		300		15,693
Superior Energy Services, Inc. (a)*		141,250		5,596,325
Swift Energy Co. (a)*		74,175		3,337,133
T-3 Energy Services, Inc. (a)*		16,089		684,748
Tidewater, Inc. (a)		181,780		10,017,896
Trico Marine Services, Inc. (a)*		31,144		1,213,682
Union Drilling, Inc. (a)*		33,732		589,973
Unit Corp. (a)*		20,943		1,186,421
W&T Offshore, Inc. (a)		1,300		44,343
W-H Energy Services, Inc. (a)*		570		39,245
Warren Resources, Inc. *		2,860		33,948
Whiting Petroleum Corp. (a)*		23,437		1,515,202
Willbros Group, Inc. (a)*		4,180		127,908

				114,111,652
Food & Staples Retailing 1.3%

Arden Group, Inc., Class A (a)		220		31,460
Casey’s General Stores, Inc. (a)		19,127		432,270
Ingles Markets, Inc., Class A (a)		27,765		682,741
Longs Drug Stores Corp. (a)		105,930		4,497,788
Nash Finch Co. (a)		34,633		1,176,829
Ruddick Corp. (a)		1,380		50,867
Spartan Stores, Inc. (a)		3,087		64,364
Susser Holdings Corp. *		12,170		228,431
The Great Atlantic & Pacific Tea Co., Inc. (a)*		57,602		1,510,324
Village Super Market, Inc., Class A (a)		4,268		219,802
Weis Markets, Inc. (a)		28,680		988,600

				9,883,476
Food, Beverage & Tobacco 2.0%

Cal-Maine Foods, Inc. (a)		36,900		1,231,722
Chiquita Brands International, Inc. *		8,850		204,523
Corn Products International, Inc. (a)		102,783		3,817,361
Darling International, Inc. (a)*		35,327		457,485
Diamond Foods, Inc. (a)		37,260		675,896
Flowers Foods, Inc. (a)		184,492		4,566,177
Fresh Del Monte Produce, Inc. (a)*		42,760		1,556,464
Griffin Land & Nurseries, Inc. (a)		3,320		114,507
J & J Snack Foods Corp. (a)		6,059		166,441
Omega Protein Corp. *		17,730		242,014
Seaboard Corp. (a)		1,171		1,832,615
Seneca Foods Corp., Class B *		1,000		20,850
Tasty Baking Co.		22,514		128,330
Zapata Corp. *		2,990		20,810

				15,035,195
Health Care Equipment & Services 2.9%

Allied Healthcare Products, Inc. *		19,700		121,746
Amedisys, Inc. (a)*		2,231		87,768
American Shared Hospital Services		5,642		13,541
Angeion Corp. (a)*		10,614		76,951
AngioDynamics, Inc. (a)*		13,195		152,534
Atrion Corp.		1,596		159,504
BioScrip, Inc. (a)*		9,865		66,687
Cardiac Science Corp. *		59,815		499,455
CONMED Corp. (a)*		28,955		742,406
Cynosure, Inc., Class A (a)*		19,880		423,444
Datascope Corp. (a)		33,805		1,400,541
Gentiva Health Services, Inc. (a)*		75,234		1,637,092
Greatbatch, Inc. (a)*		1,960		36,084
Hanger Orthopedic Group, Inc. *		54,190		584,168
HMS Holdings Corp. (a)*		13,760		392,848
IntegraMed America, Inc. (a)*		17,125		167,654
Invacare Corp. (a)		15,786		351,712
Kewaunee Scientific Corp.		4,537		68,055
Kindred Healthcare, Inc. *		74,536		1,630,102
MedCath Corp. (a)*		28,981		527,454

See financial notes.

Laudus U.S. Equity Funds 31

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
MTS Medication Technologies (a)*		13,395		163,419
National Dentex Corp. *		2,940		37,897
National Healthcare Corp. (a)		19,244		937,183
Natus Medical, Inc. (a)*		18,081		328,170
Neogen Corp. (a)*		292		7,329
Orthofix International N.V. (a)*		46,100		1,833,397
Osteotech, Inc. (a)*		13,670		64,932
Pediatrix Medical Group, Inc. (a)*		9,400		633,560
Radnet, Inc. (a)*		48,365		340,490
RehabCare Group, Inc. (a)*		51,698		775,470
Res-Care, Inc. *		67,585		1,159,083
Skilled Healthcare Group, Inc., Class A (a)*		55,227		606,392
Span-America Medical Systems, Inc. (a)		7,600		89,680
SRI/ Surgical Express, Inc. *		8,659		37,234
STERIS Corp. (a)		130,985		3,514,328
Theragenics Corp. (a)*		75,290		296,643
Young Innovations, Inc.		1,780		30,830
Zoll Medical Corp. (a)*		60,998		1,621,937

				21,617,720
Household & Personal Products 0.7%

Chattem, Inc. (a)*		2,248		149,132
Elizabeth Arden, Inc. (a)*		14,042		280,138
Energizer Holdings, Inc. (a)*		31,783		2,875,726
Inter Parfums, Inc. (a)		13,802		304,748
Natural Alternative International, Inc. (a)*		16,941		152,469
Nutraceutical International Corp. *		10,470		136,110
Oil-Dri Corp. of America		18,400		329,176
Physicians Formula Holdings, Inc. (a)*		505		4,505
Schiff Nutrition International, Inc.		16,960		101,590
The Estee Lauder Cos., Inc., Class A (a)		21,070		966,060

				5,299,654
Insurance 7.9%

21st Century Holding Co.		520		6,661
Affirmative Insurance Holdings, Inc. (a)		5,370		42,853
Alleghany Corp. (a)*		10,478		3,578,264
Allied World Assurance Co. Holdings Ltd. (a)		94,397		3,747,561
American Financial Group, Inc. (a)		256,669		6,560,460
American National Insurance Co. (a)		15,033		1,604,021
American Safety Insurance Holdings Ltd. *		19,180		327,978
Arch Capital Group Ltd. (a)*		2,708		185,958
Aspen Insurance Holdings Ltd.		214,319		5,653,735
Baldwin & Lyons, Inc., Class B (a)		4,275		109,782
Delphi Financial Group, Inc., Class A (a)		14,509		424,098
Endurance Specialty Holdings Ltd. (a)		168,400		6,163,440
Flagstone Reinsurance Holdings Ltd. (a)		23,823		288,258
Hanover Insurance Group, Inc. (a)		58,028		2,387,272
Harleysville Group, Inc. (a)		3,780		136,420
HCC Insurance Holdings, Inc. (a)		32,380		734,702
Hilltop Holdings, Inc. (a)*		13,020		135,408
Horace Mann Educators Corp. (a)		95,300		1,665,844
IPC Holdings Ltd. (a)		114,058		3,193,624
Kansas City Life Insurance Co.		9,691		465,750
Max Capital Group Ltd. (a)		6,311		165,285
National Western Life Insurance Co., Class A (a)		3,418		740,988
NYMAGIC, Inc. (a)		6,510		147,842
Odyssey Re Holdings Corp. (a)		2,260		83,055
PartnerRe Ltd. (a)		114,670		8,749,321
Platinum Underwriters Holdings Ltd. (a)		119,419		3,876,341
Presidential Life Corp. (a)		33,821		589,838
RenaissanceRe Holdings Ltd. (a)		101,076		5,246,855
The National Security Group, Inc.		510		8,548
Unico American Corp. *		11,830		111,202
United America Indemnity Ltd., Class A (a)*		26,483		510,063
Universal Insurance Holdings, Inc. (a)		65,987		249,431
Wesco Financial Corp. (a)		338		136,552

				58,027,410
Materials 11.2%

A.M. Castle & Co. (a)		13,700		369,900
AK Steel Holding Corp. (a)		69,820		3,799,604
American Pacific Corp. (a)*		10,759		171,821
Arch Chemicals, Inc. (a)		13,036		485,721
Celanese Corp., Series A		139,291		5,439,314
Century Aluminum Co. (a)*		8,889		588,807
CF Industries Holdings, Inc. (a)		140,746		14,584,101
Chemtura Corp. (a)		10,684		78,421
Coeur d’Alene Mines Corp. (a)*		78,216		315,993
Commercial Metals Co.		520		15,584
Compass Minerals International, Inc. (a)		8,180		482,456
Constar International, Inc. (a)*		25,990		68,094
Continental Materials Corp. (a)*		300		7,065
Cytec Industries, Inc.		18,436		992,779
FMC Corp. (a)		254,304		14,111,329
Friedman Industries, Inc.		15,410		79,361
Glatfelter (a)		29,105		439,777
Great Northern Iron Ore Properties		846		112,349
Greif, Inc., Class A (a)		37,807		2,568,229
Hecla Mining Co. *		7,680		85,709
Hercules, Inc.		18,263		334,030
Innophos Holdings, Inc. (a)		15,040		241,994
Innospec, Inc. (a)		16,319		345,963
International Flavors & Fragrances, Inc.		2,070		91,183
Kaiser Aluminum Corp. (a)		14,236		986,555
LSB Industries, Inc. (a)*		28,860		425,396
Material Sciences Corp. (a)*		9,583		74,364
Nalco Holding Co. (a)		11,049		233,686
NN, Inc. (a)		11,261		109,570
Olin Corp. (a)		14,163		279,861
Olympic Steel, Inc. (a)		20,819		938,937
Owens-Illinois, Inc. (a)*		24,054		1,357,367
Packaging Corp. of America (a)		184,671		4,123,703
Penford Corp.		19,895		432,318
PolyOne Corp. *		1,086		6,918

See financial notes.

32 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Discovery Fund


	Number of		Value
Security	Shares		($)
Reliance Steel & Aluminum Co. (a)		106,940		6,401,428
Rock of Ages Corp. *		17,157		67,942
Rockwood Holdings, Inc. (a)*		22,678		743,158
RPM International, Inc. (a)		10,634		222,676
Schnitzer Steel Industries, Inc., Class A (a)		62,201		4,417,515
Schweitzer-Mauduit International, Inc. (a)		33,593		777,342
Steel Dynamics, Inc. (a)		3,914		129,319
Stepan Co. (a)		20,720		792,126
Stillwater Mining Co. (a)*		9,802		151,637
Terra Industries, Inc. (a)*		255,041		9,061,607
The Scotts Miracle-Gro Co., Class A (a)		117,274		3,802,023
UFP Technologies, Inc. *		2,270		17,592
United States Lime & Minerals, Inc. (a)*		5,054		146,819
Worthington Industries, Inc. (a)		61,219		1,032,765

				82,542,208
Media 0.4%

Alloy, Inc. *		35,700		262,395
Mediacom Communications Corp., Class A *		5,501		23,819
Scholastic Corp. (a)*		82,877		2,508,687

				2,794,901
Pharmaceuticals & Biotechnology 5.2%

Accelrys, Inc. (a)*		17,798		96,287
Albany Molecular Research, Inc. (a)*		4,330		52,566
Bio-Rad Laboratories, Inc., Class A (a)*		11,950		1,062,952
Bioanalytical Systems, Inc. *		3,360		19,656
Bruker BioSciences Corp. (a)*		108,817		1,674,694
Emergent Biosolutions, Inc. (a)*		15,500		138,260
Harvard Bioscience, Inc. (a)*		79,450		397,250
Illumina, Inc. (a)*		44,574		3,383,167
Invitrogen Corp. (a)*		102,334		8,746,487
Kendle International, Inc. *		37,621		1,689,935
Millennium Pharmaceuticals, Inc. (a)*		1,150		17,779
Mylan, Inc. (a)		10,440		121,104
NPS Pharmaceuticals, Inc. (a)*		74,482		290,480
Par Pharmaceutical Cos, Inc. (a)*		740		12,869
PAREXEL International Corp. (a)*		162,487		4,240,911
PerkinElmer, Inc. (a)		288,214		6,989,189
Perrigo Co. (a)		126,254		4,763,563
Pharmanet Development Group, Inc. (a)*		21,619		545,447
Replidyne, Inc. (a)*		62,280		87,815
Sciele Pharma, Inc. (a)*		60,007		1,170,136
Varian, Inc. *		35,430		2,052,106
Waters Corp. (a)*		701		39,046
Watson Pharmaceuticals, Inc. (a)*		26,509		777,244

				38,368,943
Real Estate 2.5%

Ashford Hospitality Trust (a)		176,644		1,003,338
Cedar Shopping Centers, Inc. (a)		7,100		82,928
DiamondRock Hospitality Co. (a)		116,971		1,482,023
Douglas Emmett, Inc. (a)		15,013		331,187
Extra Space Storage, Inc. (a)		187,131		3,029,651
Gladstone Commercial Corp. (a)		1,483		23,061
Hersha Hospitality Trust (a)		111,821		1,009,744
Investors Real Estate Trust (a)		3,237		31,658
J.W. Mays, Inc. *		500		9,975
LTC Properties, Inc. (a)		60,403		1,552,961
Medical Properties Trust, Inc. (a)		136,010		1,539,633
MHI Hospitality Corp.		2,190		13,709
Mission West Properties, Inc. (a)		44,097		416,717
Monmouth Real Estate Investment Corp., Class A		58,385		467,080
National Retail Properties, Inc.		49,601		1,093,702
One Liberty Properties, Inc.		26,650		428,798
Ramco-Gershenson Properties Trust (a)		39,167		826,815
Strategic Hotels & Resorts, Inc. (a)		204,986		2,691,466
Sunstone Hotel Investors, Inc. (a)		64,628		1,034,694
Supertel Hospitality, Inc. (a)		51,000		270,300
United Capital Corp. (a)*		8,880		193,140
Urstadt Biddle Properties, Inc., Class A (a)		2,910		45,774
Winthrop Realty Trust		145,531		599,588
ZipRealty, Inc. (a)*		46,654		244,467

				18,422,409
Retailing 1.0%

1-800-FLOWERS.COM, Inc., Class A (a)*		80,900		688,459
AMCON Distributing Co. *		1,300		40,118
Big Lots, Inc. (a)*		40,670		906,941
Books-A-Million, Inc. (a)		37,920		331,421
Build-A-Bear Workshop, Inc. (a)*		6,040		54,904
Educational Development Corp.		764		4,424
Franklin Covey Co. *		52,790		395,925
Gaiam, Inc., Class A (a)*		11,802		204,411
GSI Commerce, Inc. (a)*		19,369		254,702
Hastings Entertainment, Inc. (a)*		26,860		211,120
IAC/ InterActiveCorp *		1,470		30,517
Jennifer Convertibles, Inc. *		1,290		2,954
Jo-Ann Stores, Inc. (a)*		1,590		23,421
Monro Muffler Brake, Inc. (a)		9,139		154,449
Netflix, Inc. (a)*		50		1,732
Priceline.com, Inc. (a)*		16,720		2,020,779
REX Stores Corp. *		25,070		493,127
Sport Supply Group, Inc. (a)		23,790		284,290
Stage Stores, Inc.		8,605		139,401
Systemax, Inc. (a)		28,607		345,000
The Aristotle Corp. *		450		4,698
The Bon-Ton Stores, Inc. (a)		6,730		36,813
The Buckle, Inc. (a)		6,430		287,614
The Finish Line, Inc., Class A		715		3,403
Trans World Entertainment Corp. (a)*		30,055		113,007

				7,033,630
Semiconductors & Semiconductor Equipment 1.8%

Applied Micro Circuits Corp. *		790		5,672
Aviza Technology, Inc. (a)*		11,328		6,132
CEVA, Inc. (a)*		50,470		386,095
Cirrus Logic, Inc. (a)*		106,662		716,769

See financial notes.

Laudus U.S. Equity Funds 33

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
DSP Group, Inc. *		10,420		132,751
Fairchild Semiconductor International, Inc. (a)*		30,546		364,108
FEI Co. (a)*		90,663		1,979,173
Microtune, Inc. (a)*		13,502		49,417
MKS Instruments, Inc. (a)*		4,772		102,121
Monolithic Power Systems (a)*		23,817		419,894
OmniVision Technologies, Inc. (a)*		13,423		225,775
Pericom Semiconductor Corp. (a)*		72,840		1,069,291
Skyworks Solutions, Inc. (a)*		454,433		3,308,272
Standard Microsystems Corp. (a)*		34,173		997,168
Trio-Tech International		5,030		31,941
TriQuint Semiconductor, Inc. (a)*		197,479		999,244
Varian Semiconductor Equipment Associates, Inc. (a)*		26,580		748,227
Veeco Instruments, Inc. *		760		12,639
Zoran Corp. (a)*		136,910		1,870,191

				13,424,880
Software & Services 7.0%

American Software, Inc., Class A (a)		17,050		106,733
AsiaInfo Holdings, Inc. (a)*		56,811		616,967
Astea International, Inc. *		8,570		33,509
Bankrate, Inc. (a)*		1,148		57,274
BMC Software, Inc. (a)*		7		228
Cadence Design Systems, Inc. (a)*		150,462		1,606,934
Chordiant Software, Inc. (a)*		48,048		289,729
CIBER, Inc. (a)*		163,269		800,018
Computer Task Group, Inc. *		27,930		115,072
Convergys Corp. (a)*		37,350		562,491
CSG Systems International, Inc. (a)*		10,429		118,578
CSP, Inc. (a)*		9,451		56,989
Dynamics Research Corp. (a)*		17,804		179,998
EarthLink, Inc. (a)*		8,740		65,987
Edgewater Technology, Inc. (a)*		33,993		179,143
EPIQ Systems, Inc. (a)*		51,618		801,111
Gevity HR, Inc. (a)		36,410		315,311
Hackett Group, Inc. *		45,797		179,066
Hewitt Associates, Inc., Class A (a)*		3,208		127,582
iGATE Corp. (a)*		1,381		9,833
Integral Systems, Inc. (a)		17,607		514,653
Interwoven, Inc. *		113,500		1,212,180
JDA Software Group, Inc. (a)*		75,752		1,382,474
Keynote Systems, Inc. (a)*		29,014		342,075
Lawson Software, Inc. *		378,901		2,853,124
Manhattan Associates, Inc. (a)*		220		5,045
MAXIMUS, Inc.		54,634		2,005,614
Mentor Graphics Corp. (a)*		1,520		13,422
Moldflow Corp. *		22,947		400,196
MPS Group, Inc. (a)*		191,574		2,264,405
Ness Technologies, Inc. (a)*		10,789		102,388
NetScout Systems, Inc. (a)*		72,145		670,948
Novell, Inc. (a)*		234,240		1,473,370
Online Resources Corp *		1,820		17,508
Perot Systems Corp., Class A (a)*		227,578		3,422,773
Phoenix Technologies Ltd. (a)*		18,448		288,896
Progress Software Corp. (a)*		12,022		359,698
QAD, Inc. (a)		39,060		328,495
Quest Software, Inc. (a)*		67,260		879,088
Radiant Systems, Inc. (a)*		58,546		817,888
Retalix Ltd. (a)*		3,772		53,525
S1 Corp. (a)*		100,821		716,837
Sapient Corp. (a)*		60,907		423,913
Servidyne, Inc.		1,490		9,238
Solera Holdings, Inc. (a)*		19,764		481,451
SonicWALL, Inc. (a)*		202,447		1,653,992
SPSS, Inc. (a)*		51,700		2,004,926
SumTotal Systems, Inc. (a)*		17,521		73,062
Sybase, Inc. (a)*		256,161		6,737,034
Synopsys, Inc. (a)*		350,865		7,968,144
TechTeam Global, Inc. *		26,600		240,730
TIBCO Software, Inc. (a)*		163,479		1,167,240
TNS, Inc. (a)*		56,358		1,163,229
TSR, Inc.		4,099		17,216
Unisys Corp. *		11,035		48,885
United Online, Inc. (a)		178,593		1,885,942
Vignette Corp. (a)*		76,256		1,007,342

				51,229,499
Technology Hardware & Equipment 7.9%

ADDvantage Technologies Group, Inc. (a)*		4,170		14,428
Aetrium, Inc. *		7,101		27,907
Allied Motion Technologies, Inc. *		15,522		73,574
Arrow Electronics, Inc. (a)*		255,517		8,598,147
Astro-Med, Inc.		15,610		139,709
Avnet, Inc. (a)*		417,340		13,659,538
AVX Corp. (a)		98,800		1,265,628
Black Box Corp. (a)		47,851		1,476,203
Bonso Electronic International, Inc. *		3,393		7,024
Brocade Communications Systems, Inc. (a)*		226,569		1,653,954
Coherent, Inc. (a)*		50,588		1,410,899
CommScope, Inc. (a)*		3,660		127,478
Communications Systems, Inc.		21,480		231,340
CTS Corp. (a)		100,155		1,071,658
Data I/ O Corp. (a)*		8,734		37,993
Ddi Corp. (a)*		37,086		172,079
Digi International, Inc. (a)*		69,546		802,561
Electro Scientific Industries, Inc. (a)*		82,765		1,363,967
Electronics for Imaging, Inc. (a)*		9,426		140,636
EMS Technologies, Inc. (a)*		28,902		784,400
Emulex Corp. (a)*		210,890		3,424,854
FLIR Systems, Inc. (a)*		39,216		1,180,009
Gerber Scientific, Inc. (a)*		10,166		90,376
Globecomm Systems, Inc. (a)*		4,255		37,018
Harmonic, Inc. *		202,815		1,541,394
Insight Enterprises, Inc. *		100,053		1,750,927
Interphase Corp. (a)*		1,160		5,243
IntriCon Corp. *		11,040		88,210
Itron, Inc. (a)*		1,224		110,442
Keithley Instruments, Inc. (a)		650		6,305
KEMET Corp. (a)*		37,976		153,423
Key Tronic Corp. *		509		1,318
Loral Space & Communications, Inc. (a)*		28,709		684,423
Measurement Specialties, Inc. (a)*		38,491		672,438

See financial notes.

34 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Discovery Fund


	Number of		Value
Security	Shares		($)
Mesa Laboratories, Inc.		2,568		57,523
Methode Electronics, Inc. (a)		23,098		270,016
Mettler-Toledo International, Inc. *		6,864		666,632
MOCON, Inc. (a)		3,253		36,694
NETGEAR, Inc. (a)*		1,387		27,671
Network Equipment Technologies, Inc. (a)*		63,494		417,156
O.I. Corp.		4,685		55,283
Oplink Communications, Inc. (a)*		40,339		357,807
Optical Cable Corp. *		7,491		37,455
OSI Systems, Inc. (a)*		40,800		939,216
PC Connection, Inc. (a)*		200		1,584
Perceptron, Inc. *		18,668		236,524
Rofin-Sinar Technologies, Inc. (a)*		1,440		64,656
Schmitt Industries, Inc. *		1,892		11,257
SeaChange International, Inc. (a)*		1,970		13,849
Sigmatron International, Inc. (a)*		690		4,271
Soapstone Networks, Inc. (a)		28,535		204,311
Spectrum Control, Inc. (a)*		35,600		301,176
Super Micro Computer, Inc. (a)*		24,900		207,915
Sutron Corp. *		80		560
Technitrol, Inc. (a)		152,370		3,524,318
TESSCO Technologies, Inc. (a)*		9,026		135,390
Tollgrade Communications, Inc. *		30,331		158,934
TTM Technologies, Inc. (a)*		3,330		37,696
Vicon Industries, Inc. (a)*		9,260		46,300
Vishay Intertechnology, Inc. *		467,946		4,239,591
Western Digital Corp. (a)*		106,306		2,874,514
Zones, Inc. (a)*		5,640		46,304
Zygo Corp. (a)*		51,155		636,368

				58,416,474
Telecommunication Services 1.5%

Atlantic Tele-Network, Inc. (a)		1,105		37,382
CenturyTel, Inc. (a)		231,768		7,703,968
D&E Communications, Inc.		38,728		344,679
Gilat Satellite Networks Ltd. *		93,765		1,015,475
HickoryTech Corp.		4,874		39,821
Hungarian Telephone & Cable Corp. (a)*		490		8,502
Premiere Global Services, Inc. (a)*		94,195		1,350,756
USA Mobility, Inc. (a)*		41,371		295,389

				10,795,972
Transportation 1.2%

Air T., Inc.		970		9,331
B & H Ocean Carriers Ltd. *		7,460		77,771
Dynamex, Inc. (a)*		27,778		702,784
Genco Shipping & Trading Ltd. (a)		12,290		693,525
International Shipholding Corp. *		2,100		40,278
Park-Ohio Holdings Corp. (a)*		6,420		100,858
Republic Airways Holdings, Inc. (a)*		55,564		1,203,516
Ryder System, Inc.		33,590		2,045,967
SkyWest, Inc. (a)		174,628		3,688,143

				8,562,173
Utilities 5.0%

Alliant Energy Corp. (a)		211,023		7,387,915
Artesian Resources Corp., Class A		10,340		191,600
CenterPoint Energy, Inc. (a)		547,637		7,814,780
CH Energy Group, Inc. (a)		8,582		333,840
Delta Natural Gas Co., Inc.		6,413		158,337
Energy West, Inc.		1,905		16,669
Florida Public Utilities Co.		10,870		121,201
Maine & Maritimes Corp. *		3,843		106,835
MDU Resources Group, Inc. (a)		373,607		9,172,052
Northeast Utilities (a)		138		3,387
NorthWestern Corp.		20,020		487,887
ONEOK, Inc.		310		13,835
Pennichuck Corp. (a)		2,764		63,848
Pepco Holdings, Inc. (a)		136,912		3,384,465
Portland General Electric Co. (a)		10,529		237,429
RGC Resources, Inc.		3,037		84,611
Southern Union Co.		680		15,824
The Laclede Group, Inc. (a)		2,420		86,225
UIL Holdings Corp. (a)		1,880		56,644
Unisource Energy Corp.		48,690		1,083,839
Unitil Corp.		2,890		77,886
Westar Energy, Inc. (a)		216,933		4,939,564
WGL Holdings, Inc. (a)		18,750		601,125

				36,439,798

Total Common Stock (Cost $698,254,356)				733,707,665


Foreign Common Stock 0.0% of net assets
Bermuda 0.0%

Telecommunication Services 0.0%					��
Global Crossing Ltd. (a)*		5,318		80,621

Total Foreign Common Stock (Cost $82,705)				80,621


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 1.5% of net assets
Repurchase Agreement 1.5%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $10,796,600 (fully collateralized by Federal National Mortgage Association with a value of $11,016,784.)		10,796,000		10,796,000

Total Short-Term Investment (Cost $10,796,000)				10,796,000


End of Investments.

See financial notes.

Laudus U.S. Equity Funds 35

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Collateral Invested for Securities on Loan 34.0% of net assets
State Street Navigator Security Lending Prime Portfolio		250,095,950		250,095,950

End of collateral invested for securities on loan.

At 03/31/08, the tax basis cost of the fund’s investments was $709,831,489 and the unrealized appreciation and depreciation were $94,094,685 and ($59,341,888), respectively, with a net unrealized appreciation of $34,752,797.


*	Non-income producing security.


(a)	All or a portion of this security is on loan.

See financial notes.

36 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings as of March 31, 2007


				Cost		Value
Holdings by Category				($)		($)

	98.7	%	Common Stock		552,025,608		604,735,597
	—	%	Foreign Common Stock		245,080		237,042

	98.7	%	Total Investments		552,270,688		604,972,639
	41.0	%	Collateral Invested for Securities on Loan		251,007,699		251,007,699
	(39.7	)%	Other Assets and Liabilities				(243,261,712	)

	100.0	%	Net Assets				612,718,626


	Number of		Value
Security	Shares		($)
Common Stock 98.7% of net assets
Automobiles & Components 1.2%

Aftermarket Technology Corp. (a)*		56,640		1,101,082
Cooper Tire & Rubber Co. (a)		88,176		1,319,995
Exide Technologies (a)*		80,186		1,050,437
Standard Motor Products, Inc.		6,660		40,759
Strattec Security Corp. (a)		200		8,466
Superior Industries International, Inc. (a)		22,754		472,145
TRW Automotive Holdings Corp. (a)*		137,358		3,210,056

				7,202,940
Banks 3.5%

Alliance Financial Corp.		830		20,750
American National Bankshares, Inc.		100		2,143
BancFirst Corp. (a)		27,663		1,266,412
Banco Latinoamericano de Exportaciones, S.A., Class E (a)		136,565		2,103,101
Berkshire Bancorp, Inc.		970		13,968
Beverly Hills Bancorp, Inc. (a)		132,360		334,871
Britton & Koontz Capital Corp.		5,933		94,572
Camco Financial Corp.		530		5,833
Carrollton Bancorp		560		7,560
Carver Bancorp, Inc. (a)		21,720		253,690
Cascade Financial Corp.		270		3,294
Central Bancorp, Inc. (a)		110		2,028
Centrue Financial Corp.		8,242		160,719
CFS Bancorp, Inc. (a)		24,002		344,909
Codorus Valley Bancorp, Inc.		2,165		35,160
Community Bank Shares of Indiana, Inc.		1,190		23,354
Community Bankshares, Inc.		720		8,633
Community Capital Corp.		3,966		62,227
Community Financial Corp.		4,180		33,440
Community Shores Bank Corp. *		180		936
Crescent Banking Co.		324		3,564
Elmira Savings Bank, FSB (a)		5,026		93,534
Farmers Capital Bank Corp.		1,755		41,646
Fidelity Bancorp, Inc.		60		849
Fidelity Southern Corp.		6,159		51,797
First Bancorp of Indiana, Inc. (a)		4,691		55,823
First Bancshares, Inc. *		11,651		192,591
First BancTrust Corp.		12,250		111,842
First Capital, Inc.		100		1,660
First Citizens BancShares, Inc., Class A (a)		8,044		1,120,931
First Community Corp.		630		9,324
First Defiance Financial Corp.		24,036		441,061
First Federal Bancshares of Arkansas, Inc. (a)		14,014		193,113
First Federal Bankshares, Inc. (a)		8,373		115,547
First Financial Service Corp.		119		2,838
First M&F Corp.		5,900		85,550
First Niagara Financial Group, Inc. (a)		49,400		671,346
First West Virginia Bancorp, Inc.		320		5,040
FirstMerit Corp. (a)		47,136		973,830
FNB Corp. of North Carolina		11,864		124,572
Franklin Bank Corp. (a)*		5,561		16,850
Gateway Financial Holdings, Inc. (a)		10,996		116,558
Glen Burnie Bancorp		420		5,030
Great Pee Dee Bancorp, Inc.		1,500		34,515
GS Financial Corp.		8,330		138,486
Guaranty Federal Bancshares, Inc. (a)		7,644		199,891
Habersham Bancorp (a)		24,098		335,444
Harrington West Financial Group, Inc. (a)		660		5,392
Hawthorn Bancshares, Inc.		3,930		108,075
Heritage Financial Corp.		1,730		30,102
HF Financial Corp. (a)		24,416		390,656
Hingham Institution for Savings (a)		8,940		256,801
HMN Financial, Inc.		19,380		447,290
Horizon Bancorp		5,893		134,891
International Bancshares Corp. (a)		27,130		612,595
Lincoln Bancorp (a)		2,400		29,232
LSB Financial Corp.		3,926		71,846
MASSBANK Corp.		11,662		451,669
MFB Corp. (a)		3,280		109,175
Monarch Community Bancorp, Inc.		5,808		58,661
NB&T Financial Group, Inc.		100		1,907
New Hampshire Thrift Bancshares, Inc. (a)		10,020		123,246
North Central Bancshares, Inc. (a)		300		8,867
Northeast Bancorp (a)		100		1,475
Pacific Premier Bancorp, Inc. (a)*		2,540		17,780
Park Bancorp, Inc.		12,118		251,509
Parkvale Financial Corp.		28,120		754,741
Peoples Bancorp		414		6,469
Peoples Bancorp of North Carolina		2,708		36,558
Peoples Community Bancorp, Inc.		2,004		7,996
Premier Financial Bancorp, Inc. (a)		2,220		25,641
Prosperity Bancshares, Inc. (a)		5,547		158,977
Provident Community Bancshares, Inc. (a)		372		6,603
Provident Financial Holdings, Inc. (a)		32,769		525,615
QCR Holdings, Inc. (a)		761		11,339
Republic First Bancorp, Inc. *		34,116		168,192
River Valley Bancorp		199		2,744
Rurban Financial Corp.		7,696		78,730
Security National Financial Corp., Class A *		39,754		153,053
Simmons First National Corp., Class A (a)		2,510		74,622
Southern First Bancshares, Inc. *		3,860		57,784
Southern Missouri Bancorp, Inc.		12,058		177,855

See financial notes.

Laudus U.S. Equity Funds 37

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Southwest Bancorp, Inc. (a)		76,787		1,344,540
StellarOne Corp. (a)		1,077		18,212
Sun Bancorp, Inc. (a)*		8,796		115,843
SVB Financial Group (a)*		20,500		894,620
Team Financial, Inc.		15,648		203,424
Teche Holding Co. (a)		3,760		124,080
TF Financial Corp. (a)		10,476		254,043
UMB Financial Corp. (a)		14,900		613,880
United Bancshares, Inc.		10,998		153,972
United Community Financial Corp. (a)		34,360		213,032
United Western Bancorp, Inc. (a)		2,100		37,590
VIST Financial Corp.		1,489		26,742
Wainwright Bank & Trust Co. (a)		52,749		650,395
Willow Financial Bancorp, Inc.		1,262		9,326
WSB Holdings, Inc.		12,350		67,678
WSFS Financial Corp. (a)		25,661		1,264,574
WVS Financial Corp.		151		2,416

				21,273,287
Capital Goods 13.3%

Aecom Technology Corp. (a)*		59,985		1,560,210
Alamo Group, Inc. (a)		320		6,806
Ameron International Corp. (a)		29,105		2,722,191
Applied Industrial Technologies, Inc. (a)		15,935		476,297
Badger Meter, Inc. (a)		5,436		234,835
Barnes Group, Inc. (a)		120,439		2,764,075
Chase Corp. (a)		16,720		302,799
Chicago Rivet & Machine Co.		4,920		110,208
Columbus Mckinnon Corp. (a)*		300		9,294
Cubic Corp. (a)		21,135		600,868
Curtiss-Wright Corp. (a)		1,080		44,798
Ducommun, Inc. *		11,350		314,055
Eastern Co. (a)		25,630		401,110
Edac Technologies Corp. *		19,163		122,643
EnPro Industries, Inc. (a)*		19,005		592,766
Espey Manufacturing & Electronics Corp.		20,760		415,200
Esterline Technologies Corp. (a)*		3,910		196,947
EXX, Inc., Class A (a)*		2,120		6,699
GrafTech International Ltd. (a)*		28,649		464,400
Hardinge, Inc. (a)		81,732		1,124,632
Herley Industries, Inc. (a)*		35,277		364,764
Hurco Cos., Inc. (a)*		9,198		430,282
II-VI, Inc. (a)*		59,257		2,250,581
Industrial Distribution Group, Inc. *		48,803		489,982
K-Tron International, Inc. *		21,580		2,591,974
Kadant, Inc. (a)*		55,200		1,621,776
Key Technology, Inc. (a)*		2,380		70,900
L.B. Foster Co., Class A (a)*		28,831		1,241,463
Lawson Products, Inc. (a)		7,117		196,073
Lydall, Inc. (a)*		81,080		928,366
Meadow Valley Corp. *		20,931		171,634
Mueller Industries, Inc. (a)		172,750		4,983,838
NACCO Industries, Inc., Class A (a)		35,357		2,861,796
Nortech Systems, Inc. *		938		5,698
Northwest Pipe Co. (a)*		43,123		1,832,296
Orbital Sciences Corp. (a)*		154,050		3,712,605
Patrick Industries, Inc. *		300		2,156
Perini Corp. (a)*		2,805		101,625
Powell Industries, Inc. *		4,850		190,945
PowerSecure International, Inc. (a)*		10,244		120,572
Preformed Line Products Co. (a)		5,514		268,422
Regal-Beloit Corp. (a)		230,460		8,441,750
Robbins & Myers, Inc. (a)		167,840		5,479,976
Rush Enterprises, Inc., Class A (a)*		137,306		2,174,927
Rush Enterprises, Inc., Class B (a)*		17,440		256,019
SL Industries, Inc. *		34,560		687,744
Standex International Corp. (a)		84,680		1,891,751
Tech/ Ops Sevcon, Inc.		7,056		49,392
Teledyne Technologies, Inc. (a)*		19,330		908,510
The L.S. Starrett Co., Class A (a)		25,886		498,047
The Middleby Corp. (a)*		78,850		4,919,452
Tredegar Corp. (a)		9,888		180,060
Triumph Group, Inc. (a)		88,588		5,043,315
Twin Disc, Inc. (a)		120,820		1,911,372
Valmont Industries, Inc. (a)		2,070		181,932
Willis Lease Finance Corp. *		72,568		912,180
Woodward Governor Co. (a)		423,275		11,309,908

				81,754,916
Commercial Services & Supplies 4.3%

A.T. Cross Co., Class A (a)*		35,330		242,011
ABM Industries, Inc. (a)		480		10,771
Avalon Holdings Corp., Class A *		9,680		58,080
CDI Corp. (a)		112,090		2,807,854
Champion Industries, Inc. (a)		20,740		108,263
Comfort Systems USA, Inc. (a)		217,469		2,829,272
CompX International, Inc. (a)		5,660		52,072
Deluxe Corp. (a)		78,461		1,507,236
Ecology & Environment, Inc., Class A (a)		25,430		303,888
Exponent, Inc. (a)*		99,554		3,269,353
GeoEye, Inc. (a)*		94,995		2,468,920
GP Strategies Corp. *		22,050		209,475
Interface, Inc., Class A (a)		935		13,137
Kelly Services, Inc., Class A (a)		196,775		4,045,694
Layne Christensen Co. (a)*		61,538		2,155,061
LECG Corp. (a)*		87,492		818,925
Nashua Corp. *		20,530		225,625
National Technical Systems, Inc. *		10,376		61,737
North American Galvanizing & Coatings, Inc. *		40,636		223,498
RCM Technologies, Inc. (a)*		98,583		380,530
Spherion Corp. (a)*		417,013		2,552,120
Steelcase, Inc., Class A (a)		3,900		43,134
Tufco Technologies, Inc. *		17,215		106,561
Virco Manufacturing Corp. (a)		22,650		118,460
VSE Corp.		16,602		468,674
Waste Industries USA, Inc. (a)		33,295		1,203,614
Westaff, Inc. (a)*		74,331		160,555

				26,444,520
Consumer Durables & Apparel 4.0%

Aldila, Inc.		21,474		244,804
American Biltrite, Inc. *		18,550		132,632
American Greetings Corp., Class A (a)		65,420		1,213,541
Blyth, Inc. (a)		124,288		2,450,959
Callaway Golf Co. (a)		125,248		1,838,641
CSS Industries, Inc. (a)		15,150		529,644
Culp, Inc. (a)*		54,440		409,389

See financial notes.

38 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Deckers Outdoor Corp. (a)*		30,224		3,258,752
Decorator Industries, Inc. (a)		690		2,532
Delta Apparel, Inc. (a)		11,171		67,473
Flexsteel Industries, Inc. (a)		21,910		295,347
Hooker Furniture Corp. (a)		22,349		499,277
Jaclyn, Inc. (a)*		470		4,033
JAKKS Pacific, Inc. (a)*		216,860		5,978,830
LaCrosse Footwear, Inc. (a)		1,158		18,377
Man Sang Holdings, Inc. (a)*		200		1,334
Movado Group, Inc. (a)		128,541		2,505,264
National Presto Industries, Inc. (a)		13,830		724,692
P & F Industries, Inc., Class A *		16,530		105,792
Q.E.P. Co., Inc. *		7,548		56,987
UniFirst Corp. (a)		46,960		1,741,746
Universal Electronics, Inc. (a)*		86,957		2,105,229
Weyco Group, Inc. (a)		1,979		58,717

				24,243,992
Consumer Services 2.4%

Ark Restaurants Corp. (a)		24,752		717,808
Bally Technologies, Inc. (a)*		4		137
Bob Evans Farms, Inc. (a)		152,716		4,213,434
CBRL Group, Inc. (a)		1,986		71,039
Churchill Downs, Inc. (a)		3,700		174,788
Frisch’s Restaurants, Inc.		26,420		607,660
ILX Resorts, Inc.		18,950		96,645
INVESTools, Inc. (a)*		10,075		110,724
J. Alexander’s Corp.		29,420		243,598
Nathan’s Famous, Inc. (a)*		3,065		42,910
Nobel Learning Communities, Inc. *		4,790		64,090
Red Lion Hotels Corp. (a)*		81,011		693,454
Silverleaf Resorts, Inc. (a)*		152,095		345,256
Speedway Motorsports, Inc. (a)		3,580		89,751
Star Buffet, Inc. (a)		7,383		52,936
WMS Industries, Inc. (a)*		192,651		6,929,657

				14,453,887
Diversified Financials 1.0%

American Physicians Service Group, Inc.		29,398		575,613
California First National Bancorp		35,001		356,310
GAMCO Investors, Inc., Class A (a)		14,870		748,853
Greenhill & Co., Inc. (a)		8,163		567,818
Knight Capital Group, Inc., Class A (a)*		146,503		2,379,209
MicroFinancial, Inc. (a)		48,620		254,283
Stifel Financial Corp. (a)*		25,421		1,141,403

				6,023,489
Energy 11.9%

Adams Resources & Energy, Inc. (a)		30,350		843,730
Alpha Natural Resources, Inc. (a)*		13,487		585,875
Atlas America, Inc. (a)		313		18,918
ATP Oil & Gas Corp. *		6,578		215,232
Atwood Oceanics, Inc. (a)*		110,880		10,169,914
Berry Petroleum Co., Class A		3,120		145,049
Bill Barrett Corp. (a)*		13,293		628,094
Complete Production Services, Inc. (a)*		20,234		464,168
Comstock Resources, Inc. (a)*		23,340		940,602
Contango Oil & Gas Co. (a)*		940		60,733
Crosstex Energy, Inc. (a)		13,085		444,236
Dawson Geophysical Co. (a)*		52,798		3,563,865
Dril-Quip, Inc. (a)*		11,098		515,724
Encore Acquisition Co. *		18,289		736,681
EXCO Resources, Inc. (a)*		124,920		2,311,020
Gulf Island Fabrication, Inc.		190		5,457
GulfMark Offshore, Inc. (a)*		62,111		3,398,714
Harvest Natural Resources, Inc. (a)*		1,478		17,825
Hornbeck Offshore Services, Inc. (a)*		99,311		4,535,533
International Coal Group, Inc. (a)*		4,672		29,667
ION Geophysical Corp. (a)*		232,019		3,201,862
Lufkin Industries, Inc. (a)		64,811		4,136,238
Mariner Energy, Inc. (a)*		389,331		10,515,830
McMoRan Exploration Co. (a)*		5,200		89,908
Oil States International, Inc. (a)*		156,395		7,008,060
Penn Virginia Corp.		157,358		6,937,914
Petrohawk Energy Corp. (a)*		14,360		289,641
Rosetta Resources, Inc. (a)*		125,520		2,468,979
Stone Energy Corp. (a)*		770		40,279
Swift Energy Co. (a)*		87,851		3,952,417
T-3 Energy Services, Inc. (a)*		29,813		1,268,841
Trico Marine Services, Inc. (a)*		60,144		2,343,812
Union Drilling, Inc. (a)*		42,088		736,119
Venoco, Inc. (a)*		5,610		65,188
W&T Offshore, Inc. (a)		1,120		38,203
Whiting Petroleum Corp. (a)*		220		14,223

				72,738,551
Food & Staples Retailing 2.0%

Arden Group, Inc., Class A (a)		302		43,186
Casey’s General Stores, Inc. (a)		18,814		425,196
Ingles Markets, Inc., Class A (a)		1,720		42,295
Longs Drug Stores Corp. (a)		166,653		7,076,086
Nash Finch Co. (a)		63,792		2,167,652
Ruddick Corp. (a)		1,360		50,130
Susser Holdings Corp. *		7,460		140,024
Village Super Market, Inc., Class A (a)		32,834		1,690,951
Weis Markets, Inc. (a)		26,618		917,523

				12,553,043
Food, Beverage & Tobacco 1.2%

Cal-Maine Foods, Inc. (a)		64,375		2,148,837
Chiquita Brands International, Inc. *		59,160		1,367,188
Darling International, Inc. (a)*		970		12,561
Flowers Foods, Inc. (a)		2,380		58,905
Fresh Del Monte Produce, Inc. (a)*		92,000		3,348,800
Omega Protein Corp. (a)*		25,962		354,381
Seneca Foods Corp., Class B *		390		8,132
Tasty Baking Co. (a)		33,007		188,140

				7,486,944
Health Care Equipment & Services 6.1%

Allied Healthcare Products, Inc. *		75,542		466,849
American Shared Hospital Services (a)		28,138		67,531
Analogic Corp. (a)		3		200
AngioDynamics, Inc. (a)*		22,580		261,025
Atrion Corp.		12,270		1,226,264
Cardiac Science Corp. (a)*		109,630		915,410

See financial notes.

Laudus U.S. Equity Funds 39

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
CONMED Corp. (a)*		53,230		1,364,817
Cynosure, Inc., Class A (a)*		29,680		632,184
Datascope Corp. (a)		134,134		5,557,172
Gentiva Health Services, Inc. (a)*		33,891		737,468
Greatbatch, Inc. (a)*		2,340		43,079
Hanger Orthopedic Group, Inc. (a)*		55,483		598,107
HMS Holdings Corp. (a)*		89,312		2,549,858
Integra LifeSciences Holdings (a)*		71,365		3,102,236
IntegraMed America, Inc. *		33,034		323,403
Invacare Corp. (a)		39,233		874,111
Kewaunee Scientific Corp. (a)		24,858		372,870
Kindred Healthcare, Inc. (a)*		141,673		3,098,388
MedCath Corp. (a)*		63,164		1,149,585
MTS Medication Technologies (a)*		4,380		53,436
National Dentex Corp. *		47,550		612,919
National Healthcare Corp. (a)		45,687		2,224,957
Orthofix International N.V. (a)*		62,184		2,473,058
Radnet, Inc. *		1,667		11,736
RehabCare Group, Inc. (a)*		22,710		340,650
Res-Care, Inc. (a)*		175,407		3,008,230
Skilled Healthcare Group, Inc., Class A (a)*		111,911		1,228,783
SonoSite, Inc. (a)*		13,146		373,741
Span-America Medical Systems, Inc. (a)		26,220		309,396
SRI/ Surgical Express, Inc. (a)*		3,202		13,769
Theragenics Corp. (a)*		141,295		556,702
Zoll Medical Corp. (a)*		117,088		3,113,370

				37,661,304
Household & Personal Products 0.3%

Cascade International, Inc. (a)(b)(c)(d)*		37,660		—
Geopharma, Inc. (a)*		13,958		36,151
Inter Parfums, Inc. (a)		8,232		181,763
Natural Alternative International, Inc. *		34,822		313,398
Nutraceutical International Corp. (a)*		22,913		297,869
Oil-Dri Corp. of America		13,959		249,726
Schiff Nutrition International, Inc.		128,840		771,752

				1,850,659
Insurance 6.3%

Alleghany Corp. (a)*		8		2,786
American National Insurance Co. (a)		375		40,012
American Safety Insurance Holdings Ltd. *		56,270		962,217
Aspen Insurance Holdings Ltd. (a)		245,300		6,471,014
Delphi Financial Group, Inc., Class A (a)		199,896		5,842,960
Flagstone Reinsurance Holdings Ltd. (a)		18,479		223,596
FPIC Insurance Group, Inc. (a)*		71,127		3,352,927
Hallmark Financial Services, Inc. (a)*		6,312		70,442
Harleysville Group, Inc. (a)		12,576		453,868
Horace Mann Educators Corp. (a)		386,481		6,755,688
IPC Holdings Ltd. (a)		24,661		690,508
Kansas City Life Insurance Co. (a)		37,181		1,786,919
Mercer Insurance Group, Inc.		5,089		88,498
National Western Life Insurance Co., Class A (a)		23,320		5,055,543
Presidential Life Corp. (a)		84,114		1,466,948
Seabright Insurance Holdings (a)*		12,505		184,199
Unico American Corp. *		48,686		457,648
United America Indemnity Ltd., Class A (a)*		213,400		4,110,084
Universal Insurance Holdings, Inc. (a)		157,800		596,484

				38,612,341
Materials 6.7%

A. Schulman, Inc. (a)		229,173		4,704,922
A.M. Castle & Co. (a)		14,723		397,521
American Pacific Corp. (a)*		14,245		227,493
Arch Chemicals, Inc. (a)		26,564		989,775
Century Aluminum Co. (a)*		8,903		589,735
Coeur d’Alene Mines Corp. (a)*		11,350		45,854
Compass Minerals International, Inc. (a)		12,978		765,442
Constar International, Inc. (a)*		10,588		27,740
Continental Materials Corp. (a)*		6,350		149,542
Friedman Industries, Inc.		21,890		112,733
Glatfelter (a)		22,210		335,593
Hercules, Inc.		20,909		382,426
Innophos Holdings, Inc. (a)		2,780		44,730
Innospec, Inc. (a)		36,486		773,503
Kaiser Aluminum Corp. (a)		35,964		2,492,305
LSB Industries, Inc. (a)*		8,540		125,880
Minerals Technologies, Inc. (a)		5,320		334,096
Olin Corp. (a)		65,035		1,285,092
Olympic Steel, Inc. (a)		24,648		1,111,625
OM Group, Inc. *		1,500		81,810
Penford Corp. (a)		14,011		304,459
PolyOne Corp. (a)*		61,525		391,914
Rock of Ages Corp. *		5,960		23,602
Rockwood Holdings, Inc. (a)*		180		5,899
Schnitzer Steel Industries, Inc., Class A (a)		112,321		7,977,037
Schweitzer-Mauduit International, Inc. (a)		61,800		1,430,052
Stepan Co. (a)		37,660		1,439,742
Stillwater Mining Co. (a)*		8,110		125,462
Terra Industries, Inc. (a)*		251,206		8,925,349
The Scotts Miracle-Gro Co., Class A (a)		99,746		3,233,765
U.S. Energy Corp. (a)		1,750		5,862
UFP Technologies, Inc. *		2,460		19,065
Worthington Industries, Inc. (a)		142,094		2,397,126

				41,257,151
Media 0.9%

Alloy, Inc. (a)*		65,314		480,058
DG Fastchannel, Inc. (a)*		1,567		30,055
New Frontier Media, Inc.		3,020		13,469
Scholastic Corp. (a)*		158,060		4,784,476
Triple Crown Media, Inc. *		10,084		28,135

				5,336,193

See financial notes.

40 Laudus U.S. Equity Funds

Laudus Rosenberg U.S. Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Pharmaceuticals & Biotechnology 4.2%

Albany Molecular Research, Inc. (a)*		3,694		44,845
Bioanalytical Systems, Inc. *		580		3,393
Bruker BioSciences Corp. (a)*		237,059		3,648,338
Cambrex Corp. (a)		2,670		18,503
Emergent Biosolutions, Inc. (a)*		28,197		251,517
Harvard Bioscience, Inc. (a)*		103,862		519,310
Illumina, Inc. (a)*		45,782		3,474,854
Kendle International, Inc. (a)*		69,260		3,111,159
Medicis Pharmaceutical Corp., Class A		197,975		3,898,128
Noven Pharmaceuticals, Inc. *		890		7,992
PAREXEL International Corp. (a)*		242,998		6,342,248
Pharmanet Development Group, Inc. (a)*		6,313		159,277
Sciele Pharma, Inc. (a)*		78,327		1,527,377
Varian, Inc. (a)*		46,949		2,719,286

				25,726,227
Real Estate 3.3%

Ashford Hospitality Trust (a)		72,478		411,675
Extra Space Storage, Inc. (a)		87,893		1,422,988
Gladstone Commercial Corp. (a)		1,170		18,193
Hersha Hospitality Trust (a)		200,313		1,808,826
J.W. Mays, Inc. *		16,430		327,778
LTC Properties, Inc. (a)		135,283		3,478,126
Medical Properties Trust, Inc. (a)		248,860		2,817,095
MHI Hospitality Corp. (a)		510		3,193
Mission West Properties, Inc. (a)		86,808		820,336
Monmouth Real Estate Investment Corp., Class A		27,609		220,872
National Retail Properties, Inc.		53,390		1,177,249
One Liberty Properties, Inc.		38,130		613,512
Ramco-Gershenson Properties Trust (a)		29,355		619,684
Reis, Inc. (a)*		20,168		107,899
Strategic Hotel & Resorts, Inc. (a)		362,412		4,758,470
Supertel Hospitality, Inc. (a)		58,649		310,840
United Capital Corp. *		7,450		162,037
Winthrop Realty Trust		297,190		1,224,423

				20,303,196
Retailing 1.6%

1-800-FLOWERS.COM, Inc., Class A (a)*		189,744		1,614,722
AMCON Distributing Co. (a)*		2,400		74,064
Appliance Recycling Centers of America, Inc. *		100		491
Big Lots, Inc. (a)*		20,580		458,934
Coast Distribution System, Inc.		17,137		87,399
Duckwall-ALCO Stores, Inc. (a)*		1,568		17,875
Educational Development Corp.		2,503		14,492
Franklin Covey Co. *		119,148		893,610
Gaiam, Inc., Class A (a)*		34,335		594,682
GSI Commerce, Inc. (a)*		25,745		338,547
Hastings Entertainment, Inc. *		78,370		615,988
Jennifer Convertibles, Inc. *		120		275
Jo-Ann Stores, Inc. (a)*		8,620		126,973
Monro Muffler Brake, Inc. (a)		45,446		768,037
REX Stores Corp. (a)*		52,199		1,026,754
Sport Chalet, Inc., Class B (a)*		2,931		15,227
Sport Supply Group, Inc. (a)		38,581		461,043
Stage Stores, Inc. (a)		115,149		1,865,414
Systemax, Inc. (a)		56,518		681,607
The Aristotle Corp. *		430		4,489
The Bon-Ton Stores, Inc. (a)		12,170		66,570
Trans World Entertainment Corp. (a)*		42,344		159,213

				9,886,406
Semiconductors & Semiconductor Equipment 3.4%

CEVA, Inc. (a)*		95,904		733,665
Cirrus Logic, Inc. (a)*		35,299		237,209
FEI Co. (a)*		131,912		2,879,639
hi/fn, Inc. *		890		4,539
Monolithic Power Systems (a)*		2,008		35,401
Pericom Semiconductor Corp. (a)*		128,354		1,884,237
Skyworks Solutions, Inc. (a)*		886,572		6,454,244
Standard Microsystems Corp. (a)*		143,265		4,180,473
TriQuint Semiconductor, Inc. (a)*		226,778		1,147,497
Zoran Corp. (a)*		233,902		3,195,101

				20,752,005
Software & Services 11.1%

AsiaInfo Holdings, Inc. (a)*		4,014		43,592
Astea International, Inc. *		17,870		69,872
Chordiant Software, Inc. (a)*		89,300		538,479
CIBER, Inc. (a)*		272,306		1,334,299
Computer Task Group, Inc. *		68,846		283,645
CSP, Inc. (a)*		19,112		115,245
EarthLink, Inc. (a)*		162,063		1,223,576
Edgewater Technology, Inc. (a)*		106,794		562,804
EPIQ Systems, Inc. (a)*		9,638		149,582
Fair Isaac Corp.		15,650		336,788
Hackett Group, Inc. *		31,964		124,979
Interwoven, Inc. (a)*		140,648		1,502,121
JDA Software Group, Inc. (a)*		136,075		2,483,369
Lawson Software, Inc. *		553,543		4,168,179
MAXIMUS, Inc. (a)		79,096		2,903,614
Mentor Graphics Corp. (a)*		170,747		1,507,696
MPS Group, Inc. (a)*		721,648		8,529,879
Ness Technologies, Inc. (a)*		28,442		269,915
NetScout Systems, Inc. (a)*		89,309		830,574
Perot Systems Corp., Class A (a)*		686,770		10,329,021
Phoenix Technologies Ltd. *		10,260		160,672
QAD, Inc. (a)		8,271		69,559
Radiant Systems, Inc. (a)*		19,250		268,922
S1 Corp. (a)*		59,335		421,872
Sapient Corp. (a)*		190,995		1,329,325
Solera Holdings, Inc. (a)*		7,575		184,527
SonicWALL, Inc. (a)*		317,623		2,594,980
SPSS, Inc. (a)*		123,837		4,802,399
SumTotal Systems, Inc. (a)*		32,388		135,058
Sybase, Inc. (a)*		362,186		9,525,492
TechTeam Global, Inc. (a)*		53,045		480,057
TIBCO Software, Inc. *		8,870		63,332
TNS, Inc. (a)*		125,442		2,589,123
TSR, Inc.		49,080		206,136
Unisys Corp. (a)*		403,378		1,786,964
United Online, Inc. (a)		496,585		5,243,938
Vignette Corp. (a)*		69,495		918,029

				68,087,614

See financial notes.

Laudus U.S. Equity Funds 41

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Technology Hardware & Equipment 5.9%

Aetrium, Inc. (a)*		2,020		7,939
Allied Motion Technologies, Inc. *		43,156		204,559
Astro-Med, Inc. (a)		25,734		230,319
Black Box Corp. (a)		161,880		4,993,998
Bonso Electronic International, Inc. *		25,562		52,913
Coherent, Inc. (a)*		2,363		65,904
Communications Systems, Inc.		57,540		619,706
CTS Corp. (a)		86,286		923,260
Data I/O Corp. (a)*		1,936		8,422
Digi International, Inc. (a)*		141,451		1,632,345
Electro Scientific Industries, Inc. (a)*		44,295		729,982
EMS Technologies, Inc. (a)*		40,442		1,097,596
Emulex Corp. (a)*		232,525		3,776,206
FLIR Systems, Inc. (a)*		76,444		2,300,200
Gerber Scientific, Inc. (a)*		49,677		441,629
Globecomm Systems, Inc. (a)*		14,841		129,117
Harmonic, Inc. (a)*		82,480		626,848
Insight Enterprises, Inc. (a)*		246,729		4,317,757
IntriCon Corp. (a)*		20,400		162,996
Keithley Instruments, Inc. (a)		385		3,734
Key Tronic Corp. (a)*		2,420		6,268
Loral Space & Communications, Inc. (a)*		54,377		1,296,348
Measurement Specialties, Inc. (a)*		4,380		76,519
Mesa Laboratories, Inc.		1,640		36,736
Methode Electronics, Inc. (a)		64,718		756,553
Network Equipment Technologies, Inc. (a)*		22,950		150,781
O.I. Corp. (a)		28,114		331,745
Oplink Communications, Inc. (a)*		84,175		746,632
Optical Cable Corp. (a)*		1,140		5,700
OSI Systems, Inc. (a)*		27,307		628,607
Perceptron, Inc. *		30,655		388,399
Rofin-Sinar Technologies, Inc. (a)*		10,964		492,284
Schmitt Industries, Inc. *		8,703		51,783
SeaChange International, Inc. (a)*		3,740		26,292
Soapstone Networks, Inc. (a)		8		57
Spectrum Control, Inc. *		91,736		776,087
Sutron Corp. *		800		5,600
Technitrol, Inc. (a)		295,810		6,842,085
Tekelec *		4,469		55,639
TESSCO Technologies, Inc. (a)*		8,716		130,740
Tollgrade Communications, Inc. *		10,442		54,716
Vicon Industries, Inc. (a)*		33,740		168,700
Zones, Inc. (a)*		6,970		57,224
Zygo Corp. (a)*		83,273		1,035,916

				36,446,841
Telecommunication Services 1.1%

Atlantic Tele-Network, Inc. (a)		63,300		2,141,439
D&E Communications, Inc.		53,724		478,144
Gilat Satellite Networks Ltd. (a)*		220,120		2,383,900
HickoryTech Corp.		2,830		23,121
Hungarian Telephone & Cable Corp. (a)*		6,900		119,715
Premiere Global Services, Inc. (a)*		68,048		975,808
USA Mobility, Inc. (a)*		78,403		559,797

				6,681,924
Transportation 0.6%

Air T., Inc.		575		5,531
B & H Ocean Carriers Ltd. *		17,030		177,538
Dynamex, Inc. (a)*		53,552		1,354,866
Genco Shipping & Trading Ltd. (a)		11,278		636,418
International Shipholding Corp. *		12,810		245,696
Park-Ohio Holdings Corp. (a)*		7,090		111,384
Pinnacle Airlines Corp. (a)*		7,065		61,677
SkyWest, Inc. (a)		44,659		943,198

				3,536,308
Utilities 2.4%

Artesian Resources Corp., Class A (a)		14,445		267,666
CH Energy Group, Inc. (a)		140,455		5,463,699
Delta Natural Gas Co., Inc. (a)		6,456		159,399
El Paso Electric Co. (a)*		1,000		21,370
Energy West, Inc.		4,995		43,706
Florida Public Utilities Co.		6,490		72,363
Maine & Maritimes Corp. *		7,077		196,741
NorthWestern Corp. (a)		156,794		3,821,070
Portland General Electric Co. (a)		22,221		501,083
RGC Resources, Inc.		3,210		89,431
The Empire District Electric Co. (a)		2,981		60,365
UIL Holdings Corp. (a)		1,320		39,772
Unisource Energy Corp. (a)		160,033		3,562,334
Unitil Corp.		300		8,085
WGL Holdings, Inc. (a)		3,580		114,775

				14,421,859

Total Common Stock (Cost $552,025,608)				604,735,597

Foreign Common Stock 0.0% of net assets
Bermuda 0.0%

Telecommunication Services 0.0%
Global Crossing Ltd. (a)*		15,636		237,042

Total Foreign Common Stock (Cost $245,080)				237,042


End of Investments.

Collateral Invested for Securities on Loan 41.0% of net assets
State Street Navigator Security Lending Prime Portfolio		251,007,699		251,007,699

End of collateral invested for securities on loan.

At 03/31/2008, the tax basis cost of the fund’s investments was $552,628,230 and the unrealized appreciation and depreciation were $99,330,008 and ($46,985,599), respectively, with a net unrealized appreciation of $52,344,409.


*	Non-income producing security.


(a)	All or a portion of this security is on loan.
(b)	Fair-valued by management.
(c)	Bankrupt security/delisted.
(d)	Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets.

See financial notes.

42 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings as of March 31, 2008


				Cost			Value
Holdings by Category				($)			($)

	96.4	%	Common Stock		185,348,950			190,396,715
	2.8	%	Short-Term Investment		5,461,514			5,461,514

	99.2	%	Total Investments		190,810,464			195,858,229
	(93.6	)%	Short Sales		(235,881,827	)		(184,841,365	)
	—	%	Rights		—			(47	)
	93.1	%	Deposits with broker and custodian bank for securities sold short		183,925,872			183,925,872
	1.3	%	Other Assets and Liabilities					2,588,751

	100.0	%	Net Assets					197,531,440


	Number of		Value
Security	Shares		($)
Common Stock (a) 96.4% of net assets
Automobiles & Components 0.5%

Cooper Tire & Rubber Co.		3,510		52,545
Standard Motor Products, Inc.		2,750		16,830
Superior Industries International, Inc.		3,500		72,625
Thor Industries, Inc.		8,004		238,279
TRW Automotive Holdings Corp. *		29,130		680,768

				1,061,047
Banks 3.2%

1st Independence Financial Group, Inc.		1,380		24,661
AMCORE Financial, Inc.		9,384		190,964
Ameriana Bancorp		300		2,619
American National Bankshares, Inc.		4,800		102,864
Anchor BanCorp Wisconsin, Inc.		2,771		52,566
Annapolis Bancorp, Inc. *		800		5,880
BancFirst Corp.		2,600		119,028
Banco Latinoamericano de Exportaciones, S.A., Class E		18,240		280,896
Berkshire Hills Bancorp, Inc.		9,400		236,786
Beverly Hills Bancorp, Inc.		7,400		18,722
Boston Private Financial Holdings, Inc.		1,760		18,638
C&F Financial Corp.		30		805
Camco Financial Corp.		650		7,153
Capital Bank Corp.		200		2,050
Cardinal Financial Corp.		9,300		82,491
Carver Bancorp, Inc.		1,610		18,805
CCF Holding Co.		100		602
Central Bancorp, Inc.		100		1,844
Central Virginia Bankshares, Inc.		460		8,096
Centrue Financial Corp.		1,050		20,475
CFS Bancorp, Inc.		12,000		172,440
Citizens South Banking Corp.		300		2,850
Codorus Valley Bancorp, Inc.		2,786		45,245
Community Bank Shares of Indiana, Inc.		2,209		43,352
Community Bankshares, Inc.		1,840		22,062
Community Capital Corp.		2,752		43,179
Community Financial Corp.		3,600		28,800
Crescent Banking Co.		4,300		47,300
Epic Bancorp		700		8,239
Farmers Capital Bank Corp.		8,300		196,959
Federal Agricultural Mortgage Corp., Class C		7,850		204,885
Fidelity Southern Corp.		710		5,971
First Bancorp of Indiana, Inc.		300		3,570
First Bancshares, Inc. *		200		3,306
First BancTrust Corp.		400		3,652
First Capital, Inc.		1,632		27,091
First Citizens BancShares, Inc., Class A		380		52,953
First Defiance Financial Corp.		5,900		108,265
First Federal Bancshares of Arkansas, Inc.		1,954		26,926
First Federal Bankshares, Inc.		2,185		30,153
First Financial Service Corp.		121		2,886
First M&F Corp.		802		11,629
First Merchants Corp.		13,060		372,732
First Niagara Financial Group, Inc.		9,700		131,823
First Niles Financial, Inc.		99		1,134
First PacTrust Bancorp, Inc.		200		3,317
First United Corp.		4,188		83,006
First West Virginia Bancorp, Inc.		10		158
FNB Corp. of North Carolina		5,020		52,710
Gateway Financial Holdings, Inc.		11,100		117,660
Great Pee Dee Bancorp, Inc.		201		4,625
Great Southern Bancorp, Inc.		200		3,122
Greene Bancshares, Inc.		9,500		168,055
GS Financial Corp.		1,090		18,121
Guaranty Federal Bancshares, Inc.		2,700		70,605
Habersham Bancorp		1,410		19,627
Harrington West Financial Group, Inc.		460		3,758
Hawthorn Bancshares, Inc.		420		11,550
HF Financial Corp.		1,060		16,960
HMN Financial, Inc.		4,400		101,552
Hopfed Bancorp, Inc.		60		797
Horizon Bancorp		2,800		64,092
IBERIABANK Corp.		400		17,700
LSB Financial Corp.		800		14,640
MASSBANK Corp.		400		15,492
MFB Corp.		600		19,971
Monarch Community Bancorp, Inc.		2,800		28,280
MutualFirst Financial, Inc.		3,210		42,276
National Bankshares, Inc.		999		17,792
NBT Bancorp, Inc.		5,230		116,106
New Hampshire Thrift Bancshares, Inc.		4,381		53,886
NewBridge Bancorp		200		1,752
North Central Bancshares, Inc.		1,367		40,402
Northrim BanCorp, Inc.		2,022		36,760
OceanFirst Financial Corp.		9,607		168,026
Pacific Premier Bancorp, Inc. *		5,750		40,250
Parkvale Financial Corp.		1,810		48,580
Peoples Bancorp of North Carolina		833		11,246
Premier Financial Bancorp, Inc.		1,300		15,015
Provident Community Bancshares, Inc.		890		15,798
Provident Financial Holdings, Inc.		820		13,153
QCR Holdings, Inc.		620		9,238

See financial notes.

Laudus U.S. Equity Funds 43

Laudus Rosenberg Long/ Short Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Republic First Bancorp, Inc. *		1,635		8,061
River Valley Bancorp		393		5,419
Rurban Financial Corp.		1,810		18,516
Security National Financial Corp., Class A *		105		404
Severn Bancorp, Inc.		9,283		81,690
Simmons First National Corp., Class A		13,800		410,274
Southern First Bancshares, Inc. *		1,490		22,305
Southern Missouri Bancorp, Inc.		1,800		26,550
Southwest Bancorp, Inc.		12,401		217,142
StellarOne Corp.		158		2,672
Summit Financial Group, Inc.		6,700		95,140
Sun Bancorp, Inc. *		12,293		161,899
Superior Bancorp *		24,053		119,543
TF Financial Corp.		3,100		75,175
The Bank Holdings *		460		4,393
Tower Financial Corp.		446		4,861
United Bancshares, Inc.		572		8,008
United Community Financial Corp.		3,800		23,560
United Western Bancorp, Inc.		5,860		104,894
VIST Financial Corp.		4,450		79,922
Wainwright Bank & Trust Co.		5,083		62,673
Wayne Savings Bancshares, Inc.		700		6,773
Willow Financial Bancorp, Inc.		13,700		101,243
Wintrust Financial Corp.		1,890		66,056
WSB Holdings, Inc.		800		4,384
WSFS Financial Corp.		5,980		294,694

				6,265,676
Capital Goods 9.7%

Acuity Brands, Inc.		29,330		1,259,723
Aecom Technology Corp. *		9,380		243,974
AGCO Corp. *		37,110		2,222,147
Alliant Techsystems, Inc. *		1,100		113,883
Applied Industrial Technologies, Inc.		4,940		147,657
Chase Corp.		3,200		57,952
Chicago Rivet & Machine Co.		600		13,440
Crane Co.		15,598		629,379
Ducommun, Inc. *		5,410		149,695
EnPro Industries, Inc. *		14,900		464,731
Espey Manufacturing & Electronics Corp.		1,200		24,000
Esterline Technologies Corp. *		3,080		155,140
Hardinge, Inc.		3,900		53,664
Harsco Corp.		31,700		1,755,546
Herley Industries, Inc. *		600		6,204
Hurco Cos., Inc. *		4,300		201,154
II-VI, Inc. *		18,703		710,340
Jacobs Engineering Group, Inc. *		14,500		1,067,055
K-Tron International, Inc. *		2,300		276,253
Kadant, Inc. *		9,200		270,296
Kennametal, Inc.		39,520		1,163,073
Lawson Products, Inc.		800		22,040
Lennox International, Inc.		1,500		53,955
Lincoln Electric Holdings, Inc.		1,600		103,184
Lydall, Inc. *		14,960		171,292
Meadow Valley Corp. *		4,599		37,712
Michael Baker Corp. *		150		3,369
Orbital Sciences Corp. *		54,400		1,311,040
Perini Corp. *		19,370		701,775
PowerSecure International, Inc. *		13,000		153,010
Preformed Line Products Co.		500		24,340
Regal-Beloit Corp.		15,820		579,487
Robbins & Myers, Inc.		12,580		410,737
SPX Corp.		12,930		1,356,357
Standex International Corp.		6,700		149,678
Supreme Industries, Inc., Class A		10,850		61,845
Sypris Solutions, Inc.		4,203		17,358
Teledyne Technologies, Inc. *		2,880		135,360
Teleflex, Inc.		8,062		384,638
Tennant Co.		6,400		254,784
The L.S. Starrett Co., Class A		5,817		111,919
The Shaw Group, Inc. *		500		23,570
Triumph Group, Inc.		3,240		184,453
Twin Disc, Inc.		5,190		82,106
W.W. Grainger, Inc.		23,600		1,802,804
Willis Lease Finance Corp. *		6,930		87,110

				19,209,229
Commercial Services & Supplies 2.1%

A.T. Cross Co., Class A *		300		2,055
Avalon Holdings Corp., Class A *		700		4,200
CDI Corp.		12,579		315,104
Champion Industries, Inc.		2,720		14,198
Comfort Systems USA, Inc.		39,250		510,642
CompX International, Inc.		400		3,680
Deluxe Corp.		13,450		258,374
Ecology & Environment, Inc., Class A		3,181		38,013
Exponent, Inc. *		10,200		334,968
First Advantage Corp., Class A *		100		2,119
GeoEye, Inc. *		10,400		270,296
GP Strategies Corp. *		12,690		120,555
Industrial Services of America, Inc.		3,400		33,932
Interface, Inc., Class A		4,000		56,200
Kelly Services, Inc., Class A		19,274		396,273
Kforce, Inc. *		27,931		246,910
LECG Corp. *		20,200		189,072
Nashua Corp. *		220		2,418
National Technical Systems, Inc. *		2,370		14,102
RCM Technologies, Inc. *		12,100		46,706
Spherion Corp. *		47,730		292,108
Steelcase, Inc., Class A		74,100		819,546
United Stationers, Inc. *		200		9,540
VSE Corp.		4,790		135,222
Westaff, Inc. *		11,700		25,272

				4,141,505
Consumer Durables & Apparel 2.6%

Acme United Corp.		360		4,752
Aldila, Inc.		5,000		57,000
American Biltrite, Inc. *		2,040		14,586
American Greetings Corp., Class A		46,070		854,598
Blyth, Inc.		18,400		362,848
Callaway Golf Co.		48,200		707,576
Cavco Industries, Inc. *		1,695		59,393
CSS Industries, Inc.		6,880		240,525
Culp, Inc. *		12,300		92,496
Deckers Outdoor Corp. *		7,824		843,584
G-III Apparel Group Ltd. *		10,200		136,884

See financial notes.

44 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund


	Number of		Value
Security	Shares		($)
Hooker Furniture Corp.		3,279		73,253
Jaclyn, Inc. *		1,000		8,580
JAKKS Pacific, Inc. *		20,491		564,937
LaCrosse Footwear, Inc.		2,884		45,769
Lifetime Brands, Inc.		3,950		35,313
Man Sang Holdings, Inc. *		1,120		7,470
National Presto Industries, Inc.		1,320		69,168
P & F Industries, Inc., Class A *		700		4,480
Polaris Industries, Inc.		611		25,057
Q.E.P. Co., Inc. *		2,240		16,912
Russ Berrie & Co., Inc. *		5,000		70,300
The Dixie Group, Inc. *		770		6,453
The Warnaco Group, Inc. *		7,599		299,704
Tupperware Brands Corp.		2,976		115,112
Universal Electronics, Inc. *		5,509		133,373
Weyco Group, Inc.		2,673		79,308
Whirlpool Corp.		2,700		234,306

				5,163,737
Consumer Services 3.7%

Ark Restaurants Corp.		3,305		95,845
Bally Technologies, Inc. *		32,000		1,098,880
Bob Evans Farms, Inc.		23,313		643,206
Burger King Holdings, Inc.		47,140		1,303,892
Canterbury Park Holding Corp.		3,900		36,855
CBRL Group, Inc.		480		17,170
Chipotle Mexican Grill, Inc., Class A *		3,310		375,453
Churchill Downs, Inc.		3,000		141,720
Darden Restaurants, Inc.		20,472		666,363
DeVry, Inc.		870		36,401
Einstein Noah Restaurant Group, Inc. *		100		856
Frisch’s Restaurants, Inc.		4,500		103,500
Nathan’s Famous, Inc. *		450		6,300
Red Lion Hotels Corp. *		19,080		163,325
Rubio’s Restaurants, Inc. *		7,725		44,187
Service Corp. International		129,229		1,310,382
Silverleaf Resorts, Inc. *		37,600		85,352
Speedway Motorsports, Inc.		2,250		56,407
WMS Industries, Inc. *		30,811		1,108,272

				7,294,366
Diversified Financials 2.2%

American Physicians Service Group, Inc.		3,670		71,859
California First National Bancorp		3,243		33,014
Federated Investors, Inc., Class B		32,995		1,292,084
Greenhill & Co., Inc.		13,491		938,434
International Assets Holding Corp. *		1,100		27,456
Knight Capital Group, Inc., Class A *		72,000		1,169,280
Paulson Capital Corp. *		5,500		28,325
QC Holdings, Inc.		5,645		51,087
Stifel Financial Corp. *		10,500		471,450
SWS Group, Inc.		300		3,669
Waddell & Reed Financial, Inc., Class A		9,900		318,087

				4,404,745
Energy 9.8%

Adams Resources & Energy, Inc.		190		5,282
Atlas America, Inc.		90		5,440
Atwood Oceanics, Inc. *		12,098		1,109,629
Cimarex Energy Co.		7,426		406,499
Dawson Geophysical Co. *		1,570		105,975
Diamond Offshore Drilling, Inc.		720		83,808
Edge Petroleum Corp. *		18,700		75,361
ENSCO International, Inc.		44,921		2,812,953
Forest Oil Corp. *		7,830		383,357
GulfMark Offshore, Inc. *		16,175		885,096
Helmerich & Payne, Inc.		10,865		509,243
Hornbeck Offshore Services, Inc. *		17,820		813,839
Mariner Energy, Inc. *		61,570		1,663,006
Massey Energy Co.		18,280		667,220
Oil States International, Inc. *		19,490		873,347
Penn Virginia Corp.		29,200		1,287,428
Pride International, Inc. *		30,370		1,061,431
Rosetta Resources, Inc. *		6,431		126,498
Rowan Cos., Inc.		27,503		1,132,573
SEACOR Holdings, Inc. *		18,590		1,586,842
Swift Energy Co. *		3,274		147,297
T-3 Energy Services, Inc. *		900		38,304
Tidewater, Inc.		30,700		1,691,877
Trico Marine Services, Inc. *		8,579		334,324
Whiting Petroleum Corp. *		19,051		1,231,647
Willbros Group, Inc. *		10,200		312,120

				19,350,396
Food & Staples Retailing 1.0%

Arden Group, Inc., Class A		772		110,396
BJ’s Wholesale Club, Inc. *		16,980		606,016
Casey’s General Stores, Inc.		455		10,283
Longs Drug Stores Corp.		18,610		790,181
Nash Finch Co.		9,765		331,815
Village Super Market, Inc., Class A		3,000		154,500

				2,003,191
Food, Beverage & Tobacco 1.8%

Cal-Maine Foods, Inc.		10,106		337,338
Corn Products International, Inc.		45,318		1,683,110
Darling International, Inc. *		19,280		249,676
Flowers Foods, Inc.		15,964		395,109
Fresh Del Monte Produce, Inc. *		4,460		162,344
Griffin Land & Nurseries, Inc.		197		6,795
Seaboard Corp.		237		370,905
Seneca Foods Corp., Class A *		700		14,700
Seneca Foods Corp., Class B *		3,200		66,720
Tasty Baking Co.		8,210		46,797
TreeHouse Foods, Inc. *		6,870		157,048
UST, Inc.		1,159		63,189

				3,553,731
Health Care Equipment & Services 3.9%

Air Methods Corp. *		6,585		318,517
Allied Healthcare Products, Inc. *		1,942		12,002
Amedisys, Inc. *		16,600		653,044
America Service Group, Inc. *		7,300		44,238
AngioDynamics, Inc. *		17,300		199,988
Arrhythmia Research Technology, Inc. *		2,700		16,308

See financial notes.

Laudus U.S. Equity Funds 45

Laudus Rosenberg Long/ Short Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Atrion Corp.		280		27,983
Cardiac Science Corp. *		5,030		42,001
CONMED Corp. *		6,267		160,686
Cynosure, Inc., Class A *		6,450		137,385
Datascope Corp.		9,504		393,751
Gentiva Health Services, Inc. *		9,809		213,444
Hanger Orthopedic Group, Inc. *		18,400		198,352
Health Net, Inc. *		52,054		1,603,263
Humana, Inc. *		29,400		1,318,884
Integra LifeSciences Holdings *		324		14,084
IntegraMed America, Inc. *		5,957		58,319
Kewaunee Scientific Corp.		2,580		38,700
Kindred Healthcare, Inc. *		21,000		459,270
MedCath Corp. *		9,967		181,399
National Dentex Corp. *		6,019		77,585
Orthofix International N.V. *		2,642		105,072
Pediatrix Medical Group, Inc. *		90		6,066
RehabCare Group, Inc. *		16,500		247,500
Res-Care, Inc. *		20,359		349,157
Skilled Healthcare Group, Inc., Class A *		9,410		103,322
Sonic Innovations, Inc. *		20,410		98,580
Span-America Medical Systems, Inc.		2,600		30,680
SunLink Health Systems, Inc. *		5,570		35,091
Theragenics Corp. *		29,377		115,745
Universal American Financial Corp. *		34,064		361,078
Zoll Medical Corp. *		5,426		144,277

				7,765,771
Household & Personal Products 0.3%

Geopharma, Inc. *		900		2,331
Inter Parfums, Inc.		4,500		99,360
Natural Alternative International, Inc. *		4,114		37,026
Nu Skin Enterprises, Inc., Class A		4,100		73,882
Nutraceutical International Corp. *		9,600		124,800
Oil-Dri Corp. of America		2,050		36,675
Schiff Nutrition International, Inc.		8,650		51,813
The Estee Lauder Cos., Inc., Class A		3,000		137,550

				563,437
Insurance 7.3%

21st Century Holding Co.		500		6,405
Affirmative Insurance Holdings, Inc.		1,233		9,839
Alleghany Corp. *		838		286,177
Allied World Assurance Co. Holdings Ltd.		18,288		726,034
American Financial Group, Inc.		18,370		469,537
American National Insurance Co.		3,411		363,954
American Safety Insurance Holdings Ltd. *		5,000		85,500
Aspen Insurance Holdings Ltd.		20,490		540,526
Axis Capital Holdings Ltd.		65,963		2,241,423
CNA Financial Corp.		450		11,606
Flagstone Reinsurance Holdings Ltd.		11,700		141,570
FPIC Insurance Group, Inc. *		9,000		424,260
Hallmark Financial Services, Inc. *		880		9,821
Hanover Insurance Group, Inc.		32,950		1,355,563
HCC Insurance Holdings, Inc.		16,992		385,548
Horace Mann Educators Corp.		18,830		329,148
IPC Holdings Ltd.		41,700		1,167,600
Kansas City Life Insurance Co.		310		14,899
Max Capital Group Ltd.		2,427		63,563
Mercer Insurance Group, Inc.		310		5,391
National Western Life Insurance Co., Class A		950		205,951
PartnerRe Ltd.		18,521		1,413,152
Platinum Underwriters Holdings Ltd.		46,590		1,512,311
Presidential Life Corp.		15,343		267,582
RenaissanceRe Holdings Ltd.		35,546		1,845,193
Unico American Corp. *		2,900		27,260
United America Indemnity Ltd., Class A *		17,055		328,479
Universal Insurance Holdings, Inc.		23,064		87,182
Unum Group		7,000		154,070

				14,479,544
Materials 5.8%

AK Steel Holding Corp.		21,357		1,162,248
Buckeye Technologies, Inc. *		5,600		62,496
CF Industries Holdings, Inc.		8,050		834,141
Continental Materials Corp. *		800		18,840
Domtar Corp. *		104,634		714,650
FMC Corp.		36,900		2,047,581
Friedman Industries, Inc.		2,180		11,227
Glatfelter		20,107		303,817
Greif, Inc., Class A		28,200		1,915,626
Innospec, Inc.		20,800		440,960
Owens-Illinois, Inc. *		1,160		65,459
Packaging Corp. of America		65,655		1,466,076
Penford Corp.		396		8,605
Rock of Ages Corp. *		2,430		9,623
Schnitzer Steel Industries, Inc., Class A		5,685		403,749
Schweitzer-Mauduit International, Inc.		460		10,644
Southern Copper Corp.		15,970		1,658,165
Steel Dynamics, Inc.		760		25,110
Stepan Co.		2,720		103,986
The Scotts Miracle-Gro Co., Class A		2,864		92,851
U.S. Energy Corp.		190		636
United States Lime & Minerals, Inc. *		100		2,905

				11,359,395
Media 1.6%

Alloy, Inc. *		13,650		100,327
DG Fastchannel, Inc. *		3,638		69,777
DISH Network Corp., Class A *		5,839		167,754
Fisher Communications, Inc. *		2,700		84,132
Gannett Co., Inc.		67,200		1,952,160
New Frontier Media, Inc.		2,300		10,258
Saga Communications, Inc., Class A *		17,300		96,880
Scholastic Corp. *		20,539		621,716
Value Line, Inc.		300		13,770

				3,116,774

See financial notes.

46 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund


	Number of		Value
Security	Shares		($)
Pharmaceuticals & Biotechnology 5.7%

Albany Molecular Research, Inc. *		23,350		283,469
Bioanalytical Systems, Inc. *		1,250		7,313
Cambrex Corp.		4,600		31,878
Caraco Pharmaceutical Laboratories Ltd. *		6,830		122,598
Emergent Biosolutions, Inc. *		5,500		49,060
Harvard Bioscience, Inc. *		30,270		151,350
Invitrogen Corp. *		21,866		1,868,887
Kendle International, Inc. *		10,812		485,675
Medicis Pharmaceutical Corp., Class A		29,279		576,504
Pain Therapeutics, Inc. *		16,683		140,971
Par Pharmaceutical Cos, Inc. *		15,550		270,414
PAREXEL International Corp. *		47,400		1,237,140
PerkinElmer, Inc.		65,000		1,576,250
Perrigo Co.		53,300		2,011,009
Pharmanet Development Group, Inc. *		12,530		316,132
Sciele Pharma, Inc. *		29,000		565,500
Watson Pharmaceuticals, Inc. *		55,900		1,638,988

				11,333,138
Real Estate 3.9%

American Campus Communities, Inc.		1,050		28,728
Ashford Hospitality Trust		10,630		60,378
Cedar Shopping Centers, Inc.		2,350		27,448
DiamondRock Hospitality Co.		66,781		846,115
Extra Space Storage, Inc.		46,670		755,587
FelCor Lodging Trust, Inc.		1,385		16,662
Gladstone Commercial Corp.		4,187		65,108
Hersha Hospitality Trust		24,400		220,332
Income Opportunity Realty Investors *		590		3,443
J.W. Mays, Inc. *		2,600		51,870
Lexington Realty Trust		9,451		136,189
LTC Properties, Inc.		16,797		431,851
Medical Properties Trust, Inc.		36,120		408,878
MHI Hospitality Corp.		6,510		40,753
Mission West Properties, Inc.		16,368		154,678
Monmouth Real Estate Investment Corp., Class A		20,697		165,576
National Retail Properties, Inc.		45,900		1,012,095
Nationwide Health Properties, Inc.		47,236		1,594,215
One Liberty Properties, Inc.		9,150		147,224
Ramco-Gershenson Properties Trust		8,592		181,377
Strategic Hotel & Resorts, Inc.		50,603		664,417
Sunstone Hotel Investors, Inc.		28,745		460,207
Supertel Hospitality, Inc.		16,100		85,330
The Intergroup Corp. *		130		2,340
United Capital Corp. *		720		15,660
Winthrop Realty Trust		22,570		92,988

				7,669,449
Retailing 4.3%

1-800-FLOWERS.COM, Inc., Class A *		25,266		215,014
Abercrombie & Fitch Co., Class A		13,730		1,004,212
Aeropostale, Inc. *		44,900		1,217,239
AMCON Distributing Co. *		550		16,973
AutoZone, Inc. *		150		17,074
Books-A-Million, Inc.		8,700		76,038
Duckwall-ALCO Stores, Inc. *		320		3,648
Educational Development Corp.		3,920		22,697
Franklin Covey Co. *		21,300		159,750
GameStop Corp., Class A *		300		15,513
GSI Commerce, Inc. *		14,838		195,120
Hastings Entertainment, Inc. *		3,743		29,420
IAC/ InterActiveCorp *		88,901		1,845,585
Jo-Ann Stores, Inc. *		18,600		273,978
Monro Muffler Brake, Inc.		6,710		113,399
Netflix, Inc. *		30,400		1,053,360
Priceline.com, Inc. *		14,600		1,764,556
REX Stores Corp. *		8,610		169,359
Sport Supply Group, Inc.		11,000		131,450
Systemax, Inc.		9,282		111,941
The Bon-Ton Stores, Inc.		5,707		31,217
The Buckle, Inc.		1,300		58,149
West Marine, Inc. *		3,600		25,092

				8,550,784
Semiconductors & Semiconductor Equipment 4.9%

CEVA, Inc. *		2,040		15,606
Cirrus Logic, Inc. *		65,726		441,679
Fairchild Semiconductor International, Inc. *		85,300		1,016,776
Integrated Device Technology, Inc. *		38,586		344,573
International Rectifier Corp. *		25,780		554,270
Intersil Corp., Class A		56,119		1,440,575
IXYS Corp. *		1,200		8,196
Mattson Technology, Inc. *		7,276		44,311
MEMC Electronic Materials, Inc. *		23,700		1,680,330
Microsemi Corp. *		51,100		1,165,080
Microtune, Inc. *		5,563		20,361
OmniVision Technologies, Inc. *		40,070		673,977
Pericom Semiconductor Corp. *		17,600		258,368
Skyworks Solutions, Inc. *		128,308		934,082
Standard Microsystems Corp. *		18,500		539,830
Trio-Tech International		3,150		20,002
TriQuint Semiconductor, Inc. *		6,338		32,070
Zoran Corp. *		34,103		465,847

				9,655,933
Software & Services 8.7%

Astea International, Inc. *		1,900		7,429
Bankrate, Inc. *		3,437		171,472
Cadence Design Systems, Inc. *		152,400		1,627,632
Chordiant Software, Inc. *		802		4,836
CIBER, Inc. *		47,484		232,672
Computer Task Group, Inc. *		16,815		69,278
Convergys Corp. *		87,996		1,325,220
CSP, Inc. *		3,604		21,732
Dynamics Research Corp. *		7,190		72,691
Edgewater Technology, Inc. *		11,360		59,867
Electronic Data Systems Corp.		117,500		1,956,375
Gevity HR, Inc.		6,650		57,589
Hewitt Associates, Inc., Class A *		6,628		263,595
Interwoven, Inc. *		29,361		313,575
JDA Software Group, Inc. *		18,100		330,325
Lawson Software, Inc. *		105,403		793,684
MAXIMUS, Inc.		16,070		589,930

See financial notes.

Laudus U.S. Equity Funds 47

Laudus Rosenberg Long/ Short Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Mentor Graphics Corp. *		58,320		514,966
MPS Group, Inc. *		71,900		849,858
Ness Technologies, Inc. *		26,132		247,993
NetScout Systems, Inc. *		8,320		77,376
Perot Systems Corp., Class A *		18,068		271,743
Quest Software, Inc. *		15,160		198,141
Sapient Corp. *		29,506		205,362
SonicWALL, Inc. *		57,264		467,847
SPSS, Inc. *		17,074		662,130
StarTek, Inc. *		300		2,763
SumTotal Systems, Inc. *		200		834
Sybase, Inc. *		75,340		1,981,442
Synopsys, Inc. *		77,842		1,767,792
TechTeam Global, Inc. *		4,670		42,263
TIBCO Software, Inc. *		134,490		960,258
TSR, Inc.		3,200		13,440
United Online, Inc.		57,106		603,039
Vignette Corp. *		24,460		323,117

				17,088,266
Technology Hardware & Equipment 7.7%

Aetrium, Inc. *		1,160		4,559
Allied Motion Technologies, Inc. *		4,871		23,088
Arrow Electronics, Inc. *		53,106		1,787,017
Astro-Med, Inc.		3,420		30,609
Avnet, Inc. *		74,700		2,444,931
AVX Corp.		45,095		577,667
Black Box Corp.		13,172		406,356
Brocade Communications Systems, Inc. *		207,592		1,515,422
Coherent, Inc. *		591		16,483
Communications Systems, Inc.		7,690		82,821
CTS Corp.		28,380		303,666
Digi International, Inc. *		24,077		277,849
Electro Scientific Industries, Inc. *		25,000		412,000
Electronics for Imaging, Inc. *		5,501		82,075
Emulex Corp. *		63,230		1,026,855
Gerber Scientific, Inc. *		18,149		161,345
Harmonic, Inc. *		70,200		533,520
Harris Corp.		1,035		50,229
Hauppauge Digital, Inc. *		4,772		16,034
Insight Enterprises, Inc. *		33,402		584,535
IntriCon Corp. *		4,000		31,960
Itron, Inc. *		8,343		752,789
Key Tronic Corp. *		700		1,813
Measurement Specialties, Inc. *		4,801		83,873
Mesa Laboratories, Inc.		100		2,240
MOCON, Inc.		4,900		55,272
MTS Systems Corp.		2,640		85,166
NETGEAR, Inc. *		3,500		69,825
Network Equipment Technologies, Inc. *		22,100		145,197
O.I. Corp.		1,200		14,160
Oplink Communications, Inc. *		8,400		74,508
Optical Cable Corp. *		200		1,000
OSI Systems, Inc. *		14,500		333,790
PC Connection, Inc. *		2,500		19,800
PC-Tel, Inc. *		7,473		50,816
Schmitt Industries, Inc. *		769		4,576
Soapstone Networks, Inc.		6,960		49,834
Spectrum Control, Inc. *		11,800		99,828
SYNNEX Corp. *		3,700		78,514
Technitrol, Inc.		25,790		596,523
TTM Technologies, Inc. *		29,960		339,147
ViaSat, Inc. *		3,944		85,664
Vicon Industries, Inc. *		3,700		18,500
Vishay Intertechnology, Inc. *		122,400		1,108,944
Western Digital Corp. *		17,650		477,256
Zones, Inc. *		9,526		78,208
Zygo Corp. *		17,250		214,590

				15,210,854
Telecommunication Services 1.3%

Atlantic Tele-Network, Inc.		7,150		241,884
CenturyTel, Inc.		52,090		1,731,472
D&E Communications, Inc.		13,595		120,996
Gilat Satellite Networks Ltd. *		32,999		357,379
HickoryTech Corp.		1,740		14,216
Premiere Global Services, Inc. *		4,260		61,088
USA Mobility, Inc. *		212		1,514

				2,528,549
Transportation 2.5%

Air T., Inc.		2,900		27,898
B & H Ocean Carriers Ltd. *		1,430		14,908
C.H. Robinson Worldwide, Inc.		26,745		1,454,928
Genco Shipping & Trading Ltd.		3,570		201,455
Kansas City Southern *		4,641		186,151
Northwest Airlines Corp. *		660		5,933
Park-Ohio Holdings Corp. *		4,200		65,982
Pinnacle Airlines Corp. *		15,200		132,696
Republic Airways Holdings, Inc. *		21,328		461,964
SkyWest, Inc.		49,547		1,046,433
UAL Corp.		63,900		1,375,767

				4,974,115
Utilities 1.9%

ALLETE, Inc.		15,620		603,244
Artesian Resources Corp., Class A		645		11,952
Florida Public Utilities Co.		1,800		20,070
Great Plains Energy, Inc.		9,480		233,682
MDU Resources Group, Inc.		79,868		1,960,759
Middlesex Water Co.		590		10,714
NorthWestern Corp.		9,800		238,826
Reliant Energy, Inc. *		11,017		260,552
Southern Union Co.		1,730		40,257
The Laclede Group, Inc.		1,850		65,916
Unisource Energy Corp.		1,160		25,822
Unitil Corp.		1,100		29,645
WGL Holdings, Inc.		4,730		151,644

				3,653,083

Total Common Stock (Cost $185,348,950)				190,396,715

See financial notes.

48 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 2.8% of net assets
Repurchase Agreement 2.8%

Custodian Trust Company, dated 03/31/08, due 04/01/08 at 1.70% with a maturity value of $5,461,772 (fully collateralized by U.S. Treasury Bond with a value of $5,621,591)		5,461,514		5,461,514

Total Short-Term Investment (Cost $5,461,514)				5,461,514


End of Investments.

At 03/31/08, the tax basis cost of the fund’s investments was $192,150,604 and the unrealized appreciation and depreciation were $21,775,360 and ($18,067,735), respectively, with a net unrealized appreciation of $3,707,625.


*	Non-income producing security.
(a)	All or a portion of these securities are pledged as collateral for securities sold short. The market value of these pledged securities is $125,686,897.


	Number of		Value
Security	Shares		($)
Short Sales 93.6% of net assets
Automobiles & Components 0.2%

ArvinMeritor, Inc.		14,960		187,150
Coachmen Industries, Inc.		2,980		8,880
Modine Manufacturing Co.		16,976		245,982

				442,012
Banks 4.0%

BNCCORP, Inc. *		800		10,160
Central Pacific Financial Corp.		19,700		371,345
First Midwest Bancorp, Inc.		34,000		944,180
Flagstar Bancorp, Inc.		33,981		245,343
Kearny Financial Corp.		17,186		188,187
New York Community Bancorp, Inc.		116,841		2,128,843
Popular, Inc.		140,521		1,638,475
Provident Bankshares Corp.		24,400		262,056
Taylor Capital Group, Inc.		370		6,075
TCF Financial Corp.		83,100		1,489,152
TIB Financial Corp.		2,010		16,080
Wauwatosa Holdings, Inc. *		10,179		121,130
Zions Bancorp		12,322		561,267

				7,982,293
Capital Goods 2.3%

Accuride Corp. *		19,290		157,792
Blount International, Inc. *		28,000		346,360
Builders FirstSource, Inc. *		4,880		35,429
Commercial Vehicle Group, Inc. *		20,825		206,376
DynCorp International, Inc., Class A *		224		3,736
Energy Focus, Inc. *		12,600		31,374
ESCO Technologies, Inc. *		8,661		344,015
Flanders Corp. *		22,600		137,634
FreightCar America, Inc.		9,100		312,130
GenCorp, Inc. *		34,200		351,918
Graco, Inc.		19,867		720,378
H&E Equipment Services, Inc. *		1,616		20,313
Masco Corp.		13,500		267,705
Omega Flex, Inc.		8,018		134,622
Plug Power, Inc. *		36,700		114,137
Power-One, Inc. *		68,360		219,436
Sparton Corp. *		9,960		41,035
The Allied Defense Group, Inc. *		6,840		40,493
WESCO International, Inc. *		27,860		1,016,611

				4,501,494
Commercial Services & Supplies 1.3%

Acco Brands Corp. *		10,290		139,635
American Reprographics Co. *		22,000		326,480
Cenveo, Inc. *		37,575		393,035
Mac-Gray Corp. *		10,310		117,740
TeleTech Holdings, Inc. *		9,496		213,280
The Corporate Executive Board Co.		31,900		1,291,312
TRC Cos., Inc. *		16,800		73,416
WCA Waste Corp. *		4,960		30,157

				2,585,055
Consumer Durables & Apparel 7.3%

Arctic Cat, Inc.		10,518		76,676
Ashworth, Inc. *		14,702		42,048
Brunswick Corp.		72,500		1,157,825
California Coastal Communities, Inc. *		8,810		42,640
Centex Corp.		63,794		1,544,453
Chromcraft Revington, Inc. *		5,600		24,640
D.R. Horton, Inc.		4,843		76,277
Furniture Brands International, Inc.		27,890		326,313
K-Swiss, Inc., Class A		24,100		381,262
KB Home		53,500		1,323,055
Lennar Corp., Class A		22,000		413,820
M.D.C. Holdings, Inc.		31,810		1,392,960
MarineMax, Inc. *		12,750		158,865
Newell Rubbermaid, Inc.		86,477		1,977,729
Pulte Homes, Inc.		122,519		1,782,652
R. G. Barry Corp. *		8,080		63,994
Tandy Brands Accessories, Inc.		4,101		19,849
The Black & Decker Corp.		28,610		1,891,121
The Ryland Group, Inc.		33,070		1,087,672
Toll Brothers, Inc. *		23,480		551,310

				14,335,161
Consumer Services 3.1%

Ambassadors Groups, Inc.		7,891		149,061
Century Casinos, Inc. *		200		648
Choice Hotels International, Inc.		23,100		787,941
Domino’s Pizza, Inc.		16,260		219,347
Gaylord Entertainment Co. *		5,590		169,321
INVESTools, Inc. *		31,830		349,812
Las Vegas Sands Corp. *		720		53,021
McCormick & Schmick’s Seafood Restaurants, Inc. *		10,420		121,393
Papa John’s International, Inc. *		3,906		94,564
Pinnacle Entertainment, Inc. *		29,100		372,480
Ruby Tuesday, Inc.		36,620		274,650
Ruth’s Chris Steak House, Inc. *		5,900		40,769

See financial notes.

Laudus U.S. Equity Funds 49

Laudus Rosenberg Long/ Short Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Scientific Games Corp., Class A *		41,038		866,312
Star Buffet, Inc.		1,300		9,321
Texas Roadhouse, Inc., Class A *		8,174		80,105
The Cheesecake Factory, Inc. *		49,200		1,072,068
The Steak n Shake Co. *		8,970		70,594
Universal Technical Institute, Inc. *		3,865		45,337
Wendy’s International, Inc.		56,391		1,300,377

				6,077,121
Diversified Financials 2.3%

Asset Acceptance Capital Corp.		6,808		65,561
Cash Systems, Inc. *		13,890		7,220
Cohen & Steers, Inc.		12,500		331,125
ETRADE Financial Corp.		152,331		587,998
Jefferies Group, Inc.		78,517		1,266,479
LaBranche & Co., Inc. *		39,246		170,720
Moody’s Corp.		56,500		1,967,895
NewStar Financial, Inc. *		440		2,279
Resource America, Inc., Class A		9,560		90,342
Thomas Weisel Partners Group, Inc. *		4,903		32,458
World Acceptance Corp. *		2,653		84,498

				4,606,575
Energy 5.4%

Alon USA Energy, Inc.		10,140		154,229
BJ Services Co.		65,483		1,866,920
CREDO Petroleum Corp. *		3,250		32,370
Delek US Holdings, Inc.		500		6,335
Energy Partners Ltd. *		21,500		203,605
Frontier Oil Corp.		24,437		666,153
Grey Wolf, Inc. *		109,500		742,410
Hercules Offshore, Inc. *		54,281		1,363,539
Holly Corp.		14,160		614,685
Nabors Industries Ltd. *		6,640		224,233
Parallel Petroleum Corp. *		32,900		643,853
Patterson-UTI Energy, Inc.		55,137		1,443,487
RPC, Inc.		9,757		148,209
Tesoro Corp.		51,934		1,558,020
TETRA Technologies, Inc. *		49,660		786,614
Venoco, Inc. *		300		3,486
Western Refining, Inc.		19,100		257,277

				10,715,425
Food & Staples Retailing 0.8%

The Pantry, Inc. *		21,700		457,436
Whole Foods Market, Inc.		35,080		1,156,588

				1,614,024
Food, Beverage & Tobacco 1.4%

Cuisine Solutions, Inc. *		6,950		20,641
Dean Foods Co. *		25,542		513,139
The Hershey Co.		56,600		2,132,122

				2,665,902
Health Care Equipment & Services 6.0%

Accuray, Inc. *		13,500		105,435
Advanced Medical Optics, Inc. *		51,600		1,047,480
Advocat, Inc. *		1,100		11,968
Align Technology, Inc. *		37,178		413,048
Allscripts Healthcare Solutions, Inc. *		38,600		398,352
Bovie Medical Corp. *		6,470		41,408
Brookdale Senior Living, Inc.		100		2,390
CAS Medical Systems, Inc. *		800		3,440
Clinical Data, Inc. *		14,986		277,091
Community Health Systems, Inc. *		49,700		1,668,429
Computer Programs & Systems, Inc.		9,100		190,190
Conceptus, Inc. *		3,200		59,392
Emeritus Corp. *		9,940		207,348
Endologix, Inc. *		28,030		83,810
ev3, Inc. *		33,600		273,504
Gen-Probe, Inc. *		14,680		707,576
Health Management Associates, Inc., Class A *		89,322		472,513
Immucor, Inc. *		1,010		21,554
LHC Group, Inc. *		5,321		89,393
Micrus Endovascular Corp. *		1,991		24,609
NMT Medical, Inc. *		8,660		33,601
NxStage Medical, Inc. *		14,835		64,087
Omnicare, Inc.		24,968		453,419
Palomar Medical Technologies, Inc. *		14,732		222,453
Patterson Cos., Inc. *		13,984		507,619
PDI, Inc. *		3,567		30,034
ResMed, Inc. *		9,310		392,696
Rockwell Medical Technologies, Inc. *		9,130		55,876
STAAR Surgical Co. *		8,486		21,809
Stereotaxis, Inc. *		1,000		5,920
Sunrise Senior Living, Inc. *		17,480		389,454
Tenet Healthcare Corp. *		288,400		1,632,344
The Spectranetics Corp. *		22,180		185,425
VCA Antech, Inc. *		49,481		1,353,305
Vital Images, Inc. *		13,600		201,552
Volcano Corp. *		20,480		256,000

				11,904,524
Household & Personal Products 0.3%

Central Garden & Pet Co. *		88		406
NBTY, Inc. *		14,807		443,469
Reliv’ International, Inc.		13,000		86,450

				530,325
Insurance 5.6%

American Equity Investment Life Holding Co.		40,364		374,578
Argo Group International Holdings Ltd. *		19,700		699,744
Assured Guaranty Ltd.		42,166		1,001,021
Brown & Brown, Inc.		91,300		1,586,794
Conseco, Inc. *		119,892		1,222,899
eHealth, Inc. *		5,380		118,737
Employers Holdings, Inc.		22,530		417,706
Independence Holding Co.		2,900		34,568
LandAmerica Financial Group, Inc.		12,200		481,534
Markel Corp. *		3,756		1,652,527
Old Republic International Corp.		125,800		1,624,078
Philadelphia Consolidated Holding Corp. *		22,221		715,516

See financial notes.

50 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund


	Number of		Value
Security	Shares		($)
SAFECO Corp.		4,074		178,767
Stewart Information Services Corp.		12,800		358,272
Willis Group Holdings Ltd.		15,230		511,880

				10,978,621
Materials 2.6%

ADA-ES, Inc. *		5,400		45,198
Apex Silver Mines Ltd. *		2,938		35,609
Deltic Timber Corp.		7,555		420,813
Headwaters, Inc. *		3,191		42,089
Kronos Worldwide, Inc.		2,170		52,405
Louisiana-Pacific Corp.		94,620		868,612
Mod-Pac Corp. *		300		1,515
Nanophase Technologies Corp. *		7,600		24,624
Pactiv Corp. *		66,470		1,742,179
Smurfit-Stone Container Corp. *		154,780		1,191,806
Symyx Technologies, Inc. *		880		6,600
Titanium Metals Corp.		47,000		707,350

				5,138,800
Media 1.7%

4Kids Entertainment, Inc. *		11,240		109,815
Arbitron, Inc.		10,250		442,390
Beasley Broadcast Group, Inc., Class A		8,862		31,549
Cinemark Holdings, Inc.		12,460		159,364
CKX, Inc. *		4,364		41,545
Clear Channel Outdoor Holdings, Inc., Class A *		12,030		228,690
Lamar Advertising Co., Class A *		43,013		1,545,457
LodgeNet Interactive Corp. *		16,580		100,972
R.H. Donnelley Corp. *		29,188		147,691
RCN Corp. *		13,060		146,011
Rentrak Corp. *		3,902		47,136
The E.W. Scripps Co., Class A		7,220		303,312
The Interpublic Group of Cos., Inc. *		200		1,682
Virgin Media, Inc.		1,009		14,197

				3,319,811
Pharmaceuticals & Biotechnology 7.1%

Acadia Pharmaceuticals, Inc. *		23,010		208,471
Affymetrix, Inc. *		14,893		259,287
Altus Pharmaceuticals, Inc. *		22,260		101,283
AMAG Pharmaceuticals, Inc. *		10,779		435,795
Amylin Pharmaceuticals, Inc. *		66,068		1,929,846
Arena Pharmaceuticals, Inc. *		58,700		401,508
ARIAD Pharmaceuticals, Inc. *		42,200		142,214
ArQule, Inc. *		23,819		101,945
Array BioPharma, Inc. *		42,506		297,967
Barr Pharmaceuticals, Inc. *		2,050		99,035
BioCryst Pharmaceuticals, Inc. *		1,220		5,624
BioSphere Medical, Inc. *		19,597		89,950
Caliper Life Sciences, Inc. *		2,700		10,125
Cepheid, Inc. *		19,200		468,288
CombiMatrix Corp. *		5,300		50,403
CV Therapeutics, Inc. *		42,450		302,668
Cypress Bioscience, Inc. *		18,300		131,028
Dyax Corp. *		7,141		33,634
Enzo Biochem, Inc. *		23,600		214,524
Exelixis, Inc. *		83,970		583,592
Geron Corp. *		44,596		217,628
Human Genome Sciences, Inc. *		117,350		691,192
Incyte Corp. *		18,700		196,537
InterMune, Inc. *		21,270		310,117
Keryx Biopharmaceuticals, Inc. *		36,770		22,062
Maxygen, Inc. *		19,300		124,678
Medarex, Inc. *		85,752		758,905
Metabolix, Inc. *		10,510		115,084
Momenta Pharmaceuticals, Inc. *		3,027		33,085
Nektar Therapeutics *		4,618		32,049
Neurocrine Biosciences, Inc. *		35,400		191,160
Omrix Biopharmaceuticals, Inc. *		9,670		135,380
PDL BioPharma, Inc. *		78,180		827,926
Penwest Pharmaceuticals Co. *		16,735		43,511
Pharmacopeia, Inc. *		1,420		5,226
Progenics Pharmaceuticals, Inc. *		20,054		130,953
Regeneron Pharmaceuticals, Inc. *		21,831		418,937
Senomyx, Inc. *		25,580		150,922
Sepracor, Inc. *		34,304		669,614
The Medicines Co. *		24,569		496,294
Valeant Pharmaceuticals International *		3,760		48,241
Vertex Pharmaceuticals, Inc. *		84,535		2,019,541
XenoPort, Inc. *		6,210		251,319
ZymoGenetics, Inc. *		31,927		312,885

				14,070,433
Real Estate 17.6%

Alexandria Real Estate Equities, Inc.		200		18,544
Apartment Investment & Management Co., Class A		58,595		2,098,287
AvalonBay Communities, Inc.		20,880		2,015,338
Boston Properties, Inc.		24,740		2,277,812
Brandywine Realty Trust		14,909		252,857
BRE Properties, Inc.		39,709		1,809,142
Camden Property Trust		42,800		2,148,560
CB Richard Ellis Group, Inc., Class A *		99,720		2,157,941
Corporate Office Properties Trust		26,870		903,101
Developers Diversified Realty Corp.		54,200		2,269,896
Duke Realty Corp.		5,527		126,071
EastGroup Properties, Inc.		4,960		230,442
Essex Property Trust, Inc.		18,700		2,131,426
Forest City Enterprises, Inc., Class A		11,780		433,504
General Growth Properties, Inc.		10		382
Grubb & Ellis Co.		25,420		174,635
Healthcare Realty Trust, Inc.		25,757		673,545
Jones Lang LaSalle, Inc.		4,883		377,651
Kilroy Realty Corp.		28,200		1,384,902
Liberty Property Trust		49,000		1,524,390
Mack-Cali Realty Corp.		36,656		1,308,986
Plum Creek Timber Co., Inc.		52,920		2,153,844
PS Business Parks, Inc.		10,800		560,520
Public Storage		2,900		256,998
Regency Centers Corp.		35,170		2,277,609
Sun Communities, Inc.		603		12,361
Tejon Ranch Co. *		4,980		185,854
The Macerich Co.		30,860		2,168,532

See financial notes.

Laudus U.S. Equity Funds 51

Laudus Rosenberg Long/ Short Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Thomas Properties Group, Inc.		14,907		130,883
Ventas, Inc.		52,351		2,351,083
Washington Real Estate Investment Trust		10,101		337,575

				34,752,671
Retailing 3.2%

American Eagle Outfitters, Inc.		1,500		26,265
Borders Group, Inc.		56,400		331,068
Casual Male Retail Group, Inc. *		13,828		58,078
Charming Shoppes, Inc. *		35,700		172,431
Chico’s FAS, Inc. *		82,683		587,876
Coldwater Creek, Inc. *		40,800		206,040
Collective Brands, Inc. *		15,433		187,048
Core-Mark Holding Co., Inc. *		5,820		167,267
Dillard’s, Inc., Class A		40,100		690,121
Eddie Bauer Holdings, Inc. *		4,171		16,225
Hibbett Sports, Inc. *		21,700		335,048
Limited Brands, Inc.		11,500		196,650
Office Depot, Inc. *		57,359		633,817
Pacific Sunwear of California, Inc. *		49,807		628,066
Pier 1 Imports, Inc. *		73,700		462,836
Pomeroy IT Solutions, Inc. *		9,511		52,596
Ross Stores, Inc.		9,970		298,701
Saks, Inc. *		50,282		627,016
Stein Mart, Inc.		22,700		127,574
The Cato Corp., Class A		600		8,964
The Children’s Place Retail Stores, Inc. *		15,119		371,323
The Dress Barn, Inc. *		6,600		85,404
The Pep Boys — Manny, Moe & Jack		1,360		13,546

				6,283,960
Semiconductors & Semiconductor Equipment 6.8%

Advanced Micro Devices, Inc. *		285,740		1,683,009
Altera Corp.		86,500		1,594,195
Cypress Semiconductor Corp. *		87,728		2,071,258
FormFactor, Inc. *		32,400		618,840
Ikanos Communications, Inc. *		28,800		131,616
Microchip Technology, Inc.		69,100		2,261,643
National Semiconductor Corp.		52,120		954,838
ON Semiconductor Corp. *		107,552		610,895
Photronics, Inc. *		28,447		271,669
Rambus, Inc. *		81,915		1,909,439
Rudolph Technologies, Inc. *		11,400		111,378
Silicon Laboratories, Inc. *		35,089		1,106,707
Tessera Technologies, Inc. *		2,118		44,054

				13,369,541
Software & Services 7.5%

Ansoft Corp. *		6,630		202,348
Bitstream, Inc., Class A *		9,800		54,684
Blackboard, Inc. *		8,600		286,638
Callidus Software, Inc. *		12,048		57,951
Citrix Systems, Inc. *		60,840		1,784,437
CNET Networks, Inc. *		101,800		722,780
Cognizant Technology Solutions Corp., Class A *		20,133		580,434
DealerTrack Holdings, Inc. *		25,000		505,500
Digital River, Inc. *		23,237		719,650
eLoyalty Corp. *		2,740		22,249
Equinix, Inc. *		21,700		1,442,833
Euronet Worldwide, Inc. *		1,200		23,112
Fidelity National Information Services, Inc.		540		20,595
Global Cash Access Holdings, Inc. *		32,660		191,388
Global Payments, Inc.		700		28,952
Interactive Intelligence, Inc. *		10,264		120,807
Internet Capital Group, Inc. *		25,900		271,173
Iron Mountain, Inc. *		60,405		1,597,108
j2 Global Communications, Inc. *		300		6,696
Liquidity Services, Inc. *		10,900		87,200
LoopNet, Inc. *		6,000		76,200
MicroStrategy, Inc., Class A *		3,200		236,768
MSC.Software Corp. *		32,385		420,681
Parametric Technology Corp. *		76,100		1,216,078
Rainmaker Systems, Inc. *		3,050		9,912
RealNetworks, Inc. *		64,742		370,972
Red Hat, Inc. *		93,430		1,718,178
SAVVIS, Inc. *		19,399		315,622
Sonic Solutions *		10,312		99,511
SupportSoft, Inc. *		12,600		41,580
TheStreet.com, Inc.		9,279		74,974
THQ, Inc. *		45,400		989,720
Websense, Inc. *		29,564		554,325

				14,851,056
Technology Hardware & Equipment 3.2%

Acacia Research-Acacia Technologies *		24,500		140,875
Acme Packet, Inc. *		11,270		90,047
ADTRAN, Inc.		5,010		92,685
Brightpoint, Inc. *		43,600		364,496
Ciprico, Inc. *		1,420		2,130
Cogent, Inc. *		34,380		324,203
Comarco, Inc.		7,730		28,833
Comtech Group, Inc. *		7,300		78,767
Daktronics, Inc.		6,740		120,713
F5 Networks, Inc. *		29,684		539,358
InterDigital, Inc. *		25,355		502,283
Intevac, Inc. *		15,858		205,361
Lexmark International, Inc., Class A *		49,790		1,529,549
LoJack Corp. *		14,840		187,578
Merix Corp. *		20,000		40,800
Metalink Ltd. *		1,900		3,458
Nam Tai Electronics, Inc.		31,800		305,280
Napco Security Systems, Inc. *		12,570		61,844
NumereX Corp., Class A *		12,975		90,825
Occam Networks, Inc. *		12,961		70,508
Photon Dynamics, Inc. *		9,320		98,792
Planar Systems, Inc. *		19,000		76,190
Powerwave Technologies, Inc. *		105,670		269,459
Riverbed Technology, Inc. *		2,560		38,042
Tellabs, Inc. *		165,363		901,228
Vyyo, Inc. *		1,428		585
X-Rite, Inc. *		23,300		139,101
Zebra Technologies Corp., Class A *		2,668		88,898

				6,391,888

See financial notes.

52 Laudus U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund


	Number of		Value
Security	Shares		($)
Telecommunication Services 0.2%

Cbeyond, Inc. *		7,420		139,422
Citizens Communications Co.		21,520		225,745
GoAmerica, Inc. *		495		3,217
Metropcs Communications, Inc. *		4,190		71,230

				439,614
Transportation 2.6%

AirTran Holdings, Inc. *		58,300		384,780
AMR Corp. *		117,600		1,060,752
Celadon Group, Inc. *		20,181		195,352
Expeditors International of Washington, Inc.		33,141		1,497,310
Frozen Food Express Industries, Inc.		16,410		130,296
Hertz Global Holdings, Inc. *		39,862		480,736
JetBlue Airways Corp. *		98,400		570,720
P.A.M. Transportation Services, Inc. *		3,573		55,596
YRC Worldwide, Inc. *		51,402		674,394

				5,049,936
Utilities 1.1%

Allegheny Energy, Inc.		3,130		158,065
CMS Energy Corp.		120,500		1,631,570
Environmental Power Corp. *		10,120		41,998
PNM Resources, Inc.		31,870		397,419
Pure Cycle Corp. *		1,090		6,071

				2,235,123

Total Short Sales (Proceeds $235,881,827)				184,841,365

Rights 0.0% of net assets
Real Estate 0.0%

FX Real Estate & Entertainment, Inc. *		585		47

Total Rights (Proceed $—)				47


End of short sale positions.


*	Non-income producing security

See financial notes.

Laudus U.S. Equity Funds 53

Financial Statements

Statement of Assets and Liabilities as of 3/31/08


			Laudus Rosenberg			Laudus Rosenberg			Laudus Rosenberg
			U.S. Large			U.S. Large			U.S. Large
			Capitalization			Capitalization			Capitalization
			Fund			Growth Fund			Value Fund

Assets:
Total investments, at cost			$	92,836,135		$	48,922,221		$	5,957,094

Investments, at value¹			$	92,120,930		$	54,201,935		$	6,246,814
Repurchase agreements, at amortized cost				1,798,000			780,000			58,000

		Total Investments		93,918,930			54,981,935			6,304,814

Deposits with broker and custodian bank for securities sold short				—			—			—
Collateral invested for securities on loan				—			9,625,633			—
Cash				795			704			1,179
Dividends and interest receivable				124,995			46,562			9,697
Receivable for fund shares sold				55,294			454,588			829
Receivable for securities sold short				—			—			—
Receivable for investments sold				1,269,275			427,460			—
Receivable from Manager				2,958			—			—
Prepaid expenses				877			639			115

		Total Assets		95,373,124			65,537,521			6,316,634

Liabilities:
Securities sold short, proceeds			$	—		$	—		$	—

Securities sold short at value				—			—			—
Payable to custodian							—			—
Payable for fund shares repurchased				21,745			484			—
Payable for cover securities sold short				—			—			—
Payable for investments purchased				2,492,108			378,504			58,587
Collateral held for securities on loan				—			9,625,633			—
Accrued expenses and other liabilities:
	Trustees’ retirement plan			4,631			1,180			152
	Dividend payable on securities sold short			—			—			—
	Manager fees			—			—			—
	Transfer agent fees			3,221			2,786			2,493
	Distribution and shareholder service fees			3,141			751			100
	Administration and fund accounting fee			3,346			3,588			3,120
	Other accrued expenses			44,641			39,105			33,705

		Total Liabilities		2,572,833			10,052,031			98,157

Net Assets			$	92,800,291		$	55,485,490		$	6,218,477

Net Assets Consist of:
Capital			$	95,385,195		$	49,406,533		$	5,883,767
Undistributed net investment income/Distributions in excess of net investment income				224,733			37,074			22,576
Accumulated net realized gains/(losses) on investments				(3,892,432	)		(17,831	)		(35,586	)
Net unrealized appreciation on investments				1,082,795			6,059,714			347,720

Net Assets			$	92,800,291		$	55,485,490		$	6,218,477

Institutional Shares:
Net Assets			$	83,783,339		$	52,681,257		$	5,764,570
Shares Outstanding				8,073,585			5,766,064			550,547
Net Asset Value, Offering Price and Redemption Price per Share			$	10.38		$	9.14		$	10.47

Adviser Shares:
Net Assets			$	—		$	—		$	—
Shares Outstanding				—			—			—
Net Asset Value, Offering Price and Redemption Price per Share			$	—		$	—		$	—

Investor Shares:
Net Assets			$	9,016,952		$	2,804,233		$	453,907
Shares Outstanding				868,322			305,402			43,448
Net Asset Value, Offering Price and Redemption Price per Share			$	10.38		$	9.18		$	10.45


¹	Includes securities on loan for Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Discovery Fund, and Laudus Rosenberg U.S. Small Capitalization Fund of $9,410,133, $243,929,093, and $244,590,493 respectively.

See the accompanying notes to the financial statements.

54 Laudus U.S. Equity Funds

Financial Statements—Statement of Assets and Liabilities continued


			Laudus Rosenberg			Laudus
Laudus Rosenberg			U.S. Small			Rosenberg
U.S. Discovery			Capitalization			Long/Short
Fund			Fund			Equity Fund

$	709,133,061		$	552,270,688		$	190,810,464

$	733,788,286		$	604,972,639		$	190,396,715
	10,796,000			—			5,461,514

	744,584,286			604,972,639			195,858,229

	—			—			183,925,872
	250,095,950			251,007,699			—
				—			—
	741,442			620,473			392,567
	1,224,928			686,343			662,396
	—			—			4,873,834
	11,578,405			43,465,198			2,349,007
	—			—			—
	11,329			16,135			3,339

	1,008,236,340			900,768,487			388,065,244

$	—		$	—		$	235,881,827

	—			—			184,841,412
	1,201,386			20,307,613			3,362
	8,677,558			1,206,322			175,039
	—			—			4,663,593
	12,199,119			15,069,461			430,764
	250,095,950			251,007,699			—
	37,982			116,814			14,469
	—			—			277,861
	55,103			47,076			23,549
	12,713			20,536			10,407
	113,998			156,289			14,624
	7,433			7,215			5,695
	110,403			110,836			73,029

	272,511,645			288,049,861			190,533,804

$	735,724,695		$	612,718,626		$	197,531,440

$	708,797,654		$	563,160,074		$	208,574,360
	778,433			65,175			257,125
	(9,302,617	)		(3,208,574	)		(67,388,225	)
	35,451,225			52,701,951			56,088,180

$	735,724,695		$	612,718,626		$	197,531,440

$	566,054,934		$	393,939,141		$	182,817,211
	34,878,978			43,612,300			17,636,497
$	16.23		$	9.03		$	10.37

$	—		$	34,799,073		$	—
	—			3,947,313			—
$	—		$	8.82		$	—

$	169,669,761		$	183,980,412		$	14,714,229
	10,624,133			21,145,360			1,429,131
$	15.97		$	8.70		$	10.30

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 55

Financial Statements

Statement of Operations for the year ended 3/31/08


			Laudus Rosenberg			Laudus Rosenberg			Laudus Rosenberg
			U.S. Large			U.S. Large			U.S. Large
			Capitalization			Capitalization			Capitalization
			Fund			Growth Fund			Value Fund

Investment Income:
	Dividends¹		$	1,814,048		$	724,352		$	153,941
	Interest			43,686			25,604			1,912
	Securities lending			—			21,135			—

	Total investment income			1,857,734			771,091			155,853

Expenses:
	Manager fees			786,790			523,784			50,238
	Distribution and shareholder service fees (Investor Shares)			24,914			6,816			1,319
	Service fees (Adviser Shares)			—			—			—
	Professional fees			41,488			37,557			50,080
	Custodian fees			16,843			12,855			3,490
	Overdraft charges			23,181			8,050			1,443
	Fund accounting fees and administration fees			42,534			46,303			39,106
	Registration and filing fees			33,091			29,056			21,573
	Sub-accounting fees (Investor Shares)			13,425			3,362			820
	Shareholder report fee			9,261			5,146			485
	Transfer agent fees			21,523			19,072			17,386
	Trustees’ fees			9,470			9,119			7,719
	Recouped by manager			59,654			3,572			—
	Dividend expense for securities sold short			—			—			—
	Other expenses			6,624			4,978			1,219

		Total expenses before custody credits and waivers/reimbursements		1,088,798			709,670			194,878
		Less custody credits		(227	)		(137	)		(28	)
		Less expenses waived/reimbursed by the Manager²		(7,331	)		(2,046	)		(125,556	)

		Net expenses		1,081,240			707,487			69,294

	Net investment income/(loss)			776,494			63,604			86,559

Realized and Unrealized Gains/(Losses) on Investments
	Net realized gains/(losses) on securities and foreign currency transactions			5,283,353			5,183,102			223,229
	Net realized gains/(losses) on securities sold short			—			—			—
	Change in unrealized appreciation/(depreciation) on investments			(11,039,541	)		(1,983,838	)		(653,994	)

	Net realized and unrealized gains/(losses) on investments			(5,756,188	)		3,199,264			(430,765	)

Change in Net Assets Resulting from Operations			$	(4,979,694	)	$	3,262,868		$	(344,206	)


¹	Net of foreign withholding tax for Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, and Laudus Rosenberg Long/ Short Equity Fund which was $73, $36 and $154, respectively.

²	Includes reimbursement of sub-accounting fees on Investor Shares.

See the accompanying notes to the financial statements.

56 Laudus U.S. Equity Funds

Financial Statements—Statement of Operations continued


			Laudus Rosenberg
Laudus Rosenberg			U.S. Small			Laudus Rosenberg
U.S. Discovery			Capitalization			Long/Short
Fund			Fund			Equity Fund

$	9,445,933		$	8,930,245		$	2,846,105
	238,656			187,991			11,509,288
	405,988			383,635			—

	10,090,577			9,501,871			14,355,393

	7,999,076			7,860,015			4,096,280
	506,558			593,285			98,223
	—			107,475			—
	61,554			61,811			51,572
	68,759			54,010			77,509
	40,931			64,142			—
	82,927			77,967			72,231
	35,776			34,287			25,951
	237,080			240,293			36,260
	71,308			—			37,728
	73,769			119,057			60,824
	25,044			24,138			12,787
	28,690			—			3,362
	—			—			3,925,008
	56,655			120,404			18,863

	9,288,127			9,356,884			8,516,598
	(2,014	)		(7,183	)		—
	—			(30,174	)		—

	9,286,113			9,319,527			8,516,598

	804,464			182,344			5,838,795

	37,108,290			82,186,761			14,628,632
	—			—			(23,241,906	)
	(131,953,681	)		(190,015,225	)		14,263

	(94,845,391	)		(107,828,464	)		(8,599,011	)

$	(94,040,927	)	$	(107,646,120	)	$	(2,760,216	)

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 57

Financial Statements

Statement of Changes in Net Assets


			Laudus Rosenberg						Laudus Rosenberg
			U.S. Large						U.S. Large
			Capitalization Fund						Capitalization Growth Fund

			Year Ended			Year Ended			Year Ended			Year Ended
			March 31,			March 31,			March 31,			March 31,
			2008			2007			2008			2007

Operations:
	Net investment income		$	776,494		$	751,307		$	63,604		$	167,446
	Net realized gains/(losses) from investments			5,283,353			6,522,821			5,183,102			(1,019,951	)
	Change in unrealized appreciation/(depreciation) from investments			(11,039,541	)		3,731,397			(1,983,838	)		4,581,034

		Change in net assets resulting from operations		(4,979,694	)		11,005,525			3,262,868			3,728,529

Distributions to Shareholders from:
	Net investment income
		Institutional Shares		(668,782	)		(668,604	)		(87,957	)		(135,787	)
		Adviser Shares		—			—			—			—
		Investor Shares		(45,709	)		(40,997	)		—			—

				(714,491	)		(709,601	)		(87,957	)		(135,787	)

	Net realized gains on investments
		Institutional Shares		(13,458,529	)		(3,045,475	)		(2,948,584	)		—
		Adviser Shares		—			—			—			—
		Investor Shares		(1,538,942	)		(320,576	)		(159,976	)		—

				(14,997,471	)		(3,366,051	)		(3,108,560	)		—

		Change in net assets resulting from distributions		(15,711,962	)		(4,075,652	)		(3,196,517	)		(135,787	)

Capital Transactions:
	Proceeds from shares issued
		Institutional Shares		48,736,304			58,578,093			25,766,635			36,913,996
		Adviser Shares		—			—			—			—
		Investor Shares		2,518,064			2,449,618			1,466,020			1,064,127

				51,254,368			61,027,711			27,232,655			37,978,123

	Distributions reinvested
		Institutional Shares		13,078,824			2,813,571			2,457,436			54,198
		Adviser Shares		—			—			—			—
		Investor Shares		1,511,650			344,240			152,686			—

				14,590,474			3,157,811			2,610,122			54,198

	Value of shares redeemed
		Institutional Shares¹		(54,462,466	)		(27,058,789	)		(51,349,953	)		(9,389,918	)
		Adviser Shares		—			—			—			—
		Investor Shares		(2,884,976	)		(3,384,025	)		(796,543	)		(747,706	)

				(57,347,442	)		(30,442,814	)		(52,146,496	)		(10,137,624	)

		Change in net assets from capital transactions		8,497,400			33,742,708			(22,303,719	)		27,894,697

Change in net assets				(12,194,256	)		40,672,581			(22,237,368	)		31,487,439
Net Assets:
	Beginning of period		$	104,994,547		$	64,321,966		$	77,722,858		$	46,235,419

	End of period		$	92,800,291		$	104,994,547		$	55,485,490		$	77,722,858

Undistributed net investment income/Distributions in excess of net investment income			$	224,733		$	163,419		$	37,074		$	61,427


¹	Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Small Capitalization Fund included $33,136,950 for shares redeemed in-kind during the period ended March 31, 2008.

See the accompanying notes to the financial statements.

58 Laudus U.S. Equity Funds

Financial Statements—Statement of Changes in Net Assets continued


Laudus Rosenberg
U.S. Large						Laudus Rosenberg						Laudus Rosenberg						Laudus Rosenberg
Capitalization Value Fund						U.S. Discovery Fund						U.S. Small Capitalization Fund						Long/Short Equity Fund

Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
2008			2007			2008			2007			2008			2007			2008			2007

$	86,559		$	90,120		$	804,464		$	614,851		$	182,344		$	52,119		$	5,838,795		$	7,595,741
	223,229			667,997			37,108,290			42,825,956			82,186,761			150,336,455			(8,613,274	)		(20,334,104	)
	(653,994	)		206,286			(131,953,681	)		4,928,724			(190,015,225	)		(145,392,179	)		14,263			22,006,563

	(344,206	)		964,403			(94,040,927	)		48,369,531			(107,646,120	)		4,996,395			(2,760,216	)		9,268,200

	(79,412	)		(148,373	)		—			(1,053,017	)		(52,220	)		—			(6,504,002	)		(5,816,661	)
	—			—			—			—			—			—			—			—
	(4,658	)		(10,519	)		—			—			—			—			(560,827	)		(1,317,915	)

	(84,070	)		(158,892	)		—			(1,053,017	)		(52,220	)		—			(7,064,829	)		(7,134,576	)

	(721,640	)		(276,428	)		(49,870,890	)		(17,334,529	)		(86,858,222	)		(95,202,915	)		—			—
	—			—			—			—			(6,733,105	)		(5,940,043	)		—			—
	(57,870	)		(21,234	)		(15,189,189	)		(5,813,751	)		(37,650,467	)		(33,618,626	)		—			—

	(779,510	)		(297,662	)		(65,060,079	)		(23,148,280	)		(131,241,794	)		(134,761,584	)		—			—

	(863,580	)		(456,554	)		(65,060,079	)		(24,201,297	)		(131,294,014	)		(134,761,584	)		(7,064,829	)		(7,134,576	)

	320,163			321,271			148,548,635			168,801,668			71,884,130			118,380,094			76,300,683			145,201,890
	—			—			—			—			9,727,022			14,915,237			—			—
	243,213			702,787			43,513,918			71,671,762			34,760,049			59,760,279			15,207,733			29,892,979

	563,376			1,024,058			192,062,553			240,473,430			116,371,201			193,055,610			91,508,416			175,094,869

	790,081			419,345			48,369,515			17,849,454			79,563,111			88,113,447			5,834,792			5,200,711
	—			—			—			—			5,022,981			4,445,580			—			—
	59,887			28,972			14,899,234			5,684,793			30,996,893			27,639,151			390,128			1,166,200

	849,968			448,317			63,268,749			23,534,247			115,582,985			120,198,178			6,224,920			6,366,911

	(285,264	)		(1,857,508	)		(226,995,283	)		(164,345,008	)		(299,178,447	)		(334,677,200	)		(151,274,145	)		(80,914,601	)
	—			—			—			—			(16,603,866	)		(14,904,487	)		—			—
	(300,566	)		(363,352	)		(68,740,227	)		(146,485,470	)		(82,542,754	)		(96,464,540	)		(64,097,820	)		(29,975,740	)

	(585,830	)		(2,220,860	)		(295,735,510	)		(310,830,478	)		(398,325,067	)		(446,046,227	)		(215,371,965	)		(110,890,341	)

	827,514			(748,485	)		(40,404,208	)		(46,822,801	)		(166,370,881	)		(132,792,439	)		(117,638,629	)		70,571,439

	(380,272	)		(240,636	)		(199,505,214	)		(22,654,567	)		(405,311,015	)		(262,557,628	)		(127,463,674	)		72,705,063
$	6,598,749		$	6,839,385		$	935,229,909		$	957,884,476		$	1,018,029,641		$	1,280,587,269		$	324,995,114		$	252,290,051

$	6,218,477		$	6,598,749		$	735,724,695		$	935,229,909		$	612,718,626		$	1,018,029,641		$	197,531,440		$	324,995,114

$	22,576		$	20,127		$	778,433		$	(24,032	)	$	65,175		$	(57,016	)	$	257,125		$	1,212,644

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 59

Financial Statements

Statement of Changes in Net Assets continued


		Laudus Rosenberg						Laudus Rosenberg						Laudus Rosenberg
		U.S. Large						U.S. Large Capitalization						U.S. Large Capitalization
		Capitalization Fund						Growth Fund						Value Fund

		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
		March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
		2008			2007			2008			2007			2008			2007

Shares sold:
	Institutional		3,800,104			4,683,826			2,592,386			3,933,323			25,907			26,453
	Adviser		—			—			—			—			—			—
	Investor		203,845			196,259			140,477			114,333			18,847			56,943

			4,003,949			4,880,085			2,732,863			4,047,656			44,754			83,396

Issued upon reinvestment of distributions:
	Institutional		1,136,301			214,123			243,552			5,570			70,923			33,361
	Adviser		—			—			—			—			—			—
	Investor		131,106			26,158			15,043			—			5,381			2,311

			1,267,407			240,281			258,595			5,570			76,304			35,672

Shares redeemed:
	Institutional¹		(4,050,690	)		(2,106,330	)		(4,799,827	)		(1,005,648	)		(21,717	)		(147,151	)
	Adviser		—			—			—			—			—			—
	Investor		(228,959	)		(271,271	)		(78,208	)		(80,219	)		(23,337	)		(28,940	)

			(4,279,649	)		(2,377,601	)		(4,878,035	)		(1,085,867	)		(45,054	)		(176,091	)

Change in shares:
	Institutional		885,715			2,791,619			(1,963,889	)		2,933,245			75,113			(87,337	)
	Adviser		—			—			—			—			—			—
	Investor		105,992			(48,854	)		77,312			34,114			891			30,314

			991,707			2,742,765			(1,886,577	)		2,967,359			76,004			(57,023	)


¹	Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Small Capitalization Fund included 2,754,526 for shares redeemed in-kind during the period ended March 31, 2008.

See the accompanying notes to the financial statements.

60 Laudus U.S. Equity Funds

Financial Statements—Statement of Changes in Net Assets continued


Laudus Rosenberg						Laudus Rosenberg						Laudus Rosenberg
U.S. Discovery Fund						U.S. Small Capitalization Fund						Long/Short Equity Fund

Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
2008			2007			2008			2007			2008			2007

	8,079,718			8,954,963			6,132,943			9,025,809			7,165,760			13,615,380
	—			—			923,717			1,173,536			—			—
	2,337,924			3,821,131			3,180,317			4,688,425			1,441,013			2,806,789

	10,417,642			12,776,094			10,236,977			14,887,770			8,606,773			16,422,169

	2,802,405			931,114			8,219,330			7,100,197			555,166			497,676
	—			—			531,532			364,392			—			—
	876,426			299,515			3,322,282			2,288,009			37,333			112,676

	3,678,831			1,230,629			12,073,144			9,752,598			592,499			610,352

	(12,267,874	)		(8,657,298	)		(26,429,861	)		(25,741,760	)		(14,332,185	)		(7,619,121	)
	—			—			(1,470,741	)		(1,172,771	)		—			—
	(3,672,199	)		(7,948,553	)		(7,377,747	)		(7,593,651	)		(6,108,994	)		(2,836,891	)

	(15,940,073	)		(16,605,851	)		(35,278,349	)		(34,508,182	)		(20,441,179	)		(10,456,012	)

	(1,385,751	)		1,228,779			(12,077,588	)		(9,615,754	)		(6,611,259	)		6,493,935
	—			—			(15,492	)		365,157			—			—
	(457,849	)		(3,827,907	)		(875,148	)		(617,217	)		(4,630,648	)		82,574

	(1,843,600	)		(2,599,128	)		(12,968,228	)		(9,867,814	)		(11,241,907	)		6,576,509

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 61

Financial Statements

Financial Highlights as of 3/31/08


			Investment Activities									Less Dividends From

	Net Asset					Net Realized			Total						Net
	Value,		Net			and Unrealized			from			Net			Realized
	Beginning		Investment			Gains (Losses)			Investment			Investment			Gains on			Return of			Total
	of Period		Income/(Loss)			on Investments			Activities			Income			Investments			Capital			Dividends

Institutional Shares
U.S. Large Capitalization Fund
For the year ended March 31, 2008	$	13.21	$	0.10	(6)	$	(0.71	)	$	(0.61	)	$	(0.11	)	$	(2.11	)	$	—		$	(2.22	)
For the year ended March 31, 2007		12.35		0.10	(6)		1.27			1.37			(0.09	)		(0.42	)		—			(0.51	)
For the year ended March 31, 2006		11.79		0.10	(6)		1.62			1.72			(0.09	)		(1.07	)		—			(1.16	)
For the year ended March 31, 2005		10.92		0.11	(6)		0.94			1.05			(0.09	)		(0.09	)		—			(0.18	)
For the year ended March 31, 2004		8.28		0.06	(6)		2.62			2.68			(0.04	)		—			—			(0.04	)
U.S. Large Capitalization Growth Fund
For the year ended March 31, 2008		9.76		0.01	(6)		(0.03	)		(0.02	)		(0.02	)		(0.58	)		—			(0.60	)
For the year ended March 31, 2007		9.26		0.03	(6)		0.49			0.52			(0.02	)		—			—			(0.02	)
For the year ended March 31, 2006		8.07		0.02	(6)		1.18			1.20			(0.01	)		—			—			(0.01	)
For the year ended March 31, 2005		7.84		0.04	(6)		0.23			0.27			(0.04	)		—			—			(0.04	)
For the year ended March 31, 2004		5.95		0.06	(6)		1.89			1.95			(0.06	)		—			—			(0.06	)
U.S. Large Capitalization Value Fund
For the year ended March 31, 2008		12.74		0.16	(6)		(0.73	)		(0.57	)		(0.17	)		(1.53	)		—			(1.70	)
For the year ended March 31, 2007		11.89		0.15	(6)		1.45			1.60			(0.26	)		(0.49	)		—			(0.75	)
May 2, 2005 to March 31, 2006(1)		10.00		0.18	(6)		1.79			1.97			(0.02	)		(0.06	)		—			(0.08	)
U.S. Discovery Fund
For the year ended March 31, 2008		19.80		0.04			(2.13	)		(2.09	)		—	(7)		(1.48	)		—			(1.48	)
For the year ended March 31, 2007		19.23		0.03			1.05			1.08			(0.03	)		(0.48	)		—			(0.51	)
For the year ended March 31, 2006		15.96		0.02			3.58			3.60			—			(0.16	)		(0.17	)		(0.33	)
For the year ended March 31, 2005		14.71		0.03	(6)		1.44			1.47			(0.04	)		(0.18	)		—			(0.22	)
For the year ended March 31, 2004		9.55		0.06	(6)		5.26			5.32			(0.04	)		(0.12	)		—			(0.16	)
U.S. Small Capitalization Fund
For the year ended March 31, 2008		12.57		0.03			(1.57	)		(1.54	)		—			(2.00	)		—			(2.00	)
For the year ended March 31, 2007		14.07		0.02			0.11			0.13			—			(1.63	)		—			(1.63	)
For the year ended March 31, 2006		13.50		—	(7)		2.43			2.43			—			(1.86	)		—			(1.86	)
For the year ended March 31, 2005		13.82		0.03	(6)		1.27			1.30			(0.03	)		(1.59	)		—			(1.62	)
For the year ended March 31, 2004		8.98		0.05			5.03			5.08			(0.04	)		(0.20	)		—			(0.24	)
Long/ Short Equity Fund
For the year ended March 31, 2008		10.75		0.26			(0.31	)		(0.05	)		(0.33	)		—			—			(0.33	)
For the year ended March 31, 2007		10.66		0.24			0.09			0.33			(0.24	)		—			—			(0.24	)
For the year ended March 31, 2006		10.51		0.16	(6)		0.09			0.25			(0.10	)		—			—			(0.10	)
For the year ended March 31, 2005		9.87		(0.03	)(6)		0.67			0.64			—			—			—			—
For the year ended March 31, 2004		10.48		(0.05	)(6)		(0.56	)		(0.61	)		—			—			—			—


(1)	Commencement of operations.
(2)	Not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	Includes interest expense and dividend expense on securities sold short.
(5)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(6)	Calculated based on the average shares outstanding during the period.
(7)	Amount less than $0.005.
(8)	Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short.
(9)	The ratio of net operating expenses for Laudus U.S. Large Capitalization Fund, Laudus U.S. Large Capitalization Growth Fund, and Laudus U.S. Large Capitalization Value Fund would have been .99%, .99% and .99% respectively, if overdraft expenses had not been included.

See the accompanying notes to the financial statements.

62 Laudus U.S. Equity Funds

Financial Statements—Financial Highlights continued


								Ratios/Supplemental Data

			Net Asset					Net Assets,		Net Investment
			Value,					End of		Income/(Loss) Net			Expenses			Expenses			Expenses			Portfolio
Redemption			End of		Total			Period		of Waivers/			before Waivers/			Net of Waivers/			Net of Waivers/			Turnover
Fees			Period		Return(2)			(000’s)		Reimbursements(3)			Reimbursements(3),(4)			Reimbursements(3),(4)			Reimbursements(3),(8)			Rate(5)

$	—	(7)	$	10.38		(6.30	)%	$	83,783		0.77	%		1.01	%		1.00	%		1.00	%(9)		165.80	%
	—	(7)		13.21		11.10			94,921		0.81			1.01			1.00			1.00	(9)		144.21
	—			12.35		14.90			54,296		0.80			1.14			1.01			0.99			144.32
	—			11.79		9.66			44,559		0.96			1.23			0.99			0.99			127.89
	—	(7)		10.92		32.33			44,301		0.62			1.47			1.00			1.00			141.50
	—	(7)		9.14		(0.78	)		52,681		0.10			1.02			1.00			1.00	(9)		85.18
	—	(7)		9.76		5.62			75,481		0.30			1.05			0.99			0.99			70.73
	—			9.26		14.85			44,426		0.27			1.34			0.99			0.99			78.70
	—	(7)		8.07		3.42			5,056		0.53			2.34			0.99			0.99			77.81
	—	(7)		7.84		32.84			5,006		0.80			2.59			0.80			0.80			177.43
	—	(7)		10.47		(5.29	)		5,765		1.32			2.88			1.01			1.01	(9)		60.84
	—	(7)		12.74		13.55			6,058		1.22			2.37			0.99			0.99			107.77
	—			11.89		19.83			6,694		1.82			2.41			0.49			0.49			81.30
	—	(7)		16.23		(10.98	)		566,055		0.18			0.96			0.96			0.96			73.60
	—	(7)		19.80		5.71			718,185		0.17			0.97			0.97			0.97			85.69
	—			19.23		22.80			673,599		0.15			1.09			1.09			1.09			88.63
	—	(7)		15.96		9.98			256,444		0.23			1.20			1.14			1.14			62.60
	—	(7)		14.71		55.90			98,077		0.49			1.46			1.14			1.14			93.08
	—	(7)		9.03		(13.34	)		393,939		0.13			0.96			0.96			0.96			68.00
	—	(7)		12.57		1.11			699,921		0.10			0.95			0.95			0.95			76.00
	—			14.07		19.46			918,813		0.02			1.04			1.04			1.04			69.26
	—	(7)		13.50		9.36			948,225		0.20			1.09			1.09			1.09			68.09
	—	(7)		13.82		56.83			954,275		0.45			1.13			1.13			1.13			75.65
	—	(7)		10.37		(0.51	)		182,817		2.14			3.09			3.09			1.63			129.36
	—	(7)		10.75		3.19			260,596		2.70			2.99			2.99			1.66			139.74
	—			10.66		2.41			189,254		1.51			2.89			2.89			1.74			121.80
	—	(7)		10.51		6.48			102,974		(0.28	)		3.04			2.98			1.74			111.19
	—	(7)		9.87		(5.82	)		95,541		(0.46	)		2.88			2.77			1.75			76.36

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 63

Financial Statements

Financial Highlights as of 3/31/08


			Investment Activities									Less Dividends From

	Net Asset					Net Realized			Total						Net
	Value,		Net			and Unrealized			from			Net			Realized
	Beginning		Investment			Gains (Losses)			Investment			Investment			Gains on			Return of			Total
	of Period		Income/(Loss)			on Investments			Activities			Income			Investments			Capital			Dividends

Adviser Shares
U.S. Small Capitalization Fund
For the year ended March 31, 2008	$	12.35	$	(0.01	)	$	(1.52	)	$	(1.53	)	$	—		$	(2.00	)	$	—		$	(2.00	)
For the year ended March 31, 2007		13.88		(0.02	)		0.12			0.10			—			(1.63	)		—			(1.63	)
For the year ended March 31, 2006		13.38		(0.02	)		2.38			2.36			—			(1.86	)		—			(1.86	)
For the year ended March 31, 2005		13.71		—	(6),(7)		1.26			1.26			—			(1.59	)		—			(1.59	)
For the year ended March 31, 2004		8.91		0.02			5.00			5.02			(0.02	)		(0.20	)		—			(0.22	)
Investor Shares
U.S. Large Capitalization Fund
For the year ended March 31, 2008		13.21		0.06	(6)		(0.72	)		(0.66	)		(0.06	)		(2.11	)		—			(2.17	)
For the year ended March 31, 2007		12.36		0.07	(6)		1.25			1.32			(0.05	)		(0.42	)		—			(0.47	)
For the year ended March 31, 2006		11.81		0.06	(6)		1.63			1.69			(0.07	)		(1.07	)		—			(1.14	)
For the year ended March 31, 2005		10.96		0.08	(6)		0.93			1.01			(0.07	)		(0.09	)		—			(0.16	)
For the year ended March 31, 2004		8.31		0.02	(6)		2.63			2.65			—			—			—			—
U.S. Large Capitalization Growth Fund
For the year ended March 31, 2008		9.83		(0.02	)(6)		(0.05	)		(0.07	)		—			(0.58	)		—			(0.58	)
For the year ended March 31, 2007		9.33		—	(6),(7)		0.50			0.50			—			—			—			—
For the year ended March 31, 2006		8.15		(0.01	)(6)		1.19			1.18			—			—			—			—
For the year ended March 31, 2005		7.92		0.02	(6)		0.23			0.25			(0.02	)		—			—			(0.02	)
August 15, 2003 to March 31, 2004(1)		6.95		0.09	(6)		0.92			1.01			(0.04	)		—			—			(0.04	)
U.S. Large Capitalization Value Fund
For the year ended March 31, 2008		12.70		0.13	(6)		(0.73	)		(0.60	)		(0.12	)		(1.53	)		—			(1.65	)
For the year ended March 31, 2007		11.87		0.11	(6)		1.45			1.56			(0.24	)		(0.49	)		—			(0.73	)
May 2, 2005 to March 31, 2006(1)		10.00		0.13	(6)		1.80			1.93			—			(0.06	)		—			(0.06	)
U.S. Discovery Fund
For the year ended March 31, 2008		19.59		(0.04	)		(2.10	)		(2.14	)		—			(1.48	)		—			(1.48	)
For the year ended March 31, 2007		19.07		(0.06	)		1.06			1.00			—			(0.48	)		—			0.48
For the year ended March 31, 2006		15.88		(0.03	)		3.55			3.52			—			(0.16	)		(0.17	)		(0.33	)
For the year ended March 31, 2005		14.66		(0.05	)(6)		1.47			1.42			(0.02	)		(0.18	)		—			(0.20	)
For the year ended March 31, 2004		9.53		0.01	(6)		5.24			5.25			—			(0.12	)		—			(0.12	)
U.S. Small Capitalization Fund
For the year ended March 31, 2008		12.22		(0.03	)		(1.49	)		(1.52	)		—			(2.00	)		—			(2.00	)
For the year ended March 31, 2007		13.77		(0.03	)		0.11			0.08			—			(1.63	)		—			(1.63	)
For the year ended March 31, 2006		13.30		(0.04	)		2.37			2.33			—			(1.86	)		—			(1.86	)
For the year ended March 31, 2005		13.65		(0.02	)(6)		1.26			1.24			—			(1.59	)		—			(1.59	)
For the year ended March 31, 2004		8.88		0.01			4.98			4.99			(0.02	)		(0.20	)		—			(0.22	)
Long/ Short Equity Fund
For the year ended March 31, 2008		10.63		0.62			(0.70	)		(0.08	)		(0.25	)		—			—			(0.25	)
For the year ended March 31, 2007		10.55		0.26			0.03			0.29			(0.21	)		—			—			(0.21	)
For the year ended March 31, 2006		10.41		0.12	(6)		0.10			0.22			(0.08	)		—			—			(0.08	)
For the year ended March 31, 2005		9.81		(0.06	)(6)		0.66			0.60			—			—			—			—
For the year ended March 31, 2004		10.43		(0.09	)(6)		(0.53	)		(0.62	)		—			—			—			—


(1)	Commencement of operations.
(2)	Not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	Includes interest expense and dividend expense on securities sold short.
(5)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(6)	Calculated based on the average shares outstanding during the period.
(7)	Amount less than $0.005.
(8)	Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short.
(9)	The ratio of net operating expenses for Laudus U.S. Large Capitalization Fund, Laudus U.S. Large Capitalization Growth Fund, and Laudus U.S. Large Capitalization Value Fund would have been 1.29%, 1.29% and 1.29% respectively, if overdraft expenses had not been included.

See the accompanying notes to the financial statements.

64 Laudus U.S. Equity Funds

Financial Statements—Financial Highlights continued


								Ratios/Supplemental Data

			Net Asset					Net Assets,		Net Investment
			Value,					End of		Income/(Loss) Net			Expenses			Expenses			Expenses			Portfolio
Redemption			End of		Total			Period		of Waivers/			before Waivers/			Net of Waivers/			Net of Waivers/			Turnover
Fees			Period		Return(2)			(000’s)		Reimbursements(3)			Reimbursements(3),(4)			Reimbursements(3),(4)			Reimbursements(3),(8)			Rate(5)

$	—	(7)	$	8.82		(13.50	)%	$	34,799		(0.12	)%		1.21	%		1.20	%		1.20	%		68.00	%
	—	(7)		12.35		0.90			48,923		(0.14	)		1.20			1.20			1.20			76.00
	—			13.88		19.09			49,952		(0.24	)		1.32			1.32			1.32			69.26
	—	(7)		13.38		9.12			41,104		(0.01	)		1.31			1.31			1.31			68.09
	—	(7)		13.71		56.53			44,059		0.19			1.40			1.40			1.40			75.65
	—	(7)		10.38		(6.61	)		9,017		0.45			1.40			1.31			1.31	(9)		165.80
	—	(7)		13.21		10.69			10,074		0.52			1.38			1.30			1.30	(9)		144.21
	—			12.36		14.57			10,026		0.50			1.52			1.34			1.33			144.32
	—			11.81		9.22			2,786		0.69			1.58			1.35			1.35			127.89
	—	(7)		10.96		31.89			590		0.24			1.51			1.25			1.25			141.50
	—	(7)		9.18		(1.25	)		2,804		(0.17	)		1.40			1.30			1.30	(9)		85.18
	—	(7)		9.83		5.36			2,242		(0.01	)		1.43			1.29			1.29			70.73
	—			9.33		14.48			1,810		(0.12	)		1.91			1.33			1.33			78.70
	—	(7)		8.15		3.14			1,894		0.21			2.68			1.32			1.32			77.81
	—	(7)		7.92		14.50			1,479		1.12			2.72			1.11			1.39			177.43
	—	(7)		10.45		(5.50	)		454		1.01			3.28			1.31			1.31	(9)		60.84
	—			12.70		13.22			540		0.90			2.75			1.29			1.29			107.77
	—			11.87		19.33			145		1.31			2.78			0.96			0.96			81.30
	—	(7)		15.97		(11.36	)		169,670		(0.20	)		1.34			1.34			1.34			73.60
	—	(7)		19.59		5.34			217,045		(0.21	)		1.35			1.34			1.34			85.69
	—			19.07		22.40			284,285		(0.20	)		1.43			1.43			1.43			88.63
	—	(7)		15.88		9.70			58,284		(0.30	)		1.55			1.49			1.49			62.60
	—	(7)		14.66		55.22			2,581		0.04			1.63			1.40			1.40			93.08
	—	(7)		8.70		(13.57	)		183,980		(0.22	)		1.32			1.30			1.30			68.00
	—	(7)		12.22		0.75			269,185		(0.25	)		1.30			1.30			1.30			76.00
	—			13.77		18.98			311,822		(0.33	)		1.39			1.39			1.39			69.26
	—	(7)		13.30		9.00			297,927		(0.15	)		1.43			1.43			1.43			68.09
	—	(7)		13.65		56.40			272,481		0.11			1.47			1.47			1.47			75.65
	—	(7)		10.30		(0.82	)		14,714		2.11			3.30			3.29			1.97			129.36
	—	(7)		10.63		2.81			64,400		2.41			3.28			3.28			1.99			139.74
	—			10.55		2.08			63,036		1.17			3.22			3.22			2.06			121.80
	—	(7)		10.41		6.12			34,930		(0.55	)		3.37			3.30			2.06			111.19
	—	(7)		9.81		(5.94	)		34,081		(0.90	)		3.18			3.06			2.05			76.36

See the accompanying notes to the financial statements.

Laudus U.S. Equity Funds 65

Financial Statements

Notes to Financial Statements as of 3/31/08

1. Organization.

Laudus Trust, (the “Trust”) was established as a Massachusetts business trust under the laws of Massachusetts on April 1, 1988. The Trust is an open-end diversified management investment company consisting of eleven portfolios as of March 31, 2008.

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 Growth
Fund,

Laudus Rosenberg U.S. Large Capitalization Value
Fund,

Laudus Rosenberg U.S. Discovery Fund,

Laudus Rosenberg U.S. Small Capitalization Fund,

Laudus Rosenberg International Equity Fund,

Laudus Rosenberg International Discovery Fund,

Laudus Rosenberg International Small Capitalization
Fund,

Laudus Rosenberg Long/Short Equity Fund (formerly the Laudus Rosenberg Value Long/Short Equity Fund),

Laudus Mondrian Emerging Markets Fund (commenced operations on November 2, 2007)

Laudus Mondrian International Fixed Income Fund (commenced operations on November 2, 2007)

As of October 15, 2004 and May 1, 2006 the Laudus Rosenberg U.S. Small Capitalization Fund and the Laudus Rosenberg U.S. Discovery Fund, respectively, were closed to new investors.

Each Fund is authorized to issue an unlimited number of Institutional Shares and Investor 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 has separate voting rights on matters pertaining solely to that class of shares.

Under the Trust’s organizational documents, its 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 for 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 that risk of loss to be remote.

2. Significant Accounting Policies.

The accounting policies adopted by the Funds are in conformity with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual amounts could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements.

Security Valuation

Each Fund uses approved pricing services to provide values for its portfolio securities. Current market values are generally determined by the approved pricing services as follows: securities traded on stock exchanges are valued at the last-quoted sales price on the exchange on which such securities are primarily traded (closing values), or, lacking any sales, at the mean between the bid and ask prices; securities traded in the over-the-counter market are valued at the last sales price that day, or, if there are no sales that day, at the mean between the bid and ask prices. Securities may be fair valued pursuant to procedures approved by the Funds’ Board of Trustees when approved pricing services do not provide a value for a security, a furnished price appears manifestly incorrect or events occur prior to the close of the New York Stock Exchange that materially affect the furnished price.

Short-term debt securities that mature in 60 days or less are valued at amortized cost, which approximates market value.

Other investment companies are valued at their respective net asset values as determined by those funds, in accordance with the Investment Company Act of 1940 for a given day.

Security Transactions and Related Investment Income

Changes in holdings of portfolio securities are reflected no later than on the first business day following the trade

66 Laudus U.S. Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

date. However, for financial reporting purposes, portfolio security transactions are reported on trade date. Net realized gains or losses from sales of securities are determined on the specific identification cost method. Interest income and expenses are recognized on the accrual basis. Dividend income, less foreign taxes withheld, (if any) and dividend expenses on securities sold short are recorded on the ex-dividend date. Interest income is recorded as earned.

Foreign Currency Transactions

Net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. Further, the effects of changes in foreign currency exchange rates on investments in securities are not segregated in the financial statements from the effects of changes in market prices of those securities, but are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Real Estate Investment Trusts

Several 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

In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that the security will 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 currently fully collateralized by U.S. government securities or by 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 by the Laudus Rosenberg U.S. Large Capitalization Growth Fund, the Laudus Rosenberg U.S. Discovery Fund and the Laudus Rosenberg U.S. Small Capitalization Fund are 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

Laudus U.S. Equity Funds 67

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

collateral must be at least 100% of the market value of the loaned securities each day.

At March 31, 2008, the following Funds had collateral and loans outstanding of:


			Value of
	Value of		Loaned
	Collateral		Securities

Laudus Rosenberg U.S. Large Capitalization Growth Fund	$	9,625,633	$	9,410,133
Laudus Rosenberg U.S. Discovery Fund		250,095,950		243,929,093
Laudus Rosenberg U.S. Small Capitalization Fund		251,007,699		244,590,493

Expense, Investment Income and Gain/Loss Allocation

Expenses directly attributable to a Fund are charged to that Fund; expenses not directly attributable to a Fund are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses specific to a class are charged to that class. Expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets or another reasonable basis. The investment income and expenses of the Fund (other than class specific expenses charged to a class) and realized and unrealized gains are allocated to each class of shares based upon relative net assets on the date income is earned, or expenses and realized/unrealized losses are incurred.

Distributions

Distributions to shareholders are recorded on the ex-dividend date. Distributions are made annually on a tax basis, which may differ from distribution amounts determined under accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for REITs and wash sales for book and tax purposes.

Federal Income Taxes

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investments companies, and to distribute substantially all of their taxable income, including any net realized gain on investments, to their shareholders. Therefore, no provisions are made for federal income taxes.

Custody Credit

Each Fund has an arrangement with its 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 are disclosed in the Statement of Operations as a reduction to the Funds’ operating expenses.

New Accounting Standards

Financial Accounting Standards Board Interpretation (FIN) No. 48 — Accounting for Uncertainty in Income Taxes — an Interpretation of SFAS No. 109, was issued in July 2006 and is effective for fiscal years beginning after December 15, 2006. This Interpretation provides new requirements for the recognition, measurement, and disclosure in the financial statements of a tax position taken or expected to be taken in a tax return when there is uncertainty about whether that tax position will ultimately be sustained. As of March 31, 2008, management has reviewed the tax positions for open tax years (March 31, 2004 through March 31, 2007), and determined that no provision for income tax is required in the Funds’ financial statements.

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS No. 157). 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 is effective for fiscal years beginning after November 15, 2007. As of March 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effects of certain of the measurements on changes in net assets for the period.

In March 2008, the Financial Accounting Standards board (“FASB”) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact of the adoption of SFAS 161 on the Funds’ financial statement disclosures.

68 Laudus U.S. Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued


3.	Management, Administration, Fund Accounting, Distribution, Shareholder Service Agreements, and Trustee Expense.

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.

The Funds pay CSIM an advisory fee for these services on a monthly basis. CSIM — and not the Funds — pays a portion of the advisory fees it receives to AXA Rosenberg in return for its services.

The table below sets forth the advisory fee payable to CSIM by each Fund.


		Agreement Rate*

Laudus Rosenberg U.S. Large Capitalization Fund		1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675%
Laudus Rosenberg U.S. Large Capitalization Growth Fund		1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675%
Laudus Rosenberg U.S. Large Capitalization Value Fund		1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675%
Laudus Rosenberg U.S. Discovery Fund		1st $1 billion-0.90% Over $1 billion-0.85%
Laudus Rosenberg U.S. Small Capitalization Fund		0.90%
Laudus Rosenberg Long/ Short Equity Fund		1st $500 million-1.50% Over $500 million-1.45%


*	The advisory fee payable to CSIM varies based on fund assets.

The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the year ended March 31, 2008, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.

CSIM has contractually agreed, until at least July 30, 2010, 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:


	Institutional		Investor
	Shares		Shares

Laudus Rosenberg U.S. Large Capitalization Fund		0.99%		1.29%
Laudus Rosenberg U.S. Large Capitalization Growth Fund		0.99%		1.29%
Laudus Rosenberg U.S. Large Capitalization Value Fund		0.99%		1.29%
Laudus Rosenberg U.S. Discovery Fund		1.14%		1.44%
Laudus Rosenberg U.S. Small Capitalization Fund *		1.14%		1.44%
Laudus Rosenberg Long/ Short Equity Fund		1.74%		2.04%


*	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 has agreed to voluntarily waive 0.03% of the Adviser Shares expenses. In addition, effective November 1, 2007 through October 31, 2008 the Manager has agreed to voluntarily waive 0.03% of the Investor Shares expenses.

Effective April 15, 2008, the expense limitations will be reduced for the Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, and Laudus Rosenberg U.S. Large Capitalization Value Fund as follows:


	Institutional		Investor
	Shares		Shares

Laudus Rosenberg U.S. Large Capitalization Fund		0.84%		1.14%
Laudus Rosenberg U.S. Large Capitalization Growth Fund		0.84%		1.14%
Laudus Rosenberg U.S. Large Capitalization Value Fund		0.84%		1.14%

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

Laudus U.S. Equity Funds 69

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

respective year. As of March 31, 2008, the balance of recoupable expenses is as follows:


	Expires		Expires
	3/31/09		3/31/10

Laudus Rosenberg U.S. Large Capitalization Fund	$	7,039	$	—
Laudus Rosenberg U.S. Large Capitalization Growth Fund		36,418		—
Laudus Rosenberg U.S. Large Capitalization Value Fund		103,539		125,556
Laudus Rosenberg U.S. Discovery Fund		—		—
Laudus Rosenberg U.S. Small Capitalization Fund		—		—
Laudus Rosenberg Long/ Short Equity Fund		2,450		—

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 transfer agent and sub-accounting services in connection with such shares.

The Board of 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.

A Retirement Plan was instituted for certain Independent Trustees of the Trust. In September 2006, the Trustees voted to close the Retirement Plan to new participants as of June 26, 2006 and to discontinue making contributions to the Retirement Plan after the plan year ending March 31, 2007. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. Under the terms of the Retirement Plan, upon retirement or other termination from service from the Trust (other than termination for cause), a retiring Independent Trustee who has served as Independent Trustee for at least five years shall be paid a lump sum cash payment (the “Retirement Payment”). The Retirement Payment shall be equal to $10,000 for each year that the Trustee has served as an Independent Trustee of the Trust, including years of service prior to the adoption of the Retirement Plan and including a final one-half year credit for service during the plan year ending March 31, 2007. Beginning April 1, 2005, each Independent Trustee was permitted to make a one-time election to have the $10,000 attributable to service for the coming year and previously accrued benefits adjusted up or down at the end of each subsequent year based on the unweighted average performance of Institutional Shares of each Fund of the Trust. After the closure of the Retirement Plan, the previously accrued benefits that an Independent Trustee had elected to have adjusted by the performance of the Funds would continue to be adjusted for performance as provided under the Retirement Plan. As a result, the amount of the Retirement Payment payable to any Independent Trustee may increase or decrease based upon performance of the Funds. The portion of the total Retirement Payment owed to an Independent Trustee upon his or her retirement that is payable by any Fund will be determined based on the relative net assets of the Funds of the Trust. The Trust did not pay any pension or retirement benefits for its Trustees.

4. Redemption Fee.

70 Laudus U.S. Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

impose the costs of that activity on the shareholders who engage in it. Such amounts are net of the value of shares redeemed on the Statement of Changes in Net Assets. For the current and prior period, redemption fees assessed were as follows:


	Current Period		Prior Period
	(4/1/07-3/31/08)		(4/1/06-3/31/07)

Laudus Rosenberg U.S. Large Capitalization Fund	$	22,951	$	2,002
Laudus Rosenberg U.S. Large Capitalization Growth Fund		14,887		1,118
Laudus Rosenberg U.S. Large Capitalization Value Fund		378		358
Laudus Rosenberg U.S. Discovery Fund		10,158		60,262
Laudus Rosenberg U.S. Small Capitalization Fund		16,091		30,427
Laudus Rosenberg Long/ Short Equity Fund		26,432		36,207

5. Redemption-in-kind.

In certain circumstances, the Funds may distribute portfolio securities rather than cash as payment for redemption of Fund shares (redemption-in-kind). For financial reporting purposes, the Fund will recognize a gain on the in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities, the Fund will recognize a loss if the cost exceeds value. The net amount of $9,310,921 in gains and losses realized on the redemptions in-kind are not recognized for tax purposes, and are reclassified from realized gain (loss) to paid-in capital in excess of par value.

The Laudus Rosenberg U.S. Small Capitalization Fund — Institutional Shares had a redemption-in-kind in the amount of $33,136,950 during the year ended March 31, 2008.

6. Security Purchases and Sales.

For the period ended March 31, 2008, purchases and sales of securities (excluding short-term securities) were as follows:


	Purchases		Sales

Laudus Rosenberg U.S. Large Capitalization Fund	$	172,123,007	$	178,075,673
Laudus Rosenberg U.S. Large Capitalization Growth Fund		59,063,717		84,909,269
Laudus Rosenberg U.S. Large Capitalization Value Fund		4,169,415		4,065,326
Laudus Rosenberg U.S. Discovery Fund		649,285,400		748,159,133
Laudus Rosenberg U.S. Small Capitalization Fund		587,914,221		884,355,242
Laudus Rosenberg Long/ Short Equity Fund		334,225,956		411,261,421

7. Borrowings from Banks

The custodian has established a loan agreement for a maximum amount of 10% of total net assets for the Laudus Rosenberg Long/ Short Equity Fund for temporary borrowing purposes. In addition, the Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund and Laudus Rosenberg U.S. Small Capitalization Fund has 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 period ended March 31, 2008.

8. Federal Income Taxes.

The tax character of distributions paid during the fiscal year ended March 31, 2008 was as follows:


	Ordinary		Long-Term		Total
	Income		Capital Gains		Distributions Paid

Laudus Rosenberg U.S. Large Capitalization Fund	$	5,920,126	$	9,791,836	$	15,711,962
Laudus Rosenberg U.S. Large Capitalization Growth Fund		87,957		3,108,560		3,196,517
Laudus Rosenberg U.S. Large Capitalization Value Fund		205,381		658,199		863,580
Laudus Rosenberg U.S. Discovery Fund		—		65,060,079		65,060,079
Laudus Rosenberg U.S. Small Capitalization Fund		57,252		131,236,762		131,294,014
Laudus Rosenberg Long/ Short Equity Fund		7,064,829		—		7,064,829

Laudus U.S. Equity Funds 71

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

The tax character of distributions paid during the fiscal year ended March 31, 2007 was as follows:


	Ordinary		Long-Term		Total
	Income		Capital Gains		Distributions Paid

Laudus Rosenberg U.S. Large Capitalization Fund	$	1,126,178	$	2,949,474	$	4,075,652
Laudus Rosenberg U.S. Large Capitalization Growth Fund		135,787		—		135,787
Laudus Rosenberg U.S. Large Capitalization Value Fund		318,229		138,325		456,554
Laudus Rosenberg U.S. Discovery Fund		606,878		23,594,419		24,201,297
Laudus Rosenberg U.S. Small Capitalization Fund		—		134,761,584		134,761,584
Laudus Rosenberg Long/ Short Equity Fund		7,134,576		—		7,134,576

As of March 31, 2008, the Laudus Rosenberg Long/Short Equity Fund was the only fund with net capital loss carry forward, which is available to offset future realized gains:


Expire

2009	$	11,040,106
2010		—
2011		—
2012		20,890,232
2013		—
2014		—
2015		13,099,020
2016		21,018,727
Total	$	66,048,085

Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of the Funds’ next taxable year. For the year ended March 31, 2008, the Funds deferred to April 1, 2008 post October capital losses of:


	Capital Losses

Laudus Rosenberg U.S. Large Capitalization Fund	$	3,662,236
Laudus Rosenberg U.S. Large Capitalization Growth Fund		—
Laudus Rosenberg U.S. Large Capitalization Value Fund		12,132
Laudus Rosenberg U.S. Discovery Fund		8,642,506
Laudus Rosenberg U.S. Small Capitalization Fund		2,851,031
Laudus Rosenberg Long/ Short Equity Fund		—

The Funds utilized capital loss carryforward during the year end March 31, 2008 in the amount of:


	Capital Losses		Capital Losses
	Utilized		Expired

Laudus Rosenberg U.S. Large Capitalization Fund	$	—		—
Laudus Rosenberg U.S. Large Capitalization Growth Fund		1,674,486		—
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				26,836,920

72 Laudus U.S. Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

As of March 31, 2008, the components of distributable earnings/accumulated(losses) on a tax basis were as follows:


			Undistributed
	Undistributed		Long-Term		Accumulated
	Ordinary		Capital		Capital and			Unrealized
	Income		Gains		Other Losses			Appreciation

Laudus Rosenberg U.S. Large Capitalization Fund	$	229,364	$	—	$	(3,666,867	)	$	852,599
Laudus Rosenberg U.S. Large Capitalization Growth Fund		38,254		340,864		(1,180	)		5,701,019
Laudus Rosenberg U.S. Large Capitalization Value Fund		22,728		—		(12,284	)		324,266
Laudus Rosenberg U.S. Discovery Fund		816,416		38,317		(8,680,489	)		34,752,797
Laudus Rosenberg U.S. Small Capitalization Fund		181,989		—		(2,967,846	)		52,344,409
Laudus Rosenberg Long/ Short Equity Fund		271,594		—		(66,062,554	)		54,748,040

The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/(losses) on certain derivative instruments, and unrealized gains/(losses) on investments in passive foreign investment companies.

The permanent book and tax basis differences may result in reclassifications between capital accounts such and other accounts as required. The adjustments will have no impact on net assets or the results of operations. As of March 31, 2008, the funds made the following reclassifications:


				Accumulated
				Net Realized
				Gains/(Losses)
	Accumulated			on Investments
	Net Investment			and Securities			Paid in
	Income/(Loss)			Sold Short			Capital

Laudus Rosenberg U.S. Large Capitalization Fund	$	(689	)	$	689		$	—
Laudus Rosenberg U.S. Large Capitalization Growth Fund		—			—			—
Laudus Rosenberg U.S. Large Capitalization Value Fund		(40	)		40			—
Laudus Rosenberg U.S. Discovery Fund		(1,999	)		1,999			—
Laudus Rosenberg U.S. Small Capitalization Fund		(7,933	)		(9,230,555	)		9,238,488
Laudus Rosenberg Long/ Short Equity Fund		270,515			26,566,405			(26,836,920	)

Laudus U.S. Equity Funds 73

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Laudus Trust

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 Growth 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 (formerly Laudus Rosenberg Value Long/ Short Equity Fund) (the “Funds”) at March 31, 2008, the results of each of their operations for the year then ended, and 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 audits 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, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 14, 2008

74 Laudus U.S. Equity Funds

Other Tax Information (unaudited)

For corporate shareholders, the following percentage of the total ordinary income dividends paid during the fiscal year ended March 31, 2008, qualify for the corporate dividends received deduction for the following Funds:


	Dividends
	Received Deduction

Laudus Rosenberg U.S. Large Capitalization Fund		49.04	%
Laudus Rosenberg U.S. Large Capitalization Growth Fund		100	%
Laudus Rosenberg U.S. Large Capitalization Value Fund		84.15	%
Laudus Rosenberg U.S. Discovery Fund		0.00	%
Laudus Rosenberg U.S. Small Capitalization Fund		100	%
Laudus Rosenberg Long/ Short Equity Fund		29.36	%

For the fiscal year March 31, 2008, certain dividends paid by the Funds may be subject to maximum tax rate of 15% as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.

For the year ended March 31, 2008, the Funds designate the following amounts of qualified dividend income:


	Qualified
	Dividend Income

Laudus Rosenberg U.S. Large Capitalization Fund	$	1,751,357
Laudus Rosenberg U.S. Large Capitalization Growth Fund		87,957
Laudus Rosenberg U.S. Large Capitalization Value Fund		149,286
Laudus Rosenberg U.S. Discovery Fund		—
Laudus Rosenberg U.S. Small Capitalization Fund		52,220
Laudus Rosenberg Long/ Short Equity Fund		2,246,039

Laudus U.S. Equity Funds 75

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, 2008, the Fund Complex included 79 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

Name, Address¹and		Number of
Year of Birth;		Portfolios in
(Term of Office and	Principal Occupation(s)	Fund Complex	Other Directorships
Length of Time Served²)	During Past Five Years	Overseen	Held by Trustee

Mariann Byerwalter³1960 (1/04-present)	Chairman of JDN Corporate Advisory LLC.	79	Board 1 – Director, Redwood Trust, Inc. (mortgage finance). Board 2 – Director, PMI Group, Inc. (mortgage insurance).

William A. Hasler³1941 (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 Corporation (bio- pharmaceuticals).	79	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 communications technology) Board 6 – Rubicon Limited (manufacturing)

Nils H. Hakansson³1937 (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).	11	None

76 Laudus U.S. Equity Funds

Trustees and Officers continued


Independent Trustees

Name, Address¹and		Number of
Year of Birth;		Portfolios in
(Term of Office and	Principal Occupation(s)	Fund Complex	Other Directorships
Length of Time Served²)	During Past Five Years	Overseen	Held by Trustee

Randall W. Merk 1954 (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.	11	None


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.

Laudus U.S. Equity Funds 77

Trustees and Officers continued


Officers

Name, Address⁴
and Year of Birth;
(Term of Office⁵and
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.

Randall Fillmore 1960 (9/04-present)	Chief Compliance Officer	Senior Vice President, Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President, Charles Schwab & Co., Inc.; Chief Compliance Officer, Schwab Funds. From June 2006 to June 2007, Chief Compliance Officer, Excelsior Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc.

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.

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.

Cathy Sabo 1964 (12/05-present)	Vice President	Vice President, Compliance, Charles Schwab Investment, Management, Inc.; Vice President, Schwab Funds; until September 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.


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.

78 Laudus U.S. Equity Funds

Definitions, Terms and Other Information

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.

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 S&P/Citigroup 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/Citigroup World ex US Extended Market Index (EMI) is a float-adjusted index which measures the performance of small companies (approximately the bottom 20% 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 1,000 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 8% of the total market capitalization of the Russell 3000^® Index.

The Russell 2500^tm 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 Growth or the Russell 2000 Growth 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 dividend 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, 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.

Laudus U.S. Equity Funds 79

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	COMMAND PERFORMANCE™

Manager

Charles Schwab Investment Management, Inc.

101 Montgomery Street

San Francisco, California 94104

Shareholder Services

1.866.452.8387 Investment Professionals

1.800.447.3332 Individual Investors

www.laudus.com

This report is for the information of the shareholders of the Laudus Trust.

Its use in connection with any offering of the Trust’s shares is authorized only in case of concurrent or prior

delivery of the current prospectus.

MFR 34765-05

Annual Report

March 31, 2008


	COMMAND PERFORMANCE™

International Equity Funds

Laudus Rosenberg International Equity Fund

Laudus Rosenberg International Discovery Fund

Laudus Rosenberg International Small Capitalization Fund (closed to investors)

Each of the Funds is a series of Laudus Trust, which is an open-end management investment company offering diversified portfolios with different investment objectives and strategies.

Charles Schwab Investment Management, Inc. is the Adviser to the Funds and AXA Rosenberg Investment Management LLC is the Sub-adviser.

Table of Contents


1		President’s Message

2		Management’s Discussion

7		Performance and Fund Facts

13		Fund Expenses

14		Portfolio Holdings

48		Financial Statements and Notes

60		Report of Independent Registered Public Accounting Firm

62		Trustees and Officers of Laudus Trust

65		Definitions, Terms and Other Information

Nothing in this report represents a recommendation of a security by the investmentadviser. Portfolio Manager views and portfolio holdings may have changed since the report date.

Notice About Duplicate Mailings

President’s Message

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 closing, I would like to thank you for investing with us.

Sincerely,

Laudus International Equity Funds 1

Management’s Discussion for the year ended March 31, 2008

Global Market Overview

After the U.S. Federal Reserve’s (the “Fed”) Open Market Committee acted to provide additional liquidity to the credit markets in mid-August, and followed that up with a cut in interest rates in mid-September, the markets responded positively. The Federal Reserve probably had the Financial sector in mind when it took considerable action during August and September. This group of companies comprises about 20% of most major U.S. indexes, so their valuations and future earnings are very important to stock market investors. In August, the Fed lowered the discount rate, which makes it easier for banks to borrow directly from the Fed. They even persuaded some major banks to step up to the discount window, in a public display of pumping liquidity into the financial system. Then, in September, they lowered the Fed funds rate, the rate banks charge each other, which has much broader application. That caused an immediate decline in the prime rate, lowering borrowing costs throughout the economy. The equity markets generally cheered these moves, but the concerns over the housing market continued the pressure on Financial stocks, keeping the pressure on the markets overall.

2 Laudus International Equity Funds

Management’s Discussion continued

The U.S. dollar’s decline and the gains in some commodity markets did generate some positive news for U.S. investors with assets in non-U.S. stocks, however. The MSCI EAFE Index, while negative for the period at -2.27%, lost less than its U.S. counterpart, the Russell 1000 Index, which was down 5.40%. The dollar’s decline explains much of the difference, but also important was that financial firms in the U.S. index were down significantly more than their foreign counterparts, as a result of their greater direct exposure to problems stemming from the U.S. housing markets. Also important was the higher return to foreign firms in the Materials Sector. Generally, commodity-oriented firms were of greater importance in non-U.S. economies, and their increased weight in the non-U.S. indexes, plus their overall higher returns, helped push these stocks to higher returns versus U.S. equities. This trend was especially true for the emerging markets area, where the Materials and Energy Sectors combined to contribute nearly 11% of the total 21.6% return to the MSCI Emerging Markets Index over the period.

International Equity Funds Performance

Total returns are for the year ended 3/31/08. For performance details, see pages 7 through 12.


Laudus Rosenberg International Equity Fund⁽¹⁾

REQIX	RIEIX	MSCI-EAFE
Institutional shares	Investor shares	Index
-5.91%	-6.21%	-2.27%


Laudus Rosenberg International Discovery Fund^(1,2)

		S&P/Citigroup Global ex US Broad Market Index (BMI)
LIDSX	LIDIX	$2-$10 Billion
Institutional shares	Investor shares	Cap Range
-0.16%*	-0.51%	1.04%


Laudus Rosenberg International Small Capitalization Fund^(1,2)
(Closed)

		S&P/Citigroup World ex US Extended
ICSIX	RISIX	Market Index
Institutional shares	Investor shares	(EMI)
-9.97%	-10.27%	-6.39%

Investors cannot invest directly in any index.


^*	Return for the period presented in the table differs from the return in the Financial Highlights. This is a result of the calculation of Financial Highlights return adhering to GAAP presentation.


⁽¹⁾	There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investing in emerging markets accentuates these risks.

⁽²⁾	Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

Laudus International Equity Funds 3

Management’s Discussion continued

Laudus Rosenberg International Equity Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and underperformed its benchmark, the MSCI EAFE^® Index: The Fund’s Investor Shares lost 6.21% versus the benchmark’s loss of 2.27%. Generally speaking, allocation decisions made modest positive contributions but were overshadowed by weak stock selection across most measures. The Fund, with its emphasis on valuation as well as earnings growth, clearly struggled against the benchmark in a period in which investors generally flocked to growth stocks — often without regard to cost.

On a sector basis, stock selection provided the greatest drag on performance; allocation across sectors added some value, but not enough to overcome the negatives. The largest sector detractor was from the Materials sector. Although the Fund’s substantial overweight to the strongly performing sector added value, it was overshadowed by underperformance of the Fund’s holdings in the sector as compared to those of the benchmark. An overweight to the Telecommunication Services sector also added value, as that industry held up relatively well over the reporting period. Stock selection, however, across multiple sectors detracted, most damaging in Information Technology, Industrials and Financials. The Fund’s underweight of Consumer Staples and overweight of Consumer Discretionary also worked against it, as international investors — following those in the U.S. — moved to more defensive holdings as the period wore on. The Fund’s stock selection within Consumer Discretionary, however, was able to mitigate the sector’s negative allocation impact.

Across market capitalizations, it was primarily the Fund’s stock selections that detracted from performance; in nearly all market-cap ranges the Fund’s holdings underperformed those of the benchmark. While overall allocation contributed slightly — most notably due to the Fund’s overweight to very large-cap stocks — the Fund’s modest overweight of the smallest stocks hurt, compounded by weak stock selection among them.

From a Price/Earnings (“P/E”) perspective, stock selection dragged on Fund performance for the period across nearly all valuation ranges as the Fund’s holdings failed to outperform those of the benchmark. The one exception was an overweight of stocks with the lowest P/Es that worked in the Fund’s favor, boosted by positive stock selection among those companies; in all other ranges, the Fund’s holdings underperformed those of its benchmark.

From a Price/Book (“P/B”) perspective, however, it was the Fund’s allocations that were the most damaging; in fact, stock picking in several valuation ranges contributed positively, most notably in the lower range of P/B values. Most damaging was a substantial overweight of stocks at the low end of the P/B range, not surprising in an environment in which growth notably outperformed value. At higher ranges, however, stock picking hurt. And among the stocks with the highest P/B valuations, both an underweight and weak stock selection detracted from performance.

As is typical for this Fund, regional allocation had little net effect. However, the Fund’s holdings within Europe — representing nearly two-thirds of the Fund’s portfolio — underperformed those of the benchmark, dragging on Fund performance for the period.

Laudus Rosenberg International Discovery Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and underperformed its benchmark, the S&P/Citigroup Global ex U.S. Broad Market Index, $2-10 Billion Cap Range: The Fund’s Investor Shares lost 0.51% versus the benchmark’s gain of 1.04%. The Fund’s underperformance was primarily a result of its stock selection decisions; allocations added value across some measures but detracted in others.

Among sectors, the Fund’s allocation decisions generally added value, but in most cases they were overshadowed by weak stock performance. The greatest sector contribution for the period came from Financials, where a combination of a substantial underweighting and strong stock selection among them added value. Most other sectors detracted — the largest of which was the Telecommunication Services sector where, despite an overweight that worked in the Fund’s favor, the Fund’s holdings significantly underperformed those in the benchmark. Other sectors that hurt performance for the period were Industrials, due to both an underweight and weak stock selection, and weak stock selection in the Consumer Discretionary and Materials sectors. A substantial overweight to Materials as compared to the benchmark did

4 Laudus International Equity Funds

Management’s Discussion continued

add value as the sector showed notable strength for the reporting period.

On a market-capitalization basis, while allocation added some value, it was more than offset by weak stock selection across market caps. The largest drag on performance came from the smallest stocks, where those held by the Fund substantially underperformed those of the benchmark. An overweight in this arena tempered the drag to some degree, but not nearly enough to overcome the stock-picking impact. The effect of weak stock selection was consistent across most capitalization ranges with the exception of the largest of the small-caps, where the Fund’s holdings outperformed those of the benchmark.

On a valuation basis, generally speaking, the Fund’s value orientation worked against it for the period, with overweights to both lower-valuation stocks and to more richly valued stocks — measured both by P/E and P/B values — working against the Fund for the fiscal year. However, strong performance of the Fund’s lower-P/E stocks contributed sufficiently to overcome the negative impact of allocation. Weak performance among the Fund’s stocks with mid-range P/Es also detracted from performance.

From a P/B perspective, the bright spot was that the Fund’s substantial overweight to stocks with low P/B values added some value. However, it was overshadowed the by effect of weak stock performance among the Fund’s holdings in that range.

Although typically, regional allocation has little net effect on Fund performance, for this period it added modest value as a result of the Fund’s overweight of Latin America compared to the benchmark. However, the Fund’s stocks in Latin America underperformed those of the benchmark, overshadowing the benefit of the Fund’s allocation there. Stock selection in North America, Europe and Asia & the Pacific Basin also detracted from Fund performance.

Laudus Rosenberg International Small Capitalization Fund For its fiscal year ended 3/31/08, the Fund posted a negative return and underperformed its benchmark, the S&P/Citigroup World ex U.S. Extended Market Index: The Fund’s Investor Shares lost 10.27% versus the benchmark’s loss of 6.39%. The Fund’s underperformance was primarily a result of its stock selection decisions, although in some cases, allocations also dragged on performance.

Among sectors, the Fund’s stock selection generally detracted from performance, and allocation across sectors contributed only modestly. Although a substantial overweight to the Materials sector contributed to performance, the negative impact of stock selection within the sector nearly overshadowed that contribution. Stock selection among Information Technology, Telecommunications Services and Utilities added some value, but it was overshadowed by weak stock performance among the Fund’s holdings in Industrials and Financials and, to a lesser extent, Consumer Discretionary and Health Care. The Fund’s underweight of Energy — the benchmark’s strongest-performing sector — and Health Care sectors also detracted, as did its overweight of Industrials.

Across market capitalizations, the Fund’s stock picking generally detracted; allocations added little net contribution. The positive contribution of the Fund’s stock picking fit a clear pattern: its holdings among the smaller companies outperformed those of the benchmark, while its larger holdings underperformed. But because those smaller holdings represented roughly 30% of the portfolio versus 70% for the larger holdings, the net effect was a drag on Fund performance for the period.

On a valuation basis, results were inconsistent when examined on a P/E vs. a P/B basis for the period. From a P/E perspective, the Fund’s allocations had little net effect; it was primarily stock selection that dragged on returns, particularly among the Fund’s mid-range valuations. However, the Fund did exhibit strong stock picking among the lowest and highest valuations. From a P/B perspective, however, it was the Fund’s allocations that dragged most on performance; while this was the case across all P/B ranges, the impact was greatest among the Fund’s stocks with the highest and lowest valuations. The Fund’s stock selection did compensate somewhat, however, particularly among those stocks with the lowest and highest valuations. Generally speaking, the market rewarded more highly valued stocks over the period, which worked against the Fund’s value orientation.

Laudus International Equity Funds 5

Management’s Discussion continued

As is typical for this Fund, regional allocation had little net effect on Fund performance, although for this period it detracted modestly due to an underweight to North America and an overweight (albeit modest) to Africa & the Middle East. From a regional perspective, it was weak stock selection, particularly among European stocks — which represent more than 60% of the portfolio — that dragged most notably on performance. The Fund’s stock selection in Asia and the Pacific Basin compensated somewhat, but not enough to overcome the negatives.

6 Laudus International Equity Funds

Performance and Fund Facts

Laudus Rosenberg International Equity Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


					Since Inception		Since Inception
Class and Inception Date	1 year		5 year		Institutional		Investor
Institutional (6/7/00)		-5.91%		19.40%		4.75%		n/a
Investor (12/5/00)		-6.21%		19.03%		n/a		6.29%
MSCI EAFE Index*		-2.27%		21.65%		4.88%		7.10%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

Investors cannot invest directly in any index.


*	The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI-EAFE^® Index) Index 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.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		6/7/00		12/5/00
Total Net Assets ($ x 1,000)		$97,701		$19,570
Ticker Symbol		REQIX		RIEIX
Cusip		51855Q507		51855Q812
NAV		$11.59		$11.60
Net Expense Ratio³		1.34%		1.64%
Gross Expense Ratio⁴		1.34%		1.71%


Fund Characteristics²

Number of Securities	432

Avg. Market Capitalization ($Wtd. x 1,000,000)	58,649

Portfolio Turnover (One year trailing)	83	%

Price to Earnings (P/E)	10.69

Price to Book (P/B)	1.53

Price to Cash Flow	6.61

Beta	1.03

Return on Equity	15.75	%

Five-Year Earnings Growth	21.53	%


Top Equity Holdings²% of Net Assets

Vodafone Group plc	2.6	%

Royal Dutch Shell plc, Class A	2.0	%

Total S.A.	1.9	%

Daimler AG	1.7	%

Zurich Financial Services AG — Reg’d	1.7	%

Eni S.p.A.	1.7	%

BASF SE	1.6	%

Nestle S.A. — Reg’d	1.6	%

Royal Dutch Shell plc, Class B	1.5	%

Anglo American plc	1.4	%

Total	17.7	%


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus International Equity Funds 7

Performance and Fund Facts continued

Laudus Rosenberg International Equity Fund as of 3/31/08

Portfolio Composition¹ % of Investments

Sector Weightings

Portfolio Composition¹ % of Investments

Country Weightings


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

8 Laudus International Equity Funds

Performance and Fund Facts

Laudus Rosenberg International Discovery Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹

Since Inception

Class and Inception Date

1 year

Institutional

Investor

Institutional (5/31/06)

-0.16%**

11.30%

n/a

Investor (5/31/06)

-0.51%

n/a

10.94%

S&P/ Citigroup Global ex US BMI $2-10 Bil Cap Range*

1.04%

12.45%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investing in emerging markets accentuates these risks.

Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

Investors cannot invest directly in any index.


*	The S&P/Citigroup 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.


**	Return for the period presented in the table differs from the return in the Financial Highlights. This is a result of the calculation of Financial Highlights return adhering to GAAP presentation.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100
Inception Date		5/31/06		5/31/06
Total Net Assets ($ x 1,000)		$139,643		$121,930
Ticker Symbol		LIDSX		LIDIX
Cusip		51855Q689		51855Q697
NAV		$11.45		$11.43
Net Expense Ratio³		1.35%		1.65%
Gross Expense Ratio⁴		1.64%		2.03%


Fund Characteristics²

Number of Securities	600
Avg. Market Capitalization ($Wtd. x 1,000,000)	5,601
Portfolio Turnover (One year trailing)	147	%
Price to Earnings (P/ E)	12.26
Price to Book (P/ B)	1.49
Price to Cash Flow	6.99
Beta	1.03
Return on Equity	13.27	%
Five-Year Earnings Growth	20.99	%


Top Equity Holdings²% of Net Assets

Mapfre S.A.			0.8%
D/ S Norden A/ S			0.8%
Danisco A/ S			0.7%
IMI plc			0.7%
Fondiaria — Sai S.p.A.			0.7%
Petrofac Ltd.			0.7%
Kinross Gold Corp.			0.7%
Arkema			0.6%
Atos Origin S.A.			0.6%
Asahi Breweries Ltd.			0.6%
Total			6.9%


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.

⁴	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus International Equity Funds 9

Performance and Fund Facts continued

Laudus Rosenberg International Discovery Fund as of 3/31/08

Portfolio Composition¹ % of Investments

Sector Weightings

Portfolio Composition¹ % of Investments

Country Weightings


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

10 Laudus International Equity Funds

Performance and Fund Facts

Laudus Rosenberg International Small Capitalization Fund as of 3/31/08

Performance of a Hypothetical

$50,000 Investment in Institutional Shares¹

Performance of a Hypothetical

$10,000 Investment in Investor Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 year		5 year		10 years
Institutional (9/23/96)		-9.97%		26.15%		11.95%

Investor (10/29/96)		-10.27%		25.75%		11.59%

S&P/ Citigroup World ex US EMI*		-6.39%		26.77%		9.98%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility.

Investors cannot invest directly in any index.


*	S&P/Citigroup World ex US Extended Market Index (EMI) is a float-adjusted index which measures the performance of small companies (approximately the bottom 20% by market capitalization) in 25 developed equity markets.


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.


	Institutional		Investor
Fund Overview²	Shares		Shares

Initial Investment		$50,000		$100

Inception Date		9/23/96		10/29/96

Total Net Assets ($ x 1,000)		$612,703		$523,709
Ticker Symbol		ICSIX		RISIX
Cusip		51855Q606		51855Q796
NAV		$16.97		$16.74
Fund Expense Ratio³		1.10%		1.47%


Fund Characteristics²

Number of Securities	830

Avg. Market Capitalization ($Wtd. x 1,000,000)	4,394
Portfolio Turnover (One year trailing)	105	%
Price to Earnings (P/ E)	11.62
Price to Book (P/ B)	1.18
Price to Cash Flow	6.52
Beta	1.06
Return on Equity	10.92	%
Five-Year Earnings Growth	22.03	%


Top Equity Holdings²% of Net Assets

British Energy Group plc			2.0%

Eramet			1.8%

Compagnie Generale des Etablissements Michelin, class B			1.8%

Salzgitter AG			1.8%

Koninklijke DSM N.V.			1.4%

K&S AG			1.4%

Swiss Life Holding — Reg’d			1.3%

Baloise Holding AG — Reg’d			1.3%

Natixis			1.3%

PSA Peugeot Citroen			1.2%

Total			15.3%


²	Portfolio holdings are subject to change and may not represent current or future holdings.

³	Reflects the total annual fund operating expenses. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus International Equity Funds 11

Performance and Fund Facts continued

Laudus Rosenberg International Small Capitalization Fund as of 3/31/08

Portfolio Composition¹ % of Investments

Sector Weightings

Portfolio Composition¹ % of Investments

Country Weightings

¹ Portfolio holdings are subject to change and may not represent current or future holdings.

12 Laudus International Equity Funds

Disclosure of Fund Expenses (Unaudited)

Examples for a $1,000 Investment


							Ending
					Beginning		Account Value		Expenses
		Expense Ratio¹			Account Value		(Net of Expenses)		Paid During Period²
		(Annualized)			at 10/1/07		at 3/31/08		10/1/07 - 3/31/08

Laudus Rosenberg International Equity Fund
Institutional Shares			1.12	%
	Actual Return				$	1,000	$	883.60	$	5.27
	Hypothetical 5% Return				$	1,000	$	1,019.40	$	5.65
Investor Shares			1.53	%
	Actual Return				$	1,000	$	882.50	$	7.20
	Hypothetical 5% Return				$	1,000	$	1,017.35	$	7.72

Laudus Rosenberg International Discovery Fund
Institutional Shares			1.35	%
	Actual Return				$	1,000	$	900.40	$	6.41
	Hypothetical 5% Return				$	1,000	$	1,018.25	$	6.81
Investor Shares			1.65	%
	Actual Return				$	1,000	$	900.00	$	7.84
	Hypothetical 5% Return				$	1,000	$	1,016.75	$	8.32

Laudus Rosenberg International Small Capitalization Fund
Institutional Shares			1.11	%
	Actual Return				$	1,000	$	870.40	$	5.19
	Hypothetical 5% Return				$	1,000	$	1,019.45	$	5.60
Investor Shares			1.50	%
	Actual Return				$	1,000	$	868.90	$	7.01
	Hypothetical 5% Return				$	1,000	$	1,017.50	$	7.57


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 that fund’s or share class’ annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year.

Laudus International Equity Funds 13

Laudus Rosenberg International Equity Fund

Portfolio Holdings as of March 31, 2008

Cost

Value

Holdings by Category

($)

98.2

Common Stock

108,493,630

115,186,869

0.5

Short-Term

597,000

Investment

98.7

Total Investments

109,090,630

115,783,869

1.3

Other Assets and

Liabilities

1,487,356

100.0

Net Assets

117,271,225


	Number of		Value
Security	Shares		($)
Common Stock 98.2% of net assets
Australia 5.6%

Banks 0.3%
Australia & New Zealand Banking Group Ltd.		2,400		49,801
Commonwealth Bank of Australia		3,600		138,336
National Australia Bank Ltd.		3,100		85,732
Westpac Banking Corp.		2,600		56,746

				330,615
Capital Goods 0.0%
Leighton Holdings Ltd.		600		23,610
Energy 0.9%
Origin Energy Ltd.		33,800		283,147
Santos Ltd.		23,400		311,188
Woodside Petroleum Ltd.		8,600		427,376
WorleyParsons Ltd.		900		27,584

				1,049,295
Food, Beverage & Tobacco 0.5%
Coca-Cola Amatil Ltd.		27,200		211,694
Foster’s Group Ltd.		69,800		327,169
Goodman Fielder Ltd.		5,600		9,250

				548,113
Materials 3.0%
Amcor Ltd.		5,600		36,643
BHP Billiton Ltd.		41,000		1,347,301
BlueScope Steel Ltd.		29,500		267,542
Dominion Mining Ltd.		2,500		7,713
Equigold NL		1,300		5,523
Fortescue Metals Group Ltd. *		46,000		274,679
Incitec Pivot Ltd.		1,000		129,293
Independence Group NL		1,000		7,335
Macarthur Coal Ltd.		7,900		94,547
Mincor Resources NL		9,700		27,155
Mount Gibson Iron Ltd. *		12,600		33,053
Nufarm Ltd.		1,000		15,709
OneSteel Ltd.		18,785		109,986
Orica Ltd.		8,700		232,407
Portman Ltd. *		9,962		113,519
Rio Tinto Ltd.		5,800		651,547
Sims Group Ltd.		5,500		149,676

				3,503,628
Media 0.1%
Amalgamated Holdings Ltd.		1,575		7,776
Seven Network Ltd.		14,400		125,841

				133,617
Pharmaceuticals & Biotechnology 0.1%
CSL Ltd.		3,600		122,034
Real Estate 0.2%
Westfield Group		16,400		268,605
Telecommunication Services 0.4%
Telstra Corp., Ltd.		104,800		422,496
Transportation 0.1%
Toll Holdings Ltd.		15,200		139,904

				6,541,917
Austria 0.9%

Energy 0.5%
OMV AG		9,077		599,937
Materials 0.4%
Voestalpine AG		5,785		402,299
Real Estate 0.0%
Meinl European Land Ltd. *		780		8,870

				1,011,106
Belgium 1.1%

Food & Staples Retailing 0.4%
Delhaize Group		6,021		474,860
Materials 0.7%
Solvay S.A.		4,000		510,002
Umicore		6,340		329,538

				839,540

				1,314,400
Bermuda 0.8%

Diversified Financials 0.3%
Guoco Group Ltd.		14,000		137,375
Jardine Strategic Holdings Ltd.		9,000		151,996

				289,371
Energy 0.3%
Seadrill Ltd.		14,000		377,130
Insurance 0.0%
Hiscox Ltd.		7,084		33,645
Real Estate 0.1%
Great Eagle Holdings Ltd.		6,000		16,536
Pacific Century Premium Developments Ltd.		189,000		68,634
Sinolink Worldwide Holdings Ltd.		288,000		44,018

				129,188
Transportation 0.1%
Orient Overseas International Ltd.		16,000		94,361
Transport International Holdings Ltd.		2,800		13,891

				108,252

				937,586

See financial notes.

14 Laudus International Equity Funds

Laudus Rosenberg International Equity Fund


	Number of		Value
Security	Shares		($)
Denmark 1.5%

Food, Beverage & Tobacco 0.5%
Carlsberg A/ S, Class B		2,349		301,276
Danisco A/ S		3,600		263,599

				564,875
Transportation 1.0%
AP Moller – Maersk A/ S, Series A		92		1,023,510
D/ S Norden A/ S		2,000		224,063

				1,247,573

				1,812,448
Finland 1.3%

Capital Goods 0.3%
Metso Corp. Oyj		7,200		388,926
Materials 0.6%
Rautaruukki Oyj		4,636		224,105
UPM-Kymmene Oyj		23,950		426,067

				650,172
Technology Hardware & Equipment 0.4%
Nokia Oyj		14,800		467,242

				1,506,340
France 8.6%

Automobiles & Components 1.9%
Compagnie Generale des Etablissements Michelin, Class B		7,489		784,288
PSA Peugeot Citroen		9,600		745,046
Renault S.A.		4,600		509,175
Valeo S.A.		3,782		150,115

				2,188,624
Banks 0.4%
BNP Paribas		2,600		262,163
Natixis		13,858		222,254

				484,417
Capital Goods 1.8%
Compagnie de Saint-Gobain		11,400		931,695
Nexans S.A.		1,105		130,409
Schneider Electric S.A.		5,700		736,335
Thales S.A.		4,538		293,719

				2,092,158
Consumer Durables & Apparel 0.4%
Beneteau		4,200		113,016
Christian Dior S.A.		1,800		199,513
Thomson		16,610		115,747

				428,276
Energy 1.9%
Compagnie Generale de Geophysique-Veritas (CGG-Veritas) *		334		83,081
Total S.A.		29,502		2,185,622

				2,268,703
Food, Beverage & Tobacco 0.1%
Vilmorin & Cie		361		62,706
Materials 0.9%
Arkema *		3,000		168,152
Ciments Francais S.A.		2,080		346,534
Eramet		690		556,033

				1,070,719
Media 0.0%
Vivendi		1,058		41,385
Pharmaceuticals & Biotechnology 0.2%
Sanofi-Aventis		3,000		225,008
Software & Services 0.5%
Atos Origin S.A. *		2,217		123,437
Cap Gemini S.A.		8,400		478,293

				601,730
Telecommunication Services 0.4%
France Telecom S.A.		12,595		423,134
Utilities 0.1%
Suez S.A.		2,446		160,328

				10,047,188
Germany 8.9%

Automobiles & Components 1.9%
Bayerische Motoren Werke (BMW) AG		1,863		102,710
Daimler AG		23,400		2,000,150
Volkswagen AG		528		152,964

				2,255,824
Capital Goods 0.9%
Bilfinger Berger AG		200		17,194
KSB AG		41		27,764
Siemens AG		9,413		1,020,847

				1,065,805
Household & Personal Products 0.5%
Henkel KGaA		14,964		635,743
Insurance 0.4%
Allianz SE – Reg’d		1,497		296,009
Muenchener Rueckversicherungs-Gesellschaft AG – Reg’d		691		135,406

				431,415
Materials 3.1%
Altana AG		2,853		60,064
BASF SE		14,300		1,923,470
Lanxess		4,500		180,871
Salzgitter AG		2,160		376,270
ThyssenKrupp AG		19,500		1,119,495

				3,660,170
Telecommunication Services 0.1%
Deutsche Telekom AG – Reg’d		9,900		164,483
Transportation 0.7%
Deutsche Post AG – Reg’d		26,627		813,205
Utilities 1.3%
E.ON AG		2,223		411,313
RWE AG		8,698		1,069,154

				1,480,467

				10,507,112

See financial notes.

Laudus International Equity Funds 15

Laudus Rosenberg International Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Greece 0.5%

Banks 0.0%
Agricultural Bank of Greece		2,267		10,349
Food, Beverage & Tobacco 0.3%
Coca-Cola Hellenic Bottling Co., S.A.		7,355		343,535
Telecommunication Services 0.1%
Hellenic Telecommunications Organization S.A. (OTE)		4,500		127,585
Utilities 0.1%
Public Power Corp. S.A. (PPC)		2,707		118,423

				599,892
Hong Kong 2.1%

Banks 0.7%
BOC Hong Kong (Holdings) Ltd.		142,000		345,032
Hang Seng Bank Ltd.		22,800		415,693
Wing Hang Bank Ltd.		3,000		45,747

				806,472
Real Estate 0.6%
Cheung Kong (Holdings) Ltd.		32,000		460,699
Kowloon Development Co., Ltd.		3,000		5,827
New World Development Co., Ltd.		88,000		216,462
Wheelock Properties Ltd.		5,000		4,006

				686,994
Retailing 0.0%
Wing On Co. International Ltd.		24,000		40,235
Transportation 0.1%
Hopewell Holdings Ltd.		44,000		168,086
Utilities 0.7%
CLP Holdings Ltd.		54,500		450,978
Hongkong Electric Holdings Ltd.		49,500		314,142

				765,120

				2,466,907
Ireland 0.3%

Banks 0.2%
Anglo Irish Bank Corp. plc		20,000		267,223
Energy 0.1%
Dragon Oil a plc *		11,418		101,453

				368,676
Italy 5.4%

Automobiles & Components 0.7%
Fiat S.p.A.		37,000		857,329
Banks 0.6%
Intesa Sanpaolo S.p.A.		72,997		515,001
UniCredit S.p.A.		38,000		254,608

				769,609
Capital Goods 0.1%
C.I.R. S.p.A. – Compagnie Industriali Riunite		3,549		9,510
Danieli S.p.A. – Officine Meccaniche Danieli & Co.		3,600		130,168

				139,678
Diversified Financials 0.1%
IFIL Investments S.p.A.		12,000		96,891
Energy 1.7%
Eni S.p.A.		57,600		1,960,661
Insurance 0.1%
Fondiaria – Sai S.p.A.		1,600		66,331
Materials 0.2%
Buzzi Unicem S.p.A.		4,800		119,736
Italcementi S.p.A.		7,000		142,177

				261,913
Telecommunication Services 0.7%
Telecom Italia S.p.A.		369,197		769,603
Utilities 1.2%
Enel S.p.A.		128,000		1,359,304
Iride S.p.A.		15,770		50,001

				1,409,305

				6,331,320
Japan 19.8%

Automobiles & Components 2.7%
Bosch Corp.		8,000		32,641
Bridgestone Corp.		21,600		372,697
Fuji Heavy Industries Ltd.		26,000		110,052
HI-LEX Corp.		700		9,805
Honda Motor Co., Ltd.		30,100		869,429
Mazda Motor Corp.		54,000		193,359
Mitsuba Corp.		3,000		12,996
NGK Spark Plug Co., Ltd.		4,000		52,351
Nippon Seiki Co., Ltd.		1,000		13,647
Nissan Motors Co., Ltd.		1,400		11,737
Showa Corp.		3,100		27,779
Sumitomo Rubber Industries Ltd.		9,500		73,150
Takata Corp.		2,300		51,237
The Yokohama Rubber Co., Ltd.		10,000		48,412
Topre Corp.		1,800		16,223
Toyota Motor Corp.		20,600		1,040,873
Yamaha Motor Co., Ltd.		10,100		187,709

				3,124,097
Banks 0.8%
Chuo Mitsui Trust Holdings, Inc.		19,000		115,808
Mitsubishi UFJ Financial Group, Inc.		44,500		389,278
Shinsei Bank Ltd.		12,000		39,631
Sumitomo Mitsui Financial Group, Inc.		11		73,071
The Aichi Bank Ltd.		400		29,399
The Bank of Nagoya Ltd.		4,000		24,572
The Daishi Bank Ltd.		10,000		39,006
The Eighteenth Bank Ltd.		7,000		25,852
The Higashi-Nippon Bank Ltd.		5,000		17,347
The Hyakugo Bank Ltd.		10,000		59,657

See financial notes.

16 Laudus International Equity Funds

Laudus Rosenberg International Equity Fund


	Number of		Value
Security	Shares		($)
The Hyakujushi Bank Ltd.		2,000		10,675
The Kagawa Bank Ltd.		2,000		12,606
The San-in Godo Bank Ltd.		2,000		16,059
The Yachiyo Bank Ltd.		5		21,287
Yamaguchi Financial Group, Inc.		1,000		11,374

				885,622
Capital Goods 3.8%
Aichi Corp.		2,300		17,240
Aida Engineering Ltd.		1,000		6,306
Amada Co., Ltd.		14,000		107,182
Asahi Glass Co., Ltd.		18,000		199,712
Chudenko Corp.		500		7,871
CKD Corp.		1,900		12,740
Daihen Corp.		3,000		10,802
Fuji Electric Holdings Co., Ltd.		39,000		159,518
Fuji Machine Manufacturing Co., Ltd.		2,100		44,005
Futaba Corp.		1,700		29,407
Itochu Corp.		46,000		460,057
JS Group Corp.		3,600		54,528
Kamei Corp.		2,000		8,567
Kawasaki Heavy Industries Ltd.		32,000		71,899
Maeda Road Construction Co., Ltd.		4,000		33,090
Marubeni Corp.		46,000		338,473
Mitsubishi Corp.		27,000		826,092
Mitsubishi Heavy Industries Ltd.		97,000		418,829
Mitsui & Co., Ltd.		38,000		779,783
Mori Seiki Co., Ltd.		1,700		30,865
Nippo Corp.		3,000		16,969
Nippon Thompson Co., Ltd.		3,000		18,491
Nishimatsu Construction Co., Ltd.		7,000		15,037
Nitto Kogyo Corp.		1,800		22,742
Okaya & Co., Ltd.		500		5,383
Sintokogio Ltd.		1,600		13,301
Sojitz Corp.		54,700		183,085
Sumitomo Corp.		33,800		450,515
Sumitomo Electric Industries Ltd.		3,100		39,628
Takeuchi Mfg. Co., Ltd.		500		10,315
Toyota Tsusho Corp.		3,500		75,170
Trusco Nakayama Corp.		300		4,626

				4,472,228
Consumer Durables & Apparel 1.0%
Heiwa Corp.		5,900		56,368
Hitachi Koki Co., Ltd.		3,100		39,900
Kurabo Industries Ltd.		9,000		20,342
Matsushita Electric Industrial Co., Ltd.		40,000		869,480
Nikon Corp.		3,000		80,294
Roland Corp.		800		15,669
Sega Sammy Holdings, Inc.		4,200		44,755
Sony Corp.		900		36,199
Tokyo Style Co., Ltd.		1,000		10,013

				1,173,020
Consumer Services 0.0%
Plenus Co., Ltd.		1,200		15,526
Royal Holdings Co., Ltd.		800		8,413
Saizeriya Co., Ltd.		1,500		14,444

				38,383
Energy 0.9%
AOC Holdings, Inc.		500		4,555
Cosmo Oil Co., Ltd.		24,000		76,053
Idemitsu Kosan Co., Ltd.		300		23,403
Inpex Holdings, Inc.		46		519,955
Japan Petroleum Exploration Co., Ltd.		1,200		80,133
Nippon Mining Holdings, Inc.		43,000		231,098
Nippon Oil Corp.		19,000		119,831

				1,055,028
Food & Staples Retailing 0.3%
Aeon Co., Ltd.		19,300		232,541
Cawachi Ltd.		800		20,776
Okuwa Co., Ltd.		1,000		14,126
Uny Co., Ltd.		11,000		105,586

				373,029
Food, Beverage & Tobacco 1.0%
Asahi Breweries Ltd.		18,000		371,689
Japan Tobacco, Inc.		37		185,092
Kirin Holdings Co., Ltd.		28,000		533,738
Mikuni Coca-Cola Bottling Co., Ltd.		1,700		19,597
Q.P. Corp.		200		2,076
The Nisshin Oillio Group Ltd.		1,000		3,868

				1,116,060
Health Care Equipment & Services 0.0%
Hitachi Medical Corp.		2,000		13,711
Household & Personal Products 0.0%
Aderans Hodings Co., Ltd.		400		7,408
Kose Corp.		400		8,699

				16,107
Insurance 1.2%
Aioi Insurance Co., Ltd.		30,000		168,126
Millea Holdings, Inc.		19,500		725,572
Mitsui Sumitomo Insurance Co., Ltd.		1,000		10,129
Nissay Dowa General Insurance Co., Ltd.		1,000		5,182
Sompo Japan Insurance, Inc.		15,000		133,737
T&D Holdings, Inc.		7,150		379,187
The Fuji Fire & Marine Insurance Co., Ltd.		4,000		10,715

				1,432,648
Materials 3.1%
Asahi Kasei Corp.		42,000		220,870
Denki Kagaku Kogyo Kabushiki Kaisha		20,000		63,619
DIC Corp.		37,000		117,050
JFE Holdings, Inc.		1,600		71,569
Kaneka Corp.		16,000		101,138
Kobe Steel Ltd.		117,000		337,321
Kuraray Co., Ltd.		12,000		144,223
Mitsubishi Chemical Corp.		38,500		256,425
Mitsubishi Gas Chemical Co., Inc.		17,000		121,405
Mitsubishi Rayon Co., Ltd.		22,000		71,019
Mitsui Chemicals, Inc.		26,000		174,319
Nippon Shokubai Co., Ltd.		7,000		46,610
Nippon Soda Co., Ltd.		5,000		16,304

See financial notes.

Laudus International Equity Funds 17

Laudus Rosenberg International Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Nippon Steel Corp.		118,000		603,312
Nisshin Steel Co., Ltd.		43,000		150,265
Osaka Steel Co., Ltd.		1,700		22,055
Sakai Chemical Industry Co., Ltd.		3,000		10,734
Shin-Etsu Polymer Co., Ltd.		400		2,418
Showa Denko K.K.		9,000		30,390
Sumitomo Chemical Co., Ltd.		48,000		309,832
Sumitomo Metal Mining Co., Ltd.		10,000		188,781
Teijin Ltd.		51,000		216,226
Toagosei Co., Ltd.		10,000		41,335
Tokuyama Corp.		11,000		80,783
Tosoh Corp.		28,000		97,301
Toyo Seikan Kaisha Ltd.		3,000		57,432
Yodogawa Steel Works Ltd.		7,000		34,206
Zeon Corp.		9,000		40,609

				3,627,551
Media 0.1%
Daiichikosho Co., Ltd.		100		976
Fuji Television Network, Inc.		29		43,038
Hakuhodo Dy Holdings, Inc.		380		22,889
Sky Perfect JSAT Corp.		66		26,746
TV Asahi Corp.		6		8,536

				102,185
Pharmaceuticals & Biotechnology 0.5%
Dainippon Sumitomo Pharma Co., Ltd.		11,000		101,613
Eisai Co., Ltd.		1,600		55,089
Mitsubishi Tanabe Pharma Corp.		5,000		58,236
Nippon Shinyaku Co., Ltd.		3,000		31,194
Taisho Pharmaceutical Co., Ltd.		7,000		139,300
Takeda Pharmaceutical Co., Ltd.		4,300		215,869
Torii Pharmaceutical Co., Ltd.		1,200		17,031

				618,332
Retailing 0.1%
Aoyama Trading Co., Ltd.		2,500		54,135
AT-Group Co., Ltd.		2,000		25,357
Belluna Co., Ltd.		1,550		13,038
DCM Japan Holdings Co., Ltd.		1,100		5,536
Fields Corp.		2		2,776
Fujitsu Business Systems Ltd.		200		2,324
Nafco Co., Ltd.		300		4,223
Sazaby League, Ltd.		100		1,840
Senshukai Co., Ltd.		1,700		13,900

				123,129
Software & Services 0.1%
Nintendo Co., Ltd.		300		156,961
Technology Hardware & Equipment 2.7%
Dainippon Screen Mfg. Co., Ltd.		8,000		33,840
Eizo Nanao Corp.		500		9,735
Fujifilm Holdings Corp.		15,800		564,736
Fujitsu Ltd.		63,000		416,647
Furuno Electric Co., Ltd.		900		8,851
Hitachi Ltd.		84,000		501,545
Hitachi Maxell Ltd.		3,200		33,278
Japan Aviation Electronics Industry Ltd.		2,000		14,728
Japan Digital Laboratory Co., Ltd.		1,400		19,546
Mabuchi Motor Co., Ltd.		900		43,786
NEC Corp.		81,000		313,664
Nichicon Corp.		2,000		15,761
Omron Corp.		10,000		207,216
Riso Kagaku Corp.		1,200		14,737
Seiko Epson Corp.		6,800		183,248
Toshiba Corp.		94,000		631,747
Toshiba Tec Corp.		7,000		42,962
Yokogawa Electric Corp.		8,900		90,412

				3,146,439
Telecommunication Services 0.6%
Nippon Telegraph & Telephone Corp.		155		671,398
Okinawa Cellular Telephone Co.		1		1,918

				673,316
Transportation 0.6%
Central Japan Railway Co.		7		72,729
Kawasaki Kisen Kaisha Ltd.		21,000		206,131
Keisei Electric Railway Co., Ltd.		14,000		75,700
Nippon Yusen Kabushiki Kaisha		8,000		75,854
West Japan Railway Co.		54		239,125

				669,539
Utilities 0.3%
Hokkaido Electric Power Co., Inc.		9,300		216,860
The Kansai Electric Power Co., Inc.		5,500		137,608
The Okinawa Electric Power Co., Inc.		600		23,674

				378,142

				23,195,527
Luxembourg 1.4%

Household & Personal Products 0.1%
Oriflame Cosmetics S.A.		982		65,280
Materials 1.3%
ArcelorMittal		2,550		208,859
ArcelorMittal N.V.		16,994		1,389,926

				1,598,785

				1,664,065
Netherlands 2.8%

Capital Goods 0.2%
Koninklijke BAM Groep N.V.		1,840		43,546
Koninklijke Boskalis Westminster N.V., C.V.A.		2,717		156,981

				200,527
Consumer Durables & Apparel 0.1%
TomTom N.V. *		3,300		136,461
Diversified Financials 0.2%
ING Groep N.V. C.V.A.		5,874		219,602
SNS Reaal		3,413		69,165

				288,767
Food, Beverage & Tobacco 0.7%
CSM		315		10,758
Heineken N.V.		10,921		634,284
Nutreco Holding N.V.		1,600		122,909

				767,951

See financial notes.

18 Laudus International Equity Funds

Laudus Rosenberg International Equity Fund


	Number of		Value
Security	Shares		($)
Materials 1.3%
Akzo Nobel N.V.		13,289		1,066,251
Koninklijke DSM N.V.		9,133		440,398

				1,506,649
Semiconductors & Semiconductor Equipment 0.2%
STMicroelectronics N.V.		21,212		225,234
Transportation 0.1%
TNT N.V.		4,859		180,245

				3,305,834
New Zealand 0.1%

Materials 0.0%
Fletcher Building Ltd.		1,100		7,256
Retailing 0.0%
The Warehouse Group Ltd.		4,700		21,650
Transportation 0.1%
Air New Zealand Ltd.		76,400		77,484

				106,390
Norway 0.9%

Energy 0.7%
Aker Solutions A.S.A. *		8,371		191,745
Fred. Olsen Energy A.S.A.		333		18,967
Petroleum Geo-Services A.S.A.		8,000		198,610
StatoilHydro A.S.A.		16,100		483,015

				892,337
Materials 0.2%
Yara International A.S.A.		3,437		199,887

				1,092,224
Portugal 0.6%

Utilities 0.6%
EDP – Energias de Portugal S.A.		118,638		720,228
Singapore 1.3%

Banks 0.4%
DBS Group Holdings Ltd.		22,000		289,703
United Overseas Bank Ltd.		12,000		167,914

				457,617
Capital Goods 0.4%
Fraser & Neave Ltd.		1,000		3,561
Keppel Corp., Ltd.		37,000		269,344
SembCorp Industries Ltd.		13,000		38,758
Singapore Technologies Engineering Ltd.		81,000		200,361

				512,024
Diversified Financials 0.1%
UOB-Kay Hian Holdings Ltd.		40,000		57,251
Materials 0.0%
NatSteel Group Ltd.		15,000		16,620
Real Estate 0.1%
Ho Bee Investment Ltd.		45,000		30,505
Singapore Land Ltd.		2,000		9,953
United Industrial Corp., Ltd.		9,000		18,091

				58,549
Retailing 0.1%
Jardine Cycle & Carriage Ltd.		11,000		157,479
Transportation 0.2%
Neptune Orient Lines Ltd.		9,000		21,476
Singapore Airlines Ltd.		20,540		233,705

				255,181

				1,514,721
Spain 3.4%

Banks 0.6%
Banco Bilbao Vizcaya Argentaria S.A.		12,456		273,910
Banco Santander S.A.		22,400		446,252

				720,162
Capital Goods 0.2%
Fomento de Construcciones y Contratas S.A. (FCC)		2,700		177,909
Obrascon Huarte Lain S.A.		479		17,770

				195,679
Consumer Services 0.1%
Sol Melia S.A.		9,000		126,701
Energy 1.2%
Repsol YPF S.A.		38,869		1,339,078
Insurance 0.1%
Mapfre S.A.		32,000		160,678
Materials 0.1%
Cementos Portland Valderrivas S.A.		1,572		152,709
Telecommunication Services 0.6%
Telefonica S.A.		23,524		675,891
Transportation 0.1%
Iberia Lineas Aereas de Espana S.A.		28,660		124,801
Utilities 0.4%
Union Fenosa S.A.		7,200		484,020

				3,979,719
Sweden 2.4%

Banks 0.2%
Swedbank AB, Class A		9,889		277,351
Capital Goods 1.1%
AB SKF, Class B		4,750		95,634
Hexagon AB, Class B		3,591		73,151
NCC AB, Class B		4,000		116,438
Volvo AB, Class B		67,500		1,022,717

				1,307,940
Food, Beverage & Tobacco 0.3%
Swedish Match AB		13,819		301,793
Materials 0.4%
Boliden AB		12,229		130,535
SSAB Svenskt Stal AB, Class A		7,437		209,457
SSAB Svenskt Stal AB, Class B		4,072		104,771
Svenska Cellulosa AB (SCA), Class B		3,031		55,264

				500,027

See financial notes.

Laudus International Equity Funds 19

Laudus Rosenberg International Equity Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Telecommunication Services 0.4%
Tele2 AB, Class B		22,000		416,168

				2,803,279
Switzerland 8.3%

Capital Goods 0.5%
ABB Ltd. – Reg’d		14,387		387,761
Bucher Industries AG – Reg’d		614		166,709
Georg Fischer AG – Reg’d *		171		84,501

				638,971
Commercial Services & Supplies 0.4%
Adecco S.A. – Reg’d		8,700		502,566
Diversified Financials 0.2%
UBS AG – Reg’d		6,800		198,003
Food, Beverage & Tobacco 1.6%
Nestle S.A. – Reg’d		3,737		1,867,911
Insurance 2.5%
Baloise Holding AG – Reg’d		1,914		190,318
Helvetia Holding AG		152		57,292
Schweizerische Naional-Versicherungs-Gesellschaft – Reg’d		107		87,914
Swiss Life Holding – Reg’d *		2,133		593,228
Zurich Financial Services AG – Reg’d		6,300		1,985,812

				2,914,564
Materials 2.3%
Ciba Holding AG		4,500		164,108
Clariant AG – Reg’d *		12,302		104,883
Holcim Ltd. – Reg’d		8,600		903,290
Schmolz & Bickenbach AG – Reg’d		232		19,248
Syngenta AG – Reg’d		5,040		1,472,409

				2,663,938
Pharmaceuticals & Biotechnology 0.8%
Novartis AG – Reg’d		8,364		429,191
Roche Holding AG		2,500		471,174

				900,365
Transportation 0.0%
Swissair Group (a)(b)(c)*		30		—
Utilities 0.0%
Elektrizitaets-Gesellschaft Laufenburg AG		18		23,526

				9,709,844
United Kingdom 20.2%

Banks 0.9%
Barclays plc		3,680		33,200
HSBC Holdings plc		51,800		853,349
Royal Bank of Scotland Group plc		29,255		195,985

				1,082,534
Capital Goods 1.8%
AMEC plc		15,965		229,306
BAE Systems plc		158,251		1,525,997
Charter plc *		2,427		40,947
Cookson Group plc		6,300		83,121
IMI plc		20,000		180,256
Qinetiq plc		16,928		64,890

				2,124,517
Commercial Services & Supplies 0.1%
WS Atkins plc		5,763		120,323
Energy 4.8%
BG Group plc		32,263		747,578
BP plc		82,000		830,798
Dana Petroleum plc *		1,974		49,386
Royal Dutch Shell plc, Class A		67,976		2,344,435
Royal Dutch Shell plc, Class B		50,387		1,697,363

				5,669,560
Food & Staples Retailing 0.2%
Tesco plc		21,990		165,730
Food, Beverage & Tobacco 0.9%
Diageo plc		14,000		283,315
Imperial Tobacco Group plc		16,146		743,502

				1,026,817
Insurance 2.4%
Aviva plc		82,600		1,012,794
Friends Provident plc		22,637		55,557
Old Mutual plc		287,729		631,457
Prudential plc		83,448		1,101,794
Standard Life plc		3,926		19,192

				2,820,794
Materials 4.3%
Anglo American plc		26,754		1,603,673
Antofagasta plc		10,690		148,833
BHP Billiton plc		49,022		1,443,888
Kazakhmys plc		6,500		206,119
Rexam plc		13,000		110,092
Rio Tinto plc		3,532		367,068
Vedanta Resources plc		3,900		162,525
Xstrata plc		14,080		986,179

				5,028,377
Pharmaceuticals & Biotechnology 0.4%
AstraZeneca plc		1,841		69,056
GlaxoSmithKline plc		19,500		412,468

				481,524
Retailing 0.3%
Home Retail Group plc		64,000		332,204
Software & Services 0.1%
LogicaCMG plc		78,000		163,959
Telecommunication Services 2.6%
Vodafone Group plc		1,004,600		2,986,096
Utilities 1.4%
British Energy Group plc		40,252		521,561
Centrica plc		107,333		635,930
United Utilities plc		35,742		490,220

				1,647,711

				23,650,145

Total Common Stock (Cost $108,493,630)				115,186,869

See financial notes.

20 Laudus International Equity Funds

Laudus Rosenberg International Equity Fund


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.5% of net assets
Repurchase Agreement 0.5%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $597,033 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $613,196.)		597,000		597,000

Total Short-Term Investment (Cost $597,000)				597,000

End of Investments.

At 03/31/08, the tax basis cost of the fund’s investments was $109,717,096 and the unrealized appreciation and depreciation were $12,440,733 and ($6,373,960), respectively, with a net unrealized appreciation of $6,066,773.

At 03/31/08, the prices of certain foreign securities held by the fund aggregating $114,892,348 were adjusted from their closing market prices 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 0.0% of net assets.

CVA – Dutch Certificate

See financial notes.

Laudus International Equity Funds 21

Laudus Rosenberg International Discovery Fund

Portfolio Holdings as of March 31, 2008


				Cost		Value
Holdings by Category				($)		($)

	96.2	%	Common Stock		258,411,648		251,580,050
	1.8	%	Preferred Stock		4,285,865		4,813,281
	—	%	Rights		—		18,861
	2.4	%	Short-Term Investment		6,290,000		6,290,000

	100.4	%	Total Investments		268,987,513		262,702,192
	(0.4	)%	Other Assets and Liabilities				(1,128,999	)

	100.0	%	Net Assets				261,573,193


	Number of		Value
Security	Shares		($)
Common Stock 96.2% of net assets
Argentina 0.4%

Energy 0.2%
Petrobras Energia Participaciones S.A. ADR		39,100		443,785
Telecommunication Services 0.2%
Telecom Argentina S.A. ADR *		22,100		468,078

				911,863
Australia 5.2%

Capital Goods 0.1%
Leighton Holdings Ltd.		2,400		94,440
Macmahon Holdings Ltd.		44,700		60,857

				155,297
Commercial Services & Supplies 0.0%
Downer EDI Ltd.		9,600		55,023
Consumer Services 0.0%
Flight Centre Ltd.		4,500		87,518
Energy 1.2%
Aquila Resources Ltd. *		19,000		174,550
Centennial Coal Co., Ltd.		82,700		309,318
Felix Resources Ltd.		16,900		192,123
New Hope Corp., Ltd.		75,000		182,347
Origin Energy Ltd.		124,100		1,039,601
Queensland Gas Co. Ltd. *		62,700		212,241
Santos Ltd.		78,600		1,045,273

				3,155,453
Food, Beverage & Tobacco 0.6%
Coca-Cola Amatil Ltd.		73,600		572,820
Foster’s Group Ltd.		159,900		749,488
Lion Nathan Ltd.		45,500		364,606

				1,686,914
Materials 3.0%
Amcor Ltd.		42,659		279,135
BlueScope Steel Ltd.		97,200		881,528
Dominion Mining Ltd.		39,500		121,860
Fortescue Metals Group Ltd. *		208,200		1,243,224
Incitec Pivot Ltd.		7,700		995,558
Macarthur Coal Ltd.		18,000		215,423
Mount Gibson Iron Ltd. *		75,400		197,792
Newcrest Mining Ltd.		44,900		1,362,648
Nufarm Ltd.		14,500		227,777
OneSteel Ltd.		126,900		743,001
Orica Ltd.		33,100		884,215
Portman Ltd. *		18,800		214,230
Sally Malay Mining Ltd.		15,700		75,761
Sims Group Ltd.		17,000		462,635

				7,904,787
Media 0.1%
Seven Network Ltd.		21,800		190,509
Transportation 0.2%
Toll Holdings Ltd.		49,400		454,687

				13,690,188
Austria 0.7%

Capital Goods 0.2%
Andritz AG		8,400		460,721
Energy 0.1%
OMV AG		6,200		409,784
Materials 0.1%
Voestalpine AG		5,600		389,433
Utilities 0.3%
EVN AG		5,280		671,831

				1,931,769
Belgium 1.3%

Food & Staples Retailing 0.4%
Delhaize Group		14,400		1,135,689
Materials 0.8%
Solvay S.A.		3,800		484,502
Tessenderlo Chemie N.V.		2,835		128,761
Umicore		25,500		1,325,426

				1,938,689
Pharmaceuticals & Biotechnology 0.1%
UCB S.A.		9,800		340,412
Retailing 0.0%
S.A. D’Ieteren N.V.		164		58,291

				3,473,081
Bermuda 1.7%

Capital Goods 0.2%
Chen Hsong Holdings Ltd.		310,000		149,550
Emperor International Holdings Ltd.		615,000		244,576
NWS Holdings Ltd.		14,000		47,587

				441,713
Consumer Durables & Apparel 0.1%
Yue Yuen Industrial (Holdings) Ltd.		102,500		323,214
Consumer Services 0.0%
Star Cruises Ltd. *		189,000		39,101
Diversified Financials 0.5%
Guoco Group Ltd.		30,000		294,376
Jardine Matheson Holdings Ltd.		19,600		621,573
Jardine Strategic Holdings Ltd.		16,000		270,214

				1,186,163
Energy 0.1%
CNPC Hong Kong Ltd.		660,000		306,447
Food & Staples Retailing 0.0%
Dairy Farm International Holdings Ltd.		27,900		123,910

See financial notes.

22 Laudus U.S. Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Food, Beverage & Tobacco 0.0%
People’s Food Holdings Ltd.		7,000		5,341
Insurance 0.2%
Hiscox Ltd.		126,558		601,072
Real Estate 0.3%
Great Eagle Holdings Ltd.		117,000		322,439
SEA Holdings Ltd.		36,000		24,087
Sinolink Worldwide Holdings Ltd.		1,086,000		165,986
SRE Group Ltd.		982,000		173,988

				686,500
Retailing 0.2%
Chow Sang Sang Holdings International Ltd.		48,000		49,801
Esprit Holdings Ltd.		30,500		370,097
Wing On Co. International Ltd.		29,000		48,618

				468,516
Technology Hardware & Equipment 0.0%
Digital China Holdings Ltd.		75,000		49,347
TPV Technology Ltd.		100,000		59,391

				108,738
Transportation 0.1%
Transport International Holdings Ltd.		56,000		277,816
Utilities 0.0%
Cheung Kong Infrastructure Holdings Ltd.		1,000		4,037

				4,572,568
Brazil 0.8%

Banks 0.1%
Banco Nossa Caixa S.A.		17,100		207,282
Diversified Financials 0.0%
Bradespar S.A.		2,900		76,900
Food, Beverage & Tobacco 0.2%
Souza Cruz S.A.		15,900		412,202
Household & Personal Products 0.1%
Natura Cosmeticos S.A.		31,800		324,397
Insurance 0.0%
Porto Seguro S.A.		2,400		24,346
Materials 0.1%
Acos Villares S.A.		519,000		257,326
Utilities 0.3%
Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP *		23,000		506,087
EDP – Energias do Brasil S.A.		15,000		223,970

				730,057

				2,032,510
Canada 6.6%

Automobiles & Components 0.1%
Linamar Corp.		14,100		188,742
Magna International, Inc., Class A		300		21,815

				210,557
Capital Goods 0.2%
Bombardier, Inc., Class B *		87,800		467,890
Diversified Financials 0.1%
Dundee Corp., Class A *		10,450		134,487
Energy 1.3%
Addax Petroleum Corp.		25,800		1,024,258
AltaGas Income Trust		11,200		265,365
Freehold Royalty Trust		10,200		179,266
Keyera Facilities Income Fund		13,600		278,241
Nexen, Inc.		15,700		465,899
Penn West Energy Trust		22,200		622,885
Provident Energy Trust		53,400		569,663

				3,405,577
Food & Staples Retailing 0.3%
George Weston Ltd.		16,200		745,252
Food, Beverage & Tobacco 0.1%
Rothmans, Inc.		15,100		384,396
Insurance 0.4%
Industrial Alliance Insurance & Financial Services, Inc.		22,600		834,028
Power Corp. of Canada		4,500		149,057

				983,085
Materials 3.3%
Agnico-Eagle Mines Ltd.		1,400		94,956
Agrium, Inc.		22,780		1,415,025
European Goldfields Ltd. *		440		2,298
First Quantum Minerals Ltd.		9,820		796,353
Fording Canadian Coal Trust		9,500		497,374
Gerdau Ameristeel Corp.		6,100		86,943
IAMGOLD Corp.		84,000		622,768
Inmet Mining Corp.		10,500		767,207
Kinross Gold Corp.		76,100		1,697,784
Major Drilling Group International, Inc. *		2,670		139,164
Methanex Corp.		28,300		744,410
Northgate Minerals Corp. *		52,200		166,296
Potash Corp. of Saskatchewan, Inc.		4,700		730,333
Sherritt International Corp.		53,000		749,730
Teck Cominco Ltd., Class B		3,100		127,117
Yamana Gold, Inc.		11,800		173,129

				8,810,887
Software & Services 0.0%
CGI Group, Inc., Class A *		1,700		18,053
Utilities 0.8%
ATCO Ltd., Class I		100		4,639
Fortis, Inc.		35,100		998,852
TransAlta Corp.		33,300		1,035,870

				2,039,361

				17,199,545
Cayman Islands 0.4%

Capital Goods 0.1%
China State Construction International Holdings Ltd.		142,000		233,542
Consumer Durables & Apparel 0.1%
Shenzhou International Group		516,000		145,952
Food, Beverage & Tobacco 0.1%
Chaoda Modern Agriculture (Holdings) Ltd.		178,200		203,554

See financial notes.

Laudus International Equity Funds 23

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Real Estate 0.1%
Greentown China Holdings Ltd.		225,000		212,087
New World China Land Ltd.		449,200		286,434

				498,521
Transportation 0.0%
Hopewell Highway Infrastructure Ltd.		57,500		44,237

				1,125,806
Chile 0.4%

Banks 0.0%
Corpbanca S.A. ADR		700		24,360
Diversified Financials 0.0%
Administradora de Fondos de Pensiones Provida S.A. ADR		266		9,853
Food, Beverage & Tobacco 0.2%
Compania Cervecerias Unidas S.A. ADR		11,000		388,740
Embotelladora Andina S.A. Series A ADR		1,817		34,977
Embotelladora Andina S.A. Series B ADR		2,000		42,000

				465,717
Transportation 0.2%
Lan Airlines S.A. ADR		39,600		559,152

				1,059,082
China 1.9%

Automobiles & Components 0.2%
Chongqing Changan Automobile Co. Ltd., Class B *		264,000		173,819
Dongfeng Motor Group Co., Ltd., Class H		530,000		240,797
Jiangling Motors Corp., Ltd.		64,700		67,263
Zhejiang Glass Co., Ltd., Class H *		55,000		38,527

				520,406
Capital Goods 0.5%
China International Marine Containers (Group) Co., Ltd., Class B		171,800		294,236
First Tractor Co., Ltd., Class H *		304,000		167,393
Harbin Power Equipment Co., Ltd., Class H		118,000		212,463
Jingwei Textile Machinery Co., Ltd., Class H		96,000		27,825
Shanghai Electric Group Co., Ltd., Class H		412,000		254,205
Shanghai Mechanical & Electrical Industry Co. Ltd., Class B		110,341		171,602
Weichai Power Co., Ltd., Class H		51,000		191,580

				1,319,304
Consumer Durables & Apparel 0.0%
Weiqiao Textile Co., Ltd., Class H		45,000		58,267
Energy 0.2%
China Oilfield Services Ltd., Class H		34,000		56,545
Yanzhou Coal Mining Co., Ltd., Class H		346,000		491,979

				548,524
Materials 0.2%
Bengang Steel Plates Co., Ltd.		260,200		237,039
Jiangxi Copper Co., Ltd., Class H		103,000		197,757
Maanshan Iron & Steel Co., Ltd., Class H		226,000		120,036

				554,832
Pharmaceuticals & Biotechnology 0.1%
Livzon Pharmaceutical Group, Inc., Class B *		97,400		164,953
Transportation 0.5%
China Shipping Container Lines Co., Ltd., Class H		908,750		348,964
China Shipping Development Co. Ltd., Class H		102,000		325,574
Guangshen Railway Co., Ltd., Class H		342,000		179,484
Sinotrans Ltd., Class H		343,000		100,073
Zhejiang Expressway Co., Ltd., Class H		394,000		345,780

				1,299,875
Utilities 0.2%
Datang International Power Generation Co., Ltd., Class H		90,000		48,366
Guangdong Electric Power Development Co. Ltd., Class B		186,100		104,571
Huadian Power International Corp., Ltd., Class H		32,000		8,060
Huaneng Power International, Inc., Class H		274,000		209,579
Zhejiang Southeast Electric Power Co. Ltd., Class B		69,400		63,963

				434,539

				4,900,700
Columbia 0.2%

Banks 0.2%
Bancolombia S.A. ADR		15,400		546,084
Denmark 1.9%

Food, Beverage & Tobacco 1.1%
Carlsberg A/S, Class B		7,600		974,755
Danisco A/S		26,400		1,933,060

				2,907,815
Transportation 0.8%
D/S Norden A/S		18,400		2,061,377

				4,969,192

See financial notes.

24 Laudus International Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Egypt 0.8%

Materials 0.3%
El Ezz Steel Rebars S.A.E.		52,000		879,506
Telecommunication Services 0.5%
Egyptian Company for Mobile Services (MobiNil)		18,200		658,283
Telecom Egypt		180,000		665,506

				1,323,789

				2,203,295
Finland 1.9%

Automobiles & Components 0.2%
Nokian Renkaat Oyj		10,800		462,641
Capital Goods 1.3%
Cargotec Corp., B Shares		4,800		236,400
Kone Oyj, B Shares		21,600		887,402
Metso Corp. Oyj		21,600		1,166,778
Wartsila Corp. Oyj		15,400		1,039,885

				3,330,465
Materials 0.4%
Rautaruukki Oyj		24,400		1,179,502

				4,972,608
France 3.3%

Automobiles & Components 0.8%
Compagnie Generale des Etablissements Michelin, Class B		8,600		900,639
PSA Peugeot Citroen		5,400		419,088
Valeo S.A.		19,500		773,991

				2,093,718
Banks 0.0%
Natixis		7,700		123,492
Capital Goods 0.2%
Nexans S.A.		1,000		118,017
Thales S.A.		6,000		388,347

				506,364
Consumer Durables & Apparel 0.2%
Christian Dior S.A.		2,333		258,591
Thomson		39,000		271,771

				530,362
Energy 0.1%
Compagnie Generale de Geophysique-Veritas (CGG-Veritas) *		560		139,297
Materials 1.4%
Arkema *		28,800		1,614,258
Ciments Francais S.A.		3,800		633,091
Eramet		1,120		902,546
Sequana Capital		17,500		459,804

				3,609,699
Software & Services 0.6%
Atos Origin S.A. *		28,500		1,586,802

				8,589,734
Germany 2.6%

Capital Goods 1.2%
GEA Group AG *		36,500		1,229,102
Krones AG		800		65,871
Rheinmetall AG		11,678		824,351
SGL Carbon AG *		13,788		871,159

				2,990,483
Consumer Services 0.4%
TUI AG *		34,800		893,337
Food, Beverage & Tobacco 0.0%
Suedzucker AG		2,174		48,195
Insurance 0.4%
Hannover Rueckversicherung AG – Reg’d		21,221		1,106,349
Materials 0.6%
Altana AG		11,900		250,530
Lanxess		16,200		651,137
Norddeutsche Affinerie AG		13,600		537,898
ThyssenKrupp AG		3,200		183,712

				1,623,277
Utilities 0.0%
MVV Energie AG		551		27,060

				6,688,701
Greece 0.6%

Banks 0.1%
Agricultural Bank of Greece		25,554		116,659
Energy 0.2%
Hellenic Petroleum S.A.		42,000		553,256
Utilities 0.3%
Public Power Corp. S.A. (PPC)		18,900		826,819

				1,496,734
Hong Kong 2.1%

Banks 0.4%
CITIC International Financial Holdings Ltd.		404,000		207,862
Industrial and Commercial Bank of China (Asia) Ltd.		164,000		409,531
Wing Hang Bank Ltd.		24,000		365,976

				983,369
Capital Goods 0.2%
Citic Pacific Ltd.		44,000		188,355
Shanghai Industrial Holdings Ltd.		88,000		334,933

				523,288
Diversified Financials 0.0%
Allied Properties (H.K.) Ltd.		148,000		30,116
Sun Hung Kai & Co., Ltd.		13,000		12,349

				42,465
Materials 0.0%
Shougang Concord International Enterprises Co., Ltd.		196,000		46,633
Media 0.1%
Television Broadcasts Ltd.		66,000		355,294

See financial notes.

Laudus International Equity Funds 25

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Pharmaceuticals & Biotechnology 0.1%
China Pharmaceutical Group Ltd. *		606,000		183,009
Real Estate 0.5%
Kowloon Development Co., Ltd.		171,000		332,111
New World Development Co., Ltd.		212,000		521,478
Shenzhen Investment Ltd.		528,000		225,642
Wheelock & Co., Ltd.		124,000		349,348

				1,428,579
Technology Hardware & Equipment 0.2%
Lenovo Group Ltd.		646,000		421,727
Transportation 0.3%
Cathay Pacific Airways Ltd.		132,000		260,473
Hopewell Holdings Ltd.		118,000		450,775

				711,248
Utilities 0.3%
Guangdong Investment Ltd.		786,000		393,817
Hongkong Electric Holdings Ltd.		74,500		472,800

				866,617

				5,562,229
Hungary 0.3%

Telecommunication Services 0.3%
Magyar Telekom Nyrt.		170,000		836,071
India 2.4%

Automobiles & Components 0.2%
Hero Honda Motors Ltd.		1,700		29,272
Mahindra & Mahindra Ltd.		18,680		319,906
Maruti Udyog Ltd.		4,580		93,289

				442,467
Banks 0.4%
Bank of India		44,920		284,490
Bank Of Maharashtra Ltd.		160,000		201,020
Dena Bank Ltd.		89,169		113,208
Indian Bank		40,230		165,219
Syndicate Bank		139,150		261,797

				1,025,734
Capital Goods 0.2%
Bharat Electronics Ltd.		7,110		188,943
Bharat Heavy Electricals Ltd.		4,240		215,266
SKF India Ltd.		9,280		68,705
Tata Motors Ltd.		7,490		115,414

				588,328
Consumer Services 0.1%
Indian Hotels Co., Ltd.		81,280		227,944
Diversified Financials 0.1%
IFCI Ltd. *		45,780		50,410
JM Financial Ltd.		7,675		259,404

				309,814
Energy 0.1%
Bongaigaon Refinery & Petrochemicals Ltd. (BRP)		48,220		59,263
The Great Eastern Shipping Co., Ltd.		13,490		127,538

				186,801
Materials 0.9%
ACC Ltd.		3,070		63,548
Birla Corp., Ltd.		32,390		156,789
Grasim Industries Ltd.		2,050		132,447
Gujarat Alkalies & Chemicals Ltd.		33,880		125,083
Gujarat Narmada Valley Fertilizers Co., Ltd.		57,606		192,720
Gujarat State Fertilizers & Chemicals Ltd.		6,840		29,150
Hindalco Industries Ltd. *		57,510		238,621
Hindustan Zinc Ltd.		12,710		168,886
Jindal Steel & Power Ltd.		750		38,610
National Aluminium Co., Ltd.		6,740		76,228
Pidilite Industries Ltd.		23,650		78,821
Steel Authority of India Ltd.		39,790		182,510
Sterlite Industries (India) Ltd. *		17,150		305,797
Tata Chemicals Ltd.		17,930		126,249
Tata Steel Ltd.		8,172		140,860
Ultra Tech Cement Ltd.		14,940		295,485

				2,351,804
Pharmaceuticals & Biotechnology 0.1%
Ipca Laboratories Ltd.		6,340		96,776
Sun Pharmaceutical Industries Ltd.		2,090		63,905
Wockhardt Ltd.		4,170		27,675

				188,356
Software & Services 0.3%
HCL Technologies Ltd.		51,400		327,609
Satyam Computer Services Ltd.		44,674		439,159

				766,768
Transportation 0.0%
Container Corp. of India Ltd.		1,650		71,250
Utilities 0.0%
Gail India Ltd.		2,580		27,689

				6,186,955
Indonesia 0.4%

Automobiles & Components 0.1%
PT Astra International Tbk		82,000		217,699
Banks 0.1%
PT Bank Negara Indonesia (Persero) Tbk		374,000		56,860
PT Lippo Bank Tbk *		475,000		96,576

				153,436
Capital Goods 0.1%
PT United Tractors Tbk		140,000		192,085
Energy 0.0%
PT Apexindo Pratama Duta Tbk		227,000		42,479
Food, Beverage & Tobacco 0.1%
PT Astra Agro Lestari Tbk		71,000		201,113
PT Hanjaya Mandala Sampoerna Tbk		23,000		32,655

				233,768
Materials 0.1%
PT International Nickel Indonesia Tbk (INCO)		270,000		206,754

				1,046,221

See financial notes.

26 Laudus International Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Ireland 1.0%

Banks 0.2%
Anglo Irish Bank Corp. plc		38,000		507,725

Energy 0.5%
Dragon Oil plc *		50,000		444,268
Dragon Oil plc *		84,206		753,257

				1,197,525
Food, Beverage & Tobacco 0.2%
Kerry Group plc, Class A		18,900		591,652

Materials 0.1%
CRH plc		10,800		409,400

				2,706,302
Israel 0.6%

Banks 0.5%
Bank Hapoalim B.M.		220,000		854,712
Bank Leumi Le-Israel		25,000		107,680
First International Bank of Israel Ltd. (FIBI) *		17,919		229,115

				1,191,507
Capital Goods 0.1%
Delek Group Ltd.		2,500		379,239

				1,570,746
Italy 2.6%

Automobiles & Components 0.1%
Fiat S.p.A.		6,666		154,458

Banks 0.0%
Credito Bergamasco S.p.A.		426		19,647

Capital Goods 0.2%
C.I.R. S.p.A. – Compagnie Industriali Riunite		185,000		495,730

Consumer Services 0.1%
Autogrill S.p.A.		12,273		183,350

Insurance 1.0%
Fondiaria – Sai S.p.A.		45,000		1,865,562
Unipol Gruppo Finanziario S.p.A.		225,555		701,317

				2,566,879
Materials 0.8%
Buzzi Unicem S.p.A.		32,800		818,193
Cementir S.p.A. Cementerie del Tirreno		45,918		427,084
Italcementi S.p.A.		41,000		832,751
Italmobiliare S.p.A.		200		20,798

				2,098,826
Utilities 0.4%
ACEA S.p.A.		36,000		705,634
Iride S.p.A.		162,000		513,641

				1,219,275

				6,738,165
Japan 18.8%

Automobiles & Components 1.9%
Bosch Corp.		139,000		567,131
Fuji Heavy Industries Ltd.		258,000		1,092,056
Mazda Motor Corp.		274,000		981,120
NGK Spark Plug Co., Ltd.		47,000		615,127
Sumitomo Rubber Industries Ltd.		83,300		641,408
Yamaha Motor Co., Ltd.		63,200		1,174,572

				5,071,414
Banks 0.1%
Shinsei Bank Ltd.		54,000		178,341

Capital Goods 3.4%
Amada Co., Ltd.		147,000		1,125,410
Fuji Electric Holdings Co., Ltd.		85,000		347,667
Hitachi Cable Ltd.		114,000		429,299
Hitachi Construction Machinery Co., Ltd.		30,100		763,311
IHI Corp.		67,000		129,808
JS Group Corp.		80,200		1,214,764
Kawasaki Heavy Industries Ltd.		496,000		1,114,436
Kubota Corp.		146,000		910,170
SMC Corp.		4,800		509,932
Sojitz Corp.		343,700		1,150,391
Toyota Tsusho Corp.		57,800		1,241,374

				8,936,562
Consumer Durables & Apparel 0.6%
Makita Corp.		40,500		1,278,069
Sega Sammy Holdings, Inc.		20,500		218,446

				1,496,515
Energy 1.3%
Cosmo Oil Co., Ltd.		249,000		789,046
Idemitsu Kosan Co., Ltd.		2,300		179,423
Japan Petroleum Exploration Co., Ltd.		14,700		981,632
Nippon Mining Holdings, Inc.		217,000		1,166,240
Nippon Oil Corp.		35,000		220,741

				3,337,082
Food & Staples Retailing 0.0%
Aeon Co., Ltd.		9,700		116,873

Food, Beverage & Tobacco 0.9%
Asahi Breweries Ltd.		75,400		1,556,965
Nippon Meat Packers, Inc.		50,000		742,217

				2,299,182
Insurance 1.0%
Aioi Insurance Co., Ltd.		241,000		1,350,609
Nissay Dowa General Insurance Co., Ltd.		85,000		440,475
Sompo Japan Insurance, Inc.		100,000		891,582
The Fuji Fire & Marine Insurance Co., Ltd.		7,000		18,752

				2,701,418
Materials 5.7%
Asahi Kasei Corp.		184,000		967,621
Denki Kagaku Kogyo Kabushiki Kaisha		173,000		550,305
DIC Corp.		263,000		832,003
Hitachi Chemical Co., Ltd.		18,500		351,525
Kaneka Corp.		139,000		878,636
Kobe Steel Ltd.		295,000		850,511
Kuraray Co., Ltd.		108,000		1,298,010
Mitsubishi Chemical Corp.		143,500		955,767
Mitsubishi Gas Chemical Co., Inc.		148,000		1,056,936

See financial notes.

Laudus International Equity Funds 27

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Mitsubishi Rayon Co., Ltd.		267,000		861,914
Mitsui Chemicals, Inc.		183,000		1,226,937
Nisshin Steel Co., Ltd.		206,000		719,872
Oji Paper Co., Ltd.		45,000		204,292
Pacific Metals Co., Ltd.		22,000		216,217
Showa Denko K.K.		262,000		884,699
Tosoh Corp.		254,000		882,661
Toyo Seikan Kaisha Ltd.		65,800		1,259,681
Yamato Kogyo Co., Ltd.		19,800		806,811

				14,804,398
Media 0.2%
Fuji Television Network, Inc.		4		5,936
Hakuhodo Dy Holdings, Inc.		7,170		431,874
Nippon Television Network Corp.		730		99,808

				537,618
Pharmaceuticals & Biotechnology 0.5%
Dainippon Sumitomo Pharma Co., Ltd.		123,000		1,136,212
Mitsubishi Tanabe Pharma Corp.		19,000		221,298

				1,357,510
Retailing 0.1%
Aoyama Trading Co., Ltd.		8,400		181,892

Technology Hardware & Equipment 1.6%
Alps Electric Co., Ltd.		40,100		401,490
NEC Corp.		256,000		991,334
Omron Corp.		56,400		1,168,701
Seiko Epson Corp.		43,200		1,164,165
Yokogawa Electric Corp.		52,900		537,392

				4,263,082
Transportation 1.1%
Japan Airlines Corp. *		26,000		67,799
Kawasaki Kisen Kaisha Ltd.		124,000		1,217,156
Keisei Electric Railway Co., Ltd.		22,000		118,957
West Japan Railway Co.		319		1,412,606

				2,816,518
Utilities 0.4%
Hokkaido Electric Power Co., Inc.		50,500		1,177,571

				49,275,976
Luxembourg 0.8%

Household & Personal Products 0.3%
Oriflame Cosmetics S.A.		12,400		824,313

Telecommunication Services 0.3%
COLT Telecom Group S.A. *		246,000		817,271

Transportation 0.2%
Stolt-Nielsen S.A.		22,500		470,562

				2,112,146
Malaysia 0.8%

Automobiles & Components 0.0%
UMW Holdings Berhad		24,000		45,486

Banks 0.0%
Hong Leong Bank Berhad		63,000		114,635

Capital Goods 0.1%
Ranhill Berhard		280,000		142,051
Consumer Services 0.2%
Genting Berhad		124,000		255,591
KFC Holdings (Malaysia) Berhad		25,000		48,552
Resorts World Berhad		261,000		282,078

				586,221
Diversified Financials 0.1%
AMMB Holdings Berhad		300,000		324,215

Energy 0.1%
Petronas Dagangan Berhad		99,000		248,417

Food, Beverage & Tobacco 0.1%
Asiatic Development Berhard		67,000		177,035
Fraser & Neave Holdings Berhad		5,000		12,288

				189,323
Materials 0.1%
Lion Industries Corp. Berhard		233,000		132,151

Transportation 0.1%
Malaysian Airline System Berhad *		144,000		159,375
Utilities 0.0%
Tenaga Nasional Berhad		24,000		55,390

				1,997,264
Mauritius 0.2%

Food, Beverage & Tobacco 0.2%
Golden Agri-Resources Ltd.		534,000		391,367

Mexico 1.4%

Banks 0.0%
Grupo Financiero Banorte S.A.B. de C.V., Class O		14,000		60,642

Capital Goods 0.4%
Alfa S.A.B., Class A		70,900		474,321
Grupo Carso S.A. de C.V., Series A1		135,900		574,617

				1,048,938
Food & Staples Retailing 0.1%
Controladora Comercial Mexicana S.A. de C.V.		71,700		202,109
Grupo Gigante S.A. de C.V., Class B *		71,800		136,682

				338,791
Food, Beverage & Tobacco 0.3%
Coca-Cola Femsa S.A.B. de C.V. (Femsa), Series L		35,600		202,707
Gruma S.A.B., Class B		35,300		83,617
Grupo Bimbo S.A.B. de C.V., Series A		24,100		144,925
Grupo Continental, S.A.B. *		72,900		174,805
Industrias Bachoco S.A., Class B		18,200		44,684

				650,738
Materials 0.6%
Grupo Mexico S.A.B. de C.V., Series B		58,100		385,687
Grupo Simec S.A. de C.V., Series B *		81,900		307,815
Grupo Simec S.A. de C.V.A. ADR *		100		1,113

See financial notes.

28 Laudus International Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Industrias CH S.A., Series B *		75,700		300,517
Industrias Penoles S.A. de C.V.		19,700		590,477

				1,585,609

				3,684,718
Netherlands 2.1%

Capital Goods 0.3%
Koninklijke BAM Groep N.V.		31,800		752,582
Koninklijke Boskalis Westminster N.V., C.V.A.		481		27,791

				780,373
Commercial Services & Supplies 0.2%
USG People N.V.		25,509		605,064

Consumer Durables & Apparel 0.3%
TomTom N.V. *		17,700		731,928

Energy 0.2%
Fugro N.V., C.V.A.		6,400		497,412

Food, Beverage & Tobacco 0.5%
CSM		41,000		1,400,180

Materials 0.2%
Koninklijke DSM N.V.		8,784		423,569

Technology Hardware & Equipment 0.2%
Gemalto N.V. *		14,581		424,602

Transportation 0.2%
Smit Internationale N.V.		6,000		611,487

				5,474,615
New Zealand 0.3%

Materials 0.2%
Fletcher Building Ltd.		74,200		489,451

Retailing 0.0%
The Warehouse Group Ltd.		1,200		5,528

Transportation 0.0%
Air New Zealand Ltd.		111,100		112,676

Utilities 0.1%
Contact Energy Ltd.		26,500		166,297

				773,952
Norway 0.8%

Energy 0.8%
Aker Solutions A.S.A. *		49,000		1,122,384
Petroleum Geo-Services A.S.A.		35,000		868,920
TGS Nopec Geophysical Co., A.S.A. *		7,063		102,895

				2,094,199

				2,094,199
Papua New Guinea 0.5%

Energy 0.2%
Oil Search Ltd.		133,400		589,624

Materials 0.3%
Lihir Gold Ltd. *		211,300		674,244

				1,263,868
Peru 0.2%

Materials 0.2%
Compania de Minas Buenaventura S.A. ADR		8,700		595,950

Philippines 0.4%

Banks 0.0%
Union Bank of the Philippines		6,600		5,538

Energy 0.1%
Petron Corp.		1,878,000		256,863

Food, Beverage & Tobacco 0.0%
San Miguel Corp.		62,000		71,414

Materials 0.0%
Philex Mining Corp.		345,800		55,513

Telecommunication Services 0.3%
Globe Telecom, Inc.		10,000		361,506
Philippine Long Distance Telephone Co.		2,000		133,735
Pilipino Telephone Corp. *		1,030,000		172,828

				668,069

				1,057,397
Poland 1.4%

Banks 0.2%
ING Bank Slaski S.A.		2,500		595,771

Energy 0.6%
Grupa Lotos S.A. *		26,000		410,962
Polski Koncern Naftowy Orlen S.A. *		62,000		1,108,197

				1,519,159
Materials 0.4%
KGHM Polska Miedz S.A.		21,700		1,002,809

Telecommunication Services 0.2%
Telekomunikacja Polska S.A. *		63,000		627,830

				3,745,569
Portugal 0.1%

Materials 0.1%
Semapa – Sociedade de Investimento e Gestao, SGPS, S.A.		13,879		177,803

Republic of Korea 3.8%

Automobiles & Components 0.3%
Hankook Tire Co., Ltd.		11,430		181,840
Hyundai Mobis		5,800		453,714
Korea Kumho Petrochemical Co., Ltd. (KKPC)		5,000		290,131

				925,685
Capital Goods 1.3%
Daelim Industrial Co., Ltd.		4,200		540,119
Doosan Corp. *		2,400		465,561
Doosan Infracore Co., Ltd.		5,740		192,302
GS Engineering & Construction Corp.		1,600		236,114
Hyundai Mipo Dockyard Co., Ltd.		540		121,694
LG Corp.		11,250		849,870
LS Cable Ltd.		3,320		302,071
Samho International Co., Ltd.		6,560		92,234

See financial notes.

Laudus International Equity Funds 29

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Samsung Heavy Industries Co., Ltd.		15,010		481,751
SK Holdings Co., Ltd.		1,090		157,242

				3,438,958
Consumer Durables & Apparel 0.2%
LG Electronics, Inc.		3,570		458,808
Youngone Corp.		15,880		129,797

				588,605
Energy 0.3%
GS Holdings Corp.		8,590		335,486
SK Energy Co., Ltd.		2,669		276,306
SK Gas Co., Ltd.		1,653		114,351

				726,143
Food, Beverage & Tobacco 0.1%
KT&G Corp.		4,760		373,858

Household & Personal Products 0.1%
LG Household & Health Care Ltd.		30		5,182
Pacific Corp.		2,220		269,874

				275,056
Insurance 0.1%
Dongbu Insurance Co., Ltd.		9,240		356,705

Materials 0.7%
Hanwha Chemical Corp.		20,540		348,884
Hanwha Corp.		1,590		84,253
Hyosung Corp.		4,350		295,468
Korea Petrochemical Industrial Co., Ltd.		3,510		132,605
Korea Zinc Co., Ltd.		2,330		282,873
LG Chem Ltd.		7,830		587,262

				1,731,345
Retailing 0.2%
GS Home Shopping, Inc.		980		62,547
Hyundai Department Store Co., Ltd.		4,110		396,628

				459,175
Software & Services 0.1%
Daou Technology, Inc.		16,170		139,558

Telecommunication Services 0.4%
KT Corp.		9,730		462,567
KT Freetel Co., Ltd. *		5,030		147,307
LG Telecom Ltd.		45,150		357,002

				966,876

				9,981,964
Russia 0.3%

Energy 0.2%
Tatneft GDR		4,800		624,000

Materials 0.1%
Mechel ADR		2,000		227,580

				851,580
Singapore 1.7%

Capital Goods 0.7%
Fraser & Neave Ltd.		184,000		655,215
Haw Par Corp., Ltd.		8,000		40,253
Keppel Corp., Ltd.		62,000		451,333
SembCorp Industries Ltd.		21,000		62,608
Singapore Technologies Engineering Ltd. (ST Engg)		187,000		462,563
The Straits Trading Co., Ltd.		6,000		29,249

				1,701,221
Consumer Services 0.0%
Hotel Plaza Ltd.		35,000		48,165

Diversified Financials 0.2%
Kim Eng Holdings Ltd.		154,000		229,445
UOB-Kay Hian Holdings Ltd.		192,000		274,806

				504,251
Energy 0.1%
Singapore Petroleum Co., Ltd.		57,000		281,960
Straits Asia Resources Ltd.		13,000		31,013

				312,973
Food, Beverage & Tobacco 0.0%
Asia Food & Properties Ltd. *		69,000		34,727

Real Estate 0.1%
Allgreen Properties Ltd.		23,000		20,732
Ho Bee Investment Ltd.		202,000		136,932
Singapore Land Ltd.		7,000		34,837
United Industrial Corp., Ltd.		23,000		46,232
Wheelock Properties (S) Ltd.		32,000		46,325

				285,058
Retailing 0.2%
Jardine Cycle & Carriage Ltd.		27,000		386,539
Metro Holdings Ltd.		221,000		113,127

				499,666
Semiconductors & Semiconductor Equipment 0.0%
STATS ChipPAC Ltd. *		147,000		120,169

Technology Hardware & Equipment 0.1%
Venture Corp., Ltd.		46,000		355,151

Transportation 0.3%
ComfortDelGro Corp., Ltd.		302,000		402,294
Neptune Orient Lines Ltd.		43,000		102,607
SIA Engineering Co., Ltd.		11,000		31,646
Singapore Airlines Ltd.		11,200		127,434

				663,981

				4,525,362
South Africa 1.0%

Insurance 0.4%
Liberty Group Ltd.		60,000		543,855
Liberty Holdings Ltd.		14,530		340,213

				884,068
Materials 0.6%
African Rainbow Minerals Ltd.		22,000		609,860
AngloGold Ashanti Ltd.		1,500		50,519
ArcelorMittal South Africa Ltd., Series L		33,000		800,793
Harmony Gold Mining Co., Ltd. *		16,000		190,807

				1,651,979

				2,536,047

See financial notes.

30 Laudus International Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Spain 2.0%

Capital Goods 0.3%
Obrascon Huarte Lain S.A.		20,500		760,491

Consumer Services 0.2%
Sol Melia S.A.		36,000		506,803

Food, Beverage & Tobacco 0.1%
Ebro Puleva S.A.		11,200		229,497

Insurance 0.8%
Mapfre S.A.		420,000		2,108,901

Materials 0.2%
Cementos Portland Valderrivas S.A.		4,800		466,286

Software & Services 0.3%
Indra Sistemas S.A.		32,200		927,337

Transportation 0.1%
Iberia Lineas Aereas de Espana S.A.		77,976		339,551

				5,338,866
Sweden 2.3%

Capital Goods 1.4%
AB SKF, Class B		54,000		1,087,211
Alfa Laval AB		15,238		927,268
Skanska AB, B Shares		67,000		1,343,455
Trelleborg AB, B Shares		9,000		179,672

				3,537,606
Food, Beverage & Tobacco 0.3%
Swedish Match AB		34,243		747,833

Materials 0.2%
Svenska Cellulosa AB (SCA), Class B		30,000		546,989

Telecommunication Services 0.4%
Tele2 AB, Class B		56,000		1,059,337

				5,891,765
Switzerland 4.2%

Automobiles & Components 0.3%
Rieter Holding AG – Reg’d		1,900		727,461

Capital Goods 1.6%
Bobst Group AG – Reg’d		7,500		582,352
Bucher Industries AG – Reg’d		5,680		1,542,194
Georg Fischer AG – Reg’d *		160		79,066
Schindler Holding AG – Reg’d		12,300		910,811
Sulzer AG – Reg’d		700		925,441

				4,039,864
Consumer Durables & Apparel 0.2%
Forbo Holding AG – Reg’d *		900		476,949

Consumer Services 0.2%
Kuoni Reisen Holding AG – Reg’d		1,120		622,693

Insurance 1.1%
Baloise Holding AG – Reg’d		11,600		1,153,442
Helvetia Holding AG		1,600		603,072
Swiss Life Holding – Reg’d *		4,027		1,119,987

				2,876,501
Materials 0.5%
Ciba Holding AG		9,559		348,602
Clariant AG – Reg’d *		92,000		784,363
Schmolz & Bickenbach AG – Reg’d		2,400		199,120

				1,332,085
Utilities 0.3%
Elektrizitaets-Gesellschaft Laufenburg AG		640		836,492

				10,912,045
Taiwan 4.1%

Banks 0.5%
Chang Hwa Commercial Bank		220,000		166,778
China Development Financial Holding Corp.		1,473,340		681,540
Taiwan Cooperative Bank		543,720		536,971

				1,385,289
Capital Goods 0.2%
CTCI Corp.		53,000		44,725
Far Eastern Textile Ltd.		90		152
Teco Electric & Machinery Co., Ltd.		449,000		278,001
Walsin Lihwa Corp.		273,000		135,439

				458,317
Consumer Durables & Apparel 0.0%
POU Chen Corp.		68,000		66,359

Materials 0.5%
China Steel Corp.		432,130		687,434
Formosa Chemicals & Fibre Corp.		109,730		285,712
Formosa Plastics Corp.		155,000		470,807

				1,443,953
Real Estate 0.1%
Farglory Land Development Co., Ltd.		66,000		242,451

Semiconductors & Semiconductor Equipment 0.4%
Advanced Semiconductor Engineering, Inc.		664,000		650,981
Macronix International Co., Ltd.		662,161		302,936

				953,917
Technology Hardware & Equipment 2.0%
Acer, Inc.		154,071		277,775
Asustek Computer, Inc.		119,000		350,539
AU Optronics Corp.		332,537		574,247
Chi Mei Optoelectronics Corp.		451,400		597,399
Chunghwa Picture Tubes, Ltd. *		1,176,000		361,254
Compal Electronics, Inc.		613,281		589,709
Delta Electronics, Inc.		22,050		65,309
HannStar Display Corp. *		480,000		207,178
Inventec Co., Ltd.		207,100		127,456
Lite-On Technology Corp.		291,938		340,749
Mitac International Corp.		118,565		107,914
Quanta Computer, Inc.		421,181		584,061
Tatung Co., Ltd. *		744,000		482,289
Walsin Technology Corp.		8,000		5,905
Wistron Corp.		151,276		241,704
Yageo Corp.		897,000		330,754

				5,244,242

See financial notes.

Laudus International Equity Funds 31

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Telecommunication Services 0.2%
Far EasTone Telecommunications Co., Ltd.		258,544		442,545

Transportation 0.2%
U-Ming Marine Transport Corp.		151,000		459,105

				10,696,178
Thailand 0.6%

Banks 0.2%
Bangkok Bank Public Co., Ltd. NVDR		86,000		370,361
Krung Thai Bank Public Co., Ltd. NVDR		486,000		155,903

				526,264
Diversified Financials 0.1%
Thanachart Capital Public Co., Ltd. NVDR		504,000		249,030

Energy 0.1%
Banpu Public Co., Ltd.		7,000		95,825
PTT Exploration & Production Public Co., Ltd.		36,000		172,654
PTT Exploration & Production Public Co., Ltd. NVDR		11,000		53,050

				321,529
Materials 0.1%
Thai Rayon Public Co., Ltd.		46,000		103,001

Telecommunication Services 0.1%
Total Access Communication Public Co., Ltd. *		226,000		279,171

				1,478,995
Turkey 1.4%

Banks 0.2%
Sekerbank TAS *		240,000		456,656

Capital Goods 0.3%
Koc Holding A/ S *		280,000		782,312

Energy 0.4%
Petrol Ofisi A/ S *		265,000		1,084,237

Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/ S		30,000		266,158

Materials 0.4%
Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir)		136,000		956,150

				3,545,513
United Kingdom 6.9%

Capital Goods 1.1%
Bodycote International plc		111,000		411,343
IMI plc		208,000		1,874,660
Qinetiq plc		189,000		724,499

				3,010,502
Commercial Services & Supplies 0.3%
WS Atkins plc		34,500		720,309

Energy 1.6%
Dana Petroleum plc *		2,709		67,775
JKX Oil & Gas plc		20,752		181,385
John Wood Group plc		106,000		851,966
Petrofac Ltd.		160,665		1,791,964
Premier Oil plc *		20,800		573,142
Venture Production plc		54,084		669,580

				4,135,812
Food, Beverage & Tobacco 0.2%
Britvic plc		79,851		504,809

Household & Personal Products 0.2%
PZ Cussons plc		141,035		518,059

Insurance 0.3%
Friends Provident plc		135,629		332,867
Old Mutual plc		210,000		460,871

				793,738
Materials 1.2%
Antofagasta plc		36,000		501,216
Croda International plc		4,853		63,803
DS Smith plc		36,500		113,531
Hochschild Mining plc		20,924		182,208
Johnson Matthey plc		29,700		1,182,990
Kazakhmys plc		19,600		621,527
Vedanta Resources plc		10,600		441,733

				3,107,008
Real Estate 0.2%
Meinl European Land Ltd. *		55,195		627,658

Retailing 0.5%
Home Retail Group plc		180,000		934,322
WH Smith plc		65,189		479,967

				1,414,289
Software & Services 0.3%
Dimension Data Holdings plc		506,000		487,485
LogicaCMG plc		191,967		403,522

				891,007
Transportation 0.7%
Arriva plc		53,600		730,067
FirstGroup plc		91,800		1,027,565

				1,757,632
Utilities 0.3%
British Energy Group plc		52,938		685,939

				18,166,762

Total Common Stock (Cost $258,411,648)				251,580,050

Preferred Stock 1.8% of net assets

Brazil 1.8%

Acesita S.A.		4,900		263,612
AES Tiete S.A.		8,344,000		277,705
Brasil Telecom Participacoes S.A.		43,000		575,392
Brasil Telecom S.A.		37,700		414,663
Braskem S.A., Class A		58,000		492,506
Centrais Eletricas de Santa Catarina S.A., Class B		7,200		177,261
Companhia de Gas de Sao Paulo – Comgas, Class A		7,000		175,928
Companhia de Transmissao de Energia Eletrica Eletrica Paulista		11,000		256,084

See financial notes.

32 Laudus International Equity Funds

Laudus Rosenberg International Discovery Fund


	Number of		Value
Security	Shares		($)
Companhia Energetica de Minas Gerais – CEMIG		6,495		116,597
Companhia Paranaense de Energia-Copel, Class B		32,000		523,212
Compania Brasileira de Distribuicao Grupo Pao de Acucar		16,100		330,313
Eletropaulo Metropolitana S.A., Class B		1,116,679		87,822
Sadia S.A.		79,000		468,228
Tele Norte Leste Participacoes S.A.		10,300		273,540
Telemar Norte Leste S.A., Class A		700		36,302
Ultrapar Participacoes S.A.		2,475		87,028
Uniao de Industrias Petroquimicas S.A. (Unipar), Class B		73,900		65,279
Vivo Participacoes S.A.		32,900		191,809

				4,813,281

Total Preferred Stock (Cost $4,285,865)				4,813,281

Rights 0.0% of net assets

India 0.0%

Indian Hotels Co., Ltd. *		16,256		18,659
Indian Hotels Co., Ltd. *		8,128		202

				18,861
Malaysia 0.0%

Genting Berhad (a)*		40,400		—

Total Rights (Cost $ — )				18,861


Security	Face Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 2.4% of net assets

Repurchase Agreement 2.4%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $6,290,349 (fully collateralized by Federal National Mortgage Assn. with a value of $6,420,694.)		6,290,000		6,290,000

Total Short-Term Investment (Cost $6,290,000)				6,290,000

End of Investments.

At 03/31/08, the tax basis cost of the fund’s investments was $270,867,593 and the unrealized appreciation and depreciation were $16,630,745 and ($24,796,146), respectively, with a net unrealized depreciation of ($8,165,401).

At 03/31/08, the prices of certain foreign securities held by the fund aggregating $221,660,514 were adjusted from their closing market prices following the guidelines adopted by the fund’s board of trustees.


*	Non-income producing security.
(a)	Fair-valued by Management.

ADR – American Depositary Receipt

CVA – Dutch Certificate

GDR – Global Depositary Receipt

NVDR – Non-Voting Depositary Receipt

See financial notes.

Laudus International Equity Funds 33

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings as of March 31, 2008


				Cost		Value
Holdings by Category				($)		($)

	95.8	%	Common Stock		1,043,840,883		1,088,713,385
	0.3	%	Preferred Stock		3,369,493		3,530,234
	—	%	Rights		—		—
	—	%	Warrants		—		—
	1.4	%	Short-Term Investment		15,581,000		15,581,000

	97.5	%	Total Investments		1,062,791,376		1,107,824,619
	7.0	%	Collateral Invested for Securities on Loan		79,431,797		79,431,797
	(4.5	)%	Other Assets and Liabilities				(50,844,067	)

	100.0	%	Net Assets				1,136,412,349


	Number of		Value
Security	Shares		($)
Common Stock 95.8% of net assets

Australia 4.9%

Capital Goods 0.2%
AJ Lucas Group Ltd.		21,662		75,666
Austal Ltd.		44,000		104,036
Crane Group Ltd.		19,700		276,435
Macmahon Holdings Ltd.		1,335,200		1,817,805

				2,273,942
Consumer Services 0.1%
Flight Centre Ltd.		67,316		1,309,195

Energy 1.4%
Aquila Resources Ltd. *		22,800		209,460
Australian Worldwide Exploration Ltd *		786,300		2,541,845
Beach Petroleum Ltd.		954,214		1,100,450
Centennial Coal Co., Ltd.		871,100		3,258,131
Cooper Energy Ltd. *		99,658		67,964
Felix Resources Ltd.		273,109		3,104,762
New Hope Corp., Ltd.		701,411		1,705,332
Santos Ltd.		265,400		3,529,459

				15,517,403
Food, Beverage & Tobacco 0.1%
Lion Nathan Ltd.		111,700		895,089
Ridley Corp., Ltd.		426,419		437,718

				1,332,807
Materials 2.9%
Ausdrill Ltd.		556,300		1,029,195
BlueScope Steel Ltd.		25,300		229,451
Coal of Africa Ltd. *		24,633		50,940
Dominion Mining Ltd.		191,634		591,205
Equigold NL		108,024		458,929
Great Southern Ltd.		301,000		463,977
Incitec Pivot Ltd.		47,400		6,128,500
Independence Group NL		362,364		2,657,878
Macarthur Coal Ltd.		251,544		3,010,466
Mincor Resources NL		571,000		1,598,530
Mount Gibson Iron Ltd. *		717,500		1,882,173
National Can Industries Ltd.		7,925		12,278
Nufarm Ltd.		11,200		175,938
OneSteel Ltd.		815,823		4,776,655
Platinum Australia Ltd. *		163,647		382,210
Portman Ltd. *		116,500		1,327,539
Sally Malay Mining Ltd.		669,900		3,232,642
Sims Group Ltd.		123,500		3,360,908
TFS Corp., Ltd.		1,390,771		1,122,208

				32,491,622
Media 0.1%
Amalgamated Holdings Ltd.		118,887		586,997
Seven Network Ltd.		135,700		1,185,875

				1,772,872
Software & Services 0.0%
Data#3 Ltd.		43,028		229,334

Telecommunication Services 0.1%
iiNET Ltd.		435,275		795,633

				55,722,808
Austria 1.0%

Consumer Durables & Apparel 0.0%
Linz Textile Holding AG		158		46,870

Materials 1.0%
Voestalpine AG		168,200		11,696,903

Software & Services 0.0%
S&T System Integration & Technology Distribution AG *		4,341		274,230

				12,018,003
Belgium 1.1%

Capital Goods 0.0%
Moury Construct S.A.		224		31,933
Societe Anonyme Belge de Constructions Aeronautques (SABCA)		681		26,932

				58,865
Consumer Durables & Apparel 0.0%
Jensen Group N.V.		12,000		172,562

Diversified Financials 0.0%
Auximines S.A. -Compagnie Auxiliaire des Mines		17		20,679

Food & Staples Retailing 0.5%
Delhaize Group		69,956		5,517,241

Materials 0.3%
Solvay S.A.		4,258		542,898
Tessenderlo Chemie N.V.		66,754		3,031,857

				3,574,755
Real Estate 0.0%
Immobel		2,752		173,571

Retailing 0.3%
S.A. D’Ieteren N.V.		7,336		2,607,432

				12,125,105
Bermuda 1.8%

Banks 0.0%
Hongkong Chinese Ltd.		180,000		27,930

See financial notes.

34 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Capital Goods 0.3%
Chen Hsong Holdings Ltd.		426,000		205,511
Chevalier International Holdings Ltd.		356,000		281,267
Noble Group Ltd. (a)		1,844,000		2,975,161

				3,461,939
Consumer Durables & Apparel 0.1%
High Fashion International Ltd.		60,000		20,952
The Grande Holdings Ltd.		14,000		3,611
USI Holdings Ltd.		722,727		438,361

				462,924
Consumer Services 0.0%
Mandarin Oriental International Ltd.		152,000		289,432
Star Cruises Ltd. *		41,000		8,482

				297,914
Diversified Financials 0.3%
Asia Financial Holdings Ltd.		506,000		248,597
COL Capital Ltd.		1,407,000		653,576
Guoco Group Ltd.		263,000		2,580,698

				3,482,871
Food, Beverage & Tobacco 0.1%
People’s Food Holdings Ltd.		911,000		695,082
Insurance 0.1%
Hardy Underwriting Bermuda Ltd.		90,767		509,726
Materials 0.0%
Kingboard Copper Foil Holdings Ltd.		359,000		91,515
Real Estate 0.2%
Great Eagle Holdings Ltd.		5,000		13,779
Pacific Century Premium Developments Ltd.		4,308,000		1,564,425
Soundwill Holdings Ltd.		554,000		350,975
Tai Cheung Holdings Ltd.		1,423,520		759,974

				2,689,153
Retailing 0.1%
Chow Sang Sang Holdings International Ltd.		126,000		130,727
Tan Chong International Ltd.		1,236,000		390,611
Wing On Co. International Ltd.		276,500		463,547

				984,885
Technology Hardware & Equipment 0.2%
Champion Technology Holdings Ltd.		4,363,582		745,729
Digital China Holdings Ltd.		119,000		78,297
J.I.C. Technology Co., Ltd.		37,000		6,505
Lafe Technology Ltd.		19,600		1,924
Proview International Holdings Ltd.		1,436,000		98,532
VTech Holdings Ltd.		344,000		1,680,639

				2,611,626
Telecommunication Services 0.1%
Asia Satellite Telecommunications Holdings Ltd.		522,000		990,648
SmarTone Telecommunications Holdings Ltd.		497,000		523,479

				1,514,127
Transportation 0.3%
Transport International Holdings Ltd.		705,200		3,498,501

				20,328,193
Canada 6.7%

Automobiles & Components 0.3%
Linamar Corp.		175,300		2,346,556
Martinrea International, Inc. *		193,400		1,426,312

				3,772,868
Banks 0.2%
Laurentian Bank of Canada		70,598		2,926,538
Capital Goods 0.0%
CAE, Inc.		33,500		379,566
Diversified Financials 0.2%
Dundee Corp., Class A *		199,460		2,566,970
Energy 1.5%
Addax Petroleum Corp.		32,580		1,293,424
AltaGas Income Trust		106,600		2,525,707
Flint Energy Services Ltd. *		121,400		2,245,980
Freehold Royalty Trust		157,810		2,773,532
Keyera Facilities Income Fund		137,960		2,822,505
Mullen Group Income Fund		12,370		227,166
Pembina Pipeline Income Fund		44,350		704,277
Penn West Energy Trust		53,477		1,500,451
Progress Energy Trust		1,100		13,717
Provident Energy Trust		127,925		1,364,683
Royal Utilities Income Fund		29,070		335,603
Vermilion Energy Trust		26,850		952,155

				16,759,200
Food & Staples Retailing 0.1%
George Weston Ltd.		20,900		961,467
Food, Beverage & Tobacco 0.3%
Rothmans, Inc.		120,400		3,064,983
Insurance 0.4%
Industrial Alliance Insurance & Financial Services, Inc.		77,300		2,852,671
Northbridge Financial Corp.		42,800		1,367,665

				4,220,336
Materials 2.4%
Agrium, Inc.		21,742		1,350,548
Cascades, Inc.		210,660		1,613,121
European Goldfields Ltd. *		102,060		532,945
First Quantum Minerals Ltd.		10,200		827,169
IAMGOLD Corp.		371,700		2,755,748
Inmet Mining Corp.		45,500		3,324,565
Kinross Gold Corp.		48,800		1,088,723
Major Drilling Group International, Inc. *		53,400		2,783,282

See financial notes.

Laudus International Equity Funds 35

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Methanex Corp.		56,090		1,475,406
PAN American Silver Corp. *		87,200		3,371,784
Sherritt International Corp.		225,320		3,187,341
Sino-Forest Corp. *		49,090		765,200
Taseko Mines Ltd. *		344,395		1,748,062
Yamana Gold, Inc.		154,500		2,266,813

				27,090,707
Media 0.1%
Cogeco Cable, Inc.		1,320		46,283
Cogeco, Inc.		2,200		65,371
Quebecor, Inc., Class B		52,410		1,314,271

				1,425,925
Real Estate 0.0%
Extendicare Real Estate Investment Trust		190		2,166
Retailing 0.0%
Leon’s Furniture Ltd.		7,330		84,979
Software & Services 0.4%
CGI Group, Inc., Class A *		91,450		971,119
Open Text Corp. *		98,000		3,101,018

				4,072,137
Technology Hardware & Equipment 0.1%
Celestica, Inc. *		87,690		594,595
Utilities 0.7%
ATCO Ltd., Class I		54,690		2,537,228
Emera, Inc.		71,960		1,475,024
Fortis, Inc.		125,700		3,577,083
TransAlta Corp.		18,090		562,730

				8,152,065

				76,074,502
Cayman Islands 0.1%

Consumer Durables & Apparel 0.1%
Truly International Holdings Ltd.		626,000		726,967
Pharmaceuticals & Biotechnology 0.0%
China Shineway Pharmaceutical Group Ltd.		18,000		12,648
Software & Services 0.0%
SUNeVision Holdings Ltd.		1,050,280		127,616
Technology Hardware & Equipment 0.0%
CCT Telecom Holdings Ltd.		404,000		64,211
Transportation 0.0%
Hopewell Highway Infrastructure Ltd.		182,500		140,403

				1,071,845
China 0.4%

Consumer Durables & Apparel 0.1%
Weiqiao Textile Co., Ltd., Class H		927,000		1,200,298
Technology Hardware & Equipment 0.1%
Great Wall Technology Co., Ltd., Class H *		2,072,000		477,857
Transportation 0.2%
Sichuan Expressway Co., Ltd., Class H		6,015,000		2,186,163
Utilities 0.0%
Huadian Power International Corp., Ltd., Class H		880,000		221,645

				4,085,963
Denmark 0.3%

Banks 0.0%
Ostjydsk Bank A/S		658		119,236
Capital Goods 0.2%
Monberg & Thorsen A/S, Class B		4,661		401,488
Ove Arkil Holding A/S, Class B		899		201,998
Per Aarsleff A/S, Class B		7,416		1,091,364
Renewagy A/S		4,900		10,893

				1,705,743
Real Estate 0.0%
Tower Group A/S *		15,902		428,792
Transportation 0.1%
DFDS A/S		5,770		898,574

				3,152,345
Finland 0.4%

Capital Goods 0.0%
Larox Oyj		24,816		429,200
Materials 0.4%
Kemira Oyj (a)		266,797		4,084,778
Semiconductors & Semiconductor Equipment 0.0%
Okmetic Oyj *		60,000		235,002
Software & Services 0.0%
Digia plc		71,799		340,176
Technology Hardware & Equipment 0.0%
Elektrobit Corp.		16,782		37,887

				5,127,043
France 11.0%

Automobiles & Components 3.9%
Compagnie Generale des Etablissements Michelin, Class B (a)		198,658		20,804,538
PSA Peugeot Citroen (a)		169,930		13,188,089
Societe Fonciere, Financiere et de Participations (FFP)		38,167		4,475,324
Valeo S.A. (a)		155,202		6,160,252

				44,628,203
Banks 1.3%
Natixis (a)		916,078		14,691,997
Capital Goods 0.4%
Compagnie Industrielle et Financiere d’ Entreprises		598		208,729
Ginger (Groupe Ingenierie Europe)		8,835		177,879
Haulotte Group (a)		96,032		2,187,961

See financial notes.

36 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Securidev S.A.		356		14,484
Thales S.A. (a)		28,488		1,843,869

				4,432,922
Commercial Services & Supplies 0.0%
A Novo *		73,104		30,004
Constructions Industrielles de la Mediterranee S.A.		71		8,074

				38,078
Consumer Durables & Apparel 0.4%
Thomson		641,860		4,472,797
Consumer Services 0.1%
Compagnie des Alpes		4,130		192,347
Pierre & Vacances (a)		3,129		376,691

				569,038
Food, Beverage & Tobacco 0.0%
Laurent-Perrier		100		15,763
Sucriere de Pithiviers Le Vieil		266		214,393

				230,156
Materials 2.8%
Ciments Francais S.A.		39,280		6,544,163
Eramet		25,960		20,919,727
Gevelot		3,516		296,616
Guillin Emballages		60		4,448
Rougier S.A.		2,620		267,068
Sequana Capital		150,169		3,945,618
Societe Anonyme d’Explosifs et de Produits Chimiques		450		266,508

				32,244,148
Real Estate 0.0%
Acanthe Developpement S.A.		34,947		130,893
Software & Services 2.0%
Atos Origin S.A. *		138,685		7,721,601
Cap Gemini S.A. (a)		208,500		11,871,919
ESI Group *		9,000		81,104
GFI Informatique		37,935		243,538
Groupe Steria S.C.A. (a)		84,021		2,765,251
Jet Multimedia		15,000		132,974
Tessi S.A.		3,864		174,534

				22,990,921
Transportation 0.1%
Touax		8,674		473,781

				124,902,934
Germany 9.2%

Automobiles & Components 0.0%
Bertrandt AG		251		9,431
Ruecker AG		25,855		297,976

				307,407
Capital Goods 2.6%
Bilfinger Berger AG		14,486		1,245,314
Deutsche Steinzeug Cremer & Breuer AG *		38,000		70,191
Deutz AG (a)*		304,707		3,509,881
Duerr AG *		51,356		2,157,071
Gesco AG		8,232		625,883
Gildemeister AG		170,000		4,290,166
Indus Holding AG		1,990		69,711
Krones AG		65,000		5,351,983
KSB AG		1,360		920,947
KUKA AG (a)*		98,602		3,401,439
Muehlbauer Holding AG & Co.		5,460		189,779
Rheinmetall AG (a)		111,000		7,835,502
Westag & Getalit AG		2,631		66,874

				29,734,741
Commercial Services & Supplies 0.0%
D. Logistics AG *		150,322		352,211
Consumer Services 0.1%
IFA Hotel & Touristik AG *		5,170		65,751
TUI AG (a)*		44,952		1,153,945

				1,219,696
Diversified Financials 0.0%
ADCapital AG		498		8,634
Food & Staples Retailing 0.0%
WASGAU Produktions & Handels AG		1,500		13,593
Food, Beverage & Tobacco 0.0%
Frosta AG		4,880		138,460
Sektkellerei Schloss Wachenheim AG		21,039		239,483

				377,943
Health Care Equipment & Services 0.2%
Fresenius SE		32,365		2,742,695
Materials 5.0%
Altana AG		203,669		4,287,826
K&S AG		48,032		15,624,770
Lanxess		298,200		11,985,752
Norddeutsche Affinerie AG (a)		93,225		3,687,174
Salzgitter AG		119,000		20,729,692

				56,315,214
Retailing 0.1%
ComputerLinks AG		16,576		307,695
Essanelle Hair Group *		11,162		146,129
Hornbach Baumarkt Aktiengesellschaft		2,700		166,242

				620,066
Semiconductors & Semiconductor Equipment 0.0%
ELMOS Semiconductor AG *		33,286		247,163
Software & Services 0.2%
Bechtle AG		15,839		498,931
Cancom IT Systeme AG *		36,078		201,359
Integralis AG *		33,677		268,874
PC-Ware AG		16,089		302,045
REALTECH AG		13,166		251,653
syzygy AG *		50,974		253,700
USU Software AG		24,000		138,126

				1,914,688
Technology Hardware & Equipment 0.7%
Augusta Technologie AG *		21,207		495,779
Epcos AG		318,661		4,847,353
Euromicron AG		19,901		433,578

See financial notes.

Laudus International Equity Funds 37

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Funkwerk AG		16,891		269,979
Hyrican Informationssystems AG		6,000		115,085
Roth & Rau AG *		5,787		1,203,784

				7,365,558
Utilities 0.3%
MVV Energie AG (a)		78,000		3,830,667

				105,050,276
Hong Kong 0.7%

Banks 0.3%
Industrial and Commercial Bank of China (Asia) Ltd.		1,179,000		2,944,126
Consumer Services 0.0%
Associated International Hotels Ltd. *		4,000		8,004
Diversified Financials 0.1%
Allied Group Ltd.		207,600		781,537
Allied Properties (H.K.) Ltd.		924,000		188,020
Lippo Ltd.		112,000		86,639

				1,056,196
Media 0.0%
I-Cable Communications Ltd.		53,000		7,909
Real Estate 0.2%
China Motor Bus Co., Ltd.		4,000		31,671
Hong Kong Ferry (Holdings) Co., Ltd.		258,280		248,441
Keck Seng Investments (Hong Kong) Ltd.		94,000		48,702
Melbourne Enterprises Ltd.		2,000		15,110
Miramar Hotel & Investment Co., Ltd.		326,000		475,445
TAI Sang Land Developement Ltd.		101,000		50,407
Wheelock Properties Ltd.		1,639,000		1,313,094

				2,182,870
Retailing 0.0%
Goldlion Holdings Ltd.		300,000		91,279
Transportation 0.1%
Hopewell Holdings Ltd.		368,000		1,405,807
Safety Godown Co., Ltd.		8,000		5,297

				1,411,104

				7,701,488
Ireland 0.8%

Capital Goods 0.6%
DCC plc		251,302		5,937,118
Consumer Durables & Apparel 0.0%
Abbey plc		15,931		146,395
Energy 0.2%
Dragon Oil a plc (a)*		278,869		2,477,852
Software & Services 0.0%
Horizon Technology Group plc *		77,652		122,043
IONA Technologies plc *		29,206		110,538

				232,581

				8,793,946
Italy 4.6%

Banks 0.0%
Banco di Sardegna S.p.A.		1,034		22,917
Capital Goods 1.4%
Astaldi S.p.A.		315,378		2,429,968
Biesse S.p.A.		33,417		716,417
C.I.R. S.p.A. – Compagnie Industriali Riunite (a)		1,758,000		4,710,772
Cofide S.p.A. – Compagnia Finanziaria de Benedetti		769,882		886,957
Danieli S.p.A. – Officine Meccaniche Danieli & Co.		143,186		5,177,274
Vianini Lavori S.p.A.		118,000		1,663,175

				15,584,563
Consumer Durables & Apparel 0.2%
Safilo Group S.p.A. (a)		707,096		2,253,217
Diversified Financials 1.0%
IFIL Investments S.p.A. (a)		1,349,456		10,895,841
Intek S.p.A.		185,475		180,042

				11,075,883
Food, Beverage & Tobacco 0.0%
Centrale del Latte di Torino & C S.p.A.		3,956		14,164
La Doria S.p.A. *		32,445		66,630

				80,794
Household & Personal Products 0.1%
Mirato S.p.A.		51,665		667,917
Materials 1.6%
Buzzi Unicem S.p.A. (a)		272,048		6,786,210
Cementir S.p.A. Cementerie del Tirreno		408,944		3,803,598
Italcementi S.p.A. (a)		340,800		6,921,991
KME Group *		402,068		653,457

				18,165,256
Retailing 0.0%
BasicNet S.p.A. *		39,408		115,031
Software & Services 0.1%
Engineering Ingegneria Informatica S.p.A.		29,038		1,089,381
Technology Hardware & Equipment 0.0%
Gefran S.p.A.		39,000		289,004
Transportation 0.0%
Autostrade Meridionali S.p.A.		216		5,465
Utilities 0.2%
Iride S.p.A. (a)		795,689		2,522,828

				51,872,256

See financial notes.

38 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Japan 16.0%

Automobiles & Components 1.1%
Ahresty Corp.		5,100		68,809
Aichi Machine Industry Co., Ltd.		331,000		615,389
Aisan Industry Co., Ltd.		40,300		417,445
Ashimori Industry Co., Ltd.		133,000		223,623
Bosch Corp.		264,000		1,077,141
F.C.C. Co., Ltd.		16,600		206,145
Fuji Heavy Industries Ltd. (a)		533,000		2,256,070
HI-LEX Corp.		38,300		536,462
Ichishin Co., Ltd.		35,500		116,557
Mikuni Corp.		28,000		82,693
Murakami Corp.		2,000		15,353
Nihon Plast Co., Ltd.		9,400		49,686
Nippon Seiki Co., Ltd.		1,000		13,647
Nittan Valve Co., Ltd.		5,100		27,303
Piolax, Inc.		100		2,183
Showa Corp. (a)		122,100		1,094,128
SOFT99 Corp.		29,500		188,514
Sumitomo Rubber Industries Ltd.		327,400		2,520,972
Suncall Corp.		26,000		123,881
Takata Corp.		57,600		1,283,152
Topre Corp.		129,200		1,164,480
Univance Corp.		8,500		39,622

				12,123,255
Banks 1.0%
Shinsei Bank Ltd. (a)		77,000		254,301
The Aichi Bank Ltd.		29,700		2,182,859
The Biwako Bank Ltd.		3,000		4,806
The Chiba Kogyo Bank Ltd. *		1,800		24,789
The Daishi Bank Ltd.		11,000		42,906
The Eighteenth Bank Ltd.		403,000		1,488,314
The Higashi-Nippon Bank Ltd.		98,000		339,996
The Higo Bank Ltd.		47,000		272,744
The Hyakugo Bank Ltd.		343,000		2,046,231
The Hyakujushi Bank Ltd.		9,000		48,036
The Kita-Nippon Bank Ltd.		5,100		189,243
The Nishi-Nippon City Bank Ltd.		2,000		5,296
The San-in Godo Bank Ltd.		210,000		1,686,244
The Taiko Bank Ltd.		60,000		168,810
The Tochigi Bank Ltd.		2,000		12,293
The Yachiyo Bank Ltd.		126		536,441
The Yamanashi Chuo Bank Ltd.		136,000		828,437
Yamaguchi Financial Group, Inc.		74,000		841,698

				10,973,444
Capital Goods 3.6%
Aichi Corp.		74,300		556,940
Aichi Electric Co., Ltd.		2,000		4,716
Aida Engineering Ltd.		269,000		1,696,416
Amada Co., Ltd.		274,000		2,097,704
Aoki Marine Co., Ltd.		15,000		45,217
C-Cube Corp.		96,600		296,080
Chodai Co., Ltd.		23,000		78,328
Chudenko Corp.		22,100		347,893
CKD Corp.		17,400		116,675
CTI Engineering Co., Ltd.		47,900		275,581
Daiichi Kensetu Corp.		10,000		75,394
Denkyosha Co., Ltd.		20,000		121,915
Ebara Corp. (a)		769,000		2,364,395
Fuji Electric Holdings Co., Ltd.		592,000		2,421,396
Fuji Machine Manufacturing Co., Ltd.		121,600		2,548,093
Furusato Industries Ltd.		24,000		242,677
Futaba Corp. (a)		122,600		2,120,735
Hitachi Cable Ltd.		426,000		1,604,224
Inabata & Co., Ltd.		18,900		101,969
Ishikawajima Transportation Machinery Co., Ltd.		43,000		190,218
Japan Pulp & Paper Co., Ltd.		248,000		878,591
Kamei Corp.		93,000		398,353
Kanaden Corp.		106,000		593,695
Kioritz Corp.		247,000		553,962
Koatsu Kogyo Co., Ltd.		28,000		102,247
Komori Corp.		110,800		2,324,625
Kowa Spinning Co., Ltd.		12,000		36,587
Maeda Corp. (a)		140,000		411,201
Maeda Road Construction Co., Ltd.		93,000		769,334
Marufuji Sheet Piling Co., Ltd.		29,000		62,613
Mitani Corp.		28,100		211,425
Miyachi Corp. (a)		41,100		383,602
Mori Seiki Co., Ltd.		11,100		201,533
Musashi Co., Ltd.		500		7,052
Nagase & Co., Ltd.		11,000		113,212
Nakano Refrigerators Co., Ltd.		1,800		14,774
Nichireki Co., Ltd.		11,000		28,957
Nihon Decoluxe Co., Ltd.		2,000		11,346
Nippo Corp.		354,000		2,002,297
Nippon Road Co., Ltd.		271,000		370,716
Nippon Thompson Co., Ltd.		208,000		1,282,036
Nishimatsu Construction Co., Ltd. (a)		753,000		1,617,550
Nissei Plastic Industrial Co., Ltd.		82,400		400,572
Nitto Kogyo Corp. (a)		114,200		1,442,829
Ohmoto Gumi Co., Ltd.		34,000		103,068
Okaya & Co., Ltd.		1,000		10,766
Oki Wintech Co., Ltd.		45,000		230,900
Original Engineering Consultants Co., Ltd.		13,000		28,040
Rheon Automatic Machinery Co., Ltd.		2,000		6,773
Sankyo Rikagaku Co., Ltd.		19,000		237,481
Sanso Electric Co., Ltd.		30,000		86,413
Sanwa Holdings Corp. (a)		522,000		2,284,078
Seibu Electric Industry Co., Ltd.		78,000		348,179
ShinMaywa Industries Ltd. (a)		378,000		1,170,236
Sintokogio Ltd.		46,200		384,080
Sojitz Corp.		53,400		178,734
Sugimoto & Co., Ltd.		3,100		38,952
Taisei Oncho Co., Ltd.		49,000		183,439
Taisei Rotec Corp.		308,000		399,130
Takeuchi Mfg. Co., Ltd. (a)		43,900		905,710
Tigers Polymer Corp.		8,300		42,549
Totech Corp.		42,000		160,745
Trusco Nakayama Corp. (a)		117,100		1,805,737

See financial notes.

Laudus International Equity Funds 39

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Tsurumi Manufacturing Co., Ltd.		14,000		91,642
Tsuzuki Denki Co., Ltd.		5,000		16,003
Uehara Sei Shoji Co., Ltd.		51,000		200,023
Wakita & Co., Ltd.		49,000		290,892
Yondenko Corp.		124,000		665,622

				41,394,867
Commercial Services & Supplies 0.0%
Kawanishi Warehouse Co., Ltd.		7,000		48,877
Kimura Unity Co., Ltd.		2,500		19,808
Wesco, Inc.		56,800		112,081

				180,766
Consumer Durables & Apparel 0.7%
Corona Corp.		49,800		544,818
Fuji Corp.		18,000		141,302
Fujishoji Co., Ltd.		170		122,745
Fujix Ltd.		12,000		51,623
Heiwa Corp. (a)		99,800		953,488
Hitachi Koki Co., Ltd.		94,100		1,211,171
Ichikawa Co., Ltd.		79,000		277,759
Jichodo Co., Ltd.		16,000		138,370
Kurabo Industries Ltd.		790,000		1,785,578
Maruzen Co., Ltd.		3,000		12,255
Miyuki Holdings Co., Ltd.		27,000		76,013
Pioneer Corp. (a)		25,300		254,058
Roland Corp.		66,400		1,300,533
Sega Sammy Holdings, Inc.		20,400		217,380
SRI Sports Ltd.		64		85,862
Tachikawa Corp.		60,300		300,306
Ten Arrows Co., Ltd.		3,600		18,784
Tokyo Style Co., Ltd.		83,000		831,069
Toso Co., Ltd.		42,000		82,584

				8,405,698
Consumer Services 0.4%
Daisyo Corp. (a)		33,300		362,637
Eikoh, Inc.		33,000		128,336
Johnan Academic Preparatory Institute, Inc.		32,000		41,412
Nissin Healthcare Food Service Co., Ltd.		3,700		41,009
Plenus Co., Ltd. (a)		98,400		1,273,149
Royal Holdings Co., Ltd.		10,900		114,617
Saizeriya Co., Ltd. (a)		134,400		1,294,195
Shidax Corp.		1,201		614,435
Shingakukai Co., Ltd.		44,600		219,259

				4,089,049
Diversified Financials 0.0%
Daiko Clearing Services Corp.		41,300		236,328
Hitachi Capital Corp.		700		8,421
Takagi Securities Co., Ltd.		67,000		148,491

				393,240
Energy 0.4%
Cosmo Oil Co., Ltd.		598,000		1,894,979
Japan Petroleum Exploration Co., Ltd.		36,400		2,430,707
Kanto Natural Gas Development Co., Ltd.		3,000		18,142
Sinanen Co., Ltd.		29,000		119,514

				4,463,342
Food & Staples Retailing 0.3%
Cawachi Ltd.		69,700		1,810,098
Cowboy Co., Ltd. *		67,000		106,445
Itochu-Shokuhin Co., Ltd.		2,100		64,514
Kasumi Co., Ltd. (a)		62,000		322,706
Marukyo Corp.		8,000		48,022
Okuwa Co., Ltd.		42,000		593,311
Poplar Co., Ltd.		1,900		13,225
San-A Co., Ltd.		900		27,831
Tokan Co., Ltd.		1,000		14,095
Universe Co., Ltd.		5,000		53,156
Uny Co., Ltd. (a)		8,000		76,790

				3,130,193
Food, Beverage & Tobacco 0.8%
Coca-Cola Central Japan Co., Ltd.		205		1,765,069
EJ Holdings, Inc. *		110		18,760
Mercian Corp. (a)		222,000		456,676
Mikuni Coca-Cola Bottling Co., Ltd.		130,100		1,499,721
Morinaga Milk Industry Co., Ltd.		50,000		153,474
Nichiwa Sangyo Co., Ltd.		57,000		182,652
Nippon Beet Sugar Manufacturing Co., Ltd. (a)		325,000		713,402
Nissin Sugar Manufacturing Co., Ltd.		115,000		251,845
Q.P. Corp.		77,100		800,352
Sonton Food Industry Co., Ltd.		31,000		248,225
The Nisshin Oillio Group Ltd. (a)		545,000		2,107,878
Tokatsu Foods Co., Ltd.		63,000		314,117
Yonekyu Corp.		111,000		915,075

				9,427,246
Health Care Equipment & Services 0.1%
Create Medic Co., Ltd.		6,000		52,583
Fukuda Denshi Co., Ltd.		12,700		311,619
Hitachi Medical Corp.		102,000		699,241
JMS Co., Ltd.		20,000		47,025
N.I.C. Corp.		50,400		240,893
Nissui Pharmaceutical Co., Ltd.		3,700		23,060
Tokiwa Yakuhin Co., Ltd.		11,000		47,263

				1,421,684
Household & Personal Products 0.1%
Kose Corp.		46,800		1,017,835
Insurance 0.3%
Aioi Insurance Co., Ltd.		505,000		2,830,114
Materials 3.8%
Arakawa Chemical Industriial Ltd.		17,500		205,225
Asahi Industries Co., Ltd.		205		256,382
Atomix Co., Ltd.		3,000		7,073
Chubu Steel Plate Co., Ltd.		112,300		1,016,389

See financial notes.

40 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Denki Kagaku Kogyo Kabushiki Kaisha		693,000		2,204,401
DIC Corp.		475,000		1,502,668
Hitachi Chemical Co., Ltd.		73,000		1,387,099
Kaneka Corp.		217,000		1,371,684
Kuraray Co., Ltd.		136,500		1,640,540
Kyoei Steel Ltd.		97,800		2,658,027
Mitsubishi Gas Chemical Co., Inc.		278,000		1,985,326
Mitsubishi Rayon Co., Ltd. (a)		401,000		1,294,486
Mitsui Mining & Smelting Co., Ltd.		428,000		1,358,403
Mory Industries, Inc.		120,000		404,186
N.E. Chemcat Corp.		41,000		749,612
Nichia Steel Works Ltd. (a)		126,000		472,349
Nihon Yamamura Glaaa Co., Ltd.		235,000		481,095
Nippon Chemical Industrial Co., Ltd.		28,000		66,815
Nippon Light Metal Co., Ltd.		1,334,000		2,027,410
Nippon Paper Group, Inc.		322		771,688
Nippon Shokubai Co., Ltd.		74,000		492,737
Nippon Soda Co., Ltd.		422,000		1,376,041
Nisshin Steel Co., Ltd. (a)		758,000		2,648,851
Nitto FC Co., Ltd.		4,000		17,392
Osaka Steel Co., Ltd.		127,400		1,652,849
Sakai Chemical Industry Co., Ltd.		369,000		1,320,212
Sumitomo Seika Chemicals Co., Ltd.		174,000		813,711
Toagosei Co., Ltd.		573,000		2,368,475
Tokuyama Corp.		217,000		1,593,621
Tokyo Ohka Kogyo Co., Ltd.		28,700		633,982
Tokyo Tekko Co., Ltd. (a)		174,000		722,992
Topy Industries Ltd. (a)		753,000		2,141,384
Tosoh Corp. (a)		674,000		2,342,179
Toyo Ink Mfg. Co., Ltd.		321,000		1,115,688
Toyo Kohan Co., Ltd.		16,000		83,913
Toyo Seikan Kaisha Ltd.		12,000		229,729
Yodogawa Steel Works Ltd.		460,000		2,247,803

				43,662,417
Media 0.1%
Chubu-Nippon Broadcasting Co., Ltd.		800		6,679
Daiichikosho Co., Ltd.		1,100		10,739
Hakuhodo Dy Holdings, Inc.		70		4,216
RKB Mainichi Broadcasting Corp.		37,000		265,545
Sky Perfect JSAT Corp. (a)		2,552		1,034,175

				1,321,354
Pharmaceuticals & Biotechnology 0.4%
Dainippon Sumitomo Pharma Co., Ltd. (a)		49,000		452,637
Mitsubishi Tanabe Pharma Corp.		4,000		46,589
Nippon Shinyaku Co., Ltd.		174,000		1,809,254
Seikagaku Corp.		39,400		447,057
Torii Pharmaceutical Co., Ltd.		91,600		1,299,996

				4,055,533
Real Estate 0.1%
Hosoda Corp.		57,000		219,638
Nisshin Fudosan Co., Ltd. (a)		68,700		448,921
Sankyo Frontier Co., Ltd.		64,000		181,060
Yuraku Real Estate Co., Ltd.		117,000		297,337

				1,146,956
Retailing 0.7%
Aoyama Trading Co., Ltd.		117,600		2,546,490
AT-Group Co., Ltd.		20,000		253,568
Belluna Co., Ltd. (a)		120,300		1,011,929
Daiwa Co., Ltd.		96,000		144,860
DCM Japan Holdings Co., Ltd. (a)		190,000		956,177
Fujitsu Business Systems Ltd. (a)		76,900		893,709
Haruyama Trading Co., Ltd. (a)		21,900		139,995
Hikari Furniture Co., Ltd.		1,000		5,232
Kato Sangyo Co., Ltd.		1,000		10,751
King Co., Ltd.		64,000		175,735
Kitamura Co Ltd		2,100		13,590
Ku Co., Ltd.		60,700		285,801
Mac House Co., Ltd.		8,400		57,802
Nafco Co., Ltd.		25,900		364,624
Nagahori Corp.		57,000		182,985
Sazaby League, Ltd.		30,800		566,816
Senshukai Co., Ltd. (a)		45,900		375,286
Shichie Co., Ltd.		24,000		162,609
The Daiei, Inc. (a)*		37,600		223,894

				8,371,853
Semiconductors & Semiconductor Equipment 0.1%
Mitsui High-tec, Inc. (a)		143,800		1,110,631
Shindengen Electric Manufacturing Co., Ltd.		250,000		495,864

				1,606,495
Software & Services 0.3%
Acca Networks Co., Ltd.		42		58,146
Aeria, Inc.		12		16,902
Atlus Co., Ltd. *		4,100		24,709
Computer Engineering & Consulting Ltd.		1,000		9,006
Hitachi Information System Ltd.		3,500		75,652
Hitachi System & Services Ltd.		60,000		1,323,222
Japan Process Development Co., Ltd.		16,700		133,328
NEC Fielding Ltd.		102,900		1,248,472

				2,889,437
Technology Hardware & Equipment 1.1%
Dainippon Screen Mfg. Co., Ltd. (a)		9,000		38,070
Daishinku Corp.		67,000		280,658
Eizo Nanao Corp. (a)		7,600		147,967
Fujitsu Frontech Ltd.		200		1,477
Furuno Electric Co., Ltd.		42,200		415,035
Hakuto Co., Ltd.		64,300		589,523
Hitachi Maxell Ltd.		171,000		1,778,319
Japan Aviation Electronics Industry Ltd.		81,000		596,471
Japan Digital Laboratory Co., Ltd.		119,000		1,661,399

See financial notes.

Laudus International Equity Funds 41

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Katsuragawa Electric Co., Ltd.		3,000		17,816
Kitagawa Industries Co., Ltd.		9,700		144,144
Macnica, Inc.		16,200		181,563
Nichicon Corp. (a)		200,000		1,576,100
Riso Kagaku Corp.		51,600		633,672
Roland DG Corp.		12,800		315,754
Ryoden Trading Co., Ltd.		40,000		252,884
Ryoyo Electro Corp.		85,400		840,018
Tachibana Eletech Co., Ltd.		1,100		9,249
Teikoku Tsushin Kogyo Co., Ltd.		3,000		9,139
Toshiba Tec Corp.		92,000		564,649
Tsuzuki Densan Co., Ltd.		35,700		128,556
Yokogawa Electric Corp.		167,300		1,699,540

				11,882,003
Telecommunication Services 0.0%
Okinawa Cellular Telephone Co.		17		32,607
Transportation 0.6%
Alps Logistics Co., Ltd.		5,700		58,780
Fukuyama Transporting Co., Ltd. (a)		175,000		645,422
i-Logistics Corp.		2,000		4,838
Isewan Terminal Service Co., Ltd.		99,000		612,867
Kamigumi Co., Ltd.		138,000		1,103,004
Kawasaki Kinkai Kisen Kaisha Ltd.		5,000		18,262
Keisei Electric Railway Co., Ltd.		362,000		1,957,379
Meiko Trans Co., Ltd.		25,000		282,165
Seino Holdings Co., Ltd. (a)		237,000		1,550,372
Yusen Air & Sea Service Co., Ltd. (a)		3,300		44,905

				6,277,994
Utilities 0.0%
Hokuriku Gas Co., Ltd.		2,000		6,071
Keiyo Gas Co., Ltd.		49,000		258,412
Otaki Gas Co., Ltd.		16,000		111,982
The Okinawa Electric Power Co., Inc.		400		15,783

				392,248

				181,489,630
Liechtenstein 0.1%

Diversified Financials 0.1%
Verwaltungs-und Privat-Bank AG		2,707		597,987
Luxembourg 0.1%

Household & Personal Products 0.1%
Oriflame Cosmetics S.A. (a)		9,241		614,313
Transportation 0.0%
Stolt-Nielsen S.A. (a)		9,147		191,299

				805,612
Malaysia 0.0%

Real Estate 0.0%
Rekapacific Berhad (b)(c)(d)		24,000		—
Netherlands 3.1%

Capital Goods 0.8%
Draka Holdings N.V.		3,500		112,994
Koninklijke BAM Groep N.V.		372,676		8,819,791

				8,932,785
Commercial Services & Supplies 0.2%
USG People N.V. (a)		94,734		2,247,054
Consumer Durables & Apparel 0.5%
TomTom N.V. (a)*		130,500		5,396,421
Diversified Financials 0.1%
Van der Moolen Holding N.V. (a)*		86,141		363,501
Food, Beverage & Tobacco 0.1%
CSM (a)		36,440		1,244,453
Materials 1.4%
Crown Van Gelder N.V. CVA		6,100		141,973
Koninklijke DSM N.V. (a)		333,748		16,093,512

				16,235,485
Media 0.0%
DOCdata N.V.		26,000		268,843
Semiconductors & Semiconductor Equipment 0.0%
BE Semiconductor Industries N.V. (a)*		70,783		355,868
Software & Services 0.0%
ICT Automatisering N.V.		14,362		199,004

				35,243,414
New Zealand 0.3%

Consumer Services 0.1%
Millennium & Capthorne Hotels New Zealand Ltd.		1,147,522		654,732
Energy 0.0%
New Zealand Oil & Gas Ltd. *		11,942		12,699
The New Zealand Refining Co., Ltd.		15,972		87,413

				100,112
Retailing 0.0%
Hallenstein Glasson Holdings Ltd.		52,084		153,389
The Warehouse Group Ltd.		16,100		74,163

				227,552
Transportation 0.2%
Air New Zealand Ltd. (a)		1,616,305		1,639,234
Tourism Holdings Ltd.		217,789		300,232

				1,939,466
Utilities��0.0%
Vector Ltd.		44,700		60,492

				2,982,354
Norway 0.3%

Capital Goods 0.3%
Aker Yards A/S (a)*		278,280		3,700,954

See financial notes.

42 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Transportation 0.0%
Fosen Trafikklag A.S.A.		187		25,338

				3,726,292
Papua New Guinea 0.0%

Energy 0.0%
Oil Search Ltd.		86,500		382,328
Portugal 0.8%

Capital Goods 0.3%
Grupo Soares da Costa, SGPS S.A. *		647,330		1,606,991
Teixeira Duarte – Engenharia e Construcoes S.A.		513,134		1,223,115

				2,830,106
Consumer Services 0.0%
Ibersol SGPS S.A.		24,228		245,123
Materials 0.5%
Corticeira Amorim S.A.		3,256		8,276
Semapa – Sociedade de Investimento e Gestao, SGPS, S.A.		249,825		3,200,498
Sonae Industria-SGPS S.A. *		330,000		2,293,131

				5,501,905
Software & Services 0.0%
Novabase SGPS S.A. *		25,210		125,936
Reditus-SGPS S.A. *		15,393		205,853

				331,789

				8,908,923
Republic of Korea 3.5%

Automobiles & Components 0.0%
Dong-Il Corp.		3,446		264,448
Motonic Corp.		420		35,581

				300,029
Banks 0.1%
Cheju Bank Ltd. *		4,240		33,666
Jinheung Mutual Savings Bank Co., Ltd.		148,070		798,082
Korea Mutual Savings Bank		1,780		41,938

				873,686
Capital Goods 0.9%
Daesang Holdings Co., Ltd.		5,000		22,281
Doosan Corp. *		19,770		3,835,059
Hanil Construction Industry Co.		39,483		533,729
Hanshin Construction Co., Ltd.		5,850		147,340
KCC Engineering & Construction Co., Ltd.		23,792		1,270,576
Kyeryong Construction Industrial Co., Ltd.		39,750		1,359,326
Sambu Construction Co., Ltd.		26,711		1,221,153
Samho International Co., Ltd.		45,330		637,342
Samwhan Corp.		34,370		745,821
Shinsegae Engineering & Construction Co., Ltd.		7,650		238,706

				10,011,333
Consumer Durables & Apparel 0.3%
Cheil Industries, Inc.		53,910		2,627,683
Shinwon Corp.		14,810		299,263
Youngone Corp.		114,450		935,468

				3,862,414
Diversified Financials 0.0%
Shinyoung Securities Co., Ltd. *		7,370		380,900
Energy 0.1%
GS Holdings Corp.		3,440		134,351
SK Gas Co., Ltd.		15,656		1,083,052

				1,217,403
Food, Beverage & Tobacco 0.2%
Dongwon F&B Co., Ltd.		8,173		300,526
Muhak Co., Ltd.		177		872
Namyang Dairy Products Co., Ltd.		1,804		1,415,366
Nong Shim Holdings Co., Ltd.		790		57,925
Samyang Corp.		1,201		52,802
Samyang Genex Co., Ltd.		8,040		450,800
TS Corp.		7,400		466,354

				2,744,645
Household & Personal Products 0.1%
Pacific Corp.		9,690		1,177,963
Materials 0.8%
Asia Cement Co., Ltd.		19,010		1,119,082
Hanwha Chemical Corp.		59,740		1,014,719
Hanwha Corp.		20,172		1,068,896
Honam Petrochemical Corp.		4,780		391,094
Hyosung Corp.		18,270		1,240,967
Hyundai Cement Co., Ltd.		4,443		163,750
Korea Iron & Steel Co., Ltd.		17,020		1,262,792
Korea Petrochemical Industrial Co., Ltd.		13,010		491,507
Korea Zinc Co., Ltd.		16,510		2,004,393
Taekwang Industrial Co., Ltd.		106		96,269

				8,853,469
Pharmaceuticals & Biotechnology 0.3%
Choongwae Holdings Co., Ltd. *		3,739		47,223
Daewoong Co., Ltd. *		40,310		1,613,130
Green Cross Holdings Corp.		584		53,072
Il Dong Pharmaceutical Co., Ltd. *		31,993		1,347,108
Jeil Pharmaceutical Co.		1,250		13,821
Samil Pharmaceutical Co., Ltd.		16,060		183,325
Shin Poong Pharmaceutical Co., Ltd.		1,860		36,370

				3,294,049
Retailing 0.2%
GS Home Shopping, Inc.		15,100		963,737
Taegu Department Store Co., Ltd. *		54,180		788,162

				1,751,899
Software & Services 0.1%
Daou Technology, Inc.		115,270		994,859

See financial notes.

Laudus International Equity Funds 43

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Technology Hardware & Equipment 0.2%
People & Telecommunication		24,708		210,898
SFA Engineering Corp.		29,719		1,968,792

				2,179,690
Telecommunication Services 0.0%
LG Telecom Ltd.		52,220		412,904
Utilities 0.2%
KyungDong City Gas Co., Ltd.		410		23,572
Samchully Co., Ltd.		7,900		1,254,227
Seoul City Gas Co., Ltd.		8,359		717,917
YESCO Co., Ltd.		7,350		269,281

				2,264,997

				40,320,240
Singapore 1.1%

Capital Goods 0.1%
Haw Par Corp., Ltd.		319,000		1,605,073
The Straits Trading Co., Ltd.		7,000		34,124
XP Power Ltd.		30,792		138,302

				1,777,499
Consumer Services 0.1%
Hotel Grand Central Ltd.		3,000		2,082
Hotel Plaza Ltd.		746,000		1,026,606
Overseas Union Enterprise Ltd.		6,000		52,570

				1,081,258
Diversified Financials 0.4%
G.K. Goh Holdings Ltd.		509,083		370,680
K1 Ventures Ltd.		3,930,000		557,903
Kim Eng Holdings Ltd. (a)		1,121,513		1,670,947
UOB-Kay Hian Holdings Ltd.		1,505,850		2,155,294

				4,754,824
Energy 0.1%
Singapore Petroleum Co., Ltd.		123,000		608,439
Food, Beverage & Tobacco 0.0%
Cerebos Pacific Ltd.		32,000		88,281
QAF Ltd.		54,000		15,927

				104,208
Real Estate 0.0%
Ho Bee Investment Ltd.		571,000		387,070
MCL Land Ltd.		24,000		32,345

				419,415
Retailing 0.2%
Jardine Cycle & Carriage Ltd. (a)		58,000		830,342
Metro Holdings Ltd.		2,098,000		1,073,939

				1,904,281
Software & Services 0.0%
Singapore Computer Systems Ltd.		21,000		12,688
Technology Hardware & Equipment 0.0%
Elec & Eltek International Co., Ltd.		37,000		64,128
Transportation 0.2%
Neptune Orient Lines Ltd. (a)		868,000		2,071,236

				12,797,976
Spain 3.1%

Capital Goods 1.0%
Construcciones y Auxiliar de Ferrocarriles S.A.		9,692		4,291,030
Obrascon Huarte Lain S.A. (a)		193,226		7,168,126

				11,459,156
Commercial Services & Supplies 0.1%
Befesa Medio Ambiente S.A. (a)*		29,309		976,520
Consumer Durables & Apparel 0.0%
Tavex Algodonera S.A. *		94,146		230,726
Food, Beverage & Tobacco 0.1%
Pescanova S.A.		17,100		846,012
Materials 0.6%
Cementos Portland Valderrivas S.A. (a)		71,515		6,947,178
Transportation 0.5%
Iberia Lineas Aereas de Espana S.A.		1,214,051		5,286,649
Utilities 0.8%
Union Fenosa S.A. (a)		140,009		9,412,106

				35,158,347
Sweden 1.5%

Capital Goods 0.3%
AddTech AB, B Shares		19,445		418,893
OEM International AB, B Shares		17,531		122,598
Trelleborg AB, B Shares (a)		133,524		2,665,615

				3,207,106
Commercial Services & Supplies 0.0%
Cision AB (a)*		14,464		40,172
Diversified Financials 0.0%
AB Traction, B Shares		10,017		107,773
Geveko AB – B Shares		44		696
Havsfrun Investment AB		2,029		10,523

				118,992
Energy 0.3%
PA Resources AB *		385,845		3,170,325
Materials 0.0%
ProfilGruppen AB, B Shares		3,615		46,254
Pharmaceuticals & Biotechnology 0.0%
Biotage AB *		17,650		26,744
Software & Services 0.0%
Addnode AB		34,730		153,103
IBS AB, B Shares *		4,816		11,689
ProAct IT Group AB		5,000		30,548
Sigma AB, B Shares		226,000		274,097

				469,437

See financial notes.

44 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Technology Hardware & Equipment 0.0%
PartnerTech AB		192		1,224
Telecommunication Services 0.9%
Tele2 AB, Class B		510,000		9,647,536
Transportation 0.0%
Rederi AB Transatlantic		65,778		486,002

				17,213,792
Switzerland 10.4%

Automobiles & Components 0.3%
Rieter Holding AG – Reg’d		10,153		3,887,324
Banks 0.2%
Banque Cantonale de Geneve		8,832		2,161,567
Graubunder Kantonalbank		672		680,140

				2,841,707
Capital Goods 2.3%
Bobst Group AG – Reg’d		60,400		4,689,873
Bucher Industries AG – Reg’d		27,848		7,561,097
Carlo Gavazzi Holding AG		1,170		224,115
Conzzeta Holding AG		1,075		2,655,297
Daetwyler Holding AG		44,500		3,473,378
Feintool International Holding AG – Reg’d		1,932		645,839
Georg Fischer AG – Reg’d *		10,590		5,233,154
Harwanne Compagnie de participations industielles et financieres S.A. (a)		1,710		507,094
Tornos S.A. – Reg’d *		51,473		832,346
WMH Walter Meier AG, Class A – Reg’d		4,831		929,980

				26,752,173
Commercial Services & Supplies 1.2%
Adecco S.A. – Reg’d (a)		228,071		13,174,793
Consumer Durables & Apparel 0.3%
Forbo Holding AG – Reg’d *		7,335		3,887,135
Consumer Services 0.6%
Kuoni Reisen Holding AG – Reg’d		11,100		6,171,327
MCH Messe Schweiz Holding AG – Reg’d		270		191,362

				6,362,689
Diversified Financials 0.1%
Valartis Group AG		11,876		669,935
Food, Beverage & Tobacco 0.2%
Eichhof Holding AG – Reg’d		193		377,706
Emmi AG – Reg’d		13,172		1,903,416

				2,281,122
Insurance 2.9%
Baloise Holding AG – Reg’d		149,200		14,835,651
Schweizerische Naional-Versicherungs-Gesellschaft – Reg’d		3,206		2,634,130
Swiss Life Holding – Reg’d *		54,055		15,033,744

				32,503,525
Materials 1.2%
Ciba Holding AG (a)		133,899		4,883,093
Clariant AG – Reg’d *		518,000		4,416,300
CPH Chemie & Papier Holding AG – Reg’d		102		232,447
Industrieholding Cham AG – Reg’d *		2,117		720,350
Siegfried Holding AG – Reg’d		9,738		1,485,295
Swissmetal, UMS Schweizerische Metallwerke Holding AG *		18,631		394,341
Vetropack Holding AG		546		1,238,344

				13,370,170
Real Estate 0.1%
LO Holding Lausanne-Ouchy S.A.		77		92,266
Pax-Anlage AG – Reg’d		60		49,658
Zueblin Immobilien Holding AG – Reg’d *		71,646		728,578

				870,502
Retailing 0.0%
Metraux Services Holding AG – Reg’d		1,633		282,321
Technology Hardware & Equipment 0.3%
Also Holding – Reg’d		15,459		901,295
Inficon Holding AG – Reg’d		8,287		1,322,784
Phoenix Mecano AG		3,672		1,845,189

				4,069,268
Transportation 0.1%
The Jungfraubahn Holding AG – Reg’d		21,324		1,139,098
Utilities 0.6%
Elektrizitaets-Gesellschaft Laufenburg AG		2,680		3,502,809
Energiedienst Holding AG – Reg’d *		4,956		3,197,797

				6,700,606

				118,792,368
United Kingdom 12.5%

Automobiles & Components 0.0%
Avon Rubber plc		126,000		230,558
Capital Goods 2.6%
AMEC plc		73,227		1,051,762
Carr’s Milling Industries plc		27,358		282,776
Castings plc		97,863		553,063
Chemring Group plc		128,723		6,285,598
Cookson Group plc		213,545		2,817,459
Hampson Industries plc		28,899		68,794
IMI plc		972,000		8,760,431
J. Smart & Co. (Contractors) plc		17,591		192,016
Keller Group plc		169,787		2,273,839
Molins plc		5,909		14,571
MS International plc		19,986		65,518
Qinetiq plc		1,598,309		6,126,844

See financial notes.

Laudus International Equity Funds�� 45

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number of		Value
Security	Shares		($)
Renold plc *		5,392		8,449
Trifast plc		275,125		313,972
UMECO plc		19,236		200,394
Waterman Group plc		81,607		230,117

				29,245,603
Commercial Services & Supplies 0.8%
Carter & Carter Group plc (b)(c)(d)		173,983		142,434
Communisis plc		397,462		500,385
Harvey Nash Group plc		189,717		141,263
Management Consulting Group plc		517,552		379,661
Office2office plc		158,525		475,071
OPD Group plc		16,101		56,367
Tribal Group plc		169,542		448,728
WS Atkins plc		315,417		6,585,445

				8,729,354
Consumer Durables & Apparel 0.1%
Pace Micro Technology plc (b)(d)*		350,566		634,873
Consumer Services 0.0%
Sportech plc *		177,613		266,091
Energy 2.1%
Anglo Pacific Group plc		18,001		56,067
Dana Petroleum plc *		171,997		4,303,091
John Wood Group plc		1,010,197		8,119,374
Petrofac Ltd.		656,784		7,325,386
Premier Oil plc *		164,836		4,542,042

				24,345,960
Food, Beverage & Tobacco 0.2%
Britvic plc		284,902		1,801,118
Household & Personal Products 0.1%
McBride plc		311,749		652,475
PZ Cussons plc		294,070		1,080,197

				1,732,672
Insurance 0.8%
Old Mutual plc		4,101,000		9,000,148
Materials 1.8%
Antofagasta plc		3,829		53,310
Carclo plc		136,704		224,819
Croda International plc		47,627		626,158
Delta plc		131,334		244,861
DS Smith plc		366,234		1,139,150
Elementis plc		372,704		490,251
Hochschild Mining plc		63,053		549,069
Johnson Matthey plc		150,000		5,974,698
Randgold Resources Ltd.		205,286		9,601,700
Vedanta Resources plc		26,565		1,107,042
Yule Catto & Co. plc		56,015		174,034

				20,185,092
Media 0.0%
Chime Communications plc		98,233		56,463
Creston plc		155,944		179,289
MICE Group plc (b)(d)*		648,992		19,321
Next Fifteen Communications plc		156,902		179,386

				434,459
Retailing 0.1%
John David Group plc		106,888		709,319
Land of Leather Holdings plc		252,000		270,018
Moss Bros Group plc		15,415		14,307

				993,644
Software & Services 0.6%
Computacenter plc		436,666		1,487,353
Dimension Data Holdings plc (a)		3,306,056		3,185,084
Intec Telecom Systems plc *		1,008,849		851,827
Kewill Systems plc		98,961		161,739
LogicaCMG plc		151,368		318,182
Microgen plc		230,560		217,656
Morse plc		425,406		531,898
nCipher plc *		76,000		193,140

				6,946,879
Technology Hardware & Equipment 0.6%
Acal plc		82,250		266,868
E2V Technologies plc		307,330		1,081,237
Filtronic plc *		93,535		320,326
Oxford Instruments plc		69,597		255,738
Psion plc		37,934		75,189
Spectris plc		224,534		3,318,847
TT electronics plc		480,007		925,839
Vislink plc		263,135		147,801

				6,391,845
Telecommunication Services 0.0%
Vanco plc (a)*		119,897		166,396
Transportation 0.8%
Accident Exchange Group plc		65,052		45,208
Arriva plc		48,679		663,040
Braemar Shipping Services plc		64,440		564,836
Clarkson plc		14,765		225,855
FirstGroup plc		665,483		7,449,094

				8,948,033
Utilities 1.9%
British Energy Group plc		1,714,441		22,214,690

				142,267,415

Total Common Stock (Cost $1,043,840,883)				1,088,713,385

Preferred Stock 0.3% of net assets

Austria 0.0%

MIBA AG		700		135,930
Canada 0.0%

FirstService Corp. *		15,595		292,406

See financial notes.

46 Laudus International Equity Funds

Laudus Rosenberg International Small Capitalization Fund


	Number of		Value
Security	Shares		($)
Germany 0.3%

Draegerwerk AG		11,938		702,639
Hans Einhell AG		4,600		227,194
Jungheinrich AG		47,379		1,720,677
Sanacorp Pharmaholding AG		884		35,239
Sto AG		4,603		344,198
Villeroy & Boch AG (a)		5,115		71,951

				3,101,898

Total Preferred Stock (Cost $3,369,493)				3,530,234

Rights 0.0% of net assets

Belgium 0.0%

Carrieres Unies Porphyre (b)(d)*		11		—

Total Rights (Cost $—)				—

Warrants 0.0% of net assets
Bermuda 0.0%

Champion Technology Holdings Ltd. (b)(d)*		889,944		—

Total Warrants (Cost $ — )				—


	Number of		Value
Security	Shares		($)
Short-Term Investment 1.4% of net assets
Repurchase Agreement 1.4%

Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $15,581,866 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $15,892,722.)		15,581,000		15,581,000

Total Short-Term Investment (Cost $15,581,000)				15,581,000

End of Investments.


	Number of		Value
Security	Shares		($)
Collateral Invested for Securities on Loan 7.0% of net assets

State Street Navigator Security Lending Prime Portfolio		79,431,797		79,431,797

End of collateral invested for securities on loan.

At 03/31/08, the tax basis cost of the fund’s investments was $1,070,824,804 and the unrealized appreciation and depreciation were $172,075,616 and ($135,075,801), respectively, with a net unrealized appreciation of $36,999,815.

At 03/31/08, the prices of certain foreign securities held by the fund aggregating $997,626,259 were adjusted from their closing market prices following the guidelines adopted by the fund’s board of trustees.


*	Non-income producing security.
(a)	All or a portion of this security is on loan.
(b)	Fair-valued by Management.
(c)	Bankrupt security/delisted.
(d)	Illiquid security. At the period end, the value of these amounted to $796,628 or .0.1% of net assets.


		Amount
		of		Amount of	Unrealized
	Currency	Currency	Currency	Currency to	Gains/
Expiration	to be	to be	to be	be	Losses
Date	Received	Received	Delivered	Delivered	($)
Forward Foreign Currency Contract
04/03/2008	USD	3,567,561	JPY	355,546,000	7,346

Net unrealized gains on Forward Foreign Currency Contracts					7,346

See financial notes.

Laudus International Equity Funds 47

Financial Statements

Statement of Assets and Liabilities as of 3/31/08


									Laudus Rosenberg
									International
			Laudus Rosenberg			Laudus Rosenberg			Small
			International			International			Capitalization
			Equity Fund			Discovery Fund			Fund

Assets:
Total investments, at cost			$	109,090,630		$	268,987,513		$	1,062,791,376

Investments, at value¹			$	115,186,869		$	256,412,192		$	1,092,243,619
Repurchase agreements, at amortized cost				597,000			6,290,000			15,581,000

		Total Investments		115,783,869			262,702,192			1,107,824,619

Collateral invested for securities on loan				—			—			79,431,797
Cash				561			894			5,966
Foreign currency, at value²				564,073			1,796,085			9,254,942
Unrealized gain on foreign currency contracts				—			—			7,346
Dividends and interest receivable				427,668			1,012,752			4,376,888
Receivable for fund shares sold				104,636			1,054,769			759,755
Receivable for investments sold				1,825,805			4,015,996			19,204,183
Reclaims receivable				24,914			25,361			300,854
Prepaid expenses				1,445			175			11,435

		Total Assets		118,732,971			270,608,224			1,221,177,785

Liabilities:
Payable for fund shares repurchased				102,762			292,284			1,966,122
Payable for investments purchased				1,272,623			8,575,119			2,475,224
Collateral held for securities on loan				—			—			79,431,797
Accrued expenses and other liabilities:
	Trustees’ retirement plan			3,078			82			68,113
	Manager fees			7,893			4,498			89,731
	Transfer agent fees			3,605			53,884			43,469
	Distribution and shareholder service fees			3,581			18,047			309,338
	Administration and fund accounting fee			9,476			11,799			19,788
	Other accrued expenses			58,728			79,318			361,854

		Total Liabilities		1,461,746			9,035,031			84,765,436

Net Assets			$	117,271,225		$	261,573,193		$	1,136,412,349

Net Assets Consist of:
Capital			$	112,301,552		$	276,076,903		$	1,174,055,651
Undistributed net investment income/Distributions in excess of net investment income				75,602			358,822			(4,769,775	)
Accumulated net realized gains/(losses) on investments				(1,802,731	)		(8,590,658	)		(77,902,302	)
Net unrealized appreciation/depreciation on investments				6,696,802			(6,271,874	)		45,028,775

Net Assets			$	117,271,225		$	261,573,193		$	1,136,412,349

Institutional Shares:
Net Assets			$	97,701,295		$	139,642,717		$	612,703,443
Shares Outstanding				8,427,447			12,191,249			36,104,047
Net Asset Value, Offering Price and Redemption Price per Share			$	11.59		$	11.45		$	16.97

Investor Shares:
Net Assets			$	19,569,930		$	121,930,476		$	523,708,906
Shares Outstanding				1,687,031			10,670,699			31,291,404
Net Asset Value, Offering Price and Redemption Price per Share			$	11.60		$	11.43		$	16.74


¹	Includes securities on loan for Laudus Rosenberg International Small Capitalization Fund of $75,372,794.

²	Foreign currency at cost for Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund was $562,936, $1,796,023, and $9,265,792, respectively.

See the accompanying notes to the financial statements.

48 Laudus International Equity Funds

Financial Statements

Statement of Operations for the year ended 3/31/08


									Laudus Rosenberg
									International
			Laudus Rosenberg			Laudus Rosenberg			Small
			International			International			Capitalization
			Equity Fund			Discovery Fund			Fund

Investment Income:
	Dividends¹		$	3,891,455		$	4,159,004		$	52,075,484
	Interest			51,868			275,330			698,062
	Securities lending			—			—			2,144,300

	Total investment income			3,943,323			4,434,334			54,917,846

Expenses:
	Manager fees			1,139,805			1,756,110			17,806,108
	Distribution and shareholder service fees (Investor Shares)			96,769			278,187			1,996,369
	Professional fees			48,737			37,334			101,846
	Custodian fees			122,150			327,795			1,127,635
	Overdraft charges			7,218			4,902			197,310
	Fund accounting fees and administration fees			86,480			101,411			180,968
	Registration and filing fees			21,090			28,816			38,022
	Sub-accounting fees (Investor Shares)			50,015			109,536			931,957
	Shareholder report fee			12,052			27,012			160,792
	Transfer agent fees			23,069			207,272			280,493
	Trustees’ fees			10,224			11,190			43,487
	Recouped by manager			182,083			—			—
	Other expenses			7,852			15,219			112,450

		Total expenses before custody credits and waivers/reimbursements		1,807,544			2,904,784			22,977,437
		Less custody credits		(161	)		(2,243	)		(2,778	)
		Less expenses waived/reimbursed by the Manager²		(16,061	)		(196,269	)		—

		Net expenses		1,791,322			2,706,272			22,974,659

	Net investment income/(loss)			2,152,001			1,728,062			31,943,187

Realized and Unrealized Gains/(Losses) on Investments
	Net realized gains/(losses) on securities and foreign currency transactions			3,091,259			(2,339,694	)		54,346,298
	Change in unrealized appreciation/(depreciation) on investments			(12,929,808	)		(14,507,335	)		(298,240,524	)

	Net realized and unrealized gains/(losses) on investments			(9,838,549	)		(16,847,029	)		(243,894,226	)

Change in Net Assets Resulting from Operations			$	(7,686,548	)	$	(15,118,967	)	$	(211,951,039	)


¹	Net of foreign withholding tax for Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, and Laudus Rosenberg International Small Capitalization Fund, was $372,348, $392,028, and $5,269,156 respectively.

²	Includes reimbursement of sub-accounting fees on Investor Shares.

See the accompanying notes to the financial statements.

Laudus International Equity Funds 49

Financial Statements

Statement of Changes in Net Assets


			Laudus Rosenberg						Laudus Rosenberg						Laudus Rosenberg
			International						International						International
			Equity Fund						Discovery Fund						Small Capitalization Fund

			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
			2008			2007			2008			2007*			2008			2007

Operations:
	Net investment income/(loss)		$	2,152,001		$	1,147,989		$	1,728,062		$	392,230		$	31,943,187		$	16,791,687
	Net realized gains/(losses) from investments			3,091,259			6,877,363			(2,339,694	)		2,870,405			54,346,298			208,560,905
	Change in unrealized appreciation/(depreciation) from investments			(12,929,808	)		11,549,757			(14,507,335	)		8,235,461			(298,240,524	)		82,283,173

		Change in net assets resulting from operations		(7,686,548	)		19,575,109			(15,118,967	)		11,498,096			(211,951,039	)		307,635,765

Distributions to Shareholders from:
	Net investment income
		Institutional Shares		(2,381,553	)		(627,740	)		(720,949	)		(109,953	)		(34,839,457	)		(14,345,867	)
		Investor Shares		(361,620	)		(408,740	)		(1,224,195	)		(233,195	)		(21,597,431	)		(10,736,773	)

				(2,743,173	)		(1,036,480	)		(1,945,144	)		(343,148	)		(56,436,888	)		(25,082,640	)

	Net realized gains on investments
		Institutional Shares		(7,587,962	)		(1,295,067	)		(2,753,798	)		(30,335	)		(131,923,248	)		(79,486,024	)
		Investor Shares		(1,666,605	)		(1,092,235	)		(5,727,789	)		(82,625	)		(94,400,404	)		(74,164,191	)

				(9,254,567	)		(2,387,302	)		(8,481,587	)		(112,960	)		(226,323,652	)		(153,650,215	)

		Change in net assets resulting from distributions		(11,997,740	)		(3,423,782	)		(10,426,731	)		(456,108	)		(282,760,540	)		(178,732,855	)

Capital Transactions:
	Proceeds from shares issued
		Institutional Shares		55,041,800			48,370,879			145,518,579			18,758,287			300,629,366			430,184,421
		Investor Shares		6,229,865			48,191,782			144,113,465			53,586,133			92,413,634			215,540,881

				61,271,665			96,562,661			289,632,044			72,344,420			393,043,000			645,725,302

	Distributions reinvested
		Institutional Shares		5,789,629			746,719			2,373,494			118,690			144,495,987			77,822,309
		Investor Shares		1,834,295			1,436,598			6,361,968			281,821			97,508,406			72,673,365

				7,623,924			2,183,317			8,735,462			400,511			242,004,393			150,495,674

	Value of shares redeemed
		Institutional Shares		(16,666,965	)		(11,984,261	)		(17,223,557	)		(2,722,783	)		(585,177,294	)		(226,039,438	)
		Investor Shares		(45,082,165	)		(13,615,518	)		(64,769,656	)		(10,319,538	)		(349,737,839	)		(270,496,667	)

				(61,749,130	)		(25,599,779	)		(81,993,213	)		(13,042,321	)		(934,915,133	)		(496,536,105	)

		Change in net assets from capital transactions		7,146,459			73,146,199			216,374,293			59,702,610			(299,867,740	)		299,684,871

Change in net assets				(12,537,829	)		89,297,526			190,828,595			70,744,598			(794,579,319	)		428,587,781
Net Assets:
	Beginning of period			129,809,054			40,511,528			70,744,598			—			1,930,991,668			1,502,403,887

	End of period		$	117,271,225		$	129,809,054		$	261,573,193		$	70,744,598		$	1,136,412,349		$	1,930,991,668

Undistributed net investment income/Distributions in excess of net investment income			$	75,602		$	327,367		$	358,822		$	245,660		$	(4,769,775	)	$	9,402,286


^*	For the period May 31, 2006 (commencement of operations) through March 31, 2007.

See the accompanying notes to the financial statements.

50 Laudus International Equity Funds

Financial Statements—Statement of Changes in Net Assets continued


		Laudus Rosenberg						Laudus Rosenberg						Laudus Rosenberg
		International						International						International
		Equity Fund						Discovery Fund						Small Capitalization Fund

		Year Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
		March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
		2008			2007			2008			2007*			2008			2007

Shares sold:
	Institutional		4,161,569			4,057,376			11,862,466			1,838,230			13,114,742			20,193,658
	Investor		449,393			3,942,327			11,324,623			5,240,229			3,984,585			10,203,670

			4,610,962			7,999,703			23,187,089			7,078,459			17,099,327			30,397,328

Issued upon reinvestment of distributions:
	Institutional		474,171			57,930			203,036			10,560			8,381,438			3,719,996
	Investor		149,983			111,624			545,156			25,073			5,729,048			3,514,186

			624,154			169,554			748,192			35,633			14,110,486			7,234,182

Shares redeemed:
	Institutional		(1,244,671	)		(917,509	)		(1,465,877	)		(257,166	)		(31,657,552	)		(10,934,748	)
	Investor		(3,447,172	)		(1,117,813	)		(5,484,170	)		(980,212	)		(17,838,760	)		(13,086,640	)

			(4,691,843	)		(2,035,322	)		(6,950,047	)		(1,237,378	)		(49,496,312	)		(24,021,388	)

Change in shares:
	Institutional		3,391,069			3,197,797			10,599,625			1,591,624			(10,161,372	)		12,978,906
	Investor		(2,847,796	)		2,936,138			6,385,609			4,285,090			(8,125,127	)		631,216

			543,273			6,133,935			16,985,234			5,876,714			(18,286,499	)		13,610,122

See the accompanying notes to the financial statements.

Laudus International Equity Funds 51

Financial Statements

Financial Highlights as of 3/31/08


			Investment Activities									Less Dividends From

	Net Asset					Net Realized			Total						Net
	Value,		Net			and Unrealized			from			Net			Realized
	Beginning		Investment			Gains (Losses)			Investment			Investment			Gains on			Total
	of Period		Income/(Loss)			on Investments			Activities			Income			Investments			Dividends

Institutional Shares
International Equity Fund
For the year ended March 31, 2008	$	13.58	$	0.18		$	(0.92	)	$	(0.74	)	$	(0.30	)	$	(0.95	)	$	(1.25	)
For the year ended March 31, 2007		11.80		0.07			2.08			2.15			(0.12	)		(0.25	)		(0.37	)
For the year ended March 31, 2006		9.63		0.14			2.15			2.29			(0.12	)		—			(0.12	)
For the year ended March 31, 2005		8.46		0.09	(5)		1.12			1.21			(0.04	)		—			(0.04	)
For the year ended March 31, 2004		5.56		0.08	(5)		2.90			2.98			(0.08	)		—			(0.08	)
International Discovery Fund
For the year ended March 31, 2008		12.05		0.14	(5)		(0.16	)		(0.02	)		(0.12	)		(0.46	)		(0.58	)
May 31, 2006 to March 31, 2007 (1)		10.00		0.09	(5)		2.06			2.15			(0.08	)		(0.02	)		(0.10	)
International Small Capitalization Fund
For the year ended March 31, 2008		22.67		0.34			(2.55	)		(2.21	)		(0.73	)		(2.76	)		(3.49	)
For the year ended March 31, 2007		20.97		0.26			3.90			4.16			(0.38	)		(2.08	)		(2.46	)
For the year ended March 31, 2006		16.89		0.13			4.95			5.08			(0.08	)		(0.92	)		(1.00	)
For the year ended March 31, 2005		13.94		0.08	(5)		3.53			3.61			(0.04	)		(0.62	)		(0.66	)
For the year ended March 31, 2004		7.92		0.07	(5)		6.04			6.11			(0.09	)		—			(0.09	)
Investor Shares
International Equity Fund
For the year ended March 31, 2008		13.54		0.55			(1.33	)		(0.78	)		(0.21	)		(0.95	)		(1.16	)
For the year ended March 31, 2007		11.77		0.14			1.97			2.11			(0.09	)		(0.25	)		(0.34	)
For the year ended March 31, 2006		9.61		0.10			2.14			2.24			(0.08	)		—			(0.08	)
For the year ended March 31, 2005		8.47		0.06	(5)		1.11			1.17			(0.03	)		—			(0.03	)
For the year ended March 31, 2004		5.57		0.03	(5)		2.93			2.96			(0.08	)		—			(0.08	)
International Discovery Fund
For the year ended March 31, 2008		12.04		0.11	(5)		(0.16	)		(0.05	)		(0.10	)		(0.46	)		(0.56	)
May 31, 2006 to March 31, 2007 (1)		10.00		0.06	(5)		2.06			2.12			(0.06	)		(0.02	)		(0.08	)
International Small Capitalization Fund
For the year ended March 31, 2008		22.38		0.36			(2.60	)		(2.24	)		(0.63	)		(2.77	)		(3.40	)
For the year ended March 31, 2007		20.74		0.20			3.82			4.02			(0.30	)		(2.08	)		(2.38	)
For the year ended March 31, 2006		16.73		0.08			4.89			4.97			(0.04	)		(0.92	)		(0.96	)
For the year ended March 31, 2005		13.83		0.03	(5)		3.51			3.54			(0.02	)		(0.62	)		(0.64	)
For the year ended March 31, 2004		7.87		0.03	(5)		6.01			6.04			(0.08	)		—			(0.08	)


(1)	From the commencement of operations.
(2)	Not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(5)	Calculated based on the average shares outstanding during the period.
(6)	Amount less than $0.005.

See the accompanying notes to the financial statements.

52 Laudus International Equity Funds

Financial Statements—Financial Highlights continued


								Ratios/Supplemental Data

			Net Asset					Net Assets,		Net Investment
			Value,					End of		Income/(Loss) Net			Expenses			Expenses			Portfolio
Redemption			End of		Total			Period		of Waivers/			before Waivers/			Net of Waivers/			Turnover
Fees			Period		Return(2)			(000’s)		Reimbursements(3)			Reimbursements(3)			Reimbursements(3)			Rate(4)

$	—	(6)	$	11.59		(5.91	)%	$	97,701		1.46	%		1.23	%		1.22	%		82.89	%
	—	(6)		13.58		18.37			68,398		1.09			1.34			1.34			64.19
	—			11.80		23.86			21,688		1.34			1.96			1.34			59.40
	—	(6)		9.63		14.36			16,094		0.96			2.69			1.34			52.06
	0.01			8.46		53.81			9,914		1.12			4.32			1.35			107.02
	—	(6)		11.45		(0.24	)		139,643		1.14			1.54			1.35			146.60
	—	(6)		12.05		21.90			19,173		1.06			1.64			1.34			105.81
	—	(6)		16.97		(9.97	)		612,703		1.87			1.09			1.09			104.58
	—	(6)		22.67		20.82			1,048,829		1.21			1.10			1.10			91.82
	—			20.97		30.90			698,064		0.85			1.25			1.25			101.86
	—	(6)		16.89		26.52			270,646		0.50			1.55			1.49			59.70
	—	(6)		13.94		77.37			70,382		0.65			1.94			1.47			102.50
	—	(6)		11.60		(6.21	)		19,570		1.97			1.69			1.61			82.89
	—	(6)		13.54		18.08			61,411		1.17			1.71			1.64			64.19
	—			11.77		23.41			18,824		1.02			2.33			1.72			59.40
	—	(6)		9.61		13.79			12,491		0.65			2.96			1.72			52.06
	0.02			8.47		53.61			2,881		0.45			4.46			1.59			107.02
	—	(6)		11.43		(0.51	)		121,930		0.89			1.81			1.65			146.60
	—	(6)		12.04		21.62			51,572		0.75			2.03			1.64			105.81
	—	(6)		16.74		(10.27	)		523,709		1.55			1.45			1.45			104.58
	—	(6)		22.38		20.35			882,163		0.87			1.47			1.47			91.82
	—			20.74		30.48			804,340		0.42			1.60			1.60			101.86
	—	(6)		16.73		26.16			355,766		0.20			1.88			1.83			59.70
	—	(6)		13.83		76.91			82,780		0.28			2.18			1.75			102.50

See the accompanying notes to the financial statements.

Laudus International Equity Funds 53

Financial Statements

Notes to Financial Statements as of 3/31/08


1.	Organization.

Laudus Rosenberg U.S. Large Capitalization Fund,

Laudus Rosenberg U.S. Large Capitalization Growth
Fund,

Laudus Rosenberg U.S. Large Capitalization Value
Fund,

Laudus Rosenberg U.S. Discovery Fund,

Laudus Rosenberg U.S. Small Capitalization Fund,

Laudus Rosenberg International Equity Fund,

Laudus Rosenberg International Discovery Fund,

Laudus Rosenberg International Small Capitalization
Fund,

Laudus Rosenberg Long/ Short Equity Fund (formerly the
Laudus Rosenberg Value Long/Short Equity Fund),

Laudus Mondrian Emerging Markets Fund
(commenced operations on November 2, 2007),

Laudus Mondrian International Fixed Income Fund
(commenced operations on November 2, 2007)

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.

Each Fund is authorized to issue an unlimited number of Institutional Shares and Investor 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, bears different distribution and sub-transfer agent expenses, and has separate voting rights on matters pertaining solely to that class of shares.

2. Significant Accounting Policies.

Security Valuation

Each Fund uses approved pricing services to provide values for its portfolio securities. Current market values are generally determined by the approved pricing services as follows: securities traded on stock exchanges are valued at the last-quoted sales price on the exchange on which such securities are primarily traded (closing values), or, lacking any sales, at the mean between the bid and ask prices; securities traded in the over-the-counter market are valued at the last sales price that day, or, if there are no sales that day, at the mean between the bid and ask prices. In addition, securities that are primarily traded on foreign exchanges are generally valued at the preceding closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. Securities may be fair valued pursuant to procedures approved by the Funds’ Board of Trustees when approved pricing services do not provide a value for a security, a furnished price appears manifestly incorrect or events occur prior to the close of the New York Stock Exchange that materially affect the furnished price.

Short-term debt securities that mature in 60 days or less are valued at amortized cost, which approximates market value.

Other investment companies are valued at their respective net asset values as determined by those funds, in accordance with the Investment Company Act of 1940 for a given day.

54 Laudus International Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

Security Transactions and Related Investment Income

Changes in holdings of portfolio securities are reflected no later than on the first business day following the trade date. However, for financial reporting purposes, portfolio security transactions are reported on trade date. Net realized gains or losses from sales of securities are determined on the specific identification cost method. Interest income and expenses are recognized on the accrual basis. Dividend income, less foreign taxes withheld, (if any) and dividend expenses on securities sold short are recorded on the ex-dividend date. Interest income is recorded as earned.

Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. All monetary items denominated in foreign currencies are translated to U.S. dollars based upon the prevailing exchange rate at the close of each business day. Net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. Further, the effects of changes in foreign currency exchange rates on investments in securities are not segregated in the financial statements from the effects of changes in market prices of those securities, but are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Forward Foreign Currency Contracts

Forward foreign currency contracts are valued at the daily exchange rate of the underlying currency. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized appreciation or depreciation until the contractual settlement date. Gains or losses from the purchase or sale of forward foreign currency contracts are recorded as realized on the settlement date.

Foreign Securities

The Funds pursue their respective objectives by investing in foreign securities. Investments in securities of foreign issuers involve certain risks that are less significant for investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, changes in currency exchange rates or exchange control regulations (including currency blockage). The Funds may be unable to obtain and enforce judgments against foreign entities, and issuers of foreign securities are subject to different, and often less comprehensive, accounting, reporting and disclosure requirements than domestic issuers. Also, the securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies.

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

Securities Lending

Under the Securities Lending Program, securities held by the Laudus Rosenberg International Small Capitalization Fund are 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.

Laudus International Equity Funds 55

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

At March 31, 2008, the Fund had collateral and loans outstanding of:


			Value of
	Value of		Loaned
	Collateral		Securities

Laudus Rosenberg International Small Capitalization Fund	$	79,431,797	$	75,372,794

Expense, Investment Income and Gain/ Loss Allocation

Expenses directly attributable to a Fund are charged to that Fund; expenses not directly attributable to a Fund are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses specific to a class are charged to that class. Expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets or another reasonable basis. The investment income and expenses of the Fund (other than class specific expenses charged to a class) and realized and unrealized gains and losses are allocated to each class of shares based upon relative net assets on the date income is earned, or expenses and realized/unrealized gains and losses are incurred.

Distributions

Federal Income Taxes

It is the Funds’ policy to comply with the requirements of the Internal Revenue Code applicable to regulated investments companies, and to distribute substantially all of its taxable income, including any net realized gain on investments, to its shareholders. Therefore, no provisions are made for federal income taxes.

Custody Credit

New Accounting Standards

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS No. 157). 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 is effective for fiscal years beginning after November 15, 2007. As of March 31, 2008 management does not believe the adoption of SFAS No. 157 will impact the financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effects of certain of the measurements on changes in net assets for the period.


3.	Management, Administration, Fund Accounting, Distribution, Shareholder Service Agreements, and Trustee Expenses

The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.

56 Laudus International Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

The Funds pay CSIM an advisory fee for these services on a monthly basis. CSIM — and not the Funds — pays a portion of the advisory fees it receives to AXA Rosenberg in return for its services.

The table below sets forth the advisory fee payable to CSIM by each Fund.


		Agreement Rate*

Laudus Rosenberg International Equity Fund		1st $1 billion-0.85% $1 billion to $2 billion-0.80% Over $2 billion-0.775%
Laudus Rosenberg International Discovery Fund		1st $1billion-1.00% Over $1 billion-0.95%
Laudus Rosenberg International Small Capitalization Fund		1st $500 million-1.00% Over $500 million-0.95%


*	The advisory fee payable to CSIM varies based on fund assets.

The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2008, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.


	Institutional		Investor
	Shares		Shares

Laudus Rosenberg International Equity Fund*		1.12%		1.40%
Laudus Rosenberg International Discovery Fund		1.35%		1.65%
Laudus Rosenberg International Small Capitalization Fund		1.49%		1.79%


*	Prior to January 1, 2008, the expense limitation for the Institutional shares and Investor shares were 1.34% and 1.64%, respectively.


	Expires		Expires
	3/31/09		3/31/10

Laudus Rosenberg International Equity Fund	$	31,150	$	—
Laudus Rosenberg International Discovery Fund		167,471		196,269
Laudus Rosenberg International Small Capitalization Fund		—		—

Laudus International Equity Funds 57

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

interested persons for their services as trustees, but did pay non-interested persons (Independent Trustees), as noted in each Fund’s Statement of Operations.

4. Redemption Fee.

Certain Fund shares purchased that were redeemed or exchanged in less than 30 days, are assessed a fee of 2% of the current net asset value of the shares. The fee, which is applied to shares redeemed or exchanged in the order in which they are purchased, is retained by the Fund and is intended to limit short-term trading in the Funds, or to the extent short-term trading persists, to impose the costs of that activity on the shareholders who engage in it. Such amounts are net of the value of shares redeemed on the Statement of Changes in Net Assets. For the current and prior period, redemption fees assessed were as follows:


	Current		Prior
	Period		Period
	(4/1/07-		(4/1/06-
	3/31/08)		3/31/07)

Laudus Rosenberg International Equity Fund	$	1,697	$	20,146
Laudus Rosenberg International Discovery Fund		66,859		20,436
Laudus Rosenberg International Small Capitalization Fund		32,882		102,195


5.	Security Purchases and Sales.

For the period ended March 31, 2008, purchases and sales of securities (excluding short-term securities) were as follows:


	Purchases		Sales

Laudus Rosenberg International Equity Fund	$	109,430,483	$	111,413,371
Laudus Rosenberg International Discovery Fund		456,907,616		252,448,463
Laudus Rosenberg International Small Capitalization Fund		1,883,956,112		2,419,367,082


6.	Borrowings from Banks

The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund has 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 period ended March 31, 2008.

58 Laudus International Equity Funds

Financial Statements—Notes to Financial Statements as of 3/31/08 continued

7. Federal Income Taxes.

The tax character of distributions paid during the fiscal year ended March 31, 2008 was as follows:


	Ordinary		Long-Term		Total
	Income		Capital Gains		Distributions Paid

Laudus Rosenberg International Equity Fund	$	6,985,862	$	5,011,878	$	11,997,740
Laudus Rosenberg International Discovery Fund		9,290,498		1,136,233		10,426,731
Laudus Rosenberg International Small Capitalization Fund		121,519,374		161,241,166		282,760,540

The tax character of distributions paid during the fiscal year ended March 31, 2007 was as follows:


	Ordinary		Long-Term		Total
	Income		Capital Gains		Distributions Paid

Laudus Rosenberg International Equity Fund	$	1,036,481	$	2,387,301	$	3,423,782
Laudus Rosenberg International Discovery Fund		456,108		—		456,108
Laudus Rosenberg International Small Capitalization Fund		94,586,998		84,145,857		178,732,855


	Capital Losses

Laudus Rosenberg International Equity Fund	$	1,443,588
Laudus Rosenberg International Discovery Fund		7,099,349
Laudus Rosenberg International Small Capitalization Fund		75,298,406

As of March 31, 2008, the components of distributable earnings/accumulated(losses) on a tax basis were as follows:


	Undistributed		Undistributed		Accumulated			Unrealized
	Ordinary		Long-Term		Capital and			Appreciation/
	Income		Capital Gains		Other Losses			Depreciation

Laudus Rosenberg International Equity Fund	$	336,608	$	9,394	$	(1,446,665	)	$	6,070,336
Laudus Rosenberg International Discovery Fund		771,470		—		(7,123,219	)		(8,151,961	)
Laudus Rosenberg International Small Capitalization Fund		736,530		—		(75,375,179	)		36,995,347

The permanent book and tax basis differences may result in reclassifications between capital accounts and other accounts as required. The adjustments have no impact on net assets or the results of operations. As of March 31, 2008, the Funds made the following reclassifications:


			Accumulated
	Accumulated		Net Realized
	Net Investment		Gains/(Losses)			Paid In
	Income/(Loss)		on Investments			Capital

Laudus Rosenberg International Equity Fund	$	339,407	$	(339,407	)	$	—
Laudus Rosenberg International Discovery Fund		330,244		(330,244	)		—
Laudus Rosenberg International Small Capitalization Fund		10,321,640		(10,321,640	)		—

Laudus International Equity Funds 59

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Laudus Trust

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 (the “Funds”) at March 31, 2008, the results of each of their operations for the year then ended, and 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 audits 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, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 14, 2008

60 Laudus International Equity Funds

Other 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, 2008.


	Foreign Tax
	Credit

Laudus Rosenberg International Equity Fund	$	364,694
Laudus Rosenberg International Discovery Fund		370,588
Laudus Rosenberg International Small Capitalization Fund		5,058,257

For the year ended March 31, 2008, the Funds designate the following amounts of qualified dividend income:


	Qualified
	Dividend Income

Laudus Rosenberg International Equity Fund	$	3,986,816
Laudus Rosenberg International Discovery Fund		3,373,856
Laudus Rosenberg International Small Capitalization Fund		35,431,312

Laudus International Equity Funds 61

Trustees and Officers


Independent Trustees

Name, Address¹and		Number of
Year of Birth;		Portfolios in
(Term of Office and	Principal Occupation(s)	Fund Complex	Other Directorships
Length of Time Served²)	During Past Five Years	Overseen	Held by Trustee

Mariann Byerwalter³1960 (1/04-present)	Chairman of JDN Corporate Advisory LLC.	79	Board 1 – Director, Redwood Trust, Inc. (mortgage finance). Board 2 – Director, PMI Group, Inc. (mortgage insurance).

William A. Hasler³1941 (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 Corporation (bio- pharmaceuticals).	79	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 communications technology) Board 6 – Rubicon Limited (manufacturing)

Nils H. Hakansson³1937 (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).	11	None

62 Laudus International Equity Funds

Trustees and Officers continued


Independent Trustees

Name, Address¹and		Number of
Year of Birth;		Portfolios in
(Term of Office and	Principal Occupation(s)	Fund Complex	Other Directorships
Length of Time Served²)	During Past Five Years	Overseen	Held by Trustee

Randall W. Merk 1954 (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.	11	None


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.

Laudus International Equity Funds 63

Trustees and Officers continued


Officers

Name, Address⁴
and Year of Birth;
(Term of Office⁵and
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.

Randall Fillmore 1960 (9/04-present)	Chief Compliance Officer	Senior Vice President, Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President, Charles Schwab & Co., Inc.; Chief Compliance Officer, Schwab Funds. From June 2006 to June 2007, Chief Compliance Officer, Excelsior Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc.

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.

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.

Cathy Sabo 1964 (12/05-present)	Vice President	Vice President, Compliance, Charles Schwab Investment, Management, Inc.; Vice President, Schwab Funds; until September 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.


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.

64 Laudus International Equity Funds

Definitions, Terms and Other Information

GDP, or Gross Domestic Product, is the market value of the goods and services produced by labor and property in the United States.

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.

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 dividend 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.

Proxy Voting

Quarterly Disclosure of Portfolio Holdings

Laudus International Equity Funds 65

(This page intentionally left blank)


	COMMAND PERFORMANCE™

Manager

Charles Schwab Investment Management, Inc.

101 Montgomery Street

San Francisco, California 94104

Shareholder Services

1.866.452.8387 Investment Professionals

1.800.447.3332 Individual Investors

www.laudus.com

This report is for the information of the shareholders of the Laudus Trust.

Its use in connection with any offering of the Trust’s shares is authorized only in case of concurrent or prior

delivery of the current prospectus.

MFR 41683


Annual Report March 31, 2008

COMMAND PERFORMANCE^TM

Laudus Mondrian Funds^tm

Laudus Mondrian Emerging Markets Fund

Laudus Mondrian International Fixed Income Fund

Adviser

Charles Schwab Investment Management, Inc.

Subadviser

Mondrian Investment Partners Limited


In This Report
Performance at a Glance		2
From the President		3
The Investment Environment		4
Laudus Mondrian Emerging Markets Fund		6
Laudus Mondrian International Fixed Income Fund		8
Fund Expenses		10
Financial Statements		11
Financial Notes		26
Report of Independent Registered Public Accounting Firm		33
Trustees and Officers		37
Glossary		40
EXHIBIT 99.CERT
EXHIBIT 99.906CERT
EXHIBIT 99.CODE ETH

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
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. 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.laudusfunds.com.


Total Return for the Report Period 11/2/07 (inception) to 3/31/08


Laudus Mondrian Emerging Markets Fund

Investor Shares (Ticker Symbol: LEMIX)		-6.98%
Select Shares^® (Ticker Symbol: LEMSX)		-6.75%
Institutional Shares (Ticker Symbol: LEMNX)		-6.94%
Benchmark: MSCI Emerging Markets Index		-15.27%

Performance Details		pages 6-7



Laudus Mondrian International Fixed Income Fund

Investor Shares (Ticker Symbol: LIFIX)		13.27%
Select Shares^® (Ticker Symbol:LIFSX)		13.42%
Institutional Shares (Ticker Symbol: LIFNX)		13.42%
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index		12.57%

Performance Details		pages 8-9



Minimum Initial Investment¹

Investor Shares		$ 100
Select Shares		$ 50,000
Institutional Shares		$500,000

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 effect share level returns.

Fund expenses may have been partially waived or 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.

Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets. Bond funds are subject to increased risk of loss of principal during periods of rising interest rates.


¹	Please see prospectus for further detail and eligibility requirements.

2 Laudus Mondrian Funds

From the President

Dear Shareholder,

I am pleased to present the annual report for the Laudus Mondrian Funds for the year ended March 31, 2008. At this time, I would also like to introduce Jeffrey Mortimer, who will be assuming the position of President and CEO of the Laudus Mondrian Funds. As the current Chief Investment Officer (CIO) of both Laudus Funds and Schwab Equity Funds, Jeffrey is an exceptionally capable portfolio manager and strategist, bringing over 20 years of industry knowledge and experience to the role.

Launched on November 2, 2007, the Laudus Mondrian Funds have reached over $100 million in assets as of the report date. Our two initial offerings, the Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund, both provide independent advisors and individual investors with access to proven institutional investment management in international bond and emerging markets.

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 common and consistent value-oriented investment philosophy. Mondrian manages more than $60 billion in assets for some of the world’s largest companies and public retirement plans.

In closing, I would like to thank you for investing with us.

Sincerely,

Laudus Mondrian Funds 3

The Investment Environment

Global Market Overview

The following commentary covers the twelve-month period ending March 31, 2008. During the five-month period since the inception of the Laudus Mondrian Emerging Markets and International Fixed Income Funds in early November 2007 through March 31, 2008, the emerging markets area suffered through a significant decline, finishing the period down more than 15%, as shown in the performance table on page 7. However, the international fixed income area performed very well, gaining nearly 13% over the five-month period, as shown in the performance table on page 9.

The past four quarters were a period of increasing volatility in capital markets around the globe. The period began with fairly strong positive returns, with many equity indexes gaining over 6% in the second quarter of 2007. In the third quarter, however, small-cap stocks around the world began to pull back, posting generally negative returns, particularly more value-oriented stocks. Large-cap indexes, especially those with a growth-style orientation, continued upward. During the final two quarters of the period, the damage spread across all equity areas – many indexes lost well over 10%, as investors became increasingly concerned about slowing global economic growth and problems in the credit markets. As a result, global equity markets ultimately generated mostly negative returns for the full period, with U.S. small-cap stocks the worst performing area. The most notable exception was emerging markets stocks, which finished the period up over 20%.

Three specific months stand out as significant contributors to the relatively weak returns over the period: July and November of 2007, and January of 2008. In July, investors around the globe sold equity positions in reaction to problems in the credit markets. Continued deterioration in the U.S. housing market and weakness in the sub-prime lending business led to significant financing problems among major investment banks. Over the past several years, many of the loans made to U.S. homeowners were packaged into securitized, bond-like products and placed in fixed income portfolios around the globe. As some borrowers across the U.S. housing markets began to default on their loans, the quality of the securities created by packaging them began to deteriorate. For example, Bear Stearns, a venerated U.S. investment bank, ran into trouble with two of their hedge funds during the summer of 2007, as the values of the underlying assets became increasingly difficult to determine. As these funds were highly leveraged, declines in asset values led to significant losses for the funds. These funds – and others like them – needed to sell their more liquid and highly valued assets to raise cash, causing some unusually strong global volatility in the middle of August 2007. While in its initial stages these effects were felt most strongly in the U.S. fixed income markets, equity investors were concerned about the financial status of the U.S. consumer, and thus the continued growth of the U.S. economy.

By November 2007, it became increasingly clear that the U.S. economy was slowing down. Banks, mortgage firms and homebuilders began to write down assets on their balance sheets in response to the declines in asset values in securities tied to the U.S. mortgage markets. These firms also reported lower earnings and reduced their expectations of future earnings in their reports and updates to investors. Economists around the world spoke of a recession – or at best flat economic growth – in the U.S. and possibly around the world. By January 2008, investors saw evidence of the slowdown in higher unemployment figures and lower manufacturing production. The final figure for U.S. GDP growth in the fourth quarter of 2007 was an annual rate of 0.6% - growth, but just barely. Investors continued to sell stocks across the globe, and equities in general continued their decline.

Also in January, the Fed and some of their global counterparts took some unusual steps designed to restore liquidity to the credit markets. These central banks created pools of credit facilities and lowered the interest rates they charged to borrowers. The Fed again lowered their main interest rate, the fed funds rate, numerous times in the early part of 2008, thus reducing borrowing costs across the entire economy. While other central banks around the world were not quite as accommodating, they too injected liquidity into their markets. And in one of the most unusual moves in recent financial history, the Fed also engineered a

4 Laudus Mondrian Funds

The Investment Environment continued

purchase of Bear Stearns by JP Morgan. The Fed believed that Bear Stearns’ potential bankruptcy – an event no one thought likely just days before – would very negatively affect both the equity and credit markets, partially due to the firm’s size and presence as a prime broker. But all of these moves, while helpful in calming the markets, also lowered the value of the U.S. dollar versus other currencies, leading to higher commodity and energy prices and increasing fears of inflation.

The U.S. dollar’s decline and the gains in some commodity markets did generate some positive news for U.S. investors with assets in non-U.S. stocks, however. The MSCI EAFE Index, while negative for the period at -2.27%, lost less than its U.S. counterpart, the Russell 1000 Index, which was down 5.40%. The dollar’s decline explains much of the difference, but also important was that financial firms in the U.S. index were down significantly more than their foreign counterparts, as a result of their greater direct exposure to problems stemming from the U.S. housing markets. Also important was the higher return to foreign firms in the Materials Sector. Generally, commodity-oriented firms were of greater importance in non-U.S. economies, and their increased weight in the non-U.S. indexes, plus their overall higher returns, helped push these stocks to higher returns versus U.S. equities. This trend was especially true for the emerging markets area, where the Materials and Energy Sectors combined to contribute nearly 11% of the total 21.6% return to the MSCI Emerging Markets Index over 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 Emerging Markets Fund

Laudus Mondrian Emerging Markets Fund Investor Shares declined 6.98% since inception through the end of the period, significantly outperforming the benchmark MSCI Emerging Markets Index (Net), which declined 15.27%. In general, the fund maintained an underweight exposure to China and India, where valuations were unappealing. Also, the fund maintained an overweight exposure to select Asian markets, such as Taiwan and Thailand. From an industry group standpoint, the fund was overweight to the Telecom Sector, where strong free cash flows supported high dividend yields.

Emerging markets experienced a high degree of volatility during the fourth quarter of 2007, and marked weakness in the first quarter of 2008. During this period of market turbulence, the portfolio maintained its defensive characteristics, which primarily accounted for outperformance relative to the benchmark. Good positioning in China, Taiwan and India, as well as stock selection in Brazil and Russia, were the key factors contributing to performance. In addition, the fund’s strong value stock orientation helped returns during a period in which global growth slowed.

In terms of risk, the commodity boom in recent years has reduced macroeconomic risk, as countries such as Brazil and Russia have been able to pay down debt and build up healthy foreign currency reserves. Furthermore, progressive economic reforms, a greater focus on infrastructure development and growing domestic demand within emerging market countries has resulted in more balanced economies. However, political risk continued to be greater for emerging markets than for developed markets. Changes in government can lead to unpredictable and unstable economic outcomes.

As of 3/31/08:

Statistics


Number of Holdings	43

Weighted Average

Market Cap


($ x 1,000,000)	36,887


Price/Earnings Ratio (P/E)	13.45


Price/Book Ratio (P/B)	1.92


Portfolio Turnover Rate¹	49%

Sector Weightings % of Investments


Telecommunication Services	22.0%


Financials	18.3%


Energy	17.4%


Information Technology	13.9%


Materials	13.6%


Industrials	7.7%


Consumer Staples	2.5%


Utilities	2.5%


Consumer Discretionary	2.1%


Total	100.0

Top Holdings % of Net Assets²

Companhia Vale do Rio Doce


ADR (Vale)	3.5%

Taiwan Semiconductor Manufacturing


Co., Ltd. ADR	3.4%


LUKOIL ADR	3.3%


Chunghwa Telecom Co., Ltd. ADR	3.2%


China Mobile Ltd.	3.1%


Sasol	3.0%


Cosco Pacific Ltd.	3.0%


Itausa-Investimentos Itau S.A.	2.9%


Tenaris S.A. ADR	2.9%


Redecard S.A.	2.9%


Total	31.2%

Manager views and portfolio holdings may have changed since the report date.


¹	Not annualized.

²	This list is not a recommendation of any security by the investment adviser. Holdings subject to change.

6 Laudus Mondrian Funds

Laudus Mondrian Emerging Markets Fund

Performance Summary as of 3/31/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Average Annual Total Returns¹


Fund Class and Inception Date	Since Inception


Investor Shares (11/2/07)		-6.98%
Select Shares (11/2/07)		-6.75%
Institutional Shares (11/2/07)		-6.94%
Benchmark: MSCI Emerging Markets Index (Net)		-15.27%

Fund Expense Ratios^2,3: Investor Shares: Net 1.80%; Gross 1.93% / Select Shares: Net 1.52%; Gross 1.68% /

Institutional: Net 1.45%; Gross 1.53

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. Redemption fees charged on shares sold or exchanged 30 days or less after purchasing them may effect share level returns.


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	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.
³	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 7

Laudus Mondrian International Fixed Income Fund

Laudus Mondrian International Fixed Income Fund Investor Shares returned 13.27% since inception, while the benchmark Citigroup non-U.S. Dollar World Government Bond Index returned 12.57%. Over the period, the fund outperformed mainly due to an overweight position to Japan. The fund was underweight the U.K., Canada, and Europe, with exposure to the Eurozone on a partial currency hedged basis. An overweight to the well-performing Mexican local bond market helped relative returns. Overall, the fund was defensively shorter than the benchmark index duration.

The relative weakness of the dollar versus many major foreign currency and positive international bond market returns drove the fund’s strong absolute return. Although the dollar has been declining for several years, it experienced significant declines during the period. As a result, exposure to strong foreign currencies, particularly the Japanese Yen, contributed to performance, as did an underweight to the Canadian Dollar and British Pound.

As of 3/31/08:

Country Weightings % of Investments


Japan	39.6%


Germany	16.1%


Netherlands	11.8%


France	8.6%


Belgium	8.6%


Mexico	3.9%


Italy	3.3%


Austria	3.3%


Other	4.8%


Total	100.0%

Statistics


Number of Holdings	37


Average Maturity	5.94


Modified Duration	5.00


Average Quality	AAA


Portfolio Turnover Rate¹	1%

Sector Weightings % of Investments


Government Bonds	85.8%


Government Agency Obligations	9.4%


Corporate Bonds	1.3%


Other	3.5%


Total	100.0%

Top Holdings % of Net Assets²

Japan Government Ten Year


Bond, 1.40%, 9/20/11	5.0%

Netherlands Government Bond,


3.75%, 7/15/14	4.9%

Bundesrepublik Deutschland,


3.50%, 1/4/16	4.7%

Belgium Government Bond, 5.50%,


9/28/17	4.7%

Japan Government Ten Year


Bond, 1.10%, 9/20/12	4.6%

Japan Government Ten Year


Bond, 0.50%, 6/20/13	4.5%

Japan Government Ten Year


Bond, 0.90%, 6/20/13	4.5%

Japan Government Five Year


Bond, 0.50%, 6/20/10	4.4%

Japan Government Ten Year


Bond, 1.20%, 9/20/12	4.1%

Japan Government Ten Year


Bond, 1.30%, 12/20/14	3.9%


Total	45.3%

Manager views and portfolio holdings may have changed since the report date.

8 Laudus Mondrian Funds

Laudus Mondrian International Fixed Income Fund

Performance Summary as of 3/31/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Average Annual Total Returns¹


Fund Class and Inception Date	Since Inception


Investor Shares (11/2/07)		13.27%
Select Shares (11/2/07)		13.42%
Institutional Shares (11/2/07)		13.42%
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index		12.57%

Fund Expense Ratios^2,3: Investor Shares: Net 1.10% ; Gross 1.23%/ Select Shares: Net 0.82%; Gross 0.98% /

Institutional Shares: Net 0.75%; Gross 0.83%


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	Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Please see the prospectus for more information.
³	Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 9

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio		Account Value		(Net of Expenses)		During Period¹
	(Annualized)		at 11/2/07		at 3/31/08		11/2/07 - 3/31/08



Laudus Mondrian Emerging Markets Fund
Investor Shares
Actual Return		1.82%	$	1,000	$	930.20	$	7.10
Hypothetical 5% Return		1.82%	$	1,000	$	1,012.86	$	7.41
Select Shares
Actual Return		1.54%	$	1,000	$	932.50	$	6.02
Hypothetical 5% Return		1.54%	$	1,000	$	1,013.99	$	6.27
Institutional Shares
Actual Return		1.47%	$	1,000	$	930.60	$	5.74
Hypothetical 5% Return		1.47%	$	1,000	$	1,014.27	$	5.99


Laudus Mondrian International Fixed Income Fund
Investor Shares
Actual Return		1.10%	$	1,000	$	1,132.70	$	4.74
Hypothetical 5% Return		1.10%	$	1,000	$	1,015.77	$	4.48
Select Shares
Actual Return		0.82%	$	1,000	$	1,134.20	$	3.54
Hypothetical 5% Return		0.82%	$	1,000	$	1,016.90	$	3.34
Institutional Shares
Actual Return		0.75%	$	1,000	$	1,134.20	$	3.24
Hypothetical 5% Return		0.75%	$	1,000	$	1,017.19	$	3.06


¹	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 148 days of the period, and divided by 366 days of the fiscal year.

10 Laudus Mondrian Funds

Laudus Mondrian Emerging Markets Fund

Financial Statements

Financial Highlights


	11/02/07¹-
Investor Shares	3/31/08


Per-Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.02
Net realized and unrealized gains (losses)		(0.72	)

Total from investment operations		(0.70	)
Less distributions:
Dividends from net investment income		(0.01	)

Net asset value at end of period		9.29

Total return (%)		(6.98	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.82	^3,4
Gross operating expenses		2.79	³
Net investment income (loss)		0.89	³
Portfolio turnover rate		49	²
Net assets, end of period ($ x 1,000)		1,937


	11/02/07¹-
Select Shares	3/31/08


Per-Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.02
Net realized and unrealized gains (losses)		(0.70	)

Total from investment operations		(0.68	)
Less distributions:
Dividends from net investment income		(0.01	)

Net asset value at end of period		9.31

Total return (%)		(6.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.54	^3,5
Gross operating expenses		2.74	³
Net investment income (loss)		0.69	³
Portfolio turnover rate		49	²
Net assets, end of period ($ x 1,000)		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.

See financial notes 11

Laudus Mondrian Emerging Markets Fund

Financial Highlights continued


	11/02/07¹-
Institutional Shares	3/31/08


Per-Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.02
Net realized and unrealized gains (losses)		(0.71	)

Total from investment operations		(0.69	)
Less distributions:
Dividends from net investment income		(0.02	)

Net asset value at end of period		9.29

Total return (%)		(6.94	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.47	^3,4
Gross operating expenses		2.62	³
Net investment income (loss)		0.59	³
Portfolio turnover rate		49	²
Net assets, end of period ($ x 1,000)		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.

12 See financial notes

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings as of March 31, 2008

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.laudusfunds.com.


				Cost		Value
Holdings by Category				($)		($)


	79	.4%	Common Stock		17,662,919		17,564,600
	10	.5%	Preferred Stock		2,348,766		2,309,751
	3	.4%	Short-Term Investment		755,000		755,000

	93	.3%	Total Investments		20,766,685		20,629,351
	6	.7%	Other Assets and Liabilities				1,480,816

	100	.0%	Net Assets				22,110,167


	Number		Value
Security	of Shares		($)





Common Stock 79.4% of net assets


Bermuda 3.0%


Transportation 3.0%
Cosco Pacific Ltd.		338,000		665,105


Brazil 7.6%


Energy 2.5%
Petroleo Brasileiro S.A. ADR		6,700		567,423


Software & Services 2.9%
Redecard S.A.		38,200		635,469


Utilities 2.2%
CPFL Energia S.A. ADR		8,000		487,840

				1,690,732


Canada 0.1%


Energy 0.1%
Uranium One, Inc. *		7,200		23,709


China 2.1%


Transportation 2.1%
China Shipping Development Co. Ltd., Class H		144,000		459,635


Columbia 2.1%


Banks 2.1%
Bancolombia S.A. ADR		13,300		471,618


Czech Republic 1.9%


Banks 1.9%
Komercni Banka A/S		1,775		423,878


Egypt 3.8%


Telecommunication Services 3.8%
Orascom Telecom Holding S.A.E. -Reg’d GDR		5,850		397,528
Telecom Egypt		121,289		448,436

				845,964


Hong Kong 3.1%


Telecommunication Services 3.1%
China Mobile Ltd.		45,000		676,112


India 2.0%


Telecommunication Services 2.0%
Bharti Airtel Ltd. *		21,515		440,042


Luxembourg 5.0%


Energy 2.9%
Tenaris S.A. ADR		12,769		636,535


Materials 2.1%
Evraz Group S.A. -Reg’d GDR		5,350		461,705

				1,098,240


Malaysia 3.5%


Banks 1.6%
Public Bank Berhad		103,900		355,337


Transportation 1.9%
MISC Berhad		142,800		411,390

				766,727


Mexico 6.6%


Food, Beverage & Tobacco 2.3%
Grupo Modelo, S.A. de C.V., Series C		114,900		503,097


Materials 2.0%
Cemex SAB de C.V. ADR *		16,900		441,428


Telecommunication Services 2.3%
America Movil SAB de C.V., Series L ADR		8,200		522,258

				1,466,783


Philippines 2.2%


Telecommunication Services 2.2%
Philippine Long Distance Telephone Co. ADR		7,400		491,804

See financial notes 13

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)



Republic of Korea 3.6%


Banks 3.6%
Hana Financial Group, Inc.		9,570		392,246
Kookmin Bank		4,818		270,422
Kookmin Bank ADR		2,400		134,520

				797,188


Russia 7.1%


Energy 5.1%
Gazprom - Reg’d ADR		7,600		387,600
LUKOIL ADR		8,600		737,880

				1,125,480


Telecommunication Services 2.0%
Mobile TeleSystems ADR		5,800		439,930

				1,565,410


South Africa 6.1%


Energy 3.0%
Sasol		13,931		670,927


Materials 1.9%
Impala Platinum Holdings Ltd.		10,917		422,078


Telecommunication Services 1.2%
Telkom South Africa Ltd.		16,093		260,595

				1,353,600


Taiwan 14.9%


Banks 4.2%
Chinatrust Financial Holding Co., Ltd. *		378,000		367,731
Mega Financial Holding Co., Ltd.		726,000		572,784

				940,515


Semiconductors & Semiconductor Equipment 5.6%
MediaTek, Inc.		32,000		425,055
Taiwan Semiconductor Manufacturing Co., Ltd.		32,000		66,223
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		72,200		741,494

				1,232,772


Technology Hardware & Equipment 1.9%
Asustek Computer, Inc.		143,000		421,236


Telecommunication Services 3.2%
Chunghwa Telecom Co., Ltd. ADR		27,063		704,179

				3,298,702


Thailand 4.7%


Energy 1.9%
PTT Public Co., Ltd.		42,400		425,549


Materials 2.8%
The Siam Cement Public Co., Ltd. NVDR		88,500		603,802

				1,029,351

Total Common Stock (Cost $17,662,919)				17,564,600




Preferred Stock 10.5% of net assets


Brazil 6.5%


Banks 3.0%
Itausa - Investimentos Itau S.A.		109,900		645,108


Materials 3.5%
Companhia Vale do Rio Doce ADR (Vale)		26,600		775,390

				1,420,498


Republic of Korea 4.0%


Automobiles & Components 1.9%
Hyundai Motor Co.		12,530		413,908


Semiconductors & Semiconductor Equipment 2.1%
Samsung Electronics Co., Ltd.		1,049		475,345

				889,253

Total Preferred Stock (Cost $2,348,766)				2,309,751



Security	Face Amount		Value
Rate, Maturity Date	($)		($)


Short-Term Investment 3.4% of net assets


Repurchase Agreement 3.4%
Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $755,042 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $774,035.)		755,000		755,000

Total Short-Term Investment (Cost $755,000)				755,000


End of Investments.

14 See financial notes

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings continued



At 03/31/08, the tax basis cost of the fund’s investments was $21,207,264 and the unrealized appreciation and depreciation were $779,904 and ($1,357,817), respectively, with a net unrealized depreciation of ($577,913).

At 03/31/08, the prices of certain foreign securities held by the fund aggregating $9,639,815 were adjusted from their closing market prices following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

NVDR — Non-Voting Depositary Receipt

See financial notes 15

Laudus Mondrian Emerging Markets Fund

Statement of

Assets and Liabilities

As of March 31, 2008.




Assets
Investments, at value (cost $20,766,685)		$20,629,351
Cash		371
Foreign currency (cost $85,648)		84,675
Receivables:
Investments sold		278,758
Fund shares sold		2,566,631
Interest		46
Dividends	+	73,892


Total assets		23,633,724


Liabilities
Payables:
Investments bought		1,485,470
Investment adviser		1,853
Transfer agent		3,710
Fund shares redeemed		594
Distribution and shareholder services fees		343
Accrued expenses	+	31,587


Total liabilities		1,523,557


Net Assets
Total assets		23,633,724
Total liabilities	−	1,523,557


Net assets		$22,110,167
Net Assets by Source
Capital received from investors		23,023,623
Distribution in excess of net investment income		(2,902	)
Net realized capital losses		(770,888	)
Net unrealized capital losses		(139,666	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$1,936,794		208,517			$9.29
Select Shares	$759,572		81,613			$9.31
Institutional Shares	$19,413,801		2,088,825			$9.29

16 See financial notes

Laudus Mondrian Emerging Markets Fund

Statement of

Operations

For November 2, 2007* through March 31, 2008.




Investment Income
Dividends (net of foreign withholding taxes of $16,471)		$132,810
Interest	+	14,496


Total Investment Income		147,306


Net Realized Gains and Losses
Net realized losses on investments		(770,888	)
Net realized losses on foreign currency transactions	+	(15,594	)


Net realized losses		(786,482	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(137,334	)
Net unrealized losses on foreign currency transactions	+	(2,332	)


Net unrealized losses		(139,666	)


Expenses
Investment adviser fees		84,187
Transfer agent fees		22,465
Professional fees		22,367
Custodian fees		20,361
Registration fees		14,934
Shareholder reports		9,058
Trustees’ fees		3,934
Accounting and administration fees		2,888
Interest expense		1,803
Distribution and shareholder services fees (Investor Shares)		848
Sub-Accounting fees
Investor Shares		354
Select Shares		345
Other expenses	+	1,383


Total expenses		184,927
Expense reduction by adviser	−	80,048
Custody credits	−	278


Net expenses		104,601


Increase (Decrease) in Net Assets from Operations
Total investment income		147,306
Net expenses	−	104,601


Net investment income		42,705
Net realized losses		(786,482	)
Net unrealized losses	+	(139,666	)


Decrease in net assets from operations		($883,443	)


*	Commencement of operations.

See financial notes 17

Laudus Mondrian Emerging Markets Fund

Statements of

Changes in Net Assets

For the current report period only. Because the fund commenced operations on November 2, 2007, it has no prior report period.




Operations


		*11/02/07-03/31/08**
Net investment income			$42,705
Net realized losses			(786,482	)
Net unrealized losses	+		(139,666	)


Decrease in net assets from operations			(883,443	)


Distributions to Shareholders
Distributions from net investment income
Investor Shares			595
Select Shares			1,121
Institutional Shares	+		28,590


Total distributions from net investment income			$30,306




Transactions in Fund Shares


		*11/2/07-03/31/08**
		SHARES			VALUE


Shares Sold
Investor Shares			221,053			$2,073,502
Select Shares			97,917			934,439
Institutional Shares	+		2,608,232			25,103,782


Total shares sold			2,927,202			$28,111,723


Shares Reinvested
Investor Shares			62			$571
Select Shares			122			1,121
Institutional Shares	+		3,100			28,584


Total shares reinvested			3,284			$30,276


Shares Redeemed
Investor Shares			(12,598	)		($113,103	)
Select Shares			(16,426	)		(152,547	)
Institutional Shares	+		(522,507	)		(4,852,433	)


Total shares redeemed			(551,531	)		($5,118,083	)

Net transactions in fund shares			2,378,955			$23,023,916


Shares Outstanding and Net Assets
		*11/2/07-03/31/08**
		SHARES			NET ASSETS
Beginning of period			—			$-
Total increase	+		2,378,955			22,110,167


End of period			2,378,955			$22,110,167


Distribution in excess of net investment income						($2,902	)


*	Commencement of operations.

18 See financial notes

Laudus Mondrian International Fixed Income Fund

Financial Statements

Financial Highlights


	11/2/07¹-
Investor Shares	3/31/08


Per-Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.05
Net realized and unrealized gains (losses)		1.27

Total from investment operations		1.32
Less distributions:
Distributions from net investment income		(0.04	)

Net asset value at end of period		11.28

Total return (%)		13.27	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.10	³
Gross operating expenses		1.57	³
Net investment income (loss)		1.61	³
Portfolio turnover rate		1	²
Net assets, end of period ($ x 1,000,000)		16


		11/2/07¹-
Select Shares		3/31/08


Per-Share Data ($)

Net asset value at beginning of period			10.00

Income (loss) from investment operations:
Net investment income (loss)			0.06
Net realized and unrealized gains (losses)			1.28

Total from investment operations			1.34
Less distributions:
Distributions from net investment income			(0.05	)

Net asset value at end of period			11.29

Total return (%)			13.42	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses			0.82	³
Gross operating expenses			1.31	³
Net investment income (loss)			1.89	³
Portfolio turnover rate			1	²
Net assets, end of period ($ x 1,000,000)	��		20

¹ Commencement of operations.

² Not annualized.

³ Annualized.

See financial notes 19

Laudus Mondrian International Fixed Income Fund

Financial Highlights continued


	11/2/07¹-
Institutional Shares	3/31/08


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)		1.27

Total from investment operations		1.34
Less distributions:
Distributions from net investment income		(0.05	)

Net asset value at end of period		11.29

Total return (%)		13.42	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.75	³
Gross operating expenses		1.23	³
Net investment income (loss)		1.98	³
Portfolio turnover rate		1	²
Net assets, end of period ($ x 1,000,000)		52

¹ Commencement of operations.

² Not annualized.

³ Annualized.

20 See financial notes

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings as of March 31, 2008

This section shows all the securities in the fund’s portfolio and their value as of the report date.

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.


				Cost		Value
Holdings by Category				($)		($)


	84	.8%	Government Bonds		70,251,607		74,978,631
	9	.3%	Government Agency Obligations		7,088,416		8,189,704
	1	.2%	Corporate Bond		950,829		1,104,608
	3	.5%	Short-Term Investment		3,106,000		3,106,000

	98	.8%	Total Investments		81,396,852		87,378,943
	1	.2%	Other Assets and Liabilities				1,060,810

	100	.0%	Net Assets				88,439,753


Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)





Government Bonds 84.8% of net assets


Austria 3.2%
Austria Government Bond
3.50%, 07/15/15		1,860,000		2,861,760


Belgium 8.5%
Belgium Government Bond
3.75%, 09/28/15		2,170,000		3,367,422
5.50%, 09/28/17		2,380,000		4,130,527

				7,497,949


France 8.5%
France Government Bond OAT
4.00%, 10/25/09		530,000		840,489
4.00%, 04/25/13		860,000		1,370,185
4.00%, 04/25/14		1,180,000		1,879,498
5.00%, 10/25/16		1,600,000		2,702,217
5.75%, 10/25/32		400,000		730,848

				7,523,237


Germany 14.5%
Bundesrepublik Deutschland
5.00%, 07/04/11		290,000		477,385
4.50%, 01/04/13		1,160,000		1,903,084
3.75%, 01/04/15		1,400,000		2,210,087
3.25%, 07/04/15		1,666,000		2,537,442
3.50%, 01/04/16		2,700,000		4,164,773
6.25%, 01/04/24		700,000		1,336,632
4.75%, 07/04/34		120,000		194,834

				12,824,237


Italy 3.3%
Italy Government International Bond
0.65%, 03/20/09		120,000,000		1,202,183
4.50%, 06/08/15		140,000,000		1,706,768

				2,908,951


Japan 33.5%
Japan Government Five Year Bond
0.50%, 06/20/10		390,000,000		3,908,721
Japan Government Ten Year Bond
1.40%, 09/20/11		430,000,000		4,420,334
1.10%, 09/20/12		400,000,000		4,079,647
1.20%, 09/20/12		350,000,000		3,585,081
0.50%, 06/20/13		400,000,000		3,962,315
0.90%, 06/20/13		390,000,000		3,943,112
1.30%, 12/20/14		331,000,000		3,413,959
1.50%, 03/20/15		225,000,000		2,351,918

				29,665,087


Mexico 3.9%
Mexican Bonos
9.00%, 12/20/12		16,600,000		1,661,910
8.00%, 12/07/23		17,800,000		1,744,585

				3,406,495


Netherlands 9.4%
Netherlands Government Bond
5.50%, 07/15/10		440,000		722,735
4.25%, 07/15/13		2,000,000		3,234,414
3.75%, 07/15/14		2,750,000		4,333,766

				8,290,915

Total Government Bonds (Cost $70,251,607)				74,978,631




Government Agency Obligations 9.3% of net assets


Germany 1.4%
Kreditanstalt fuer Wiederraufbau
2.05%, 09/21/09		120,000,000		1,225,772


Japan 5.6%
Development Bank of Japan
1.40%, 06/20/12		170,000,000		1,747,449
Japan Finance Corp. for Municipal Enterprises
1.55%, 02/21/12		150,000,000		1,553,976
1.35%, 11/26/13		160,000,000		1,656,540

				4,957,965

See financial notes 21

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings continued


Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)



Netherlands 2.3%
Bank Nederlandse Gemeenten
0.80%, 09/22/08		200,000,000		2,005,967

Total Government Agency Obligations (Cost $7,088,416)				8,189,704




Corporate Bond 1.2% of net assets


Ireland 1.2%
Depfa ACS Bank
1.65%, 12/20/16		110,000,000		1,104,608

Total Corporate Bonds (Cost $950,829)				1,104,608




Short-Term Investment 3.5% of net assets


Repurchase Agreement 3.5%
Fixed Income Clearing Corp. dated 03/31/08, due 04/01/08 at 2.00%, with a maturity value of $3,106,173 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $3,171,532.)		3,106,000		3,106,000

Total Short-Term Investment (Cost $3,106,000)				3,106,000


End of Investments.

At 03/31/08 the tax basis cost of the fund’s investments was $81,396,852, and the unrealized appreciation and depreciation were $5,982,091 and ($0), respectively, with a net appreciation of $5,982,091.

In addition to the above, the fund held the following at 03/31/08.

Currency

Amount of

Currency

Amount of

Expiration

to be

Currency to be

to be

Currency to be

Unrealized

Date

Received

Delivered

Gains / Losses

Forward Foreign Currency Contract

04/30/2008

USD

5,959,181

EUR

3,778,500

(70,081

)

Net unrealized loss on Forward Foreign Currency Contracts

(70,081

)

22 See financial notes

Laudus Mondrian International Fixed Income Fund

Statement of

Assets and Liabilities

As of March 31, 2008.




Assets
Investments, at value (cost $81,396,852)		$87,378,943
Cash		72
Foreign currency, at value (cost $264,276)		265,518
Receivables:
Fund shares sold		4,737,154
Interest		1,071,848
Due from manager	+	8,863


Total assets		93,462,398


Liabilities
Payables:
Investments bought		4,899,551
Transfer agent fees		3,743
Distributions to shareholders		13,429
Fund shares redeemed		3,497
Distribution and shareholder services fees		2,286
Unrealized loss on forward foreign currency contracts		70,081
Accrued expenses	+	30,058


Total liabilities		5,022,645


Net Assets
Total assets		93,462,398
Total liabilities	−	5,022,645


Net assets		$88,439,753
Net Assets by Source
Capital received from investors		82,455,128
Net investment income not yet distributed		36,096
Net unrealized capital gains		5,948,529

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$16,147,993		1,431,530			$11.28
Select Shares	$20,078,185		1,778,743			$11.29
Institutional Shares	$52,213,575		4,625,743			$11.29

See financial notes 23

Laudus Mondrian International Fixed Income Fund

Statement of

Operations

For November 2, 2007* through March 31, 2008.




Investment Income
Interest		$482,248


Net Realized Gains and Losses
Net realized gains on investments		23,697
Net realized losses on foreign currency transactions	+	(101,678	)


Net realized losses		(77,981	)


Net Unrealized Gains and Losses
Net unrealized gains on investments		5,982,091
Net unrealized losses on foreign currency translations	+	(33,562	)


Net unrealized gains		5,948,529


Expenses
Investment adviser fees		106,185
Transfer agent fees		22,803
Registration fees		24,516
Professional fees		22,840
Shareholder reports		21,644
Custodian fees		8,526
Sub-accounting fees
Investor Shares		2,859
Select Shares		4,653
Distribution and shareholder services fees (Investor Shares)		6,100
Trustees’ fees		4,173
Accounting and administrator fees		2,630
Other expenses	+	1,416


Total expenses		228,345
Expense reduction by adviser	−	84,455
Custody credits	−	5


Net expenses		143,885


Increase (Decrease) in Net Assets from Operations
Total investment income		482,248
Net expenses	−	143,885


Net investment income		338,363
Net realized losses		(77,981	)
Net unrealized gains	+	5,948,529


Increase in net assets from operations		$6,208,911

24 See financial notes

Laudus Mondrian International Fixed Income Fund

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on November 2, 2007, it has no prior report period.




Operations


		*11/2/07-3/31/08**
Net investment income			$338,363
Net realized losses			(77,981	)
Net unrealized gains	+		5,948,529


Increase in net assets from operations			6,208,911


Distributions to Shareholders
Distributions from net investment income
Investor Shares			33,714
Select Shares			50,639
Institutional Shares	+		142,251


Total distributions from net investment income			$226,604




Transactions in Fund Shares


		*11/2/07-3/31/08**
		SHARES			VALUE


Shares Sold
Investor Shares			1,546,672			$16,580,538
Select Shares			1,854,202			19,621,852
Institutional Shares	+		4,705,565			49,150,016


Total shares sold			8,106,439			$85,352,406


Shares Reinvested
Investor Shares			2,878			$31,299
Select Shares			3,845			41,629
Institutional Shares	+		12,658			136,064


Total shares reinvested			19,381			$208,992


Shares Redeemed
Investor Shares			(118,020	)		($1,271,229	)
Select Shares	+		(79,304	)		(837,623	)
Institutional Shares	+		(92,480	)		(995,100	)


Total shares redeemed			(289,804	)		($3,103,952	)

Net transactions in fund shares			7,836,016			$82,457,446


Shares Outstanding and Net Assets
		*11/2/07-3/31/08**
		SHARES			NET ASSETS
Beginning of period			—			$-
Total increase	+		7,836,016			88,439,753


End of period			7,836,016			$88,439,753


Net investment income not yet distributed						$36,096


*	Commencement of operations.

See financial notes 25

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 (the “1940 Act”), as amended. The list below shows all the funds in the Trust including the funds discussed in this report, which are highlighted:



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Growth Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg U.S. Small Capitalization Fund Laudus Rosenberg International Equity Fund Laudus Rosenberg International Discovery Fund		Laudus Rosenberg International Small Capitalization Fund Laudus Rosenberg Long/Short Equity Fund (formerly the Laudus Rosenberg Value Long/Short Equity Fund) Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund

Both the Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund (each a “Fund,” and collectively, the “Funds”) commenced operations on November 2, 2007 and each Fund offers three share classes: Investor Shares, Select Shares and Institutional Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums. Shares are bought and sold at net asset value, or NAV, which is the price for all outstanding shares. Each Fund is authorized to issue an unlimited number of Institutional Shares, 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, bears different distribution and sub-transfer agent expenses, and has separate voting rights on matters pertaining solely to that class of shares.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the Funds use in the preparation of 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 current exchange rate. The Funds do not isolate the portion of the fluctuation on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

	•	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 prices adjusted for changes in value that may occur between the close of foreign exchange and the time at which Fund 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.

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


	•	Futures and forwards currency contracts: 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). 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.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost (which approximates market value).

	•	Mutual 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, the Funds agree 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 Funds 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 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.

Futures are traded publicly on exchanges, and their market value changes daily. A Fund records the change daily in market value of futures, and also the change in the amount of margin deposit required (“due to/from broker”).

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,

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date.

(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 net assets.

(f) Distributions to Shareholders:

The Funds make distributions from net investment income and net realized capital gains once a year with the exception of Laudus Mondrian International Fixed Income Fund which pays quarterly dividends.

(g) Custody Credit:

Each Fund has an arrangement with its 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 Fund’s 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.

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 also keeps certain assets in segregated accounts, as may be required by securities law.

(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) New Accounting Standards:

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

position taken or expected to be taken in a tax return when there is uncertainty about whether that tax position will ultimately be sustained. As of March 31, 2008, management has reviewed the tax positions for the current tax year (November 2, 2007 through March 31, 2008), and determined that no provision for income tax is required in the Funds’ financial statements.

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS No. 157). 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 is effective for fiscal years beginning after November 15, 2007. As of March 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

3. 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.

For its advisory services to each Fund, the Investment Adviser is entitled to receive an annual fee payable monthly base on the Funds’ average daily net assets described as follows.


		Agreement Rate*

Laudus Mondrian Emerging Markets Fund		1st $1 billion - 1.20%
Laudus Mondrian International Fixed Income Fund		Over $1 billion - 1.15% 0.60%

CSIM (not the Funds) pays a portion of the management fees it receives to Mondrian in return for its services.


	Laudus Mondrian		Laudus Mondrian
	Emerging Markets Fund		International Fixed Income Fund

Investor Shares		1.80%		1.10%
Select Shares		1.52%		0.82%
Institutional Shares		1.45%		0.75%

Laudus Mondrian Funds

Financial Notes (continued)

3. Affiliates and Affiliated Transactions (continued):


	Laudus Mondrian		Laudus Mondrian
Expires	Emerging Markets Fund		International Fixed Income Fund

March 31, 2010		$80,048		$84,455


4.	Other Shareholders Services

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. serves as the Distributor. 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.


5.	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.

A Retirement Plan was instituted for certain Independent Trustees of the Trust. In September 2006 the Trustees voted to close the Retirement Plan to new participants as of June 26, 2006 and to discontinue making contributions to the Retirement Plan after the plan year ending March 31, 2007. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. Under the terms of the Retirement Plan, upon retirement or other termination from service from the Trust (other than termination for cause), a retiring Independent Trustee who has served as Independent Trustee for at least five years shall be paid a lump sum cash payment (the “Retirement Payment”). The Retirement Payment shall be equal to $10,000 for each year that the Trustee has served as an Independent Trustee of the Trust, including years of service prior to the adoption of the Retirement Plan and including a final one-half year credit for service during the plan year ending March 31, 2007. Beginning April 1, 2005, each Independent Trustee was permitted to make a one-time election to have the $10,000 attributable to service for the coming year and previously accrued benefits adjusted up or down at the end of each subsequent year based on the unweighted average performance of Institutional Shares of each Fund of the Trust. After the closure of the Retirement Plan, the previously accrued benefits that an Independent Trustee had elected to have adjusted by the performance of the Funds would continue to be adjusted for performance as provided under the Retirement Plan. As a result, the amount of the Retirement Payment payable to any Independent Trustee may increase or decrease based upon performance of the Funds. The portion of the total Retirement Payment owed to an Independent Trustee upon his or her retirement that is payable by any Fund will be determined based on the relative net assets of the Funds of the Trust. The Trust did not pay any pension or retirement benefits for its Trustees.


6.	Borrowing from Banks:

The Laudus Mondrian Emerging Markets Fund and Laudus Mondrian International Fixed Income Fund has access 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 period ended March 31, 2008.

Laudus Mondrian Funds

Financial Notes (continued)


7.	Purchases and Sales of Investment Securities:

For the period ended March 31, 2008, purchases and sales of securities (excluding short-term obligations) were as follows:


	Purchases		Sales

Laudus Mondrian Emerging Markets Fund		$29,540,106		$8,757,526
Laudus Mondrian International Fixed Income Fund		$79,013,347		$716,132


8.	Redemption Fee:

The Funds charge a redemption fee of 2.00% on shares sold or exchanged 30 days or less after purchasing them. Such amounts are net of the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current report period were:


	Current Period
	(11/02/07-3/31/08)

Laudus Mondrian Emerging Markets Fund
Investor shares		$284
Select shares		946
Institutional shares		222
Laudus Mondrian International Fixed Income Fund
Investor shares		$314
Select shares		341
Institutional shares		182


9.	Federal Income Taxes:

As of March 31, 2008, the components of distributable earnings on a tax-basis were as follows:


	Laudus Mondrian			Laudus Mondrian
	Emerging Markets Fund			International Fixed Income Fund

Undistributed Ordinary Income		$—			$—
Undistributed Long-Term Capital Gains		—			—
Accumulated Capital and Other Losses		(333,211	)		36,096

Unrealized Appreciation/Depreciation on investments		(577,913	)		5,982,091
Other unrealized appreciation/(depreciation)		(2,332	)		(33,562	)

Net unrealized appreciation/(depreciation)		(580,245	)		5,948,529

Capital loss carry forwards may be used to offset future realized capital gains for federal income tax purposes. As of March 31, 2008, the Funds had no capital loss carry forwards.

For tax purposes, realized net losses occurring after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2008, the Funds had aggregate deferred realized net losses as follows:


	Laudus Mondrian		Laudus Mondrian
	Emerging Markets Fund		International Fixed Income Fund

Capital Losses Deferred		$330,309		$—
Currency Losses Deferred		2,902		41,426
Capital Losses Utilized		—		—

Laudus Mondrian Funds

Financial Notes (continued)

9. Federal Income Taxes (continued):

The tax-basis components of distributions paid during the current fiscal years were:


	Laudus Mondrian		Laudus Mondrian
	Emerging Markets Fund		International Fixed Income Fund

Ordinary Income		$30,306		$226,604
Long-Term Capital Gains		—		—

Total Distributions Paid		30,306		226,604

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; investments in passive foreign investment companies 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 each Fund for financial reporting purposes. Each Fund 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, 2008, the Funds made the following reclassifications:


	Laudus Mondrian			Laudus Mondrian
	Emerging Markets Fund			International Fixed Income Fund

Capital Shares		$(293	)		$(2,318	)
Undistributed Net Investment Income		(15,301	)		(75,663	)
Net Realized Capital Gains/Losses		15,594			77,981

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Fixed Income Fund

In our opinion, the accompanying statements of assets and liabilities, including 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 Emerging Markets Fund and Laudus Mondrian International Fixed Income Fund (the “Funds”) at March 31, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for the period November 2, 2007 (commencement of operations) through March 31, 2008, 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 audits 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, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
San Francisco, California
May 14, 2008

Other Federal Tax Information (unaudited)

The Laudus Mondrian Emerging Markets Fund may elect to pass on the benefits of the foreign tax credit $12,233, to its shareholders for the year ended March 31, 2008.

For the fiscal year ended March 31, 2008, 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 2009 via IRS form 1099 of the amounts for use in preparing their 2008 income tax return.


Laudus Mondrian Emerging Markets Fund			$30,306
Laudus Mondrian International Fixed Income Fund			—

Investment Advisory Agreement Approval

The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreements must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreements. In addition, the Securities and Exchange Commission takes the position that, as part of their fiduciary duties with respect to fund fees, fund boards are required to evaluate the material factors applicable to a decision to approve an investment advisory agreement.

Consistent with these responsibilities, the Board of Trustees (the “Board”) called and held a meeting on September 28, 2007, in part, for the purpose of considering whether to approve the investment advisory agreements between Laudus Trust (the “Trust”) and Charles Schwab Investment Management, Inc. (“CSIM”), and the sub-advisory agreements between CSIM and Mondrian Investment Partners Limited (“Mondrian”) (such investment advisory and sub-advisory agreement, collectively, the “Agreements”) with respect to Laudus Mondrian Emerging Markets Fund and Laudus Mondrian International Fixed Income Fund. In preparation for the meeting, the Board requested and reviewed a variety of materials provided by CSIM and Mondrian with respect to the services to be provided to the funds under the Agreements, including information about their affiliates, personnel and operations. In recognition of the fact that the funds had not yet commenced operations, the Board also considered information provided by CSIM in connection with the Board’s consideration of approval or renewal of the investment advisory agreements with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of the year, including information that relates to operations and performance of these other funds. The trustees also received a memorandum from fund counsel regarding the responsibilities of trustees for the approval of investment advisory contracts. In addition, the Independent Trustees received advice from independent counsel to the Independent Trustees, met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM and Mondrian, as appropriate.

The Board, including a majority of the Independent Trustees approved the Agreements with respect to the funds for a two year term. The Board’s approval of the Agreements was based on consideration and evaluation of a variety of specific factors discussed at the meeting, and at prior meetings, including:


1.	the nature, extent and quality of the services to be provided to the funds under the Agreements, including the resources of CSIM and its affiliates and Mondrian, dedicated to the funds;

2.	Mondrian’s investment performance in managing other funds and/or accounts having relevant investment objectives and strategies;

3.	the funds’ estimated expenses and how those expenses compared to those of certain other comparable mutual funds;

4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to other funds, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of Mondrian; and

5.	the extent to which economies of scale may be realized as the funds grow, and whether fee levels in the Agreements relating to the funds reflect those economies of scale for the benefit of fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the funds and the resources of CSIM and its affiliates will dedicate to the funds. In this regard, the trustees evaluated, among other things, CSIM’s personnel, experience, track record and compliance program. The trustees have also considered Schwab’s excellent reputation in connection with the OneSource mutual fund offering and its overall financial condition, and how this affects the success of such funds. The Board has also considered the nature, extent and quality of the sub-advisory services provided by Mondrian to such funds and the resources it dedicates to such funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM and Mondrian to the funds and the resources of CSIM and its affiliates dedicated to the funds supported approval of the Agreements with respect to the funds.

Fund Performance. With regard to fund performance, since the funds had not commenced operations and therefore did

not have any performance of their own, the Board considered performance of other funds and/or accounts having comparable investment objectives and strategies in determining whether to approve the Agreements. For example, the Board considered Mondrian’s performance in managing other similar funds and/or accounts. The trustees also considered both risk and shareholder risk expectations for the funds and the appropriateness of the benchmark that would be used to compare the performance of the funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of CSIM and Mondrian supported approval of the Agreements with respect to the funds.

Fund Expenses. With respect to the funds’ expenses, the trustees considered the rate of compensation with respect to the funds called for by the Agreements, and the funds’ net operating expense ratio in comparison to those of other comparable mutual funds. The trustees also considered information about average expense ratios of comparable mutual funds in the funds’ expected peer group. Finally, the trustees considered the effects of CSIM’s waiver of management fees to prevent total fund expenses from exceeding a specified cap. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the funds are reasonable and supported approval of the Agreements with respect to the funds.

Profitability. With regard to profitability, the trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly. In this connection, the trustees considered information that was previously provided by CSIM with respect to other funds it manages regarding profitability and how this information might reasonably be expected to be predictive of profitability to CSIM under the Agreements with respect to the funds. The trustees also considered any other benefits derived by CSIM from its relationship with the funds, such as whether, by virtue of its management of the funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. With respect to CSIM and Mondrian, and their respective affiliates, the trustees considered whether the varied levels of compensation and profitability under the Agreements and other service agreements were reasonable and justified in light of the quality of all services rendered to each fund. The Board also considered the profitability of Mondrian with respect to the sub-advisory services it provides to the funds, although it also considered that Mondrian is compensated by CSIM, and not by such funds directly, and such compensation reflects arms-length negotiation between the parties. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM and Mondrian, albeit uncertain, is reasonable and supported approval of the Agreements with respect to the funds.

Economies of Scale. Recognizing that the funds had not yet commenced operations and had no assets, the trustees considered the possible development of any economies of scale and whether those could be expected to be passed along to the funds’ shareholders through a graduated investment advisory fee schedule or other means, including any fee waivers by CSIM and its affiliates. In this regard, and consistent with their consideration of fund expenses, the trustees considered that CSIM has committed resources to minimize the effects on shareholders of diseconomies of scale during periods when fund assets are relatively small through their contractual expense waivers that may only be amended or terminated with the approval of the Board. For example, such diseconomies of scale typically affect new funds, but shareholders may benefit from the continued availability of such funds at subsidized expense levels. The trustees also considered CSIM’s agreement to contractual investment advisory fee schedules that includes lower fees at higher graduated asset levels. Based on this evaluation, and in consideration of the commitments made by CSIM as discussed above, the Board concluded, within the context of its full deliberations, that the funds may be expected to obtain reasonable benefit from economies of scale if such economies develop.

In the course of their deliberations, the trustees did not identify any particular information or factor that was all-important or controlling. Based on the trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreements as they relate to the funds and concluded that the compensation with respect to the funds under the Agreements is fair and reasonable in light of such services and expenses and such other matters as the trustees have considered to be relevant in the exercise of their reasonable judgment.

Trustees and Officers


Independent Trustees
Name, Address¹
and Year of Birth;		Number of
(Term of Office		Portfolios in
and Length of	Principal Occupation(s)	Fund Complex		Other Directorships
Time Served²)	During Past Five Years	Overseen		Held by Trustee


Mariann Byerwalter³1960 (1/04-present)	Chairman of JDN Corporate Advisory LLC.		79	Board 1—Director, Redwood Trust, Inc. (mortgage finance). Board 2—Director, PMI Group, Inc. (mortgage insurance).


William A. Hasler³1941 (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 Corporation (bio-pharmaceuticals).		79	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 communications technology) Board 6—Rubicon Limited (manufacturing)


Nils H. Hakansson³1937 (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).		11	None


Interested Trustees
Name, Address¹
and Year of Birth;		Number of
(Term of Office		Portfolios in
and Length of	Principal Occupation(s)	Fund Complex		Other Directorships
Time Served²)	During Past Five Years	Overseen		Held by Trustee


Randall W. Merk 1954 (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.		11	None


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.


Officers
Name, Address⁴
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.


Randall Fillmore 1960 (9/04-present)	Chief Compliance Officer	Senior Vice President, Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President, Charles Schwab & Co., Inc.; Chief Compliance Officer, Schwab Funds. From June 2006 to June 2007, Chief Compliance Officer, Excelsior Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc.


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.


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.


Cathy Sabo 1964 (12/05-present)	Vice President	Vice President, Compliance, Charles Schwab Investment, Management, Inc.; Vice President, Schwab Funds; until September 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.


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.

Definitions, Terms and Other Information

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 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.

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 dividend 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.

Proxy Voting

Quarterly Disclosure of Portfolio Holdings

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For More Information about the Funds:

Investment Adviser

Charles Schwab Investment Management, Inc.

101 Montgomery Street, San Francisco, CA 94104

Funds

Laudus Mondrian Funds

P.O. Box 3812, Englewood, CO 80155–3812

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.


	MFR 41684

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

2008: $283,520 2007: $294,785

(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:

2007: $43,205 2007: NONE

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:

2008: $86,410 2007: $82,845

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:

2008: NONE 2007: $20,000


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.

2008: $175,918 2007: $169,975

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.

2008: $1,014,998 2007: $4,221,564

(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, Evelyn Dilsaver 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/ Randall W. Merk

		Randall W. Merk
		President and Chief Executive Officer

Date:		5/14/08

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/ Randall W. Merk

		Randall W. Merk
		President and Chief Executive Officer

Date:		5/14/08


By:		/s/ George Pereira

		George Pereira
		Principal Financial Officer

Date:		5/14/08

Laudus Trust N-CSRCertified annual shareholder report (management investment company)