Table of Contents
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
Laudus Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California | 94105 | |
(Address of principal executive offices) | (Zip code) |
Marie Chandoha
Laudus Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: March 31
Date of reporting period: March 31, 2015
Item 1: Report(s) to Shareholders.
Table of Contents
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67 |
Total Return for the Twelve Months Ended March 31, 2015 | |
Laudus Mondrian International Equity Fund1 | |
Investor Shares (Ticker Symbol: LIEQX) | -0.02% |
Select Shares (Ticker Symbol: LIEFX) | 0.04% |
Institutional Shares (Ticker Symbol: LIEIX) | 0.11% |
MSCI EAFE Index® (Net) | -0.92% |
MSCI EAFE® Value Index (Net) | -2.90% |
Performance Details | pages 4-6 |
Laudus Mondrian Emerging Markets Fund1 | |
Investor Shares (Ticker Symbol: LEMIX) | -3.46% |
Select Shares (Ticker Symbol: LEMSX) | -3.26% |
Institutional Shares (Ticker Symbol: LEMNX) | -3.03% |
MSCI Emerging Markets Index (Net) | 0.44% |
Performance Details | pages 7-9 |
Laudus Mondrian International Government Fixed Income Fund (Ticker Symbol: LIFNX) | -9.37% |
Citigroup non-U.S. Dollar World Government Bond Index | -9.82% |
Performance Details | pages 10-12 |
Laudus Mondrian Global Government Fixed Income Fund (Ticker Symbol: LMGDX) | -6.34% |
Custom Composite Index2 | -5.63% |
Citigroup World Government Bond Index | -5.50% |
Performance Details | pages 13-15 |
1 | The fund's performance relative to the indices may be affected by fair-value pricing, see financial note 2 for more information. |
2 | The Custom Composite Index is composed of the Citigroup World Government Bond Index from the Fund’s inception until the close of business on 3/31/13, and a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index from 4/1/2013 forward. |
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230pchandom.jpg)
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230schandom.jpg)
1 | The total returns cited are calculated net of foreign withholding taxes. For definitions of the referenced indices, please see the Glossary. |
Fund Characteristics | |
Number of Companies1 | 40 |
Weighted Average Market Cap (millions) | $79,834 |
Price/Earnings Ratio (P/E) | 19.67 |
Price/Book Ratio (P/B) | 1.85 |
Portfolio Turnover (One year trailing)2 | 36% |
Fund Overview | |||
Investor Shares | Select Shares | Institutional Shares | |
Minimum Initial Investment | $100 | $50,000 | $500,000 |
Inception Date | 6/16/2008 | 6/16/2008 | 6/16/2008 |
Ticker Symbol | LIEQX | LIEFX | LIEIX |
Cusip | 51855Q614 | 51855Q564 | 51855Q580 |
NAV | $6.45 | $6.48 | $6.50 |
1 | Short-term investments are not included. |
2 | Portfolio turnover excludes the impact of investment activity from a merger with another fund. |
June 16, 2008 – March 31, 2015
Performance of Hypothetical
$10,000 Investment in Investor Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img68267af71.jpg)
Performance of Hypothetical
$50,000 Investment in Select Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230imgc037cae32.jpg)
June 16, 2008 – March 31, 2015
Performance of Hypothetical
$500,000 Investment in Institutional Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230imgbbf80c463.jpg)
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (6/16/08) | -0.02% | 6.02% | 0.43% |
Select Shares (6/16/08) | 0.04% | 6.26% | 0.65% |
Institutional Shares (6/16/08) | 0.11% | 6.34% | 0.74% |
MSCI EAFE Index® (Net) | -0.92% | 6.16% | 1.45% |
MSCI EAFE® Value Index (Net) | -2.90% | 5.27% | 1.09% |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Net Expenses: The adviser has agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.90%, 1.05%, and 1.30% for the Institutional, Select, and Investor classes, respectively, until at least 7/30/2016. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
United Kingdom | 18.5% |
Japan | 17.5% |
Switzerland | 15.6% |
Germany | 9.8% |
France | 8.8% |
Spain | 7.7% |
Singapore | 4.3% |
Netherlands | 3.5% |
Israel | 3.0% |
Other Countries | 11.3% |
Total | 100.0% |
Health Care | 16.5% |
Consumer Staples | 16.3% |
Telecommunication Services | 15.9% |
Financials | 11.6% |
Energy | 9.8% |
Information Technology | 8.5% |
Utilities | 7.9% |
Industrials | 6.1% |
Consumer Discretionary | 4.9% |
Materials | 2.5% |
Total | 100.0% |
ABB Ltd. – Reg'd | 3.5% |
Sanofi | 3.4% |
Takeda Pharmaceutical Co., Ltd. | 3.4% |
Koninklijke Ahold N.V. | 3.3% |
GlaxoSmithKline plc | 3.3% |
Zurich Insurance Group AG | 3.3% |
Iberdrola S.A. | 3.2% |
Deutsche Telekom AG – Reg'd | 3.2% |
Unilever plc | 3.2% |
Canon, Inc. | 3.2% |
Total | 33.0% |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Companies1 | 48 |
Weighted Average Market Cap (millions) | $37,249 |
Price/Earnings Ratio (P/E) | 13.23 |
Price/Book Ratio (P/B) | 1.84 |
Portfolio Turnover (One year trailing)2 | 30% |
Fund Overview | |||
Investor Shares | Select Shares | Institutional Shares | |
Minimum Initial Investment | $100 | $50,000 | $500,000 |
Inception Date | 11/2/2007 | 11/2/2007 | 11/2/2007 |
Ticker Symbol | LEMIX | LEMSX | LEMNX |
Cusip | 51855Q648 | 51855Q630 | 51855Q622 |
NAV | $8.18 | $8.18 | $8.18 |
1 | Short-term investments are not included. |
2 | Portfolio turnover excludes the impact of investment activity from a merger with another fund. |
November 2, 2007 – March 31, 2015
Performance of Hypothetical
$10,000 Investment in Investor Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img5a93a42c4.jpg)
Performance of Hypothetical
$50,000 Investment in Select Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img6b5b7a775.jpg)
November 2, 2007 – March 31, 2015
Performance of Hypothetical
$500,000 Investment in Institutional Shares1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img41f8d3866.jpg)
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (11/2/07) | -3.46% | 0.33% | -1.20% |
Select Shares (11/2/07) | -3.26% | 0.62% | -0.92% |
Institutional Shares (11/2/07) | -3.03% | 0.71% | -0.85% |
MSCI Emerging Markets Index (Net) | 0.44% | 1.75% | -1.63% |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | As stated in the prospectus. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
China | 17.1% |
Taiwan | 11.2% |
India | 10.6% |
Brazil | 7.6% |
Malaysia | 7.1% |
Republic of Korea | 5.6% |
Mexico | 5.5% |
United States | 4.8% |
Indonesia | 4.3% |
South Africa | 4.2% |
Turkey | 3.5% |
United Kingdom | 3.2% |
Philippines | 2.8% |
Other Countries | 12.5% |
Total | 100.0% |
Financials | 20.6% |
Information Technology | 15.5% |
Consumer Discretionary | 14.5% |
Utilities | 10.9% |
Telecommunication Services | 10.1% |
Energy | 9.4% |
Industrials | 8.1% |
Consumer Staples | 7.2% |
Health Care | 2.4% |
Materials | 1.3% |
Total | 100.0% |
Taiwan Semiconductor Manufacturing Co., Ltd. | 4.1% |
Fibra Uno Administracion S.A. de C.V. | 3.6% |
China Resources Power Holdings Co., Ltd. | 3.4% |
Unilever plc | 3.2% |
Hyundai Mobis Co., Ltd. | 3.0% |
China Mobile Ltd. | 3.0% |
Yum! Brands, Inc. | 2.9% |
Tenaga Nasional Berhad | 2.8% |
Philippine Long Distance Telephone Co. ADR | 2.8% |
Belle International Holdings Ltd. | 2.7% |
Total | 31.5% |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues1 | 39 |
Weighted Average Maturity2 | 9.3 Yrs |
Weighted Average Duration2 | 7.5 Yrs |
Portfolio Turnover (One year trailing) | 50% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 11/2/2007 |
Ticker Symbol | LIFNX |
Cusip | 51855Q655 |
NAV | $9.45 |
1 | Short-term investments are not included. |
2 | See Glossary for definitions of maturity and duration. |
Performance of Hypothetical
$10,000 Investment1,2
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img7e8116dc7.jpg)
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Laudus Mondrian International Government Fixed Income Fund (11/2/07) | -9.37% | -0.75% | 2.09% |
Citigroup non-U.S. Dollar World Government Bond Index | -9.82% | 0.38% | 2.06% |
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 | On July 27, 2009, the Investor Share class, Select Share class and Institutional Share class of the fund were combined into a single class of shares of the fund. The performance and financial history of the fund is that of the fund’s former Institutional Shares. Accordingly, the past performance shown is that of the fund’s former Institutional Shares. |
3 | As stated in the prospectus. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
Japan | 17.7% |
United Kingdom | 13.0% |
Sweden | 9.9% |
Germany | 5.7% |
Mexico | 4.8% |
France | 4.7% |
Austria | 4.5% |
Netherlands | 4.4% |
New Zealand | 4.4% |
Finland | 4.4% |
Canada | 4.0% |
Other Countries | 5.8% |
Supranational* | 16.7% |
Total | 100.0% |
Euro Currency | 31.8% |
Japanese Yen | 34.3% |
Great British Pound | 13.0% |
Swedish Krona | 9.8% |
Mexican Peso | 4.8% |
U.S. Dollar | 2.3% |
Polish Zloty | 2.1% |
Malaysian Ringgit | 1.9% |
New Zealand Dollar | 0.0% 3 |
Total | 100.0% |
Government Bonds | 81.5% |
Supranational* | 16.7% |
Other Investment Companies | 1.8% |
Total | 100.0% |
Sweden Government Bond, 3.50%, 06/01/22 | 5.7% |
Japan Government Thirty Year Bond, 2.40%, 12/20/34 | 5.4% |
France Government Bond OAT, 5.75%, 10/25/32 | 4.6% |
Mexico Government Bond, 6.50%, 06/10/21 | 4.5% |
Austria Government Bond, 6.25%, 07/15/27 | 4.5% |
Netherlands Government Bond, 5.50%, 01/15/28 | 4.4% |
Finland Government Bond, 3.50%, 04/15/21 | 4.4% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 4.3% |
European Investment Bank, 1.40%, 06/20/17 | 4.3% |
Nordic Investment Bank, 1.70%, 04/27/17 | 4.1% |
Total | 46.2% |
* | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. Bonds are issued and held in Japanese yen and euro. |
1 | Country weights may include issues via Samurai bonds issued in Japanese yen by non-Japanese entities and/or Yankee bonds issued in U.S. dollars by non-U.S. entities. |
2 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
3 | Amount is less than 0.05% |
4 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues2 | 63 |
Weighted Average Maturity3 | 8.5 Yrs |
Weighted Average Duration3 | 6.7 Yrs |
Portfolio Turnover (One year trailing) | 62% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 7/10/2012 |
Ticker Symbol | LMGDX |
Cusip | 51855Q119 |
NAV | $8.71 |
1 | The Custom Composite Index is composed of a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index. |
2 | Short-term investments are not included. |
3 | See Glossary for definitions of maturity and duration. |
Performance of Hypothetical
$10,000 Investment1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230img9d2eaa788.jpg)
Fund and Inception Date | 1 Year | Since Inception |
Laudus Mondrian Global Government Fixed Income Fund (7/10/12) | -6.34% | -4.37% |
Custom Composite Index2 | -5.63% | -2.61% |
Citigroup World Government Bond Index | -5.50% | -2.04% |
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 | The Custom Composite Index is composed of the Citigroup World Government Bond Index from the Fund’s inception until the close of business on 3/31/13, and a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index from 4/1/2013 forward. |
3 | As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/16. The adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
United States | 36.5% |
Japan | 13.4% |
Germany | 10.3% |
United Kingdom | 8.0% |
Mexico | 7.2% |
Brazil | 4.4% |
Poland | 3.4% |
New Zealand | 3.3% |
Malaysia | 3.0% |
Other Countries | 10.5% |
Total | 100.0% |
Japanese Yen | 20.8% |
U.S. Dollar | 19.9% |
Euro Currency | 14.4% |
Great British Pound | 8.0% |
Swedish Krona | 8.0% |
Mexican Peso | 7.2% |
Brazilian Real | 4.5% |
Polish Zloty | 3.4% |
Malaysian Ringgit | 3.0% |
Russian Ruble | 1.9% |
South African Rand | 1.8% |
Australian Dollar | 1.6% |
Chinese Yuan Renminbi | 1.4% |
Colombian Peso | 1.3% |
Indonesian Rupiah | 1.2% |
Turkish Lira | 1.0% |
Peruvian Nuevo Sol | 0.6% |
New Zealand Dollar | 0.0% 3 |
Total | 100.0% |
Government Bonds | 63.5% |
U.S. Government Securities | 33.8% |
Short-Term Investments | 1.4% |
Other Investment Companies | 1.3% |
Total | 100.0% |
U.S. Treasury Notes, 3.63%, 02/15/21 | 7.6% |
U.S. Treasury Notes, 2.13%, 08/15/21 | 5.8% |
U.S. Treasury Notes, 3.63%, 08/15/19 | 5.5% |
U.S. Treasury Notes, 1.25%, 04/30/19 | 5.1% |
Bundesobligation, 0.50%, 02/23/18 | 4.8% |
U.S. Treasury Notes, 2.13%, 08/31/20 | 4.2% |
Japan Government Ten Year Bond, 0.80%, 09/20/20 | 3.9% |
Japan Government Ten Year Bond, 1.40%, 03/20/18 | 3.7% |
United Kingdom Gilt, 2.75%, 09/07/24 | 3.4% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 3.4% |
Total | 47.4% |
1 | Country weights may include issues via Samurai bonds issued in Japanese yen by non-Japanese entities and/or Yankee bonds issued in U.S. dollars by non-U.S. entities. |
2 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
3 | Amount is less than 0.05% |
4 | This list is not a recommendation of any security by the investment adviser or subadviser. |
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
Expense Ratio1 (Annualized) | Beginning Account Value at 10/1/14 | Ending Account Value (Net of Expenses) at 3/31/15 | Expenses Paid During Period2 10/1/14-3/31/15 | |
Laudus Mondrian International Equity Fund | ||||
Investor Shares | ||||
Actual Return | 1.16% | $1,000.00 | $ 1,013.70 | $5.82 |
Hypothetical 5% Return | 1.16% | $1,000.00 | $ 1,019.12 | $5.84 |
Select Shares | ||||
Actual Return | 1.05% | $1,000.00 | $1,014.30 | $5.27 |
Hypothetical 5% Return | 1.05% | $1,000.00 | $1,019.66 | $5.29 |
Institutional Shares | ||||
Actual Return | 0.90% | $1,000.00 | $1,014.90 | $4.52 |
Hypothetical 5% Return | 0.90% | $1,000.00 | $ 1,020.41 | $4.53 |
Laudus Mondrian Emerging Markets Fund | ||||
Investor Shares | ||||
Actual Return | 1.60% | $1,000.00 | $ 945.80 | $ 7.76 |
Hypothetical 5% Return | 1.60% | $1,000.00 | $ 1,016.92 | $8.05 |
Select Shares | ||||
Actual Return | 1.35% | $1,000.00 | $ 946.70 | $6.55 |
Hypothetical 5% Return | 1.35% | $1,000.00 | $ 1,018.17 | $ 6.79 |
Institutional Shares | ||||
Actual Return | 1.20% | $1,000.00 | $ 947.90 | $5.83 |
Hypothetical 5% Return | 1.20% | $1,000.00 | $ 1,018.92 | $6.04 |
Laudus Mondrian International Government Fixed Income Fund | ||||
Actual Return | 0.75% | $1,000.00 | $ 932.00 | $3.61 |
Hypothetical 5% Return | 0.75% | $1,000.00 | $ 1,021.16 | $ 3.78 |
Laudus Mondrian Global Government Fixed Income Fund | ||||
Actual Return | 0.85% | $1,000.00 | $ 950.90 | $4.13 |
Hypothetical 5% Return | 0.85% | $1,000.00 | $1,020.66 | $4.28 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period. |
2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
Investor Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.76 | 7.43 | 7.19 | 7.73 | 7.52 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.16 | 0.29 | 0.21 | 0.26 | 0.16 | |
Net realized and unrealized gains (losses) | (0.31) | 1.25 | 0.26 | (0.45) | 0.28 | |
Total from investment operations | (0.15) | 1.54 | 0.47 | (0.19) | 0.44 | |
Less distributions: | ||||||
Distributions from net investment income | (0.88) | (0.21) | (0.22) | (0.30) | (0.23) | |
Distributions from net realized gains | (1.28) | — | (0.01) | (0.05) | — | |
Total distributions | (2.16) | (0.21) | (0.23) | (0.35) | (0.23) | |
Net asset value at end of period | 6.45 | 8.76 | 7.43 | 7.19 | 7.73 | |
Total return (%) | (0.02) | 20.86 | 6.79 | (2.02) | 5.94 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.17 | 1.27 | 1.40 | 1.40 | 1.40 | |
Gross operating expenses | 1.33 | 1.29 | 1.51 | 1.63 | 1.63 | |
Net investment income (loss) | 2.08 | 3.56 | 3.03 | 3.49 | 2.19 | |
Portfolio turnover rate | 36 2 | 25 | 29 | 35 | 33 | |
Net assets, end of period ($ x 1,000) | 3,486 | 1,185 | 926 | 1,048 | 1,009 | |
Select Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.79 | 7.45 | 7.20 | 7.75 | 7.53 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.20 | 0.37 | 0.24 | 0.26 | 0.21 | |
Net realized and unrealized gains (losses) | (0.35) | 1.19 | 0.26 | (0.44) | 0.25 | |
Total from investment operations | (0.15) | 1.56 | 0.50 | (0.18) | 0.46 | |
Less distributions: | ||||||
Distributions from net investment income | (0.88) | (0.22) | (0.24) | (0.32) | (0.24) | |
Distributions from net realized gains | (1.28) | — | (0.01) | (0.05) | — | |
Total distributions | (2.16) | (0.22) | (0.25) | (0.37) | (0.24) | |
Net asset value at end of period | 6.48 | 8.79 | 7.45 | 7.20 | 7.75 | |
Total return (%) | 0.04 | 21.17 | 7.18 | (1.82) | 6.20 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.08 3 | 1.07 | 1.12 | 1.12 | 1.12 | |
Gross operating expenses | 1.23 | 1.08 | 1.26 | 1.40 | 1.36 | |
Net investment income (loss) | 2.56 | 4.53 | 3.37 | 3.51 | 2.86 | |
Portfolio turnover rate | 36 2 | 25 | 29 | 35 | 33 | |
Net assets, end of period ($ x 1,000) | 2,981 | 2,238 | 768 | 938 | 542 |
Institutional Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.81 | 7.46 | 7.22 | 7.76 | 7.54 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.27 | 0.35 | 0.23 | 0.29 | 0.23 | |
Net realized and unrealized gains (losses) | (0.41) | 1.22 | 0.27 | (0.46) | 0.24 | |
Total from investment operations | (0.14) | 1.57 | 0.50 | (0.17) | 0.47 | |
Less distributions: | ||||||
Distributions from net investment income | (0.89) | (0.22) | (0.25) | (0.32) | (0.25) | |
Distributions from net realized gains | (1.28) | — | (0.01) | (0.05) | — | |
Total distributions | (2.17) | (0.22) | (0.26) | (0.37) | (0.25) | |
Net asset value at end of period | 6.50 | 8.81 | 7.46 | 7.22 | 7.76 | |
Total return (%) | 0.11 | 21.31 | 7.10 | (1.63) | 6.28 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.01 2 | 1.05 | 1.05 | 1.05 | 1.05 | |
Gross operating expenses | 1.07 | 1.07 | 1.11 | 1.23 | 1.21 | |
Net investment income (loss) | 3.28 | 4.24 | 3.22 | 3.92 | 3.08 | |
Portfolio turnover rate | 36 3 | 25 | 29 | 35 | 33 | |
Net assets, end of period ($ x 1,000) | 91,981 | 162,366 | 127,709 | 119,049 | 126,758 | |
Holdings by Category | Cost ($) | Value ($) | |
98.4% | Common Stock | 80,619,036 | 96,872,347 |
0.0% | Rights | — | 31,084 |
1.7% | Other Investment Company | 1,648,604 | 1,648,604 |
100.1% | Total Investments | 82,267,640 | 98,552,035 |
(0.1)% | Other Assets and Liabilities, Net | (103,445) | |
100.0% | Net Assets | 98,448,590 |
Security | Number of Shares | Value ($) |
Common Stock 98.4% of net assets | ||
Australia 1.7% | ||
Insurance 1.7% | ||
QBE Insurance Group Ltd. | 164,092 | 1,622,018 |
China 1.8% | ||
Telecommunication Services 1.8% | ||
China Mobile Ltd. | 138,000 | 1,798,470 |
France 8.8% | ||
Capital Goods 2.5% | ||
Compagnie de Saint-Gobain | 55,838 | 2,451,695 |
Energy 2.3% | ||
Total S.A. | 45,157 | 2,244,619 |
Pharmaceuticals, Biotechnology & Life Sciences 3.4% | ||
Sanofi | 33,693 | 3,327,487 |
Telecommunication Services 0.6% | ||
Orange S.A. | 40,577 | 651,649 |
8,675,450 | ||
Germany 9.8% | ||
Automobiles & Components 1.7% | ||
Daimler AG - Reg'd | 16,961 | 1,628,845 |
Software & Services 3.2% | ||
SAP SE | 43,368 | 3,134,524 |
Telecommunication Services 3.2% | ||
Deutsche Telekom AG - Reg'd | 172,604 | 3,156,998 |
Security | Number of Shares | Value ($) |
Utilities 1.7% | ||
RWE AG | 67,642 | 1,722,161 |
9,642,528 | ||
Israel 3.0% | ||
Pharmaceuticals, Biotechnology & Life Sciences 3.0% | ||
Teva Pharmaceutical Industries Ltd. ADR | 47,700 | 2,971,710 |
Italy 2.1% | ||
Energy 2.1% | ||
Eni S.p.A. | 118,145 | 2,044,871 |
Japan 17.6% | ||
Automobiles & Components 3.1% | ||
Honda Motor Co., Ltd. | 93,200 | 3,042,321 |
Food & Staples Retailing 1.9% | ||
Seven & i Holdings Co., Ltd. | 43,600 | 1,832,214 |
Household & Personal Products 1.8% | ||
Kao Corp. | 35,000 | 1,747,690 |
Insurance 2.8% | ||
Tokio Marine Holdings, Inc. | 74,300 | 2,804,588 |
Pharmaceuticals, Biotechnology & Life Sciences 3.4% | ||
Takeda Pharmaceutical Co., Ltd. | 66,100 | 3,299,571 |
Technology Hardware & Equipment 3.2% | ||
Canon, Inc. | 88,700 | 3,138,320 |
Telecommunication Services 1.4% | ||
NTT DOCOMO, Inc. | 80,500 | 1,406,819 |
17,271,523 | ||
Netherlands 3.4% | ||
Food & Staples Retailing 3.3% | ||
Koninklijke Ahold N.V. | 168,872 | 3,327,768 |
Media 0.1% | ||
Reed Elsevier N.V. | 2,464 | 61,397 |
3,389,165 | ||
Singapore 4.3% | ||
Banks 1.9% | ||
United Overseas Bank Ltd. | 112,320 | 1,882,725 |
Telecommunication Services 2.4% | ||
Singapore Telecommunications Ltd. | 740,800 | 2,363,920 |
4,246,645 | ||
Spain 7.7% | ||
Banks 1.7% | ||
Banco Santander S.A. | 223,640 | 1,676,489 |
Telecommunication Services 2.8% | ||
Telefonica S.A. | 192,723 | 2,742,352 |
Utilities 3.2% | ||
Iberdrola S.A. | 490,733 | 3,164,518 |
7,583,359 |
Security | Number of Shares | Value ($) |
Sweden 2.1% | ||
Telecommunication Services 2.1% | ||
TeliaSonera AB | 328,296 | 2,086,218 |
Switzerland 15.6% | ||
Capital Goods 3.5% | ||
ABB Ltd. - Reg'd * | 161,752 | 3,431,407 |
Food, Beverage & Tobacco 3.1% | ||
Nestle S.A. - Reg'd | 41,097 | 3,094,701 |
Insurance 3.3% | ||
Zurich Insurance Group AG * | 9,606 | 3,246,849 |
Materials 2.5% | ||
Syngenta AG - Reg'd | 7,251 | 2,463,370 |
Pharmaceuticals, Biotechnology & Life Sciences 3.2% | ||
Novartis AG - Reg'd | 31,431 | 3,102,255 |
15,338,582 | ||
Taiwan 2.0% | ||
Semiconductors & Semiconductor Equipment 2.0% | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 420,154 | 1,952,691 |
United Kingdom 18.5% | ||
Energy 5.3% | ||
BP plc | 400,721 | 2,597,538 |
Royal Dutch Shell plc, Class A | 88,561 | 2,642,542 |
5,240,080 | ||
Food & Staples Retailing 2.7% | ||
Tesco plc | 730,746 | 2,608,437 |
Food, Beverage & Tobacco 3.2% | ||
Unilever plc | 75,421 | 3,146,822 |
Pharmaceuticals, Biotechnology & Life Sciences 3.3% | ||
GlaxoSmithKline plc | 142,932 | 3,290,286 |
Telecommunication Services 1.2% | ||
Vodafone Group plc | 357,407 | 1,169,551 |
Utilities 2.8% | ||
National Grid plc | 217,325 | 2,793,941 |
18,249,117 | ||
Total Common Stock | ||
(Cost $80,619,036) | 96,872,347 |
Security | Number of Shares | Value ($) |
Rights 0.0% of net assets | ||
Spain 0.0% | ||
Telecommunication Services 0.0% | ||
Telefonica S.A. * | 192,723 | 31,084 |
Total Rights | ||
(Cost $—) | 31,084 | |
Other Investment Company 1.7% of net assets | ||
United States 1.7% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 1,648,604 | 1,648,604 |
Total Other Investment Company | ||
(Cost $1,648,604) | 1,648,604 |
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
ADR – | American Depositary Receipt |
Reg'd – | Registered |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Common Stock1 | $— | $93,900,637 | $— | $93,900,637 | |||||
Israel 1 | 2,971,710 | — | — | 2,971,710 | |||||
Rights 1 | 31,084 | — | — | 31,084 | |||||
Other Investment Company1 | 1,648,604 | — | — | 1,648,604 | |||||
Total | $4,651,398 | $93,900,637 | $— | $98,552,035 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $82,267,640) | $98,552,035 | |
Foreign currency, at value (cost $116,983) | 116,696 | |
Receivables: | ||
Investments sold | 181,523 | |
Fund shares sold | 424,602 | |
Dividends | 181,068 | |
Foreign tax reclaims | 151,118 | |
Prepaid expenses | + | 588 |
Total assets | 99,607,630 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,037,569 | |
Investment adviser fees | 10,575 | |
Independent trustees' fees | 5,550 | |
Distribution and shareholder services fees | 673 | |
Fund shares redeemed | 630 | |
Accrued expenses | + | 104,043 |
Total liabilities | 1,159,040 | |
Net Assets | ||
Total assets | 99,607,630 | |
Total liabilities | – | 1,159,040 |
Net assets | $98,448,590 | |
Net Assets by Source | ||
Capital received from investors | 81,196,903 | |
Net investment income not yet distributed | 238,502 | |
Net realized capital gains | 748,513 | |
Net unrealized capital appreciation | 16,264,672 |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $3,486,138 | 540,472 | $6.45 | ||
Select Shares | $2,980,998 | 460,008 | $6.48 | ||
Institutional Shares | $91,981,454 | 14,147,640 | $6.50 | ||
Investment Income | ||
Dividends (net of foreign withholding taxes of $435,751) | $5,007,035 | |
Expenses | ||
Investment adviser fees | 964,775 | |
Professional fees | 75,741 | |
Transfer agent fees | 68,756 | |
Custodian fees | 51,802 | |
Registration fees | 50,430 | |
Accounting and administration fees | 30,658 | |
Independent trustees' fees | 10,497 | |
Distribution and shareholder services fees (Investor Shares) | 2,685 | |
Interest expense | 490 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 1,280 | |
Select Shares | 3,038 | |
Other expenses | + | 12,284 |
Total expenses | 1,272,436 | |
Expense reduction by adviser | – | 82,813 |
Net expenses | – | 1,189,623 |
Net investment income | 3,817,412 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 15,903,598 | |
Net realized losses on foreign currency transactions | + | (64,495) |
Net realized gains | 15,839,103 | |
Net change in unrealized appreciation (depreciation) on investments | (19,582,584) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 199,752 |
Net change in unrealized appreciation (depreciation) | + | (19,382,832) |
Net realized and unrealized losses | (3,543,729) | |
Increase in net assets resulting from operations | $273,683 |
Operations | |||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||
Net investment income | $3,817,412 | $6,442,067 | |
Net realized gains | 15,839,103 | 4,311,620 | |
Net change in unrealized appreciation (depreciation) | + | (19,382,832) | 18,713,546 |
Increase in net assets from operations | 273,683 | 29,467,233 | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | (228,950) | (43,562) | |
Select Shares | (237,028) | (39,623) | |
Institutional Shares | + | (6,208,099) | (4,101,346) |
Total distributions from net investment income | (6,674,077) | (4,184,531) | |
Distributions from net realized gains | |||
Investor Shares | (332,869) | — | |
Select Shares | (343,793) | — | |
Institutional Shares | + | (8,947,584) | — |
Total distributions from net realized gains | (9,624,246) | — | |
Total distributions | ($16,298,323) | $— |
Transactions in Fund Shares | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 415,068 | $3,051,107 | 124,025 | $1,020,656 | |
Select Shares | 331,340 | 2,479,377 | 187,963 | 1,551,950 | |
Institutional Shares | + | 4,084,739 | 31,936,081 | 5,128,087 | 41,545,896 |
Total shares sold | 4,831,147 | $37,466,565 | 5,440,075 | $44,118,502 | |
Issued in connection with merger | |||||
Institutional Shares | 4,414,647 | 28,253,737 | — | — | |
Total shares issued in connection with merger | 4,414,647 | $28,253,737 | — | $— | |
Shares Reinvested | |||||
Investor Shares | 86,483 | $521,494 | 4,585 | $37,461 | |
Select Shares | 77,093 | 466,412 | 3,974 | 32,588 | |
Institutional Shares | + | 1,338,949 | 8,127,419 | 118,669 | 975,458 |
Total shares reinvested | 1,502,525 | $9,115,325 | 127,228 | $1,045,507 | |
Shares Redeemed | |||||
Investor Shares | (96,337) | ($716,832) | (117,964) | ($961,598) | |
Select Shares | (202,963) | (1,634,227) | (40,460) | (338,030) | |
Institutional Shares | + | (14,126,383) | (123,799,839) | (3,918,997) | (32,761,514) |
Total shares redeemed | (14,425,683) | ($126,150,898) | (4,077,421) | ($34,061,142) | |
Net transactions in fund shares | (3,677,364) | ($51,315,271) | 1,489,882 | $11,102,867 | |
Shares Outstanding and Net Assets | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 18,825,484 | $165,788,501 | 17,335,602 | $129,402,932 | |
Total increase or decrease | + | (3,677,364) | (67,339,911) | 1,489,882 | 36,385,569 |
End of period | 15,148,120 | $98,448,590 | 18,825,484 | $165,788,501 | |
Net investment income not yet distributed | $238,502 | $3,160,403 |
Investor Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.69 | 9.84 | 9.48 | 9.67 | 8.79 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.14 | 0.11 | 0.12 | 0.16 | 0.14 | |
Net realized and unrealized gains (losses) | (0.45) | (1.18) | 0.42 | (0.20) | 0.90 | |
Total from investment operations | (0.31) | (1.07) | 0.54 | (0.04) | 1.04 | |
Less distributions: | ||||||
Distributions from net investment income | (0.20) | (0.08) | (0.18) | (0.08) | (0.16) | |
Distributions from net realized gains | — | (0.00) 2 | — | (0.07) | — | |
Total distributions | (0.20) | (0.08) | (0.18) | (0.15) | (0.16) | |
Net asset value at end of period | 8.18 | 8.69 | 9.84 | 9.48 | 9.67 | |
Total return (%) | (3.46) | (10.89) | 5.79 | (0.19) | 11.89 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.71 3 | 1.80 | 1.80 | 1.80 | 1.80 | |
Gross operating expenses | 1.77 | 1.86 | 1.89 | 1.90 | 1.91 | |
Net investment income (loss) | 1.56 | 1.25 | 1.33 | 1.74 | 1.56 | |
Portfolio turnover rate | 30 4 | 69 | 59 | 43 | 33 | |
Net assets, end of period ($ x 1,000) | 5,426 | 7,499 | 11,716 | 9,639 | 10,862 | |
Select Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.70 | 9.85 | 9.49 | 9.68 | 8.80 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.17 | 0.13 | 0.12 | 0.18 | 0.17 | |
Net realized and unrealized gains (losses) | (0.46) | (1.17) | 0.45 | (0.19) | 0.90 | |
Total from investment operations | (0.29) | (1.04) | 0.57 | (0.01) | 1.07 | |
Less distributions: | ||||||
Distributions from net investment income | (0.23) | (0.11) | (0.21) | (0.11) | (0.19) | |
Distributions from net realized gains | — | (0.00) 2 | — | (0.07) | — | |
Total distributions | (0.23) | (0.11) | (0.21) | (0.18) | (0.19) | |
Net asset value at end of period | 8.18 | 8.70 | 9.85 | 9.49 | 9.68 | |
Total return (%) | (3.26) | (10.57) | 6.15 | 0.15 | 12.18 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.45 3 | 1.52 | 1.52 | 1.52 | 1.52 | |
Gross operating expenses | 1.51 | 1.59 | 1.66 | 1.66 | 1.66 | |
Net investment income (loss) | 1.92 | 1.47 | 1.24 | 1.94 | 1.83 | |
Portfolio turnover rate | 30 4 | 69 | 59 | 43 | 33 | |
Net assets, end of period ($ x 1,000) | 10,446 | 15,849 | 18,340 | 5,993 | 5,554 |
Institutional Shares | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | |
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 8.69 | 9.85 | 9.49 | 9.68 | 8.80 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.14 | 0.16 | 0.19 | 0.15 | |
Net realized and unrealized gains (losses) | (0.39) | (1.19) | 0.42 | (0.19) | 0.92 | |
Total from investment operations | (0.27) | (1.05) | 0.58 | — | 1.07 | |
Less distributions: | ||||||
Distributions from net investment income | (0.24) | (0.11) | (0.22) | (0.12) | (0.19) | |
Distributions from net realized gains | — | (0.00) 2 | — | (0.07) | — | |
Total distributions | (0.24) | (0.11) | (0.22) | (0.19) | (0.19) | |
Net asset value at end of period | 8.18 | 8.69 | 9.85 | 9.49 | 9.68 | |
Total return (%) | (3.03) | (10.62) | 6.21 | 0.23 | 12.25 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.29 3 | 1.45 | 1.45 | 1.45 | 1.45 | |
Gross operating expenses | 1.31 | 1.52 | 1.49 | 1.50 | 1.51 | |
Net investment income (loss) | 1.42 | 1.55 | 1.70 | 2.07 | 1.69 | |
Portfolio turnover rate | 30 4 | 69 | 59 | 43 | 33 | |
Net assets, end of period ($ x 1,000) | 559,347 | 121,795 | 141,536 | 148,187 | 171,432 | |
Holdings by Category | Cost ($) | Value ($) | |
96.9% | Common Stock | 578,954,737 | 557,155,102 |
1.0% | Preferred Stock | 18,427,761 | 5,681,775 |
1.8% | Other Investment Company | 10,553,899 | 10,553,899 |
99.7% | Total Investments | 607,936,397 | 573,390,776 |
0.3% | Other Assets and Liabilities, Net | 1,828,380 | |
100.0% | Net Assets | 575,219,156 |
Security | Number of Shares | Value ($) |
Common Stock 96.9% of net assets | ||
Brazil 6.6% | ||
Materials 0.2% | ||
Vale S.A. ADR | 252,000 | 1,423,800 |
Software & Services 1.7% | ||
Cielo S.A. | 693,660 | 9,930,387 |
Transportation 3.2% | ||
CCR S.A. | 2,792,400 | 14,261,447 |
EcoRodovias Infraestrutura e Logistica S.A. | 1,439,200 | 4,053,957 |
18,315,404 | ||
Utilities 1.5% | ||
CPFL Energia S.A. ADR | 665,500 | 8,465,160 |
38,134,751 | ||
Chile 2.0% | ||
Utilities 2.0% | ||
Enersis S.A. ADR | 708,100 | 11,513,706 |
China 17.1% | ||
Capital Goods 2.1% | ||
Beijing Enterprises Holdings Ltd. | 1,539,500 | 12,094,910 |
Consumer Durables & Apparel 2.7% | ||
Belle International Holdings Ltd. | 13,216,848 | 15,428,331 |
Energy 1.3% | ||
China Shenhua Energy Co., Ltd., Class H | 2,831,000 | 7,221,028 |
Health Care Equipment & Services 2.3% | ||
Mindray Medical International Ltd. ADR | 488,800 | 13,368,680 |
Security | Number of Shares | Value ($) |
Household & Personal Products 2.3% | ||
Hengan International Group Co., Ltd. | 1,102,500 | 13,270,587 |
Telecommunication Services 3.0% | ||
China Mobile Ltd. | 1,334,000 | 17,385,207 |
Utilities 3.4% | ||
China Resources Power Holdings Co., Ltd. | 7,756,000 | 19,451,159 |
98,219,902 | ||
Hong Kong 1.0% | ||
Consumer Services 1.0% | ||
Sands China Ltd. | 1,369,600 | 5,663,614 |
India 10.6% | ||
Automobiles & Components 2.2% | ||
Bajaj Auto Ltd. | 380,928 | 12,278,976 |
Banks 3.3% | ||
Axis Bank Ltd. | 857,077 | 7,686,902 |
Housing Development Finance Corp., Ltd. | 546,192 | 11,483,769 |
19,170,671 | ||
Capital Goods 0.9% | ||
Larsen & Toubro Ltd. | 184,068 | 5,057,212 |
Energy 1.9% | ||
Cairn India Ltd. | 3,172,586 | 10,858,529 |
Software & Services 2.3% | ||
Infosys Ltd. | 220,452 | 7,757,470 |
Infosys Ltd. ADR | 159,500 | 5,595,260 |
13,352,730 | ||
60,718,118 | ||
Indonesia 4.3% | ||
Banks 3.4% | ||
PT Bank Mandiri (Persero) Tbk | 9,769,300 | 9,316,680 |
PT Bank Rakyat Indonesia (Persero) Tbk | 9,965,900 | 10,108,558 |
19,425,238 | ||
Utilities 0.9% | ||
PT Perusahaan Gas Negara (Persero) Tbk | 15,157,700 | 5,555,716 |
24,980,954 | ||
Kazakhstan 1.0% | ||
Energy 1.0% | ||
KazMunaiGas Exploration Production JSC GDR | 471,379 | 5,821,531 |
Malaysia 7.0% | ||
Banks 2.7% | ||
AMMB Holdings Berhad | 8,935,100 | 15,326,351 |
Consumer Services 1.5% | ||
Genting Malaysia Berhad | 7,844,100 | 8,949,984 |
Security | Number of Shares | Value ($) |
Utilities 2.8% | ||
Tenaga Nasional Berhad | 4,193,800 | 16,237,467 |
40,513,802 | ||
Mexico 5.5% | ||
Banks 1.9% | ||
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B ADR | 1,005,300 | 10,977,876 |
Real Estate 3.6% | ||
Fibra Uno Administracion S.A. de C.V. | 7,703,400 | 20,408,063 |
31,385,939 | ||
Peru 1.4% | ||
Banks 1.4% | ||
Credicorp Ltd. | 58,600 | 8,240,918 |
Philippines 2.8% | ||
Telecommunication Services 2.8% | ||
Philippine Long Distance Telephone Co. ADR | 254,573 | 15,908,267 |
Qatar 1.9% | ||
Banks 1.9% | ||
Qatar National Bank SAQ | 201,135 | 10,687,486 |
Republic of Korea 5.5% | ||
Automobiles & Components 3.0% | ||
Hyundai Mobis Co., Ltd. | 78,786 | 17,451,524 |
Technology Hardware & Equipment 2.5% | ||
Samsung Electronics Co., Ltd. | 11,157 | 14,467,876 |
31,919,400 | ||
Russia 1.5% | ||
Energy 1.5% | ||
Gazprom OAO ADR | 1,836,968 | 8,661,304 |
South Africa 4.2% | ||
Capital Goods 1.8% | ||
The Bidvest Group Ltd. | 377,336 | 10,206,956 |
Food, Beverage & Tobacco 1.5% | ||
SABMiller plc | 163,835 | 8,569,993 |
Retailing 0.9% | ||
Woolworths Holdings Ltd. | 750,040 | 5,317,574 |
24,094,523 | ||
Taiwan 11.2% | ||
Semiconductors & Semiconductor Equipment 6.4% | ||
MediaTek, Inc. | 980,000 | 13,235,637 |
Taiwan Semiconductor Manufacturing Co., Ltd. | 5,098,719 | 23,696,603 |
36,932,240 | ||
Technology Hardware & Equipment 2.2% | ||
Asustek Computer, Inc. | 1,225,000 | 12,314,913 |
Security | Number of Shares | Value ($) |
Telecommunication Services 2.6% | ||
Taiwan Mobile Co., Ltd. | 4,280,000 | 14,963,509 |
64,210,662 | ||
Thailand 1.6% | ||
Energy 1.6% | ||
PTT PCL | 911,300 | 9,045,787 |
Turkey 3.5% | ||
Energy 2.0% | ||
Tupras-Turkiye Petrol Rafinerileri A/S | 485,491 | 11,502,068 |
Telecommunication Services 1.5% | ||
Turk Telekomunikasyon A/S | 3,308,415 | 8,771,295 |
20,273,363 | ||
United Arab Emirates 2.1% | ||
Real Estate 2.1% | ||
Emaar Malls Group PJSC * | 14,896,922 | 11,841,895 |
United Kingdom 3.2% | ||
Food, Beverage & Tobacco 3.2% | ||
Unilever plc | 444,921 | 18,563,628 |
United States 2.9% | ||
Consumer Services 2.9% | ||
Yum! Brands, Inc. | 212,850 | 16,755,552 |
Total Common Stock | ||
(Cost $578,954,737) | 557,155,102 | |
Preferred Stock 1.0% of net assets | ||
Brazil 1.0% | ||
Materials 1.0% | ||
Vale S.A. ADR | 1,171,500 | 5,681,775 |
Total Preferred Stock | ||
(Cost $18,427,761) | 5,681,775 | |
Other Investment Company 1.8% of net assets | ||
United States 1.8% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 10,553,899 | 10,553,899 |
Total Other Investment Company | ||
(Cost $10,553,899) | 10,553,899 |
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
ADR – | American Depositary Receipt |
GDR – | Global Depositary Receipt |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Common Stock1 | $— | $252,749,327 | $— | $252,749,327 | |||||
Brazil 1 | 38,134,751 | — | — | 38,134,751 | |||||
Chile 1 | 11,513,706 | — | — | 11,513,706 | |||||
China 1 | — | 84,851,222 | — | 84,851,222 | |||||
Health Care Equipment & Services | 13,368,680 | — | — | 13,368,680 | |||||
India 1 | — | 47,365,388 | — | 47,365,388 | |||||
Software & Services | 5,595,260 | 7,757,470 | — | 13,352,730 | |||||
Kazakhstan 1 | 5,821,531 | — | — | 5,821,531 | |||||
Mexico 1 | 31,385,939 | — | — | 31,385,939 | |||||
Peru 1 | 8,240,918 | — | — | 8,240,918 | |||||
Philippines 1 | 15,908,267 | — | — | 15,908,267 | |||||
Russia 1 | 8,661,304 | — | — | 8,661,304 | |||||
Thailand 1 | 9,045,787 | — | — | 9,045,787 | |||||
United States1 | 16,755,552 | — | — | 16,755,552 | |||||
Preferred Stock | |||||||||
Brazil 1 | 5,681,775 | — | — | 5,681,775 | |||||
Other Investment Company1 | 10,553,899 | — | — | 10,553,899 | |||||
Total | $180,667,369 | $392,723,407 | $— | $573,390,776 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $607,936,397) | $573,390,776 | |
Foreign currency, at value (cost $1,475,102) | 1,477,654 | |
Receivables: | ||
Investments sold | 622,777 | |
Dividends | 984,016 | |
Fund shares sold | 14,284 | |
Prepaid expenses | + | 537 |
Total assets | 576,490,044 | |
Liabilities | ||
Payables: | ||
Investments bought | 821,400 | |
Investment adviser fees | 117,566 | |
Fund shares redeemed | 34,882 | |
Due to custodian | 19,552 | |
Independent trustees' fees | 6,945 | |
Distribution and shareholder services fees | 1,170 | |
Accrued expenses | + | 269,373 |
Total liabilities | 1,270,888 | |
Net Assets | ||
Total assets | 576,490,044 | |
Total liabilities | – | 1,270,888 |
Net assets | $575,219,156 | |
Net Assets by Source | ||
Capital received from investors | 640,083,667 | |
Distributions in excess of net investment income | (2,141,374) | |
Net realized capital losses | (28,166,643) | |
Net unrealized capital depreciation | (34,556,494) |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $5,425,614 | 663,297 | $8.18 | ||
Select Shares | $10,446,422 | 1,276,499 | $8.18 | ||
Institutional Shares | $559,347,120 | 68,392,792 | $8.18 | ||
Investment Income | ||
Dividends (net of foreign withholding taxes of $648,640) | $5,860,163 | |
Expenses | ||
Investment adviser fees | 2,273,269 | |
Custodian fees | 178,189 | |
Professional fees | 84,122 | |
Transfer agent fees | 77,134 | |
Registration fees | 76,306 | |
Accounting and administration fees | 35,012 | |
Shareholder reports | 24,268 | |
Distribution and shareholder services fees (Investor Shares) | 15,102 | |
Independent trustees' fees | 10,707 | |
Recouped sub-accounting and sub-transfer agent fees | 3,079 | |
Interest expense | 939 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 8,770 | |
Select Shares | 11,514 | |
Other expenses | + | 29,614 |
Total expenses | 2,828,025 | |
Expense reduction by adviser | – | 53,246 |
Net expenses | – | 2,774,779 |
Net investment income | 3,085,384 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of $337,975) | (1,942,165) | |
Net realized gains on foreign currency transactions | + | 147,928 |
Net realized losses | (1,794,237) | |
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gain tax of $216,261) | (17,457,987) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (12,130) |
Net change in unrealized appreciation (depreciation) | + | (17,470,117) |
Net realized and unrealized losses | (19,264,354) | |
Decrease in net assets resulting from operations | ($16,178,970) |
Operations | |||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||
Net investment income | $3,085,384 | $2,452,713 | |
Net realized losses | (1,794,237) | (8,477,024) | |
Net change in unrealized appreciation (depreciation) | + | (17,470,117) | (12,521,056) |
Decrease in net assets from operations | (16,178,970) | (18,545,367) | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | (145,366) | (86,943) | |
Select Shares | (305,982) | (205,448) | |
Institutional Shares | + | (3,366,678) | (1,531,617) |
Total distributions from net investment income | (3,818,026) | (1,824,008) | |
Distributions from net realized gains | |||
Investor Shares | — | (1,806) | |
Select Shares | — | (3,081) | |
Institutional Shares | + | — | (21,764) |
Total distributions from net realized gains | — | (26,651) | |
Total distributions | ($3,818,026) | ($1,850,659) |
Transactions in Fund Shares | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 150,710 | $1,325,782 | 824,632 | $7,571,471 | |
Select Shares | 251,274 | 2,223,309 | 1,102,624 | 10,078,700 | |
Institutional Shares | + | 10,345,888 | 89,219,542 | 10,707,051 | 93,596,387 |
Total shares sold | 10,747,872 | $92,768,633 | 12,634,307 | $111,246,558 | |
Issued in connection with merger | |||||
Institutional Shares | 48,526,177 | 407,621,233 | — | — | |
Total shares issued in connection with merger | 48,526,177 | $407,621,233 | — | $— | |
Shares Reinvested | |||||
Investor Shares | 17,540 | $138,570 | 8,970 | $77,952 | |
Select Shares | 30,056 | 237,443 | 17,322 | 150,528 | |
Institutional Shares | + | 386,789 | 3,051,761 | 114,129 | 990,640 |
Total shares reinvested | 434,385 | $3,427,774 | 140,421 | $1,219,120 | |
Shares Redeemed | |||||
Investor Shares | (368,166) | ($3,218,784) | (1,160,577) | ($10,285,948) | |
Select Shares | (827,132) | (7,477,651) | (1,159,490) | (10,245,399) | |
Institutional Shares | + | (4,881,768) | (43,048,584) | (11,181,228) | (97,987,264) |
Total shares redeemed | (6,077,066) | ($53,745,019) | (13,501,295) | ($118,518,611) | |
Net transactions in fund shares | 53,631,368 | $450,072,621 | (726,567) | ($6,052,933) | |
Shares Outstanding and Net Assets | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 16,701,220 | $145,143,531 | 17,427,787 | $171,592,490 | |
Total increase or decrease | + | 53,631,368 | 430,075,625 | (726,567) | (26,448,959) |
End of period | 70,332,588 | $575,219,156 | 16,701,220 | $145,143,531 | |
Distributions in excess of net investment income/Net investment income not yet distributed | ($2,141,374) | $6,056 |
4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | ||
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 10.89 | 11.01 | 11.61 | 11.86 | 11.20 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.15 1 | 0.16 1 | 0.15 | 0.20 | 0.16 | |
Net realized and unrealized gains (losses) | (1.14) | (0.21) | (0.53) | 0.09 | 0.71 | |
Total from investment operations | (0.99) | (0.05) | (0.38) | 0.29 | 0.87 | |
Less distributions: | ||||||
Distributions from net investment income | — | — | (0.15) | (0.46) | (0.20) | |
Distributions from net realized gains | (0.45) | (0.07) | (0.07) | (0.08) | (0.01) | |
Total distributions | (0.45) | (0.07) | (0.22) | (0.54) | (0.21) | |
Net asset value at end of period | 9.45 | 10.89 | 11.01 | 11.61 | 11.86 | |
Total return (%) | (9.37) | (0.49) | (3.41) | 2.48 | 7.86 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.74 | 0.69 | 0.69 | 0.71 | 0.74 | |
Gross operating expenses | 0.76 | 0.69 | 0.69 | 0.71 | 0.74 | |
Net investment income (loss) | 1.39 | 1.48 | 1.27 | 1.51 | 1.67 | |
Portfolio turnover rate | 50 | 52 | 44 | 68 | 58 | |
Net assets, end of period ($ x 1,000) | 187,388 | 652,647 | 741,235 | 881,405 | 966,800 | |
Holdings by Category | Cost ($) | Value ($) | |
80.7% | Government Bonds | 160,357,362 | 151,179,138 |
16.5% | Supranational | 38,184,576 | 31,020,657 |
1.8% | Other Investment Company | 3,320,343 | 3,320,343 |
99.0% | Total Investments | 201,862,281 | 185,520,138 |
1.0% | Other Assets and Liabilities, Net | 1,868,179 | |
100.0% | Net Assets | 187,388,317 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 80.7% of net assets | ||
Austria 4.5% | ||
Austria Government Bond | ||
6.25%, 07/15/27 (EUR) | 4,600,000 | 8,373,736 |
Canada 4.0% | ||
Canada Government International Bond | ||
3.50%, 01/13/20 (EUR) | 5,930,000 | 7,456,075 |
Finland 4.4% | ||
Finland Government Bond | ||
3.50%, 04/15/21 (EUR) (a) | 6,300,000 | 8,189,419 |
France 4.6% | ||
France Government Bond OAT | ||
5.75%, 10/25/32 (EUR) | 4,475,000 | 8,709,244 |
Germany 5.7% | ||
Bundesobligation | ||
0.50%, 04/07/17 (EUR) | 1,219,000 | 1,330,490 |
0.50%, 02/23/18 (EUR) | 1,500,000 | 1,647,073 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Bundesrepublik Deutschland | ||
3.50%, 07/04/19 (EUR) | 3,300,000 | 4,103,770 |
1.50%, 09/04/22 (EUR) | 2,000,000 | 2,386,946 |
1.00%, 08/15/24 (EUR) | 1,000,000 | 1,159,478 |
10,627,757 | ||
Japan 17.5% | ||
Japan Government Five Year Bond | ||
0.40%, 09/20/15 (JPY) | 810,000,000 | 6,766,666 |
Japan Government Ten Year Bond | ||
1.90%, 06/20/16 (JPY) | 252,650,000 | 2,154,608 |
1.10%, 06/20/20 (JPY) | 556,500,000 | 4,872,056 |
0.60%, 03/20/24 (JPY) | 95,000,000 | 811,481 |
Japan Government Thirty Year Bond | ||
2.40%, 12/20/34 (JPY) | 980,000,000 | 10,024,452 |
1.70%, 03/20/44 (JPY) | 900,000,000 | 8,138,563 |
32,767,826 | ||
Malaysia 1.9% | ||
Malaysia Government Bond | ||
3.65%, 10/31/19 (MYR) | 5,650,000 | 1,530,704 |
4.05%, 09/30/21 (MYR) | 5,400,000 | 1,482,248 |
4.18%, 07/15/24 (MYR) | 2,000,000 | 550,659 |
3,563,611 | ||
Mexico 4.7% | ||
Mexico Government Bond | ||
6.50%, 06/10/21 (MXN) | 121,685,000 | 8,387,486 |
7.50%, 06/03/27 (MXN) | 6,150,000 | 448,457 |
8,835,943 | ||
Netherlands 4.4% | ||
Netherlands Government Bond | ||
5.50%, 01/15/28 (EUR) | 4,693,490 | 8,239,648 |
New Zealand 4.4% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 4,000,000 | 3,213,896 |
5.00%, 03/15/19 (NZD) | 1,200,000 | 959,943 |
5.50%, 04/15/23 (NZD) | 4,650,000 | 4,033,889 |
8,207,728 | ||
Poland 2.1% | ||
Poland Government Bond | ||
4.75%, 04/25/17 (PLN) | 1,740,000 | 488,410 |
5.50%, 10/25/19 (PLN) | 10,500,000 | 3,210,310 |
5.75%, 04/25/29 (PLN) | 500,000 | 182,992 |
3,881,712 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Sweden 9.7% | ||
Sweden Government Bond | ||
5.00%, 12/01/20 (SEK) | 44,500,000 | 6,621,637 |
3.50%, 06/01/22 (SEK) | 74,165,000 | 10,643,551 |
3.50%, 03/30/39 (SEK) | 5,600,000 | 1,016,248 |
18,281,436 | ||
United Kingdom 12.8% | ||
United Kingdom Gilt | ||
3.75%, 09/07/21 (GBP) | 2,560,000 | 4,382,513 |
2.75%, 09/07/24 (GBP) | 2,250,000 | 3,677,122 |
5.00%, 03/07/25 (GBP) | 3,650,000 | 7,111,140 |
4.50%, 09/07/34 (GBP) | 2,000,000 | 4,079,395 |
4.25%, 09/07/39 (GBP) | 2,350,000 | 4,794,833 |
24,045,003 | ||
Total Government Bonds | ||
(Cost $160,357,362) | 151,179,138 | |
Supranational* 16.5% of net assets | ||
Asian Development Bank | ||
2.35%, 06/21/27 (JPY) | 750,000,000 | 7,692,123 |
European Investment Bank | ||
1.40%, 06/20/17 (JPY) | 940,000,000 | 8,121,738 |
European Union Notes | ||
2.75%, 06/03/16 (EUR) | 6,750,000 | 7,501,727 |
Nordic Investment Bank | ||
1.70%, 04/27/17 (JPY) | 890,000,000 | 7,705,069 |
Total Supranational | ||
(Cost $38,184,576) | 31,020,657 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.8% of net assets | ||
United States 1.8% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 3,320,343 | 3,320,343 |
Total Other Investment Company | ||
(Cost $3,320,343) | 3,320,343 |
At 03/31/15, the tax basis cost of the fund's investments was $203,972,352 and the unrealized appreciation and depreciation were $2,645,260 and ($21,097,474), respectively, with a net unrealized depreciation of ($18,452,214).
* | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. |
(a) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $8,189,419 or 4.4% of net assets. |
(b) | The rate shown is the 7-day yield. |
AUD – | Australian dollar |
EUR – | euro currency |
GBP – | Great British pound |
JPY – | Japanese yen |
MXN – | Mexican peso |
MYR – | Malaysian ringgit |
NZD – | New Zealand dollar |
PLN – | Polish zloty |
SEK – | Swedish krona |
USD – | U.S. dollar |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/30/2015 | State Street Bank & Trust Co. | AUD | 10,684,500 | USD | 8,124,718 | (196,189) | ||||||
04/30/2015 | State Street Bank & Trust Co. | JPY | 128,893,500 | USD | 1,075,108 | (1,426) | ||||||
04/30/2015 | State Street Bank & Trust Co. | JPY | 163,211,500 | USD | 1,361,357 | (16,727) | ||||||
04/30/2015 | State Street Bank & Trust Co. | JPY | 1,768,228,000 | USD | 14,748,891 | (286,549) | ||||||
04/30/2015 | State Street Bank & Trust Co. | NZD | 940,500 | USD | 701,207 | (1,524) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 8,124,718 | AUD | 10,684,500 | 353,379 | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 8,813,954 | JPY | 1,056,695,000 | (7,707) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 1,048,112 | JPY | 125,657,000 | 9,181 | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 98,415 | NZD | 132,000 | (4,034) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 8,799,949 | NZD | 11,803,000 | (67,263) | ||||||
Net Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | (218,859) |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Government Bonds1 | $— | $151,179,138 | $— | $151,179,138 | |||||
Supranational | — | 31,020,657 | — | 31,020,657 | |||||
Other Investment Company1 | 3,320,343 | — | — | 3,320,343 | |||||
Total | $3,320,343 | $182,199,795 | $— | $185,520,138 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $362,560 | $— | $362,560 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($581,419) | $— | ($581,419) |
1 | As categorized in Portfolio Holdings. |
2 | Forward foreign currency exchange contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation. |
Assets | ||
Investments, at value (cost $201,862,281) | $185,520,138 | |
Foreign currency, at value (cost $52,294) | 52,270 | |
Receivables: | ||
Interest | 1,988,148 | |
Fund shares sold | 464,274 | |
Foreign tax reclaims | 128,241 | |
Unrealized appreciation on forward foreign currency exchange contracts | 362,560 | |
Prepaid expenses | + | 1,568 |
Total assets | 188,517,199 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 380,830 | |
Investment adviser fees | 20,212 | |
Independent trustees' fees | 16,119 | |
Unrealized depreciation on forward foreign currency exchange contracts | 581,419 | |
Accrued expenses | + | 130,302 |
Total liabilities | 1,128,882 | |
Net Assets | ||
Total assets | 188,517,199 | |
Total liabilities | – | 1,128,882 |
Net assets | $187,388,317 | |
Net Assets by Source | ||
Capital received from investors | 210,906,706 | |
Distributions in excess of net investment income | (8,640,739) | |
Net realized capital gains | 1,905,719 | |
Net unrealized capital depreciation | (16,783,369) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$187,388,317 | 19,823,826 | $9.45 | ||
Investment Income | ||
Interest | $6,195,201 | |
Expenses | ||
Investment adviser fees | 1,743,674 | |
Custodian fees | 102,783 | |
Transfer agent fees | 102,248 | |
Professional fees | 89,692 | |
Accounting and administration fees | 57,665 | |
Registration fees | 55,664 | |
Shareholder reports | 36,614 | |
Independent trustees' fees | 14,134 | |
Interest expense | 1,597 | |
Other expenses | + | 12,384 |
Total expenses | 2,216,455 | |
Expense reduction by adviser | – | 63,797 |
Net expenses | – | 2,152,658 |
Net investment income | 4,042,543 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (4,156,452) | |
Net realized losses on foreign currency transactions | + | (2,720,553) |
Net realized losses | (6,877,005) | |
Net change in unrealized appreciation (depreciation) on investments | (20,100,893) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 3,368,666 |
Net change in unrealized appreciation (depreciation) | + | (16,732,227) |
Net realized and unrealized losses | (23,609,232) | |
Decrease in net assets resulting from operations | ($19,566,689) |
Operations | |||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||
Net investment income | $4,042,543 | $9,876,457 | |
Net realized losses | (6,877,005) | (27,024,141) | |
Net change in unrealized appreciation (depreciation) | + | (16,732,227) | 12,341,763 |
Decrease in net assets from operations | (19,566,689) | (4,805,921) | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($10,072,652) | ($3,960,271) |
Transactions in Fund Shares | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 5,605,938 | $58,248,799 | 27,345,555 | $294,220,955 | |
Shares reinvested | 583,662 | 5,859,964 | 100,641 | 1,079,879 | |
Shares redeemed | + | (46,319,811) | (499,728,433) | (34,800,669) | (375,122,134) |
Net transactions in fund shares | (40,130,211) | ($435,619,670) | (7,354,473) | ($79,821,300) | |
Shares Outstanding and Net Assets | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 59,954,037 | $652,647,328 | 67,308,510 | $741,234,820 | |
Total decrease | + | (40,130,211) | (465,259,011) | (7,354,473) | (88,587,492) |
End of period | 19,823,826 | $187,388,317 | 59,954,037 | $652,647,328 | |
Distributions in excess of net investment income | ($8,640,739) | ($5,533,417) |
4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 7/10/12 1– 3/31/13 | ||||
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 9.30 | 9.61 | 10.00 | |||
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.17 2 | 0.13 2 | 0.11 | |||
Net realized and unrealized gains (losses) | (0.76) | (0.38) | (0.40) | |||
Total from investment operations | (0.59) | (0.25) | (0.29) | |||
Less distributions: | ||||||
Distributions from net investment income | — | (0.03) | (0.09) | |||
Distributions from net realized gains | — | (0.03) | (0.01) | |||
Total distributions | — | (0.06) | (0.10) | |||
Net asset value at end of period | 8.71 | 9.30 | 9.61 | |||
Total return (%) | (6.34) | (2.60) | (2.95) 3 | |||
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.85 | 0.85 | 0.22 4,5 | |||
Gross operating expenses | 1.76 | 1.74 | 1.28 4 | |||
Net investment income (loss) | 1.80 | 1.40 | 1.56 4 | |||
Portfolio turnover rate | 62 | 42 | 73 3 | |||
Net assets, end of period ($ x 1,000) | 13,394 | 18,575 | 29,074 | |||
Holdings by Category | Cost ($) | Value ($) | |
63.6% | Government Bonds | 9,857,090 | 8,520,946 |
33.9% | U.S. Government Securities | 4,471,273 | 4,534,596 |
1.3% | Other Investment Company | 178,669 | 178,669 |
1.4% | Short-Term Investment | 183,987 | 183,995 |
100.2% | Total Investments | 14,691,019 | 13,418,206 |
(0.2)% | Other Assets and Liabilities, Net | (24,143) | |
100.0% | Net Assets | 13,394,063 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 63.6% of net assets | ||
Australia 1.6% | ||
Australia Government Bond | ||
5.25%, 03/15/19 (AUD) | 63,000 | 54,416 |
5.75%, 05/15/21 (AUD) | 116,000 | 107,546 |
4.75%, 04/21/27 (AUD) | 57,000 | 53,809 |
215,771 | ||
Brazil 4.4% | ||
Brazil Notas do Tesouro Nacional | ||
10.00%, 01/01/17 (BRL) | 569,000 | 166,697 |
10.00%, 01/01/21 (BRL) | 701,000 | 194,016 |
10.00%, 01/01/23 (BRL) | 800,000 | 210,415 |
10.00%, 01/01/25 (BRL) | 95,000 | 24,044 |
595,172 | ||
Colombia 1.4% | ||
Colombia Government International Bond | ||
7.75%, 04/14/21 (COP) | 113,000,000 | 48,872 |
Colombian TES | ||
5.00%, 11/21/18 (COP) | 77,600,000 | 29,487 |
7.00%, 05/04/22 (COP) | 54,000,000 | 21,316 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
10.00%, 07/24/24 (COP) | 103,000,000 | 47,682 |
6.00%, 04/28/28 (COP) | 100,000,000 | 33,658 |
181,015 | ||
Germany 10.3% | ||
Bundesobligation | ||
0.50%, 10/13/17 (EUR) | 130,000 | 142,420 |
0.50%, 02/23/18 (EUR) | 592,000 | 650,045 |
Bundesrepublik Deutschland | ||
2.50%, 01/04/21 (EUR) | 236,000 | 291,538 |
3.25%, 07/04/42 (EUR) | 165,000 | 297,319 |
1,381,322 | ||
Indonesia 1.2% | ||
Indonesia Treasury Bond | ||
5.63%, 05/15/23 (IDR) | 900,000,000 | 61,675 |
8.38%, 03/15/34 (IDR) | 1,170,000,000 | 95,404 |
157,079 | ||
Japan 13.4% | ||
Japan Government Ten Year Bond | ||
1.70%, 03/20/17 (JPY) | 6,400,000 | 55,106 |
1.40%, 03/20/18 (JPY) | 57,300,000 | 496,752 |
0.80%, 09/20/20 (JPY) | 60,700,000 | 524,254 |
0.60%, 03/20/24 (JPY) | 31,450,000 | 268,643 |
Japan Government Thirty Year Bond | ||
1.70%, 03/20/44 (JPY) | 50,200,000 | 453,951 |
1,798,706 | ||
Malaysia 3.0% | ||
Malaysia Government Bond | ||
3.31%, 10/31/17 (MYR) | 590,000 | 159,239 |
4.24%, 02/07/18 (MYR) | 30,000 | 8,286 |
3.42%, 08/15/22 (MYR) | 330,000 | 86,771 |
4.18%, 07/15/24 (MYR) | 432,000 | 118,943 |
3.84%, 04/15/33 (MYR) | 130,000 | 33,258 |
406,497 | ||
Mexico 7.2% | ||
Mexico Government Bond | ||
8.00%, 12/17/15 (MXN) | 357,500 | 24,210 |
7.25%, 12/15/16 (MXN) | 100,000 | 6,930 |
6.50%, 06/10/21 (MXN) | 5,344,000 | 368,350 |
8.00%, 12/07/23 (MXN) | 3,490,000 | 261,488 |
7.50%, 06/03/27 (MXN) | 1,500,000 | 109,380 |
10.00%, 11/20/36 (MXN) | 2,050,000 | 190,211 |
960,569 | ||
New Zealand 3.3% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 217,000 | 174,354 |
5.50%, 04/15/23 (NZD) | 301,000 | 261,118 |
435,472 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Peru 0.6% | ||
Peru Government Bond | ||
7.84%, 08/12/20 (PEN) | 210,000 | 77,484 |
5.20%, 09/12/23 (PEN) | 20,000 | 6,311 |
83,795 | ||
Poland 3.4% | ||
Poland Government Bond | ||
5.50%, 04/25/15 (PLN) | 100,000 | 26,452 |
4.75%, 04/25/17 (PLN) | 310,000 | 87,016 |
5.25%, 10/25/20 (PLN) | 427,000 | 132,066 |
5.75%, 09/23/22 (PLN) | 640,000 | 210,937 |
456,471 | ||
Qatar 1.0% | ||
Qatar Government International Bond | ||
5.25%, 01/20/20 (USD) (a) | 120,000 | 136,350 |
Russia 1.9% | ||
Russian Federal Bond - OFZ | ||
7.50%, 03/15/18 (RUB) | 3,100,000 | 47,672 |
7.60%, 04/14/21 (RUB) | 8,500,000 | 119,540 |
8.15%, 02/03/27 (RUB) | 6,800,000 | 91,368 |
258,580 | ||
South Africa 1.8% | ||
South Africa Government Bond | ||
7.25%, 01/15/20 (ZAR) | 477,000 | 39,311 |
10.50%, 12/21/26 (ZAR) | 1,040,000 | 103,803 |
6.25%, 03/31/36 (ZAR) | 1,530,000 | 100,512 |
243,626 | ||
Turkey 1.0% | ||
Turkey Government Bond | ||
6.30%, 02/14/18 (TRY) | 30,000 | 10,975 |
8.50%, 07/10/19 (TRY) | 80,000 | 31,075 |
7.10%, 03/08/23 (TRY) | 250,000 | 89,703 |
131,753 | ||
United Kingdom 8.1% | ||
United Kingdom Gilt | ||
2.75%, 09/07/24 (GBP) | 280,000 | 457,597 |
4.25%, 12/07/27 (GBP) | 220,000 | 418,221 |
4.50%, 09/07/34 (GBP) | 99,500 | 202,950 |
1,078,768 | ||
Total Government Bonds | ||
(Cost $9,857,090) | 8,520,946 | |
U.S. Government Securities 33.9% of net assets | ||
United States 33.9% | ||
U.S. Treasury Bond | ||
3.38%, 05/15/44 (USD) | 300,000 | 351,492 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
U.S. Treasury Notes | ||
1.25%, 04/30/19 (USD) | 690,000 | 690,916 |
3.63%, 08/15/19 (USD) | 670,000 | 736,896 |
1.00%, 08/31/19 (USD) | 242,000 | 238,975 |
2.13%, 08/31/20 (USD) | 540,000 | 558,394 |
3.63%, 02/15/21 (USD) | 915,000 | 1,021,440 |
2.13%, 08/15/21 (USD) | 753,000 | 775,119 |
2.50%, 05/15/24 (USD) | 153,600 | 161,364 |
Total U.S. Government Securities | ||
(Cost $4,471,273) | 4,534,596 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.3% of net assets | ||
United States 1.3% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c) | 178,669 | 178,669 |
Total Other Investment Company | ||
(Cost $178,669) | 178,669 | |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Short-Term Investment 1.4% of net assets | ||
United States 1.4% | ||
U.S. Treasury Bill | ||
0.03%, 06/11/15 (USD) (b) | 184,000 | 183,995 |
Total Short-Term Investment | ||
(Cost $183,987) | 183,995 |
(a) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $136,350 or 1.0% of net assets. |
(b) | The rate shown is the purchase yield. |
(c) | The rate shown is the 7-day yield. |
AUD – | Australian dollar |
BRL – | Brazilian real |
CLP – | Chilean peso |
CNY – | Chinese yuan renminbi |
COP – | Colombian peso |
EUR – | euro currency |
GBP – | Great British pound |
IDR – | Indonesian rupiah |
JPY – | Japanese yen |
MXN – | Mexican peso |
MYR – | Malaysian ringgit |
NZD – | New Zealand dollar |
PEN – | Peruvian nuevo sol |
PLN – | Polish zloty |
RUB – | Russian ruble |
SEK – | Swedish krona |
TRY – | Turkish lira |
USD – | U.S. dollar |
ZAR – | South African rand |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/30/2015 | JPMorgan Chase Bank | CLP | 56,368,500 | USD | 90,060 | 408 | ||||||
04/30/2015 | JPMorgan Chase Bank | CNY | 1,310,500 | USD | 210,676 | 52 | ||||||
04/30/2015 | State Street Bank & Trust Co. | EUR | 510,500 | USD | 549,117 | (35,586) | ||||||
04/30/2015 | State Street Bank & Trust Co. | JPY | 162,915,000 | USD | 1,358,883 | (26,884) | ||||||
04/30/2015 | State Street Bank & Trust Co. | JPY | 9,340,500 | USD | 77,910 | (247) | ||||||
04/30/2015 | Barclays Capital, Inc. | RUB | 2,868,500 | USD | 48,665 | 7,147 | ||||||
04/30/2015 | JPMorgan Chase Bank | RUB | 1,702,000 | USD | 28,875 | (470) | ||||||
04/30/2015 | State Street Bank & Trust Co. | SEK | 9,250,500 | USD | 1,074,551 | (32,829) | ||||||
04/30/2015 | Barclays Capital, Inc. | USD | 90,060 | CLP | 56,368,500 | (827) | ||||||
04/30/2015 | Barclays Capital, Inc. | USD | 10,530 | CNY | 65,500 | 47 | ||||||
04/30/2015 | Barclays Capital, Inc. | USD | 14,227 | CNY | 88,500 | 57 | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 312,106 | JPY | 37,418,000 | (273) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 56,778 | JPY | 6,807,000 | (103) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 72,008 | JPY | 8,633,000 | 495 | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 107,735 | NZD | 144,500 | (255) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 3,355 | NZD | 4,500 | (117) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 323,204 | NZD | 433,500 | (2,470) | ||||||
04/30/2015 | State Street Bank & Trust Co. | USD | 4,846 | NZD | 6,500 | 93 | ||||||
04/30/2015 | JPMorgan Chase Bank | USD | 11,715 | RUB | 690,500 | 63 | ||||||
04/30/2015 | JPMorgan Chase Bank | USD | 15,761 | RUB | 929,000 | (849) | ||||||
04/30/2015 | Barclays Capital, Inc. | USD | 38,138 | RUB | 2,248,000 | (3,334) | ||||||
04/30/2015 | JPMorgan Chase Bank | USD | 11,927 | RUB | 703,000 | 310 | ||||||
04/30/2015 | State Street Bank & Trust Co. | ZAR | 3,840,788 | NZD | 442,500 | (14,699) | ||||||
04/30/2015 | State Street Bank & Trust Co. | ZAR | 38,035 | NZD | 4,500 | (234) | ||||||
04/30/2015 | State Street Bank & Trust Co. | NZD | 447,000 | ZAR | 3,950,198 | 9,075 | ||||||
Net Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | (101,430) |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Government Bonds1 | $— | $8,520,946 | $— | $8,520,946 | |||||
U.S. Government Securities1 | — | 4,534,596 | — | 4,534,596 | |||||
Other Investment Company1 | 178,669 | — | — | 178,669 | |||||
Short-Term Investment1 | — | 183,995 | — | 183,995 | |||||
Total | $178,669 | $13,239,537 | $— | $13,418,206 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $17,747 | $— | $17,747 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($119,177) | $— | ($119,177) |
1 | As categorized in Portfolio Holdings. |
2 | Forward foreign currency exchange contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation. |
Assets | ||
Investments, at value (cost $14,691,019) | $13,418,206 | |
Foreign currency, at value (cost $12,994) | 13,067 | |
Receivables: | ||
Investments sold | 45,750 | |
Interest | 129,103 | |
Foreign tax reclaims | 4,517 | |
Due from investment adviser | 1,492 | |
Fund shares sold | 35 | |
Unrealized appreciation on forward foreign currency exchange contracts | 17,747 | |
Prepaid expenses | + | 73 |
Total assets | 13,629,990 | |
Liabilities | ||
Payables: | ||
Investments bought | 21,889 | |
Fund shares redeemed | 3,886 | |
Foreign capital gains tax | 1,267 | |
Independent trustees' fees | 12 | |
Unrealized depreciation on forward foreign currency exchange contracts | 119,177 | |
Accrued expenses and other liabilities | + | 89,696 |
Total liabilities | 235,927 | |
Net Assets | ||
Total assets | 13,629,990 | |
Total liabilities | – | 235,927 |
Net assets | $13,394,063 | |
Net Assets by Source | ||
Capital received from investors | 15,381,380 | |
Net investment loss | (555,957) | |
Net realized capital losses | (48,889) | |
Net unrealized capital depreciation | (1,382,471) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$13,394,063 | 1,538,553 | $8.71 | ||
Investment Income | ||
Interest (net of foreign withholding taxes of $2,136) | $434,373 | |
Expenses | ||
Investment adviser fees | 111,400 | |
Professional fees | 56,764 | |
Accounting and administration fees | 25,523 | |
Transfer agent fees | 21,431 | |
Registration fees | 20,796 | |
Sub-accounting and sub-transfer agent fees | 15,847 | |
Custodian fees | 14,549 | |
Shareholder reports | 9,821 | |
Independent trustees' fees | 8,700 | |
Other expenses | + | 4,174 |
Total expenses | 289,005 | |
Expense reduction by adviser | – | 149,778 |
Net expenses | – | 139,227 |
Net investment income | 295,146 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of $667) | (1,036,607) | |
Net realized losses on foreign currency transactions | + | (143,496) |
Net realized losses | (1,180,103) | |
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gain tax of ($1,267)) | (70,592) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (28,353) |
Net change in unrealized appreciation (depreciation) | + | (98,945) |
Net realized and unrealized losses | (1,279,048) | |
Decrease in net assets resulting from operations | ($983,902) |
Operations | |||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||
Net investment income | $295,146 | $317,814 | |
Net realized losses | (1,180,103) | (497,807) | |
Net change in unrealized appreciation (depreciation) | + | (98,945) | (571,596) |
Decrease in net assets from operations | (983,902) | (751,589) | |
Distributions to Shareholders | |||
Distributions from net investment income | — | (73,125) | |
Distributions from net realized gains | + | — | (59,386) |
Total distributions | $— | ($132,511) |
Transactions in Fund Shares | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 68,075 | $617,461 | 45,080 | $421,460 | |
Shares reinvested | — | — | 11,634 | 106,922 | |
Shares redeemed | + | (526,298) | (4,814,778) | (1,085,889) | (10,143,400) |
Net transactions in fund shares | (458,223) | ($4,197,317) | (1,029,175) | ($9,615,018) | |
Shares Outstanding and Net Assets | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 1,996,776 | $18,575,282 | 3,025,951 | $29,074,400 | |
Total decrease | + | (458,223) | (5,181,219) | (1,029,175) | (10,499,118) |
End of period | 1,538,553 | $13,394,063 | 1,996,776 | $18,575,282 | |
Distributions in excess of net investment income/Net investment income not yet distributed | ($555,957) | $18,696 |
Laudus Mondrian International Equity Fund |
Laudus Mondrian Emerging Markets Fund |
Laudus Mondrian International Government Fixed Income Fund |
Laudus Mondrian Global Government Fixed Income Fund |
Laudus U.S. Large Cap Growth Fund |
Laudus Mondrian International Equity Fund | 0.75%* |
Laudus Mondrian Emerging Markets Fund | 1.00%* |
Laudus Mondrian International Government Fixed Income Fund | 0.60% |
Laudus Mondrian Global Government Fixed Income Fund | 0.68% |
First $1 billion | Over $1 billion | ||
Laudus Mondrian International Equity Fund | 0.85% | 0.80% | |
Laudus Mondrian Emerging Markets Fund | 1.20% | 1.15% |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | ||
Investor Shares | 1.30% | 1.60% | |
Select Shares | 1.05% | 1.35% | |
Institutional Shares | 0.90% | 1.20% |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | ||
Investor Shares | 1.40% | 1.80% | |
Select Shares | 1.12% | 1.52% | |
Institutional Shares | 1.05% | 1.45% |
Laudus Mondrian Emerging Markets Fund | |
Investor Shares | $261 |
Select Shares | 2,818 |
Institutional Shares | — |
Expiration Date | Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
March 31, 2016 | $27,318 | $108,442 | $— | $202,019 | ||||
March 31, 2017 | 82,813* | 53,246 | 63,797 | 149,778 | ||||
Total | $110,131 | $161,688 | $63,797 | $351,797 |
* | Includes sub-accounting and sub-transfer agent waivers of $454 for Select Shares. |
Purchases of Securities | Sales/Maturities of Securities | ||
Laudus Mondrian International Equity Fund | $41,268,111 | $131,361,486 | |
Laudus Mondrian Emerging Markets Fund | 273,259,859 | 64,059,991 | |
Laudus Mondrian International Government Fixed Income Fund | 144,332,823 | 574,252,196 | |
Laudus Mondrian Global Government Fixed Income Fund | 10,022,323* | 14,040,663* |
* | Includes purchases and sales/maturities of long-term U.S. Government securities of $1,610,296 and $3,706,105, respectively. |
Forward Foreign Currency Exchange Contract Notional Amount | Net Unrealized Appreciation (Depreciation) | ||
Laudus Mondrian International Equity Fund | $2,345,829 | $23,149 | |
Laudus Mondrian Emerging Markets Fund | 4,901 | (1) | |
Laudus Mondrian International Government Fixed Income Fund | 44,301,264 | 38,852 | |
Laudus Mondrian Global Government Fixed Income Fund | 1,968,236 | (25,825) |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||||||||
Asset Derivatives | Fair Value | ||||||||||||
Forward Foreign Currency Exchange Contracts1 | $— | $— | $362,560 | $17,747 | |||||||||
Liability Derivatives | Fair Value | ||||||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $— | $581,419 | $119,177 |
1 | Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts. |
2 | Statement of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts. |
Forward Foreign Currency Exchange Contracts | |||||||
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Realized Gains (Losses)1 | ($50,206) | $10,604 | ($2,586,291) | ($128,783) | |||
Change in Unrealized Appreciation (Depreciation)2 | $225,108 | $— | $3,719,392 | ($16,803) |
1 | Statement of Operations location: Net realized gains (losses) on foreign currency transactions. |
2 | Statement of Operations location: Net change in unrealized appreciation (depreciation) on foreign currency translations. |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||
Counterparty | Gross Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amounts(a) | ||||
State Street Bank & Trust Co. | $362,560 | ($362,560) | $— | $— | ||||
Total | $362,560 | ($362,560) | $— | $— | ||||
Counterparty | Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | ||||
State Street Bank & Trust Co. | ($581,419) | $362,560 | $— | ($218,859) | ||||
Total | ($581,419) | $362,560 | $— | ($218,859) |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||
Counterparty | Gross Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amounts(a) | ||||
Barclays Capital, Inc. | $7,251 | ($4,161) | $— | $3,090 | ||||
JPMorgan Chase Bank | 833 | (833) | — | — | ||||
State Street Bank & Trust Co. | 9,663 | (9,663) | — | — | ||||
Total | $17,747 | ($14,657) | $— | $3,090 | ||||
Counterparty | Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | ||||
Barclays Capital, Inc. | ($4,161) | $4,161 | $— | $— | ||||
JPMorgan Chase Bank | (1,319) | 833 | — | (486) | ||||
State Street Bank & Trust Co. | (113,697) | 9,663 | — | (104,034) | ||||
Total | ($119,177) | $14,657 | $— | ($104,520) |
a | Represents the net amount due from the counterparty in the event of default. |
b | Represents the net amount due to the counterparty in the event of default. |
Current Period (4/1/14-3/31/15) | Prior Period (4/1/13-3/31/14) | ||
Laudus Mondrian International Equity Fund | $1,887 | $2,137 | |
Laudus Mondrian Emerging Markets Fund | 284 | 4,579 | |
Laudus Mondrian International Government Fixed Income Fund | 23,361 | 34,469 | |
Laudus Mondrian Global Government Fixed Income Fund | 29 | 64 |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Undistributed ordinary income | $238,502 | $— | $— | $— | |||
Undistributed long-term capital gains | 2,605,982 | — | 2,052,688 | — | |||
Unrealized appreciation on investments | 16,750,087 | 31,362,399 | 2,645,260 | 167,362 | |||
Unrealized depreciation on investments | (2,323,161) | (77,403,596) | (21,097,474) | (1,533,673) | |||
Other unrealized appreciation (depreciation) | (19,723) | (11,515) | (222,367) | (8,474) | |||
Net unrealized appreciation (depreciation) | $14,407,203 | ($46,052,712) | ($18,674,581) | ($1,374,785) |
Expiration Date | Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
No expiration* | $— | $13,226,961 | $— | $42,114 | ||||
Total | $— | $13,226,961 | $— | $42,114 |
* | As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Late-year ordinary losses deferred | $— | $955,541 | $6,896,496 | $570,418 | |||
Capital loss carryforwards utilized | 632,516 | — | — | — |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Current period distributions | |||||||
Ordinary income | $6,674,077 | $3,818,026 | $— | $— | |||
Long-term capital gains | 9,624,246 | — | 10,072,652 | — | |||
Return of capital | — | — | — | — | |||
Prior period distributions | |||||||
Ordinary income | $4,184,531 | $1,824,105 | $— | $73,125 | |||
Long-term capital gains | — | 26,554 | 3,960,271 | 59,386 | |||
Return of capital | — | — | — | — |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Capital shares | $538,880 | $16,459,657 | ($9,784,840) | ($299,288) | |||
Undistributed net investment income | (65,236) | (1,414,788) | (7,149,865) | (869,799) | |||
Net realized capital gains (losses) | (473,644) | (15,044,869) | 16,934,705 | 1,169,087 |
Before Reorganization | After Reorganization | ||||
Laudus Mondrian International Equity Fund | Laudus Mondrian Institutional International Equity Fund | Laudus Mondrian International Equity Fund | |||
Shares: | |||||
Investor Shares | 381,366 | — | 381,366 | ||
Select Shares | 393,197 | — | 393,197 | ||
Institutional Shares | 9,187,320 | 3,423,907 | 13,601,967 | ||
Net Assets: | |||||
Investor Shares | $2,421,149 | — | $2,421,149 | ||
Select Shares | $2,507,548 | — | $2,507,548 | ||
Institutional Shares | $58,760,401 | $28,253,737 | $87,014,138 | ||
Net Assets Value: | |||||
Investor Shares | $6.35 | — | $6.35 | ||
Select Shares | $6.38 | — | $6.38 | ||
Institutional Shares | $6.40 | $8.25 | $6.40 | ||
Net unrealized appreciation (depreciation) | $13,154,935 | $2,977,165 | $16,132,100 | ||
Market value of investments | $62,931,041 | $27,476,348 | $90,407,389 | ||
Cost of investments | $49,767,788 | $24,498,048 | $74,265,836 |
Before Reorganization | After Reorganization | ||||
Laudus Mondrian Emerging Markets Fund | Laudus Mondrian Institutional Emerging Markets Fund | Laudus Mondrian Emerging Markets Fund | |||
Shares: | |||||
Investor Shares | 679,482 | — | 679,482 | ||
Select Shares | 1,280,655 | — | 1,280,655 | ||
Institutional Shares | 15,962,866 | 50,218,046 | 64,489,042 | ||
Net Assets: | |||||
Investor Shares | $5,711,393 | — | $5,711,393 | ||
Select Shares | $10,765,978 | — | $10,765,978 | ||
Institutional Shares | $134,048,107 | $407,621,233 | $541,669,340 | ||
Net Assets Value: | |||||
Investor Shares | $8.41 | — | $8.41 | ||
Select Shares | $8.41 | — | $8.41 | ||
Institutional Shares | $8.40 | $8.12 | $8.40 | ||
Net unrealized appreciation (depreciation) | $6,910,189 | ($25,597,196) | ($18,687,007) | ||
Market value of investments | $150,728,589 | $228,305,848 | $379,034,437 | ||
Cost of investments | $143,818,226 | $253,903,511 | $397,721,737 |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | ||
Net investment income | $4,491,139* | $9,482,939* | |
Net realized gains (losses) on investments | $16,492,718 | ($2,502,783) | |
Net unrealized appreciation (depreciation) on investments | ($21,053,058) | ($26,917,278) | |
Net decrease in net assets resulting from operations | ($69,201) | ($19,937,122) |
Laudus Mondrian International Equity Fund
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Government Fixed Income Fund
Laudus Mondrian Global Government Fixed Income Fund
San Francisco, California
May 18, 2015
Foreign Tax Credit | Foreign Source Income | ||
Laudus Mondrian International Equity Fund | $435,554 | $5,433,791 | |
Laudus Mondrian Emerging Markets Fund | 643,923 | 6,428,322 | |
Laudus Mondrian International Government Fixed Income Fund | — | — | |
Laudus Mondrian Global Government Fixed Income Fund | — | — |
Percentage | |
Laudus Mondrian International Equity Fund | — |
Laudus Mondrian Emerging Markets Fund | 2.25 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $7,109,631 |
Laudus Mondrian Emerging Markets Fund | 4,461,949 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $9,624,246 |
Laudus Mondrian Emerging Markets Fund | — |
Laudus Mondrian International Government Fixed Income Fund | 10,072,652 |
Laudus Mondrian Global Government Fixed Income Fund | — |
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present). | 74 | Director, Gilead Sciences, Inc. (2005 – present) |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Private Investor. | 74 | Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present) |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013) | 74 | Director, KLA-Tencor Corporation (2008 – present) |
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015) | Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014). | 95 | None. |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present). | 74 | Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012) |
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present). | 74 | Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present). | 74 | Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present) |
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present). | 95 | Director, The Charles Schwab Corporation (2008 – present) |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010). |
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006) | Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present). |
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009). |
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008). |
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs. |
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005) | Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present). |
1 | Trustees remain in office until they resign, retire or are removed by shareholder vote. The Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Laudus Funds who also serves as an independent trustee of Schwab Funds to retire from the Boards of Laudus Funds upon their required retirement date from either the Boards of Trustees of Laudus Funds or Schwab Funds, whichever comes first. |
2 | Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser. |
3 | The President, Treasurer and Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
INFORMATION.
INFORMATION.
Partnership
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g794230laudusbw.jpg)
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00141026
Table of Contents
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g930646laudusbw.jpg)
Total Return for the Twelve Months Ended March 31, 2015 | |
Laudus U.S. Large Cap Growth Fund (Ticker Symbol: LGILX) | 14.99% |
Russell 1000® Growth Index | 16.09% |
Performance Details | pages 4-5 |
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g930646pchandom.jpg)
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g930646schandom.jpg)
Fund Characteristics | |
Number of Securities1 | 54 |
Weighted Average Market Cap (millions) | $117,999 |
Price/Earnings Ratio (P/E) | 30.95 |
Price/Book Ratio (P/B) | 4.53 |
Portfolio Turnover (One year trailing) | 102% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 10/14/1997* |
Ticker Symbol | LGILX |
Cusip | 51855Q549 |
NAV | $17.22 |
* | Inception date is that of the fund’s predecessor fund, the Y Class of the UBS U.S. Large Cap Growth Fund. |
1 | Short-term investments are not included. |
Performance of Hypothetical
$10,000 Investment1
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g930646img95e9d7271.jpg)
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Laudus U.S. Large Cap Growth Fund (10/14/97)1 | 14.99% | 15.76% | 11.39% |
Russell 1000® Growth Index | 16.09% | 15.63% | 9.36% |
Information Technology | 36.9% |
Health Care | 23.1% |
Consumer Discretionary | 20.4% |
Financials | 6.5% |
Industrials | 5.6% |
Consumer Staples | 4.0% |
Energy | 2.8% |
Materials | 0.7% |
Total | 100.0% |
Apple, Inc. | 5.3% |
Facebook, Inc., Class A | 4.6% |
United Therapeutics Corp. | 3.8% |
Visa, Inc., Class A | 3.8% |
Vertex Pharmaceuticals, Inc. | 3.3% |
Google, Inc., Class A | 3.1% |
Twenty-First Century Fox, Inc., Class A | 3.1% |
AbbVie, Inc. | 3.0% |
Union Pacific Corp. | 2.8% |
salesforce.com, Inc. | 2.8% |
Total | 35.6% |
1 | Effective July 13, 2009, all outstanding Class A, B and C shares of the UBS U.S. Large Cap Growth Fund (UBS Growth Fund) were converted to Class Y shares, and the UBS Growth Fund’s assets were acquired by the Laudus Growth Investors U.S. Large Cap Growth Fund. The performance and financial history prior to July 13, 2009 are that of the Class Y shares of the predecessor fund. Effective October 4, 2013, the name of the fund was changed to Laudus U.S. Large Cap Growth Fund. |
2 | As stated in the prospectus. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
3 | This list is not a recommendation of any security by the investment adviser or subadviser. |
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
Expense Ratio1 (Annualized) | Beginning Account Value at 10/1/4 | Ending Account Value (Net of Expenses) at 3/31/15 | Expenses Paid During Period2 10/1/14-3/31/15 | |
Laudus U.S. Large Cap Growth Fund | ||||
Actual Return | 0.77% | $1,000.00 | $1,092.90 | $ 4.02 |
Hypothetical 5% Return | 0.77% | $1,000.00 | $ 1,021.06 | $3.88 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. |
4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | 4/1/10– 3/31/11 | ||
Per-Share Data ($) | ||||||
Net asset value at beginning of period | 18.19 | 15.58 | 14.83 | 13.36 | 11.23 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.01) | (0.02) | 0.02 | (0.02) | 0.01 | |
Net realized and unrealized gains (losses) | 2.44 | 3.85 | 1.01 | 1.77 | 2.13 | |
Total from investment operations | 2.43 | 3.83 | 1.03 | 1.75 | 2.14 | |
Less distributions: | ||||||
Distributions from net investment income | — | — | (0.02) | — | (0.01) | |
Distributions from net realized gains | (3.40) | (1.22) | (0.26) | (0.28) | — | |
Total distributions | (3.40) | (1.22) | (0.28) | (0.28) | (0.01) | |
Net asset value at end of period | 17.22 | 18.19 | 15.58 | 14.83 | 13.36 | |
Total return (%) | 14.99 | 24.81 | 7.09 | 13.58 | 19.07 | |
Ratios/Supplemental Data (%) | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.77 | 0.78 2 | 0.78 | 0.78 | 0.78 | |
Gross operating expenses | 0.77 | 0.78 | 0.82 | 0.88 | 0.94 | |
Net investment income (loss) | (0.06) | (0.12) | 0.13 | (0.17) | 0.06 | |
Portfolio turnover rate | 102 | 124 | 76 | 96 | 98 | |
Net assets, end of period ($ x 1,000) | 2,171,783 | 2,122,365 | 1,695,291 | 1,029,502 | 468,963 | |
Holdings by Category | Cost ($) | Value ($) | |
99.7% | Common Stock | 1,804,342,421 | 2,163,794,860 |
0.3% | Other Investment Company | 6,904,205 | 6,904,205 |
100.0% | Total Investments | 1,811,246,626 | 2,170,699,065 |
0.0% | Other Assets and Liabilities, Net | 1,084,207 | |
100.0% | Net Assets | 2,171,783,272 |
Security | Number of Shares | Value ($) |
Common Stock 99.7% of net assets | ||
Automobiles & Components 0.8% | ||
Delphi Automotive plc | 209,000 | 16,665,660 |
Banks 1.3% | ||
JPMorgan Chase & Co. | 464,263 | 28,125,053 |
Capital Goods 1.4% | ||
Precision Castparts Corp. | 139,716 | 29,340,360 |
Consumer Durables & Apparel 2.2% | ||
lululemon athletica, Inc. * | 435,624 | 27,888,648 |
NIKE, Inc., Class B | 204,454 | 20,512,870 |
48,401,518 | ||
Diversified Financials 4.1% | ||
Berkshire Hathaway, Inc., Class B * | 197,323 | 28,477,655 |
Discover Financial Services | 498,010 | 28,062,864 |
Moody's Corp. | 320,972 | 33,316,894 |
89,857,413 | ||
Energy 2.8% | ||
Concho Resources, Inc. * | 357,590 | 41,451,833 |
Pioneer Natural Resources Co. | 115,193 | 18,835,207 |
60,287,040 | ||
Food & Staples Retailing 1.6% | ||
CVS Health Corp. | 154,344 | 15,929,844 |
Whole Foods Market, Inc. | 375,533 | 19,557,759 |
35,487,603 |
Security | Number of Shares | Value ($) |
Food, Beverage & Tobacco 2.3% | ||
Constellation Brands, Inc., Class A * | 220,125 | 25,580,726 |
The Hershey Co. | 246,846 | 24,909,230 |
50,489,956 | ||
Health Care Equipment & Services 4.8% | ||
athenahealth, Inc. * | 82,166 | 9,809,799 |
Express Scripts Holding Co. * | 412,202 | 35,766,767 |
Humana, Inc. | 187,654 | 33,406,165 |
UnitedHealth Group, Inc. | 216,848 | 25,650,950 |
104,633,681 | ||
Materials 0.6% | ||
Ecolab, Inc. | 121,015 | 13,841,696 |
Media 7.1% | ||
Liberty Global plc, Class A * | 1,120,059 | 57,649,437 |
The Walt Disney Co. | 270,499 | 28,372,640 |
Twenty-First Century Fox, Inc., Class A | 1,983,028 | 67,105,667 |
153,127,744 | ||
Pharmaceuticals, Biotechnology & Life Sciences 18.2% | ||
AbbVie, Inc. | 1,118,607 | 65,483,254 |
Actavis plc * | 119,564 | 35,584,638 |
Mallinckrodt plc * | 205,266 | 25,996,939 |
Perrigo Co., plc | 273,083 | 45,208,890 |
Regeneron Pharmaceuticals, Inc. * | 59,277 | 26,762,380 |
United Therapeutics Corp. * | 481,283 | 82,990,034 |
Valeant Pharmaceuticals International, Inc. * | 218,636 | 43,425,482 |
Vertex Pharmaceuticals, Inc. * | 597,702 | 70,510,905 |
395,962,522 | ||
Real Estate 1.1% | ||
Crown Castle International Corp. | 281,969 | 23,273,721 |
Retailing 10.3% | ||
Dollar General Corp. * | 790,239 | 59,568,216 |
Netflix, Inc. * | 126,725 | 52,805,040 |
Restoration Hardware Holdings, Inc. * | 183,364 | 18,187,875 |
The Home Depot, Inc. | 335,078 | 38,068,211 |
TripAdvisor, Inc. * | 660,333 | 54,919,896 |
223,549,238 | ||
Software & Services 30.9% | ||
Alibaba Group Holding Ltd. ADR * | 265,780 | 22,123,527 |
Alliance Data Systems Corp. * | 178,074 | 52,754,422 |
Baidu, Inc. ADR * | 258,841 | 53,942,464 |
Facebook, Inc., Class A * | 1,209,882 | 99,470,449 |
Google, Inc., Class A * | 121,597 | 67,449,856 |
LinkedIn Corp., Class A * | 189,480 | 47,343,473 |
MasterCard, Inc., Class A | 329,103 | 28,431,208 |
Oracle Corp. | 1,047,922 | 45,217,834 |
salesforce.com, Inc. * | 904,451 | 60,426,371 |
Splunk, Inc. * | 331,753 | 19,639,778 |
Security | Number of Shares | Value ($) |
Tencent Holdings Ltd. | 2,089,500 | 39,679,405 |
Visa, Inc., Class A | 1,264,975 | 82,742,015 |
Workday, Inc., Class A * | 192,083 | 16,213,726 |
Yahoo! Inc. * | 776,703 | 34,512,798 |
669,947,326 | ||
Technology Hardware & Equipment 6.0% | ||
Apple, Inc. | 919,566 | 114,421,597 |
SanDisk Corp. | 233,522 | 14,856,670 |
129,278,267 | ||
Transportation 4.2% | ||
Spirit Airlines, Inc. * | 398,049 | 30,793,071 |
Union Pacific Corp. | 560,733 | 60,732,991 |
91,526,062 | ||
Total Common Stock | ||
(Cost $1,804,342,421) | 2,163,794,860 | |
Other Investment Company 0.3% of net assets | ||
Money Market Fund 0.3% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 6,904,205 | 6,904,205 |
Total Other Investment Company | ||
(Cost $6,904,205) | 6,904,205 |
At 03/31/15, the tax basis cost of the fund's investments was $1,816,841,487 and the unrealized appreciation and depreciation were $361,968,323 and ($8,110,745), respectively, with a net unrealized appreciation of $353,857,578.
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
ADR – | American Depositary Receipt |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Common Stock1 | $1,493,847,534 | $— | $— | $1,493,847,534 | |||||
Software & Services | 630,267,921 | 39,679,405 | — | 669,947,326 | |||||
Other Investment Company1 | 6,904,205 | — | — | 6,904,205 | |||||
Total | $2,131,019,660 | $39,679,405 | $— | $2,170,699,065 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $1,811,246,626) | $2,170,699,065 | |
Foreign currency, at value (cost $55) | 55 | |
Receivables: | ||
Fund shares sold | 7,247,734 | |
Dividends | 399,561 | |
Foreign tax reclaims | 782 | |
Prepaid expenses | + | 9,076 |
Total assets | 2,178,356,273 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 5,801,190 | |
Investment adviser fees | 260,926 | |
Independent trustees' fees | 2,921 | |
Accrued expenses | + | 507,964 |
Total liabilities | 6,573,001 | |
Net Assets | ||
Total assets | 2,178,356,273 | |
Total liabilities | – | 6,573,001 |
Net assets | $2,171,783,272 | |
Net Assets by Source | ||
Capital received from investors | 1,721,297,951 | |
Net investment loss | (1,768,988) | |
Net realized capital gains | 92,801,870 | |
Net unrealized capital appreciation | 359,452,439 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$2,171,783,272 | 126,122,579 | $17.22 | ||
Investment Income | ||
Dividends (net of foreign withholding taxes of $6,904) | $15,592,055 | |
Expenses | ||
Investment adviser fees | 13,630,017 | |
Sub-accounting and sub-transfer agent fees | 1,933,914 | |
Shareholder reports | 276,618 | |
Transfer agent fees | 267,567 | |
Registration fees | 171,178 | |
Recouped by adviser | 126,767 | |
Professional fees | 124,135 | |
Accounting and administration fees | 107,893 | |
Custodian fees | 82,927 | |
Independent trustees' fees | 40,782 | |
Interest expense | 1,724 | |
Other expenses | + | 46,980 |
Total expenses | – | 16,810,502 |
Net investment loss | (1,218,447) | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 298,155,733 | |
Net realized losses on foreign currency transactions | + | (92,505) |
Net realized gains | 298,063,228 | |
Net change in unrealized appreciation (depreciation) on investments | 10,195,243 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (330,377) |
Net change in unrealized appreciation (depreciation) | + | 9,864,866 |
Net realized and unrealized gains | 307,928,094 | |
Increase in net assets resulting from operations | $306,709,647 |
Operations | |||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||
Net investment loss | ($1,218,447) | ($2,189,321) | |
Net realized gains | 298,063,228 | 324,210,576 | |
Net change in unrealized appreciation (depreciation) | + | 9,864,866 | 67,843,321 |
Increase in net assets from operations | 306,709,647 | 389,864,576 | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($380,081,181) | ($122,741,907) |
Transactions in Fund Shares | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 25,502,047 | $453,837,486 | 37,369,472 | $659,401,136 | |
Shares reinvested | 21,694,327 | 343,421,201 | 5,110,428 | 90,199,053 | |
Shares redeemed | + | (37,735,284) | (674,468,404) | (34,646,063) | (589,648,901) |
Net transactions in fund shares | 9,461,090 | $122,790,283 | 7,833,837 | $159,951,288 | |
Shares Outstanding and Net Assets | |||||
4/1/14-3/31/15 | 4/1/13-3/31/14 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 116,661,489 | $2,122,364,523 | 108,827,652 | $1,695,290,566 | |
Total increase | + | 9,461,090 | 49,418,749 | 7,833,837 | 427,073,957 |
End of period | 126,122,579 | $2,171,783,272 | 116,661,489 | $2,122,364,523 | |
Net investment loss | ($1,768,988) | ($334,382) |
Laudus U.S. Large Cap Growth Fund |
Laudus Mondrian International Equity Fund |
Laudus Mondrian Emerging Markets Fund |
Laudus Mondrian International Government Fixed Income Fund |
Laudus Mondrian Global Government Fixed Income Fund |
Average daily net assets | |
First $500 million | 0.700% |
$500 million to $1 billion | 0.650% |
$1 billion to $1.5 billion | 0.600% |
$1.5 billion to $2 billion | 0.575% |
Over $2 billion | 0.550% |
Purchases of Securities | Sales/Maturities of Securities | |
$2,201,358,576 | $2,384,320,163 |
Forward Foreign Currency Exchange Contract Notional Amount | Net Unrealized Appreciation (Depreciation) | ||
Laudus U.S. Large Cap Growth Fund | $6,132,076 | $28,477 |
Forward Foreign Currency Exchange Contracts | |
Realized Gains (Losses)1 | ($139,354) |
Change in Unrealized Appreciation (Depreciation)2 | ($331,566) |
1 | Statement of Operations location: Net realized gains (losses) on foreign currency transactions. |
2 | Statement of Operations location: Net change in unrealized appreciation (depreciation) on foreign currency translations. |
Current Period (4/1/14-3/31/15) | Prior Period (4/1/13-3/31/14) | |
$32,592 | $46,185 |
Undistributed long-term capital gains | $98,396,731 |
Unrealized appreciation on investments | 361,968,323 |
Unrealized depreciation on investments | (8,110,745) |
Net unrealized appreciation (depreciation) | $353,857,578 |
Current period distributions | |
Ordinary income | $48,239,627 |
Long-term capital gains | 331,841,554 |
Return of capital | — |
Prior period distributions | |
Ordinary income | $37,028,116 |
Long-term capital gains | 85,713,791 |
Return of capital | — |
Capital shares | $20,042,497 |
Undistributed net investment income | (216,159) |
Net realized capital gains (losses) | (19,826,338) |
Laudus U.S. Large Cap Growth Fund
San Francisco, California
May 18, 2015
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present). | 74 | Director, Gilead Sciences, Inc. (2005 – present) |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Private Investor. | 74 | Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present) |
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013) | 74 | Director, KLA-Tencor Corporation (2008 – present) |
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015) | Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014). | 95 | None. |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present). | 74 | Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012) |
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010) | Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present). | 74 | Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present) |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010) | Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present). | 74 | Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present) |
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present). | 95 | Director, The Charles Schwab Corporation (2008 – present) |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010). |
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006) | Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present). |
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009). |
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008). |
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs. |
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2005) | Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present). |
1 | Trustees remain in office until they resign, retire or are removed by shareholder vote. The Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Laudus Funds who also serves as an independent trustee of Schwab Funds to retire from the Boards of Laudus Funds upon their required retirement date from either the Boards of Trustees of Laudus Funds or Schwab Funds, whichever comes first. |
2 | Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser. |
3 | The President, Treasurer and Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
INFORMATION.
INFORMATION.
Partnership
![](https://capedge.com/proxy/N-CSR/0001193125-15-210122/g930646laudusbw.jpg)
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00141025
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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.
Registrant’s Board of Trustees has determined that Gerald Smith and Kiran Patel, each currently serving on its audit committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Mr. Smith and Mr. Patel as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of five series which all have a fiscal year-end of March 31, whose annual financial statements are reported in Item 1. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the nine series, based on their respective 2015 and 2014 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||||||||||||||||
Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||||||
$ | 241,876 | $ | 173,030 | $ | 0 | $ | 28,519 | $ | 29,379 | $ | 28,522 | $ | 339 | $ | 1,645 |
1 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
2 | The nature of the services includes tax compliance, tax advice and tax planning. |
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3 | The nature of the services include agreed upon procedures relating to Charles Schwab Investment Management., Inc.’s, (“CSIM”) expenses for purposes of Section 15(c) of the Investment Company Act of 1940. |
(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.
2015: $29,718 | 2014: $58,686 |
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.
2015: NONE | 2014: NONE |
(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.
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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, Marie Chandoha 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.
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(Registrant) | Laudus Trust |
By: | /s/ Marie Chandoha | |
Marie Chandoha | ||
President and Chief Executive Officer | ||
Date: | 5/13/15 | |
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/ Marie Chandoha | |
Marie Chandoha | ||
President and Chief Executive Officer | ||
Date: | 5/13/15 | |
By: | /s/ George Pereira | |
George Pereira | ||
Chief Financial Officer | ||
Date: | 5/13/15 |