Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
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
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: September 30, 2015
Item 1: Report(s) to Shareholders.
Table of Contents
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61 |
Total Return for the Six Months Ended September 30, 2015 | |
Laudus Mondrian International Equity Fund1 | |
Investor Shares (Ticker Symbol: LIEQX) | -9.92% |
Select Shares (Ticker Symbol: LIEFX) | -9.88% |
Institutional Shares (Ticker Symbol: LIEIX) | -9.69% |
MSCI EAFE Index® (Net) | -9.68% |
MSCI EAFE® Value Index (Net) | -11.58% |
Performance Details | pages 4-5 |
Laudus Mondrian Emerging Markets Fund1 | |
Investor Shares (Ticker Symbol: LEMIX) | -17.85% |
Select Shares (Ticker Symbol: LEMSX) | -17.60% |
Institutional Shares (Ticker Symbol: LEMNX) | -17.60% |
MSCI Emerging Markets Index (Net) | -17.33% |
Performance Details | pages 6-7 |
Laudus Mondrian International Government Fixed Income Fund (Ticker Symbol: LIFNX) | -0.32% |
Citigroup Non-U.S. Dollar World Government Bond Index | 0.14% |
Performance Details | pages 8-9 |
Laudus Mondrian Global Government Fixed Income Fund (Ticker Symbol: LMGDX) | -2.64% |
Custom Composite Index2 | -1.87% |
Citigroup World Government Bond Index | 0.14% |
Performance Details | pages 10-11 |
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. |
1 | The total returns cited are calculated net of foreign withholding taxes. For definitions of the referenced indices, please see the Glossary. |
Class and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Investor Shares (6/16/08) | -9.92% | -8.69% | 3.88% | -1.03% |
Select Shares (6/16/08) | -9.88% | -8.59% | 4.10% | -0.82% |
Institutional Shares (6/16/08) | -9.69% | -8.35% | 4.22% | -0.71% |
MSCI EAFE Index® (Net) | -9.68% | -8.66% | 3.98% | -0.05% |
MSCI EAFE® Value Index (Net) | -11.58% | -12.60% | 3.06% | -0.68% |
Fund Characteristics | |
Number of Companies3 | 38 |
Weighted Average Market Cap (millions) | $71,854 |
Price/Earnings Ratio (P/E) | 18.80 |
Price/Book Ratio (P/B) | 1.58 |
Portfolio Turnover (One year trailing)4 | 38% |
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 | $5.81 | $5.84 | $5.87 |
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 7/30/2017. 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. |
3 | Short-term investments are not included. |
4 | Portfolio turnover excludes the impact of investment activity from a merger with another fund. |
Health Care | 15.8% |
Consumer Staples | 15.1% |
Telecommunication Services | 15.0% |
Financials | 12.6% |
Energy | 9.4% |
Utilities | 9.4% |
Information Technology | 8.2% |
Industrials | 6.2% |
Consumer Discretionary | 5.4% |
Materials | 2.9% |
Total | 100.0% |
National Grid plc | 4.1% |
Sanofi | 3.6% |
Takeda Pharmaceutical Co., Ltd. | 3.6% |
GlaxoSmithKline plc | 3.5% |
Honda Motor Co., Ltd. | 3.5% |
Nestle S.A. – Reg'd | 3.5% |
Iberdrola S.A. | 3.5% |
ABB Ltd. – Reg'd | 3.4% |
Unilever plc | 3.4% |
Koninklijke Ahold N.V. | 3.2% |
Total | 35.3% |
United Kingdom | 20.6% |
Japan | 16.4% |
Switzerland | 15.3% |
Germany | 10.9% |
Spain | 7.7% |
France | 6.3% |
Singapore | 4.3% |
Netherlands | 3.2% |
Sweden | 3.1% |
Italy | 3.1% |
Other Countries | 9.1% |
Total | 100.0% |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Class and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Investor Shares (11/2/07) | -17.85% | -22.30% | -4.93% | -3.55% |
Select Shares (11/2/07) | -17.60% | -21.99% | -4.63% | -3.26% |
Institutional Shares (11/2/07) | -17.60% | -21.89% | -4.55% | -3.19% |
MSCI Emerging Markets Index (Net) | -17.33% | -19.28% | -3.58% | -3.86% |
Fund Characteristics | |
Number of Companies3 | 50 |
Weighted Average Market Cap (millions) | $32,893 |
Price/Earnings Ratio (P/E) | 13.12 |
Price/Book Ratio (P/B) | 1.54 |
Portfolio Turnover (One year trailing)4 | 42% |
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 | $6.72 | $6.74 | $6.74 |
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 1.20%, 1.35%, and 1.60% for the Institutional, Select, and Investor classes, respectively, until at least 7/30/2017. 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. |
3 | Short-term investments are not included. |
4 | Portfolio turnover excludes the impact of investment activity from a merger with another fund. |
Financials | 23.9% |
Information Technology | 14.8% |
Telecommunication Services | 14.4% |
Consumer Discretionary | 13.3% |
Utilities | 9.8% |
Consumer Staples | 8.4% |
Industrials | 6.4% |
Energy | 5.4% |
Health Care | 2.3% |
Materials | 1.3% |
Total | 100.0% |
Taiwan Semiconductor Manufacturing Co., Ltd. | 4.3% |
China Resources Power Holdings Co., Ltd. | 3.8% |
Fibra Uno Administracion S.A. de C.V. | 3.5% |
Hyundai Mobis Co., Ltd. | 3.4% |
China Mobile Ltd. | 3.2% |
Hengan International Group Co., Ltd. | 2.7% |
Unilever plc | 2.7% |
Taiwan Mobile Co., Ltd. | 2.7% |
Bajaj Auto Ltd. | 2.6% |
SK Telecom Co., Ltd. | 2.6% |
Total | 31.5% |
China | 16.7% |
Taiwan | 13.8% |
India | 11.1% |
Republic of Korea | 8.3% |
United States | 6.4% |
Malaysia | 6.0% |
South Africa | 5.7% |
Brazil | 5.3% |
Mexico | 5.1% |
Indonesia | 3.2% |
United Kingdom | 2.8% |
Other Countries | 15.6% |
Total | 100.0% |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Laudus Mondrian International Government Fixed Income Fund (11/2/07) | -0.32% | -7.10% | -2.41% | 1.92% |
Citigroup Non-U.S. Dollar World Government Bond Index | 0.14% | -7.01% | -1.32% | 1.95% |
Fund Characteristics | |
Number of Issues4 | 40 |
Weighted Average Maturity5 | 9.4 Yrs |
Weighted Average Duration5 | 7.6 Yrs |
Portfolio Turnover (One year trailing) | 44% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 11/2/2007 |
Ticker Symbol | LIFNX |
Cusip | 51855Q655 |
NAV | $9.42 |
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. 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 0.75% until at least 7/30/2017. 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. |
4 | Short-term investments are not included. |
5 | See Glossary for definitions of maturity and duration. |
Government Bonds | 84.5% |
Supranational* | 14.9% |
Other Investment Companies | 0.6% |
Total | 100.0% |
Japan Government Thirty Year Bond, 2.40%, 12/20/34 | 6.3% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 5.7% |
France Government Bond OAT, 5.75%, 10/25/32 | 4.7% |
Canada Government International Bond, 3.50%, 01/13/20 | 4.4% |
Mexico Government Bond, 6.50%, 06/10/21 | 4.3% |
Netherlands Government Bond, 5.50%, 01/15/28 | 4.2% |
Austria Government Bond, 6.25%, 07/15/27 | 4.2% |
European Union Notes, 2.75%, 06/03/16 | 4.2% |
Nordic Investment Bank, 1.70%, 04/27/17 | 3.9% |
European Investment Bank, 1.40%, 06/20/17 | 3.8% |
Total | 45.7% |
Japan | 21.6% |
Supranational* | 14.9% |
United Kingdom | 12.1% |
Spain | 7.5% |
Poland | 4.8% |
France | 4.7% |
Mexico | 4.7% |
Sweden | 4.6% |
New Zealand | 4.5% |
Canada | 4.5% |
Netherlands | 4.3% |
Austria | 4.3% |
Finland | 3.1% |
Other Countries | 4.4% |
Total | 100.0% |
Japanese Yen | 36.1% |
Euro Currency | 32.6% |
Great British Pound | 12.1% |
Polish Zloty | 4.8% |
Mexican Peso | 4.7% |
Swedish Krona | 4.6% |
Australian Dollar | 2.0% |
Malaysian Ringgit | 1.8% |
U.S. Dollar | 1.3% |
New Zealand Dollar | 0.0% 4 |
Total | 100.0% |
* | 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 | This list is not a recommendation of any security by the investment adviser or subadviser. |
2 | 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. |
3 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
4 | Amount is less than 0.05% |
Fund and Inception Date | 6 Months | 1 Year | 3 Years | Since Inception |
Laudus Mondrian Global Government Fixed Income Fund (7/10/12) | -2.64% | -7.42% | -5.72% | -4.50% |
Custom Composite Index2 | -1.87% | -6.14% | -4.01% | -2.78% |
Citigroup World Government Bond Index | 0.14% | -3.83% | -2.85% | -1.68% |
Fund Characteristics | |
Number of Issues4 | 68 |
Weighted Average Maturity5 | 8.4 Yrs |
Weighted Average Duration5 | 6.4 Yrs |
Portfolio Turnover (One year trailing) | 61% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 7/10/2012 |
Ticker Symbol | LMGDX |
Cusip | 51855Q119 |
NAV | $8.48 |
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: The adviser has agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.85% until at least 7/30/2017. 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. |
4 | Short-term investments are not included. |
5 | See Glossary for definitions of maturity and duration. |
Government Bonds | 67.8% |
U.S. Government Securities | 30.4% |
Other Investment Company | 1.3% |
Short-Term Investment | 0.5% |
Total | 100.0% |
U.S. Treasury Notes, 3.63%, 02/15/21 | 9.0% |
U.S. Treasury Notes, 2.13%, 08/31/20 | 4.9% |
U.S. Treasury Notes, 3.63%, 08/15/19 | 4.8% |
Japan Government Ten Year Bond, 1.40%, 03/20/18 | 4.2% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 4.0% |
U.S. Treasury Notes, 2.13%, 08/15/21 | 3.3% |
Japan Government Ten Year Bond, 0.80%, 09/20/20 | 3.0% |
U.S. Treasury Bond, 3.38%, 05/15/44 | 2.9% |
Mexico Government Bond, 6.50%, 06/10/21 | 2.8% |
Japan Government Ten Year Bond, 0.60%, 03/20/24 | 2.8% |
Total | 41.7% |
United States | 32.2% |
Japan | 16.1% |
United Kingdom | 7.2% |
Mexico | 7.1% |
Spain | 6.0% |
Brazil | 5.4% |
Poland | 5.1% |
France | 3.7% |
New Zealand | 3.1% |
Malaysia | 3.0% |
Other Countries | 11.1% |
Total | 100.0% |
Japanese Yen | 20.3% |
U.S. Dollar | 18.4% |
Euro Currency | 16.8% |
Great British Pound | 7.2% |
Mexican Peso | 7.1% |
Brazilian Real | 5.4% |
Polish Zloty | 5.1% |
Swedish Krona | 4.9% |
Malaysian Ringgit | 3.0% |
Peruvian Nuevo Sol | 1.8% |
South African Rand | 1.8% |
Colombian Peso | 1.8% |
Indonesian Rupiah | 1.7% |
Turkish Lira | 1.4% |
Russian Ruble | 1.3% |
Chinese Yuan Renminbi | 1.2% |
Indian Rupee | 0.8% |
New Zealand Dollar | 0.0% 4 |
Total | 100.0% |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
2 | 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. |
3 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
4 | Amount is less than 0.05% |
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 4/1/15 | Ending Account Value (Net of Expenses) at 9/30/15 | Expenses Paid During Period2 4/1/15-9/30/15 | |
Laudus Mondrian International Equity Fund | ||||
Investor Shares | ||||
Actual Return | 1.22% | $1,000.00 | $ 900.80 | $5.80 |
Hypothetical 5% Return | 1.22% | $1,000.00 | $1,018.90 | $ 6.16 |
Select Shares | ||||
Actual Return | 1.03% | $1,000.00 | $ 901.20 | $4.90 |
Hypothetical 5% Return | 1.03% | $1,000.00 | $ 1,019.85 | $ 5.20 |
Institutional Shares | ||||
Actual Return | 0.90% | $1,000.00 | $ 903.10 | $ 4.28 |
Hypothetical 5% Return | 0.90% | $1,000.00 | $ 1,020.50 | $ 4.55 |
Laudus Mondrian Emerging Markets Fund | ||||
Investor Shares | ||||
Actual Return | 1.60% | $1,000.00 | $ 821.50 | $ 7.29 |
Hypothetical 5% Return | 1.60% | $1,000.00 | $ 1,017.00 | $ 8.07 |
Select Shares | ||||
Actual Return | 1.30% | $1,000.00 | $ 824.00 | $ 5.93 |
Hypothetical 5% Return | 1.30% | $1,000.00 | $ 1,018.50 | $ 6.56 |
Institutional Shares | ||||
Actual Return | 1.20% | $1,000.00 | $ 824.00 | $ 5.47 |
Hypothetical 5% Return | 1.20% | $1,000.00 | $ 1,019.00 | $6.06 |
Laudus Mondrian International Government Fixed Income Fund | ||||
Actual Return | 0.75% | $1,000.00 | $ 996.80 | $ 3.74 |
Hypothetical 5% Return | 0.75% | $1,000.00 | $ 1,021.25 | $ 3.79 |
Laudus Mondrian Global Government Fixed Income Fund | ||||
Actual Return | 0.85% | $1,000.00 | $ 973.60 | $ 4.19 |
Hypothetical 5% Return | 0.85% | $1,000.00 | $ 1,020.75 | $ 4.29 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year. |
Investor Shares | 4/1/15– 9/30/15* | 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 | $6.45 | $8.76 | $7.43 | $7.19 | $7.73 | $7.52 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.10 | 0.16 | 0.29 | 0.21 | 0.26 | 0.16 |
Net realized and unrealized gains (losses) | (0.74) | (0.31) | 1.25 | 0.26 | (0.45) | 0.28 |
Total from investment operations | (0.64) | (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 | $5.81 | $6.45 | $8.76 | $7.43 | $7.19 | $7.73 |
Total return | (9.92%) 2 | (0.02%) | 20.86% | 6.79% | (2.02%) | 5.94% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.22% 3 | 1.17% | 1.27% | 1.40% | 1.40% | 1.40% |
Gross operating expenses | 1.35% 3 | 1.33% | 1.29% | 1.51% | 1.63% | 1.63% |
Net investment income (loss) | 3.19% 3 | 2.08% | 3.56% | 3.03% | 3.49% | 2.19% |
Portfolio turnover rate | 7% 2 | 36% 4 | 25% | 29% | 35% | 33% |
Net assets, end of period (x 1,000) | $4,627 | $3,486 | $1,185 | $926 | $1,048 | $1,009 |
Select Shares | 4/1/15– 9/30/15* | 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 | $6.48 | $8.79 | $7.45 | $7.20 | $7.75 | $7.53 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.20 | 0.37 | 0.24 | 0.26 | 0.21 |
Net realized and unrealized gains (losses) | (0.75) | (0.35) | 1.19 | 0.26 | (0.44) | 0.25 |
Total from investment operations | (0.64) | (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 | $5.84 | $6.48 | $8.79 | $7.45 | $7.20 | $7.75 |
Total return | (9.88%) 2 | 0.04% | 21.17% | 7.18% | (1.82%) | 6.20% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.03% 3 | 1.08% 5 | 1.07% | 1.12% | 1.12% | 1.12% |
Gross operating expenses | 1.16% 3 | 1.23% | 1.08% | 1.26% | 1.40% | 1.36% |
Net investment income (loss) | 3.42% 3 | 2.56% | 4.53% | 3.37% | 3.51% | 2.86% |
Portfolio turnover rate | 7% 2 | 36% 4 | 25% | 29% | 35% | 33% |
Net assets, end of period (x 1,000) | $3,967 | $2,981 | $2,238 | $768 | $938 | $542 |
* | Unaudited. |
Institutional Shares | 4/1/15– 9/30/15* | 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 | $6.50 | $8.81 | $7.46 | $7.22 | $7.76 | $7.54 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.27 | 0.35 | 0.23 | 0.29 | 0.23 |
Net realized and unrealized gains (losses) | (0.75) | (0.41) | 1.22 | 0.27 | (0.46) | 0.24 |
Total from investment operations | (0.63) | (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 | $5.87 | $6.50 | $8.81 | $7.46 | $7.22 | $7.76 |
Total return | (9.69%) 2 | 0.11% | 21.31% | 7.10% | (1.63%) | 6.28% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.90% 3 | 1.01% 4 | 1.05% | 1.05% | 1.05% | 1.05% |
Gross operating expenses | 1.03% 3 | 1.07% | 1.07% | 1.11% | 1.23% | 1.21% |
Net investment income (loss) | 3.72% 3 | 3.28% | 4.24% | 3.22% | 3.92% | 3.08% |
Portfolio turnover rate | 7% 2 | 36% 5 | 25% | 29% | 35% | 33% |
Net assets, end of period (x 1,000) | $95,197 | $91,981 | $162,366 | $127,709 | $119,049 | $126,758 |
* | Unaudited. |
Holdings by Category | Cost ($) | Value ($) | |
98.8% | Common Stock | 100,302,196 | 102,472,234 |
1.4% | Other Investment Company | 1,481,143 | 1,481,143 |
100.2% | Total Investments | 101,783,339 | 103,953,377 |
(0.2%) | Other Assets and Liabilities, Net | (161,500) | |
100.0% | Net Assets | 103,791,877 |
Security | Number of Shares | Value ($) |
Common Stock 98.8% of net assets | ||
Australia 1.7% | ||
Insurance 1.7% | ||
QBE Insurance Group Ltd. | 189,112 | 1,722,203 |
China 1.9% | ||
Telecommunication Services 1.9% | ||
China Mobile Ltd. | 162,500 | 1,945,085 |
France 6.3% | ||
Capital Goods 2.7% | ||
Compagnie de Saint-Gobain | 64,351 | 2,792,856 |
Pharmaceuticals, Biotechnology & Life Sciences 3.6% | ||
Sanofi | 39,024 | 3,715,085 |
6,507,941 | ||
Germany 11.0% | ||
Automobiles & Components 1.8% | ||
Daimler AG - Reg'd | 25,771 | 1,876,206 |
Insurance 1.6% | ||
Allianz SE - Reg'd | 10,420 | 1,636,907 |
Software & Services 3.1% | ||
SAP SE | 50,042 | 3,241,905 |
Telecommunication Services 2.8% | ||
Deutsche Telekom AG - Reg'd | 162,075 | 2,885,179 |
Utilities 1.7% | ||
RWE AG | 153,395 | 1,743,138 |
11,383,335 |
Security | Number of Shares | Value ($) |
Israel 2.1% | ||
Pharmaceuticals, Biotechnology & Life Sciences 2.1% | ||
Teva Pharmaceutical Industries Ltd. ADR | 38,000 | 2,145,480 |
Italy 3.1% | ||
Energy 3.1% | ||
Eni S.p.A. | 205,930 | 3,239,347 |
Japan 16.4% | ||
Automobiles & Components 3.5% | ||
Honda Motor Co., Ltd. | 122,900 | 3,668,159 |
Food & Staples Retailing 0.8% | ||
Seven & i Holdings Co., Ltd. | 17,000 | 775,763 |
Household & Personal Products 1.5% | ||
Kao Corp. | 35,000 | 1,586,579 |
Insurance 2.9% | ||
Tokio Marine Holdings, Inc. | 79,500 | 2,970,118 |
Pharmaceuticals, Biotechnology & Life Sciences 3.6% | ||
Takeda Pharmaceutical Co., Ltd. | 84,600 | 3,711,591 |
Technology Hardware & Equipment 2.9% | ||
Canon, Inc. | 105,000 | 3,037,386 |
Telecommunication Services 1.2% | ||
NTT DOCOMO, Inc. | 75,400 | 1,271,775 |
17,021,371 | ||
Netherlands 3.2% | ||
Food & Staples Retailing 3.2% | ||
Koninklijke Ahold N.V. | 171,227 | 3,340,301 |
Singapore 4.4% | ||
Banks 2.2% | ||
United Overseas Bank Ltd. | 176,320 | 2,302,230 |
Telecommunication Services 2.2% | ||
Singapore Telecommunications Ltd. | 877,700 | 2,218,575 |
4,520,805 | ||
Spain 7.7% | ||
Banks 1.5% | ||
Banco Santander S.A. | 285,936 | 1,520,438 |
Telecommunication Services 2.7% | ||
Telefonica S.A. | 234,605 | 2,846,224 |
Utilities 3.5% | ||
Iberdrola S.A. | 540,665 | 3,602,568 |
7,969,230 | ||
Sweden 3.1% | ||
Telecommunication Services 3.1% | ||
TeliaSonera AB | 603,548 | 3,257,821 |
Switzerland 15.3% | ||
Capital Goods 3.4% | ||
ABB Ltd. - Reg'd * | 203,185 | 3,595,058 |
Security | Number of Shares | Value ($) |
Food, Beverage & Tobacco 3.5% | ||
Nestle S.A. - Reg'd | 48,263 | 3,629,650 |
Insurance 2.7% | ||
Zurich Insurance Group AG * | 11,310 | 2,776,675 |
Materials 2.9% | ||
Syngenta AG - Reg'd | 9,313 | 2,983,985 |
Pharmaceuticals, Biotechnology & Life Sciences 2.8% | ||
Novartis AG - Reg'd | 31,512 | 2,896,326 |
15,881,694 | ||
Taiwan 2.0% | ||
Semiconductors & Semiconductor Equipment 2.0% | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 529,154 | 2,120,678 |
United Kingdom 20.6% | ||
Energy 6.2% | ||
BP plc | 644,716 | 3,270,882 |
Royal Dutch Shell plc, A Shares | 133,460 | 3,165,645 |
6,436,527 | ||
Food & Staples Retailing 2.5% | ||
Tesco plc | 926,784 | 2,574,228 |
Household & Personal Products 3.4% | ||
Unilever plc | 87,365 | 3,558,356 |
Pharmaceuticals, Biotechnology & Life Sciences 3.5% | ||
GlaxoSmithKline plc | 192,680 | 3,698,278 |
Telecommunication Services 0.9% | ||
Vodafone Group plc | 287,065 | 905,427 |
Utilities 4.1% | ||
National Grid plc | 304,738 | 4,244,127 |
21,416,943 | ||
Total Common Stock | ||
(Cost $100,302,196) | 102,472,234 |
Security | Number of Shares | Value ($) |
Other Investment Company 1.4% of net assets | ||
United States 1.4% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 1,481,143 | 1,481,143 |
Total Other Investment Company | ||
(Cost $1,481,143) | 1,481,143 |
* | 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 | $— | $100,326,754 | $— | $100,326,754 | |||||
Israel 1 | 2,145,480 | — | — | 2,145,480 | |||||
Other Investment Company1 | 1,481,143 | — | — | 1,481,143 | |||||
Total | $3,626,623 | $100,326,754 | $— | $103,953,377 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $101,783,339) | $103,953,377 | |
Foreign currency, at value (cost $40,001) | 39,860 | |
Receivables: | ||
Fund shares sold | 380,515 | |
Dividends | 203,245 | |
Foreign tax reclaims | 191,975 | |
Prepaid expenses | + | 28,062 |
Total assets | 104,797,034 | |
Liabilities | ||
Payables: | ||
Investments bought | 820,575 | |
Fund shares redeemed | 126,552 | |
Investment adviser fees | 10,755 | |
Distribution and shareholder services fees | 965 | |
Accrued expenses | + | 46,310 |
Total liabilities | 1,005,157 | |
Net Assets | ||
Total assets | 104,797,034 | |
Total liabilities | – | 1,005,157 |
Net assets | $103,791,877 | |
Net Assets by Source | ||
Capital received from investors | 97,731,312 | |
Net investment income not yet distributed | 2,192,489 | |
Net realized capital gains | 1,711,871 | |
Net unrealized capital appreciation | 2,156,205 |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $4,627,269 | 796,186 | $5.81 | ||
Select Shares | $3,967,163 | 678,871 | $5.84 | ||
Institutional Shares | $95,197,445 | 16,227,076 | $5.87 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $227,905) | $2,440,698 | |
Expenses | ||
Investment adviser fees | 397,099 | |
Professional fees | 38,758 | |
Transfer agent fees | 37,143 | |
Custodian fees | 23,068 | |
Accounting and administration fees | 19,188 | |
Registration fees | 14,933 | |
Independent trustees' fees | 5,648 | |
Shareholder reports | 5,515 | |
Distribution and shareholder services fees (Investor Shares) | 5,512 | |
Recouped sub-accounting and sub-transfer agent fees | 454 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 1,362 | |
Select Shares | 1,722 | |
Other expenses | + | 6,021 |
Total expenses | 556,423 | |
Expense reduction by adviser | – | 69,712 |
Net expenses | – | 486,711 |
Net investment income | 1,953,987 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 987,395 | |
Net realized losses on foreign currency transactions | + | (24,037) |
Net realized gains | 963,358 | |
Net change in unrealized appreciation (depreciation) on investments | (14,114,357) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 5,890 |
Net change in unrealized appreciation (depreciation) | + | (14,108,467) |
Net realized and unrealized losses | (13,145,109) | |
Decrease in net assets resulting from operations | ($11,191,122) |
Operations | |||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||
Net investment income | $1,953,987 | $3,817,412 | |
Net realized gains | 963,358 | 15,839,103 | |
Net change in unrealized appreciation (depreciation) | + | (14,108,467) | (19,382,832) |
Increase (decrease) in net assets from operations | (11,191,122) | 273,683 | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | — | (228,950) | |
Select Shares | — | (237,028) | |
Institutional Shares | + | — | (6,208,099) |
Total distributions from net investment income | — | (6,674,077) | |
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 | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 345,340 | $2,262,091 | 415,068 | $3,051,107 | |
Select Shares | 325,232 | 2,111,653 | 331,340 | 2,479,377 | |
Institutional Shares | + | 2,699,407 | 17,451,595 | 4,084,739 | 31,936,081 |
Total shares sold | 3,369,979 | $21,825,339 | 4,831,147 | $37,466,565 | |
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 | |
Select Shares | — | — | 77,093 | 466,412 | |
Institutional Shares | + | — | — | 1,338,949 | 8,127,419 |
Total shares reinvested | — | $— | 1,502,525 | $9,115,325 | |
Shares Redeemed | |||||
Investor Shares | (89,626) | ($582,608) | (96,337) | ($716,832) | |
Select Shares | (106,369) | (694,080) | (202,963) | (1,634,227) | |
Institutional Shares | + | (619,971) | (4,014,242) | (14,126,383) | (123,799,839) |
Total shares redeemed | (815,966) | ($5,290,930) | (14,425,683) | ($126,150,898) | |
Net transactions in fund shares | 2,554,013 | $16,534,409 | (3,677,364) | ($51,315,271) | |
Shares Outstanding and Net Assets | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 15,148,120 | $98,448,590 | 18,825,484 | $165,788,501 | |
Total increase or decrease | + | 2,554,013 | 5,343,287 | (3,677,364) | (67,339,911) |
End of period | 17,702,133 | $103,791,877 | 15,148,120 | $98,448,590 | |
Net investment income not yet distributed | $2,192,489 | $238,502 |
Investor Shares | 4/1/15– 9/30/15* | 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 | $8.18 | $8.69 | $9.84 | $9.48 | $9.67 | $8.79 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.09 | 0.14 | 0.11 | 0.12 | 0.16 | 0.14 |
Net realized and unrealized gains (losses) | (1.55) | (0.45) | (1.18) | 0.42 | (0.20) | 0.90 |
Total from investment operations | (1.46) | (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 | $6.72 | $8.18 | $8.69 | $9.84 | $9.48 | $9.67 |
Total return | (17.85%) 3 | (3.46%) | (10.89%) | 5.79% | (0.19%) | 11.89% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.60% 4 | 1.71% 5 | 1.80% | 1.80% | 1.80% | 1.80% |
Gross operating expenses | 1.62% 4 | 1.77% | 1.86% | 1.89% | 1.90% | 1.91% |
Net investment income (loss) | 2.25% 4 | 1.56% | 1.25% | 1.33% | 1.74% | 1.56% |
Portfolio turnover rate | 13% 3 | 30% 6 | 69% | 59% | 43% | 33% |
Net assets, end of period (x 1,000) | $3,758 | $5,426 | $7,499 | $11,716 | $9,639 | $10,862 |
Select Shares | 4/1/15– 9/30/15* | 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 | $8.18 | $8.70 | $9.85 | $9.49 | $9.68 | $8.80 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.10 | 0.17 | 0.13 | 0.12 | 0.18 | 0.17 |
Net realized and unrealized gains (losses) | (1.54) | (0.46) | (1.17) | 0.45 | (0.19) | 0.90 |
Total from investment operations | (1.44) | (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 | $6.74 | $8.18 | $8.70 | $9.85 | $9.49 | $9.68 |
Total return | (17.60%) 3 | (3.26%) | (10.57%) | 6.15% | 0.15% | 12.18% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.30% 4 | 1.45% 5 | 1.52% | 1.52% | 1.52% | 1.52% |
Gross operating expenses | 1.30% 4 | 1.51% | 1.59% | 1.66% | 1.66% | 1.66% |
Net investment income (loss) | 2.56% 4 | 1.92% | 1.47% | 1.24% | 1.94% | 1.83% |
Portfolio turnover rate | 13% 3 | 30% 6 | 69% | 59% | 43% | 33% |
Net assets, end of period (x 1,000) | $7,861 | $10,446 | $15,849 | $18,340 | $5,993 | $5,554 |
* | Unaudited. |
Institutional Shares | 4/1/15– 9/30/15* | 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 | $8.18 | $8.69 | $9.85 | $9.49 | $9.68 | $8.80 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.12 | 0.14 | 0.16 | 0.19 | 0.15 |
Net realized and unrealized gains (losses) | (1.55) | (0.39) | (1.19) | 0.42 | (0.19) | 0.92 |
Total from investment operations | (1.44) | (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 | $6.74 | $8.18 | $8.69 | $9.85 | $9.49 | $9.68 |
Total return | (17.60%) 3 | (3.03%) | (10.62%) | 6.21% | 0.23% | 12.25% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.20% 4 | 1.29% 5 | 1.45% | 1.45% | 1.45% | 1.45% |
Gross operating expenses | 1.20% 4 | 1.31% | 1.52% | 1.49% | 1.50% | 1.51% |
Net investment income (loss) | 2.67% 4 | 1.42% | 1.55% | 1.70% | 2.07% | 1.69% |
Portfolio turnover rate | 13% 3 | 30% 6 | 69% | 59% | 43% | 33% |
Net assets, end of period (x 1,000) | $422,667 | $559,347 | $121,795 | $141,536 | $148,187 | $171,432 |
* | Unaudited. |
Holdings by Category | Cost ($) | Value ($) | |
92.6% | Common Stock | 502,861,575 | 402,095,865 |
0.9% | Preferred Stock | 15,087,909 | 4,102,075 |
4.0% | Other Investment Company | 17,210,422 | 17,210,422 |
97.5% | Total Investments | 535,159,906 | 423,408,362 |
2.5% | Other Assets and Liabilities, Net | 10,877,271 | |
100.0% | Net Assets | 434,285,633 |
Security | Number of Shares | Value ($) |
Common Stock 92.6% of net assets | ||
Brazil 4.2% | ||
Materials 0.2% | ||
Vale S.A. ADR | 252,000 | 1,058,400 |
Software & Services 0.8% | ||
Cielo S.A. | 365,592 | 3,380,654 |
Transportation 2.2% | ||
CCR S.A. | 2,405,800 | 7,385,190 |
EcoRodovias Infraestrutura e Logistica S.A. | 1,301,500 | 2,002,560 |
9,387,750 | ||
Utilities 1.0% | ||
CPFL Energia S.A. ADR * | 603,659 | 4,527,443 |
18,354,247 | ||
Chile 1.3% | ||
Utilities 1.3% | ||
Enersis S.A. ADR | 443,200 | 5,602,048 |
China 16.3% | ||
Capital Goods 1.9% | ||
Beijing Enterprises Holdings Ltd. | 1,326,000 | 7,988,148 |
Consumer Durables & Apparel 1.6% | ||
Belle International Holdings Ltd. | 8,103,848 | 7,047,735 |
Food, Beverage & Tobacco 0.9% | ||
Want Want China Holdings Ltd. | 4,752,000 | 3,914,230 |
Health Care Equipment & Services 2.2% | ||
Mindray Medical International Ltd. ADR | 427,800 | 9,355,986 |
Security | Number of Shares | Value ($) |
Household & Personal Products 2.7% | ||
Hengan International Group Co., Ltd. | 1,215,000 | 11,872,621 |
Telecommunication Services 3.2% | ||
China Mobile Ltd. | 1,171,500 | 14,022,567 |
Utilities 3.8% | ||
China Resources Power Holdings Co., Ltd. | 7,152,000 | 16,420,070 |
70,621,357 | ||
Hong Kong 1.1% | ||
Consumer Services 1.1% | ||
Sands China Ltd. | 1,510,400 | 4,587,777 |
India 10.8% | ||
Automobiles & Components 2.6% | ||
Bajaj Auto Ltd. | 322,406 | 11,386,700 |
Banks 3.3% | ||
Axis Bank Ltd. | 730,282 | 5,538,252 |
Housing Development Finance Corp., Ltd. | 472,542 | 8,755,026 |
14,293,278 | ||
Capital Goods 0.8% | ||
Larsen & Toubro Ltd. | 156,097 | 3,499,063 |
Energy 1.9% | ||
Cairn India Ltd. | 3,452,822 | 8,111,470 |
Software & Services 2.2% | ||
Infosys Ltd. | 264,920 | 4,699,729 |
Infosys Ltd. ADR | 253,700 | 4,843,133 |
9,542,862 | ||
46,833,373 | ||
Indonesia 3.1% | ||
Banks 2.5% | ||
PT Bank Mandiri (Persero) Tbk | 8,223,300 | 4,460,722 |
PT Bank Rakyat Indonesia (Persero) Tbk | 10,668,200 | 6,316,596 |
10,777,318 | ||
Utilities 0.6% | ||
PT Perusahaan Gas Negara (Persero) Tbk | 16,652,700 | 2,881,588 |
13,658,906 | ||
Kazakhstan 0.6% | ||
Energy 0.6% | ||
KazMunaiGas Exploration Production JSC GDR | 471,379 | 2,828,274 |
Malaysia 5.9% | ||
Banks 2.0% | ||
AMMB Holdings Berhad | 8,458,900 | 8,791,125 |
Consumer Services 1.5% | ||
Genting Malaysia Berhad | 6,858,100 | 6,480,406 |
Security | Number of Shares | Value ($) |
Utilities 2.4% | ||
Tenaga Nasional Berhad | 3,722,800 | 10,181,993 |
25,453,524 | ||
Mexico 5.0% | ||
Banks 1.5% | ||
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B ADR | 891,600 | 6,544,344 |
Real Estate 3.5% | ||
Fibra Uno Administracion S.A. de C.V. | 7,282,600 | 15,039,164 |
21,583,508 | ||
Peru 1.2% | ||
Banks 1.2% | ||
Credicorp Ltd. | 50,999 | 5,424,254 |
Philippines 2.4% | ||
Telecommunication Services 2.4% | ||
Philippine Long Distance Telephone Co. ADR | 224,873 | 10,380,138 |
Qatar 2.4% | ||
Banks 2.4% | ||
Qatar National Bank SAQ | 198,987 | 10,256,218 |
Republic of Korea 8.1% | ||
Automobiles & Components 3.4% | ||
Hyundai Mobis Co., Ltd. | 75,321 | 14,737,820 |
Technology Hardware & Equipment 2.2% | ||
Samsung Electronics Co., Ltd. | 9,781 | 9,384,411 |
Telecommunication Services 2.5% | ||
SK Telecom Co., Ltd. | 50,081 | 11,109,755 |
35,231,986 | ||
Russia 1.5% | ||
Energy 1.5% | ||
Gazprom PAO ADR | 1,614,614 | 6,555,333 |
South Africa 5.6% | ||
Capital Goods 1.2% | ||
The Bidvest Group Ltd. | 223,313 | 5,270,298 |
Food, Beverage & Tobacco 1.6% | ||
SABMiller plc | 119,266 | 6,730,904 |
Real Estate 1.4% | ||
Growthpoint Properties Ltd. | 3,396,948 | 6,293,860 |
Telecommunication Services 1.4% | ||
MTN Group Ltd. | 468,459 | 6,024,054 |
24,319,116 | ||
Taiwan 13.5% | ||
Banks 2.1% | ||
Mega Financial Holding Co., Ltd. | 13,046,000 | 9,062,128 |
Security | Number of Shares | Value ($) |
Semiconductors & Semiconductor Equipment 6.3% | ||
MediaTek, Inc. | 1,177,000 | 8,758,782 |
Taiwan Semiconductor Manufacturing Co., Ltd. | 4,690,719 | 18,798,880 |
27,557,662 | ||
Technology Hardware & Equipment 2.4% | ||
Asustek Computer, Inc. | 1,215,000 | 10,446,564 |
Telecommunication Services 2.7% | ||
Taiwan Mobile Co., Ltd. | 3,766,000 | 11,529,987 |
58,596,341 | ||
Turkey 2.3% | ||
Energy 1.0% | ||
Tupras-Turkiye Petrol Rafinerileri A/S * | 172,632 | 4,231,199 |
Telecommunication Services 1.3% | ||
Turk Telekomunikasyon A/S | 2,825,412 | 5,576,561 |
9,807,760 | ||
United Arab Emirates 2.4% | ||
Real Estate 2.4% | ||
Emaar Malls Group PJSC * | 12,446,159 | 10,511,889 |
United Kingdom 2.7% | ||
Household & Personal Products 2.7% | ||
Unilever plc | 289,519 | 11,792,041 |
United States 2.2% | ||
Consumer Services 2.2% | ||
Yum! Brands, Inc. | 121,298 | 9,697,775 |
Total Common Stock | ||
(Cost $502,861,575) | 402,095,865 | |
Preferred Stock 0.9% of net assets | ||
Brazil 0.9% | ||
Materials 0.9% | ||
Vale S.A. ADR | 1,224,500 | 4,102,075 |
Total Preferred Stock | ||
(Cost $15,087,909) | 4,102,075 | |
Other Investment Company 4.0% of net assets | ||
United States 4.0% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 17,210,422 | 17,210,422 |
Total Other Investment Company | ||
(Cost $17,210,422) | 17,210,422 |
At 09/30/15, the tax basis cost of the fund's investments was $546,454,289 and the unrealized appreciation and depreciation were $0 and ($123,045,927) respectively, with a net unrealized depreciation of ($123,045,927).
* | 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 | $— | $204,215,558 | $— | $204,215,558 | |||||
Brazil 1 | 18,354,247 | — | — | 18,354,247 | |||||
Chile 1 | 5,602,048 | — | — | 5,602,048 | |||||
China 1 | — | 61,265,371 | — | 61,265,371 | |||||
Health Care Equipment & Services | 9,355,986 | — | — | 9,355,986 | |||||
India 1 | — | 37,290,511 | — | 37,290,511 | |||||
Software & Services | 4,843,133 | 4,699,729 | — | 9,542,862 | |||||
Kazakhstan 1 | 2,828,274 | — | — | 2,828,274 | |||||
Mexico 1 | 21,583,508 | — | — | 21,583,508 | |||||
Peru 1 | 5,424,254 | — | — | 5,424,254 | |||||
Philippines 1 | 10,380,138 | — | — | 10,380,138 | |||||
Russia 1 | 6,555,333 | — | — | 6,555,333 | |||||
United States1 | 9,697,775 | — | — | 9,697,775 | |||||
Preferred Stock | |||||||||
Brazil 1 | 4,102,075 | — | — | 4,102,075 | |||||
Other Investment Company1 | 17,210,422 | — | — | 17,210,422 | |||||
Total | $115,937,193 | $307,471,169 | $— | $423,408,362 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $535,159,906) | $423,408,362 | |
Foreign currency, at value (cost $1,059,638) | 1,042,643 | |
Receivables: | ||
Investments sold | 6,793,003 | |
Fund shares sold | 3,008,281 | |
Dividends | 563,211 | |
Prepaid expenses | + | 35,535 |
Total assets | 434,851,035 | |
Liabilities | ||
Payables: | ||
Investments bought | 384,499 | |
Investment adviser fees | 74,901 | |
Fund shares redeemed | 5,890 | |
Distribution and shareholder services fees | 791 | |
Accrued expenses | + | 99,321 |
Total liabilities | 565,402 | |
Net Assets | ||
Total assets | 434,851,035 | |
Total liabilities | – | 565,402 |
Net assets | $434,285,633 | |
Net Assets by Source | ||
Capital received from investors | 593,910,616 | |
Net investment income not yet distributed | 4,944,204 | |
Net realized capital losses | (52,825,139) | |
Net unrealized capital depreciation | (111,744,048) |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $3,757,620 | 558,788 | $6.72 | ||
Select Shares | $7,860,736 | 1,166,567 | $6.74 | ||
Institutional Shares | $422,667,277 | 62,737,163 | $6.74 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $1,299,464) | $10,293,631 | |
Expenses | ||
Investment adviser fees | 2,655,504 | |
Custodian fees | 342,909 | |
Professional fees | 44,248 | |
Transfer agent fees | 41,088 | |
Accounting and administration fees | 38,372 | |
Recouped by adviser | 18,969 | |
Shareholder reports | 13,545 | |
Independent trustees' fees | 9,212 | |
Registration fees | 8,486 | |
Distribution and shareholder services fees (Investor Shares) | 5,980 | |
Interest expense | 208 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 4,042 | |
Select Shares | 4,397 | |
Other expenses | + | 21,494 |
Total expenses | 3,208,454 | |
Expense reduction by adviser | – | 401 |
Net expenses | – | 3,208,053 |
Net investment income | 7,085,578 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (24,542,791) | |
Net realized losses on foreign currency transactions | + | (115,705) |
Net realized losses | (24,658,496) | |
Net change in unrealized appreciation (depreciation) on investments | (77,205,923) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 18,369 |
Net change in unrealized appreciation (depreciation) | + | (77,187,554) |
Net realized and unrealized losses | (101,846,050) | |
Decrease in net assets resulting from operations | ($94,760,472) |
Operations | |||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||
Net investment income | $7,085,578 | $3,085,384 | |
Net realized losses | (24,658,496) | (1,794,237) | |
Net change in unrealized appreciation (depreciation) | + | (77,187,554) | (17,470,117) |
Decrease in net assets from operations | (94,760,472) | (16,178,970) | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | — | (145,366) | |
Select Shares | — | (305,982) | |
Institutional Shares | + | — | (3,366,678) |
Total distributions from net investment income | $— | ($3,818,026) |
Transactions in Fund Shares | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 33,694 | $265,928 | 150,710 | $1,325,782 | |
Select Shares | 69,712 | 575,071 | 251,274 | 2,223,309 | |
Institutional Shares | + | 2,238,942 | 17,148,318 | 10,345,888 | 89,219,542 |
Total shares sold | 2,342,348 | $17,989,317 | 10,747,872 | $92,768,633 | |
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 | |
Select Shares | — | — | 30,056 | 237,443 | |
Institutional Shares | + | — | — | 386,789 | 3,051,761 |
Total shares reinvested | — | $— | 434,385 | $3,427,774 | |
Shares Redeemed | |||||
Investor Shares | (138,203) | ($1,090,358) | (368,166) | ($3,218,784) | |
Select Shares | (179,644) | (1,482,397) | (827,132) | (7,477,651) | |
Institutional Shares | + | (7,894,571) | (61,589,613) | (4,881,768) | (43,048,584) |
Total shares redeemed | (8,212,418) | ($64,162,368) | (6,077,066) | ($53,745,019) | |
Net transactions in fund shares | (5,870,070) | ($46,173,051) | 53,631,368 | $450,072,621 | |
Shares Outstanding and Net Assets | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 70,332,588 | $575,219,156 | 16,701,220 | $145,143,531 | |
Total increase or decrease | + | (5,870,070) | (140,933,523) | 53,631,368 | 430,075,625 |
End of period | 64,462,518 | $434,285,633 | 70,332,588 | $575,219,156 | |
Net investment income not yet distributed/Distributions in excess of net investment income | $4,944,204 | ($2,141,374) |
4/1/15– 9/30/15* | 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 | $9.45 | $10.89 | $11.01 | $11.61 | $11.86 | $11.20 |
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.06 1 | 0.15 1 | 0.16 1 | 0.15 | 0.20 | 0.16 |
Net realized and unrealized gains (losses) | (0.09) | (1.14) | (0.21) | (0.53) | 0.09 | 0.71 |
Total from investment operations | (0.03) | (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 | $9.42 | $9.45 | $10.89 | $11.01 | $11.61 | $11.86 |
Total return | (0.32%) 2 | (9.37%) | (0.49%) | (3.41%) | 2.48% | 7.86% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.75% 3 | 0.74% | 0.69% | 0.69% | 0.71% | 0.74% |
Gross operating expenses | 0.80% 3 | 0.76% | 0.69% | 0.69% | 0.71% | 0.74% |
Net investment income (loss) | 1.18% 3 | 1.39% | 1.48% | 1.27% | 1.51% | 1.67% |
Portfolio turnover rate | 20% 2 | 50% | 52% | 44% | 68% | 58% |
Net assets, end of period (x 1,000) | $138,480 | $187,388 | $652,647 | $741,235 | $881,405 | $966,800 |
* | Unaudited. |
Holdings by Category | Cost ($) | Value ($) | |
83.4% | Government Bonds | 120,629,239 | 115,513,037 |
14.7% | Supranational | 24,643,142 | 20,320,574 |
0.6% | Other Investment Company | 901,701 | 901,701 |
98.7% | Total Investments | 146,174,082 | 136,735,312 |
1.3% | Other Assets and Liabilities, Net | 1,744,691 | |
100.0% | Net Assets | 138,480,003 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 83.4% of net assets | ||
Australia 2.0% | ||
Australia Government Bond | ||
6.00%, 02/15/17 (AUD) | 1,000,000 | 741,022 |
4.50%, 04/15/20 (AUD) | 700,000 | 544,648 |
3.25%, 04/21/25 (AUD) | 1,000,000 | 739,610 |
4.75%, 04/21/27 (AUD) | 800,000 | 671,541 |
2,696,821 | ||
Austria 4.2% | ||
Austria Government Bond | ||
6.25%, 07/15/27 (EUR) | 3,300,000 | 5,828,732 |
Canada 4.4% | ||
Canada Government International Bond | ||
3.50%, 01/13/20 (EUR) | 4,790,000 | 6,142,709 |
Finland 3.0% | ||
Finland Government Bond | ||
3.50%, 04/15/21 (EUR) (a) | 3,180,000 | 4,199,866 |
France 4.7% | ||
France Government Bond OAT | ||
5.75%, 10/25/32 (EUR) | 3,525,000 | 6,460,475 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Japan 21.3% | ||
Japan Government Ten Year Bond | ||
1.90%, 06/20/16 (JPY) | 252,650,000 | 2,134,561 |
1.70%, 09/20/16 (JPY) | 599,950,000 | 5,083,004 |
1.10%, 06/20/20 (JPY) | 556,500,000 | 4,866,769 |
0.60%, 03/20/24 (JPY) | 95,000,000 | 816,926 |
Japan Government Thirty Year Bond | ||
2.40%, 12/20/34 (JPY) | 846,650,000 | 8,690,476 |
1.70%, 03/20/44 (JPY) | 885,400,000 | 7,966,416 |
29,558,152 | ||
Malaysia 1.8% | ||
Malaysia Government Bond | ||
3.65%, 10/31/19 (MYR) | 4,650,000 | 1,047,807 |
4.05%, 09/30/21 (MYR) | 4,400,000 | 991,150 |
4.18%, 07/15/24 (MYR) | 2,000,000 | 447,712 |
2,486,669 | ||
Mexico 4.6% | ||
Mexico Government Bond | ||
6.50%, 06/10/21 (MXN) | 96,985,000 | 6,036,180 |
7.50%, 06/03/27 (MXN) | 6,150,000 | 397,823 |
6,434,003 | ||
Netherlands 4.2% | ||
Netherlands Government Bond | ||
5.50%, 01/15/28 (EUR) | 3,443,490 | 5,868,883 |
New Zealand 4.5% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 2,750,000 | 1,888,962 |
5.00%, 03/15/19 (NZD) | 1,200,000 | 827,315 |
5.50%, 04/15/23 (NZD) | 4,650,000 | 3,478,881 |
6,195,158 | ||
Poland 4.7% | ||
Poland Government Bond | ||
4.75%, 04/25/17 (PLN) | 6,940,000 | 1,911,894 |
5.50%, 10/25/19 (PLN) | 9,500,000 | 2,817,639 |
5.75%, 04/25/29 (PLN) | 5,300,000 | 1,798,303 |
6,527,836 | ||
Spain 7.4% | ||
Spain Government Bond | ||
1.40%, 01/31/20 (EUR) | 4,317,000 | 4,959,074 |
1.60%, 04/30/25 (EUR) (a) | 3,738,000 | 4,100,224 |
4.20%, 01/31/37 (EUR) (a) | 863,000 | 1,179,967 |
10,239,265 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Sweden 4.6% | ||
Sweden Government Bond | ||
5.00%, 12/01/20 (SEK) | 32,500,000 | 4,875,511 |
3.50%, 06/01/22 (SEK) | 10,000,000 | 1,445,688 |
6,321,199 | ||
United Kingdom 12.0% | ||
United Kingdom Gilt | ||
3.75%, 09/07/21 (GBP) | 2,000,000 | 3,447,045 |
2.75%, 09/07/24 (GBP) | 2,250,000 | 3,709,337 |
5.00%, 03/07/25 (GBP) | 1,100,000 | 2,152,597 |
4.50%, 09/07/34 (GBP) | 1,300,000 | 2,623,685 |
4.25%, 09/07/39 (GBP) | 2,300,000 | 4,620,605 |
16,553,269 | ||
Total Government Bonds | ||
(Cost $120,629,239) | 115,513,037 | |
Supranational* 14.7% of net assets | ||
Asian Development Bank | ||
2.35%, 06/21/27 (JPY) | 380,000,000 | 3,919,554 |
European Investment Bank | ||
1.40%, 06/20/17 (JPY) | 615,000,000 | 5,274,651 |
European Union Notes | ||
2.75%, 06/03/16 (EUR) | 5,100,000 | 5,809,972 |
Nordic Investment Bank | ||
1.70%, 04/27/17 (JPY) | 620,000,000 | 5,316,397 |
Total Supranational | ||
(Cost $24,643,142) | 20,320,574 | |
Security | Number of Shares | Value ($) |
Other Investment Company 0.6% of net assets | ||
United States 0.6% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 901,701 | 901,701 |
Total Other Investment Company | ||
(Cost $901,701) | 901,701 |
At 09/30/15, the tax basis cost of the fund's investments was $147,765,744 and the unrealized appreciation and depreciation were $458,334 and ($11,488,766), respectively, with a net unrealized depreciation of ($11,030,432).
* | 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 $9,480,057 or 6.8% of net assets. |
(b) | The rate shown is the 7-day yield. |
AUD — | Australian dollar |
EUR — | euro currency |
GBP — | Great British pound |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PLN — | Polish zloty |
SEK — | Swedish krona |
USD — | U.S. dollar |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
10/30/2015 | State Street Bank & Trust Co. | JPY | 85,591,000 | USD | 713,704 | 1,029 | ||||||
10/30/2015 | State Street Bank & Trust Co. | JPY | 845,702,000 | USD | 7,051,920 | 203,743 | ||||||
10/30/2015 | State Street Bank & Trust Co. | NZD | 714,000 | USD | 455,519 | (8,179) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 793,041 | JPY | 95,105,500 | 2,750 | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 827,525 | JPY | 99,241,000 | 4,173 | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 769,138 | JPY | 92,239,000 | (29,680) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 6,668,190 | NZD | 10,452,000 | 269,638 | ||||||
Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | 443,474 |
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 | $— | $115,513,037 | $— | $115,513,037 | |||||
Supranational | — | 20,320,574 | — | 20,320,574 | |||||
Other Investment Company1 | 901,701 | — | — | 901,701 | |||||
Total | $901,701 | $135,833,611 | $— | $136,735,312 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $481,333 | $— | $481,333 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($37,859) | $— | ($37,859) |
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 $146,174,082) | $136,735,312 | |
Foreign currency, at value (cost $86,632) | 78,118 | |
Receivables: | ||
Interest | 1,606,908 | |
Fund shares sold | 95,128 | |
Unrealized appreciation on forward foreign currency exchange contracts | 481,333 | |
Prepaid expenses | + | 17,135 |
Total assets | 139,013,934 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 388,937 | |
Investment adviser fees | 14,319 | |
Unrealized depreciation on forward foreign currency exchange contracts | 37,859 | |
Accrued expenses | + | 92,816 |
Total liabilities | 533,931 | |
Net Assets | ||
Total assets | 139,013,934 | |
Total liabilities | – | 533,931 |
Net assets | $138,480,003 | |
Net Assets by Source | ||
Capital received from investors | 162,798,364 | |
Distributions in excess of net investment income | (7,685,399) | |
Net realized capital losses | (7,596,375) | |
Net unrealized capital depreciation | (9,036,587) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$138,480,003 | 14,704,500 | $9.42 | ||
Investment Income | ||
Interest | $1,562,197 | |
Expenses | ||
Investment adviser fees | 484,841 | |
Transfer agent fees | 50,627 | |
Professional fees | 40,173 | |
Custodian fees | 31,010 | |
Accounting and administration fees | 12,171 | |
Shareholder reports | 11,575 | |
Independent trustees' fees | 6,321 | |
Registration fees | 3,476 | |
Interest expense | 806 | |
Other expenses | + | 4,211 |
Total expenses | 645,211 | |
Expense reduction by adviser | – | 38,354 |
Net expenses | – | 606,857 |
Net investment income | 955,340 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (9,469,130) | |
Net realized losses on foreign currency transactions | + | (32,964) |
Net realized losses | (9,502,094) | |
Net change in unrealized appreciation (depreciation) on investments | 6,903,373 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 843,409 |
Net change in unrealized appreciation (depreciation) | + | 7,746,782 |
Net realized and unrealized losses | (1,755,312) | |
Decrease in net assets resulting from operations | ($799,972) |
Operations | |||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||
Net investment income | $955,340 | $4,042,543 | |
Net realized losses | (9,502,094) | (6,877,005) | |
Net change in unrealized appreciation (depreciation) | + | 7,746,782 | (16,732,227) |
Decrease in net assets from operations | (799,972) | (19,566,689) | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($—) | ($10,072,652) |
Transactions in Fund Shares | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,259,855 | $11,862,824 | 5,605,938 | $58,248,799 | |
Shares reinvested | — | — | 583,662 | 5,859,964 | |
Shares redeemed | + | (6,379,181) | (59,971,166) | (46,319,811) | (499,728,433) |
Net transactions in fund shares | (5,119,326) | ($48,108,342) | (40,130,211) | ($435,619,670) | |
Shares Outstanding and Net Assets | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 19,823,826 | $187,388,317 | 59,954,037 | $652,647,328 | |
Total decrease | + | (5,119,326) | (48,908,314) | (40,130,211) | (465,259,011) |
End of period | 14,704,500 | $138,480,003 | 19,823,826 | $187,388,317 | |
Distributions in excess of net investment income | ($7,685,399) | ($8,640,739) |
4/1/15– 9/30/15* | 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 | $8.71 | $9.30 | $9.61 | $10.00 | ||
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.08 2 | 0.17 2 | 0.13 2 | 0.11 | ||
Net realized and unrealized gains (losses) | (0.31) | (0.76) | (0.38) | (0.40) | ||
Total from investment operations | (0.23) | (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 | $8.48 | $8.71 | $9.30 | $9.61 | ||
Total return | (2.64%) 3 | (6.34%) | (2.60%) | (2.95%) 3 | ||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.85% 4 | 0.85% | 0.85% | 0.22% 4,5 | ||
Gross operating expenses | 2.11% 4 | 1.76% | 1.74% | 1.28% 4 | ||
Net investment income (loss) | 1.95% 4 | 1.80% | 1.40% | 1.56% 4 | ||
Portfolio turnover rate | 28% 3 | 62% | 42% | 73% 3 | ||
Net assets, end of period (x 1,000) | $11,333 | $13,394 | $18,575 | $29,074 | ||
* | Unaudited. |
Holdings by Category | Cost ($) | Value ($) | |
67.1% | Government Bonds | 9,089,476 | 7,609,961 |
30.2% | U.S. Government Securities | 3,364,983 | 3,420,195 |
1.3% | Other Investment Company | 141,965 | 141,965 |
0.5% | Short-Term Investment | 59,997 | 60,001 |
99.1% | Total Investments | 12,656,421 | 11,232,122 |
0.9% | Other Assets and Liabilities, Net | 100,531 | |
100.0% | Net Assets | 11,332,653 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 67.1% of net assets | ||
Brazil 5.3% | ||
Brazil Notas do Tesouro Nacional | ||
10.00%, 01/01/17 (BRL) | 800,000 | 190,387 |
10.00%, 01/01/21 (BRL) | 843,000 | 172,240 |
10.00%, 01/01/23 (BRL) | 950,000 | 183,619 |
10.00%, 01/01/25 (BRL) | 310,000 | 57,290 |
603,536 | ||
Colombia 1.7% | ||
Colombia Government International Bond | ||
7.75%, 04/14/21 (COP) | 72,000,000 | 23,725 |
Colombian TES | ||
5.00%, 11/21/18 (COP) | 77,600,000 | 24,104 |
10.00%, 07/24/24 (COP) | 170,000,000 | 61,719 |
6.00%, 04/28/28 (COP) | 340,000,000 | 89,606 |
199,154 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
France 3.6% | ||
France Government Bond OAT | ||
0.00%, 05/25/20 (EUR) | 180,000 | 199,851 |
3.00%, 04/25/22 (EUR) | 125,000 | 163,294 |
0.50%, 05/25/25 (EUR) | 47,000 | 50,612 |
413,757 | ||
Indonesia 1.7% | ||
Indonesia Treasury Bond | ||
5.63%, 05/15/23 (IDR) | 900,000,000 | 48,161 |
8.38%, 03/15/24 (IDR) | 500,000,000 | 31,670 |
8.38%, 03/15/34 (IDR) | 1,930,000,000 | 114,729 |
194,560 | ||
Japan 16.0% | ||
Japan Government Ten Year Bond | ||
1.70%, 03/20/17 (JPY) | 26,400,000 | 225,494 |
1.40%, 03/20/18 (JPY) | 55,300,000 | 476,722 |
0.80%, 09/20/20 (JPY) | 38,700,000 | 334,379 |
0.60%, 03/20/24 (JPY) | 37,500,000 | 322,471 |
Japan Government Thirty Year Bond | ||
1.70%, 03/20/44 (JPY) | 50,200,000 | 451,676 |
1,810,742 | ||
Malaysia 3.0% | ||
Malaysia Government Bond | ||
3.31%, 10/31/17 (MYR) | 590,000 | 134,053 |
4.24%, 02/07/18 (MYR) | 30,000 | 6,926 |
3.42%, 08/15/22 (MYR) | 200,000 | 43,444 |
4.18%, 07/15/24 (MYR) | 432,000 | 96,706 |
3.96%, 09/15/25 (MYR) | 130,000 | 29,107 |
3.84%, 04/15/33 (MYR) | 130,000 | 26,091 |
336,327 | ||
Mexico 7.0% | ||
Mexico Government Bond | ||
8.00%, 12/17/15 (MXN) | 280,000 | 16,715 |
7.25%, 12/15/16 (MXN) | 100,000 | 6,168 |
6.50%, 06/10/21 (MXN) | 5,184,000 | 322,643 |
8.00%, 12/07/23 (MXN) | 3,500,000 | 233,727 |
7.50%, 06/03/27 (MXN) | 1,120,000 | 72,449 |
10.00%, 11/20/36 (MXN) | 1,750,000 | 141,083 |
792,785 | ||
New Zealand 3.1% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 217,000 | 149,056 |
5.50%, 04/15/23 (NZD) | 271,000 | 202,748 |
351,804 | ||
Peru 1.8% | ||
Peru Government Bond | ||
7.84%, 08/12/20 (PEN) | 169,000 | 55,218 |
5.20%, 09/12/23 (PEN) | 20,000 | 5,440 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
6.95%, 08/12/31 (PEN) | 280,000 | 80,049 |
6.90%, 08/12/37 (PEN) | 230,000 | 63,104 |
203,811 | ||
Poland 5.1% | ||
Poland Government Bond | ||
4.75%, 04/25/17 (PLN) | 830,000 | 228,656 |
5.25%, 10/25/20 (PLN) | 310,000 | 92,670 |
5.75%, 09/23/22 (PLN) | 562,000 | 176,964 |
5.75%, 04/25/29 (PLN) | 230,000 | 78,039 |
576,329 | ||
Qatar 1.2% | ||
Qatar Government International Bond | ||
5.25%, 01/20/20 (USD) (a) | 120,000 | 135,526 |
Russia 1.3% | ||
Russian Federal Bond - OFZ | ||
7.50%, 03/15/18 (RUB) | 800,000 | 11,399 |
7.60%, 04/14/21 (RUB) | 8,600,000 | 113,562 |
8.15%, 02/03/27 (RUB) | 2,000,000 | 25,684 |
150,645 | ||
South Africa 1.8% | ||
South Africa Government Bond | ||
7.25%, 01/15/20 (ZAR) | 160,000 | 11,291 |
10.50%, 12/21/26 (ZAR) | 885,000 | 73,253 |
6.25%, 03/31/36 (ZAR) | 2,210,000 | 119,043 |
203,587 | ||
Spain 5.9% | ||
Spain Government Bond | ||
1.40%, 01/31/20 (EUR) | 130,000 | 149,335 |
5.85%, 01/31/22 (EUR) (a) | 142,000 | 202,943 |
1.60%, 04/30/25 (EUR) (a) | 192,000 | 210,606 |
4.20%, 01/31/37 (EUR) (a) | 77,000 | 105,281 |
668,165 | ||
Turkey 1.4% | ||
Turkey Government Bond | ||
6.30%, 02/14/18 (TRY) | 30,000 | 8,962 |
10.50%, 01/15/20 (TRY) | 230,000 | 75,226 |
7.10%, 03/08/23 (TRY) | 140,000 | 37,506 |
8.00%, 03/12/25 (TRY) | 130,000 | 36,192 |
157,886 | ||
United Kingdom 7.2% | ||
United Kingdom Gilt | ||
2.75%, 09/07/24 (GBP) | 155,000 | 255,532 |
4.25%, 12/07/27 (GBP) | 155,000 | 294,455 |
4.50%, 09/07/34 (GBP) | 129,500 | 261,360 |
811,347 | ||
Total Government Bonds | ||
(Cost $9,089,476) | 7,609,961 | |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
U.S. Government Securities 30.2% of net assets | ||
United States 30.2% | ||
U.S. Treasury Bond | ||
3.38%, 05/15/44 (USD) | 300,000 | 329,352 |
U.S. Treasury Notes | ||
2.00%, 01/31/16 (USD) | 144,900 | 145,828 |
1.25%, 04/30/19 (USD) | 105,000 | 105,578 |
3.63%, 08/15/19 (USD) | 495,000 | 540,730 |
1.00%, 08/31/19 (USD) | 192,000 | 190,659 |
2.13%, 08/31/20 (USD) | 540,000 | 558,886 |
3.63%, 02/15/21 (USD) | 915,000 | 1,015,429 |
2.13%, 08/15/21 (USD) | 363,000 | 373,701 |
2.50%, 05/15/24 (USD) | 153,600 | 160,032 |
Total U.S. Government Securities | ||
(Cost $3,364,983) | 3,420,195 | |
Security | Number of Shares | Value ($) |
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% (b) | 141,965 | 141,965 |
Total Other Investment Company | ||
(Cost $141,965) | 141,965 | |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Short-Term Investment 0.5% of net assets | ||
U.S. Treasury Obligation 0.5% | ||
U.S. Treasury Bill | ||
0.06%, 11/05/15 (USD) (c) | 60,000 | 60,001 |
Total Short-Term Investment | ||
(Cost $59,997) | 60,001 |
(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 $654,356 or 5.8% of net assets. |
(b) | The rate shown is the 7-day yield. |
(c) | The rate shown is the purchase yield. |
BRL — | Brazilian real |
CNY — | Chinese yuan renminbi |
COP — | Colombian peso |
EUR — | euro currency |
GBP — | Great British pound |
IDR — | Indonesian rupiah |
INR — | Indian rupee |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PEN — | Peruvian nuevo sol |
PLN — | Polish zloty |
RUB — | Russian ruble |
SEK — | Swedish krona |
TRY — | Turkish lira |
USD — | U.S. dollar |
ZAR — | South African rand |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
10/30/2015 | JPMorgan Chase Bank | CNY | 1,082,000 | USD | 169,901 | (6,063) | ||||||
10/30/2015 | State Street Bank & Trust Co. | EUR | 45,000 | USD | 50,304 | (111) | ||||||
10/30/2015 | State Street Bank & Trust Co. | EUR | 837,000 | USD | 935,656 | 9,577 | ||||||
10/30/2015 | JPMorgan Chase Bank | INR | 1,132,500 | USD | 17,175 | 267 | ||||||
10/30/2015 | JPMorgan Chase Bank | INR | 4,780,000 | USD | 72,492 | (821) | ||||||
10/30/2015 | State Street Bank & Trust Co. | JPY | 88,475,500 | USD | 737,756 | 21,315 | ||||||
10/30/2015 | State Street Bank & Trust Co. | SEK | 5,109,000 | USD | 610,770 | 13,931 | ||||||
10/30/2015 | Barclays Capital, Inc. | USD | 8,479 | CNY | 54,000 | (13) | ||||||
10/30/2015 | JPMorgan Chase Bank | USD | 18,529 | CNY | 118,000 | (154) | ||||||
10/30/2015 | Barclays Capital, Inc. | USD | 6,988 | CNY | 44,500 | (96) | ||||||
10/30/2015 | JPMorgan Chase Bank | USD | 6,988 | CNY | 44,500 | (111) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 119,612 | EUR | 107,000 | (242) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 56,452 | EUR | 50,500 | (260) | ||||||
10/30/2015 | JPMorgan Chase Bank | USD | 6,665 | INR | 439,500 | (158) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 60,367 | JPY | 7,239,500 | 7 | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 136,369 | JPY | 16,354,000 | (520) | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 68,672 | JPY | 8,235,500 | 220 | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 352,804 | NZD | 553,000 | 14,266 | ||||||
10/30/2015 | State Street Bank & Trust Co. | USD | 58,698 | SEK | 491,000 | (578) | ||||||
Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | 50,456 |
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 | $— | $7,609,961 | $— | $7,609,961 | |||||
U.S. Government Securities1 | — | 3,420,195 | — | 3,420,195 | |||||
Other Investment Company1 | 141,965 | — | — | 141,965 | |||||
Short-Term Investment1 | — | 60,001 | — | 60,001 | |||||
Total | $141,965 | $11,090,157 | $— | $11,232,122 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $59,583 | $— | $59,583 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($9,127) | $— | ($9,127) |
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 $12,656,421) | $11,232,122 | |
Foreign currency, at value (cost $6,425) | 6,415 | |
Receivables: | ||
Interest | 105,995 | |
Due from investment adviser | 1,469 | |
Fund shares sold | 200 | |
Unrealized appreciation on forward foreign currency exchange contracts | 59,583 | |
Prepaid expenses | + | 9,737 |
Total assets | 11,415,521 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 16,271 | |
Unrealized depreciation on forward foreign currency exchange contracts | 9,127 | |
Accrued expenses | + | 57,470 |
Total liabilities | 82,868 | |
Net Assets | ||
Total assets | 11,415,521 | |
Total liabilities | – | 82,868 |
Net assets | $11,332,653 | |
Net Assets by Source | ||
Capital received from investors | 13,638,905 | |
Net investment loss | (432,303) | |
Net realized capital losses | (497,033) | |
Net unrealized capital depreciation | (1,376,916) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$11,332,653 | 1,335,857 | $8.48 | ||
Investment Income | ||
Interest (net of foreign withholding taxes of $2,032) | $177,445 | |
Expenses | ||
Investment adviser fees | 43,031 | |
Professional fees | 33,092 | |
Accounting and administration fees | 12,433 | |
Transfer agent fees | 11,022 | |
Custodian fees | 8,238 | |
Shareholder reports | 7,748 | |
Sub-accounting and sub-transfer agent fees | 6,882 | |
Independent trustees' fees | 4,978 | |
Registration fees | 4,203 | |
Other expenses | + | 1,980 |
Total expenses | 133,607 | |
Expense reduction by adviser | – | 79,816 |
Net expenses | – | 53,791 |
Net investment income | 123,654 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of $58) | (416,938) | |
Net realized losses on foreign currency transactions | + | (31,206) |
Net realized losses | (448,144) | |
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gain tax of $1,267) | (150,219) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 155,774 |
Net change in unrealized appreciation (depreciation) | + | 5,555 |
Net realized and unrealized losses | (442,589) | |
Decrease in net assets resulting from operations | ($318,935) |
Operations | |||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||
Net investment income | $123,654 | $295,146 | |
Net realized losses | (448,144) | (1,180,103) | |
Net change in unrealized appreciation (depreciation) | + | 5,555 | (98,945) |
Decrease in net assets from operations | (318,935) | (983,902) |
Transactions in Fund Shares | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 2,371 | $20,471 | 68,075 | $617,461 | |
Shares redeemed | + | (205,067) | (1,762,946) | (526,298) | (4,814,778) |
Net transactions in fund shares | (202,696) | ($1,742,475) | (458,223) | ($4,197,317) | |
Shares Outstanding and Net Assets | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 1,538,553 | $13,394,063 | 1,996,776 | $18,575,282 | |
Total decrease | + | (202,696) | (2,061,410) | (458,223) | (5,181,219) |
End of period | 1,335,857 | $11,332,653 | 1,538,553 | $13,394,063 | |
Net investment loss | ($432,303) | ($555,957) |
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% |
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% |
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 | $89,473 | $— | $202,019 | ||||
March 31, 2017 | 82,359 | 53,246 | 63,797 | 149,778 | ||||
March 31, 2018 | 69,712 | 401* | 38,354 | 79,816 | ||||
Total | $179,389 | $143,120 | $102,151 | $431,613 |
* | Sub-accounting and sub-transfer agent waivers for Investor Shares. |
Purchases of Securities | Sales/Maturities of Securities | ||
Laudus Mondrian International Equity Fund | $25,571,001 | $7,280,780 | |
Laudus Mondrian Emerging Markets Fund | 65,597,008 | 120,591,971 | |
Laudus Mondrian International Government Fixed Income Fund | 31,471,935 | 69,306,708 | |
Laudus Mondrian Global Government Fixed Income Fund | 3,387,066* | 4,869,549* |
* | Includes purchases and sales/maturities of long-term U.S. Government securities of $161,082 and $1,236,006, respectively. |
Forward Foreign Currency Exchange Contract Notional Amount | Net Unrealized Appreciation (Depreciation) | ||
Laudus Mondrian International Equity Fund | $96,695* | $394 | |
Laudus Mondrian Emerging Markets Fund | 184,997 | 1,133 | |
Laudus Mondrian International Government Fixed Income Fund | 20,730,261 | 304,454 | |
Laudus Mondrian Global Government Fixed Income Fund | 3,393,162 | 45,473 |
* | During the period, the fund did not hold forwards at any month-end. The average notional amount and unrealized appreciation (depreciation) were calculated by aggregating the highest daily notional amounts held each month during the period. |
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 | $— | $— | $481,333 | $59,583 | |||||||||
Liability Derivatives | Fair Value | ||||||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $— | $37,859 | $9,127 |
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 | $1,488 | ($21,778) | $266,036 | $36,520 | |||
Change in Unrealized Appreciation (Depreciation)2 | $— | $— | $662,333 | $151,886 |
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 & Liabilities | ||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amounts(a) | ||||
State Street Bank & Trust Co. | $481,333 | ($37,859) | $— | $443,474 | ||||
Total | $481,333 | ($37,859) | $— | $443,474 | ||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | ||||
State Street Bank & Trust Co. | ($37,859) | $37,859 | $— | $— | ||||
Total | ($37,859) | $37,859 | $— | $— |
Gross Amounts Not Offset in the Statement of Assets & Liabilities | ||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amounts(a) | ||||
JPMorgan Chase Bank | $267 | ($267) | $— | $— | ||||
State Street Bank & Trust Co. | 59,316 | (1,711) | — | 57,605 | ||||
Total | $59,583 | ($1,978) | $— | $57,605 | ||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | ||||
Barclays Capital, Inc. | ($109) | $— | $— | ($109) | ||||
JPMorgan Chase Bank | (7,307) | 267 | — | (7,040) | ||||
State Street Bank & Trust Co. | (1,711) | 1,711 | — | — | ||||
Total | ($9,127) | $1,978 | $— | ($7,149) |
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 (4/1/15-9/30/15) | Prior Period (4/1/14-3/31/15) | ||
Laudus Mondrian International Equity Fund | $491 | $1,887 | |
Laudus Mondrian Emerging Markets Fund | 43 | 284 | |
Laudus Mondrian International Government Fixed Income Fund | 1,111 | 23,361 | |
Laudus Mondrian Global Government Fixed Income Fund | — | 29 |
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 | — | — | — |
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) |
The Investment Company Act of 1940 (the 1940 Act) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreements be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreements or “interested persons” of any party (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreements.
1. | the nature, extent and quality of the services provided to the Funds under the Agreements, including the resources of CSIM and its affiliates, and Mondrian, dedicated to the Funds; |
2. | each Fund’s investment performance and how it compared to that of certain other comparable mutual funds; |
3. | each Fund’s expenses and how those expenses compared to those of certain other comparable mutual funds; |
4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of Mondrian; and |
5. | the extent to which economies of scale would be realized as the Funds grow, and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors. |
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 – 2015). | 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) | Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015). | 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) Lead Independent Director and Chair of Audit Committee, OUTFRONT Media Inc. (2014 – 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). |
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). |
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. |
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. |
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00155132
Table of Contents
Total Return for the Six Months Ended September 30, 2015 | |
Laudus U.S. Large Cap Growth Fund (Ticker Symbol: LGILX) | -5.05% |
Russell 1000® Growth Index | -5.18% |
Performance Details | page 4 |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Laudus U.S. Large Cap Growth Fund (10/14/97)1 | -5.05% | 3.76% | 14.44% | 9.54% |
Russell 1000® Growth Index | -5.18% | 3.17% | 14.47% | 8.09% |
Fund Characteristics | |
Number of Securities3 | 47 |
Weighted Average Market Cap (millions) | $129,686 |
Price/Earnings Ratio (P/E) | 37.74 |
Price/Book Ratio (P/B) | 3.73 |
Portfolio Turnover (One year trailing) | 78% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 10/14/1997* |
Ticker Symbol | LGILX |
Cusip | 51855Q549 |
NAV | $16.35 |
Information Technology | 35.4% |
Consumer Discretionary | 24.0% |
Health Care | 21.7% |
Consumer Staples | 5.9% |
Financials | 5.7% |
Industrials | 3.6% |
Materials | 2.8% |
Energy | 0.9% |
Total | 100.0% |
Google, Inc., Class A | 6.4% |
Facebook, Inc., Class A | 6.4% |
Visa, Inc., Class A | 4.3% |
Amazon.com, Inc. | 3.5% |
Apple, Inc. | 3.2% |
salesforce.com, Inc. | 3.0% |
Netflix, Inc. | 2.8% |
United Therapeutics Corp. | 2.8% |
Biogen, Inc. | 2.7% |
UnitedHealth Group, Inc. | 2.7% |
Total | 37.8% |
* | Inception date is that of the fund’s predecessor fund, the Y Class of the UBS U.S. Large Cap Growth Fund. |
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 fund. The performance and financial history prior to July 13, 2009 are that of the Class Y shares of the predecessor 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 | Short-term investments are not included. |
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 4/1/15 | Ending Account Value (Net of Expenses) at 9/30/15 | Expenses Paid During Period2 4/1/15-9/30/15 | |
Laudus U.S. Large Cap Growth Fund | ||||
Actual Return | 0.74% | $1,000.00 | $ 949.50 | $3.61 |
Hypothetical 5% Return | 0.74% | $1,000.00 | $1,021.30 | $ 3.74 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year. |
4/1/15– 9/30/15* | 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 | $17.22 | $18.19 | $15.58 | $14.83 | $13.36 | $11.23 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.00) 2 | (0.01) | (0.02) | 0.02 | (0.02) | 0.01 |
Net realized and unrealized gains (losses) | (0.87) | 2.44 | 3.85 | 1.01 | 1.77 | 2.13 |
Total from investment operations | (0.87) | 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 | $16.35 | $17.22 | $18.19 | $15.58 | $14.83 | $13.36 |
Total return | (5.05%) 3 | 14.99% | 24.81% | 7.09% | 13.58% | 19.07% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.74% 4 | 0.77% | 0.78% 5 | 0.78% | 0.78% | 0.78% |
Gross operating expenses | 0.74% 4 | 0.77% | 0.78% | 0.82% | 0.88% | 0.94% |
Net investment income (loss) | (0.02%) 4 | (0.06%) | (0.12%) | 0.13% | (0.17%) | 0.06% |
Portfolio turnover rate | 36% 3 | 102% | 124% | 76% | 96% | 98% |
Net assets, end of period (x 1,000) | $2,055,123 | $2,171,783 | $2,122,365 | $1,695,291 | $1,029,502 | $468,963 |
* | Unaudited. |
Holdings by Category | Cost ($) | Value ($) | |
95.4% | Common Stock | 1,745,289,663 | 1,961,166,099 |
5.1% | Other Investment Company | 104,695,425 | 104,695,425 |
100.5% | Total Investments | 1,849,985,088 | 2,065,861,524 |
(0.5%) | Other Assets and Liabilities, Net | (10,738,676) | |
100.0% | Net Assets | 2,055,122,848 |
Security | Number of Shares | Value ($) |
Common Stock 95.4% of net assets | ||
Automobiles & Components 1.2% | ||
Delphi Automotive plc | 322,548 | 24,526,550 |
Consumer Durables & Apparel 2.9% | ||
Hanesbrands, Inc. | 774,279 | 22,407,634 |
NIKE, Inc., Class B | 306,005 | 37,629,435 |
60,037,069 | ||
Consumer Services 1.0% | ||
Starbucks Corp. | 379,952 | 21,596,472 |
Diversified Financials 3.6% | ||
Berkshire Hathaway, Inc., Class B * | 325,945 | 42,503,228 |
Moody's Corp. | 319,573 | 31,382,069 |
73,885,297 | ||
Energy 0.8% | ||
Concho Resources, Inc. * | 174,958 | 17,198,371 |
Food & Staples Retailing 3.4% | ||
Costco Wholesale Corp. | 250,528 | 36,218,833 |
CVS Health Corp. | 339,442 | 32,749,364 |
68,968,197 | ||
Food, Beverage & Tobacco 2.3% | ||
Constellation Brands, Inc., Class A | 283,737 | 35,526,710 |
Mead Johnson Nutrition Co. | 170,629 | 12,012,281 |
47,538,991 |
Security | Number of Shares | Value ($) |
Health Care Equipment & Services 4.6% | ||
Humana, Inc. | 217,370 | 38,909,230 |
UnitedHealth Group, Inc. | 475,127 | 55,119,483 |
94,028,713 | ||
Materials 2.7% | ||
Ecolab, Inc. | 184,697 | 20,264,955 |
The Sherwin-Williams Co. | 153,777 | 34,258,440 |
54,523,395 | ||
Media 3.5% | ||
Liberty Global plc, Class A * | 1,032,201 | 44,322,711 |
The Walt Disney Co. | 269,321 | 27,524,606 |
71,847,317 | ||
Pharmaceuticals, Biotechnology & Life Sciences 16.1% | ||
AbbVie, Inc. | 791,822 | 43,083,035 |
Allergan plc * | 140,560 | 38,205,614 |
Biogen, Inc. * | 191,630 | 55,919,550 |
Celgene Corp. * | 209,382 | 22,648,851 |
Illumina, Inc. * | 94,694 | 16,649,099 |
Perrigo Co., plc | 303,299 | 47,699,834 |
United Therapeutics Corp. * | 437,185 | 57,376,159 |
Valeant Pharmaceuticals International, Inc. * | 161,749 | 28,852,787 |
Vertex Pharmaceuticals, Inc. * | 196,960 | 20,511,414 |
330,946,343 | ||
Real Estate 1.8% | ||
Crown Castle International Corp. | 470,383 | 37,099,107 |
Retailing 14.2% | ||
Amazon.com, Inc. * | 141,446 | 72,404,793 |
Dollar General Corp. | 599,980 | 43,462,551 |
Netflix, Inc. * | 566,311 | 58,477,274 |
Restoration Hardware Holdings, Inc. * | 283,770 | 26,478,579 |
The Home Depot, Inc. | 376,521 | 43,484,410 |
TripAdvisor, Inc. * | 769,940 | 48,521,619 |
292,829,226 | ||
Software & Services 30.6% | ||
Alliance Data Systems Corp. * | 191,916 | 49,702,406 |
Facebook, Inc., Class A * | 1,462,640 | 131,491,336 |
Google, Inc., Class A * | 207,070 | 132,187,276 |
LinkedIn Corp., Class A * | 161,582 | 30,721,585 |
MasterCard, Inc., Class A | 327,671 | 29,529,710 |
Mobileye N.V. * | 538,960 | 24,511,901 |
salesforce.com, Inc. * | 874,493 | 60,716,049 |
Splunk, Inc. * | 330,308 | 18,282,548 |
Tencent Holdings Ltd. | 2,452,200 | 41,335,731 |
Visa, Inc., Class A | 1,259,464 | 87,734,262 |
Workday, Inc., Class A * | 327,481 | 22,550,342 |
628,763,146 |
Security | Number of Shares | Value ($) |
Technology Hardware & Equipment 3.2% | ||
Apple, Inc. | 595,465 | 65,679,790 |
Transportation 3.5% | ||
Delta Air Lines, Inc. | 497,876 | 22,339,696 |
Union Pacific Corp. | 558,290 | 49,358,419 |
71,698,115 | ||
Total Common Stock | ||
(Cost $1,745,289,663) | 1,961,166,099 | |
Other Investment Company 5.1% of net assets | ||
Money Market Fund 5.1% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 104,695,425 | 104,695,425 |
Total Other Investment Company | ||
(Cost $104,695,425) | 104,695,425 |
At 09/30/15, the tax basis cost of the fund's investments was $1,853,702,659 and the unrealized appreciation and depreciation were $252,125,778 and ($39,966,913), respectively, with a net unrealized appreciation of $212,158,865.
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
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 | $1,332,402,953 | $— | $— | $1,332,402,953 | |||||
Software & Services | 587,427,415 | 41,335,731 | — | 628,763,146 | |||||
Other Investment Company1 | 104,695,425 | — | — | 104,695,425 | |||||
Total | $2,024,525,793 | $41,335,731 | $— | $2,065,861,524 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $1,849,985,088) | $2,065,861,524 | |
Foreign currency, at value (cost $100) | 100 | |
Receivables: | ||
Investments sold | 16,875,885 | |
Fund shares sold | 13,157,055 | |
Dividends | 288,601 | |
Prepaid expenses | + | 61,101 |
Total assets | 2,096,244,266 | |
Liabilities | ||
Payables: | ||
Investments bought | 38,946,775 | |
Fund shares redeemed | 1,423,902 | |
Investment adviser fees | 249,093 | |
Accrued expenses | + | 501,648 |
Total liabilities | 41,121,418 | |
Net Assets | ||
Total assets | 2,096,244,266 | |
Total liabilities | – | 41,121,418 |
Net assets | $2,055,122,848 | |
Net Assets by Source | ||
Capital received from investors | 1,713,114,774 | |
Net investment loss | (1,966,692) | |
Net realized capital gains | 128,098,330 | |
Net unrealized capital appreciation | 215,876,436 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$2,055,122,848 | 125,716,412 | $16.35 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $782) | $7,986,210 | |
Expenses | ||
Investment adviser fees | 6,867,432 | |
Sub-accounting and sub-transfer agent fees | 922,245 | |
Transfer agent fees | 126,503 | |
Shareholder reports | 63,741 | |
Accounting and administration fees | 48,694 | |
Custodian fees | 41,027 | |
Professional fees | 38,214 | |
Registration fees | 30,763 | |
Independent trustees' fees | 22,370 | |
Interest expense | 809 | |
Other expenses | + | 22,116 |
Total expenses | – | 8,183,914 |
Net investment loss | (197,704) | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 35,297,105 | |
Net realized losses on foreign currency transactions | + | (645) |
Net realized gains | 35,296,460 | |
Net change in unrealized appreciation (depreciation) on investments | + | (143,576,003) |
Net realized and unrealized losses | (108,279,543) | |
Decrease in net assets resulting from operations | ($108,477,247) |
Operations | |||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||
Net investment loss | ($197,704) | ($1,218,447) | |
Net realized gains | 35,296,460 | 298,063,228 | |
Net change in unrealized appreciation (depreciation) | + | (143,576,003) | 9,864,866 |
Increase (decrease) in net assets from operations | (108,477,247) | 306,709,647 | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($—) | ($380,081,181) |
Transactions in Fund Shares | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 13,984,071 | $245,813,836 | 25,502,047 | $453,837,486 | |
Shares reinvested | — | — | 21,694,327 | 343,421,201 | |
Shares redeemed | + | (14,390,238) | (253,997,013) | (37,735,284) | (674,468,404) |
Net transactions in fund shares | (406,167) | ($8,183,177) | 9,461,090 | $122,790,283 | |
Shares Outstanding and Net Assets | |||||
4/1/15-9/30/15 | 4/1/14-3/31/15 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 126,122,579 | $2,171,783,272 | 116,661,489 | $2,122,364,523 | |
Total increase or decrease | + | (406,167) | (116,660,424) | 9,461,090 | 49,418,749 |
End of period | 125,716,412 | $2,055,122,848 | 126,122,579 | $2,171,783,272 | |
Net investment loss | ($1,966,692) | ($1,768,988) |
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 | |
$760,586,478 | $854,936,333 |
Current Period (4/1/15-9/30/15) | Prior Period (4/1/14-3/31/15) | |
$22,892 | $32,592 |
The Investment Company Act of 1940 (the 1940 Act) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreements be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreements or “interested persons” of any party (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreements.
1. | the nature, extent and quality of the services provided to the Fund under the Agreements, including the resources of CSIM and its affiliates, and BlackRock, dedicated to the Fund; |
2. | the Fund’s investment performance and how it compared to that of certain other comparable mutual funds; |
3. | the Fund’s expenses and how those expenses compared to those of certain other comparable mutual funds; |
4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of BlackRock; and |
5. | the extent to which economies of scale would be realized as the Fund grows, and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors. |
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 – 2015). | 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) | Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015). | 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) Lead Independent Director and Chair of Audit Committee, OUTFRONT Media Inc. (2014 – 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. |
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00155133
Table of Contents
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
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.
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Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, 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) | Code of ethics – not applicable to this semi-annual report. | ||
(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-CSRS with the Commission. |
Table of Contents
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Laudus Trust
By: | /s/ Marie Chandoha | |
Marie Chandoha | ||
Chief Executive Officer | ||
Date: | November 3, 2015 |
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 | ||
Chief Executive Officer | ||
Date: | November 3, 2015 | |
By: | /s/ George Pereira | |
George Pereira | ||
Principal Financial Officer | ||
Date: | November 4, 2015 |