Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05547
Laudus Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California | 94105 | |
(Address of principal executive offices) | (Zip code) |
Marie Chandoha
Laudus Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: March 31
Date of reporting period: March 31, 2016
Item 1: Report(s) to Shareholders.
Table of Contents
1 | |
2 | |
4 | |
Performance and Fund Facts | |
6 | |
9 | |
12 | |
15 | |
18 | |
Financial Statements and Portfolio Holdings | |
19 | |
26 | |
34 | |
41 | |
49 | |
63 | |
64 | |
65 | |
66 | |
70 |
Total Return for the 12 Months Ended March 31, 2016 | |
Laudus Mondrian International Equity Fund1 | |
Investor Shares (Ticker Symbol: LIEQX) | -7.20% |
Select Shares (Ticker Symbol: LIEFX) | -6.84% |
Institutional Shares (Ticker Symbol: LIEIX) | -6.88% |
MSCI EAFE Index® (Net) | -8.27% |
MSCI EAFE® Value Index (Net) | -12.82% |
Performance Details | pages 6-8 |
Laudus Mondrian Emerging Markets Fund1 | |
Investor Shares (Ticker Symbol: LEMIX) | -13.21% |
Select Shares (Ticker Symbol: LEMSX) | -12.88% |
Institutional Shares (Ticker Symbol: LEMNX) | -12.87% |
MSCI Emerging Markets Index (Net) | -12.03% |
Performance Details | pages 9-11 |
Laudus Mondrian International Government Fixed Income Fund (Ticker Symbol: LIFNX) | 7.27% |
Citigroup Non-U.S. Dollar World Government Bond Index | 7.74% |
Performance Details | pages 12-14 |
Laudus Mondrian Global Government Fixed Income Fund (Ticker Symbol: LMGDX) | 5.17% |
Custom Composite Index2 | 4.44% |
Citigroup World Government Bond Index | 5.92% |
Performance Details | pages 15-17 |
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 a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index. |
1 | Thomson Reuters Lipper is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical and are based on total return with capital gains and dividends reinvested. |
Fund Characteristics | |
Number of Companies1 | 38 |
Weighted Average Market Cap (millions) | $72,284 |
Price/Earnings Ratio (P/E) | 31.62 |
Price/Book Ratio (P/B) | 1.60 |
Portfolio Turnover (One year trailing) | 29% |
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 | $5.63 | $5.67 | $5.68 |
1 | Short-term investments are not included. |
June 16, 2008 – March 31, 2016
Performance of Hypothetical
$10,000 Investment in Investor Shares1
Performance of Hypothetical
$50,000 Investment in Select Shares1
June 16, 2008 – March 31, 2016
Performance of Hypothetical
$500,000 Investment in Institutional Shares1
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (6/16/08) | -7.20% | 3.25% | -0.58% |
Select Shares (6/16/08) | -6.84% | 3.51% | -0.34% |
Institutional Shares (6/16/08) | -6.88% | 3.56% | -0.28% |
MSCI EAFE Index® (Net) | -8.27% | 2.29% | 0.15% |
MSCI EAFE® Value Index (Net) | -12.82% | 0.82% | -0.81% |
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. |
United Kingdom | 23.0% |
Switzerland | 15.8% |
Japan | 15.5% |
Germany | 10.8% |
Spain | 6.9% |
France | 5.7% |
Singapore | 4.8% |
Netherlands | 3.3% |
United States | 3.1% |
Sweden | 2.9% |
Italy | 2.8% |
Other countries | 5.4% |
Total | 100.0% |
Financials | 15.6% |
Consumer Staples | 15.4% |
Telecommunication Services | 14.9% |
Health Care | 12.9% |
Energy | 9.1% |
Information Technology | 8.8% |
Utilities | 7.4% |
Industrials | 6.9% |
Consumer Discretionary | 5.4% |
Materials | 3.6% |
Total | 100.0% |
ABB Ltd. – Reg'd | 3.8% |
Unilever plc | 3.7% |
GlaxoSmithKline plc | 3.6% |
Syngenta AG – Reg'd | 3.6% |
Takeda Pharmaceutical Co., Ltd. | 3.5% |
Honda Motor Co., Ltd. | 3.5% |
Nestle S.A. – Reg'd | 3.4% |
SAP SE | 3.4% |
Koninklijke Ahold N.V. | 3.3% |
Royal Dutch Shell plc, B Shares | 3.3% |
Total | 35.1% |
Management views and portfolio holdings may have changed since the report date.
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Companies1 | 48 |
Weighted Average Market Cap (millions) | $38,836 |
Price/Earnings Ratio (P/E) | 13.83 |
Price/Book Ratio (P/B) | 1.62 |
Portfolio Turnover (One year trailing) | 28% |
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 | $7.04 | $7.04 | $7.03 |
1 | Short-term investments are not included. |
November 2, 2007 – March 31, 2016
Performance of Hypothetical
$10,000 Investment in Investor Shares1
Performance of Hypothetical
$50,000 Investment in Select Shares1
November 2, 2007 – March 31, 2016
Performance of Hypothetical
$500,000 Investment in Institutional Shares1
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (11/2/07) | -13.21% | -4.64% | -2.71% |
Select Shares (11/2/07) | -12.88% | -4.34% | -2.42% |
Institutional Shares (11/2/07) | -12.87% | -4.27% | -2.36% |
MSCI Emerging Markets Index (Net) | -12.03% | -4.13% | -2.93% |
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. |
China | 15.8% |
Taiwan | 15.0% |
India | 11.9% |
Republic of Korea | 10.5% |
Malaysia | 6.9% |
Mexico | 5.5% |
South Africa | 5.1% |
Brazil | 4.4% |
United States | 4.2% |
Indonesia | 3.4% |
United Kingdom | 2.8% |
Philippines | 2.6% |
Other countries | 11.9% |
Total | 100.0% |
Financials | 26.0% |
Information Technology | 17.0% |
Telecommunication Services | 14.9% |
Consumer Discretionary | 12.4% |
Consumer Staples | 9.3% |
Industrials | 7.0% |
Utilities | 6.9% |
Energy | 4.4% |
Health Care | 2.1% |
Total | 100.0% |
Taiwan Semiconductor Manufacturing Co., Ltd. | 4.8% |
Samsung Electronics Co., Ltd. | 4.0% |
Fibra Uno Administracion S.A. de C.V. | 3.9% |
China Mobile Ltd. | 3.5% |
China Resources Power Holdings Co., Ltd. | 3.4% |
SK Telecom Co., Ltd. | 3.3% |
Hyundai Mobis Co., Ltd. | 3.0% |
Taiwan Mobile Co., Ltd. | 2.8% |
Hengan International Group Co., Ltd. | 2.7% |
Unilever plc | 2.7% |
Total | 34.1% |
Management views and portfolio holdings may have changed since the report date.
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues1 | 40 |
Weighted Average Maturity2 | 9.4 Yrs |
Weighted Average Duration2 | 7.7 Yrs |
Portfolio Turnover (One year trailing) | 31% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 11/2/2007 |
Ticker Symbol | LIFNX |
Cusip | 51855Q655 |
NAV | $9.93 |
1 | Short-term investments are not included. |
2 | See Glossary for definitions of maturity and duration. |
Performance of Hypothetical
$10,000 Investment1,2
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Laudus Mondrian International Government Fixed Income Fund (11/2/07) | 7.27% | -0.86% | 2.70% |
Citigroup Non-U.S. Dollar World Government Bond Index | 7.74% | 0.24% | 2.72% |
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. |
Japan | 17.5% |
Supranatural | 15.0% |
Spain | 10.3% |
United Kingdom | 9.0% |
Malaysia | 5.2% |
Poland | 4.9% |
Sweden | 4.9% |
France | 4.9% |
Mexico | 4.7% |
Netherlands | 4.7% |
New Zealand | 4.6% |
Canada | 4.2% |
Austria | 3.5% |
Finland | 3.0% |
Other countries | 3.6% |
Total | 100.0% |
Japanese Yen | 34.8% |
Euro Currency | 31.6% |
Great British Pound | 8.9% |
Malaysian Ringgit | 5.2% |
Polish Zloty | 4.9% |
Swedish Krona | 4.9% |
Mexican Peso | 4.7% |
Australian Dollar | 2.0% |
Canadian Dollar | 2.0% |
U.S. Dollar | 1.0% |
New Zealand Dollar | 0.0% 3 |
Total | 100.0% |
Government Bonds | 83.5% |
Supranational | 15.0% |
Other Investment Companies | 1.5% |
Total | 100.0% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 6.6% |
Japan Government Thirty Year Bond, 2.40%, 12/20/34 | 5.8% |
Spain Government Bond, 1.60%, 04/30/25 | 4.9% |
France Government Bond OAT, 5.75%, 10/25/32 | 4.8% |
Netherlands Government Bond, 5.50%, 01/15/28 | 4.7% |
Nordic Investment Bank, 1.70%, 04/27/17 | 4.7% |
Mexico Government Bond, 6.50%, 06/10/21 | 4.4% |
Spain Government Bond, 1.40%, 01/31/20 | 4.3% |
Sweden Government Bond, 5.00%, 12/01/20 | 3.8% |
European Investment Bank, 1.40%, 06/20/17 | 3.7% |
Total | 47.7% |
Management views and portfolio holdings may have changed since the report date.
1 | Country weights may include issues via Samurai bonds issued in Japanese yen by non-Japanese entities and/or Yankee bonds issued in U.S. dollars by non-U.S. entities. |
2 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
3 | Amount is less than 0.05% |
4 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues2 | 68 |
Weighted Average Maturity3 | 8.7 Yrs |
Weighted Average Duration3 | 6.7 Yrs |
Portfolio Turnover (One year trailing) | 42% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 7/10/2012 |
Ticker Symbol | LMGDX |
Cusip | 51855Q119 |
NAV | $9.16 |
1 | The Custom Composite Index is composed of a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index. |
2 | Short-term investments are not included. |
3 | See Glossary for definitions of maturity and duration. |
Performance of Hypothetical
$10,000 Investment1
Fund and Inception Date | 1 Year | Since Inception |
Laudus Mondrian Global Government Fixed Income Fund (7/10/12) | 5.17% | -1.90% |
Custom Composite Index2 | 4.44% | -0.77% |
Citigroup World Government Bond Index | 5.92% | 0.04% |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | The Custom Composite Index is composed of a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index. |
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. |
United States | 31.2% |
Japan | 13.4% |
Mexico | 7.2% |
United Kingdom | 6.6% |
Malaysia | 6.3% |
Brazil | 6.0% |
Spain | 5.3% |
Poland | 4.8% |
South Africa | 3.7% |
New Zealand | 3.0% |
France | 2.7% |
Colombia | 2.6% |
Other countries | 7.2% |
Total | 100.0% |
Japanese Yen | 19.1% |
Euro Currency | 16.2% |
U.S. Dollar | 12.7% |
Mexican Peso | 7.2% |
Great British Pound | 6.5% |
Malaysian Ringgit | 6.3% |
Brazilian Real | 6.0% |
Polish Zloty | 4.8% |
Swedish Krona | 4.4% |
South African Rand | 3.7% |
Colombian Peso | 2.6% |
Indonesian Rupiah | 2.3% |
Singapore Dollar | 2.3% |
Turkish Lira | 2.1% |
Canadian Dollar | 1.8% |
Peruvian Nuevo Sol | 1.5% |
Chilean Peso | 0.5% |
New Zealand Dollar | 0.0% 3 |
Total | 100.0% |
Government Bonds | 68.8% |
U.S. Government Securities | 29.3% |
Other Investment Companies | 1.9% |
Total | 100.0% |
U.S. Treasury Notes, 3.63%, 02/15/21 | 7.4% |
U.S. Treasury Notes, 3.63%, 08/15/19 | 5.8% |
U.S. Treasury Bond, 3.38%, 05/15/44 | 4.2% |
Japan Government Ten Year Bond, 0.60%, 03/20/24 | 3.6% |
Japan Government Thirty Year Bond, 1.70%, 03/20/44 | 3.6% |
Japan Government Ten Year Bond, 0.80%, 09/20/20 | 3.4% |
United Kingdom Gilt, 4.25%, 12/07/27 | 2.9% |
United Kingdom Gilt, 4.50%, 09/07/34 | 2.7% |
Mexico Government Bond, 6.50%, 06/10/21 | 2.6% |
U.S. Treasury Notes, 2.50%, 08/15/23 | 2.4% |
Total | 38.6% |
Management views and portfolio holdings may have changed since the report date.
1 | Country weights may include issues via Samurai bonds issued in Japanese yen by non-Japanese entities and/or Yankee bonds issued in U.S. dollars by non-U.S. entities. |
2 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
3 | Amount is less than 0.05% |
4 | This list is not a recommendation of any security by the investment adviser or subadviser. |
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
Expense Ratio1 (Annualized) | Beginning Account Value at 10/1/15 | Ending Account Value (Net of Expenses) at 3/31/16 | Expenses Paid During Period2 10/1/15-3/31/16 | |
Laudus Mondrian International Equity Fund | ||||
Investor Shares | ||||
Actual Return | 1.29% | $1,000.00 | $1,030.30 | $ 6.55 |
Hypothetical 5% Return | 1.29% | $1,000.00 | $ 1,018.55 | $ 6.51 |
Select Shares | ||||
Actual Return | 1.03% | $1,000.00 | $ 1,033.70 | $ 5.24 |
Hypothetical 5% Return | 1.03% | $1,000.00 | $ 1,019.85 | $ 5.20 |
Institutional Shares | ||||
Actual Return | 0.90% | $1,000.00 | $ 1,031.20 | $ 4.57 |
Hypothetical 5% Return | 0.90% | $1,000.00 | $ 1,020.50 | $ 4.55 |
Laudus Mondrian Emerging Markets Fund | ||||
Investor Shares | ||||
Actual Return | 1.57% | $1,000.00 | $ 1,056.50 | $ 8.07 |
Hypothetical 5% Return | 1.57% | $1,000.00 | $ 1,017.15 | $ 7.92 |
Select Shares | ||||
Actual Return | 1.28% | $1,000.00 | $ 1,057.30 | $ 6.58 |
Hypothetical 5% Return | 1.28% | $1,000.00 | $ 1,018.60 | $6.46 |
Institutional Shares | ||||
Actual Return | 1.20% | $1,000.00 | $ 1,057.50 | $ 6.17 |
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 | $ 1,076.10 | $3.89 |
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 | $1,080.20 | $ 4.42 |
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 which covers a 12-month period. |
2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year. |
Investor Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $6.45 | $8.76 | $7.43 | $7.19 | $7.73 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.16 | 0.29 | 0.21 | 0.26 | |
Net realized and unrealized gains (losses) | (0.59) | (0.31) | 1.25 | 0.26 | (0.45) | |
Total from investment operations | (0.47) | (0.15) | 1.54 | 0.47 | (0.19) | |
Less distributions: | ||||||
Distributions from net investment income | (0.13) | (0.88) | (0.21) | (0.22) | (0.30) | |
Distributions from net realized gains | (0.22) | (1.28) | — | (0.01) | (0.05) | |
Total distributions | (0.35) | (2.16) | (0.21) | (0.23) | (0.35) | |
Net asset value at end of period | $5.63 | $6.45 | $8.76 | $7.43 | $7.19 | |
Total return | (7.20%) | (0.02%) | 20.86% | 6.79% | (2.02%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.26% | 1.17% | 1.27% | 1.40% | 1.40% | |
Gross operating expenses | 1.42% | 1.33% | 1.29% | 1.51% | 1.63% | |
Net investment income (loss) | 1.99% | 2.08% | 3.56% | 3.03% | 3.49% | |
Portfolio turnover rate | 29% | 36% 2 | 25% | 29% | 35% | |
Net assets, end of period (x 1,000) | $5,187 | $3,486 | $1,185 | $926 | $1,048 | |
Select Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $6.48 | $8.79 | $7.45 | $7.20 | $7.75 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.13 | 0.20 | 0.37 | 0.24 | 0.26 | |
Net realized and unrealized gains (losses) | (0.58) | (0.35) | 1.19 | 0.26 | (0.44) | |
Total from investment operations | (0.45) | (0.15) | 1.56 | 0.50 | (0.18) | |
Less distributions: | ||||||
Distributions from net investment income | (0.14) | (0.88) | (0.22) | (0.24) | (0.32) | |
Distributions from net realized gains | (0.22) | (1.28) | — | (0.01) | (0.05) | |
Total distributions | (0.36) | (2.16) | (0.22) | (0.25) | (0.37) | |
Net asset value at end of period | $5.67 | $6.48 | $8.79 | $7.45 | $7.20 | |
Total return | (6.84%) | 0.04% | 21.17% | 7.18% | (1.82%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.04% | 1.08% 3 | 1.07% | 1.12% | 1.12% | |
Gross operating expenses | 1.19% | 1.23% | 1.08% | 1.26% | 1.40% | |
Net investment income (loss) | 2.14% | 2.56% | 4.53% | 3.37% | 3.51% | |
Portfolio turnover rate | 29% | 36% 2 | 25% | 29% | 35% | |
Net assets, end of period (x 1,000) | $4,465 | $2,981 | $2,238 | $768 | $938 |
Institutional Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $6.50 | $8.81 | $7.46 | $7.22 | $7.76 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.16 | 0.27 | 0.35 | 0.23 | 0.29 | |
Net realized and unrealized gains (losses) | (0.61) | (0.41) | 1.22 | 0.27 | (0.46) | |
Total from investment operations | (0.45) | (0.14) | 1.57 | 0.50 | (0.17) | |
Less distributions: | ||||||
Distributions from net investment income | (0.15) | (0.89) | (0.22) | (0.25) | (0.32) | |
Distributions from net realized gains | (0.22) | (1.28) | — | (0.01) | (0.05) | |
Total distributions | (0.37) | (2.17) | (0.22) | (0.26) | (0.37) | |
Net asset value at end of period | $5.68 | $6.50 | $8.81 | $7.46 | $7.22 | |
Total return | (6.88%) | 0.11% | 21.31% | 7.10% | (1.63%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.91% 2 | 1.01% 3 | 1.05% | 1.05% | 1.05% | |
Gross operating expenses | 1.06% | 1.07% | 1.07% | 1.11% | 1.23% | |
Net investment income (loss) | 2.53% | 3.28% | 4.24% | 3.22% | 3.92% | |
Portfolio turnover rate | 29% | 36% 4 | 25% | 29% | 35% | |
Net assets, end of period (x 1,000) | $110,873 | $91,981 | $162,366 | $127,709 | $119,049 | |
Holdings by Category | Cost ($) | Value ($) | |
98.7% | Common Stock | 111,148,609 | 118,899,685 |
3.1% | Other Investment Company | 3,743,700 | 3,743,700 |
101.8% | Total Investments | 114,892,309 | 122,643,385 |
(1.8%) | Other Assets and Liabilities, Net | (2,118,434) | |
100.0% | Net Assets | 120,524,951 |
Security | Number of Shares | Value ($) |
Common Stock 98.7% of net assets | ||
Australia 1.5% | ||
Insurance 1.5% | ||
QBE Insurance Group Ltd. | 209,582 | 1,751,417 |
China 1.7% | ||
Telecommunication Services 1.7% | ||
China Mobile Ltd. | 180,000 | 1,993,494 |
France 5.8% | ||
Capital Goods 2.7% | ||
Compagnie de Saint-Gobain | 73,364 | 3,222,454 |
Pharmaceuticals, Biotechnology & Life Sciences 3.1% | ||
Sanofi | 47,297 | 3,802,477 |
7,024,931 | ||
Germany 11.0% | ||
Automobiles & Components 1.8% | ||
Daimler AG — Reg'd | 28,869 | 2,209,419 |
Insurance 1.8% | ||
Allianz SE — Reg'd | 13,273 | 2,155,601 |
Software & Services 3.4% | ||
SAP SE | 51,396 | 4,135,752 |
Telecommunication Services 2.7% | ||
Deutsche Telekom AG — Reg'd | 182,166 | 3,265,928 |
Utilities 1.3% | ||
RWE AG | 118,043 | 1,518,558 |
13,285,258 |
Security | Number of Shares | Value ($) |
Italy 2.8% | ||
Energy 2.8% | ||
Eni S.p.A. | 223,324 | 3,372,791 |
Japan 15.8% | ||
Automobiles & Components 3.5% | ||
Honda Motor Co., Ltd. | 152,600 | 4,172,250 |
Capital Goods 0.3% | ||
Mitsubishi Electric Corp. | 36,000 | 377,205 |
Household & Personal Products 1.6% | ||
Kao Corp. | 36,200 | 1,930,253 |
Insurance 2.7% | ||
Tokio Marine Holdings, Inc. | 97,700 | 3,301,079 |
Pharmaceuticals, Biotechnology & Life Sciences 3.5% | ||
Takeda Pharmaceutical Co., Ltd. | 92,300 | 4,208,007 |
Technology Hardware & Equipment 2.8% | ||
Canon, Inc. | 113,600 | 3,387,886 |
Telecommunication Services 1.4% | ||
NTT DOCOMO, Inc. | 72,900 | 1,657,120 |
19,033,800 | ||
Netherlands 3.3% | ||
Food & Staples Retailing 3.3% | ||
Koninklijke Ahold N.V. | 177,979 | 3,997,639 |
Singapore 4.9% | ||
Banks 2.6% | ||
United Overseas Bank Ltd. | 223,120 | 3,121,001 |
Telecommunication Services 2.3% | ||
Singapore Telecommunications Ltd. | 983,400 | 2,783,042 |
5,904,043 | ||
Spain 7.0% | ||
Banks 1.1% | ||
Banco Santander S.A. | 292,319 | 1,283,829 |
Telecommunication Services 2.9% | ||
Telefonica S.A. | 313,397 | 3,502,716 |
Utilities 3.0% | ||
Iberdrola S.A. | 552,607 | 3,678,678 |
8,465,223 | ||
Sweden 3.0% | ||
Telecommunication Services 3.0% | ||
TeliaSonera AB | 685,180 | 3,550,313 |
Switzerland 16.1% | ||
Capital Goods 3.8% | ||
ABB Ltd. — Reg'd * | 232,622 | 4,531,778 |
Food, Beverage & Tobacco 3.4% | ||
Nestle S.A. — Reg'd | 55,620 | 4,150,405 |
Insurance 2.8% | ||
Zurich Insurance Group AG * | 14,816 | 3,435,998 |
Materials 3.6% | ||
Syngenta AG — Reg'd | 10,325 | 4,281,743 |
Security | Number of Shares | Value ($) |
Pharmaceuticals, Biotechnology & Life Sciences 2.5% | ||
Novartis AG — Reg'd | 41,836 | 3,026,913 |
19,426,837 | ||
Taiwan 2.4% | ||
Semiconductors & Semiconductor Equipment 2.4% | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 590,154 | 2,943,589 |
United Kingdom 23.4% | ||
Banks 2.9% | ||
Lloyds Banking Group plc | 3,599,243 | 3,505,651 |
Energy 6.2% | ||
BP plc | 681,570 | 3,410,139 |
Royal Dutch Shell plc, A Shares (a) | 726 | 17,530 |
Royal Dutch Shell plc, A Shares (a) | 2,447 | 59,300 |
Royal Dutch Shell plc, B Shares | 161,552 | 3,931,329 |
7,418,298 | ||
Food & Staples Retailing 3.1% | ||
Tesco plc * | 1,372,458 | 3,769,433 |
Household & Personal Products 3.7% | ||
Unilever plc | 99,119 | 4,469,544 |
Pharmaceuticals, Biotechnology & Life Sciences 3.6% | ||
GlaxoSmithKline plc | 214,591 | 4,344,016 |
Telecommunication Services 0.9% | ||
Vodafone Group plc | 315,275 | 1,001,834 |
Utilities 3.0% | ||
National Grid plc | 257,367 | 3,641,574 |
28,150,350 | ||
Total Common Stock | ||
(Cost $111,148,609) | 118,899,685 |
Security | Number of Shares | Value ($) |
Other Investment Company 3.1% of net assets | ||
United States 3.1% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.24% (b) | 3,743,700 | 3,743,700 |
Total Other Investment Company | ||
(Cost $3,743,700) | 3,743,700 |
* | Non-income producing security. |
(a) | Securities are traded on separate exchanges for the same entity. |
(b) | The rate shown is the 7-day yield. |
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 | $— | $118,899,685 | $— | $118,899,685 | |||||
Other Investment Company1 | 3,743,700 | — | — | 3,743,700 | |||||
Total | $3,743,700 | $118,899,685 | $— | $122,643,385 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $114,892,309) | $122,643,385 | |
Foreign currency, at value (cost $177,859) | 178,428 | |
Receivables: | ||
Investments sold | 428,317 | |
Fund shares sold | 1,002,473 | |
Dividends | 314,043 | |
Foreign tax reclaims | 190,890 | |
Interest | 287 | |
Prepaid expenses | + | 17,225 |
Total assets | 124,775,048 | |
Liabilities | ||
Payables: | ||
Investments bought | 4,048,890 | |
Fund shares redeemed | 85,818 | |
Investment adviser fees | 14,876 | |
Distribution and shareholder services fees | 1,066 | |
Accrued expenses | + | 99,447 |
Total liabilities | 4,250,097 | |
Net Assets | ||
Total assets | 124,775,048 | |
Total liabilities | – | 4,250,097 |
Net assets | $120,524,951 | |
Net Assets by Source | ||
Capital received from investors | 116,472,891 | |
Net investment income not yet distributed | 333,662 | |
Net realized capital losses | (4,022,741) | |
Net unrealized capital appreciation | 7,741,139 |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $5,187,287 | 920,646 | $5.63 | ||
Select Shares | $4,464,751 | 787,868 | $5.67 | ||
Institutional Shares | $110,872,913 | 19,502,876 | $5.68 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $285,269) | $3,630,551 | |
Expenses | ||
Investment adviser fees | 796,334 | |
Transfer agent fees | 85,580 | |
Professional fees | 68,109 | |
Custodian fees | 52,240 | |
Registration fees | 38,117 | |
Accounting and administration fees | 32,036 | |
Shareholder reports | 17,390 | |
Independent trustees' fees | 12,100 | |
Distribution and shareholder services fees (Investor Shares) | 11,645 | |
Proxy fees | 4,367 | |
Interest expense | 503 | |
Recouped sub-accounting and sub-transfer agent fees (Select Shares) | 78 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 4,910 | |
Select Shares | 5,140 | |
Other expenses | + | 14,526 |
Total expenses | 1,143,075 | |
Expense reduction by adviser | – | 159,857 |
Net expenses | – | 983,218 |
Net investment income | 2,647,333 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (1,142,222) | |
Net realized losses on foreign currency transactions | + | (87,825) |
Net realized losses | (1,230,047) | |
Net change in unrealized appreciation (depreciation) on investments | (8,533,319) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 9,786 |
Net change in unrealized appreciation (depreciation) | + | (8,523,533) |
Net realized and unrealized losses | (9,753,580) | |
Decrease in net assets resulting from operations | ($7,106,247) |
Operations | |||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||
Net investment income | $2,647,333 | $3,817,412 | |
Net realized gains (losses) | (1,230,047) | 15,839,103 | |
Net change in unrealized appreciation (depreciation) | + | (8,523,533) | (19,382,832) |
Increase (decrease) in net assets from operations | (7,106,247) | 273,683 | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | (110,750) | (228,950) | |
Select Shares | (96,876) | (237,028) | |
Institutional Shares | + | (2,254,767) | (6,208,099) |
Total distributions from net investment income | (2,462,393) | (6,674,077) | |
Distributions from net realized gains | |||
Investor Shares | (181,863) | (332,869) | |
Select Shares | (148,581) | (343,793) | |
Institutional Shares | + | (3,300,543) | (8,947,584) |
Total distributions from net realized gains | (3,630,987) | (9,624,246) | |
Total distributions | ($6,093,380) | ($16,298,323) |
Transactions in Fund Shares | |||||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 543,636 | $3,390,344 | 415,068 | $3,051,107 | |
Select Shares | 890,456 | 5,274,509 | 331,340 | 2,479,377 | |
Institutional Shares | + | 8,502,777 | 50,178,920 | 4,084,739 | 31,936,081 |
Total shares sold | 9,936,869 | $58,843,773 | 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 | 49,697 | $276,317 | 86,483 | $521,494 | |
Select Shares | 42,104 | 234,938 | 77,093 | 466,412 | |
Institutional Shares | + | 849,088 | 4,754,894 | 1,338,949 | 8,127,419 |
Total shares reinvested | 940,889 | $5,266,149 | 1,502,525 | $9,115,325 | |
Shares Redeemed | |||||
Investor Shares | (213,159) | ($1,280,378) | (96,337) | ($716,832) | |
Select Shares | (604,700) | (3,413,755) | (202,963) | (1,634,227) | |
Institutional Shares | + | (3,996,629) | (24,139,801) | (14,126,383) | (123,799,839) |
Total shares redeemed | (4,814,488) | ($28,833,934) | (14,425,683) | ($126,150,898) | |
Net transactions in fund shares | 6,063,270 | $35,275,988 | (3,677,364) | ($51,315,271) | |
Shares Outstanding and Net Assets | |||||
4/1/15-3/31/16 | 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 | + | 6,063,270 | 22,076,361 | (3,677,364) | (67,339,911) |
End of period | 21,211,390 | $120,524,951 | 15,148,120 | $98,448,590 | |
Net investment income not yet distributed | $333,662 | $238,502 |
Investor Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $8.18 | $8.69 | $9.84 | $9.48 | $9.67 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.14 | 0.11 | 0.12 | 0.16 | |
Net realized and unrealized gains (losses) | (1.19) | (0.45) | (1.18) | 0.42 | (0.20) | |
Total from investment operations | (1.08) | (0.31) | (1.07) | 0.54 | (0.04) | |
Less distributions: | ||||||
Distributions from net investment income | (0.06) | (0.20) | (0.08) | (0.18) | (0.08) | |
Distributions from net realized gains | — | — | (0.00) 2 | — | (0.07) | |
Total distributions | (0.06) | (0.20) | (0.08) | (0.18) | (0.15) | |
Net asset value at end of period | $7.04 | $8.18 | $8.69 | $9.84 | $9.48 | |
Total return | (13.21%) | (3.46%) | (10.89%) | 5.79% | (0.19%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.59% | 1.71% 3 | 1.80% | 1.80% | 1.80% | |
Gross operating expenses | 1.61% | 1.77% | 1.86% | 1.89% | 1.90% | |
Net investment income (loss) | 1.48% | 1.56% | 1.25% | 1.33% | 1.74% | |
Portfolio turnover rate | 28% | 30% 4 | 69% | 59% | 43% | |
Net assets, end of period (x 1,000) | $3,299 | $5,426 | $7,499 | $11,716 | $9,639 | |
Select Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $8.18 | $8.70 | $9.85 | $9.49 | $9.68 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.13 | 0.17 | 0.13 | 0.12 | 0.18 | |
Net realized and unrealized gains (losses) | (1.19) | (0.46) | (1.17) | 0.45 | (0.19) | |
Total from investment operations | (1.06) | (0.29) | (1.04) | 0.57 | (0.01) | |
Less distributions: | ||||||
Distributions from net investment income | (0.08) | (0.23) | (0.11) | (0.21) | (0.11) | |
Distributions from net realized gains | — | — | (0.00) 2 | — | (0.07) | |
Total distributions | (0.08) | (0.23) | (0.11) | (0.21) | (0.18) | |
Net asset value at end of period | $7.04 | $8.18 | $8.70 | $9.85 | $9.49 | |
Total return | (12.88%) | (3.26%) | (10.57%) | 6.15% | 0.15% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.29% | 1.45% 3 | 1.52% | 1.52% | 1.52% | |
Gross operating expenses | 1.30% | 1.51% | 1.59% | 1.66% | 1.66% | |
Net investment income (loss) | 1.82% | 1.92% | 1.47% | 1.24% | 1.94% | |
Portfolio turnover rate | 28% | 30% 4 | 69% | 59% | 43% | |
Net assets, end of period (x 1,000) | $5,888 | $10,446 | $15,849 | $18,340 | $5,993 |
Institutional Shares | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $8.18 | $8.69 | $9.85 | $9.49 | $9.68 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.14 | 0.12 | 0.14 | 0.16 | 0.19 | |
Net realized and unrealized gains (losses) | (1.20) | (0.39) | (1.19) | 0.42 | (0.19) | |
Total from investment operations | (1.06) | (0.27) | (1.05) | 0.58 | — | |
Less distributions: | ||||||
Distributions from net investment income | (0.09) | (0.24) | (0.11) | (0.22) | (0.12) | |
Distributions from net realized gains | — | — | (0.00) 2 | — | (0.07) | |
Total distributions | (0.09) | (0.24) | (0.11) | (0.22) | (0.19) | |
Net asset value at end of period | $7.03 | $8.18 | $8.69 | $9.85 | $9.49 | |
Total return | (12.87%) | (3.03%) | (10.62%) | 6.21% | 0.23% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.20% | 1.29% 3 | 1.45% | 1.45% | 1.45% | |
Gross operating expenses | 1.21% | 1.31% | 1.52% | 1.49% | 1.50% | |
Net investment income (loss) | 1.87% | 1.42% | 1.55% | 1.70% | 2.07% | |
Portfolio turnover rate | 28% | 30% 4 | 69% | 59% | 43% | |
Net assets, end of period (x 1,000) | $406,462 | $559,347 | $121,795 | $141,536 | $148,187 | |
Holdings by Category | Cost ($) | Value ($) | |
98.3% | Common Stock | 457,644,074 | 408,511,849 |
98.3% | Total Investments | 457,644,074 | 408,511,849 |
1.7% | Other Assets and Liabilities, Net | 7,137,382 | |
100.0% | Net Assets | 415,649,231 |
Security | Number of Shares | Value ($) |
Common Stock 98.3% of net assets | ||
Brazil 4.4% | ||
Software & Services 1.2% | ||
Cielo S.A. | 514,692 | 5,005,710 |
Transportation 2.3% | ||
CCR S.A. | 2,332,300 | 9,100,488 |
EcoRodovias Infraestrutura e Logistica S.A. | 304,400 | 507,947 |
9,608,435 | ||
Utilities 0.9% | ||
CPFL Energia S.A. ADR * | 320,153 | 3,486,466 |
18,100,611 | ||
China 15.5% | ||
Capital Goods 2.0% | ||
Beijing Enterprises Holdings Ltd. | 1,543,000 | 8,449,797 |
Consumer Durables & Apparel 1.1% | ||
Belle International Holdings Ltd. | 8,058,848 | 4,671,589 |
Food, Beverage & Tobacco 2.8% | ||
Want Want China Holdings Ltd. | 9,402,000 | 6,971,660 |
WH Group Ltd. *(a) | 6,332,000 | 4,579,370 |
11,551,030 | ||
Household & Personal Products 2.7% | ||
Hengan International Group Co., Ltd. | 1,302,000 | 11,340,237 |
Telecommunication Services 3.5% | ||
China Mobile Ltd. | 1,308,500 | 14,491,590 |
Utilities 3.4% | ||
China Resources Power Holdings Co., Ltd. | 7,411,291 | 13,854,990 |
64,359,233 |
Security | Number of Shares | Value ($) |
Hong Kong 1.4% | ||
Consumer Services 1.4% | ||
Sands China Ltd. | 1,473,200 | 6,014,203 |
India 11.7% | ||
Automobiles & Components 2.7% | ||
Bajaj Auto Ltd. | 307,235 | 11,163,745 |
Banks 3.8% | ||
Axis Bank Ltd. | 1,002,899 | 6,724,388 |
Housing Development Finance Corp., Ltd. | 554,869 | 9,259,155 |
15,983,543 | ||
Capital Goods 1.2% | ||
Larsen & Toubro Ltd. | 278,650 | 5,118,812 |
Energy 2.0% | ||
Cairn India Ltd. | 3,490,105 | 8,104,509 |
Software & Services 2.0% | ||
Infosys Ltd. | 259,920 | 4,775,617 |
Infosys Ltd. ADR | 188,200 | 3,579,564 |
8,355,181 | ||
48,725,790 | ||
Indonesia 3.3% | ||
Banks 3.0% | ||
PT Bank Mandiri (Persero) Tbk | 6,845,700 | 5,315,087 |
PT Bank Rakyat Indonesia (Persero) Tbk | 8,540,800 | 7,349,747 |
12,664,834 | ||
Utilities 0.3% | ||
PT Perusahaan Gas Negara (Persero) Tbk | 6,092,200 | 1,200,845 |
13,865,679 | ||
Kazakhstan 0.8% | ||
Energy 0.8% | ||
KazMunaiGas Exploration Production JSC GDR | 429,659 | 3,200,960 |
Malaysia 6.8% | ||
Banks 2.6% | ||
AMMB Holdings Berhad | 9,334,600 | 11,003,980 |
Consumer Services 1.9% | ||
Genting Malaysia Berhad | 6,667,900 | 7,757,498 |
Utilities 2.3% | ||
Tenaga Nasional Berhad | 2,649,700 | 9,466,239 |
28,227,717 | ||
Mexico 5.4% | ||
Banks 1.5% | ||
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B ADR | 703,873 | 6,355,973 |
Real Estate 3.9% | ||
Fibra Uno Administracion S.A. de C.V. | 6,927,800 | 16,103,376 |
22,459,349 |
Security | Number of Shares | Value ($) |
Peru 2.0% | ||
Banks 2.0% | ||
Credicorp Ltd. | 62,581 | 8,198,737 |
Philippines 2.5% | ||
Telecommunication Services 2.5% | ||
Philippine Long Distance Telephone Co. ADR | 243,473 | 10,544,816 |
Qatar 2.1% | ||
Banks 2.1% | ||
Qatar National Bank SAQ | 228,130 | 8,818,827 |
Republic of Korea 10.3% | ||
Automobiles & Components 3.0% | ||
Hyundai Mobis Co., Ltd. | 56,582 | 12,327,951 |
Technology Hardware & Equipment 4.0% | ||
Samsung Electronics Co., Ltd. | 14,629 | 16,788,335 |
Telecommunication Services 3.3% | ||
SK Telecom Co., Ltd. | 76,125 | 13,794,552 |
42,910,838 | ||
Russia 1.6% | ||
Energy 1.6% | ||
Gazprom PAO ADR | 1,523,130 | 6,564,690 |
South Africa 5.0% | ||
Capital Goods 1.4% | ||
The Bidvest Group Ltd. | 222,725 | 5,620,701 |
Food, Beverage & Tobacco 0.9% | ||
SABMiller plc | 61,894 | 3,762,766 |
Real Estate 1.7% | ||
Growthpoint Properties Ltd. | 4,225,418 | 7,030,884 |
Telecommunication Services 1.0% | ||
MTN Group Ltd. | 473,241 | 4,321,822 |
20,736,173 | ||
Taiwan 14.8% | ||
Banks 2.6% | ||
Mega Financial Holding Co., Ltd. | 15,143,153 | 10,770,629 |
Semiconductors & Semiconductor Equipment 6.9% | ||
MediaTek, Inc. | 1,178,000 | 9,036,283 |
Taiwan Semiconductor Manufacturing Co., Ltd. | 3,964,719 | 19,775,353 |
28,811,636 |
Security | Number of Shares | Value ($) |
Technology Hardware & Equipment 2.5% | ||
Asustek Computer, Inc. | 1,155,000 | 10,364,239 |
Telecommunication Services 2.8% | ||
Taiwan Mobile Co., Ltd. | 3,535,000 | 11,476,620 |
61,423,124 | ||
Turkey 1.5% | ||
Telecommunication Services 1.5% | ||
Turk Telekomunikasyon A/S | 2,668,268 | 6,325,474 |
United Arab Emirates 2.3% | ||
Real Estate 2.3% | ||
Emaar Malls Group PJSC * | 12,016,405 | 9,415,460 |
United Kingdom 2.7% | ||
Household & Personal Products 2.7% | ||
Unilever plc | 250,741 | 11,306,590 |
United States 4.2% | ||
Consumer Services 2.2% | ||
Yum! Brands, Inc. | 108,888 | 8,912,483 |
Health Care Equipment & Services 2.0% | ||
Abbott Laboratories | 200,839 | 8,401,095 |
17,313,578 | ||
Total Common Stock | ||
(Cost $457,644,074) | 408,511,849 |
* | Non-income producing security. |
(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 $4,579,370 or 1.1% of net assets. |
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 | $— | $273,403,318 | $— | $273,403,318 | |||||
Brazil 1 | 18,100,611 | — | — | 18,100,611 | |||||
India 1 | — | 40,370,609 | — | 40,370,609 | |||||
Software & Services | 3,579,564 | 4,775,617 | — | 8,355,181 | |||||
Kazakhstan 1 | 3,200,960 | — | — | 3,200,960 | |||||
Mexico 1 | 22,459,349 | — | — | 22,459,349 | |||||
Peru 1 | 8,198,737 | — | — | 8,198,737 | |||||
Philippines 1 | 10,544,816 | — | — | 10,544,816 | |||||
Russia 1 | 6,564,690 | — | — | 6,564,690 | |||||
United States1 | 17,313,578 | — | — | 17,313,578 | |||||
Total | $89,962,305 | $318,549,544 | $— | $408,511,849 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $457,644,074) | $408,511,849 | |
Foreign currency, at value (cost $308,627) | 311,061 | |
Receivables: | ||
Investments sold | 16,190,285 | |
Dividends | 1,638,111 | |
Fund shares sold | 53,752 | |
Interest | 1,818 | |
Prepaid expenses | + | 26,721 |
Total assets | 426,733,597 | |
Liabilities | ||
Payables: | ||
Due to custodian | 9,870,303 | |
Fund shares redeemed | 645,241 | |
Foreign capital gains tax | 275,794 | |
Investment adviser fees | 91,139 | |
Distribution and shareholder services fees | 676 | |
Accrued expenses | + | 201,213 |
Total liabilities | 11,084,366 | |
Net Assets | ||
Total assets | 426,733,597 | |
Total liabilities | – | 11,084,366 |
Net assets | $415,649,231 | |
Net Assets by Source | ||
Capital received from investors | 557,385,252 | |
Net investment income not yet distributed | 846,178 | |
Net realized capital losses | (93,233,104) | |
Net unrealized capital depreciation | (49,349,095) |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $3,299,347 | 468,524 | $7.04 | ||
Select Shares | $5,888,052 | 836,348 | $7.04 | ||
Institutional Shares | $406,461,832 | 57,813,867 | $7.03 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $1,655,045) | $14,449,016 | |
Expenses | ||
Investment adviser fees | 4,704,190 | |
Custodian fees | 661,477 | |
Transfer agent fees | 82,041 | |
Accounting and administration fees | 71,999 | |
Professional fees | 62,249 | |
Registration fees | 31,014 | |
Shareholder reports | 23,565 | |
Independent trustees' fees | 18,702 | |
Distribution and shareholder services fees (Investor Shares) | 10,307 | |
Proxy fees | 5,088 | |
Interest expense | 845 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 6,194 | |
Select Shares | 7,089 | |
Other expenses | + | 51,306 |
Total expenses | 5,736,066 | |
Expense reduction by adviser | – | 54,880 |
Net expenses | – | 5,681,186 |
Net investment income | 8,767,830 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of ($1,022)) | (65,076,257) | |
Net realized losses on foreign currency transactions | + | (251,664) |
Net realized losses | (65,327,921) | |
Net change in unrealized appreciation (depreciation) on investments (net of change in foreign capital gain tax of ($275,794)) | (14,862,398) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 69,797 |
Net change in unrealized appreciation (depreciation) | + | (14,792,601) |
Net realized and unrealized losses | (80,120,522) | |
Decrease in net assets resulting from operations | ($71,352,692) |
Operations | |||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||
Net investment income | $8,767,830 | $3,085,384 | |
Net realized losses | (65,327,921) | (1,794,237) | |
Net change in unrealized appreciation (depreciation) | + | (14,792,601) | (17,470,117) |
Decrease in net assets from operations | (71,352,692) | (16,178,970) | |
Distributions to Shareholders | |||
Distributions from net investment income | |||
Investor Shares | (29,408) | (145,366) | |
Select Shares | (74,419) | (305,982) | |
Institutional Shares | + | (5,425,809) | (3,366,678) |
Total distributions from net investment income | ($5,529,636) | ($3,818,026) |
Transactions in Fund Shares | |||||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares Sold | |||||
Investor Shares | 65,801 | $483,685 | 150,710 | $1,325,782 | |
Select Shares | 107,904 | 822,947 | 251,274 | 2,223,309 | |
Institutional Shares | + | 8,572,939 | 59,514,635 | 10,345,888 | 89,219,542 |
Total shares sold | 8,746,644 | $60,821,267 | 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 | 4,485 | $29,155 | 17,540 | $138,570 | |
Select Shares | 11,320 | 73,468 | 30,056 | 237,443 | |
Institutional Shares | + | 811,531 | 5,258,720 | 386,789 | 3,051,761 |
Total shares reinvested | 827,336 | $5,361,343 | 434,385 | $3,427,774 | |
Shares Redeemed | |||||
Investor Shares | (265,059) | ($1,924,472) | (368,166) | ($3,218,784) | |
Select Shares | (559,375) | (4,050,008) | (827,132) | (7,477,651) | |
Institutional Shares | + | (19,963,395) | (142,895,727) | (4,881,768) | (43,048,584) |
Total shares redeemed | (20,787,829) | ($148,870,207) | (6,077,066) | ($53,745,019) | |
Net transactions in fund shares | (11,213,849) | ($82,687,597) | 53,631,368 | $450,072,621 | |
Shares Outstanding and Net Assets | |||||
4/1/15-3/31/16 | 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 | + | (11,213,849) | (159,569,925) | 53,631,368 | 430,075,625 |
End of period | 59,118,739 | $415,649,231 | 70,332,588 | $575,219,156 | |
Net investment income not yet distributed/Distributions in excess of net investment income | $846,178 | ($2,141,374) |
4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $9.45 | $10.89 | $11.01 | $11.61 | $11.86 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.11 1 | 0.15 1 | 0.16 1 | 0.15 | 0.20 | |
Net realized and unrealized gains (losses) | 0.56 | (1.14) | (0.21) | (0.53) | 0.09 | |
Total from investment operations | 0.67 | (0.99) | (0.05) | (0.38) | 0.29 | |
Less distributions: | ||||||
Distributions from net investment income | — | — | — | (0.15) | (0.46) | |
Distributions from net realized gains | (0.19) | (0.45) | (0.07) | (0.07) | (0.08) | |
Total distributions | (0.19) | (0.45) | (0.07) | (0.22) | (0.54) | |
Net asset value at end of period | $9.93 | $9.45 | $10.89 | $11.01 | $11.61 | |
Total return | 7.27% | (9.37%) | (0.49%) | (3.41%) | 2.48% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.75% | 0.74% | 0.69% | 0.69% | 0.71% | |
Gross operating expenses | 0.81% | 0.76% | 0.69% | 0.69% | 0.71% | |
Net investment income (loss) | 1.21% | 1.39% | 1.48% | 1.27% | 1.51% | |
Portfolio turnover rate | 31% | 50% | 52% | 44% | 68% | |
Net assets, end of period (x 1,000) | $119,938 | $187,388 | $652,647 | $741,235 | $881,405 | |
Holdings by Category | Cost ($) | Value ($) | |
82.7% | Government Bonds | 95,577,355 | 99,117,571 |
14.8% | Supranational | 20,154,232 | 17,788,227 |
1.5% | Other Investment Company | 1,839,733 | 1,839,733 |
99.0% | Total Investments | 117,571,320 | 118,745,531 |
1.0% | Other Assets and Liabilities, Net | 1,192,560 | |
100.0% | Net Assets | 119,938,091 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 82.7% of net assets | ||
Australia 2.0% | ||
Australia Government Bond | ||
6.00%, 02/15/17 (AUD) | 500,000 | 396,488 |
4.50%, 04/15/20 (AUD) | 500,000 | 420,898 |
3.25%, 04/21/25 (AUD) | 1,000,000 | 816,899 |
4.75%, 04/21/27 (AUD) | 800,000 | 742,750 |
2,377,035 | ||
Austria 3.5% | ||
Austria Government Bond | ||
6.25%, 07/15/27 (EUR) | 2,250,000 | 4,176,515 |
Canada 4.2% | ||
Canada Government International Bond | ||
3.50%, 01/13/20 (EUR) | 2,040,000 | 2,650,522 |
Canadian Government Bond | ||
1.25%, 02/01/18 (CAD) | 3,000,000 | 2,339,735 |
4,990,257 | ||
Finland 3.0% | ||
Finland Government Bond | ||
3.50%, 04/15/21 (EUR) (a) | 2,680,000 | 3,618,789 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
France 4.8% | ||
France Government Bond OAT | ||
5.75%, 10/25/32 (EUR) | 2,925,000 | 5,792,140 |
Japan 17.3% | ||
Japan Government Ten Year Bond | ||
1.70%, 09/20/16 (JPY) | 299,950,000 | 2,687,448 |
1.10%, 06/20/20 (JPY) | 243,500,000 | 2,284,259 |
0.60%, 03/20/24 (JPY) | 95,000,000 | 895,068 |
Japan Government Thirty Year Bond | ||
2.40%, 12/20/34 (JPY) | 575,200,000 | 6,971,366 |
1.70%, 03/20/44 (JPY) | 685,400,000 | 7,921,414 |
20,759,555 | ||
Malaysia 5.2% | ||
Malaysia Government Bond | ||
3.65%, 10/31/19 (MYR) | 4,650,000 | 1,203,768 |
4.05%, 09/30/21 (MYR) | 9,000,000 | 2,354,517 |
4.18%, 07/15/24 (MYR) | 10,100,000 | 2,644,825 |
6,203,110 | ||
Mexico 4.7% | ||
Mexico Government Bond | ||
6.50%, 06/10/21 (MXN) | 85,985,000 | 5,232,219 |
7.50%, 06/03/27 (MXN) | 6,150,000 | 395,774 |
5,627,993 | ||
Netherlands 4.7% | ||
Netherlands Government Bond | ||
5.50%, 01/15/28 (EUR) | 3,123,490 | 5,627,078 |
New Zealand 4.5% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 2,250,000 | 1,659,766 |
5.00%, 03/15/19 (NZD) | 479,000 | 359,010 |
5.50%, 04/15/23 (NZD) | 4,150,000 | 3,416,019 |
5,434,795 | ||
Poland 4.9% | ||
Poland Government Bond | ||
4.75%, 04/25/17 (PLN) | 4,440,000 | 1,232,141 |
5.50%, 10/25/19 (PLN) | 8,040,000 | 2,440,120 |
5.75%, 04/25/29 (PLN) | 6,300,000 | 2,154,481 |
5,826,742 | ||
Spain 10.2% | ||
Spain Government Bond | ||
1.40%, 01/31/20 (EUR) | 4,317,000 | 5,127,664 |
1.60%, 04/30/25 (EUR) (a) | 4,988,000 | 5,830,023 |
4.20%, 01/31/37 (EUR) (a) | 863,000 | 1,282,373 |
12,240,060 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Sweden 4.8% | ||
Sweden Government Bond | ||
3.75%, 08/12/17 (SEK) | 2,645,000 | 345,435 |
5.00%, 12/01/20 (SEK) | 29,500,000 | 4,506,915 |
3.50%, 06/01/22 (SEK) | 6,500,000 | 964,393 |
5,816,743 | ||
United Kingdom 8.9% | ||
United Kingdom Gilt | ||
3.75%, 09/07/21 (GBP) | 1,400,000 | 2,319,029 |
2.75%, 09/07/24 (GBP) | 1,290,000 | 2,064,562 |
4.50%, 09/07/34 (GBP) | 1,172,000 | 2,308,900 |
4.25%, 09/07/39 (GBP) | 2,000,000 | 3,934,268 |
10,626,759 | ||
Total Government Bonds | ||
(Cost $95,577,355) | 99,117,571 | |
Supranational* 14.8% of net assets | ||
Asian Development Bank | ||
2.35%, 06/21/27 (JPY) | 380,000,000 | 4,352,464 |
European Investment Bank | ||
1.40%, 06/20/17 (JPY) | 490,000,000 | 4,449,237 |
European Union Notes | ||
2.75%, 06/03/16 (EUR) | 2,940,000 | 3,362,818 |
Nordic Investment Bank | ||
1.70%, 04/27/17 (JPY) | 620,000,000 | 5,623,708 |
Total Supranational | ||
(Cost $20,154,232) | 17,788,227 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.5% of net assets | ||
United States 1.5% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.24% (b) | 1,839,733 | 1,839,733 |
Total Other Investment Company | ||
(Cost $1,839,733) | 1,839,733 |
At 03/31/16, the tax basis cost of the fund's investments was $118,643,569 and the unrealized appreciation and depreciation were $5,349,602 and ($5,247,640), respectively, with a net unrealized appreciation of $101,962.
* | 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 $10,731,185 or 8.9% of net assets. |
(b) | The rate shown is the 7-day yield. |
AUD — | Australian dollar |
CAD — | Canadian dollar |
EUR — | euro currency |
GBP — | Great British pound |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PLN — | Polish zloty |
SEK — | Swedish krona |
USD — | U.S. dollar |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 103,799,500 | USD | 922,948 | 6,561 | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 89,544,000 | USD | 796,193 | (4,362) | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 76,041,500 | USD | 676,134 | 47,889 | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 606,611,000 | USD | 5,393,767 | 253,758 | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 87,678,000 | USD | 779,601 | 6,825 | ||||||
04/28/2016 | State Street Bank & Trust Co. | NZD | 582,500 | USD | 402,111 | 13,625 | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 829,137 | JPY | 93,249,000 | (2,430) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 647,151 | JPY | 72,782,000 | 799 | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 934,347 | JPY | 105,081,500 | (21,175) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 62,474 | NZD | 90,500 | (2,148) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 5,773,829 | NZD | 8,364,000 | (367,966) | ||||||
Net Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | (68,624) |
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 | $— | $99,117,571 | $— | $99,117,571 | |||||
Supranational | — | 17,788,227 | — | 17,788,227 | |||||
Other Investment Company1 | 1,839,733 | — | — | 1,839,733 | |||||
Total | $1,839,733 | $116,905,798 | $— | $118,745,531 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $329,457 | $— | $329,457 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($398,081) | $— | ($398,081) |
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 $117,571,320) | $118,745,531 | |
Foreign currency, at value (cost $46,211) | 46,691 | |
Receivables: | ||
Interest | 1,257,089 | |
Fund shares sold | 97,670 | |
Unrealized appreciation on forward foreign currency exchange contracts | 329,457 | |
Prepaid expenses | + | 11,362 |
Total assets | 120,487,800 | |
Liabilities | ||
Payables: | ||
Investment adviser fees | 14,263 | |
Fund shares redeemed | 13,513 | |
Unrealized depreciation on forward foreign currency exchange contracts | 398,081 | |
Accrued expenses | + | 123,852 |
Total liabilities | 549,709 | |
Net Assets | ||
Total assets | 120,487,800 | |
Total liabilities | – | 549,709 |
Net assets | $119,938,091 | |
Net Assets by Source | ||
Capital received from investors | 121,891,721 | |
Net investment loss | (3,194,113) | |
Net realized capital gains | 88,289 | |
Net unrealized capital appreciation | 1,152,194 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$119,938,091 | 12,078,185 | $9.93 | ||
Investment Income | ||
Dividends | $892 | |
Interest | + | 2,843,482 |
Total investment income | 2,844,374 | |
Expenses | ||
Investment adviser fees | 868,258 | |
Transfer agent fees | 91,359 | |
Professional fees | 72,711 | |
Custodian fees | 53,221 | |
Shareholder reports | 24,024 | |
Accounting and administration fees | 19,754 | |
Registration fees | 13,920 | |
Independent trustees' fees | 13,077 | |
Proxy fees | 5,152 | |
Interest expense | 859 | |
Other expenses | + | 7,309 |
Total expenses | 1,169,644 | |
Expense reduction by adviser | – | 78,310 |
Net expenses | – | 1,091,334 |
Net investment income | 1,753,040 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (11,863,973) | |
Net realized gains on foreign currency transactions | + | 131,715 |
Net realized losses | (11,732,258) | |
Net change in unrealized appreciation (depreciation) on investments | 17,516,354 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 419,209 |
Net change in unrealized appreciation (depreciation) | + | 17,935,563 |
Net realized and unrealized gains | 6,203,305 | |
Increase in net assets resulting from operations | $7,956,345 |
Operations | |||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||
Net investment income | $1,753,040 | $4,042,543 | |
Net realized losses | (11,732,258) | (6,877,005) | |
Net change in unrealized appreciation (depreciation) | + | 17,935,563 | (16,732,227) |
Increase (decrease) in net assets from operations | 7,956,345 | (19,566,689) | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($2,596,705) | ($10,072,652) |
Transactions in Fund Shares | |||||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 2,097,487 | $19,711,390 | 5,605,938 | $58,248,799 | |
Shares reinvested | 203,273 | 1,843,682 | 583,662 | 5,859,964 | |
Shares redeemed | + | (10,046,401) | (94,364,938) | (46,319,811) | (499,728,433) |
Net transactions in fund shares | (7,745,641) | ($72,809,866) | (40,130,211) | ($435,619,670) | |
Shares Outstanding and Net Assets | |||||
4/1/15-3/31/16 | 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 | + | (7,745,641) | (67,450,226) | (40,130,211) | (465,259,011) |
End of period | 12,078,185 | $119,938,091 | 19,823,826 | $187,388,317 | |
Net investment loss | ($3,194,113) | ($8,640,739) |
4/1/15– 3/31/16 | 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) | 0.19 2 | 0.17 2 | 0.13 2 | 0.11 | ||
Net realized and unrealized gains (losses) | 0.26 | (0.76) | (0.38) | (0.40) | ||
Total from investment operations | 0.45 | (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 | $9.16 | $8.71 | $9.30 | $9.61 | ||
Total return | 5.17% | (6.34%) | (2.60%) | (2.95%) 3 | ||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.86% 4 | 0.85% | 0.85% | 0.22% 5,6 | ||
Gross operating expenses | 2.24% | 1.76% | 1.74% | 1.28% 5 | ||
Net investment income (loss) | 2.22% | 1.80% | 1.40% | 1.56% 5 | ||
Portfolio turnover rate | 42% | 62% | 42% | 73% 3 | ||
Net assets, end of period (x 1,000) | $9,279 | $13,394 | $18,575 | $29,074 | ||
Holdings by Category | Cost ($) | Value ($) | |
68.4% | Government Bonds | 6,578,139 | 6,347,448 |
27.9% | U.S. Government Securities | 2,504,190 | 2,587,935 |
1.9% | Other Investment Company | 176,441 | 176,441 |
1.3% | Short-Term Investments | 123,224 | 123,226 |
99.5% | Total Investments | 9,381,994 | 9,235,050 |
0.5% | Other Assets and Liabilities, Net | 43,879 | |
100.0% | Net Assets | 9,278,929 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 68.4% of net assets | ||
Brazil 5.8% | ||
Brazil Notas do Tesouro Nacional | ||
10.00%, 01/01/17 (BRL) | 430,000 | 119,774 |
10.00%, 01/01/21 (BRL) | 400,000 | 97,751 |
10.00%, 01/01/23 (BRL) | 750,000 | 177,354 |
10.00%, 01/01/25 (BRL) | 650,000 | 143,862 |
538,741 | ||
Colombia 2.5% | ||
Colombia Government International Bond | ||
7.75%, 04/14/21 (COP) | 107,000,000 | 36,381 |
Colombian TES | ||
5.00%, 11/21/18 (COP) | 168,000,000 | 53,507 |
10.00%, 07/24/24 (COP) | 140,000,000 | 52,457 |
6.00%, 04/28/28 (COP) | 340,000,000 | 94,158 |
236,503 | ||
France 2.7% | ||
France Government Bond OAT | ||
0.00%, 05/25/20 (EUR) (c) | 152,100 | 174,841 |
3.00%, 04/25/22 (EUR) | 13,100 | 17,687 |
0.50%, 05/25/25 (EUR) | 47,000 | 54,317 |
246,845 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Indonesia 1.6% | ||
Indonesia Treasury Bond | ||
5.63%, 05/15/23 (IDR) | 900,000,000 | 60,010 |
8.38%, 03/15/24 (IDR) | 310,000,000 | 24,293 |
8.38%, 03/15/34 (IDR) | 800,000,000 | 61,235 |
145,538 | ||
Japan 13.4% | ||
Japan Government Ten Year Bond | ||
1.70%, 03/20/17 (JPY) | 16,400,000 | 148,274 |
1.40%, 03/20/18 (JPY) | 11,450,000 | 104,956 |
0.80%, 09/20/20 (JPY) | 34,400,000 | 319,428 |
0.60%, 03/20/24 (JPY) | 35,600,000 | 335,415 |
Japan Government Thirty Year Bond | ||
1.70%, 03/20/44 (JPY) | 28,700,000 | 331,696 |
1,239,769 | ||
Malaysia 6.3% | ||
Malaysia Government Bond | ||
3.31%, 10/31/17 (MYR) | 590,000 | 152,443 |
4.24%, 02/07/18 (MYR) | 30,000 | 7,854 |
3.76%, 03/15/19 (MYR) | 277,000 | 72,048 |
3.42%, 08/15/22 (MYR) | 200,000 | 50,545 |
3.80%, 09/30/22 (MYR) | 100,000 | 25,772 |
4.18%, 07/15/24 (MYR) | 432,000 | 113,125 |
3.96%, 09/15/25 (MYR) | 500,000 | 129,567 |
3.84%, 04/15/33 (MYR) | 130,000 | 31,276 |
582,630 | ||
Mexico 7.2% | ||
Mexico Government Bond | ||
4.75%, 06/14/18 (MXN) | 500,000 | 29,117 |
6.50%, 06/10/21 (MXN) | 4,004,000 | 243,645 |
8.00%, 12/07/23 (MXN) | 2,850,000 | 187,920 |
7.50%, 06/03/27 (MXN) | 1,120,000 | 72,076 |
10.00%, 11/20/36 (MXN) | 1,645,000 | 131,737 |
664,495 | ||
New Zealand 2.9% | ||
New Zealand Government Bond | ||
6.00%, 12/15/17 (NZD) | 99,000 | 73,030 |
5.50%, 04/15/23 (NZD) | 243,000 | 200,022 |
273,052 | ||
Peru 1.5% | ||
Peru Government Bond | ||
7.84%, 08/12/20 (PEN) | 169,000 | 54,814 |
6.95%, 08/12/31 (PEN) | 50,000 | 14,709 |
6.90%, 08/12/37 (PEN) | 230,000 | 65,967 |
135,490 | ||
Poland 4.8% | ||
Poland Government Bond | ||
4.75%, 04/25/17 (PLN) | 536,000 | 148,745 |
5.25%, 10/25/20 (PLN) | 260,000 | 79,717 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
5.75%, 09/23/22 (PLN) | 422,000 | 136,236 |
5.75%, 04/25/29 (PLN) | 230,000 | 78,656 |
443,354 | ||
Singapore 2.2% | ||
Singapore Government Bond | ||
2.00%, 07/01/20 (SGD) | 67,000 | 51,501 |
2.38%, 06/01/25 (SGD) | 202,000 | 156,925 |
208,426 | ||
South Africa 3.6% | ||
South Africa Government Bond | ||
7.25%, 01/15/20 (ZAR) | 1,100,000 | 71,426 |
10.50%, 12/21/26 (ZAR) | 1,500,000 | 111,109 |
6.25%, 03/31/36 (ZAR) | 3,310,000 | 156,432 |
338,967 | ||
Spain 5.3% | ||
Spain Government Bond | ||
5.85%, 01/31/22 (EUR) (a) | 142,000 | 210,124 |
1.60%, 04/30/25 (EUR) (a) | 142,000 | 165,971 |
4.20%, 01/31/37 (EUR) (a) | 77,000 | 114,418 |
490,513 | ||
Turkey 2.1% | ||
Turkey Government Bond | ||
6.30%, 02/14/18 (TRY) | 60,000 | 20,128 |
10.50%, 01/15/20 (TRY) | 230,000 | 84,195 |
7.10%, 03/08/23 (TRY) | 161,000 | 49,852 |
8.00%, 03/12/25 (TRY) | 130,000 | 41,556 |
195,731 | ||
United Kingdom 6.5% | ||
United Kingdom Gilt | ||
2.75%, 09/07/24 (GBP) | 52,000 | 83,223 |
4.25%, 12/07/27 (GBP) | 146,050 | 269,049 |
4.50%, 09/07/34 (GBP) | 129,500 | 255,122 |
607,394 | ||
Total Government Bonds | ||
(Cost $6,578,139) | 6,347,448 | |
U.S. Government Securities 27.9% of net assets | ||
United States 27.9% | ||
U.S. Treasury Bond | ||
3.38%, 05/15/44 (USD) | 335,000 | 388,443 |
U.S. Treasury Notes | ||
1.25%, 04/30/19 (USD) | 30,000 | 30,327 |
3.63%, 08/15/19 (USD) | 495,000 | 538,815 |
1.00%, 08/31/19 (USD) | 192,000 | 192,307 |
2.13%, 08/31/20 (USD) | 187,000 | 194,706 |
3.63%, 02/15/21 (USD) | 614,300 | 683,877 |
2.13%, 08/15/21 (USD) | 167,400 | 174,384 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
2.50%, 08/15/23 (USD) | 208,000 | 221,699 |
2.50%, 05/15/24 (USD) | 153,600 | 163,377 |
Total U.S. Government Securities | ||
(Cost $2,504,190) | 2,587,935 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.9% of net assets | ||
United States 1.9% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.24% (b) | 176,441 | 176,441 |
Total Other Investment Company | ||
(Cost $176,441) | 176,441 | |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Short-Term Investments 1.3% of net assets | ||
United States 1.3% | ||
U.S. Treasury Bills | ||
(0.10%), 06/30/16 (USD) (d) | 55,000 | 55,028 |
(0.62%), 09/30/16 (USD) (d) | 68,000 | 68,198 |
Total Short-Term Investments | ||
(Cost $123,224) | 123,226 |
(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 $490,513 or 5.3% of net assets. |
(b) | The rate shown is the 7-day yield. |
(c) | Zero Coupon Bond. |
(d) | The rate shown is the purchase yield. |
BRL — | Brazilian real |
CAD — | Canadian Dollar |
CLP — | Chilean Peso |
COP — | Colombian Peso |
EUR — | euro currency |
GBP — | Great British pound |
IDR — | Indonesian rupiah |
INR — | Indian rupee |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PEN — | Peruvian nuevo sol |
PLN — | Polish zloty |
SEK — | Swedish krona |
SGD — | Singapore dollar |
TRY — | Turkish lira |
USD — | U.S. dollar |
ZAR — | South African rand |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/28/2016 | State Street Bank & Trust Co. | CAD | 220,500 | USD | 169,786 | 13,677 | ||||||
04/29/2016 | Barclays Capital, Inc. | CLP | 37,188,500 | USD | 55,390 | 1,611 | ||||||
04/28/2016 | State Street Bank & Trust Co. | EUR | 38,000 | USD | 43,271 | 1,874 | ||||||
04/28/2016 | State Street Bank & Trust Co. | EUR | 790,000 | USD | 899,588 | 38,687 | ||||||
04/29/2016 | Barclays Capital, Inc. | INR | 5,250,000 | USD | 78,915 | 2,535 | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 65,979,500 | USD | 586,666 | 27,601 | ||||||
04/28/2016 | State Street Bank & Trust Co. | JPY | 4,403,500 | USD | 39,154 | 41 | ||||||
04/28/2016 | State Street Bank & Trust Co. | NZD | 111,000 | USD | 76,626 | 907 | ||||||
04/28/2016 | State Street Bank & Trust Co. | SEK | 3,987,000 | USD | 491,532 | 22,488 | ||||||
04/29/2016 | Barclays Capital, Inc. | USD | 8,133 | CLP | 5,460,500 | (37) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 177,071 | EUR | 155,500 | (742) | ||||||
04/29/2016 | JPMorgan Chase Bank | USD | 8,876 | INR | 590,500 | (55) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 51,869 | JPY | 5,833,500 | (47) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 50,393 | JPY | 5,667,500 | 62 | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 346,195 | NZD | 501,500 | (22,063) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 3,452 | NZD | 5,000 | (119) | ||||||
04/28/2016 | State Street Bank & Trust Co. | USD | 82,970 | SEK | 673,000 | (643) | ||||||
Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | 85,777 |
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 | $— | $6,347,448 | $— | $6,347,448 | |||||
U.S. Government Securities1 | — | 2,587,935 | — | 2,587,935 | |||||
Other Investment Company1 | 176,441 | — | — | 176,441 | |||||
Short-Term Investments1 | — | 123,226 | — | 123,226 | |||||
Total | $176,441 | $9,058,609 | $— | $9,235,050 | |||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $109,483 | $— | $109,483 | |||||
Liabilities Valuation Input | |||||||||
Other Financial Instruments | |||||||||
Forward Foreign Currency Exchange Contracts2 | $— | ($23,706) | $— | ($23,706) |
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 $9,381,994) | $9,235,050 | |
Foreign currency, at value (cost $15,415) | 15,624 | |
Receivables: | ||
Interest | 96,742 | |
Due from investment adviser | 2,651 | |
Fund shares sold | 100 | |
Unrealized appreciation on forward foreign currency exchange contracts | 109,483 | |
Prepaid expenses | + | 5,766 |
Total assets | 9,465,416 | |
Liabilities | ||
Payables: | ||
Investments bought | 68,212 | |
Foreign capital gains tax | 735 | |
Unrealized depreciation on forward foreign currency exchange contracts | 23,706 | |
Accrued expenses and other liabilities | + | 93,834 |
Total liabilities | 186,487 | |
Net Assets | ||
Total assets | 9,465,416 | |
Total liabilities | – | 186,487 |
Net assets | $9,278,929 | |
Net Assets by Source | ||
Capital received from investors | 10,112,584 | |
Net investment loss | (700,150) | |
Net realized capital losses | (74,683) | |
Net unrealized capital depreciation | (58,822) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$9,278,929 | 1,013,182 | $9.16 | ||
Investment Income | ||
Dividends | $94 | |
Interest (net of foreign withholding taxes of $3,006) | + | 359,342 |
Total investment income | 359,436 | |
Expenses | ||
Investment adviser fees | 79,275 | |
Professional fees | 63,793 | |
Accounting and administration fees | 24,135 | |
Transfer agent fees | 21,775 | |
Shareholder reports | 16,548 | |
Custodian fees | 16,059 | |
Sub-accounting and sub-transfer agent fees | 11,422 | |
Registration fees | 11,113 | |
Independent trustees' fees | 10,536 | |
Proxy fees | 1,442 | |
Other expenses | + | 5,364 |
Total expenses | 261,462 | |
Expense reduction by adviser | – | 160,921 |
Net expenses | – | 100,541 |
Net investment income | 258,895 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of $255) | (1,112,880) | |
Net realized losses on foreign currency transactions | + | (27,996) |
Net realized losses | (1,140,876) | |
Net change in unrealized appreciation (depreciation) on investments (net of change in foreign capital gain tax of $532) | 1,126,401 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 197,248 |
Net change in unrealized appreciation (depreciation) | + | 1,323,649 |
Net realized and unrealized gains | 182,773 | |
Increase in net assets resulting from operations | $441,668 |
Operations | |||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||
Net investment income | $258,895 | $295,146 | |
Net realized losses | (1,140,876) | (1,180,103) | |
Net change in unrealized appreciation (depreciation) | + | 1,323,649 | (98,945) |
Increase (decrease) in net assets from operations | 441,668 | (983,902) |
Transactions in Fund Shares | |||||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 10,458 | $92,078 | 68,075 | $617,461 | |
Shares redeemed | + | (535,829) | (4,648,880) | (526,298) | (4,814,778) |
Net transactions in fund shares | (525,371) | ($4,556,802) | (458,223) | ($4,197,317) | |
Shares Outstanding and Net Assets | |||||
4/1/15-3/31/16 | 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 | + | (525,371) | (4,115,134) | (458,223) | (5,181,219) |
End of period | 1,013,182 | $9,278,929 | 1,538,553 | $13,394,063 | |
Net investment loss | ($700,150) | ($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, 2017 | $82,359 | $53,246 | $63,797 | $149,778 | ||||
March 31, 2018 | 160,233* | 54,879** | 78,310 | 160,921 | ||||
Total | $242,592 | $108,125 | $142,107 | $310,699 |
* | Includes sub-accounting and sub-transfer agent waivers of $166 for Investor Shares and $375 for Select Shares. |
** | Includes sub-accounting and sub-transfer agent waivers of $494 for Investor Shares and $5 for Select Shares. |
Purchases of Securities | Sales/Maturities of Securities | ||
Laudus Mondrian International Equity Fund | $61,777,760 | $30,731,636 | |
Laudus Mondrian Emerging Markets Fund | 129,851,348 | 195,346,740 | |
Laudus Mondrian International Government Fixed Income Fund | 44,112,890 | 108,537,238 | |
Laudus Mondrian Global Government Fixed Income Fund | 4,674,612* | 8,795,779* |
* | Includes purchases and sales/maturities of long-term U.S. Government securities of $341,255 and $2,278,803, respectively. |
Forward Foreign Currency Exchange Contract Notional Amount | Net Unrealized Appreciation (Depreciation) | ||
Laudus Mondrian International Equity Fund | $109,537 | ($41) | |
Laudus Mondrian Emerging Markets Fund | 155,801 | 105 | |
Laudus Mondrian International Government Fixed Income Fund | 17,077,952 | 136,430 | |
Laudus Mondrian Global Government Fixed Income Fund | 2,993,303 | 23,453 |
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 | $— | $— | $329,457 | $109,483 | |||||||||
Liability Derivatives | Fair Value | ||||||||||||
Forward Foreign Currency Exchange Contracts2 | $— | $— | $398,081 | $23,706 |
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 | $28,827 | ($21,344) | $428,251 | $22,316 | |||
Change in Unrealized Appreciation (Depreciation)2 | $— | $— | $150,235 | $187,677 |
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. | $329,457 | ($329,457) | $— | $— | ||||
Total | $329,457 | ($329,457) | $— | $— | ||||
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. | ($398,081) | $329,457 | $— | ($68,624) | ||||
Total | ($398,081) | $329,457 | $— | ($68,624) |
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) | ||||
Barclays Capital, Inc. | $4,146 | ($37) | $— | $4,109 | ||||
State Street Bank & Trust Co. | 105,337 | (23,614) | — | 81,723 | ||||
Total | $109,483 | ($23,651) | $— | $85,832 | ||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | ||||
Barclays Capital, Inc. | ($37) | $37 | $— | $— | ||||
JPMorgan Chase Bank | (55) | — | — | (55) | ||||
State Street Bank & Trust Co. | (23,614) | 23,614 | — | — | ||||
Total | ($23,706) | $23,651 | $— | ($55) |
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 (4/1/15-3/31/16) | Prior Period (4/1/14-3/31/15) | ||
Laudus Mondrian International Equity Fund | $1,649 | $1,887 | |
Laudus Mondrian Emerging Markets Fund | 54,245 | 284 | |
Laudus Mondrian International Government Fixed Income Fund | 2,422 | 23,361 | |
Laudus Mondrian Global Government Fixed Income Fund | 2 | 29 |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Undistributed ordinary income | $332,419 | $1,723,771 | $— | $— | |||
Undistributed long-term capital gains | — | — | 89,361 | — | |||
Unrealized appreciation on investments | 11,212,702 | 17,792,978 | 5,349,602 | 343,642 | |||
Unrealized depreciation on investments | (6,592,985) | (80,960,718) | (5,247,640) | (645,467) | |||
Other unrealized appreciation (depreciation) | (8,694) | (216,870) | 46,607 | 2,345 | |||
Net unrealized appreciation (depreciation) | $4,611,023 | ($63,384,610) | $148,569 | ($299,480) |
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* | $— | $79,490,786 | $— | $62,471 | ||||
Total | $— | $79,490,786 | $— | $62,471 |
* | 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 | ||||
Capital losses deferred | $891,382 | $— | $— | $— | |||
Late-year ordinary losses deferred | — | — | 2,191,560 | 471,704 | |||
Capital losses expired | — | 10,818 | — | — |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Current period distributions | |||||||
Ordinary income | $2,556,153 | $5,529,636 | $— | $— | |||
Long-term capital gains | 3,537,227 | — | 2,596,705 | — | |||
Return of capital | — | — | — | — | |||
Prior period distributions | |||||||
Ordinary income | $6,674,077 | $3,818,026 | $— | $— | |||
Long-term capital gains | 9,624,246 | — | 10,072,652 | — | |||
Return of capital | — | — | — | — |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | Laudus Mondrian International Government Fixed Income Fund | Laudus Mondrian Global Government Fixed Income Fund | ||||
Capital shares | $— | ($10,818) | ($16,205,119) | ($711,994) | |||
Undistributed net investment income | (89,780) | (250,642) | 3,693,586 | (403,088) | |||
Net realized capital gains (losses) | 89,780 | 261,460 | 12,511,533 | 1,115,082 |
Before Reorganization | After Reorganization | ||||
Laudus Mondrian International Equity Fund | Laudus Mondrian Institutional International Equity Fund | Laudus Mondrian International Equity Fund | |||
Shares: | |||||
Investor Shares | 381,366 | — | 381,366 | ||
Select Shares | 393,197 | — | 393,197 | ||
Institutional Shares | 9,187,320 | 3,423,907 | 13,601,967 | ||
Net Assets: | |||||
Investor Shares | $2,421,149 | — | $2,421,149 | ||
Select Shares | $2,507,548 | — | $2,507,548 | ||
Institutional Shares | $58,760,401 | $28,253,737 | $87,014,138 | ||
Net Assets Value: | |||||
Investor Shares | $6.35 | — | $6.35 | ||
Select Shares | $6.38 | — | $6.38 | ||
Institutional Shares | $6.40 | $8.25 | $6.40 | ||
Net unrealized appreciation (depreciation) | $13,154,935 | $2,977,165 | $16,132,100 | ||
Market value of investments | $62,931,041 | $27,476,348 | $90,407,389 | ||
Cost of investments | $49,767,788 | $24,498,048 | $74,265,836 |
Before Reorganization | After Reorganization | ||||
Laudus Mondrian Emerging Markets Fund | Laudus Mondrian Institutional Emerging Markets Fund | Laudus Mondrian Emerging Markets Fund | |||
Shares: | |||||
Investor Shares | 679,482 | — | 679,482 | ||
Select Shares | 1,280,655 | — | 1,280,655 | ||
Institutional Shares | 15,962,866 | 50,218,046 | 64,489,042 | ||
Net Assets: | |||||
Investor Shares | $5,711,393 | — | $5,711,393 | ||
Select Shares | $10,765,978 | — | $10,765,978 | ||
Institutional Shares | $134,048,107 | $407,621,233 | $541,669,340 | ||
Net Assets Value: | |||||
Investor Shares | $8.41 | — | $8.41 | ||
Select Shares | $8.41 | — | $8.41 | ||
Institutional Shares | $8.40 | $8.12 | $8.40 | ||
Net unrealized appreciation (depreciation) | $6,910,189 | ($25,597,196) | ($18,687,007) | ||
Market value of investments | $150,728,589 | $228,305,848 | $379,034,437 | ||
Cost of investments | $143,818,226 | $253,903,511 | $397,721,737 |
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | ||
Net investment income | $4,491,139* | $9,482,939* | |
Net realized gains (losses) on investments | $16,492,718 | ($2,502,783) | |
Net unrealized appreciation (depreciation) on investments | ($21,053,058) | ($26,917,278) | |
Net decrease in net assets resulting from operations | ($69,201) | ($19,937,122) |
Laudus Mondrian International Equity Fund
Laudus Mondrian Emerging Markets Fund
Laudus Mondrian International Government Fixed Income Fund
Laudus Mondrian Global Government Fixed Income Fund
San Francisco, California
May 16, 2016
Foreign Tax Credit | Foreign Source Income | ||
Laudus Mondrian International Equity Fund | $285,269 | $3,914,889 | |
Laudus Mondrian Emerging Markets Fund | 1,655,045 | 15,850,314 | |
Laudus Mondrian International Government Fixed Income Fund | — | — | |
Laudus Mondrian Global Government Fixed Income Fund | — | — |
Percentage | |
Laudus Mondrian International Equity Fund | — |
Laudus Mondrian Emerging Markets Fund | 2.80 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $2,840,765 |
Laudus Mondrian Emerging Markets Fund | 5,416,747 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $3,537,227 |
Laudus Mondrian Emerging Markets Fund | — |
Laudus Mondrian International Government Fixed Income Fund | 2,596,705 |
Laudus Mondrian Global Government Fixed Income Fund | — |
Proposal – To elect each of the following individuals as trustees of the Trust: | For | Withheld | ||
Walter W. Bettinger II | 158,509,146.213 | 2,314,766.201 | ||
Marie A. Chandoha | 158,301,062.120 | 2,522,850.294 | ||
Joseph R. Martinetto | 158,359,567.405 | 2,464,345.009 | ||
Robert W. Burns | 158,459,868.358 | 2,364,044.056 | ||
John F. Cogan | 157,288,403.618 | 3,535,508.796 | ||
Stephen T. Kochis | 158,361,248.808 | 2,462,663.606 | ||
David L. Mahoney | 158,332,878.318 | 2,491,034.096 | ||
Kiran M. Patel | 158,240,340.310 | 2,583,572.104 | ||
Kimberly S. Patmore | 158,343,039.162 | 2,480,873.252 | ||
Charles A. Ruffel | 158,389,527.491 | 2,434,384.923 | ||
Gerald B. Smith | 158,310,596.926 | 2,513,315.488 | ||
Joseph H. Wender | 158,242,415.183 | 2,581,497.231 |
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 |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds. | 96 | Director, PS Business Parks, Inc. (2005 – 2012). |
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 since 2010; Schwab Strategic Trust since 2016) | 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). | 96 | Director, Gilead Sciences, Inc. (2005 – present) |
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – Apr. 2012). | 96 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 96 | 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 and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | 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). | 96 | Director, KLA-Tencor Corporation (2008 – present) |
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 |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Consultant, Patmore Management Consulting (management consulting) (2008 – present). | 96 | None |
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 and Laudus 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). | 96 | None |
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 since 2010; Schwab Strategic Trust since 2016) | Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present). | 96 | 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 since 2010; Schwab Strategic Trust since 2016) | Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present). | 96 | 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 Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and 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 since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation (Oct. 2008 – present); President and Chief Executive Officer (Oct. 2008 – present), Director (May 2008 – present), Charles Schwab & Co., Inc.; Director, Charles Schwab Bank (Apr. 2006 – present); and Director, Schwab Holdings, Inc. (May 2008 – present). | 96 | Director, The Charles Schwab Corporation (2008 – present) |
Interested 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 |
Marie A. Chandoha2 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), 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 (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (Mar. 2007 – Aug. 2010). | 96 | None |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Senior Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (July 2015 – present); Executive Vice President and Chief Financial Officer of The Charles Schwab Corporation and Charles Schwab & Co., Inc. (May 2007 – July 2015); Director, Charles Schwab & Co., Inc. (May 2007 – present); Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director, Executive Vice President and Chief Financial Officer, Schwab Holdings, Inc. (May 2007 – present). | 96 | None |
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 A. Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2010) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), 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 (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (Mar. 2007 – Aug. 2010). |
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Jan. 2016 – present); Assistant Treasurer, Schwab Funds and Laudus Funds (Dec. 2013 – Dec. 2015), Schwab ETFs (Nov. 2013 – Dec. 2015); Vice President, Charles Schwab Investment Management, Inc. (Oct. 2013 – present); Executive Director, J.P. Morgan Investor Services (Apr. 2011 – Sept. 2013); Assistant Treasurer, Massachusetts Financial Service Investment Management (May 2005 – Mar. 2011). |
Officers of the Trust (continued) | |
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 |
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009) | Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – Dec. 2015); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – Dec. 2015) and Schwab ETFs (Oct. 2009 – Dec. 2015); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Apr. 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, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (Apr. 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 – Apr. 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, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (Apr. 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 (Apr. 2006 – Jan. 2008). |
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (Mar. 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 (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (Apr. 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 and Schwab ETFs 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 and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (Mar. 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 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger, Ms. Chandoha, and Mr. Martinetto are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
INFORMATION.
INFORMATION.
Partnership
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00164376
Table of Contents
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Total Return for the 12 Months Ended March 31, 2016 | |
Laudus U.S. Large Cap Growth Fund (Ticker Symbol: LGILX) | -2.50% |
Russell 1000® Growth Index | 2.52% |
Performance Details | pages 6-7 |
Fund Characteristics | |
Number of Securities | 49 |
Weighted Average Market Cap (millions) | $179,988 |
Price/Earnings Ratio (P/E) | 32.27 |
Price/Book Ratio (P/B) | 4.41 |
Portfolio Turnover (One year trailing) | 82% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 10/14/1997* |
Ticker Symbol | LGILX |
Cusip | 51855Q549 |
NAV | $15.76 |
* | Inception date is that of the fund’s predecessor fund, the Y Class of the UBS U.S. Large Cap Growth Fund. |
Performance of Hypothetical
$10,000 Investment1
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Laudus U.S. Large Cap Growth Fund (10/14/97)1 | -2.50% | 11.22% | 8.96% |
Russell 1000® Growth Index | 2.52% | 12.38% | 8.28% |
Information Technology | 39.4% |
Consumer Discretionary | 18.4% |
Health Care | 12.8% |
Consumer Staples | 8.7% |
Financials | 7.6% |
Industrials | 6.5% |
Materials | 3.5% |
Energy | 1.9% |
Telecommunication Services | 1.2% |
Total | 100.0% |
Alphabet, Inc., Class A | 7.9% |
Facebook, Inc., Class A | 6.7% |
Amazon.com, Inc. | 5.5% |
Visa, Inc., Class A | 5.0% |
Apple, Inc. | 4.6% |
UnitedHealth Group, Inc. | 3.5% |
Berkshire Hathaway, Inc., Class B | 3.5% |
Anheuser-Busch InBev N.V. ADR | 3.2% |
Microsoft Corp. | 3.2% |
salesforce.com, Inc. | 3.0% |
Total | 46.1% |
1 | The Laudus U.S. Large Cap Growth Fund was launched on 7/13/09. The fund was formerly known as UBS U.S. Large Cap Growth Fund. The performance and returns prior to 7/13/09 reflects the returns of UBS U.S. Large Cap Growth Fund, Class Y Shares. |
2 | As stated in the prospectus. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements. |
3 | This list is not a recommendation of any security by the investment adviser or subadviser. |
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
Expense Ratio1 (Annualized) | Beginning Account Value at 10/1/15 | Ending Account Value (Net of Expenses) at 3/31/16 | Expenses Paid During Period2 10/1/15-3/31/16 | |
Laudus U.S. Large Cap Growth Fund | ||||
Actual Return | 0.74% | $1,000.00 | $1,026.90 | $3.75 |
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 which covers a 12-month period. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 366 days of the fiscal year. |
4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | 4/1/11– 3/31/12 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $17.22 | $18.19 | $15.58 | $14.83 | $13.36 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.01) | (0.01) | (0.02) | 0.02 | (0.02) | |
Net realized and unrealized gains (losses) | (0.37) | 2.44 | 3.85 | 1.01 | 1.77 | |
Total from investment operations | (0.38) | 2.43 | 3.83 | 1.03 | 1.75 | |
Less distributions: | ||||||
Distributions from net investment income | — | — | — | (0.02) | — | |
Distributions from net realized gains | (1.08) | (3.40) | (1.22) | (0.26) | (0.28) | |
Total distributions | (1.08) | (3.40) | (1.22) | (0.28) | (0.28) | |
Net asset value at end of period | $15.76 | $17.22 | $18.19 | $15.58 | $14.83 | |
Total return | (2.50%) | 14.99% | 24.81% | 7.09% | 13.58% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.75% | 0.77% | 0.78% 2 | 0.78% | 0.78% | |
Gross operating expenses | 0.75% | 0.77% | 0.78% | 0.82% | 0.88% | |
Net investment income (loss) | (0.04%) | (0.06%) | (0.12%) | 0.13% | (0.17%) | |
Portfolio turnover rate | 82% | 102% | 124% | 76% | 96% | |
Net assets, end of period (x 1,000) | $1,969,169 | $2,171,783 | $2,122,365 | $1,695,291 | $1,029,502 | |
Holdings by Category | Cost ($) | Value ($) | |
99.9% | Common Stock | 1,693,425,524 | 1,967,447,712 |
99.9% | Total Investments | 1,693,425,524 | 1,967,447,712 |
0.1% | Other Assets and Liabilities, Net | 1,720,804 | |
100.0% | Net Assets | 1,969,168,516 |
Security | Number of Shares | Value ($) |
Common Stock 99.9% of net assets | ||
Capital Goods 3.4% | ||
Acuity Brands, Inc. | 105,757 | 23,069,832 |
Honeywell International, Inc. | 176,152 | 19,737,832 |
TransDigm Group, Inc. * | 108,025 | 23,802,228 |
66,609,892 | ||
Consumer Durables & Apparel 2.0% | ||
NIKE, Inc., Class B | 635,919 | 39,089,941 |
Consumer Services 2.4% | ||
Chipotle Mexican Grill, Inc. * | 37,917 | 17,857,770 |
Domino's Pizza, Inc. | 126,821 | 16,722,617 |
Starbucks Corp. | 200,386 | 11,963,044 |
46,543,431 | ||
Diversified Financials 6.2% | ||
Berkshire Hathaway, Inc., Class B * | 479,464 | 68,026,352 |
Moody's Corp. | 107,317 | 10,362,529 |
Morgan Stanley | 957,466 | 23,946,225 |
The Goldman Sachs Group, Inc. | 129,567 | 20,339,428 |
122,674,534 | ||
Energy 1.8% | ||
Concho Resources, Inc. * | 249,998 | 25,259,798 |
EOG Resources, Inc. | 154,175 | 11,190,021 |
36,449,819 | ||
Food & Staples Retailing 2.2% | ||
Costco Wholesale Corp. | 275,886 | 43,474,116 |
Security | Number of Shares | Value ($) |
Food, Beverage & Tobacco 6.5% | ||
Anheuser-Busch InBev N.V. ADR | 509,548 | 63,520,254 |
Constellation Brands, Inc., Class A | 377,560 | 57,045,540 |
Mead Johnson Nutrition Co. | 92,581 | 7,866,608 |
128,432,402 | ||
Health Care Equipment & Services 4.6% | ||
Intuitive Surgical, Inc. * | 37,296 | 22,416,761 |
UnitedHealth Group, Inc. | 531,939 | 68,566,937 |
90,983,698 | ||
Materials 3.5% | ||
Ecolab, Inc. | 174,765 | 19,489,793 |
The Sherwin-Williams Co. | 170,427 | 48,515,454 |
68,005,247 | ||
Media 2.1% | ||
Liberty Global plc, Class A * | 1,086,830 | 41,842,955 |
Pharmaceuticals, Biotechnology & Life Sciences 8.2% | ||
Allergan plc * | 32,213 | 8,634,050 |
Biogen, Inc. * | 106,584 | 27,745,947 |
Celgene Corp. * | 187,181 | 18,734,946 |
Illumina, Inc. * | 273,589 | 44,351,513 |
Perrigo Co., plc | 120,998 | 15,479,274 |
United Therapeutics Corp. * | 94,365 | 10,515,092 |
Vertex Pharmaceuticals, Inc. * | 446,458 | 35,488,947 |
160,949,769 | ||
Real Estate 1.4% | ||
Crown Castle International Corp. | 312,108 | 26,997,342 |
Retailing 12.0% | ||
Amazon.com, Inc. * | 180,913 | 107,397,193 |
Netflix, Inc. * | 495,931 | 50,699,026 |
The Home Depot, Inc. | 332,573 | 44,375,215 |
TripAdvisor, Inc. * | 497,437 | 33,079,561 |
235,550,995 | ||
Semiconductors & Semiconductor Equipment 0.5% | ||
Applied Materials, Inc. | 500,026 | 10,590,551 |
Software & Services 34.2% | ||
Activision Blizzard, Inc. | 1,228,219 | 41,562,931 |
Alliance Data Systems Corp. * | 79,233 | 17,431,260 |
Alphabet, Inc., Class A * | 204,282 | 155,846,738 |
Facebook, Inc., Class A * | 1,153,512 | 131,615,719 |
Fiserv, Inc. * | 126,792 | 13,006,323 |
FleetCor Technologies, Inc. * | 278,066 | 41,362,318 |
Microsoft Corp. | 1,141,026 | 63,018,866 |
salesforce.com, Inc. * | 802,286 | 59,232,775 |
Tencent Holdings Ltd. | 2,469,900 | 50,495,520 |
Visa, Inc., Class A | 1,296,321 | 99,142,630 |
672,715,080 |
Security | Number of Shares | Value ($) |
Technology Hardware & Equipment 4.6% | ||
Apple, Inc. | 834,751 | 90,979,511 |
Telecommunication Services 1.2% | ||
SBA Communications Corp., Class A * | 239,229 | 23,963,569 |
Transportation 3.1% | ||
Delta Air Lines, Inc. | 657,990 | 32,030,953 |
Norfolk Southern Corp. | 355,122 | 29,563,907 |
61,594,860 | ||
Total Common Stock | ||
(Cost $1,693,425,524) | 1,967,447,712 |
At 03/31/16, the tax basis cost of the fund's investments was $1,703,924,075 and the unrealized appreciation and depreciation were $299,802,030 and ($36,278,393), respectively, with a net unrealized appreciation of $263,523,637.
* | Non-income producing security. |
ADR — | American Depositary Receipt |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
Common Stock1 | $1,294,732,632 | $— | $— | $1,294,732,632 | |||||
Software & Services | 622,219,560 | 50,495,520 | — | 672,715,080 | |||||
Total | $1,916,952,192 | $50,495,520 | $— | $1,967,447,712 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $1,693,425,524) | $1,967,447,712 | |
Foreign currency, at value (cost $86) | 86 | |
Receivables: | ||
Investments sold | 23,492,753 | |
Fund shares sold | 3,184,096 | |
Dividends | 583,412 | |
Interest | 4,015 | |
Prepaid expenses | + | 37,029 |
Total assets | 1,994,749,103 | |
Liabilities | ||
Payables: | ||
Investments bought | 13,395,524 | |
Fund shares redeemed | 8,588,252 | |
Due to custodian | 2,887,650 | |
Investment adviser fees | 282,022 | |
Accrued expenses | + | 427,139 |
Total liabilities | 25,580,587 | |
Net Assets | ||
Total assets | 1,994,749,103 | |
Total liabilities | – | 25,580,587 |
Net assets | $1,969,168,516 | |
Net Assets by Source | ||
Capital received from investors | 1,705,636,333 | |
Net investment loss | (186,198) | |
Net realized capital losses | (10,304,485) | |
Net unrealized capital appreciation | 274,022,866 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$1,969,168,516 | 124,930,566 | $15.76 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $66,291) | $15,296,161 | |
Expenses | ||
Investment adviser fees | 13,503,642 | |
Sub-accounting and sub-transfer agent fees | 1,843,203 | |
Transfer agent fees | 239,050 | |
Accounting and administration fees | 97,144 | |
Proxy fees | 96,115 | |
Registration fees | 84,403 | |
Custodian fees | 69,768 | |
Shareholder reports | 63,741 | |
Independent trustees' fees | 48,611 | |
Professional fees | 43,365 | |
Interest expense | 838 | |
Other expenses | + | 38,744 |
Total expenses | – | 16,128,624 |
Net investment loss | (832,463) | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 35,121,210 | |
Net realized gains on foreign currency transactions | + | 365 |
Net realized gains | 35,121,575 | |
Net change in unrealized appreciation (depreciation) on investments | (85,430,251) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 678 |
Net change in unrealized appreciation (depreciation) | + | (85,429,573) |
Net realized and unrealized losses | �� | (50,307,998) |
Decrease in net assets resulting from operations | ($51,140,461) |
Operations | |||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||
Net investment loss | ($832,463) | ($1,218,447) | |
Net realized gains | 35,121,575 | 298,063,228 | |
Net change in unrealized appreciation (depreciation) | + | (85,429,573) | 9,864,866 |
Increase (decrease) in net assets from operations | (51,140,461) | 306,709,647 | |
Distributions to Shareholders | |||
Distributions from net realized gains | ($135,764,007) | ($380,081,181) |
Transactions in Fund Shares | |||||
4/1/15-3/31/16 | 4/1/14-3/31/15 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 28,513,967 | $480,079,820 | 25,502,047 | $453,837,486 | |
Shares reinvested | 8,112,711 | 134,103,107 | 21,694,327 | 343,421,201 | |
Shares redeemed | + | (37,818,691) | (629,893,215) | (37,735,284) | (674,468,404) |
Net transactions in fund shares | (1,192,013) | ($15,710,288) | 9,461,090 | $122,790,283 | |
Shares Outstanding and Net Assets | |||||
4/1/15-3/31/16 | 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 | + | (1,192,013) | (202,614,756) | 9,461,090 | 49,418,749 |
End of period | 124,930,566 | $1,969,168,516 | 126,122,579 | $2,171,783,272 | |
Net investment loss | ($186,198) | ($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 | |
$1,739,090,902 | $1,885,127,138 |
Current Period (4/1/15-3/31/16) | Prior Period (4/1/14-3/31/15) | |
$42,063 | $32,592 |
Undistributed long-term capital gains | $194,066 |
Unrealized appreciation on investments | 299,802,030 |
Unrealized depreciation on investments | (36,278,393) |
Other unrealized appreciation (depreciation) | 678 |
Net unrealized appreciation (depreciation) | $263,524,315 |
Current period distributions | |
Ordinary income | $— |
Long-term capital gains | 135,764,007 |
Return of capital | — |
Prior period distributions | |
Ordinary income | $48,239,627 |
Long-term capital gains | 331,841,554 |
Return of capital | — |
Capital shares | $48,670 |
Undistributed net investment income | 2,415,253 |
Net realized capital gains (losses) | (2,463,923) |
Laudus U.S. Large Cap Growth Fund
San Francisco, California
May 16, 2016
Proposal – To elect each of the following individuals as trustees of the Trust: | For | Withheld | ||
Walter W. Bettinger II | 158,509,146.213 | 2,314,766.201 | ||
Marie A. Chandoha | 158,301,062.120 | 2,522,850.294 | ||
Joseph R. Martinetto | 158,359,567.405 | 2,464,345.009 | ||
Robert W. Burns | 158,459,868.358 | 2,364,044.056 | ||
John F. Cogan | 157,288,403.618 | 3,535,508.796 | ||
Stephen T. Kochis | 158,361,248.808 | 2,462,663.606 | ||
David L. Mahoney | 158,332,878.318 | 2,491,034.096 | ||
Kiran M. Patel | 158,240,340.310 | 2,583,572.104 | ||
Kimberly S. Patmore | 158,343,039.162 | 2,480,873.252 | ||
Charles A. Ruffel | 158,389,527.491 | 2,434,384.923 | ||
Gerald B. Smith | 158,310,596.926 | 2,513,315.488 | ||
Joseph H. Wender | 158,242,415.183 | 2,581,497.231 |
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 |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds. | 96 | Director, PS Business Parks, Inc. (2005 – 2012). |
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 since 2010; Schwab Strategic Trust since 2016) | 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). | 96 | Director, Gilead Sciences, Inc. (2005 – present) |
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – Apr. 2012). | 96 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 96 | 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 and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | 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). | 96 | Director, KLA-Tencor Corporation (2008 – present) |
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 |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Consultant, Patmore Management Consulting (management consulting) (2008 – present). | 96 | None |
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 and Laudus 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). | 96 | None |
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 since 2010; Schwab Strategic Trust since 2016) | Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 – present). | 96 | 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 since 2010; Schwab Strategic Trust since 2016) | Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present). | 96 | 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 Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and 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 since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation (Oct. 2008 – present); President and Chief Executive Officer (Oct. 2008 – present), Director (May 2008 – present), Charles Schwab & Co., Inc.; Director, Charles Schwab Bank (Apr. 2006 – present); and Director, Schwab Holdings, Inc. (May 2008 – present). | 96 | Director, The Charles Schwab Corporation (2008 – present) |
Interested 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 |
Marie A. Chandoha2 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), 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 (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (Mar. 2007 – Aug. 2010). | 96 | None |
Joseph R. Martinetto2 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust, and Laudus Trust since 2016) | Senior Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (July 2015 – present); Executive Vice President and Chief Financial Officer of The Charles Schwab Corporation and Charles Schwab & Co., Inc. (May 2007 – July 2015); Director, Charles Schwab & Co., Inc. (May 2007 – present); Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director, Executive Vice President and Chief Financial Officer, Schwab Holdings, Inc. (May 2007 – present). | 96 | None |
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 A. Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2010) | Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; Trustee (Jan. 2016 – present), 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 (Jan. 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (Mar. 2007 – Aug. 2010). |
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Jan. 2016 – present); Assistant Treasurer, Schwab Funds and Laudus Funds (Dec. 2013 – Dec. 2015), Schwab ETFs (Nov. 2013 – Dec. 2015); Vice President, Charles Schwab Investment Management, Inc. (Oct. 2013 – present); Executive Director, J.P. Morgan Investor Services (Apr. 2011 – Sept. 2013); Assistant Treasurer, Massachusetts Financial Service Investment Management (May 2005 – Mar. 2011). |
Officers of the Trust (continued) | |
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 |
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009) | Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – Dec. 2015); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – Dec. 2015) and Schwab ETFs (Oct. 2009 – Dec. 2015); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (Apr. 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, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (Apr. 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 – Apr. 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, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (Apr. 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 (Apr. 2006 – Jan. 2008). |
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (Mar. 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 (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (Apr. 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 and Schwab ETFs 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 and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (Mar. 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 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger, Ms. Chandoha, and Mr. Martinetto are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
INFORMATION.
INFORMATION.
Partnership
211 Main Street, San Francisco, CA 94105
1.800.447.3332 Individual Investors
00164377
Table of Contents
Item 2: Code of Ethics.
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
(f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 11(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Kiran M. Patel, Robert W. Burns and Kimberly S. Patmore, each currently serving on its audit, compliance and valuation committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit, compliance and valuation committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Mr. Patel, Mr. Burns and Ms. Patmore as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of five series which all have a fiscal year-end of March 31, whose annual financial statements are reported in Item 1. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the five series, based on their respective 2016 and 2015 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
(a) Audit Fees | (b)Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||
Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2016 | Fiscal Year 2015 | |||||||
$241,876 | $241,876 | $0 | $0 | $29,379 | $29,379 | $0 | $339 |
Table of Contents
1 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
2 | The nature of the services includes tax compliance, tax advice and tax planning. |
3 | The nature of the services include agreed upon procedures relating to Charles Schwab Investment Management., Inc.’s, (“CSIM”) expenses for purposes of Section 15(c) of the Investment Company Act of 1940. |
(e)(1) Registrant’s audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X.
(f) | Not applicable. |
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2016: $29,379 | 2015: $29,718 |
Although not required to be included in the amounts disclosed under this paragraph (g) or any other paragraph of this Item 4, below are the aggregate fees billed in each of the last two fiscal years by Registrant’s principal accountant for tax compliance services rendered to U.S. Trust, an entity under common control with Registrant’s investment adviser that does not provide services to Registrant.
2016: NONE | 2015: NONE |
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
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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 Chief Financial Officer, Mark Fischer, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Exhibits.
(a) (1) | Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. |
(2) | Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. |
(3) | Not applicable. |
(b) | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
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 | ||
President and Chief Executive Officer | ||
Date: | 5/13/2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Marie Chandoha | |
Marie Chandoha | ||
President and Chief Executive Officer | ||
Date: | 5/13/2016 | |
By: | /s/ Mark Fischer | |
Mark Fischer | ||
Chief Financial Officer | ||
Date: | 5/17/2016 |