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, 2017
Item 1: | Report(s) to Shareholders. |
Table of Contents
Total Return for the 12 Months Ended March 31, 2017 | |
Laudus Mondrian International Equity Fund1 | |
Investor Shares (Ticker Symbol: LIEQX) | 10.37% |
Select Shares (Ticker Symbol: LIEFX) | 10.51% |
Institutional Shares (Ticker Symbol: LIEIX) | 10.78% |
MSCI EAFE Index® (Net) | 11.67% |
MSCI EAFE® Value Index (Net) | 15.98% |
Performance Details | pages 7-10 |
Laudus Mondrian Emerging Markets Fund1 | |
Investor Shares (Ticker Symbol: LEMIX) | 12.11% |
Select Shares (Ticker Symbol: LEMSX) | 12.46% |
Institutional Shares (Ticker Symbol: LEMNX) | 12.57% |
MSCI Emerging Markets Index (Net) | 17.22% |
Performance Details | pages 11-14 |
Laudus Mondrian International Government Fixed Income Fund (Ticker Symbol: LIFNX) | -5.48% |
Citigroup non-US Dollar World Government Bond Index | -4.79% |
Performance Details | pages 15-17 |
Laudus Mondrian Global Government Fixed Income Fund (Ticker Symbol: LMGDX) | -1.64% |
Custom Composite Index2 | -1.91% |
Citigroup World Government Bond Index | -3.65% |
Performance Details | pages 18-20 |
1 | The fund's performance relative to the indices may be affected by fair-value pricing, see financial note 2 for more information. |
2 | The Custom Composite Index is composed of the Citigroup World Government Bond Index from the Fund’s inception until the close of business on 3/31/13, and a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index from 4/1/2013 forward. |
President and CEO of
Charles Schwab Investment
Management, Inc. and the
funds covered in this report.
1 | The Thomson Reuters Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see www.lipperfundawards.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. |
Fund Characteristics | |
Number of Companies1 | 37 |
Weighted Average Market Cap (millions) | $75,853 |
Price/Earnings Ratio (P/E) | 20.53 |
Price/Book Ratio (P/B) | 1.65 |
Portfolio Turnover (One year trailing) | 34% |
Fund Overview | |||
Investor Shares | Select Shares | Institutional Shares | |
Minimum Initial Investment | $100 | $50,000 | $500,000 |
Inception Date | 6/16/2008 | 6/16/2008 | 6/16/2008 |
Ticker Symbol | LIEQX | LIEFX | LIEIX |
Cusip | 51855Q614 | 51855Q564 | 51855Q580 |
NAV | $6.06 | $6.10 | $6.12 |
1 | Short-term investments are not included. |
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. |
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (6/16/08) | 10.37% | 5.74% | 0.60% |
Select Shares (6/16/08) | 10.51% | 5.99% | 0.84% |
Institutional Shares (6/16/08) | 10.78% | 6.06% | 0.92% |
MSCI EAFE Index® (Net) | 11.67% | 5.83% | 1.40% |
MSCI EAFE® Value Index (Net) | 15.98% | 5.56% | 0.97% |
Fund Expense Ratios2: Investor Shares: Net 1.26%; Gross 1.41% / Select Shares: Net 1.03%; Gross 1.18% / Institutional Shares: Net 0.90%; Gross 1.05% |
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 7/30/2018. 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. |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Companies1 | 50 |
Weighted Average Market Cap (millions) | $45,540 |
Price/Earnings Ratio (P/E) | 11.26 |
Price/Book Ratio (P/B) | 1.37 |
Portfolio Turnover (One year trailing) | 32% |
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 | $7.72 | $7.72 | $7.71 |
1 | Short-term investments are not included. |
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. |
Class and Inception Date | 1 Year | 5 Years | Since Inception |
Investor Shares (11/2/07) | 12.11% | -2.40% | -1.24% |
Select Shares (11/2/07) | 12.46% | -2.11% | -0.94% |
Institutional Shares (11/2/07) | 12.57% | -2.02% | -0.87% |
MSCI Emerging Markets Index (Net) | 17.22% | 0.81% | -0.96% |
Fund Expense Ratios2: Investor Shares: Net 1.60%; Gross 1.61% / Select Shares: Net 1.29%; Gross 1.30% / Institutional Shares: Net 1.20%; Gross 1.21% |
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 7/30/2018. 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. |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues1 | 43 |
Weighted Average Maturity2 | 9.7 Yrs |
Weighted Average Duration2 | 8.2 Yrs |
Portfolio Turnover (One year trailing) | 98% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 11/2/2007 |
Ticker Symbol | LIFNX |
Cusip | 51855Q655 |
NAV | $9.32 |
1 | Short-term investments are not included. |
2 | See Glossary for definitions of maturity and duration. |
Fund and Inception Date | 1 Year | 5 Years | Since Inception |
Laudus Mondrian International Government Fixed Income Fund (11/2/07) | -5.48% | -2.45% | 1.80% |
Citigroup non-US Dollar World Government Bond Index | -4.79% | -1.50% | 1.90% |
Fund Expense Ratios3: Net 0.75%; Gross 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 | 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 7/30/2018. 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. |
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 | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. Bonds are issued and held in Japanese yen and euro. |
3 | Includes forward foreign currency exchange contracts exposure, which may results in negative exposure to a particular currency. |
4 | Amount is less than 0.05% |
5 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Fund Characteristics | |
Number of Issues2 | 73 |
Weighted Average Maturity3 | 8.5 Yrs |
Weighted Average Duration3 | 6.7 Yrs |
Portfolio Turnover (One year trailing) | 63% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 7/10/2012 |
Ticker Symbol | LMGDX |
Cusip | 51855Q119 |
NAV | $9.01 |
1 | The Custom Composite Index is composed of the Citigroup World Government Bond Index from the Fund’s inception until the close of business on 3/31/13, and a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index from 4/1/2013 forward. |
2 | Short-term investments are not included. |
3 | See Glossary for definitions of maturity and duration. |
Fund and Inception Date | 1 Year | Since Inception |
Laudus Mondrian Global Government Fixed Income Fund (7/10/12) | -1.64% | -1.84% |
Custom Composite Index2 | -1.91% | -1.01% |
Citigroup World Government Bond Index | -3.65% | -0.76% |
Fund Expense Ratios3: Net 0.85%; Gross 2.23% |
1 | Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
2 | The Custom Composite Index is composed of the Citigroup World Government Bond Index from the Fund’s inception until the close of business on 3/31/13, and a blend of 80% Citigroup World Government Bond Index/20% Citigroup Custom Emerging Markets Government Bond Index from 4/1/2013 forward. |
3 | As stated in the prospectus. Net Expenses: The adviser has agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.85% until at least 7/30/2018. 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. |
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. |
Expense Ratio (Annualized)1 | Beginning Account Value at 10/1/16 | Ending Account Value (Net of Expenses) at 3/31/17 | Expenses Paid During Period 10/1/16-3/31/172 | |
Laudus Mondrian International Equity Fund | ||||
Investor Shares | ||||
Actual Return | 1.27% | $1,000.00 | $1,055.00 | $6.51 |
Hypothetical 5% Return | 1.27% | $1,000.00 | $1,018.57 | $6.39 |
Select Shares | ||||
Actual Return | 1.03% | $1,000.00 | $1,056.70 | $5.28 |
Hypothetical 5% Return | 1.03% | $1,000.00 | $1,019.76 | $5.19 |
Institutional Shares | ||||
Actual Return | 0.90% | $1,000.00 | $1,057.60 | $4.62 |
Hypothetical 5% Return | 0.90% | $1,000.00 | $1,020.41 | $4.53 |
Laudus Mondrian Emerging Markets Fund | ||||
Investor Shares | ||||
Actual Return | 1.60% | $1,000.00 | $1,052.30 | $8.19 |
Hypothetical 5% Return | 1.60% | $1,000.00 | $1,016.92 | $8.05 |
Select Shares | ||||
Actual Return | 1.25% | $1,000.00 | $1,054.30 | $6.40 |
Hypothetical 5% Return | 1.25% | $1,000.00 | $1,018.67 | $6.29 |
Institutional Shares | ||||
Actual Return | 1.20% | $1,000.00 | $1,055.20 | $6.15 |
Hypothetical 5% Return | 1.20% | $1,000.00 | $1,018.92 | $6.04 |
Laudus Mondrian International Government Fixed Income Fund | ||||
Actual Return | 0.75% | $1,000.00 | $ 914.80 | $3.58 |
Hypothetical 5% Return | 0.75% | $1,000.00 | $1,021.16 | $3.78 |
Laudus Mondrian Global Government Fixed Income Fund | ||||
Actual Return | 0.85% | $1,000.00 | $ 948.40 | $4.13 |
Hypothetical 5% Return | 0.85% | $1,000.00 | $1,020.66 | $4.28 |
1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12- month period. |
2 | Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 182 days of the period, and divided by the 365 days of the fiscal year. |
Investor Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $5.63 | $6.45 | $8.76 | $7.43 | $7.19 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.16 | 0.12 | 0.16 | 0.29 | 0.21 | |
Net realized and unrealized gains (losses) | 0.41 | (0.59) | (0.31) | 1.25 | 0.26 | |
Total from investment operations | 0.57 | (0.47) | (0.15) | 1.54 | 0.47 | |
Less distributions: | ||||||
Distributions from net investment income | (0.14) | (0.13) | (0.88) | (0.21) | (0.22) | |
Distributions from net realized gains | — | (0.22) | (1.28) | — | (0.01) | |
Total distributions | (0.14) | (0.35) | (2.16) | (0.21) | (0.23) | |
Net asset value at end of period | $6.06 | $5.63 | $6.45 | $8.76 | $7.43 | |
Total return | 10.37% | (7.20%) | (0.02%) | 20.86% | 6.79% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.25% | 1.26% | 1.17% | 1.27% | 1.40% | |
Gross operating expenses | 1.32% | 1.42% | 1.33% | 1.29% | 1.51% | |
Net investment income (loss) | 2.71% | 1.99% | 2.08% | 3.56% | 3.03% | |
Portfolio turnover rate | 34% | 29% | 36% 2 | 25% | 29% | |
Net assets, end of period (x 1,000) | $7,250 | $5,187 | $3,486 | $1,185 | $926 | |
Select Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $5.67 | $6.48 | $8.79 | $7.45 | $7.20 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.17 | 0.13 | 0.20 | 0.37 | 0.24 | |
Net realized and unrealized gains (losses) | 0.41 | (0.58) | (0.35) | 1.19 | 0.26 | |
Total from investment operations | 0.58 | (0.45) | (0.15) | 1.56 | 0.50 | |
Less distributions: | ||||||
Distributions from net investment income | (0.15) | (0.14) | (0.88) | (0.22) | (0.24) | |
Distributions from net realized gains | — | (0.22) | (1.28) | — | (0.01) | |
Total distributions | (0.15) | (0.36) | (2.16) | (0.22) | (0.25) | |
Net asset value at end of period | $6.10 | $5.67 | $6.48 | $8.79 | $7.45 | |
Total return | 10.51% | (6.84%) | 0.04% | 21.17% | 7.18% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.02% | 1.04% | 1.08% 3 | 1.07% | 1.12% | |
Gross operating expenses | 1.09% | 1.19% | 1.23% | 1.08% | 1.26% | |
Net investment income (loss) | 2.88% | 2.14% | 2.56% | 4.53% | 3.37% | |
Portfolio turnover rate | 34% | 29% | 36% 2 | 25% | 29% | |
Net assets, end of period (x 1,000) | $6,092 | $4,465 | $2,981 | $2,238 | $768 |
Institutional Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $5.68 | $6.50 | $8.81 | $7.46 | $7.22 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.18 | 0.16 | 0.27 | 0.35 | 0.23 | |
Net realized and unrealized gains (losses) | 0.42 | (0.61) | (0.41) | 1.22 | 0.27 | |
Total from investment operations | 0.60 | (0.45) | (0.14) | 1.57 | 0.50 | |
Less distributions: | ||||||
Distributions from net investment income | (0.16) | (0.15) | (0.89) | (0.22) | (0.25) | |
Distributions from net realized gains | — | (0.22) | (1.28) | — | (0.01) | |
Total distributions | (0.16) | (0.37) | (2.17) | (0.22) | (0.26) | |
Net asset value at end of period | $6.12 | $5.68 | $6.50 | $8.81 | $7.46 | |
Total return | 10.78% | (6.88%) | 0.11% | 21.31% | 7.10% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.90% | 0.91% 2 | 1.01% 3 | 1.05% | 1.05% | |
Gross operating expenses | 0.96% | 1.06% | 1.07% | 1.07% | 1.11% | |
Net investment income (loss) | 3.10% | 2.53% | 3.28% | 4.24% | 3.22% | |
Portfolio turnover rate | 34% | 29% | 36% 4 | 25% | 29% | |
Net assets, end of period (x 1,000) | $92,312 | $110,873 | $91,981 | $162,366 | $127,709 | |
Holdings by Category | Cost ($) | Value ($) | |
98.7% | Common Stock | 85,736,120 | 104,287,792 |
0.8% | Other Investment Company | 869,962 | 869,962 |
99.5% | Total Investments | 86,606,082 | 105,157,754 |
0.5% | Other Assets and Liabilities, Net | 496,537 | |
100.0% | Net Assets | 105,654,291 |
Security | Number of Shares | Value ($) |
Common Stock 98.7% of net assets | ||
Australia 1.9% | ||
Insurance 1.9% | ||
QBE Insurance Group Ltd. | 202,837 | 1,996,895 |
China 2.3% | ||
Telecommunication Services 2.3% | ||
China Mobile Ltd. | 217,000 | 2,386,458 |
France 6.4% | ||
Capital Goods 2.7% | ||
Compagnie de Saint-Gobain | 56,703 | 2,909,250 |
Pharmaceuticals, Biotechnology & Life Sciences 3.7% | ||
Sanofi | 42,862 | 3,874,519 |
6,783,769 | ||
Germany 10.0% | ||
Automobiles & Components 2.0% | ||
Daimler AG — Reg'd | 29,058 | 2,144,466 |
Insurance 2.4% | ||
Allianz SE — Reg'd | 13,819 | 2,562,680 |
Software & Services 3.7% | ||
SAP SE | 39,480 | 3,873,302 |
Telecommunication Services 1.9% | ||
Deutsche Telekom AG — Reg'd | 116,226 | 2,036,585 |
10,617,033 | ||
Italy 6.1% | ||
Energy 3.3% | ||
Eni S.p.A. | 210,691 | 3,449,703 |
Utilities 2.8% | ||
Enel S.p.A. | 629,491 | 2,962,046 |
6,411,749 | ||
Japan 14.7% | ||
Automobiles & Components 3.7% | ||
Honda Motor Co., Ltd. | 117,000 | 3,532,118 |
Sumitomo Electric Industries Ltd. | 20,900 | 347,428 |
3,879,546 | ||
Capital Goods 1.6% | ||
Mitsubishi Electric Corp. | 119,500 | 1,721,790 |
Security | Number of Shares | Value ($) |
Insurance 3.3% | ||
Tokio Marine Holdings, Inc. | 81,700 | 3,452,996 |
Pharmaceuticals, Biotechnology & Life Sciences 3.5% | ||
Takeda Pharmaceutical Co., Ltd. | 79,700 | 3,752,046 |
Technology Hardware & Equipment 2.6% | ||
Canon, Inc. | 86,700 | 2,707,524 |
15,513,902 | ||
Netherlands 2.6% | ||
Food & Staples Retailing 2.6% | ||
Koninklijke Ahold Delhaize N.V. | 127,572 | 2,726,189 |
Singapore 5.3% | ||
Banks 3.0% | ||
United Overseas Bank Ltd. | 201,897 | 3,189,017 |
Telecommunication Services 2.3% | ||
Singapore Telecommunications Ltd. | 859,300 | 2,408,044 |
5,597,061 | ||
Spain 7.0% | ||
Banks 1.3% | ||
Banco Santander S.A. | 222,672 | 1,363,043 |
Telecommunication Services 2.6% | ||
Telefonica S.A. | 246,304 | 2,756,961 |
Utilities 3.1% | ||
Iberdrola S.A. | 461,807 | 3,299,560 |
7,419,564 | ||
Sweden 3.0% | ||
Telecommunication Services 3.0% | ||
Telia Co. AB | 743,468 | 3,116,868 |
Switzerland 14.4% | ||
Capital Goods 3.1% | ||
ABB Ltd. — Reg'd * | 143,025 | 3,347,569 |
Food, Beverage & Tobacco 2.4% | ||
Nestle S.A. — Reg'd | 32,726 | 2,511,777 |
Insurance 2.9% | ||
Zurich Insurance Group AG | 11,462 | 3,058,755 |
Materials 3.6% | ||
Syngenta AG — Reg'd | 8,564 | 3,782,209 |
Pharmaceuticals, Biotechnology & Life Sciences 2.4% | ||
Novartis AG — Reg'd | 33,826 | 2,511,835 |
15,212,145 | ||
Taiwan 2.7% | ||
Semiconductors & Semiconductor Equipment 2.7% | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 463,154 | 2,904,269 |
Security | Number of Shares | Value ($) |
United Kingdom 22.3% | ||
Banks 2.8% | ||
Lloyds Banking Group plc | 3,586,845 | 2,983,108 |
Energy 6.6% | ||
BP plc | 597,708 | 3,440,476 |
Royal Dutch Shell plc, A Shares (a) | 7,679 | 202,405 |
Royal Dutch Shell plc, A Shares (a) | 6,851 | 180,376 |
Royal Dutch Shell plc, B Shares | 115,180 | 3,166,230 |
6,989,487 | ||
Food & Staples Retailing 2.9% | ||
Tesco plc * | 1,330,391 | 3,096,304 |
Household & Personal Products 2.1% | ||
Unilever plc | 44,591 | 2,199,552 |
Pharmaceuticals, Biotechnology & Life Sciences 3.2% | ||
GlaxoSmithKline plc | 164,375 | 3,417,840 |
Retailing 2.5% | ||
Kingfisher plc | 641,633 | 2,625,300 |
Utilities 2.2% | ||
National Grid plc | 180,519 | 2,290,299 |
23,601,890 | ||
Total Common Stock | ||
(Cost $85,736,120) | 104,287,792 | |
Other Investment Company 0.8% of net assets | ||
United States 0.8% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.62% (b) | 869,962 | 869,962 |
Total Other Investment Company | ||
(Cost $869,962) | 869,962 |
At 03/31/17, the tax basis cost of the fund's investments was $89,758,647 and the unrealized appreciation and depreciation were $16,470,829 and ($1,071,722), respectively, with a net unrealized appreciation of $15,399,107.
* | 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 | $— | $104,287,792 | $— | $104,287,792 | |
Other Investment Company1 | 869,962 | — | — | 869,962 | |
Total | $869,962 | $104,287,792 | $— | $105,157,754 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $86,606,082) | $105,157,754 | |
Foreign currency, at value (cost $153,296) | 153,749 | |
Receivables: | ||
Investments sold | 217,809 | |
Dividends | 490,239 | |
Foreign tax reclaims | 327,137 | |
Fund shares sold | 13,207 | |
Prepaid expenses | + | 17,483 |
Total assets | 106,377,378 | |
Liabilities | ||
Payables: | ||
Investments bought | 397,216 | |
Fund shares redeemed | 148,965 | |
Investment adviser fees | 77,590 | |
Distribution and shareholder services fees | 1,528 | |
Accrued expenses | + | 97,788 |
Total liabilities | 723,087 | |
Net Assets | ||
Total assets | 106,377,378 | |
Total liabilities | – | 723,087 |
Net assets | $105,654,291 | |
Net Assets by Source | ||
Capital received from investors | 91,889,147 | |
Net investment income not yet distributed | 625,774 | |
Net realized capital losses | (5,392,973) | |
Net unrealized capital appreciation | 18,532,343 |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $7,250,440 | 1,196,441 | $6.06 | ||
Select Shares | $6,091,629 | 999,022 | $6.10 | ||
Institutional Shares | $92,312,222 | 15,089,731 | $6.12 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $452,632) | $5,480,588 | |
Expenses | ||
Investment adviser fees | 1,028,618 | |
Custodian fees | 63,819 | |
Professional fees | 59,834* | |
Registration fees | 51,158 | |
Transfer agent fees | 50,101 | |
Accounting and administration fees | 29,982 | |
Distribution and shareholder services fees (Investor Shares) | 16,373 | |
Independent trustees' fees | 14,009 | |
Shareholder reports | 6,597 | |
Interest expense | 732 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 6,613 | |
Select Shares | 7,409 | |
Other expenses | + | 16,640 |
Total expenses | 1,351,885 | |
Expense reduction by adviser | – | 86,143 |
Net expenses | – | 1,265,742 |
Net investment income | 4,214,846 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (1,370,232) | |
Net realized gains on foreign currency transactions | + | 55,581 |
Net realized losses | (1,314,651) | |
Net change in unrealized appreciation (depreciation) on investments | 10,800,596 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (9,392) |
Net change in unrealized appreciation (depreciation) | + | 10,791,204 |
Net realized and unrealized gains | 9,476,553 | |
Increase in net assets resulting from operations | $13,691,399 |
* | Includes professional fees of $8,945 associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2 (d) and 4 for additional information. |
Operations | ||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||
Net investment income | $4,214,846 | $2,647,333 | ||
Net realized losses | (1,314,651) | (1,230,047) | ||
Net change in unrealized appreciation (depreciation) | + | 10,791,204 | (8,523,533) | |
Increase (decrease) in net assets from operations | 13,691,399 | (7,106,247) | ||
Distributions to Shareholders | ||||
Distributions from net investment income | ||||
Investor Shares | (174,166) | (110,750) | ||
Select Shares | (168,191) | (96,876) | ||
Institutional Shares | + | (3,635,958) | (2,254,767) | |
Total distributions from net investment income | (3,978,315) | (2,462,393) | ||
Distributions from net realized gains | ||||
Investor Shares | — | (181,863) | ||
Select Shares | — | (148,581) | ||
Institutional Shares | + | — | (3,300,543) | |
Total distributions from net realized gains | — | (3,630,987) | ||
Total distributions | ($3,978,315) | ($6,093,380) |
Transactions in Fund Shares | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | VALUE | SHARES | VALUE | |||||
Shares Sold | ||||||||
Investor Shares | 754,099 | $4,346,911 | 543,636 | $3,390,344 | ||||
Select Shares | 894,507 | 5,229,138 | 890,456 | 5,274,509 | ||||
Institutional Shares | + | 7,135,778 | 41,577,906 | 8,502,777 | 50,178,920 | |||
Total shares sold | 8,784,384 | $51,153,955 | 9,936,869 | $58,843,773 | ||||
Shares Reinvested | ||||||||
Investor Shares | 26,886 | $151,100 | 49,697 | $276,317 | ||||
Select Shares | 24,300 | 137,291 | 42,104 | 234,938 | ||||
Institutional Shares | + | 325,293 | 1,844,411 | 849,088 | 4,754,894 | |||
Total shares reinvested | 376,479 | $2,132,802 | 940,889 | $5,266,149 | ||||
Shares Redeemed | ||||||||
Investor Shares | (505,190) | ($2,904,993) | (213,159) | ($1,280,378) | ||||
Select Shares | (707,653) | (4,070,851) | (604,700) | (3,413,755) | ||||
Institutional Shares | + | (11,874,216) | (70,894,657) | (3,996,629) | (24,139,801) | |||
Total shares redeemed | (13,087,059) | ($77,870,501) | (4,814,488) | ($28,833,934) | ||||
Net transactions in fund shares | (3,926,196) | ($24,583,744) | 6,063,270 | $35,275,988 | ||||
Shares Outstanding and Net Assets | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||
Beginning of period | 21,211,390 | $120,524,951 | 15,148,120 | $98,448,590 | ||||
Total increase or decrease | + | (3,926,196) | (14,870,660) | 6,063,270 | 22,076,361 | |||
End of period | 17,285,194 | $105,654,291 | 21,211,390 | $120,524,951 | ||||
Net investment income not yet distributed | $625,774 | $333,662 |
Investor Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $7.04 | $8.18 | $8.69 | $9.84 | $9.48 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.11 | 0.14 | 0.11 | 0.12 | |
Net realized and unrealized gains (losses) | 0.73 | (1.19) | (0.45) | (1.18) | 0.42 | |
Total from investment operations | 0.84 | (1.08) | (0.31) | (1.07) | 0.54 | |
Less distributions: | ||||||
Distributions from net investment income | (0.16) | (0.06) | (0.20) | (0.08) | (0.18) | |
Distributions from net realized gains | — | — | — | (0.00) 2 | — | |
Total distributions | (0.16) | (0.06) | (0.20) | (0.08) | (0.18) | |
Net asset value at end of period | $7.72 | $7.04 | $8.18 | $8.69 | $9.84 | |
Total return | 12.11% | (13.21%) | (3.46%) | (10.89%) | 5.79% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.59% | 1.59% | 1.71% 3 | 1.80% | 1.80% | |
Gross operating expenses | 1.61% | 1.61% | 1.77% | 1.86% | 1.89% | |
Net investment income (loss) | 1.51% | 1.48% | 1.56% | 1.25% | 1.33% | |
Portfolio turnover rate | 32% | 28% | 30% 4 | 69% | 59% | |
Net assets, end of period (x 1,000) | $2,884 | $3,299 | $5,426 | $7,499 | $11,716 | |
Select Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $7.04 | $8.18 | $8.70 | $9.85 | $9.49 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.14 | 0.13 | 0.17 | 0.13 | 0.12 | |
Net realized and unrealized gains (losses) | 0.72 | (1.19) | (0.46) | (1.17) | 0.45 | |
Total from investment operations | 0.86 | (1.06) | (0.29) | (1.04) | 0.57 | |
Less distributions: | ||||||
Distributions from net investment income | (0.18) | (0.08) | (0.23) | (0.11) | (0.21) | |
Distributions from net realized gains | — | — | — | (0.00) 2 | — | |
Total distributions | (0.18) | (0.08) | (0.23) | (0.11) | (0.21) | |
Net asset value at end of period | $7.72 | $7.04 | $8.18 | $8.70 | $9.85 | |
Total return | 12.46% | (12.88%) | (3.26%) | (10.57%) | 6.15% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.27% | 1.29% | 1.45% 3 | 1.52% | 1.52% | |
Gross operating expenses | 1.29% | 1.30% | 1.51% | 1.59% | 1.66% | |
Net investment income (loss) | 1.91% | 1.82% | 1.92% | 1.47% | 1.24% | |
Portfolio turnover rate | 32% | 28% | 30% 4 | 69% | 59% | |
Net assets, end of period (x 1,000) | $4,645 | $5,888 | $10,446 | $15,849 | $18,340 |
Institutional Shares | 4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $7.03 | $8.18 | $8.69 | $9.85 | $9.49 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.14 | 0.14 | 0.12 | 0.14 | 0.16 | |
Net realized and unrealized gains (losses) | 0.72 | (1.20) | (0.39) | (1.19) | 0.42 | |
Total from investment operations | 0.86 | (1.06) | (0.27) | (1.05) | 0.58 | |
Less distributions: | ||||||
Distributions from net investment income | (0.18) | (0.09) | (0.24) | (0.11) | (0.22) | |
Distributions from net realized gains | — | — | — | (0.00) 2 | — | |
Total distributions | (0.18) | (0.09) | (0.24) | (0.11) | (0.22) | |
Net asset value at end of period | $7.71 | $7.03 | $8.18 | $8.69 | $9.85 | |
Total return | 12.57% | (12.87%) | (3.03%) | (10.62%) | 6.21% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 1.20% | 1.20% | 1.29% 3 | 1.45% | 1.45% | |
Gross operating expenses | 1.22% | 1.21% | 1.31% | 1.52% | 1.49% | |
Net investment income (loss) | 1.92% | 1.87% | 1.42% | 1.55% | 1.70% | |
Portfolio turnover rate | 32% | 28% | 30% 4 | 69% | 59% | |
Net assets, end of period (x 1,000) | $336,896 | $406,462 | $559,347 | $121,795 | $141,536 | |
Holdings by Category | Cost ($) | Value ($) | |
97.1% | Common Stock | 323,106,340 | 334,341,233 |
2.0% | Preferred Stock | 5,377,025 | 7,046,360 |
99.1% | Total Investments | 328,483,365 | 341,387,593 |
0.9% | Other Assets and Liabilities, Net | 3,036,817 | |
100.0% | Net Assets | 344,424,410 |
Security | Number of Shares | Value ($) |
Common Stock 97.1% of net assets | ||
Brazil 5.0% | ||
Food, Beverage & Tobacco 0.9% | ||
Ambev S.A. ADR | 531,500 | 3,061,440 |
Software & Services 2.0% | ||
Cielo S.A. | 754,130 | 6,819,594 |
Transportation 2.1% | ||
CCR S.A. | 1,254,181 | 7,231,191 |
17,112,225 | ||
China 15.6% | ||
Banks 3.0% | ||
China Construction Bank Corp., H Shares | 12,779,000 | 10,296,137 |
Capital Goods 1.2% | ||
Beijing Enterprises Holdings Ltd. | 815,000 | 4,218,326 |
Consumer Durables & Apparel 1.6% | ||
Belle International Holdings Ltd. | 8,279,848 | 5,385,290 |
Food, Beverage & Tobacco 3.4% | ||
WH Group Ltd. | 13,413,000 | 11,566,298 |
Pharmaceuticals, Biotechnology & Life Sciences 0.6% | ||
CSPC Pharmaceutical Group Ltd. | 1,638,000 | 2,145,966 |
Telecommunication Services 3.0% | ||
China Mobile Ltd. | 951,500 | 10,464,123 |
Utilities 2.8% | ||
China Resources Power Holdings Co., Ltd. | 5,403,291 | 9,754,558 |
53,830,698 | ||
Hong Kong 1.5% | ||
Consumer Services 1.5% | ||
Sands China Ltd. | 1,143,200 | 5,299,406 |
India 15.6% | ||
Automobiles & Components 2.7% | ||
Bajaj Auto Ltd. | 218,715 | 9,450,340 |
Banks 3.0% | ||
Axis Bank Ltd. | 446,892 | 3,378,411 |
Housing Development Finance Corp., Ltd. | 294,889 | 6,822,373 |
10,200,784 | ||
Capital Goods 1.4% | ||
Larsen & Toubro Ltd. | 197,124 | 4,781,326 |
Security | Number of Shares | Value ($) |
Energy 5.3% | ||
Cairn India Ltd. | 2,287,112 | 10,773,376 |
Reliance Industries Ltd. | 363,744 | 7,399,644 |
18,173,020 | ||
Software & Services 3.2% | ||
HCL Technologies Ltd. | 511,340 | 6,887,973 |
Infosys Ltd. | 226,505 | 3,570,874 |
Infosys Ltd. ADR | 42,200 | 666,760 |
11,125,607 | ||
53,731,077 | ||
Indonesia 2.3% | ||
Banks 2.3% | ||
PT Bank Mandiri (Persero) Tbk | 3,413,500 | 2,997,856 |
PT Bank Rakyat Indonesia (Persero) Tbk | 5,196,800 | 5,060,220 |
8,058,076 | ||
Kazakhstan 1.0% | ||
Energy 1.0% | ||
KazMunaiGas Exploration Production JSC GDR * | 334,343 | 3,343,430 |
Malaysia 5.0% | ||
Banks 2.1% | ||
AMMB Holdings Berhad | 6,777,300 | 7,122,378 |
Consumer Services 1.7% | ||
Genting Malaysia Berhad | 4,679,500 | 5,761,924 |
Utilities 1.2% | ||
Tenaga Nasional Berhad | 1,392,700 | 4,316,046 |
17,200,348 | ||
Mexico 4.3% | ||
Banks 1.1% | ||
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B ADR | 399,073 | 3,603,629 |
Real Estate 3.2% | ||
Fibra Uno Administracion S.A. de C.V. | 6,515,800 | 11,164,623 |
14,768,252 | ||
Peru 1.5% | ||
Banks 1.5% | ||
Credicorp Ltd. | 30,519 | 4,983,753 |
Philippines 1.8% | ||
Telecommunication Services 1.8% | ||
PLDT, Inc. ADR | 196,673 | 6,325,004 |
Qatar 1.9% | ||
Banks 1.9% | ||
Qatar National Bank SAQ | 164,788 | 6,612,158 |
Security | Number of Shares | Value ($) |
Republic of Korea 13.6% | ||
Automobiles & Components 2.8% | ||
Hyundai Mobis Co., Ltd. | 44,917 | 9,662,413 |
Banks 2.4% | ||
Shinhan Financial Group Co., Ltd. | 196,786 | 8,199,494 |
Technology Hardware & Equipment 3.9% | ||
Samsung Electronics Co., Ltd. | 7,400 | 13,619,068 |
Telecommunication Services 3.4% | ||
SK Telecom Co., Ltd. | 51,809 | 11,706,256 |
Utilities 1.1% | ||
Korea Electric Power Corp. | 89,615 | 3,730,253 |
46,917,484 | ||
Russia 3.6% | ||
Energy 3.6% | ||
Gazprom PJSC ADR | 1,871,791 | 8,413,701 |
Lukoil PJSC ADR | 77,336 | 4,103,448 |
12,517,149 | ||
South Africa 5.1% | ||
Real Estate 1.2% | ||
Growthpoint Properties Ltd. | 2,072,866 | 3,995,738 |
Retailing 2.3% | ||
Woolworths Holdings Ltd. | 1,545,363 | 8,060,692 |
Telecommunication Services 1.6% | ||
MTN Group Ltd. | 593,727 | 5,396,192 |
17,452,622 | ||
Taiwan 13.5% | ||
Banks 2.6% | ||
Mega Financial Holding Co., Ltd. | 11,013,153 | 8,886,861 |
Semiconductors & Semiconductor Equipment 6.4% | ||
MediaTek, Inc. | 998,000 | 7,071,585 |
Taiwan Semiconductor Manufacturing Co., Ltd. | 2,428,719 | 15,229,605 |
22,301,190 | ||
Technology Hardware & Equipment 2.4% | ||
Asustek Computer, Inc. | 834,000 | 8,245,893 |
Telecommunication Services 2.1% | ||
Taiwan Mobile Co., Ltd. | 1,954,000 | 7,178,674 |
46,612,618 | ||
Thailand 1.8% | ||
Banks 1.8% | ||
Kasikornbank PCL NVDR | 1,092,900 | 6,014,154 |
Security | Number of Shares | Value ($) |
Turkey 2.1% | ||
Banks 1.2% | ||
Turkiye Garanti Bankasi A/S | 1,631,603 | 3,978,842 |
Telecommunication Services 0.9% | ||
Turk Telekomunikasyon A/S | 1,955,087 | 3,174,138 |
7,152,980 | ||
United Arab Emirates 1.9% | ||
Real Estate 1.9% | ||
Emaar Malls PJSC | 8,908,057 | 6,409,799 |
Total Common Stock | ||
(Cost $323,106,340) | 334,341,233 | |
Preferred Stock 2.0% of net assets | ||
Brazil 2.0% | ||
Materials 2.0% | ||
Suzano Papel e Celulose S.A. | 1,663,600 | 7,046,360 |
Total Preferred Stock | ||
(Cost $5,377,025) | 7,046,360 |
* | Non-income producing security. |
ADR — | American Depositary Receipt |
GDR — | Global Depositary Receipt |
NVDR — | Non-Voting 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 | $— | $214,948,185 | $— | $214,948,185 | |
Brazil 1 | 17,112,225 | — | — | 17,112,225 | |
India 1 | — | 42,605,470 | — | 42,605,470 | |
Software & Services | 666,760 | 10,458,847 | — | 11,125,607 | |
Kazakhstan 1 | 3,343,430 | — | — | 3,343,430 | |
Mexico 1 | 14,768,252 | — | — | 14,768,252 | |
Peru 1 | 4,983,753 | — | — | 4,983,753 | |
Philippines 1 | 6,325,004 | — | — | 6,325,004 | |
Qatar 1 | 6,612,158 | — | — | 6,612,158 | |
Russia 1 | 12,517,149 | — | — | 12,517,149 | |
Preferred Stock | |||||
Brazil 1 | 7,046,360 | — | — | 7,046,360 | |
Total | $73,375,091 | $268,012,502 | $— | $341,387,593 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $328,483,365) | $341,387,593 | |
Foreign currency, at value (cost $160,661) | 149,452 | |
Receivables: | ||
Investments sold | 6,748,777 | |
Dividends | 1,043,261 | |
Foreign tax reclaims | 36,686 | |
Fund shares sold | 17,860 | |
Prepaid expenses | + | 29,870 |
Total assets | 349,413,499 | |
Liabilities | ||
Payables: | ||
Investments bought | 2,458,075 | |
Due to custodian | 1,964,062 | |
Investment adviser fees | 288,652 | |
Foreign capital gains tax | 60,313 | |
Fund shares redeemed | 9,832 | |
Distribution and shareholder services fees | 606 | |
Accrued expenses | + | 207,549 |
Total liabilities | 4,989,089 | |
Net Assets | ||
Total assets | 349,413,499 | |
Total liabilities | – | 4,989,089 |
Net assets | $344,424,410 | |
Net Assets by Source | ||
Capital received from investors | 453,968,055 | |
Distributions in excess of net investment income | (1,208,817) | |
Net realized capital losses | (121,203,611) | |
Net unrealized capital appreciation | 12,868,783 |
Net Asset Value (NAV) by Shares Class | |||||
Share Class | Net Assets | ÷ | Shares Outstanding | = | NAV |
Investor Shares | $2,883,764 | 373,403 | $7.72 | ||
Select Shares | $4,645,036 | 601,568 | $7.72 | ||
Institutional Shares | $336,895,610 | 43,702,773 | $7.71 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $1,336,383) | $12,149,326 | |
Expenses | ||
Investment adviser fees | 3,892,331 | |
Custodian fees | 563,772 | |
Accounting and administration fees | 61,831 | |
Professional fees | 54,470 | |
Registration fees | 53,954 | |
Transfer agent fees | 44,530 | |
Independent trustees' fees | 19,835 | |
Shareholder reports | 9,326 | |
Distribution and shareholder services fees (Investor Shares) | 7,791 | |
Interest expense | 3,351 | |
Sub-accounting and sub-transfer agent fees: | ||
Investor Shares | 4,373 | |
Select Shares | 3,374 | |
Other expenses | + | 45,030 |
Total expenses | 4,763,968 | |
Expense reduction by adviser | – | 73,789 |
Net expenses | – | 4,690,179 |
Net investment income | 7,459,147 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (27,799,822) | |
Net realized losses on foreign currency transactions | + | (140,949) |
Net realized losses | (27,940,771) | |
Net change in unrealized appreciation (depreciation) on investments (net of change in foreign capital gains tax of ($215,481)) | 62,251,934 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (34,056) |
Net change in unrealized appreciation (depreciation) | + | 62,217,878 |
Net realized and unrealized gains | 34,277,107 | |
Increase in net assets resulting from operations | $41,736,254 |
Operations | ||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||
Net investment income | $7,459,147 | $8,767,830 | ||
Net realized losses | (27,940,771) | (65,327,921) | ||
Net change in unrealized appreciation (depreciation) | + | 62,217,878 | (14,792,601) | |
Increase (decrease) in net assets from operations | 41,736,254 | (71,352,692) | ||
Distributions to Shareholders | ||||
Distributions from net investment income | ||||
Investor Shares | (66,046) | (29,408) | ||
Select Shares | (112,696) | (74,419) | ||
Institutional Shares | + | (9,365,136) | (5,425,809) | |
Total distributions from net investment income | ($9,543,878) | ($5,529,636) |
Transactions in Fund Shares | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | VALUE | SHARES | VALUE | |||||
Shares Sold | ||||||||
Investor Shares | 46,601 | $338,038 | 65,801 | $483,685 | ||||
Select Shares | 36,751 | 267,197 | 107,904 | 822,947 | ||||
Institutional Shares | + | 6,004,591 | 43,359,379 | 8,572,939 | 59,514,635 | |||
Total shares sold | 6,087,943 | $43,964,614 | 8,746,644 | $60,821,267 | ||||
Shares Reinvested | ||||||||
Investor Shares | 9,047 | $62,870 | 4,485 | $29,155 | ||||
Select Shares | 15,230 | 105,697 | 11,320 | 73,468 | ||||
Institutional Shares | + | 1,291,515 | 8,950,205 | 811,531 | 5,258,720 | |||
Total shares reinvested | 1,315,792 | $9,118,772 | 827,336 | $5,361,343 | ||||
Shares Redeemed | ||||||||
Investor Shares | (150,769) | ($1,086,698) | (265,059) | ($1,924,472) | ||||
Select Shares | (286,761) | (2,091,380) | (559,375) | (4,050,008) | ||||
Institutional Shares | + | (21,407,200) | (153,322,505) | (19,963,395) | (142,895,727) | |||
Total shares redeemed | (21,844,730) | ($156,500,583) | (20,787,829) | ($148,870,207) | ||||
Net transactions in fund shares | (14,440,995) | ($103,417,197) | (11,213,849) | ($82,687,597) | ||||
Shares Outstanding and Net Assets | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||
Beginning of period | 59,118,739 | $415,649,231 | 70,332,588 | $575,219,156 | ||||
Total decrease | + | (14,440,995) | (71,224,821) | (11,213,849) | (159,569,925) | |||
End of period | 44,677,744 | $344,424,410 | 59,118,739 | $415,649,231 | ||||
Distributions in excess of net investment income/Net investment income not yet distributed | ($1,208,817) | $846,178 |
4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $9.93 | $9.45 | $10.89 | $11.01 | $11.61 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.09 1 | 0.11 1 | 0.15 1 | 0.16 1 | 0.15 | |
Net realized and unrealized gains (losses) | (0.64) | 0.56 | (1.14) | (0.21) | (0.53) | |
Total from investment operations | (0.55) | 0.67 | (0.99) | (0.05) | (0.38) | |
Less distributions: | ||||||
Distributions from net investment income | (0.00) 2 | — | — | — | (0.15) | |
Distributions from net realized gains | (0.06) | (0.19) | (0.45) | (0.07) | (0.07) | |
Total distributions | (0.06) | (0.19) | (0.45) | (0.07) | (0.22) | |
Net asset value at end of period | $9.32 | $9.93 | $9.45 | $10.89 | $11.01 | |
Total return | (5.48%) | 7.27% | (9.37%) | (0.49%) | (3.41%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.75% | 0.75% | 0.74% | 0.69% | 0.69% | |
Gross operating expenses | 0.79% | 0.81% | 0.76% | 0.69% | 0.69% | |
Net investment income (loss) | 0.87% | 1.21% | 1.39% | 1.48% | 1.27% | |
Portfolio turnover rate | 98% | 31% | 50% | 52% | 44% | |
Net assets, end of period (x 1,000) | $95,565 | $119,938 | $187,388 | $652,647 | $741,235 | |
Holdings by Category | Cost ($) | Value ($) | |
88.5% | Government Bonds | 85,987,029 | 84,575,660 |
14.5% | Supranational | 15,333,719 | 13,831,015 |
1.5% | Other Investment Company | 1,453,618 | 1,453,618 |
104.5% | Total Investments | 102,774,366 | 99,860,293 |
(4.5%) | Other Assets and Liabilities, Net | (4,294,869) | |
100.0% | Net Assets | 95,565,424 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 88.5% of net assets | ||
Australia 6.1% | ||
Australia Government Bond | ||
5.75%, 05/15/21 (AUD) | 1,000,000 | 874,089 |
3.25%, 04/21/25 (AUD) | 1,650,000 | 1,322,134 |
4.75%, 04/21/27 (AUD) | 4,000,000 | 3,605,804 |
5,802,027 | ||
Austria 4.5% | ||
Austria Government Bond | ||
6.25%, 07/15/27 (EUR) | 2,563,000 | 4,312,086 |
Canada 3.1% | ||
Canada Government International Bond | ||
3.50%, 01/13/20 (EUR) | 2,540,000 | 2,997,832 |
France 8.3% | ||
France Government Bond OAT | ||
0.00%, 05/25/20 (EUR) (a) | 2,365,000 | 2,546,236 |
0.50%, 05/25/25 (EUR) | 1,000,000 | 1,050,468 |
5.75%, 10/25/32 (EUR) | 775,000 | 1,329,528 |
1.25%, 05/25/36 (EUR) | 850,000 | 845,135 |
3.25%, 05/25/45 (EUR) | 1,560,000 | 2,123,313 |
7,894,680 | ||
Germany 2.0% | ||
Bundesobligation | ||
0.00%, 10/08/21 (EUR) (a) | 200,000 | 218,029 |
Bundesrepublik Deutschland | ||
0.00%, 08/15/26 (EUR) (a) | 1,600,000 | 1,666,771 |
1,884,800 | ||
Japan 20.2% | ||
Japan Government Ten Year Bond | ||
0.60%, 03/20/24 (JPY) | 136,000,000 | 1,277,636 |
0.10%, 06/20/26 (JPY) | 312,000,000 | 2,818,792 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Japan Government Thirty Year Bond | ||
2.40%, 12/20/34 (JPY) | 275,000,000 | 3,261,414 |
1.70%, 03/20/44 (JPY) | 306,400,000 | 3,361,422 |
0.30%, 06/20/46 (JPY) | 180,000,000 | 1,400,681 |
Japan Government Twenty Year Bond | ||
1.60%, 06/20/30 (JPY) | 219,000,000 | 2,315,385 |
0.20%, 06/20/36 (JPY) | 590,000,000 | 4,913,222 |
19,348,552 | ||
Malaysia 3.3% | ||
Malaysia Government Bond | ||
4.05%, 09/30/21 (MYR) | 4,200,000 | 957,663 |
4.18%, 07/15/24 (MYR) | 8,980,000 | 2,037,363 |
4.25%, 05/31/35 (MYR) | 670,000 | 144,267 |
3,139,293 | ||
Mexico 5.1% | ||
Mexico Government Bond | ||
6.50%, 06/10/21 (MXN) | 33,000,000 | 1,742,250 |
7.50%, 06/03/27 (MXN) | 20,500,000 | 1,126,593 |
7.75%, 11/23/34 (MXN) | 36,280,000 | 2,007,601 |
4,876,444 | ||
Netherlands 4.9% | ||
Netherlands Government Bond | ||
5.50%, 01/15/28 (EUR) | 2,908,490 | 4,716,084 |
New Zealand 4.8% | ||
New Zealand Government Bond | ||
5.00%, 03/15/19 (NZD) | 200,000 | 147,800 |
5.50%, 04/15/23 (NZD) | 1,605,000 | 1,293,920 |
4.50%, 04/15/27 (NZD) | 4,059,000 | 3,163,139 |
4,604,859 | ||
Poland 5.0% | ||
Poland Government Bond | ||
1.50%, 04/25/20 (PLN) | 3,120,000 | 768,258 |
2.50%, 07/25/26 (PLN) | 7,650,000 | 1,797,577 |
5.75%, 04/25/29 (PLN) | 7,100,000 | 2,184,051 |
4,749,886 | ||
Spain 12.8% | ||
Spain Government Bond | ||
1.40%, 01/31/20 (EUR) | 4,400,000 | 4,892,772 |
1.60%, 04/30/25 (EUR) | 4,700,000 | 5,137,649 |
4.20%, 01/31/37 (EUR) | 1,613,000 | 2,181,678 |
12,212,099 | ||
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Sweden 4.9% | ||
Sweden Government Bond | ||
3.75%, 08/12/17 (SEK) | 23,485,000 | 2,662,786 |
5.00%, 12/01/20 (SEK) | 15,100,000 | 2,014,524 |
4,677,310 | ||
United Kingdom 3.5% | ||
United Kingdom Gilt | ||
1.75%, 07/22/19 (GBP) | 700,000 | 910,145 |
3.75%, 09/07/21 (GBP) | 985,000 | 1,419,904 |
2.75%, 09/07/24 (GBP) | 720,000 | 1,029,659 |
3,359,708 | ||
Total Government Bonds | ||
(Cost $85,987,029) | 84,575,660 | |
Supranational* 14.5% of net assets | ||
Asian Development Bank | ||
2.35%, 06/21/27 (JPY) | 440,000,000 | 4,923,739 |
European Investment Bank | ||
1.40%, 06/20/17 (JPY) | 490,000,000 | 4,412,531 |
Nordic Investment Bank | ||
1.70%, 04/27/17 (JPY) | 500,000,000 | 4,494,745 |
Total Supranational | ||
(Cost $15,333,719) | 13,831,015 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.5% of net assets | ||
United States 1.5% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.62% (b) | 1,453,618 | 1,453,618 |
Total Other Investment Company | ||
(Cost $1,453,618) | 1,453,618 |
At 03/31/17, the tax basis cost of the fund's investments was $104,679,816 and the unrealized appreciation and depreciation were $1,665,135 and ($6,484,658), respectively, with a net unrealized depreciation of ($4,819,523).
* | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. |
(a) | Zero Coupon Bond. |
(b) | The rate shown is the 7-day yield. |
AUD — | Australian dollar |
EUR — | euro currency |
GBP — | Great British pound |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PLN — | Polish zloty |
SEK — | Swedish krona |
USD — | U.S. dollar |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/27/2017 | State Street Bank & Trust Co. | GBP | 4,763,500 | USD | 5,964,169 | 7,228 | ||||||
04/27/2017 | State Street Bank & Trust Co. | GBP | 185,500 | USD | 230,809 | 1,729 | ||||||
04/27/2017 | State Street Bank & Trust Co. | GBP | 289,000 | USD | 366,147 | (3,864) | ||||||
04/27/2017 | State Street Bank & Trust Co. | GBP | 4,173,500 | USD | 5,207,071 | 24,717 | ||||||
04/27/2017 | State Street Bank & Trust Co. | NZD | 66,000 | USD | 47,751 | (1,513) | ||||||
04/27/2017 | State Street Bank & Trust Co. | NZD | 399,500 | USD | 286,965 | (7,082) | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 5,807,721 | AUD | 7,609,000 | (3,150) | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 238,771 | GBP | 191,000 | (662) | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 236,679 | GBP | 188,500 | 380 | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 378,522 | GBP | 300,500 | 1,823 | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 55,331 | NZD | 77,000 | 1,386 | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 4,986,611 | NZD | 6,959,000 | 111,243 | ||||||
Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | 132,235 |
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 | $— | $84,575,660 | $— | $84,575,660 | |
Supranational | — | 13,831,015 | — | 13,831,015 | |
Other Investment Company1 | 1,453,618 | — | — | 1,453,618 | |
Total | $1,453,618 | $98,406,675 | $— | $99,860,293 | |
Other Financial Instruments | |||||
Forward Foreign Currency Exchange Contracts2 | $— | $148,506 | $— | $148,506 | |
Liabilities Valuation Input | |||||
Other Financial Instruments | |||||
Forward Foreign Currency Exchange Contracts2 | $— | ($16,271) | $— | ($16,271) |
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 $102,774,366) | $99,860,293 | |
Foreign currency, at value (cost $61,616) | 61,628 | |
Receivables: | ||
Interest | 1,011,921 | |
Fund shares sold | 11,268 | |
Dividends | 613 | |
Unrealized appreciation on forward foreign currency exchange contracts | 148,506 | |
Prepaid expenses | + | 11,115 |
Total assets | 101,105,344 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 5,349,852 | |
Investment adviser fees | 57,539 | |
Unrealized depreciation on forward foreign currency exchange contracts | 16,271 | |
Accrued expenses | + | 116,258 |
Total liabilities | 5,539,920 | |
Net Assets | ||
Total assets | 101,105,344 | |
Total liabilities | – | 5,539,920 |
Net assets | $95,565,424 | |
Net Assets by Source | ||
Capital received from investors | 103,579,418 | |
Net investment loss | (4,835,789) | |
Net realized capital losses | (404,934) | |
Net unrealized capital depreciation | (2,773,271) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$95,565,424 | 10,248,493 | $9.32 | ||
Investment Income | ||
Dividends | $5,777 | |
Interest | + | 2,101,270 |
Total investment income | 2,107,047 | |
Expenses | ||
Investment adviser fees | 781,119 | |
Professional fees | 60,745 | |
Custodian fees | 56,926 | |
Transfer agent fees | 55,473 | |
Accounting and administration fees | 21,901 | |
Registration fees | 21,350 | |
Independent trustees' fees | 14,048 | |
Shareholder reports | 11,527 | |
Interest expense | 1,520 | |
Other expenses | + | 5,682 |
Total expenses | 1,030,291 | |
Expense reduction by adviser | – | 52,325 |
Net expenses | – | 977,966 |
Net investment income | 1,129,081 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments | (4,197,819) | |
Net realized losses on foreign currency transactions | + | (615,193) |
Net realized losses | (4,813,012) | |
Net change in unrealized appreciation (depreciation) on investments | (4,088,284) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 162,819 |
Net change in unrealized appreciation (depreciation) | + | (3,925,465) |
Net realized and unrealized losses | (8,738,477) | |
Decrease in net assets resulting from operations | ($7,609,396) |
Operations | ||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||
Net investment income | $1,129,081 | $1,753,040 | ||
Net realized losses | (4,813,012) | (11,732,258) | ||
Net change in unrealized appreciation (depreciation) | + | (3,925,465) | 17,935,563 | |
Increase (decrease) in net assets from operations | (7,609,396) | 7,956,345 | ||
Distributions to Shareholders | ||||
Distributions from net investment income | (14,676) | — | ||
Distributions from net realized gains | + | (761,942) | (2,596,705) | |
Total distributions | ($776,618) | ($2,596,705) |
Transactions in Fund Shares | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | VALUE | SHARES | VALUE | |||||
Shares sold | 8,151,717 | $81,286,242 | 2,097,487 | $19,711,390 | ||||
Shares reinvested | 56,636 | 506,323 | 203,273 | 1,843,682 | ||||
Shares redeemed | + | (10,038,045) | (97,779,218) | (10,046,401) | (94,364,938) | |||
Net transactions in fund shares | (1,829,692) | ($15,986,653) | (7,745,641) | ($72,809,866) | ||||
Shares Outstanding and Net Assets | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||
Beginning of period | 12,078,185 | $119,938,091 | 19,823,826 | $187,388,317 | ||||
Total decrease | + | (1,829,692) | (24,372,667) | (7,745,641) | (67,450,226) | |||
End of period | 10,248,493 | $95,565,424 | 12,078,185 | $119,938,091 | ||||
Net investment loss | ($4,835,789) | ($3,194,113) |
4/1/16– 3/31/17 | 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 | $9.16 | $8.71 | $9.30 | $9.61 | $10.00 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss) | 0.21 2 | 0.19 2 | 0.17 2 | 0.13 2 | 0.11 | |
Net realized and unrealized gains (losses) | (0.36) | 0.26 | (0.76) | (0.38) | (0.40) | |
Total from investment operations | (0.15) | 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 | $9.01 | $9.16 | $8.71 | $9.30 | $9.61 | |
Total return | (1.64%) | 5.17% | (6.34%) | (2.60%) | (2.95%) 3 | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.85% | 0.86% 4 | 0.85% | 0.85% | 0.22% 5,6 | |
Gross operating expenses | 2.32% | 2.24% | 1.76% | 1.74% | 1.28% 5 | |
Net investment income (loss) | 2.29% | 2.22% | 1.80% | 1.40% | 1.56% 5 | |
Portfolio turnover rate | 63% | 42% | 62% | 42% | 73% 3 | |
Net assets, end of period (x 1,000) | $7,911 | $9,279 | $13,394 | $18,575 | $29,074 | |
Holdings by Category | Cost ($) | Value ($) | |
69.7% | Government Bonds | 5,709,867 | 5,512,619 |
29.3% | U.S. Government Securities | 2,316,524 | 2,318,518 |
1.0% | Other Investment Company | 76,426 | 76,426 |
100.0% | Total Investments | 8,102,817 | 7,907,563 |
0.0% | Other Assets and Liabilities, Net | 2,967 | |
100.0% | Net Assets | 7,910,530 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Government Bonds 69.7% of net assets | ||
Australia 3.6% | ||
Australia Government Bond | ||
5.75%, 05/15/21 (AUD) | 95,000 | 83,038 |
3.25%, 04/21/25 (AUD) | 150,000 | 120,194 |
4.75%, 04/21/27 (AUD) | 90,000 | 81,131 |
284,363 | ||
Brazil 3.0% | ||
Brazil Notas do Tesouro Nacional | ||
10.00%, 01/01/23 (BRL) | 160,000 | 51,356 |
10.00%, 01/01/25 (BRL) | 404,000 | 129,266 |
10.00%, 01/01/27 (BRL) | 166,000 | 53,009 |
233,631 | ||
Chile 1.1% | ||
Bonos de la Tesoreria de la Republica en pesos | ||
4.50%, 02/28/21 (CLP) | 55,000,000 | 86,362 |
Colombia 1.6% | ||
Colombian TES | ||
5.00%, 11/21/18 (COP) | 151,000,000 | 51,880 |
10.00%, 07/24/24 (COP) | 3,000,000 | 1,254 |
6.00%, 04/28/28 (COP) | 230,000,000 | 75,638 |
128,772 | ||
France 5.0% | ||
France Government Bond OAT | ||
0.00%, 05/25/20 (EUR) (a) | 117,100 | 126,074 |
3.00%, 04/25/22 (EUR) | 13,100 | 16,031 |
0.50%, 05/25/25 (EUR) | 192,000 | 201,690 |
4.75%, 04/25/35 (EUR) | 31,400 | 50,397 |
394,192 | ||
Hungary 0.8% | ||
Hungary Government Bond | ||
6.50%, 06/24/19 (HUF) | 16,150,000 | 63,488 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Indonesia 0.8% | ||
Indonesia Treasury Bond | ||
8.38%, 09/15/26 (IDR) | 260,000,000 | 21,238 |
8.38%, 03/15/34 (IDR) | 540,000,000 | 43,037 |
64,275 | ||
Japan 16.1% | ||
Japan Government Five Year Bond | ||
0.10%, 06/20/21 (JPY) | 15,500,000 | 140,676 |
Japan Government Ten Year Bond | ||
1.40%, 03/20/18 (JPY) | 11,450,000 | 104,508 |
0.80%, 09/20/20 (JPY) | 22,900,000 | 212,554 |
0.60%, 03/20/24 (JPY) | 27,000,000 | 253,648 |
0.10%, 06/20/26 (JPY) | 11,650,000 | 105,253 |
Japan Government Thirty Year Bond | ||
1.70%, 03/20/44 (JPY) | 22,200,000 | 243,550 |
Japan Government Twenty Year Bond | ||
0.20%, 06/20/36 (JPY) | 25,900,000 | 215,682 |
1,275,871 | ||
Malaysia 6.5% | ||
Malaysia Government Bond | ||
3.31%, 10/31/17 (MYR) | 410,000 | 92,664 |
3.76%, 03/15/19 (MYR) | 220,000 | 49,961 |
3.62%, 11/30/21 (MYR) | 130,000 | 29,068 |
3.42%, 08/15/22 (MYR) | 120,000 | 26,451 |
3.80%, 09/30/22 (MYR) | 100,000 | 22,421 |
3.80%, 08/17/23 (MYR) | 210,000 | 46,834 |
4.18%, 07/15/24 (MYR) | 432,000 | 98,011 |
3.96%, 09/15/25 (MYR) | 682,000 | 151,559 |
516,969 | ||
Mexico 7.4% | ||
Mexico Government Bond | ||
4.75%, 06/14/18 (MXN) | 1,000,000 | 52,347 |
6.50%, 06/10/21 (MXN) | 3,484,000 | 183,940 |
8.00%, 12/07/23 (MXN) | 2,420,000 | 136,376 |
7.50%, 06/03/27 (MXN) | 1,370,000 | 75,289 |
10.00%, 11/20/36 (MXN) | 1,975,000 | 133,427 |
581,379 | ||
New Zealand 3.1% | ||
New Zealand Government Bond | ||
5.50%, 04/15/23 (NZD) | 243,000 | 195,902 |
4.50%, 04/15/27 (NZD) | 66,000 | 51,433 |
247,335 | ||
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
Peru 1.2% | ||
Peru Government Bond | ||
6.95%, 08/12/31 (PEN) | 95,000 | 31,436 |
6.90%, 08/12/37 (PEN) | 160,000 | 52,756 |
6.85%, 02/12/42 (PEN) | 20,000 | 6,482 |
90,674 | ||
Poland 6.5% | ||
Poland Government Bond | ||
2.50%, 07/25/18 (PLN) | 95,000 | 24,233 |
1.50%, 04/25/20 (PLN) | 400,000 | 98,495 |
5.25%, 10/25/20 (PLN) | 170,000 | 46,914 |
2.00%, 04/25/21 (PLN) | 150,000 | 36,924 |
5.75%, 09/23/22 (PLN) | 240,000 | 69,040 |
2.50%, 07/25/26 (PLN) | 148,000 | 34,777 |
5.75%, 04/25/29 (PLN) | 670,000 | 206,101 |
516,484 | ||
Russia 1.7% | ||
Russian Federal Bond — OFZ | ||
7.50%, 08/18/21 (RUB) | 500,000 | 8,786 |
7.00%, 08/16/23 (RUB) | 2,000,000 | 34,080 |
8.15%, 02/03/27 (RUB) | 4,900,000 | 89,616 |
132,482 | ||
South Africa 1.9% | ||
South Africa Government Bond | ||
7.75%, 02/28/23 (ZAR) | 400,000 | 29,076 |
10.50%, 12/21/26 (ZAR) | 500,000 | 41,245 |
8.25%, 03/31/32 (ZAR) | 530,000 | 35,880 |
6.25%, 03/31/36 (ZAR) | 800,000 | 42,486 |
148,687 | ||
Spain 5.6% | ||
Spain Government Bond | ||
5.85%, 01/31/22 (EUR) | 137,000 | 184,349 |
1.60%, 04/30/25 (EUR) | 142,000 | 155,223 |
4.20%, 01/31/37 (EUR) | 77,000 | 104,147 |
443,719 | ||
Turkey 3.8% | ||
Turkey Government Bond | ||
6.30%, 02/14/18 (TRY) | 427,000 | 113,463 |
8.70%, 07/11/18 (TRY) | 365,000 | 97,792 |
10.50%, 01/15/20 (TRY) | 125,000 | 34,169 |
10.70%, 02/17/21 (TRY) | 110,000 | 30,024 |
9.20%, 09/22/21 (TRY) | 110,000 | 28,488 |
303,936 | ||
Total Government Bonds | ||
(Cost $5,709,867) | 5,512,619 | |
U.S. Government Securities 29.3% of net assets | ||
United States 29.3% | ||
U.S. Treasury Bond | ||
3.38%, 05/15/44 (USD) | 330,000 | 352,243 |
Security Rate, Maturity Date | Face Amount (local currency) | Value ($) |
U.S. Treasury Notes | ||
3.63%, 08/15/19 (USD) | 230,000 | 242,259 |
2.13%, 08/31/20 (USD) | 243,000 | 246,863 |
3.63%, 02/15/21 (USD) | 494,300 | 529,297 |
2.13%, 08/15/21 (USD) | 275,000 | 278,287 |
2.50%, 08/15/23 (USD) | 119,100 | 121,531 |
2.50%, 05/15/24 (USD) | 413,600 | 421,088 |
1.63%, 02/15/26 (USD) | 135,000 | 126,950 |
Total U.S. Government Securities | ||
(Cost $2,316,524) | 2,318,518 | |
Security | Number of Shares | Value ($) |
Other Investment Company 1.0% of net assets | ||
United States 1.0% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.62% (b) | 76,426 | 76,426 |
Total Other Investment Company | ||
(Cost $76,426) | 76,426 |
(a) | Zero Coupon Bond. |
(b) | The rate shown is the 7-day yield. |
AUD — | Australian dollar |
BRL — | Brazilian real |
CLP — | Chilean peso |
COP — | Colombian peso |
EUR — | euro currency |
GBP — | Great British pound |
HUF — | Hungarian forint |
IDR — | Indonesian rupiah |
JPY — | Japanese yen |
MXN — | Mexican peso |
MYR — | Malaysian ringgit |
NZD — | New Zealand dollar |
PEN — | Peruvian nuevo sol |
PLN — | Polish zloty |
RUB — | Russian ruble |
SEK — | Swedish krona |
TRY — | Turkish lira |
USD — | U.S. dollar |
ZAR — | South African rand |
Expiration Date | Counterparty | Currency to be Received | Amount of Currency to be Received | Currency to be Delivered | Amount of Currency to be Delivered | Unrealized Appreciation (Depreciation) ($) | ||||||
Forward Foreign Currency Exchange Contracts | ||||||||||||
04/27/2017 | Barclays Capital, Inc. | CLP | 27,695,500 | USD | 41,979 | (57) | ||||||
04/27/2017 | Barclays Capital, Inc. | USD | 43,127 | CLP | 27,695,500 | 1,205 | ||||||
04/27/2017 | State Street Bank & Trust Co. | EUR | 484,500 | USD | 522,041 | (4,644) | ||||||
04/27/2017 | State Street Bank & Trust Co. | EUR | 127,000 | USD | 136,074 | (451) | ||||||
04/27/2017 | State Street Bank & Trust Co. | GBP | 533,000 | USD | 665,398 | 2,757 | ||||||
04/27/2017 | State Street Bank & Trust Co. | SEK | 3,222,500 | USD | 365,886 | (5,873) | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 284,318 | AUD | 372,500 | (154) | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 32,085 | EUR | 30,000 | 48 | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 253,136 | NZD | 353,000 | 5,830 | ||||||
04/27/2017 | State Street Bank & Trust Co. | USD | 2,456 | NZD | 3,500 | 4 | ||||||
Net Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | (1,335) |
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 | $— | $5,512,619 | $— | $5,512,619 | |
U.S. Government Securities1 | — | 2,318,518 | — | 2,318,518 | |
Other Investment Company1 | 76,426 | — | — | 76,426 | |
Total | $76,426 | $7,831,137 | $— | $7,907,563 | |
Other Financial Instruments | |||||
Forward Foreign Currency Exchange Contracts2 | $— | $9,844 | $— | $9,844 | |
Liabilities Valuation Input | |||||
Other Financial Instruments | |||||
Forward Foreign Currency Exchange Contracts2 | $— | ($11,179) | $— | ($11,179) |
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 $8,102,817) | $7,907,563 | |
Foreign currency, at value (cost $4,628) | 4,569 | |
Receivables: | ||
Investments sold | 8,887 | |
Interest | 82,407 | |
Due from investment adviser | 211 | |
Dividends | 43 | |
Unrealized appreciation on forward foreign currency exchange contracts | 9,844 | |
Prepaid expenses | + | 6,133 |
Total assets | 8,019,657 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 9,019 | |
Foreign capital gains tax | 2,119 | |
Unrealized depreciation on forward foreign currency exchange contracts | 11,179 | |
Accrued expenses and other liabilities | + | 86,810 |
Total liabilities | 109,127 | |
Net Assets | ||
Total assets | 8,019,657 | |
Total liabilities | – | 109,127 |
Net assets | $7,910,530 | |
Net Assets by Source | ||
Capital received from investors | 8,435,925 | |
Net investment loss | (301,749) | |
Net realized capital losses | (26,231) | |
Net unrealized capital depreciation | (197,415) |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$7,910,530 | 877,822 | $9.01 | ||
Investment Income | ||
Dividends | $325 | |
Interest (net of foreign withholding taxes of $2,894) | + | 275,703 |
Total investment income | 276,028 | |
Expenses | ||
Investment adviser fees | 59,746 | |
Professional fees | 56,514 | |
Accounting and administration fees | 23,105 | |
Registration fees | 18,908 | |
Independent trustees' fees | 11,416 | |
Custodian fees | 11,031 | |
Sub-accounting and sub-transfer agent fees | 8,493 | |
Shareholder reports | 8,143 | |
Transfer agent fees | 3,014 | |
Interest expense | 33 | |
Other expenses | + | 3,819 |
Total expenses | 204,222 | |
Expense reduction by adviser | – | 129,308 |
Net expenses | – | 74,914 |
Net investment income | 201,114 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on investments (net of foreign capital gain tax paid of $1,422) | (190,033) | |
Net realized losses on foreign currency transactions | + | (20,950) |
Net realized losses | (210,983) | |
Net change in unrealized appreciation (depreciation) on investments (net of change in foreign capital gains tax of $1,384) | (49,694) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (88,899) |
Net change in unrealized appreciation (depreciation) | + | (138,593) |
Net realized and unrealized losses | (349,576) | |
Decrease in net assets resulting from operations | ($148,462) |
Operations | ||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||
Net investment income | $201,114 | $258,895 | ||
Net realized losses | (210,983) | (1,140,876) | ||
Net change in unrealized appreciation (depreciation) | + | (138,593) | 1,323,649 | |
Increase (decrease) in net assets from operations | (148,462) | 441,668 |
Transactions in Fund Shares | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | VALUE | SHARES | VALUE | |||||
Shares sold | 11,962 | $111,660 | 10,458 | $92,078 | ||||
Shares redeemed | + | (147,322) | (1,331,597) | (535,829) | (4,648,880) | |||
Net transactions in fund shares | (135,360) | ($1,219,937) | (525,371) | ($4,556,802) | ||||
Shares Outstanding and Net Assets | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||
Beginning of period | 1,013,182 | $9,278,929 | 1,538,553 | $13,394,063 | ||||
Total decrease | + | (135,360) | (1,368,399) | (525,371) | (4,115,134) | |||
End of period | 877,822 | $7,910,530 | 1,013,182 | $9,278,929 | ||||
Net investment loss | ($301,749) | ($700,150) |
LAUDUS TRUST (ORGANIZED APRIL 1, 1988) | |
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 |
2. Significant Accounting Policies:
4. Affiliates and Affiliated Transactions:
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, 2018 | $160,233 | $54,879 | $78,310 | $160,921 | |||
March 31, 2019 | 77,198 | 73,686 | 52,325 | 129,308 | |||
Total | $237,431 | $128,565 | $130,635 | $290,229 |
Underlying Funds | ||
Laudus Mondrian International Equity Fund | Laudus Mondrian Emerging Markets Fund | |
Schwab Target 2010 Fund | 0.3% | —% |
Schwab Target 2015 Fund | 0.4% | —% |
Schwab Target 2020 Fund | 4.2% | 0.4% |
Schwab Target 2025 Fund | 3.6% | 1.1% |
Schwab Target 2030 Fund | 6.3% | 3.5% |
Schwab Target 2035 Fund | 2.4% | 2.2% |
Schwab Target 2040 Fund | 3.1% | 6.7% |
Schwab Target 2045 Fund | 0.3% | 0.9% |
Schwab Target 2050 Fund | 0.2% | 0.8% |
Schwab Target 2055 Fund | 0.1% | 0.5% |
Schwab Target 2060 Fund | 0.0%* | 0.0%* |
* | Less than 0.05% |
5. Distribution and Shareholder Services:
6. Board of Trustees:
7. Borrowing from Banks:
8. Purchases and Sales/Maturities of Investment Securities:
Purchases of Securities | Sales/Maturities of Securities | |
Laudus Mondrian International Equity Fund | $44,865,175 | $69,401,013 |
Laudus Mondrian Emerging Markets Fund | 122,370,956 | 224,592,717 |
Laudus Mondrian International Government Fixed Income Fund | 122,639,514 | 131,647,896 |
Laudus Mondrian Global Government Fixed Income Fund | 5,432,905* | 6,394,031* |
* | Includes purchases and sales/maturities of long-term U.S. Government securities of $2,052,659 and $2,340,331 respectively. |
Forward Foreign Currency Exchange Contract Notional Amount | Net Unrealized Appreciation (Depreciation) | |
Laudus Mondrian International Equity Fund | $27,038 | ($185) |
Laudus Mondrian Emerging Markets Fund | 97,389 | 1,761 |
Laudus Mondrian International Government Fixed Income Fund | 17,470,920 | 19,324 |
Laudus Mondrian Global Government Fixed Income Fund | 2,379,994 | 2,199 |
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 | $— | $— | $148,506 | $9,844 | ||||
Liability Derivatives | Fair Value | |||||||
Forward Foreign Currency Exchange Contracts2 | $— | $— | ($16,271) | ($11,179) |
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 | $21,808 | $97,217 | ($576,042) | $13,663 |
Change in Unrealized Appreciation (Depreciation)2 | — | — | 200,859 | (87,112) |
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. | $148,506 | ($16,271) | $— | $132,235 | |||
Total | $148,506 | ($16,271) | $— | $132,235 | |||
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. | ($16,271) | $16,271 | $— | $— | |||
Total | ($16,271) | $16,271 | $— | $— |
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. | $1,205 | ($57) | $— | $1,148 | |||
State Street Bank & Trust Co. | 8,639 | (8,639) | — | — | |||
Total | $9,844 | ($8,696) | $— | $1,148 | |||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amounts(b) | |||
Barclays Capital, Inc. | ($57) | $57 | $— | $— | |||
State Street Bank & Trust Co. | (11,122) | 8,639 | — | (2,483) | |||
Total | ($11,179) | $8,696 | $— | ($2,483) |
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. |
10. Redemption Fee:
Current Period (4/1/16-3/31/17) | Prior Period (4/1/15-3/31/16) | |
Laudus Mondrian International Equity Fund | $5,510 | $1,649 |
Laudus Mondrian Emerging Markets Fund | 262 | 54,245 |
Laudus Mondrian International Government Fixed Income Fund | 6,652 | 2,422 |
Laudus Mondrian Global Government Fixed Income Fund | 17 | 2 |
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 | $625,286 | $1,747,125 | $— | $— | |||
Undistributed long-term capital gains | — | — | — | — | |||
Unrealized appreciation on investments | 16,470,829 | 25,912,840 | 1,665,135 | 216,515 | |||
Unrealized depreciation on investments | (1,071,722) | (31,639,925) | (6,484,658) | (528,713) | |||
Other unrealized appreciation (depreciation) | (18,841) | (35,445) | 8,567 | (787) | |||
Net unrealized appreciation (depreciation) | $15,380,266 | ($5,762,530) | ($4,810,956) | ($312,985) |
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 | $2,240,408 | $105,528,240 | $— | $20,167 |
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 | $— | $— | $194,980 | $— |
Late-year ordinary losses deferred | — | — | 3,008,058 | 192,243 |
Capital loss carryforwards utilized | — | — | — | 42,304 |
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 | $3,978,315 | $9,543,878 | $14,676 | $— |
Long-term capital gains | — | — | 761,942 | — |
Prior period distributions | ||||
Ordinary income | $2,556,153 | $5,529,636 | $— | $— |
Long-term capital gains | 3,537,227 | — | 2,596,705 | — |
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 | $— | $— | ($2,325,650) | ($456,722) |
Undistributed net investment income | 55,581 | 29,736 | (2,756,081) | 197,287 |
Net realized capital gains (losses) | (55,581) | (29,736) | 5,081,731 | 259,435 |
12. Recent Regulatory Development:
13. Subsequent Events:
San Francisco, California
May 17, 2017
Foreign Tax Credit | Foreign Source Income | |
Laudus Mondrian International Equity Fund | $452,632 | $5,930,106 |
Laudus Mondrian Emerging Markets Fund | 1,268,391 | 13,217,997 |
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 | 2.42 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $4,430,947 |
Laudus Mondrian Emerging Markets Fund | 5,672,624 |
Laudus Mondrian International Government Fixed Income Fund | — |
Laudus Mondrian Global Government Fixed Income Fund | — |
Laudus Mondrian International Equity Fund | $— |
Laudus Mondrian Emerging Markets Fund | — |
Laudus Mondrian International Government Fixed Income Fund | 761,942 |
Laudus Mondrian Global Government Fixed Income Fund | — |
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
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. | 110 | 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). | 110 | 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). | 110 | 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. | 110 | Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – 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 |
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). | 110 | Director, KLA-Tencor Corporation (2008 – present) |
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). | 110 | 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). | 110 | 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). | 110 | 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). | 110 | Board Member and Chairman of the Audit Committee, Ionis 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); Director, Schwab Holdings, Inc. (May 2008 – present); and Director, Charles Schwab Investment Management, Inc. (July 2016 – present). | 110 | Director, The Charles Schwab Corporation (2008 – present) |
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). | 110 | 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 (May 2007 – present), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc. | 110 | 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 and Multi-Asset Strategies (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 and Multi-Asset Strategies, 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
all in one fund family.
00192824
Table of Contents
Total Return for the 12 Months Ended March 31, 2017 | |
Laudus U.S. Large Cap Growth Fund (Ticker Symbol: LGILX) | 16.85% |
Russell 1000® Growth Index | 15.76% |
Performance Details | pages 6-8 |
President and CEO of
Charles Schwab Investment
Management, Inc. and the
fund covered in this report.
Fund Characteristics | |
Number of Securities1 | 55 |
Weighted Average Market Cap (millions) | $199,581 |
Price/Earnings Ratio (P/E) | 33.66 |
Price/Book Ratio (P/B) | 4.87 |
Portfolio Turnover (One year trailing) | 73% |
Fund Overview | |
Fund | |
Minimum Initial Investment | $100 |
Inception Date | 10/14/1997 * |
Ticker Symbol | LGILX |
Cusip | 51855Q549 |
NAV | $18.12 |
* | Inception date is that of the fund’s predecessor fund, the Y Class of the UBS U.S. Large Cap Growth Fund. |
1 | Short-term investments are not included. |
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Laudus U.S. Large Cap Growth Fund (10/14/97)1 | 16.85% | 11.86% | 10.08% |
Russell 1000® Growth Index | 15.76% | 13.32% | 9.13% |
Fund Expense Ratio2: 0.75% |
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 reflect 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. |
1 | This list is not a recommendation of any security by the investment adviser or subadviser. |
Expense Ratio (Annualized)1 | Beginning Account Value at 10/1/16 | Ending Account Value (Net of Expenses) at 3/31/17 | Expenses Paid During Period 10/1/16-3/31/172 | |
Laudus U.S. Large Cap Growth Fund | ||||
Actual Return | 0.75% | $1,000.00 | $1,071.90 | $3.87 |
Hypothetical 5% Return | 0.75% | $1,000.00 | $1,021.16 | $3.78 |
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 the 182 days of the period, and divided by the 365 days of the fiscal year. |
4/1/16– 3/31/17 | 4/1/15– 3/31/16 | 4/1/14– 3/31/15 | 4/1/13– 3/31/14 | 4/1/12– 3/31/13 | ||
Per-Share Data | ||||||
Net asset value at beginning of period | $15.76 | $17.22 | $18.19 | $15.58 | $14.83 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.00 2 | (0.01) | (0.01) | (0.02) | 0.02 | |
Net realized and unrealized gains (losses) | 2.63 | (0.37) | 2.44 | 3.85 | 1.01 | |
Total from investment operations | 2.63 | (0.38) | 2.43 | 3.83 | 1.03 | |
Less distributions: | ||||||
Distributions from net investment income | — | — | — | — | (0.02) | |
Distributions from net realized gains | (0.27) | (1.08) | (3.40) | (1.22) | (0.26) | |
Total distributions | (0.27) | (1.08) | (3.40) | (1.22) | (0.28) | |
Net asset value at end of period | $18.12 | $15.76 | $17.22 | $18.19 | $15.58 | |
Total return | 16.85% | (2.50%) | 14.99% | 24.81% | 7.09% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.76% | 0.75% | 0.77% | 0.78% 3 | 0.78% | |
Gross operating expenses | 0.76% | 0.75% | 0.77% | 0.78% | 0.82% | |
Net investment income (loss) | 0.03% | (0.04%) | (0.06%) | (0.12%) | 0.13% | |
Portfolio turnover rate | 73% | 82% | 102% | 124% | 76% | |
Net assets, end of period (x 1,000) | $1,667,059 | $1,969,169 | $2,171,783 | $2,122,365 | $1,695,291 | |
Holdings by Category | Cost ($) | Value ($) | |
99.6% | Common Stock | 1,278,848,320 | 1,661,378,981 |
0.4% | Other Investment Company | 6,298,694 | 6,298,694 |
100.0% | Total Investments | 1,285,147,014 | 1,667,677,675 |
(0.0%) | Other Assets and Liabilities, Net | (618,339) | |
100.0% | Net Assets | 1,667,059,336 |
Security | Number of Shares | Value ($) |
Common Stock 99.6% of net assets | ||
Banks 4.9% | ||
Bank of America Corp. | 1,512,527 | 35,680,512 |
Citigroup, Inc. | 233,815 | 13,986,813 |
First Republic Bank | 116,264 | 10,906,726 |
SunTrust Banks, Inc. | 112,489 | 6,220,642 |
Wells Fargo & Co. | 275,868 | 15,354,813 |
82,149,506 | ||
Capital Goods 3.8% | ||
Acuity Brands, Inc. | 139,463 | 28,450,452 |
Roper Technologies, Inc. | 90,313 | 18,648,731 |
TransDigm Group, Inc. | 70,305 | 15,478,349 |
62,577,532 | ||
Commercial & Professional Supplies 1.5% | ||
Equifax, Inc. | 186,733 | 25,533,870 |
Consumer Durables & Apparel 3.0% | ||
NIKE, Inc., Class B | 885,465 | 49,346,965 |
Consumer Services 1.5% | ||
Chipotle Mexican Grill, Inc. * | 13,853 | 6,171,788 |
Domino's Pizza, Inc. | 103,529 | 19,080,395 |
25,252,183 | ||
Diversified Financials 1.5% | ||
Berkshire Hathaway, Inc., Class B * | 148,410 | 24,736,979 |
Energy 1.3% | ||
EOG Resources, Inc. | 68,950 | 6,726,072 |
Pioneer Natural Resources Co. | 83,786 | 15,603,467 |
22,329,539 | ||
Food, Beverage & Tobacco 2.5% | ||
Constellation Brands, Inc., Class A | 256,083 | 41,503,372 |
Health Care Equipment & Services 8.5% | ||
Becton, Dickinson & Co. | 135,017 | 24,767,518 |
Boston Scientific Corp. * | 873,190 | 21,716,235 |
Security | Number of Shares | Value ($) |
Humana, Inc. | 104,242 | 21,488,446 |
UnitedHealth Group, Inc. | 448,449 | 73,550,121 |
141,522,320 | ||
Materials 2.0% | ||
Monsanto Co. | 88,686 | 10,039,255 |
The Sherwin-Williams Co. | 76,798 | 23,821,972 |
33,861,227 | ||
Pharmaceuticals, Biotechnology & Life Sciences 7.6% | ||
Alexion Pharmaceuticals, Inc. * | 437,668 | 53,062,868 |
Biogen, Inc. * | 111,631 | 30,522,148 |
Celgene Corp. * | 142,133 | 17,685,609 |
Regeneron Pharmaceuticals, Inc. * | 32,236 | 12,491,773 |
Zoetis, Inc. | 256,145 | 13,670,459 |
127,432,857 | ||
Real Estate 2.6% | ||
Equinix, Inc. | 51,017 | 20,425,677 |
SBA Communications Corp. * | 186,422 | 22,439,616 |
42,865,293 | ||
Retailing 17.5% | ||
Amazon.com, Inc. * | 143,397 | 127,127,176 |
Dollar Tree, Inc. * | 87,410 | 6,858,188 |
Netflix, Inc. * | 368,616 | 54,485,131 |
The Home Depot, Inc. | 240,614 | 35,329,354 |
The Priceline Group, Inc. * | 30,413 | 54,134,228 |
Ulta Salon, Cosmetics & Fragrance, Inc. * | 51,508 | 14,691,627 |
292,625,704 | ||
Semiconductors & Semiconductor Equipment 4.4% | ||
ASML Holding N.V. — Reg’d | 281,872 | 37,432,601 |
Broadcom Ltd. | 130,822 | 28,644,785 |
NVIDIA Corp. | 66,934 | 7,291,121 |
73,368,507 | ||
Software & Services 33.8% | ||
Activision Blizzard, Inc. | 647,785 | 32,298,560 |
Adobe Systems, Inc. * | 182,556 | 23,756,012 |
Alibaba Group Holding Ltd. ADR * | 153,773 | 16,581,342 |
Alphabet, Inc., Class A * | 140,560 | 119,166,768 |
Autodesk, Inc. * | 290,873 | 25,151,788 |
Cognizant Technology Solutions Corp., Class A * | 284,114 | 16,910,465 |
Facebook, Inc., Class A * | 365,648 | 51,940,298 |
FleetCor Technologies, Inc. * | 124,988 | 18,926,933 |
Global Payments, Inc. | 367,101 | 29,617,709 |
Microsoft Corp. | 1,303,667 | 85,859,509 |
salesforce.com, Inc. * | 196,576 | 16,215,554 |
Snap, Inc., Class A * | 370,373 | 8,344,504 |
Tencent Holdings Ltd. | 1,571,400 | 45,271,254 |
Security | Number of Shares | Value ($) |
Vantiv, Inc., Class A * | 311,164 | 19,951,836 |
Visa, Inc., Class A | 607,416 | 53,981,060 |
563,973,592 | ||
Technology Hardware & Equipment 2.7% | ||
Apple, Inc. | 311,302 | 44,721,645 |
Telecommunication Services 0.5% | ||
Zayo Group Holdings, Inc. * | 230,331 | 7,577,890 |
Total Common Stock | ||
(Cost $1,278,848,320) | 1,661,378,981 | |
Other Investment Company 0.4% of net assets | ||
Money Market Fund 0.4% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.62% (a) | 6,298,694 | 6,298,694 |
Total Other Investment Company | ||
(Cost $6,298,694) | 6,298,694 |
At 03/31/17, the tax basis cost of the fund's investments was $1,289,491,934 and the unrealized appreciation and depreciation were $380,459,848 and ($2,274,107), respectively, with a net unrealized appreciation of $378,185,741.
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
ADR — | American Depositary Receipt |
Reg'd — | Registered |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |
Common Stock1 | $1,097,405,389 | $— | $— | $1,097,405,389 | |
Software & Services | 518,702,338 | 45,271,254 | — | 563,973,592 | |
Other Investment Company1 | 6,298,694 | — | — | 6,298,694 | |
Total | $1,622,406,421 | $45,271,254 | $— | $1,667,677,675 |
1 | As categorized in Portfolio Holdings. |
Assets | ||
Investments, at value (cost $1,285,147,014) | $1,667,677,675 | |
Foreign currency, at value (cost $46) | 46 | |
Receivables: | ||
Fund shares sold | 1,211,676 | |
Dividends | 389,597 | |
Prepaid expenses | + | 33,274 |
Total assets | 1,669,312,268 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 1,005,293 | |
Investment adviser fees | 911,659 | |
Due to custodian | 352 | |
Accrued expenses | + | 335,628 |
Total liabilities | 2,252,932 | |
Net Assets | ||
Total assets | 1,669,312,268 | |
Total liabilities | – | 2,252,932 |
Net assets | $1,667,059,336 | |
Net Assets by Source | ||
Capital received from investors | 1,155,446,616 | |
Net investment loss | (11,474) | |
Net realized capital gains | 129,093,533 | |
Net unrealized capital appreciation | 382,530,661 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$1,667,059,336 | 92,011,977 | $18.12 | ||
Investment Income | ||
Dividends (net of foreign withholding tax of $248,033) | $14,513,642 | |
Expenses | ||
Investment adviser fees | 11,723,622 | |
Sub-accounting and sub-transfer agent fees | 1,476,911 | |
Transfer agent fees | 306,191 | |
Registration fees | 84,777 | |
Custodian fees | 75,088 | |
Accounting and administration fees | 74,780 | |
Shareholder reports | 68,664 | |
Professional fees | 59,777 | |
Independent trustees' fees | 52,802 | |
Interest expense | 16,881 | |
Other expenses | + | 39,064 |
Total expenses | – | 13,978,557 |
Net investment income | 535,085 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on investments | 167,375,646 | |
Net realized gains on foreign currency transactions | + | 1,274 |
Net realized gains | 167,376,920 | |
Net change in unrealized appreciation (depreciation) on investments | 108,508,473 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (678) |
Net change in unrealized appreciation (depreciation) | + | 108,507,795 |
Net realized and unrealized gains | 275,884,715 | |
Increase in net assets resulting from operations | $276,419,800 |
Operations | ||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||
Net investment income (loss) | $535,085 | ($832,463) | ||
Net realized gains | 167,376,920 | 35,121,575 | ||
Net change in unrealized appreciation (depreciation) | + | 108,507,795 | (85,429,573) | |
Increase (decrease) in net assets from operations | 276,419,800 | (51,140,461) | ||
Distributions to Shareholders | ||||
Distributions from net realized gains | ($28,536,521) | ($135,764,007) |
Transactions in Fund Shares | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | VALUE | SHARES | VALUE | |||||
Shares sold | 12,060,635 | $201,863,903 | 28,513,967 | $480,079,820 | ||||
Shares reinvested | 1,481,964 | 24,659,880 | 8,112,711 | 134,103,107 | ||||
Shares redeemed | + | (46,461,188) | (776,516,242) | (37,818,691) | (629,893,215) | |||
Net transactions in fund shares | (32,918,589) | ($549,992,459) | (1,192,013) | ($15,710,288) | ||||
Shares Outstanding and Net Assets | ||||||||
4/1/16-3/31/17 | 4/1/15-3/31/16 | |||||||
SHARES | NET ASSETS | SHARES | NET ASSETS | |||||
Beginning of period | 124,930,566 | $1,969,168,516 | 126,122,579 | $2,171,783,272 | ||||
Total decrease | + | (32,918,589) | (302,109,180) | (1,192,013) | (202,614,756) | |||
End of period | 92,011,977 | $1,667,059,336 | 124,930,566 | $1,969,168,516 | ||||
Net investment loss | ($11,474) | ($186,198) |
LAUDUS TRUST (ORGANIZED APRIL 1, 1988) | |
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 |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
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% |
Schwab Target 2010 Fund | 0.1% |
Schwab Target 2015 Fund | 0.2% |
Schwab Target 2020 Fund | 1.4% |
Schwab Target 2025 Fund | 1.6% |
Schwab Target 2030 Fund | 3.6% |
Schwab Target 2035 Fund | 1.9% |
Schwab Target 2040 Fund | 4.9% |
Schwab Target 2045 Fund | 0.6% |
Schwab Target 2050 Fund | 0.5% |
Schwab Target 2055 Fund | 0.3% |
Schwab Target 2060 Fund | 0.0%* |
Schwab Balanced Fund | 2.8% |
* | Less than 0.05% |
6. Board of Trustees:
7. Borrowing from Banks:
8. Purchases and Sales/Maturities of Investment Securities:
Purchases of Securities | Sales/Maturities of Securities |
$1,330,889,841 | $1,912,841,920 |
9. Redemption Fee:
Current Period (4/1/16-3/31/17) | Prior Period (4/1/15-3/31/16) |
$25,896 | $42,063 |
Undistributed ordinary income | $2,930,357 |
Undistributed long-term capital gains | 130,508,096 |
Unrealized appreciation on investments | 380,459,848 |
Unrealized depreciation on investments | (2,274,107) |
Net unrealized appreciation (depreciation) | $378,185,741 |
Current period distributions | |
Ordinary income | $— |
Long-term capital gains | 28,536,521 |
Prior period distributions | |
Ordinary income | $— |
Long-term capital gains | 135,764,007 |
Capital shares | ($197,258) |
Undistributed net investment income | (360,361) |
Net realized capital gains (losses) | 557,619 |
11. Recent Regulatory Development:
San Francisco, California
May 17, 2017
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. | 110 | 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). | 110 | 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). | 110 | 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. | 110 | Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – 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 |
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). | 110 | Director, KLA-Tencor Corporation (2008 – present) |
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). | 110 | 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). | 110 | 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). | 110 | 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). | 110 | Board Member and Chairman of the Audit Committee, Ionis 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); Director, Schwab Holdings, Inc. (May 2008 – present); and Director, Charles Schwab Investment Management, Inc. (July 2016 – present). | 110 | Director, The Charles Schwab Corporation (2008 – present) |
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). | 110 | 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 (May 2007 – present), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc. | 110 | 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 and Multi-Asset Strategies (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 and Multi-Asset Strategies, 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
all in one fund family.
00192825
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Item 2: | Code of Ethics. |
(a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
(c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
(d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
(f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 11(a)(1) of Form N-CSR. |
Item 3: | Audit Committee Financial Expert. |
Registrant’s Board of Trustees has determined that 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 2017 and 2016 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:
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(a) Audit Fees | (b)Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||
Fiscal Year 2017 | Fiscal Year 2016 | Fiscal Year 2017 | Fiscal Year 2016 | Fiscal Year 2017 | Fiscal Year 2016 | Fiscal Year 2017 | Fiscal Year 2016 | |||||||
$241,876 | $241,876 | $0 | $0 | $29,379 | $29,379 | $0 | $0 |
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 committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2017: $29,379 2016: $29,379
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.
2017: NONE 2016: NONE
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(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: | Audit Committee of Listed Registrants. |
Not applicable.
Item 6: | Schedule of Investments. |
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8: | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9: | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10: | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11: | Controls and Procedures. |
(a) Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Chief Financial Officer, Mark Fischer, have concluded that Registrant’s disclosure controls and procedures
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are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
(b) During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.
Item 12: | Exhibits. |
(a) (1) Registrant’s | code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. |
(2) | Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. |
(3) | Not applicable. |
(b) | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Laudus Trust
By: | /s/ Marie Chandoha | |
Marie Chandoha | ||
President and Chief Executive Officer | ||
Date: | 05/15/2017 |
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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: | 05/15/2017 | |
By: | /s/ Mark Fischer | |
Mark Fischer | ||
Chief Financial Officer | ||
Date: | 05/15/2017 |