UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05547
Laudus Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Jonathan de St. Paer
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: September 30, 2021
Item 1: Report(s) to Shareholders.
Total Return for the 6 Months Ended September 30, 2021 | |
Laudus U.S. Large Cap Growth Fund (Ticker Symbol: LGILX) | 13.41% 1 |
Russell 1000® Growth Index | 13.23% |
Performance Details | page 4 |
1 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
Laudus U.S. Large Cap Growth Fund (10/14/97)* | 13.41% 1 | 24.82% | 22.55% | 19.32% |
Russell 1000® Growth Index | 13.23% | 27.32% | 22.84% | 19.68% |
Fund Expense Ratio2: 0.72% |
Fund Characteristics | |
Number of Securities | 52 |
Weighted Average Market Cap (millions) | $645,349 |
Price/Earnings Ratio (P/E) | 40.14 |
Price/Book Ratio (P/B) | 10.75 |
Portfolio Turnover (One-year trailing) | 36% |
Fund Overview | |
Fund | |
Inception Date | 10/14/1997 * |
Ticker Symbol | LGILX |
Cusip | 51855Q549 |
NAV | $33.19 |
* | Inception date is that of the fund’s predecessor fund, the Class Y Shares of the UBS U.S. Large Cap Growth Fund. |
1 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
2 | As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the Financial Highlights section of the Financial Statements. |
3 | This list is not a recommendation of any security by the investment adviser or subadviser. |
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 4/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/21 | EXPENSES PAID DURING PERIOD 4/1/21-9/30/212 | |
Laudus U.S. Large Cap Growth Fund | ||||
Actual Return | 0.71% | $1,000.00 | $1,135.50 | $3.80 |
Hypothetical 5% Return | 0.71% | $1,000.00 | $1,021.51 | $3.60 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 183 days of the period, and divided by the 365 days of the fiscal year. |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/18 | 4/1/16– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $29.23 | $19.61 | $21.31 | $20.47 | $18.12 | $15.76 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.05) | (0.07) | (0.04) | 0.02 | 0.00 2 | 0.00 2 |
Net realized and unrealized gains (losses) | 4.01 | 11.21 | 0.23 | 2.35 | 4.99 | 2.63 |
Total from investment operations | 3.96 | 11.14 | 0.19 | 2.37 | 4.99 | 2.63 |
Less distributions: | ||||||
Distributions from net investment income | — | — | (0.02) | — | — | — |
Distributions from net realized gains | — | (1.52) | (1.87) | (1.53) | (2.64) | (0.27) |
Total distributions | — | (1.52) | (1.89) | (1.53) | (2.64) | (0.27) |
Net asset value at end of period | $33.19 | $29.23 | $19.61 | $21.31 | $20.47 | $18.12 |
Total return | 13.55% 3 | 56.98% | (0.06%) | 12.78% | 28.52% | 16.85% |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses | 0.71% 4 | 0.72% | 0.74% | 0.75% | 0.75% 5 | 0.76% |
Gross operating expenses | 0.71% 4 | 0.72% | 0.74% | 0.75% | 0.75% 5 | 0.76% |
Net investment income (loss) | (0.28%) 4 | (0.25%) | (0.18%) | 0.07% | 0.01% 5 | 0.03% |
Portfolio turnover rate | 18% 3 | 37% | 40% | 53% | 49% | 73% |
Net assets, end of period (x 1,000) | $3,271,361 | $2,942,805 | $1,980,826 | $2,250,995 | $1,953,049 | $1,667,059 |
* | Unaudited. |
1 | Calculated based on the average shares outstanding during the period. |
2 | Per-share amount was less than $0.005. |
3 | Not annualized. |
4 | Annualized. |
5 | The ratio of net operating expenses and gross operating expenses would have been 0.76% and 0.76%, respectively, and the ratio of net investment income would have been less than 0.005%, excluding a custody out-of-pocket fee reimbursement from the custodian. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 100.0% OF NET ASSETS | ||
Capital Goods 3.3% | ||
Fortive Corp. | 340,413 | 24,022,945 |
Roper Technologies, Inc. | 108,605 | 48,451,949 |
TransDigm Group, Inc. * | 57,867 | 36,141,992 |
108,616,886 | ||
Commercial & Professional Services 2.2% | ||
CoStar Group, Inc. * | 337,352 | 29,032,513 |
TransUnion | 381,689 | 42,867,492 |
71,900,005 | ||
Consumer Durables & Apparel 4.0% | ||
LVMH Moet Hennessy Louis Vuitton SE ADR | 356,467 | 51,074,592 |
NIKE, Inc., Class B | 546,269 | 79,334,647 |
130,409,239 | ||
Consumer Services 0.6% | ||
Domino's Pizza, Inc. | 42,511 | 20,276,047 |
Diversified Financials 3.7% | ||
Morgan Stanley | 243,267 | 23,672,312 |
S&P Global, Inc. | 230,463 | 97,921,424 |
121,593,736 | ||
Health Care Equipment & Services 4.1% | ||
Danaher Corp. | 187,138 | 56,972,293 |
Intuitive Surgical, Inc. * | 26,701 | 26,544,799 |
UnitedHealth Group, Inc. | 124,319 | 48,576,406 |
132,093,498 | ||
Household & Personal Products 0.8% | ||
Olaplex Holdings, Inc. * | 1,061,248 | 26,000,576 |
Materials 2.8% | ||
Ball Corp. | 400,635 | 36,045,131 |
Freeport-McMoRan, Inc. | 531,088 | 17,276,292 |
The Sherwin-Williams Co. | 140,786 | 39,382,068 |
92,703,491 | ||
Media & Entertainment 17.6% | ||
Alphabet, Inc., Class A * | 59,351 | 158,676,086 |
Facebook, Inc., Class A * | 406,398 | 137,927,417 |
Match Group, Inc. * | 303,559 | 47,655,728 |
Netflix, Inc. * | 134,301 | 81,969,272 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Sea Ltd. ADR * | 213,110 | 67,924,550 |
Snap, Inc., Class A * | 1,100,120 | 81,265,864 |
575,418,917 | ||
Pharmaceuticals, Biotechnology & Life Sciences 4.3% | ||
AstraZeneca plc ADR | 286,884 | 17,230,253 |
Eli Lilly & Co. | 69,244 | 15,998,826 |
Lonza Group AG ADR | 441,254 | 33,014,624 |
Thermo Fisher Scientific, Inc. | 40,576 | 23,182,286 |
Zoetis, Inc. | 268,788 | 52,182,503 |
141,608,492 | ||
Retailing 12.2% | ||
Amazon.com, Inc. * | 83,305 | 273,660,257 |
Etsy, Inc. * | 249,727 | 51,933,227 |
MercadoLibre, Inc. * | 43,919 | 73,757,569 |
399,351,053 | ||
Semiconductors & Semiconductor Equipment 9.4% | ||
Analog Devices, Inc. | 370,886 | 62,115,987 |
ASML Holding N.V. NY Registry Shares | 143,374 | 106,829,401 |
Marvell Technology, Inc. | 1,177,645 | 71,023,770 |
NVIDIA Corp. | 326,700 | 67,679,172 |
307,648,330 | ||
Software & Services 30.1% | ||
Adobe, Inc. * | 157,702 | 90,792,195 |
Autodesk, Inc. * | 17,356 | 4,949,411 |
Crowdstrike Holdings, Inc., Class A * | 71,631 | 17,605,467 |
Intuit, Inc. | 192,702 | 103,964,656 |
Mastercard, Inc., Class A | 311,962 | 108,462,948 |
Microsoft Corp. | 972,519 | 274,172,557 |
PayPal Holdings, Inc. * | 202,741 | 52,755,236 |
ServiceNow, Inc. * | 166,728 | 103,749,833 |
Shopify, Inc., Class A * | 27,016 | 36,627,752 |
Twilio, Inc., Class A * | 108,797 | 34,711,683 |
Visa, Inc., Class A | 566,671 | 126,225,965 |
Wix.com Ltd. * | 150,522 | 29,497,796 |
983,515,499 | ||
Technology Hardware & Equipment 3.1% | ||
Apple Inc. | 717,080 | 101,466,820 |
Telecommunication Services 0.7% | ||
T-Mobile US, Inc. * | 172,287 | 22,011,387 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Transportation 1.1% | ||
Uber Technologies, Inc. * | 417,908 | 18,722,278 |
Union Pacific Corp. | 92,577 | 18,146,018 |
36,868,296 | ||
Total Common Stocks (Cost $1,604,340,248) | 3,271,482,272 |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS | ||
Money Market Funds 0.1% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (a) | 1,870,447 | 1,870,447 |
Total Short-Term Investments (Cost $1,870,447) | 1,870,447 | |
Total Investments in Securities (Cost $1,606,210,695) | 3,273,352,719 |
* | Non-income producing security. |
(a) | The rate shown is the 7-day yield. |
ADR — | American Depositary Receipt |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $3,271,482,272 | $— | $— | $3,271,482,272 |
Short-Term Investments1 | 1,870,447 | — | — | 1,870,447 |
Total | $3,273,352,719 | $— | $— | $3,273,352,719 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $1,606,210,695) | $3,273,352,719 | |
Receivables: | ||
Investments sold | 25,683,998 | |
Fund shares sold | 1,265,689 | |
Foreign tax reclaims | 222,046 | |
Dividends | 190,417 | |
Prepaid expenses | + | 51,533 |
Total assets | 3,300,766,402 | |
Liabilities | ||
Payables: | ||
Investments bought | 22,286,208 | |
Fund shares redeemed | 4,961,098 | |
Investment adviser fees | 1,696,411 | |
Sub-accounting and sub-transfer agent fees | 303,460 | |
Independent trustees’ fees | 1,071 | |
Accrued expenses | + | 157,326 |
Total liabilities | 29,405,574 | |
Net assets | $3,271,360,828 | |
Net Assets by Source | ||
Capital received from investors | $1,247,268,987 | |
Total distributable earnings | + | 2,024,091,841 |
Net assets | $3,271,360,828 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$3,271,360,828 | 98,568,740 | $33.19 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $76,157) | $6,987,803 | |
Expenses | ||
Investment adviser fees | 9,764,664 | |
Sub-accounting and sub-transfer agent fees | 1,512,253 | |
Accounting and administration fees | 52,751 | |
Shareholder reports | 43,035 | |
Registration fees | 41,692 | |
Independent trustees’ fees | 41,281 | |
Professional fees | 31,483 | |
Transfer agent fees | 23,327 | |
Custodian fees | 16,188 | |
Other expenses | + | 15,999 |
Total expenses | – | 11,542,673 |
Net investment loss | (4,554,870) | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - unaffiliated | 148,635,285 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 249,664,160 |
Net realized and unrealized gains | 398,299,445 | |
Increase in net assets resulting from operations | $393,744,575 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment loss | ($4,554,870) | ($6,754,526) | |
Net realized gains | 148,635,285 | 291,071,501 | |
Net change in unrealized appreciation (depreciation) | + | 249,664,160 | 845,317,794 |
Increase in net assets from operations | $393,744,575 | $1,129,634,769 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($151,866,592) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 6,460,455 | $212,500,567 | 21,504,281 | $570,122,715 | |
Shares reinvested | — | — | 4,381,621 | 125,708,707 | |
Shares redeemed | + | (8,565,033) | (277,689,330) | (26,212,855) | (711,620,716) |
Net transactions in fund shares | (2,104,578) | ($65,188,763) | (326,953) | ($15,789,294) | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 100,673,318 | $2,942,805,016 | 101,000,271 | $1,980,826,133 | |
Total increase (decrease) | + | (2,104,578) | 328,555,812 | (326,953) | 961,978,883 |
End of period | 98,568,740 | $3,271,360,828 | 100,673,318 | $2,942,805,016 |
3. Risk Factors: |
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% |
UNDERLYING FUND | |
Schwab Balanced Fund | 3.6% |
Schwab Target 2025 Fund | 0.2% |
Schwab Target 2030 Fund | 0.7% |
Schwab Target 2035 Fund | 0.6% |
Schwab Target 2040 Fund | 1.7% |
Schwab Target 2045 Fund | 0.4% |
Schwab Target 2050 Fund | 0.5% |
Schwab Target 2055 Fund | 0.3% |
Schwab Target 2060 Fund | 0.1% |
Schwab Target 2065 Fund | 0.0%* |
* | Less than 0.05% |
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$590,409,337 | $661,868,171 |
8. Federal Income Taxes: |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) |
$1,608,284,165 | $1,686,279,987 | ($21,211,433) | $1,665,068,554 |
Long-term capital gains | $151,866,592 |
1. | the nature, extent and quality of the services provided to the Fund under the Agreements, including the resources of CSIM and its affiliates, and BlackRock, dedicated to the Fund; |
2. | the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data; |
3. | the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds; |
4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of BlackRock; and |
5. | the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors. |
1 | The meeting on June 8, 2021 was held by means of videoconference in reliance on exemptive relief from the in-person voting requirement under the 1940 Act as provided by the Securities and Exchange Commission. |
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) (investment management firm) and President, PIMCO Funds. | 103 | None |
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 (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller 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 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | 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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 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 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
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 (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 103 | Director (2008 – present), KLA-Tencor Corporation |
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 (2008 – present), Patmore Management Consulting (management consulting). | 103 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
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 and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Interested Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
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) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 |
Jonathan de St. Paer 1973 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 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating 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 (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer (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 (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander 1961 Senior Vice President and Chief Investment Officer (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 (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr. 1972 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
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 |
Catherine MacGregor 1964 Chief Legal Officer and 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 (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
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 and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab. |
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. |
Laudus Funds®
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
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, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Mark Fischer, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the 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: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a) | (1) | Code of ethics – not applicable to this semi-annual report. |
(2) |
(3) | Not applicable. |
(b) |
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/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | November 15, 2021 |
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/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | November 15, 2021 | |
By: | /s/ Mark Fischer | |
Mark Fischer Chief Financial Officer | ||
Date: | November 15, 2021 |